The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-01-26
Stuvpesant Fish Sounds Serious
Note Of Warning
INVADES EVERY BUSINESS
Directors of Corporations Have Un-
dertaken More Than They Can
Handle and Whole System
Needs TO Be Changed.

Louisville. January 25.-Mr. stuyvesant
Fish of New York, president of the Illi-
nois Central railway, was the principal
speaker at banquet tonight given by
the board of trade. E. H. Bowen, pres
ident of the board presided. Mr.. Fish
responded to the toast Economy" saying
in part:
mo one can examine the appropriations
made by Congress, by the state legisla-
lures and by our municipal governments
without appreciating that there Is in
each a conspicuous and growing lack of
economy. There is not only waste and
extravaganza in administration and what
is now commonly called graft which is
combination of bribery and larceny, but
what is economically worse. the laws are
so framed as not to get the best use out
of the taxes paid by the people. What
we have to fear is not much the mag
nitude of the appropriations as that our
laws require that uneconomical and there
fore bad use be made of them.
Postoffice is Exempt.
By way of illustration permit me to cite
some figures from the recent report OF
my very good friend, Postmaster General
Cortelyou, on the department which so
far as existing laws admit he is admin
istering admirably. The Postmaster Gen
erals report for 1906 shows a deficit of
$14, 572 5S4 against similar deficit In the
preceding year of sS.779.492. Government
free matter carried In the mails consti-
tuted fully one-eghth of the entire weight
= IL
OO0,0OO Had this been prepaid the post
age thereon would have far exceeded the
deficiency.
Rural free delivery cost $20,s19944, and
the loss In rendering this service Is safely
and conservatively estimated at more than
SIS, 100000. In like manner in the carriage
of second-class matter, newspapers, ETC.,
at rates lower than other printed matter
which return to the government from
one-fifth to one-eighth only of the cost
of rendering service, there was further
loss which cannot be figured below W.
100000. The free delivery of newspapers
In the country costs the government more
than 100000.
Calls for a Halt.
"Nor is it avoidable that under such
methods of carrying on business there
have come to the surface even In the ad-
ministration of the federal government
which we have been disposed to look upon
as honest and thorough, condition of in
efficiency and dishonesty in various
branches which to say the least calls Tor
a halt | am not one of those who here
at the south and to a democratic audience
or elsewhere would be disposed to criti-
else the federal administration Tor thls
On the contrary Mr. Roosevelts well
known character and the Vgor win
which he has ever and again taken up
matters of this sort Is one of the most
helpful considerations which we nave Tor
the future in this regard
Let us also look into our finance sys-
TEN, We hold not only the largest stock
of gold of any country in the world ana
are with the possible exception of South
Africa the largest producer thereof, but
our small supply per capita. though some
what smaller than that of France, Is
larger than that of Germany, and very
much larger than that of Great Britaln.
So also of silver. And yet we nave with
I'm a month seen money lending in New
York at 100 per cent per annum. II IL
obvious that we make very poor use OF
aboundant means.
..The trouble is not in the admnistra-
ton of the laws. but in their being OF
themselves economically bad
Cannot Shut Eyes to Truth.
s.I need not repeat that the country is
nrospering and likely to so continue.
While fully appreciating these facts we
cannot shut our eyes TO the truth tnat
has been growing in the center OF our
financial system With most OF what mas
been secured in violent denunciation OF
anything and everything in Wall street
YOU and | can have no sympathy, al
though on the other hand we must ADMIT
that much is wrong there. Without pre-
tending to any superior knowledge on the
subject but having given to 1t thought not
o,,Ixr Of 1atp
spect to corporations generally ] think
the root of the evil lies in too few men
having undertaken to manage too many
corporations; that in so doing they nave
perverted the powers granted under cor
porate charters and in their hurry to do
a vast business have in many cases done
1t all
..While the evil applies to corporations
generally throughout the whole country
nv meaning can perhaps be best illus
trated by taking the case of the great
life insurance companies of New York,
the Mutual. New York Life and the
Equitable. A year ago these three COM
panies had as shown In the directory OF
directors" published in New York, s2
trustees or directors who lived in New
York. OF them one was a member OF 15
boards another of 5S another of a. an
other of IS, another of 81, another of So.
another of 49, another of 40, another of
az another of Al. And to sum up. those
% held 1909 directorships in corporations,
sufficiently well known to be recorded in
the directory above referred to.
.sI submit that the intention of the state
In granting corporate charters was that
the directors of each corporation should
meet frequently. have full knowledge of
its affairs. discuss them deliberately and
then exercise the best Judgment OF the
whole body.
Delegated to Committees.
..The practice has arisen and is very
generally followed, of assuming that the
Insertion in such charters of the word
agents has given to the board created
thereby the power to delegate to 'execu-
tive committees of their creation all the
powers which the law has vested in those
(Conti@ued on Tent. Paoe)