Pioche daily record. [volume] (Pioche, Nev.) 1872-1876, 1875-09-26
MORE LIGHT WANTED.

In recent number of tho Nation we
nd on editorial entitled "The one-n man
over" which, while mainly applying
D the failure OF the Bank of California
nd the unlimited power of Ralston. con-
aims some truthful comments on the
management Of most OF our great cor
,orate enterprises and institutions. In
he course OF the writer's remarks he
ays:
Affairs have become so complicated,
he details of every undertaking Of any
magnitude so numerous, the contingent
,ies on which success depends SO subtle
and delicate and SO composite-that Is,
made up Of so many minor contingent
cies-that the mastery of large enter
prise and the ability to conduct it sue
require peculiar kind OF tai
emit, which does not increase in proper
ton to the increase OF capital. Tho re-
suit il q growing tendency to mass capt.
tai for the sake of getting the benefit OF
peculiar skill in the management OF 1t.
Part OF this skill, and a large part OF it,
consists in the power OF getting hold of
details, and keeping them in ones head,
ready for use whenever needed. An
other and larger part consists In the pos
session of the quality called Judgment,
which is also rare. and almost indefin-
able. 1t is the faculty which tells a man
promptly what to do in given state OF
facts, and enables him to do it with the
utmost courage aud confidence. without
prolonged deliberation or any elaborate
process Of reasoning. Anybody who has
these qualities naturally makes his way
to the front in all moneyed concerns,
aud naturally becomes president or
cashier; and the directors trust him be-
cause they know he is ADLER than they
are. and because, in nine cases out of
ten, they would be incompetent to criti.
to criticise it, they would be his equals;
but they are not, and they know it. and
they know that no statement he could
make to them Of what he proposed to do,
and his reasons for doing it. would make
them wise enough really to super
wise him. We see just the same ten
dency to the concentration of power in
politics. The management there, as
in finance, has become so complicated
and laborious an affair that the men with
the exceptional ability required by this
kind OF work have taken, or are taking,
it wholly into their hands. and carry it
on with comparatively little check. A
public meeting, for instance (Which was
originally Democratic body, coming
together for elaboration, is now a Curl
GUS sham. It's opinions and resolves are
all prepared for it by two or three men,
who get up its indignation and aspira-
tions In private room. When bank
or trust company fails. as we have said.
and the departure from theory in its
management Ia laid bare to the world
there Ia great outcry. But then there
ia no complaint made Of the thousands
OF financial concerns which are prosper
ing, or have not failed. and which are
we'll known to be managed in the same
way. The reason is that people know
there Is no help for it. Boards Of direc
tors feel they are not equal to the tash
of looking after their president, or Of
questioning his decisions. 1t would be,
rs far as they are concerned, very like
asking prophet to prove his assertions
The manager would, in most importan
matters, be unable to justify his conclu
sions in words. because they arc reached
highly through bits of unconscious in
duction, based on experiences long age
recorded. but not clearly recalled In eac
transaction. The natural result OF thi
supremacy Is apt to be that he often get
into the way of doing not only high
handed things but wrong things. Thi
is common effect of untrammelle
power in human nature.
This is presumably on the theory tina
not only does the Darwinian idea of tn
stronger supplanting the weaker apply
but that the president or executive Office
Of corporation or moneyed institution
holds his Office more by intuitive know
edge Of the requirements Of the situatio
than by any ordinary business qualities
tions, and that tact is made dominan
over talent. There is great deal c
truth in the extract. as the history o
many Of our corporate associations wi
show. We have fallen, as it were, int
this system, and at present there seem
to be no way Of substituting a better one
1t seems to us that the power manager
and directors of railroads. banks. etc
have OF keeping things in the dark
one great cause OF such stat
OF affairs as at present exists
stockholders. investors, directors and a
holders OF obligations are completely il
the dark as to the status OF their respec
tive business concerns, and if some leg
isiation was effected whereby the head Q
vast moneyed corporation would be oh
ligated to make sworn public reports Z
his stewardship it would be step in til
right direction. 1t would certainly be
check on undue and unwise speculate
and could work no detriment to any SC
vent institution. A sense of honor,
aot of justice, would stay many RAJ
venture. were publicity an after adjunt
and impsrt degree OF caution to ma
sgers OF funds aggresating va
amount. yet individually held in sma
suras by thousands who are partially d
pendent on their investment. The M
ehsnery Is hidden and cumbersome; wei
little more light let in on the oper
tons. though the results of bold transa,
lions might not appear as dazzling
when viewed in comparative darkness
get plain and detailed statement
affairs would impart degree Of safe,
and confidence far in advance of what