Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-02-18

alton of the court of commerce, III the
regulation of stocks and bonds and in the
inclusion of electric railroads in the scope
of the measure.
In many particulars the language of the
bill is modified and new sections are add
ed The amendment relating to the COM
merce court limits its power to that OF a
federal circuit court to meet the opJec-
ton made to the original provisions that
the court would have more extensive
Jurisdiction than the existing circuit
courts of the United States.
The stock and bond provision is amend
ed so as to permit of the reorganization
of railroads and the merger of railroads
not directly prohibited. The act estab-
lished the general principle that no stocks
shall be issued by railroads except al
par, and no bonds, except at their whole
sale market or selling value as ascertain
ed by the Interstate Commerce Commls-
sion. and that where either stocks or
bonds are paid for in property its falr
value must be ascertained by the commls-
sion.
One section deals specifically with the
issue of stocks and bonds on the reor-
ganization of existing companies and au-
thoriZes the issue of stock to an amount
not exceeding the aggregate of the STOCK
of the company reorganiZed, and poilus
to an amount not exceeding the outstand-
ing bonds and other obligations, including
new money paid in, providing the aSgre-
gate interest charges to be paid by the
reorganized company do not exceed the
;nta charges
In the case of the consolidation or mer-
ger of two or more railroads, the stocks
and bonds of the consolidated or merged
company are not to exceed the aggregate
amount of stock and bonds of the con-
stituent companies, nor be in excess OF
the fair estimated value of the proper
ties of the consolidated or merged COM
panies ascertained by the commission.
A railroad company is left free to ac-
quire stock and bonds of another non
competing railroad. provided the aggre-
gate amount of stock and bonds issued
for such acquisition shall not exceed the
fair value of the property, as ascertained
by the commission or the aggregate par
value of the stock and bonds acquired
without increased aggregate interest pay
able on such bonds.
These provisions it is believed, will
prevent the bill interfering with any legit-
innate financing, while effectually prevent
ing the issue of stock and conds without
proper legal safeguards. The bill further
provides that any officer of a railroad
corporation who violates the law may
be punished by a fine of $4,000 or three
The amended bill further provides that
where notes or other obligations made in
conformity with the act are secured in the
pledge of bonds, a sale of the pledged
bonds to enforce the loan must be had
at public auction; and notes may be
made convertible into pledged bonds on
the basis of the reasonable market or
selling value of the bonds as approved by
the commission. The amendments are so
framed that the ne wact shall not oper-
ate to impair any contract, mortgage or
other instrument made prior to the pas
sage of the act
The electric railways in the amended
bill are granted the concession they de-
sired, as ascertained at the recent hear
inss wherein it was complained that the
bill was discrimination in favor of the
steam lines to the financial detriment of
TIE electric roads