Gilpin observer., 1914-10-15

suCn PUBIC ut1l1ty snail be conclusive |
~ presumed to have been of property
which is not useful or necessary in the
performance of its duties to the public,
's to any purchaser of such property
(b) No public utility shall hereafter !
or acquire. take or hold. any
public utility. operating under and by
virtue of the laws of this State. with
out having been first authorized to do
20 by the commission. Every assign
inent, transfer. contract or agreement
fcr 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
be made on the books of any public
utility. Nothing herein contained shall
be construed to prevent the holding OF
utilities to issue stocks and stock GER
tificates. and bonds. notes and. other
ate liens on their property situated
within this state is special privilege.
striction and control of which is and
shall continue to be vested in the State,
and such power shall be exercised as
provided by law and under such rules
and regulations as the commission may
prescribe.
OBJ A public utility NAV issue stocks
and other evidences of Indebtedness
payable at periods of more than twelve
months after the date thereof. for the
following purposes and no others.
ramely: For the acquisition of such
property as is necessary for the prop
er conduct of it's business or for the
completion. extension or
improvement of it's facilities. or for the
Improvement or maintenance of its
service or for the discharge or lawful
refunding of its obligations. or for the
reimbursement of moneys actually eN
pended from income or from any 9th
or moneys in the treasury of the pub
lie utility not secured by or obtained
II ON the issue of stocks or stock Gers
tificates, or bonds. notes or other evil
dences of Indebtedness of such public
utility, within five years next prior to
the filing of an application with the
tion, for any of the aforesaid pur
poses except maintenance of service
and .replacements. in cases where the
applicant. shall have kent its accounts
and vouchers for such expenditures in
such manner as to enable the commits
sion to ascertain the amount of mon
which such expenditures We're made;
provided that such public utility. in
law. shall first have secured from ths
commission an order authorizing such
issue and stating the amount thereof
and the purpose or purposes to which
the issue or the proceeds thereof are
to be applied. and that. in the opinion
of the commission, the money. prop
for by such issue is reasonably re-
quired for the purpose or purposes
SDecl1led IN the order. and that, except
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 or in part.
reasonably chargeable to operating ex-
penses or to income To enable 1t to
determine whether 1t will issue such
hearing and may make such additional
inquiry or Investigation. and examine
stna, such witnesses books; papers, docu-
filling of such data as it may deem of
assistance, The commission may by it's
order grant permission for the issue of
such stocks or stock certificates. or
bonds, notes or other evidences of in
debtedness in the amount applied for.
may attach to the exercise of Its per-
mission such condition or conditions as
II may deem reasonable and necessary
The commission may authorize issues
of bonds. notes or other evidences of
Indebtedness. less than. equivalent to
or Eredater sd than s the authorzed 1T hG or sub
ity corporation. and the provisions of
the statutes of this State. in so far as
creation. by corporations of indebted
ness. evidenced by bonds. notes or 9TH
erwise. in excess of their total author
lied or subscribed capital stock shall.
have no application to public utilities
No public utility shall. without the
consent of the commission. apply the
or bond. note or other evidence of in
debtedness. or any part thereof or any
Ro spesfed n the oT
der. or to any purpose specified in
the commissions order in excess
such purpose. or issue or dispose Of
the same on any terms less favorable
than those specified in such order. or
ity may issue notes for proper pur-
poses and not in violation of any pro-
vision of this act or any other act. pay
able at periods of not more than twelve
months after the date OF issuance of
the same. without the consent of the
commission. but no such note shall. in
issue of stocks or stock certificates. or
Of bonds. notes of anv term or charac
ness. without the consent of the COM
mission No public utility shall have
power to capitalize any contract for
consolidation. lease or merger. or issue
any bonds. notes or other evidences of
Indebtedness as lien thereon without
the consent of the commission. The
commission shall have no power to au-
thorize the capitalization of the right
to be a corporation. or to authorize
permit whatsoever or the right to own
operate or enjoy any such franchise or
permit. In excess of the amount (ex-
elusive of any tax or annual charge)
actually paid to the Ttnte or to DO
litical subdivision thereof as the con-
sideration for the grant of such fran
chise. hermit or right.
tc) The commission shall have the
power to require public utilities to ac-
count lOf tne disposition OF tne pIO-
ceeds of all sales of stock and stock
certificates. and bonds. notes and 9TH
or evidences OF Indebtedness. in such
form and detail as 1t may deem advls-
able. 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
Cd All stock and every stock certlfi-
cate. and every bond. note. or other
evidence OF Indebtedness. OF public
utility, Issued without an order of the
commission 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. II any. which
1t Is 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 authoriz-
alton OF tho commission shall render
void any stock or stock certificate. or
any bond. note or other evidence of In
debtodncss. except as to corporation
~ In n IN Of har 40 iaa