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33-0
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<br />October 10, 1918
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<br />be purchased or constructed, as hereinafter provided by The Bureau in connection therewith; and
<br />also all taxes against the said property, which may be lawfully ~me and payable, (~f .anY) and
<br />all premiums on insurance, whether fire, accident, liability or other kind that it may deem
<br />wise or prop~e.r to carry for the ~rotection of itself or the City of Portsmouth and the County
<br />of Norfolk (it being agreed that there shall be carried such amo~nut and kind of fire insurance
<br />and of ~iability insurance as The Bt~reau shall consider reasonable and proper); and The Bureau
<br />shall set up and maintain as an operating expense a depreciatisn account to be kept in the manner
<br />a~ud the ftu~i set aside as prescribed by the Interstate Commerce Co~nission in their classifica-
<br />tion of acco-~uts~
<br /> SEC0~D: The Bureau may ~r~rchase~from time to tLme, during the period that it operates said
<br />ferries,--~l the property, real and personal, that it may deem expedient or wise to p~rchase
<br />for and on behalf of the said City of Portsmouth and ~he County of Norfolk, for use in connection
<br />with the operation of said ferries, and may construct andmmake all such Lmprovements and better-
<br />ments as it may deem wise or expedient.
<br /> THIRD: ~ne Bureau will pay out of the profits derived from the operation of said ferries
<br /> or useo---o-~said properties, the annual sttm of One Htuudred and Thirty-five Thousand, Two Hundred
<br /> ($135,200.00) Dollars, being the present rental thereof, ~ equal monthly installments, one-
<br /> half thereof to the City H~ Portsmouth and one-half to the County of Norfolk, and wilt, semi-
<br /> annully, at the end of each six months of each fiscal year, pay to itself the balance of an~
<br /> net profits derived from said ferries as a credit on thedebt ~he~.it by the City of Portsmouth
<br /> and the County of Norfolk, as hereinafter'set forth, such payments to be credited as herein-
<br /> after provided.
<br /> FOURTH: The City of Portsmouth and tae County of Norfolk shall be indebted to The Bureau
<br /> as folo~:
<br /> (a) For such amount as The Bureau shall, i~its judgment, pay the Ferries Company
<br /> in compensation for the latter company's prospective profits for t~ttnexpired perio~ of its
<br /> lease and all expense indident thereto, to be known as ~'The Lease ~ancellation Debts~
<br /> (b) For such amounts as ~he Bureau shall pay to the Ferries Compa~uy as the result of the
<br /> appraisal rudder the lease agreement between said Ferries Company and the City of Portsmouth and
<br /> the County or. Norfolk, as hereinafter provided, to be know~ as.the ~Lease AppraisaIDebt.~
<br /> ~ O
<br /> (c) For s~ch amounts as The Bureau shall pa~ from t~m? t t~ue for real estate, personal
<br /> property, material, labor, betterments, improvements, d~edg~ng, engineering and all incidental
<br /> expenses, including alt amounts which shall be paid out by The Bureau under this contract which
<br /> are not chargeable to e~pense of operation and which are not represented in the two debts set
<br /> ferth under the letters '~a~ and ~'b'~, all a~ounts covered under this clause to be known as the
<br /> ~P~_operty Debts=
<br /> All of the above mentioned indebtedness shallbear interest at the rat~ o~ five per cent
<br /> per annum from the time that the respective payments shall be made by The Bureau for said pro-
<br /> perties and improvements.
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<br /> FIFTH: The ~ounts paid by The Bureau. to itself from the balance of the net profits, as
<br /> set f~r--~in Cla~se Three (~), shall be ~dited, first to the interest on the e~tire indebted-
<br /> nessthen due-and then pro-rata to th~ debts en~erated above in the proportion that each of
<br /> said debts bears to the total indebtedness, and The Bureau so keep its books that the payments
<br /> made by it for the various purposes mentioned and the credits applied therec~, as herein ~ro-
<br /> vided, shall be clear and distimct.
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<br /> SiXT~E: Should the City of Portsmouth and the County of Norfolk so desire there shall be,
<br /> at t~e ~piratien of t~ree years after the conclusion of peace with Gelnaa~, as evidenced by
<br /> ~he proclamation of the President of the United Sta~es, an appraisal of all the property, i~-
<br /> provements, dredging, betterments, engineering expenses and other things rePr~sented~by the
<br /> Property Debt, in-order to determine their fair va!~e as a part of'a going concern at-that time;
<br /> the said appraisal shall be made ~y five disinterested arbitrators, one to be selected by the
<br /> City of Port~mouth, one by the County of Norfolk, two by The Bureau and the fifth by the four
<br /> tlr~s chosen, but none of said arbitrators shall be residents or citizens of the City of Norfolk,
<br /> the City of Portsmouth ~ the County of Norfolk, Should the amount found by the arbit~at0rs
<br /> as a fair value for said properties, improvements[ and better~nents, d~edging, etc., be less than
<br /> the principal amount then due on The Property Debt by the C~ty of Portsmouth and the COUnty of
<br /> Norfolk to ~he B~treau, then the ~meunt of said award, .~eget~er with anyunpaid interest on The
<br /> Property Debt, ~all be taken as the ~mount due The~Bureau zn place of The Property Debt, and
<br />I the same shall ~ear interest at the rate of five per cent per ann~ until paid, and in the e-
<br /> vent of the substitution of the said appraisal for sa~d P~operty Debt, then the ~mount put a-
<br /> side as the Depreciation Fund, as above provided, shall become the ~roperty of The Bureau; other-
<br /> wise upon payment in full of The Lease Cancellation Debt, The Appraisal Debt and the Property
<br /> ~ebt with interest, the sa~id Depreciation F~ad shall be turned over to the C'Zty 'of Portsmouth
<br /> and the County of Eorfolk.
<br />
<br /> S~JE~i~: The period during which The Bureau may, operate the ferries, as herein provided,
<br /> shall co~----~ue for such length-, of time ~tuti! tl~ ~ai? ip.~eb~dness, w~th ~nter~s? ~ aforesaid,
<br /> s~ll be fully liquidated and paid fro~. tb~ l~rof~ts ~n ~r~ manner 'as ~ere~ se~ ~or~n, prov~e~,
<br /> however, that the City of Portsmouth and the County o~ Norf?~.~a~.a~ an~ t~me~, re-t~ pos-
<br /> session of said ferries and their operation, upon pay~ sa~d ~n~eo~e~uess and Lr~tersst, or so
<br /> much thereo~ as may th~ remain u~paid.
<br />
<br /> EIGHTIi: In the operation of said ferries, The Bureau sP~ll have cc~pleteand entire con-
<br /> trol ~-~of in every respect; may adol~ from time to tLme such schedule for the~ boat service
<br /> as it may desire and may make.~d c~uge fr~ntime to time the rates of ferria~e but s~ch rates
<br /> sh~ll not be less than the present rates.
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<br /> NINTH: The properties so purchased or constructed shall become in~_ediately the property
<br /> of the--~y of Portsmouth andthe County of Norfolk and title shall be taken in their names
<br /> subject to the lien, h~reby specifically reserved, of The Bureau for all moneys advanced for
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