The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1891-07-16
q Dangerous Folly.

Stanton vinGicator, July 10.
1t speaks well for the era OF Development in
Virginia that in the years OF it's existence, to
this date, and though more than two hundred
corporate enterprises have taken the field. only
three have been attacked in the courts by the
stockholders through dissatisfaction at their
management These three are located in Page,
Rockingham and Orange cou-ties, and we pc
lieve that even in these three events may prove
that it would have been far better had the pro
ceedings been omitted 1t is not, however. OF
them wessvisll TO speak, but OF the general rule
ana the general danger-for it is impossible to
attack one enterprise OF the sort in virginia
without injury, mors or less direct, to all 1t is
to Virginia and Virginia enterprises that the at
tention OF the world is now directed, and not to
simple localities in the State whose very names
people abroad are ignorant of.
We can easily understand, for we have seen
much of these enterprises, how stockholdef
may become dscontented. There are many
things that may be the cause OF discomfort lie
may have overloaded himself too heavily to pay
his assessments: he may have drawn lot that
is unsatisfactory and not saleable, and find that
at present he can neither sell stock nor lot. He
subscribed thinking either would be like a bank
note, excbangabie for value or u premium at
pleasure He finds that neither can be done well.
Though he knows that he hasn't finished paying
the assessments on his stock and that there are
hundreds Of stockholders like himself, he mag
ines that there must be an immense amount OF
money somewhere in the company's treasures
that the promoters have gotten it, that the di-
rectors have it, that somebody has it out OF
whom 1t can be made, and he proceeds to saw
off the limb ON which he is sitting by attacking
the company.
There can be no mere dangerous folly. What
is there to be 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 bay. The company is unable to make good
it's pledges to manufactures that have been Sc
cured 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 lawsuits 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
enterprise for their value, and worth nothing II
the pugnacious stakeholder Kills the enterprise
by creating panic about it. suppose he sue
ceeded in throwing the whole thing into bank
ruptey 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 advanced to industries? How get
back for division the thousands paid out for the
improvements on the property? What possible
good anywhere or anyhow result from the
discontinued OF hard-pressed stockholders des-
troying 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 on that stock.
hut there may nave been erookedness? Then
you are precisely the wrong track. Let the
crookedness, il there be any, be quietly sifted
out, and the crooked man--not the whole enter
prise-be indicted. All other corporations do
that, why not land companies? Be cuisines like
you are in business. Don't destroy the public
conftdence-which is the breath OF iife-in a mil
lion dollar enterprise and bring everything to
wreck because your own inability to meet y our
assessments has made you sore or suspicious:
because you have been disappointed In speedily
realizing fortune on q five hundred dollar III
yestmenJ or because the management of your
company don't suit you. You do harm to your
self. 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 dollar A
stakeholder who Jumps on a yearold new town
because it hasn't already paid him 500 per cent.
on his money or because he still has to pay his
assessments on his stock shows as much wisdom
as he who bludgeons yearling blooded colt to
death because it can't pull full load. or because
he has to feed it. Development enterprises
should be managed just like any other business
and the stakeholder who runs into court and
into the newspapers, or takes any step different
from, or ss private as. that he would take as a
stockholder in q hank, or other corporation,
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