The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1885-07-22
For The RECORD.
CuI BoNI.
"For ways that are dark,
And tricks That are vain,
Tho Haat no f,htnao io ,1ao,,'

"For ways that are dark,
And tricks that are vain
The Heather Chinee is peculiar"
Last Spring the Hunterdon County
Mutual Fire Insurance Company resolved
to retire from business and to reinsure its
risks in any first-class stock company that
would do it for the least amount Of money.
Some New York company was finally So
lected, which agreed to carry the risks to
their termination, upon the same condi-
tions as the retiring company, for $470.
This left surplus of about $4,000 in the
treasury of the old company to be di
vided. = 1865
NOW COMES THE TUG OF WAR
! The policy holders were called together
to devise some plan for dividing this sur
plas. After stormy session, it was
agreed by large majority, to divide the
money among the policy holders, proper
tionate to the amount each had insured.
However, the minority, small in size but
tremendous in volume of lung power, was
not satisfied, but continued to prance and
amble about town among the women and
children, breathing fierce denunciation of
the plan adopted for the division, until
an incipient panic resulted. The policy
holders were quickly recalled to undo
their unrighteous work, but after patient
ly enduring the fervid, fiery, flimzy ar
guments of the unsatisfed, and weeping
over their proffered designations, they
calmly and deliberately stuck to their
original plan, and in order that there
might be no mistake, committee that
had been previously appointed, was in
structed to sell the securities of the COM
pany and divide The proceeds among the
policy holders in the manner agreed upon.
Had these instructions been followed by
the committee, in all probability, the
money instead of being prospectively
spent in fraud by lawsuits, would be
nesting in the warm pockets of the right
full owners, and the company numbered
with the past. The committee instead OF
following the instructions of the policy
holders, call meeting of the directors
and incubated new and different course
of procedure. A one-sided friendly suit
is TO be brought in the Court of Chancery.
Why friendly, why not an anfriendly one
if there must be suit ? In q friendly suit
there is but one side, one party and all
the cost, while in an anfriendly one
there are two sides, two parties and a
possibility of no cost. IL is gerry stupid
thing for a man to sue himself and pay his
0aon cost,
7 But suppose the minority after wait
ing SO long for some one to sue, became
discouraged and so sued themselves, real
izing as they must, that no policy holder
has sufficient interest in the concern to
warrant his going to law; but suit must
be brought to gain time, keep up salaries,
add expenses and make costs.
Some of the Directors claim that the
suit is brought in order to protect them
selves against being mulched in personal
damages for doing an illegal act. Let us
examine this plea. Can Director of a
legalized corporation be held personally
liable for carrying out in good faith, his
instructions of the stock holders thereof,
legally expressed, even though such in
structions may be detrimental to the in
terests of somea They cannot be SO held;
but the remedy for any stock holder who
may feel himself aggrieved at the action
of the majority, is by injunction, restrain
ing the Directors from acting until the
question in dispute is settled by the
courts; but no action can be brought
against any one II it be delayed until the
corporation is disbanded and its affairs
wound up.
Why then is not the money divided in
accordance with the instructions of the
company The securities are easily dis
posed of; in two weeks time the whole
business could be finished and the COM
pany disband; and during this time if
any one felt disposed, an injunction could
be served on the Directors, and the policy
holders could readily understand the rea-
son of delay; but inasmuch therefore, as
you cannot see through the mazes of
these proceedings, nevertheless if all in
terested parties will nicely adjust their
several glasses and in harm onious concert
bring their face to bear upon the wood
pile, each may readily discern for himself
the ancient Sambo furtively skulking
therein. ONE OF THE LAMBS.