Miscellaneous Legislative Provisions. 407 
When the tendencies of organization are oligarchic, rather than 
monarchic, a corresponding set of evils are exhibited. Manip¬ 
ulations of the stock market take place, when a bare majority 
of stock gives control, in order to bring about such a consoli¬ 
dation of shares in a few hands. And when control is obtained, 
the voting majority can in innumerable ways take from the 
treasury of the whole to fill the pockets of a part . * 1 
The greatest importance, however, still attaches to the re¬ 
sponsibility imposed upon the individual stockholder. Formerly 
the entire private fortune of each shareholder was liable for any 
debt of the company. This was supposed to give the greatest 
possible security for prudent management and ultimate solvency. 
Gilbart pointed out that banks organized on the joint-stock 
principle, with unlimited liability, were less subject than others 
to runs. “Everybody knows that all the partners are liable for the 
debts of the bank to the full extent of their property. ” 2 But as the 
history of joint-stock companies in England has shown, under 
the indirect working of a regulation thus designed to increase 
the security of such organizations, this security was, in fact, 
very much decreased. Men of means and financial ability found 
it too much of a risk to place their entire fortunes in jeopardy 
Aktien-Gesellschaft soil automatisch arbeiten, und, wo es das nicht kann, 
da ist die Form der Aktien-Gesellschaft, wenn auch rechtlich zulassig, 
immer eine wirthschaftliche Luge und wir sollen uns bestreben, auf dem 
Wege der Gesetzgebung und der wissenschaftlichen Propaganda dahin 
zu arbeiten, dass es keine andere Aktien-Gesellschaft gabe als eine 
solche, die automcitisch zu arbeiten im Stande ist” p. 126. Cf. Schaffie 
“Tiibinger Zeitschriffc,” 1869, p. 283. 
1 The distribution of voting power in the Bank of France will be re¬ 
membered. In the first and second “Bank of the United States,” the 
following scale was applied. 
For every one or two shares — 1 vote. 
For every additional two shares up to 10 — 1 vote. 
For every additional four shares from 10 to 30 — 1 vote. 
For every additional six shares from 30 to 60 — 1 vote. 
For every additional eight shares from 60 to 100 — 1 vote. 
For every additional teu shares from 100 up — 1 vote. 
No person, copartnership or body politic to have more than 30 votes, 
First charter I., sec. 7, second charter I., sec. 11. 
2 “Hist. Prin. and Practice of Banking,” 2 vols., London and N. Y., 1892. 
vol. I, ch. VI, p. 118. 
