POLICY AS TO THE CONSOLIDATION OF COMPANIES (NEW YORE) No public service corporation, foreign or domestic, can hold any part of the capital stock of another public service corporation unless authorized to do so by the commission. Except as stock shall be transferred or held as collateral with the consent of the commission, no corporation of any description, domestic or foreign, other than a public service corpora tion of the same sort, can hold more than ten per cent of the capital stock issued by any public service corporation. No franchise or right under any franchise, to own or operate a public service enterprise, can be transferred, or leased, without the commission's approval.
It is apparent that the commission has a check over the control of companies by hold ing companies. There are, however, no cases of application for the right to acquire the stock of other corporations which bring out facts worthy of notice.
The commission is in a position to accom plish much toward conserving the public in terest through its control over leases. The widespread bankruptcy of the New York sur face lines was due to no one thing more than the extravagant terms on which many lines had leased the property of others. In some cases the Metropolitan Street Railway Com pany had made leases under which it had agreed to pay twenty-one per cent upon the inflated capital of the companies whose lines it leased. The commission makes it evident that it will allow no more leases upon such terms. "Leases made under which extrava gant rentals are paid lessen the available net income." "Only five applications were pre sented _to the commission for the approval of contracts and agreements. Only one was similar to the numerous leases of the Metro politan system in the past, and that was dis approved."