Ochiltree v. Railroad Co.
Supreme Court of the United States
Error to the Supreme Court of Missouri; the case being thus: A constitution of Missouri adopted in 1865, under a provision relating to the debts due by corporations having stockholders, thus enacted: “In all casas each stockholder shall be individually liable over and above the stock by him or her owned, and any amount unpaid thereon in a further sum at least equal in amount to such stock.”
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Error to the Supreme Court of Missouri; the case being thus: A constitution of Missouri adopted in 1865, under a provision relating to the debts due by corporations having stockholders, thus enacted: “In all casas each stockholder shall be individually liable over and above the stock by him or her owned, and any amount unpaid thereon in a further sum at least equal in amount to such stock.” This clause of the constitution of 1865, commonly called “the double liability clause,” being in force (with a statute also prescribing a method of giving effect to it), the Alexandria and Nebraska City…
1Opinion of the CourtJustice Davis
It is quite apparent that considerations of public policy induced the adoption of the double liability clause in the constitution of 1865, and equally apparent that, in the minds of the framers of the amendment of 1870, this provision had operated injuriously to the interests of the State, and that sound policy dictated its repeal. It is not difficult to see, with this provision in force, that great public improvements, in some of the States of the Union at least, could not be suc cessfully carried on. Instead of inviting capital it would repel it. There are few persons who would consent to…
2Cited by30 opinions
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- Medina v. BOARD OF RETIREMENT, LACERACalifornia Court of Appeal · 2003
- Wall v. Basin Mining Co.Idaho Supreme Court · 1909
- Walsh v. Board of Administration of Public Employees' Retirement SystemCalifornia Court of Appeal · 1992
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