The Nevada journal., 1853-03-25
Personal Liability. Why the
Plank roads are not built.


who much desire the construction Of the
plank road from Nlarysville or Sacra.
mento to this city, to strenupusly assert
that the clause in the constitution ma.
king stockholders personally liable, is
only an ordinary provision, one that can
never operate but in the direction Of
public interests, and one thatexperience
points to as necessary safeguard against
wild spcoulations. We dissent from
each proposition of this statement as far
as the principle of tho law is concerned
While VIC 90 not believe the liability
clause can ever operate to the preiu.
dice of individual property Of stockhol-
ders in o plank or rail road, as the
property in the hands Of such a COM
pany must always equal its debts, yet a
morbid fear Of such provisions prevents
monisd men generally from subscribing,
and thus enterprises Of great pith and
moment" arc delayed or prevented.
The great mischief of the clause in
the constitution is not that it makes in :
dividual property liable, but that mn
king individual property liable, it pre-
vents capitalists from embarking in
such enterprises The abstract question
whether o man who invests 10000 in
n railroad, shall suffer to tho extent of
$4,000 more, if the FIRST Investment
fails, is not the most important view Of
the subject. The satisfaction of the
creditors Of road designed for public
convenience, is not the question, for no
one expressed fear to contract with
such road company. But whether en-.
actments shall exist that directly tend
to keep back the resources Of the state,
to fetter trade and travel and abridge
the Convenience Of the public, by pre-.
venting investment in public works. by
tto,e otherwise able and willing, is the
true issue in this question. That this
liability clause has had this result in this
State is evinced by the progress of the
Marysville, as we'll as tho Sacramento
subscription. In the former, certainly,
there was no lack of determine ton or
interest. Yet the Marysville Herald said
distinctly the project was tin abeyance"
in that city, owing to the liability clause.
While the people of MnrvsYille had
n ide up their minds that = coad should
b, built, they yet had nsgiving in
reference h this ability, aud that kept
g. ~ ss,SJ az ~
al,em from giving as freeiy as they 9TH
sr rise would. The prosperity Of the
oitJ depended on The oad,and every ar.
gument Of interest to.the community as
such pressed upon them, and they over
came under the pressure . Of circumstance
that yepugns6ce, that in San Francisco
no argument Of probable profit could
shake. In San Francisco this liability
clause had full weight. Whichever
road was built, the trade must start
from that city. The question stood upon
Ito naked merits as source Of profitable
Investment and was rejected, by the
soncurring testimony Of the press, be-
cause ne clause in The constitution made
an individual liability. The Same rule
applied to Sacramento, where people
were not so fully awake to its impor-
sance to their city, as they of Marys-
Vile, and they looked at it more for its
individual profits than its commercial
advantages. They Judged it by the iis-
bility clause, and it failed. Witness the
case Of the Telegraph Companies in this
State. The Alta California Co., most
ndnsirable project, that has its wire and
posts on part Of the ground, "drags hea.
yily ON q few men, because other sub
scribers will no. come up for fear of liza
bility under the State constitution" Sc
prominent gentleman in the company
informed us o couple weeks ago inns
a. work arags its weary way, sot because
IL is not wanted, or will not pay.
AS this clause, therefore, prevents the
eonsummation Of great state underta-
kings, and keeps back the swelling tide
ofbusiness, and holds toinferior channels
the commerce of tho community, it ii
unwise and oppressive, and should be re-
scinded. Give natural and healthy
outlet to enterprise, and our State vii
soon rival those Of fifty years standing
on the Atlantic, which are netted witt
railways, and filed with manufactures
And it will be found that those State
L Issh YncnV