Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-04-16

sale Of any railroad in this State here
after made, which shall have the effect
60 discharge the property 80 sold from
liability I'm the hands of purchasers FOR
claims for damages, unsecured debts or
junior mortgages against snch rillroun
company 800 sold out, shnll have the et.
feet 90 annul ami cancel oil claims OF
every stakeholder therein TO any share
IN the stock of such railroad; and II
shall rot be- lawful for said purchasers
or for any railroad company organized
hereafter TO operate said rmlruud, TO
issue any stock In lieu of the old stock
or 10 allow any compensation there
nor shall all or any paif Of the debt &C.
satisfy which sale Is made be continued
or held as claim or lein on said prop
erty.
Sec 5. The purchasers of said property
who procure 1t clear of incumhrance, on
any company organized by their conseA
to operate said railroad under ana In
pursuance Of the laws Of this State, may
issue stock aud bonds In the proportion
that they may deem advisable, subject
10 the rules, restrictions ana limitations
prescribed in sections and and !
of this net
Sec 6. Should any company or corpo-
ration authorized 10 construct own or
operate a railroad In this state desire 70
issue bonds or other Indebtedness. 10 be
secured by len or otncr mortgage ON
It's franchises and property In advance
Of the completion OF said railroad, II
shall make application 10 and first pro-
cure the consent of the railroad com.
mission thereto la said application Il
shall exhibit TO the commission It's con.
tract with the construction company, "
IL have any; the profile of its completed
road, or part Of road, the evil
dence VI It's right-of-way, depot
~. II 4 L..
tent and value of work done or In pro
cess of completion; the amount of prop
erty received. the amount OF stock sub.
scribed aud the amount paid in; and all
other necessary facts showing the value
of the franchises and property proposed
as security for said contemplated debts
II, on investigation. the commission Is
satisfied that the company h. acting I'M
good faith. and that its contract with
the construction company Is reasonable
aud fair 10 the public then IL shall au-
thOrize the execution or said indebted
ness and lcn 20 the e1tcnt necessary
for the demands of the work, at no time
10 be more than so per cent over the val
ne of the whole property and franchises
In executing said bonds the company
shall comply with section 3 OF this law
aud have them registered, as required In
section o.
Sec. Z. Each railroad company now er
listing, or that shall hereafter be organized
or that shall be re0rgan2ed under the
laws of this state. or which shall m,
crease its stock under the laws Of this
State, shall issue under the laws of this
scrihers 10 It's said stock under the fol-
lowing regulations: A majority Of the
board OF directors shall meet in person
Ga the state of Texas, at the principal
office OF such company, ana shall cause
10 be made a list Of the subscribers TO
such stock, showing the number Of shares
subscribed by each, the amount Of stock
represented by each share and the amount
actually paid. labor done or property
received on each share OF stock, aud shall
cause to be affixed 80 each namo on said
list a number. beginning with number
one, or the next highest number OF any
certificate previously issued.
The president of the board or pre-.
siding officer OF the meeting nj which
the issuing OF such certificates Of stock
Is authorized shall make certificate
10 said statement 10 the effect that the
same Is correct, and that the amount OF
money paid, labor done ana property
received ss stated 10 correct aud shall
sign the same Ia person, such statement
shall thereupOn be entered az large upon
the minutes. aud after having the seal
of the company affixed thereto, shall be
attested by the secretary ~ the com
pany aud deposited with the railroad
commission, aud by Il sled and preserved
In the Office. The secretary Of the com
pany shall then be authorized to make
out and deliver TO each stockhOlder in
said list a certificate corresponding with
said statement Ia number. name, number
% shares. amount of stock represented
by each share, and the amount Of money
on ia equivalent paid upon each share
which certificate shall be signed By the
president 81 the said railroad company
nttested by the secretary. with the seal
~ said company affixed. No railroad
company shall hereafter increase lbs stock
uuiesa All existing shares Of stock shall
have been paid Ia full or ali unpaid
shares Of such stock have been sold
out as forfeited under the law. When the
certificates 70 be issued are for Increase