The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-04

from the Holy land. A much more fer
tile soil could be secured in Minnesota
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The Duties of a Director.
The sharp criticism of the directors
of the defunct First National bank of
Faribault, emanating from the office of
the controller Of the currency, and
printed in the Washington dispatches Of
T he Journal Of yesterday, touches
upon one Of the live financial questions
of the day-the duties of corporation
director. ....
It is alleged that the Faribault bank
directors met but once in every six
months. If this be true, it is sufficient
in itself to indicate that there was lack
Of that close supervision necessary to
the safeguarding Of the interests of the
depositors. E,.e.-.-.
The question Of the obligations upon
a director takes on many different
forms. Not very long ago, in the in
terest Of law enforcement and general
morality, a great fight was started in
New, York. against the poolroom evil.
It resulted in disclosure Of the intimate
relationship between telegraph .compa-
MES and these gambling places, and the
charge was made that the telegraph
companies were fostering the evil and
promoting it's spread, the poolroom wire
service affording large revenues =
Nothing resulted from this charge,
however, until the Wall Street Journal
printed a list of directors of the tele-
graph company, under the head Of men
engaged in the disreputable poolroom
business. Then there was sensation, for
on the list were men Of great wealth
and high social standing, fnanciers,
lawyers, club members, church members,
United States senators. Something had
to be said on their side and so the pub
lie learned that the directors knew little
| Of the internal workings Of the COM
pany, that many of them rarely attend
ed the meetings, and that the policy Of
the management with reference to in
creasing the earnings was matter with
which they did not concern themselves,
being content to know that their fnan-
cial interests were protected and the
dividends regularly paid.
The incident served to stimulate gen.
eral public interest in the duties of a
director, a consideration fitting in well
with the call for greater publicity of
corporate affairs, now the feature Of the
day in American economic thought.
More recently the directors of the
American Grass Irvine company have
been compelled by the courts to pay
back to that company about $650,000
representing dividends illegally de-
clared. A stakeholder Of the American
Mailing company has just won suit
against that company of a somewhat
similar nature. All over the country
the men who sit on the boards Of great
concerns are beginning to take notice
for it has begun to look as tho the time
is passing when a number Of men, con
trolling big corporation, can be guided
in administration of it's affairs by con
sideration Of the effect Of their action!
upon the stock market value Of thei,
holdings, rather than by conservative
consideration Of the greatest ultimat,
good to the whole body Of stockholders
We are not far from the day, when t.
be director Of corporation will meal
, much more in the way of responsibility,
and men who accept positions on com
{ pany boards will have to understand
: this.
! THERE'S an old railroad directors idea
: that is dying hard, that the railroad
. are private concerns. It is difficult t
mako the old-time railroad capitals
: admit that public or governmental in
9 quiry into the management of the road
8 for the correction Of an evil, or the gen
!, eral public good, is not interference
: with private right, but he will have t
9 see it some time
! Just SO, there are many directors VIII
) have thought of their positions primar
q " as affording them opportunities an
81 advantages not accruing to the ordinar
g stockholder, but they also will have t
q change their views, and come to see tina
! as directors they are supposed to b
g principally concerned with the safe
!. guarding Of the interests Of the stock
holders, and that there are certain dl
g ties to be performed, failure in whic
I will get them into serious trouble.
a. s5
y Mr.. stickney says that in England tn
]. laws against taking free transportatio
Y are obeyed. When the members OF par
{. lament ride they pay and when the kin