380 LAWS OF MARYLAND.

APPROVAL OF ISSUES OF STOCKS, ETC.

SEC. 34. And be it further enacted, That a gas corporation
or electrical corporation organized or existing, or hereafter in-
corporated, under or by virtue of the laws of the State of Mary-
land, may issue stocks, bonds, notes or other evidences of in-
debtedness payable at periods of more than twelve months
after the date thereof, when necessary for the acquisition of
property, the construction, completion, extension or improve-
ment of its plant or distributing system, or for the improve-
ment or maintenance of its service or for the discharge or law-
ful refunding of its obligations; 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 en-
abling it to determine whether or not it should issue such an
order, the Commission shall make such inquiry or investiga-
tion, 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
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 corpora-
tion or to authorize the capitalization of any franchise or the
right to own, operate or enjoy any franchise whatsoever in ex-
cess 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 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 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 a lien upon any contract for consolidation
or merger.