Year: 1877

To authorize Railway Companies to issue Prefer


red stock.


SECTION 1. Be if enacted bg the General Asssnl-
big Of the state Of Ohio, That any railway c0mpa-
N.Y. heretofore Incorporated under the general laws
of this State for the purpose of constructing o
railway having gauge not exceeding three feet,
or that may be hereafter incorporated under the
general laws Of this state, whenever i'm the ODiu-
ion of q majority of the directors thereof il may
be considered to be to the interest of the COmp8-
nv. for the purpose of the speedy and convenient
construction or equipment of its roadway, or
erecting its dCpOts, OF 90 meet the liabilities Incur
red, or that may hereafter be incurred, for real
estate purchased OF leased, OF that may be pur-
chased or leased, for the use and benefit Of the
company, or for either or all of said purposes, is
hereby authorized 10 issue preferred stock, which
shall not exceed, in amount fifty per cent. Of the
authorized capital stock Of such company.
SEC. 9. That before such company shall issue
any preferred stock under this act, majority of
the directors of the company, at meeting called
for that purpose, shall declare by resolution their
intention to issue such preferred stock, the amount
thereof TO be issued, and the purpose or purposes
for which the same shall be issued, and shall OBJ
tain the written consent Of majority in interest
OF a the stock subscribed on which the suDscrlD-
er or owner shall be entitled to vote, and make a
record Of such consent on the minutes Of the conf
pany.


and entered on record, as hereinbetOre provided
the directors Of the company may issue the pre-
/ ferred stock Of the company, in the amount and
for the purpose or purposes provided for In the
Z
company may guarantee to the holders Of such
preferred stock q semi-annual or quarterly divi-
dend not to exceed eight per cent per aunum,
payable at such place as the directors may desig-
nate.


The preferred stock herein authorized to be Is
sued may be sold at such times and places, within
or without the State, as may be deemed advisable
at not less than par. The proceeds thereof shall


be applied for the purpose or purposes set forth IN


section one Of this act and by the resolution OF the
directors The unpreferred stock shall be entitled


To- dividends only out of the surplus OF the profits


after setting apart sufficient to pay the div
] ideuds on the preferred stock sold


/ SIC. 4 That any company Issuing such prefer


red stock shall reserve the privilege OF redeenlne
/ and canoeing the same at par, at any time attei
I've wears from the date of issue; and the owners


of preferred stock shall have the option of having
| the same converted into UupECfeTed stock, when
ever they shall so elect
SEC 5. That the holders Of such preferred


stock shall not he entitled 70 vote any Of the shares


thereof at any election Of said company, until six
months after default Of the payment of any divi-
dend. Should there be a default Of the payment OF
/ auy dividend, for Elk months after the same be-
/ comes due and payable, then and thereafter the


preferred stock shall be entitled TO the same rep
rcseutatiOn as the uupreferred stock, so long as
I such default may continue.


SEC. 6. That This act shall take effect on and
Z after its passage.