Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1861-03-07
IN SENATE.
THURSDAY, March Z, ls6l-1O

THURSDAY, March Z, l96l-10 A. M
Prayer by Rev. Or. Smith.
When the Senate took q recess yesterday, the
amendment of Mr. Brewer was pending.
Mr.. PARISH said he was not familiar with
the details Of railroadiDg, and desired spe-
cific information. He was favorable to the
principles of this bill as he understood them,
but could not proceed satisfactorily without a
clearer understanding of the objects and effects
of the bill. Ar-.al
Mr.. HARSH said he represented county
(Stark) largely interested in a railroad. Stark
county originally took $l45, 900 of the stock of
the Pittsburgh, Fort Wayne, & Chicago Rail-
road, which, with dividends and premiums al.
lowed, amounts at this time to Sl7l $50, for
which original stock the county Issued her own
bonds, with the assurance that the Investment
would be money making business to the coun-
ty, and the railroad would pay the interest on
the county bonds asit became due, both of
which are failures. The stock is worthless and
the interest was not paid by the road. Some
$50, 900 of these bonds became due in 1860,
and were paid by Stark county, and the ball
ance will be paid as they become due.
Now, tits proposed by this bill to form
new organization as claimed by some to evade
the personal liability clause under the present
laws Of Ohio on corporations. This preeents
two considerations to my mind; first, in evading
the present laws Of liability. If this Law of liza
bilty is not right let It be repealed but II right
and cannot be evaded, which / am inclined to
believe to be the fact, / would much prefer
acting for Stark county--to sink the present liza
bility, than incur any risk in creating new
liability.
Again, this bill, is it becomes q law, is moth
ing less than bankrupt act, where majority
In intent may wholly ignore the right Of mir
nority. To all such legislation object, and hold
that all corporations shall be subject to the same
rule Of action, under the laws of organization.
b. Again, the Legislature of Ohio, by passing
this bill into a law, virtually takes under the
protection of this State the rail road interests of
this State, and when these rail roads or large
portion of them BECOME involved through ex
trayagance, and I fear In some cases commit.
ting great fraud on community, Again, most
all are aware that these roads have done all
they well could to break down the public works
of the State of Ohio, costing the State many
millions of dollars-and when we propose to
hold on to these works under small deficiency,
we propose to wipe out by legislation millions
of dollars of rail road liabilities. .Tbisito
me appears wrongl in itself, and wrong in
principle and precedent. IL these rail road
companies can in this way transfer their organ
ization into new one, 4 am opposed to their
doing 80, unless mourning such liabilities as
would attach to an entirely new organization
under the present laws Of Ohio.
As member OF this body, consider came
here to guard and protect the people in their
rights. Generally the leading men in corpora.
tions are sharp enough to protect themselves,
and are not very likely to have legislation for
the benefit Of creditors.l 1 shall endeavor to
avoid, by opposing this bill, any future wrongs
on stockholders and creditors of these roads.
do this the more from the fact of the friends Of
this measure not agreeing themselves as to the
future working Of the bill.
| ~ Me-. PARISH offered an amendment that afl
ter sale and transfer OF the road, it's property
and franchises, the property shall still be liable
for the claims of laborers, land those who fur.
nish materials for the repairs Of the road
claims included under the general distinction of
the floating debt of the road. r-y -r.,
Mr.. COLLINS again entered into detailed
explanation of the character OF the bill, some
Senators being in doubt concerning certain fea.
tures .gRsYs4 .ng0.g0
d Mr.. SCHLEICH represented the imperative
necessity of the Legislation contemplated In the
bill, because all the railroads in Ohio, excepting
the caims--greater- than tho value of the prop
erty--of bohdholders, who will sweep away the
entire property, leaving nothing behind to salts,
fy the claims Of stockholders, and holders Of the
floating debt This bill proposes compromise
between oil the parties, BY which all will receive
a pro rata portion OF the original Investment,
and besides, preserviDgrto the people of the
State beneficiary interest in The roads
more valuable than theirsrea Investments
such as interest In the management Of roads
in which they are materially Involved. Mr..
Schleich said this is the only means by which q
single farthing Of the original ihvestmepts 10 the
roads BY municipal corporations on The various
lines. or individual stock holders, ,or floating
creditors, can ever be recovered. "a fofeclos-
ure by foreign bond d-hoIders would cut out ev-
cry other creditor. Then they fx their CAPT, ]
tai stock at nominal sum, and their personal