Page:The Wisconsin idea (IA cu31924032449252).pdf/95



The stock and bond law is not as great a necessity in Wisconsin as it would be if there was not physical valuation. With physical valuation and a rate based upon it and other elements accompanying it, if a company is greatly overstocked it will have to suffer. As far as the consumer is concerned a stock watering law would be of little concern. Of course that is not true regarding the stock and bond holder. However, the new stock and bond law which applies to every public service corporation has the same elements in it which are in evidence throughout this legislation, that is, using the device of reasonableness as a standard enforceable by the commission. The following sections from that law will illustrate this:—

"Issue not to exceed amount reasonably necessary. Section 1753-4. No public service corporation shall hereafter issue for any purposes connected with or relating to any part of its business, any stocks, certificates of stock, bonds, notes, or other evidences of indebtedness, to an amount exceeding that which may from time to time be reasonably necessary for the purpose for which such issue of stock, certificates of stock, bonds, notes, or other evidences of indebtedness may be authorized.

"Issues for money only; commission's certificate. Section 1753-9. 3. If the commission shall determine that such proposed issue complies with the provisions of this act such authority shall thereupon be granted, and it shall issue to the corporation a certificate of authority, stating: (a) the amount of such stocks, cer-