§ 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, in
violation 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.