The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-12-28

sbsolut<y unworthy of the station they. occupy and
such will be the exposition of official improprietis O.
whenever the concern shall pass into other hands wbs
ter 20 ts representatives Of the stcckhoders or the
creditors will fully justify the charge of scsndalous
Encouragement The public attention having bean
awakened to the enquiry which is in progress they wiz
not be satisfied with any halfway that ca
be patched up the and causes of the general
disappointment must be brought fully to light and ws
therefore, caution those who would venture the bus
of restoration either from vanity ssl6shnss to
look well to their undertaking.
II has been, for time pest, just cause of
pain that the stockholders have been kept In constant
ignorance OF the condition of the company and conss
quently there has been opportunity for consultation
among them, through which proper for sssis
lance might have been devised thus leaving the whole
matter to the charge Of few incompetent indivduas
In excluding the stockholders from knowledge of the
endorsements the directors have been enabled with
the transfer book their exclusive possession operate
In the ups and downs of the stooknarkst professional
gamblers are wont to do with loaded dice. The game
has been in this manner all sidswhils the ints-
teress Of the public have been totally neglected and
abused.
There has always been such fastidious Withholding
of information, and selfish regard for the transfer book,
to form strong circumstsntia evidence that the
csalmsnt practicsd was adopted fer the most dsngsnu
purposes; but in this instance there il necessity
to to such species of coroborstivs testimony
there Is positive evidence that the principal managers
have been guilty of repeated constructive Frauds In
ference to the mystery in whsh every transaction b.
been snvelopsd take the opportunity to remark &
deserves higher disinosn than to be characterized
a. sanation Of sxubsrant tlsness of spirit the
miserable rcksy Of ignorance and wsaknsssss those
who feel conscious Of their integrity having die
honest objects to cloak, seek security from conossr
ment, nor importance through disguise.
A another instance Of incompstsncy, 1t il proper 10
sats that the councils Of the beard have been governed
by spirit. through which every difference with
creditors has been unjusly contested, by rssorny 10
legal techncaes and the chances incident to procrss.
tnating litigation; and such have been the frvoleus
grounds rsssrsd to for defence that the faith Of the
company has become by.werd with the profession re-
sultas, a. might be expected in larger vsrdicts end
judgments for damages than would have occurred
through fair and equitable compromise.
ia this inbscile policy, this jealousy Of Int rsrsnos
with efcial dignity, this want Of honest independence
and this supreme degree of ssnshnem, which has in
Auenced every movement thathas brought this company
to the very verge Of insolvency, and proves
slusivsly that in the management q sorpots satab
shments there ought to be constant and liberal inter
Communication between the stockholders and their rep
rssentaves. The fault il not however, entirely with
tho directors in the supinsAss Of stockholders there
exists great deal too much respect for Official dignity
overchsged confidence in the integrity Of elective
rustses giving to those in place supercilious habit Of
considering themselves above responsibility.
In the representation have m,de of the conduct Of
the direction aware that the censure does not
N hova haau lwh
have shown themselves superior to the control
ling Influences, and through whose exsrtions AZ
association of individuals formed, composed
Of fgsntlemen Of rsspectability intelligence and
pital who would have advanced q half million
Of dollars provided reconstruction Of the direction
could be made to meet their views Of representative
responsibility There have, also been others who have
retired from the board to avoid any further ricipaon
in the public displeasurs This prudent sxsrtion may
have been justinabe, especially couports with the
general practice of avoiding diculuss bat We Of
opinion that those who have refused b driven from
their post, have acted In manner much manly and
nertorous.
There should be arrangements In the financial me
gotations Of corporate institutions, in which the stock
holders should be held unworthy to participate, and
whenever any such attempted to be introduced hav
ing vital bearing the general interests it should be
the duty those Who disapprove of sush operations to
condemn those who retired from the direction for
want of 6mnsss want Of fairness, in not sxpong the
infractions which about to be made the rights
Of their constituents.
The negotiations which are now under oensid Grafton
and in which Mr. Havsmsysr 10 playing conspicuous
part may be successful . bargain, but will fell to
raise the honor Of the company that tbs gen
tlsman, in declining to his democratic Friends
the score of domestic comfort has all once discovered
that hurth N al wif
per peounary compensation not much to his dis
taste ~ he had imsginsd. The game now h. to bring
into the board set Of direeters by giving them
controlling Of stock very low prices with the
contingent advantage of loanng money the bonds Of
the company convertible into stock twenty Ave per
cent below par. The directors who hold stock have
perfect right contract for associates but have they the
right disregard the acquisitions Of the charter in
der to carry through their s.ookjobbing operations
There IT, however honesty in the arrange mont; the
negotiating directors will mako sacrifices; the stock
holders who kept in isaerancs Of The movement will
be deceived If Mr. Havsmsysr goes int this company
on such, similar conditions, he will BE- disappointed
and such 10 the nature Of the negotiation foot
that reflects very little credit upon those concerned
In our former remarks stated the debts Of the
company would not be less than thirteen hundred thou.
sand dollars when the road reaches sonsrs, but viii
be from the following statement that already
ceeds that amount Not that this amount be ascsr
tanned from the records Of the company. for know
that the loans made the hypothscasn Of stock have
been regularly entered their bosks and what
will appear much more extraordinary they have
been authorized by the board Of directors nor In any
manner sanctioned BY the stockholders. We will
turs to that the chairman Of their n.anss committee
has not been consusst least such has been his reply
to direct inquiry. If the negotiation which Mr. Have
meyer il contracting 10 legitimate, cannot Why
the Legislature circumscrbed the mode Of doing business
through the instrumenality Of board Of directors.
The charter has legal existence the present mo
nent and those who have bsen guilty Of thus
ing their duties proper subjects for the attention of
the legislature. whore violations Of ill charters should
DO condemned, whatever may be the rank and state
those guilty Of such transactions.