The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-08-23
PREVENTION Of
STOCK WATERING
New York Public Service Com
mission Adopts Rules CaIcu-
lated to Check Abuses.
MUST FILE STATEMENT
OATH REQUIRED AS TO TRUTH
OF FACTS SET FORTH.

New York, Aug-Drastic measures TO
prevent stock watering in lighting and
transit companies were adopted today by
the public service commission. These new
rules We're added to the existing consutu-
ton, one of which practically makes it
impossible for another merger of public
service companies by laying down the
most rigid rules regarding the holding of
the stock of another company by any pub
lie service company.
After prescribing that applications for
the issue of new stock bonds and notes
shall be accompanied by all certificates
OF the company's organization, the rules
provide that the application shall also
contain:
"a sworn statement in detail of the fl
nancial condition of the company, giving
the amount and kinds of the capital
STOCK or the standing and the rate and
amount of dividends declared thereupon
during the last five years: the outStand-
ing indebtedness, whether and how Sc
cured. and. if secured by mortgage or
pledge. copy of the instrument shall be
annexed to the petition, a description of
the road, and, in general terms. Of its
equipment, and a statement of the cost of
It's existing property.
Stock Held by Other Companies.
1T shall contain a statement of the
amount, if any, of its stock held by
other corporations and their names and
the amount held by each
"A statement of the amount and kind
of stock which the corporation desires
TO issue and, if preferred, the rate of
diNldendS secured to be paid by il, and
whether cumulative; a statement of the
amount of bonds. notes, and other evil
dence of indebtedness which the corpO-
ration desires to issue, the terms, the
rate OF interest, and whether and how
to be secured, and if to be secured bv a
mortgage or pledge. the terms thereof.
statement OF the use to which the
capital to be secured by the issue of
such stock, bonds, notes or other evil
dence of Indebtedness is to be put. with
definite statement of how much is TO
be used for the acquisition of property
how much fCr the construction, compile
ton, extension. or Improvement of facilf-
ties; how much for the Improvement of
the service. how much for the mainten-
ance of its service, and how much for
the discharge or refunding of its obIiga-
tons.
Must Describe Property Desired.
"a statement in detail of the property
which IS to be acquired with its value;
a detailed description of the cOnstruc-
ton, completion, extension or improve
ment of facilities set forth in such A
manner that an estimate may be made
OF its cost; a statement of the character
of Improvement of its service proposed
and of the reasons why the service
should be maintained from its capital: if
II is proposed to discharge or refund its
obligations; statement Of the nature and
description of such obligations including
their par value and the amount for which
they were actually sold and the applica-
ton of the proceeds.
A statement showing whether anV con-
tracts have been made for the acquisi-
ton of such property or for such con-
StruCuOn, completion, extension or i'm
provement of facilities, or for the disDo-
sitiOn of any of the stocks, bonds. notes
or evidence OF Indebtedness, which it is
proposed to issue on the value thereof
and if any such contracts have been made
copies thereof should be annexed to the
petition.
"A statement showing whether any of
the outstanding stocks or bonds or other
obligations of the company have been is
sued or used in capitalizing any fran
chise or any right to own, operate, or
enjoy any franchise or any contract for
consolidation or lease, and, If so, the
amount thereof and the franchise, right.
contract or lease so capitalized
If the stock is to be issued by a cor
pOratiOn formed by the merger OF con-
solidation of two or more corporations,
the petition shall contain a complete
statement of the financial condition of
the corporation so consolidated and of
their capital stock at par value thereof.
The petition shall contain a statement
of any other facts pertinent to the ap-
Mica tiOn -