C-14 - Railway Act

Section 135 Disposition versions

1977-12-31

135. (1)  The moneys at the credit of the surplus tolls account may be used in making good any deficiency caused by the gross receipts of the company in any subsequent year being insufficient to pay the working expenses and a dividend of ten per cent on the total amount already paid on the capital stock of the company; provided that, whenever the total amount to the credit of the surplus tolls account, including any interest accrued thereon, shall equal one-fifth of the average annual gross receipts of the company computed from the actual receipts for the then preceding five years, the company shall, by by-law, make a sufficient proportionate reduction in the tolls and fares so that the probable net earnings thereafter shall be such as to make it necessary to resort to the moneys at the credit of the surplus tolls account in order to meet any such deficiency in whole or in part, but so soon as the amount at the credit of the surplus tolls account is exhausted, the rates and tolls may be again raised.

(2)  Provided that if, during the ten years immediately succeeding the incorporation of the company, the gross receipts as aforesaid shall in any year be insufficient, after paying the working expenses, for the railway to pay a dividend of five per cent on the total amount paid up of the capital stock of the company, the company may charge against the surplus tolls account, an amount sufficient, after declaring any dividends earned during such year, to equal a dividend of five per cent per annum on the total amount actually paid on the stock of the company; and the company shall not be bound to reduce the tolls as hereinbefore provided, until the amount at the credit of the surplus tolls account shall equal an amount sufficient, less any dividend earned during the year, to pay the said dividend of five per cent in every such year, during the said period of ten years, in addition to one-fifth of the average annual gross receipts of the company computed as aforesaid.

R. S. 1964, c. 290, s. 152.