748 CORPORATIONS. [ART. 23

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 com-
mission. Before such certificate shall be issued a certified copy of the
charter of such corporation shall be filed in the office of the commis-
sioner, 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 sytsems for the manu-
facture 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.

1910, ch. 180, sec. 34 (p. 380).

448. A gas corporation or electrical corporation organized or exist-
ing, or hereafter incorporated, under or by virtue of the laws of the
State of Maryland, may issue stocks, bonds, notes or other evidences of
indebtedtiess payable at periods of more than twelve months after the
date thereof, when necessary for the acquisition of property, the con-
struction, completion, extension or improvement of its plant or dis-
tributing 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 commis-
sion an order authorizing such issue, and the amount thereof, and stat-
ing 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 cor-
poration. For the purpose of enabling it to determine whether or 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 ena-
bling 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 sub-title 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 or bonds or by any evidence of indebtedness
running for more than twelve months without the consent of the com-
mission; 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 right. Nor shall the capital stock of a corporation