§ 128 — Transfer of franchises, property or stocks

§ 128. Transfer of franchises, property or stocks. 1. No franchise nor\nany right to or under any franchise, to own or operate a railroad or\nstreet railroad shall be assigned, transferred or leased, nor shall any\ncontract or agreement with reference to or affecting any such franchise\nor right be valid or of any force or effect whatsoever, unless the\nassignment, transfer, lease, contract or agreement shall have been\napproved by the commissioner. No street railroad company shall transfer\nor lease its works or system or any part of such works or system to any\nother person or corporation or contract for the operation of its works\nand system, without the written consent of the commissioner. The\npermission and approval of the commissioner to the exercise of a\nfranchise under section one hundred twenty-seven, or to the assignment,\ntransfer or lease of a franchise under this section shall not revive or\nvalidate any lapsed or invalid franchise, or to enlarge or add to the\npowers and privileges contained in the grant of any franchise, or to\nwaive any forfeiture.\n 2. No railroad company or street railroad company, domestic or\nforeign, or a corporation which owns or operates a stage, bus or motor\nvehicle line or route under the jurisdiction of the commissioner, shall\nhereafter purchase or acquire, take, or hold, any part of the capital\nstock of any common carrier organized or existing under or by virtue of\nthe laws of this state, unless authorized so to do by the commissioner;\nand except where stock shall be transferred or held for the purpose of\ncollateral security only with the consent of the commissioner, no stock\ncorporation of any description, domestic or foreign, other than a\nrailroad company, street railroad company, or a corporation which owns\nor operates a stage, bus or motor vehicle line or route under the\njurisdiction of the commissioner, shall purchase or acquire, take, or\nhold, more than ten per centum of the voting capital stock issued by any\ncommon carrier organized or existing under or by virtue of the laws of\nthis state, except that a corporation now lawfully holding a majority of\nthe voting capital stock of any railroad company or street railroad\ncompany either directly or through ownership thereof by a subsidiary\ncorporation may with the consent of the commissioner acquire and hold\nthe entire voting capital stock of such railroad company or street\nrailroad company or any portion thereof. Provided, that with the\nconsent of the commissioner and upon and subject to such terms and\nconditions as the commissioner may fix and impose, any such stock\ncorporation may acquire, take and hold more than ten per centum of the\nvoting capital stock of any common carrier organized or existing under\nor by virtue of the laws of this state. No consent shall be given by the\ncommissioner to the acquisition of any stock in accordance with this\nsection unless it shall have been shown that such acquisition is in the\npublic interest. Nothing herein contained shall be construed to prevent\nthe holding of any stock heretofore lawfully acquired or, upon the\nsurrender or exchange of said stock or said stock and bonds or other\nevidence of indebtedness pursuant to an agreement of consolidation or\nmerger or a reorganization plan, approved by the commissioner, to\nprevent the purchase, acquisition, taking or holding of the voting\ncapital stock of the new corporation organized pursuant to such\nagreement or plan to take over the property of any corporation whose\nstock or whose stock and bonds or other evidences of indebtedness have\nbeen thus surrendered or exchanged, or, subject to approval by the\ncommissioner, to prevent the purchase, acquisition, taking or holding of\nany further issue of stock provided such further issue does not increase\nthe proportion of voting capital stock held by such stock corporation.\nEvery contract, assignment, transfer or agreement for transfer of any\nstock by or through any person or corporation to any corporation, in\nviolation of this chapter, shall be void and of no effect, and no such\ntransfer or assignment shall be made upon the books of any such railroad\ncompany or street railroad company, or shall be recognized as effective\nfor any purpose. The power conferred by this section to approve or\ndisapprove a transaction relating to franchises, rights or stock of any\ncommon carrier, shall be exercised by the commissioner.\n