The daily Butte record., 1858-08-14
The Lev.

lne general incorporation law. prevents in
corporations nfrom contracting debts over
the amount actually paid in or expended by
the company. Our correspondent, we pre-.
sume, has reference TO the following section
of the general law authorizing incorpora-
tions. We give it entire in order to show,
that company can contract nm indebted
ness over the amount of capital paid in or
expended, by the Directors becoming per.
sonally liable.
Sec. ID. The total amount OF the debts
which any Incorporated company shall owe.
shall not at any time exceed the amount
Of the capital stock aetPa!y paid in and in
case Of my excess, the directors, under
whose administration the same msy have
happened, except those who may have eau.
sed their dissent therefrom to be entered A.
large on the minutes Of the said directors OF
the time, ard except those who were not
present when the same did happen, shall, 10
their individual s. private capacities, joint
ly and severally be liable for such excess to
the said corporation, and in the event Of
its dissolution, 10 any ofthe creditors there
Of TO the full amount Of such excess, with
legal interest from the time such liability
accrued, an1 no statute OF limi alton shall
be Il bar to any suit against such directors
for any sums Of money for which they vre
made lisble by this section.
This 10 a section of the general law gcv-
erniDg iDcorporations. Let US zee what the
law regulating the formation Of Railroad
companies, says upon the subject Section
fifteen Of the latter act says
Sec. 10. Such companies, after at least
ten per cent. on all their capital stock bas
been paid in cnsh into the treasury Of the
corporation, ,hall have power to borrow
from time to time on the credit of tho cor
poration. and under such restrictions as
tvo-thirds in interest Of the stockholders
my impose. such sum or sums O! money,
not excet ding n all the amount of its cali
tai, as mny be necessary for the oonstruc-
ton and equipment of their road, at a rate
OF interest not exceeding ten per cent. er
annum. and to execute bonds or pr,misoty
no es therefor, in sums Of not less than Que
thousand dollars in my one note or bond,
and secure said notes or bonds may mort
gage their corporate property and franchise
and pledge the income OF the company.
1t will thus be seon that the law regula-
ting the ipctrIo,ati Of Railroad compa.
mics, permits such companies to contract
debts to the nrount Of their capital, and
does Lot ceLfne them TO the amount Of cop
ital actually paid in or expended
To remove tic iuco consistency Of the pro-
visions Of Il csc two acts. section forty. five
Of the net governing the incorporation Of
rail road ccmT nDies, rtpsals the 14th sec
tiOn Of the general corporation law, as fol-
lows:--
Sec. 40. All corporations that mny he
formed or organized under this act, shall be
subject 20 the provisions Of chapter one of
an Act entitled "Au Act concerning Corpo-
ratiops," Thssed April twenty -second, one
thousand eight hur d, ed and fifty, 80 far as
such provisions are not Inconsistent with
this act.
Instead Of f"our letting down" on this
point. VIC think We have been sufficiently
explicit to convince our esteemed CORES
pondent that tho law "lets him ont, and
shows bis error to be . material ore. as j,
wns calculated to misinfo'm the public con
cerping the responsibility Of rail road COM
panies.
again. our correspondent 10 in error in
supposipg that the commissioners appointed
by the act have anything to do with the
fvc sections relating to the railroad. They
arc appointed and paid to locate and con-
ctr uct a road from Orovills to Mendenhall's
Ranch. and thence TO and beyond the Bid
we'll Toll Bridge to the toll roads Of Plumas
county. The act distinctly marks out the
route they must follow. and the author Of
the bill might just rs well have shouldered
on NJ and blazed the stumps and trees. and
attach I'd a penalty Of fine and imprisonment
II the people Of the county should locate the
road upon any other route than tie one he
blazed, rs to have tied up the commissioners
in the manner he has by the provisions OF
the net.
The desire i" to swap Jackets" with the
county. is ipcres,ed by the fact that they
expect TO exchange n bankrupt garment
for one, the pockets Of which are plethoric
with bonds and ecrip.