Evening star., 1926-11-18
MEN AND MONEY
By NJ. S. Rukeyser.
(Copyright. 1921

Tho idea Of Wall Street control Of
american industry has never been
popular with the people, especially in
the progressive West.
outside critics have sometimes as
crlbed more power to the bankers
than the latter believe they possess.
The financiers themselves say that the
theory that they pull the strings and
that corporation presidents in reality
are no more than clerks is myth.
The bankers also assert that their
power lies in understanding economic
trends, not in creating or naanipulat-
ing them.
Truth probably lies somewhere be-
tween the two extreme poles. but II
cannot be summed up in a formula.
Sam A. Lewisohn gives an inside
picture of this situation as he sees II.
Mr.. Lewisohn speaks as an Industrial
list. He Is vice president OF the
Miami Copper Co., but his interests
extend beyond his own business. AS
chairman Of The board Of the Ameri.
can Management Association. Mr..
Lewisohn has a first hand contact
with Industrial leaders throughout the
country.
LewisOhn on Banker Control.
Mr.. Lewisohn presents this expert
testimony concerning the subject OF
banker control:
"The question of leadership fire.
quently raised Is, who gives the cues
that motivate our executives? one
group of persons, not familiar with
the way business Is actually con-
Quoted, has a romantic theory that the
reactions of industrial executives are
in response to those who give them
their bread and butter-the capital
lists There is an idea current IN
some quarters that action towards
labor is controlled by such a definite
capitalistic attitude that when an ex.
exutiye acts, he does so as sort ol
economic automatOn, instead OF as an
Individual.
"Of course, there is certain
amount Of this. In fight against the
closed shop in some city, especially III
a Western community. all employers
would probably stand together. lres
would be backed BY the merchants
and bankers. And, OF course. there
have been wider movements, such as
those for the American plan cam
paign. There are waves or propa.
randa Of this kind based on general
prejudice against unionism anu
against independent action on tne
part Of the labor group. nota oly
among people of large means, but also
Executives Are Factors.
There is, however, unquestionaDiy
q great deal of exaggeratlon In TINS
idea. The people who entertain TINS
theory have a vision that wall street
makes decisions on all questions. Inc
corollary is that If Wall Street should
suddenly change its views the execu-
tives Of the plants in the country
would at once change theirs. Inc
notion makes 1t appear that the obsta-
Gle to better labor relations Is solely
that Of a small financial oligarchy:
If that were true our problem would
be much simpler. 1t would involve
solely changing the character or the
control Of industry and not changing
the traditions, attitudes ana person
alities Of production executives.
THE romantic tradition takes as
it's premise that the difficulties or the
labor problems are due either TO a
reactionary policy on the part OF the
financiers or to utter neglect. how
ever local production executives are,
in fact, the determining factors in
local management. II the financial
group is interested in anything 1t is
in profits. And there is no surer way
Of disturbing profits than by disturb
ing the existing managerial group VINO
are making these profits.
THE idea that the banking group
controls labor policies is great over
simplification. which may be Illus
trated by the following example.
There is a prominent banking house
which Is interested in the Baltimore
and Ohio Railroad. 1t is also inter
ested in the Union Pacific Railroad.
Both are very important railroad sys-
TENS. 1t would seem that the inf1u-
ence Of this banking house should
be similar in both railroads.
Railroad Policies Different.
But the railroads have radically diff
ferent labor policies. The b. & 0.
Railroad has introduced an interest
ing experiment In working out CO.
operation in the shops between union
committees and managers The Union
Pacific has refused to treat with the
unions and instituted an elaborate
plan OF employe representation. Bank !
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