owned by the trustees of a voluntary association known as the Massachusetts Lighting Companies. The expenditures for construction which it is now sought to capitalize were to some extent for the purpose of replacing the station equipment with apparatus of larger capacity and more efficient type. They were, if not all, at any rate in large part, made through the medium of the Light, Heat and Power Corporation, another company owned by this association, in a manner to yield the association thereby a considerable profit over and above the actual cost of the labor and materials in the open market. A similar policy has been pursued by these owners with respect to the management and other charges appearing in the Leominster company's operating expenses. In addition, the Leominster company has paid dividends during this period at the respective rates of 6, 7, 61, 8, 8, 10, 12 and 22 per cent. Of the notes of the Leominster company out on June 30, 1914, $140,000 were held by said association and $34,000 by the Gas and Electric Improvement Company, which in turn is owned by the association and for about two years has managed the Leominster

company.

In view of the foregoing facts, and after an examination of the company's affairs and a consideration of the character of the expenditures made by it and its resources, the Board is of the opinion that, to the extent hereinafter authorized, the existing floating debt may be represented in capital stock.

The following was therefore adopted:

On the petition of the Leominster Electric Light and Power Company. pursuant to the provisions of section 39 of chapter 742 of the Acts of 1914, for the approval of an issue of additional capital stock of the par value of $150,000 for the objects named in said petition, after public notice and hearing, it being deemed by the Board that the amount of stock hereinafter named is reasonably necessary for the purpose for which such issue is authorized, it is

Ordered, That the Board hereby approves of the issue by the Leominster Electric Light and Power Company, in conformity with all the requirements of law relating thereto, at the price of $100 a share, as determined by its directors, of 1,400 shares of new capital stock of the par value of $100 each, the proceeds thereof to be applied to the payment and cancellation of an equal amount of the obligations of the company represented by its promissory notes outstanding on June 30, 1914, and to no other purpose.

And if any shares shall remain unsubscribed for by the stockholders entitled to take them under the provisions of law relating thereto, it is further

Ordered and determined by the Board that all such shares shall be offered for sale at some suitable place in the city of Boston, and that notice of the time and place of such sale shall be published in the "Boston Daily Advertiser," the "Boston Evening Transcript" and the "Boston Post," newspapers published in the city of Boston. (Jan. 5, 1915.)

PETITION OF THE CLINTON GAS LIGHT COMPANY.

This was an application by the Clinton Gas Light Company for the approval of an issue of additional capital stock of the par value of $100,000 for the payment of floating indebtedness incurred in the enlargement of its plants and distributing systems, and for further proposed enlargements and extensions thereof.

On June 30, 1914, the company had outstanding promissory notes to the amount of $102,500, an increase of $30,000 since the application was filed. It was proposed to devote the proceeds of the additional stock, if approved, to the payment of the notes then outstanding, and to the completion of certain additions to the company's electric and gas distributing systems which were then in process of construction or contemplated and estimated to cost $27,500.

On July 8, 1904, the Board approved of an issue of capital stock of the par value of $50,000, of which the proceeds of $25,000 were to be applied to existing debt and the balance to future additions. In 1905 it approved of the issue of bonds to the amount of $110,000, of which the proceeds of $100,000 were to take up coupon notes equal in amount, and of $10,000 to be devoted to additions to plant. In connection with the approval of the stock the Board, finding the fair structural value of the company's plant to be less than its outstanding stock and debt, directed that no dividends in excess of 5 per cent. should be paid by the company "until it shall have expended upon its plant for additional construction after the date hereof not less than $25,000 in addition to the proceeds of the capital stock hereinbefore approved, and until any indebtedness incurred on account of such expenditure for construction has been fully paid and cancelled." No dividends in excess of the designated rate were paid until after June 30, 1913. Meanwhile the accounts

of the company show that net earnings somewhat in excess of the Board's requirements were put back into the plant; but for the year ending June 30, 1914, dividends at the rate of 20 per cent. were declared, and to pay these dividends it has been necessary to resort, to a substantial extent, to the quick assets already taken into account as of June 30, 1904, in determining the fair structural value of the plant. At the best there has been but a technical compliance with the Board's order with respect to the impairment. For a period of nine years no resources have been available for depreciation save only with respect to certain expenditures for extraordinary repairs aggregating $11,041, and such earnings as were available for this purpose during this last fiscal year have been distributed in dividends.

Between June 30, 1904, and June 30, 1914, the company's charges to its construction accounts have been approximately $159,000, although, by reason of certain depreciation charges, the increase in the book value has been but $130,744. For this there was available from the stock and bonds already approved the sum of $35,000, and from the earnings prior to June 30, 1913, more than $25,000.

During this period and for some years previous the capital stock of this company has been owned by the trustees of a voluntary association known as the Massachusetts Lighting Companies. The expenditures for construction, which it is now sought to capitalize, were, if not all, at any rate in large part made through the medium of the Light, Heat and Power Corporation, another company owned by this association, in a manner to yield the association thereby a considerable profit over and above the actual cost of the labor and materials in the open market. A similar policy has been pursued by the association with respect to the management and other charges appearing in the Clinton company's operating expenses. Of the notes of the company outstanding on June 30, 1914, $83,500 were held by said association and $19,000 by the Gas and Electric Improvement Company, which in turn is owned by the association and for about two years has managed the Clinton company.

In view of the foregoing facts, and after an examination of

the company's affairs and a consideration of the character of the expenditures made by it, and the resources which might have been available therefor had a different policy been pursued, the Board is of the opinion that, to the extent hereinafter authorized, the existing floating debt may be represented in capital stock.

The following was therefore adopted:

On the petition of the Clinton Gas Light Company, pursuant to the provisions of section 39 of chapter 742 of the Acts of the year 1914, for the approval of an issue of additional capital stock of the par value of $100,000 for the objects named in said petition, after public notice and hearing, it being deemed by the Board that the amount of stock hereinafter named is reasonably necessary for the purpose for which such issue is authorized, it is

Ordered, That the Board hereby approves of the issue by the Clinton Gas Light Company, in conformity with all the requirements of law relating thereto, at the price of $500 a share, as determined by its directors, of 120 shares of new capital stock of the par value of $500 each, the proceeds thereof to be applied to the payment and cancellation of an equal amount of the obligations of the company represented by its promissory notes outstanding on June 30, 1914, and to no other purpose.

And if any shares shall remain unsubscribed for by the stockholders entitled to take them under the provisions of law relating thereto, it is further

Ordered and determined by the Board that all such shares shall be offered for sale at some suitable place in the city of Boston, and that notice of the time and place of such sale shall be published in the "Boston Daily Advertiser," the "Worcester Daily Telegram" and the "Clinton Item," newspapers published in the cities of Boston and Worcester and the town of Clinton, respectively. (Jan. 6, 1915.)

Miscellaneous.

PETITION OF THE HAVERHILL GAS LIGHT COMPANY. This was an application by the Haverhill Gas Light Company for authority, under the provisions of chapter 197 of the Acts of 1910, to carry on the business for which it was incorporated in the towns of Groveland and Merrimac.

This company was chartered by chapter 8 of the Acts of 1853 "for the purpose of manufacturing and selling gas in the village of Haverhill." By chapter 163 of the acts of the same year it was authorized to extend its pipes into the town of Bradford, which since that time has been annexed to Haverhill.

The towns of Groveland and Merrimac adjoin Haverhill on the east, and are on the south and north sides, respectively, of the Merrimac River. Neither of these towns is at present supplied with gas. It appeared at the hearings that the company proposed to build at once distributing systems in Merrimac and Groveland, and to connect them with the works in Haverhill, supplying Merrimac by a high-pressure system and Groveland by an extension of the present low-pressure distribution system in Bradford. The selectmen in both towns have voted to grant the company the necessary permission to open the streets. The following was therefore adopted:

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On the petition of the Haverhill Gas Light Company, a corporation established under the laws of this Commonwealth "for the purpose of manufacturing and selling gas in the village of Haverhill" and duly authorized to extend its pipes into the town of Bradford (now a part of Haverhill), for authority to carry on the business for which it was incorporated in the towns of Groveland and Merrimac, as provided in chapter 197 of the Acts of the year 1910:

Voted, That the Board of Gas and Electric Light Commissioners, after notice and a public hearing and upon due consideration thereof, hereby authorizes the said Haverhill Gas Light Company to carry on the business for which it was incorporated in the towns of Groveland and Merrimac, with all the rights, powers and privileges, and subject to all the duties. and liabilities, set forth in all general laws now or hereafter in force applicable to said corporation. (Feb. 18, 1914.)

SHREWSBURY DEPRECIATION FUND.

Upon a request to this Board from the municipal light department of the town of Shrewsbury by Edward A. Logan, manager, and in behalf of said town, for the approval of an appropriation of $2,060.46 for the depreciation fund for account of the Municipal Electric Lighting Plant for the current fiscal year of the town, said sum being a larger amount than 3 per cent. of the cost of the plant exclusive of land and water power, it is

Voted, That the Board hereby approves of the sum of $2,060.46 to be included by the town of Shrewsbury in its appropriations and in the tax levy for the current fiscal year for account of the depreciation fund of the Municipal Electric Lighting Plant. (Feb. 27, 1914.)