The record-union., 1899-03-09

the laws of this State, or of any other
State. or Territory. or of the United
States. which is now, or hereafter may
be. doing business as common car
rier in this State, and authorizing the
sale or lease by any such corporation
as above mentioned, of any such prop
erty, or franchises, or both, which II
may own, use, or hold, wholly or par
TALLY, in this State.
The minority report, which is signed
by White. Boone, O'Brien, Can,inetti
and Clougill surrounds such purchase
or lease with numerous restrictions and
conditions.
The title of the substitute differs from
the title of the original pill given above,
and is as follows:
Amending the Civil Code of the
State of California by adding thereto
new section to be numbered 494 author
izing the sale by any railroad company
owning any railroad in this State OF
all of its capital stock. or any part
thereof to any other railroad company,
whether organized under the laws of
this State or of any other State or Ter
ritory, or under any Act of Congress;
and prescribing the conditions and
penalties under which such capital
stock so sold may thereafter he con-
trolled and enjoyed"
1t will be noticed that where Si!np-
sons bill permits the sale or lease of all
property and franchises, the substitute
limits the permission to the capital
stock.
The substitute provides that such
IL xr-,f y, IN, fhroa VOC nc
after the Act takes effect: that before
such sale can become operative an
agreement in writing must be executed
by the parties containing the terms and
conditions of the purchase and sale, and
it's execution must be authorizes by the
Board OF Directors and ratified by
three fourths of the stockholders of
leach of thelrailroad companies that are
parties to the conveyance and transfer.
This agreement shall be recorded in
each county through which the road
passes in this Stale. No such sale shall
relieve the capital stock sold from the
liabilities of the grantoT contracted or
Incurred in the operation, use or enjoy
ment of such capital stock or property,
or any of it's privileges: also that this
section shall not authorize any corpora
ton to purchase the capital stock or any
portion thereof of any railroad corpora
ton operated in competition with it;
also that all established rates for fares
and tolls for carrying passengers or
freight between any points upon any
railroad whose capital stock may he
purchased under the provisions of this
section shall not be increased; also that
whenever railroad corporation which
has purchased the capital stock of any
other railroad corporation under the
provisions of this section shall, for the
purpose of competing with any other
common carrier lower its rates for
transportation of passengers or freight
from one point to another, such re-
duced rates shall not bel again raised or
increased; also that a sale under the
provisions of this section shall in no
wise affect the powers of this State
over the corporation whose capital
stock may be Sold or over lis. proper
ties, charter and franchise; also that
| for every violation of these provisions
on the part of the directors. or other
governing officers of any corporation
affected by the provisions hereof. the
State shall be entitled to recover from
such offending railroad company the
sum of $4,000.