EMERSON C. HARRINGTON, GOVERNOR. 879

tax or annual charge) actually paid to the State or to a political
subdivision thereof as a consideration for the grant of such
franchise or right; nor shall the capital stock of corporations,
formed by the merger or consolidation of two or more other
corporations, exceed the sum of the capital stock of the cor-
porations so 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 or as lien upon any contract for con-
solidation or merger.

Section 34. A gas corporation or electrical corporation or-
ganized 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 necessary for the acquisition of property, the construc-
tion, 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 obliga-
tions, or when necessary or desirable, in the discretion of the
commission, to cause the aggregate capitalization to conform
to the fair value of the property of such corporation as estab-
lished by the commission pursuant to the provisions of section
30 of this Act; provided, and not otherwise, that there shall
have been secured from the commission an 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 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 con-
tracts 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 Act or any other Act, pay-
able 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 commission; provided, how-
ever, that the commission shall have no power to authorize the