gas or electric companies furnishing the meters and no place else. Opinions General Counsel, 1 Pub. Serv. Comm. Reps. 41, 43. No fee can be charged by the Commission for inspection of meters under this section. Opinions General Counsel, 1 Pub. Serv. Comm. Reps. 76. The fact that meters are inspected before installation by public authorities foreign to this State, does not relieve the Commission from discharging the duty of inspection imposed by this section. Opinions General Counsel, 1 Pub. Serv. Comm. Reps. 95. Where meters are found to be "fast" the Commission has no power to order pecuniary reparation. Opinions General Counsel, 2 Pub. Serv. Comm. Reps. 414. Ibid. Sec. 446. Complaints of Consumers. SEC. 32. And be it further enacted, That if any con- Inspections on sumer to whom a meter has been furnished shall request the Commission to inspect such meter, the Commission shall have the same inspected and tested; if the same, on being tested, shall be found to be four per cent., if an electric meter, or two per cent., if a gas meter, defective or incorrect, to the prejudice of the consumer, the inspector shall order the gas or electrical corporation forthwith to remove the same and to place instead thereof a correct meter, and the expense of such inspection and test shall be borne by the corporation; if the same, on being so tested, shall be found to be correct, the expense of such inspection and test shall be borne by the conA uniform reasonable charge shall be fixed by the Commission for this service. sumer. Charge for inspecting and proving complaint meters fixed at one dollar. Order No. 56, 1 Pub. Serv. Comm. Reps. 193; Order No. 3662, 1 Pub. Serv. Comm. Reps. 239. Inspection Ibid. Sec. 447. Approval by struction or Franchises. Papers to be Filed With Application. SEC. 33. And be it further enacted, That no gas corBefore Con- poration or electrical corporation incorporated under the Exercise of laws of this or any other State shall begin construction or exercise any right or privilege under any franchise hereafter granted or under any franchise heretofore granted but not heretofore actually exercised, without first having obtained the permission and approval of the Commission. Before such certificate shall be issued a certified copy of the charter of such occupation shall be filed in the office of the Commission, together with a verified statement of the president and secretary of the corporation, showing that it has received the required consent of the proper municipal authorities. No municipality, except the Mayor and City Council of Baltimore, shall build, maintain and operate for other than municipal purposes any works or systems for the manufacture and supplying of gas or electricity for lighting purposes without a certificate of authority granted by the Commission. If the certificate of authority is refused, no further proceedings shall be taken before the Commission, but a new application may be made therefor after one year from the date of refusal. Municipal Plants. An extension of an already existing gas plant involving the use of public highways, which can be used only with the consent of the local municipal authorities or of the National Government, requires the approval of the Commission before being undertaken. Opinions General Counsel, 2 Pub. Serv. Comm. Reps. 480.. It is the policy of the Commission not to authorize foreign gas and electrical corporations to begin construction and to exercise franchises in this. State. Opinions General Counsel, 2 Pub. Serv. Comm. Reps. 478. APPROVAL OF ISSUES OF STOCKS, ETC. Ibid. Sec. 448. Stocks and Commission. SEC. 34. And be it further enacted, That a gas cor- Issue of poration or electrical corporation organized or existing, or hereafter incorporated, under or by virtue of the laws of-the State of Maryland, may issue stocks, bonds, notes or other evidences of indebtedness payable at periods of more than twelve months after the date thereof, when Purposes of. necessary for the acquisition of property, the construction, completion, extension or improvement of its plant or distributing system, or for the improvement or maintenance of its service or for the discharge or lawful refunding of its obligations; provided, and not otherwise, that there shall have been secured from the Commission an Authority of order authorizing such issue, and the amount thereof, and stating that in the opinion of the Commission, the use of the capital to be secured by the issue of such stock, bonds, notes or other evidences of indebtedness is reasonably required for the said purposes of the corporation. For the purpose of enabling it to determine whether or Hearings. not it should issue such an order, the Commission shall make such inquiry or investigation, hold such hearings and examine such witnesses, books, papers, documents or contracts as it may deem of importance in enabling it to reach a determination. Such gas corporation or electrical corporation may issue notes, for proper corporate purposes, and not in violation of any provision of this or any other Act, payable at periods of not more than twelve months without such consent; but no such notes shall, in whole or in part, directly or indirectly, be refunded by any issue of stock Notes Due in What Cannot be Capitalized. Franchises. or bonds or by any evidence of indebtedness running for more than twelve months without the consent of the Commission; provided, however, that the Commission shall have no power to authorize the capitalization of any franchise to be a corporation or to authorize the capitalization of any franchise or the right to own, operate or enjoy any franchise whatsoever in excess of the amount (exclusive of any tax or annual charge) actually paid to the State or any political subdivision thereof as the consideration for the grants of such franchise or Stock of Con right. Nor shall the capital stock of a corporation formed Corporation. by the merger or consolidation of two or more other corporations exceed the sum of the capital stock of the corporations consolidated, at the par value thereof, or such sum and any additional sum actually paid in cash, nor shall any contract for consolidation or lease be capitalized in the stock of any corporation whatever, nor shall any corporation hereafter issue any bonds against a lien upon any contract for consolidation or merger. See Section 52a infra. solidated Contracts for Consolidation or Lease not to be Capital ized. The Commission discourages the issue of bonds to any considerable amount to cover additions to office equipment, even where the sum so applied is only a small item in the amount of the bond issue. Such expenditure is better covered by the issue of capital stock. In re Consolidated Gas, Electric Light and Power Company, 1 Pub. Serv. Comm. Reps. 268. The authorization of an issue of bonds by the Commission carries with it no sort of guaranty to the investor, but it is the Commission's duty to investigate not only the actual cost of properties, which are offered, as security for bond and stock issues, but, as far as possible, their commercial value as well, and the Commission would be derelict in its duty if it should approve a scheme which gave no promise of success as a busi ness venture. So where one corporation operates a hydro-elec- 2 Pub. Serv. Comm. Reps. 254. As a general rule the Commission will insist upon an issue of stock in an amount at least equal to the issue of bonds. In re Crisfield Light & Power Company, 2 Pub. Serv. Comm. Reps. 303, 305. Opinions The approval of the Commission is not necessary in the case of an issue of securities by a foreign corporation. General Counsel, 2 Pub. Serv. Comm. Reps. 478. The provisions of Sections 35 and 36 of Article 23 of the Public General Laws of Maryland, requiring certain formalities before stock is issued for services or property, are not repealed or superseded in any manner by the provisions of the Public Service Commission Law relating to the issuance of stock. Opinions General Counsel, 3 Pub. Serv. Comm. Reps. 470. APPROVAL OF TRANSFER OF FRANCHISE. Ibid. Sec. 449. Franchises to be Approved. SEC. 35. And be it further enacted, That no gas cor- Transfer of poration or electrical corporation shall transfer or lease its franchise, works or system, or any part of such franchise, works or system to any other person or corporation or contract for the operation of its works and system, without the written consent of the Commission. The permission and approval of the Commission to the exercise of a franchise under this Act, or to the assignment, transfer or lease of a franchise under this section shall not be construed to revive or validate any lapsed or in Lapsed and Invalid Not Validated. |