The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1842-07-07
Elk ract from Gov. Hubbar'ds Address 10
the Leg stature. ofN. H. the I'd inst.
INDIVIDUAL LIABILITY.

INDIVIDUAL Liza III l.
A disposition 10 multiply private copOrations
is one Of The great evils Of the Legislation of
most Of the States. The history Of the past
should admouish US of OUT duty For the mere
purpose Of private specplstIIn, and for avoid
ing all personal responsibility, many Of these
acts of special Legislation have been sought for
and too readily obtained. Could those patvl'
otc statesman who have gone before Us, have
forseen the disastrous and demoralIzng effects
of creating these irresponsible bodies, they
would have uever&onl their aid in the accom-
pl,shment Of go D2lotlous work, and as the
friends Of socIsl order, of sound morals, and
Of equa justice, we should, be guided BY the
lights OF experience, avoid as far as practical
Gle, this system which has proved 80 debasi1g
to the character Of our, community, so RUM
Gus TO The hopes and so destructive TO the in
terests Of our con6d ng population. | would
not unfortunately oppose every private
charter; corporations of this description have
been aud may be established TO promote the
well>belng Of society-bul they have been TOO
frequently granted wnh view to the exclusive
interest Of the corpTalors, not regarding the
rights or The interests Of the people. The
business operations of our community may
be prosecuted with much more security to
the people, and with equal safety and con-
venience to those concerned, without, as with
the shield of such monopoly. The exclu
sive privileges usually conferred by acts of
incorporation, make them obnoxious 10 The
honest hearted yeOmanry Of the country, and
they should therefore be withheld, except in
cases Of public necessity. II the Cnhallow"
ed influence of this system shall continue un-
restrained and unabsted, the rights Of indi-
vidual property, and The honest enjoyment Of
individual liberty will exist only 10 name.
The object Of the Legislature should be 10
give protection to the Interests Of the people,
and maintain with unyielding per.inaci'y, their
just privileges.
This is the great practical reform now de-
manded, and this reform is what we should be
solicilous 10 see accomplished. 1t would not
be a difficult work. il we are ready to apply
10 private corporations those principles which
necessarily govern the transactions OF iDdI-
vlduals. The stockholders Of all private cor
porations should be made liable for the debts
and liabilities OF their respective corporations.
There is no good reason against this prlncl-
pie. In the TRANSACTIONS which occur between
man and man there exists direct RESPONSE
bllity and when capital is concentrated,
which looks 10 enlarged and extensive opera
tions, beyond the means Of sing le iDdvduals,
this liability is continued.
1t is tho life spring Of The concern-it in-
spires confidence and commands support, and
il is difficult 10 conceive of any sufficient rea-
son why this princlple::appIicaSIe to partner.
ships created by voluntary association; should
not extent to partnerships created BY law
why individuals acting unl,edIy for their own
interests, should be made liable for their
dougs as natural persons, from which they
should be exempted under charter Of incor
poration,
This want Of responsibility has been faith
ful source OF embarrassment and distress
which has pervaded and is now pervadng our
land. The banking corporations in this State.
are uuquestionably private 10 their character,
and in their purposes. Their capital is pri'
vate, and their gains are all private. Gre.
aled as they have been for private benefit
their stockholders, like private individuals
should be liable for the debts they conirac'
They can only know the exact state o
their concerns. When successful they alont
show the gains, and when overtaken by re,
verses, there can be no. justice in visiting
their misforiunes upon the conidiDg creditors
This doctrine Of the personal liability o
stockholders in private corporations, lie found
ed upon the principles of immulabe righ,s
ltis no new doctrine.-It is the doctrine o
the commonaw Of England. 1t is the genera
principle upon which private corporations ar,
now established in that country. The Join
stock banks of Great Britain are based OF
this great principle These cOmpany's ar
banks of issue. they emit much of the pape
circulation Of the country, and the redeeminl
feature in all The legal partnerships, ls, tha
the partners are all liable, individually, to h
full amount Of their property, for the debts O
their respective companies; and as ar add
tlonal security to the public the names of al
the stockholders are registered in the publ
archives, that the creditors of such institution
may know to whom they shall look for tn
payment Of their liabilities The benefcis
consequences Of such provision, would be I
induce that vigilance and supervision indisper
SADLY necessary to The success of the instilplio
as we'll as the safety Of The public"
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Justice ~ Plenty-A lale Montreal Heral
contains no less than seven and half column