Arizona republican., 1913-10-30

none of the automobiles running on
 the streets were the property of the company.
 The decision, in which Jones and ! Geary agree, concluded:
 An audit and examination of the | records of this company disclose that
 the company is insolvent and that not the least of the liabilities consist of stock sold and negotiated for sale con- sums due on subscriptions received for trary to law and in violation thereof. Tt seems unfortunate that such stock was sold contrary to the provi- sions of aid chapter 69 aforesaid, and that an effort was made to engage in the transportation business without sufficient capital or equipment. It would have been more advantageous to have made the application before at tempting to sell stock or mourning lia- ! bilities that could only be met by sub ! sequent sale of stock, a permit for
 which is contingent upon the company
 being solvent.
 This commission has no option or
 discretion under the statute hereinbe- fore quoted in the matter of refusing a permit to this company. This, how ever, is done without prejudice. Representative of this company who have appeared before the com mission and those actively interested
 in promoting the enterprise are sincere, earnest and honest men.
 'Solvency being one of the chief requisites precedent to the issuance of , a permit to sell stock, and this com mission finding the applicant to be in- leo our approval and the application is
 hereby denied.'
 Commissioner Cole agreed and con- firmed the decision of the other two members of the commission, but he
 added to the decision further reasons , for the denying of the petition of the company. Cole pointed out the fact
 that the preferred bonds in the com
 pany were silent in the actions of the company, thus being directly in the control of the holders of the common stock. These shares of preferred stock further bear a yearly dividend of six
 per cent, which the company must pay
 by the selling agreement. an agreement
 which no corporation should make as , a direct guarantee prior to the time when they find whether or not they can pay these dividends.
 But the most brazen and open flaw
 in the charter found by the commission : is that implying that the holders of the common stock may call in the pre- ferred at any time they see fit. paying for it at par value. MT. Cole therefore concludes that the plan for selling and holding the stock of the company is unfair unjust and negotiable, and that for these reasons in addition to the above the commission should refuse to allow the selling of stock of the Rapid | Transit company
 Other Actions.
 In the matter of the petition of the Navajo Railroad company asking that that company be permitted to readjust the prices of the bonds which the com mission gave them authority to issue
 on September 9th, the commission ord-
 cred that the original order stand. The company formerly asked that they be
 permitted to issue s1.25O, 900 in bonds of $1,O00 denomination each. The present request is that this be amend ed to read $7,5OO valued at S100 each
 and 1000 valued at $500 each. The commission refused the request. In response to the request of the government that the Navajo Lumber
 and Timber company bonds be retired
 in twelve instead of twenty years, the
 commission reduced the time as it was
 formerly set, from twenty to the time
 required by the government An extension of the time which the
 commission gave to C. W. and l. A.
 Van Dyke in which to file with them papers and data in connection with the Granite Springs Water company's
 suit against the Maima Water com
 pany, was denied, and the data was
 ordered filed inside the original ten
 days. The time for the filing was up ! last evening