Northwestern Electric Co. v. Federal Power Commission
Opinion
Lead Opinion
Haney, J.
Review is sought of an order of the Federal Power Commission.
Petitioner was organized under the laws of Washington on January 7, 1911 by two San Francisco financiers who desired to acquire a water power site to develop electricity for a paper mill in which they were interested. The promoters advanced $175,-000 to petitioner for the purpose of acquiring water power sites, which amount was repaid on May 13, 1912 with interest. Petitioner thereafter decided to enter the utility business in Portland and vicinity to utilize the power developed in excess of the paper mill’s requirements.
On March 14, 1911, petitioner’s Board of Trustees issued to the promoters 50,000 shares of the $100 par common stock, and on May 14, 1912, petitioner’s Board of Trustees increased the capital stock of petitioner from 50,000 shares of $100 par common to 100,000 shares of $100 par common, and issued the additional 50,000 shares to the promoters. This $10,000,000 of common stock was not recorded on petitioner’s books until January 31, 1914, when it was entered in an account entitled “Land and Water Rights” and a corresponding credit to “Common Capital Stock”.