Des Moines courier. ([Ottumwa] Iowa) 1848-1854, 1851-01-10
From the Burlington Telegraph.
The New COde--Its Progress.

llt IlOBSt Vi Representatives, VIZ VIII
state the action of that branch of The
legislature on that portion of the code
VIII ich relates to private corporations
The 0 tn section is as follows:
"Such corporations may except the
private property of its members from fla
oility to corporate debts, by a provision
10 that effect in its articles of incorpora-
lion, but subject to the provisions of this
chapter in relation thereto ,5ss
This, in our humble opinion, is the
vital principle of the bill; without it the
law would remain, as it now is, dead
letter on the statue book, as no man in
his senses, whether rich or poor, would
invest cent in the face of such restric-
tons and liabilities; and the result would
be that we should remain as we now
are, incapable of forming company
for any purpose, especially insurance
companies which we need SO much.
while we are left prey to foreign agen-
cies, and thousands of dollars annually
drawn from among us. Do our wise
legislators understand the basis of these
foreign companies! We presume not,
and yet see how ready they are, in the
plentiude of their radicalism, TO surren-
der Us up to their unlimited piracy
WhenAthe above section was under con-
sideratipn, on Friday of last week, Mr.,
Flint, Of Wapello, moved the following
as substitute: We think it would be
well for Wapello to ',pick her Flint and
try IL again.")
'Such corporation shall not exempt
the privateproperty of its members from
liability for corporate debts, but each
stock holdeNin such corporation, shall be
Individually Viable for all the debts of
the incorporat on."
Mr.. Harpet of Des Moines county,
moved the folls wing amendment, to the
Substitute: a
provided, Ihat such liability shall
be in proportionto the amount of stock
subscribed"
"Mr. IIarper'ss amendment" says the
Re publican, "was voted down and the
amendment of Mr.. Flint adopted. MIR.
Folsom opposed theamendnent. making
one OF the abiest arguments we have
heard in the House, dnying that the in-
liability prin,iple was demo-
cratic measure, and shaving its Injustice
and improperly; while member from
Jefferson, Mr.. Gibson, assured the
House that the adoption of the subsli-
tu,e would be death bow to all inter-
nal Improvements in the State. But i.
was no 60; the hard headsprevailed; and,
from the large vote the amendment, of
Mr.. Flint received in ctmmit:ee, we
doubt not 1t will be ado,,ed by the
House," ..E ..r.. ...'.......
The application of the "indiyidual
liability principle" to any of,he compa-
MES which could possibly beDrned un-,
der our laws, even to hmitd extent,
would be ridiculous enough--,ut when
i. is proposed TO go the whoe figure,
the idea strikes US as p:eposerous in
the extreme. There can be no tempta-
ton to fraud under our system;te very
nature Of the associations contemplated
forbid it, the stock being madeup, in
every instance, of real capital, collected
together as the joint contributions our
citizens. And here it may be asked,
''then why oppose the individual liability
Simply from the fact hat
though hundred citizens, worth SlM0
each, might be entirely willing to con-
init $50 worth of stock 10 the judiciom
control and management of their own
chosen directors, in order to the construct
ton of some necessary improvement,
yet not one of them would hazard his
whole fortune by committing it To the
of any man or set of men,
no odds how great the necessity for any
Ii is not probable Tint
such a restriction would retard material
Iy the formation of companies for the
of plank roads, bridges, DC,
as these are built only as the stock'i is
paid in--still the very existence of the
provso will be felt as statutory prohib-
ltion against public enterprises dis
to all works of internal im-
turning of the back
upon foreign capital. So far as insur-
ance companies are concerned, especially
upon the mutual plan, which is the cheap
est, j. is perfect extinguisher, as no
man, except fool, would pay in $40
for insuring his house worth $4,000,
with the possibility before him of being
to sell his house to pay the
losses OF the company! A positive en-
actment against the formation of insur-
ance companies at all, would come with
better grace from public servants, than
that sort of mockery which is but u
broad insult to the common understan-
ding. 81
We confess ourselves egregiously dis
appointed in the tone and composition OF
the House of Representatives. We had
INDUCED high hopes that their labors
would be characterized by liberal and
policy--such an one as. our
increasing trade and population impera-
lively demand. With this view, we
took occasion, in the most hubble man
ner, to bring to their attention., some
two or three weeks ago, few subjects
which we deemed worthy Of legislation,
viz: the repeal of the Usrry laws; and
h. ,,oesara cf Eharol Ioxuc Co.. ,bo e..