The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-09

expressed in dollars or cents per unit
below or above the then cost or the
then market value thereof for railroad
purposes las the practice Of the COM
pany may have been) In the same
amount that the prices charged the
company during the test period were
below or above the then cost or the
then market value thereof for railroad
purposes; 90 provided, however, that
a source OF supply which the company
had acquired to safeguard Its own
operations shall not be depleted or re-
duced for use on other transportation
systems. except In cases Of emergency
to be determined by the Director Gen
eral. in which event the quantity so
used on other transportation systems
shall be accounted for to the company
at the fair value thereof; and pro-
vided further that materials and sup
piles secured under contracts which the
company had made for its own opera
ton shall so far as practicable be
used on the company's property, and
that II used on any other transporta-
ton system materials and supplies Of
like character shall be furnished by the
Director General for use in making
such additions, betterments and extern
sions as shall be charseable TO the
company. and shall be charged at cost
under such contracts"
Provision for Rent Payments.
Additions have becA inserted In para
graph CD to make 1t read as follows:
90 The Director -General shall save
the company harmless from any and all
liability loss or expense resulting from
I IV.~l H. lad
| during Federal control in connection or
incident to operation or existing con-
| tracts relating to operation: and shall
do and perform so far as Is requisite
under Federal control for the protection
of the company all and singular the
things OF which he may have notice,
necessary and appropriate to prevent by
reason OF anything done or omitted I'M
der Federal control the forfeiture or
loss by the company Of any OF Its prop
erty rights. ordinance rights or fran
chises or Of its trackage. lease. terminal
or other contracts involving facility
OF operation; but nothing herein con-
tained shall be construed to require the
Director-General to make any capital
| expenditure necessary to preserve
franchise or ordinance right not hereto
fore availed OF by the company. The
/
company harmless from any and all
claims for breach Of covenant heretofore
entered into by the company in any
mortgage or other instrument in respect
to insurance against losses by fire.
Nothing in this nor In the preceding
paragraph shall be construed to be ar
a sumption by the Director-General OF
or to make him liable on any obligation
Of the company to pay debt secured
by a mortgage or any rent under lease
except rents which during the test period
were called In the monthly reports to the
commission equipment rents and join
facility rents and rents which under the
accounting rules of the commission If
force during the test period were classi
fed as operating expenses.
Access Given to Records.
Additions have been inserted in para
graph (M) of section to make II reat
as follows:
(M) The company shall have th'
right at all reasonable times to inspec
the books and accounts kept by thu
Director General relating to the prop
erty of the company or to the operation
thereof and the Director General shall
during Federal control furnish the com
pany with copy of the operating re
ports relating to its property. and a!
soon as practice Bile after the end Of eacl
ffscnl year shall furnish to the compan!
a complete list of Its equipment as o
the end Of such fiscal year
Paragraph tA) Of Section has beef
changed to read
Cpkeep. Section 5. (A) During tn
period Of Federal control the Director
General shall annually as nearly a
practicable expend and charge to rail
way operating expenses either in pay
ments for labor and materials or b.
payments into funds such sums for tn
maintenance. repair. renewal and de
probation OF the property described Il
paragraph ta) OF Section 2 hereof a
, may be requisite 10 order that sue
) property may be retvr ned to the com
pany at the end OF Federal control Il
substantially as good repair and in sub
, stantially as complete equipment as
, was on January /. 1918: provided. how
ever, that the annual expenditures an
charges for such purposes during tn
| period of Federal control on such prop
, erty and the fair distribution thereo
over the same. or the payment int
funds Of an amount equal in the aggre
gate (subtect to the adjustments pro
vided in paragraph Co and to the pro
visions Of paragraph (E) OF this sec
tion) to the average annual expenditur
and charges for such purposes include
, under the accounting rules OF the con,
I mission in railway operating expense
! during the test period. shall be take
E as full compliance with the foregoln
covenant.
e Adjusting Loss and Damage.
The following has been added to rara
; graph (E) of section 8: The forego!D
parts Of this paragraph are subject I
the provlso that in case OF loss or dam
age any additions and betterments mad
In connection with or as a part Of tn
restoration or replacement OF propert
damaged or destroyed and chargeabl
under the accounting rules OF the CON
mission in force December 81. 1917. I
investment in regular and equipmer
shall be charged to and paid BY III
/ company.
To section 6, covering taxes. I'll
3 following has been added as para
4 RraDh (F)