etc., open to public inspection? It is idle to propose such a thing when its accomplishment is entirely out of the question. There, too, are the foreign insurance companies of England, Scotland, Germany, France, and the countries of the world over, as also of the other States of the Union, that have their offices and agencies here, engaged in the business of insuring property for the benefit of our people. Would you require them to keep their records here, with all the information required by an exact compliance with this proposed section. It could not be done, and the result would be to drive all those companies from us, to the great injury of our people. It is an accommodation to our people to have the benefit of foreign insurance companies. An extensive conflagration in the City of San Francisco alone would destroy every local insurance company of this State. As was the case in Chicago, not one would survive a great conflagration. There is not sufficient capital invested in that business in this State to protect our property. Without the protection of the foreign insurance companies and their capital, would our people be secure against loss by fire? Every one will concede the foreign companies are a benefit to all who wish to effect insurance, and to drive them from us, by onerous provisions like this, would only be doing injury to our own people.

REMARKS OF MR. BARNES.

MR. BARNES. Mr. Chairman: One word more. This section has in it more than is contemplated by the gentleman from Los Angeles, General Howard. It requires now as it stands that every corporation shall maintain an office in this State for the transaction of business, where transfers of stock shall be made, and that books for that purpose shall be kept, and in those books, which shall be open to public inspection, shall be kept all the dealings of the corporation. I would call his attention to this, that the only object we have in requiring books to be kept is to show who are stockholders, in order that the creditors of the company may know to whom he has to look, and that is all of it. It is not as a matter of general information. This article does not come under the personal liability clause, as claimed by the gentleman from Nevada, Mr. Cross. In England they have no such thing as personal liability, and there is only a corporate liability. You cannot hold the stockholders liable because an agent comes here to do business. They have no such provision as that. They have a limited liability Act, where the liability of the stockholder is prescribed in a certain way, not like ours. But it does not impair the security of the one who deals with the company. It requires that they shall transfer their stock. They might do it As I have stated, these foreign companies, whether incorporated in and nobody know it. It is a useless change that accomplishes no earthly Europe, or in New York, or Pennsylvania, or in any other sister State, good to anybody. If it could be pointed out to us what good it could do, doing business here, are beneficial. No one is compelled to do business it would be all well enough. The gentleman from Los Angeles says we with them unless he chooses to do so. If they have offices here he can go have a right to know if the company is solvent. Well, sir, I appeal to either to them, or to our home offices for information, and effect his any sensible man if the list of stockholders of the Liverpool, London insurance according to his own judgment. I have no interest in any and Globe Insurance Company were published, what man on the foreign insurance company, and I have no more interest in this matter face of the earth-or this part of the earth-would know whether they than any other citizen; but every business man will tell you that if this were solvent or not? Who would know, and how would they know? provision is adopted in the Constitution, it will necessarily drive from They would be names we never have heard of. We would not know our borders all insurance companies not in rporated in this State. This them, and no living man in the State of California would be able to tell would be a calamity. They could not comply with the conditions pro-whether they were solvent or not. Print the names of London direcposed in this provision. They could not bring their books and records tors, and who among us would be any wiser than before? We know here for our inspection. A similar provision, so far as my knowledge our neighbors in this State-whether they are good or not, or we think extends, is not contained in the Constitution of any other State. Our we do though sometimes we get badly fooled on that. Constitution should be framed in the interest of our people, and for our can be of no assistance to require a list of the directors in London, and people, and their government. If we attempt to give to its provisions a list of the stockholders in London, and a list of the transfers. Every extra territorial force, as in this proposed section, our action would not time a man bought or sold a share of stock, it would have to be shown on be justified by any pressure of public sentiment. I have heard of no the transfer books in the San Francisco office. All the transfers that complaints against the foreign insurance companies doing business in take place on 'Change in London, or Liverpool, or Hamburg, or Paris, this State. On the contrary, our people have relied upon them for pro- would have to be noted on the agents' books here. Every time a stocktection in consequence of the inadequate security afforded by our home holder dies in any of the great cities, the records of his estate must be companies. Suppose the European companies, and those of New York, forwarded here, in order that we may know who the administrator sold the New England States, etc., should be driven out of business here, his stock to, and when we find out we know just as much as we did would our people feel equally safe with the sole protection of our home before, and no more. Now, what sense is there in it? The effect of it, companies? The proposition is too apparent to admit of argument. as Judge Hager has said, will be to drive this desirable class of business men out of the State. As a matter of common sense this provision should be confined to the creatures of our own laws. THE CHAIRMAN. The question is on the amendment offered by the gentleman from Stanislaus, Mr. Schell.

This proposed section should be made to apply only to our home companies, organized and doing business under the laws of this State. I will favor any provision making our home corporations subordinate to our laws, but I am unwilling to place in the Constitution an imperative provision which will prevent any foreign corporation from doing business in this State, and from the evil effects of which we cannot be relieved by future legislation.

REMARKS OF MR. HOWARD.

REMARKS OF MR. CASSERLY.

But I say it

MR. HOWARD, of Los Angeles. Mr. Chairman: I think I may point my friend to the example of a certain Governor of Rhode Island, who never spoke unless he had something to say, and always left off when he had done. Now, I disagree with him on this proposition altogether. These foreign corporations do not transact business here for the purpose of accommodating our people, they come here for the purpose of making money--nothing else. Now why treat them any better than our own corporations? Why should they have any immunities which our home corporations do not possess? The object of this pro-ested in the business of other parties, or employed by them, who would vision is obvious; that the public may know who the parties are that they are dealing with; that they may know whether or not the corporation is solvent, and that we may have some security for the business of the country. Why foreign corporations should not be compelled to give that information I do not know

MR. HAGER. We might require them, for instance, to deposit insurancé money in order to do business.

MR. CASSERLY. Mr. Chairman: I am one of those who believe it is the duty of corporations to exhibit their books when persons-stockholders, creditors, or otherwise, whoever may have an interest in themdesire to inspect them. And if this section was not so strict I would be very willing to vote for it. It seems to me as it stands to be an obstruction to the transaction of business by the old corporations. The gentleman from Solano, I think, touched the point when he urged as an objection that any number of people, at any hour in the day, or under any circumstances, would have a right to go to the office of a corporation and obstruct the business of the company, get in the way of the clerks, out of mere idle curiosity, having no interest in the affairs of the company whatever. But the real difficulty is with malicious persons, intercongregate and spy upon the books to the great detriment of the business. Now, sir, I have no particular admiration for corporations. I was brought up in a political school that instilled into me a wholesome jealousy of corporations, and I have it to-day; it is bred in my bones, and I suppose I shall retain that jealousy until I die. I am fearful of these enormous aggregations of wealth and power which accompany modern corporations. But, sir, where is the sense, where is the judg dis-ment in our clamoring against foreign corporations? Some gentlemen have said that they should not stand on any better basis than our own corporations. I do not know that they should; neither should they be discriminated against, for they certainly serve a very useful purpose here. Whenever there is any great property to insure, we go to these foreign companies which have almost unlimited capital. There is not capital enough at home to take all the risks. The foreign corporations never attempt to interfere with legislation. If there be any class of corporations that are wholly innocent of any wrong against us it is this class of foreign business corporations. It seems to me that it would not drive them away. Have we forgotten the fate of Chicago? Burned out in one night, millions of property destroyed. American insurance MR. WILSON. The directors are published, not the stockholders. companies bankrupted and almost annihilated; and but for foreign MR. HOWARD. I have seen some that gave the names of stock-insurance companies Chicago would hardly be there to-day. I do not holders; it may not be a general custom. But there is no trouble about believe in driving them out of the State by hostile legislation. If they that thing. There is no difficulty in their doing it: They are as able should be driven away there is no safety for San Francisco from a great to do it as State institutions, and why they should not be required to do calamity by fire, for who does not know that San Francisco is as comit I am unable to see. If they choose to withdraw from the country bustible as any city in the world? I hope, therefore, that this section that is their business, but we shall not tolerate them here unless they will be materially amended before being finally adopted. are responsible, unless they have capital, unless they are solvent. It MR. HOWARD. Mr. Chairman: As soon as it is in order, I shall move strikes me that it is our duty to see that they have capital. The pro-an amendment to insert after the word "inspection" the words "by vision proposes that the public shall be enabled to obtain the necessary every person having an interest in the same." information to enable them to determine that fact, to determine whether MR. SCHELL. Strike out the word "public" and I will accept the the corporation can be trusted or not.

MR. HOWARD. That does not go at all to the question we are cussing. Not at all. It affects it in nowise. Now it may be important to us to have foreign insurance companies here. But it is not important to have those here who are not solvent, who are not trustworthy, who have no capital; and we know that a great many of these life insurance companies have no capital, and are little better than frauds. Now, sir, there is no difficulty about corporations being able to comply with this provision, for I have never known one that did business on any kind of an honest basis, that did not give the names of the stockholders, and the amount of stock subscribed and paid up. Therefore there is no difficulty whatever about this law. They are here for the purpose of mak-be to the interest of the people of this State to pass such laws as would ing money. They do not exist here by law, they are here as a matter of comity.

amendment.

MR. HOWARD. Very well, strike it out. I do not think the word "public" adds any force to it. The gentleman accepts this amendment, to add the words, by every person having an interest in the same.”

SPEECH OF MR. WYATT.

going to know whether it is a true entry or not? You might go to England and make inquiries, but how many of the people who deal with these companies are going to that trouble and expense, and if they did the agent might be out of reach by that time. There is another objection, it seems to me, and that is this: it requires every corporation, other than religious, benevolent, and educational, to keep an office here. Now there are religious and benevolent institutions here in this State, who, I believe, have capital stock. Now will we include them? It has been suggested by one gentleman that those words be stricken out, and in their place, the words "corporations having capital stock," and I hope that amendment will be adopted. The fact of a corporation being religious does not necessarily prevent its being bad, according to my experience.

REMARKS OF MR. HALL.

MR. WYATT. Mr. Chairman: I do not rise for the purpose of modifying the section to make it read smoothly, or for the purpose of making it fit home or foreign corporations any better than it does now. For, sir, if I could have my way, I would at one fell swoop wipe them all from the face of the earth. And if that is radical, then I must say I am a radical upon the subject. In discussing corporations, if you attempt to restrict them in any way whatever, or exercise any control over them, then we are told that they cannot live, and that they will be forced to quit the business. You must not put them on a level with other classes of citizens, or they cannot live; they will have to leave the country if you MR. HALL. Mr. Chairman: I do not see why there should be any do. They must be privileged over and above all other classes of citizens. discrimination between home and foreign corporations. I think both If you undertake to restrict home corporations, then the cry is raised that should come under the same rule, and if we apply this process of reguyou are discriminating against domestic corporations and giving foreign lation, it certainly should apply to all. But the matter now which corporations an advantage over them. If you say anything about gov-seems to be of greater importance is the motion made by the gentleman erning foreign corporations, then you hear the cry raised that the people from Stanislaus, to strike out the word "public." I think that motion cannot do without them, and that they will be driven from the country. should be sustained. There is a very dangerous principle embodied Now, my proposition is that foreign corporations here are not doing busi- there. The right which it gives to the public may be perverted to ness as eleemosynary institutions. If they are here, they are here improper use. We know that whether justly or unjustly, there are a because it pays. They are here to make money, and for no other pur-class of corporations, created by private individuals, which are in bad pose. And if they cannot stand and do business upon the same footing odor at the present time. Some have good grounds, and others may be as the others, then let them bundle up their traps and take their freight suspected without any grounds. Such a provision as this absolutely to the mother country as soon as possible. to enter the place of business of the corporation, and inspect the upon any person and every person in the community, the right books and the business, to overhaul every book connected with the institution. This is no more than a fair construction of the language. Look at it:

confers

MR. SCHELL. I rise to a point of order, that the gentleman is not discussing the question before the committee. I do not understand that to be the question. A motion was made to strike out the word "public." In the first place, the Chairman of the Committee on Corporations offered an amendment; an amendment to the original report of the committee. "SEC. 14. Every corporation, other than religious, educational, or Then I made a motion to strike out the word "public." That is the benevolent, organized or doing business in this State, shall have and question now before the house. I think the committee is bound to vote maintain an office or place in this State, for the transaction of its busifirst on that amendment, and then the question can come up as to whetherness, where transfers of stock shall be made, and in which shall be the phraseology shall be changed so as not to include foreign corporations. kept, for public inspection, books in which shall be recorded the THE CHAIRMAN. The point of order is not well taken; the gentle-amount of capital stock subscribed, and by whom; the names of the man from Monterey will proceed. owners of its stock, and the amounts owned by them respectively; the amount of stock paid in, and by whom; the transfers of said stock; the amount of its assets and liabilities, and the names and places of residence of its officers."

MR. WYATT. I was stating that I was opposed to granting foreign insurance companies, or any other foreign companies, privileges that are not to be granted to home corporations. No corporation ought to be granted privileges beyond what are enjoyed by the citizen, but they are. But at least, as between corporations, foreign corporations ought not to be granted privileges beyond domestic corporations. Now, I do not believe the State of California exists by reason of corporations. I am inclined to believe that a very large number of corporations exist by reason of the State of California, and that they do not give existence to the State. I do not give them the credit of creating wealth. I do not give them the prominence of giving liberty to the people. I am in favor of restricting corporations, foreign and domestic, to the same level, and if the restriction necessary to some corporations drives others out, let them go. The foreign corporations, as I said before, are not here for the purpose of giving us eleemosynary institutions; they are here for the purpose of employing their capital profitably to themselves. If the domestic corporations can do business with profit under these restrictions, the foreign corporations can do the same, or go where the climate is less torrid. It is sometimes an advantage to rely upon ourselves, upon our own resources. I believe the chastening hand of poverty has been advantageous to some people and some communities. The State of Mississippi came out from under carpet-bag rule without a scratch of public debt, for twenty-five or fifty millions of dollars might have been forced upon the market, and would have been if she had had any credit. But having repudiated her public indebtedness, her bonds could not be negotiated upon the market of the world, and the only detriment they could be was to tax all they could get for the time, and when carpet-bag rule was raised it left the State without any indebtedness, but without a dollar in the treasury. Having no credit saved the State millions of dollars. And I am of the opinion that the State of California might be benefited likewise by dealing at home, and not depending so much on foreign capital. I can dispose of foreign corporations, so far as I am concerned. If they cannot come here and do business upon the same terms as our domestic corporations, then they had better not stay.

REMARKS OF MR. ROLFE.

MR. ROLFE. Mr. Chairman: I confess judgment, that upon this subject under discussion there is a great amount of ignorance. There is another satisfaction I have, that in exposing my ignorance, not more than forty or fifty gentlemen can hear it. What I shall have to say will be more to obtain information than to enlighten anybody else. First, I would like to know whether the State of California has any power to enforce this section. Now, if after passing it, it will amount to nothing, what is the use of passing it? Have we any power to enforce it upon them. Suppose the article on corporations does not apply to them. Suppose they do not or will not keep books, transfer books, then what? MR. TERRY. Put them in jail.

Now, sir, I maintain that under this provision it will be within the power of any man, a constitutional right, moved by whatever motives or feelings he may be, to enter the place of business of any corporation, and demand as a constitutional right, to examine and have explained to him every book connected with the business of the institution. Now, sir, I am not here as the advocate of any corporation. I have never been connected with them, never have been in a situation in my life to take advantage of the benefits flowing from such institutions. I have never been connected with them in any manner, except occasionally in a professional capacity. I am for retaining every power, and every right, which, by the law and by the Constitution is reserved to the people over these institutions; and I go further, and say that they should be surrounded by every possible safeguard necessary for the protection of the public, and for the general welfare of the people; but I am not in favor of doing an injustice to those institutions by any legislation which I shall participate in here. My conduct here shall be influenced by a spirit of justice and fairness. As a legislator here, I shall not participate in the making of any laws that will violate the spirit of justice. And I say that if we shall adopt this provision, and make it a part of the Constitution, great injustice may result to these institutions. It may be perverted to wrong ends and for undue purposes. If we shall say that institutions of this character shall keep open books for public inspection, to which all persons shall have access at all times, without any restraint whatever, depriving the Legislature of any power to grant any relief, we shall enable men, moved by improper motives, to inflict a wrong upon these institutions, under color of constitutional right. opposed to the principle. I am opposed to it now, and I shall oppose it during the entire session of the Convention. I hope the amendment of the gentleman from Stanislaus will prevail.

REMARKS OF MR. TERRY.

I am

MR. TERRY. Mr. Chairman: I am in favor of retaining the word 'public" in this section. I think without it the section is absolutely of no benefit to anybody in the world, and no check whatever upon the corporations. I cannot see any very great wrong that is going to be done to any honest corporation that transacts business fairly and is solvent, in having persons at liberty to ascertain and know who are its stockholders, the amount of stock subscribed, the amount of its assets, and the amount of liabilities. They are required by law to make monthly statements under oath embodying this public information which we now seek to acquire. My friend, who is somewhat exercised about it, says, suppose they do not make these statements, but make false statements. But this section requires that these books shall be kept open for the inspection of the public. It is objected to because so many MR. ROLFE. What good will that do? It will keep the man from people will go there out of mere idle curiosity to examine these books. transacting business for awhile, and then he will go where he does Now, gentlemen, for twenty-six years the books of every Recorder's not have these restrictions. But suppose he does keep an office here, office in this State have been open to public inspection--to anybody who and suppose he keeps a transfer book, and suppose he does not keep it wanted to look at them, and who ever saw a great crowd of people correctly, how are you going to know? Suppose the company is insol-attracted by idle curiosity, going there and interfering with the business vent, how are you going to know? Suppose they put men on the books of the office, examining to see whether A had transferred to B, or B to who do not own a share of stock, how are you going to tell? These C? No, sir. Nobody will go there to examine the books except those. names may be put on there for the sole purpose of keeping up the credit who have some interest in knowing whether they are solvent or not. of the institution. Suppose the company directs its agent in San Fran- MR. HILBORN. Nobody objects to the stockholders examining the cisco to put the name of one of the Rothschilds on the list, everybody books. knows that they are good, they are worth their millions; how are you

MR. TERRY. The general public will not wish to examine these

Thompson,
Tinnin,
Townsend,

Tully,

Stedman,
Steele,

Walker, of Marin,

Walker, of Tuolumne,

Waters,

Wilson, of Tehama,
Wyatt,

Mr. President.

Filcher,

Finney,

Weller,

Wellin,

West,

Wickes,
White,

Overton,
Reed,

THE PRESIDENT. The Secretary will read the resolution for information. THE SECRETARY read:

Resolved, That five hundred copies of the Journal be printed and bound in book form, together with an appendix, both to be properly indexed. Also, that two hundred and forty copies of the daily Journal be printed and placed on the desks of the members.

MR. REYNOLDS. Mr. President: Before the vote is taken upon that resolution, I desire to say that the object of this resolution is to give effect to the report of the Committee on Reporting and Printing that was accepted on the thirtieth of October, and it seemed to me, on motion of the Chairman of the committee, the Journal was ordered printed as recommended by the committee. Now, I understand that there is some doubt about the effect of receiving that report, and the verbal motion that was made and adopted at that time. The object of this resolution is to give effect to that motion, so that there will be no doubt about it, or any question that the Convention ordered the Journal printed and bound. As a matter of fact, the State Printer has gone forward and printed the daily Journal, and laid it on our desks every day since, but when it comes to drawing a warrant for his pay there seems to be a doubt as to the full effect, the legal effect, of the verbal motion that was adopted. Hence this resolution. The amendment which I shall make to the resolution adds these words: "The object of this resolution is to give effect to the report of the Committee on Reporting and Printing, and the motion by which the same was received on October thirtieth, eighteen hundred and seventy-eight." In that way we shall not be ordering the work twice. The resolution is designed to explain that motion. With this explanation, I have no doubt that the Convention will readily adopt it.

THE PRESIDENT. The question is on taking the resolution from the

table.

The motion prevailed, on a division, by a vote of 50 ayes to 36 noes. MR. REYNOLDS. I now offer the following substitute for the resolution.

THE SECRETARY read:

Resolved, That five hundred copies of the Journal be printed and bound in book form, together with an appendix, both to be properly indexed. Also, that two hundred and forty copies of the daily Journal be printed and placed on the desks of the members.

The object of this resolution is to give effect to the report of the Committee on Reporting and Printing, and the motion by which the same was received on October thirtieth, eighteen hundred and seventy-eight.

MR. REYNOLDS. Mr. President: One word in relation to that resolution-in explanation. I understand that there are some gentlemen who misapprehend the proposition. The motion by which the report of the committee was adopted, and this resolution, are intended to order printed and bound five hundred copies of the Journal, together with two hundred and forty copies of the slips laid on the desks of members. Now, some gentlemen, I understand, are under the impression that if we order five hundred copies bound, we shall incur a large additional expense. That, Mr. President, is not so. The type from which these slips are printed is the same type from which the five hundred copies to be bound will be printed, and the only additional expense for printing and binding the five hundred copies is a little presswork and paper and the trifling cost of binding. Gentlemen are misled, because in the report of the committee the two hundred and forty copies of the daily slips are estimated at two hundred dollars. The reason of that is that the cost of setting the type and reading the proof and distributing is all counted in in the first estimate on the five hundred copies to be bound; so that if we do not order the five hundred copies bound, and only take the two hundred and forty copies of the slips, these slips will cost four or five times two hundred dollars. It costs nearly as much to print these slips as it does to print and bind the five hundred copies. This is the true state of the case; so that in ordering the five hundred copies, we are incurring no material additional expense.

MR. HILBORN. Mr. President: I am inclined to think that the gentleman believes that it does not cost anything to bind books and Hitch-index them. apprehend that this body, the other day, when they voted to adopt the report of the committee, did so under the apprehension that they were voting to have these slips at the cost-which appeared from the report-two hundred dollars. I believe that the estimates presented will be far below the cost. It seems to me that the proper way to do is to have as little printing as possible, and only that we are obliged to do. Having these slips printed saves time, and I do not think there can be any serious objection to that; but when you order it bound, and when you order an index made, and all these things, you are certainly adding a thousand or two dollars expense. Talk as you will, every move that you make incurs additional expenditure. Right at the outset this resolution will involve the employment of an additional clerk, and the cost will roll up larger than you expect. I think we had ought to be satisfied with furnishing the members of the Convention with these slips now. I think the next Legislature can order the Journal printed in proper form.

MR. BLACKMER. I think there is an error in the Journal in regard to the reference of a petition touching local option. It is reported in the Journal as referred to the Committee on Education.

THE PRESIDENT. The gentleman moved its reference to the Committee on Education, and it was so referred. Mr. Hilborn's motion prevailed.

MR. GRACE. Mr. President: I am not certain that I understand this matter correctly; but I understood that the Committee on Judiciary reported that there was one hundred thousand dollars appropriated from the State fund for the printing, and that the Journal, and all the printing of this Convention, was to come out of that appropriation. I did not understand that it was to come out of the appropriation of one hundred and fifty thousand dollars for the expenses of the Convention. If this printing is to come out of that fund I am opposed to it.

MR. REYNOLDS. Mr. President: I hear another objection to this resolution, and that is, on account of the estimated cost of the appendix. That appendix will cost almost nothing at all. It consists of the reports that have laid upon our tables from time to time. The type is already

standing on which to print these reports. If the requisite number has
not already been printed, it can and will be printed without setting any
more type at all. The appendix will only amount to the cost of the
paper for five hundred copies. The binding will not cost any more. It
is a frivolous talk that the appendix is going to cost any such sum.
have, from time to time, ordered the appendix printed as we are going
along. The reports of committees and State officers, etc., are the reports
that are intended to be put in as an appendix.

We

But

MR. WHITE. Mr. President: I made it my business to inquire something into this since the last meeting of the Convention. It was said to me, and so figured out, that these slips are going to cost us, if we do not have anything bound, one thousand seven hundred dollars. I never heard of that before. I only supposed they would cost two hundred and fifty dollars. That is the way they figure the expense that has already been gone to. The binding will cost about forty cents a volume. really the work is already done. Suppose we refuse to have this done, still we will have about one thousand seven hundred dollars expended in these slips which are laid on our desks. Now, if that is the case, and if it will only cost three hundred and fifty dollars more, which they tell me, I think it would be well to have the binding done. They figured it out to me very clearly that these slips are going to cost one thousand seven hundred dollars. The other day it was reported that the slips would only cost two hundred dollars. I would like to vote against the binding if that is so.

MR. REYNOLDS. Mr. President: I will answer the gentleman. That estimate of the cost is based upon the fact that the Journal has already been set up; the type has already been set to print the Journal for binding. In that way the slips cost only two hundred and fifty dollars. But, if you have the type set for the slips alone, and do not order the five hundred copies for binding, then your slips are going to cost you in proportion more, because you have got to pay for the setting of the type just for the printing of the slips.

MR. TERRY. Mr. Chairman; I have a report to make from the
Committee on Legislative Department.
THE SECRETARY read:

MR. PRESIDENT: The Committee on Legislative Department, to whom were
referred the following propositions; number four hundred and fifty-nine, by Mr.
Barnes; number four hundred and sixty-two, by Mr. Dowling; number four hun-
dred and seventy-five, by Mr. O'Sullivan; number four hundred and seventy seven,
by Mr. E. O. Smith; number four hundred and eighty, by Mr. Mills; number four
hundred and eighty-three, by Mr. Tully; number four hundred and ninety-three, by
hundred and ninety-nine, by Mr. Barton; number,
Mr. Tinnin; number four hundred and ninety-six, by Mr. Barbour; number four
by Mr. Farrell; and the
memorial relative to equal and proportional representation, presented by Mr. Estee;
have duly considered said propositions and memorial, and beg leave to report the
same back to the Convention, and recommend that no action be taken thereon.
The committee further report that they have examined proposition number four

hundred and sixty-four, by Mr. Casserly, and recommend that it be adopted as a
section in article four of the Constitution.

MR. JONES. Mr. President: I beg leave to ask the gentleman from
San Francisco, whether he knows that at this day the forms of the
Journal and slips which have been laid before us are still preserved.
The committee herewith report back to the Convention several petitions on the
The Committee on Contingent Expenses were informed that the fore-subject of local option, and recommend that they be referred to the Committee on
man could not preserve them more than twenty-four or forty-eight City, County, and Township Organization.
hours longer; that he should be obliged to distribute them. The gen-
tleman from San Francisco may have information up to the present
time; but from what I have stated, the committee supposed that after
one or two days the forms would be distributed.

MR. REYNOLDS. Mr. President: On yesterday, the State Printer informed me that the forms were still standing, and that he had commenced printing the Journal from the first day of the session; it is standing in type waiting for this order to strike them off.

MR. O'SULLIVAN. There seems to be some misapprehension about the cost. Now the main cost will be for setting the type-for paying for the labor of setting the type. That we have undertaken already. If we want but the two hundred and forty slips it will cost the same for type-setting. The great cost will come in paying for the labor of setting the type. The extra cost of having these copies printed to bind will not be much. We have undertaken the rest already. MR. BROWN. Mr. President: I think that it is evident to the members of this Convention that in every case yet where printing has had to be done, it has exceeded that which was first represented before this body; not that men did it with any intention to deceive, but such has evidently been the experience of this Convention, that the first estimates have been far surpassed in the results. I am under the impression that we should in this case, as in almost all others, learn by experience and judge of the future by the past. In this case I am under the impression that it is proper for this body to consider this principle and act wisely upon the subject. I shall consequently vote against it.

MR. HILBORN. Mr. President: I move that the resolution and the amendment be indefinitely postponed.

D. S. TERRY, Chairman.

MR. TERRY. The proposition offered by Mr. Casserly is as follows:
While Legislatures should be convened in special session, no legis-
lation should be had upon any subject not designated in the Governor's
proclamation calling such session."

I move that it take the same course and be printed.
Carried.

MR. EDGERTON. Mr. President: I send up a report from the Com-
mittee on Revenue and Taxation.
THE SECRETARY read:

MR. PRESIDENT: Your Committee on Revenue and Taxation, to whom were referred
resolutions numbers twelve, twenty-two, twenty-five, twenty-nine, thirty-five, forty,
forty-eight, fifty-four, seventy, seventy-five, seventy-seven, ninety-two, ninety-four,
one hundred and ten, one hundred and twenty-six, one hundred and thirty-eight, one
hundred and fifty, one hundred and fifty-five, one hundred and fifty-eight, one hun-
dred and sixty-eight, one hundred and eighty-one, one hundred and eighty-seven,
one hundred and ninety-seven, two hundred and seven, two hundred and eighteen,
two hundred and nineteen, two hundred and twenty-six, two hundred and twenty-

seven, two hundred and forty-one, two hundred and forty-eight, two hundred and
sixty, two hundred and seventy-one, two hundred and seventy-six, two hundred and
eighty-seven, two hundred and eighty-nine, two hundred and ninety-three, two hun-
dred and ninety-six, three hundred and twelve, three hundred and nineteen, three
hundred and twenty-five, three hundred and thirty, three hundred and thirty-eight,
three hundred and forty-six, three hundred and sixty, three hundred and sixty-one,
three hundred and seventy-one, three hundred and seventy-nine, three hundred and
hundred, and thirty-eight, together with two memorials, have had the same under
ninety two, three hundred and ninety-five, three hundred and ninety-eight, four
consideration, and herewith report the same back, and recommend that no further
action be taken thereon, for the reason that such propositions and suggestions therein
contained, as your committee deem it expedient to adopt, have been incorporated in
the plan agreed upon, and herewith reported and recommended to the Convention,

The motion prevailed, on a division, by a vote of 56 ayes to 42 noes.
MR. WEST. Mr. President: I move that the petition presented by by a majority of your committee, for adoption.
Mr. Smith, of Santa Clara, yesterday, and referred to the Committee on
Education, be ordered referred to the Committee on City, County, and
Township Organization.

Messrs. Casserly, Cross, Prouty, Turner, and Edgerton, dissent from section two (2)
of the plan.

Mr. President: I have a resolution to offer. THE SECRETARY read:

Resolved, That the Honorable Z. Montgomery have the use of this chamber on Wednesday evening, November twentieth, for the purpose of delivering a lecture on the school question.

MR. GRACE. I would like to have that read again.

THE SECRETARY read the resolution again.

The question was put, and the resolution was adopted by a vote of 49 ayes to 42 noes.

Messrs. Biggs and Tully, from section four (4).

Messrs. Dudley, Overton, Prouty, Tully, and Turner, from section five (5).
Mr. Overton, from section six (6).

Messrs. Cross and Turner, from section seven (7).

Messrs. Dudley, Overton, Tully, Turner, and Edgerton, from section nine (9).
Messrs. Dudley, Overton, Prouty, Tully, and Turner, from section eleven (11).
Messrs. Cross, Overton, and Edgerton, from section fourteen (14).

Messrs. Cross and Turner, from section sixteen (16); and Messrs. Cross, Overton,
Shafter, Wilson, and Edgerton, from section seventeen (17).

Your committee recommend that such plan, upon the subject referred to them, as
the Convention shall adopt, be inserted in the new Constitution in the form of a sepa
rate article, and designated, "Article. Revenue and Taxation."
HENRY EDGERTON, Chairman.

REVENUE AND TAXATION.
ARTICLE.

shall be levied and collected under general laws.

MR. HILBORN. Mr. President: Rule Sixty-eight provides that the SECTION 1. All taxes shall be uniform upon the same class of sub-
hall of the Convention shall not be used for any public or private busi-jects within the territorial limits of the authority levying the tax, and
ness, other than that of the Convention, except by unanimous consent.
THE PRESIDENT. That is the rule.
MR. STEDMAN. Then I object.

THE PRESIDENT. Under that rule it seems to me that the Convention cannot allow the use of the hall, objection being made. MR. ROLFE. I would like to inquire whether the Convention can monopolize the use of this hall exclusively to be sure we have the use of it for our deliberations, but it has been used for other purposes without any leave. It has been used here for caucuses, woman suffrage meetings, and one thing and another. [Laughter.]

MR. ESTEE. I move that the Convention resolve itself into Committee of the Whole

MR. DUDLEY, of Solano. Mr. President: I desire, now, to make

SEC. 2. All property, including franchises, capital stock of corporations or joint stock associations, and solvent debts, deducting therefrom debts due to bona fide residents of the State, and excluding growing crops, private property exempt from taxation under the laws of the United States, public property belonging to the United States, or to this State, or any municipality thereof, and all property and the proceeds thereof which is used exclusively.

SEC. 5. A mortgage, deed of trust, contract, or other obligation by which a debt is secured, shall, for the purposes of assessment and taxation, be deemed and treated as an interest in the property affected thereby. Except as to railroad and other quasi public corporations, in case of debts so secured, the value of the property affected by such