The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-06-03

for circulation. by act Of the-asnersl Assembly Of
the l4th q March 1895 entitled an act TO prohibit
the circulation Of small bills the Auditor OF State
in the first section is directed to draw in favor Of
the state treasurer. upon the several banks OF the
their dividends which the State Treasurer is required
TO collect The section however contains this proyiso
That should any bank in this State prior the fourth
day of July next with the of stockholders by
instrument of writing under its corporate seal adj
dressed 10 the Auditor OF State surrender the right
frred by its charter to issue circulate notes or bills
of less denomination than three dollars aft the fourth
day Of July eighteen hundred and thrty-six and any
notes or bills Of less denomination than five dollars
after the fourth day OF July, eighteen hundred and
then and In that the Auditor of State
shall be authorized to draw such banks only for the
amount OF e per cent upon its dividends declared after
the surrender Aforesaid
At the time of the enactment of this law, the Ohio
Life Insurance and Trust Company had the power under
its charter to issue bills of less denomination than
FIVE three dollars In fact 1t not at all restricted
in this respect 1t was one Of the banks of the State
and To it. well others was the proposition made
On the Goth Of June 1896 at a meeting of the stock
holders Of this company it resolved consent upon
the consideration contained in the aforesaid act to
render the right to issue bills of less denomination than
three and five dollars after the respective times specified
in that act in pursuance Of which resolution the right
actually relinqushed in the form and pre-
scrbed in the act the 2d day the same month of
June ofwhch the Auditor OF State was forthwith mott
fed.
1t is claimed by the company that there was contract
between the supreme Of the State and this
ration The corporation had the right and the power to
issue bills of less deno mnation than five dollars The
State through its General Assembly, say to it, surrender
this right and in consideration thereof the Auditor OF
State shall draw upon you only for the amount of five
per cent dividends declared subsequent to such
surrender The proposition Is considered by the stock
holders of the company and is acceded to- The
der is made required and the proper officer Of State
notified.
Had this been transaction between individuals, no
probably would have doubted that it contract,
and contract too upon sufficient consideration, per-
formed by of the contracting parties. Whether the
fact that the State itself is party to the transaction
make any difference, is question for the judicial tribu
nal of the country and il would to be desirable to
all interested that this question should be determined
possible.
Should 1t be determined that this company is liable to
this additional taxation the interest Of its stockholders
will require that the business Of the should be
cosed US possible. The capital invested will no
longer yield reasonable profit and will of seek
investment in some more advantageous business. At
least such woud to be the reasonable expectation
All of whchis respectfully submitted.
:. p. HITCHCOCK, Special Master Commissioner.
May 10. 1852