[4 THE WORK OF THE STOCK EXCHANGE 
American business enterprises launched in the first decades of 
the nineteenth century is furnished by the early development of 
the steam locomotive. That this machine could successfully 
pull unheard of loads over rails at an unprecedented speed was 
demonstrated beyond the peradventure of a doubt. The public, 
too, had sufficient imagination to realize the new era in the 
history of transportation which was promised. But for all that, 
the locomotive was for some time considered only an imprac- 
ticable inventor’s dream. No American, nor partnership of 
Americans, it was publicly argued, was rich enough to finance 
the building of a railroad—therefore railroads could never be 
built. This hasty syllogism was not exploded until the organi- 
zation of some of our great railroad stock corporations revealed 
its fallacy. Not until the savings of thousands of individuals 
were successfully enlisted in railroad enterprises by the creation 
of a large stock corporation, did steam. railroad transportation 
emerge from the inventor’s shed to become the indispensable 
carrier upon which modern industry and much of modern social 
life has since been builded. 
Nor was the ability to handle a larger volume of business 
with a greater equipment the only advantage gained for the 
more secure and successful conduct of business by the develop- 
ment of the modern stock corporation. Many important 
advantages resulted to the benefit of the shareholder as an 
investor. For one thing, the corporation became a deathless 
entity whose affairs would not have to be liquidated or 
reorganized whenever a partner died. It furthermore permit- 
ted a greater concentration of control in its management, which 
likewise made for greater safety and efficiency. It could 
attract capital in amounts varying from the small investor’s 
mite to the fortunes of the wealthy, and also made it easier for 
anyone to invest in a business without the need of directly 
sharing in its management as well. In addition, since almost 
all stocks in time became non-asséssable, the investing share- 
holder was freed from personal liability for the losses of the 
corporation.