1879 Nova Scotia Chapter 64 - An Act to amend the Act incorporating the Western Counties Railway Company and the Acts in amendment thereof, and to repeal certain other Acts

An Act was approved by the Nova Scotia legislature on April 17th, 1879 to allow the Western Counties Railway Company to call back certain seven percent debentures and replace them with five percent debentures. The new debentures were to be backed by the railway's property and its interest in operating the Windsor Branch. A summary of the act appears below, while digital images of the seven pages of the act are shown at the bottom of this page.

Summary of Chapter 64, Acts of 1879

An Act to amend the Act incorporating the Western Counties Railway Company and the Acts in amendment thereof, and to repeal certain other Acts.

Passed April 17, 1879

The goal of this act seems to have been to refinance a first mortgage on the Company. Certain 7 percent debentures were to be exchanged for a similar value of 5 percent debentures.

Section 1 - Sets up a "Western Division" and an "Eastern Division" of the company's interests. The Western Division was the railway between Annapolis and Yarmouth. The Eastern Division was the company's right, title and interest in the Windsor Branch Railway between Windsor and Windsor Junction, and the running rights between Windsor Junction and Halifax. Certain other terms were defined. The "Land Grant" were lands granted to the company by the provincial government in Digby and Yarmouth counties.

Section 2 - repealed Section 5 of Chapter 43 of the acts of 1873, section 2 of Chapter 18 of the acts of 1875, all of Chapter 73 of the acts of 1876, all of Chapter 71 of the acts of 1877, and all of Chapter 54 of the acts of 1878. Chapter 43 of 1873 - Township of Yarmouth - capital stock. Chapter 18 of 1875 - [unknown - editor]. Chapter 73 of 1876 - regarding debentures. Chapter 71 of 1877 - [unknown- editor]. Chapter 54 of 1878 - regarding debentures.

Section 3 - Cancelled a mortgage made in 1875.

Section 4 - Allowed £300,000 of 5% debentures to be issued.

Section 5 - Of the £300,000, £210,000 were to be first mortgage "A" stock. £90,000 were to be first mortgage "B" stock.

Section 6 - The "B" debenture shares had first and preferential charge on the revenues of the Western Division.

Section 7 - The "A" debenture stock came after the "B" debenture interest was paid, but was chargable against the Western Division, the Eastern Division, and the Land Grant.

Section 8 - A sinking fund was provided which would redeem £1,350 worth of the type "B" debentures each year, along with payment of interest due.

Section 9 - The directors of the company could mortgage the Western Division, the Eastern Division, and the Land Grant, as they deem needed.

Section 10 - Separate accounts were to be kept for each of the Western Division, the Eastern Division, and the Land Grant.

Section 11 - The debentures could be transferred the same way as other stock in the company, using the same procedures.

Section 12 - The A and B debentures were to be issued in amounts of 100 pounds sterling.

Section 13 - Holders of debenture stock did not have voting rights that holders of ordinary stock, unless there is a failure to pay the interest on the debentures.

Section 14 - Previously issued seven percent debenture bonds totalling £280,000 plus interest would be cancelled.

Section 15 - Technical details regarding timing.

Section 16 - Holders of the previously issued seven percent debentures must exchange their debentures for the new five percent debentures when requested by the company.

Section 17 - After the type "B" debentures have all been redeemed then the type "A" debentures shall be a first charge on the Western Division, the Eastern Division, and the Land Grant.

Section 18 - Any irregularity in the meetings of the board of directors would not affect the value and legality of the new debentures.

Section 19 - The holders of the seven percent debentures must agree to the provisions of this current act regarding the change of their debentures from seven percent ones to fiver percent ones.

Section 20 - Any existing law that was inconsistent with this new act was repealed.