The herald., 1896-09-29
ADOPT ONE, REJECT THE
OTHER

Two" and amendment Number Three"
relate respectively to the methods by
which the people shall elect and the la
bility of stockholders in joint stock as
sociations. Their subjects, of course
suggest their Importance, but, as will
appear LATER Amendment Number
Three is the one demanding. especial
consideration. .-ra ...
Amendment Number Two IS of Sec
tion 8, Article II, and reads as follows:
"All elections by the people shall be
by ballot, or by such other method as
may be prescribed by law; provided,
that secresy in voting be preserved"
served
Section 5 of Article II now reads:
"Al elections by the people shall be
by ballot" The amendemnt consists in
adding the words: "Or by such other
method as may be prescribed by law,
provided that secresy in voting be pre-
served" Two objects, apparently, are
sought to be obtained through this
amendment-the liberty to use some
other method for expressing the will of
the people than that of the ballot, pos
sibly the voting machine, contrivapce
which seems to have become popular
in some parts of the country, and the
assurance of secresy in voting. Both of
these objects are of character that en-
title them to popular endorsement. If
a better way of obtaining the will of the
electors than that of the ballot has been
or can be devised the people should be
constitutionally free to utilize it. The
making of secresy in voting a constitu-
tional requisite is also wise. The law
at present provides most effectively for
the utmost privacy in voting, but there
is nothing in the constitution now to
prevent the legislature, if it SO desires
and there is no telling what a legisla-
ture might do to serve some nefarious
end-from stripping away every safe
guard of secresy from around the voter.
The best guarantee of conscientious
voting is found in those conditions
which permit the voter to exercise the
right of suffrage in absolute privacy.
There ought to be no doubt about the
adoption of Amendment Number Two.
Amendment Number Three is intend
ed to alter Section of Article XII, and
if adopted will make that section read:
1.-The liability of stockholders of cor
porations or joint stock associations
shall be limited by the face value of the
shares of the subscribed capital stock
or shares of such corporation or associ-
alton; and whenever any shares have
been fully paid up, the holder of such
shares shall not be further liable to such
corporation or association, or the credit
ors thereof, on that account. Each stock
holder of q corporation or joint stock
association whose capital stock is not
fully paid up shall be individually and
personally liable for such proportion of
all it's debts and liabilities contracted
or incurred during the time he was
stockholder or shareholder, as the
amount unpaid upon the stock or shares
owned by him bears to the whole
amount unpaid upon the subscribed
capital stock or shares of the corpora
ton or association. The directors or
trustees of corporations and joint stock
associations shall be Jointly and sever
ally liable to the creditors and stock
holders for all moneys embezzled or mis-
appropriated by the officers of such
corporation or joint stock association.
during the term of office of such director
or trustee"
Section 8 of ArticIeYNII now reads:
Each stockholder of a corporation or
joint stock association shall be indi-
vidually and personally liable for such
proportion of all it's debts and liabilities
contracted or incurred during the time
he was a stockholder, as the amount
of stock or shares owned by him bears
to the whole of the subscribed capital
stock or shares of the corporation or
association. The directors or trustees
of corporations and joint stock associa-
tions shall be jointly and severally liza
BILE to the creditors and stockholders for
all moneys embezzled or misappropri-
ated by the officers of such corpora
ton or joint stock association during
the term of office of such director or
trustee
a comparison of the proposed with the
existing section shows that the differ
ence between them is in the character
and extent of the liability of stockhold-
ers of corporations or joint stock asso-
Citations; in the liability of directors or
trustees of such organizations no
change is made by the amendment. But
the change made by the latter in the liza
bility of stockholders is a radical one
and therefore calls for the earnest and
intelligent consideration of the voter.
At present each stakeholder is liable
for such proportion of the debts or liza
bilities incurred during the time of his
stockholding as his stock bears to the
whole of the subscribed stock of the cor
poration. A party owning one-third of
the subscribed capital stock or shares of
a corporation is liable at law for one
third of the Indebtedness or liabilities
Of that corporation; in the event of the
failure of the latter to liquidate its debts
or liabilities such a party can be per-
sonally sued and judgment had against
him on the basis of his interest in the
corporation. And in the proportion
that stockholders are individually in
terested in a corporation their liability
for it's obligations is unlimited.
Amendment number three would linn
the face value of the shares subscribed
and relieve from liability for debts of
the corporation all stockholders whose
shares are paid up. Thus the only re-
source of the creditors of a corpora
ton defaulting in its obligations, and
void of assets. would be against such
stockholders as had not yet fully paid
up on their stock or shares. These
stockholders would be individually lia-
BILE for debts or liabilities incurred while