The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-07-01
STOCKHOLDERS RIGHT
TO LOOK AT BOOKS
How the Privilege Reacts I'm.
favOrably, or May Benefit
Owners.

Since the organization of the larger
combinations, and with the energetic
hotation of their enormous share-cap-
italization, there have been jncubated
certain schemes by which stock bro
kers, in the excitement Of subsequent
speculation, have shorn the lambs, and
unprincipled persons nave hlched the
corporations, Whether the "crime'
be rigging" the stock market under
the mantle of Napoleon of Finance,
or of ferreting out the methods of
corporations under the protection Of
the law for financial exploitation; both
practices are reprehensible, says the
Mining World. The g man higher up
may be aided in his checkered career
by "inhuentiaI friends and the "man
at the BOTTOM the hireling, may some
times escape with small fine and
Judge g reprimand; but what redress is
there for the patient, conhding stock
holder2 a veteran banker once said, in
answer to a client query about her
investment in a mining stock, which,
though the property had merit, was
being used as target by unscrupulous
spectators: "Friend, for a while for
get that you own this stock. Your in
vestment has been made on the intrinsic
value of the property, not on the posi-
bic fluctuations in an excited stock mar,
ket, -
1t takes courage to hold a stock which
has become the football Of demoral-
lied market; but it requires tact and
good business sense on the part Of the
directors Of the "marked' - corporation
when they try to stem the tide Of un-
earned criticism. Too often, we fear,
the trouble is precipitated by people
who abuse the law which provides that
.hA hN@ @ly ILL - Il !
ing business IN another State shall be
open 10 the inspection Of stockholders
Smetimes the law stipulates that re-
fusal TO grant this permission to share
holders Will result In penalty of, say,
$3.50 against the corporation and $3.50
against the officer making the denial
Under such law comparatively few
corporations care 10 file their refusal
IN court, perhaps because they know
the resulting litigation will mean the
opening of their books to the public.
Several cases have lately come to
our attention in which it has been
proved at court that the complainant,
small stockholder, had taken undue
advantage Of the law by inspecting the
books of the defendant corporation for
the purpose of making extracts of GER
tain data and compiling list of the
shareholders for private gain. Such in,
formation, we learn also, is often sold
to competitive firms who make capital
out Of it in different ways. A share
holder in possession of such data can
inaugurate harassing litigation for a
corporation, as has been shown by the
career of the Amalgamated Copper COM
pany, the United Copper company, the
Giroux Consolidated Mining company,
the Calumet. & Hecla Mining company,
and others.
When person acquires shares in a
mine for the purpose of collecting evil
dence from the company's books, either
! for use IN speculation TO the detriment
of other stockholders, or endeavors
thereby to handicap the policy of hon
est management with q view TO attain
/ ing greater private gain, he should be
lined up by the iron hand of JUS
| tlce. To say the least, such a person is
an undesirable stockholder, eligible
for membership in the ''Ananias club. -
On the other hand, we do not believe
1t would be polite for any large cor
poratiou TO deny stockholders the in.
formation which would give them a
better understanding of the value of
their investment. Nor does il seem
| ]udiclous for corporations that publish
periodical reports TO so group their
earnings and expenditures as to REQUIRE
the services of trained mathematics
to explain them. There may be an Off.
clal reason for complex bookkeeping in
company report-to avoid pertinent
questions from harehoIders-but a
board of directors with the right moral
courage should not hesitate TO make an
intelligible accounting and face adverse
criticism, 1t is not alone the stock.
holder s privilege to learn the truth. but
1T is the duty of the management of the
company which has taken his money TO
make IN equitable return and show him
fair play.