Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-04-25

tie DOndS OF the Republic OF FRANCE,
provided they are secured by collateral
deposited in this country and approved
by the bank commissioner;
~ In the bonds of the Dominion Of
Canada and the various Provinces of
Canada.
In subdivisions Co and (d) the word
Indebtedness" shall mean the gross debt
less debts created in anticipation Of taxes
to be paid within one year and the amount
OF any sinking funds available for the
payment. Of such Indebtedness: and in
subdivisions (e) and (f) the word "in-
debtedncss" shall mean the gross debt
less debts created in anticipation of taxes
to be paid within onc year, the amount
OF any sinking funds available for the
payment of such indebtedness and debts
created for supplying the inhabitants OF
the municipality with water.
Banks may invest i'll bonds described
in subdivisions CHI and Cd not to ex-
coed thirty thousand dollars by any one
bank, and in addition thereto ono per
cent of the deposits of such bank in ex-
cess OF one million dollars.
The foregoing does not authorize in
vestments in railroad aid bonds Except
such as are issued by municipalities in
the State of VermonD or in bonds
which are not direct obligations of a 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.
II. % For the purposes of thi:
subdivision:
Company" shall be construed as &
corporation or voluntary association or.
gained under the laws of the United
States, or any state thereof located II
and doing business principally within
the United States;
"A public service company" shall b.
construed as company doing principal,
a gas, electric light, electric power OF
electric railway business serving the pub
lie generally;
Mortgage bonds" shall be construed
as bonds secured primarily by direct ant
foreclosurable lien upon physical prop
erty owned by the obligator in fee;
Years" shall be construed as calen
dar years; fiscal years or nearer period
of twelve months next preceding sucl
investment;
Met income" shall be construed as in
come after deducting operating expenses
taxes, insurance, rentals, guaranteed in
terest and guaranteed dividends, and ex
pcnditures for maintenance; and
Annual interest shall be construed a
interest actually paid in each year, OK
ccpt that for the latest year, which shall
be construed as one years interest on til
total amount outstanding at the time o
the investment.
Not exceeding twenty-five per cent o
the deposits of bank shall be investe
in securities authorized under this sub
division and not exceeding two and one
half per cent of such deposits shall b
invested in the securities of any one com
pany, if such percentage be in excess Q
| five thousand dollars.
securities authorized under this subd
vision of a company or a public servic
company which is in default on any of il
debt, or in the hands of receiver.
No investment shall be made in Il,
securities authorized under this subd
vision unless the net income of the com
pany or public service company in ques
ton in each of the three years next pre-
ceding such Investment shall have bee
not less than one and one-quarter time
the annual interest on the entire funde
debt rentals, guaranteed interest. guar
anteed dividends and all fixed charge
and for the purpose of this paragraph
met income" shall be construed as If
come after deducting operating expense
taxes, insurance and expenditures fc
maintenance.
Subject to the foregoing, investment
may be made as follows:
In first mortgage bonds and first an
refunding mortgage bonds issued or a.
sumed by public service companies, an
in mortgage bonds of the compani,
controlled by such public service con
panies; for the refunding of which, NOR
gage bonds of such companies are spec
fically reserved, provided that in each {
the three years next preceding such il
lvestment the net income shall have bee
either, % not less than FIVE hundre
thousand dollars and not less than OF
and three-quarters times the annual il
terest on the bonds in question and a
other obligations of corresponding {
prior liens, or (2) not less than OF
hundred fifty thousand dollars and IL
less than twice the annual interest on IL
bonds in question ard all other oblig
tons of corresponding or prior lien; pr
vided that such bonds are in fact secure
either by first lien on the major porto
of the mortgaged premises, or by fir
and refunding mortgage, or by Ii,
. for the refunding of which bonds whi'
are legal are specifically reserved; al
provided that the principal franchise
, franchises of such Companies extend b
yond the maturity of the bonds in que
ton or that such companies operat'
, under indetcrminate franchises or pc
mits subject to the regulatory supe
vision of state commission of comp
tent jurisdiction, or that in the case
. electric railways not less than sevent
five per cent of the mileage owned
. located on private right of way own
: in fee.
, TELEPHONE COMPANIES BOND
al II. (2) A. In the bonds of telepho
{ companies located in the United STATE
{ when such bonds are in fact secured
e trst mortgage or a first and refundil
!, mortgage, whether or not the bonds a
!, $50 designated in their title;
: B. Provided: That gross earnings
!, any such company shall have been
least one million dollars for each OF t
s last three fiscal years next precedi
d such investment, and provided furth
o that gross earnings for the fiscal ye
e next preceding such investment sh
have been at least forty per cent of (