Ch. 216)

Organization-Right-of-Way

529

railway" as used in this act shall be deemed to mean a railway operated by electricity for the carriage of passengers, freight, mail and express between two or more municipalities within this state, upon a private right of way or partly upon a private right of way and partly upon a public way. The said term shall include the generating plants, transmission lines, equipment, appliances, apparatus and property used by the corporation operating said interurban railway in the operation thereof.

Sec. 2. Same-organization of companies powers.-Corporations, for the acquisition by construction, purchase or lease and operation of interurban railways within this state and adjoining states, may be organized in accordance with the provisions of law for the incorporation of railroads. Such corporations shall have the right, in addition to any other rights which they may have by law, to own or lease, construct, equip and operate parks or other amusement resorts for the purpose of increasing their business, and may generate, distribute and sell electricity for any purpose whatsoever. Corporations heretofore or hereafter incorporated for the purpose of owning or operating interurban railways within this state, shall be subject to all the provisions and entitled to all the privileges herein contained relating thereto, and to all other laws of the state providing for the regulation and control of common carriers.

Sec. 3. Eminent domain. Every corporation organized pursuant to or subject to the provisions hereof, shall be subject to the provisions and shall be entitled to exercise the privileges contained in the laws of this state with reference to railroads, so far as the same shall not be inconsistent with this act, and every such corporation shall be known as an interurban. railway company. Every interurban railway company shall have the right to take land or interests therein by the exercise of the power of eminent domain in the same manner as now provided by law with reference to railroads.

Sec. 4. Stocks and bonds.-Every interurban railway company may borrow money from time to time for its corporate purposes in such amounts as it may deem advisable, and may issue notes, bonds or other evidences of indebtedness, bearing interest at not more than six per cent (6%) per annum, and payable at such times as it may deem advisable, and may secure the payment of the same by the pledge or mortgage of a part or all of its property and franchises owned at the time or there

after acquired; provided, however, that no notes, bonds or evidences of indebtedness payable more than twelve months from date shall be issued without the approval of the State Railway Commission given after a hearing. Every such corporation may issue its stock in such amount as the State Railway Commission may approve after a hearing. Such stock, when so approved, may be issued by such corporation partly as preferred stock upon such conditions with reference to voting power, dividends and preferences as the said corporation may deem advisable. Every such corporation may, subject to the approval of the State Railway Commission, aid the construction or operation of any other corporation, organized pursuant to or subject to the provisions of this act, by the guarantee of the payment of the principal or interest of any notes, bonds or evidences of indebtedness. The State Railway Commission shall render its decision on any petition for approval of the issue of stock, bonds, notes or evidences of indebtedness within thirty (30) days after the final adjournment of the hearing thereon.

Sec. 5. Same-effect of order of railway commission.-Any order of the State Railway Commission heretofore or hereafter made authorizing the issue by a corporation of stocks, bonds, notes or other evidences of indebtedness, payable at periods of more than twelve months after the date thereof, shall be conclusive as to the validity of the issue of the same, and the same shall be deemed to have been issued in accordance with law and to be fully paid, if issued in accordance with such order of the commission. In making any order authorizing the issue of any stocks, bonds, notes or other evidences of indebtedness payable at periods of more than twelve months after the date thereof, by any corporation, the commission, in addition to fixing the amount of the same, may also fix the price. at which the same shall be sold, and may impose such other conditions as to the issue and distribution thereof as the commission deems appropriate; provided, however, that, if any such order shall prohibit the sale or distribution of securities to the public until after the completion of the work for which the securities, or the proceeds thereof, are ordered to be used, the corporation receiving such order shall have the right to sell such securities at any time that it may deem to be most advantageous so to do; provided, it shall file a bond with good and

Ch. 216)

Stocks, Bonds, Real Estate

531

sufficient sureties conditioned on the completion of the said work, or a sum of money, sufficient, in the opinion of the commission, to complete said work, shall be deposited with som bank or trust company in good standing to be paid out from time to time as the construction of the said work shall continue. Such bond or deposit shall be subject to the approval of the State Railway Commission.

Sec. 6. Rights of leasee, purchasers, etc.-All orders of the commission shall be binding upon all parties to the proceeding in which such order shall be issued, unless stayed, vacated or modified by a court of competent jurisdiction. All orders of the commission, without further action by the commission, shall be binding upon the successors and assigns of any corporation in favor of or against which such order may be issued, and any such successor or assign shall be entitled to exercise the rights and privileges granted by such order in all respects as if it had been the original applicant therefor and the original grantee thereof. Any corporation purchasing or leasing railways, systems or property in accordance with this act, shall be deemed a successor or assign of the corporation whose railways, systems and property have been purchased or leased, and shall in its own name and behalf observe and perform all obligations, conditions and duties required by any order theretofore issued by the commission relating to the property so purchased or leased, and may similarly exercise any right or privilege granted in any such order in all respects as if it were the original grantee, and to that extent and for that purpose such order shall be deemed assignable. All orders of the commission hereafter entered, except orders fixing rates of service, shall be deemed irrevocable, if acted upon and complied with in good faith in whole, or in part with the intention of fully complying therewith, by the corporation to whom such order shall be issued.

Sec. 7. Amendment.-Section 6185, Revised Statutes of Nebraska 1913, shall be amended to read as follows:

6185 Sec. 259. Street railways-extension of line beyond city limits-stock.-Any street railway company owning or operating a street railway system in any city of the state, and whose line or lines extend to the corporate limits of such city, may extend one or more of its lines of railway beyond such

corporate limits either by construction or by purchase or lease of the lines of railway of another corporation, and for that purpose such street railway company may, subject to the approval of the State Railway Commission, use its income or surplus, issue stock and borrow money and issue notes, bonds or other evidences of indebtedness to pay for the same in all respects as if it were an interurban railway company, and the provisions of this act shall apply to such street railway company making such extension in so far as the same may be applicable.

Sec. 8. Purchase of one system by another. The purchase or lease by a street railway company or interurban railway company of the lines of railway, systems and property of another similar corporation, whose lines of railway, systems or property are physically connected with those of the purchaser, or if under construction, will when completed be physically connected, so as to form, when purchased, a continuous line or system, shall be deemed an extension, and such purchase or lease, and the consequential sale or lease, are hereby expressly authorized upon the following conditions; provided, however, no such purchase and sale shall be made until an agreement therefor shall be entered into by the boards of directors, or trustees or managers of the corporations which are parties to such purchase and sale, or lease, and such agreement shall have been approved by a two-thirds vote of the stockholders of the purchaser and seller, or lessor and lessee, at a meeting called for the purpose in accordance with law. A certified copy of such agreement and a certified copy of the proceedings relative thereto taken at such stockholders meeting shall be filed with the Commission. Such contract shall not become binding nor shall it have any legal effect until approved by the State Railway Commission. Any corporation purchasing lines of railway, systems or property in accordance with this section, may issue, when authorized by the commission, its stock, bonds or other evidences of indebtedness to pay therefor and to complete the said lines of railway, systems or property, in such amounts and upon such terms as it may desire, but not contrary to the order of the commission, if any, which may have been issued theretofore, to the corporation selling or leasing such lines of railway, systems and property; provided, that the total amount of such stock, bonds or evidences of indebtedness shall not, without the consent of the

Ch. 216)

Connect with Existing Lines

533

commission, exceed at par the total amount of stock, bonds and evidences of indebtedness of the corporation whose lines of ra way, systems and property are so purchased or leased, at the time lawfully outstanding plus such amount thereof as may have been authorized by the commission, but unissued; provided, further, that if any part of the outstanding stock or bonds of such corporation lastly referred to shall not contemporaneously with such purchase or lease be cancelled or retired or owned by the corporation making such purchase or lease, but shall remain outstanding in the hands of others, then the amount of bonds and stock which such purchasing or leasing corporation may issue in accordance with this section, shall be reduced by the amount of bonds and stock so remaining outstanding. Bonds or stock pledged shall be deemed owned for the purposes of this section.

Sec. 9. Right to connection with city lines.-If an interurban railway company has a line or lines of railway constructed to the city limits of any city having within its corporate limits a street railway line, lines, system or systems, the city council, or other governing body, may grant to the corporation owning or operating such interurban railway the right to enter and pass through the city, and use the tracks of any street railway already in operation within said city, provided, however, that the State Railway Commission shall fix and determine just and reasonable terms and conditions upon which such interurban railway company may use said tracks, power, and other transportation facilities.

Any interurban railway company shall be entitled to run its cars over any street railway within any city or village, but must pay a reasonable compensation for the privilege to the corporation owing such street railway. Should the facilities afforded by such street railway be inadequate for the use of the interurban railway company, then upon application to the city council, or other governing body of said city, such interurban railway company may be granted a right of way and terminal facilities over, across, in and upon such convenient street or streets not already occupied by a street railway, as the city council may determine, so that such interurban railway company can reach convenient terminals within the business portions of such city; provided, no grant for the sole use of such interurban railway company shall be made except after a vote of the people of such city in favor thereof.