The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-12-13

trasser b nsd up with the name Of the last rseiput
This instead u insurns accuracy requires aAliSsaal
care and greater safeguards against errors.
mode Of transferring original certificates by endorse
nent certified BY the transfer oacer in addition TO the
transfer the books Of the company has at tss pre-
manages II has also inconveniences which would esc-
tually exclude it from adoption by any company k1ly
to have numerous transactions in its stock.
The stock accounts ledgers transfer and certificate
books Of the New Jersey railroad, are, you know,
kept by me- in person, A. secretary The csrtaestss
the treasurer for his signature Who as ven e each
directors has unrestricted at all times to both
transfer and certificate books and are regularly record
ed in connection with the account Of each stockhoder
and when certificates are surrendered they imms
daey destroyed by having the signatures erased and
Three times yeartwice for dividends and once for the
election Of Directors balance sheet of the ledger
made out being subject at each time to the
OF al stockholders, that any discrepancy cannot fail
to be discovered and rs all the books are ct the main
ONCE Of the company subject ct any time to the nspec
there is little for any fraudulent practsea unlsss
carried ON by such collision as would be scarcely prac
ticable.
It must be borne in mind that the frauds which have
been perperaed by the issue Of false certificates,
of stock where the transactions have not been connvsd
ception, (the Phenix Mining Company all occurred
either through the facilities afforded by requiring than
to te only sy % a.
the signature of the issuing ocer In both cases the
stock dodgers being exclusively under the control Of the
themselves by clerks authorized by them, and not
responsible to the companies involved And 1t here
S that the % IN
of signatures and it is doubted II any additional
rity can readily be attained in that way.
In the Of the New Haven Railroad further facii
ties afforded rather there less danger of
discovery from the fact that the company were not
paying dividends that the balance sheets Of the stock
ledger were not tested IT, indeed they were made out
and although the stockholders of the Harlem Railroad
do not know but that It have been the in the
with list before them Of those holding stock, with
their respective quantities boldly presented by the per-
the columns or by incorrect footings he succeeded in
passing that ordeal if it could be called when the
neglect Of the inspectors Is 1t Is scarcely
possible that frand Of the kind Of any magnitude
could be carried through the payment Of dividend
any company without collision between the keeper of
the stock ledger and its treasurer To presume
cabe involves the violent supposition that all the hold
Of the spurious stock would refrain from calling for
dividends. This consideration should tend to inspire
confidence in the correctness of the stock accounts of
such companies as are regularly paying dvidends for
two officers each independent Of the other and RESPONSE
Bile only to the Board Of Directors would find too many
dangers attendant upon the devisng and carrying out
of scheme Of any magnitude to engage in it unless up
held by Board of Directors who were themselves den-
quents.
do not think that any plan for conducting the stock
department Of business could be devised Offering
greater security against fraud than that pursued
although some companies might find Others equally as
convenient 1t is simple and the simpler tt plan the
less likely are errors 10 occur 1t has worked WE'LL aud
and examinations by the Board Of Directors irregular
periods, requiring only few hours each tme render it
almost impossible that the NewJerse railroad should ever
suffer from the misconduct inofce Of its secretary
transfer clerk she the company unfortunate
as to have in those stations persons Of character to be
tempted into trial would be pleased however, to
adopt any alterations the Board OF Directors may deem
advisable. Very respectfully Sir, .
W. A. WHITEHEAD, Secretary N. J. Railroad.
Mr. HoRNER suggested that in of fraud the best
practical plan was never to exchange certificate but
that could be DEVISED except by inscribng upon the
books the name of the owner of every share
Mr. DYER Of the opinion that stop should be put
present manner of exchanging certificates if they
would give the public increased confidence in making
their investments in railroad stock. Mr.. D. presented
the following resolution, which adopted -
Resolved That Messrs. Horner Dyer and Phoenix be
appointed committee to whom shall be referred the
above communication the subject Of safeguards in
the transfer and certificates Of stock, to report at
future meeting
Mr.. JARVIS hoped the convention would still continue
it's meetings once in every month, which would he
sidered be often enough for oil practical purposes He
moved that hold regular monthly meetings hereafter
Mr. HoPKINsoS thought that one quarter was suf-
fciept.
The motion Of Mr. Jarvis was put and adopted.
Judge HoPKINs0S moved that the President with two
other members, be appointed committee permanent
to report at the next meeting
This motion also adopted and Messrs Jarvis and
Marsh appointed in connection with the President
The following resolution presented by Mr. Batch
Resolved That committee be appointed 10 report to
the next meeting the views Of the railroad companies
ship owners and of Emigration in regard
to the transportation of emgrants from point to point
DR.. JONES spoke in support of the resolution.
Mr. JARVIS said that the subject had already been ia
under consideration by other bodies and that the
whole matter would be legsIated by the legsla
ture Of our own State The Central and Erie railroad
companies had already made arrangements for the
of emgrants, with the view OF putting
stop to the frauds practsed upon them. This meeting
had direct interest in the subject and he considered
It more advisable to present ii to those companies
The resolution carried. collection was taken
up to defray expenses, after which the meeting ad
journed