in the written authority of the Engineer shall be covered, governed and controlled by all the terms and provisions of this contract, subject to such prices as may be agreed upon or fixed by the Chief Engineer.

If the Contractor shall decline or fail to perform such work or furnish such extra material as authorized by the Engineer in writing, as aforesaid, the Company may then arrange for the performance of the work in any manner it may see fit, the same as if this contract had not been executed, and the Contractor shall not interfere with such performance of the work.

Property and Right of Entry.

30. The Company shall provide the lands upon which the work under this contract is to be done, except that the Contractor shall provide land required for the erection of temporary construction facilities and storage of his material, together with right of access to the same.

The Contractor shall not ship any material or equipment until he has received written notice from the Engineer that he may proceed with said work or any part thereof.

Unavoidable Delays; Extension of Time on Parts of Work.

31. If the Contractor shall be delayed in the performance of the work from any cause for which the Company is responsible, he shall, upon written application to the Chief Engineer at the time of such delay, be granted such extension of time as the Chief Engineer shall deem equitable and just.

Suspension of Work.

32. The Company may at any time stop the work, or any part thereof, by giving ten (10) days' notice to the Contractor in writing. The work shall be resumed by the Contractor in ten (10) days after the date fixed in the written notice from the Company to the Contractor so to do. The Company shall not be held liable for any damages or anticipated profits on account of the work being stopped, or for any work done during the interval of suspension. It will, however, pay the Contractor for expense of men and teams necessarily retained during the interval of suspension, provided the Contractor can show that it was not reasonably practicable to move these men and teams to other points at which they could have been employed. The Company will further pay the Contractor for time necessarily lost during such suspension at the rate of............per cent. per annum on the estimated value of all equipment and fixtures owned by the Contractor and employed on the work which are necessarily idle during such suspension, said rate of... per cent. per annum being understood to include depreciation, interest and insurance. But if the work, or any part thereof, shall be stopped by the notice in writing aforesaid, and if the Company does not give notice in writing to the Contractor to resume work at a date within.... ...of the date fixed in the written notice to suspend, then the Contractor may abandon that portion of the work so suspended and he will be entitled to the estimates and payments for such work so abandoned, as provided in Section Thirtyeight (38) of this contract.

Expediting Work, Correcting Imperfections.

33. If the Chief Engineer of the Company shall at any time be of the opinion that the Contractor is neglecting to remedy any imperfections in the work or is not progressing with the work as fast as necessary to insure its completion within the time and as required by the contract or is otherwise violating any of the provisions of this contract, said Engineer, in behalf of the Company shall have the power, and it shall

be his duty to notify the Contractor to remedy such imperfections, proceed more rapidly with said work or otherwise comply with the provisions of this contract.

Annulment.

The Company, if not at fault, may give the Contractor ten (10) days' written notice, and at the end of that time if the Contractor continues to neglect the work, the Company may provide labor and materials and deduct the cost from any money due the Contractor under this agreement; and may terminate the employment of the Contractor under this agreement and take possession of the premises and of all materials, tools and appliances thereon, and employ such forces as may be necessary to finish the work. In such case the Contractor shall receive no further payment until the work shall be finished, when, if the unpaid balance that would be due under this contract exceeds the cost to the Company of finishing the work such excess shall be paid to the Contractor; but if such cost exceeds such unpaid balance, the Contractor shall pay the difference to the Company.

Company May Do Part of Work.

Upon failure of the Contractor to comply with any notice given in accordance with the provisions hereof, the Company shall have the alternative right, instead of assuming charge of the entire work, to place additional forces, tools, equipment and materials on parts of the work for the purpose of carrying on such parts of the work, and the cost incurred by the Company in carrying on such parts of the work shall be payable by the Contractor and such work shall be deemed to be carried on by the Company on account of the Contractor, and the Contractor shall be allowed therefor the contract price. The Company may retain the amount of the cost of such work, with...

..per cent. added, from any sum or sums due or to become due the Contractor under this agreement.

Annulment Without Fault of Contractor.

34. (a) The Company shall have the right at any time, for reasons which appear good to it, to annul this contract upon giving thirty (30) days' notice in writing to the Contractor, in which event the Contractor shall be entitled to the full amount of the estimate for the work done by him under the terms and conditions of this contract up to the time of such annulment, including the retained percentage. The Contractor shall be reimbursed by the Company for such expenditures as in the judgment of the Chief Engineer are not otherwise compensated for, and as are required in preparing for and moving to and from the work; the intent being that an equitable settlement shall be made with the Contractor.

Notice; How Served.

(b) Any notice to be given by the Company to the Contractor under this contract shall be deemed to be served if the same be delivered to the man in charge of any office used by the Contractor, or to his foreman or agent at or near the work, or deposited in the postoffice, postpaid, addressed to the Contractor at his last known place of business.

Removal of Equipment.

(c) In case of annulment of this contract before completion from any cause whatever, the Contractor, if notified to do so by the Company, shall promptly remove any part or all of his equipment and supplies from the property of the Company, failing which the Company shall have the right to remove such equipment and supplies at the expense of the Con

tractor.

Failure to Make Payments.

35. Failure by the Company to make payments at the times provided in this agreement shall give the Contractor the right to suspend work until payment is made, or at his option, after thirty (30) days' notice in writing, should the Company continue to default, to terminate this contract and recover the price of all work done and materials provided and all damages sustained, and such failure to make payments at the times provided shall be a bar to any claim by the Company against the Contractor for delay in completion of the work.

Monthly Estimate.

36. So long as the work herein contracted for is prosecuted in accordance with the provisions of this contract, and with such progress as may be satisfactory to the Chief Engineer, the said Chief Engineer will, on or about the first day of each month, make an approximate estimate of the proportionate value of the work done and of material furnished or delivered upon the Company's property at the site of the work. up to and including the last day of the previous month. The amount of said estimate, after deducting. ..per cent, and all previous payments, shall be due and payable to the Contractor at the office of the Treasurer of the Company on or about the 20th day of the current month. Acceptance.

37. The work shall be inspected for acceptance by the Company promptly upon receipt of notice that the work is ready for such inspection. Final Estimates.

38. Upon the completion and acceptance of the work the Chief Engineer shall execute a certificate over his signature that the whole work provided for in this agreement has been completed and accepted by him under the terms and conditions thereof, whereupon the entire balance found to be due to the Contractor, including said retained percentage, shall be paid to the Contractor at the office of the Treasurer of the Company within.. .....days after the date of said final certificate. Before the time of payment of said final estimate the Contractor shall submit evidence satisfactory to the Chief Engineer that all payrolls, materials, bills and outstanding indebtedness in connection with this work have been paid.

To the Members of the American Railway Engineering Association: The Board of Direction assigned to your Committee the following subjects:

(1) Continue investigation of proper grouping of different timbers for antiseptic treatment.

(2) Investigate the merits of various preservatives, giving special attention to oil from water-gas tar, and to the use of refined coal-tar in creosote oil.

These subjects were assigned cach to a Sub-Committee for consideration.

Three meetings of your Committee were held at the Association rooms, Chicago; the first on June 12, 1912, for the purpose of organizing and outlining the year's work, those present being Earl Stimson, Chairman; E. H. Bowser, Vice-Chairman; G. M. Davidson, C. F. Ford, T. G. Townsend, V. K. Hendricks, George E. Rex, Dr. H. von Schrenk; the second on November 13, 1912, those present being Earl Stimson, Chairman; E. H. Bowser, Vice-Chairman; George E. Rex, C. F. Ford, V. K. Hendricks, T. G. Townsend. C. M. Taylor, Dr. H. von Schrenk; the third on December 18, 1912, those present being Earl Stimson, Chairman; E. H. Bowser, Vice-Chairman; G. M. Davidson, C. F. Ford, V. K. Hendricks, T. G. Townsend, Dr. H. von Schrenk.

In addition to the subjects specifically assigned for this year's consideration by the Board of Direction, your Committee continued investigations on the following two subjects assigned in previous years, but on which no final report was made:

(3) The advisability of revising the specifications for fractionation of creosote oil.

(4) Recommend forms for the inspection of preservative processes.

(1) GROUPING OF TIMBERS FOR ANTISEPTIC TREATMENT. In the report last year your Committee stated the fundamental principles governing the grouping of timbers for treatment. These were adopted by the Association for publication in the Manual. It was the consensus of opinion that further recommendations could not be made