Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1861-04-12

companies. and heauraa IN thoaa In ving olaifna
for running exbenssa and renalrs AZ me road the
highest security given 10 sny one in the capital-
ization, while without such A Inv thew never
could realize ANYTHING whatever.
Mr.. WELSH moved that the frat section be
amended 90 as to read al follows: IN
That in case two thirds In interest of the
bondholders. and tao thirda IN intereat of IN q
other creditors of a railroad companv. and two.
thirds In interest of the atockhoIders Of auch com
pany, residing within the State Of Ohio, shall
agree, in writing, upon plan of readiustment
or capitsliz ition, &c.
Mr. WELSH said he fully agreed With the
gen eman m the g,ast I'm oortanca ~ nc anh-
ject OF this bill. involving an original expendi-
ture Of near $3.50, ,000 600 IL bebooves us well
to consider the provisions of ibis bill In offer
ing these amendments, he did IL for the protec-
lion of the unsecured local creditors and resi-
dent stockholders. By the provisions of the
bill, the foreign bondbolders could force the 9th.
er creditors aud resident stockholders, on very
many of our roads, into capitalization
aod reconstruction, contrary to their will,
aud on the terms dictated by such
bondholders alone. The bondbolders, in many
Instances, would hold the controlling interest
fom the start, and totally absorb the I'm aller
Glass OF creditors so far as debating terms OF
reconstruction was concerned He would alec
require the written assent Of two thirds OF the
stockholders In inte,es,. Reading in The State,
90 as to discourage the tranafer Of the stook.
at mere nominal price TO the foreign bond
holders, who mieht be tenn oted TO acquire n for
the purpose of controlling the whole matter.
While the ripbts of Observation-Disclosures shou,d not
be overlooked, Il could not out be admitted
that there were other ,;ob,. 40 he nro,ected
For this purpose these smsrd :, sn,s ware -
ed. securing to each class of cred,,nra nama,
equal and separate rirhts IN the readiost mem
| or canitaIizstion rss.,y,,r 30 aaah a,as: asa
tive power. if n ss,;sisc,orv % aSinssmsns ;s s no,
offered. -
With these amendments h. wos favo,ahle N
the bill. But without this n.otec,ion, he wa,
afraid IL might turn on. to ha a General hank
rupt law on msenis ,ent scale al and he the cans,
of much dissatisfactio, N Inc neonle The
State should not be swift to mt ont Of he coptro
and ownership Of her own ci,;zsns so msrnia.
cent an Interest as tbis NotSioa 1 bSt NJ the mos
! imperative necessity conld iuatifv n Possihlv
that necessity exists. but certsinlv a hill 70,
this purpose cannot be too we'll guarded for the
protection of the rights of our own citizens. o
i Mr.. TANNEYHILI, honed tbia hill miobt h,
passed, and all railroads put into proper shape
At least he hoped something vould be don,
with the Pittsburgh, Fort Wayne and Cbieae,
Road. ANY one who had had his experiepe,
In travelling on that road would concur in tb,
passage Of the bill. n ltt o
i Mr.. BALDWIN sunnorted tb;a a mendment
and said. II the Amendment of the eentlemar
from Belmont be adopted, he would vote for th,
bill; otherwise, as he upderstood the bill. h,
should vote against It. There are differen
classes of interests, and any contract which II
to affect the rights of the parties should b,
made by each OF the parties In interest. With
out this, the door is opened 10 the most stu.
pendous frauds He conceived this provision
not only necessary for the protection. not alou,
of the stockholders and the holders of the float
ing debt, but also of the bondholders who ma,
not desire TO enter into the agreement He IL
Illustrated at some length how these frauds coult
and probably would be committed against in
nocent rarties. asat>
Az to the transfer of the franchises of com
pany, he could see no objection to that. II
horse was sold, the purchaser acquired the rieb
to ride or drive him as be pleased, and he coul,
not see but the sale of a railroad should carr,
with 1t all the franchises necessary TO operat,
the road. This Ia the law OF common sense
But In order to transfer these franchises, he ga,
no reason for the enactment of law vhicl
should be destructive Of the rights of any clas
of the parties in interest, Withouta majority n
such interest should assent thereto.
Mr., WELSH'S amendment was disagreed !
81, nays 69. M lt9t
Mr.. CHASE demanded the previous question
which was sustained, when - =
Mr.SCOTT, of Warren, from the com mi tte