May sell bonds.

Security for bonds issued.

Rules for government.

par, at the option of the holders, if such election be signified in writing to the company three years before the maturity of said bonds.

$ 18. That the directors of said company be and they are hereby authorized to negotiate and sell the bonds of the said company, at such times and in such places, either within or without this state, and at such rates and for such prices as in their opinion will best advance the interests of the company; and if such bonds are thus negotiated or soid at a discount below their par value such sale and disposition thereof shall be as valid and binding on the company, in every respect, as if they were sold or disposed of at their par value.

19. That the said company, in securing the payment of said bonds by a mortg ge or deed of trust on the road property and income of the company, shall have power to execute a mortgage or deed of trust, aforesaid, to secure the payment of the full amount of bonds and interest which the company may at the time the said deed of trust or mortgage bears date or at any time thereafter desire to sell and dispose of, and may execute and sell, from time to time, such amounts of said bonds and of such dates and payable to such person or persons as to the directors of said company may seem advisable, till the whole amount of bonds mentioned in such mortgages or deeds of trust is executed and sold, and the said mortgage or deed of trust shall be as valid and effectual to secure the payment of the bonds so executed and sold and of every part thereof as if the same and every part thereof had been executed of even date with the said deed of trust or mortgage.

20. The board of directors shall have power to make all needful rules, regulations and by-laws, for the government of said company, not provided for nor inconsistent with this incorporating act.

21. This act shall be deemed a public act, and shall be liberally construed, and shall take effect from and after its passage.

APPROVED March 31, 1869.

in force March AN ACT to incorporate the Rock Falls and Chicago Railroad Company.

26, 1869.

Corporators.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That Augustus P. Smith, Leman L. Emmons, Charles Wright, James A. Patterson, Marcus L. Coe, William A. Sanborn, Alonzo Golder, and their associates and successors, are hereby made a body corporate and politic, by the name and style

ers

of "The Rock Falls and Chicago Railroad Company," Name and style. with perpetual succession; and, by that name may sue and be sued, plead and be impleaded, in any court of law and Corporate pow equity; may make and use a common seal, alter and renew the same at pleasure; and are hereby vested with all powers and privileges which are or may be necessary to carry into effect the purposes and objects of this act, as herein set forth. Said company are hereby authorized and empowered to May locate road locate, construct, and complete a railroad, with a single or double track, from a point in Rock Falls, in Whiteside county, upon the most eligible route, to and into the city of Chicago, and, for this purpose, the said company are authorized to lay out and locate their said road, not exceeding one hundred feet in width, through the whole length of said route; and for the purpose of cuttings, embankments, stone and gravel, make take and appropriate as much more land as may be necessary for the construction and security of said road.

stock.

Directors

to

2. The capital stock of said company shall consist of Amount capital one million dollars, which may be increased to any amount not exceeding the actual cost of constructing and equipping the said road, to be divided into shares of one hundred dollars each. All the corporate powers shall be vested in and exercised by a board of directors, who shall be chosen manage affairs. by the stockholders of said company in the manner herein provided for, and who shall hold their offices for one year or until their successors shall be elected and qualified. Said directors shall elect one of their number president, and appoint such other officers as they may think necessary to the proper management of the business of said company.

§3. Said corporation is hereby authorized to make Survey of route. surveys of the ground and determine the most eligible route whereon to construct said railroad; and it shall be lawful for said company to enter upon and take possession of and use all such lands and real estate as may be necessary for the construction and maintenance of said railroad, its depots, side tracks, water stations, engine houses, machine shops and other buildings and appendages necessary to the construction of said railroad: Provided, that Compensation all lands and real estate entered upon and taken possession of by said corporation, for the purpose aforesaid, shall be paid for by said company in the manner provided for by law where lands are necessary for the construction of public roads, canals and other public works, unless otherwise. mutua ly agreed by the owner or owners thereof and said company.

for land.

Annual meetin of stock

4. The annual meeting of the stockholders of said company shall be held at such place on the line of said holders. railroad and at such time as may be provided for in the by-laws of said company; and at such meetings each stockholder shall be entitled to cast one vote for each share of

stock standing in the name of such stockholder, and absent stockholders inay vote by proxy authorized in writing. books 5. The persons named in the first section of this act for subscription are hereby appointed commissioners, to open books for

Open

Election directors.

the subscription to said stock; and whenever fifty thousand dollars shall have been subscribed and five per cent. thereof paid in, said commissioners shall call a meeting of the stock cubscribers, notice of which time and place of meeting shall be given, either personally or in writing, to each subscriber, five days at least before said time of meeting, or by publication in two daily papers in the city of Chicago, of ten days, at least, prior thereto; and at such meeting said subscribers may elect a board of directors and transact other business necessary to the organization of said company; and when said directors are elected said commissioners shall transfer to them said books of subscription and pay over to their treasurer or other financial agent, on the order of said directors, all sums of money paid in by the subscribers to said stock. No person shall be eligible to the office of director unless he shall be a stockholder; and whenever such director shall cease to be a stockholder his term of office as director shall expire.

Stock subscriptions

legal voters.

6. The directors of said company are hereby authorized to receive subscriptions to their capital stock from any corporation, county, city or town, on such terms and in such amounts as they may deem for the interest of said company, in accordance with the by-laws of said company: Submitted to Provided, no such subscription shall be made by any county, city or town, until the question of making subscription shall have been submitted to a vote of the legal voters of such county, city or town, at a general election or a special election to be called for that purpose by the corporate authorities of such county, city or town, and voted for by a majority of the legal voters voting at such election; and in all cases of elections relative to such subscriptions, at least thirty days' notice of such election shall be given by the proper authorities, in the manner prescribed by law-said notice to specify the amount of such proposed subscription.

Rates of toll.

7. The said corporation may take and carry, for hire, on said railroad, any persons, merchandise and other property, by steam or other power, and receive such rates for carriage and transportation of passengers and freight thereon as the directors may establish; and said directors are hereby authorized to make all necessary rules and regulations for the carriage of freight and passengers and for the transaction of the general business of said company. And in case of a vacancy occurring [in] the board of directors of said company, at any time prior to an annual election, such vacancy may be filled for the remainder of the year by the remaining directors.

88. Whenever it shall be necessary in the construction Intersections. of said railroad to intersect or cross a track of any other railroad or stream of water or water course or highway, on the route of said railroad, it shall be lawful for the company to construct the road across or upon the same: Provided, said company shall restore said railroad, stream of water, water course, road or highway, thus intersected or crossed, so nearly to its former state, so as not to materially impair its usefulness.

money.

§ 9. Said corporation shall have power to borrow May borrow money, at a rate of interest not exceeding ten per cent. per annum, payable semi-annually, and may execute bonds therefor, with interest coupons thereto attached, and secure the payment of the same by mortgage on the whole or any part of said railroad property then existing or thereafter to be acquired, and may annex to said mortgage bonds the privilege of converting the same into the capital stock of said company, at par, at the option of the holder, if the said bondholders shall signify, in writing, their desire so to do, to the board of directors of said company, one year or more prior to the maturity of said bonds.

Organized towns may take

10. To aid in the construction of said road by said company any incorporated town or any township organized stock. under township organization law of this state, along and near the route of said road, may subscribe to the capital stock of said company in any sum not exceeding ten per cent. of the assessed valuation of said town or township at the last preceding assessment for the purpose of general taxation.

legal voters.

§ 11. No such subscription shall be made until the, Submitted to question has been submitted to the legal voters of such town or township in which the subscription is proposed to be made; and the clerk of such town or township is hereby required, upon the presentation of a petition signed by at least ten citizens, who are voters and tax-payers in said town or township, in which the amount proposed to be subscribed shall be stated, to post up notices at three public places in each town or township, which notices shall be posted not less than thirty days before the day of holding such election, notifying the legal voters of such town or township to meet at the usual place of holding elections in such town or township, for the purpose of voting for or against such subscription.

12. If it shall appear that a majority of all the legal voters of such town or township voting at such election have voted "For subscription," it shall be the duty of the president of the board of trustees or other executive officer of such town, and of the supervisors in townships, to subscribe to the capital stock of said railroad company, in the name of such town or township, the amount so voted to be subscribed, and to receive from said company the proper Vol. III-24

When majority scription.

in favor of sub

Execute bonds. certificates therefor; he shall, also, execute to said company, in the name of said town or township, bonds, bearing interest at ten per cent. per annum, which bonds shall run for a term not more than twenty years, and the interest on the same shall be made payable annually, and which bonds shall be signed by such president or supervisor and be attested by the clerk of the town or township in whose name the bonds are issued, and it shall be his duty to make out a record of the issuing on said bonds. Said bonds shall be delivered to the president or secretary of said company, for the use of said company.

Duties of the § 13. It shall be the duty of the clerk of any such town or township clerks. township in which a vote shall be given in favor of subscription, within ten days thereafter, to transmit to the county clerk of their respective counties a transcript or statement of the vote given and the amount so voted to be subscribed, and the rate of interest to be paid: Provided, that when elections shall be held and bonds issued, as aforesaid, it shall be the duty of the clerk of such town or township to file with the county clerk of their respective counties, within ten days after the issuing of said bonds, certificates of the amount of bonds issued and the rate of interest payable thereon.

Duties of the county clerk.

Duties of the county treasurer

§ 14. It shall be the duty of the clerk of said county, annually, after the execution and delivery of such bonds, aforesaid, to compute and assess upon all taxable property returned by the assessor of such town or township a sum sufficient to pay the interest and cost of collection and disbursements upon all bonds so issued by the respective towns or townships, which tax shall be extended upon the collectors' books as other taxes are, and collected, and, when collected, shall be paid to the treasurer of the county; and such town or township may, when providing for the levying and collecting of other taxes, also assess upon the property of such town or township any rate not exceeding three per cent., in any one year, upon the assessment, to provide a fund for the redemption of the principal of such bonds as or when they become due. Said tax to be levied and collected as other taxes are; but no tax shall be computed, assessed or collected or any interest paid, to be applied upon said bonds, unless such bonds have been executed and delivered.

15. It shall be the duty of the county treasurer to pay out, on the presentation to him of the bonds issued by any such town or township aforesaid, the amount due upon such bonds for interest and for principal, when any tax shall be assessed and collected to pay principal, any money in his hands for that purpose, and indorse any payment of interest or principal, upon said bonds; and when said bonds shall be redeemed and paid he shall receive and cancel the same and return the same to the president or