The Bridgeport evening farmer., 1914-12-08
THOMAS I. PARKINso:

The corporation laws of New York 1 limit liability of the Zacapa Steamship corporation to the value of it's corpor- ate property, but it must be remem- bered that there is nothing sacred l about this rule of corporation law. It is merely a rule of public policy for the encouragement of business. Un- der it have been developed great bus mess institutions and important pub | lie agencies which might never have been undertaken if their original pro- motors had been subjected to the risk of losing property not invested in their venture. The limitation of their liability to the value of the corporate property was a legitimate inducement and a proper protection. The pubIIc cannot afford to take away from bus mess men of initiative and courage this important induceme ent to new uI1- dertakings; but it is possible and seems desirable so to limit the rule that it may not be abused to the pub lie detrfment.
 Solutions of the Difficulty
 In various states, including New York, conditions in particular fields of business have required and produ- ced legislation varying the limited liability rule and imposing on corpor- ate directors and stockholders what is known as excess liability. This excess
 
 has been triple, the par value of the stock owned. L
 Resort to incorporation of each yes sel as a substitute for limited liability in admiralty, adds one element of difficulty to the program for increas- ing the claimants chances of secur- ing substantial redress The limited liability rule in admiralty can be re- pealed or. amended by an act of Con gress. The limited corporate liabil- lity rule can be changed by legislation, but so long as there is one state which refuses to pass such legislation, it would be possible for Steamship own CTS to take out their charters for each vessel in that jurisdiction. ; There are, however. solutions of this difficulty. If state incorporation for each ship is resorted to generally it, is proDaDIe chat the propoganda for. Federal incorporation of corporations engaged in interstate and foreign commerce. and particularly those en- gagged in transportation by water, will. be rapidly advanced.
 The way to 9. general rule by which the corporation owners may be sub iected to reasonable but subst tantiaI parative1y easy. Or rresp ective of general Federal interpretation, Con- gress might extend to interstate or foreign water carriers the principle of compulsory insurance of passengers, crew, and cargo, and make such, in surance a condition of the right to engage in such transportation This principle has been made familiar by it's inclusion in our workmen's com penssation acts.
 It is indeed an Interesting incident in the development Of our corporation law that has been contributed by these newly tArnericanized ships. It's effect and further use will undoubted- Iy be watched with great interest by the legal profession and the genera community If the action in this in stance is intended to prevent the ac- conplishment Of proposed public poli- cies, viz: more effective Federal reg ulation and increased liability for loss, it will be interesting to see whether it accomplishes it's purpose or recoi1s on the interests in whose favor 1t is advanced and develops ac- tual public advantages.