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

s...sisr Z and up with the Of the Hast s.esss
This instead Of insurng accuracy, requires ed1eion
care and greater safeguards against errors.
mode Of transferring original certificates BY endorse
transfer on the books Of the has At times Pre-
vailed some inrtitutons; but, while II has some I'D
vanages IL has also incouveniencss which would ssc
tualy exclude 1t from adoption by any company likely
to have numerous transactions in its stock
The stock accounts ledgers transfer and certificate
s SsOsi 10 Of the New Sssssy are = you know
after being led up and signed by me- presented
the treasurer for bis signature, who, well each
directors has unrestricted at all times to both
transfer and certificate books and regularly record
ed In connection with the account Of each stakeholder
and when certificates surrendered, they imme
diaely destroyed by having the signatures erased and
are then ned away in the order Of their surrender
Three times yeartwce for dividends and for the
made out being subject At each time to the
OF all stockholders, that any discrepancy cannot fail
to be discovered; and all the books ct the man
Office Of the company subject at any time to the inspec
ton Of the superior officers and the Board Of Directors
there Is little for any fraudulent practses unless
carried on by such collision rs would be scarcely prac
1t must be borne in mind that the frauds which have
been perpetrated by the issue of false certiacatss
Of stock where the have not bean connved
at by the directors Of the company, have, with
ception (the Phenix Mining Company all occurred
either through the facilities afforded by requiring than
to be signed only by transfer agent or what viva
lent thereto by having them signed in blank ready for
the signature Of the Issuing ocer in both cases the
parties concerned in the fraud, either being kept by
themselves by clerks authorised by them and not
responsible to the companies involved And here
be remarked that the practice Of signing certificates in
blank is the natural result OF too great multiplication
Of signatures and it is doubted IL any additional secu
rity readily be attained in that way.
In the Of the New Haven Railroad further fac.
ties Afforded or rather there less danger Of
discovery from the fact that the company were not
paying dividends that the balance sheets Of the stock
ledger not tested, If indeed they made out
and although the stockholders Of the Harlem Railroad
New Haven Company aso held election for directors
with list before them Of those holding stock, with
their respective quantities. boldly presented by the per-
peraor OF the fraud on that company yet by not adding
the columns by incorrect footings, he succeeded in
passing that ordeal III it could be called when the
possible that a fraud of the kind Of any magnitude
could be carried through the payment Of dividend in
any company without collision between the keeper Of
cabe involves the violent superstition that all the hold
Of the spurious stock would refrain from calling for
dividends This consideration should tend to inspire
such companies as are regularly paying divdends for
two officers each Independent of the other and RESPONSE
BILE only to the Board Of Directors would find too many
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 tho 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 tie plan the
less likely errors 10 It has worked WELL aud
its in practical operation should recommend r.
and examinations by the Board Of Directors at irregular
periods requiring only few hours each time render it
almost impossible that NewJersey should
suffer from the misconduct inoce of its secretary
transfer clerk she the company be unfortunate
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. WH1TEHEA AID, Secretary N. J. Railroad.
practical plan never to exchange certificate but
to endorse it always the back This is the best way
that could be devised except by nscribing upon the
Mr. DYER OF the opinion that stop should be put
tothe present manner of exchanging certificates IL 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 stll continue
It's once in every month, which would, he
sidered be often enough for all practical purposes. He
moved that hold regular monthly meetings hereafter
Mr.. HoPKINsoN thought that one .quarter was suf-
fcient
The motion Of Mr. Jarvis put and adopted.
Judge HoPKINsON moved that the President, with two
other members, be appointed committee on permanent
to report at the next meeting.
This motion was also adopted and Messra Jarvis and
Marsh appointed in connection with the President
The following resolution presented by Mr. Batch
ford
Resolved That committee be appointed 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
ken under consideration by other bodies and that the
whole matter would be egslated by the legisla
ure OF our own State. The Central and Erie railroad
companies had already made arrangements for the
of emigrants with the view OF putting
top to the frauds pracsed upon them. This meeting
had no direct interest in the subject and he considered
more advisable to present 1t to those companies.
The resolution carried. collection was taken
Up to defray expenses after which the meeting ad-
burned.