The Fight Over Corporate Liability
Prominent businessmen gather at the courthouse to debate if shareholders should be personally liable for corporate debts.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
The Chamber of Commerce and Board of Trade held a meeting at the courthouse this Saturday evening to consider the liability of shareholders in corporations. The discussion centered on a proposed provision in the new state constitution that would make every stockholder personally liable for the debts and liabilities of the corporation. Mr. Joseph B. Allen, of the Bank of Commerce, said, 'No man who has any means would dare own stock in any company, or serve as a director. If any protection is needed, make the stockholder liable pro rata for the stock he has under name. The public can secure credit knowing this.' The meeting reflected the broader anxiety of a city attempting to attract investment while balancing the rights of creditors against the interests of those bankrolling the town's growth.
“No man who has any means would dare own stock in any company, or serve as a director.”
This debate over corporate accountability versus the desire to attract outside capital mirrors Seattle's ongoing struggle with how to regulate big business and development without stifling economic growth.
From readers
No comments yet. If you know something about this story — a correction, a family memory, a source — it belongs here.