Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1917-04-25


which are not direct obligations of mu-
nicipality or in bonds of municipalities
which have within twenty years repudi-
ated or compromised the payment of any
debt or defaulted for more than ninety
days in the payment of any Indebtedness,
and the purchase of such securities is
hereby prohibited.
PUBLIC SERVICE COMPANY
BONDS.
H. Cd For the purposes of this
subdivision:
Company" shall be construed as
corporation or voluntary association or
gained under the laws of the United
States, or any state thereof, located in
and doing business principally within
the United States;
"A public service company" shall be
construed as company doing principally
gas, electric light, electric power or
electric railway business serving the pub
lie generally;
Mortgage bonds" shall be construed
as bonds secured primarily by direct and
Unreasonable lien upon physical prop
erty owned by the obligator in fee;
Years" shall be construed as calen-
dar years; fiscal years or nearer periods
| of twelve months next preceding such
investment;
Net income" shall be construed as in
come after deducting operating expenses,
taxes, insurance, rentals, guaranteed in
terest and guaranteed dividends, and ex-
penditures for maintenance; and
| Annual interest" shall be construed as
interest actually paid in each year, ex-
/ cept that for the latest year, which shall
be construed as one years interest on the
f1f3 al af he Of
the investment.
| Not exceeding twenty-five per cent of
the deposits of bank shall be invested
| In securities authorized under this sub
| division and not exceeding two and one
half per cent of such deposits shall be
| invested In the securities of any one COM
ipany, if such percentage be In excess of
| FIVE thousand dollars.
] No investment shall be made in the
securities authorized under this subdi-
vision of company or a public service
company which is IN default on any of its
/ debt, or IN the hands of a receiver
1 No investment shall be made in the
securities authorized under this subdi-
vision unless the net income of the COM
paly or public service company in ques-
/ ton in each of the three years next pre-
cedlng such investment shall have been
| not less than one and one-quarter times
( the annual interest on the entire funded
| debt, rentals, guaranteed interest, guar
anteed dividends and all fixed charges,
and for the purpose of this paragraph
met income" shall be construed as in
come after deducting operating expenses,
taxes, insurance and expenditures for
maintenance
Subject to the foregoing, investments
/ may be made as follows:
4 t., 4
Irefunding mortgage bonds issued or as
sumed by public Service companies, and
In mortgage bonds of the companies
controlled by such public service COM
panies; for the refunding of which, mort
gage bonds of such companies are speci-
fically reserved, provided that in each of
the three years next preceding such in
vestment the net income shall have been
either, ID not less than FIVE hundred
/ thousand dollars and not less than one
and three-quarters times the annual in
terest on the bonds in question and all
other obligations of corresponding or
prior liens, or (2) not less than one
hundred fifty thousand dollars and not
less than twice the annual interest on the
bonds in question and all other obliga-
tons of corresponding or prior lien; pro
vided that such bonds are in fact secured
either by first lien on the major portion
of the mortgaged premises, or by a first
and refundlng mortgage, or by a lien
for the refunding of which bonds which
are legal are specifically reserved and
provided that the principal franchise or
franchises of such companies extend be-
lyond the maturity of the bonds in ques-
ton or that such companies operated
under indeterminate franchises or per-
nlits subject to the regulatory super
vision of a state commission of compe-
ltent jurisdiction, or that in the case of
electric railways not less than seventy
FIVE per cent of the mileage owned is
located on private right of way owned
lin fee.
TELEPHONE COMPANIES BONDS.
II. (2) A. In the bonds of telephone
companies located in the United States,
when such bonds are in fact secured by
a first mortgage or first and refunding
mortgage, whether or not the bonds are
so designated in their title:
3. Provided: That gross earnings OF
any such company shall have been at
least one million dollars for each of the
last three fiscal years next preceding
such investment, and provided further
that gross earnings for the fiscal year
next preceding such investment shall
have been at least forty per cent of the
total mortgage debt outstanding at the
end Of such fiscal year and
4 c. Provided: That net earnings for
each of the said last three fiscal years,
after deducting all operating expenses,
maintenance and depreciation charges,
rentals and taxes, shall have been at
east two and one-half times the annual in
terest charge on the entire mortgage debt
Outstanding az the end of each Of the
said last three fiscal years next pTeced-
ing such investment; and provided fur
ther that IN case additional bonds are
issued under the above mentioned mort
cages during an incompleted fiscal year,
net earnings, as provided above, for the
last available twelve months next preccd-
ing such investment shall have been az
least two and one-half times the inter