Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-07-18
nanyerous FolIy,

from tho Stauuton Vindicator OF July loth'l
II speaks we'll for the era of develop:
ment in Virginia that in tho two years OF
its existence, TO this date, and though
more than two hundred corporate enter
prises have taken the field, only three
have been attacked in the courts by the
stockholders through dissatisfaction at
their management. These three are To-
Gated in Page. Rockingham, and Orange
counties, and we believe that even IN
these three events may prove that IT would
have been far better had the proceeding
been omitted. 1t is not, however, OF them
we wish to speak. but of the general rule
and the general danger-ior IL - lnposs,-
| bic TO attack one enterprise of the sort IN
Virginia without injury. more or less d.
rect, TO all. II is to Virginia and virginia
enterprises that the attention OF the world
| il now directed. and not TO simple local.
| ties in the State, whose very names people
abroad are ignorant Of
We can easily understand tor we nave
seen much Of these enterprlses) how o
stockholder may become discontented.
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 lot that
il unsatisfactory and not salable and ma
that at present he can neither sell stock nor
lot. He subscribed, thinking either would
be like a k-note, exchangeable Tor value
or a premium at pleasure. lie hnds that
! neither can be done well. Though no
knows that he hasn't diminished paying tho
asses sments on his own stock and tnat
there are hundreds of stockhoiders ike
himself, he imagines that there must be an
immense amount of money somewhere IN
the compacy's treasures; that the pro-
moters have gotten il that the directors
have it that somebody has it out ct whom
il can be made. and ne proceeds to saw on
the limb on which he Is sitting by attack
inc the company. ~
There can be no more dangerous folly.
What is there to be egained by 1t except the
paralysis and destruction OF the company
| When a row is raised the other stock
| holders who haven't paid all their asess-
ments follow suit and refuse TO pay. ms
company il unable to make good its
| pledges TO manufactures that have been
secured to come 10 their town. The manu-
facturers are unable 10 pay for the ma
| chinery they have been induced to oIder
| for the new factories thers. 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 a 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 if the pugnacious stockholder
kills the enterprise by creating panic
aboutit Suppose he succeeded IN throw.
| ing 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 advanced TO industries
How get back for division the thousands
paid out for the improvements on the
property? What possible good auywhers,
or ANYHOW con result from discontented
or hard-pressed stockholders destroying
an enterprise, the debris Of which Will
WELD them nothingp They would not
thereby escape the full payment OF their
own stock. 1.-The creditors OF the company
would follow them up to the last payment
due on that stock"
But there may have been c-ookedness
Then YOU are on precisely the wrong track.
Let the crookedness, ii there be any, be
quietly sifted out and the crooked man.
not the whole enterprise--be indicted. All
other corporations do that, why not land
companies? BE business-like you are IN
business. Don't destroy the public conn
dence-which is the breath OF its life-in
million-dollar enterprise and bring every
thing to wreck because your own IN
ability to meet your assessments hal
made you sore or suspicious; because yot
have been disappointed IN speedilyreaiizinl
fortune on fve-hundred-dollar invest
ment, or because the management OF you
company don't suit Won. You do harm tt
yourself, toyour enterprise, and what IS fal
wider, to all the enterprises In Virginia
which will suffer in sympathy. and after al
not better your financial condition to tn
extent of q dollar. A stockholder VIII
jumps on year-old pew town because !
hasn't already paid him 800 per cent. ol
his money. or because he still has to pa.
his assessments on his stock, shows q
much wisdom as be who bludgeons yea!
ling blooded colt TO death because 1t can
pull q full load, or because he has TO fee
il. Development enterprises should D
managed just like any other business. an
/ the stockholder who rushed into cous
aud into tho newspapers. or takes an
step different from or not as private
that he would take a. stockholdsr IN
bank or other corporation, commits
costly mistake. for which not only no bu
every stockholder in Virginia euferprsa
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