The midland journal. (Rising Sun, Md.) 1885-1947, 1926-03-05
RIGHT GIVEN TO ISSUE BONDS
FOR CoNOwINGO PROJECT

Philadelphia Company Authorized
BY Federal Commission-Pre.
paratory Steps Completed
The Philadelphia Electric Power
Company was authorized Saturday
by the Federal Power Commission to
issue securities for the financing of
the 300, 0,000-horsepower hydro-elec-
trio plant which will be built at
Conowingo, on the Susquehanna
river.
Changes Made
The Federal commission, before
issuing its order of approval, made a
number of changes in the financial
set-up for the project. The more
important changes were:
Financial control Of the project is
lodged in the Philadelphia Elec-
trio Company; the entire stock
issue, which alone has voting
rights, shall be held in the treas
ury of the Philadelphia company,
free from any form OF in
cumbrance.
Application of the PHILADELPHIA
Electric Power Company to issue
$4,000 shares of no-par stock to
the Philadelphia Electric Com
pany in return for promoting and
financing the project was denied.
Instead, the Philadelphia Electric
Power Company was authorized
to transfer to the PHILADELPHIA
Electric Company existing shares
OF the former corporation, having
par value of $4,000, as COM
pensation for any services rem
dered. All future shares OF COM
mon stock shall be issued only for
cash at par value of $25 per
share.
Reduction of the redemption price
OF preferred stock from $3.50 a
snare to $2S share was made.
The par value of this stock will be
$40 a share and it will be callable
for redemption after 1910.
Shortly after the Federal body is
sued its order Saturday attorneys of
the Susquehanna Power Company
filed an amended petition, including
the changes, with the Maryland
commission. The petition asked
authority to enter into a mortgage
with the Pennsylvania company to
secure a $3S,0OO,O0O bond issue.
Walter H. Johnson, president of
the Philadelphia Electric Company,
announced that instead of issuing at
this time $3S,0O0,OOO in bonds only
$36, 100000 would be offered to the
public for sale. The remaining
$2,00O,0O0 will be held In reserve,
to be issued if and when the money
is needed.
Mr. West explained that the Mary
land commission has no authority
over the financial set-ups OF the
Pennsylvania company. since it is a
corporation out Of the State. The
Pennsylvania law does not give the
commission of that State authority
ever security issues.
Consequently the two commissions
agreed with the Federal body to al
low it to act on undesirable features
in the financial set-up for the
project
Approval on Monday of three
petitions by the Public Service Com
mission completes the grant Of re-
quisite authority for construction of
the Conowingo $52,00O,OOO power
project, approximately one year
after the first hearing on the
matter.
The orders entered Monday by the
commission authorize the Susque-
hanna Power Company to execute a
Joint mortgage with the Philadel-
phia Electric Power Company, secur-
ing a $3S,000,OOO bond issue by the
pennsylvania corporation, and the
transfer of stock from the former to
the latter company; the Susque-
hanna Power Company and the
Susquehanna Electric Company to
enter into an agreement known as
the lease of Maryland properties"
and the 'Susquehanna Power Com
pany and the Philadelphia Electric
Power Company to enter into a
pool agreement for the main
tenance of that part of the pool to
be formed by the new dam, which
extends into Pennsylvania.