FINANCE DOCKET No. 2176 DEFICIT SETTLEMENT WITH LAKE CHAMPLAIN & MORIAH R. R. Submitted September 29, 1923. Decided May 9, 1924 The amount payable to the Lake Champlain & Moriah Railroad Company under the provisions of section 204 of the transportation act, 1920, is ascertained to be $73,315.97, from which no amount is deductible as due to the President, as operator of transportation systems under Federal control, on account of traffic balances or other indebtedness. Certificate issued. Irvin G. Morris and George H. Parker for the carrier. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER BY DIVISION 4: The Lake Champlain & Moriah Railroad Company, a corporation. of the State of New York, hereinafter termed the carrier, is a steamrailroad company which, during the Federal control period, engaged as a common carrier in general transportation, operating a line of railroad between Port Henry and Mineville, N. Y., approximately 6.62 miles in length, which connected with the Delaware & Hudson road, which was under Federal control. It is, therefore, a carrier within the meaning of paragraph (a) of section 204 of the transportation act, 1920. The carrier was under Federal control from January 1, 1918, to May 16, 1918, inclusive, and is entitled to the benefits of section 204 for the period from May 17, 1918, to February 29, 1920, inclusive. Its return under our circular of March 4, 1920, indicated a net credit of $163,382.42 in its favor for the period from January 1, 1918, to February 29, 1920, inclusive. Our examination of its accounts for the period from May 17, 1918, to February 29, 1920, shows the net credit to the carrier for that period to be $108,515.37 before making the adjustments under the provisions of paragraph (f) of section 209, required by paragraph (b) of section 204. Consideration has been given by us to the adjustment of maintenance charges and applying, so far as practicable, the rule set forth in the proviso of paragraph (a) of section 5 of the standard contract between the director general and carriers under Federal control, we have disallowed $19,199.40 of the maintenance expenditures for the period in question. We have found it necessary also to disallow $16,000 because of disproportionate or unreasonable charges appearing in the company's claim, during that portion of the period of Federal control in which it operated its property privately. We find that there is payable to the carrier under paragraphs (f) and (g) of section 204 of the transportation act, 1920, the sum of $73,315.97, from which no amount is deductible as due to the President, as operator of transportation systems under Federal control, on account of traffic balances or other indebtedness. Settlement herein is based upon the commission's report of February 9, 1922, in Finance Docket No. 1600, Construction of the Word "Deficit," 66 I. C. C. 765. An appropriate certificate will be issued. COMMISSIONER MEYER did not participate in the disposition of this case. Certificate No. B-286 under Section 204 (g) of the Transportation Act, 1920 TO THE SECRETARY OF THE TREASURY OF THE UNITED STATES: 1. The Interstate Commerce Commission, hereinafter termed the commission, hereby certifies that the Lake Champlain & Moriah Railroad Company, hereinafter termed the carrier, is a corporation of the State of New York, and is a carrier as defined in section 204 of the transportation act, 1920. The commission further certifies that under the provisions of paragraphs (f) and (g) of said section 204 the amount payable to the carrier is $73,315.97. 2. The commission also certifies that there is nothing due from the carrier to the President (as operator of the transportation. systems under Federal control) on account of traffic balances or other indebtedness. Dated this 9th day of May, 1924. 90 I. C. C. FINANCE DOCKET No. 3554 SECURITIES OF ASHERTON & GULF RAILWAY Submitted April 26, 1924. Decided May 2, 1924 Authority granted to issue $200,000 of first-mortgage bonds and $42,800 of stock for the purpose of liquidating certain indebtedness. John D. McCall for applicant. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER BY DIVISION 4: The Asherton & Gulf Railway Company, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to issue $200,000 of its first-mortgage bonds and $42,800 of its capital stock for the purpose of liquidating certain indebtedness. No objection to the granting of the application has been presented to us. The applicant represents that on January 1, 1924, it was indebted to the estate of A. Richardson, deceased, to the extent of $437,060.53. This sum included advances made for construction of the applicant's road amounting to $331,436.56; for additions and betterments amounting to $5,858.65; for operating expenses, $5,214.94; and for interest accrued on the money so advanced, $94,550.38. It is further represented that the applicant at the present time is without means to liquidate this indebtedness and that its revenues are insufficient to pay in its entirety the interest on the debt. It appears that the trustees of the estate of A. Richardson, deceased, are willing to accept in full settlement of $392,123.07 of the debt, $200,000 of first-mortgage bonds and $42,800 of stock, or a total of $242,800 of securities. The bonds will be dated March 15, 1924, will bear interest at the rate of 6 per cent per annum, and will mature March 15, 1944. The stock will consist of 428 shares of the par value of $100 per share. It will be noted that the funding of this indebtedness will reduce the annual interest accruing from approximately $24,000 to $12,000. We find that the proposed issue of bonds and stock 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. COMMISSIONER POTTER did not participate in the disposition of this case. ORDER Entered May 2, 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 Asherton & Gulf Railway Company be, and it is hereby, authorized to issue (1) not exceeding $200,000, principal amount, of its first-mortgage bonds under and pursuant to, and to be secured by, a proposed indenture to be dated March 15, 1924; said bonds to be dated March 15, 1924, to bear interest at the rate of 6 per cent per annum, payable semiannually on March 15 and September 15 in each year, and to mature March 15, 1944, and (2) to issue not exceeding $42,800 of its common capital stock, consisting of 428 shares of the par value of $100 per share; said bonds and stock to be delivered to the trustees of the estate of A. Richardson, deceased, in satisfaction of $392,123.07 of the applicant's indebtedness thereto. It is further ordered, That, except as herein authorized, said bonds and stock 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, within 10 days after the execution thereof, the applicant shall file with this commission a certified copy of said mortgage in the form in which it was executed. 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 bonds or stock, or interest or dividends thereon, on the part of the United States. FINANCE DOCKET No. 3588 NOTES OF GEORGIA, FLORIDA & ALABAMA RY. Submitted April 24, 1924. Decided May 8, 1924 Authority granted to issue 72 promissory notes in the face amount of $1,820.83 each, aggregating $131,099.76, payable to the order of the Baldwin Locomotive Works, in the procurement of four locomotives. T. S. Hawes for applicant. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER BY DIVISION 4: The Georgia, Florida & Alabama Railway Company, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to issue 72 promissory notes in the face amount of $1,820.83 each, aggregating $131,099.76. No objection to the granting of the application has been presented to us. The applicant proposes to enter into an agreement with the Baldwin Locomotive Works for the purpose of procuring four steam freight locomotives, decapod type, at a total cost of $150,000. By the terms of the agreement the applicant will pay to the Baldwin Locomotive Works $30,000 in cash, and the balance in promissory notes which will aggregate, with interest at the rate of 6 per cent per annum included in the face amount of each note, $131,099.76, payable in 36 equal monthly payments. There will be 72 notes, each in the face amount of $1,820.83, and they will be dated as of the date of delivery of the locomotives. We find that the proposed issue of 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. COMMISSIONER MEYER did not participate in the disposition of this case. |