The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-27
A New Profession.

-: A New Profession.
Much comment is heard these days
of a loss of confidence in the high
finance of our country. The people
have heard of doings in the inner cir
Giles Of the big corporations that do not
seem right, and the natural effect has
been to breed suspicion and distrust.
While nearly everyone believes that re-
cent disclosures do not fairly represent
conditions, and that the general stand
ard is much higher, yet every new evil
dence of mismanagement or abuse of
confidence on the part of the controll
ing force, or directorate of an import
ant corporation, but adds to the feeling
of disappointment. The public had ex-
pected the higher standards of business
honor and they have not been found.
The fnanciers have brought the discred-
it upon themselves thru internal quar-
rels and chickering's engendering such
heat as to break thru upon the surface.
The Equitable mix-up has done more
TO change sentiment than anything else,
and it must be admitted that the acri-
naony displayed, and the bitterness and
intense selishness shown have operated
to lessen the high regard in which di-
rectors Of great corporations have been
held.
AS there is nothing without some
good SO all this disturbance is. not. with
out its benefit, and chiefly this benefit
comes from the more thoro looking into
things by press and public. AS investi-
cation goes deeper new features are
discovered and so each day brings nov
city. The latest is the discovery of a.
calling that from now on will no doubt
take rank as the most exclusive, most
arlstocratic of all occupations in the
domain of high finance. This is an oc-
cupation not really new, but new in the
sense that only of late it has grown to
be factor of Importance in the grand
scheme of purifying finance, and new
also in the sense that it has never be-
fore been distinctively Marked It has
remained for an eastern financial paper
to classify it as - the business Of di-
rectoring.' Notice that it isn't called
directing-that is very different
thing. - - -. - ..:s
This "directoring' business is the
thing that will have to be looked into
next. The situation at present presents
many absurdities. For instance, it is
not uncommon to find a man whose
name stands high in finance, who is on
the boards of twenty or twenty-five
different companies. Some are on thir
ty or forty, and the champion director
OF the country, besides having multi
tude of private and political interests
is director in no less than seventy-twc
different corporations.
That any man can be on SO many diff
ferent boards and know the details oil
their workings is impossible. That hi
can attend the meetings is highly i'm
probable. In fact, it has come to this
that the directors delegate the work K
subordinates and frankly admit thai
they know little or nothing of thei
doings, as in the recent case of investi
CATION of charges against a telegraph
company when the men who were OF
the board admitted that they knew
nothing about the management.
Thus it has come to be that name OF
the board of a company means little. L
he has the wealth or influence, and it i
of use to him or his associates, his nam
goes on. This is wrong in principle
The advantages Of holding member
ship in many different banking, insur
ance, trust, railroad and other com
panies is illustrated in many differen
ways, perhaps the most forcible illus
tfation of all being found in the state
ment that, within three years, under
writing syndicates, made up Of me
whose interests intcrtwine and overla
in this way, have sold to the Equitabl
society securities to the value Of 800
100000. The question is not whethe
they had legal right to do this, TO
probably they had; nor is it. a questio
of the value of the securities sold. TIL
real issue is whether man acting i
the capacity of director in this way, BIZ
ing in the Cuisines Of directoring,
can honestly and conscientiously serv
the interests he is assumed to stand for
or, whether, on the contrary, his mai
interest does not lie in making hi
prominence in the different companie
serve for the upbuilding of his ow
private fortune.
Time was when the promoter was tn
man of mark in high finance. He
was who got together a number of con
panies in an industry, or industrie
allied, and glued them together into
whole, and gave the country the trus
The promoter has passed, because nearl
everything has been trusted. Th
profits of the promoter were very grea
Next came the sunde rwriter, who too
whole issues of bonds OF securities an