tificates of stock, bonds, notes, or other evidences of indebtedness reasonably necessary for the purposes for which they are to be issued, and the character of the same; (b) the purposes for which they are to be issued, and (c) the terms upon which they are to be issued. Such corporation shall not apply the proceeds of such stock, bonds, notes, or other evidences of indebtedness as aforesaid, to any purposes not specified in such certificate, nor issue such stock, bonds, notes, or other evidences of indebtedness, on any terms not specified in such certificate.
"Consolidations; commission's valuation first required. Section 1753-11. 2. No public service corporation shall purchase, directly or indirectly, or in any way acquire the property of any other public service corporation or of any person furnishing service to the public, for the purpose of effecting a consolidation, except that the property of such corporation or person shall first be valued as provided in subsection 5 of section 1753-9 of the statutes, and then only at a sum not to exceed the value found and determined by the commission and stated in the certificate of authority issued to such corporation for the issuance of stocks, certificates of stock, bonds, notes, or other evidences of indebtedness."
The commission is given the authority to determine in a scientific way whether certain issues are or are not reasonable, and is also given full power of supervision. It was a difficult law to draft and it may be said to be largely experimental. The court decisions throughout the country have involved the stock watering situation to such a degree that it is very hard to delegate power to a commission, and it is very probable that this stock and bond law goes as far in this matter as the decisions
