Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-04-11


like amount reissued under said
mortgage. or (c) by mort
gage prior to refunding mort
gage above described covering
some part OF the public utility
funding mortgage, if the bonds
secured by such prior mortgage
are to be refunded by said re-
funding mortgage and the prop
erty covered by such prior mort
poration issuing the refunding
mortgage. or (d) by first
mortgage on the property Of a
lessor public utility forming a
substantial portion OF the system
OF the operating company.
s. The total of the bonds
and notes issued under the
mortgage securing the bonds in
qestion and all prior liens. ex-
elusive of those authorized for
refundlng or otherwise retiring
standing capital stock of such
corporation at the date of in
Vestment.
c-Not more than thirty-five per
cent OF the deposits OF any one bank
shall be invested in the obligations Of
the above specified public utility cor
poration and not more than two
per cent OF such deposits in the obli-
Sas;ous VI any sihEle utlllt! whose
business is transacted principally
OUTSIDE the state of Maine.
VIII. OBLIGATIONS OF TELEPHONE
COMPANIES
AIN the mortgage bonds. and
other interest-bearing obligations
secured by mortgage. issued or as
sumed by any telephone company in
state of the United States whose
property is located chiefly in the
United States; provided,
l. Such corporation shall
have received gross revenues of
at least five million dollars per
year in each of it's three fiscal
years. or three nearer periods of
one year. next preceding such
investment.
.. Such corporation shall
nave earned and received net
income. including income from
fiscal years, or three nearer
periods of one year. next pre-
ceding such investment, not less
than twice the annual intf0 st
on its debt secured by the mot
gage under which the bonds in
question are issued and all prior
liens. and shall not have default
cd on any of its obligations dur
inS the same period. The net
income of such corporation for
be determined after deducting
all operating expenses. including
maintenance and depreciation
charges. rentals, taxes; and
guaranteed interest and divi-
bends paid by or due from It,
5. Such obligations shall
be secured ,(1 by first mort
gage on at least seventyfve per
cent of all the property of
such corporation owned in fee.
NV fttv RI
gage providing for the retire
ment of all prior lien bonds out
standing at the date of invest
ment and covering at least
property owned in fee by said
corporation: provided. however.
that all bonds secured by said
refundinS mortgage shall ma
ture at a later date than any
bond which it is given to refund.
or if any bonds are to mature at
an earlier date the mortgage
must provide that such bonds
shall be retired by a like
amount reissued under said
mortgage. or (c) by a mortgage
prior to a refunding mortgage
above described covering some
part of the telephone company
property included in such re-
fundin" MORTGAGE if the bonds
secured by such prior mortgage
fnnd;nr ,,,o,'tmaDa ,nI ~ n
property covered by such prior
mortgage is operated by the cor
poration issuing the refunding
,nort5.as,e ~ ~ nrnnort,, nf a
lessor Company forming a sub
stantial portion of the system
OF the operating company.
b-Collateral trust bonds of any
such telephone company secured by
national bank of bonds and /or of
shares of stock of subsidiaries or
other telephone companies. under an
indenture of trust which limits the
amount of bonds so secured to not
more than seventy-hvc per cent of
the value of the securities deposited
as stated and determined in said in
denture and provided that the com
panv issuing such collateral trust
bonds shall receive average gross
million dollars in each of its three
fiscal wears or three nearer periods
of one wear next preceding such in
vestment. and provided. further. that
such telephone company shall for the
same period have earned and re
!IeceiNeu ~. i"oo,,s ny uu ia m'S
than th," t;rnS Tho ANNA, interes
vi n",' uo''"" !" question ''N 81
p''oi iienH'
c-Eot more than ten per cent
or the deposits OF any one pahn shai'
be invested in obligations of teie-
phone companies. and not more thar
two per cent in the obligations OF
any single telephone company.
IN. BONDS OF MAINE CORPOR-
ATOMS
y. .,, ho,d, ~. o.hor ;ptoroe+.
,r;,, III" e,, Hut1 If .pv Maine
o oeaaers ion othev than those herein
fotppea'.p pacficalIv '"1 mentioned ac-
t,,aI,,, cnpdnntiny in This state the
h huai,s for ,yhicb such cornoratinn
BUSINESS ~. W ,,ii,;oi, 80 neriod of
t Mas svacee.ive f,ccai vears or three
naarer meriods Of one Year next ire
nad;ns tha invastment has earned
go, r.coived on avera@e net income
ariu an ;o ~ ;ntornst an