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

to deduct the amount due to the COM
pany for the cost OF additions and bet
terments not Justly chargeable to the
United States Is further declared to be
| an emergency power. to be used by the
Director-General only when he finds that
no other reasonable means is provided
| by the company to reimburse the United
| States, and, as contemplated by the
Presidents proclamation and by the Fed
| eral control act, II will be the policy of
| the Director-General to so USE such
| power OF deduction as not to interrupt
the regular payment Of dividends az
heretofore made by the company.
(c) During Federal control the COM
pany shall not, without prior approval
OF the Director-General. issue any bonds,
notes, equipment trust certificates, stock
or other securities, or enter into any
contracts Except in respect of cor
porate affairs and property not taken
under Federal control), or agree to pay
interest on its debt at n higher rate, or
for rent Of leased roads and proper
ties larger amount than the rates and
amounts payable as of or required by
contracts in force on December 81, 1917.
The company may. however, procure the
authorization and delivery to It under
any mortgage or tEnst deed or agree
ment In force December 81. 1917, OF
bonds or notes issuable Hereunder in
respect of additions, betterments, extern
sions and equipment or for refunding
purposes.
(d) Upon the cost Of additions and
betterments, less retrements in connec-
ton Herewith. and upon the cost Of road
extensions made to the property of the
company during Federal control, the
Director-General shall pay the company
reasonable rate OF interest to be
! fixed by him. In fixing such rate he
shall take into account not merely the
value OF money but all pertinent facts
and circumstances whether the money
used was derived from loans or other
wise.
| section s-C1aims for Losses on
Additions, Betterments, 40.
Section s--(a) Prompt notice in writ
ing shall be given the company of the
making or ordering OF any additions,
betterments, road extensions, terminals,
motive power, cars or other equipment
to or for the property of the company
costing more than $1,000. with an esti-
mate OF the cost thereof. Such notice
shall be given before the beginning Of
the work or the acquisition OF the equip
ment whenever in the judgment Of the
Director General it Is practicable to do
So There shall be furnished the COM
pany as soon as practicable after the
end Of each month a statement Of all
expenditures estimated to cost 81 900 or
less chargeable to investment in road
and equipment authorized during the
month. with brief description Of the
work to be done or of the property to
be acquired. Within a reasonable time
after the completion of such additions,
betterments. road extensions and ter
minals or the acquisition of such motive
power. cars or other equipment n writ
ten statement OF the final cost thereof
shall be given the company. The notices
provided in this paragraph may be
given to the president OF the company
unless the company designates some
other officer to receive the same, in
which event the notice shall be given to
such other officer.
OBJ Any claim OF the company for
loss accruing to 1t by reason OF expendi-
lures for additions and betterments made
TO the property of the company during
Federal control in connection with or as
part OF the work of maintaining. re-
pairing and renewing the company's
property and chargeable under the &C
counting rules OF the Commission in
force December 81, 1917. to investment
in road and equipment except such ex-
penditurce as are incurred in connection
with the replacem OF buildings and
structures in new locations. may he de-
termined by agreement between the
Director-General and the Company; or,
failing such agreement as to the fact or
amount OF such loss, the question at issue
may be referred by either party TO the
Commission. whose determination thereof
after hearing shall be final and con-
elusive; provided. however, that no loss
shall be claimed by the company and no
money shall be due TO It in respect OF
such additions and betterments upon the
ground that the actual cost thereof at
the time OF construction was greater
than under other market and commercial
conditions and for the purpose OF deter
mining such controversy the amount for
any addition or betterment shall be
deemed the fair and reasonable cost
thereof and shall be taken as the basis
for such determination nor unless the
company within sixty days OF notice to
II that the work will be done shall give
the Director-General notice of objection
thereto and shall make its claim within
six days after notice of the completion
OF the work
Basis for Determining Costs.