of the notes, providing for the further extension of the maturity date thereof to October 10, 1925, with interest thereon until paid at a rate not exceeding 6 per cent per annum. The extended notes together with applicant's other outstanding notes of a maturity of two years or less will aggregate more than 5 per cent of the par value of the applicant's outstanding securities. We find that the proposed extension of the maturity date of its promissory notes by the applicant as aforesaid (a) is for a lawful object within its corporate purposes, and compatible with the public interest, which is necessary and appropriate for and consistent with the proper performance by it of service to the public as a common carrier, and which will not impair its ability to perform that service, and (b) is reasonably necessary and appropriate for such purpose. An appropriate order will be entered. ORDER Entered July 5, 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 Union Terminal Company be, and it is hereby, authorized to extend from October 10, 1924, to October 10, 1925, the maturity date of $510,000, principal amount, of its twoyear 5 per cent unsecured notes, dated October 10, 1917, the maturity date of which has heretofore been extended to October 10, 1924, by entering into extension agreements with the respective holders thereof as follows: Present holders J. L. Lancaster and C. L. Wallace, receivers of Texas & Pacific Railway Company. Atchison, Topeka & Santa Fe Railway Company. St. Louis, San Francisco & Texas Railway Company. St. Louis Southwestern Railway Company of Texas. City National Bank of Dallas, Tex.. Total.. Balance of principal now unpaid $72,857. 15 72, 857. 14 72, 857. 14 72, 857. 15 72, 857. 14 72, 857. 15 33, 571. 41 39, 285.72 510,000.00 said notes to bear interest for the extended period as herein authorized and until paid at a rate not exceeding 6 per cent per annum, payable semiannually on April 1 and October 1, and to be redeemable as provided in said proposed extension agreements; said agreements to be substantially in the forms submitted with the application filed with this commission in Finance Docket No. 77. It is further ordered, That within 10 days after the execution and delivery of said extension agreements a verified copy of each agreement shall be filed with this commission. It is further ordered, That, except as herein authorized, said notes shall not be extended, 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 25, 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 notes, or interest thereon, or as to said extension agreements, on the part of the United States. 90 I. C. C. FINANCE DOCKET NO. 4094 LEASE OF OKLAHOMA CITY SHAWNEE INTER- Submitted June 17, 1924. Decided July 5, 1924 Acquisition by the Oklahoma City-Ada-Atoka Railway Company of control, by lease, of the railroad of the Oklahoma City Shawnee Interurban Railway Company approved and authorized Kent W. Shartel for applicant. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER BY DIVISION 4: The Oklahoma City-Ada-Atoka Railway Company, a carrier by railroad subject to the interstate commerce act, on June 12, 1924, filed an application under paragraph (2) of section 5 of the act for an order authorizing it to acquire control, by lease, of the railroad of the Oklahoma City Shawnee Interurban Railway Company, a corporation organized for the purpose of engaging in interstate commerce by railroad, hereinafter called the Shawnee Company. The Corporation Commission of Oklahoma has entered an order approving the lease and has recommended that the application be granted. The Governor of Oklahoma has also recommended that the application be granted. A hearing has been had and no objection to the granting of the application has been presented to us. The railroad of the Shawnee Company extends from Oklahoma City, Oklahoma County, in a southeasterly direction to Shawnee, Pottawatomie County, a distance of about 38 miles, all in the State. of Oklahoma. The Shawnee Company was authorized to acquire and operate its line of railroad by our certificate issued January 16, 1924, in Acquisition of Line by Oklahoma City Shawnee Interurban Ry., 86 I. C. C. 273. The line was duly acquired, but the Shawnee Company has not provided itself with equipment and has never operated its railroad. Since May 1, 1924. this line has been operated by the applicant under a temporary operating agreement. The applicant's owned line extends from Shawnee to North Coalgate, Okla., a distance of about 77 miles, the acquisition and operation of which was authorized by our certificate issued January 16, 1924, in Acquisition of Line by Oklahoma City-Ada-Atoka Ry.. 86 I. C. C. 240. It has been operated by the applicant in interstate commerce since May 1, 1924, pursuant to the authority granted by us in that proceeding. The applicant has also been operating under a temporary operating agreement over the line of the Missouri-Kansas-Texas Railroad Company between Coalgate and Atoka. Since 1904 the line between Oklahoma City and Atoka has been operated as a single through line. By the terms of the proposed lease the Shawnee Company leases its entire line of railroad to the applicant for a term of 10 years from May 1, 1924. The applicant agrees to pay as rental a proportionate part of its revenue, if any, derived from the operation of its entire line of railroad, on a prorated mileage basis, after the payment of operating and other expenses. The applicant will bear all expenses of maintenance and operation of the leased line and all. taxes, charges, and assessments levied thereon. The lease may be terminated by either party on January 1 or July 1 of any year if 30 days' prior notice in writing is given. Both the applicant and the Shawnee Company were incorporated under the laws of Oklahoma on October 1, 1923, and are controlled by H. R. Hudson through majority capital stock ownership. No income accounts of these companies have been filed with us. It is represented that, the applicant's operations to date have not resulted in a deficit. The applicant's general balance sheet as of May 1, 1924, showed investment in road and equipment $1,672,324.56, current assests $84,088.69, deferred assets $200, unadjusted debits $3,993.15, capital stock $800,000, bonds $800,000, current liabilities $132,951.33, deferred liabilities $15,626.85, unadjusted credits $1,012, and profit and loss credit balance $8,016.22. The general balance sheet of the Shawnee Company as of May 1, 1924, showed investment in road and equipment $1,200,000, capital stock $800,000, and bonds $400,000. The applicant states that at the time the Shawnee Company made application to us in Finance Docket No. 3326 for authority to issue securities it was contemplated as a possibility that the line of railway owned by the Shawnee Company would be converted into an electric interurban or gasoline interurban railroad. This conversion would have necessitated the expenditure of a large sum of money, part of which it was proposed to obtain by the sale of $400,000 of firstmortgage bonds at not less than 85 per cent of par. It was contemplated in the event the financial situation was such that it would not be practicable to convert the line into an electric or gasoline interurban railroad that it would be operated by the applicant. It has now been definitely determined that such conversion is not practicable at this time. The population of Oklahoma City is estimated at 91,295 and Shawnee at 15,348. A few villages of small population are also located along the line proposed to be leased. This territory can be better served by the applicant than by the Shawnee Company. If the latter were to operate its own line, there would be a break in the service at Shawnee and the haul to and from Oklahoma City would be a two-line haul carrying a higher rate than a single through haul by the applicant. The service would not be as expeditious or as cheap if handled separately. Upon the facts presented we find that the acquisition by the applicant of control of the railroad of the Shawnee Company under the terms of the lease described in the application will be in the public interest. An order will be entered accordingly. ORDER Entered July 5, 1924 A hearing and 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 said report is hereby referred to and made a part hereof: It is ordered, That the Oklahoma City-Ada-Atoka Railway Company be, and it is hereby, authorized to acquire control of the railroad of the Oklahoma City Shawnee Interurban Railway Company in accordance with the terms of the lease described in the application and report aforesaid. 90 I. C. C. |