The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1905-12-12
pIaEcroas &c oon.r oIaeer.

Charitable Associations Affected by tho
Insurance Company Revelations.
The system Of unpaid, self-perpem-
citing boards OF directors is on Trial in
charitable societies and institutions /
no less than in business corporations
aud semihducary institutions such as
savings banks and insurance cori-
panies. In meny instances it works
well. Ia some Instances II breaes /
down. Whether iy succeeds or falls
depends in part, OF course, on the |
personal character Of those who srrye
as directors and On the character II
the executive officers whom they
choose, but the time is opportune fcr
scrutinizlng the system itself and che
methods by which IT operates. AS
has beeS shown before the legislative
committee the actual workings OF ia,
system cannot always be learned from
an examination Of. the printed by
laws.
For example, the description Of tho
boards OF managers Of charitable
societies as self-perpetuating would
appear inaccurate II one judged sole
ly by the methods usually prescrb-
ed for the election Of members. Nom
inally they are usually elected by
the members. that is to say, as a r'llo
by the contributors to the institution.
In fact however, so small numbcr
of members participate In the annual
election that there is generally no
opposition to the continuance of
those whose terms expire II they wish
to rems'H. or the executive officers
desire that they should. This is not
necessarily Objectionable Of itself. for
II the existing administration is good
one II should as a rule be continued.
The difficulty is that the process is
without discrimination. An antiqu-
ated, unprogressive. and inefficient
administration is continued as read
lily as one Of the opposite description.
No one wants the trouble involved
IN forcing a change. II is easier TO
let things go as they are in the hope
that nothing positively scandalous
will occur.
! Again, there is seldom such a real
audit Of finances or critical scrutiny
OF actual work done as would guide
the directors to an independent and
thorough going judgment as to wheth-
er the expenditures have been Judicl
Gus and the work faithfully and efi-
oiently done
There is a widespread misconcep-
tlon Of what membership in board
Of directors means or should mean.
Men and women OF prominence srS
solicited to allow their names to be
used with the distinct understanding
that absence from meetings, irregular
attendance. or even a complete neglscI
OF all the duties will be overlooked
for the sake Of the financial or Other
incidental advantage which the insti-
tuition will gain from the mere fast
that the names are allowed 20 ap-
pear Social consideration some
times lead to the selection of directors
who are fegrantly unfit for the par
ucular position TO be filed One Of
the most distinguished OF American
citizens, appearing a few years ago a.
a public hearing IN opposition 10 the
views Of the president OF a weh
known philanthropic agency, descnb-
ed himself to the great amusement
Of his audience. as a part Of that pure
y ornamental fringe With which tho
kentleman En the othsF side had
surrounded himselt-in other words
ne was a director Of the society
Charities.