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-9Panama Kailroad Company, a corporation created by an Act of the Legislature of the State of New York passed on April 7, 1849, as amended by an Act of that legislature passed on April 12, 1855, and which was wholly owned by the United States, shall be, either in its original amount of $1 or in the amount to which it subsequently has been or is increased as required by law, evidence of the ownership of the Panama Canal Company by the United States. (b) The President of the United States or such officer of the United States as he designates, shall be known as the "stockholder", and shall represent the United States in its capacity as owner of the Company. (c) The amount of the receipt referred to by subsection (a) of this section shall be increased by subsequent additional direct investments of the United States, in excess of repayments to the Treasury and extraordinary expenditures and losses applicable as offsets to such investments under the provisions of subsection (f) of this section, due to: (1) funds advanced to the Panama Canal Company from the Treasury within such appropriations as the Congress from time to time may make for the purpose of meeting increased capital needs; and (2) transfers to the Panama Canal Company from otner Government agencies (or, conversely, decreased by transfers from the Company to other Government agencies), pursuant to applicable provisions of law, of business enterprises, facilities, appurtenances, and other assets, less liabilities assumed in connection with the transfers. (d) Transfers of properties and other assets from or to other Government agencies pursuant to paragraph (2) of subsection (c) of this section shall be at such appropriate amounts as are agreed upon between the Panama Canal Company and the agencies concerned and approved by the Director of the Bureau of the Budget. In the determination thereof, due consideration shall be given to the cost and probable earning power of the transferred assets, or usable value to the transferee if clearly less than cost, and adequate provisions made for depreciation of properties and equipment, obsolete or otherwise unusable inventories and other reasonably determinable shrinkages in values, and, insofar as practicable, there shall be excluded from the amount any portion of the value of the transferred property which is properly allocable to national defense. The board of directors shall certify to the Secretary of the Treasury the amount of each transfer, the amount of any accumulated repayments to the Treasury or extraordinary expenditures or losses applicable as offsets to the amount of the transfer under the provisions of subsection (f) of this section, and the effective date of the transfer. (e) In order to reimburse the Treasury, as nearly as possible, for the interest cost of the funds or other assets directly invested in it, the Panama Canal Company shall pay interest to the Treasury on the net direct investment of the Government in it as defined by subsections (a), (c) and (d) of this section, and shown by the receipt described therein, at a rate or rates determined by the Secretary of the Treasury as required to reimburse the Treasury for its cost. Payments of the interest charges shall be made annually to the extent earned, and if not earned shall be made from subsequent earnings. (f) The Panama Canal Company shall account for its surplus, as follows: (1) the total net income from operations from and after 1904 (when the Government acquired control of the Panama Canal Kailroad Company), plus the undistributed net income prior to 1904; less
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