The weekly miner. [volume] (Butte, Mont.) 1878-1881, 1881-12-13
PUBLIC

The Comptroller of Currency Sin his annu-
al report, says the record Of the failure of the
Merchants Bank of Newark has called the
attention of the public and depositors to the
duties of bank directors, and of the examiners
of national banks. The duties unde the ma
tlonal banking law are plainly defined OF d.
rectors who ar. responsible for Tie safety OF
funds committe d to their care. 1t is a ques-
tion, which is unfortunately not well defned,
to what extent directors Of corporations
should be held to accountability Tor losses
arising from neglect. In the case of banks it
is not only the interest Of s'eckholders, who
are not in a position to acquaint themselves
with the details of the business, but of depos-
itors and innocent parties, whose financial
well-being is at stake, that is to be jealousy
guarded. The right to supe: wise and examine
inlo tie business of corporations is properly
an Inherent function of government from
whom they derive the;l life. For this very
purpose the general government employs
bank examiners. The failure Of local gov
ernments to exercise this Hholssome and un-
questioned power for the protection of the
HdSS Cl lliS pSbIit . iAdlSct ilCChlilS III
~rection. The action Of the Comptroller of
Currency in calli"g attention to this subject
is timely, and should elicit careful CUnSidcra-
ton from the press and people.
All corporations stand in a sort ef tiduclary
relation to ia" general public. Mismanaee-
ment ST ilei. atiAils is followed By public
distress. TIE failure of 4 bank disarranges
the business Of an entire community, and i'll
directly entails loss upon men who are nell
tt.er stockholders nor deposiiors. The insoi-
vrucy OF an insurance company places III
jeopardy vast property interests. The water
ing OF railroad stock and the diversion of the
legitimate earnings of d railway are in effect
public r0bberies. The revenue of'corpota-
lions have many points of resemblance to
those derived from a public tax. Private cap
tai may originate enterprises !; but in every
case The original investment and interest
thereon will be- supplied by contributions
from The business and nect ssitles of tue pub
lie. Freights, insurance.. teIegraphin', etc.
are borne mainly by the business interests
but items of this kind are figured in as a part
vi Tic lFCllllilttt ENi'CIbSES - bltSi4lSoES hAN IL
the end become distributed tblo noul the
mss of tie community. 5 that there is q
Constant ana authoritative public sentimenti i'll
the direction Of corporate regulation. Upon
the same line of reasoning every loss through
corporate acknowledgements or r~ascaliIy dis
tributes itself throughout an entire comlnuni-
tv. Money los. through Wild cat mining
schemes entails q loss upon reputable bust
ness men and honest dealers. Legitimate en-
trrprises and meritorious mines suffer where
the LAW Il the public sentiment permits
swindliug operations.
So wall established ls.ttis doctrine that ali
c vlilzeG communities are provided with laws
for the regulation Of CORPORATIONS. It is a
general + uie Of law that stockholders are
only liable to the extent Of their stock yet
in many places the directors have imp sed on
them a greater responsibility and a criminal
liability whsre they Impose upon the public
by allowing without notice . continuance 1T
the operations OF 4 rotten concern. The ~
p~oration law Of this Territory IS not up to
the enlightened sentiment OF other localities
upon ibis SUBJECT; yet even with lis the law
compels all co1pOIa!ions to make out and
publish annually q statement Of the capital
stock paid il, the existing debts, and the
business Of the corporation his law ap-
pears to have ben a dead I,tttI with the
corporations doing business II The Territory
hitherto, but the time will surely cCme when
the trustees of such corporations will find
themselves both civiliy and criminajjy liable,
aud the pubhc viii be more sensitive to the
neglect Of fduciary trusts committed to the
hands Of corporation trustees. The most
Insignificant individual las a right to he full
ly informed concerning the aitAiis Of a cor
poration III whose stock he may at some time
have occasion to invest. 1t is important hat
attention shouId be called to these subjects,
and tina! correct ideas sNnUl3 prevail in these |
matters.