ILLINOIS PUBLIC UTILITIES COMMISSION LAW ACT OF 1913 Amended 1915 and 1917 [Printed by authority of the State of Illinois.] ILLINOIS PUBLIC UTILITIES COMMISSION LAW ACT OF 1913 Amended 1915 and 1917 [Printed by authority of the State of Illinois.] SPRINGFIELD, ILLINOIS STATE JOURNAL ILL. CO., 1919 27520—1500 STATE PRINTERS. 380.2 Ib6 1917 cop.3 CONTENTS. ARTICLE I. GENERAL PROVISIONS. Section. 1. 2. 3. 4. 5. 6. 7. 8. Public Utilities Commission—Appointment—Term—Quorum. Secretary and Counsel. Additional officers and employees. Oath of office—Qualifications—Bond, etc. Salaries and expenses. Office of the Commission—Meetings—Seal, etc. Fees to be charged by Commission. Supervision of utilities—Rules and regulations—Records— Report of Commission. 9. Utilities to comply with requests and obey orders of Commission. 10. Definitions. AETICLE II. REPORTS AND ACCOUNTS. 11. Accounts—Uniform System of. 12. Other than public utility business. 13. Forms of accounts. 14. Depreciation accounts. 15. Audit and inspection. 16. Accounts to be kept within State. 17. Falsification or destruction of accounts. 18. Penalty for divulging information. 19. Reports by public utilities—Penalties for failure to report or false report. AETICLE III. STOCKS 20. 21. 22. 23. 24. 25. 26. 27. AND BONDS—CAPITALIZATION—INTERCORPORATE FRANCHISES—VALUATION. RELATIONS— Eight to issue stocks, bonds, etc. Approval of Securities Issues—Application of proceeds—Indebtedness for a year or less—Franchises not to be capitalized. Consolidations and reorganizations—Capitalization. Securities unlawfully issued. Penalty for unlawfully issuing securities. Penalty for false statement, etc. No guarantee of utilities securities by State. Intercorporate relations—Approval of Contracts and Leases. Section. 28. Transfer of Franchise or License—Foreign Corporations— Application of law to. 29. Transfer of franchises—Approval of. 30. Valuation of Utility Property. 31. Fees for issuance of stocks and bonds. ARTICLE IV. RATES AND S E R V I C E — A C C I D E N T S . 32. General duties of public utilities. 33. Filing schedules of rates. 34. Publication and posting of schedules. 35. No service to be rendered until schedules filed. 36. Changes of rates—Hearings. 37. Charging more or less than published rate. 38. Discrimination forbidden. 39. Discrimination—Rebates—Free transportation—Exchange of transportation for advertising—Prior transfer of real estate. 40. Long and short haul, etc.—Common carriers, telephones, telegraph, etc. 41. Commission to fix rates and regulations. 42. Control over joint rates—Hearings. 43. Interstate rates. 44. Interchange of traffic or service—Joint rates. 45. Sidetrack connections—Jurisdiction over. 46. Tracks—Physical connections. 47. Telephone and telegraph—Physical connections. 48. Joint use of facilities. 49. Facilities, etc.—Power of Commission to require adequate facilities. 50. Additions and new structures—Joint construction. 51. Adequacy of railroad service—Hearings. 52. Distribution of cars-Expediting traffic—Demurrage—Storage —Switching—Delivery of express—Weights. 53. Conditions in contracts for service—Forms of express receipts. 54. Standards of service. 55. Certificate of convenience and necessity. 56. Report and investigation of accidents. 57. Safety of plant, appliances, etc.—Railroad track, etc. 58. Grade crossings—Construction—Reconstruction—Protection, etc. 59. Eminent domain. ARTICLE V. PROCEEDINGS BEFORE T H E COMMISSION AND I N T H E COURTS. 60. Investigations and hearings. 61. Testimony—Immunity of witnesses. 62. Attendance of witnesses—Production of papers. 5 Section. 63. Right to inspect books and property and examine agents of public utilities. 64. Complaints—Notice. 65. Hearings—Orders—Records—Copies of official documents and orders. 66. Service of orders. 67. Modification of order or decision—Rehearing. 68. Action to set aside orders of Commission. 69. Appeals to Supreme Court from Circuit Court Judgments. 70. Expedition of cases. 71. Suspension of order of Commission pending judicial review. l 72. Reparation for overcharge—Investigation of claims against utilities. 73. Civil damages. 74. Remedies cumulative. 75. Mandamus or injunction proceedings at instance of Commission. 76. Penalty for violation of Act or orders by public utility or other corporation—Separate offenses. 77. Persons violating Act or order—Penalty. 78. Actions to recover penalties. 79. Duty of Commission to prosecute, and to enforce laws affecting public utilities. 80. Cancellation of warehouse licenses. ARTICLE VI. REPEAL—SAVING 81. 82. 83. 84. 85. 86. CLAUSE—CONSTRUCTION". Acts repealed; transfer and continuation of powers of R. R. Commission. Actions and proceedings pending before R. R. Commission. Constitutionality—Divisibility of Act. Act not applicable to interstate commerce. Technical omissions not to invalidate acts of Commission. Effective date of Act. 7 PUBLIC UTILITIES COMMISSION LAW. AN ACT to provide for the regulation of public utilities. Approved June 30; 1913 In force January 1, 1914. (L. 1913, p. 459. Hurd's Revised Statutes 1917, Ch. I l l a., Secs. 1-86.) ARTICLE I. ORGANIZATION AND P O W E R S OF T H E COMMISSION. 1. Public Utilities Commission—Appointment—Term—Quorum. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That there is hereby created a State Public Utilities Commission consisting of five members. Within thirty days after this Act shall take effect, the Governor shall, with the advice and consent of the Senate, appoint five persons to constitute such Commission, two to serve until the first day of March, 1915, two until the first day of March, 1916, and one until the first day of March, 1917, On or before the first days of March, 1915, 1916 and 1917, respectively, and thereafter as the term of any member expires, the Governor by and with the advice and consent of the Senate, shall appoint one or twa members of the Cpmmission, as the case may be to serve for the term of six years from and after the expiration of the term of his predecessor^ Each Commissioner shall hold office until his successor shall have been.appointed and qualified. Not more than three members of said Commission shall be affiliated with the same political party. The Governor shall from time to time designate the member of the Commission who shall be its chairman. Every vacancy in the Commission shall be filled for the unexpired portion of the term by appointment by the Governor, by and with the advice and consent of the Senate: Provided, that if any vacancy occurs during the recess of the Senate, the Governor may make a temporary appointment until the next meeting of the Senate. A majority of the Commission shall constitute a quorum to transact business; but no vacancy shall impair the right of the remaining commissioners to exercise all of the powers of the Commission; and every finding, order or decision made by a commissioner, when approved and confirmed by the Commission shall be and be deemed to be the findings order or decision of the Commission. NOTE.—The "State Public Utilities Commission" was abolished by t h e Civil Administrative Code of March 7, 1917, and the "Public Utilities Comaaission," a division of the Department of Trade and Commerce, was created and invested with the powers and duties of the former Commission. The provisions of the Code affecting this change are as follows: Jr § 56. The Department of Trade and Commerce shall have power: 8 1. To exercise through the Public Utilities Commission created by this Act all the rights powers and duties vested by law in the State Public Utilities Commission, its officers and employees. § 57. The Public Utilities Commission created by this Act shall exercise and discharge the rights, powers and duties vested by law in the State Public Utilities Commission under an Act entitled, "An Act to provide for the regulation of public utilities," approved June 30, 1913, in force January 1, 1914, or any future amendments thereto or modifications thereof. Said Act and all amendments thereto and modifications thereof, if any, shall be administered by the Public Utilities Commission created by this Act, and in its name, without any direction, supervision or control by the Director of Trade and Commerce. § 32. Whenever rights, powers and duties, which have heretofore been vested in or exercised by any officer, board, commission, institution or department, or any deputy, inspector or subordinate officer thereof, are, by this Act, transferred, either in whole or in part, to or vested in a department created by this Act, such rights, powers and duties shall be vested in, and shall be exercised by, the department to which the same are hereby transferred, and not otherwise, and every act done in the exercise of such rights, powers and duties shall have the same legal effect as if done by the former officer, board, commission, institution or department, or any deputy, inspector or subordinate officer thereof. Every person and corporation shall be subject to the same obligations and duties and shall have the same rights arising from the exercise of such rights, powers and duties as if such rights, powers and duties were exercised by the officer, board, commission, department or institution, or deputy, inspector or subordinate thereof, designated in the respective laws which are to be administered by departments created by this Act. Every person and corporation shall be subject to the same penalty or penalties, civil or criminal, for failure to perform any such obligation or duty, or for doing a prohibited act, as if such obligation or duty arose from, or such act were prohibited in, the exercise of such right, power or duty by the officer, board, commission, or institution, or deputy, inspector or subordinate thereof, designated in the respective laws which are to be administered by departments created by this Act. Every officer and employee shall, for any offense, be subject to the same penalty or penalties, civil or criminal, as are prescribed by existing law for the same offense by any officer or employee whose powers or duties devolved upon him under this Act. All books, records, papers, documents, property, real and personal, unexpended appropriations, and pending business in any way pertaining to the rights, powers and duties so transferred to or vested in a department created by this Act, shall be delivered and transferred to the department succeeding to such rights, powers and duties. § 33. Wherever reports or notices are now required to be made or given, or papers or documents furnished or served by any person to or upon any officer, board, commission, or institution, or deputy, inspector or subordinate thereof, abolished by this Act, the same shall be made, given, furnished, or served in the same manner to or upon the department upon which are devolved by this Act the rights, powers and duties now exercised or discharged by such officer, board, commission, or institution, or deputy, inspector or subordinate thereof; and every penalty .for failure so to do shall continue in effect. § 34. This Act shall not affect any act done, ratified or confirmed, or any right accrued or established, or any action or proceeding had or commenced in a civil or criminal cause, before this Act takes effect; but such actions or proceedings may be prosecuted and continued by the department having jurisdiction, under this Act of the subject matter to which such liti gation or proceeding pertains. The term of office and manner of appointment of commissioners wa;; fixed in the Civil Administrative Code as follows: § 12. Each officer whose office is created by this Act shall be appointed by the Governor, by and with the advice and consent of the Senate. In 9 any case of vacancy in such offices during the recess of the Senate, the Governor shall make a temporary appointment until the next meeting of the Senate, when he shall nominate some person to fill such office; and any person so nominated, who is confirmed by the Senate, shall hold his office during the remainder of the term and until his successor shall be appointed and qualified. If the Senate is not in session at the time this Act takes effect, the Governor shall make a temporary appointment as in case of a vacancy. § 13. Each officer whose office is created by this Act, except as otherwise specially provided for in this Act, shall hold office for a term of four years from the second Monday in January next after the election of a Governor, and until his successor is appointed and qualified. No provision is made in the Code for minority political representation on the Commission. This Act in many of its features is similar to the United States Statute creating the Interstate Commerce Commission. Farmers' Elevator Co. of Yorkville v. Chicago B. I. & P. By. Co. 266 111. 567. The Act not only confers on the State Public Utilities Commission all the powers and duties previously exercised by the Railroad and Warehouse Commission, but specifically names and includes every other kind of business of a public nature which is subject to regulation as a public utility. State Public Utilities Commission v. Monarch Befriff. Co., 267 111. 528. 2. Secretary and Counsel. § 2. The Commission shall have a secretary., to be appointed by the Commission, to hold office during its pleasure, who shall keep a record of all proceedings, transactions, communications and official acts of the Commission and perform such other duties as the Commission may prescribe. The Commission shall appoint as counsel to the Commission an attorney-at-law of the State of Illinois, who shall hold office at the pleasure of the Commission. The counsel to the Commission shall have power subject to the approval of the Commission to appoint and at pleasure remove attorneys-at-law to assist him in the performance of his duties. NOTE.—The salary of the counsel of the Commission was increased to $8,000 by an amendment of June 25, 1915. The case of Fergus et at. v. Ru&sel et-al., 270 111. 304 decided by the Supreme Court November 6, 1915, however, held that the Attorney General is the chief law officer of the State, andl the sole official advisor of the executive officers and all boards, commissions and departments of the State government, and that it is his duty to (conduct the law business of the State, both in and out of court. The offi/ce of counsel for the Commission was thus wiped out. , The office of secretary of the Public Utilities Commission is created by section 5 of the Civil Administrative Code. 3. Additional Officers and Employees. § 3. The Commission shall have power upon consultation with and the approval of the Governor, to appoint or employ such additional officers and such accountants, engineers, experts, inspectors, clerks, and employees as it may deem to be necessary to carry out the provisions of this Act or to perform the duties and exercise the powers conferred by law upon the Commission. Such appointments, others than those of attorneys, chief engineer, chief accountant, one private secretary or stenographer to each commissioner, experts temporarily employed and other positions which may be exempted by the Civil Service Commission, shall be included in the classifid civil service of the State, and shall be made subject to the provisions of an Vet entitled, " A n Act to —2 P U L 10' regulate the civil service of the State of Illinois," approved May 11, 1905, in force July 1, 1905, and Acts amendatory thereto. NOTE.—This section of the law is protected by the following provision in the Civil Administrative Code: § 24. Nothing in this Act shall be contrued to amend, modify, or repeal the State civil service law, or to excend the application thereof to any position created by this Act where the duties to be performed under such position do not now exist or are now performed by an officer or employee not in the classified civil service of the State. Every officer and employee in the classified civil service at the time this Act takes effect shall be assigned to a position in the proper department created by this Act, having, so far as possible, duties equivalent to his former office or employment, and such officers and employees shall be employees of the State in the classified civil service of the State, of the same standing, grade and privileges which they respectively had in the office, board, commission or institution from which they were transferred, subject however, to existing and future civil service laws. This section shall not be construed to require the retention of more employees than are necessary to the proper performance of the functions of the departments. 4. Oath of Office—-Qualifications—Bond, Etc. § 4. Each commissioner and each person appointed to office by the Commission, shall before entering upon the duties of his office, take and subscribe the constitutional oath of office. Each commissioner shall devote his entire time to the duties of his office, and shall hold no other office or position of profit, or engage in any other business, employment or vocation. ISFo person in the employ of or holding any official relation to any corporation or person subject in whole or in part to regulation by the Commission, and no person holding stocks or bonds in any such corporation, or who is in any other manner pecuniarily interested therein, directly or indirectly, shall be appointed to or hold the office of commissioner or be appointed or employed by the Commission; and if any stich person shall voluntarily become so interested his office or employment shall ipso facto become vacant: Provided, that if any person become^ so interested otherwise than voluntarily he shall within a reasonable tiime divest himself of such interest, and if he fails to do so his office or eimployment shall become vacant. ISTo commissioner nor person appointed or employed by the Coralmission shall solicit or accept any gift, gratuity, emolument or employment from any person or corporation subject to the supervision of the Commission, or from any officer, agent, or employee thereof; nor solicit, request from or recommend, directly or indirectly* to any such person or corporation, or to any officer, agent or employee thereof the appointment of any person to any place or position. And every such corporation and person, and every officer, agent or employee thereof, is hereby forbidden to offer to any commissioner or to any person appointed or employed by the Commission any gift, gratuity, emolument or employment. If any commissioner or any person appointed or employed by the Commission shall violate any provision of this paragraph he shall be removed from the office or employment held by him. Every person violating the provisions of this paragraph shall be guilty of a misdemeanor. 11 Before entering upon the duties of his office each commissioner shall give bond, with security to be approved by the Governor, in the sum of $20,000, conditioned for the faithful performance of his duty as such commissioner. Every person appointed or employed by the Commission, may, in the discretion of the Commission, before entering upon the duties of his office, be required to give bond for the faithful discharge of his duties, in such sum as the Commission may designate, which bond shall be approved by the Commission. NOTE.—This provision is restated in section 7 of the Civil Administrative Code as follows: No public utility commissioner or employee of the Public Utility Commission shall be in the employ of or hold any official relation to any corporation or person subject in whole or in part to regulation by the Commission nor shall he hold stocks or bonds in any such corporation or be in any other manner pecuniarily interested therein, directly or indirectly, and if any public utility commissioner or employee shall voluntarily become so interested, his office or employment shall ipso facto become vacant, and if any public utility commissioner or employee becomes so interested otherwise than voluntarily he shall, within a reasonable time, divest himself of such interest. The provision as to oath of office and bond is restated in section 15 of the Code thus: § 14. Each officer whose office is created by this Act shall, before entering upon the duties of his office, take and subscribe the constitutional oath of office, which shall be filed in the office of the Secretary of State. § 15. Each executive and administrative officer whose office is created by this Act, shall, before entering upon the discharge of the duties of his office, give bond, with security to be approved by the Governor, in such penal sum as shall be fixed by the Governor, not less in any case than ten thousand dollars, conditioned for the faithful performance of his duties, which bond shall be filed in the office of the Secretary of State. The Civil Administrative Code further provides: § 11. Each executive and administrative officer, except the two food standard officers, the members of the mining board, and the members of the normal school board shall devote his entire time to the duties of his office and shall hold no other office or position of profit. 5. Salaries and Expenses. § 5. The annual salary of each commissioner shall be ten thousand dollars. The annual salary of the secretary to the Commission shall be five thousand dollars. The annual salary of the counsel to the Commission shall be six thousand dollars. All officers, accountants, engineers, cerks inspectors, experts and employees of the Commission shall receive the compensation fixed by the Commission subject to the approval of the Governor. The commissioners and their officers, accountants, engineers, clerks, inspectors, experts and other employees, shall have reimbursed to them all actual and necessary traveling and other expenses and disbursements necessarily incurred or made by them in the discharge of their official duties. The Commission may also incur necessary expenses, for office furniture, stationery, printing and other incidental expenses. Said salaries and expenses shall be paid out of moneys appropriated for the Commission, only upon the order of the chairman of the Commission, approved by the Governor. 12 NOTE.—The Civil Administrative Code provides: § 9. The executive and administrative officers whose offices are created by this Act shall receive annual salaries, payable in equal monthly installments as follows: * * * Each public utility commissioner shall receive seven thousand dollars; The Secretary of the Public Utilities Commission shall receive four thousand dollars. Section 5 of the Act is not unconstitutional. State Public Utilities Com,' mission ex rel. Mitchell et al v. Chicago & West Towns By. Co., 275 111. 555. 6. Office of the Commission—Meetings—Seal, Etc. § 6. T h e office of the Commission shall be in the State Capitol. Such office shall be open for business between the hours of eight in the morning and five in the evening throughout the year and one or more responsible persons to be designated by the Commission or by the secretary under the direction of the Commission shall be on duty at all times in immediate charge thereof. The Commission shall hold stated meetings at least once a month at its office and may hold such special meetings as it may deem necessary at any place within the State. The Commission may, for the authentication of its records, process and proceedings, adopt, keep and use a common seal, of which seal judicial notice shall be taken in all courts of this S t a t e ; and any process, writ, notice or other paper which the said Commission may be authorized by law to issue shall be deemed sufficient if signed by the secretary of said Commission and authenticated .by such seal; and all Acts, orders, proceedings, rules entries, minutes, schedules and records of said Commission, and all reports and documents filed with said Commission, may be proved in any court of this State by a copy thereof, certified to by the secretary of said Commission, with the seal of said Commission attached. NOTE.—The provisions of the Civil Administrative Code affecting this section are as follows: § 16. The director of each department is empowered to prescribe regulations, not inconsistent with law, for the government of his department, the conduct of its employees and clerks, the distribution and performance of its business and the custody, use and preservation of the records, papers, books, documents and property pertaining thereto. § 17. Each department shall maintain a central office in the capitol building at Springfield, in rooms provided by the Secretary of State. The director of each department may, in his discretion and with the approval of the Governor, establish and maintain, at places other than the seat of government, branch offices for the conduct of any one or more functions of his department. § 18. Each department shall be open for the transaction of public business at least from eight-thirty o'clock in the morning until five o'clock in the evening of each day except Sundays and days declared by the negotiable instrument Act to be holidays. § 19. Each department shall adopt and keep an official seal. § 20, Each department is empowered to employ, subject to civil service laws in force at the time the employment is made, necessary employees, and, if the rate of compensation is not otherwise fixed by law, to fix their compensation. § 21. All employees in the several departments shall render not less than seven and one-half hours of labor each day, Saturday afternoons, Sundays and days declared by the negotiable instrument Act to be holidays 13 excepted in cases in which, in the judgment of the director, the public service will not thereby be impaired. § 22. Each employee in the several departments shall be entitled during each calendar year to fourteen days' leave of absence with full pay. In special and meritorious cases where to limit the annual leave to fourteen days in any one calendar year would work; peculiar hardship, it may, in the discretion of the director of the department, be extended. § 23. No employee in the several departments, employed at a fixed compensation, shall be paid for any extra services, unless expressly authorized by law. i 7. Fees to be Charged by Commission. § 7. The Commission shall charge and collect the following fees: For copies of papers and records not required to be certified or otherwise authenticated by the Commission, ten cents for each folio; for certified copies of evidence and proceedings before the Commission or of official documents and orders filed in its office fifteen cents for each folio, and one dollar for every certificate under seal affixed thereto; for certifying a copy of any report made by a public utility to the Commission, for each certified copy of the annual report of the Commission, one dollar. ISTo fees shall be charged or collected for copies of papers, records, or official documents furnished to any city or public officers for use in their official capacity, or for the annual reports of the Commission in the ordinary course of distribution, but the Commission may fix reasonable charges for publications issued under its authority. All fees charged and collected by the Commission shall belong to the people of the State, and shall be paid monthly, accompanied by a detailed statement thereof, into the treasury of the State to the credit of the general fund. NOTE.—See Kennedy S. Supervision of Commission. v. State Public Utilities—Rules Utilities and Commission, 286 111. 490. Regulations—Records—Reports of § 8. The Commission shall have general supervision of all public utilities, shall inquire into the management of the business thereof and shall keep itself informed as to the manner and method in which the business is conducted. I t shall examine such public utilities and keep informed as to their general condition, their franchises, capitalization, rates and other charges, and the manner in which their plants, equipments and other property owned, leased, controlled or operated are managed, conducted and operated, not only with respect to the adequacy, security and accommodation afforded by their service but also with respect to their compliance with the provisions of this Act and any other law, with the orders of the Commission and with the charter and franchise requirements. In case any public utility is engaged in carrying on any business other than that of a public utility, which other business is not otherwise subject to the jurisdiction of the Commission, such public utility in respect of such other business shall be subject to inquiry, examination and inspection by the Commission in the same manner as the public utility business in so far as such inquiry, examination and inspection may be necessary to enforce any provision of this Act. The determination of the Commission that a necessity for any regulation of non-public 14 business of a public utility exists shall be prima facie evidence of the fact in any action in a court of this State to enforce or set aside an order or ruling of the Commission. The Commission may confer in person, or by correspondence, by attending conventions, or in any other way, with the members of railroad or other public utility Commissions of other states and with the Interstate Commerce Commission on any matters relating to public utilities. The Commission shall have power to adopt reasonable and proper rules and regulations relative to the exercise of its powers, and proper rules to govern its proceedings, and to regulate the mode and manner of all investigations and hearings, and to alter and amend the same. All proceedings of the Commission and all documents and records in its possession shall be public records, except as in this Act otherwise provided. The Commission shall make an annual report to the Governor on or before the first day of December in each year, after the year 1913, which shall contain copies of all orders issued by it, and any information in the possession of the Commission which it shall deem of value to the people of the State. The Commission shall conduct a hearing and take testimony relative to any pending legislation with respect to any person, corporation or matter within its jurisdiction, if requested to do so by the General Assembly or by either branch thereof, or by a standing committee oi either branch thereof, and shall report its conclusions to the General Assembly. The Commission may also recommend the enactment of such legislation with respect to any matter within its jurisdiction as it deems wise or necessary in the public interest. The Commission shall. at such times as the Governor shall direct, examine any particular subject connected with the condition and management of public utilities and report to him in writing its opinion thereon with its reasons therefor, NOTE.—The Commission is an administrative body, not a court, and has n( jurisdiction to adjudicate controverted rights of parties growing out of contract People ex rel. Bd. of Administration v. Peoria & Pekin Union Ry. Co., 273 111. 440 The Commission has no arbitrary power permitting it to enter a confiscatory order. State Public Utilities Commission ex rel. Beck v. Toledo, St. Louis < t Western R. Co., 267 111. 93. JURISDICTION I N GENERAL: The Public Utilities Act "expressly authorizes this Commission to determine and fix the just, reasonable and sufficient rates or other charges, classifications, rules, regulations, contracts or practices of any public utility doing business withir. the State. No limitation of such powers of the Commission is to be found in the Act." Re Mississippi Valley Teleph. Co., III. I. P. U. C. 24, P. U. R. 1917-B 368 Citizens of Aledo v. Peoples' Tel. Co. et al., III. I. P. U. C. 43. "The statute providing for the regulation of public utilities within the Staff was passed in the exercise of the police powers of the State and all ordinance* or contracts affecting rates or charges by public utilities, for commodities OJ services to be rendered or performed by them, must be held to have been made ir view of, and subject to the right of the State to exercise this police power ii such a way as to disregard such contracts or ordinances if the interests and welfarv of the public should so demand." Re Mississippi Valley Teleph. Co., I l l I. P. U. C 24, 26, P. U. R. 1917-B 368 ; see also Hite v. Cincinnati, Indianapolis & W. R. Co 284 111. 297; Re Polo Mutual Telephone Co., Ill I. P. U. C. 31, P. U. R. 1916-B 31S The Public Utilities Commission is given no abritrary power by the statute and the orders of the Commission must be lawful and reasonable. State Publv Utilities Comm. ex rel. v. Chicago, Milwaukee & St. Paul Ry., 287 111. 412. The Commissions' rate making power is not limited by the provisions of privatcontracts. Danvers Teleph. Co. v. Carlock Farmers' Teleph. Co., V I. P. U. C. 16 P. U. R. 1918-A 235 ; Re Rockfordl Elec. Co., V I. P. U. C. 35, P. U. R. 1918-A 54? See however the amendment of 1919 to Sec. 39 of the Act. The Commission's jurisdiction is not restricted by the terms of contracture ordinances and franchises. Re Kewanee Home Teleph. Co., V I. P. U. C. 20, P. T R. 1918-B 172 ; Re Bloomington & Normal Ry. & L. Co. et al, "V, I. P. U. C. 679 15 Be Galva Elec. L. Co.s V I. P. U. C. 747; Re Mariana Teleph. Co., V I. P. U. C. 783 ; Me Decatur By. L. Co., V I. P. U. C. 906; Stein v. Chicago Teleph. Co., V I. P. U. C. 908 ; Be City Water Co. of Shelbyville V I. P. U. C. 992; Be Central III. Public Service Co., V I. P. U. C. 1023, P. U. R. 1918-F 820. The Commission has no power to compel performance of a private contract. Danvers Telph. Co. v. Carlock Farmers' Teleph. Co., V I. P. U. C. 16, P. U. R. 1918-A 235; North American Car Co. v. Indiahoma Befiining Co., V I. P. U. C. 160; Boone County Co-op. Teleph. Co. v. Belvidere Teleph. Co., V I. P. U. C. 940, P. U. R. 1918-F 97. The Commission has power to consider the construction of private contracts made by a utility when such consideration is necessary to determine the interests of persons seeking to be made parties to the proceeding. Be Western Illinois Teleph. Co. et al.t V I. P. U. C. 1. The Commission has no jurisdiction to override an injunctional order issued by a Circuit Court requiring a utility to serve a consumer at rates fixed by contract. Be Illinois Northern Utilities Co., VI I. P. U. C. 136. The Commission has jurisdiction over all intercorporate contracts between utilities. Be Quincy Gas. Elec. & H. Co. et al., III I. P. U. C. 98. The Commission has no jurisdiction over disputes between a utility and a municipality relative to franchise provisions. City of Bushnell v. Central IIU. Public Service Co., I l l I. P. U. C. 57. The Commission has no jurisdiction to enforce a local assessment for paving against an electric railroad company. Orvis v. Chicago & M. Elec. B. Co., II I. P. U. C. 84, P. U. R. 1915-A 1000. The Commission has no jurisdiction to compel an electric railroad company to maintain the streets on which its tracks are laid in such manner as not to interfere with the public use. Orvis v. Chicago & M. Elec. B. Co.} II I. P. U. C. 84, P. U. R. 1915-A 1000 ; Be Quincy By. Co., VI I. P. U. C. 435. The Commission has no authority to compel a street railway company to carry mail carriers free in accordance with the provisions of a city ordinance. Ericson v. Evanston St. By. Co., I l l I. P. U. C. 61, P. U. R. 1916-B 918. See also Golden v. Chicago & Northwestern By. Co., V I. P. U. C. 317 ; Public Utilities Comm. v. Springfield Consolidated By. Co., VI I. P. U. C. 271. The Commission has no jurisdiction to order the removal of old decayed telephone poles when their removal is primarily a question of compliance with a franchise ordinance. City of Genoa v. Be Kalb County Teleph. Co., II I. P. U. C. 83. The Commission has no jurisdiction over street lighting franchises. City of Bushnell v. Central III. Public Service Co., I l l I. P. U. C. 57 ; Hubbard v. Public Service Co. of N. Illinois et al., V I. P. U. C. 44. The Commission has no jurisdiction over a dispute between a telephone company and a subscriber as to the number of messages sent from the subscriber's phone. Fulton v. Chicago Teleph. Co., IV I. P. U. C. 153, P. U. R. 1917-A 527. The Commission has no power to compel an electric consumer to repair his service line connecting with the company's transmission line, or to require him to keep it in a safe condition: Abbott L. & P. Co. v. Parks III I. P. U. C. 96, P. U. R. 1916-D 1093. It was the intention of the legislature, as manifested by the language of the Act to give the Commission a very large and comprehensive jurisdiction over the affairs and operation of public utilities, but it is not the intention that the Commission should be allowed to substitute its management for the management of the companies. Citizens of Aledo v. Peoples' Teleph. Co. et al., I l l I. P. ,U. C. 43. The Commission has jurisdiction over the sale of a public utility plant to the municipality. Public Utilities Comm. v. Citizens W. W. Co., V I. P. U. C. 550. The Commission has jurisdiction over prior orders of the Railroad & Warehouse Commission. Be Wabash, Chester & Western R. et al., I l l I. P. U. C. 49 ; Illinois Central B. Co. et al. v. Bloomington etc. B. Co., IV I. P. U. C. 105. The Commission's jurisdiction relative to discontinuance of service is explained in the following cases. Be Central III. Public Service Co., I l l I. P. U. C. 93, P. U.'R. 1916-B 920 ; City of Pana v. Central III. Public Service Co., I l l I. P. U. C. 95, P. IT. R. 1916-B 177; Be Fairview Transp. Co., IV I. P. U. C. 159, P. U. R. 1917-E 44; Village of Palestine v. Oblong Gas Co., V I. P. U. C. 10. The Commission has power to require an electric railway to permit another utility to use its tracks, wires and poles where the public convenience so requires. Weathersby v. Decatur By. & L. Co. et al., VI I. P. U. C. 360. The Commission has no jurisdiction to award damages to a shipper for an alleged loss caused by giving the wrong number of a car in a bill of lading. Mundhenk Fuel Co. v. Chicago & E. Ill B. Co., II. I. P. U. C. 89 Charges of an electric utility for making minor repairs upon the consumer's own equipment, covering the cost of delivery of lamps on renewal and of the calling for or delivery by the company of heating appliances in need of repair" are not within the jurisdiction of the Commission because such services are not a part of the company's public utility business. Public Utilities Comm. v. Commonwealth Edison Co., V. I. P. U. C. 1276, P. U. R. 1918-F 109. 9. Utilities to Comply with Requests and Obey Orders of Commission. § 9. Every public utility shall furnish to the Commission all information required by it to carry into effect the provisions of this Act, and shall make specific answers to all questions submitted by the Commission. 16 Any public utility receiving from the Commission any blanks with directions to fill the same, shall cause the same to be properly filled out so as to answer fully and ,&rreeiiy~ each' question -therein propounded, and in case it is unable to answer any question, it shall give a good and sufficient reason for such failure; and said answer shall be verified under oath by the president, secretary, superintendent or general manager of such public utility and returned to the Commission at its office "within the period fixed by the Commission. • : Whenever required by the Commission, every public utility shall deliver to the Commission,- any or all maps, profiles, reports, documents, books, accounts, papers and records in its possession, or in any way relating to its property or affecting its business, and inventories of its property, in such form as the Commission may direct, or verified copies of any or all of the same. Every public utility shall obey and comply with each and every re' quirement of every order, decision, direction, rule or regulation made or prescribed by the Commission in the matters herein specified, or any other matter in any way relating to or affecting its business as a public utilit}^ and shall do everything necessary or proper in order, to secure compliance with and observance of every such order, decision, direction, rule or regulation by all of its officers, agents and employees. 10. Definitions. § 10. Unless otherwise specified, the word "Commission," when used in this Act, means the State Public Utilities Commission of Illinois, which is created and established under the provisions of this Act. The term "commissioner," when used in this Act means one of the members of the Commission. The term "public utility," when used in this Act, means and includes every corporation, company, association, joint stock company or association, firm, partnership or individual, their lessees, trustees, or receivers appointed by any court whatsoever (except, however, such public utilities as are or may hereafter be owned or operated by any municipality) that now or hereafter: (a) May own, control, operate or manage, within the State, directly or indirectly for public use, any plant, equipment or property used or to be used for or in connection with the transportation of persons or property or the transmission of telegraph or telephone messages between points within this State; or for the production, storage, transmission, sale, delivery or furnishing of heat, cold, light, power, electricity or 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 a wharfinger; or that (b) May own or control any franchise, license, permit or right to engage in any such business. The term "common carrier," when used in this Act, includes all railroads, street railroads, express companies, private car lines, sleeping car companies, fast freight lines, steamboat lines and other common carriers by water, and every corporation, companjr, association, joint stock company or association, firm, partnership or individual, their lessees, trustees, or receivers appointed by any court whatsoever; owning, 17 operating or managing any such agency for public use in the transportation of persons or property within the State. The term "railroad," when used in this Act, includes every railroad other than a street railroad, by whatsoever power operated for public use in the transportation of persons or property for compensation, with all bridges, ferries, tunnels, equipment, switches, spurs, tracks, poles, wires, stations, real estate and terminal facilities of every kind, used, operated, controlled or owned by or in connection with any railroad. The term "street railroad," when used in this Act, includes every railroad by whatsoever power operated, or any extension or extensions, branch or branches thereof, for public use in the transportation of persons or property for compensation, being mainly upon, along, above or below" any street, avenue, road, highway, bridge or public place in any city, village or incorporated town, and including all equipment, switches, spurs, tiacks, poles, wires, right of trackage, subways, tunnels, stations, terminals and terminal facilities of every kind, together with all real estate used, operated, controlled or owned by or in connection with any such street railroad; but the said term "street railroad," when used in this Act, shall not include a railroad constituting or used as part of a trunk line railroad system. The term "transportation of persons," when used in this Act, includes any service in connection with the receipt, carriage and delivery of the person transported and his baggage, and all facilities, used or necessary to be used in connection with the safety, comfort and convenience of the person transported. The term "transportation of property," when used in this Act, includes any service in connection with the receipt, carriage, delivery, elevation, transfer in transit, ventilation, refrigeration, icing, storage and handling of the property transported. The term "express company," when used in this Act, includes every corporation, company, association, joint stock company or association, firm partnership or individual, their lessees, trustees, or receivers appointed by any court whatsoever, engaged in. the transportation of freight, merchandise or other property for compensation on the route or line of any other common carrier. The term "company," when used in this Act in connection with a public utility, includes any corporation, company, association, joint stock company or association, firm, partnership or individual, their lessees, trustees, or receivers appointed by any court whatsoever, owning, hold±^<\ operating/controlling or managing such a public utility, but not municipal corporations. The term "corporation," when used in this Act, includes any corporation, company, association, joint stock company or association, but not municipal corporations. The term "person," when used in this Act, includes an individual, firm or : co-partnership. The term "warehouse," when used in this Act, includes all elevators or storehouses where grain is stored for a compensation, whether the property stored be kept separate or not. - 3 P U L 18 The term "wharfinger," when used in this Act, includes every corporation, not municipal, or person, their lessees, trustees, or receivers appointed by any court whatsoever, owning, controlling, operating or managing any dock, wharf, or structure used by vessels or other water craft in connection with or to facilitate the receipt or discharge of freight or passengers within this State. The term "service," when used in this Act, is used in its broadest and most inclusive sense, and includes not only the use or accommodation afforded consumers or patrons, but also any product or commodity furnished by any public utility and the plant, equipment, appar. atus, appliances, property and facilities employed by, or in connection with, any public utility in performing any service or in furnishing any product or commodity and devoted to the purposes in which such public utility is engaged and to the use and accomodation of the public. The term "rate," when used in this Act, includes every individual or joint rate, fare, toll, charge, rental or other compensation of any public utility or any two or more such individual or joint rates, fares, tolls, charges, rentals or other compensations of any public utility or any schedule or tariff thereof, and any rule, regulation, charge, practice or contract relating thereto. The term "city council," when used in this Act, includes the mayor and commissioners of cities which have adopted the Commission form of municipal government and the council of all other cities and villages. The term "city," when used in this Act includes all villages. NOTE.— The Commission has jurisdiction over cold storage warehouses. State Public Utilities Comm. v. Monarch Refrigerating Co., 267 111. 528. A mutual telephone association is a public utility, even though it does not operate for profit, if its service is open, so far as its business extends, to anyone who is willing to become a member. State Public Utilities Comm. ex rel. Noble Telegraph. Co. v. Noble Mutual Teleph. Co. et al. 268 111. 411 ; State Public Utilities Comm. ex rel. Pike County Teleph. Co. v. Noble et al., 275 111. 121; Evansville Teleph. Co. v. Okaw Valley Mut. Teleph. Ass'n. IV I. P. U. C. 128, P. U. R. 1917-D 730. revd. 282 111. 336 on the ground that since the charter of the association limits its powers to the operation of the telephone system for its members only it has no right to serve the public and no right to engage in a public utility business, and the fact that the association actually does serve the public does not bring it within the Act. (To this effect see also State Public Utilities Comm. ex rel. Macon County Teleph. Co. v. Bethany Mutual Teleph. Ass'n., 270 111. 183.) ; Tillage of La Prairie v. Shilo Teleph. Co. et al., IV I. P. U. C. 135 ; Public Utilities Comm. v. Edwards Co. Independent Teleph. Ass'n., V I. P. U. C. 1160 ; See also Buncombe Teleph. Co. v. McGinnis 268 111. 504. "The question whether a person or corporation is operating a public utility is determined not by what business it is authorized by its charter to transact, but by the character of the business which it in fact and practice does transact." Re; Whitehall Ry. Co., V I. P. TJ. C. 589 ; but see Okaw Valley and Bethany Mutual cases (282 111. 336 and 170 111. 183) cited above. J An individual operating a rural telephone system open to public use is withiiri the provisions of section 10 of the Act. 4-C Teleph. Cfb. v. Helmer, IV I. P. U. Q. 125, P. U. R. 1917-D 197. A non-operating telegraph company may be a public utility within the meaning of the Act. State Public Utilities Comm. v. Western Union Teleph. Co., I l l I. P. TJ. C. 77. P. U. R. 1916-E 432. Taxi-cabs have been held not to be within the provisions of the Act. Newcomb' v. Yellow Cab. Co., I l l I. P. TJ. C. 69, P. TJ. R. 1916-B 983; Hughes et al. v. Atlas Co., I l l I. P. U. C. 71. Jitney buses plying between regular termini over fixed routes have been held public utilities. Tri City Ry. Co. v. Bietz, III I. P. TJ. C. 72 ; Quincy R. Co. v. Snyder et al., I'll I. P. TJ. C. 76 but see Re Auto Transportation Co., VI I. P. U. C. 38£ in which the Commission held that it has no jurisdiction over motor vehicles operating outside incorporated cities, villages or unincorporated towns. " , The Commission has taken jurisdiction over motor buses. Re Chicago Stage Co., V I. P. U. C. 166. The Commission has jurisdiction over motor freight distributing companies'. Re Chicago & Interurban Trac. Co., I l l I. P. TJ. C. 81, P. TJ. R. 1916-E 761; R[e Interurban Motor Despatch, VI I. P. TJ. C. 216. \ 19 The Commission has jurisdiction over a stock yards company operating a railway. St. Louis National S. Y. v. Illinois R. Co. et al., IV I. P. U. C. 139. An elevator operated in connection with the private business of buying and selling grain, and not open for public use is not a public utility. Re Winchester Farmers' Elevator & Mercantile Co., V I. P. U. C. 569, P. U. R. 1918-E 849. Team tracks, terminals and spur tracks are within the terms of the Act. Moline Sand Co. v. Chicago Burlington & Quincy R. Co., IV I. P. U. C. 100 ; Turns Coal Co. v. Louisville & Nashville R. Co., IV I. P. U. C. 103 ; Paul Kuhn & Co: v. Louisville & Co. v. Cleveland. Cincinnati, Chicago & St. Louis R. Co., V I. P. U. C. 251.. A switching railway is within the terms of the Public Utilities Act. Re Springfield Terminal Ry. Co., V I. P. U. C. 805 ; E. St. Louis, C. & W. R. Co, v. Pittsburgh, C. C. & St. Louis R. Co., V I. P. U. C. 420, P. U. R. 1918-E 654. The Commission has exercised jurisdiction over an oil pipe line company. Re Illinois Pipe Line Co., VI I. P. U. C. 232. A corporation which renders water service to a municipality and a steam railroad operating therein, but to no other consumers, is a public utility within the meaning of the Act. Re Central Illinois Public Service Co., VI I. P. U. C. 288. ARTICLE II. EEPOETS AND ACCOUNTS. 11. Accounts, U n i f o r m System of. § 11. The Commission shall have power to establish a uniform system of accounts to be kept by public utilities or to classify public utilities and to establish a uniform system of accounts for each class and to prescribe the manner in which such accounts shall be kept. It may also, in its discretion, prescribe the forms of accounts to be kept by public utilities, including records of service, as well as accounts of earnings and expenses, and any other forms, records and memoranda which in the judgment of the Commission may be necessary to carry out any of the provisions of this Act. The system of accounts established by the Commission and the forms of accounts prescribed by it shall not be inconsistent, in the case of corporations subject to the provisions of the Act of Congress entitled, "An Act to regulate commerce," approved February fourth, eighteen hundred and eighty-seven, and the Acts amenatory thereof and supplementary thereto, with the systems and forms from time to time established for such corporations by the Interstate Commerce Commission, but nothing herein contained shall effect the power of the Commission to prescribe forms of accounts, for such corporations, with the approval of the Interstate Commerce Commission, covering information in addition to that required by the Interstate Commerce Commission. Where the Commission has prescribed the forms of accounts to be kept by any public utility for any of its business, it shall thereafter be unlawful for such public utility to keep any accounts for such business other than those prescribed or approved by the Commission, or those prescribed by or under the authority of any other state or of the United States. The Commission may,, from time to time, altar, amend or repeal, in whole or in part, any uniform system of accounts, or the forms and manner of keeping accounts. NOTE.— Re Lena Electric Light & Power Co. V I. P. U. C. 237, P. U. R. 1918-C 986 ; Re Johnson County Mut. Teleph. Co., I l l I. P. U. C.s 297 ; See General Orders Nos. 51-54, VI I. P. U. C. 291 and note, and General Orders Nos. 15 & 16. 12. Other T h a n Public U t i l i t y Business. § 12. The Commission may require every public utility engaged directly or indirectly in any other than a public utility business, as defined by law, to keep separately in like manner and form the accounts 20 of all such other business, and the Commission may provide for the examination and inspection of the books, accounts, papers and records of such other business, in so far as may be necessary to enforce any provision of this Act. The Commission shall have power to inquire as to and prescribe the apportionment of capitalization, earnings, debts and expenses fairly and justly to be awarded to or borne by the ownership, operation, management or control of such public utility as distinguished from such other business. NOTE.—Each of the several general orders of the Commission prescribing uniform systems of acounts for the divers types of utilities contain the following provision : "Every utility, or owner or operator of such utility, conducting a business other than public utility business in connection with the operaton of the public utility undertaking must keep records showing fully the details of such other business. The records must be so kept that the records pertaining to the utility business may be readily separated from those pertaining to other business, in order that the cost of rendering the utility service, the revenue derived therefrom and the rate of return upon the capital invested in property used in rendering such utility service may be readily ascertained." 13. Forms of Accounts. § 13. Such systems of accounts shall provide for forms showing all sources of income, the amounts due and received from each source and the amounts expended and due for each purpose, distinguishing clearly all payments for operating expenses from those for new construction, extensions and additions; and for balance sheets showing assets and liabilities and various forms of proprietary interest. NOTE.—See General Orders Nos 51-54, VI I. P. U. C. 291 and note. General Order No. 54 provides t h a t : "The accounts, rules, definitions and instructions herein set forth comprise a system of accounts and records prescribed by the Commission for the use of all public heating utilities within its jurisdiction. All such utilities are required to keep their books of account and subsidiary records in conformity with this system. "The records of heating utilities shall be kept with sufficient detail to show fully all facts pertaining to the entries made in the prescribed accounts. The entries in the general books, when full information is not recorded, must contain references which unmistakably identify the particular records in which the full details of such entries are shown. All records must be filed so as to be readily accessible for examination by representatives of the Commission. "All records, financial papers, books, vouchers and documents pertaining to any or all utility's property or its corporate or financial affairs (except certificates representing retired and cancelled security issues or other papers the destruction of which may be authorized by order of the Commission) must be permanently preserved. All other original records must be preserved pending the issuance of such further order as the Commission shall make in the premises. "Every heating utility, or owner or operator of such utility, conducting a business other than public utility business in connection with the operation of the public utility undertaking must keep records showing fully the details of such other business. The records must be so kept that the records pertaining to the utility business may be readily separated from those pertaining to other business, in order that the cost of rendering the heating utility service, the revenue derived therefrom and the rate of return upon the capital invested in property used in rendering such utility service may be readily ascertained." Each'of the other general orders mentioned contains similar provisions. 14. Depreciation Accounts. § 14. The Commission shall have power, after hearing, to require any or all public utilities to keep such accounts as will adequately reflect depreciation, obsolescence and the progress of the arts. The Commission may, from time to time, ascertain and determine and by order fix the proper and adequate rate of depreciation of the several classes of property for each public utility; and each public utility shall conform its depreciation accounts to the rates so ascertained, determined and fixed. NOTE.—For Commission holdings on depreciation in general see: Gity of Springfield v. Springfield Gas £ Elec. Go., I l l I. P. U. C. 324, P. U. R. 1916-C 281; Gity 21 of Lincoln v. Lincoln Water & Light Co., IV I. P. U. C. 574, P. U. R. 1917-B 1; Be Chicago North SJiore & M. R. Co., IV I. P. U. C. 717, P. U. R. 1918-A 388; etc. Bach of the general orders prescribing uniform systems of accounts for the several types of utilities contain provision substantially as follows: "177. DEPRECIATION RESERVE. "To this account shall be credited all amounts charged to operating expense account No. 692, "Depreciation," to provide for accruing depreciation in the utility plant and equipment; also amounts charged to account No. 413, "Depreciation Not Covered by Reserves," if any amounts have been charged thereto as provided in that account. There shall also be credited hereto amounts chargeable to account No. 411, "Surplus applied to sinking fund and other reserves," representing interest and income from moneys and investments belonging to the depreciation fund. "This acount should also be credited with any amount carried in reserve at December 31, 1918, to cover depreciation on plant and equipment. "Depreciation on property included in balance sheet account No. 104, "Miscellaneous Physical Property," may be included in this account under a subdivision showing clearly to what property it is applicable. "When any property is destroyed, sold, or otherwise retired from service, the cost of such property as carried on the books at the time of retirement should be charged to this account, less insurance and salvage recovered thereon. "If the charges to this account on account of property retired exceed the amount provided herein (due to inadequate charges previously made for depreciation) there should be charged to account No. 413, "Depreciation Not Covered by Reserves," and credited to this account an amount sufficient to provide an adequate reserve. (See also text of account No. 413.) "Read carefully the instructions relative to depreciation in the instructions pertaining to operating expenses, page 99, and instructions pertaining to "Property Retired," page 52, also the text of account 141, "Depreciation Fund." "NOTE.—Companies operating more than one utility (electric, gas, heating, or water) and keeping only one set of balance sheet accounts are required to open and maintain a separate subaccount for the depreciation reserve of each utility." 15. Audit and Inspection. § 15. The Commission may provide for the examination and audit all accounts, and all items shall be allocated to the accounts in the manner prescribed by the Commissioon. The officers and employees of the Commission shall have authority under the direction of the Commission to inspect and examine any and all books, accounts, papers, records and memoranda kept by such public utilities. NOTE.—Each of the general orders prescribing uniform systems of accounts contains the following provision. "In prescribing this system of accounts, the Commission does not bind itself to approve any item set out in any account, either as to amount or character, for rate fixing purposes or when authorizing the issuance of securities. The prescribed system of accounts is designed to set out the facts in connection with the income, expenditures, etc., and therefrom the Commission will determine, when engaged in fixing rates or approving isues of securities, just what consideration shall be given to the various items in the several accounts." 16. Accounts to be Kept in State. § 16. Each public utility shall have an office in one of the cities, villages or incorporated towns in this State in which its property or some part thereof is located, and shall keep in said office all such books, accounts, papers, records and memoranda as shall be ordered by the Commission to be kept within the State. The address of such office shall be filed with the Commission. No books, accounts, papers, records, or memoranda ordered by the Commission to be kept within the State shall be at any time removed from the State, except upon such conditions as may be prescribed by the Commission. NOTE.—The Commission granted two telephone companies permission to keep their books, records, papers and accounts outside the State in consideration of the resulting economy and efficiency, on condition that such books and papers would be produced at any place within the State at any time requested by the Commission and that the Commission would be permitted to inspect them at any time. Kinlock-Bloomington Teleph. Co. et al., II I. P. U. C. 109, P. U. R. 1915-B 348 amending conference Rule No. 1. See also Re Southern Bell Teleph. Co., I l l .1. P. U. C. 238 ; Re City Water Co. of E. St. L. & Granite City et al, III I. P. U. C. 627? Tfe Southern III L. rf P. Co. et al., IV I. P. U. C. 911; Re Streackfus Steamboat Line, IV I. P. U. C. 911. 22 17. Falsification or Destruction of Accounts. § 17. Any person who shall wilfully make any false entry in the accounts, or in any record or memorandum kept by a public utility, or who shall wilfully destroy, mutilate, alter, or by any other means or device falsify the record of any such account, record or memorandum, or who shall wilfully neglect or fail to make full, true, and correct entries in such accounts, records, or memoranda of all facts and transactions appertaining to the business of the public utility, or shall keep any accounts or record other than those prescribed or approved by the Commission, shall be guilty of a misdemeanor, and upon conviction, be subject to imprisonment in the county jail not exceeding one year, or to a fine not exceeding one thousand dollars, or to both. NOTE.—See General Order No. 17. Each of the general orders prescribing uniform systems of accounts contains the following provisions: "All records, financial papers, books, vouchers and documents pertaining to any or all of the utility's property or its corporate or financial affairs (except certificates representing retired and cancelled security issues or other papers the destruction of which may be authorized by order of the Commission) must be permanently preserved. All other original records must be preserved pending the issuance of such further order as the Commission shall make in the premises. "The records of (water) utilities shall be kept with sufficient detail to show fully all facts pertaining to the entries made in the prescribed accounts. The entries in the general books, when full information is not recorded, must contain references which unmistakably identify the particular records in which the full details of such entries are shown. All records must be filed so as to be readily accessible lor examination by representatives of the Commission." 18. Penalty for Divulging Information. § 18. Any officer or employee of the Commission who divulges any fact or information coming to his knowledge during the course of an inspection, examination or investigation of any account, record, memorandum, book or paper of a public utility, except in so far as he may be authorized by the Commission or by a court of competent jurisdiction, or a judge thereof,- shall be guilty of a misdemeanor, and upon conviction, be subject to imprisonment in the county jail not exceeding one year, or to a fine not exceeding one thousand dollars, or to both. 19. Reports by Report. Public Utilities—Penalties for Failure to Report—False § 19. Each public utility in the State shall each year after the year 1913 furnish to the Commission, in such form as the Commission shall require, annual reports as to all the items mentioned in the preceding sections of this article, and in addition such other items, whether of a nature similar to those therein enumerated or otherwise, as the Commission may prescribe. Such annual reports shall contain all the required information for the period of twelve months ending on the thirtieth day of June in each year, or ending on the 31st day of December in each year, as the Commission may by order prescribe for each class of public utilities, and shall be filed with the Commission at its office in Springfield within three months after the close of the year for which the report is made. The Commission shall have authority to require any public utility to file monthly reports of earnings and expenses of such utility, and to file other periodical or special, or both periodical and special reports concerning any matter about which the Commission is authorized by law to keep itself informed. All reports shall be under oath. 23 When any report is erroneous or defective or appears to the Commission to be erroneous or defective, the Commission may notify the public utility to amend such report within thirty days, and before or after the termination of such period the Commission may examine the officers, agents, or employees, and books, records, accounts, vouchers, plant, equipment and property of such public utility, and correct such items in the report as upon such examination the Commission may find defective or erroneous. All reports made to the Commission by any public utility and the contents thereof shall be open to public inspection, unless otherwise ordered by the Commission. Such reports shall be preserved in the office or [of] the Commission. Any public utility which fails to make and file any report called for by the Commission within the time specified; or to make specific answer to any question propounded by the Commission within thirty days from the time it is lawfully required to do so, or within such further time, not to exceed ninety days, as may in its discretion be allowed by the Commission, shall forfeit $100 for each and every day it may so be in default. Any person who wilfully makes any false return or report to the Commission, or to any member, officer or employee thereof, and any person who aids or abets such person shall, upon conviction, be subject to imprisonment in the county jail not exceeding one year, or to a fine not exceeding one thousand dollars, or both. ARTICLE I I I . STOCKS AND BONDS—CAPITALIZATION—INTERCORPORATE EELATIONS— FRANCHISES—VALUATION. 20. Right to Issue Stocks, Bonds, Etc. § 20. The power of public utilities to issue stocks, stock certificates, bonds, notes and other evidences of indebtedness and to create liens on their property is a special privilege, the right of supervision, regulation, restriction and control of which is and shall continue to be vested in the State, and such power shall be exercised by the Commission hereby created according to the provisions of this Act and under such rules and regulations as the Commission may prescribe. The Commission shall provide, by serial number or other device to be placed on the face thereof, for the proper and easy identification of riuch stocks, stock certificates, bonds, notes and other evidences of indebtedness as may be issued by public utilities under the provisions of this article. NOTE.—One utility, may be authorized to issue bonds to purchase property from another at a price in excess of its value, where better service will result; but the excess must not be charged to operating expenses or capital and with the expense of the bond issue must be amortized or charged to profit and loss. Re Tyrone Electric Co., I l l I. P. U. C. 140, P. U. R. 1916-E 708. A gas company, upon organization, was permitted to use "$473,700 proceeds from the sale of stock and bonds for -acquisition of property and construction of facilities ; $67,928 for engineering, superintendence, omissions, interest during construction, and legal expenses; $50,000 for working capital and development expenses; and $38,372 for organization, promotional, financing and general expenses ; and salaries until operation is begun. Re Southern III. Gas Co.,, Ill I P. U. C. 192, 574, P. U. R. 1916-C 704. 84 21. Approval of Securities Issues—Application of Proceeds—Indebtedness for a Y e a r or Less—Franchises Not to be Capitalized. § 21. Subject to the provisions of this Act and of the order of the Commission issued as provided in this Act, a public utility may issue stocks and stock certificates, and bonds, notes and other evidences of indebtedness payable at periods of more than twelve months after the date thereof, for the following purposes and no others, namely: For the acquisition of property, or for the construction, extension or improvement of or addition to its facilities, or for the discharge or lawful refunding of its obligations; or for the reimbursement of moneys actually expended from income or from any other moneys in the treasury of the public utility not directly or indirectly secured by or obtained from the issue of stocks or stock certificates, or bonds, notes or other evidences of indebtedness of such public utility, within five years next prior to the filing of an application with the Commission for the required authorization, for any of the aforesaid purposes except maintenance of service, replacements and substitutions in cases where the applicant shall have kept its accounts and vouchers for such expenditures in such manner BS to enable the Commission to ascertain the amount of moneys so expended and the purposes for which such expenditures were made, and the sources of the funds in the treasury of the public utility applied to such expenditures: Provided, that such public utility, in addition to the other requirements of law, shall first have secured from the Commission an order authorizing such issue and stating the amount thereof Bnd the purpose or purposes to which the issue or the proceeds thereof are to be applied, and that, in the opinion of the Commission, the money, property or labor to be procured or paid for by such issue is reasonably required for the purpose or purposes specified in the order, and that, except as otherwise permitted in the order in the case of notes or other evidences of indebtedness, such purpose or purposes are not, in whole or in part, reasonably chargeable to operating expenses or to income. To enable it to determine whether it will issue such order, the Commission shall hold a hearing and may make such additional inquiry or investigation, and examine such witnesses, books, papers, accounts, documents and contracts and require the filing of such data as it may deem of assistance. The public utility may be required by the Commission to disclose every interest of the directors of such public utility in any transaction under investigation. The Commission shall have power to investigate all such transactions and to inquire into the good faith thereof, to examine books, papers, accounts, documents and contracts of public utilities, construction or other companies or of firms or individuals with whom the public utility shall have had financial transactions, for the purpose of enabling it to verify any statements furnished, and to examine into the actual value of property acquired bv, or services rendered to such public utility. Before issuing its order the Commission, when it is deemed necessary by the Commission, shall make an adequate physical valuation of all property of the public utility, but a valuation already made under proper public supervision may be adopted, either in whole or in part, at the discretion of the Commission; and shall also examine all previously authorized or outstanding securi- 25 ties of the public utility, and fixed charges attached thereto. A statement of the results of such physical valuation, and a statement of the character of all outstanding securities, together with the conditions under which they are held, shall be included in the order. The Commission may require that such information or such part thereof as it thinks proper, shall appear upon the stock, stock certificate, bond, note or other evidence of indebtedness authorized by its order. The Commission may by its order grant permission for the issue of such stock certificates, or bonds, notes or other evidences of indebtedness in the amount applied for, or in a lesser amount, or not at all, and may attach to the exercise of its permission such condition or conditions as it may deem reasonable and necessary. The Commission may also require the public utility to compile for the information of its shareholders such facts in regard to its financial transactions, in such form as the Commission may direct. No public utility shall, without the consent of the Commission, apply the issue of any stock or stock certificate, or bond, note or other evidence of indebtedness, or any part thereof, or any proceeds thereof, to any purpose not specified in the Commission's order or to any purpose specified in the Commission's order in excess of the amount authorized for such purpose, or issue, or dispose of the same on any terms less favorable than those specified in such order, or a modification thereof. The Commission shall have the power to require public utilities to account for the disposition of the proceeds of all stocks and stock certificates, and bonds, notes and other evidences of indebtedness, in such form and detail as it may deem advisable, and to establish such rules and regulations as it may deem reasonable and necessary to insure the disposition of such proceeds for the purpose or purposes specified in its order. A public utility may issue notes, for proper purposes and not in violation of any provision of this Act or any other Act, payable at periods of not more than twelve months after the date of issuance of the same, without the consent of the Commission; but no such note shall, in whole or in part, be renewed from time to time without the consent of the Commission for an aggregate period of longer than two years, or be refunded by any issue of stocks and stock certificates, or of bonds, notes of any term or character or any other evidence of indebtedness, without the consent of the Commission. The Commission shall have no power to authorize the capitalization of the right to be a corporation, or to authorize the capitalization of any franchise, license, or permit whatsoever or the right to own, operate or enjoy any such franchise, license, or permit, in excess of the amount (exclusive of any tax or annual charge) actually paid to the State or to a political subdivision thereof as the consideration for the grant of such franchise, license, permit or right; nor shall any contract for consolidation or lease be capitalized, nor shall any public utility hereafter issue any bonds, notes or other evidences of indebtedness against or as a lien upon any contract for consolidation or merger. NOTE.—See Re Illinois R. 1917-A 816. —4 P U Northern Utilities Co. et at, III I. P. U. C. 107, P. U. 26 SECURITIES ISSUES I N GENERAL. Re Illinois. Central R. Co., II I. P. U. C. 148, P. U. R. 1915-D 1032 ; Re New York Central R. Co., II I. P. U. C. 607 abstracted, P. U. R. 1915-D 1024; Re Tyrone Elec. Co., I l l I. P. U. C. 140, P. U. R. 1916-E 708 ; Re Southern Illinois Gas Co., I l l I. P. U. C. 579 abstracted, P. U. R. 1916-C 704; Re Illinois Northern Utilities Co., I l l I. P. U. C. 107, P. U. R. 1917-A 816. 22. Consolidation and Reorganization—Capitalization. § 22. The capitalization of a public utilities formed by a merger or consolidation of two or more corporations shall be subject to the approval of the Commission, but in no event shall the Commission approve a capitalization exceeding the sum of the capital stock of the corporations so consolidated, at the par value thereof, and any additional sum actually paid in cash for improvements; nor shall any contract for consolidation or lease be capitalized in the stock of any corporation whatever; nor shall any corporation hereafter issue any bonds against or as a lien upon any contract for consolidation or merger. In any reorganization of a public utility, resulting from forced sale, or in any other manner, the amount of capitalization, including therein all stocks and stock certificates and bonds, notes, and other evidences of indebtedness, shall be such as is authorized by the Commission, which in making its determination, shall not exceed the fair value of the property involved. Issuance of stocks and stock certificates, and bonds, notes or other evidences of indebtedness in connection with any consolidation, merger, or reorganization shall be subject to all the terms of sections 20 and 21 of this Act. NOTE.—See Re Illinois Northern Utilities Co. et al., I l l I. P. U. C. 107, 1917-A 816, holding that the Commission need not determine the value of the property of constituent companies in order to authorize a stock issue by the consolidated companies for the purpose of effecting the consolidation, provided the proposed issue of securities does not exceed the sum of the par value of the outstanding securities of the constituent companies; but the Commission may require that the securities recite that the authorization shall not be taken as a finding of value. 23. Securities Unlawfully Issued. § 23. All stock and every stock certificate, and every bond, note or other evidence of indebtedness, of a public utility, not payable within twelve months issued without an order of the Commission authorizing the same then in effect shall be void, unless issued upon the authority of any articles of incorporation or amendments thereto, and of a vote of the stockholders or directors, filed and taken before this Act becomes a law, and likewise all stock and every stock certificate, and every bond, note or other evidence of indebtedness of a public utility not payable within twelve months, issued with the authorization of the Commission, but not conforming in its provisions to the provisions, if any, which it is required by the order of authorization of the Commission to contain, shall be void; but no failure in any other respect to comply with the terms or conditions of the order of authorization of the Commission shall render void any stock or stock certificate, or any bond, note or other evidence of indebtedness, except as to a corporation or person taking the same with notice of the failure to comply with the order of the Commission. NOTE.—See Conference Rule No. 23, III I. P. U. C. 11. 27 24. Penalty for U n l a w f u l l y Issuing Securities. § 24. Every public utility which, directly or indirectly, issues or causes to be issued, any stock, stock certificate, bond, note or other evidence of indebtedness, in non-conformity with the order of the Commission authorizing the same, or contrary to the provisions of this Act, or which applies the proceeds from the sale thereof, or any part thereof, to any purpose other than the purpose or purposes specified in the Commission's order, as herein provided, or to any purpose specified in the Commission's order in excess of the amount authorized for such purpose, shall upon conviction, be subject to a penalty of not less than five hundred dollars ($500) nor more than twenty thousand dollars ($20,000) for each offense. 25. Penalty for False Statement, Etc. § 25. Every officer, agent or employee of a public utility, and every other person who knowingly, authorizes, directs, issues or executes, causes to be issued or executed, or aids in the issue or execution of any stock, stock certificate, bond, note or other evidence of indebtedness, in non-conformity with the order of the Commission authorizing the same, or contrary to the provisions of this Act; or who, in any proceeding before the Commission, knowingly makes any false statement or representation, or with the knowledge of its falsity files or causes to be filed with the Commission any false statement or representation, which said statement or representation so made, filed or caused to be filed may tend in any way to influence the Commission to make an order authorizing the issue of any stock or stock certificate, or any bond, note or other evidence of indebtedness, or which results in procuring from the Commission the making of any such order, or who, with knowledge that any false statement or representation was made to the Commission, in any proceeding, tending in any way to influence the Commission to make such order, issues or executes or negotiates, or causes to be issued, executed, or negotiated any such stock or stock certificate, or bond, note or other evidence of indebtedness, or who, directly or indirectly, knowingly applies, or causes or assists to be applied the proceeds or any part thereof, from the sale of any stock or stock certificate, or bond, note or other evidence of indebtedness, to any purpose not specified in the Commission's order or to any purpose specified in the Commission's order in excess of the amount authorized for such purpose, or who, with knowledge that any stock certificate, or bond, note or other evidence, of indebtedness, has been issued or executed in violation of any of the provisions of this Act, negotiates, or causes the same ta be negotiated, shall, on conviction thereof, be imprisoned in the State penitentiary for a term of not less than two years and not more than ten years. 26. No Guaranty of U t i l i t y Securities by State. § 26. No provision of this Act, and no deed or act done or performed under or in connection therewith, shall be held or construed to obligate the State of Illinois to pay or guarantee, in any manner whatsoever, any stock or stock certificate, or bond, note or other evidence of indebtedness, authorized, issued or executed under the provisions of this 28 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 Go. et