The daily Butte record., 1858-08-13
rt,e lax

colcmn. 10 again In error, in stating that
the general incorporation law. prevents In
corporations sfrom contracting debts over
the amount actually paid in or expended by
the company. Our correspondent, we pre-
sumo, has reference to the following section |
# the general law authorizing iucorpora-
tions. We give II entire in order to show.
that compa' y can contract an indebted. |
ness over The amtunt Of capital paid in or
expended, by the Directors becoming per-
soually liable.
Sec. IA The total amount OF the debts
which any incorporated company shall owe.
shall not at any time exceed the amount
Of the capital stock actual y paid in and in
| cnsc Of any excess, the directors, under
| whose administration the zane may have
happened. except those who may have eau
sed their dissent tberefrom to be entered at
| large IN the minutes Of the said directors at
the tine, nGd except those WHO were no,
present when the same did happen, shall, in
their individual & private capacities, jliut
| ly aud severally he liable for euch excess to
! the said corporation, and in the event OF
/ its dissolution, TO any oftbe creditors there
Of 10 the full amount of such cxctsa, with
! legal interest from the time such liability
! accrued, anl 10 statute OF Limitation shall
! be a bar to any suit against such directors
for any sums Of money for which they vre
made liable by this section.
This is n section Of the general law gcv-
ernipg ircorI Iorations. Let us zee what the
law regulating the formation of Railroad
companies, snys upon the subject Section
fifteen Of the latter act says
SIC. Is. Such companies, after at lenst
ten per cent. on oil their capital stock has
been raid in en- h into the treasury Of the
corporation, slall have Jower to borrow
from time TO time on the credit of the cor
porntion. aud under such restrictions as
two-tl irds in interest oi the stockholders
~ y imIose, such sum or sums 0. money,
not exceeding in al the amount Of its caI
tai, as may be necessary for the oonstruc-
ton aud equipment of their road, at rate
Of interest not exceeding ten per cent. CT
annum, and 10 execute bonds or r,msory
no e. therefor, in sums Of not les than one
thousand dollars in any one note or bond,
and 10 secure said notes or bonds may mort
gage their corporate property and franchise
and pledge the income OF the company.
1t will thus lie seen that the law regula-
ting the iucerI OF ation Of Railroad compa.
nice, permits such companies to contract
debts to the amount of their capital, and
does 0, confnc them to the amount of cop
ital actually paid in or expended
To rtmCve a Inconsistency of the pro-
vision o.! Il csc two acts, section forty. Eve
Of the Gct governing the incorporation Of
rail road ccmI nnies, reponls the Nth Sec
tion &C the general cooperation law, as fol-
lows.--
Sec. Do. Az corporations that mny he
formed CT organized under this act. shall be
subject TO the provisions of chapter enc Of
an Act entitled "An Act concerning Corpo.
ratiors," nssed April twenty. second, enc
thoutapd eight butd' ed and ff'y. so far "a
snch provisions are not Inconsistent with
this act.
Instead Of "our letting down" on this
point, we thrk We bnve been sufficiently
explicit to convince our esteemed CORES
pondent q at the law ." lets him out. and
shows biz error to be n material ore. ns il
wns calculated to misinfo,m the public con
ceruing the responsibility Of rail road COM
paniesi
again, our correspondent is in error in
SUPP sing that IT, commissioners appoir ted
BY the oct lave anything TO do with the
Eve sections relating to the rsilroad. They
are arrcintcd ard paid TO locate ard con-
s'ruct road f., m 0roville to Merdenhalps
Ranch, nrd thence 10 and beyord the Bid.
we'll Toll Bridge TO the toll roads Of Plum rs
county. The act distinctly marks out the
route they mu.t follow. and the author Of
the bill might just ns vel have shouldered
sn tx ard blpztd the s'unlrs and trees, and
attached n Tenaty Of fine and imprisonment
il the eoIle of The heeounty should locate the
road upon nny other route than Il Q one he
bazed, as to have tied up the commissioner
in the amer has by the provisions CT
the net.
The desire " 10 swap Jackets" with the
county. is increased by the fact that they
expect o. exchange n bankrupt garment
for one. the pockets Of which are 'ple.horic
III