Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1875-10-30
Railroads and their Managmont.

II Is evident that stockholders In
railroad corporations have little or no
means of knowing the financial condition
OF their property with any accuracy,
oftentlmeS, at least, until Il Is to late 20
remedy wrongs aud abuses therein. We
doubt whether Directors generally take
all the steps necessary to detect errors
and abuse in the management OF affairs
until 1t is too late to avert the rumouS in
consequences thereof. Directors can
hardly devote the time which is required
to examine all the details of business, and
it is we'll known that errors in detail,
unless checked at once, are sure to bring
mischief and even ruin In the end. Rail-
roads which have suffered most from
mismansgemeHt, or bad management, or
no management at all, are those where
the affairs have been conducted and con-
trolled by the fewest number Of persons.
The enormous capital required to conduct
this kind OF business requires also the
skill and brainsgof heads of departments
entirely Independent of each other. One
man will find it impossible, we think, to
answer all the requirements OF safe and
profitable management
1t was a great mistake when the flnan-
cial and other responsibilities, which
should belong to the President and
Directors, passed in any instance into
the hands of managers, superintendent
or other subordinate officers. Those
roads which have paid their Presidents
salaries, and required of them oversight
and attention to the business of the road,
as the head thereof, have been generally
successful, although there may be marked
exceptions. This necessarily places the
care of the finances in the hands of the
President and the expenditures of money
and the details of business in the hands
of superintendent or subordinate officer
and the mutual consultation this division
of responsibility requires, places these
officers in position at all times to be OF
assistance to and check upon each other
And ia this way, from the President as
the responsible and active head Of the or
ganization, and from subordinates, all re
CURED regularly and often to report tc
the Directors, the latter would be more
likely to be furnished with better knowl
edge oil the affairs of the road
At all events the responsibility of thu
management Of railroads should come up
on the President and Directors more di
rectly and completely than it now gene
rally does. 1t is poor excuse for then
to say that they have been deceived anC
misled by those whom they have employ
ed to transact their business. No Subor
dinate should be in position or hay
the power to deceive the Directors to an,
extent, and if the latter cannot or will no
, establish rules and secure such oversight
, as to either prevent abuses, or to proven
, them from being concealed from then
for any length of time, then the lay
should step in and help them, and pre-
scribe rules and regulations for them.
We concede that it is diGicult to kee]
out of any business errors, mistakes AM
r abuses. They will often occur by acct
, dent and they will sometimes occur b
design. Keep out Of railroad manage
ment personal ambition for power an
:. influence of position, and keep down tn
feverish greed of gain, and keep open t
, the public and to the Directors, a
, all times, the exact financial conditio
, Of the corporation, and you will thereb
go far towards securing an honest an
, PROSPEROUS management,