New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-04-03
MANUFACTURING K1lsMANAGE-
NIRNT.


The great manufacturing corporations of Massa-
chusetts consist Of two classes Of stockholders--
men Of capital real or reputed, and those who, hav.
ing but limited pocuniary resources, have sought
in these establishments safe, profitable and
permanent Investment. Ithappens, unfortunately
for the latter class, that, in tho transaction OF
corporate business, those who are most directly
interested in an honest, prudent, and intelligent
management, ore, from the necessity Of the case,
compelled to delegate much Of their personal au-
thortty to Presidents, TTeasurers, Agents and
other officials; and it would be strange also con-
sidering the in6rInity Of human nature, ii the
persons we have last named should always be
found acting with single eye to the interests OF
their constituents, and with o generous blindness
to their own. Hence q mismsnaged corporation
ia the most common thing In the world. Hence
the country is full of the wrecks of great fnan-
cia, commercial, aud manufacturing enterprises
Of companies which pay email dividends in PRO-
portion TO their capital. and Of companies which
will never pay a dividend again. DR.. Aver Of
Lowell. in pamphlet which is now before us,
complains that the Lowell Manufacturing Com
pany "has averaged o semi-annual dividend OF
$40 per share" only on $1,000 shares
that "dpnng the last fifteen years, the
Boot Company has paid an average an
nual diydeod OF 4 Clio per cent on its
stock"---that the Middleeex Mills in Lowell, and
Bay State Mills, in LawrbDce, have gone to what
Mr.. Mautilini cals +" the demntion bow-wows'--
tbaktho Merrimack Company, with immense ad-
vantages from the possession Of real estate, and
with an lmmensey valuable stock Of cotton and
goods Ut the breaking out of tho Rebellion, " can
claim BIZ. 10 per cent surplus, with its stock
down to ll2 per cent" From careful review
Of Theses symptoms. tbs Doctor makes up his
diagnosis, and being himself it is rumorcd. tho
largest shareholder in the State. no comes to tho
uncomfortable conclusion that tho Directors have
no particular passion for diyerting the dividends
from the well.trsyeled road to their own pockets
into those OF tho "mere owners" This has
moved him, az IL would anybody, 70 write,
print and publish pamphlet, which will be our
maiu authority for whatever statements we may
make in this article.
The theory of a corporation is, or should DO,
that every stoekholdcr shall be entitled to voice
in its management, which shall DO potential in
proportion to tho amount of his stock. Nothing
but puro democracy should preside in tho annual
meetings. But the practical working of this
salutary rulo may be variously retarded. In the
first place. no stockholder can DO expected to at
tend any annual meeting unless he knows when
and where the meeting aforesaid 10 10 DO held.
In the next place, it is absolutely requisite, If
stockholder would enter any protest. offer any
resolution, call for any Committee Of Investiga-
ton, that no shall be able to make his way into
the room in which the annual meeting is convened.
But what chance has he Of doing this. when the
Directors of the Company call a meeting Of from
$50 to 600 individual stockholders who are ex-
pected 10 deliberate in the Treasurer's ofice, in
Boston, room which can hold only from 40 to 80
peoplel We can imagine desperate and DIS
gusted stockholder from the rural districts, arriv
ing in hot haste with q resolution in his pocket.
For long time, he has been destitute OF dsceut
dividends. aud he has din visions of raising
Committee of Investigation. Msguidod man
He can't get In! lilo 10 precisely in the reverse
position of Sterne's starting that could ut get
out. Somewhere Ia the penetralia, the mag
mates Of the Corporation are doing all manner OF
things-votiog AWAY his money--voting them
selves salariss-vOtiDg agencies to their iavori.o
jobbers--but much no has to do with tho matter
What can he do, but heavo ono doop sigh. and
leavef What is he, poor man, against man.
aging Treasurer with bis pockets Bullying with
proxies, obteined. in many cases (Dr. Aver says)
from unprotected females, who labor under the
hallucinasion that they must sign proxy before
they can draw what little dividend may be- duo TO
themi Undor such circumstances, tho officers
can and do. as matter Of course, reflect them.
selves--and pray what can the perspring stock.
holder who can't get in, do about it Nobody
can deny that here is q monstrous abuse or at
least the opportunity for one. The Lowell Manu-.
featuring Company has four hundred and sixt two
stockholders. Its last annual meeting wa, held
in o room seventeen by thirty-swo feet. Only
twenty nine stockholders were present, and they
voted to Treasurer who had concluded to re-
sign, and who had received for his services sc, 900
per snnum, . complimentary bonus Of $4,000 for
doing his duty. Many Of tho stockholders in this
corporation are poor, while tho gentleman 30
mngnifcenty complimentod j, rich, and " had re-
ceissd enormous emouments from other manu-
featuring corpOrations." But this did MOI prevent
this exhibition of eIuberant gratitude ON the part
Of th6a. who did got into. tho room, whatever
may hive been ne disgust Of those who didn't;