370 LAWS OF MARYLAND.

or other evidence of indebtedness, payable at periods of more
than twelve months after the date thereof, when necessary for
the acquisition of property, the construction, completion, ex-
tension or improvement of its facilities, or for the improvement
or maintenance, extension or improvement of its facilities, or
for the improvement or maintenance of its service, or the dis-
charge or lawful refunding of its obligations; provided, and
not otherwise, that there shall have been secured from the Com-
mission an order authorizing such issue, and the amount there-
of, and stating that, in the opinion of the Commission, the use
of the capital to be secured by the issue of such stocks, bonds
or other evidence of indebtedness is reasonably required for
the said purposes of the common carrier, railroad corporation,
street railroad corporation, or such corporations, but this pro-
vision shall not apply to any lawful issue of stock, to the-
lawful execution and delivery of any mortgage, or to the lawful
issue of bonds thereunder, before the time when this Act be-
comes a law. For the purpose of enabling it to determine
whether 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 deter-
mination. Such common carrier 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 or bonds, or by any evidence of indebtedness run
ning 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 right to own, operate or enjoy any franchise what-
soever in excess of the amount (exclusive of any 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 corporation, formed by
the merger or consolidation of two or more other corporations,
exceed the sum of the capital stock of the corporations so con-
solidated, at the par value thereof, or such sum and any addi-
tional sum actually paid in cash; nor shall any contract for
consolidation or lease be capitalized in the stock of any cor-
poration whatever; nor shall any corporation hereafter issue
any bonds, against or as lien upon any contract for consolida-
tion or merger.