Gilpin observer., 1914-10-29


lie. and any sale of Its property by
such public utility shall be conclusive
ly presumed to have been of property
OF its duties to the public
ss to any purchaser, of such property
in good faith for value.
tbl No public utility shall hereafter
purchase or acquire. take or hold. any
part of the capital stock of any other
vii,ue of the laws of this State. with
out having been first authorized to do
so by the commission. Every assign
for assignment or transfer or any
stock by or through any person or cor
poration to any corporation. or other,
wise, in violation of any of the 'provis-
ions of this section shall be void and
of no effect. and no such transfershall
be made on the books of any public
utility, Nothing herein contained shall
be construed to prevent the holding of
stock heretofore lawfully ACQUIRED.
utilities to issue stocks and stock GER
tificates. and bonds. notes and other
evidences of indebtedness and to Gre
ate liens on their property situated
within this state is a special privilege.
the, right of SUPERVISION, regulation. re-
shall continue to be vested in the State.
and such power shall be exercised as
and regulations as the commission may
prescribe.
o. A public utility may issue stocks
and other evidences OF Indebtedness
payable at periods of more than twelve
months after the date thereof. for the
ramely: For the acquisition of such
property as is necessary for the prop
er conduct of its business or for the
construction, completion. extension or
Improvement of its facilities or for the
improgement oE maintenance Of it's
service, or for the discharge or lawful
reiundinS of its obligations. or for the
reimbursement of moneys actually ex-
pended from income or from any 9TH
lie utility not secured by or obtained
II ON the issue of stocks or stock GER
tifIcates. or bonds notes or other evil
utility. within five years next prior to
the filing of an. application with the
commission for the required authorize
ton. for any of the aforesaid pur-
poses except maintenance of service
and repl lacements. in cases where the
and vouchers for such expenditures in
such manner as to enable the commits.
sion to ascertain the amount of mon
eys so expended and the purposes for
which such expenditures were made:
proyided. that such public utility IN
law. shall first have secured from this
commission an order authorizing such
issue and stating the amount thereof
the issue or the proceeds thereof are
to be applied. and that. in the opinion
er the or 81 h. the prop
Tor by such issue is reasonably re-
Quired for the purpose or purposes
as otherwise permitted In the order in
the case of bonds. notes or other evil
dences of indebtedness. such purpose or
purposes are not. in whole in part,
reasonably charGeable to operating ex-
order, the commission shall hold
hearing and may make such additional
inquiry or investigation. and examine
such witnesses. books. papers, docu-
ments and contracts and REQUIRE the
filling of such data as it may deem of
& ssistance. The commission may by its
order grant permission for the issue of
such stocks or stock certificates. or
bonds; notes or other evidences OF in
or in lesser amount. or not at all. and
may attach to the exercise of it's per-
mission such condition or conditions as
Il may deem reasonable and necessary.
The commission may authorize issues
OF bonds. notes or other evidences of
or greater than the authorized or sub
scribed capital stock of public util-
ity corporation. and the provisions of
they contain inhibitions against the
creation by corporations Of indebt ed
ness; nriSs evidenced 10 by BY b9nds notes or 9th
lied or subscribed capital stock shall
have no application to public utilities
consent of the commission. apply the
issue of any stock or stock certificate,
or bond. note or other evidence of in
not specified in the commission's 'oSe oSe
of the amount authorized FOR
such purpose. or issue or dispose of
than those specified in such order. or
!, modification thereof. A public util-
ity may issue notes for proper pur
vision of this act or any other act paw
able at periods OF not more than twelve
the same. without the consent of the
but no such note shall. in
whole or In part be refunded by any
Of bonds. notes of anv term or charac-
ter or any other evidence of Indebted
No public Utility shall have have
power to capitalize any contract for
lease or merger. or issue
Indebtedness as a lien thereon without
the consent of the commission. The
commission shall have no power to au-
thorize the capitalization of the right
to be corporation, or to authorize
the capitalization of any franchise or
operate or enjoy any such franchise or
permit. In excess of the amount (ex-
elusive of any tax or annual charge)
litical subdivision thereof as the cop-
for the grant of such fran
chise. permit or right.
(c) The commission shall have the
power to require public utilities to ac
count for the disposition of the pro-
ceeds of all sales of stock and stock
and bonds, notes and 9TH
or evidences of Indebtedness. In such
form and detail as II NAV deem advis,
a BILE. and to establish such rules and
regulations as II may deem reasonable
and necessary to insure the disposition
OF such proceeds for the purpose or
purposes specified in the order.
(d) All stock and every stock certif-
cate. and every bond note. or other
evidence OF Indebtedness. OF n public
utility, issued without an order of the
authorizing the same then
in effect shall be void. and likewise all
stock and every stock certificate. and
every bond. note or other evidence OF
Indebtedness. of n public utility. issued
with the authorization OF the commits
sion but not conforming In its pro-
visions to the provisions IL any. which
IL IL required by the order of author
ization OF the commission to contain,
shall be void; but no failure In any
other respect to comply with the terms
or conditions OF the order of authorlz-
alton OF the commission shall render
void any stock or stock certificate. or
any bond. note or other evidence of an