Act; nor shall it be held or construed to imply any validation or approval by the State of past issues, nor that past or future or past and future issues represent actual value of property owned or to be owned by a public utility or the value of such property owned or to be owned by a public utility or the value of such property for rate-making purposes.

NOTE.-Re Illinois Northern Utilities Co. et al., III I. P. U. C. 107, P. U. R. 1917-A 816 where the Commission required a consolidated utility issuing securities not in excess of the total par value of those of the constituent companies to recite in such securities that the authorization did not amount to a finding of value. 27. Intercorporate Relations-Approval of Contracts and Leases.

§ 27. obtained:

Unless the consent and approval of the Commission is first

(a) No two or more public utilities may enter into contracts with each other that will enable such public utilities to operate their lines or plants in connection with each other;

(b) No public utility may purchase, lease, or in any other manner acquire, control, direct or indirect, over the franchises, licenses, permits plants, equipment, business, or other property of any other public utility;

(c) No public utility may assign, transfer, lease, mortgage, sell, or otherwise dispose of or encumber the whole or any part of its franchises, licenses, permits, plant equipment, business, or other property; but this shall not be construed to prevent the sale, lease, assignment or transfer by any public utility of any tangible personal property which is not necessary or useful in the performance of its duties to the public;

(d) No public utility may by any means, direct or indirect, merge or consolidate its franchises, licenses, permits, plants, equipment, business, or other property with that of any other public utility;

(e) No public utility may purchase, acquire take or receive any stock, stock certificates, bonds, notes or other evidences of indebtedness of any other public utility. But with the consent and approval of the Commission, a public utility may purchase, acquire, take, or hold stock, stock certificates, bonds, notes or other evidences of indebtedness of another public utility.

The proceedings for obtaining the authorization of the Commission provided for in this section shall be as follows: There shall be filed with the Commission a petition, joint or otherwise, as the case may be, signed and verified by the president and secretary of the respective companies, or by the person or company, as the case may be, clearly setting forth the object and purposes desired, and setting forth the full and complete terms of the proposed assignment, transfer, lease, mortgage purchase, sale, merger, consolidation, contract or other transaction, as the case may be. Upon the filing of such petition, the Commission shall, if it deems necessary, fix a time and place for the hearing thereon. After such hearing, or in case no hearing is required, if the Commission is satisfied that such petition should reasonably be granted, and that the public will be convenienced thereby, the Commission shall make such order in the premises as it may deem proper and as the circumstances may require, attaching such conditions as it may deem proper, and thereupon it shall be lawful to do the things provided for in such order.

The Commission shall impose such conditions as will protect the interests of minority and preferred stockholders.

Every assignment, transfer, lease, mortgage, sale, or other disposition or encumbrance of the whole or any part of the franchises, licenses, permits, plant, equipment, business or other property of any public utility, or any merger or consolidation thereof, and every contract, purchase or stock, or other transaction referred to in this section, made otherwise than in accordance with an order of the Commission authorizing the same, except as provided in this section shall be void.

NOTE.-The Commission has jurisdiction over all intercorporate contracts between utilities. Re Quincy Gas, Elec. & H. Co. et al., III I. P. U. C. 98.

See also Western Illinois Teleph. Co. et al., V I. P. U. C. 1; Stark County Power Co. et al., V. I. P. U. C. 63, P. U. R. 1918-A 224; Public Utilities Comm. v. Xenia Elec. L. Co., V I. P. U. C. 547.

Section 27 of the Act is not in violation of section 22 of Act IV of the State constitution. State Public Utilities Comm. ex rel. Klaw et al. v. Romberg 275 Ill.

432.

As to the exercise of the Commission's jurisdiction over leases see Re Chicago Telegh. Co., II I. P. U. C. 676 abstracted, P. U. R. 1915-A 596; Re Sidel & Olney R. Co., III I. P. U. C., 625 abstracted; etc.

As to the exercise of the Commission's jurisdiction over the purchase and sale of utilities see Re Public Service Co. of N. Illinois et al., II I. P. U. C. 120, P. U. R. 1915-B 353; Re Receivers Central Union Teleph. Co. et al., III I. P. U. C. 127; Re Tyrone Elec. Co. et al., III I. P. U. C. 140, P. U. R. 1916-E 708; Re Coon Bros. Teleph. Co. et al., V I. P. U. C. 302; etc.

A telephone company, under this section of the Act, has no right, unless the consent of the Commission is first obtained, to disconnect the lines of another company from the lines of a third company and connect them with its own, even though the second had never merged with the third company but had in fact, maintained a separate and distinct organization of its own and had never parted with the ownership of its lines and equipment. Thompson v. Pearl City Ind. Teleph. Co., II I. P. U. C. 85, P. U. R. 1915-B 950.

28. Transfer of Franchise or License-Foreign Corporations-Application of Law to.

§ 28. No franchise, license, permit or right to own, operate, manage or control any public utility, except common carriers engaged in interstate commerce and except telegraph or telephone companies engaged in interstate commerce, shall be hereafter granted or transferred to any grantee or transferee other than a corporation duly incorporated under the laws of this State.

No public utility shall be in any manner exempt from the provisions of this Act because or by virtue of the fact that it may be or may have been incorporated or organized under the laws of another state, or of the United States, or of a foreign country. (As amended June 26, 1917.)

432.

NOTE. State Public Utilities Comm. ex rel. Klaw et al. v. Romberg 275 Ill. 29. Transfer of Franchises-Approval of.

§ 29. No franchise, license, permit or right to own, operate, manage or control any public utility shall be assigned, transferred or leased nor shall any contract or agreement with reference to or affecting any such franchise, license, permit or right be valid or of any force or effect whatsoever, unless such assignment, lease, contract or agreement shall have been approved by the Commission. Such permission. shall not be construed to revive or validate any lapsed or invalid franchise, license, permit or right, or to enlarge or add to the powers and privileges contained in the grant of any franchise, license, permit or right, or to waive any forfeiture.

NOTE. The asignment of a franchise by one telephone company to another without the consent and approval of the Commission as provided by this session

does not carry with it any right to install, operate or maintain a telephone exchange by the assignee. Pitcher Teleph. CO. v. Steele Teleph. Co., II I. P. U. C. 112, P. U. R. 1915-B 654.

30. Valuation of Utility Property.

§ 30. The Commission shall have power to ascertain the value of the property of every public utility in this State and every fact which in its judgment may or does have any bearing on such value. In making such valuation the Commission may avail itself of any information, books, documents, or records in the possession of any officer, department or board of the State or any subdivision thereof. The Commission shall have power to make revaluation from time to time and also to ascertain the value of all new construction, extensions, and additions to the property of every public utility.

VALUATION IN GENERAL.

Lake Forest v. Lake Forest Water Co., II I. P. U. C. 570, P. U. R. 1915-D 1008; City of Belleville v. St. Clair County Gas & Elec. Co., II I. P. U. C. 346, P. U. R. 1915-F 235, P. U. R. 1915-F 783, P. U. R. 1916-B 24; City of Springfield v. Springfield Gas & Elec. Co., III I. P. U. C. 324, P. U. R. 1916-C 281; Re De Kalb County Teleph. Co., III I. P. U. C. 432; Re Bucher, III I. P. U. C. 449, P. U. R. 1916-F 501; Woll v. Hullinger, III I. P. U. C. 463, P. U. R. 1916-D 380; City of Lincoln v. Lincoln Water & Light Co., IV I. P. U. C. 574, P. U. R. 1917-B 1; Re Chicago North Shore & M. R. Co., IV I. P. U. C. 717, P. U. R. 1918-A 388; City of Pekin v. Pekin Water Works Co., ÍV I. P. U. C. 784, P. U. R. 1917-C 838; Piercy v. Citizens' Gas, Elec, & H. Co., V Í. P. U. C. 340; City of Peoria v. Central Union Teleph. Co., V I. P. U. C. 505, P. U. R. 1918-E 74; etc.

The Commission may give a higher value to the property of a utility than that fixed by the utility company itself. Re Oblong Gas Co., III I. P. U. C. 401, P. U. R. 1915-A 598.

31. Fees for Issuance of Stocks and Bonds.

§ 31. The Commission shall charge every public utility receiving permission under this Act for the issue of bonds, notes and other evidences of indebtedness an amount equal to ten cents for every hundred dollars of such securities authorized by the Commission, and the same shall be paid into the State treasury before any such securities shall be issued. Provided that no public utility shall be required to pay any fee for permission granted to it by any such commission in any of the following cases:

(1) To guarantee bonds or other securities.

(2) To issue bonds, notes or other evidences of indebtedness issued for the purpose of converting, exchanging, taking over, refunding, discharging or retiring any bonds, notes or other evidences of indebtedness except:

(a) When issued for an aggregate period of longer than two years for the purpose of converting, exchanging, taking over, refunding, discharging or retiring any note, or renewals thereof, issued without the consent of such State Public Utilities Commission of Illinois or such Public Utilities Commission.

(b) When issued for the purpose of converting, exchanging, taking over, refunding, discharging or retiring bonds, notes or other evidences of indebtedness issued prior to January 1, 1914, and upon which no fee has been previously paid. (As amended June 29, 1917.)

NOTE. Provisions of this section applied in Re Chicago Great Western R. Co., II I. P. U. C. 598, P. U. R. 1915-A 800; Re Peoria Ry., II I. P. U. C. 604, P. U. R. 1915-A 804; etc.

ARTICLE IV.

RATES AND SERVICE ACCIDENTS.

32. General Duties of Public Utilities.

§ 32. All rates or other charges made, demanded or received by any public utility, or by any two or more public utilities, for any product or commodity furnished or to be furnished or for any service rendered or to be rendered shall be just and reasonable. Every unjust or unreasonable charge made, demanded or received for such product or commodity or service is hereby prohibited and declared unlawful.

Every public utility shall furnish, provide and maintain such service, instrumentalities, equipment and facilities as shall promote the safety, health, comfort and convenience of its patrons, employees, and the public and as shall be in all respects adequate, efficient, just and reasonable.

All rules and regulations made by a public utility affecting or pertaining to its charges or service to the public shall be just and reasonable.

NOTE.-See General Order No. 30, IV I. P. U. C. 10; Western Union Teleg. Co. v. Chicago Teleph. Co. et al., IV I. P. U.. C. 92; Cook v. Public Service Co. of N. Illinois, IV I. P. U. C. 321, P. U. R. 1917-E 53; Village of Palestine v. Oblong Gas Co., V I. P. U. C. 10. Conference Rule No. 13.

New York Central R. Co. v. Stevenson 277 Ill. 474 holds that this section repeals by implication so far as public utility corporations are concerned, the former statutory provisions for the payment of fees for issuance of or for increasing the capital stock of corporations; that under the provisions of the Public Utilities Act the fees for issuing capital stock of public utilities should be paid to the Commission and not to the Secretary of State.

See also State Public Utilities Comm. v. Chicago, M. & St. P. Ry. Co., 287 Ill. 412, 417.

RATES, IN GENERAL.

The Commission by issuing an order requiring a utility to file a rate schedule does not in any way fix the rates to be charged by the company even though such order is preliminary to an order fixing rates. State Public Utilities Comm. v. Monarch Refrigerating Co., 267 Ill. 528.

The Commission has power to regulate rates for transportation between two points within the State which is purely local in character, although the carrier may perform similar services with respect to interstate transportation. Chicago M. & St. P. R. Co. v. State Public Utilities Comm., 268 Ill. 49.

It is not the general policy of the Commission to inquire, on its own initiative, into the reasonableness of a contract for service between municipalities and utilities entered into prior to the taking effect of the Public Utilities Act. Re Tampico Farmers' Mut. Teleph. Co., II I. P. U. C. 740, P. U. R. 1915-A 24.

Upon the application of a telephone company for permission to change its rates to eliminate discrimination in favor of stockholders, and to increase its revenue, the Commission will not consider the effect of the proposed charge upon the revenues of a competing company. Re Calhoun Farmers' Co-op. Teleph. Co. II I. P. U. C. 508, P. U. R. 1915-C 93.

A retroactive reduction in rates cannot be made without an order of the Commission. Re Central Illinois Public Service Co., III I. P. U. C. 295, P. U. R. 1916-B 922.

Electric rates cannot be shown to be excessive merely by comparison with rates in another village having three times the population and nine times the consumption and revenue. McClanahan v. Tri-County L. & P. Co., III I. P. U. C. 477, P. U. R. 1916-D 187.

The Commission ordered a reduction in electric rates although the company was not making a fair return, where it appeared that increased consumption would follow such a reduction. Woll v. Hullinger III I. P. U. C. 463, P. U. R. 1916-D 380. Rates increased before the effective date of the Public Utilities Act may be filed after that date without the consent of the Commission. State Public Utilities Comm, ex rel. Mitchell v. Chicago & W. T. R. Co., 275 Ill. 555.

A rate fixed by the Commission after a hearing must be based upon the evidence_presented to the Commission. State Public Utilities Comm. v. Atchison T. S. Fe. R. Co., 279 Ill. 194.

On a complaint against the reasonableness of rates increased before but filed after the effective date of the Public Utilities Act the Commission is without power to order a return to the old fares pending a determination of the reasonableness of the new. State Public Utilities Comm. ex rel Mitchell v. Chicago & W. T. R.

Co., 275 Ill. 555

The Commission has no power to suspend rates before the hearing and taking of evidence where they had been duly filed with the Railroad and Warehouse Com

mission and were lower than the maximum prescribed by law State Public Utili ties Comm. v. Atchison T. & St. Fe. R. Co., 279 Ill. 194.

The Commission may require the establishment of joint freight rates between any two points in the State although the services rendered by the intermediate and delivering carriers are wholly within the switching district of a city, where it appears that the movement in some instances may be nearly as great as that covered by a line haul. State Public Utilities Comm. ex rel. Am. Sand Co. v. Chicago & Northwestern Ry. Co., 279 Ill. 110.

The Maximum Fare Law does not prevent the Commission from fixing a rate less than two cents a mile for a company organized under the Railroad Act. State Public Utilities Comm. ex rel. Mitchell v. Chicago & W. T. Ry. Co., 275 Ill. 555.

The Public Utilities Act is not unconstitutional in granting the Commission power to fix street railway fares. State Public Utilities Comm. ex rel. Mitchell v. Chicago & W. T. Ry. Co., 275 Ill. 555.

The provisions of the Public Utilities Act requiring a hearing before rates can be increased are not applicable to the first rate schedule filed by a utility. Danvers Teleph. Co. v. Carlock Farmers' Teleph. Co. V I. P. U. C. 16, P. U. R. 1918-A 235.

SERVICE, IN GENERAL.

The Commission has power to require a railroad to construct and maintain a depot in any town or village of 200 or more inhabitants. State Public Utilities Comm. ex rel. Beck v. Toledo. St. L. & W. R. Co., 267 Ill. 93.

The Commission has authority to permit a utility to discontinue service. Central Ill. Public Service Co., III I. P. U. C. 93, P. U. R. 1916-B 920; etc.

Re

The Commission has no power to require an electric consumer to repair or maintain his service line connecting with a transmission line. Abbott L. & P. Co. v. Parks, III I P. U. C. 96, P. U. R. 1916-D 1093.

The Public Utilities Act is not unconsitiutional in that it grants the Commission power to regulate street car service within a municipality. Chicago V. O'Connell et al. 278 Ill. 591.

The Commission has no power to regulate the practice of passengers boarding street cars in dirty working clothing and without washing their hands or faces. State Public Utilities Comm. v. Centralia Trac. Co., IV I. P. U. C. 154, P. U. R. 1917-F 806.

ACCIDENTS, IN GENERAL.

State Public Utilities Comm. v. Chicago M. Elec. R. Co., III I. P. U. C. 254; State Public Utilities Comm. v. Illinois Midland Ry. Co., III I. P. U. C. 253; etc. 33. Filing Schedule of Rates.

§ 33. Every public utility shall file with the Commission and shall print and keep open to public inspection schedules showing all rates and other charges, and classifications, which are in force at the time for any product or commodity furnished or to be furnished by it, or for any service performed by it, or for any service in connection therewith, or performed by any public utility controlled or operated by it. Every public utility shall file with and as a part of such schedule and shall state separately all rules, regulations, terminal, icing, storage or other charges, privileges and contracts that in any manner affect the rates charged or to be charged for any service. Such schedule shall be filed for all services performed wholly or partly within this State, and the rates and other charges and classifications shall not, without the consent of the Commission, exceed those in effect on July 1, 1913. But nothing in this section shall prevent the Commission from approving or fixing rates or other charges or classifications from time to time, in excess of or less than those shown by said schedules.

Where a schedule of joint rates or other charges, or classifications is or may be in force between two or more public utilities such schedules shall in like manner be printed and filed with the Commission, and so much thereof as the Commission shall deem necessary for the use of the public shall be filed in every station or office of such public utility in accordance with the terms of section 34 of this Act. Unless otherwise ordered by the Commission a schedule showing such joint rates or other charges, or classification need not be filed with the Commission by more than one of the parties to it: Provided, that there is also filed with the