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the public as a common carrier, and which will not impair its ability to perform that service, and (6) is reasonably necessary and appropriate for such purpose.

An appropriate order will be entered.

COMMISSIONER POTTER did not participate in the disposition of this

case.

ORDER

Entered June 26, 1924

Investigation of the matters and things involved in this proceeding having been had, and said division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which report is hereby referred to and made a part hereof:

It is ordered, That the Virginian Railway Company be, and it is hereby, authorized to pledge with the National City Bank of New York as security for two short-term loans aggregating the principal amount of $4,000,000, as set forth in the application and aforesaid report: (1) $4,500,000, principal amount, of its first-mortgage 50year gold bonds, series A, issued under and pursuant to, and secured by, the first mortgage dated May 1, 1912, made by the applicant to the Farmers' Loan & Trust Company, trustee; said bonds being dated May 1, 1912, maturing May 1, 1962, and bearing interest at the rate of 5 per cent per annum, payable semiannually; and (2) $1,500,000, principal amount, of first-mortgage 5 per cent gold bonds, series A, issued under and pursuant to, and secured by, the first mortgage dated March 1, 1922, made by the Virginian & Western Railway Company to the Central Union Trust Company of New York, trustee, and carrying the guaranty of the applicant as to the payment of principal and interest; said bonds being dated March 1, 1922, maturing March 1, 1972, and bearing interest at the rate of 5 per cent per annum, payable semiannually.

It is further ordered, That, except as herein authorized, said bonds shall not be sold, pledged, repledged, or otherwise disposed of by the applicant, unless and until so ordered by this commission.

It is further ordered, That the applicant shall report concerning the matters herein involved in conformity with the commission's order dated May 23, 1922, respecting applications filed under section 20a of the interstate commerce act.

And it is further ordered, That nothing herein shall be construed to imply any guaranty or obligation as to said bonds, or interest thereon, on the part of the United States.

FINANCE DOCKET No. 886

GUARANTY SETTLEMENT WITH WESTERN MARYLAND

RY

Submitted February 6, 1924. Decided July 2, 1924

Amount necessary to make good the guaranty of section 209 of the transporta

tion act, 1920, to the Western Maryland Railway Company ascertained to be $1,424,361.03. An aggregate amount of $1,000,000 having been certified for payment as advances under paragraph (h), and an amount of $400,000 having been certified as a partial payment under paragraph (g) of said section, as amended by section 212, the amount to be certified in final settle

ment is $24,361.03. Certificate issued. M. C. Byers for the carrier.

REPORT OF THE COMMISSION
DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER
BY DIVISION 4:

The Western Maryland Railway Company hereinafter termed the carrier, is a carrier by steam railroad, which during the guaranty period engaged as a common carrier in general transportation in the States of Maryland, Pennsylvania, and West Virginia. Its line of railroad was under Federal control from January 1, 1918, to February 29, 1920, inclusive, and it is, therefore, a carrier within the meaning of paragraph (a) of section 209 of the transportation act, 1920. The carrier filed with us a written statement accepting the provisions of section 209 on March 12, 1920.

The returns of the carrier under our orders of October 18, 1920, January 5, 1921, and December 15, 1921, together with supplemental data, have been examined and it has been ascertained that the debits and credits arising from the accounts called in the monthly reports to us “equipment rents” and “joint facility rents” have been included, and that there are included no debits or credits arising from the operation of street electric passenger railways or interurbans not under Federal control at the termination thereof. In fixing the amount to be allowed for maintenance of way and structures and maintenance of equipment in the guaranty period we applied, so far as practicable, the rule set forth in the proviso of paragraph (a) of section 5 of the standard contract between the United States and carriers under Federal control. It has also been ascertained that there were not included any so-called war taxes in arriving at the net railway operating income or deficit for either the test period or the guaranty period, and that there are no eliminations necessary due to disproportionate or unreasonable charges, or charges attributable to another period, under a proper system of accounting. An estimate of the net effect of unaudited items has been made and agreed to under the provisions of paragraph (b) of section 212 of the transportation act, 1920. As a result of our investigation it has been ascertained that the amount necessary to make good the guaranty to the carrier is $1,424,361.03, as shown by the following statement : Basis of claim :

Deficit in net railway operating income for the guaranty period_--

$152, 088. 11 One-half annual amount estimated by the President as just compensation under the Federal control act

1, 657, 719. 37 Increase in compensation under section 4 of the Federal control act--

67, 997. 98 Special claim, extraordinary maintenance account wreck, August 20, 1920..

157, 378. 93 Special claim, difference in amount and use of property------ 865, 909. 85

Total amount claimed...

2, 901, 094. 24

Adjustments:

Amount claimed based on section 4 of the
Federal control act---

$67, 997. 98
Allowance based on section 4 of the Federal
control act

68, 841. 03 Addition under section 4..

843.05 Deficit in net railway operating income for the guaranty period, as claimed.-.

$152, 088. 11 Net railway operating income for the guaranty period, as adjusted.----

9, 433. 69 Deduction for guaranty period.-

161, 521. 80 Special claim, extraordinary maintenance-- $157, 378. 93 Special claim, difference in amount and use of property----

865, 909. 85 Deduction on account of special claims.

1, 023, 288. 78 Amount claimed for maintenance of way and

structures and maintenance of equipment-- $4, 448, 240.77 Amount fixed for mainteance of way and structures and maintenance of equipment.. 4, 172, 105. 76 Deduction for maintenance----

276, 135. 01 Deduction on account of items estimated by us and agreed

to by the carrier under section 212(b) of the transportation
act, 1920 --

16, 630. 67

Net deduction

1, 476, 733. 21

1, 424, 361. 03

Amount necessary to make good the guaranty -

Certificates for advances under paragraph (h) and for partial payments under paragraph (g) of section 209, as amended by section 212, have been issued by us in favor of the carrier, as follows: Advance, certificate No. 211, August 30, 1920

$500,000 Advance, certificate No. 254, October 11, 1920_

500,000 Partial payment, certificate No. 421, April 27, 1921-- 400,000 The amount still due the carrier, therefore, is $24,361.03, for which an appropriate certificate will be issued.

Certificate No. A-997 under Section 209(9) of the Transportation

Act, 1920
TO THE SECRETARY OF THE TREASURY OF THE UNITED STATES:

1. The Interstate Commerce Commission, hereinafter called the commission, hereby certifies that the Western Maryland Railway Company, a corporation of the State of Pennsylvania, hereinafter called the carrier, is a carrier as defined in paragraph (a) of section 209 of the transportation act, 1920; and that the carrier filed with the commission on or before March 15, 1920, a written statement that it accepted all of the provisions of the said section 209.

2. The commission has ascertained and hereby certifies to the Secretary of the Treasury that the amount of $1,424,361.03 is the amount necessary to make good to said carrier the guaranty provided by said section.

3. The commission has heretofore certified to the Secretary of the Treasury as advances to said carrier under section 209(h) an aggregate amount of $1,000,000, as follows: Certificate No. 211, August 30, 1920.

$500,000 Certificate No. 254, October 11, 1920.

500, 000 and as partial payments under section 209 (g), as amended by section 212, an aggregate amount of $400,000, as follows: Certificate No. 421, April 27, 1921.

$400,000 4. The commission hereby certifies that the amount necessary to make good to said carrier the guaranty provided by said section 209, in addition to the amount of advances and partial payment heretofore certified, as aforesaid, is $24,361.03.

5. The commission has made final determination, as aforesaid, of the amount of the guaranty provided for by said section 209. Dated this 2d day of July, 1924.

90 I. C. U.

FINANCE DOCKET No. 4066

GUARANTY OF BONDS BY ANN ARBOR R. R.

Submitted June 16, 1924. Decided June 28, 1924

1. Authority granted to the Ann Arbor Railroad Company to assume obliga

tion and liability, as guarantor and lessee, in respect of $800,000 of Ann Arbor Boat Company first-mortgage floating-equipment serial 6 per cent bonds, which are to be sold at not less than 901 and the proceeds used

in the procurement of an additional car ferry. 2. That part of the application for authority by the Ann Arbor Boat Company

to issue bonds, dismissed.
Curtis, Mallet-Prevost & Colt for applicants.

REPORT OF THE COMMISSION
DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER
BY DIVISION 4:

The Ann Arbor Railroad Company, a common carrier by railroad engaged in interstate commerce, hereinafter called the railroad company, and the Ann Arbor Boat Company, hereinafter called the boat company, have filed a joint application in which authority is sought under section 20a of the interstate commerce act for the boat company to issue $800,000 of bonds to be known as Ann Arbor Boat Company first-mortgage floating-equipment serial 6 per cent bonds, and for the railroad company to assume obligation and liability, as guarantor and lessee, in respect thereof. No objection to the granting of the application has been presented to us.

It appears that the acquisition of an additional car ferry is necessary to enable the railroad company to render proper service to the public. The boat company has contracted with the Manitowoc Shipbuilding Corporation for the construction of such a vessel, to be known as Ann Arbor No. 7, at an approximate cost of $820,000, which the boat company will lease, under date of June 1, 1924, to the railroad company, together with another vessel now owned by the boat company and known as Ann Arbor No. 6. The latter is now being used by the railroad company. As neither applicant has sufficient money available to pay for the additional car ferry, the boat company proposes to issue $800,000 of its bonds. These bonds will be secured by a mortgage to be made by the boat company under date of June 1, 1924, to the Union Trust Company, Cleveland, Ohio, as trustee. The mortgage will cover the Ann Arbor No. 6, and

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