The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-11-19
DIRECTORY MEETINGS.
One step In the Righ, Direction Brought
About by Recent Di>cio.urcs.

To THE EDITOR OF IHFSUS- Sir. Meetings
OF the directors II most Of the insurance compa-
mics Of New York have heretofore been held
monthy-not too often, 1t would seem. from the
little knowledge most directors have Of the af-
fairs Of the company.
Now We understand 1t IL proposed. by some Of
the leading COMPANIES to hold only quarterly
meetings Of the directors. and. in one instance
to increase the payment from $3.50 to tlO each
meeting, or from $50 ITO siOa ycnr.
1t is not matter Of surprise that dcfalcatons
In our financial institutions are 50 frequent.
Tho wonder Is that people will become stock
holders in companies Of whose management
they know absolutely nothing In few rompa-
MES an siderable number Of the thirty or
forty directors give sufficient attention to lis
business to be- able to make an intelligent answer
when questioned in relation To its affairs They
attend the regular meetings Of the board. answer
to their names at roll call take their INV listen
to the hnsty reading " the report Of tho cundi-
ton Of the company by the secretary. and adj
Iourn. We will not dispute the fact that there
arrcrtuin committees. ns the Finance Commit
tee. tn" Committee on Losses. &c.. behind whom
tho rest Of the board cndcavor To- hide from rr-
sponsbiliiy. But what Of these committees
Ihey meet az the call OF the officers. usually
only to confirm or approve thnir decision Do
STOCKHOLDERS rest content in the belief that the
directors have large interests in the corporation
Mhlct they are bound To- protect. and while
looking out for themselves. serve others also
II SO. they would be- surprised to know tho small
amount Of stock held by some directors Stock
holders rnrrly attend the annual meetings and
vote for directors, but usually leave II W IN the
Officers aud directors To- rotate themselves in
ofl'c which they would be- very likely to do
whether or not. holding as many do IA sufll-
Gent number Of proxies ~ control the election
In any event.
Directors have thus come to learn that II they
desire To retain the positions Of honor and trust
that they NIL It Is safe to acquiesrc in the sug-
gestions Of the President, for otherwise their
nhinrs may not appear on the ballots prepared
Tor the reNt annual election.
During the past few years Of hard times tho
wages pf nearly all classes have been reduced.
Inc carpenter. mason, school teacher. preacher,
and lahOrrr receive less than formerly. In
some instances the salaries of public officers
have been lesscned but who can point to in
stances where the five or twcnty-f thousand
dollar salary Of "a bank or insurance President
has been cut down 2 IL would require "A greater
amount OF sclf-dcnial than the average officer
II possessed OF 10 make the reduction unsug-
grsted and the board, being as a rule personal
friends OF the officer. or. at furthest friends Of
his friends, hesitate about making the sugges-
ton.
And so II goes on until finally the President
and his co0filrials, who usually work rs unit,
are the central and supreme power. - long ~
this supreme power works In the way of truth
and Jistic" all is well. But To err Is human. and
too often The SUN contains startling head line
announcing Another Dedication"
II stockholdcIs in these times would question
thcir directors pretty closely concerning the
Affairs II their trusts they would soon be con-
WINGED that directors meetings should be held
moro rather than less frequently. Il.