New-York tribune., 1914-11-16
Is Determined to Make
Third Avenue Railroad
Pay a Dividend.
SAYS BATTLE WILL
BE WORTH ITS COST
Minority Stakeholder Declares
He Has Definite Plan and
Will Not Halt.

holders against the executive forces
of a mismanaged corporation is alway
expensive, but / have found II pay
ing proposition in the long rum" was
the statement made last night by Alon-
20 (. Cottier, who figured in the spir-
tied tilt with Frederick w. Whitridge,
president of the Third Avenue Bail
way, at the company's meeting.
Mr.. Cottier outlined to a Tribune
reporter his idea Of the duties and
proper attitude of minority stock
holders. Each. he declared. should con-
stitute himself a vigilance committee
of one 20 discover what was wrong and
to right il.
Stockholders, as a body; are inert,
said Mr.. COttier. 81 refer particularly
20 small stockholders. owners of 100
shares or less. Where faulty manage
ment exists. action on the part OF
the minority interests must be on the
initiative of one OF the larger stock.
holders. who first must be convinced
of the Justice of the procedure.
"The first step should be an appeal
by circular to the stockholders. Thu
at the outset a certain amount OF eN-
pense must be encountered. The cost
of circularizing in large corporation
would be at least 500, which must be
borne by the individual who starts the
ball rolling.
May Cost $1,000 TO $4,000.
"Of course. the first steps taken by
the minority shareholder are scotfed
at by the controlling interests. They
are usually considered unimportant.
AS matter Of fact, such action mere
lv serves 10 inform the shareholders
that somebody opposes the manage
ment and is going to do something
about it,
"Next. money must be spent for pub
icitv. which the majority interests like
about as we'll as the devil likes holy
water. Publicity in the newspapers
must be paid for in the form Of ad-
vertisements, as, unless material OF
public interest is involved, the papers
cannot be expected to use their news
columns to secure reforms in which
they or the people have no vital inter
est.
consequently, the reformer must do
some iudicious advertising, which
would entail an outlay Of at least $500
more. Therefore the individual must
be prepared to spend from $500 TO
81 900 of his own money in the begin
ming. He may get some Of IT back
from other stockholders, and he may
not.
IL spent $4,000 in my minority fight
against the policies Of the Lehigh Val
lev Railroad twelve years ago. But we
won out. and my 1000 shares are worth
much more than they would have been
had not the housecleaning taken place.
"Before starting the campaign the
stockholder must devote much study
10 the reports Of the corporation and
make comparisons with those Of other
concerns doing similar business.
There must be no chance OF come
hack. His ground must be firm.
"Many of the large stockholders OF
anv corporation are not fitted by train
ing to undertake such proc edings.
Therefore they must be convinced Of
the soundness of the policy advocated
bv the reformer But, whatever means
are adopted, publicity is what will do
the trick i'm the end.
VIII Obtain DIVIDENDS.
"We are going to force the Third
Avenue Railroad to pay dividends be
fore we get through. The earnings of
the system since II was thrown into
the hards Of a receiver have increased
go per cent, due largely 20 the increased
population along its lines. President
Whitridgc declared that his irst duty
is TO the bondholders, but, according to
nv views of corporation management,
the stockholders should be first IN the
minds of their executives.
"Mr. Whitridge has already aban-
doned his first line of fortliicauons as
a result Of the agitation begun. In his
report to the directors on January u,
1914. he announced that his policy was
not TO pay any dividends until the ne"
subwavs were in operation and the
effect on the earnings Of the Third Ave
nue. made, apparent. .,
rnisinformed as to the probable open
ING date of the subways, and that he
recedes from that extreme position is
shown in the annual report just issued.
In that he makes no mention OF has in
tention TO do nothing respecting divi-
dends until the subways are open.
"There are ! ZOO stockholders IN the
Third Avenue company. OF these about
400 arc small. Any action begun by
one of these, if properly carried out,
will benefit the others.
"Cranks having personal axes to
Grind can accomplish nothing. | have a
definite plan, which, l am sure, will ac-
comnlisb the desired result, but, of
course. / cannot afford TO lay my ..rds
On the table at this time. But there
win be no halt in the work, for we
must make secure what already has
been accomplished"