450
WRITINGS OF 5AM HOUSTON, 1860
February 7th 1853, entitled an act to incorporate the Galveston, Houston and Henderson Railroad Company, with my objections. The amendment seeks to change that section which gives a controlling influence to three-fourths of the stockholders. It imposes new terms not known to the charter and which may place the entire control of the affairs of the comuany in the hands of a minority. By far the largest portions of the capital stock of our enterprises must come from non-residents of the State, or at least, from sections of the country not convenient to the place of meeting. The conditions upon which they subscribe when set forth in the charter should not be changed without their entire consent, nor should a minority be allowed to either\ compel their attendance at unreasonable times, or suffer injury should they not do so. Every dollar invested in this Company has the pledge set forth in the charter to secure it, and it would be a bad stroke of policy for our legislature to interfere to take away either the vested rights of the company or the guarantees upon which the capital stocks have. been invested remaining in its present shape. The condition can surely not result to the injury of any stock holder, while if the amendment is made it may result disastrously to the rights of many of them. That portion of the amendment which compels the earnings of the road to be applied exclusively to the payment of Texas creditors, is if anything more objectionable. The legislature hav- ing granted a charter, has in my opinion, no right to impose additional terms to the prejudice of any class of creditors, should this feature be engrafted in this charter, Capital may, and will be alarmed, and the result will be that no aid will be obtained from foreign sources. These parties look to the legislature and to the officers of the State to enforce the provisions of the charter, not to impair and destroy them, and it is alone by rigidly main- taining·the terms of every act of incorporation, that we can in- spire that confidence which is necessary to insure the aid so much needed to push forward our enterprises. If after capital has been invested and individuals trusting in the charter have credited the company, th~ legislature steps in to confer especial privileges upon our own citizens, it is idle to expect men of means to assist us; good faith and justice demand that we should respect their rights. The prosperity of every railroad enterprise in Texas is, in my opinion, dependent upon adhering to those principles of fair- ness and right which will regain the confidence of the community
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