, 1869-04-09
MINORITY REPRESENTATION FOB
RAILWAY STOCKHOLDERS.


e.ning railway corporations. Frequently
the genius, or HALLWAY King, as he is
called, whose knAveries not only injure but
swiudle the stockholders most is most suc-
ccssful rs railway manager. L. it not
worthy the attention Of the honorable off,
Gers and stockholders Of such corporations to
consider whether many Of the owls attend
ing their management would not be lessened
by tho adoption Of the minority principle in
the election, first, Of the Board Of Directors,
md then Of the executive officers, including
the Executive Committee, who form the
wheel within the wheel and ruling power in
tho company7 Compare, for instance, the
operation Of the two principles in relation
to the Erie Railway. In tho spring Of 1868
Vanderbilt md his friends held at least four
ninths of the genuine shares Of tho Erie
Company. On the minority principle tho
Vanderbilt party would have been entitled
to elect four Directors, and the Drew and
Fisk party Eve, or in that proportion,
in the board, in the Executive Committee
md in the snb- committee, and they would
have elected nearly half tho general officers
Of the roaa. Tho Fisk party, knowing in nd
vance that no "ring" could be
formed 10 swindle tho Vanderbilt stock
holders # The latter would have to be ''in
tho ring, and that they could not exclude
the Vanderbilt party from four-ninths Of
the Directors, would have had no induce
1nent or practical power to issue the $780,
| OOO, mo Of new stock to prevent Vanderbilt
from buying majority Of the shares Of the
company no sucll o<er-issue would have
occurred the stock would not have been
knocked down IN value from 50 TO IS; the
| stockholders would not have been swinllel
by this oye1-issue md depreciation ont Of
more th2n half tho value Of thoir common
stock; the company would not have had
to r.y vnndcrbil. 81, ooo, 900 for his losses !;
tho Judiciary Of New York would hava had
no opportunity to disgrace itself; and ono
Of the most inscriptions men in the rail-
road business would not to-day have bought,
bribcd and debauched MI that came IN his
WHY TO stain the topmost round Of the lad
der Of rnilwny power. Under the present
system of majority rule, all that Fisk ind
Drew had to do ~as to keep control Of the
minority Of the ssock' aud that gave
them absolute control oi tho MINOR
ity. No sooner were tho votes cast
showing TINT they had the n7jorisy,
and consequently had elected the whole
Board Of Directors, than the Vanderbilt
stuck waa practically ignored. The election ot
the Board Of Directors "a wiped out" half The
stock, or gave tho Fisk party u full contro
over it rs if they had owned it. Next fol
loYa the election by the board Of m E1eco
tive Committee, on the same majority pr1n
ciple. Whatever stock was not held by tn
tne1nbers Of the Executive CoH1n1tte (an
probably uinc-tcnths at least OF it WAS not
ceased to lie represented in its government
At last l. subcommittee Of the E1ecadv
Committee [Gould, Fisk and Lane) a1c vesto
with absolute power to I'm the affairs G
the company at their own will, mud III
quantity Of ntoc& held by them ia 80 s.na
that their interest as ring managers
altogether more powerful thnn their intercs
, "a stockholders. Had the sub-E1ecutiv
, Ctunmittcc, on tho contrary, consisted {
s Gould, Fisk, and some sllrcxd 1ailwa
\ manager elected BY and identified with h
minority stock-say Cornelius Vanderbilt
. wouldhave saved the Erie Company million
( of dollars, tho country much iniquity an
disgzaee>