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.

ORDER

Entered May 14, 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, for the purpose of acquiring possession of, the right to use, and ultimately title to, the equipment described in the aforesaid report, the Maine Central Railroad Company be, and it is hereby, authorized to assume obligation and liability in respect of not exceeding $1,300,000, principal amount, of Maine Central Railroad Company equipment-trust certificates of 1924, to be issued by the State Street Trust Company, of Boston, as trustee, (a) by entering into an agreement under date of June 2, 1924, with Morris McDonald, Edward W. Wheeler, and Louis M. Patterson, as vendors, and the State Street Trust Company, of Boston, creating said trust and providing for the issue of said certificates with dividend warrants attached, (b) by indorsing on each of said certificates its guaranty of the payment of principal and dividends when the same become payable, and (c) by entering into a lease of the trust equipment under date of June 2, 1924, with said State Street Trust Company, of Boston, thereby agreeing to pay rent sufficient to pay the principal of said certificates and dividends thereon, and certain other charges; said agreement and said lease to be substantially in the respective forms set forth in the application; said certificates to entitle the bearer, or registered owner thereof, to a share in the trust and to semiannual dividends at the rate of 5 per cent per annum, to be dated June 2, 1924, to be in the denomination of $1,000 each, and to mature successively in principal amounts of $44,000 at intervals of six months, beginning December 1, 1924, and ending June 1, 1929, and $43,000 at intervals of six months, beginning December 1, 1929, and ending June 1, 1939; said certificates to be sold at not less than 96.86 per cent of par and accrued dividends and the entire proceeds thereof used in the acquisition of said equipment.

It is further ordered, That, except as herein authorized, said certificates 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 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 certificates, or dividends thereon, on the part of the United States.

FINANCE DOCKET No. 2809

CONSTRUCTION OF LINE BY FORT WAYNE UNION RY.

Approved May 16, 1924

DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER

ORDER

It appearing, That on May 16, 1923,1 the commission, by division 4, issued its report and certificate in the above-entitled proceeding, in which certificate it was provided that construction of the line of railroad therein authorized should be completed on or before June 30, 1924;

It further appearing, That, for good cause shown, the Fort Wayne Union Railway Company will be unable to complete said line of railroad within the period prescribed in said certificate, and has requested that the time limit therein fixed for completion of such construction be extended to June 30, 1925:

It is ordered, That the time prescribed in said certificate within which the Fort Wayne Union Railway Company may complete said line of railroad be, and it is hereby, extended to June 30, 1925.

COMMISSIONER MEYER did not participate in the consideration of this order.

1 79 I. C. C. 442.

FINANCE DOCKET No. 610

GUARANTY STATUS OF MARION & EASTERN R. R.

Submitted January 3, 1924. Decided May 16, 1924

No amount found to be due to or from the Marion & Eastern Railroad Company under section 209 of the transportation act, 1920. Proceeding dismissed.

H. E. Barber for the carrier.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER BY DIVISION 4:

The Marion & Eastern Railroad 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 State of Illinois. Its line connected at Marion, Ill., with the Illinois Central, the Chicago & Eastern Illinois, and the Missouri Pacific Railroads, which were under Federal control at the termination thereof, 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 13, 1920.

The carrier was incorporated in December, 1913, to build a railroad from Marion to Harrisburg, Ill., and took over all holdings of the El Dorado, Marion & Southwestern Railway, which were obtained at foreclosure sale on December 30, 1913. The stock ownership of the company was transferred to the present holders as of June 1, 1917. The carrier did not file returns in response to the commission's orders of October 18, 1920, January 5, 1921, and December 15, 1921, relating to settlements under section 209. A field examination of its accounts, however, discloses that it had a net railway operating income during the guaranty period of $5,549.18. We have been unable to locate records relating to the operation of the property during the test period, and for this reason we are unable to determine what amount, if any, may be due to or from the carrier under the guaranty. We therefore find it necessary to dismiss the proceeding. An appropriate order will be issued.

COMMISSIONER MEYER did not participate in the disposition of this

case.

ORDER

Entered May 16, 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 said proceeding be, and it is hereby, dismissed.

90 1. C. C.

FINANCE DOCKET No. 2853

BONDS OF GREAT NORTHERN RY.

Submitted May 12, 1924. Decided May 16, 1924

Authority granted to sell $15,000,000 of general-mortgage 5 per cent gold bonds, series C, at not less than 90 per cent of par and accrued interest.

Ralph Budd for applicant.

SUPPLEMENTAL REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER

BY DIVISION 4:

By our order in this proceeding entered June 22, 1923, 79 I. C. C. 727, we authorized the applicant to procure the authentication and delivery of $60,000,000 of its general-mortgage 5 per cent gold bonds, series C, such bonds to be held by the applicant subject to disposition pursuant to our future order.

The applicant submits that its cash requirements to February 1, 1925, for additions and betterments, interest, dividends, working capital, and maturing obligations will exceed its cash now on hand. and the estimated receipts from dividends and earnings, by approximately $14,000,000. It proposes to sell $15,000,000 of the bonds mentioned above to reimburse its treasury, in part, for expenditures heretofore made therefrom and thus provide the funds needed for its corporate purposes.

The applicant represents that no arrangements have been made as to the price at which the bonds will be sold. It proposes to sell them at the best price obtainable, but at not less than 90 per cent of par and accrued interest. On that basis the annual cost to the applicant will be approximately 5.6 per cent.

We find that the proposed issue and sale of general-mortgage 5 per cent gold bonds, series C, by the applicant as aforesaid (a) are for lawful objects within its corporate purposes, and compatible with the public interest, which are 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