Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1880-12-22
eureka Dailp 5entiisel.
JOINT sTocK COMPANIES.

There are few public enterprises that
are carried through to a successful issue,
says the Helena tMontana) Independent,
without the aid of joint stock companies.
They are usually essential factors in the
construction of railroads, rst-class hotels
and other enterprises Of a public nature.
Such companies have many features to
recommend them, the chief of which is
the exemption of the members from all
individual responsibility beyond the
stock subscribed. Then the aggregate
influence Of the membership of such a
company is itself Of great value in secur-
ing for the enterprise popularity with the
general public. Many an enterprise
would be a grand success in the hands Of
a company that would fail as an individ-
ual undertaking, for the simple reason
that in one case it is backed by influences
that insure success, while in the other
such influences are wanting. To some
extent a prejudice has been excited
against such companies for the reason
that often a few individuals obtain a ma
iority Of the stock, and in some cases
their control has proved a detriment to
the minority Of the stockholders. This
has been especially the case in large min
ing enterprises. The controllers of such
enterprises have it largely in their power
to defraud the remainder Of the stock
holders. They can declare dividends or
they can so work the mine as to run it IN
debt and render assessments necessary.
In fact, and in law. the possession OF a
majority of shares in a joint stock COM
pany gives no advantage beyond control
ling the policy Of the company. Those
who control are amenable to the stock
holders for their acts. They cannot per-
petrate a fraud upon their rights. They
must use the property to the best adj
vantage. The only difficulty in regard
to mining companies, is that those who
control such corporations have greater
facilities for fraud. They may incur
large expenses for development. They
may run on poor ore and conceal the rich,
and in many other ways prevent the
mine from declaring dividends. True,
the minority shareholders can obtain re-
dress in all such cases, if the fraud can
ha .AvnocaI k,f &c M Hax,o ao,J - e,aI
enterprises detection is often difficult.
But in companies of a different character
there are no such objections, and in the
East such stocks are a f~avorite invest
ment with small as well as large capital
lists. The railroads controlled by Van
derbilt almost Invariably paid large divi-
dends to the stockholders. There is no
possible room for fraud in the great ma
iority Of such companies, as the law re-
quires that their books should always be
open to inspection, and otherwise sub
jects their management to the strictest
accountability. When a company owns
a theater, hotel, or other public building,
having a fixed rental value, there is no
opportunity, even if desired, to take ad-
vantage Of any shareholder. The law
requires that those controlling the prop
erty shall rent and otherwise manage it
to the best advantage, and every share
must receive its proportionate dividend.
For this reason, doubtless, such enter
prises have been a popular investment,
and every city has public buildings
erected by such companies. The fact
that there is rarely, if ever. any trouble
among ths stockholders of such compan-
les proves such investments as a rule, to
be perfectly satisfactory.