Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1902-04-03

companies, exceed two-thlrds OF Its capital
stock.
CONSTITUTIONAL that the limitation
Limitation Is upon all corporations
Ahso,,+a is absolute, with the
single exception of
the risks Of Insurance companies. This I'M
limited exception did not long continue,
oskns tSe ppars
of insurance companies, and restricting the
liability upon such risks to the assests Of
tail tail the history of these eha p i IS sui
iicient to say that at the present time the
first exception to the general rule Is stated
these words: Except risks OF Insurance
companies and liabilities of banks not In
excess of their available assets, not in
companies and banks are limited to their
available assets exclusive of their capital,
aud the limitation Is carefully enforced by
periodical examinations made by an officer
In the progress Of time 1t became nee.
cssary to make another exception TO pro.
vide for the construction OF railways, and
thereupon railway companies were given
the right to issue bonds TO an amount not
exceeding $4,000 per mile of single track,
standaR1 gauge, railway, and $4,000 per
mile Of single track, narrow gauge, rail
meas es Ss ~ bonds sseoed
the bonds must not exceed $4,000 per mile,
and, third. and most important Of all. the
DOnOS must ne Issued III inc lOcAllons tD1-
struction and equipment OF the railways.
At still later period 1t became neces-
sary to make provision for such loan and
companies were Issuing debentures or
bonds, and the provision made for them
was that they might issue bonds or deben.
lures without regard to the amount of their
capital stock, provided, however, that such
bonds or debentures are secured by first
mortgage upon real estate OF Mt least
double the value Of the bonds or deben
still imposes rigid restriction upon loan
and trust companies with respect to their
Indebtedness.
Legislature 81, at T a stu later af,n time time
Knew What eral Assembly enact
it Was Doing. s nd see a% T sS.a Of Y
the code. In which railway companies are
given the right to mortgage their property
and franchises to secure the payment OF
bonds issued by tnem. Whether this stat
thereto existing, l do not enquire; but /
cali your attention to the fact that the
limitation still continued In that power con.
property to secure the payment Of bonds
issued by the railway companies for Ger.
tain purposes, and that the bonds were to
statue. When you consider that section
1911 as 1t now appears. and section 2049,
to which reference has just been made, were
Of the code Of 1897, 1t may be assumed at
least the Twenty sixth General As
sembly believed that there was room for
the operation OF both.
Insurance Com drawn cS Spom ion 70 to se
panies Alone going review of the
Excepted. s ststa mon ,S Ua or une
ton Is that no corporation, save Insurance
companies, and that only for a brief period,
has ever been given the right to incur in
debtedness without limit aud without re-.
gard TO the amount of Its capital stock or
the extent Of its property. II has not only
been the policy OF the state of Iowa, but
Of substantially every state In the union, to
the liabilities Of Its coroorations. have
examined the constitutions and statutes Of
many Of the states, and 1 have not MS yet
found a state that has conferred upon Its
indebtedness. Under the policy to which I
have referred. Iowa has done well. Her
railroad systems are many and extensive.
They have been successfully constructed
and probably operated, aud, so far as l
know. II has never before been suggested
that the legislature Of the state was not
for lawful purposes. The bill which / am
examining proposes to take of, for the first
time, every limitation, and confer upon q
which, within the limits Of my ihvestig .e
ton. has no parallel In modern lesisla-
ton.
c,t.. a.. beg to refer more
Cltes the specifically TO the
Burlington as an companies to which
Example. cense Woud appty.
As I am informed. there were prior TO the
10th day OF October, 1901. two railway
companies organized under the laws Of this
state, owning or operating lines OF railway
In this and another state. They We're the
Burlington. Cedar Rapics 4 Northern Rail
way company, ard the Chicago, Rock Is
land & Pacific Railway company. The
former was a complete single track railway,
and I am not advised tnat y Is proposing
any betterments that cannot be paid for
from the earnings Of the company. The lat
ter owns and operates an extensive system.
beginning at Chicago. illinois. passing
through or into the states Of Illinois; Iowa.
Missouri, Nebraska, Kansas, Oklahoma
Territory, Indian Territory. Texas and
Colorado. This great system has been CON
structed to 4 high point OF efficiency under
the law as II is: and ! have not been able
to ascertain that II has been hamDered or
embarrassed In Its work by any provision
Of the Iowa statutes. nor hns Ii been made
known 20 me that Ii proposes to Issue add
tienal bonds or incur additional Indebted
Eess. On the contrary. ! have been led TO
believe that the improvements which from
time TO time 1t is adding TO Its property
are made from Its earnings. ] am, there
fore. of the opinion that there Is no neccs-
slty for the bill under consideration In or
der to enable either Of these systems to be
operated more economically or more safe
". II there were such NECESSITY Ii Is mani
fest that the proper and natural amend
ment to the statute would be to enlarge the
III
under the laws Of this state TO issue bonds
for the Improvement or the betterment of
railways, instead Of wholly removing every
limit and safeguard respecting the creation
tions, which are well known and are part
Of the history OF the state, cannot resist
the belief that the real application OF the
able the two or three railway companies
TO which 1t would apply TO improve their
properties for their own prost and FOR tine
advantage Of the people, but that its only
substantial effect would be to overcome real
or Imaginary difficulties growing out OF
the purchase q the stock of the Chicago,
Burlington & Quincy railroad company By
the Great Northern and Northern Pacific
Railroad companies
p,;., Prior 10 October
burlington last the Chicago, Bur
system Reincor- lington & Quincy Rail.
road company owned
porates. and operated a vast
system Of railway lines a part OF which
was in the state of Iowa. The company
Itself was organized under the laws OF
the state of Illinois. and under such laws
II had built up one Of the largest, as well
as one Of the best railway systems In the
e sa'ss ed doubt. track from chicago
to the Missouri river. For many years II
had been In the enjoyment, Of all the prlvi-
lGses s wh, stats apd ,nsnlsr as The msre
operation of its lines Of railway Is con
cerncd, 1t is difficult to perceive any rea-
son tnat NOulu leau It's managers 10 NDan-
don the old corporation and organize a new
one In our state. Nevertheless u did so,
and on the 10th day OF October, 1901, there
was filed In the recorders Office OF Des
Monies county articles Of Incorporation OF
A submarine telephone cable con.
meets BRUSSELS with with London.
In Rotomahona. New Zealand. there
Is an immense geyser, which covers
an area an acre in extent. and con
stantly throws columns of water to
vast heights, some of them ascending
300 feet, with clouds of steam which