The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-08
H,B,BARUCH HASPLAN
TO END PROXY EVILS
Tells Stock Exchange Partners
Committee Should Vote
Shares Held.
COULD ELECT DIRECTORS
Vast Amount Of Stock, He Says,
Could Thus Unite to Cor
.-- rect Abuses.

Or. Herman h Earuch OF the Stoci,
Exchange Arm OF Raruch Bros. presented
Q plan yesterday at the meeting Of the
Association OF Partners o. stock Ex-
change Firms designed to protect the
minority shareholder. who has little power
at stockholders meetings. and to remove
unjust criticism Of the exchange.
DR.. Baruch's plan liz for the formation
Of q proxy committee of three members
Of the association TO receive proxies from
ell stock Exchange firms on securities
held BY them aud then, In consultation
with the executive committee. to take
steps to secure representation on the
boards Of the various corporations should
the Joint ownership OF stocx warrant and
should the holders of n majority Of the
stock so desire.
DR.. Bsruch said: "There Is in the
hands Of Stock Exchange firms at every
stockholders meeting large number Of
ehares OF the active securities listed OH
the Stock Exchange. As you know. proxies
tor these securities are eagerly sought
b. those in control Of these various cor
porations. The Stock Exchange is fire.
cuently either Justly or unJustiy held re-
eponsibe for action taken by directors
Of various corporations should such action
result in loss to stockholders
To Correct Injustice.
"it is Undoubtedly true that the Stock
Exchange has been more In the public
eye. principally for the purpose Of criti-
cisri, during tho last year than ever be-
fore. Very little OF this criticism has
been just. would propose by Joint ac-
t!ou On your part 90 remove one source
~ criticism which is perhaps Just. Apathy
on 'he part of stockholders Is re-
spcnsible for large part OF corporate
errors. / would therefore propose the
following plan; That our association APP
point committee OF three to be known
as proxy committee. whose duties shall
be TO receive proxies from Stock EN-
change firms on securities held by them.
The signing OF these proxies by Exchange
members shall be entirely optional. as we
all know that sometimes the giving OF
such proxies would be- impractical.
Tho proxy committee shall have such
powers NJ your association and the cx-
ecutlvo COMMITTEE. shall deem best for
The interests OF the association.
The committee shall be at least em-
powered to list such proxies without dis
closing the Individual ownership. and then,
in consultation with the executive COM
mittee. take such action as seems advs-
Able as TO representation on the boards
of various corporations. In many in
stances it will seem desirable 10 have
IT.
even though no step toward dictatorship
be taken. There Is no corporation which
would be 50 dense to its own best in
forests as TO refuse any reasonable de-
Gand for information made by the holder
OF such lare. amount Of stock ~ We
Jointly would represent in almos. any
company.
COOld Correct Abuses.
''From time TO time abuses creep into
the management Of corporations which
any one OF our members may call TO the
attention OF the committee. and We would
at once have in hand a weapon for their
correction.
ut Is time for the members Of Stock
Exchange firms to take more active
interest in the condition OF the various
institutions in the securities Of which we
deal. 1t IL time for us 10 appear before
the community y serious minded BODY
of men who are seriously Interested in
the affairs Of their clients and uho are
willing to devote their time and attention
wholly to the business Of their clients"
II. A. Scheftel of J. $. Bache * CO
proposed a scheme 20 give the margin
Ing representative Of stock Exchange
houses on the drectorates OF corporations
IN which there are large Stock Exchange
firm holdings.
The board of governors pro tenn OF the
association viii act on the suggestions Of
DR.. Baruch. Mr.. Scheftel and other mem
bers and report at the meeting to be held
next week.