The Davenport gazette. [volume] (Davenport, Scott Co., Iowa) 1841-185?, 1851-01-16
Ever yours,
BuTTONWO ID.
Iowa CRY, Jan'y 18th, 1851.


Mr.. aseEas:--The great subject which has
been agita,ing the minds Of the people here, cit
liens as we'll a honorable members, is the ones
lion Of the iidis idual liability Of tbs holders Of
stock Of incorporated companies. The subject
was up before the House Of Representatives du-
ring the forenoon session Of Monds, and at night
until ten O'Clock, and again the next day during
most Of the forenoon and afternoon sessions.
The fight was regular democratic one, the few
Wings Of the House taking no part in the ioray.
and seeming 10 enjoy the home thrusts which
were dealt out to each other by both factions.
The s'hard heads" with Father Flinto for their
leader, fought bravely and long, contendng the
ground inch hy inch, and calling upon all their
fellow lccos TO stand up for the true and only
democratic do,trine-Lte liability IN his bsdirida-
al capacity Of eaeh Stakeholder, Of any incorporated
company, 10 he FIJI ertent Of all Tie drbis Of sueh
company. The .ssof,s- commended that they were
just as good democrats as the .hards,' but they
could not vote for proposition that must prove
. death blow 10 all efforts for promoting internal
improvements in Iowa-they deemed such i'm
proyemen's OF the greatest Importance to the peo-
pie Of this State, and they felt bound 10 legisase
In such way us at least, not to deter men from
investing their capital in such works.
When the House u length succeeded 10 CON-
ing to vote the hards were defeated by two
the vote being upon substitute for The 9th sec,
ton OF Chap. |, Title 2, part o, the code, Offer
ed BY Mr.. Rabbit, which Is as follows sSuch
corporation shall not exempt the private prope,-
y ofls members from liability TO corporate debts;
but each stockholter in said corporation shall be
Individually liable for all the debts OF the ineor-
Poration." Ayes, is, nays 90.
Mr.. Folsom then offered a substitute for sec
2, which was adopted, yeas 81, nays II, 10 the eff
ect that after the property Of the corporation is
exhausted the private properly Of stockholders
shall be held liable TO tho amount Of bis capital
stock not paid in. This refers TO works oil inter.
nal Improvement only stock holders of other cor
POI atons are held liable TO the full extent OF the
debts contracted. Thus the matter stood when
the House adjourned.
Bat the hafds were not satisfied. What kinti
OF iegerdemain was used is more than can say;
but the morning session Of Tuesday had scarcely
well commenced when q reconsideration was
moved, and carried-yeas %, nays 6. Mr.. Fol-
SON, Of this stage Of the proceedings withdrew
has substitute. variety Of propositions were
now brought forward and voted down An. ad,li-
sonal section was then moved p, ohbting any
corporation from contracting debts exceeding in
amount the capital stock subscribed; this was
finally adapted-yeas 25, nays II. The question
was then taken upon concurrins in sections re-
ported from the committee of the whole. being
the same as in the report Of the committee ofre
vision-and decided negatively by tie vote
10 TO 10.
And so the matter stands. The House passed
on 10 the consideration of another part Of the
code. The ''hards" had triumphed. Through
out all these proceedings your Representative Mr.
SUMMERS. voted and acted with the liability men.
The principal topic which has engaged the al
'ention o. the Senate during the past week has
been the subject Of interest and usury. The cod
iliers in their report place money upon the same
footing as other property allow any rate Of in
teress as lawful that may be specified in the con-
tract. Where no rate Of interest is specified the
Ia" provides uniform per centage. Much OPP
position IS manifested 10 this change in the law,
and 4 i dolhfGl whether il can pass nu,inc