Proviso.

May issue bonds.

Free passes.

any part thereof, shall be in operation, the said corporation shall be regularly assessed and pay tax for the value of its real estate, including improvements thereon, and personal property, as now taxed in city or cities, township or townships wherein it lies, at the same time and rate, and in the same manner, for the same purpose, and by the same person or persons, as other taxes are assessed in said city or cities, township or townships; provided, that no other tax or impost shall be levied or assessed upon said company.

15. And be it enacted, That the said company shall have power, and it is hereby authorized to make its bonds, and for the purpose of securing their payment, to mortgage its real estate and personal property, railroad or railroads, and all the appurtenances, franchises, powers and privileges and rights belonging thereto, which it may possess under its act of incorporation, to such amount as it may deem expedient, and to sell or negotiate the same at such rate of interest or discount, not exceeding seven per centum, as it may deem for the best interests of the company, without invalidation thereof by virtue of any statute of this state; and the said bonds and mortgages so sold or negotiated, shall be valid and binding in law and equity; and the purchaser or purchasers under a decree in equity of foreclosure founded upon any such bond or mortgage, shall be invested with all the estate, rights, franchises, powers and privileges, which are or may be conferred upon or possessed by said company under or by virtue of its act of incorporation, and any supplement thereto; subject, nevertheless, to all restrictions, conditions and limitations contained therein.

16. And be it enacted, That the chancellor, governor, judges of the supreme court, and members and officers of the legislature, shall have free passage on said road during the time for which they may be appointed to hold office.

17. And be it enacted, That this act shall be taken and deemed to be a public act, and shall take effect immediately. Approved March 22, 1872.

CHAPTER CCCXXXI.

An Act to incorporate the Safety Fund Insurance Company.

1. BE IT ENACTED by the Senate and General Assembly of the State of New Jersey, That all such persons as shall become stockholders to the capital stock hereinafter mentioned, their successors and assigns, shall be and are hereby constituted and made a body politic and corporate, and have power to sue and be sued, by the name and style of "The Safety Corporate Fund Insurance Company;" and the principal office of the said company shall be located in the city of Rahway, in the state of New Jersey, and the board of directors may establish agencies in such other places as they may deem expedient.

name.

2. And be it enacted, That the capital stock of the said Capital stock. company shall be one hundred thousand dollars, to be divided into shares of fifty dollars each, with the privilege of increasing the same to the sum of five hundred thousand dollars.

ers to receive

3. And be it enacted, That Joseph T. Crowell, Joseph W. CommissionMartin, A. Staats Bonney, L. Murray Perkins, Josephus subscriptions. Shann and Christopher D. Marsh, be and they are hereby appointed commissioners to open the books of subscription to the capital stock of the said company, and that ten days' previous notice of the time and place of the opening of said books shall be given by the said commissioners, or a majority of them, by publication in a newspaper in the city of Rahway, and that said books of subscription may be kept open as long as the said commissioners, or a majority of them, shall so elect or choose; provided, however, in case there should be Proviso. any deaths or resignations among the commissioners above appointed, then the remainder may elect others to supply such vacancy or vacancies.

4. And be it enacted, That the said commissioners shall re- Installments, quire to be paid at the time of each subscription by each sub. how paid. scriber to the capital stock aforesaid, an installment of at least ten per cent. of the amount subscribed for in cash, and the balance may be paid for in such first class securities on

May increase capital stock.

Directors to

divide themselves into cla-ses.

Annual election.

real estate or other interest-bearing securities as the commissioners herein before mentioned shall deem sufficient, but that the said association shall not effect or place fire risks, or issue policies, or accept premiums for the same, until at least the sum of one hundred thousand dollars has been fully paid up, either in cash or in such interest-bearing securities as shall be acceptable to and received by the said commissioners.

5. And be it enacted, That the capital stock may be increased at any time to such amount as the board of directors may determine, not exceeding the said sum of five hundred thousand dollars, and they shall open books of subscription for said increased stock, after ten days' previous notice in a newspaper published in the city of Rahway, and the persons who shall then own the stock of the said association shall have the privilege for five days of subscribing for said increased stock, and after that time, if not subscribed for, said increase of stock may be subscribed for by others, and the terms of said subscription, and the mode of payment shall be fixed, prescribed and determined by the said board of di

rectors.

6. And be it enacted, That the affairs of the said association shall be managed and conducted by fifteen directors, of whom at least ten shall be citizens of this state; and the said board of directors shall, by lot or otherwise, at their first meeting, divide themselves into three classes of five each; the first class holding office until the next succeeding election, as hereinafter provided; the term of the second class expiring at the following annual election; and the term of the third class at the election next following the last, so that at each annual election five directors shall be chosen, who shall hold their offices for the term of three years, or until others are elected in their stead; and a majority of said board shall constitute a quorum for the transaction of business.

7. And be it enacted, That the annual election, except for the year eighteen hundred and seventy-two, which may occur as hereinafter provided, shall be held on the second Tuesday in May, in every year, at such place in the city of Rahway as the board of directors may determine, and public notice shall be given in one or more newspapers published in the city of Rahway, at least ten days previous to the time of holding the election; such election shall be held under the direction of any three stockholders, appointed by the board

how filled.

of directors for that purpose; and such election shall be by ballot and by a plurality of the votes of the stockholders and their proxies, one vote for every share of stock; and in case of the death, resignation, refusal to serve, or any other incapacity of one or more of said directors, for the space of two months after such election, then, and in every such case, the Vacancies. remaining directors shall have power to fill such vacancy or vacancies until the next election; and in case it happens that an election for directors shall not be held on the day when, pursuant to this act, it ought to have been held, the said company shall not for that cause be dissolved, but it shall and may be lawful on any other day to hold such election, when so ordered by the board of directors.

8. And be it enacted, That when the books of subscrip- First directors tion shall be closed by the said commissioners, and the sum of one hundred thousand dollars paid in as hereinbefore provided, the said commissioners shall call a meeting of the stockholders by an advertisement for at least ten days in some newspaper, published in the city of Rahway, giving time and place where said meeting will be held, and they shall then proceed to elect the first directors of the company, to be classified as hereinbefore provided; the term of the first class expiring the second Tuesday in May, eighteen hundred and seventy-three, and the said commissioners shall appoint three directors inspectors of said election.

9. And be it enacted, That it shall be the duty of the said oneers. directors on organizing the company at the meeting of said directors, held first after their election and annually thereafter, to choose one person for president, one person for vicepresident at the same time, both of whom shall continue in office till the next annual election, and until others are chosen in their stead; and the vice-president shall perform the duties of the president in case of the death, absence or inability of the president to act; and may elect such other officers as shall be necessary and proper for the successful management of this company.

laws.

10. And be it enacted, That the said directors shall have May make bypower to make and prescribe all such by-laws, rules and regulations as to them shall appear needful and proper for the management of the business and property of the company, to appoint and change such officers as may be deemed prudent or advisable for the interests of the company, and to allow

May make in

surances.

Policies and contracts binding on company.

Stock, how transferable.

May purchase

and hold real estate.

them, respectively, such compensation for their services as they may deem reasonable.

11. And be it enacted, That the said company shall have power to make insurance upon dwelling houses, stores and all kinds of buildings, and upon household furniture, machinery, merchandise, and all personal and other property against loss or damage by fire, and generally to insure against all losses or damages pertaining to fire and marine risks, upon such rates and conditions as shall be stated and contained in their policies of insurance, and to cause reinsurance to be effected whenever they shall deem it expedient so to do.

12. And be it enacted, That all policies of insurance or other contracts founded thereon and authorized to be made, may be made with or without the seal of the said company, and shall be subscribed by the president or by such other officer as may be designated for that purpose by the by-laws of the said company, and attested by the secretary; and when so subscribed and attested and executed, the same shall be binding on the company according to the tenor, intent and meaning of this act and of said policies and contracts; and all such policies and contracts may be made, subscribed and attested and executed, and the business of the said company otherwise conducted, managed and carried on, without the presence of the board of directors, by committees or otherwise, as provided by the by-laws; and the same shall be binding and obligatory on the said company.

13. And be it enacted, That the stock of the said company shall be deemed personal property, and as such assigned and transferred on the books of the company.

14. And be it enacted, That it shall and may be lawful for the said company to purchase and hold so much and such real estate as shall be deemed necessary for the convenient accommodation of the said company, and also to take and hold any real estate or securities, mortgaged or otherwise conveyed or pledged to the said company, or to secure the payment of any debt which may be contracted with said company, and to redeem the moneys so pledged or secured, either at law or equity, and also to purchase on sales made under judgment at law, or done in equity or any other legal proceedings, or otherwise to receive and take any real estate in payment or towards satisfaction of any debt previously contracted and due to the said company; and to hold the same at their will,