Evening star., 1938-08-18
COURT CHANGES ON SEPT l6 TO CUT NUMBER OF ACTIONS

in twenty years next preceding such
investment, defaulted for more than
100 consecutive days in the pay
ment Of any part Of either principal
or interest on any Of its lawful OBJ
legations.
3. That such city, town or other
municipal subdivision has a popula-
ton. as shown by the last Federal
census next preceding such invest
ment Of not less than $4,000 inhab-
itants;
1. (a) That where the population
is less than 100000, the net indebt-
edness of such city, town or other
municipal. subdivision, together with
the indebtedness or such proportion
ate part thereof, Of any city town
or other municipal subdivision: ex-
cept county. which is wholly or in
part within the limits Of said city,
town or other municipal subdivision.
shall not exceed five per cent of
the last preceding valuation of prop
erty for taxation for city, town or
municipal subdivision purposes;
(b) That where the population is
100000 or more, the net indebtedness
of such city, town or other munici-
pal subdivision, together with the
indebtedness or such proportionate
part thereof, Of any city. town or 9TH
er municipal subdivision, except
county, which is wholly or in part
within the limits of said city, town or
other municipal subdivision, shall not
exceed eight per cent of the last
preceding valuation of property for
taxation for city. town or municipal
subdivision purposes.
D. Obligations of the District of
Columbia.
Bonds or obligations, either bear
ing interest or sold on a discount
basis, of the District of Columbia, or
those for the payment of principal
and interest on which the faith and
credit Of the District of Columbia
is pledged. and issued pursuant to
the authority of any law Of the said
District Of Columbia.
E. For the purposes Of this Sec
ton.
l. Net indebtedness of any county,
city, town or other municipal subdi-
vision shall be determined by deduct
ing from the gross debt, debts Great
ed for supplying the inhabitants with
water or other utility services, the
revenues from which are sufficient to
service the debt. and debts created
in anticipation of taxes to be paid
within one year. and also deducting
the amount of sinking funds avail
able for the payment Of the debt
included.
taxation shall be an official valuation
duly made and recorded, and in
those cases where the practice is to
assess property for taxation at less
than its official value, it shall be
permissible, for the purpose of debt
limitation and the computation of
the ratio of net debt to assessed val
ue, as hereinbefore provided to ad-
just the assessed value to official val
ue, provided the practice of assess
ing property for taxation at less
than its offlcial value has been pre-
viously authorized under statutory
or charter power.
Section w. Railroad Obligations,
subject to the following provisions:
A. AS used in this section, the
words qualified railroad corpora
ton" shall mean railroad corpora
ton other than q street railroad
corporation which, at the date of
the investment by the fiduciary.
meets the following requirements:
/. It shall be a railroad corpora
ton. incorporated under the laws
of the United States. or of any State
thereof, or of the District of Colum-
bia;
2. It shall own or operate. within
the United States. not less than 500
miles of standard-gauge railroad
lines. exclusive of sidings, but in
cluding all mileage owned by sub
sidiary corporation. all of the vot-
ing stock of which. except directors
qualifying shares, is owned by it:
3. Its railroad operating revenues,
derived from the operation of all rail-
road lines operated by it. including
leased lines and lines owned or leased
by subsidiary corporation. all of
the voting stock of which, except
directors qualifying shares, is owned
by it, shall have been not less than
SIS 1000, 900 in each year, for at least
two out Of three Of its fiscal years
next preceding the date Of invest
ment, and including its fiscal year
Immediately preceding the date of
investment;
4. At no time during its fiscal year
in which the investment is made,
and its five fiscal years Immediately
prior thereto, shall it have been in
default in the payment of any part
of the principal or interest owing by
it upon any part Of its funded in
debtedness;
S. Its net income available for fixed
charges. shall have been at least
equal to its fixed charges in each
year, for at least four Of five OF its
fiscal years next preceding the date
of investment, and shall have been
not less than one and one-half times
its fixed charges, for its fiscal year
Immediately preceding the date Of
investment
B. As used in this. section, the
words railroad obligations" shall in
clude and mean obligations which
meet the following requirements:
/. The obligations shall be:
(D Obligations issued. or assumed
by qualified railroad corporation, or
guaranteed as to principal and in
terest by endorsement by qualified
railroad corporation. or guaranteed
as to principal and interest by en-
dorsement by any railroad corpora
ton, which guarantee has been as
sumed by q qualified railroad cor
poration;
(b) Obligation for the payment Of.
the interest on which q qualified
railroad corporation is obligated un-
der the terms of lease made, or
assumed by it, and which lease ex-
tapde for q y,er{od of r,ot lesS than