attached hereto and made parts hereof, marked Exhibits 12-A to 12-P, respectively, it being agreed that nothing contained in this stipulation is to be construed to mean that petitioner concedes that it was or is bound by said allocations, and the determination of the respondent, or that it is precluded from proving the contrary. On or about January 25, 1922, the Interstate Commerce Commission issued an order, a true copy of which is attached hereto and made a part hereof, marked Exhibit 13, whereunder the books of the companies which were under Federal control were required to be and were cleared of all balance sheet items or accounts incident thereto or affected in connection with the matters growing out of Federal control. Exhibits 9 to 13, inclusive, of the stipulation are incorporated herein by reference. The following statement shows the amount of the claim filed with the Director General by each of the Federal controlled companies: Included in the claims were certain items representing charges against and credits to the Director General which were not in dispute. The principal items in controversy were the claims for undermaintenance of properties, shortages of materials and supplies, additional compensation, and additions and betterments made by the Director General not approved by the companies. During 1920 and 1921 numerous conferences were held between representatives of the petitioner and the Director General with regard to the claims; and at the conferences the petitioner's representatives discussed and pressed all items of the claims, including additional compensation, but particularly undermaintenance, which item consumed 95 per cent of the arguments at the conferences. In June, 1921, numerous personal conferences were held between the vice president and general counsel of the Southern Railway Company and the Director General in an effort to reach an early settlement of that company's claim. The Director General made several successive offers to pay certain sums in settlement of the entire claim, offering sums of approximately $4,000,000, and $5, 000,000, and finally offering on June 15, 1921, to pay the company the sum of $6,000,000 in cash and to cancel notes of the company held by the United States Railroad Administration, aggregating $2,412,000, which offer, in the total sum of $8,412,000 was accepted by petitioner on that date. In these personal conferences, the specific items of the company's claim were not discussed, and the Director General did not indicate to the company's representative that he was conceding any specific items of the claim. The final settlement agreed upon, which was embodied in a contract bearing date of June 22, 1921, was a lump sum intended to wipe out and cancel the claims of both sides. The final settlements of the claims of the other Federal controlled companies were effected during 1921, 1922 and 1923, on a similar basis and in a manner similar to the Southern Railway Company settlement, in personal conferences between their representative and the Director General, no specific items having been discussed or conceded by the Director General. In no case did the Director General or his agents ever disclose to petitioner any specific allowances made on particular items claimed, and petitioner was never advised by the Director General as to any entries on his books showing the allocation of the settlements. The following statement shows for each of the Federal controlled companies, the year of final settlement of its claim against the Director General, and the amount paid by the Director General to the company or by the company to the Director General in final Carolina & Tennessee Southern Railway Company. 10/20/21 5,000 Columbus & Greenville Railroad Company (formerly Southern Railway Company in Mississippi). Cumberland Railroad Company. Danville & Western Railway Company. Delta Southern Railway. Hartwell Railway Company. Mobile & Ohio Railroad Company. New Orleans & Northeastern Railroad Company. New Orleans Terminal Company. Northern Alabama Railway Company. 6/27/22 St. Johns River Terminal Company. Tallulah Falls Railway Company... Total of payments by Director General. Total of payments by companies..... Net payments by Director General.. 11/13/23 1/27/22 125,000 18,000 3,000 12, 462, 500 18.000 12, 444, 500 On his books, the Director General allocated the final settlements with the Federal controlled companies as follows: (5) Cash on hand December 31, 1917.. (6) Agents' and Conductors' balances 12/31/17. (7) Assets December 31, 1917 collected. (8) Revenues prior to January 1, 1918. (9) Liabilities December 31, 1917 paid.. (10) Corporate transactions.. (11) Expenses prior to January 1, 1918. (12) Equipment retired.. (13) Road property retired and not replaced.. (14) Back mail pay.. (15) Profit on material sold. (16) Additions and betterments, Section 8 claims.. (17) Interest on New Orleans Terminal Co. bonds. (18) Allocated equipment rental... (19) Additions and betterments.. (20) Additions and betterments to allocated equipment. (22) Miscellaneous accounts receivable. (21) Estimated recoveries by Field Section.. (23) Allocated equipment-Due on cost. 28, 402,092, 74 16, 266, 311. 27 363.29 820, 035.80 597. 12 152, 811. 51 306,086. 17 391,347.60 9,770,666, 26 2,202,798, 13 14,917, 740. 02 2,876, 027.09 1,096, 641. 80 132, 101, 47 244,800.38 559, 734. 33 2,299, 777. 40 280,000.00 78,852, 17 5,712, 191.23 11, 966, 199. 35 54, 270.00 54, 394.95 106, 699, 119.68 106, 699, 119.68 The petitioner's allocation of the final settlements with the Director General is as follows: The following is a statement of the differences between the petitioner's and the Director General's allocations of the final settlements: After final settlements with the Director General, the petitioner, in accordance with the Interstate Commerce Commission's order, cleared its books of accounts relating to matters of Federal control, which resulted in a net credit to profit and loss accounts of $23,421,666.92. The years and amounts of the credits to profit and loss accounts are as follows: The respondent determined that the said net credit of $23,421,666.92 to profit and loss accounts was made up of items allowed by the Director General in final settlements, as follows: 2964-33-51 Item (6) of the respondent's allocation, described as "Amount to balance, $7,527,468.42," includes, among other debit and credit items, the following credit items: Additional compensation---- $4,836, 764. 58 Rental interest on completed additions and betterments.. Additions and betterments_. Interest on New Orleans Terminal Company bonds___. (B) Paragraph 14 of the stipulation is as follows: 321, 601. 07 239, 800.38 2,299, 777. 40 280,000.00 14. UNDERMAINTENANCE: In the final settlements with the Director General of the claims of the various carrier companies by him during the period of Federal control, there was allowed as undermaintenance by him to such respective carriers for his failure to maintain their respective properties during said period of Federal control not less than the following amounts: The maintenance expenditure of said respective companies, during the last ten months of 1920, exceeded the above respective amounts, aggregating $11,966,199.35. During the period of Federal control the Director General of Railroads did not adequately maintain the properties of petitioner as provided by the Federal Control Act (and by the contracts with those companies of petitioner with |