New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-10-14
RAILROAD INTELLIGENCE.
CHARTER REFUSED IN MASSACHUSETTS,.
WHY TIE RAILWAY COMMISSIONERS OBJECT TO
TIE NEW YORK AND BOSTON INLAND.
my TEIrGp ApU To THE TRIBgNE.l

lBY TELEGRAPH TO THE TRIBUNEI
BOsTOy, Oct. 13.-The Railway Commission
ers of Massachusetts, have refused to grant charter to
the New-York and Boston Inland Railway Company
The chief objections to granting the charter are as FOL
lows: condition precedent to granting certificate is
that the capital stock shnll have been subscribed by
responsible" persons. The capital stock OF this com
pany $500 600 and seventy tive shares are subscribed
fora,y individuals as whom question Is made The
remainder are subscribed for by the New
York Construction Company. That cOmpany's
capital has been fixed at $4,000 1t has had
in its treasury little over $4,000 almost all of which
has been paid for surveys and other services Its
assets excluding surveys would be all required to pay
its present liabilities. In addition to this it has SUBJ
scrbcd about 100000 for construction In Connecticut,
and 5000 900 in New-York Some Of the stockholders
are men OF wealth. but as individuals they have taken
only three shares each OF course their wealth would
be OF no avail to the railroad corporation to it's cred
tors II each of these corporators worth million
the Construction CompaDys responsibility would not be
increased.
The question is whether such subscriber is re-
sponsble" party II the word has any meaning the
answer must be no. The object OF subscribing through
a CORPORATION is avoid liability, or in other words TO
avoid responsibility. The definition of responsibility"
I'm its common use is, "capabo Of discharging
obligation" In this sense a chartered company with
a capital of S36 900 aud with no available assets is not
responsible for subscription of S5000 good test OF
responsibility is to ask what sum the note OF such
CORPORATION would command, aud the is plain.
The liability OF the company Is limited TO $4,000, and
this has been expended Ihe note OF the company
worthless 1t Il said that the object in having
the capital of the Construction Company small is not
to evade the Railroad law, but simply to avoid taxation.
However innocent and praiseworthy sucn motive may
be- IL does make the corporation Irresponsible
The Board has been asked to trust the honor OF me
stockholders in this Construction Company but the
statute calls for legal responsibility and no rul; Of honor
has ever held that stockholders were even morally
respOns BILE the obligations Of properly conducted
CORPORATION because universally known thai cOTpO
raft are not lcga ly bound Il has been argued that
the law guards against construction or the taking Of
land until full security has been given for payment. Dut
the law gives important powers to
railroad company before construction begins and
il requires certain conditions before charter can be
given. The Board has right 10 waive those
Conditions OF further conditions 10 be performed
before further grants OF power can be maze. As the
capal STOCK been subscribed for by responsible
parties the application for certificate ls denied. To
grant would be 70 nulify substantial part OF the
statlItcs