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

Tor such other purposes as may be
authorized by law" in Section So OF
that Act. 1t adds nothing to the first
three purposes as we have mentioned
them.
The New York Public Service Com
mission. Second District, held in mat
ter of Lehigh and H. R. R. Co., under
statutory language precisely like that
oennlng the first three purposes in our
Ana That corporation cannot be
authorized to issue bonds in order to
reimburse itself for money which 1t
mas previously taken from it's treasury
and expended for some lawful pur-
pose. While we think that we should
assent to this view as a general state
n. emit Of the law, we should hesitate
to apply such a rule literally and
Extensions from Surplus.
If a utility expends moneys from its
surplus for the acquisition of new
properties, or for extensions and bet
terments, which it apparently does
not then need as working capital, with
no present intention Of replacing 1t,
except from earnings, and later, I'M
der changed conditions or business de-
preston, seeks to restore it in this
manner, we doubt very much if au-
thority legally could be granted. When,
however, during the course of such
acquisition or construction, it uses
available funds not Immediately re-
quired for current normal expenses
and charges. in the expectation Of re-
imburSing its treasury when the work
is completed or when such funds are
required for such current purposes, it
amounts in effect to a temporary de-
Election or borrowing of money in
tended for those, purposes, and TO a
certain extent impressed with trust
or obligation that they will be so
availa BILE. 1t does not seem that
such a course is inconsistent with a
fair construction of the statute. To
hold otherwise would certainly impose
a hardship upon the corporation, and
ultimately upon the public who must
pay the bills, because it would force
the corporation, i'll order to save its
rights, to borrow and pay interest as
it went while funds temporarily avail
able were lying idle in it's treasury.
This apparently was the view taken
Of the business wisdom of the prac-
tice in New York state, when, after
the above ruling, the law was amend
ed to provide for just such contingent
cies.
Case In Hand Clear
1t may not be easy always to de-
termine under this construction of the
law just what Interpretation is to be
placed upon the facts in a given case,
but it is not difficult in the present
case. The petitioner had executed it's
mortgage in 1911, under which it was
entitled to receive from the trustee at
any time bonds to the amount OF ST.
060,000. The balance of the authorized
amount. s1,440,00O, was to be certified
and delivered from time to time to
reimburse the Mortgagor Company
for the actual cash cost Of extern
sions,' etc, 'to an amount in face
value Of such bonds not. to exceed
eighty-five per cent. (S5 per cent? Of
such actual cost" 1t has been the
policy of the corporation to proceed
with such work and from time to time
to take down such amount of bonds as
it might under that provision. 1t had
so taken down 1892, 900 before the
present act became operative. 1t did
the work for which the present issue
is sought during the first six months
OF 1914. Action was taken by It's d.
rectors to procure certiflcation Of these
bonds by the trustee on November 10,
1914. We think that the case clearly
shows that the petitioner proceeded in
good faith in the expectation that the
proceeds from the sale Of these bonds
were to be made available to restore
to the treasury moneys needed for
current normal expenses temporarily
est charges which would have been
incurred by making temporary loans
as the work progressed.
Now, therefore, after public notice
and hearing and the presentation of
testimony and mature consideration,
we find that the sum Of the capital to
be secured by the issue Of said bonds
is required in good faith for purposes
enumerated in Section 35, Chapter 129,
Public Laws Of 1918, and it is
ORDERED AND DECREED
That the Bangor Power CO. be, and
it hereby is, authorized to issue and
sell Is bonds Of Series B, numbered
from B-50s to B-520, inclusive, 5 per
cent. gold bonds Of the par value of
$1,000 each, dated as Of Sept. 1, 1911,
for the purpose of reimbursing its
treasury for So per cent. actual cost
OF extensions, betterments. and i'm
provements to the mortgaged estates
and properties purchased. constructed
and paid for between Jan. l, 1914, and
June 80. 1914; provided, however, that
the Same shall not be sold for less
than 1881 per cent of their face value
and accumulated interest.
That said company report to this
commission in detail, supported by the
affidavit of one Of it's principal OFF,
GERS. its doings hereunder withip 20
days after the first day of July. 1915
and monfhlv thereafter until ALL OF