The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-11
STOCKHOLDERS RIGHTS.

WHAT THE STOCK EXCHANGE SAYS ABOUT RE-
PORTS OF OBSERVATION-DISCLOSURES THE PUBLIC
WILL DEMAND.
The following interesting report submitted at the
last meeting OF the Governing Committee of the Stock
Exchange by . committee appointed about ono year
sgo. was read and adopted In tho Exchange yester-
day.
NEW York Srocx ExcHASGE,(
NEW YORK, May Z 1877.
TO THE GOVERNING COMMITTEE or THE NEW YORK
GESrLEMES-The sub-com mittee appointed to secure
reports from railway and other corporations beg 10 e
port that soon after their appointment they prepared
several circulars. copies Of which are annexed, and
sent them to The presidents OF various corporations
represented at tho Exchange. The result OF these
efforts was not cheering. After delay OF several
months about OF companies consented TO fur
nlsh tho desired Information and have done SO. But
the leading corporations declined on various pretexts
TO comply with our request. The coal companies
stated tha as they were miners Us well as carriers
they could not make up reports more frequently than
once year. The President of tho New Jersey Gen.
trail wrote that he had reason TO believe the public sat
isned with his reports, statement which tho public
took occasion to contradict very emphatcay short
time alter Mr. Vanderbilt sent courteous reply, SO
worded as TO cause your committee TO nope
that no would givo the desired returns.
But we found to our regret in seeking more definite
purpose to give the public no more information than
Was required by law. Tho Michigan Central road iur-
nshed frequent returns white they were favorable but
ceased TO do when they showed decrease OF earn
ings Tho Milwaukee and ST Paul Also alter spasm
OF virtuous action, succum bed TO the evil advice OF
some oi lis western neghbors and discontinued lis re-
ports. The only directors by whom your committee
were treated with dscourtesy, and in some cases even
with positive rudeness those of the Northwestern
and Rock Island railroads. Inasmuch as We do not
wish 10 DO guilty OF similar bad behavior wo refrain
IRON comment on the troubles which have recently
come upon these companies simply suggesting that pos
sibly tier directors may have changed their views
within few weeks as to tho creiuty OF the public
Alter this account Of our experience Will not perhaps
strange that your committee felt little cncour-
agemcnt 10 continue thor abors There were. how.
ever other reasons tor relaxing our efforts We found
that reports whom signed sanctioned by men Of
wealth and reputation were often utterly untrust
hanas receiver with its president proclaimng It's
sovency up 10 the very day Of It's publicly acknow-
edged bankruptcy, We ie that even Official reports US
now made up wcrc not tho panacea oil which We were
in search.
But our inaction has been chiefly due fact that
other agencies arc quietly but nnshng the
task We have begun. Since your committee was ap-
pointed marked change has taken place In public
sentiment as TO the work In which arc engaged.
Tho information Seek always thought desirable, Is
now generally demanded with daily increasing vehe-
mence The stockholder IS at last aroused to sense
OF his rights and his reply TO rcfusals to make full and
frequent reports is ono that must eventually secure
them-he sells his Stock Apparently the golden ago
OF the speculative director has passed away The ono
corner stono upon which his structures rested was
public confidence That confidence, wonderfully en-
during, alter repeated shocks Is ut last vanishng and
goes tho selfish schemes Of iathless trustees fall
10 the ground We believe the days IRE numbered
when few men can control vast corporations Ny n.y.
pothecating stock at fictitious valuation and then
impudcntly refuse 10 furnish Information TO the men
who give them their power. The tables are turning
and the time IS short In which tho Stock Exchange
will be obliged 10 petition, humby, but Intellectually
for information. We had proof Of this recently. Tho
directors OF tho Rock Island road forced at crit
ical moment 10 ask tho Stock Exchange 10 verify their
statements as TO the condition OF the company. Wc
know now, as they knew thon, that II they had not
abandoned their arrogant position at tho very hour
the panic which had already started would have dealt
ruinous blow, not only 10 their securities, but to
those OF every company managed on the Same vicious
principle. tN
In WOW Of this condition Of affairs your committee
has other recommendations to offer than that the
present requirements to reports relating TO new
curtes DO rigidly enforced and, furthermore, that
every member OF the Exchange exert ms individual
influence 10 secure the desired reform. Wo urge them
TO demand their right behalf OF themselves and
their clients, holders OF hundreds OF millions OF securi
tics IN which wo trade Let them withhold proxies
from any who refuse TO do their duty In this re-
specL Let them show the shrewd men who control
the New York Central Rock Island, Michigan Contra,
Panama and other loading corporations that the only
way TO remove the almost universal distrust which
threatens tho safety OF their companies is to ron
der tho public frequent and honest reports Of the
trust conhdcd 10 them Whom this Is done, ana not
until then, the occupation OF the so-caed .wrecker'
will be gone, and our business will be re.cstabished on
firm and profitable basis
With these recommendations your committee re-
specuy request to DO discharged IRON further con-
sideralion OF this matter.
BRAYTON IVES, Chairman.
DUNALD MACKAY.
HENRY MElGS.