New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-08-20
TO WATCH BOND ISSUES
Public Service Commission Makes
Ne7c Rules for Financierlng.

The Public Service Commission intends to keep
strict watch upon all future stock and BOND
issues Of corporations that come under Its
control. This fact made evident yester-
day by the adoption of new rule of procedure
requiring from corporations exact and minute
information in regard to their condition hnan-
cally when they make applications to increase
their capitalization or Indebtedness. The rule
provides that when such application is made 1t
must be accompanied with detailed report on
the use to which the additional money asked
for is to be put and detailed statement Of tho
reasons that make such additional capitalization
necessary.
The primary object Of the tule is to pre-
vent any chance of overcapitaizaton or the
watering of stock. ut is" explained one Of the
commissioners. for the purpose of checking
unnecessary and derogatory capitalization, bond
stock issues. and 10 insure safe and sane
policy on the part Of corporations as far as this
commission has power to insure it.
There three applications pending before
the commission for the issue of additional stock
or Indebtedness. They are:
BROOKLYN Union Elevated Railroad Company 0oo
Queens Electric Light Power Company. 100000
Under the rule. these companies will have
to hand in new petitions for permission to issue
the amounts desired in stock or bonds. Rule "a
provides that application for the approval of the
issue of stock bonds other evidence of in
debtedness must be made by petition. 1t pro-
vides that the petition shall contain. besides
other information the following:
(a) A sworn statement in detail of the financial
sG S of tae soa n the 1d Re r aae
and amount Of dividends declared thereon during
whether and how secured. and if secured by mort
gage or pledge. a copy Of the Instrument shall be
and n ge3era it's and ae
ment of the cost of Its existing property 1t shall
stock held by other Sorporations and their names
do A statement Of the amount and kind of stock
which the corporation desires issue. and. If pre-
IT, and whether cumulative. statement Of the
amount OF bonds notes and other evidence OF '. In
the terms the rate Of interest and whether and
how TO be secured. and # to be secured by mort
gage or pledge. the terms thereof.
Co A statement Of the TO which the capital
notes or other evidence Of Indebtedness is to be-
put s With s definite en- OF a9W bo t to
for the construction. completion; extension or i'm
inent of it's service how much for the maintenance
Of its service. and how much for the discharge or
20 A statement showing whether any OF the out
ssandlng STOCK or ponds or oIher 8DsauOns OK
ing any franchise or any right TO own operate or
tion or lease. and, If So the amount thereof and
the franchise, right contract or lease SO capital
% If the stock is to be issued by corporation
formed by the merger or consolidation Of two or
a complete statement OF the financial condition OF
on P g S3 SI he sot i for
and OF their capital stock at the value thereof
The commission adopted several additional
sections TO the general rule Of procedure for
corporations in petitioning for permission to
build roads extensions. The
lions greatly increase the amount of data
quired from the corporations
rEE, So
the horsecar lines south OF 18th street
Informed the commission that the methods en-
ployed IN building the concrete piles for the
East River tunna were infringements its
patent. II is thought that IL the company
should bring action the opening of the tunnel
would be delayed. The communication was re-
ferred to the commissions counsel.
The local gas and electric companies have not
fully compiled with the orders of the commits
sion requiring them to incorporate in their
ports the exact manner in which they obtained
their franchises. Commissioner Maltbie was APP
pointed q committee Of one to investigate
One of the commissioners filed n complaint
about the scarcity of ticket agents at tho Grand
Central Station.
The Civic League of The Bronx, of which
Commissioner Eustis was formerly president
Gent TO the commission number OF suggestions
about remedying the traffic situation in that
borough. 1t opposes third-tracking the Second
and Third avenue elevated lines and approves
the building of q subway.
Commissioners Wilcox and Bassett returned
Yesterday from short vacations. Chairman
Wilcox was forced to leave the city for a few
DAVIS because of Illness. He said he felt much
better as the result OF his vacation
To-day the investigation of the 1nterborough-
METROPOLITAN will be continued IN the aldermanic
chamber of City Hall. Frank Hedley will again
be on the stand. it Is understood. Mr. WINS.
special counsel. has been busy preparing his
case and said he expected to push it even moro
rapidly than be had up to this time. Mr.. Will
cox VIII preside