Page:United States Statutes at Large Volume 49 Part 1.djvu/865

820 Orde rs granting or denying approval . Notice and hearing . Amendment of ap- plications. Terms and condi- tions respecting acquisi- tions ; authority of Commission to pre- scribe . Approval denied until state laws com- plied with . Ex ceptio n . Holding-company systems. Duty of Commission to examine corporate structure of. Purpose. Duty of Commission to require limitation of operat ions to one int e- grated public-utility syste m . Proviso . Exception upon spec- ified findings by Com- mission; notice and hea ring . 74TH CONGRE SS . SESS. I. CH. 687 . AUGUST 26, 1935 . ( d) Wi thin such reaso nable time afte r the fili ng of an a pplic a- tion under this section as the Commission shall fix by rules and regulations or order, the Commission shall enter an order either granting or, after notice and opportunity for hearing, denying approval of the acquisition unless the applicant shall withdraw its application . Amendments to an application may be made upon such terms and conditions as the Commission may prescribe . (e) The Commission, in any order approving the acquisition of securities or utility assets, may prescribe such terms and conditions in respect of such acquisition, including the price to be paid for such securities or utility assets, as the Commission may find necessary or appropriate in the public interest or for the protection of investors or consumers . (f) The Commission shall not approve any acquisition a s to which an appli catio n is made under this sect ion u nless it a ppear s to the satisfaction of the Commission that such State laws as may apply in respect of such acquisition have been complied with, except where the Commission finds that compliance with such State laws would be detrimental to the carrying out of the provisions of section 11 . SI MPL IFI CAt iON OF HOLDING-COMPANY S YST EMS SEC . 11 . (a) It shall be the duty of the Commission to examine the corporate structure of every registered holding company and subsidiary company thereof, the relationships among the companies in the holding-company system of every such company and the char- acter of the interests thereof and the properties owned or controlled thereby to determine the extent to which the corporate struct ure of such holding-company system and the companies therein may be simplified, unnecessary complexities therein eliminated, voting power fairly and equitably distributed among the holders of securities thereof, and the properties and business thereof confined to those necessary or appropriate to the operations of an integrated p ublic- utility system . (b) It shall be the duty of the Commission, as soon as practicable after January 1, 1938 : (1) To require by order, after notice and opportunity for hear- ing, that each registered holding company, and each subsidiary company thereof, shall take such action as the Commission shall find necessary to limit the operations of the holding-company sys- tem of which such company is a part to a single integrated public- utility system, and to such other businesses as are reasonably incidental, or economically necessary or appropriate to the opera- tions of such integrated public-utility system : Provided, however, That the Commission shall permit a registered holding company to continue to control one or more additional integrated public- utility systems, if, after notice and opportunity for hearing, it finds that- (A) Each of such additional systems cannot be operated as an independent system without the loss of substantial economies which can be secured by the retention of control by such holding company of such system ; (B) All of such additional systems are located in one State, or in adjoining States, or in a contiguous foreign country ; and (C) The continued combina tion of s uch syst ems under the control of such holding company is not so large (considering the state of the art and the area or region affected) as to impair the advantages of localized management, efficient operation, or the effectiveness of regulation .