The Alaska citizen., 1913-06-30

the investor and leads him to rur- chase some specific security is the knowledge that banking houses of good standing have investigated that particular security and themselves have undcrvritten or have invested in it.
 FINANCIAL ADVISERS A
 REQUISITE.
 Still another consideration induc- ing large corporations to appoint fiscal agents is that frequently such corporations are obliged to undertake operations of such magnitude and complexity over series of years, that they must invoke uninterrupt- edly the best financial advice oh tainable. An operation like that Of the Pennsylvania and the Long Is. land railroads in tunncling respec- tiyely the Hudson and the East rivers. and building an enormous ter minal in the heart Of New York. involved the expenditure of say $200.000.000 and, from inception to completion. occupied the best part of a decade. The unwisdom of em. barking upon such a development and of rely Ing through good times and bad. panic periods and other wise, upon the sale ot s200o0G.0on bonds, by auction 10 the public. could hardly be characterized. even if it were conceivable. Another example might be mentioned in the irrigation enterprises Of the West. II is estimated that there has been less than s20o.000 ,000. How far would such development have gone. how far would those regiens have been opened 10 agriculture had de pendence for obtaining that great sum been placed upon the nearby communities. or even 1by means Of public auction) upon investors ill New York or Chicago who know lit tie of the safety of such investments Persons who decry the close rela. tions existing between the bankers and the great transportation and in dustrial business fail to perceive that, as individuals require the ad- vice of lawyers and physicians, So great enterprises require financial diagnosticians who can give counsel as to the worlds investment mar kets. as to what form of securities is best adaptable for any given time. as to what financial policy for the corporation is best calculated to command the confidence and the steady support of the investor.
 OFFICERS ARE INDEPENDENT
 One phase Of a far different feeling al present 10 be noted in America, finds repeated expression in the pre- amble and resolution to the effect that financial groups have control over the aforesaid railroads, indus trial corporations and moneyed ill. stitutions, etc" that such an in- iuence is eXerted powerfully over the officers and management of such institutions. and that such influence es eXerted primarily for the benefit of the individuals. Persons that ac- cept such belief must fail to realize that no corporation could long sur vive if the operations of the cor poratiOn and the freedom of it's Of ficers were nterfered with by di, rect IFS desiring to serve selfish in- terestS. The success of an enter prise depends largely upon the ability and zeal of its officers exerted inde. pendently of any interest except that of the enterprise itself Any attempt by directors rking to their own ends would result either in the running Of the business. were the officers to yield up their inde- pendence; or in the prompt resigna- ton of such officers if they were men of character And since when. il may be asked, has the ownership of stock meant the ownership of men?
 PRIVATE BANKERS AS DEPosl-