The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1881-11-10
,,rarosslI,ll,Irr on I,rn scvo.s.

The other day tllsse columns announced
the startling intelligence that the Mschan-
les National Bank Of Newark was minus Ito
entire capital and some 100000 Of do
posts. Just before that the certified state
ment Of the cashier reported the accounts
as being all right and In good condition,
stockholders were deceived, depositors were
.dcspoiled, and yet that bank purported to
have and did have set of direct
, ors whose names stood high in the
community as men Of integrity, business
capacities and financial strength. In the
trust that they accepted they had certain
! duties to perform, and among those were
the examination Of the banks books, pa
pers and monies, verifying Of the official
statement with the facts as actually exist
ing through their own personal inspection
and knowledge They were the safeguards
that credulous shareholders and trusting
depositors had placed on post to protect,
with watchdog fidelity the Widows mite
and Dives deposits. The trust was one OF
apersonal nature and not permissivo of sub
stitution or delegation. Themselves
elected the cashier, and by every rule OF
y morals they were responsible for the cor
rectness Of their choice. The bank director,
who opuntenances an exaggerated report,
the railway director who repudiates his
guarantee, il about on a par with the trader
who adulterates his goods, misrepresents
them or gives short measure. And both
can scarcely be thought to be far removed
beyond the genus pick-pocket. 1t was
1 their bounden business to know
that what they certified to was in
strict conformity with tho truth. 1t was
their duty to feel that tho derelictions Of
! their officials by them appointed must be
part and parcel of their own repute; that
any illicit practices Of any form or shade
from venia deception to outrageous rob
berry was a. soiling to their own garments
I Ias it could bs to the. brow of the thief that
| purloined. For months, perhaps years,
they have been sailing under false colors
I and indulging the trick of aluring en-
Aployees to use false trademarks. They can
mot be permitted to enter the
Tplea of ignorance in mitigation
they were chosen because of their assumed
knowledge and skill in the department
They cannot plead that themselves have
been heavy sufferers, for this had nothing
to do with their obligations to protect the
property of those trusted to their vigilance.
The truth IL that when persons assume
responsibility they ought to be equal to the
4 emergencies 1t is too much the habit in
the organization of corporate bodies to So
lect high-sounding names, and, perhaps
as solid ones, in order to OBJ
ltain the confidence of those they
Iwish to have invest in the
enterprise. Too often it is the case that the
very best Of those in the list, too busted
with their own Immediate affairs, have not
i the time to properly devote to these cor
porate ventures. The business therefore
gifts intoithe hands and management Of
two OF thfss * 81 shs least competent Of the
directory, and then comes the opportunity
of the smart rascal who knows how to
. manipulate details as to hide from
the incsutous eye the villainies he
has parpetrated or il Matching.
How best 70 reach and avert this trouble,
whether by imposing a direct liability upon
directors, something more than the moral
kensure, or in some other way to hold them
1Cr their derelictions, ought to become
matter of thought and discussion by those
fst concerned. As now constituted, di-
ors are too lax in watching the interests
hose who have trusted to thor names
regulations. Who knows how many
lily bankrupt banks there are in Texas
day, or indeed other similar institutions
Il Of tr1si, that are drifting under the. man
\ agement of careless supervision