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same effect as though this Act had not been passed. Any investigation, hearing or proceeding, instituted or conducted by the Board of Railroad and Warehouse Commissioners prior to the taking effect of this Act may be conducted and continued to a final determination by the Public Utilities Commission with the same effect as if this Act had not been passed.

All findings, orders, decisions, rules and regulations issued or promulgated by the Board of Railroad and Warehouse Commissioners under the Acts established or conferring power on said board, shall continue in force and have the same effect as though this Act had not been passed; and the State Public Utilities Commission hereby created is empowered to enforce said findings, orders, decisions, rules and regulations in the same manner and under the same conditions as though said findings, orders, decisions, rules and regulations had been made, issued or promulgated by the State Public Utilities Commission.

NOTE. See Illinois Central R. Co. et al. v. Bloomington etc. R. Co., IV I. P. U. C. 105; State Public Utilities Comm. ex rel Atwood-Davis Sand Co. v. Chicago, & Northwestern Ry. Co. 286 Ill. 53; State Public Utilities Comm. ex rel. Farmer's Illinois Grain Dealers Ass'n. et al. v. Atchison, T. & St. Fe Ry. Co., 278 Ill. 58.

83. Constitutionality-Divisability of Act.

§ 83. If any section, subdivision, sentence or clause of this Act is for any reason held invalid or to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Act.

84. Act Not Applicable to Interstate Commerce.

§ 84. Neither this Act nor any provision thereof shall apply or be construed to apply to commerce with foreign nations or commerce among the several states of this Union, except when specifically so stated, and in so far as the same may be permitted under the provisions of the Constitution of the United States and Acts of Congress, and the decisions of the Supreme Court of the United States.

85. Technical Omissions Not to Invalidate Acts of Commission.

§ 85. A substantial compliance with the requirements of this Act shall be sufficient to give effect to all the acts, orders, decisions, rules and regulations of the Commission, and they shall not be declared inoperative, illegal or void for any omission of a technical nature in respect thereto.

86. Effective Date of Act.

§ 86. This Act shall take effect and be in force on and after the first day of January, 1914.

APPROVED June 30, 1913.

II. CITIES EMPOWERED TO ACQUIRE, CONSTRUCT, OWN, LEASE OR OPERATE.

AN ACT entitled, "An Act to authorize cities to acquire, construct, own and to lease or operate public utilities and to provide the means therefor." [Approved June 26, 1913; in force July 1, 1913.] (Hurd's Revised Statutes, 1917, Ch. IIIa, Secs. 87-101.)

87. City Power to Acquire, Construct or Operate Any Public Utility.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any city in this State shall have the

power, subject to the provisions of this Act, to acquire, construct, own and operate any public utility the product or service of which, or a major portion thereof, is or is to be supplied to the city or its inhabitants and to contract for, purchase and sell to private persons or corporations the product or service of such utilities; to lease any public utility owned by the city to any corporation organized under the laws of this State for the purpose of operating such public utility, for a period not longer than twenty years; to fix the rates and charges for the services rendered by such public utilities, and to make all needful rules and regulations in relation thereto.

NOTE. See the following cases decided under the Mueller Law. Lobdell v City of Chicago 227 Ill. 218; Vernner v. Chicago City R. Co. 236 Ill. 349, writ of error dismissed 218 U. S. 699, and Barscloux v. City of Chicago 245 Ill. 589, 19 A. & E. A. C. 255.

88. Term "Public Utility" Defined.

§ 2. The term "public utility," when used in this Act, means and includes any plant, equipment or property, and any franchise, license or permit, used or to be used for or in connection with the transportation of persons or property or the conveyance of telegraph or telephone messages; or for the production, storage, transmission, sale, delivery, or furnishing of cold, heat, light, power, water, or for the conveyance of oil or gas by pipe line; or for the storage or warehousing of goods; or for the conduct of the business of wharfinger. (As amended by Act of June 22, 1915.) 89. Must Pass Ordinance to Acquire Public Utility-Referendum.

§ 3. No city shall proceed to acquire or construct any public utility under the provisions of this Act until an ordinance of the city council providing therefor has been duly passed and submitted to the electors of such city and approved by a majority of those voting thereon. Such ordinance shall set forth the action proposed, shall describe the plant, equipment and property proposed to be acquired or constructed, and shall provide for the issue of bonds, mortgage certificates or special assessment bonds, as hereinafter authorized.

90. Proposition to Operate Must be Submitted to Electors—Electricity and Water Plants-Proceedings Legalized.

§ 4. No city shall itself proceed to operate any such public utility for the use or benefit of private consumers or users for hire or charge for such consumption or use, unless the proposition to operate shall first have been submitted to the electors of the city as a separate proposition and approved by a majority of those voting thereon; but any city may, without such submission and approval, sell electricity for heat, light or power within or without the limits of the city, generated from any electric lighting plant owned and operated by the city for the city's own use, and may without such submission and approval sell water within and without the city from any water plant owned and operated by the city: Provided, that the act of any city or village which has heretofore constructed, maintained, operated, controlled or leased any public utility and furnished and sold the product or service thereof for private use is hereby declared to be legal and valid, anything in any law of the State to the contrary notwithstanding. 91. Ordinance for Public Utility.

§ 5. No ordinance authorizing the lease of any public utility owned by a city for a longer period than five years, nor any ordinance renewing any such lease shall go into effect until the expiration of sixty days from and after its passage. If, within such sixty days, there is filed with the city clerk of such city a petition signed by qualified electors of the city equal to five per cent of the votes cast at the last preceding municipal election for mayor in such city, asking that such ordinance be submitted to popular vote, then such ordinance shall not go into effect unless the question of the adoption of such ordinance shall first be submitted to the electors of such city and approved by a majority of those voting thereon.

92.

Reservation to Take Over Rights in Grant.

§ 6. It shall be lawful for any city to incorporate in any franchise, license or permit to a public utility company reservation of the right on the part of the city to take over all or any part of the property, plant, or equipment used in the operation of such public utility, at or before the expiration of such grant, upon such terms and conditions as may be provided in the grant, and it shall also be lawful to provide in any such grant that in case such reserved right be not exercised by the city, and it shall grant the right to another person or corporation to operate such utility in the streets and parts of streets occupied by its grantee under the former grant, the new grantee shall purchase and take over the property located in such streets and parts of streets upon the terms which the city might have taken it over.

93. Power to Acquire by Agreement or Condemnation.

§ 7. Any city shall have the power to acquire any public utility or any part thereof, authorized or operating in such city under a license, permit or franchise or operating in such city without any license, permit or franchise, by an agreement with such public utility or may proceed to procure the condemnation of the same in the manner provided by law for the taking and condemning of private property for public use.

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§ 8. For the purpose of acquiring any such public utility or the property necessary or appropriate for the operation thereof or any part thereof, either by purchase, condemnation or construction, any city may borrow money and issue negotiable bonds therefor, pledging the faith and credit of the city, but no such bonds shall be issued unless the proposition to issue the same shall first have been submitted to the electors of such city and approved by a majority of those voting thereon, nor in an amount in excess of the cost to the city of the property for which said bonds are issued and 10 per cent of such cost in addition thereto.

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§ 9. For the purpose of acquiring any such public utility or the property necessary or appropriate for the operation thereof, or any part thereof, either by purchase, condemnation or construction, any city may issue and dispose of interest bearing certificates, hereinafter called public utility certificates, which shall, under no circumstances, be or become an obligation or liability of the city or payable out of any general fund thereof, but shall be payable solely out of the revenues or income to be derived from the public utility property for the acquisition of which they were issued. Such certificates shall not be issued and secured on any public utility property in an amount in excess of the cost to the city of such property as herein before provided and ten (10) per cent of such cost in addition thereto. In order to secure the payment of any such public utility certificates and the interest thereon, the city may convey, by way of mortgage, or deed of trust, any or all of the public utility property acquired or to be acquired through the issue thereof; which mortgage or deed of trust shall be executed in such manner as may be directed by law for the acknowledgment and recording of mortgages of real estate and may contain such provisions and conditions not in conflict with the provisions of this Act as may be deemed necessary to secure the payment of the public utility certificates described therein. Any such mortgage or deed of trust may carry the grant of a privilege or right to maintain and operate the public utility property covered thereby, for a period not exceeding twenty (20) years from and after the date such property may come into the possession of any person or corporation as the result of foreclosure proceedings; which privilege or right may fix the rates or charges which the person or corporation securing the same as the result of foreclosure proceedings shall be entitled to charge in the operation of said property for a period not exceeding twenty (20) years. Whenever and as often as default shall be made in the payment of any public utility certificates issued and secured by a mortgage or deed of trust, as aforesaid, or

in the payment of the interest thereon when due, and any such default shall have continued for the space of twelve (12) months after notice thereof has been given to the mayor and comptroller, it shall be lawful for any such mortgagee or trustee, upon the request of the holder or holders of a majority in amount of the certificate issued and outstanding under such mortgage or deed of trust, to declare the whole of the principal of all such certificates as may be outstanding, to be at once due and payable and to proceed to foreclose such mortgage or deed of trust in any court of competent jurisdiction. At a foreclosure sale, the mortgagee or the holders of such certificates may become the purchaser or purchasers of the property and the rights and privileges sold, if he or they be the highest bidders. Any public utilities acquired under any such foreclosure shall be subject to regulation by the corporate authorities of the city to the same extent as if the right to construct, maintain and operate such property had been acquired through a direct grant without the intervention of foreclosure proceedings: Provided, however, that no public utility certificates shall ever be issued by any city under the provisions of this Act unless and until the question of the adoption of the ordinance of the city council authorizing the issue thereof shall first have been submitted to the electors of such city and approved by a majority of the qualified voters of the city voting upon such question. The question shall be submitted in such form as the city council may by ordinance designate.

96. Expenses of Acquiring Public Utilities-Special Assessments.

§ 10. The expense of acquiring any such public utility, or the property necessary or appropriate for the operation thereof, or any part thereof, either by purchase, condemnation or construction, or such part of the expense as may be just and reasonable, may in any city be assessed upon and collected from the property and real estate specially benefited thereby, if any, in such manner as is or may be provided by law for the making of special assessments for local improvements in such city.

97. Reclamation of Land Submerged Under Public Waters-Exception as to Park Board.

§ 11. For the purpose of acquiring or constructing wharves, piers, docks, levees or in connection with such wharves, piers, docks or levees, elevators, warehouses, vaults or necessary and appropriate tracks or terminal facilities, any city may reclaim the submerged lands under any public waters within the jurisdiction of or bordering upon the city, and shall thereupon be vested with the absolute title, in fee simple, to the lands so reclaimed; and for any of the purposes aforesaid the city may acquire, by purchase, condemnation or otherwise, the title of the private or public owners, if any there be, to lands lying beneath such public waters and also the riparian or other rights, if any there be, of the owners of the shore lands abutting on such public waters in or over such public waters or the submerged lands under such waters. Nothing herein contained shall give to any city the right to acquire submerged lands as against any park board where any grant has heretofore been made of such submerged lands to any such park board and been acted upon by such board.

98. Charges for Service.

§ 12. The charges fixed for the service rendered by it by means of any such public utility by any city shall be high enough to produce a revenue sufficient to bear all cost of maintenance and operation and to meet interest charges on bonds and certificates issued on account thereof, and to permit the accumulation of a surplus or sinking fund that shall be sufficient to meet all outstanding bonds or certificates at maturity.

99. Accounts, How Kept-Annual Report-Accounts Examined by Expert.

§ 13. Any city, when owning such public utility, shall keep the accounts for such public utility distinct from other city accounts and in such manner as to show the true and complete financial results of such city ownership or ownerships and operation, as the case may be. Such accounts shall be so

kept as to show the actual cost to such city of the public utility owned; all costs of maintenance, extension and improvement; all operating expenses of every description, in case of such city operation; the amounts set aside for sinking fund purposes; if water or other service shall be furnished for the use of such public utility without charge; the accounts shall show, as nearly as possible, the value of such service, and also the value of such similar service rendered by the public utility to any other city department without charge; such accounts shall also show reasonable allowance for interest, depreciation and insurance, and also estimates the amount of taxes that would be chargeable against such property if owned by a private corporation. The city council shall cause to be printed annually for public distribution a report showing the financial results, in form as aforesaid, of such city ownership or ownership and operation. The accounts of such public utility, kept as aforesaid shall be examined once each year by an expert accountant who shall report to the city council the results of his examination. Such expert accountant shall be selected in such manner as the city council may direct and he shall receive for his services such compensation, to be paid out of the income or revenues from such public utility, as the city may prescribe.

100. Construction of Act.

§ 14. This Act shall be deemed and construed to confer powers in addition to but not limiting those now existing.

101. Word "City" Defined.

$ 15. Whenever the word "city" is used in this Act it shall be construed to include a city, a village, or an incorporated town.

RAILROADS AND OTHER CARRIERS.

III. INCORPORATION OF RAILROAD COMPANIES.

AN ACT to provide for the incorporation of associations that may be organized for the purpose of constructing railways, maintaining and operating the same; for prescribing and defining the duties and limiting the powers of such corporations when so organized; and authorizing the same and all railroad companies of this State to own and hold the stock and securities of railroad companies of other states owning connecting lines. [As amended by Act approved June 2, 1891. In force July 1, 1891. L. 1891, p. 184; Legal News Ed., p. 124.] (Hurd's Revised Statutes, 1917, Ch. 114, Secs. 1-29.)

102. Corporators.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any number of persons, not less than five may become an incorporated company for the purpose of constructing and operating any railroad in this State, and that any and all railroads or transportation companies authorized to be incorporated and transact business in this State by virtue of this Act, shall be and they are hereby authorized and empowered to purchase, own, operate and maintain any railroad sold or transferred under order or powers of sale or decree of, or sale under foreclosure of mortgage or deed of trust, and corporations heretofore organized under the provisions of the Act hereby amended, their successors or assigns, shall have and possess all the powers and privileges conferred by this Act. [As amended by Act approved May 11, 1877. In force July 1, 1877. L. 1877, p. 163; Legal News Ed., p. 150.]

NOTE.-See Wilder v. Aurora, D. K. & R. Elec. Trac. Co., 216 Ill. 493; Chicago & S. Trac. Co. v. Flaherty 222 Ill 67; David Bradley Mfg. Co. v. Chicago & S. Trac. Co. 229 Ill. 170; Schlander v. Chicago & S. Trac. Co. 253 Ill. 154 revg. 160 Ill. app. 309; Liebermon v. Chicago & S. S. Rapid Transit R. Co., 141 Ill. 140; Brown v. Melick 185 Ill. app. 3; etc.

103. Articles of Incorporation-Record of Same.

§ 2. Such persons shall organize by adopting and signing articles of incorporation, which shall be recorded in the office of the recorder of deeds

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