New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-19
ABSENT DIRECTORS
CALLED TRADE EVIL
r. W. BabSOn Also Would
Stop Corporate Control
Passing by Will.
OPPOSES STOCK
VOTING BY PROXY
Tells Industrial Relations Com
mission How to Remedy Bust
ness Conditions.


Roger ". Rabson. publisher Of re-
ports on business conditions. who ad
mitted that he ate his bread out Of the
hand Of capital. told the United States
/ Commission on Industrial Relations,
/ which opened hearings in the Council
/ Chamber AZ City Hall yesterday. that
the control of big enterprises should
hot pass by inheritance TO the idle
sons of the rich founders any more
than the management Of a city or state
should go TO the sons Of the mayors or
governors.
/ He added that the absentee corpora
/ ton directors who SIT iu twenty story
buildings in the big cities and boss the
basic industries IN other parts Of the
country without interest in anything
but pushing dividends to the utmost by
fair means or foul. arc the chief cause
of labor unrest and unsatisfactory bus
mess conditions in the United Statets
Mr.. Babson, who is a slim. brisk New
EnglandCr with a fund Of cpigrams as
sharp as the point of his beard, gave
by turns the Socialists chance 10
groWl their satisfaction or the friends
Of capital a chance TO smile their ap-
proval, as he scattered his opinions.
with a fine disregard as 10 whom they
might please or displcase. Frank T.
Walsh, chairman Of the commission,
had TO command order several times.
4 Socialist? Oh My. No.
Mr.. Walsh. who looks like Governor
Whitman. was hanked on the one
hand by Mrs. James Borden Hartman,
q member Of the commission, dressed
in deep mourning. but alert and atten-
tive 10 the testimony. and on the other
by the most laxative commissioner.
Austin Il. Garretson. Mr. Garretsor
represented labor. He is a rawboned
lowan, former president Of the Order
Of Railway Conductors. and al one time
a conductor m the Middle West He
followed the argument closely. taking
notes on yellow half-sheets Of paper.
Then, when he had his turns AZ cross
examination. he held his sheaf Of notes.
turning them over with frequently
Wetted thumb. AS he used TO turn over
the mileage tickets in his conductor
days. He brought the days session 10
q close with an cpigrammatlc flourish
from Mr.. Babson.
II am not a Socialist" Mr.. Garretson
interrupted himself TO say, fearing
some Of his questions might make that
impression.
NO one ever admits he is one re
torted Mr. Babson. "Most people give
a definition Of a gentleman so as to in
clude themselves, and most people give
a definition Of a Socialist so as TO eX-
clude themselves"
well. ! belong 20 that class YOU said
you belonged to while ago when you
said people called you crazy came
back the irrepressible Garretson.
THE chief handicap labor has is in
absentee ownership Mr.. Babson said
in opening his testimony. "The attl-
tude of capital is rather one Of indif-
ference TO the welfare of the workers
rather than Of antipathy for labor
The bankers think they have done their
duty when they have financed an en-
terpriSc. As long as the dividends
come the directors are satisfied and
never think of changing the methods
OF management or of increasing wages.
Limit on Stock Voting.
As TO the inheritance Of control by
the sons of the founders Of big busi-
ness enterprises. he thought that might
be prevented by a law that should
allow the testator TO dispose Of his cor
porate property as he saw INT, but
should prohibit the passing of stock
voting power as a part of the legacy.
He said he believed just as much in the
democratization of industries as OF
government.
Voting Of stock by proxies should
be done away with" he said. "and the
voting should be done at the mills.
And a good plan for corporations to
adopt TO insure themselves against la
Dor troubles is to give labor represent
alton on the board of directors. Labor
is not fighting for wages, but for con
troll"
He particularly displeascd the So
cialists when he said that the deter
mining factor in wages was the law OF
supply and demand. and that labor was
as much commodity subject to this
as iron or coal or wheat. II supply
and demand. he said, were allowed TO
operate unimreded there would be no
need either for labor unions or for
trusts. Proft-sharing plans, he said
were given by corporations simply as
ouieting powders to labor and not for
business efficiency.
about all any man deserves is his
wages" he said. ct is brains that
make the profits. Henry Ford is not
running profit sharing plan. He told