-8the
cause of right and justice, I earnestly recommend that the amendment
so long under discussion and so often approved by the people be
submitted to the voters of Texas. In laying this amendment before
you for your thoughtful consideration, and in suggesting its submission
to the people, I am not unmindful of the machinery that selfish interests
will employ to defeat its submission. Doubtless every engine of corporate
power will be put in motion to defeat it.
The amendment as here proposed reads as follows:
"RESOLUTION NO. 1.
"A joint resolution by the Legislature to amend the Constitution of
the State of Texas, by adding Article 12a thereto, which said article
shall be divided into Sections 1, 2, 3, 4, 5, 6, 7, 8 and 9.
"Be it enacted by the Legislature of the State of Texas: That the
Constitution of the State of Texas shall be so amended as to add Article
12a thereto, which said article shall be divided into nine sections and
read as follows:
"Article 12a.
"Section 1. That among other rights the power in this State to
authorize, issue, or execute bonds or other evidences of debt, secured by
liens on corporate property and all kinds of stock and shares of stock,
or -the execution of any kind of bonds or liens or mortgages or stocks
or shares of stock by corporations, or through the receivers thereof, in
this State, is a special privilege or franchise, the right and duty to
supervise, regulate, limit, restrict and control which for the protection
of public interests have always been, are now, and shall continue to be
vested in and imposed on the State, to be exercised and performed
according to the provisions of the Constitution and laws of Texas.
"Sec. 2. That no insolvent corporation shall have the right to do
business within or to exercise or retain any franchise or charter granted
from the State of Texas.
"Sec. 3. Every corporation whose assets and liabilities and transfers
of stock are required to be kept on record in the corporation books in
this State, chartered in or doing business by the authority or consent,
or under the laws, of this State, shall be deemed and held to be, and it
is, insolvent when its indebtedness, added to its capital and other stock
at par value and the bonds outstanding against its property within this
State, shall amount in the aggregate to more than three times the valuation
at which the property of the said corporation in this State was last
rendered for taxation by the corporation or through its agents or representatives,
or to 75 per cent more than the valuation of its said property
when the Railroad Commission or any lawful authority, acting
expressly under and by virtue of the laws of this State, has fixed thereto
one year before the institution of suit under this amendment.
"Sec. 4. That any corporation chartered by virtue of or exercising
rights or franchises under the laws of this State that has issued or has
outstanding any fictitious bonds or stock or shares of stock, which, if
legal, are required by the law to be, or are, kept of record, or are required
