Volume 71 · 631
Public Law 85–309
To amend section 214 of the Interstate Commerce Act, as amended, to prevent the use of arbitrary stock par values to evade Interstate Commerce Commission jurisdiction.
Approved September 7, 1957
Statutory text
AN ACT
To amend section 214 of the Interstate Commerce Act, as amended, to prevent the use of arbitrary stock par values to evade Interstate Commerce Commission jurisdiction.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 214 of the Interstate Commerce Act, as amended (49 U. S. C. 314), is hereby further amended by—
changing the proviso in the first sentence to read “Provided, however, That said provisions shall not apply to such carriers or corporations where the value of capital stock or principal amount of other securities to be issued, together with the value of capital stock and principal amount of other securities then outstanding, does not exceed $1,000,000, nor to the issuance of notes of a maturity of two years or less and aggregating not more than $200,000, which notes aggregating such amount including all outstanding obligations maturing in two years or less may be issued without reference to the percentage which said amounts bear to the total amount of outstanding securities”: and
striking out that part of the second sentence which precedes the proviso and inserting in lieu thereof the following: “In the
Capital stock.
Value.
case of capital stock having no par value, the value thereof for the purpose of this section snail be the fair market value as of the date of its issue; and in the case of capital stock having par value, the value for the purpose of this section shall be the fair market value as of the date of its issue, or the par value, whichever is the greater:”.
Approved September 7, 1957.