Morris Canal and Banking Company

Content Note

By virtue of a supplement to its charter, passed 9 February 1849, the reorganized Morris Canal & Banking Company was authorized to issue 11,750 shares of new stock.  The board resolved on 5 July to issue 3,000 shares of preferred stock at $100 per share (payable in $10 installments, and bearing dividends of 10% per annum).  The funds received from the stock sales were earmarked for the payment of debts and charges, and then to dividends.  Unfortunately, by the time of the next meeting of the board, on August 1st, no shares had been sold.  At the same meeting, the board resolved to consolidate the common stock to one-fourth of the original number of shares.

When the preferred stock remained unmarketable (only 150 shares were subscribed in the next five months), the board concluded that it would be more readily sold if the board were to rescind the resolution to consolidate.  The board therefore resolved on 1 February 1850 that whenever $300,000 of preferred stock had been sold and the first installment had been paid, the resolution would be rescinded.  If this amount had not been sold by the next annual election of directors, the common stock would then be consolidated.  Sales of preferred stock were reopened on 18 February, and by 1 April subscription had passed $300,000 and the consolidation resolution was rescinded.

In May 1853, the question of consolidation arose again.  The President was asked to report on whether the company had the right to consolidate the common stock under the 1849 supplement to the charter.  On 29 January 1857, the Board resolved to consolidate the 41,000 shares of common stock to 10,250 shares (each having the nominal value of $100, as before).  After 16 February, one "consolidated stock" certificate would be issued upon transfer for every four shares of common stock.  Holders of original common stock would be allowed one vote for every four shares.

Preferred and consolidated stock certificates are arranged in separate series.  They both indicate the certificate number, the name of the stockholder, to whom the shares were transferred, the number of shares, the date of issue, and the date of transfer.  Several volumes are missing for both preferred and consolidated stock.

225 West State Street
P.O. Box 307
Trenton, NJ 08625-0307
609.292.6260 (general information)
609.633.8334 (administrative office)
609.292.9105 (fax)