Railroad Promotion And Capitalization in the United States

Cover Railroad Promotion And Capitalization in the United States
Railroad Promotion And Capitalization in the United States
Cleveland, Frederick Albert, 1865- [from Old Catalog]
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355.
»L. 1833-4: 196. •Ibid., c. 385.
168 LEGISLATION AN ELEMENT IN PROMOTION Maryland chartered the Susquehanna Bank and Bridge company, with power to employ half its funds in the banking business.* In an amendment to the charter of the Delaware and Hudson canal granted by New York in 1824, the com- pany was given the right to exercise banking powers during a period of twenty years.^ New Jersey, the same year> granted a charter to the ''Morris Canal and Banking com- pany" which gave the enjoym
...ent of banking functions through a term of thirty n^ne years.* Maine, which in 1823 had authorized a lottery for the benefit of the Cumberland and Oxford canal, chartered "the Canal bank*' in 1825, with authority to invest one-fourth of its paid subscriptions in the stock of the canal company/ The directors of the Blackstone canal announced in 1831 that they had received a charter for a bank to be operated for the benefit of the company. Shareholders were privileged to duplicate their holdings of canal stock with shares in the bank; and three- fifths of the funds thus raised by the bank were to be ex- changed for stock of the parent company.* The same year, the ''New Orleans Canal and Banking company" was chartered by Louisiana to construct a waterway from Lake Ponchartrain to the Mississippi at New Orleans,* \\Tien the Western railroad project w^as in danger of aban- donment in Massachusetts, a proposition was made for the incorporation of a ** Western Railroad bank," to be capitalized at $5j00o,ooo.' The time w^as thought favorable, for it was in that year that the charter of the second United States bank expired.

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