Daily Los Angeles herald., 1879-03-15
Oae Aspect OF tho New Organic
Law.

Oss Aspect or tho New Organic
Law.
No sane man, in considering the
effect of the new Constitution, will
fail to ask himself whether, as
whole, its operation will be bene-
fclal or the reverse. No excellence
Of detail, however striking, can
compensate for wholesale disas-
trous results. A pack of so-called
6olons could effect in a day in
jurles which would make the State
stagger for years. We risk nothing
BY the statement that there is more
capital lying idle in California to-
day, per capita, and in an attitude
Of observation, than in any other
section of the globe. 1t is either
absolutely disengaged or it can be
easily withdrawn from the State.
There is nothing. should our banks,
for Instance, catch the panic i'm.
pulse, to prevent them from wind
ing up their business and resortiug
to more inviting fields. 1t is true
that, If we found capital steadily
and psrseveringly deserting us, we
should still have Kearney left. His
Wild, barbaric yawp would rise on
the shrinking air with its old rude
vehemence. But we can't all find
consolation in the duloet accents of
this Sand Lotter. Even though
Wsllock should daily proclaim
Christ a bastard aud his blessed
mother something so gross that we
decline to write it, we should fl nd
small amends for State paralyzed
In all Its industries and hurrying
on In = mad swirl to universal
bankruptcy. There would be no
balm in Gilead for such state of
things even in the Ingenious con-
fsssion OF Kearney that he is as
gsod q man AZ old Christ.
The remedy for corporation greed
and oppression is o Legislature with
full and respectable powers, to
which the people shall elect reputa.
BILE men Of tried integrity. II we
admit that the people cannot elect
such meh, why, then, the scheme
Of representative government is a
dead failure. That Is all there is to
that mase Of the subjec
Tdke one aspect of the new Con-
sftution-that concerning corpora
ticns, with special reference to the
liability clause. The Convention,
taking advantage of the lament.
able fact that there have been a
number Of remarkable violations of
nduciary trusts in this State-oc-
currences which are liable to be-
pen as long as human ,I6ffec. ap-
mains constituted .Erfpts.s.ture re-
b h,dstiiulng I4end hass 1t is-has so
t,Csd direcQJfs Of corporations
with penalties and perils that few
except madmen will desire to be
parties to any scheme organized to
benefit or develop u com munity.
Asan illustration, we will take the
the case of a bank with directory
of honest men, whose duties are
prescribed by law. We will sup.
pose, for the sake of the argument,
that, on certain day, it is the duty
Of the Directors to meet, examine
the accounts of the Bank, find the
amount On hand, count the money
and certify to the result. We will
suppose this duty to have been
faithfully and conscentiously per-
formed. that the balances have been
correctly struck and the proper
amount Of money Is found ia the
vaults of the bank, and the Direc-
tors go home with clear con-
sciences. A dishonest cashier is a
possible incident of any bank. AT
ter the usual meeting, this indi-
vidual might 60 into the bank
vaults and steal the total assets.
No jury, ii the directors had done
their duty according to law, would
bring in verdict holding them
personally liable. The law, es-
peclally an organic law, should
show some trust in human nature.
1t should not throw around all ef-
forts of asso, ,iated enterprise an
atmosphere In which they simply
will decline to exist.
We are perfectly aware that, ab.
stractly, no precautions can be too
great In the interest of the people.
The greatest good of the greatest
number ought to be the domi-
nant principle in Republican
legislation. But it is no less true
that State which develops hos
tile animus towards capital is apt
to paraIyzs it and drive it from its
boundaries. The legislature uf
California, as it is constituted un-
der the present Constitu tion, has
ample powers to regulate corpora
tions. The question is whether,
In organic laws Of indefinite dura-
tion, 1t Is necessary to say to the
capitalist, as to the Chinaman,
that he "must ge." There Is a linn. /.
1t in all things. The fact that there
Il an oeca ,ional Duncan should not
blind us 10 the fact that there are