The Texas Republican. [volume] (Marshall, Tex.) 1849-1869, 1854-11-25

Company. has FLED a Pro.es'. and say,
thai tie Company r'H Proceed 70 bh"a
80'd' =.
By Thursday evenings mail, we received
a supplement to the Austin limes' oil "'e
llth, containing the correspondence IN iul
between James H. Raymond. Treasurer
and GOV. Pease. in relation TO the Deposit,
together with the evidences OF its value ac'
companying it. The whole matter, as thus
Sc, forth, occupies sbou, thirteen columns
of the Times. We lind ourselves, at this
late hour. unable to furnish even full
synopsis OF its contents. and shall have 10
state briefly the outline OF the matter, and
lay It over until our next issue, when we
shall publish it entire.
The following was the deposit offered
lst. 4 certificate for twenty four thou,
sand shares in the preferred stock of the
Sussex Iron Company Of \. Jersey. valued
at $500 900.
"a. As additional security, a certificate
Tor | | 500 shares of the s,echanics' Bank
Of Memphis, Tenn, amounting to s2a>,'
600, and also two certificates of New osS
State stock, for one thousand dollars each.
The So 1000 in New York State stock
the Governor considers acceptable, ard
such stock rs the law authorizes to be re-
coyed but the other stocks are not such
as, in his opinion, the law requires to be
deposited. This is bis main objection to
the deposit. lie says: They the Les
gisla,urel could never have intended that
this deposit NIGH, be made in the capital
stock Of bank or manufacturing company,
which is merely the fund or property ems
ployed in the business OF the corporation,
aud its value Is dependent upon the iluctu-
atoms and casualties OF trade, and may be
entirely destroyed by misfortune, misman'
ngement, or fraud Of the directors and Off
GERS" The assignment Of these stocks, he
says, reNuffs ibe State NJ ohce part
owner of the stock and property belonging
to the corporations" which he considers III
violation OF the State Constitution, which
provides that "the State shall not be part
owner Of the stock or property belonging
to corporations" =" The State, therefore,
he continues could never enforce II for
feiiure Of these stocks, because forfeiture
of them could not take place without the
Stat. becoming a part owner OF the stock
aud property belonging TO the corporations.
which Is absolutely prohibited. lie exN
presses surprise that Ncssrs Walker and
King should have offered such stocks, when
he d linety informed them in Angus, last,
that the stocks Of no private corporation
could be received.
He next contends that these stocks are
not transferred in the manner required by
the contract Both OF the certificates state
on their face tina, they are transferable
on the books OF the corporation, and yet
neither OF them are so transferred Each is
accompanied bya written transfer, contain
ing n blank power of attorney; but there
is no evidence showing whether the rules
and regulations Of the company permit
transfers to be made in this manner.
The capital stock of the Mechanics
Bank of Memphis is limited to $500. 900
The State Of Texas, by the acceptance of
this deposi, of ia stock, will become the
owner OF s29s 900 of 1t, ard, according to
its charter, be liable for all the issues Of the
Bank and all the deposits made in il. SO
far from the stock being a security to the
State, the acceptance or transfer of it might
create liability agains, the State for an
indefinite amount, in case of the failure OF
the Bank, or the Encouragement or fraud
of the five directors OF it, holding only two
thousand out of the three hundred thousand
dollars which is the capital of the Bank.
The prefefed stock of the SUSSEX Iron
Company of New Jersey. seems 70 him
equally Objectionable, There is no evi,
dence before him showing the authority for
the issuing of this preferred stock. aud the
inference is that it has been done in viola
ton of its charter. and therefore not bind>
ing on the company, This organization
has, according to its own estimate, property
only to the amount, OF Si22 900, though the
company expect profits on railroad iron,
etc, in the next twelve months, estimated at
81, Dos 600
The certificate of the Governor OF New
Jersey simply gives his opinion Of the value
of the stock, while the certificates OF Geo.
VI. Dallas and VIM Kent, express no opin>
ion Of their own in regard to its value.
They merely state that "havins examined
the certificates Of the President and Gov,
crnor, they are OF the opinion That dcposi.
Of this stock will be compliance with the
law requiring the deposit"
Such. in brief, are the objections of the
Governor to the reception OF tho stock
shorn, however, Of the elaborate reasoning
aud strength with which they are sustained
To this Mr.. Raymond replies in an able
and lengthy letter, which we have no, the
time in this issue to condense.