Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1867-03-27

veto of the Pennsylvania Rail-
Road Bill.
EXECUTIVE CHAMBER,
HARRISBURG, March 20. 1867.


GErLEMEN-The act entitled "An act
TO repeal an act entitled A further supple-
meht TO the act incorporating the Penn
sylVahla railroad company, authorizing
an increase of capital stock and to borrow
money, approved the twenty-first dav of
March, one thousand eight hundred and
slXty-sIX, to authorize the PENNSYLVANIA
railroad company to increase its capital
stock, to issue bonds, and to secure the
same by mortgages - has received that
careful consideration from me which the
Importance of the subject seemed to de
mand, and, Notwithstanding the high re-
spect L entertain for the two branches of
the Legislature, and the extreme reluc-
tance have at any time to differ with
them, am induced, by my convictions
of duty, to dissent from the propriety of
the provisions of the bill, and to return it.
with my objections, to the Senate, in
which it originated.
| Lest my opinions should be misconceiy-
| ed and misrepresented, L deem it due to
| myself to make brief exposition of some
| of the enactments of the Legislature for
| the benefit of the PENNSYLVANIA railroad
company since the original act for its in
| corporation, approved April 18th, 1916. so
| far as relates to its capital stock.
| BY the first section of the act of incor-
! poranon, the capital stock was fixed at
| seven millions five hundred thousand dol
| lars.
The twentieth section is as follows =
Ihat II any increase of the capital stock
| shall be deemed necessary, in order to
complete or improve the said railroad or
appurtenances, it shall be lawful for the
stockholders of said company, at anv an
nual meeting, or at any special meeting
| convened for that purpose, in manner as
aforesaid, to increase and dispose of any
! additional number of shares, not exceed
| ing fifty thousand, so that the whole
amount Of said capital stock shall not ex-
ceed ten millions of dollars, and receive
and demand the moneys for the addition
al share, in like manner, subject to the
| same conditions heretofore provided for
the original subscriptions, or shall be
provided for in the bylaws of said compa-
| n.y."
The manner prescribed for the increase
and disposition of the stock in the fore
going section is certainly most uneXcep-
tIonable; 1t being under the direction of
| the stockholders, and not at the option of
the directors as is provided in the bill un-
| der consideration, and which is deemed
Objectionable.
The twenty-second section imposed a
! tonnage tax as one of the conditions upon
which the original charter was obtained,
which has since been repealed by statute,
and the accumulated tax released.
! BY act approved April 23d, 1852, the
capital stock was increased to thirteen
| million dollars; May 6, 1852, to fourteen
million dollars; March %, 1858, to eigh-
teen million dollars; May I'd, 1855, to
! twenty million dollars, and March I'd.
| 1866, to thirty million dollars.
With no other objects on my part than
| to be serviceable to my countrymen, to
| preserve and transmit unsullied the great
| principles and true policy of our Govern
! ment, and hOnOrably to perform the
| trusts, duties, obligations and responsible
| itias committed to my charge, L proceed
| in the performance of these objects as I
| understand them. [ am sincerely friend
| ly to all the railroads and other companies
| that have aided in the development of the
| wealth and resources of the State, and
while [ cheerfully accord the same senti-
ment to your honorable bodies, I can but
regret that there should be any difference
/ of opinion between Us on the proposed en-
| actment. And if in stating the objections
| [ shall use expressions which may be re-
| garded as too strong, my apology will, [
| trust, be found in the importance of the
| subject. [ will state them frankly and
| with as much brevity as possible.
| Waving objections to the first section
| of the bill under consideration, and waiv-
| ing also an inquiry as to the legal rights
| to thus authorize the change of the fun
| damental law of corporation, and bind
| the stockholders, proceed to the consid-
| Grafton of the second, which confers pow-
ers of the most extraordinary character
| upon the directors of the company: x
! providing further facilities required by
! the increase of the business upon the road
| and its connections, and for such other
| purposes connected with the business as
| the board of directors of said company may
| deem eXpedient's it shall be lawful for the
said board of directors, from time to time,
! to issue additional shares of capital stock
! of said company, to such amount as they
may determine, and to apportiOn or dis
| pose of the said shares in such manner,
and upon such terms, as they may think
| best; and also, for either or all of the said
purposes, to issue, from time to time,
! bonds of the said company, payable at
| such time as they may appoint"
One of the objects of this bill is, for its
| further increase of the capital stock, to
| retire its present Indebtedness, which, ac-
cording to the president and directors last
| annual report to the company, is upwards
of twenty-six million dollars. Thus, in
| this way alone, increasing the stock over
| one hundred and thirty per centum, and
makes it amount to over forty-slx million
! dollars. But this is not all. Its further
| intended to increase the business facilities
upon its roads and connections, "and for
| such other purposes connected with its
business as the directors may deem expe-
| dent"
! Were this bill to become law, to what
amount may not the directors extend the
capital stock, with such unlimited privi-
| leges? To what branches of business shall
| it be confined, and to what may it not be
/ extended? And where is the power to
keep it within its legitimate functions, if
it should deem it proper to depart from
them? Its tremendous power, in ire
| Il. he nm limit taH nd