The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-12
Foundation Of Troubles Is Not
Psychological, Vanderlip
Tells Bankers.
TAKE LESSON FROM UNIONS
Labor's Influence Is Great Be-
cause of It's Organiza-
ton, He Says.

twenty-first annual convention OF the New
York state Bankers Association. which
began in this city to-day, the principal
address was delivered by Frank a. Van
derlip president OF the National City
Bank Of New York. His subject was
"Business and Politics" Mr. Vanderlip
said In part
I'VE are told that the trouble OF busi-
ness is psychological In n sense l be-
lleve that the statement Is correct.
believe that the lack OF enthusiasm about
the future, the state OF pesslmism that
surrounds many phases OF business. the
disposition toward extreme conservatism,
the lack OF new plans for capital ex-
penditure for railway Improvement and
extension. for new Industrial conquest. all
have their roots in state of mind rather
than In tho statistics of actual business
data. But I am not certain that this
state OF mind Is grounded In unfounded
fears that II Is caused by legislative
ghosts, that II Is engendered by baseless
apprehension concerning legislative ten
dencies and the trend Of public opinion
The obstacles In the way Of business
recovery may perhaps be truly described
40 psychological. and still be a manifes-
tation OF sound business sense In appre-
bending the true meaning Of the political
economic situation
Vanderbilt Urges Organization.
Further In the course OF his address
the speaker said:
IL believe IL business men will get
themselves into a state OF mind where
they view conditions broadly. with his
torical and social sense. rather than only
from their individual point OF view, they
win apprehend better the direction In
which the whole current OF political
thought Is flowing and will feel less i'm
patience with this legislative movement
and vastly less pessimism concerning Its
results.
II believe in solidarity Of effort on the
part OF business men. In their organizing
effectively to impress upon the public and
upon Congress their views In regard to
legislation. We have heard much OF the
desirablity of not mixing politics and
business. Why should we not mix pol
tiles and business? What greater duty
have you to perform than to give the
best you have OF wisdom and Judgment
to the direction Of political currents. and
TO give your wisdom and judgment ef-
fectively. not merely to stand aside In
the role OF dissatisfied critics but rather
by getting truly and effectively into the
organization and machinery of political
life
Instead OF denouncing politicians I
tell you you should become politicians. II
intelligence. experience. success. proved
genius for administration. trained eSecu-
tive powers-and these are the qualities
business men are supposed to have-are
not to rule In a democracy. then SO much
the worse for the democracy.
To-day business Is practically unrep-
resented In Congress. Wealth, even sue
cess, is felt 30 to initiate against a man
In public life as practically to exclude
him from preferment We have no reason
to be ashamed of being business men
we have great reason to be proud OF It.
Although business men. we still have po-
ntcal rights. and 1t will be far better
for this country as a whole II we exer-
else those rights by demanding intelligent
and able representation OF business inter-
ests In Congress.
I'VE might we'll take "a leaf out OF the
practice OF the labor unions. Organized
labor represents but a fraction OF the
wage earners. but Yields an influence
that makes ridiculous in comparison the
influence OF the whole business commu-
nifty. We have within n week seen Con-
gress working under tho watchful eyes OF
representatives OF labor and a House OF
Representatives unanimously bowling Ia
their demands.
'sThe basis that is back OF the demand
for legislative restriction and control OF
business believe TO be In a large measure
to be made up OF sound economic facts.
'The development OF industrialisn
within our lifetime has been Of such a
revolutionary character as naturally and
rightly to create demand FOR body oil
controlling laws such as were never
dreamed OF by our fathers I denv lint
those laws have been made necessary
By unfairness and wicked practices on
&C. Won who have conducted
Sasge Affairs. although Instances OF un
.a.in.ss and wicked practices may b
pointed out.
LET us frankly admit that there have
been examples Of wronsdoing In busl'
~ that xngrn Ani haQ haA
OF the kind that some Of the Command.
ments were aimed at and which at the
millennium will be eliminated from human
nature-and not before. But the per.
centage OF such wrongdoing in proper.
ton to the total OF business IL smaller
than II ever was before. ! believe. anS
II you will take the public into your con
fidence. let II see the inside of your mind
reveal your true purposes and aims, yol
will make the public believe that truth.
Eniciency I'm Cooperation.
do not deceive yourselves that THU
pressing food OF new legislation IL the
accomplishment alone of strong willet
Executive or the work OF a RADICAL,
minded Congress The cause Is back o.
that II would be so much better " al
sides could recognize that what has beer
and what Is happening are sequences tina
fiov naturally from modern inventions
no not mean HloCndnlChl Inventions NiOUo
but the invention Of corporate organiza
ton and management, which has foun,
efficiency In cooperation. has gathered
capital from numberless sources ant
brought II together into powerful streami
of credit, capable OF performing hilbert.
undreamed OF tasks. and like other power
full streams liable also. once out OF con
troll, to do lrreparable damage"
Mr.. Vanderlip described tho position O
the railroads as follows:
The railroads have been unfortunat,
in having to meet two legislative theories
OF quite opposite and unrelated characte
and IN having both OF these theories ap
piled simultaneously. On the one sid,
there has been the theory OF contro
through tho fixing OF rates by commits
sion. the supervision OF accounting an,
she direction in the greatest detail OF thu
management; on the other side there ha
been the theory Of compelling competitio,
through the prohibition OF combination
and by forbidding cooperative agreements
one or the other OF these theories ma,
be right but both applied ut the sam
time cannot he. The result OF the appli
cation OF both OF these theories at one
has been TO bring the railroads into
most serious situation"
Danger Of "New Tyranny"
Eugene Lamb Richards, New Yor
state Superintendent OF Banks, spoke 4
part aS follnWa,