The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-21

he has contended. the man Of greatest
power for good or evil to business. the
man of the greatest personal force now
engaged in governing US. points out the
general road to the new prosperity ana
invites Government and business to
travel thereto IN company, in harmony,
with equal step. How small this proc
laination Of mutual understanding
ana moderate methods and reasonable
exactions makes seem the shoutings OF
the political demagogues and the efforts
Of the Cntermyers, the Brandeises. the
Stanleys. the Lamars and the rest. who
for year or two past have been
shooting their poisoned arrows mt the
zenith. hoping to score somewhere
above the business horizon!
The indications In the address Of the
additional legislation desired by Presi-
dent WILSON are general rather than
infinitely specific; and until the exact
char acter Of the proposed enactments is
known comment on them must depend
chiefly upon the distinctly encouraging
tone in which they are propounded to
the Congress. Broadly speaking. there
are seven proposals for the provision Of
bulwarks and safeguards Of industry
against abusive or predatory opera
lions. We shall pass them briefly In
review. deferring close criticism or COM
menda ticn until we have the text Of the
bills recognized by Congress rs Admin
istration measures:
1. The President wants laws (which
will effectually prohibit and prevent
such interlockings Of the personnel Of
the directorates Of great corporations
banks and railroads. industrial, COM
mercial and public service bodies-as in
effect result In making those who Dor
row and those who lend practically one
and the same, those who sell and those
who buy but the same persons trading
with one another under different names
and in different combinations. and
those who affect to compete in fact
ia rtners and masters Of some whole
field Of business" He ventures to hope
that this change Of business organiza'
ton. effected with rea sonable delibera-
ton, will bring new men, new energies
and new blood into the management OF
our great enterprises and open the way
to leadership for men who are now
employees where their abilities entitle
them to direct A general movement to
this end has already begun In certain
quarters voluntarily and by Independent
initiative. How far the desired result
can be effected by legal prohibition re-
mains to he seen. II would seem that
the principle, to be equitable and effec
. tive, must apply to the prohibition Of
the identity Of lender and borrower. OF
buyer and seller. IN small corporations
a well as In great ones. II not there
may be some practical difficulty In
drawing the dividing line between thu
great corporations where the non
interlocking prohibition applies and
the smaller corporations where II doe
not apply. Existing interlocklngs o.
5 personnel have In most instances grown
out Of the natural principle Of represen
tatlon for responsible interests rathe
: than from any purpose or intent Il
) defeat the operation Of the natural law
of trade. Moreover 1t is outside tn
functions of Government To force open
ings upon boards Of directors for tn
i advancement of young men, howeve
able. who are entitled to commandin
position only by ambition and suppose'
capacity to command. The notiO
y vaguely Indicated by the Presiden
e would turn business topsy-turvy; IN
less. indeed, 1t resulted, rs seems hlgh
u probable, in the nominal election O
representatives Of real or super-diret
u tors entitled by ownership and con
l. handing ability to shape the policy O
/ the concerns In question. 1t is Difficult
to see how any law not subversive
u the entire system Of business coul
- reach and prevent such a relation III
u tween the actual owner or captain an
the man on the board.
!" 2. Power for the Interstate Con
~ merce Commission to superintend an
- regulate the provision Of capital 10
;" the needs of the railroads. Mr.. VII
. sons perception Of the present situ'
. ton OF the railroads appears to be bot
50 Just and friendly. lie properly r.
marks that the prosperity OF the raj
60 yoads and the prosperity OF the coul
=. try are inseparably connected. Rough
a, t,., %.