Major Buell Hampton arose, and addressing the chairman said: “Since I have acquired control of the stock of this Company, I have decided that Mr. Grady shall not be re-elected as a director. But in the first place I wish to ask of all stockholders present what their intentions are regarding the declaring of a dividend?”
With this he resumed his seat.
By every lineament on Grady’s face one could see that he was furious.
“I presume,” said the chairman, “that it would be proper to follow the suggestion of Mr. Grady, our general manager, and declare a dividend of seventy-two per cent on the capital stock.”
Major Buell Hampton, again addressing the chair, remarked that seventy-two per cent, was certainly a fat dividend. But for himself he had purchased a control of the Company’s stock for the purpose of introducing some innovations in its management, and in order that there might be no misunderstanding he felt it was now proper to present his views. If any of the directors were not in harmony, why, of course, it would be inadvisable for them to stand for re-election to a directorate over which he intended henceforth to exercise a close supervision.
“I now wish to ask the directors of the Company this question,” added the Major. “What about Boney Earnest’s dividend?”
He paused for a reply.
For a moment the stockholders and representatives of stockholders present seemed almost dumfounded. They turned to the manager, Mr. Grady, who answered the Major by saying he did not know that Boney Earnest, the dismissed blast furnace foreman, was a stockholder or had any investment in the concern—“it was all news to him,” he added with a weak attempt at levity.
Major Hampton had remained standing, and by silent consent all waited for him to reply to this statement.
“Yes, gentlemen,” he said quietly, “Boney Earnest may not be a stockholder of record. But all the same he had his all invested in this smelting plant. Day after day, during year after year, he stood before the blast furnace, doing work of a class which few men could endure. It is true he received a daily wage until the date of his dismissal, but he had invested in addition to his daily duties almost a life-time of ripe experience in the particular work he was doing for this concern. In short, he had his all—his strength, his brain and his experience—invested. In these circumstances I object,” continued Major Hampton, “to a dividend of seventy-two per cent. I notice from the manager’s report that he has made ample allowances for betterments, replacements, and surplus, and even with all these very proper provisions, the enormous possible dividend of seventy-two per cent, still remains. An original capital stock of $500,000 and an annual dividend of $360,000, certainly is a magnificent showing.”