refunding bonds are a legal investment under the provisions of subdivisions (a), (e), or (f) of this section, provided the payment of principal and interest of said bonds is guaranteed by endorsement thereon by the company so owning and operating said road, and further provided the mortgage securing said bonds does not authorize an issue of more than twenty thousand dollars in bonds for each mile of road covered thereby. But no one of the bonds so guaranteed shall be a legal investment in case the mortgage securing the same shall authorize a total issue of bonds which together with all the outstanding prior debts of the company making said guarantee, including therein the authorized amount of all previously guaranteed bonds issues, shall exceed three times the capital stock of said company, at the time of making said investment.

Not more than twenty-five per centum of the assets of any bank shall be loaned or invested in railroad bonds, and not more than ten per centum of the assets of any bank shall be invested in the bonds of any one railroad corporation described in paragraph a of this subdivision, and not more than five per centum of such assets in the bonds of any other railroad corporation. In determining the amount of the assets of any bank under the provisions of this subdivision its securities shall be estimated in the manner prescribed for determining the per centum of surplus by section one hundred and twenty-four of this act. Street railroad corporations shall not be considered railroad corporations within the meaning of this subdivision.

See chap. 406, Laws of 1901, and chap. 295, Laws of 1902, ante; and acts which this act amends.

CHAP. 723, LAWS OF 1905.

AN ACT to establish a state water commission, to define its powers and duties, and making an appropriation therefor. SECTION 1. The governor, by and with the advice and consent of the senate, shall within fifteen days after this act takes effect, appoint five citizens of the state, one of whom shall be designated as president to constitute a commission to be known as the state water supply commission. Any three of said commissioners shall

constitute a quorum for the transaction of business. The commission shall make necessary rules and regulations for the proceedings hereunder.

§ 2. No municipal corporation or other civil division of the state, and no board, commission or other body of or for any such municipal corporation or other civil division of the state shall, after this act takes effect, have any power to acquire, take or condemn lands for any new or additional sources of water supply, until it has first submitted the maps and profiles therefor to said commission, as hereinafter provided, and until said commission shall have approved the same.

3. Any municipal corporation or other civil division of the state may make application by petition in writing to the said commission for the approval of its maps and profiles of such new or additional source or sources of water supply for such municipal corporation or other civil division of the state. Such application shall be accompanied by an exhibit of maps of the lands to be acquired and profiles thereof showing the sites and areas of the proposed reservoirs and other works, the profiles of the aqueduct lines and the flow lines of the water when impounded, plans and surveys and abstract of official reports relating to the same, showing the need of such municipal corporation for a particular source or sources of supply and the reasons therefor, and shall be accompanied by a plan or scheme to determine and provide for the payment of the proper compensation for any and all damages to persons or property, whether direct or indirect, which will result from the acquiring of said lands and the execution of said plans. Said commission shall thereupon cause public notice to be given that on a day therein named the commission will meet at its office in the city of Albany, or at such other place as it may particularly specify in said notice, for the purpose of hearing all persons, municipal corporations or other civil divisions of the state that may be affected thereby. Such notice shall be published in such newspapers and for such length of time, not exceeding four weeks, as the commission shall determine. At any time prior to the day specified in such notice any

person or municipal corporation or the proper authorities of any civil division of the state may file in the office of the commission at Albany objections to the project proposed by such application. Every objection so filed shall particularly specify the ground thereof. Said commission shall, upon the day specified in said notice, or upon such subsequent day or days to which it may adjourn the hearing, proceed to examine the said maps and profiles and to hear the proofs and arguments submitted in support and in opposition to the proposed project, but no person, municipal corporation or local authorities shall be heard in opposition thereto except on objections filed as authorized by this section. The commission shall determine whether the plans proposed by such municipal corporation or other civil division of the state are justified by public necessity, and whether such plans are just and equitable to the other municipalities and civil divisions of the state affected thereby and to the inhabitants thereof, particular consideration being given to their present and future necessities for sources of water supply, and whether said plans make fair and equitable provisions for the determination and payment of any and all damages to persons and property, both direct and indirect which will result from the execution of said plans. Said commission shall within ninety days after the final hearing and with all convenient speed, either approve such ap plication as presented or with such modifications in the plans submitted as it may deem necessary to protect the water supply and the interest of any other municipal corporation, or other civil division of the state, or the inhabitants thereof, or to bring into cooperation all municipal corporations, or other civil divisions of the state, which may be affected thereby. Or it may reject the application entirely or permit another to be filed in lieu thereof, but it shall, however, make a reasonable effort to meet the needs of the applicant, with due regard to the actual or prospective needs and interests of all other municipal corporations and civil divisions of the state affected thereby and the inhabitants thereof. Whenever the commission shall make a decision on any application submitted to it by any municipal corporation or other civil

division of the state it shall state the same in writing and sign the same and cause its official seal to be affixed thereto and file the same, together with all plans, maps, surveys and other papers or records relating thereto in its office. The decision of the commission and its action on any application may be reviewed by certiorari proceedings. The expense of any such hearing and determination by the commission shall be certified by said commission to the municipal corporation or other civil division of the state making such application and shall be paid by said municipal corporation or other civil division of the state to the state treasurer within thirty days thereafter.

§ 4. Said commission shall have power to subpoena and require the attendance in this state of witnesses and the production by them of books and papers pertinent to the investigation and inquiries authorized and to examine them and such public records as it shall require in relation thereto. And for the purposes of the examinations authorized by this act, the commission shall possess all the powers conferred by the legislative law upon a committee of the legislature or by the code of civil procedure upon a board or committee, and may invoke the power of any court of record in the state to compel the attendance and testifying of witnesses and the production by them of books and papers as aforesaid.

§ 5. The commission shall have an official seal. The term of each member of the commission shall be five years, except that the members of said commission first appointed shall hold office respectively one for one year, one for two years, one for three years, one for four years and one for five years, and as the term of each commissioner expires or otherwise becomes vacant his successor shall be appointed in the manner hereinbefore provided for the appointment of the original commissioners. The members of the commission shall not receive a salary, but shall be paid their necessary and reasonable expenses actually incurred in the prosecution of their duties, and may also receive a just and reasonable compensation, subject to the approval of the governor, for the time actually employed by them in the work of the com

mission. The commission is hereby authorized and empowered to employ a secretary and such engineers, stenographers, clerks and other subordinates as the duties imposed upon them by this act may require, and to fix and pay the reasonable salaries and expenses of such officers, and of all other subordinates for the purpose of proceedings by them under this act, subject to the approval of the governor.

§ 6. In addition to the powers and duties heretofore conferred upon it, said commission shall immediately after its appointment proceed to make an investigation and report to the legislature as part of its first annual report hereinafter provided for, concerning the available sources of water supply in this state, the respective purity and quantity of each source of supply and the availability of each to be used for localities other than those immediately adjacent thereto. Said commission shall also investigate and report at said time the present water supply of each municipal corporation and other civil divisions of the state to ascertain the present and future needs of each of said municipal corporations and other civil divisions of the state, and the supply therefor, and the purity of each of said supplies. Said commission shall also report the present dispositions of sewerage of each municipal corporation and other civil division of the state, and, if necessary, of adjoining states, with special reference to said disposition affecting the various municipal corporations and other civil divisions of the state in relation to the water supply of this state. Said commission shall also report the advisability of, the time required for and the expenses incident to, the construction of a state system of water supply and for a state system for the disposition of sewerage, if necessary, for all or any of the municipal corporations and other civil divisions of this state, and make such recommendations connected with the subjects of said investigations herein provided for as said commission shall determine. In said investigation concerning either the water supply or disposition of sewerage, said commission shall, so far as possible, make use of all reports and surveys in regard thereto. which have heretofore been made. For the purposes of such