New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-05-07
DELlWlRE AND HUDSON.

DELAWARE md HUDSON
Some months ago the stock of the Delaware
and Hudson Canal Company was worth from
115 to 125 in the market. Coniiding men
and women, who believed that the managers
of that company were capable and honest, III
vested their earnings and savings in this high
priced stock because it was represented 10 DE
perfectly sound and safe. According 10
the recent statement made III behalf OF
the company, oniy 2S,OO0 shares OF stock
have been sold by stockholders during the re-
cent depression. If this is true, men and
women who paid about $3,1G0.00O for this
stock not long ago have been forced to sell at
n sacrifice OF S1,7O0, 900 or more, or else to
risk the total loss of their savings after the
manner 50 painfully familiar to those who
trusted the professions and promises OF the
managers OF Ncw-Jcrscy Central.
The conduct of this company has been such
as 10 cause the general belief that It's stock
holders were being plundcrcd. Its reports, a.
we have shown, were little more discredit-
able than an absolute refusal to report. What
the company l,cled in candor it made up iii
msolcncC and if there is reason to question
the virtue Of . woman who openly bGzOns i'll
the public streets her contempt OF the opinion
of all honest people, there was reason to be-
lcvc that the managers of the Delaware and
Hudson were aware that it had no financial
standing which il could retain If facts were
frankly stated. But the men who asked for
facts were iusultcd. Those who tried to cX-
tract facts from the official reports were
threatened Public confidence very properly
departed, and the stock went down, and
the haplcss stockholders were fccced. Our
part in the matter was to tell them that any
management which cheated them in its re-
ports must he expected TO cheat them also III
its business. The performance of that public
duty We have 10 reason to regret; II innocent
shareholders have been robbed by lying re-
ports and led TO hold when they should have
sold, or to buy when they shonld have held
aloOf it has not been by our cOnnivancc.
Bat the company thinks that it has come to
grief because somebody has assailcd it. On
the contrary, its disasters are due, first, to It's
own reckless management, and second, to the
insolencp with which it has treated public re-
quests fol information.
1t may az well he understood at once that
stockholders are tired of being treated as il
they had no rights which directors are bound
to respect. For years ii has been the fashion
10 treat the public as an inpcriinCnt and in
termeddling creature whenever IT asked in
formation. Reports have been COOKED" with
inpudent unveracity. If anybody took the
trouble to prove that the reports were false,
he was denounced o. "wrecbern and threat
cncd with vengeance. Courteous application
for facts has been lcbuled Even in stock
holders annual meetings questions have been
treated as a species Of high treason. For n
long time this sort of thing seemed to answer
very well. Stockholders were patient as oxen.
The public, not caring to purchase, grew more
Indifferent Confidence was slowly but quietly
Withdrawn from the official statements Of man
ayers, but thcy discovered the fact TOO late
They should have known that in times of
financial pressure many stockholders would be
compelled, month after month, to drop even
The best stocks, and that il would then be alb
soiutcly necessary to have public ready to
purchase. n.auagemcn. bOih mpudcnt. and
dishonest di5glsted tie public and alarmed
the stakeholder. Sales began, but real pur
chasers were missing, Inquiries by stock
holders bccar clamOrOus, and were answered
with new feals of Ingenious bookkeeping or
shameless mcndacity. Finally general diStrust
prevails, and the investors pour out their
stock by the cdrt-load
This dis.rlst will not disappear until an en-
tircly new system Of management has been Sc
cured for corporations. New men must be
found whose names are not tainted by years
of coucealmrnt when affairs were being mis-
managed. Officials must be taught that in the
interest Of stockholders, il is their inst duly TO
give full information III answer to every hon
est inquiry whether from stakeholder who
may wish to protect himself by selling or from
any individual outside of tle company who
may become absolutely needed as a buyer
Strict accurate, and perfectly clear reports
must be demanded by stockholders, and if
necessary compelled by law. Above all. men
who assume a. directors important trusts in
the management Of corporations must be
taught that they are bound to give personal
attention to that management and 10 the pro-
lection of stockholders and the public and
will be held to strict responsibility if through
their failure and behind the shadow of their
names innocent persons are dcfIaudcd.
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NORE MISSING PEOPLE
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