, 1889-08-08

greatest evils of the present day, and
this was for the prevention of that prac-
tiCc,
Mr.. Power wished also to go on record
as iavoring this section just as IL stood.
A great deal of corruption from the time
of the Union Pucitic railroad grant in
congress to the present time was the
placing of stock where 1t
wouLD DO THE MOST GOOD.
Mr. Lillis could see no harm in retain
ing this section and should vote for II
for the sake of insisting that corpora
tions should have u real value to their
stock, dollar for dollar.
Mr.. Warner claimed section g did not
prevent the watering of stock and that
stiles was right.
Mr., stiles proceeded to use his five
provisions are harmless and as to that
one, all that has been alleged in favor of
1t Is that II is harmless and may do
some good. On that ground the ten
commandments and Lord prayer might
equally well be inserted in the constitu-
tion. This proposition would shut oil
railroads from issuing bonds at any
thing less than 100 cents on dollar.
/ This is not business and at some time
the people who might purchase these
bonds Mt par would for all time be liable
to Il defense against the railroad COM
pany that the bonds were illegally is
sued by the company and so voted.
CALLED DOWN.
The chairman's hammer fell, and If
Mr.. stiles had any further views ON this
subject the committee has lost them.
The committee refused to strike out the
section.
Mr. Browne moved to amend by strik-
! ing out the first sentence and inserting
I In tlnra thprpnt tho words ''nn rnrnnru-
ton shall issue any stock or bonds en-
Ccpt to- bona ildc Subscribers therefor
and except for money, labor or property
actually received and applied to the pur-
poses for which such corporation was
created
Mcssrs. Dunbar, T. II. sullivan,
/ Browne. the chair and clerk spoke rs to
\ the grammatical effect, and settled 1t to
their satisfaction which is as provided
| above.
Mr.. Turner opposed the amendment,
and thought the committees way of
| putting 1t was sufficient and the best
/ way, so did Mr. sullivan of Tacoma,
who thought the committee had done its
work well. The amendment failed.
| MIR. Browne moved again to amend by
| inserting stock or III the first sen
! tcncc.
Mr.. sullivan of Tacoma, asked if the
gentleman meant
TO COMPEL EvERYHoDy TO PAY
for stock in full before hc gets It,.
Mr.. Brown said he hoped that would
be the effect.
Mr.. Sullivan said he hoped not,
Mr.. stiles said that was the most
result III calling in capital and leaving II
only to be idle.
Mr.. Crowley took the same view. He
thought the legislature might be left Ia
make these provisions.
So did Weiscnhurgcr who called at
tcniion to the fact that stockholders al
ready had been declared (section ~ liza
bic for their unpaid stock
Mr.. Turner had seconded this amend
ment without due thought and now con
sidered that To change it would be un'
wise.
Mr.. Dunbar was also opposed to il.
Mr.. Browne opposed IL absolutely fol
the purpose of preventing tho issuance
of unpaid stock and watering stock and
selling unpaid stock to innocent parties
Stock should show OH its face how much
of It had been paid up, or else issue the
stock To stockholders as fast as 1t was
paid for.
Mr. Convey believed under such an
amendment no further
BUILDING Ann LOAN ASSOCIATIONS,
title insurance companses or home in
NllitllN' companies MbNlAl ut ltuuu III
the state Amendment lost.
Section was adopted.
SIC. I. No corporation shall engage in
any business other than that authorized
in its charter or the law under which II
may have been or may hereafter he or
ganiZed,
Mr. Turner moved 10 strike out "a,
purely legislative" ms il was not impor
tant enough To be i'm the constitution
and also IL would work harm, because il
would give corporations chance (,
avoid their obligations 10y pleading tina
they were outside their charters.
I Mr.. Buchanan wouldn't like to SEE
that stricken out. There were only tw,
lines of it, and he couldn't see the harm
of
LIMITING CORPORATIONS
to the business which their charters de
sCribCd.
Mr.. Goldman seconded Turner'S mo
tion and endorsed his views.
Mr.. kinncar proposed to require cor
porations to coniinc themselves TO tht
business for which they were created
The purpose of the constitution was t.
incorporate well defined principles o
law in the organic law of the state beyonC
"a chance of change by the legislature
| Mr.. Jones was fully in accord will
Turner'S motion to strike out, and TO
reasons he had advanced.
Mr.. Crowley said the section wns un
necessary, but would do no harm if lef
in.
Mr.. Sturlcvant favored striking IL out
Messrs. stiles, Ell. sullivan and Dun
bar debated for II few moments, and thei
the question was put and Turner's mo
ton prevailed, and the section wa
struck out.
Mi. Stevenson moved that the com
mittoe rise and report progress. s.
voted.
The president resumed the chair. Mr.
Bowen reported progress and askc'
leave to sit again, which was granted
d Oh motion of Mr. Dyer recess wa
taken until L. NJ.