PUBLIC UTILITIES COMMISSION No. 2254-In the Matter of the Application of The Wheeling and Lake Erie Railway Company for an Order Authorizing the Issue of Said Company's Six Per Cent. Refunding Mortgage Bonds, Series C, and for the Pledge of the Same.-Prayer Granted. (Dated April 7, 1921.) This day after due notice to all parties in interest, this matter came on to be heard, and was heard upon the application of The Wheeling and Lake Erie Railway Company, (a corporation duly organized and existing under and by virtue of the laws of the State of Ohio), asking the consent and authority of this Commission to issue its Series C, refunding mortgage, six per cent. bonds of the principal sum of eight hundred and eighty-four thousand dollars, for and on account of expenditures of money (not procured by the issue of stock, bonds, notes or other evidences of indebtedness) from its treasury, within the five years next preceding the date of the filing of the application herein, for capital purposes, and to pledge the same as security for loans to be procured for the partial reimbursement of its treasury for such uncapitalized, capital expenditures. Upon consideration whereof, and being fully advised in the premises, the Commission finds: (1) That, within the five years next preceding the date of the filing of the application herein and within the period, September 7, 1920 to January 27, 1921, both inclusive, the applicant actually expended from its treasury for the construction, completion, extension and improvement of its facilities and for the payment and discharge of outstanding capital obligations, the sum of $915,840.52, none of which was obtained by the issue of stock, bonds, notes or other evidences of indebtedness, and the capitalization of which has not heretofore been authorized by order of this Commission, and (2) That the issue of applicant's said refunding mortgage, series C, bonds of the principal sum of $884,000.00 is reasonably required and the money to be procured thereby necessary for the partial reimbursement of applicant's treasury for the aforesaid uncapitalized, capital expenditures therefrom, and (3) That, under the conditions now obtaining in the financial markets and surrounding the sale of securities, it is not possible to sell applicant's said bonds for a reasonable price and that, to procure the moneys now required by the applicant, it will be necessary to negotiate loans with said bonds as collateral security therefore, and is satisfied that consent and authority for the issue and disposition of said bonds should be granted. It is therefore, Ordered, That said The Wheeling and Lake Erie Railway Company be, and hereby it is authorized to issue its refunding mortgage, six per cent. Series "C," bonds of the principal sum of eight hundred and eighty-four thousand dollars ($884,000.00). It is further, Ordered, That, pending the further order of this Commission prescribing a minimum sale price for said bonds, the same may be pledged as collateral security for a loan of $1,460,000.00, principal amount, from the United States under Section 210 of the Transportation Act, 1920, as amended. It is further Ordered, That the loan so procured from the United States shall be expended only for capital purposes. It is further Ordered, That the applicant make verified report to this Commission of the issue and disposition of said bonds, in reasonable detail, of the expenditure of said loan, and of all pertinent facts relating to such issue, pledge and disposition of said bonds. It is further Ordered, That jurisdiction of this matter be, and hereby it is retained for the purpose of hereafter prescribing a sale price or said bonds and the purposes for which the proceeds arising from a sale thereof shall be expended. No. 2149-In the Matter of the Application of The Wheeling and Lake Erie Railway Company for an Order Authorizing the Issue of Said Company's Refunding Mortgage Bonds, Series B, and for the Pledge of the Same.-Prayer Granted. (Dated April 7, 1921.) This day after due notice to all parties in interest, this matter came on to be heard, and was heard upon the application of The Wheeling and Lake Erie Railway Company, (a corporation duly organized and existing under and by virtue of the laws of the State of Ohio), asking the consent and authority of this Commission to issue its Series B, refunding mortgage, five percent. bonds of the principal sum of one million, three hundred and fifty-one thousand dollars, for and on account of expenditures of money (not procured by the issue of stock, bonds, notes or other evidences of indebtedness) from its treasury, within the five years next preceding the date of the filing of the application herein, for capital purposes, and to pledge the same as security for loans to be procured for the partial reimbursement of its treasury for such uncapitalized capital expenditures. Upon consideration whereof, and being fully advised in the premises, the Commission finds: (1) That, within the five years next preceding the date of the filing of the application herein and within the period, January first, 1917 to August thirty-first, 1920, the applicant actually expended from its treasury for the construction, completion, extension and improvement of its facilities and for the payment and discharge of outstanding capital obligations, the sum of $1,417,888.35, none of which was obtained by the issue of stock, bonds, notes or other evidences of indebtedness, and the capitalization of which has not heretofore been authorized by order of this Commission, (2) That the issue of applicant's said refunding mortgage, series B, bonds, of the principal sum of $1,351,000.00 is reasonably required and the money to be procured thereby necessary for the partial reimbursement of applicant's expenditures therefrom, and (3) That, under the condition now obtaining in the financial markets and surrounding the sale of securities, it is not possible to sell applicant's said bonds for a reasonable price and that, to procure the moneys now required by the applicant, it will be necessary to negotiate loans with said bonds as collateral security therefore, and is satisfied that consent and authority for the issue and disposition of said bonds should be granted. It is, therefore, Ordered, That said The Wheeling and Lake Erie Railway Company be, and hereby it is authorized to issue its refunding mortgage, five per cent. Series "B," bonds of the principal sum of one million, three hundred and fifty-one thousand dollars ($1,351,000.00). It is further Ordered, That, pending the further order of this Commission prescribing a minimum sale price for said bonds, the same may be pledged as collateral security for loans, viz: $100,000.00, principal sum thereof, to be pledged with the Guardian Savings and Trust Company, of Cleveland, Ohio, to replace a like amount of similar bonds previously pledged as partial security for a loan of $850,000.00, due October 22, 1921, and the remainder of such bonds, or so much thereof as may be required, to be pledged as security for a note, or notes, to be given to the United States Railroad Administration on account of additions and betterments to roadway and structures made by the United States Railroad Administration during Federal Control, or to replace similar bonds heretofore withdrawn for pledge with the Secretary of the Treasury as security for a loan from the United States under Section 210 of the Transportation Act of 1920, as amended. It is further Ordered, That the applicant make verified report to this Commission of the issue and disposition of said bonds and of all, pertinent facts relating to such pledge thereof. It is further Ordered, That jurisdiction of this matter be, and hereby it is retained for the purpose of hereafter prescribing a sale price for said bonds and the puposes for which the proceeds arising from a sale thereof shall be expended. No. 2243-In the Matter of the Application of The Price Hill Inclined Plane Railroad Company for Consent and Authority to Issue and Dispose of $40,000.00, Par Value, of Its Eight Per Cent. Preferred Capital Stock.-Prayer Granted. (Dated April 8, 1921.) This day, appearing to the Commission from the verified allegations in said application and the sworn statements and exhibits filed in connection therewith, and other documentary evidence submitted, that the taking of oral testimony herein is unnecessary, this matter came on for consideration upon the application of The Price Hill Inclined Plane Railroad Company, (a corporation duly organized and existing under and by virtue of the laws of the State of Ohio), asking the consent and authority of this Commission to issue and dispose of its eight per cent. preferred capital stock of the par value of forty thousand dollars, the proceeds arising from the sale thereof to be used to discharge indebtedness incurred and created for and on account of the purchase, for a consideration of $35,000.00, of the real estate upon which is located the railroad and buildings of the applicant. Upon consideration whereof, and being fully advised in the premises, the Commission finds from the pleadings and exhibits filed herein and its independent investigation and inquiry thereupon: 1 (1) That the applicant has created an indebtedness, now due and payable, in the sum of $35,000.00, for and on account (2) That, under the conditions now obtaining in the finan- (3) That the issue of applicant's preferred capital stock of the par value of forty thousand dollars is reasonably required and the money to be procured thereby is necessary for the payment and discharge of its aforesaid lawful, capital indebtedness, and (4) That, where and as such an arrangement can be negotiated, the applicant should be authorized to issue and deliver its said preferred capital stock, upon such a basis, in discharge of any part of said indebtedness, and is satisfied that consent and authority for the issue and disposition of applicant's said preferred capital stock should be granted. It is, therefore, Ordered, That said The Price Hill Inclined Plane Railroad Company be, and hereby it is authorized to issue its eight per cent. preferred capital stock of the total par value of forty thousand dollars ($40,000.00), and that said capital stock be sold or issued for the highest price obtainable but for not less than eighty-five and seventy-two one-hundredths percentum (85.72%) of the par value thereof. It is further Ordered, That any discount arising from a sale or disposition of said capital stock for less than the par value thereof be extinguished pursuant to the rules and regulations heretofore prescribed by this Commission. It is further Ordered, That the proceeds arising from the sale of said capital stock be expended, or said capital stock be issued and delivered upon the basis hereinbefore prescribed, or the payment and discharge of the indebtedness of the sum of $35,000.00, which was created and incurred for and on account of the acquisition of the real estate upon which is constructed applicant's railroad and buildings, and for no other purpose whatsoever. It is further Ordered, That the applicant make verified report to this Commission of the issue and disposition of said capital stock and the expenditure of the proceeds of so much thereof as shall be sold, pursuant to the terms and conditions of this order. |