The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1889-07-20
n WOULD BRIne DISASTER
To Make Stockholders Personally
Liable for Corporation Debts
ssr~~x 0vpaassfsn 10 the Psssisisn
<.w P.natng ~ Olympia
ysIaasse opssiass

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- flts usF~r~zs nssgEzE stock o. ssizEs.s -
he essrr. rafian % assssesss5sssl. safs eSfss
tors ss trustees u esasE-a-Afssfffs sss s'.ist
xsse& &sssssizfteBK shall - loaa5sf sisa
ssss%ralfy ilasS. 20 tSe creditors siset *sss-s
killers for Al saozaeys esaeezxsess 90 Ea4s
appropriated - the s'sssfesH % shea ~
the terra 0g ostee = sxea eiEessioF os
trszEsass.
A rur,prseg q ths Peer lsTs.s-f1s g. { y Y 2
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tbs section 4 ass0g'esi.
coop FoG TAE sosTaEEN F3ffFff
said ex nief Justice Thomas buF1e
s4The efssx. Of adoption AZ THIS proposed
provision woaia t.e equivalent 20 ps0hisa-
tea 81 TIE uygzrisssl0n of corporations IN
ths= sfrrftars. IL axes disability on seek
holders which 80 grnsteEt MAS woss8a ssfT
fhfnk fer 4 moment OF assuming. @9tn
ss.eh a E.roV sim ia TIE constitution u
sgul. b. practically SiaEossl5is - get
r-s@aey slssua6 % develop the Resources 81
thss xfsse aa4 when w stop - consider
Assrs !
uhoiiY unslevel0ped coautFy. eaa tAaf.
sssgffsr;isYiv IN Wcssern N&sflafsxiofl, the
8axskssgssssTsf % oar resources easE fse nc
sempllshsd ouly by the concentration o.
large amounts Of capital, one can see az E
lance that fhe provision Is absolutely
iron nine in the North west can hs oIssfsSi
x1thott The expenditure IF a large amount
% espital concentrated In corporation.
@AS against a3i shis evil. no good csn
come froIs such provision hAVe no
he. ssncy Ia saying that IL sonii AD~st-
iutesy arrest the birding Q. railroads y
local corporations or b local eoTEast Atiot ;
assisted 5y foreign capital, and this would
leave the territory coEz plEtelf ~ the mercy
~ the Northern FAclae railroad. IhAs
COMPANY could afford to give sl.nGsJ Ia
have tass provision - The constitution
Thus II xiIl be seen that sEeh lAN, In
stead Of preventing TaoBDpoties. would lay
new state as ever buriened With. Inc
era tmeni Of such = provision would Dc =
public CALAMITY.
rHE FEEsEsT Las nsrfEE.
Colonel J. c. Haines said. At IS a re
maxkaiiie prov sion. think IL woeld be
very iajndicious aud esnger0Bs 10 insert Il
in the constitution. nder the present
code a stne holder IL liable for The amount
I 10. 10 4.
fund fsr the benfrt Of fge creditors. \
mat kgewS y ben hS pays X IN thai bic
liability does uos exceed his pawn enf, We
essf along well under the Old law. aud | ste
aa reason why IL should be changed. Tais
new idea makes no distinction between n
stock holder whe has paid nothing and one
WHO has paid 10 fan. II a siocknotdeE has
paid h fail ne may slili be liable Tor Ice
a. much a. be ho has "a 4 nothing.
"CorIr0raiion shares aft u ihgoTige fuEest-
nsent with foreign capitalists, owing 10
she limited liability. aud also viii persons
OF small means Foreigner are iosth 10
invest EXCEPT in corporations. bgt now
corporations are 90 De made partnerships
III some Nates A bank zfockholGer IS liable
Tor hts patti sna unpaid stock. but this re-
Iates ouiy 20 financial Institutions. The
Old statute has worked very we'll
INTERSTATE CORPORATIONS
NJ q. Morris Hsiief's view was stated
as follows s'BaSne.s experience has
shown that great aggregates OF capital
cannot be gathered together when ID man
agemeuE practically est Of tlIe haads
II those who furnish the money, and
wheu the persons pros ding the capital are
subject % greater Liability than the Joss az
the capital invested To plsoe upon q
STOCK holder greater liability than loss Of
hlS stock would make II unsafe for any
business man to own StGfk u corporations
unie<s he has enough influence IL control
the management ihe provision propose q
for the constitution would make every
corporation practically partnership. No
rsilfnad. canal. ditch, sRamiii, mauufac.
tory OF other enterprise requiring an
aggregation 81 capital could be established
Ia this TERRITORY nobody would trust MS
f3rtaue IN sneh hazardous undertaking.
AS the constitution could only bind
down home corporations. a. federal char
teFs would not he affected by the pro-
vision, aud a. ali corporations Uf other
SKATES doing an interstate business would
have right "a DO business in this state
regardless al these provisions, IL follows
that premium would De- placed uIson tn.
organization ri corporations Ia other
states IN all matters ia whigi- Interstate
trade or commerce operate. and a other
corporations would be ariYcn from the
state.
Il am unQaaliaefly iu favor of striking
the provision in question from the dralt
ni the constitution. sul leaving "a Ca the
legislature fn fix Such enc Ks upon u G
formation ~ corporations - tae experience
81 mankind irugH flme b tinie shsli show
fo Ae wise Rnd reasonable Is legislature
makes mistake 40 one session, &c can be
corrected SO the next. but 20 erystaiiEe
such pTosisloA ia the constitution viii
pagals ~ the Development of this century
uuIil snufhvF constitutional roffYeut
shall have repealed this folly.
As FuEardes hanks of detssit however
{ fhink il Is wise 10 place. 80 addition to
the luss ~ stock. a hArA liability upon The
stock no Ter In ease Of .sr failure of The
bans. and a very COED provision s. uuc
which makes a sIoe shold,r OF banking in
stitwtiOUs liable, ia addition ~ loss Of
stack. 80 ICES sap "a The par value pi the
stock The emily rCasoa sgs such a proyis-
lon Is that tsanks OF dep sit and savings
tsnks are sFHtfees. aud II adds 10 the
credit ui hr bank sod The sats 81 OF thc De
pesfiofs Ia nsye such a Liability. snl. the
liability being Il certain, limited ere. TIE
capitalist - ho pnis money lB tbs baDk
know iusg 81 bat isS he is taxing. Bat
sac pfoy SION under discussion igaSes tae
RISK uncertain aud ao person put exc ut!au
prssgi could affHFfi a. Own stock er ssstsi ln
tho Development IT tie country "ath hts
capital.
gHx STATE kNp Frs CREATIONS.
J;sJge & Lewis said. In the Crea
tgen of corporations. and defining ihei;
Tsaacrs. duties and liabilities, saass sgv
necessarily three parties 20 eousJter. to
W3t The artificial bssaS created. the
sfo, khal fsfs ,aad fhe CiuscuS dvAiina
aita g. fse powers aaA daltes If taS
creators, the Fights sHd liabilities ug stass