In force Feb.[February] 13, 1835.
AN ACT supplementary to the act Incorporating the Jacksonville and Meredocia Rail Road Company.
1Company may take mortgages on real estate for subscription to capital stock.
Proviso.
Sec.[Section] 1. Be it enacted by the people of the State of Illinois, represented in the General Assembly, 2 That for the purpose of facilitating the taking the stock of the “Jacksonville and Meredocia Rail Road Company,”3 it shall be lawful for any person who is the rightful owner of any tract or tracts
of unincumbered land, in Morgan county, in this State, to mortgage to the president and directors of said company, forty acres of land, as aforesaid, for every share of fifty dollars which he may
have subscribed to the stock of said company; which mortgage shall bind the land, so mortgaged, for the payment of the principal
and interest of the stock by him subscribed: Provided, That the interest shall not exceed the rate of six per cent. per annum, and that the time and place of the payment of the principal and interest, shall
be stipulated in said mortgage; and, in no event, shall the lands, so mortgaged, be
liable for a greater sum than the principal and interest of the stock for which it
may have been originally pledged.4
May take loans.
May loan out money.
Sec. 2. It shall be lawful for said company to effect a loan or loans, of a sum of money sufficient to pay the stock so subscribed,
and execute, as a security therefor, a mortgage or mortgages, on all or any part of
the lands which may have been mortgaged to said president and directors, for the security
of any stock subscribed as aforesaid; which mortgage shall be good and valid, to all
intents and purposes, for the payment of any sum so borrowed by said company: Provided, That said mortgage shall not bind any tract of land beyond the amount of the principal
and interest of the stock for which it may have been mortgaged to said company. The directors of said company may loan out, at any rate of interest authorized by the laws of this State, any sum of money which they may have in their hands, belonging to said company, either to a bank or to individuals, on such terms and conditions as they may deem
best calculated to promote the interest of said stockholders.
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Shall keep separate account with each stockholder.
Sec. 3. The directors of said company shall cause an account to be kept with each stockholder who has mortgaged land to
said company as aforesaid; and it shall be their duty, after retaining a sum sufficient to pay
the interest which may be due on the money borrowed, to pay over to them, every six
months, any excess which may have been collected from tolls, or may be due and paid
for interest on the money loaned by said company; and in the event of the tolls and profits of said road failing to pay the interest
which may accrue upon the sum so borrowed by the company, together with an equal amount to other stockholders, then they shall be bound to
pay to said directors of said company, after twenty days notice, the amount of interest which may be found deficient, not
exceeding the rate of six per cent. per annum; and if they shall fail, for the period of six months after such notice, to pay said
interest, the directors may order said stock, by them subscribed, together with all
payments by them made, to be forfeited to the company.
May borrow money on a pledge of the work.
Sec. 4. It shall be lawful for the directors of said company, at any time after the sum of fifty thousand dollars shall have been expended in
the erecting of said road, to negotiate a loan or loans, on a pledge of the rail road
or trackway aforesaid, and the tolls and profits arising therefrom, to aid and assist
in the completion of said work.
Approved, Feb. 13, 1835.
1William Thomas introduced SB 39, originally titled “A Bill concerning the Appropriation of the Revenue of the Several
Counties in this State,” in the Senate on December 31, 1834. On January 3, 1835, the Senate voted 16 to 8 to strike out
everything after the enacting clause. The Senate tabled the bill. On February 7,
the Senate took up the bill and referred it to a select committee. The select committee
reported back the bill on February 10 with an amendment, in which the Senate concurred.
The Senate passed the bill as amended on February 11, amending the title so as to
read “A Bill Supplementary to the Act Incorporating the Jacksonville and Merdocia Rail Road Company.” On February 12, the House of Representatives referred the bill to a select committee. The select committee reported back the
bill without amendment, and the House passed it. On February 13, the Council of Revision approved the bill and the act became law.
Illinois House Journal. 1835. 9th G. A., 1st sess., 540, 545-46, 549, 558, 560; Illinois Senate Journal. 1835. 9th G. A., 1st sess., 159-60, 175, 459, 475, 495, 512, 521, 522, 528.
2On January 8, 1835, the Senate struck out everything after the enacting clause.
Illinois Senate Journal. 1835. 9th G. A., 1st sess., 175.
Printed Document, 2 page(s), Laws of the State of Illinois, Passed by the Ninth General Assembly, at their First Session (Vandalia, IL:
J. Y. Sawyer, 1835), 185-86, GA Session: 9-1