The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-07-13
THE CONV ENTION.
Adoption Of the Report Of the Com
mittee on Corporations on
Second Reading.
Discussion Of the Power Of the Con-
vention to Punish Witnesses for
Contemplate. e. A. Palfrey
Cited to Appear Before the
Bar Of the House
on Monday.

SATURDAY, July IL.
The Convention was called to order at 8
o'clock, President Witt in the chair and
quorum present.
Delegate Lott, chairman of the investigat-
Ing committee, presented verbal report re-
viewing the testimony given by Mr.. e. A.
PaIfrey president Of the Factors and Ira
ders' Insurance Company In connection with
Mr.. Palfrey's refusal to disclose the name Of
the party by whom he was requested to sub
scribe to fund to be used for the purpose Of
bribery, the committee desired that series
Of rules be drafted which will make 1t COM
pulsory upon witnesses to answer queries
put to them. Delegate Lott then directed at
tention to the oath taken by Mr.. Palfrey and
presented resolution. on behalf OF the COM
mittee, directing the Sergeant-at-Arms to
bring him before the bar Of the Convention to
answer the charge Of contempt.
Objection being made to a suspension OF the
rules, the resolution went over.
CORPORATIONS AND CORPORATE RIGHTS.
The report of the Committee on Corpora
Hons and Corporate Rights was taken up.
Article was read:
ARTICLE /. The General Assembly shall not
remit the forfeiture OF the charter OF any COR
poration now exciting, nor alter or amend the
same, nor paes ANY general or special law for
the benefit of such corporation, except upon
the condition that such corporation shall there
after hold its charter subject to the provisions
Of this constitution.
inserting the word "renew" between the
words "nor and alter Adopted.
The article as amended was then adopted.
Article was then adopted rs read:
ART. .. The exercise Of the police power Of
the State shall never be abridged nor 80 con-
strued as to permit corporations to Conduct
their business In SUCH manner as to infringe
the equal rights OF individuals or the general
we'll being Of the State.
Article 8 was adopted as read:
ART. s. No foreign corporation shall do any
more known places Of business. and an author
lied agent or agents In the Suite upon whom
process may be- served.
Article was read.
ART. 4. No corporation shall engage In any
business other than hat expressly authorfz ID
In It's charter nor shall 1t take or hold any real
estate for longer period than five years. ex-
cent such as may be necessary and proper for
Its Legitimate business.
Delegate Watkins moved to amend by In
sorting after the word Corporation" the
words thereafter established, or whose char
ter shall be altered or renewed"
Delegate Mcconnell moved to strike tut the
article.
Delegates Lyons, White. Knoblock and
Mutt opposed the motion to strike out.
Delegates Heron and Mcconnell favored
the amendment.
Delegate Lagan moved to amend by pro-
viding that the article shall not apply to
charitable corporations. Lost.
The amendment OF Delegate Watkins was
then voted down.
IN
sorting after the word Charter" the words
''or incidental thereto"
Delegates Ogden and Favrot opposed the
amendments; Delegates Stevenson, Phelps
and Bell favored it.
The amendment was then adopted yeas Al,
nays 3d.
The yeas and nays we're demanded on the
motion to strike out, resulting yeas 90, nays
G8, and the article as amended was adopted.
Delegate McGloin moved to reconsider the
vote Just taken, with a view to Offering an
amendment, which motion prevailed.
Delegate McGloin moved to amend by add
ing the words land purposes" after the words
Legitimate business" Adopted.
Delegate Simon moved to strike out Five"
and insert ten" Adopted.
The article as amended was then adopted
yeas 46, nays %.
Article 5 was read:
ART. s. No corporation shall issue stock or
bonds except for labor done or money or prop
erty actually received, and all fictitious Issues
Of stocks shall be- void
Delegate Vance moved to amend by provid-
Ing that any corporation issuing fictitious
stock should forfeit its charter. Adopted.
The article was adopted as amended.
Article 6 WAS read.
AET. 6 The stock shall not be Increased. ex-
cept In pursuance Of general laws. nor without
consent Of persons holding the larger amount
in value of the stock fl rat obtained ut q meeting
to be hold after thirty days notice given in
pursuance OF law.
Delegate Lyons moved to amend by In
sorting the words "0f stockholders" after the
word meeting
The article, as amended, was adopted
Article was adopted as read:
ART. Z. The term corporation. rs used In this
cons tuition. shall be construed. to include, al
j int stock companies or associations. having
any power or priv eges not possessed by indi-
viduals or partnerships.
Article was read.
ART s. The General Assembly shall have the
power and 1t shall be- their duty to alter, revoke
listing, or that may hereafter be- formed for ally
failure to comply with the conditions of such
furious to the general welt IRE: in such manner.
however. that no injustice be done to the cor
porators.
Delegate Stevenson moved to amend by
striking out the words, whenever In their
opinion 1t may be Injurious to the general
welfare" Lost.
Delegate Pardee moved to strike out the en-
tire article.
Delegate Marshall moved to strike out the
words "whenever in their opinion" Adopt
ed-yeas AZ, nays %.
Delegate Parlange moved to amend by
that the question rs to whether the
Legislature has exercised sound Judgment
shah be matter Of judicial decision. Adopt
ed-yeas So, nays 81.
The Convention, by vote Of So to 80, then
adopted the motion to strike out the article.
Article was read:
ART. o. The power to tax corporations and
corporate property shall not bs surrendered or
by act Of tbs General Assembly.
Delegate Blanchard moved to strike out the
article because a similar article had already
been adopted In the report OF the Committee
On Taxation. Adopted.
Article 10 was read.
AIT 10. 1t shall be crime. the AZURE and
Of which shall be prescribed by
law. for any president, director, manager.
cashier or other off ssr OF any banking institu-
hon to assent to the recsution Of deposits. or
he creation Of. debts by such ,bantiug Ins.itu
Ion aftera he shall have had Knowledge OF the
Fact that 1t Is insoiysnt or in failing cireum-
stnnces: any such officer. agent or manager
shall b Z, indiytdu Ally RESPONSIBLE for such de-