Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-05-19
STATE HOUSE

Under date Of May IA the Public
Utilities Commission rendered de-
cision which is not only important IN
itself for the purposes OF the Dig
Maine corporation, The Bangor Pow
err Company, but contains outlines OF
general policies the Commission
deems proper in the consideration OF
application for approval OF issues OF
securities. The hearing in the
application of The Bangor Power
Company for authority to issue GER
tain securities was held at the office
of the Commission May II and John
r. Graham of Bangor appeared with
Attorney E. c. Ryder Of the same city.
The hearing brought out big figures
and indicated that an important cor
poration was before the Commission
for the purposes already set FORTH
Three Important Points
The decision rendered touches three
| important points in the approval of
an issue of securities; the issue of
limited by the purposes enumerated
! in Section IS, Public Utilities Act;
| the issue of bonds to reimburse treas
ury when utility expends for some
lawful purpose moneys from surplus
which it apparently does not need as
| working capital with no present in
tention of replacing it, except from
earnings (not authorized): the issue
| Of bonds to reimburse treasury, when,
during the course of construction, ex-
| tension or betterment corporation
| uses available funds not Immediately
required for current normal expenses
and charges with the expectation of
reimbursing its treasury when the
| work is completed or such funds are
| so required, amounting only to a
| temporary detection Of such charges
| (permitte0.
The decision reads in part as fol-
lows:
The petitioner presented evidence
bearing on the cost Of it's properties.
consisting of the terms of the pur-
chase of the plant of the Bodwell
Water Power&Company and the cost
of additions, acquisitions and better
ments. 1t also presented evidence
concerning it's earnings and its con-
tracts for future service. and filed a
copy Of it's mortgage to the Union
| IuSt SoI1ipdllS VI AVG" 4oI n, -
tee. dated September l, 1911, under
which the above described bonds are
authorized, with copy Of the resolu-
tons Of its directors calling for the
certifcation and delivery of these
bonds by the Trustee. The balance
sheet filed by the petitioner shows
bills payable amounting to s14,75O. Its
accounts payable consist only Of cur
rent charges. which are paid from
earnings in the regular course of bust
ness.
The mortgage provides for the issue
of bonds to the amount Of two mill
lion five hundred thousand dollars,
! Of which one million two hundred and
fifty-two thousand dollars are now
issued and outstanding. Eighteen
thousand dollars, being those bonds
involved in the present petition,
have been authorized under the
terms of the mortgage, and are
now in the treasury Of the petitioner
awaiting authority for their issue. The
petitioners purpose, as stated in the
petition, is to reimburse itself for ex-
penditures made, between January /,
! 1914 and June 30, 1914.
Section IS p. U. Law.
| This case involves a consideration
Of the purposes for which such cor
porations may be permitted to issue
bonds. Those purposes. as stated in
| Section 35 of the Public Utilities Act
are:
"a For the acquisition of property
to be used for the purpose Of carrying
| out it's corporate powers, the con-
| struction, completion, extension or
| improvement of it's facilities, or
ca for the improvement or mainte-
! nance of it's service, or
(3) for the discharge or lawful re-
funding Of its obligations. or
ca for such other purposes as may
be authorized by law.
Chapter IS of the Revised Statutes
under which gas and electric compa-
MES are organized and regulated, ex-
cept as amended by this Act, express
ly defined the purposes for which they
might issue bonds (Section 81; "to
provide means for constructing it's
lines and plant, funding its floating
debt, or for the payment Of money
borrowed for any lawful purpose"
This was the limit Of their power
to issue bonds when the Utilities
Act was adopted, and we think that it
controls the application of the words