The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-04-29
CLASSIFYING THE DIRECTORS OF GREAT
RAILROAD CORPORATIONS.
To THE EDITOR OF THE HERALD:-

To THE EDITOR OF THE HERALD:-
To do right we must lie Just and love mercy. we
cannot be just II we be false witness against our
neIghbor. Such are the charges made by designing
politicians against the Executive OF this State In
the performance OF his official duties he signed a
bill that had been passed BY both houses at Albany
classifying the boards OF directors Of the Erie Rail-
road. the New York Central and the Hudson River
not special BILL 1t included the three great
roads OF this State; not bill 10 favor the demo-
cratic party, because 1t was passed with but few
dissenting Votes by republican Legislature; not
o bill to take away the rights OF stockholders
but by dividing the board Of directors into three
classes and eectlng onethird annually secured the
stockholders against any sudden raid, by designing
and inscriptions men, to get possession OF the pro-
perty for dishonest purposes
The bill was not signed BY the Executive until
after the most careful consideration. Finding
nothing IN the bill interfering In any way with the
constitution or the United States or the State OF
New York. and In order that parties interested might
have an opportunity 70 file their objections he re-
tanned the bill TWO weeks; and Notwithstanding the
large amount Of stock held by citizens OF this State
IN the three roads-Erie Central and Hudson
one hundred mili0ns but enc single individual the
owner OF ten shares objected, ana ne gave no valid
become law There being no constitutional OBJ.
jections, upon what grounds could the Executive
withhold his signature, and thus block the wheels
OF legislations
The same law had been passed by the States of
Illinois, Indiana, Ohio and Pennsylvania as q pro-
lection to stockholders, and experience has proved
the law to be q wise measure rendering property
more secure than 1t could possibly be without such
provisions and even In New York the same law ap-
plies to The Central and Hudson River, and none
Interested in these two corporations have raised
their voice against It. And long before the enact
ment Of the law In Illinois the great Central Rail-
road OF that State adopted the principle or classi.
Tying the directors, ana electlng one-third OF the
number annually. for the security OF the stock
holders. And here in this very city the principle
was put In practice Dy many Of our financial
1nsttuti0ns-the Bank OF Commerce, Unted States
Trust COMPANY. the Great western Marine and
many others. The principle has worked well, and
those companies would he unwilling to change.
And In every case within the knowledge
or the writer where 1t has been tested
II has worked most satisfactorily. except 1t
be In the case or the Erie Railroad and there the
difficulty Is not in the law but In the courts and in
that case the parties nov IN power secured the
troll under the Old law. Can law which has proved
beneficial in the States OF Illinois, Indiana Ohio and
Pennsylvania be bad in Tie State OF New York Is
1t fair to charge the sins resting upon the courts
upeD the Executive or the dOings OF Fisk and Gould
upon q republican Legislature whose only fault APP
pears TO have been ip passing wise lawy