The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-05-16

regular sales. The other dealings we're manly
confined 70 Union Pacific Erie, Rock Island North
west Common, and Cleveland, Columbus and
Indiana central, all OF which were heavy, declining
nom u to Ia per cent, with the rest OF the list In
sympathy; but at the close the market rallied ana
left OF at considerable Improvement from the low.
est point of the day.
THE ELECTION IN PACIFIC MAIL.
is the principal point OF interest In this stock and
as the transfer books close on Monday the contest
to obtain the stock to vote upon very close The
following text Of the law recently passed at Albany
concerning the reduction OF the capital stock
throws some new light upon the subject matter in
volyed in this struggle
An act relating to the Pacific Mail Steamship
Company, authorizing the reduction OF its capital
stock ana prescribing the qualification OF directors.
The people Of the state OF New York, represented
In Senate and Assembly, do enact as f0llows:--
SECTION 1.-The Pacific Mail Steamship Company
s hereby authorized to reduce Its capital stock to
OF stockholders owning two-thrds OF said capital
Stock and TO That end may buy in, cancel and ex-
casss AZ rss so ar a. G same can DC pTp
thereof; and the shares purchased shall be re-
tired and extnguished in reduction OF the capital
SEC. Amy citizen Of the United States who is a
stockh0lder OF the company IN his own right shall
be qualified, when Only elected, to act as director
OF said company But majority OF the directors
shall be citizens Of the United States.
SEC. 3.-Ihis act shall take effect Immediately.
This Is certainly one Of those crude enactments,
either ignorantly or ngeniously framed, for which
our State Legislatures and even Congress are now
30 famous. On the face Of 1t it would seem at first
impossible to secure the authority necessary to
consummate the proposed reduction, and, secondly,
In tho meantime to give the officers of the company,
In the exercise OF their discretion, full
authority TO use the company's money
for the purpose OF specializing In the
STOCK and, II twothirds OF the stockholders agree,
Of putting very heavy bonus IN the difference in
the price at which they may buy stock and par
into their own pockets This was certainly, how
THE INTENT OF THE GOVERNOR
when no signed the bill, and would be scarcely
honest II in.earnest In their purpose to learn the
wishes OF tho stockholders in this important mat
ter, and DESTROYS OF acting In good faith towards
them, the only way for directors to act !s to pre-
pare ticket to be voted on at the coming election
simultaneously with the vote for new directors, or
at some future special election If there be not time
to instruct proxies similar to the following
In favor of o reduction OF the capital stock
Against a reduction Of the capital stock
OF this company to-. lO,0OoOoo
decidedn the affirmative the directors should
then advertise to receive proposals from time TO
time, the state OF their funds and the character
OF the market would warrant for the purchase OF
STOCK AFTER the manner or secretary BOutweu's
purchase Of bonds give due notice Of such DISPOSE
ton TO purchase and publication Of the amount &C
cepted. This would meet all the requirements Of
fair dealing and be creditable to the managers OF
this company. Less than this would make the
operation another Erie scandal and certainly for
felt all claims Of the company to any favor in the
way Of subsidy at the hands Of the American
people,
ANOTHER POINT
In respect to this law and the approaching election
is suggested by the last clause Of this act which, It
win be seen, is carefully worded to permit citizens
not residents OF this country being directors, and
by Inference In the last sentence of the same sec
tlon, minority Of foreigners. These are impor-
tant points, the latter especially calling for the at
tention Of Congress before II acts upon the recon-
mendation made in the House to-day by The Postal
Committee to increase the subsidy to 100000
HIGHEST AND LOWEST PRICES.
wero a nd 1,rt