The daily morning journal and courier., 1907-06-11
MUST CONTRIBUTE
 ORIGINAL CASH Proposed Law Governing Public Service Cor
 porations. LESS WIND AND WATER Committee on Incorporation Draw and Report Eff
 fective Measure.
LESS WIND AND WATER

 by the refusal of the general assembly to compel new trolley promoters to chip in 20 per cent. of their capital stock before granting charters, has re- ported favorably a proposed law cov- ering that and similar points. There is great curiosity among capitol corridor to see what comes of this more pretentious general enterprise to fight the wind and water" fends.
 The bill in full as reported is as fol- lows:
 Favorable on a bill concerning public | service corporations. It is as follows: | No corporation hereafter Incorporated | and no corporation heretofore incorpor- ated which has not organized and which is unfavored by the state to own or operate in this state any railroad, railway or tramway, whether the mo- tive power be steam, electricity or oth- CT power, or to do in this state the business of power company, gas company, an electric light company, q telephone company, telegraph com pany, a sewer company or a water company, shall commence business un- It'll a certificate shall have been filed In the office of the secretary of state signed and sworn to by a majority of the directors of such corporation set ting forth the following facts: l, The name residence and address of each of the directors and officers of the corpor- ation at the time of the execution of such certificate. 2. That 20 per cent. of the par value of the capital stock ac- tually issued has been paid in cash. 3, That the corporation has transacted no business except business connected with it's organization, and has no lla- bilities of any nature.
 Section 2. Whenever any corporation empowered by the state to own or op crate in this state any railroad, rail- way or tramway, whether the motive power be steam, electricity or other power, or to do in this state the busi- ness of a power company, gas com lpany, an electric light company, a tele- phone company, a telegraph company, sewer company or water company, shall hereafter increase its capital stock. Such new shares as are neces- sary to produce the amount of in- creased capital stock which has been authorized shall be offered at not less than par to the stockholders of record in said company, approximately to the number of shares held by each such e+ oIJo, ,oa,,aoti.yaI1, o+ Jota of the vote effecting such increase. The directors, after the making of sue hin- crease, shall cause written notice of said increase to be given to each such stockholder stating the amount of such increase, the number of shares or l fraction of share to which he is en- titled, the price thereof, and fixing a time, not less than thirty days after the date of said notice, within which he may subscribe for such additional stock Each stockholder may, within the time limited. subscribe for his said allotment of said stock which shall be Ipaid for in cash before the issuing of the certificate thereof. If, after the expiration of the time limited in said notice, any shares remain unsubscribed for by the stockholders entitled to sub scribe for the same the directors may sell such unsubscribed shares at not less than the price at which they were loffered to the stockholders, or by auc-
 tion to the highest bidder, said shares
 to be actually paid for in cash. Notice of the time and place of such sale shall
 be published at least five times in some daily newspaper having a circulation in
 the town where such corporation is To-
 cated, the first publication to be not
 less than ten days before the date of
 such sale.
 Section 8. Within thirty days after
 the issue of any such Increased capital
 stock by any such corporation, said
 corporation shall cause to be filed in
 the office of the secretary of the state a certificate, signed and sworn to by a
 majority of its directors, setting forth
 the following facts 1, The number ot shares of such increased capital stock
 issued and the price received therefor g. The number of shares taken by Its stockholders and the price at which
 such shares were offered to said stock
 holders. 3. The number of shares sold
 to the public at private sale, the names of the persons to whom such shares
 were so sold, thenumber of shares solo to each person, and the price received therefor. 4. The number of shares sold
 at auction, with the names of the pur-
 chaser or purchasers thereof, the mum.
 Der of shares sold to each, and the price
 received therefor
 Section A. Whenever any corporation
 mentioned in Section shall hereafter
 acquire the franchise and property oi any other company it shall within six ty days thereafter cause to be filed 1T the office of the secretary of the state a certificate signed and sworn to by z majority of it's directors and setting } forth the following facts: 1. Tht . amount of the capital stock and bond ed indebtedness of the company so ac quired. } The amount paid for thu stock of said company, 3, That, in pay lment for it's franchise and property st acquired, it has not, in the case of ; railroad or railway company, issued l bonds in violation of Chapter 149 of tn 3 Public Acts of 1905, or in excess of tn 7 amount authorized by said chapter, or , in the case of any company named il t Section of this act, other than a rail !. road or railway company, in excess 0 ] 75 per cent of the actual value of tn . property so acquired.
 e Section ,. Every certificate requires e by this act to be filed with the secre l tary of the state shall be examined b, 1 said secretary. and. if he shall fin