798 LAWS OF MARYLAND. [CH. 474

capitalization to conform to the fair value of the property of
such corporation as established by the Commission pursuant
to the provisions of Section 442; 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 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 law-
ful execution and delivery of any mortgage; or to the lawful
issue of bonds thereunder, before the time when this sub-
title becomes a law. For the purpose of enabling it to
determine whether it should issue such an order the Commis-
sion shall make 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 common carrier may issue notes for
proper corporate purposes, and not in violation of any pro-
vision 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 indebted-
ness running for more than twelve months, without the con-
sent of the Commission ; provided, however, that the Commis-
sion 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 fran-
chise whatsoever in excess of the amount (exclusive of any tax
or annual charge) actually paid to the State or to a political
sub-division 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 consideration 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 eon-
tract for consolidation or merger.