Omaha daily bee., 1906-06-27
CORPORATION FIGUREHEADs.
Wen Known FinsncIers Come Under
the Head of Dummy Directors.

David Ferguson in Success
How many corporations a man may
genuinely serve as director without being
a hgurehead in any one of them is a
complex question Some capitalists make
1t fixed rule not to enter the directorate
of any corporation unless they are certain
OF their ability 10 actually assist IN the
direction of its affairs. Others seem to go
on the principle of getting memberships in
as many directorates as they possible can,
seemingly without regard to their fitness
or ability to be of legitimate service.
Until recently, Chauncey NJ. Depew was
director in seventy-nine corporations, most
OF them railroads controlled by the VAN
derbilts Though II is a mental impossi-
bility for one man to keep in close touch
with the affairs of seventy-nine corpora
tions it would not be fair to class Mr..
Depew among the dummy directors. He
was put into the corporations chiefly to
represent the Vanderbilt family stockhold-
ings and carry out the Vanderbilt policy
of management.
William II. Newman, Mr.. Depew's sue
eessor as president of the New York Cen
tral railroad is a director in sixty-eight
corporations. most of them railroads Mr..
Newman probably holds the record as a
president Of corporations. OF the sixty
eight companies he serves as director he
Is president Of forty-four This might ex-
pose him to the charge of being a dummy
president were IL not for the fact that
most of the forty-four companies are small
railroads-eomponent parts or feeders. OF
the main lines of the Vanderbilt system
Mr. Newman is not the only man employed
by the Vanderbilts 10 represent the family
interests in corporations. John Carsten-
sen. one OF the confidential men OF the
Nanderbilts, is director IN forty-two cor
porations; Charles F. Cox another con-
idential representative. is in twenty-nine
corporations as a director, and Edward
v W. Rossiter represents the Vanderbilt
family as director In fifty-two corporatIons
James stlllman is director I'm a larger
number Of corporations than any other
member Of the Standard OIL group Of cant
talists. He serves as director i'm ffty-eigbt
companies. William Rockefeller is I'm
forty-one, Henry H. Rogers Is in twenty
hve, Daniel o'Day is in twenty and
Charles NJ Pratt is in fourteen. John d
Rockefeller, as has been stated. confines
his energies 10 one corporation, the Stand
ard OIL company, OF which he is president
as we'll as director. ]. Pierpont Morgan
though a director I'm forty-seven cor
porations, Is not an officer Of a single one
August Belmont head Of the transporta-
ton system Of New York City and Ameri-
can representative Of the Rothschilds. is
In twenty seven corporations as a director:
Anthony n, Brady serves fifty companies
George F. Baker president Of the First
National hank, Is In forty-three: Henry
c. Huntington serves in directorates of
sixty-one corporations, most OF them the
creations OF the late Coils P. Huntington;
and the veteran hnancier, Russell Sage.
though well on the way to nonagenarIan
age, still clings 10 directorships in twenty
six corporations.
Thomas F. Ryan, who, next 10 John u.
Rockefeller, is regarded in the Wall street
district as the most determined money
maker in America, is a director In thirty
two corporations; but these do not rep
resent his total interests by any means.
He has placed his personal counsel. Paul
d. Cravsth, in the directories Of dozen
/ companies. and he has other confidential
men whom he employs in a similar capacity.
Norman b Ream, the right-hand man ~
the late Marshall Field. is a director IN
thlrty-one corporations; Alexander z. Orr.
recently elected president OF the New York
Life Insurance company is In twenty-nine.
and William A. Clark. a United States
senator, is director IN thirty-tWo, OF
which he is president Of twenty-five.
All OF these men would probab bly, bitterly
resent being called dummy directors. but.
II the real facts OF their activities, or In
activities. in corporations they supposedly
serve could be learned some basis for the
charge would undoubtedly be found.