Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-01-25

pended Tor CONSTRUCTOR pun pooeS "
current assets.
The prayers of the several petitions.
are identical in form. ITO issue us
capital stock or obligations or both TO
an amount sufficient to reimburse It's
treasury for capital expenditures IN
CURED since the purchase Of its capital
stock by the Central Maine Power Co.
Authority is requested to sell the capt.
tai stock or obligations, or both, to the
said Central Maine Power Co.. and the
said petitioner requests that the Pub
lie Utilities Commission fix the amount
Of stock or obligations to. De Issued
and the terms under which the same
shall be disposed of.
The general statement covering the
same cases is as follows:
"All OF these petitioners are sub
salaries of the Central Maine Power
Co. controlled by it through direct
ownership Of the entire capital stock
of all of them except the Hartland and
the Wiscasset companies. The stock
of the two last named is owned by the
Robinson Land Co. a majority OF
whose stock is owned by the Central
Maine Power Co. The Central Maine
Power Co. will be granted permission
to purchase the stock of these two
corporations. and they will now be
treated as though this had been con-
summated. 1t will be a part Of this
whole transaction.
There is also pending-f:ed and
heard with this Casa petition by
the Central Maine Power Co.. for per-
mission to purchase The stocks which
these corporations may be authorized
TO issue and to issue its securities to
provide funds for that purpose.
The Central Maine Power Co. has
acquired the ownership of these vari-
Gus companies in order that it might
serve the towns covered by their re-
spective franchises. they being beyond
the geographical limits reached by its
franchise: otherwise, it might have
purchased the plants and financed the
undertakings direct. 1t has in every
case, we believe. entered the territory
only on the request of owners OF the
loca company, or of the community. or
both. in order either TO give better
service or to relieve the owners OF the
local company Of further responsible
ity.
The local companies have continued
to render service, being operated by the
management of the Central Maine
Power Co. The latter has controlled
expenditures for extensions and better
ments, and has advanced moneys for
such purposes when enough was not
Lab IL r..
is now proposed to issue securities to
reimburse the several treasures for
expenditures made for capital pun
poses, and to determine in these pro-
ceedings the amounts in which eacn OF
| the corporations may be allowed u
capitalize such disbursements to a
common date, Oct. 81. 1917, thus estab-
fishing Il bench mark" or starting
point for each company for further
transactions.
AS each case is stated, the manner
in which the Central Maine Power Go
is to profit from this financing will be-
come apparent. Generally speaking,
each subsidiary company will receive
from the Central Maine Power Co. ca sh
for its new issue Of stock and in most
of the cases pay the greater part OF
that cash back to the Central Maine
Power Co. for obligations due it. In
the end. it amounts to reimbursement.
OF the treasury Of the Central Maine
Power Co. for expenditures made by il
, on its plant, regarding all of the prom
erty OF all of these companies as parts
of one united plant in the broader
sense.
| Theoretically, the result could be
more simply and directly obtained by
requiring each corporation to sell its
new stock to the public and to repay
the Central Maine Power Co. for its
advances with the proceeds What
ever other objections the present own
ers may have to such plan, it is Oh
vious that it would be impracticabIe
/ because minority issues of these sub
sloIarv companies could be sold to the
| pubic only at substantially less than
| they are lntrinsically worth. ana serr-
Gus loss would be suffered.
ON the other hand, while all of the
corporations mentioned are parts of a
single system, they must be treated as
though entirely distinct in fixing The
amounts of stock which each may is
sue; the needs of the Central Maine
POWER Co. cannot control. We arc
! bound to find what amount if any. OF
i me capital to he issued is required in
good faith by the petitioner in the cas-,
under immediate consideration, 40,
purposes enumerated'' in Section 37
Chapter 90, Revised Statutes. These
purposes are the acquisition of prop
erty to be used for the purpose or car
rying out its corporate power, the con
struction. completion, extension or i'm
provement of its facilities, or for the
improvement or maintenance Of its
service, or for the discharge or lawful