PERFECT TITLES TO RAILROADS.
Senator Hamilton's bill 31-see page 45 of these Reports-being read the third time-
Mr. CONNER. The purpose of this bill is to allow the purchasers of railroads under a foreclosure upon first mortgage bonds to buy in the road, and then reorganize and reinstate stock holders, reinstate subsequent creditors and junior mortgages. This bill does not make it obligatory upon purchasers upon first mortgage bond to reinstate every debt, but it is found to their interest to do so, and they do do so, and allow each creditor to take the chance in the new company just as in the old. There is also a provision legalizing sales made in accordance with this bill heretofore.
Mr. COBB. I have no doubt but what this bill, as far as applicable to the road for which it is gotten up for, would do its work well enough; but this bill is general in its provi page: 228[View Page 228]sions, and I must say I have heard the attorneys who got up this bill explain its provisions, and I was unable to comprehend it. I think I comprehend something in relation to this bill; if passed into a law, it makes the stockholder in all railroad companies liable to lose his stock at any time; it is an inducement to managers of railroad companies to let the debts of the company go unpaid; let it go to sale and get their friends to purchase it in order to cut out the stock holders. I am not disposed to legislate for the benefit of monied corporations. This bill has been presented to the Ohio and to the Illinois Legislatures; I presume that have not passed it, and we ought not to pass it.
Mr. HAMILTON said a few words in support, of his bill.
Mr. STEELE obtained the floor, but the hour for adjournment having arrived-
The Senate adjourned.
