Page:United States Statutes at Large Volume 49 Part 1.djvu/895

 850 74rnn CONGRESS. SESS. I. CH. 687. AUGUST 26, 1935. Mergers and consol- or by any means whatsoever, directly or indirectly, merge or consoli- idations. Authorization re- date such facilities or any part thereof with those of any other quired. person, or pu rchase, acqu ire, or take any se curity of any other publi c utility, without first having secured an order of the Commission Application; notice authorizing it to do so. Upon application for such approval the required. Commission shall give reasonable notice in writing to the Governor and State commission of each of the States in which the physical prope rty af fected, or an y part there of, is situat ed, an d to s uch ot her Approval of. persons as it may deem advisable. After notice and opportunity for hearing, if the Commission finds that the proposed disposition, consolidatio n, acquisition, or control wi ll be consisten t with the public interest, it shall approve the same. Terms and condi- "(b) The Commission may grant any application for an order tions of approval order . under this section in whole or in part and upon such terms and conditions as it finds necessary or appropriate to secure the mainte- nance of adequate service and the coordination in the public interest of facilities subject to the jurisdiction of the Commission . The Com- mission may from time to time for good cause shown make such orders suppl emental to any order made und er this section as it may find necessary or appropriate . Issuance of securi- a ISSUANCE OF SECURItiES ; ASS UM Pti ON OF LIABILITIES ties ; assumption of lia- bilities. Restriction on; au- " SEC. 204. (a) No public utility shall issue any security, or thorization re quired. assume any obligation or liability as guarantor, indorser, surety, or otherwise in respect of any security of another person, unless and until, and then only to the extent that, upon application by the public utility, the Commission by order authorizes such issue or assumption coG rait ng a pprov al of liability. The Commission shall make such order only if it finds that such issue or assumption (a) is for some lawful object, within the corporate purposes of the applicant and compatible with the public interest, which is necessary or appropriate for or consistent with the proper performance by the applicant of service as a public utili ty and which will n ot imp air it s abili ty to perfor m that servi ce, and (b) is reasonably necessary or appropriate for such purposes. Effective date of sec- The provisions of this section shall be effective six months after this tion. Part takes effect. Application f or ap- "(b) The Commission, after opportunity for hearing, may grant proval . any application under this section in whole or in part, and with such modifications and upon such terms and conditions as it may find necessary or appropriate, and may from time to time, after oppor- tunity for hearing and for good cause shown, make such supplemental orders in the premises as it may find necessary or appropriate, and may by any such supplemental order modify the provisions of any previous order as to the particular purposes, uses, and extent to which, or the c onditions under which, any sec urity so there tofore authorized or t he proceeds the reof may be app lied, subject always to the requirements of subsection (a) of this section . Use of securities or "( c) No public utility shall, without the consent of the Commis- proceeds for purposes not specified in order . sion, apply any security or any proceeds thereof to any purpose not specified in th e Commission's order, or suppl emental order, or to any purpose in excess of the amount allowed for such purpose in such order, or otherwise in contravention of such order. Restriction on "(d) The Commission shall not authorize the capitalization of amount of capitaliza- tion . the right to be a corporation or of any franchise, permit, or contract for con solida tion, merger, or le ase in exces s of t he amou nt (ex clusiv e of any tax or annual charge) actually paid as the consideration for such ri ght, f ranchi se, pe rmit, o r cont ract.