Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1867-04-11

acquired by said trustees under any such
foreclosure or sale shall vest In said cor.
pOration. And said corporation may at
, once take possession OF aud maintain
and operate said railroad subject TO all
existing rights Of other parties, and may
proceed in any manner 1t may deem ex
pedieut, either by purchase or other
wise, to obtain the title and ownership
or the use aud benefit OF the whole es-
tate, and to satisfy the interests or
claims, undivided or otherwise, OF any
other party or parties interested in said
railroad or any part thereof. And until
the interests Of such other parties shall
become vested in such new corporation,
said corporation shall be the trustees
thereof, and shall be accountable there
for as such.
SIC. s. Said corporation shall be au-
thorized upon vote OF their directors to
issue preferred or guaranteed stock
for the purpose Of satisfying, paying or
purchasing prior claims or incum.
brances upon or interests in said road
and property, and not exceeding in
amount the amount Justly due upon
said prior claims and membranes.
And such stock may be exchanged for
such prior claims or membranes upon
such terms as may be agreed on. And
said preferred or guaranteed stock when
so issued shall be entitled to receive div
idends from the earnings and income OF
said corporation at the rate Of seven
per cent. per annum, payable semi, an
nually, free OF United States tax, before
any other dividends shall be made there
from. And said corporation shall pay
and shall be liable to pay such dividend
on said preferred stock Semi.annually
from their earnings or income. And
until declared, interest shall be added
to each dividend from the end OF the
half year when the same should be de-
Clared. And no dividends shall be paid
on the common stock Of said corpora.
sion until dividend is made on said
preferred stock, nor while any semi-an-
nual dividend on said stock or interest
thereon, herein provided for, remains
undeclared. And no mortgage OF said
road and property, or any part thereof,
shall be made by said corporation that
shall take precedence Of said preferred
or guaranteed stock in the application
Of the income Of said corporation.
SIC. .. No preferred or guaranteed
stock shall be issued by said corpora
tion unless an equal amount OF claims
or membranes on said road and pro-
perty prior to that of said corporation
shall be thereby satisfied, retired or ex-
changed therefor. And if any such pre-
ferred or guaranteed stock shall be is
sued in violation of the provisions of
this section, the directors Of said cor
poration shall be personally liable to
any holder of such stock Tor such dam
ages as he may sustain III consequence
Of such over issue.
SEC. 10. Said corporation shall be
authorized and empowered to make any
bylaws not inconsistent with the pro-
visions of this act nor with the laws of
this State, and to make any and all law
ful contracts touching the satisfaction,
adjustment or payment OF prior incum-
brances on seid road and property.
SEC. II. Said corporation shall be
authorized to make the preferred stock
herein provided for convertible into
common stock Of said corporation at
option Of the holder.
SEC. y. This act shall be subject TO
the action Of any future legislature, to
amend, alter or repeal, As the public
good may require.
SEC. Is. This act shall take effect
from its passage
Approved March %, 1867.