[Vol. 15] Public Service Commission, Second District In the Matter of the Petition of the NORTHERN NEW YORK UTILITIES, INC., under Section 69, Public Service Commissions Law, for Authority to Issue $480,000 in Bonds under an Existing Mortgage, $144,000 First Preferred Capital Stock, and $79,200 Common Capital Stock Case No. 6375 (Public Service Commission, Second District, March 28, 1918 ) Authority granted to Northern New York Utilities, Inc., to issue certain bonds and shares of capital stock under an existing mortgage. On March 6, 1918, the Northern New York Utilities, Inc., filed its petition for the granting of the authority herein given and the matter was referred to the division of light, heat and power, and that division reported thereon on March 9, 1918. The division of capitalization also filed a report bearing date of March 12, 1918. A hearing was had by the Commission on May 18, 1918, and on the facts there adduced and upon the reports of the two divisions above named the authority asked for was granted by the Commission. This order authorized the said corporation to issue $480,000 face value of its five per cent fifty-year first and refunding mortgage gold bonds under a certain deed of trust or mortgage dated July 1, 1913, given to the Northern New York Trust Company (Columbia Trust Company, successor) as trustee, and supplement thereto dated March 11, 1915, to secure an authorized issue of bonds of a total face value of $10,000,000; also to issue $192,000 par value of its capital stock, $128,000 of which shall be classified as seven per cent cumulative first preferred capital stock and $64,000 as common capital stock, the issue thus authorized to be sold at not less than par value. The purposes for which the said bonds are to be issued are specifically set forth in the order, which is granted with the usual restrictions. Petition filed March 6, 1918. Report of division of light, heat and power dated March 9, 1918. Report of division of capitalization dated March 12, 1918. Hearing held March 18, 1918. Order entered March 19, 1918. Report of division of capitalization dated March 27, 1918. Public Service Commission, Second District [Vol. 15] BY THE COMMISSION.-Now, therefore, upon the foregoing record, ordered as follows: 1. That the Northern New York Utilities, Inc., is hereby authorized to issue $480,000 face value of its 5 per cent fifty-year first and refunding mortgage gold bonds under a certain indenture, deed of trust or mortgage dated July 1, 1913, given to the Northern New York Trust Company (Columbia Trust Company, successor), as trustee, and supplement thereto dated March 11, 1915, to secure an authorized issue of bonds of a total face value of $10,000,000. 2. That the Northern New York Utilities, Inc., is hereby authorized to issue $192,000 par value of its capital stock, $128,000 of which shall be classified as 7 per cent cumulative first preferred capital stock and $64,000 as common capital stock, which may be sold at a price not less than the par value thereof to realize net proceeds of at least $192,000. 3. That said bonds of the total face value of $480,000 may be sold for not less than 85 per cent of their face value to realize net proceeds of at least $408,000. 4. That the proceeds of said securities so authorized, which shall not be less than $600,000, shall be used solely and exclusively for the following purposes. (a) To build a new dam, canal and power house, and install the necessary equipment therein to produce 5,000 horse power (with provision for the installation of equipment for 2,500 horse power more, making a total of 7,500 horse power at its plant at Black River, N. Y...... (b) To install one 1,800 horse power wheel with generator, switchboard apparatus, transformers, penstock, headgates and racks, and appurtenances at its plant at Effley Falls on the Beaver river.. $500,000 100,000 $600,000 in so far as the same may be applicable, provided: (1) That the proceeds of such securities shall be applied STATE DEPT. REPT.- Vol. 15 30. [Vol. 15] Public Service Commission, Second District toward the costs of the above only in so far as such costs effect real increases in the fixed capital of the petitioner as defined by the uniform system of accounts for electrical corporations adopted by this Commission. (2) That there shall be no charges to fixed capital on account of engineering services in connection with such construction unless such engineering services shall have been rendered either by other than the regular officers and employees of the corporation, or, in a proper case, where such services may have been rendered by certain of such officers or employees under an express assignment to such construction or improvement work. (3) That if there shall be required for the aforesaid purposes. subject to the limitations herein contained, a sum less than the total amount of proceeds realized from the sale of stocks and bonds herein authorized to be issued, the remainder of such proceeds shall not be used for any other purpose without the further order of this Commission, (4) That the estimated costs contained herein are not intended to be and must not be construed by the petitioner as having been determined upon by the Commission as the actual costs of the property and work to be acquired and done and thus properly chargeable to fixed capital, but are intended and shall be construed only to be a present estimate of the probable costs of such property and work, the actual costs of which must be actual expenditures made as defined by the Commission's uniform system of accounts for electrical corporations. 5. That none of the said bonds herein authorized shall be hypothecated or pledged as collateral by the Northern New York Utilities, Inc., unless any such pledge or hypothecation shall have been expressly approved and authorized by this Commission. 6. That the Northern New York Utilities, Inc., shall for each six months' period ending June thirtieth and December thirtyfirst file not more than thirty days from the end of such period a verified report which shall show: (a) What securities have been sold during such period. (b) The dates of such sales. Public Service Commission, Second District (c) To whom such securities were sold. (d) What proceeds were realized from such sale. (e) Any other terms and conditions of such sale. [Vol. 15] (f) In detail the amount expended during such period of the proceeds of the securities herein authorized for each of the pur poses specified herein, and the account or accounts under the uniform system of accounts for electrical and gas corporations to which the expenditures for such purposes have been charged, giving all details of any credits to fixed capital in connection with such expenditures. (g) A summary of the expenditures for each of such purposes during the period covered by the report. (h) A summary by the prescribed accounts showing the expenditures during such period. In reporting under subdivisions (g) and (h) of this clause there shall be further shown the expenditures of the proceeds of the securities herein authorized to the beginning of the period reported upon and a total showing such expenditures to the end. of the period, together with a statement of the balances in the fixed capital accounts as of the beginning and ending of such period. Such reports shall continue to be filed until all of said securities shall have been sold or disposed of and the proceeds expended in accordance with the authority contained herein, and, if during any period no securities were sold or disposed of or proceeds expended, the report shall set forth such fact. 7. That as bonds herein authorized to be issued are sold the petitioner shall charge to an account to be called "suspense to be amortized" an amount equal to one-third of the discount incurred. thereupon and shall thereafter amortize the amount so charged by crediting that account and charging "other contractual deductions from income" in equal annual installments during the ten years commencing January 1, 1918, provided that the said company may amortize the said sum more rapidly than herein provided if it so desires. 8. That the authority contained in this order to issue securities [Vol. 15] Public Service Commission, Second District is upon the express condition that the petitioner accepts and agrees to comply in good faith with the provisions hereof and before any securities are issued pursuant hereto and within thirty days of the service hereof, the said company shall file with the Commission a satisfactory verified stipulation over the signatures of its president and secretary accepting this order with all its terms and conditions, and such order shall be void and of no force or effect until such stipulation shall have been filed as last above provided. Finally, it is determined and stated, that in the opinion of the Commission the money to be procured by the issue of said securities herein authorized is reasonably required for the purposes specified in this order and that such purposes are not in whole or in part reasonably chargeable to operating expenses or to income, |