STATE ROADS. 1207

results of its operations. In such study, the Authority may use and shall
be entitled to rely upon the report of any reputable certified public ac-
countant. If the Authority, after such investigation, shall find that the
operating income of the Ferry, exclusive of subsidies, after giving effect
to such reduction in expenses of operation and administration as the Au-
thority believes reasonably practicable, and before taxes and depreciation
would have been, for the year 1934, and would have been also for the
average over the five year period 1930 to 1934, inclusive, sufficient to have
paid the annual debt service requirements on One Million Two Hundred
Thousand Dollars ($1,200,000) principal amount three per cent. (3%)
Fifteen Year "Ferry" Bonds, including both the interest thereon at said
rate of three per centum (3%) per annum and annual installments of
principal as such installments fall due, then the Authority shall offer One
Million Two Hundred Thousand Dollars ($1,200,000) in principal amount
of Fifteen Year Three Per Cent. (3%) "Ferry" Bonds secured as in this
sub-title provided, for the real property, easements, franchises (except its
corporate franchise), docks, wharves, terminals, ferry boats, other vessels,
motor vehicles, furniture, equipment and supplies of the said Claiborne-
Annapolis Ferry Company. In the event that the offer by the Authority
is accepted by the Ferry Company, any agreement for the transfer of the
ferry property to the Authority shall provide for the delivery of said
property free and clear of all liens and encumbrances, and for the proper
maintenance of the property from the date of the agreement to the time
of transfer. In the event that, prior to the date of transfer, any of such
property, allowing for normal wear and tear and for depletion of supplies
or equipment incident to operation, has been destroyed or disposed of, then
the Claiborne-Annapolis Ferry Company shall at the time of transfer, pay
over to the Authority the value of any such property, as shown by the books
and records of the Company. The Authority is further directed to make
all other reasonable and appropriate provisions in the said contract as to
insurance, as to indemnity against liens, indebtedness or claims against,
the property of the Ferry Company, and in all other respects to assure the
Authority that the value of said Ferry Company's physical assets and fran-
chises shall be maintained until the date of delivery thereof, or that appro-
priate compensation be made for any deficiency therein. The Authority is
further empowered to enter into any leasing or operating agreement that it
may determine necessary or advisable to protect its interests, pending the
delivery of the property. Upon the delivery of the "Ferry" bonds to the
Claiborne-Annapolis Ferry Company and the transfer to the Authority by
the Ferry Company of its property, all the right, title and interest of said
Ferry Company in and to such property shall be divested immediately, and
the sole rights and remedies of the Ferry Company thereafter shall be
with respect to the "Ferry" bonds. The ferry shall, upon its transfer, be
operated by the Authority, which shall have full power, subject to any
limitations in this sub-title, and in any contract with the holders of any of
its bonds, to fix and determine schedules of trips and rates of fare for