Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-04-11
FINANCE
Discussed by an Expert
Discussed by an Expert

The difficulties are net as gerat as
they seem. The most sOulless coFpOF-
ations are really made up CT men. II
a stockholders places facts clearly be-
fore the management with a certain
insistence and persistence. he win get
results. At first he will be told to sell
his stock if he does not like eendi-
tions. But 4 he, refuses to sell AID
shows that h" means business, he
will generaIty Ct Iesults.
Charles N. Cah;.t, Of Boston. a rel9-
lively small stakeholder in the United
States Steel Corporation. by persist
ence and resort to publicity, single
handed induced the greatest Of all
Corporated monStroSities to make rad
ical alterations in its treatment of
labor. Indeed Ebert H. Gary, chair
man of the company, met Mr.. Cabot
more than half way.
But the most striking example Of
what one stakeholder can do is af-
forded by the accomplishment of Mrs.
Joseph T. Bowen of Chicago. A state
investigation had disclosed the exist
ence of much needless disease from
dust and fumes among the workers
in the Pullman Company shops. Good
ness knows, this company had no ex-
cuse for not caring for its workers
in the most scientific = and humane
way Since 1875 the company has paid
an annual dividend of less than 8
per cent only once, and that was
following a year in which an extra
cash dividend of 20 per cent was dis
tributed. Since 1898 the company has
paid stock dividends Of 106 per cent
4 man who owned 100 shares of this
stock in 1908 and received $500 a
year dividends would now be the own
er of $40 shares, and would be get
ting 1920 a year in dividends, with.
out having invested a single additional
penny.
More than one-half of the company's
$3.50, 100000 of stock. upon all Of which
per cent is paid, is a dividend itself.
In other words this company is exactly
like the express companies in that its
huge capital stock as well as it's huge
dividends largely represents not in
vested funds but profits. Moreover
this concern nobly underpaid its por-
tiers for years, expecting the travel
ing public to make up the pay of these.
Woodworking men in tips, and hog
gishly charged as much for uncom-
Portable upper as for desired lower
berths. until the efforts of Congress
man Jim, Manahan, whom so many of
his SNUG citizens in Minneapolis re-
gard as an anarchist, put a stop to
these practices. Il
Perhaps Mrs. Bowen felt the same
way about 1t. At least she sent a
personal investigator to the Pullman
works, who reported, according to the
Survey. that there were 200 accidents
a month, that the company employed
only one surgeon for part of his time,
without nurse or assistant and with
out the use of a company hospital.
Moreover there was constant poison
ing in the paint shops. Mrs. Bowen
had rather large block of stock but
even at that the officers were at first
rather skeptical. But when she firm
ly presented the facts the management
showed a hearty willingness to i'm
prove conditions, and it's chemist rec
commended different form of lead
paint which is much less injurious
Indeed the management began to show
a great solicitation for its men, and
their working conditions have grown
better
Possibly few investors have the time
to take up such subjects, and few
possess Mrs. Bowen's interest in char
liable work. But there are none that
can not at least protest to the man
agement if conditions warrant, or that
can not write to newspapers and mag
aZines. Indeed there are few who
can not take the trouble to form To-
cal committees, demand information.
and send representative to annual
One thing is sure. the hand
writing is on the wall that society
is sure in time to put stop to care
less absentee landlerdism in corporate
ownership. Investors will do well to
ferestall a demand from society that
they assume responsibility for their
property. Such a demand may come
and violently. and a peaceful
adjustment to changing conditions
would be wiser.
The next two articles will deal with
the different methods Of securing to
the stakeholder his rights and privi-
Ieges.