The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-05-25

slule objection from legal standpoint can
mere be to such ownership? II Is personal
mntre In the world, and the companies
themselves can not cdutrol the matter oar
statute article 4SQiY expressly provides
shat the stock OF a railroad corporation
shall be deemed personal estate" etc The
ownership OF stoc ks not consolidation,
und Where the lines nre not parallel or
tWhpeuns aud these lines are moth Init is
~ the constitution prohibits. rhe con
SuIutional provision IN question (scction g,
article ~ reads rs follows:
, No railroad company organized Under
the laws Of this State shall consolidate by
private Or judicial sale, or otherwise, Win
any falirond company organized under the
s,WnFs OF, any other state, or Of the United
slOCk OWNERSHIP
NOT CONSOLIDATION.
hus It appears that "consomdation' Is
all that the constitution prohibits II such
case. but a consolidation shall not be ef-
fecied by private or judicial sale or other.
wise No case can he found holding that
the owner ship N stock Is 'ccnsolida-
uon. There is nothing III tnnt or any
other provision OF the constitution that de-
MICS he right OF the Southern Pacific con-
pany. or any other corporation, foreign or
Domestic, to acquire the stock Of any on all
~ lhCSr companies and II Is clear IRON
ne authorities that the acquisition of Such
stock is not a Consolidation within The
M' aiing Of the constitution. The word
,umSoludtc mas = Wen Defined legal
a"''"uIHs' - q. l.. EuCy. OF Law, IT'S,
~ Gtn ,Hr!ces Ultra. NhNs. d3>,', note
~ 2n' Sprilng ON fflNate Corpuraiiols,
~ y ana ~ Is ack Law - 81 nnly; |.
~. "iGGi ~ ~ o. Vs. hr',mond' .. ltNls'
SNIi g." a ;. T. Ry. Co. VS. Newell 3
Sht,ic, r., - ~ =; !, ~ u @; vs.
10 ~ Morris IN teI.,s cS5 ,,,',,, ~;
Brink ys IIaron 10 ID 49, - -
A. lOg. Pullman a ys NJ - n" -, ~
ll5 T. ( Az. whifn ~ ncros 3onI ~
IS ~ &. A.. C3I: Richmond TonSiru,ii 1i
GO. vs.. Richmond r. r. 60, "a l.. Il. \
o-o
r66in6nnmt 81, 'i9 WanS, ana santa re Ral'roaH
ncld that tho nurchaso br Tho Sant1 Fe
SIUainInnV OF az the stock and bonds o, the
dld naf wnrl c0n dI, 9i65,"a9 ttGu'Pu,I
companies Nowhere is tho law moro cicar-
~ OF 81 Lulac'erliN stated than Ivy thn 81.
CHIEF Jrsticc Waito in p,,lI,"a,',S
VS.. Missouri Pacific Railway Company
rms language was quoted with approval
ana applied in White vs.. pCcos Lima tom
pghy us Texas civil Appeals BS7 -63sl
] ne supreme court OF Georgia, in the re-
cent case of Exchange Bank VS. Mucun
va Georgia, 30 used the following Ian.
Suage:
Every corporation is a person Artificial
u rs true-hut nevertheless a distinct 'egGl
eu4tN. Neither portion nor all OF the
IAtural persons who compnsc corporation
on who own its stock and control its af-
iairS, are the corporation itself: and when
q single individual compoScS n corporation,
ne Ia not himself tho corporatlon In such
case, the man Is ono person created by the
Almighty, ana the corporation is another
person created by the law. II makes no
difference in principle whether the sole
owner OF the stock of corporation Is n
man or another corporation. The colpora-
Ton owning such stock is ms distinct from
Na HfFaUR
as The man IS from the cornnraton OF
which he Is the sole member
FOREIGN AND STATE
CORPORATIONS
,,to :, +horo,o.. +n,, o.. -. ~.
80 ,'' 80 '""' u - 'oo c'''' iV'
discussion ihat the ownership OF the stock
Of these Texas corporations is not con.
solidatlon thin tho meaning NJ tho co,,
49,.
e'itu'lou OF any provision oil our Jaw me
only purpose Of the constitution was to pre-
vent the nbsorptlou OF the Texns companies
,,d 81, ,r,.,. ne. -, ,,-.t,,,, -, a.,
~ !ne isAuS Iilys ny ,eie.bn Cul 'lUn'
1,s uunsoiuatIun' H. tHe sontue ia
~. 'hPun} ~ "mf 49, toi eihn ~, =,
MN ~ Ne con,no,,tos s,,ct foroi,,, cor
mIrm ,mv ,,,id rt ir t,,,os
~" Nuu'u MN uuttntc t lvi ' ~
anu s Gtite iorensn WUmiu uu W
ne llEmt 10 ielu"tv sul's eI!sns u out %
~ 9rt, .tobt 49, ,boi oe,i,,rs ho
CVu, 5 H. itot LA In tbot io, ,,st strt,ti,
] ,ky.
ntsotlu wv ~ 1i1u ~ w. ". ,utS a.
ut.ss.ut ., lin 81 - s,o,,is,nc ro n
! CnaIS'u w. s,'e uG'' W t,,s ,nnt
lnam iuP"'ies anu 'nU"'''ns '"'o
oIrtHtiohS. m...,,,,,, .,,.aa, o.ot,,., =,
ms Nns e ,il suuI ueu y,
INC ,rrot; CO.., Ion
soiidate with a Texas railroad corporation
+, nrivate or judicial sale. or otherwise
ana the legislature is powerless to author
ize consultations between foreign anu 90 ~.
!esttt a,d idertjtr 90 ne reTas corpora
tiess are preserved. They are required Il
operate their own lines Belng corpora
tions created ny thls State theg hre VIZ VIZ,
9us py w rsmore into The Federal court
suits against them. They are required Il
maintain their ofhoes in this state. Thc!
are Always Witnln the con d t du ,o,~
att", ,,ts stnte Their '3ol,s accounts am
records are Kept So ,arat, and are not CON
nltcated with the r..g .gs and expenses o
lines beyond the Str. {. Each Is complet
/ n Itsnif The mana cement of each Is vesl
ed in its own honrd Of directors maiorit
~ whom are required TO he residents q
tbIs state. Thus every right OF the stat
III arary sofecuord N tho public Interee
~ osrectuaIiv nreserved. no matter VIII
49, mo stock n is clear from the M
VWuSS.tI bs~n rasd that tho oNnershl
tHVltttes 80 ,ba ou,rsrshin NJ tho col
ol hio'A lsar,c ana observation-disclosures NO ma
poratt piupst't .;;1 u atdiS,s arc ahsolutel
a.. ter now great Ahtii l.''"'es, 80