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THE GREEN BAG

Furthermore, the act specifically provides that no franchise or any right to or under any franchise to own or operate a railroad or street railroad shall be assigned, trans ferred, or leased; nor shall any contract or agreement affecting any such franchise or right be valid or of any force or effect what soever unless approved by the Commission. But the permission, and approval of the Commission either to the exercise of a franchise or to the assignment, transfer, or lease of a franchise is not to be construed as reviving or validating any lapsed or invalid franchise, or enlarging or adding to the power and privileges contained in any grant of any franchise, or of the waiving of any forfeiture. The last provision was added in order to fit the case of the so-called Steinway tunnel now under construction, but which it is believed has forfeited its rights. The city has not been as prompt in preventing con struction of this tunnel as some of those conversant with the facts believe it should have been, and it is hoped that the new commission will take the matter of this important franchise up promptly. The route covered by this tunnel is an ideal connection between Manhattan and Queen's, but it should be built under proper public authority. The Commission is given power to make reasonable regulations for the furnishing and distribution of freight cars to shippers. Issue of Stocks, etc. — The provisions of the act as to stockholding, which are very important, were subjected to very consid erable discussion. The act provides that no railroad corporation or street railroad corporation, domestic or foreign, shall here after purchase or acquire, take or hold any part of the capital stock of any railroad corporation or street railroad corporation or other common carrier organized or exist ing under or by virtue of the laws of the State of New York unless authorized so to do by the Commission. Furthermore, except where stock is transferred or held as

collateral security (only with the consent of the Commission), no stock corporation of any description other than a railroad or street railroad corporation shall acquire or hold more than 10 per cent of the total capital stock issued by any railroad or street railroad corporation or other common carrier. But it is provided that this shall not be construed to prevent the holding of stock heretofore lawfully acquired. The act goes on to provide that every contract, assignment, transfer, or agreement of assign ment of transfer of stock in violation of this provision shall be void, and no such transfer or assignment shall be made upon the books of any such corporation or shall be recog nized as effected for any purpose. The provisions of the act as to the pur pose for which stocks and bonds and other forms of indebtedness may be issued are equally important. It is provided that stocks, bonds, notes, or other evidence of indebtedness payable at periods of more than twelve months may be issued (i) when necessary for the acquisition of property, the construction, completion, extension, or improvement of its facilities, or for the improvement or maintenance of its service or for the discharge or lawful refunding of its obligations, and (2) when the Commis sion has authorized such issue and the amount thereof, and stating that in its opinion the use of the capital to be so secured is reasonably required, and for the purpose of so determining, the Commission shall make such inquiry or investigation, hold such hearings and examine such wit nesses, documents, etc., as it may deem of importance. Notes for proper corpor ate purposes and not in violation of any provision of this or any other act, pay able at periods of not more than twelve months, may be issued by such corporations without the consent of the Commission, but no such notes shall in whole or in part, directly or indirectly.be refunded by any issue of stock or bonds or by any evidence of indebtedness running for more than twelve