**OFFICE OF**  **THE Al-fORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

mnombls % @. hrme srsr8tiwyor mata Awtln, Texas

naar Sir: Attnt Mr. QaodrA. Qlllanr

b am in maaipt 0

mant and sa

* (d) %I apltnl rtlll ea&Mbla $6 - 6371,039.00,

wllhirh is 6aourit~ tar debanturer irsrmd 

### aaountbq to 

### '3&6,656.%

### 132

“The oomgany contandathettha eubaerlb.6 

### 6apltalstook 1s $974,000,00 and 

### that the 

### aapltal emountbg to ~~,QO.OO, subjaat **to aall,**  **ir, not**  

### aub$mt to filingfws or fmnchlsr tama, their 

### oonhntlon being that $ll&,961.00 adveneod

### ova? **end abars**  **$20.00 pr**  **ahen ia**  **la** th8 **natuu of**  **an ebmno~wnt**  upon **whtah** intanst **ia pold**  **aal** 

### that tba eepltel 

### aft11**eallael~ la**  **not Qa**  **b We**  **atookhcildorrr aa**  **atodr** 

### aubsarlkd until **the aI**  **me tom**  0al.lfor l



### uoh 

## payrqnt.The aanpany*8armmont la thatnndar thr +~liah bn tbauorrat aabrarlbrd ahoald be ddmmlned 81) tha ammat called by the Ulrwto~. end tbrrt uattl e sell ir maa for the unpaid 

### portioa, then 

### w Iy)

lk

### b%lltyoSthepart of'tba8tookEoldara for ttn ’ lmlanos or the otoak subeoriptloa, 

### heme.M ill- ', rps tea ahaIM ba 8tmO8smd $grlmt 

### thlo portion 

### ,oi the &O&c. &I etlpport of thair

## oonteutiorl ueorpts-fraaa rasolution parwd by tha Board :of @ra6tcim on Gbrtmry 1, I.867 a#~# from the

*FM also aall youratkntlou 

### tQ the paialon8 00nkfnsa'on **tialaa or**  **+a800**

T 

### IS 9, 11, 15 16 and 35 of the kl?- **tion filed**  **in thle**  **offi la**  

### 1929 oonaem~'tho neton or thisstooli

*%tt Will ObEm'Vu 

### that in ti.& X4Wl6ll816 Of 

### 'pa&c&t datedOotober25,.1929 ~Srptambar

18, 1909,and 

### uaow b **October** let, 

### 1919.9 r 8, l899, statematawara mad0 thetallof tha c8gitalsto0km5 

### mb-mxrlbed

and 

### l ppmx$zStoly 755 $hclnoi #Sd In, and rilsng reas paid 

### on tin ant%ra 

### oapltelstimk. *'iJa, theMrin% roquallt 

### you? oplalan e8 to 

### whloh or 

### t&e roll& 5alomta oar tlllssfwe shellbe besedr

### ~22.u.0. Flowsra, I~af30 3

Wa also raquaat

your~opinion

aa to whlah oftha 

### following

EUW oar Smnahlw tarwIllba euaeaed :

&et 

### pert of ~l%laIa39u; %Tlead txvil 

### BtelM85, 1925, as l ~~~ndsd, Aata 1931, 

### p* 204, a. 120, providbg irrr the flllrrg

to* of a fora&n 4orporatlon to rea3sw

its **right** 

### to a6 boelaaeafjl **%.a.,** 

### rsadsaa fonowst "Upon obtainin&

a pa!mlt

M(Xw ArtloU
l 

### mmdmnt 8 au lamat uqd4rArt1 0 1537, *aoh 1529 and upon,~~ng a arrtl.fiad ogy of any
pey the roll.o~ing

rue **atblttad to**  **d0 an** 

the 

### ~eod wpN.l etosk w tazabb 

### shellk thet propozt~oBrr ttia~rholr tbalmr, l

### 8 tha -8 lS.St b

Saip T 

### inwhole orlnprt in ln%mxata~ bualMu in MS* plus tha groaa 

### rawi to 

### tzaetatk‘prxae

baefnose,

baar to tea 

### am

e rrol8

Inirr ssaatu and 

### reoelptaof tho aorpom&tIqn.3,n th4 ~56111s

ot e ba@nuar~arporatIoaobtainingapotit tci do **btmiarae In**  **True for**  **tha** 

### first**tlm, mhara**  

### It thy beeta fllirg rro or rfitg $sa.OOl

### Dollars hre **tlmrs$OfOr. .5@0~4**  **BO Upi++**  &oak **in -w,** 
**shell bs**  **p&d 66**  **harsinebove pmlaod**  **end wlthln**  **ninety (90)**  **day6 aft4r**  **th4** axplratlon **of the**  **first** per tandar Ita pamit, tb oorp0mthOn 

### efulll fil* an affidavit

with t&s 8eomtWy Of 

### Stata SXSOUtSd 

### b? OM ct its exeeutits 

### ofriwrrr, ahaPiz@the ewurAt of gross am&o omploya4 in nilo1a

al- sn part in Lntreateta

buaineaa

**iB** Taua and 

### the WOW% of **ita** 

### wtlrq **grow maoto**  **at** the 

### and o? auoh iint mar With uS&otbar data **mquire4 to**  **oalaalda** thafa* **ltlrd rf~eiiuh**  tirps **shell ,pay**  **to the**  **s.OMtrrp or**  **bets** 

### tbabaia~rtbaril~~ronthapr~wa of ifs leeuadotkpltal etoakas banlnb&ore **dobr-** 

### &tad, +I exeau ol Tan ~o!seand lsn at,thamto of rcln **edditioanl** %B **%OUrWnd** fm4tlOaal 

### part of euoh y6ar of th4 llfa of any

### 1.34

non. 40. %warat %gr 4

oapltil

atook 

### 18 laauad **andrr an**  **ammdmant**



### e vldodb~in forth 

### .paymntonthr mm&e tha wee 

### of a ,bsginnsr 

### earpomtlon;We& tbet~thsrinlqmflllng fi*toPr-:uyman~tor eapplaarnt'abalXbr yifty ~4WO.00)

iJoilen. .&an the l

### aaato

### l

mplayadin Tume.am used 

### jointlyin.
oalmlating &mhfaar ar.tha lntreatak~~Prp8 ra

### mlpte bmrtotha lutaretete 

### Tazeeneipta fror t&n onfirs 

### opsmtio~ in Tsxae,a
ArtLI& w&,, R@r emandsd,

**Aota** 

### X931,~~~

Ul; l 

### d Giw Stat&as, 1925~as followe: 265*'Osoridmj 1~ 

### mrt, l

### e
"(a) .%Osptas ha&la prorldod, wry domeetloendrarnignoorponts0nhrntoio~ or hsroei%er

ahabred ox mathorlmd to do. buehsea 

### ~in.‘foxoe,

.shell, ‘tmor **bsfors** 

### %ay lstbfwahyaer~ py ias(ltanootothe Baoytery of stat4a 

### fnmohieo tau for the.yser ~llawing, baa.4npanth.t pmpmblonoftha outstending 

### oapltal



### l b&; marflacand mdirldd 

### proflta,

plna ths amount 

### .ot

cwtatanding bonds, notae end dabentume, other tbsn 

### thornamtaringlnloaa 

### than a 

### y8ar from data 0r leaua, 

### as the grvae 

### nulpte m its bus& MU don6 InTexes bsareto the 

### tctmlgroee raoslpta

of the sorporatlon

?roa lta 4ntlrs bualnsea,

### yh+oh~taCehellk wmpatrdattha fomwdng mtaa 

### fok 4e4h~&as a0ttuha’

### JJeQmru. (#l,000.00)

nor traotlqnai?plqt 

### thamof&g~. ~.a,' 'Wd do not aederatand

your raqr;r~at

as lntwd& ti 

### m&w your

ur partimntel

wnatmmtiask 

### of tha 

### l ~tietutee,

dnss .thrXr 

### l na&mant, wlsioh

18 bees& 

### Upon&i AttWay~&mr&*r &t:*At %rB4

MT zt;: "Ly$nEh";t";w'-&=i ratiLc am6 Court 

### of lkxae, &etsa’A~lI l2 Oplnlona

**and** 

### hp. 19l6-1918, PI t2l *lg7~y&~9~~‘*~* 

### thet-uplhl atwk of uld oorp4wt~on i5euaa, anu 

### ou$&eiullBgJ'm6eBtt<partOftha alhorlsad'oaltal rsook:~oh be& boon aubaarlbad 

### althwgh not fully#8 **% ,+n**  **ax4** qtibjystto 0311. ml- the ;w:Fasea 

### cf thlit; 

### opinion vfa roaept 

### you* lo@! aatsblinhad

tlapartPPsnta1

construotiono?



### thesestatotas ar& conoldsr 

### tba umtantionacf tka taXp9yartnatbaaaasaof ths %&Uh leave appllaabia

to aa& o

y-t-b **the full**  **amount of**  

### ltc **atook** 

### ahonld**not be**  **OOIU** 

### damd for tnxatlon

or ~iower fu purpouai ~pparantlg

unbar thr ?pn4ieblmf mombars-of the -&lmltad

.Caapnyare laausbcwrtlZlaeko 

### m tha totalpax v6xu0 0r the. 

### shams eub8aribad uponpeymantof a-put 

### or all of 

### the par olrlna,

in this lnebn~.a rOur poandr on 8ls pmnb 

### prvalua *took,laavln6 two poanU5par alnraaapald ?or **,wblah** the **nubsetiber ia**  **subjrot to**  Gall. **TJM rtooktmldar**  

### wy notpayup thaunpalt¶ 

### partlono~hls uteok.%n the ebe4nw of .a0al.l

or 

## wlthatt

the 

## wne8nt

of 

## the.#lrwto~ ~4 

## -It 15 ala0pr4tv$hd that 'adv4nwelay In rada by the 

### etocDk- :holdare

a6.apnpaymnt~a&aimS fNmra.oallron thaw ap- ~pald atouk;ahanautho~aad bytha‘dlrabtam. Tbaa 

### pra- **,pajwant8 ~alfkst~eall5**  **am** notwmlUu8d **u paynnte**  **ap0.a** 

### the ntocdc

in its strictuan&o.bat ara aotxeldand mra in tha DBturwof a loanup00whloh-~&tanat1U~gald end ln tha **wont 6.~** **aall is**  **Pada, or**  **tlm oasporr,**  tlon la diuo2wtl ‘and 1 t, bewmw luoMury 60 '8nfQrM. ulle ior um ~benaat or oeditimt;~th6'~rpDont shaact*d is 0raua64 me 8n 

### o??a*t' ~O&BinBt;

UCh Oti 

### to the 4X@JBt HO?th@ pm$Bwt. tbldU **the lmv@**  **o$ Tsua-e**  **eorpontio@may not**  **lam&m &40kapanB:** 

**9vetiy such**  **sabaerlbrr baoumm**  **a ’**  **numbs** lpw **faato** on 

### the inoozporatl8f1 OS tim umpad~, and ltmblias WB hoxdsrO?+Lrtavar mmbar 6? #~IWO~ha has.at~baorlba.?w. 'l'ha 23rll SeOtiw~ **LO? Wr**  **A5t** Of **1862 &OP**  **Wbhh IW@%**  **asd &**  

### the

.~aum of awoalation in n airrum 

### 'ay 00 .th4 poaltion

o? otherparwna 

### uht'agxa~'~ km' ~JOR&MS. *l[t

I5 pAin?. ea%d Lord blue ti i!van' c4.a (lHi7);

L.R. 2'Ch.hpp. 430, 't&H the orS&kaiaubaorlba~eara, ,by the 

### &t Of 

### Pi* llhR4ant,

de&maQ to mars trrlcen tb* rharcl0

mt.O;r 

### poeltathalr1181~~1'; the **Ob** 

### Mt3" **et** 

### ba@ that tha publla&&tralylrlthc~~~ aanoamthaaabsor~lbepa

br the ~~cswa~Atun btmml+ mwWn ofuse ooRip3ny. r\nd a44~wgottl'5 oaw, 4 zq. 238,



### In thhr 88~ of the eub64rib4ra of t&a 

### aeaorandum, tbsn3rmr, no auotmnt ir nrorsoary tna 

### London and ~?rorlnoial,

& c;O. j Q. Ah 525)J'noaIrtry on fh9 M#@~T Of 6@6b0rS 18 n4046rrlllf. ~f0hOl'S 

### oeme,eupra ~luandsr v. ktomstla Tel* honr co., .(19OC,1

%. 63. The subseribar ir **ihand** 

### to take tha.ah8qus

fraa f&e 8omgs4, and to pay **fortheron** 

### oallsdulyasda1Ura any 

### otharnhanholder." Vhe ta3aavi thePat of 1929 'and.%a** tSdnlir

the pr0v1810im0r O40t8. 28 and **157,** 

### lra*sno doubt,ln'tiha oaae oi a'ooaplq,

Mt. Ml by Ilhera~,

abouttha obll&atlon or 

### shnhel&er'a to pey'to 

### the Ocmpa4 the fkll 

### amotint of thar tlhama. 2% worda of .Mm 

### dotie xbit-

%06 

### tha foregoIngit appmrm. that th4 *to& mm

### or the,full

amountottho #tookQsitrd brth5.aoor&wzatioa will only pi404 it upon'th ma4 foot- and b4als with 

### othoroorporattoxm

84 th4 at8tuM S.a

applladQr tha Se* Mtary Of 8tata*aofrima.

Path relF4Mnor

to prrpeynleat5 

### in Nmpsot of futura 04ll.8, Palaiar's

Goap~ny Law,A5tb 

### ~Rdtioh, &at-es at pnga 14G es followBr

### l.38

"Ey Lords, **I** ogrea, hatlon 7 of !l!abla A authorizes the direc:ors of 4 coqmny limited by shares to agrsa with any member for an **ad** vnnce of uonay on tha terms that the money so advanced is to b6 sppllec!la discharge of the member'8 llablllty on his aheres~when end aa thet liability .rlpenuInto a debt preeently payabls, en4 that in tha meantime the mmibnber is tc be t3e+itha tc lntaroat en th4 4dVt6xa aa if he ware an ordinary aredltor of the oom- .vaw. 'zheinterest la to **bs** due to him in tha character o$ orlditor, not In hls oheraatsr aa tmn@tsr

. ...

. 2
The member's advanoement against future oalls on hia stock liability doea not iri any wiay

mduae the amount or capital stock of the aoflpfjny, although uutll a eall Is 6ade tba prepctywnt hears Interest, lnatead of sharing lo the dlvlawls. The soncy~thus edVenced by the &o&holders against $lnlr 

### liabUl.t,p

on their atoak& oout~lbutep jwt ,aa muoh to the baai11888 potenoy of the company and represents a part of the aatwil available wing capital of %h~ aoupany 

### attrlhiable to aapital stock, whqther aharatierlzsd aa~a pre~ymant on future calla 

### or a present paprmnt on ths etaak ti con lets blllty ror the unpaid stoak,or subscti~~,on. P disaharga of liaAn addltloual conal4en!~~onarlsea, however, wl%h

'. refarenclt

to the raura 'Ilax

Satute, be~suea 

### or the feat thet Article 7064, as emended, Includes uutstenalr@ bonds, notes and debentures maturing onegear~@;mora fran date of issue, ae a part or the taxable Uapital of the OorpOWiloi%. zs this oese the members* tuqald llablllty on thelr etoak baa bean pledge4 by the cowany as aecwlty for Its debentures lseue4 amou&ug to $3.k0,656.00 

### and It ia au&w&ad by the ~aompany that if e call should be mad4 upon the unpaid portion of tha stock, a corres::onding, smq.&nt

of the dabenturas for+Itlch they ara security must also.be mid up and far that reStson the inclusion of both oallabla ctipltal and the Uebentures w&h in a aupm4tr aapitall~tlo~.~

If the ncceooltp ror ~rafltingtha dsbentures upon calling in ths underlyiug cslleble capital, which irr eecLu%Y therefor, arose out of the fact that the aabenturs holder@ would prcbably demand addlLt@tal seaurltp to raplaae this pledged stock, thfs 9fiaianot'ba naa6ssariJ.y trus. Kowver, we flna the follwlng provisloa in the comp~ny*s Artlalea of Aost3cletlont

"The total lnsue of suah bonds and debenturee shall hot at any tins excobd the amount of unpaid ~oapltal

. . . .*

### 139

*n. ii.0.**plOw6r6, rslrcl**  **9**



### zmaucra

of thlbpro*lslon,

theU6C688ity

for l-6- &talagthe **dabantarae** 

### whsn a ~11 1:; aPad@ upon uapai6 aaplt8l **is b8Mtt**  **Upda th6**  

### limitation **UpOn** 

### the Wit~ny'a **6UtibOC~ty to**  isetia bonda en4 dabenturaa an4 fltoe a mrlmum mpltallsatlon 

### ~@f bath &Oak an4 

### debmturra in tile awunt or **th6** par valu6 ai @to mbsotikd &o&. **Uo48r** tb68a uira~tena68, th6fW.l mwwto5th6 

### enderlyirg i4alZablo

oapltmil,

end the autatm4- ,ta(l da~knturor

noal rmalt in sattiag~ ap o **texebla.** 

### mpltal tn.rzoaes of **tfu** muW& llsit mbieh tin eorpontlon maid k math~66 to mch ooder It8 ahe@nr an4 tha lam oi its **dtU10~6, 8nb**  St **is OUr**  **Op~Olt** that **to #18**  8Xt6Ztt St **W0ltl.d in**  

### iBOt **l ’** **68illt in**  **8 &I**  

### by th6 

### fl'ttBahi@W

bX II

liGld.Oll **Of Qapital**  

### tlOt 00lltU4&&!4 **is** 

### tU **t8.**

It 

### la oar a Foion ?atiador

Lea4 snd C&t 6

P that 

### th6 tez8bl6 capital of th8 kquny, Ltd., for t&m purpo8r ch' OLtbt16tiXQ th8 WrpOMtion'8~ &W'Btt fizLn& f@O - b6 aoeeptrd on#l b6~,000.00, klngtbr fullaafmat ofth '&a&88 

### rabrarli8d

and in th6 h8nd8of atookbold6r8.

**!i?ia6@ t&O**  **@6BClhi58 tit2**  **%U b88Sd**  **UpOB -piti**  **dOOk,** 

### srplua and Pnlirid@d &WOfit8, 

### ati Wt68, bondemPd 4OknWrOr otlmr **then thoea**  **8utturhg lataa**  **than ozi6**  **par i**  6ak **of tMu0,~**  

### an4 W@ 40 lWt **&lY6 011**  **Of** thM6 **f&W68 k+on**  **tU W**  &tad **St6st6 tba:m**  MUint **at taaabl.6**  **aEpita1 tl&Wt**  **abhi4h** tb# -88.tE% 8hofild.k bead, hOW6'(*r, - t.TUUt

tbatth abcna 

### tlbwaeionrlll smblo you to aaqate the tax. YoalnYary truly