Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1868-02-05

f bonds to The amount Of their Subscription
J. or aid, said town shall never I've liable I
9 pay any more by virtue of assessment
on stock or otherwise. Now when tn
q corporation accept this contract, they d
50 subject to the above provisions 4
D contract is sacred. aud when once redBce'
t to writing. signed and accepted, its term
2 must be lived up to. strictly.
t Now, in any Ct those matters il town
. have any fears, they can have j,,st susl
: remedy as they choose, by placing Prope
9 guards in their written contract Of sub
scriptiou for stock. "rhe Enabling Act
gives this power. in terms and an exanli
uation will satisfy every doubling mind
Again, the Enabling Act says the town
shall not exceed twelve times their gram
list &o~,bow can a corporation compe
> the towa.to,pay more than that amount
either by asssssaents or in any othei
way? Nothing snort Of special act o.
the Legislature could give ,hat-powcr, and
none such exists. and should one be epac
ted it would repeal the prcsent'law.
The General Statutes provide that sac
assessment shall be laid upon any ahares
in such corporation to a greater amount
than the sum at which the shares shall
be- fixed BY the charter of such corpora
tion. or by any vote or agreement Of the
Stockholders"
Now, what is meant by this proyiso ?
In the first place the shares are fixed by
our charter at 500 each. The law re.
.suircs that when subscriptions for stock
are made, 8 per cent. is to be advanced.
That leaves SO per cent. due. With this
5 per cent. the corporation commence the
construction Of the road. Soon it is
found that more money is headed Then
the stockholders by vote or agreement
make an assessment Of 20 per cent, and
1t is paid. Then there 10 still due 70
per eGpt. Soon another assessment is
made Of 25 per cent, and 1t ia paid
Then there remains due 80 per cent. :;
and so on and if there is sufficient SUI.
sciption for the stock to more than build
the road. then the stockholder wonld not
be assessed even to the amount OF his orr.
e'nal subscription Ii the stock subscrip
tlOus &re not enough to build the road
then each share can be assessed to the
full amount 6xcd by the charter; Wis.,
$500. and no more But. If, when IA per
s'n subsorihcs ior share. he pays down
the Sl00. or The amount fixed bv the
CHARTER, he ls not liable to any assess
ments thereafter. aud when such assess.
ments as have referred to have been
made. the Stockholders. by vote or agree
ment. cannot make them any greater in
all than The original subscription These
assessments are for the payment of the
original subscription; and the statute
refers to nothing cleo.
In past times this law was different
and stock could be assessed beyond its
par value; but the evils of those DAYS
have called forth guard from the lesis.
lature, and now when the stock fund is
insufficient and becomes exhausted, the
corporation is compelled 10 borroS mon.
ey instead Of assessing the stock That
part Of the section which says. "or by
any vote or agreement OF the stockholm
srs simply refers to the size OF the
shares; that l., when the size of the
shares IS not fixed by the charter. then
"the stockholders by vote or sgrecmeut"
lX the amount the shares shalt be called,
aud when 1t is fixed jn this way assess.
meuts can be laid for greater sum than
Is thus agreGd upon, for the SIZE of the
shares aRa tho assessments on both the
payments OF the original subscription. and
not for somsthing in addition. as some
claim II the shares were always fixed
IN the charter then there would be no
need of this part of the clause.
A careful study of this matter will sat.
'Siy any one that there is DO dagger of
assessments beyond the amount subscrib.
CD Aud allow Inc to say that the grea,
capitalists who are lending aia to thi.
enterprise willingly consent that each
town may provide in their contract against
aoy and all such contingencies in as
strong Language as they see it, Ii an,
Que doubts our ststemcpts We are pre- par.
cd to give authorities. | have said thu,
the Law requires o per cent TO DO advan,
cd. This is avoided by express stipula.
'lon ~ the Contract thst nothing shall be
ADVANCED until the building of the road
Is beyond question, or until tho road is
N operation. Iu short the towns have all |
'hese meters 10 their owa hands aud
cannot be dicta'cd BY any one mn or
bods Of men The true conrse il 10 make