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

mortgage is operated by the cor.
poration issuing the refundinr
mortgage. or CD by a first mort.
gage on the property of a leased
road forming a substantial por-
ton of the system OF the oner-
ating company.
3. Such corporation shall have
earned and received for a period
OF fve successive calendar or
nscai years next preceding the
Investment a net income OF not
less than one and one-half times
the annual interest on its debts
outstanding during that period
and secured by the mortgage
under which the bonds in cues
ton are issued and all prior liens
and also shall have earned and
received for a period of twelve
fifteen months next preceding in
vestment net income of not
less than one and one-half times
the annual interest on it's debt
outstanding at the time of in
Nestnent. secured as aforesaid.
The time during which any rail-
road may have been operated by
States under the provisions of
any act or acts of congress here
tofore enacted. and a period OF
two years thereafter. may be ex-
cluded in determining whether
the bonds of any railroad corpo-
the provisions Of this paragraph
In determining the income of
any corporation for the purposes
OF the foregoing paragraph there
shall be included the income of
any corporation or corporations
out of which it shall have been
formed through consolidation or
merger. and of any corporation
whose business and income pro-
ducing property has been wholly
acquired by the corporation issu-
ing, assuming or guaranteeing
the bonds in question. The net
income of a railroad for the pur-
poses of the foregoing para
graph shall be determined after
deducting all operating expenses,
maintenance charges, deprecia-
ton. rentals. taxes and guaran-
teed interest and dividends paid
by or due from it.
4. The total of the bonds and
notes issued under the mortgage
securing the bonds in question
and all prior liens. exclusive of
those issued for refunding or
otherwise retiring prior lien OBJ
legations. shall not exceed three
times the outstanding capital
stock of such corporation at the
date of investment.
C !. In equipment bonds or notes
issued under the Philadelphia
plan. so-called. and secured by
standard equipment leased to any
steam railroad corporation in the
United States any OF whose mort
gage bonds are eligible under the
provisions of this section; pro-
Nided, however. that the amount
of such securities outstanding
shall at no time exceed eighty
per cent of the cost of the equip
ment by which they are secured.
.. In the prior lien equipment
obligations or equipment trust
certificates issued by the Ma
tional Railway Service Corpora
tion in pursuance of any equip
ment trusts financed in whole or
in part through q loan or loans
made or approved by the Inter-
state Commerce Commission, pro-
Nided such securities are issued
for not exceeding in par value
sixty per cent of the cost of
standard railway equipment and
tina; such obligations shall ma
tGre in approximately equal an
nual or semi-annual installments
over a period not exceeding 1if-
teen years; provided. however.
that not more than two per cent
of the deposits of any bank he
invested in the foregoing obli-
cations.
d-In the first mortgage bonds of
ny terminal or bridge company
uaranteed as to principal and in
rest by any railroad corporation
ny of whose mortgage obligations
re eligible under the provisions of
lis section.
c-Not more than twenty-five per
INT of the deposits of any one bank
lall be invested in steam railroad
Dligations and not more than two
er cent of such deposits in the OBJ
cations of any single railroad cor
)ration whose mileage is located
aine.
VII. PUBLIC UTILITY OBLI-
CATIONS
AIN the bonds or notes issued or
ssumed by any Maine corporation
lbject to the jurisdiction of the
aine public utilities commission ana
,rrying on in this state the busi-
ass for which 1T was organized; pro-
ded, however. that such securities
,all first have been duly authorized
v said commission under the laws
Maine if at the time Of their issue
lch authorization was required by
w.
BIN the mortgage bonds. or other
,terest- bearing obligations secured
nv corporation. at least seventy-hTe
or cent of whose gross income is
srived from the operation of an cleo
ic railroad. electric light and power
usiness. artificial gas business or
thereof. or from furnlsn-
lg municipal and domestic users
it'll a water supply; provided,
l. Such corporation shall be
subject to the jurisdiction or 4
public utilities commission, pup
tic service commission or some
other tribunal exercising super
vsory functions, ordinarily me-
dent to such commission. ana
the issuance of the securities in
question shall have been duly
authorized by such commission,
If at the time of their issue such
authorization was required oy
law.
of the corporation properly
shall be located in, and ffty-one
per cent of it's business trans
acted within the United States.
3. Such corporation shall own
in fee not less than fifty-one per
cent of the property used by II
in the carrying on or us ousi-
4. Such corporation shall have
received average gross earnings
of at least five hundred thou
sand dollars per year in each or
its three fiscal years. or three
nearer periods of one year next
preceding investment.
5. Such corporation shall nave
earned and received an average
net income. including income
from Investments. for a period
of three fiscal years. or nearer
period of three years next pre-.
ceding such investment, OF rot
less than twice the annual IN
terest on it's debt outstanding
during that period and secured
by the mortgage under "hlch ..a
honds in question are issued and
ali prior liens. and also shall
have earned and received for
period of twelve consecutive
months within the fifteen months
next preceding investment a
not income of not less than one
and one-half times the annual
interest on it's debt outstanding