Consolidation, Merger, Lease, or Purchase of Railroad Companies Whose Roads Form a Continuous Line; Issuance of Stocks and Bonds by Consolidated Companies

  1. Law
  2. Georgia Code
  3. Public Utilities and Public Transportation
  4. Railroad Companies
  5. Incorporation and Consolidation of Railroad Companies and Requirements as to Directors and Officers
  6. Consolidation, Merger, Surrender of Franchise, and Dissolution of Companies
  7. Consolidation, Merger, Lease, or Purchase of Railroad Companies Whose Roads Form a Continuous Line; Issuance of Stocks and Bonds by Consolidated Companies

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  1. Any railroad company incorporated under this chapter shall have authority to sell, lease, assign, or transfer its stock, property, and franchises to, or to consolidate the same with those of, any other railroad company which is incorporated under the laws of this or any other state or of the United States and whose railroad within this state connects with or forms a continuous line with the railroad of the company incorporated under this chapter, upon such terms as may be agreed upon. Conversely, any such corporation organized under this chapter may purchase, lease, consolidate with, absorb, and merge into itself the stock, property, and franchises of any other railroad company incorporated under the laws of this or any other state or the United States whose railroad within this state connects with or forms a continuous line or system with the railroad of such company incorporated under this chapter upon such terms as may be agreed upon.
  2. Any railroad corporation formed by the consolidation of one or more railroad corporations, organized under the laws of this state or under the laws of this state and any other states, with one or more corporations, organized under the laws of any other state or under the laws of this and of other states, may issue stocks and bonds as provided for in this chapter in such amounts as it may deem necessary for the purpose of paying, or exchanging the same for, or retiring, any bonds or stocks theretofore issued by either of the corporations so merged, purchased, or consolidated, or for any other purpose. Such stocks and bonds may be issued to the amount authorized by the laws of the state under which either of the corporations so consolidated was organized. Any bonds issued by the corporation may be secured by mortgage or trust deeds upon its real or personal property, franchises, rights, and privileges, whether within or without this state.
  3. No railroad company shall make any contract under this Code section with any other railroad company which is a competing line if such contract is calculated to defeat or lessen competition in this state or to encourage monopoly.

(Ga. L. 1892, p. 37, § 18; Civil Code 1895, § 2179; Civil Code 1910, § 2597; Code 1933, § 94-318.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 13 Am. Jur. 2d, Carriers, §§ 55 et seq., 93. 19 Am. Jur. 2d, Corporations, §§ 2608, 2609, 2629, 2630. 65 Am. Jur. 2d, Railroads, §§ 198 et seq., 207.

C.J.S.

- 19 C.J.S., Corporation, §§ 794-796, 809. 74 C.J.S., Railroads, §§ 478 et seq., 485, 486, 487, 490 et seq.

ALR.

- Carrier's certificate of convenience and necessity, franchise, or permit as subject to transfer or encumbrance, 15 A.L.R.2d 883.


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