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(.) The expenditure in connection with the preparation, rendering, and settlement of the accounts.

(c.) The expenditure in connection with the deputation to the conferences and commissions of the agents of the board managing the through-traffic affairs, as well as of the administrations entrusted with the preparation of accounts and with the settlement of the balance sums.

The

2. The expenditure indicated under (a) of paragraph 1 are to be divided among the carriers concerned in proportion to the quantity of printed publications sent. remainder of the expenditure shall be divided in proportion to the gross profits.

ARTICLE 9.

1. The convention shall come in force from the 1st April, 1910. There is no time limit to the duration of this convention.

Each of the administrations concerned shall have the right of withdrawal from this convention, but not unless a six months' notice had been given to that effect. But up to the date of the withdrawal the said administration shall continue to participate in this through traffic, enjoying all the rights and bearing also all the liabilities connected with it.

2. The exclusion from the tariff of a certain station or port may take place only after a previous notice of three months.

3. The terms of the above notices shall be counted from the 1st of the month following the one during which the notice was given to the board managing the through-traffic affairs.

In case of a cessation of the passenger through traffic with Japan all the participants shall remain, up to the date of the cessation, members of it, enjoying all the rights, and bearing all the liabilities connected with this through traffic.

But even after the withdrawal from this traffic, or after the cessation of it, the respective administrations shall bear all the liabilities following from the organisation of this through traffic, the settlement of which may only subsequently be effected.

On the other hand, the said administrations shall participate in all claims against third persons following from this through traffic, the realisation of which may only subsequently be effected.

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2. In the returns indicated under (a) and (b) a free space of at least ten lines should be left between the separate interstation traffics for the insertion of the shares

of the carriers concerned.

3. The returns must be accompanied by the following enclosures :--

The return mentioned under (a): By the wrongly stamped and spoiled coupon- books and by the control-coupons of children tickets.

The return mentioned under (b): By spoiled registered baggage receipts. The return mentioned under (c): By coupon-books and registered baggage receipts collected from passengers.

The return mentioned under (d): By coupons collected from passengers.

4. If no coupon-books were sold or no registered baggage receipts were issued during a certain month, the corresponding returns, marked "nil," must be forwarded to the Returns Department of the Chinese Eastern Railway betimes.

Similarly, the Returns Department of the Chinese Eastern Railway must be informed in cases when, during the previous month, no coupon-books, coupons, or registered baggage receipts were collected from passengers.

5.-(1.) On strength of the returns received, the Returns Department of the Chinese Eastern Railway shall prepare the accounts.

(2.) The accounts shall consist of the two following parts:-

(A) Statement of accounts for the passenger and baggage through traffic, as per Form 5.

(B.) Abstract accounts, as per Form 6.

(3.) In the statement of accounts (A) must be indicated--

(a.) For the forwarding railways or ports, for each single station or port: the series and the number of coupon-books sold and wrongly stamped, the numbers of the registered baggage receipts issued, the gross weight of haggage, and the weight of the excess baggage for which freight had been paid.

(b.) The sums of money received and the shares payable to each carrier. (c.) The sums paid for claims for refund of money paid for the conveyance of passengers or baggage, as well as sundry other payments.

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Enclosure 3 in No. 1.

Rules relating to the Settlement, Keeping and Balancing of the Accounts in connection with the Manchurian-Japanese Passenger Traffic.

THE accounts are prepared, monthly, by the Returns Department of the Chinese Eastern Railway at Harbin.

2. The following returns shall form the basis for the preparation of the

accounts

(a.) The return of coupon-books sold, as per Form 1;

(.) The return of registered baggage, as per Form 2;

(c.) The return of coupon-books and registered baggage receipts collected from passengers, as per Form 3;

(d.) The return of coupons collected from passengers, as per Form 4.

These returns shall be prepared :----

(a.) and (b.) By the Controlling Departments of the carriers who have sold the coupon-books and issued the registered baggage receipts;

(e.) By the Controlling Department of the destination railway; (d.) By the Controlling Departments of the transit railways.

3.-(1.) The above enumerated returns shall be prepared for the period of one calendar month, according to the new calendar, and must be forwarded to the Returns Department of the Chinese Eastern Railway at Harbin, not later than the 17th, according to the old (30th, according to the new) calendar of the month following the one to be accounted for.

(4.) The abstract accounts (B) will show-

(a.) The debit, ie., the sums received by each carrier. (b) The credit of each carrier of his shares for the conveyance of

passengers

and

baggage.

(c.) The balance resulting from the comparison of the accounts.

6. In addition to the above, the Returns Department of the Chinese Eastern Railway must prepare, in accordance with Form 7, a special return of amounts of Government tax. This return must be forwarded to the manager of the through- traffic affairs, and must contain the gross sum received for the conveyance for the respective Russian section of the route, as well as the amount of the Government tax for that distance due and payable, as stipulated in paragraphs 15 and 16 of these rules.

7. For the traffic, for which coupon-books available by several routes are issued, the accounts are settled in accordance with the coupons collected from passengers.

S. Not later than the last day of the second month, following the one to be accounted for, the Returns Department of the Chinese Eastern Rail way shall forward to each of the carriers concerned and to the manager of the through-traffic affairs copies of the accounts and the Government tax return.

9. Should discrepancies be discovered during the checking of the accounts by the controlling departments of the carriers concerned, these should be adjusted by means of written communications with the railway which has sold the coupon-book, as well as with the Returns Department of the Chinese Eastern Railway at Harbin.

The claims to regulate discrepancies must be made before the expiration of the two years' term, counting the same from the date of the dispatch of the materials relating to the accounts by the above said Returns Department, because the archives of the accounts rendered will be kept by the Returns Department during two years only.

[2948 c-3]

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