as the net railway operating income for the months of September to December, both inclusive, or for the months of March to December, both inclusive, as the case may be, in the three years ended June 30, 1917, bears to the total net railway operating income for the same three years.

3. The aggregate value of the railway property of the reporting carrier or carriers held for and used in the service of transportation shall be based preliminarily, in the case of carriers which made such returns directly or indirectly, upon the amount reported or used by such carrier or carriers as the aggregate value of railway property held for and used by them in the service of transportation in the proceeding entitled "in the matter of the applications of carriers in official, southern, and western classification territories for authority to increase rates," Docket No. Ex Parte 74, with adjustments for

(a) New lines, extensions and additions, and betterments;

(b) Retirements;

(e) Amounts of property for which permission to retain earnings under paragraph (18) of section 15a of the interstate commerce act has been granted; and

(d) Other increases or decreases,

properly affecting the aggregate value of the railway property of such carriers held for and used in the service of transportation, claimed or reported by the carrier and supported by detailed explanations. The value of such railway property, as reported, will be corrected, and the actual value will be determined in the manner provided in paragraph (4) of section 15a of the interstate commerce act, and corresponding adjustments in amounts recoverable by and payable to the commission will be effected. In the case of those carriers which did not directly or indirectly make returns in connection with Ex Parte 74, the investment in road and equipment as of December 31, 1919, with proper adjustments as hereinabove indicated will be used for preliminary computations, and these preliminary computations will be similarly corrected after the determination of actual values in accordance with paragraph (4) of section 15a of the interstate commerce act.

4. The establishment of preliminary bases for prorating the return of 6 per cent, or ascertaining property values to which the rate is applicable, does not preclude any carrier from using such other bases as it considers more equitable and in accord with the facts; such other bases, however, must be fully and properly supported.

It is further ordered, That pursuant to the foregoing rules and regulations for the determination and recovery of the excess income payable under section 15a of the interstate commerce act each and every carrier by railroad, or partly by railroad and partly by water, within the continental United States, subject to the provisions of the interstate commerce act, excluding

(a) Sleeping-car companies and express companies;

(b) Street or suburban electric railways unless operated as a part of a general steam railroad system of transportation;

(c) Interurban electric railways unless operated as a part of a general steam railroad system of transportation or engaged in the general transportation of freight; and (d) Any belt-line railroad, terminal switching railroad, or other terminal facility, owned exclusively and maintained, operated, and controlled by any State or political subdivision thereof, shall on or before February 1, 1922, report to the Secretary of the Interstate Commerce Commission, Washington, D. C., the following matters:

1. The amount by which its net railway operating income for the period ended December 31, 1920, was in excess of that percentage of the value of railway property held for and used by it in the service of transportation, established by the foregoing rules, with explanation and details of the manner in which such excess income was computed, or, in the event there was no such excess railway operating income, that fact, with corresponding calculations and details in support of the return.

2. In cases where excess-net railway operating income is reported, a statement of the title of the fund account in which one-half of such excess was placed, when such reserve fund was established, the amount placed in that fund, and how the assets in that fund are represented or held.

3. The amount of the remaining one-half of the excess income as preliminarily computed paid to the Interstate Commerce Commission and when and how such amount was paid. If unpaid, the amount should be paid by remittance to or draft in favor of the Interstate Commerce Commission, transmitted to George B. McGinty, secretary of the Interstate Commerce Commission, Washington, D. C.

4. The value of the railway property of the reporting carrier or carriers with a statement in detail of the manner in which such value is arrived at and a full explanation as to the method in which the values of properties of a group of carriers have been aggregated in cases where property values and income are computed for a system pursuant to the provisions of paragraph (6) of section 15a of the interstate commerce

act. In such cases a full explanation should be given of the reasons why the group of carriers used are treated as under common control, management, and operation. It is further_ordered, That an original report and three copies of the same shall be forwarded to George B. McGinty, secretary, Interstate Commerce Commission, Washington, D. C. Reports shall be prepared in typewritten or printed form, on paper approximately 8 by 11 inches, with 14 inches margin at the left side for binding, except as to exhibits, which may be of any convenient size, but which shall be folded to conform to the size of the report.

It is further ordered, That the original reports shall be made under oath, signed and filed on behalf of the carrier by its president, a vice president, auditor, comptroller, or other executive officer having knowledge of the matters therein set forth and duly designated for that purpose by the carrier.

By the commission, division 4: [SEAL.]

GEORGE B. MCGINTY, Secretary.

[Interstate Commerce Commission, Washington.]

ORDER.

At a session of the Interstate Commerce Commission, Division 4, held at its office in Washington, D. C., on the 16th day of March, A. D. 1922. In the matter of the recovery and payment of excess railway operating income under the provisions of section 15a of the interstate commerce act for the year ended December 31, 1921.

The commission having under consideration the provisions of paragraph (6) of section 15a of the interstate commerce act, reading as follows:

"(6) If, under the provisions of this section, any carrier receives for any year a net railway operating income in excess of 6 per centum of the value of the railway property held for and used by it in the service of transportation, one-half of such excess shall be placed in a reserve fund established and maintained by such carrier, and the remaining one-half thereof shall, within the first four months following the close of the period for which such computation is made, be recoverable by and paid to the commission for the purpose of establishing and maintaining a general railroad contingent fund as hereinafter described. For the purposes of this paragraph the value of the railway property and the net railway operating income of a group of carriers, which the commission finds are under common control and management and are operated as a single system, shall be computed for the system as a whole irrespective of the separate ownership and accounting returns of the various parts of such system. In the case of any carrier which has accepted the provisions of section 209 of this amendatory act the provisions of this paragraph shall not be applicable to the income for any period prior to September 1, 1920. The value of such railway property shall be determined by the commission in the manner provided in paragraph (4).'

It is ordered, That pursuant to the rules and regulations for the determination and recovery of the excess income payable under section 15a of the interstate commerce act, as defined in our order of January 16, 1922, modified as may be necessary in the case of each respondent for the year ended December 31, 1921, each and every carrier by railroad, or partly by railroad and partly by water, within the continental United States, subject to the provisions of the interstate commerce act, excluding― (a) Sleeping car companies and express companies;

(b) Street or suburban electric railways unless operated as a part of a general steam railroad system of transportation;

(c) Interurban electric railways unless operated as a part of a general steam railroad system of transportation or engaged in the general transportation of freight; and

(d) Any belt-line railroad, terminal switching railroad, or other terminal facility, owned exclusively and maintained, operated, and controlled by any State or political subdivision thereof, shall on or before May 1, 1922, report to the secretary of the Interstate Commerce Commission, Washington, D. C., the following matters:

1. The amount by which its net railway operating income as defined in paragraph (1) of section 15a of the interstate commerce act, for the year ended December 31, 1921, was in excess of 6 per cent of the value of the railway property held for and used by it in the service of transportation, with explanation and details of the manner in which such excess income was computed, or, in the event there was no such excess railway operating income, that fact, with corresponding calculations and details in support of the return.

2. Where it reports excess net railway operating income, the title of the fund account in which one-half of such excess was placed, the date when such reserve fund was

established, the amount placed in that fund, and how the assets in that fund are represented or held; and the amount of the remaining one-half of the excess income, as preliminarily computed, paid to the Interstate Commerce Commission and when and how such amount was paid. If the latter amount is unpaid, it should be paid by remittance to or draft in favor of the Interstate Commerce Commission, transmitted to George B. McGinty, secretary of the Interstate Commerce Commission, Washington, D. C.

3. The value of such railway property used in earning the income reported for the year ended December 31, 1921, with a statement in detail of the manner in which such value is arrived at and showing the ownership and a general description of such railway property.

4. The foregoing requirements of this order are made subject to the following proviso, that in cases where two or more of said carriers constitute a group under common control and management and operated as a single system, as provided in paragraph (6) above quoted, the foregoing matters shall be reported for the system as a whole, irrespective of the separate ownership and accounting returns of the various parts of such system, but shall also be reported in so far as practicable for each part of the system, and full explanation shall be made as to the method in which the value of properties of a group of carriers have been aggregated and the reasons why the group of carriers used are treated as under common control, management, and operation.

It is further ordered, That an original report and three copies of the same shall be forwarded to George B. McGinty, secretary, Interstate Commerce Commission, Washington, D. C. Report shall be prepared in typewritten or printed form, on paper approximately 8 by 11 inches, with 1 inches margin at the left side for binding, except as to exhibits, which may be of any convenient size, but which shall be folded to conform to the size of the report.

It is further ordered, That the original reports shall be made under oath, signed and filed on behalf of the carrier by its president, a vice president, auditor, comptroller, or other executive officer having knowledge of the matters therein set forth and duly designated for that purpose by the carrier.

By the commission, division 4:

{SEAL.]

GEORGE B. MCGINTY, Secretary.

These figures do not include additions and betterments, retirements, or other changes in property since valuation date.

act. In such cases a full explanation should be given of the reasons why the group of carriers used are treated as under common control, management, and operation. It is further ordered, That an original report and three copies of the same shall be forwarded to George B. McGinty, secretary, Interstate Commerce Commission, Washington, D. C. Reports shall be prepared in typewritten or printed form, on paper approximately 8 by 11 inches, with 14 inches margin at the left side for binding, except as to exhibits, which may be of any convenient size, but which shall be folded to conform to the size of the report.

It is further ordered, That the original reports shall be made under oath, signed and filed on behalf of the carrier by its president, a vice president, auditor, comptroller, or other executive officer having knowledge of the matters therein set forth and duly designated for that purpose by the carrier.

By the commission, division 4: [SEAL.]

GEORGE B. MCGINTY, Secretary.

[Interstate Commerce Commission, Washington.]

ORDER.

At a session of the Interstate Commerce Commission, Division 4, held at its office in Washington, D. C., on the 16th day of March, A. D. 1922. In the matter of the recovery and payment of excess railway operating income under the provisions of section 15a of the interstate commerce act for the year ended December 31, 1921.

The commission having under consideration the provisions of paragraph (6) of section 15a of the interstate commerce act, reading as follows:

"(6) If, under the provisions of this section, any carrier receives for any year a net railway operating income in excess of 6 per centum of the value of the railway property held for and used by it in the service of transportation, one-half of such excess shall be placed in a reserve fund established and maintained by such carrier, and the remaining one-half thereof shall, within the first four months following the close of the period for which such computation is made, be recoverable by and paid to the commission for the purpose of establishing and maintaining a general railroad contingent fund as hereinafter described. For the purposes of this paragraph the value of the railway property and the net railway operating income of a group of carriers, which the commission finds are under common control and management and are operated as a single system, shall be computed for the system as a whole irrespective of the separate ownership and accounting returns of the various parts of such system. In the case of any carrier which has accepted the provisions of section 209 of this amendatory act the provisions of this paragraph shall not be applicable to the income for any period prior to September 1, 1920. The value of such railway property shall be determined by the commission in the manner provided in paragraph (4)."

It is ordered, That pursuant to the rules and regulations for the determination and recovery of the excess income payable under section 15a of the interstate commerce act, as defined in our order of January 16, 1922, modified as may be necessary in the case of each respondent for the year ended December 31, 1921, each and every carrier by railroad, or partly by railroad and partly by water, within the continental United States, subject to the provisions of the interstate commerce act, excluding―

(a) Sleeping car companies and express companies;

(b) Street or suburban electric railways unless operated as a part of a general steam railroad system of transportation;

(c) Interurban electric railways unless operated as a part of a general steam railroad system of transportation or engaged in the general transportation of freight; and

(d) Any belt-line railroad, terminal switching railroad, or other terminal facility, owned exclusively and maintained, operated, and controlled by any State or political subdivision thereof, shall on or before May 1, 1922, report to the secretary of the Interstate Commerce Commission, Washington, D. C., the following matters:

1. The amount by which its net railway operating income as defined in paragraph (1) of section 15a of the interstate commerce act, for the year ended December 31, 1921, was in excess of 6 per cent of the value of the railway property held for and used by it in the service of transportation, with explanation and details of the manner in which such excess income was computed, or, in the event there was no such excess railway operating income, that fact, with corresponding calculations and details in support of the return.

2. Where it reports excess net railway operating income, the title of the fund account in which one-half of such excess was placed, the date when such reserve fund was

established, the amount placed in that fund, and how the assets in that fund are represented or held; and the amount of the remaining one-half of the excess income, as preliminarily computed, paid to the Interstate Commerce Commission and when and how such amount was paid. If the latter amount is unpaid, it should be paid by remittance to or draft in favor of the Interstate Commerce Commission, transmitted to George B. McGinty, secretary of the Interstate Commerce Commission, Washington, D. C.

3. The value of such railway property used in earning the income reported for the year ended December 31, 1921, with a statement in detail of the manner in which such value is arrived at and showing the ownership and a general description of such railway property.

4. The foregoing requirements of this order are made subject to the following proviso, that in cases where two or more of said carriers constitute a group under common control and management and operated as a single system, as provided in paragraph (6) above quoted, the foregoing matters shall be reported for the system as a whole, irrespective of the separate ownership and accounting returns of the various parts of such system, but shall also be reported in so far as practicable for each part of the system, and full explanation shall be made as to the method in which the value of properties of a group of carriers have been aggregated and the reasons why the group of carriers used are treated as under common control, management, and operation.

It is further ordered, That an original report and three copies of the same shall be forwarded to George B. McGinty, secretary, Interstate Commerce Commission, Washington, D. C. Report shall be prepared in typewritten or printed form, on paper approximately 8 by 11 inches, with 1 inches margin at the left side for binding, except as to exhibits, which may be of any convenient size, but which shall be folded to conform to the size of the report.

It is further ordered, That the original reports shall be made under oath, signed and filed on behalf of the carrier by its president, a vice president, auditor, comptroller, or other executive officer having knowledge of the matters therein set forth and duly designated for that purpose by the carrier.

By the commission, division 4:

[SEAL.]

Carrier or groups of carriers comprising a

single system, as provided in paragraph (6) of section 15a.

These figures do not include additions and betterments, retirements, or other changes in property since Valuation date.