Page:The Green Bag (1889–1914), Volume 15.pdf/273

 236

son's plans gradually took shape. He pro ceeded to convert what little property he pos sessed into cash; from this he realized aboui $15,000, with which to make his new start in life. BLACKMAIL BY INSPECTION. Several months after the election Hamilton Anderson removed to St. Louis. He took with him letters of introduction, which en abled him to secure membership in several of the clubs, and established at least a passing acquaintance with many men of substance and standing in the Missouri metropolis. His intelligence and companionable qualities soon began to make him popular. Moreover, he let it leak out that he was seeking local in vestments, and this gave him the standing which always comes to the man who has available assets. He soon picked up five shares of the stock of the Central Banking and Trust Company for $1500. This cor poration did a large business; it had large deposits and handled many important trusts; its loans and discounts aggregated large sums, and its stock paid handsome dividends. Anderson's investment was therefore a nat ural one. He promptly notified the secretary of the company of his purchase and had his name enrolled as one of the stockholders in the corporation. A few days thereafter the secretary re ceived a letter from Anderson demanding as a stockholder the right to inspect and exam ine the books of the corporation. To this Mr. Jacks, the secretary, replied that he was willing to accord Mr. Anderson any informa tion which a small stockholder could reason ably ask, and enclosing a copy of the last statement of the assets and liabilities of the corporation, he requested Mr. Anderson to indicate his purposes in making the request and thé specific information he desired. An derson promptly replied, stating that it was impossible for him to indicate exactly what information he desired; that he claimed the

rights of a stockholder under section 932 of the Missouri code to an unlimited inspection of the corporate books. He added that he had employed an expert to assist him in mak ing his examination, and that they would con duct their search at such time and in such manner as to inconvenience the corporation as little as possible in the conduct of its busi ness. Mr. Jacks was thunderstruck by the impudence of this demand. He, however, replied courteously, acknowledging Ander son's letter, and asking whether he was to understand that the request was limited to an examination of the corporate records or whether Anderson contended that he had; right to inspect the books containing the record of the general business transactions of the company. Anderson replied that un der the law the corporation was charged with the duty of making a record of all its transac tions, and that he desired an inspection of the books containing these records, as well as of the stock and minute books of the corpora tion; in conclusion Anderson requested the secretary to indicate categorically whether the examination would be permitted, and if so, that a time be named at which he could begin his work. The board of directors held a meeting a few days after the receipt of this last letter and the entire correspondence was laid be fore them. It was unanimously resolved that the request be denied, and the next day the secretary wrote the following letter: Hamilton Anderson, Esq., Alpha Club. St. Louis, Mo. Dear Sir:—Referring to your favor of re cent date requesting an unlimited inspection and examination of the corporate and busi ness records of this corporation, I have to say that the management has nothing to be ashamed of in the conduct of the institution and that I am willing to furnish any informa tion which a stockholder may reasonably ask. But, as you well know, the business of a