St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-04-01

Companies of good standing often get big
men ON their boards of management In
many cases three or four leading men act
together ina sort of advisory capacity They
are paid well for their work and time. The
recompense comes in the shape of a fixed
sum given them at every meeting they at
tend. 1t is considered only right that they
should be well rewarded. They have to meet
in the busy time of day and usually have a.
number of reports to hear read and a number
of accounts to examine and audit. The
prices vary with the importance of the work,
the frequency of the meetings aud the size of
the company. One instance will suffice as
an example of all. There is young but
vigorous and successful insurance company
that possesses an advisory committee con-
sisting of Chauncey NJ. Depew, Benjamin F.
Tracy and Charles S. Fairchild. In the per-
sons of these three gentlemen are represent
ed one of the largest railroads. one of the
leading law firms and one of the most prom
inent trust companies of the country. The
committee is supposed to meet once month.
If all three of the members are present, each
gets one hundred dollars. If only two are on
hand, they each receive one hundred and
fifty dollars, and if only one attends, he
walks off with three hundred dollars. This
may seem large sum, but it is not, when
the influence and standing of the men are
considered. 1t is good business for the COM
pany and yet perfectly legitimate for all con-
cerned.
This is really nothing more than an imita-
ton of the methods in vogue for years in
England. 1t has been the fashion to invite
men of prominence to act as the directors of
companies and pay them stated annual sal
aries. There are lords and dukes and sirs
and members of parliament who reap hand
some incomes from the salaries received by
them as directors of corporations. There are
well known figures in English finances who
practically. advertise themselves as open to
positions of this sort. If their names add to
the strength of the company and attract cap
ltal to its Golfers, they are in eager demand.
Half a dozen knighted gentlemen could be
named who are kept constantly busy attend
ing meetings. It was stated not long ago
that several of these parties draw salaries in
this manner that aggregate S75. 900 to $780,
600 year. Ordinarily it is no reflection
upon prominent man to indulge in this
in few instances at least, the public is apt
to subscribe for the shares of any company
in whose boards of management these gentle
men appear. They are recognized as careful
and cautious, and when they join board, it
means they are satisfied of the soundness and
prospects Of the enterprise.
Here in America, it is different. Up to
date, no influential citizen has posed as an
applicant for directorships. The men of
value to companies have to be coaXed to be-
come officials. They insist upon thoroughly
investigating the concern they are invited to
associate themselves with. The money con-
sideration is not tempting enough of itself to
bring them into line. If they join the board
they do so because they are absolutely salts
fed of its merit and future, or because
friends of theirs, upon whose opinions they
can rely, are interested, and assure them
that everything is right. How soon the GUS
tom will become more general, is matter of
conjecture. OF late years, prominent men
have more and more identified themselves
with various enterprises and corporations.
One has but to glance over the list of direct
ors of the leading banks, insurance and trust
companies of the large cities of the country
to perceive that. Every director in all these
concerns gets fixed sum for his attendance
at every meeting. In banks the amount is
understood to range from ten to twenty-five
dollars. In insurance companies and in
trust companies the amount usually varies
from twenty-five to one hundred dollars.
There is no criticism to offer to this habit.
The directors of prominent companies that
handle, in trust or otherwise, great deal of
money for other people, and have prominent
and perpleXing negotiations to conduct con-
stantly, ought to be composed of men of the
greatest experience, the highest standing and
the widest influence.
LAWRENCE S. MORT