Section 1 of that act, however, provides that corporations formed thereunder shall have all the powers and privileges granted by the General Railroad Act, i. e., chapter 140, Laws of 1856, and the several acts amendatory thereof, except as such acts are modified by the provisions of the Street Surface Act. Section 23 of the General Railroad Act provides that the directors of every company formed under the act may, by a vote of two-thirds of their whole number, at any time, alter or change the route or any part of the route of their road, etc. The authority to change must necessarily carry with it the authority to abandon a portion, provided it does not conflict with the words of the statute which prohibit the abandoning of any portion of the "track." The Board understands in this case no track has been laid upon that portion of the route that the company desires to abandon. The changed route would also, undoubtedly, under the constitutional requirements, have to be approved by the local authorities and a majority of the abutting property owners on the streets of the new routes. It may be proper to say, also, in answer to the possible objection that the General Railroad Act does not apply to horse railroads, that the Court of Appeals have lately held that it does so apply. (Matter of application of Washington Street, etc., R. R. Co., 115 N. Y., 442.) It may be further stated that the new General Railroad Act, i. e., chapter 565, Laws of 1890, which, it is presumed, will go into effect on the first of May, as provided by its terms, contains in section 13 the same provisions as the old law hereinbefore cited, even in stronger terms, to wit: "Every domestic railroad corporation may alter or change its route," etc. * * * In view of the above facts, the Board deems that the object desired to be accomplished under this bill can be obtained under the law as it is, and, therefore, there is no necessity for the bill becoming a law. By the Board. VI. 66 REPORT OF THE BOARD ON THE ASSEMBLY BILL ENTITLED AN ACT TO AMEND SECTION 1, CHAPTER 185, LAWS OF 1857, AS AMENDED BY CHAPTER 415, LAWS OF 1886, ENTITLED AN ACT TO PREVENT EXTORTION BY RAILROAD COMPANIES, REFERRED TO IT BY THE GOVERNOR. To the Governor of the State of New York: April 20, 1891. The Board herewith respectfully returns Assembly bill (printed No. 1245) entitled "An act to amend section 1 of chapter 185 of the Laws of 1857, as amended by chapter 415 of the Laws of 1886, entitled 'An act to prevent extortion by railroad companies."" Section 1 of the act provides: "Any railroad corporation which shall ask or receive more than the lawful rate of fare, unless such overcharge was made through inadvertence or mistake not amounting to gross neglect, shall forfeit fifty dollars, with the excess so received, for which an action may, with the consent of the Attorney-General, in the name of the people of the State, be maintained by the party paying the same, one-half for his benefit; but no action can be instituted therefor unless commenced within one year after the cause of action accrued. All laws heretofore enacted imposing a penalty for such overcharge and permitting its recovery by the party paying the same, are hereby repealed. Sections 180, 181, 182 of chapter 565 of the Laws of 1890 and sections 23, 24 and 25 of chapter 563 of the Laws of 1890 and all acts and parts of acts amendatory or in substitution or in place thereof, shall not apply to or affect this act or the acts which this act amends or repeals. The second section of the act amends section 39 of the new railroad law in similar respects, which section is the section in the new railroad law corresponding to the old law. First. The bill amends both the old law and the new law, apparently with the object of securing the results of the amendment in any case. Second. The material amendments to the Law of 1857, as amended in 1886, appear to be, 1. Requiring the consent of the Attorney-General for an action to be brought, and 2. Repealing the provision of the law of 1857 permitting railroads to charge for a fraction of a mile the same as for a mile. The Board sees no reason why the Attorney-General's permission should be obtained for bringing an action to recover excessive charge. The Board deems that there is no good reason why the provisions with regard to the charge for a fraction of a mile should be repealed. It has been acquiesced in for many years in the State, and is properly incorporated in the new railroad law. The phraseology of the bill is involved and not so good as the old law. The rights of the public and of railroads, it appears to the Board, are protected better under the old law and the new law than they would be should this bill become a law. In view of the above, the Board sees no reason why the bill should receive Executive approval. By the Board. VII. "AN ACT IN RELA REPORT OF THE BOARD ON THE ASSEMBLY BILL ENTITLED To the Governor of the State of New York: April 20, 1891. The Board herewith respectfully returns Assembly bill (printed No 1086) entitled "An act in relation to percentages paid by certain street surface railways." The bill is similar in its provisions to one which was referred by you to this Board last year. The Board again repeats its language of last year as follows: "It will be seen that provision is made by the bill for reducing the percentages to be paid by street railroads heretofore constructed when such railroads can show, to the proper city authorities, that the percentage bid is an unjust burden upon them. "Objection is raised to this bill by some upon the ground that the percentage bid and agreed upon by the corporation becomes part of a contract with the city which is entered into deliberately, with its eyes open, and to which it should be bound to conform as any other business man or com pany is bound to conform to the terms of a contract into which he enters. It is also urged that if the franchise turns out extremely profitable the city derives no benefit from such profit over and above the amount that it agreed should be paid into its treasury. "On the other hand, however, advocates of the measure held that the rigid conditions of a contract between private individuals or companies should not be imposed by government upon its citizens when it can be shown that the citizen or corporation is unduly burdened, and, perhaps, broken, by the terms of such contract. "In view of the checks provided by the bill, and of the obligation thrown around the corporation to demonstrate that the burdens imposed by the bid are intolerable, the Board is of the opinion that, on the whole, the act could, without detriment to public interests, and very likely with justice to private interests, receive Executive approval." By the Board. VIII. "AN ACT TO REPORT OF THE BOARD ON THE ASSEMBLY BILL ENTITLED To the Governor of the State of New York: REFERRED ΤΟ IT BY April 21, 1891. THE The Board here with respectfully returns Assembly bill (printed No. 1179) entitled "An act to authorize change of gauge on railroads and to provide for an increase of floating and bonded indebtedness." The Board understands that the bill is introduced to enable the Herkimer, Newport and Poland Narrow Gauge Railway Company to change its gauge and also to issue bonds in excess of the restriction imposed in the original articles of association. It is proper to say that a bill was referred by you to this Board, i. e., Senate bill (introductory No. 333) entitled "An act authorizing the Herkimer, Newport and Poland Narrow Gauge Railway Company to change its gauge," etc. The bill alluded to became a law but no provision was made therein for an increase of bonded indebtedness. In the original articles of association the following words occur, "but no funded debt or mortgage shall be placed upon such railroad, rolling stock or appurtenances to exceed the sum of $3,500 per mile. And the directors of the said company are hereby restricted from creating or contracting any floating indebtedness to exceed the sum of $10,000, or from issuing mortgage bonds of the said company at less than par value thereof, or from issuing any of said bonds to bear a rate of interest greater than six per cent.' The effect intended to be produced by this bill, is to permit the railroad company, which has recently changed hands, to mortgage its property and incur floating debt in the same way as any other company, with the further restriction, however, that it shall meet with the approval of the Board of Railroad Commissioners. The Board deems that the bill could receive Executive approval without detriment to public interests. By the Board. IX. REPORT OF THE BOARD ON THE SENATE BILL ENTITLED "AN ACT TO AUTHORIZE THE ROME, WATERTOWN AND OGDENSBURG RAILROAD COMPANY TO PURCHASE STOCK OF A BRIDGE COMPANY OR COMPANIES,' REFERRED TO IT BY THE GOVERNOR. To the Governor of the State of New York: April 21, 1891. The Board herewith respectfully returns Senate bill (printed No. 564) entitled "An act to authorize the Rome, Watertown and Ogdensburg railroad company to purchase stock of a bridge company or companies. * * Section 1 provides "that the said Rome, Watertown and Ogdensburg Railroad Company be and it hereby is authorized to subscribe for or purchase the whole or any portion of the capital stock of any corporation or corporations heretofore or hereafter organized under the laws of this State, or of the Dominion of Canada, or of both, for the purpose of constructing a bridge across the St. Lawrence river to or from any one of the termini of the said railroad company or of its leased lines, or any other point or points on said river, and to pay for such stock out of the corporate funds of the said railroad company or by issuing, with such consent of stockholders as may be required by law, stock or bonds secured by mortgage or otherwise." The law authorizing a railroad corporation to invest its funds in the stock or bonds of any other corporation is in a confused state. Chapter 146 of the Laws of 1872, as amended by chapter 119 of the Laws of 1875, as amended by chapter 361 of the Laws of 1883, provides that "it shall be lawful for any corporation organized under the laws of this State and transacting business in it and other States or foreign countries, except savings banks * * * to invest its funds in the stocks, bonds or securities of other corporations owning land situated in this State, or such States, provided that loans shall not be made on any stocks upon which dividends shall not have been declared continuously for three years immediately before such loans are made," etc. It will be observed that this law permits a corporation to invest its funds in the stocks, bonds or securities of other corporations, etc., without any restriction as to their value, but it prohibits such corporation loaning any of its funds upon the security of the stock, bonds, etc., of any other corporation unless dividends shall have been continuously paid. It is probable that under the provisions of this law the Rome, Watertown and Ogdensburg company could purchase. the stock of a bridge company. But this law has been repealed, the repeal to take effect on the first of May. The substitute thereof is to be found in section 40 of the new Stock Corporation Law. This section 40 as originally passed provides that, "Any domestic corporation transacting business in this State and also in other States or foreign countries, may invest its funds in the stocks, bonds or securities of other corporations owning lands in this State or such States, if dividends have been paid on such stocks continuously for three years immediately before such investments are made, or if the interest on such bonds or securities is not in default, and such stock or bonds or securities shall be continuously of a market value twenty per cent greater than the amount invested therein." It appears under the new law, therefore, that funds of a domestic corporation cannot be invested in the stock of another corporation unless dividends have been paid continuously for three years. This restriction would undoubtedly prevent the purchase of the stock of a new corporation. The amendment to section 40 proposed by the Revision Commissioners puts still further restrictions upon investments. In view of the above condition of the law, and of the desirability of the Rome, Watertown and Ogdensburg Railroad Company controlling the bridges over which its lines connect with the Canada railroads, the Board deems that the bill can receive Executive approval with benefit both to public interests and to those of the corporation desiring the legislation. By the Board. X. REPORT OF THE BOARD ON THE SENATE BILL ENTITLED "AN ACT RELATING TO THE CORPORATE RIGHTS AND POWERS OF RAILROAD COMPANIES OPERATING OR OWNING STREET RAILROADS," REFERRED TO IT BY THE GOVERNOR. To the Governor of the State of New York: April 21, 1891. The Board herewith respectfully returns Senate bill (printed No. 182) entitled "An act relating to the corporate rights and powers of railroad companies operating or owring street railroads." The bill is general in form, but is intended to apply only, and probably does apply only, to the street railroad in the village of Olean. The Board is informed that at the time the railroad company was organized it laid down routes in its articles of incorporation much more extended than it finds that it can build and profitably operate. It was explained to the Board that at the time of the incorporation it was supposed that the town would grow with great rapidity and that there would be need for such railroad facilities. The town has not grown, however, in the way that was expected, and it is alleged that there is no necessity for the construction of the road as originally laid out. There is no provision of law now covering such a case. The Board is informed that unless this bill becomes a law the company will lose its charter; that if it does become a law the railroad will be equipped with electric motors and the people will derive increased benefit from its operation. Chapter 549 of the Laws of 1888 provides that "the corporate existence of powers of every street surface railroad company which has completed a railroad upon the greater portion of the route |