The herald., 1896-10-02

(The Herald under this heading prints
communications, but does not assume re-
sponsibility for the sentiments expressed.
Owing to the very large number of COM
munications received lately by The Herald
on the currency and other political cues
tions. correspondents will understand that
there may be some delay in the publication
of their letters. Correspondents are re-
quested to cultivate brevity as far as is
consistent with the proper expression OF
their views.)
Editor Herald: Your position has been
so correct on most of the issues of the
present campaign, both state and ma
tional, it was with serious regret that l
read this mornings editorial headed,
adopt One, Reject the Other" In my
opinion the proposed third amend
ment is one of the most i'm
portant issues of the state cam
paign, its adoption meaning doub
ling almost Immediately of the number
of manufacturing industries in this
state. l am newcomer, but certainly
know one important industry that will
follow the adoption of the amendment.
Unlimited liability is well enough in the
matter of partnership where each part
ner is naturally familiar daily with all
the details of their business, but in Joint
stock corporations where the stock is
widely scattered and in the hands of
parties who only know results through
apparent. There are opoo ings in Cali
fornia for large number of new indus
tries, many of which will only be estab-
lished by the bringing together of a
large number of small Investors. The
proposed amendment will not materi
ally injure creditors, as the latter will
as a rule be good business men, able al
ways through mercantile and other
agencies to ascertain the standing of
CT r1d
credits accordingly. 1t will be an aid to
the small and often poor stockholder
and be of tremendous assistance in de-
veloping the manufacturing industries
of the state. There are thousands of
us who will be willing to contribute to
the establishing of these industries just
as soon as we know that our liability
ends when our stock is paid for in full
L. FRANK.
(The foregoing criticism of The Her.
erald's position regarding Amendment
Number Three does not disturb the
proposition upon which The Herald's
objections to the amendment are based
that corporation or joint stock associ-
alton is partnership in the benefits
of which the shareholders participate
according to the proportion of their in
terest as represented by the number of
shares respectively held by them; that
such being the case, equity demands
that these same shareholders be liable,
at least, in the degree Of their interest,
for the debts and liabilities incurred by
the corporation in the prosecution of
those enterprises and activities through
which they expect to profit. That with
such a liability stockholders may some
times suffer more in losses than they en-
joy In profits because of mismanage-
ment by the corporation officers is true,
but that is properly only a matter be-
tween the stockholders and those Of
fcers. 1t is certainly not fair to ask
creditors to bear the consequences of the
acts of officers employed by the share
holders of the corporation credited.
That the adoption of the amendment
will result in almost doubling the num-
ber of manufacturing establishments is
certainly a most pleasing but at the
same time rather untenable expecta~
tion. That it would result in doubling
the number of corporations is more
probable, but the value of corporations
as producing agencies is dependent
largely on the extent to which they may
be safely credited. The state is not in
need of the kind of corporation that ia
cilitates fraud or cultivates a sense of
responsibility. This sort of corpora
tion Amendment Number Three will
give us in fundamentally