Bisbee daily review., 1910-10-29
ElttNWOOD'S CORPORATION ACT.

CORPORATION ACT.
 Perhaps the most widely discussed proposition that has yet been intro duced into the constitutional con vention is the one introduced by E. E. Eilinwood, of this county. pro- yiding conditions upon which com panies may be incorporated in the cles criticising Mir. El5inwood's prop osition were evidently written by those who had never carefully read the proposition, as it assumed that each individual stockholder is held liable for ay the debts of the com pany. This is an error as care ful reading of Section II of the prop. ositioa, which follows
 Section H. The stockholders of all corporations shall be in dividuaily and personally iabie
 for the indebtedness of said corporation to the amount of the par value of their stock SUBSCRIBED AND UNPAID; and the stockholders of all cor poradons shall be individually liable for ai labor performed for such corporation"
 This section only places liability on stockholders for company debts to the amount they may owe the company for stock which has not been paid for. except for labor Each stockhoider is held for none, due for labor performed. But thers would be no liability on the. stock holders unti lthe assets of the com pany have been exhausted.
 Section 12, of the proposition fol lows.
 Section 12. The directors or trustees Of corporations shall be jointly and severally liable to the creditors and stockholders for all moneys embedded or misappropriated by the officers of such corporation during the term Of office Of such director or trustee"
 The object of the proposition is prevent wildcat interpretations b. those who have no other objec than to skin the gullible public witt worthless stock which has no asset! behind itCertainly we will all admi that such an object is worthy an' that wildcat interpretations are un desirable in the new state
 Sections of I3 and If would pre- vent the formation of trusts o combinations in the new state an, are here copied:
 Section 13. Monopolies and trusts shall never be allowed in this State and no incorporated
 company. co-partnership or as- sociation of persons in this State shall directly or indirectly com
 bine or make any contract with
 any incorporated company, for
 eign or domestic, through their
 stockholders or the trustees or
 nf cto with any co-partnership or as- sociation of persons, or in any manner whatever to fix the
 prices, limit the production, or
 regulate the transportation of any product or commodity, so
 as to prevent competition in such prices, production, or trans
 portation, or to establish ex-
 cessive prices therefor. The legislature shall pass laws for the enforcement of this section by adequate penalties and in the acse of incorporated companies, if necessary for that purpose. may, as a penalty declare a for feiture of their franchises"
 Section 14. The exercise of the police power of the State shall never be abridged nor so construed as to permit corpora
 tions to conduct their business in such manner as to infringe the equal rights of individuals or the general well being of the State"
 So far as the remainder of thu proposition is concerned there hal been no objection raised and I simply outlines the routine methot of forming companies.
 BIT. EIinvood has simply pro