Clipping:Boston Club ownership; Massachusetts legislature gets in the act
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| Date | Saturday, May 3, 1890 |
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| Text | That close corporation known as the Boston Club of the National League is likely to feel the spear of the law, as a legislative committee is about to probe into its affairs, judging from the following article in the Boston Democrat of last Sunday, which said: “The Solons of the Bay State who sit on Beacon Hill have had an opportunity of studying the beauties of base ball as best appreciated by the old magnates of the League, who, while professing their love's sacrifices for the noble sport, have first taken the best of financial care for themselves. The Boston Base Ball Club has for years been recognized as one of the bonanza concerns of the State, with a great income at very little actual capital on risk. Three men have, as a syndicate, ran the club to suit themselves, absorbing large sums under the head of salaries, voted and paid to themselves. At the same time a number of other stockholders have had to whistle for dividends, and have been refused any showing of the profits or income. It is furthermore claimed or averred, the syndicate in control of the club have managed to escape paying to the State Treasury dues which should have been levied on them in the form of a corporate tax.” On Wednesday, April 23, the case of the old club was presented to the careful consideration of the legislative committee on taxation, on the petition for an act, which would make it and all similar corporations subject to the payment of just taxes. Mr. William P. Cherrington made the argument of the day, and his remarks just now in the light of the revolution worked by the Brotherhood, cannot but be interesting to people generally. Mr. Cherrington said: [a long argument follows for requiring close corporations to file financial reports with the state in order that the the tax commissioner can place a valuation on the corporation.] [including:] Messrs. Soden, Conant & Billings are the officers, Messrs. Haynes, Cory, Hart and Long are stockholders outside of these officers. Would you not suppose that in equity these four stockholders whose money was invested in the corporation could obtain some knowledge of the value of their investment? Well, they tried to do so, but could not succeed in the Supreme Court of this Commonwealth. On the 11th day of Nov., 1887, they filed a petition setting forth the facts, and among other things they prayed that “an account may be taken by this court of the officers of said corporation, of its assets, liabilities, and especially of its earnings and income, and that for this purpose the defendants may be required to produce the books, accounts and records of the corporation. Second. That if upon hearing it shall be found that said defendants, Soden, Conant & Billings have violated their duties as directors, or have applied the property of said corporation to their private use, or have abused their trusts as officers of said corporation for their private advantage, said defendants may be removed from their trusts as officers in said corporation. Third. That the shares of stock in said corporation may be enumerated so that it may be determined how many shares of said stock are now in existence. Fourth. That any and all shares of the capital stock of said corporation which have been forfeited to the corporation, may be sold at public auction according to law, and the proceeds of the sale of such shares applied according to law. Fifth. That the defendants, Soden, Conant & Billings, as directors of said defendants' corporation, and said defendant Billings as treasurer of said defendant's corporation, or the successor of either of said officers, in case either or all of them shall be removed from offices in said defendant's corporation, by the decree of this court, may be ordered to annually distribute such dividends as can reasonably and prudently be made upon all the stock, having due regard to the prudent and conservative management of its business. To this petition a demurrer was filed Jan. 4, 1888. The case was heard before Judge Holmes in the Supreme Court in Equity. Under the rulings of this judge the case was dismissed by agreement of counsel without costs, Oct. 27, 1888. Now, Mr. Chairman, if the stockholders with their money invested could not get the inside history of the money affairs of this corporation and were compelled to sell their stock at such price as the officers chose to pay for it, how, I ask, can the tax commissioner ever approximate to the value of the franchise of such corporations? … For the past four years the tax of the Boston Base Ball League [sic] has been assessed as follows: 1886............................. $95,200 1887............................. 94,200 1888............................ 119,300 1889............................. 156,700 A local tax all on their real estates. Not a dollar went to the State for the franchise. Now, is that its actual value? … After some other evidence in the premises had been heard the committee took the subject under advisement. |
| Source | Sporting Life |
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| Submitted by | Richard Hershberger |
| Origin | Initial Hershberger Clippings |
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