Omaha daily bee., 1902-11-21

plaintiff IL, and e. J. Kettering, who
bought his stock, as to the settlement OF
an account owing by Erlenborn to Har-
sreaves Brothers.
The case involves a construction OF the
local application OF the national bankrupt
law. When Erlenborn sold out to Ketter-
ing he arrange for the payment to Har-
greaves Of IS per cent Of what he owed
that firm. and the other creditors. who got
nothing. claimed this was a preference.
This contention is upheld by the supreme
court.
Kianki Gets Reversal.
The Greater America exposition at
Omaha is held responsible for damages to
little Ernest Kianki. who, the day after a
fireworks exhibition in the exposition
grounds. picked up in the street near his
home two blocks away an unexploded
bomb, which promptly went of and tore
off his left hand The directors, Messrs.
Hayden, Her and Kitchen, who we're
jointly sued, are relieved from RESPONSE
billty. The court says that It is not I'M
lawful for a man to explode hreworks on
his own premises II he does It carefully
and in a suitable manner. but II they are
exploded at such an angle as TO be pro-
PEELED outside and remain there he is liable.
Exploding fireworks is a dangerous thing
to do, and It is negligence il any Of them
are so constructed that they do not go of.
Kianki wanted $40. 900. but the trial court
said he couldn't recover.
II you kindle a Are on your land you
are not bound, says the supreme court, to
anticipate and guard against a whirlwind
or an extraordinarily high wind II you
have taken such precautions as a prudent
man would to conhne the fire to his
premises and watched over ii. The case
comes from Cherry county. where the dis
trict court held Ludwig Book liable for
damages to N. J. Groms.
The Nebraska supreme court, in the
case Of the German Mutual Insurance
company against Palmer, politely but firmly
overrules the federal supreme court in a
matter Of insurance law. The recent de-
cision of the Northern Assurance Company
against Grandview Building Association
was cited in support of the insur-
ance c%ompany's contention that an agent
could not waive provisions of forfeiture.
The supreme court says that while it
entertains the highest respect for the fed
eral tribunal it's adjudications on general
questions of law are not binding on this
court and do not require it to overturn
NV W. ahu iOub SSldDll5u6u course
Of decisions therein. The federal court
had held that a notice to the agent was
not a notice to the company unless the
agent had power to waive forfeiture and
the fact that an adjuster had passed on
the loss did not constitute a waiver, which
could not operate unless special authority
to make it is established.
Publicity in Corporate Affairs.
c. A. Robbins was the speaker at uni
versity convocation this morning. His sub
ject was publicity in Corporation AZ
fairs He summarized existing conditions
as follows:
l. The corporation is the creature Of posi-
tive legislation. 1t has no inherent rights,
not even to exist. 1t follows that the state
may refuse to create corporations or may
regulations.
2. The recent development of great trans
portation and industrial corpora tons, while
TO some extent the outgrowth Of new condi-
lions, has been made possible by 'liberaIt
Incorporation laws. The transferabiIity of
the shares of the association without change
In its Identity and the limited liability OF
members are the great incentives to corpor-
ate existence. The modern trust is made
possible by. positive legislation.
3. Probably the greatest evil of modern
corporation methods is decentralization.
poration is said to be over-capitalized sf75,-
100000. The Northern Securities company
proposed to add to the capitalization of the
bonds the sum of $500. 900, 900. O~ver-capitaI-
ization Injuries investors who are induced
by fictitious dividends and other methods
10 pay more than value received for the
stocks and who are Squeezed OUT on
liquidation. Much of the present threat of
a money panic is due to loans by New York
banks. DISQUALIFICATION makes necessary
the extortion of undue profits from the
people to pay dividends on watered stock.
T. Another great evil is unjust discrimina-
ton in charges, rates and prices with a
tendency to create monopoly. The Stand
ard OIL company and the beef trust have
obtained control of great commodities by
unjust determinations and secret rebates.
1t is charged that the West Lincoln pack.
The normal tendency of Observation-Disclosures
and discrimination Is the poorest possible
service at the greatest possible price.
Best Remedy Proposed.
5. Another great evil is the responsibility
OF corporate officers to both stockholders
fnanciers have by manipulating dividends
and properties and effecting thereby the
prices of stocks, buying when low and sell
ing .When nigh. systematically robbed their
stockholders. The determinations practiced
against some communities In favor OF
others are frequently due to the local in
terest OF corporation officers.
b. Another great evil is the corruption Of
legislatures and public officers to perpetu-
ate these abuses. The state may destroy
the corporations or own them or regulate
them; Most people believe the last prac-
IICaoie; Inc pest single remedy yet pro-
In corporate affairs. Over-capitalization,
discrimination in charges and misconduct
OF corporate officers could not be successful
under the light of publicity. and the in
dictments for corrupting public officers
would be gone.
Articles OF Incorporation have been filed
by the Federal Cattle company of Omaha.
the incorporators OF which are c. ]. Ander-
son. Bernard John Hoffacker. S. N. Mosee
Bernard Joseph Hoffacker and C. w. Wat
ties. The authorized capital stock is 5000
900.
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