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Steam railroad bonds.

(c) In the legally authorized first mortgage bonds of any

steam railroad corporation organized under the laws of any Proviso. state of the United States : Provided, That such company has

for five years prior to the time of making such investment by said bank, paid annually, dividends equal to not less than four per cent on its entire capital stock and has not during said period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or

interest of any bonds guaranteed and assumed by it; or Leased lines of (d) In the first mortgage bonds of railroad companies railroad companies.

whose lines are leased or operated or controlled by any railroad company specified in paragraph (c) of this section, if said bonds be guaranteed both as to principal and interest by the railroad company to which said lines are leased or by

which they are operated or controlled; In bonds which (e) In the legally authorized mortgage bonds of any retire prior mortgage in

steam railroad incorporated under the laws of any state of debtedness.

the United States, which shall have been issued for the purpose of retiring all prior mortgage indebtedness on so much of the property of such company as is covered by the mortgage

securing such issue of bonds, and further providing for adProviso as to ditions, extensions or improvements: Provided, That such company's condition.

company has for three years prior to the time of making such investment by said bank, paid annually, dividends equal to not less than four per cent on its entire capital stock, which capital stock shall equal or exceed in amount one-third of the par value of all its bonded indebtedness, and has not during the same period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured prin

cipal or interest upon a bond guaranteed or assumed by it: Proviso. Provided, Said issues of bonds shall have been approved by

the securities commission, hereinafter provided for; In bonds of (f) In the legally authorized first mortgage bonds of any street railways,

electric railroad, street railway, gas or electric light or power gas companies, etc.

company, organized under the laws of the State of Michigan: Proviso as to Provided, That such company has for five years prior to the company's condition.

time of making such investment by said bank, paid annually, dividends equal to not less than four per cent on its entire capital stock, and has not during the same period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest of any bonds guaranteed or assumed by it; or in the first mortgage bonds

of any such company which has been in operation less than Proviso as to cost five years: Provided, That the cost of construction and equipof plant, encum: brances, etc.

ment of the plant of such company shall exceed by at least fifty per cent the amount of the entire bonded indebtedness

of such company, and the said plant and equipment shall be
free from all other liens and encumbrances, and the said
company shall have earned during the period it has been in
operation, more than enough to pay all interest accrued on
all said bonds and not less than four per cent per annum
dividends upon its entire capital stock outstanding: Pro- Proviso.
vided, Said issues of bonds shall have been approved by the
securities commission hereinafter provided for;

(g) In the legally authorized first mortgage bonds of In bonds of steamsteamship companies: Prorided, That such mortgages shall proviso as to conbe upon steel steamship or steamships for the carriage of struction of boats. freight or package freight and passengers combined, upon the Great Lakes and connecting waters, of at least five thousand tons carrying capacity each: Provided, Such bonds Proviso. are issued at the time of completion and enrollment of such steamship or steamships, or within one year thereafter: And Further proviso. provided further, That by the express terms of said: mortgage, at least ten per cent of the total issue of said bonds shall be retired annually, beginning within two years from the date of said bonds, and that the mortgage liability against said property shall not exceed one-half of its actual cost: And Further proviso provided further, That the trustee of such mortgage shall be as to protection of required to protect the lien of said mortgage by attending to trustee. the recording thereof and by causing property covered by said mortgage to be insured against all risks on vessel property ordinarily covered by such insurance, including marine risks and disasters, general and particular average, collision liability, protection and indemnity insurance and insurance against liability for injuries to persons, in insurance companies and under forms of policies approved by the trustee, for an amount equal to the full insurable value of such steamship, such insurance to be made with loss payable to said trustee and the policies deposited with it: And provided Further proviso as further, That there shall be filed with the Commissioner of

to schedule of

insurance. the Banking Department of this State a schedule of the insurance upon such property, which schedule shall be signed by the trustee under said mortgage and shall be accompanied by the certificate of said trustee that the policies mentioned in said schedule are held by said trustee and are payable to said trustee in case of loss for the benefit of the holders of the outstanding bonds issued under such mortgage; and fur- Certificates of ther that similar certificates be filed from time to time by

renewal. said trustee with said Commissioner of the Banking Department of this State evidencing renewals of said insurance by proper policies or legal insurance binders: Provided further, Further proviso aus That by the terms of such mortgage, the mortgagor shall not

indebtedness. suffer such steamship to become indebted in an amount exceeding five per cent of the original amount of the principal of said mortgage at any time and that the failure of the mortgagor to forth with procure the release of such steamship or steamships, from mechanics', laborers', admiralty,

to excessive

paper.

paper.

statutory or other liens, claims or charges against such steam

ship, shall constitute a default in the provisions of such mort. Further proviso.gage: And provided further, That such bonds shall have been

approved by the securities commission hereinafter provided

for. Secured

(h) Said banks may loan the same upon negotiable paper, negotiable or other evidences of indebtedness, secured by any of the

above mentioned classes of security; or Real estate

(i) Upon notes or bonds secured by mortgage lien upon mortgages.

unencumbered real estate worth at least double the amount Notes, bills, etc., loaned; the remainder of such deposits may be invested in payment insured notes, bills or other evidences of debt, the payment of which security. is secured by the deposit with the bank, of collateral security

consisting of personal property or securities of known market

able value, worth ten per cent more than the amount so loaned May deposit

and interest for the time of the loan; or may be deposited in banks, trust

in any national bank, trust company, or bank in cities in companies, etc.

this or any other state, approved by the Commissioner of the Banking Department as reserve cities, and a portion of said

remainder not exceeding the capital and additional stockInvestments in

holders' liability, may be invested in negotiable paper apapproved proved by the board of directors, but the deposits in any one negotiable

bank shall not exceed ten per cent of the total deposits, capWhen bank to ital and surplus of the depositing bank. In case the actual restore its reserve fund.

reserve shall fall below the fifteen per cent above provided, the bank shall promptly and in good faith, take measures to restore and maintain its lawful reserve, in default of which the Commissioner of the Banking Department shall require such restoration within thirty days after notice, and a failure to comply with such demand shall warrant proceedings to

wind up the bank as provided in section six of this act. Amount of

Sec. 52. The total liabilities to any bank of any person or liabilities permitted.

of any company, corporation or firm for moneys advanced, including in the liabilities of the company or firm, the liabilities of the several members thereof, except special partners, shall at no time exceed one-tenth part of the amount of the capital and surplus of such bank, but the discount of bills of exchange drawn in good faith against actually existing values and the discount of commercial or business paper ac.

tually owned by the person negotiating the same shall not be Proviso. considered as money borrowed: Provided, however, That the

foregoing limitations shall not apply to loans on real estate

or other collateral securities authorized by this act, and deProviso.

posited with the bank: Provided, however, That by a twothirds vote of directors, the liabilities to any bank of any person or company or corporation or firm may be increased

to a sum not exceeding one-fifth of the capital and surplus of Further proviso the bank: Prorided further, That before any bank, under the as to loans to officers and

supervision of the laws of this State, shall loan any of its employes. funds to its officers or its employes, such loans shall be first

submitted to the directors of such bank for their approval.

loans and investments.

Not more than one-fourth of the assets of any bank shall be limit of other loaned or invested in steam railroad bonds and not more than one-tenth of the assets of any bank shall be invested in the bonds of any one railroad corporation described in paragraph (c) or (d) of section twenty-seven, and not more than one-twentieth of such assets in the bonds of any company or corporation described in paragraphs (e), (f) or (g) of said section, and not more than one-tenth of the assets of any bank shall be loaned to any one person, corporation or firm on the collateral pledges described in paragraph (h) of same section. SEC. 67. There shall be a board of commissioners for the Commissioners,

who to constitute. purpose of passing on the securities mentioned in paragraphs (e), (f) or (g) of section twenty-seven of this act, consisting of the Commissioner of the State Banking Department, who shall be chairman, the Attorney General and the State Treasurer of this State, who shall be members of this board during their respective terms of office, which board shall be known as the Securities Commission. It shall be the duty Duty of. of this commission, whenever an issue of bonds, which shall come within the requirements of paragraphs (e) and (f) of section twenty-seven of this act, shall be presented to them, to examine into the financial conditions of the corporation issuing such bonds, and ascertain whether such issue is excessive as compared with the value of the property of such corporation, and if they shall find that such issue of bonds is not excessive and that they comply with the other requirements of said paragraph of said section, they shall so certify in a book to be kept in the State Banking Department for that purpose, and thereupon said banks may invest in such bonds. The actual expense of the commission in examining Expense of, the issues of bonds presented as aforesaid, shall be paid by by whom paid. the person or company applying to said commission to have such bonds certified as legal investment under said paragraphs of said section.

This act is ordered to take immediate effect.
Approved June 16, 1905.

[No. 263.]

AN ACT to amend section twenty-six of chapter seventy

eight of the revised statutes of eighteen hundred forty-six, entitled “Of the sale of lands of minors and other persons under guardianship, and securing the proceeds for their use," as added by act one hundred twenty-eight of the public acts of eighteen hundred ninety-five, being section nine thousand one hundred sixty-six of the Compiled Laws of eighteen hundred ninety-seven, as last amended by act two hundred seven of the public acts of nineteen hundred three.

The People of the State of Michigan enact:

Section

SECTION 1. Section twenty-six of chapter seventy-eight of amended.

the revised statutes of eighteen hundred forty-six, entitled “Of the sale of lands of minors and other persons under guardianship, and securing the proceeds for their use," as added by act one hundred twenty-eight of the public acts of eighteen hundred ninety-five, being section nine thousand one hundred sixty-six of Compiled Laws of eighteen hundred ninety-seven, as last amended by act two hundred seven of the public acts of nineteen hundred three, is hereby amended to read as

follows: Judge of Probate, Sec. 26. In any case where license to sell real estate is to self real estate applied for, the judge of probate may, in his discretion, after

due notice to all persons interested as required by this chapter, and after taking or causing to be taken, the testimony of two or more credible and disinterested freeholders, under oath in writing, administered by said judge of probate, or by the judge of probate of the county in which the real estate is situated, grant a license to the guardian to dispose of said

real estate at private sale, at the highest price obtainable, To determine not less than the value thereof, as determined by said judge of value and con

probate, which sale shall be confirmed and approved by said judge of probate before any deed passing the title to said

real estate so sold at private sale shall be valid and effectual: Proviso as to Provided, That said freeholders shall be well known to the testimony.

judge taking such testimony to be credible witnesses and when taken by a judge not having the estate in charge shall be paid for and transmitted the same as depositions in other courts and in either case such testimony shall be filed and

kept with other papers relating to the sale of said real estate: Further proviso as And provided further, That the provisions of this chapter to oath and bond. relating to the oath and bond of the guardian before a sale

shall be applicable to sales under the provisions of this sec-
tion, and all other provisions of this chapter, except where
plainly inapplicable, shall be applicable to sales under this
section.

This act is ordered to take immediate effect.
Approved June 16, 1905.

firm sale.

[No. 264.]

AN ACT to authorize under certain conditions and restric

tions the use of public streets, allers and highways by persons, firms or corporations engaged in the manufacture, transmission and distribution of electricity for lighting, heating and power purposes.

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