Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1891-07-15
dangerous Folly.

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 COURT by the stockholders through
dissatisfaction at their management. These
three are located in Page, Rockingham and
Orange countis, aud we believe that even
in these three events may prove that it
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 inn
possible to attack one enterprise of the sort
in Virginia without injury, more or less di-
rect, to all. 1t is to Virginia and Virginia
enterprises that the attention 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
stakeholder 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 lie 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 bank note, exchangable for value or
premium a. pleasure He finds that Meth
er can be done we'll. Though he knows
that he hasn't finished paying the assess
ments on his own stock and that there are
hundreds of stockholders like himself, he
imagines that there must be an immense
amount of money somewhere in the COM
pany's trcasures-that the promoters have
gotten it, that the directors have it, that
somebody has it out Of whom it can be
made, and he proceeds to saw off the limb
on which he is sitting by attacking the COM
pany.
There can be no more 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 fol-
low suit and refuse to pay. The company
is unable to make good its pledges to manu-
facturers that have been secured to come to
their town. The manufacturers are unable
to pay for the machinery they have been in
duced 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 pro-
moter 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 stakeholder
kills the enterprise by creating panic
about it. Suppose he succeeded in throw
ing the whole thing into bankruptcy how
much would be to divide among the stock
holders? How much would the land bring
per acre if thrown back from town sites into
farms? How could You recover the thou
sands advanced to industries? How get
back for division the thousands paid out for
the improvements on the property What
possible good anywhere or anyhow can re-
suit from disconnected or hard pressed stock
holders 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 on that stock.
But there may have been crookcdness
Then you are on precisely the same track.
Let the crookedness, if there be any, be
quietly sifted out and the crooked man-not
the whole enterprise-be indicted. All 9TH
er corporations do that, why not land COM
panies Be business like; you are in bust
ness. Don't destroy the public confidence
which is the breath of its life-in Mil
lion Dollar enterprise and bring everything
to wreck because your own inability to meet
assessments has made you sore or suspicious f;
because you have been disappointed in
speedily realizing a fortune on five hun
dred dollar investment, or because the man
agement 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 suffer in sympathy,
and after all not better your financial con-
dition to the extent of a dollar A stock
holder who jumps on year-old 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 budgeons a year
ling blooded colt to death because he has to
feed it. Development enterprises should be
managed just like any other business, and
the stakeholder who rushes into court and
into the newspapers, or takes any step differ
ent from, or as private as, that he would
take as stakeholder in bank or other cor
poration, commits costly mistake, for
which not only he, but every stakeholder
in Virginia enterprise has to pay some Of
the cost-SquatOn indicator.
The Sunday School Convention of the
NJ. E. Church, South, was held last week at
Woodstock. 1t adjourned Friday to meet
next year at MartinSburg.