The Fight Over Corporate Power

The report of a few demagogues in the constitutional convention to pander to the moments of a few ignorant and prejudiced people is likely to involve very serious consequences. The draft of the action relating to corporations affords a striking illustration of this danger. It contains a provision relating to the liability of stockholders that would make it a practical impossibility for stock companies to exist in the state. If as proposed, namely, that stockholders shall be liable in proportion to their holding, should become the law of the state, it would paralyze all our larger industries and put a stop to railroad construction by local companies. Every well-known lawyer and business man of this city whose attention was directed to the provision at once pronounced it mischievous to the last degree. There can, indeed, be but one idea concerning it among practical people. To allow it to stand would be a paralyzing blow to our industries—would, in fact, prevent all development of mines and all building of competitive lines of railroad. There will be a joint meeting of the Chamber of Commerce and the Board of Trade tonight to consider this action of the constitutional convention respecting the liability of stockholders of corporations.