ARTICLE XII. PRIVATE CORPORATIONS. SEC. I. No private corporation shall be created except by general laws. SEC. 2. General laws shall be enacted providing for the creation of private corporations, and shall therein provide fully for the adequate protection of the public and of the individual stockholders. SEC. 3. The right to authorize and regulate freights, tolls, wharfage or fares, levied and collected. or proposed to be levied and collected by individuals, companies or corporations, for the use of highways, landings, wharves, bridges and ferries, devoted to public use, has never been and shall never be relinquished or abandoned by the state, but shall always be under legislative control and depend upon legislative authority. There is nothing in the constitution prohibiting a corporation from being organized for the expressed purpose of buying, selling and dealing in live stock bonds, securities and other properties of all kinds. Bank v. Investment Co., 74 T., 422, 12 S. W. R., 101. SEC. 4. The first legislature assembled after the adoption of this constitution shall provide a mode of procedure by the attorney-general and district or county attorneys, in the name and behalf of the state, to prevent and punish the demanding and receiving or collection of any and all charges, as freight, wharfage, fares or tolls, for the use of property devoted to the public, unless the same shall have been specially authorized by law. This section does not authorize the legislature to confer on county attorneys, power to institute proceedings against a railroad company for exercising power not confered by law. State v. I. & G. N., 89 T., 562, 35 S. W. R., 1067. This section applies where charges are demanded for the use of property, devoted to the public in the absence of a law authorizing such change. Id. This section gives county attorneys right to institute a quo warranto proceedings in the name of the state to oust one from the exercise and enjoyment of a franchise not authorized by law. Morris v. St., 62 T., 729. (This case distinguished from Paris Ry. Co. v. St., 55 T., 76; annotated under Art. 5 Sec. 21). SEC. 5. All laws granting the right to demand and collect freight, fares, tolls or wharfage, shall at all times be subject to amendment, modification, or repeal by the legislature. SEC. 6. No corporation shall issue stock or bonds except for money paid, labor done, or property actually received, and all fictitious increase of stock or indebtedness shall be void. Stock was issued for payment of land worth onehalf of the value of the stock and for valuable contract for construction for water works and light' plants and net earnings, in the plant prior to such issuance of such stock, all of which was estimated at par value of stock, held that such action was forbidden by this section and that the stockholders were not liable for payment of claims against the corporation. Adams, 92 T., 171, 46 S. W. R., 790. Cole v. This section does not prohibit the sale of lands by a corporation for cash at 95 per cent of their par value. Ry. Co. v. Worthington, 88 T., 573, 30 S. W. R., 1055. (27 S. W. R., 746, overruled). Stock issued and disposed of for a valuable consideration, though for less than its face value, is not fictitious, within the meaning of this section. Mathis v. Pridham, 20 S. W. R., 1015. It is not to be presumed that parties to a contract intended to violate this contract. Ry. Co. v. Adams, 26 S. W. R., 1041, 87 T., 125. This section does not apply as against creditors of a company in favor of subscribers, who have knowingly accepted paid up stock to the amount of their subscriptions. Nenney v. Waddill, 25 S. W. R., 308. This section does not render the accommodation indorsement on a draft by a corporation void in the hands or a bona fide holder for value, before maturity. Bank v. McNeal, 34 S. W. R., 344. |