128 - Transfer of franchises, property or stocks.
§ 128. Transfer of franchises, property or stocks. 1. No franchise nor any right to or under any franchise, to own or operate a railroad or street railroad shall be assigned, transferred or leased, nor shall any contract or agreement with reference to or affecting any such franchise or right be valid or of any force or effect whatsoever, unless the assignment, transfer, lease, contract or agreement shall have been approved by the commissioner. No street railroad company shall transfer or lease its works or system or any part of such works or system to any other person or corporation or contract for the operation of its works and system, without the written consent of the commissioner. The permission and approval of the commissioner to the exercise of a franchise under section one hundred twenty-seven, or to the assignment, transfer or lease of a franchise under this section shall not revive or validate any lapsed or invalid franchise, or to enlarge or add to the powers and privileges contained in the grant of any franchise, or to waive any forfeiture. 2. No railroad company or street railroad company, domestic or foreign, or a corporation which owns or operates a stage, bus or motor vehicle line or route under the jurisdiction of the commissioner, shall hereafter purchase or acquire, take, or hold, any part of the capital stock of any common carrier organized or existing under or by virtue of the laws of this state, unless authorized so to do by the commissioner; and except where stock shall be transferred or held for the purpose of collateral security only with the consent of the commissioner, no stock corporation of any description, domestic or foreign, other than a railroad company, street railroad company, or a corporation which owns or operates a stage, bus or motor vehicle line or route under the jurisdiction of the commissioner, shall purchase or acquire, take, or hold, more than ten per centum of the voting capital stock issued by any common carrier organized or existing under or by virtue of the laws of this state, except that a corporation now lawfully holding a majority of the voting capital stock of any railroad company or street railroad company either directly or through ownership thereof by a subsidiary corporation may with the consent of the commissioner acquire and hold the entire voting capital stock of such railroad company or street railroad company or any portion thereof. Provided, that with the consent of the commissioner and upon and subject to such terms and conditions as the commissioner may fix and impose, any such stock corporation may acquire, take and hold more than ten per centum of the voting capital stock of any common carrier organized or existing under or by virtue of the laws of this state. No consent shall be given by the commissioner to the acquisition of any stock in accordance with this section unless it shall have been shown that such acquisition is in the public interest. Nothing herein contained shall be construed to prevent the holding of any stock heretofore lawfully acquired or, upon the surrender or exchange of said stock or said stock and bonds or other evidence of indebtedness pursuant to an agreement of consolidation or merger or a reorganization plan, approved by the commissioner, to prevent the purchase, acquisition, taking or holding of the voting capital stock of the new corporation organized pursuant to such agreement or plan to take over the property of any corporation whose stock or whose stock and bonds or other evidences of indebtedness have been thus surrendered or exchanged, or, subject to approval by the commissioner, to prevent the purchase, acquisition, taking or holding of any further issue of stock provided such further issue does not increase the proportion of voting capital stock held by such stock corporation. Every contract, assignment, transfer or agreement for transfer of any stock by or through any person or corporation to any corporation, inviolation of this chapter, shall be void and of no effect, and no such transfer or assignment shall be made upon the books of any such railroad company or street railroad company, or shall be recognized as effective for any purpose. The power conferred by this section to approve or disapprove a transaction relating to franchises, rights or stock of any common carrier, shall be exercised by the commissioner.