"XXII\٨ سكة حديد بغداد" [و‎‎٣‎٢] (١٩٤/٦٢)

45
Article 35.
The Imperial Government guarantee to the concessionnaires an annuity of
11,000 fr. per kilometre constructed and worked, and also a contract sum of 4,500 fr.
per annum for working expenses in respect of each kilometre worked.
This annuity of 11,000 fr. shall be met by an Ottoman State loan hearing interest
at 4 per cent., with a sinking fund of 0 , 087538 per cent., redeemable during the period
of the concession. Consequently the concessionnaires will be entitled to a nominal
sum of 269,110 fr. 65 c. of this State loan for each kilometre constructed and opened
to traffic, and the concessionnaires shall be debarred from demanding other amounts
on this head from the Imperial Ottoman Government.
^ The total nominal amount of Government bonds accruing to the concessionnaires by
the terms of the foregoing arrangement shall be issued to them by the Imperial Ottoman
Government on the signature of each special convention for each section; hut the con
cessionnaires shall make good to the Imperial Ottoman Government the sums which the
latter have paid during the period of construction for the service of the bonds issued
to the concessionnaires, viz., till the date on which each section of^ the railway is
provisionally accepted. These sums shall be placed by the concessionnaires in the
hands of the Public Debt for the account of the Imperial Ottoman Government.
The Imperial Government reserve the right of modifying at any moment the
system of payment of the kilometric annuity of 11,000 fr. fixed in the first paragraph of
the present article, after redemption of the bonds issued in respect of the said annuity.
As soon as the growth of the traffic and receipts and the financial situation permit
the issue by the concessionnaires themselves of bonds of their own to replace the
Government bonds which have been issued to them by the Imperial Government,
the concessionnaires shall come to an agreement with the Imperial Government for the
purpose of carrying out this arrangement.
For the first section of 200 kilom. beyond Konia the face value of the bonds to be
issued by the Imperial Ottoman Government to the concessionnaires is fixed at
54,000,000 fr. But as soon as this section is finally accepted and the length of the
completed line is fixed, the exact nominal value of the bonds accruing to the concession
naires for that section shall be calculated at the rate of 269,110 fr. 65 c. per kilometre.
Any surplus over this nominal amount shall be calculated at the issue price, plus
interest at 4 per cent, accrued up to the date of payment, and the sum thus ascertained
shall be paid in cash by the concessionnaires into the Imperial Treasury. The calculation
shall be made at a minimum of 81J per cent.
The Ottoman Anatolian Bailway Company guarantees to the Imperial Ottoman
Government the construction of the aforesaid first section of 200 kilom. until the work
on this section is completed.
In the event of the Imperial Ottoman Government deeming it necessary, they may
also require the Ottoman Anatolian Bailway Company to guarantee other sections, and
the Ottoman Anatolian Bailway Company shall have the right so to do.
The contract sum of 4,500 fr. per annum for working expenses in respect of each
kilometre opened to traffic will be guaranteed to the concessionnaires by a special
convention for each section simultaneously with the convention regulating the annuity
of 11,000 fr.
As regards the first section of 200 kilom. beyond Konia, the above-mentioned
contract sum of 4,500 fr. per kilometre per annum is secured to the concessionnaires on
the surplus of the guarantees already assigned to the lines of the Ottoman Anatolian
Bailway Company.
The service of the Government bonds which are to be issued for the aforesaid
kilometric annuity of 11,000 fr. shall be secured on the special appropriations agreed
on with the Imperial Government before work is begun on each section.
The Imperial Ottoman Bagdad Bail way Company, on its park further pledges,
irrevocably and inalienably, to the holders of the said bonds the line from Konia to the
Persian Gulf and its branches with their rolling stock. Similarly, and for the same
purpose, it assigns its share in the receipts from this line after payment of the working
expenses, but the bondholders shall not be entitled to intervene in the administration of
the company.
The aforesaid share of the receipts, after deducting working expenses both the
said share and the amount of expenses to be determined by the company s hooks shall
be paid annually, if need be, by the company to the Administration of the Ottomaii Public
Debt for the service of the bends. The Imperial Ottoman Government shall refund to
the company any sums that the latter may have supplied under this head for the service