The daily union. [volume] (Washington [D.C.]) 1845-1857, 1850-12-18
CONGRESSIONAL.
DEVERREu DEBATE.
MONDAY. DECEMBER 10. 1850


shs A. The lss session. 10 extend the charter of The
Potomac Fire Insurance Company in Georgetown, in The
District OF Columbia. move mat u DC iaken up ior
The motion was agreed TO- The bill had passed the
Senate 81 the last session. and had come from The House
OF Representatives with amendment.
The amendment OF the House oi Representatives
in these words. hsaEseaa eN hg&4#9
$50 And 6s ngAsr saeeied Tha, The s,ockhalder
Of ssd company shall 3 individually liable 0r 'As dsD'' q
Mr. MASON This Is, Mr. President. an insurance
company in .Georgetown, asking for renewal BY Con-
gress Of their charter which Will expire on the 4th day
81 March next Ii because al the urgency Of the
that ask the Senate u consider II now The condition
Of the bill is this al te last session Of Congress the
Senate passed bill to extend the charter Of that com
pany for twenty years. Inc company only proposes 10
nsure buildings gainst fire. and il has been successfully
in operation Tor the last twenty years All OF the in
saed have poae] ] e. = q easns,on @ ass o. rs q o
sress as have just stated to extend the charter for
twenty years II went TO the House OF Representatives,
and they amended il by provision requiring that the
sockhoders Of the company should be liable and ind
yduay responsible for all Of the debts OF the company
That amendment before the Senate, and the Senate
concurred in The amendment which at late day or
The session i then asked, behalf OF the stockholders
that the Senate would reconsider that vote concurrng
the amendment OF the House The motion was made by
ire aenator from Missouri MIR. ATcHIsoN,l who sits at
INV ra ht to reconsider that concurilng the amend
ment and them al my instance, the bill and amendment
were laid upon the table The amendment has been re-
considered the question now presented Is, VIII the
Senate concur ia that amendment! have been in
formed BY the parties OF that company that II is their
belief that If the provision is insisted upon il will ne
ceesariIy involve termination OF the existence OF the
company. There other lire insurance companies in
the District whose charters have as much as thirty
years TO and they are not subject TO this restrc
lion. have thought. Perhaps II would meet the APP
probation OF the Senate, ani meet the concurrence OF
the other House, 10 moy The amendment far as TO
limit the extent Of this Individual liability to an amount
equal to the capital stock o each stockhoder thus
each siockholder has embarked in that company an
amout equal to his stock. and il the debts and ab,
lies of the company should require IT. that stock OF
course, will be tributary 10 the payment OF the ahi
ties OF the company propose TO modify the amend.
ment by requiring in addition that each stockhoder
shall be Individually liable 9 an additional amSan.
for thousand dollars that amount IS invested IN the
stock and will be liable for the debts OF the company
and If for any reason ne debts o. me company should
the amount OF one thousand dollars will be liable in his
individual capacity to thousand dollars more. pro-
pose therefore, 10 amend The amendment oy adding these
by them respectively"
Mr SEWARD. Mr. President. desire to ask the
honorable senator from Virginia Mr. MAsoNl al what
time the holding Of this stock will subject the stock
holder to this additional liability 10 Il 10 be the stock.
holder thai is liable who holos the stock at the time the
debt is contracted or is il 10 be the person found in pos
session Of the stock when the action brought II
TO that amendment is TO be adopted at will not be
necessary in order 10 my vote for the passage OF
this b) thai The policy Of The law should require the
burden should fall upon those who are the holders Of
stock the tine the debt contracted or otherwise
il will be impossible for the stockholders 10 exempt them
raced during their own PERIOD and throw the burden
upon men who may may not be men OF straw, coming
to be their Suggestive idea for the consd
Mr. MASON. Mr. President, the amendment is thus
worded from necessity, in subordnaton TO the principle
adopted by the House Representatives IN their amend
ment The amendment OF the House OF Representatives
provides that the stockholders in the company shall be
individually liable for the debts othe company Whether
the House OF Representatives. amendment meant the
stock who may be such when the debts
raclsd, or the stockholders who such when the
liability enforced-as to the question Of construction.
I'm not prepared to decide u is an act of the other
Houss The amendment offer simply provides that the
extent Of that liability, be il what may, shall be limited
to the amount OF capital stock held by the sockhoder.
instead Of the whole amount am rather disposed -
think the construction placed upon the amendment by US
viii be TO impose liability upon those who stock
holders al The time when the suit is brought Now,
s have never had occasion 10 consider the expedency
OF devolving personal liability upon the stockholders
in Joint stock corporations. that II Is prin-
epe adopted by many OF the States with regard 10 bank
ing institutions Il has, however, never been adopted
BY the State OF Virginia. | apprehend there Is wide
difference between the public duty devoving indl-
vdual liability upon the stockholders 10 banking lnstiiu-
tons, and thai OF devoving individual liability upon
the stockholders in insurance company or IN com.
pany that chartered for any other purpose than that OF
dealing in money. submit, therefore, whatever may
be the proper constructions that the liability should be
limited 10 definite amount, rather than that should
devolve upon the stockholders TO the extent OF their
fortunes. -
Mr.. EWING. MIR. President, am well satisfied thai
this provision, involving the stockhoder 10 loss beyond
the amount OF his stock in company of this kDd-an
insurance compaby-is wrong ~ - wrong IN principle
and equally in practice The amendment made by
the House open The construction suggested by The
senator from New York, [slr SEwARpJ II there be .
heavy loss consequent upon fire, will be possible for
individual stock transfer their stock TO oil
straw, and thus escape the liability that IL would be
impossible 10 issien the liability upon them at all Men
who enter into engagement OF this kind OF high stock
compsnies invest much they think proper 10 adven-
iure upon. II subscribes thousand dolar is
al much as he wants TO risk il may be much as he
able TO risk. tie risks that, and then there may be
he that sweeps the property of The townan exaord.
nary misfortune which prosaes the company They lose
the whole OF Their stock; they lose their whole
investment; and that is loss enough for them And why
should they be subjected 10 iurher liability They
cannot be held 10 aiuriber liability they will escape in
some form other Under this amendment OF the House
tey will certainly escape IT, will suggest whether il
Is not better 10 reject the amendment OF The House
tlrely than TO make amendment 10 that amendmen nt,
when the whole OF the amendment with this amendment
must necessarily be fallscious.
Mr. BORLAND Before this question shall be die.
posed Of desire 10 slate the reason which will control
my vote upon IT, As part OF my political creed, upon
principle, opposed 10 moneyed corporations, however
closely they may be restricted, especially when IL Is pro-
posed 10 establish them BY federal legislation More par
ueulary opp0 ed, Tor reasons even beyond, though
corroborave Of that pnnepe 10 egslang additional ad
Vaages to persons who may choose 10 invest Their funds
~ corporations and above the very great advantages
they derive from The association oil capital, and the use
OF u in a concentrated iorm hold IL 20 be politically
wrong TO discriminate. By legislation, between any OF
The interests Of society, TO give individual, or
one set OF individuals advantages o,hers and hold
nobe equally wrong in morals do hng by legisla-
fNlap al