Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1891-07-10
FRIDAY MORNING. JULY 10. 1891.
4 DANGEROUS FOLLY.

4 DANGEROUS FOLLY.
1t speaks well for the era of development
in Virginia, that in the two years of its ex-
istence, to this date, and though more than
two hundred corporate enterprises have
taken the field, only three have been attack
ed in the courts by thestockholders through
dissatisfaction at their management. These
three are located in Page, Rockingham and
Orange counties, and we believe that even
in these three, events may prove that 1t
would have been far better had the proceed
ing been omitted. 1t is not, however, of
them we wish to speak, but of the general
rule and the general danger-for it is i'm
possible to attack one enterprise of the sort
in Virginia without injury, more OF less
direct, to all. 1t is to Virginia and Vir-
ginia enterprises that the attention of the
world is owdirected, and not to simple To-
calities iii the State whose very names
people abroad are ignorant of.
We can easily understand, for we have
seen much of these enterprises, how a
stakeholder may become disconnected.
There are many things that may be the
cause of discomfort. He may have over
loaded himself too heavily to pay his as
sessments; he may have drawn a lot that
is unsatisfactory and not saleable, and
find that at present he can neither sell
stock nor lot He subscribed thinking
either would lie like a bank note, eXchang
able for value Oh a premium at pleasure.
He finds that neither can lie done well.
Though he knows that he hasn't finished
paying the assessments on his own stock
and that there are hundreds of stockholders
like himself, he imagines that there must
be an immense amount of money some
where in the company S treasures the
promoters have gotten it, that the direc
tors have it, that somebody has it out OF
whom it can lie made. and he proceeds to
saw off the limb on which he is sitting by
attacking the company.
There can be no more dangerous folly.
What is there to he gained by it except the
paralysis and destruction of the company?
When row is raised the other stockholders
who haven't paid all their assessments
follow suit and refuse to pay. The COM
pany is unable to make good its pledges to
manufactures that have been secured to
come to their town. The manufacturers
are unable to pay for the machinery they
have been induced to order for the new
factories there. The whole thing comes to
a stand. And what has been gained? For
if the promoters could be skinned by law
suits what would the skin come to? Who
knows of rich promoter in Virginia, rich
except in stock and bonds and land, all
three dependent on the success Of the ell
terprise for their Value, al worth nothing
if the pugnacious stakeholder kills the ell
terprise by creating panic about it. Sup
pose he succeeded in throwing the whole
thing into bankruptcy how much would
there be to divide among the stockholders?
How much would the land bring per acre
if thrown back from town sites into farms!
How could you recover the thousands adj
vanced to industries How get back for
division the thousands paid out for the i'm
proyements on the property? What possible
good anywhere or anyhow can result from
discontinued OF hard-pressed stockholders
destroying an enterprise, the debris of
which will yield them nothing? They would
not thereby escape the full payment of their
own stock. The creditors of the company
would follow them up to the last payment
due Oh that stock.
But there may have been crookedness :?
Let the crookodness, if there be any, lie
quietly sifted out and the crooked man-not
the whole enterprise-be indicted. All 9th
Ell corporations do that. why not land COM
panies? Be business like; you are in bus
mess. DON'T destroy the public con idel ce
which is the breath of its lfe-in a Mil
lion Dollar enterprise an | b ing everything
to wreck bee. use your own inability to
meet your assessments has made you sore
OF suspicious; because you have been dslp-
pointed IN speedily realizing a fortune on
five hundred dollar Investment, Oh because
the management of your company don't
suit you. You do harm to yourself. to
your enterprise, and, what is far wider, to all
the enterprises in Virginia which will suf-
fer in sympathy. and after all not better
your financial condition to the extent of a
dollar. A stakeholder who jumps on Il
year-Old new town because it hash t
already paid him 500 per cent on his money
OF because he still has to pay his assess
ments Oh his stock, shows as much wisdom
as he who bludgeons a yearling blo0led colt
to death because it can It pull a full load, OF
because he has to feed it, Development en-
terprises should he managed just like any
other business, and the stockholder who
rusheS into court and into the newspa oers.
OF takes any step different from, Oh as pri-
vate as, that he would take as stockholder
in a bank Oh other corporation, commits a
costly mistake. for which not only he, but
every stakeholder in a Virginia enterprise
has to pay some of the cost.
'The VINDICATOR holds that the Republi-
can Senate will next winter pass the free
coinage bill. I'VE are curious to know its
reasons for this conviction Let us look into
the matter. When Congress next meets, the
two parties will be stripping for the fight of
1892. The Democrats will be divided upon
one questionable silver question. If they
90 N Catf ne 4l,o,,,