Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-11
INSIDE OF WALL STREET
Graft in the ha1ketThe Equitable Affair Influencing Trad
Directors in Many Lines Are Abusing Pswsr-A
Moral Awakening Must Result
BIZ EDWIN LErEvRE.

| vious b that what holds true OF municipal
and state politics q true OF finance. Con-
unued power. long tenure OF ONCE. makes
corrupt political bosses and rings forget
that they are the servants Of the people,
Nothing short of n defeat at the polls by
the other party chastens them. 1t Is the
same In Wall street. There - scarcely a
big railroad In the United States that is
not controlled" by men who forget that
directors are elected by the stockholders to
represent the interests Of the majority.
There are roads like the Vanderbilt system.
which are ruled by the minority. The YAM
derb1t family owns nothing like the ma
ycrity OF the stock Of the Vanderbilt Lines.
Mr.. Hill and Mr.. Morgan felt they con-
trolled absolutely the Northern Pacific and
Could do exactly as they pleased, and 1t
was only when Mr.. Hartman and Mr.
Schin purchased the actual majority of that
stock in the open market here and abroad
that 1t was shown Mr.. Hill and Mr. Nor
gan and their associates and friends had in
reailty small minority of the stock of
the road over whose destinies they presid-
ed as automatically as if they had divine
right to it. 1t Is likely that the lesson of
the Northern Pacific fight taught Mr. Har-
riman, Mr.. Schiff and associates the neces-
SHY OF owning an actual majority of the
stock of the Union Pacific. AT all events
they undoubtedly act for majority of the
stockholders. The only big railroad in the
United States which is really owned by its
managers is the Rock Island. That is to
say, Messrs. Reid, Leeds and Moore con-
troll 1t by reason Of the actual ownership Of
the majority of the stock.
X X
ndlfference to important affairs is a ma
tional trait We must be indifferent to
honest government or we would not toier-
ate political corruption. AS long as the
abuses are not too patent and dishonesty
Is not too clumsy or too brazen reform
candidates never win. AS long as insiders
90 not fall out nobody worries about in
surance companies or bankers or railroads
provided also dividends continue That
same national Indifference is what encour-
ages grating practices. The directors of
great corporations do not feel they are re-
spcnsible to the stockholders whose proxies
are secured by the party in power because
the party in power asks for Them For
that reason some recent articles on frenzied
hrance and the disgusting Equitable affair
ought to do good.
iney Will deserve the gratitude of the
pubic II they have made insiders realize
that the public has rights which should be
respected There can be no question that
young Mr.. Hyde was sincere in his belief
that his ownership Of little over $50 600
or the stock of the company, inherited from
MS rather, made him the guardian of the
money paid to the company by a hundred
thousand policy holders-and that SO long
as II wasn't thrown away he could do as
ne pleased. For years the Equitable eoterie
mad profitable side lines and were not
conscious of wrongdoing. If the present
agitation awakens in the great financial
to the public and of moral as well as legal.
I obligation to those whom they are supposed
10 represent, a great good will have been
accomplished.