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in this act; and such street railway company shall hold such permit under all the terms, conditions and limitations of this act. The filing of such declaration shall be deemed a waiver by such street railway company of the right to insist upon the fulfillment of any contract theretofore entered into relating to any rate, fare, charge or service regulated by sections 1797-1 to 1797-38 of the statutes, as amended. Same, sec. 1797t−3.

Any street railway company accepting or operating under any license, permit or franchise hereafter granted, except where such license, permit or franchise is for an extension of any line or system constructed or authorized at the time this act shall go into effect, and which license, permit or franchise for such extension shall expire at the same date as the license, permit or franchise under which such line or system is then being operated, shall, by acceptance of any such indeterminate permit be deemed 3228 to have consented to a future purchase of its property actually used and useful for the convenience of the public, by the municipality in which the major part of it is situate for the compensation and under the terms and conditions determined by the commission, and shall thereby be deemed to have waived the right of requiring the necessity of such taking to be established by the verdict of a jury, and to have waived all other remedies and rights relative to condemnation by such municipality, except such rights and remedies as are provided in this act. Same, sec. 17971-4.

At any time within three years prior to the expiration of the term of the license, permit or franchise under which any street railway is operating at the time this act goes into effect, any 3229 municipality shall have the power, subject to the provisions of this act, to acquire by condemnation the property of any street railway company, actually used and useful for the convenience of the public. Same, sec. 17971-5(1).

Any municipality shall have the power, subject to the provisions of this act, to acquire by purchase as provided in this act, 3230 the property of any street railway company actually used and useful for the convenience of the public operating under any indeterminate permit as provided herein. Same, sec. 1797t−5(2).

If the municipality shall have determined to acquire an existing plant then operated under a license, permit or franchise existing at the time this act takes effect, such municipality shall bring an action in the circuit court against the street railway company as defendant praying the court for an adjudication as

to the necessity of such taking by the municipality, in which 3231 action the complaint shall be served with the summons. The

street railway company shall serve and file its answer to such complaint within ten days after the service thereof; whereupon such action shall be at issue and stand ready for trial upon ten days' notice by either party. All such actions shall have precedence over any civil cause of a different nature pending in such court. Same, sec. 17971-6.

If the municipality shall have determined to acquire an existing plant and the street railway company owning such plant shall have consented to the taking over of such plant by the municipality by acceptance of an indeterminate permit as 3232 provided herein; or, in case such street railway company shall not have consented to such taking if the jury shall have found that a necessity exists for the taking of such plant, then the municipality shall give speedy notice of such determination and of such consent or such verdict of a jury to the street railway company and to the commission. Same, sec. 1797t−7.

The commission shall thereupon after public hearing and within three months from the receipt of such notice and upon notice to the municipality and the street railway company interested, by order fix and determine and certify to the municipal council and to the street railway company, just compensation to be paid for the taking of the property of such street railway company actually used and useful for the convenience of the 8233 public, and all other terms and all conditions of sale and purchase which it shall ascertain to be reasonable. The compensation and other terms and the conditions of sale and purchase thus certified by the commission shall constitute the compensation and terms and conditions to be paid, followed and observed in the purchase of such plant from such street railway company upon the filing of such certificate with the clerk of such municipality, the exclusive use of the property taken shall vest in such municipality. Same, sec. 1797t-8.

Any street railway company or the municipality being dissatisfied with such order, may commence and prosecute an action 3234 in the circuit court to alter or amend such order or any part thereof as provided in sections 1797m-64 to 1797m-73 inclusive of the statutes, and said sections so far as applicable shall apply to such action. Same, sec. 17971-9.

If the plaintiff shall not establish to the full satisfaction of the court that the compensation fixed and determined in such

order is unlawful or that some of the terms or conditions fixed and 3235 determined therein are in some particulars unreasonable, the compensation, terms and conditions fixed in said order shall be the compensation, terms and conditions to be paid, followed and observed in the purchase of said plant from such street railway company. Same, sec. 1797t-10.

If the plaintiff shall establish to the full satisfaction of the court and the court shall adjudge that such compensation is unlawful or that some of such terms or conditions are unreasonable, 3236 the court shall remand the same to the commission with such findings of fact and conclusions of law as shall set forth in detail the reasons for such judgment and the specific particulars in which such order of the commission is adjudged to be unreasonable or unlawful. Same, sec. 1797t-1I.

If the compensation fixed by the previous order of the com3237 mission be adjudged to be unlawful, the commission shall forthwith proceed to set a re-hearing for the re-determination of such compensation as in the first instance. Same, sec. 1797t-12(1).

The commission shall forthwith otherwise alter and amend 3238 such previous order with or without a re-hearing as it may deem necessary, so that the same shall be reasonable and lawful in every particular. Same, sec. 17971-12(2).

CHAPTER XII

Stock and Bond Issues

SCOPE NOTE

This chapter includes grants of power authorizing commissions to regulate the capitalization of utilities. Provisions of general corporation law prescribing rules to be observed in stock and bond issues have been excluded. For provisions authorizing commissions to ascertain the valuation of utility property, see ch. iii, on basis of rate making. For provisions involving the purchase and sale of the stocks and bonds of utilities, see ch. xiii, on intercorporate relations. For provisions prescribing general procedure to be followed in the exercise of commission authority, see ch. xiv, on commission procedure and practice. For provisions prescribing general rules of enforcement and judicial review, see ch. xv, on enforcement. For general statement of scope and method, see introduction.

ANALYSIS

PAGE

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Right to issue stock and create lien a special privilege..

851

B.

State does not guarantee stocks or bonds......

851

C.

Authority to issue stocks, bonds and other evidences of indebtedness;

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F. Proceedings for obtaining certificate and conditions of its issue........
I. Issues for money only...

874

874

2. Issues for other than money.......

875

G.

Limitations on application of acts....

877

H. Utilities authorized to issue notes for limited periods without certificate 878

I.

Issue of stocks or bonds for franchises or property of other public utilities....

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M. Duty of utilities to account to commission for disposition of proceeds. 885

N.

Certificate of authorization required to be recorded........

885

0.

Contract for consolidation or lease shall not be capitalized..

886

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Manner in which railroads and street railways may increase capital issues for special purposes designated...

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