The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-09

ration claims. and may pay and charge
to the company any of such expenses,
including reparaton claims. in excess OF
the cash so received or realized. Bal
ences of the above accounts. except tho
cash taken over as working capital, shall
be struck quarterly on the last days Of
March, June. September and December
of each year. and the cash balance
found on such adjustments to be due
either party shah be then payable. and
II not paid shall bear interest at the rate
OF per cent. per snnum unless the
parties shall agree upon different rate.
Overdue instruments Of compensation or
balances thereof provided for In section
z hereof shall bear interest from ma
turity at the rate OF 8 per cent. per
annum,
(b) Railway operating expenses, rep
aration claims. hire Of equipment and
Joint facility rents shall DO allocated
with reference to the time when in
CURED as between the period prior and
subsequent to midnight of December 81.
1917, in accordance with the established
accrual practices OF the company; and q
like method OF allocating railway oper-
ating revenues shall be made at tho end
of Federal control.
Regulates Interest Charges.
Coz All expenditures made by the d.
rector General during Federal control
for additions. betterments or extensions
begun prior to January 1. 1918, shah be
charged to the company. and II the
of any such addition, better
mont or extension Is approved or or
dered by the discretionary. the COM
pany shall be entitled under the pro-
visions OF paragraph (d) OF section 7
hereof to interest on the cost thereof
from the completion of the work; but
no interest Except to the extent that
the same may be allowed and included
In the compensation provided for in
(a) of section 7 thereof) shall
be due the Company upon any such ex-
panditures for work done prior TO Jan
uary !, 1918. Payments for all equip
ment ordered or under construction by
the company prior to January 1. 1913.
but delivered on or after that date, shall
also be considered as expenditures made
by order or approval Of the Director
General under paragraph (d) Of section
z hereof. Interest during construction
payable under this paragraph and also
interest during construction on the cost
of any additions. betterments and ex-
made by the company or at its
expense to the company's property dur
ing teQeral control, snAli DO inCluucu IN
the cost Of the work.
(d) Cash receipts or disbursements
and other items arising out Of transact
tons which do not enter into or form q
part OF those used in determining the
standard return shall not be
received or paid by the Director-General
unless such transactions are negotiated
or conducted by his order for account OF
OF the company and with its consent
When moneys are so received or paid by
the Director-General in connection with
such corporate transactions they shall
be credited or charged to the company.
There shall be an accounting of the
due by one party or the other
under this paragraph at the end Of each
quarter year OF Federal control. and the
amount found due either party shall be
then payable and II not paid shall bear
interest as provided in paragraph (a) Ut
this section.
Pension Funds and Obligations.
(e) Any funds taken over as provided
in paragraph (e) Of section hereof
shall be maintained by payments and
charges to appropriate operating ex-
peIlse accounts and used by the Direc-
tor General during Federal control sub
in the same manner as prior
to January I. 1918. All sums paid by
the Dlrector-General to maintain PEN
sion funds or pension obligations or
practices and all contributions to the
Young Mems Christian Associations of
employees. employees savings funds. re-
lief funds or associations, reading rooms.
or death benefits for employees. shall be
treated as a part of railway operating
expenses during Federal control
C) All salaries and expenditures in
CURED by the company during Federal
control for purposes which relate to the
existence and maintenance of the cor
poration, or TO the properties OF the COM
pany not taken over by the President. or
10 negotiations. contracts, valuations or
any business controversy with the Gov
eminent or any branch thereof, and
which are not specially authorized by
the Director General. shall be borne by
the company; except that the expense
Of valuation now being made by the
to the extent that they are
in the opinion OF the Director g eneral
necessary to comply with the valuation
orders and other requirements Of the
and to the cooperation of
the company in the making of such valu-
ton, shall be paid by the Director-Gen-
eral as a part Of operating expenses II
the company Is dissatisfied with the rul-
peal to the commission. whose decision
shall be anal.
CD The Director General shall fur
n!sh for additions. bettsrments and ex-
to the company's property ap-
proved or ordered by him any of the
and supplies taken over under
Cd OF section 2 hereof, or
purchased by him and held for use in
connection with the companys property
in so far as, in his Judgment, ne can do
so with due regard TO his own require
ments. Materials and supplies 20 fur
nished shall be charged to the company
ut cost
Contracts for Fuel, Supplies, sc.
(h) The Director-General shall, at
his option, be substituted for the period
OF Federal control in the place OF the
in respect to the benefits and
OF any contract in relation
to operation (and of any contract out
on said date in regard to fuel,
or supplies for operation. in
cluding the right to abrogate or change
and make new contracts with express
for such period), and shall in
like manner. at his option. be substituted
for such period in respect OF the bene-
fits and obligations of any practice or
In force January ], 1918,
In regard to fuel. materials or supplies
for the operation Of the property de-
scribed In paragraph (a) of section Q
hereof and OF any additions and extern
slons thereto obtained from any mine,
oil field or other source OF supply owned
or controlled by the company; i being
that under such practice or
arrangement. II awaited OF. the Director
General shall he charged for such fuel,
supplies or material furnished from a
source owned or controlled by the COM