The San Francisco call., 1904-03-11
Corporation LdagyerS.
BY sERENO s PRATT.
(Editor Wall Street Journal. Author Of The
Work q Wall Street

the Panama Railroad, who negotiated
the sale Of the canal to this Govern
ment. This is said to be the largest fee
ever paid TO an American lawyer.
The rewards of professional service to
corporations are SO large as to reduce
TO a minimum the attractions of inde-
pendent practice or of political distinc-
lion Mr.. Cromwell has with notable
success served as legal adviser Of cor
pOrations and financial interests, and in
this commercial age, when everything
is measured by mOney-the mark be-
ing the only insignia Of American aris-
tocracy-to earn a S2.OO0.O GOO fee in one
great negotiation is regarded as d
more tempting reward than even the
applause Of a Senate.
Rev Donald Sage Mackey quotes An
drew Carnegie as saying that the
fundamental weakness of all trusts is
that they cannot monopoIize brains" ="
What he meant by this was that while
trusts might be able TO monOpolize raw
material. methods of manufacturing
and agencies for sale, they could not
mOnopolize the brains that may dis
cover new sources Of raw product, in
vent new systems of manufacture and
new ways Of advertisement and sale.
In sense this is true. But the cor
porations 60 very far toward establish
fishing a monopoly Of the best brains.
That is 10 say. they are able to COM
mand their services by the large sala-
Iies and fees which they alone have the
means TO pay.
II was recently announced that Ed
ward II. Shepard had resigned as coun-
sci Of the rapid transit commission Of
New York City-a $4,000 salaried posi-
tiOn-tO become counsel to the Penn
sylvania Railroad at a salary not made
public. but reported to be in the neigh
borhood OF SO, ,0Oe That means that the
Pennsylvania Railroad is able to buy
one Of the best brains in the country,
and that the offer il made to Mr.. Shep-
ard was so tempting that he not only
resigned his place in the government Of
the city. but in large measure sacri-
feed his political ambitions. Mr.. Shep-
ard is not only an able lawyer, but one
0f the keenest political pamphleteers
in the United States, and his friends re-
gard him as measuring up to Presi-
Dental standards, but as counsel for
great railroad corporation his political
availability is much diminished:
Why did Elihu Root resign from
the Cabinet. although ne was, accord
ing TO President Roosevelt, the great
est man in the service of any Gov
ernment in the world? Because he
could no longer remain as Secretary
Of War when he could earn as a law
yer serving the great financial inter
ests ever eager to secure the ablest
talent in the country at least six
times what the Government paid him
as Secretary of War. His five years
service for the United States must
have cost Mr.. Root in loss of income
what would by most people be consid-
cred a large fortune.
John ". Griggs, who made one of
the arguments before the Supreme
Court in behalf of the Northern Sc
curities Company, was Attorney Cen
eral in McKinley's Cabinet, but found
The emOluments of a corpora tion law
yer more attractive than the distinc-
tion Of public Office. Curiously enough
the opposite is true of the present At
torney General, Mr. Knox, who, al
though a corporation attorney gave
up his practice to enter the Cabinet,
and made a very able argument
against the Northern Securities Com
great lawyer who has not yet sue
cUmbed 10 the temptation OF rail-
road corporations fee is United States
Circuit Court Judge Grosscup, who
has steadfastly resisted every effort to
move him from his present position,
which he regards as a splendid plat
form from which TO address the coun-
try on the necessity Of corporation re-
publicity.
AS a rule the corporations are bet
ter served than the Government itself
because the former are able TO pay
more for high-class brains. This is
particularly true Of the railroads.
such men as Francis L. Stetson, coun-
sci for several Of the Morgan roads:
George r. Peck, ex-Judge Dillon, ex-
Senator WOlcott and Dodd and Elliott
Of the Standard oil Company are the
kind that naturally find their place in
the service Of great capitalistic inter-
ests.
The corporation lawyer does not
necessarily make an imposing figure in
the courts His duty. in fact. is more
10 keep his client out Of litigation than
to defend him in it,
TWO or three years ago James ]. Hill,
passing through the offices Of one Of
bis corporations. noticed the general
counsel tilted back in his chair placidiy
reading a novel. This rather nettled
him. for Mr. Hill is business from the
soles OF his feet to the hair Of his head.
"How can you find time to read
novels in business hours?" he demand
ed Of the lawyer.
You ought to be glad" calmly re-
sponded the attorney. that you have
lawyer smart enough to keep you out
Of litigation so that he has time to read
novels"
Mr.. Bill instantly saw the point His
general counsel had saved the company
millions Of dollars by preventing litiga-