Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1879-07-17
THE STOCKHOLDERS, MEETING.

the stockholders meeting of the Chester and
Lenoir Railroad, at Dallas, seems to have
been misinformed as to the facts upon which
the meeting refused to allow certain subscrlp-
tions to the capital stock of the Company, to
be voted as stock in the company. 1t says:
The grading of the road has been completed
and accordingly most of the stock has been
paid for, but the stockholders had not received
from the Secretary and Treasurer their certlt-
Gates of stock, though the engineers estimate
of the completed work were presented to show
that they were entitled to them, and the Treas
urer stated that he was prepared to issue the
certificates, but had not done so for lack OF
time.''
The facts appearing before the meeting as
to this matter, were heard as follows: Ger
tain individuals in Catawba county had SUBJ
scribed to the capital stock of the Company
some years ago, but had never paid anything
on their subscriptions. Certain other citizens
of that county, including some Of these SUBJ
scribers, afterwards formed a stock company
to grade the road through that county, and
to take stock in payment "when the grading
and trestling were completed" at the engin-
eer's estimates of the value Of the work. The
Company also at the same time assigned to
the persons composing this stock company,
the unpaid subscriptions previously made to
its capital stock, allowing the stock company
to collect the amounts subscribed, and ac-
count for the same in settlement with the
Company. At the meeting on the 10th inst,
it was proposed to vote by proxy this list of
assigned subscriptions. Objection was made
that it did not appear that these subscribers
had ever paid their subscriptions, or any part
of them. 1t was conceded, that to the amount
of the engineers estimates Of work done, the
meeting would allow votes for the amount of
stock the work represented, although not yet
completed, as required by the contract but
it objected to allow mere subscribers to be
voted by this stock company, unless evidence
of payment of their subscriptions was before
the meeting. And the chairman of the meet,
ing-an impartial gentleman from North
Carolina, who was chosen on motion of gen.
tleman from Catawba county-so ruled.
The Observer makes further error in say
ing that t@ Secretary had not issued stock
''for lack of time" to these subscribers. We
did not understand that any Of these parties
had ever presented receipts to the Secretary
and claimed their certificates of stock. 1t
did not appear officially that they held any
receipts, or had made any payments. 1t
was stated on the floor that some payments
had been made on these subscriptions but
the majority of stockholders seemed to think
that stockholders meeting did not furnish
the time or the occasion, nor was it the prop
er body, to undertake lengthy accounting
beween the company and subscribers to its
stock, to ascertain who were to vote at its an
nual meeting
1t is true that it has several times been per-
mitted to subscribers who had nearly paid up
their subscriptions, to vote as stockholders.
But it has always been done against objec-
ton, and is clearly wrong in principle. In
this instance, however, the former precedent,
if such it be, could not apply, as we'll from
the fact that no payments were shown to
have been made, as well as that it was not
even ascertained whether the stock company,
or these subscribers would be entitled to the
certificates of stock when regularly issued.
We regret the dissatisfaction" that at
tends the decision of this question, but it seems
to us so clearly correct in principle, that we
feel sure that the intelligent gentlemen from
North Carolina, who experience this dissatis-
faction, will perceive that the decision re-
cognizes the only safe principle on which
such meetings can be conducted.