COMMON STOCK	103
ordinary" stock, Such stock is inferior to the ordinary shares. Where
it is used, it really elevates ordinary stock to the preferred class.
These deferred shares are usually issued to corporate organizers and
give them a final claim on the earnings, after all who have contributed
capital to the corporation have been paid their contractual interest or
dividends. Other terms used to describe such shares are "founders' shares"
or "management shares." Where any of these types of shares are used,
only a relatively small number- are issued for any one corporation.
Frequently they are endowed with exclusive voting power, except during
such periods when contractual dividends on other types of shares may be
in default. Meantime, the proportion of earnings to which such shares
is entitled is likely to be quite large. The 100 founders' shares of the
Imperial Colonial Finance and Agency Corp,, Ltd., arc entitled to one-
half the company's profits after paying 7 per cent noncumulative dividends
on its 270,275 ordinary shares, par £1. The 100 management shares of
Wm. Whitelay, Ltd., are entitled to 7% per cent of the dividends distrib-
. uted in any year after payment of dividends on the company's preference
stock and provision for a reserve fund of £10,000. The 1,000 management
shares of Maple and Co., Ltd., are entitled to three-tenths of the annual
earnings after provision for dividends on £2,000,000 preference stock. In
addition, the company has £1,800,000 ordinary stock.
In rare instances, such stock has been issued by American corporations.
The founders' common stock of Jenkins Bros, has exclusive voting power.
In all other respects it is identical with common shares. The founders' stock
of the New York Shipbuilding Corp. has exclusive voting rights under ordi-
nary conditions and is entitled (after preferred-stock requirements) to 35
per cent of net earnings distributed after 1928 and to 35 per cent of remaining
assets in dissolution. The Anglo American Mining Corp., Ltd., incorporated
in Delaware in 1933, has outstanding 25 no-par founders' shares. These 25
shares are entitled to 15 per cent of all dividends declared and of all proceeds
from the sale of assets in case of dissolution. They arc entitled to as many
votes as there are common shares outstanding. Each common share has one
vote. Founders' shares of Continental Shares, Inc., have no voting rights
and are not entitled to dividends unless common stock is paid in excess of $1
per share; in which case, founders' shares are entitled to one-fourth of all
declarations in excess of $1 per share on the common stock; provided further
that the $1 has been paid not only for the current year but for all previous
years, In 1937, common shares numbered 2,517,336 and founders' shares,
10,000. Usually the promoters and bankers here are given blocks of the
same common stock held by others.
Unusual Names,—To describe unusual circumstances, stocks are some-
times given unusual names. In addition to its common stock, the Baltimore
and Ohio R.R. Co. has outstanding $1,650,000 of "separate stock" issued in