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THE PROFESSION OF BUSINESS Croker, it wielded authority only over

the boroughs of Manhattan and the HE soldier is, relatively speaking, Bronx. For a generation Brooklyn and unimportant in American life. As

the outlying suburbs were particularly compared to other countries and proud that they had successfully reother times, even our statesmen, with the sisted Tammany domination. Several possible exception of our Presidents, are

years ago, however, Tammany “crossed not held first in our estimation. In spite the bridge.” For the last two years of all convictions under the Sherman Law, it has even controlled the New York and the many disclosures of business lob- State legislature. In the Dix adminisbies, a “successful business man" comes tration Mr. Murphy, the Tammany leader, near to being our national ideal.

wielded an important influence in the We are beginning even to utilize busi- Governor's chamber. Last fall he nominness in fiction in a way that previous gen- ated a candidate who apparently assured erations have not done. Always there him complete domination over the exehave been “business men” in literature. cutive department. The fact, however, Shakespeare wrote of Antonio and Shy- that Governor Sulzer tried to set up for lock, but it was not the technique of their himself, in defiance of Mr. Murphy, has business that he chose to portray. To precipitated the most scandalous political glorify merchandizing and to put in a novel situation New York has known in a the science of salesmanship is a thing that generation. As a counter move against is probably peculiar to this age. Neither the independence of his old time ally, Mr. soldier, sailor, poet, nor politician is Murphy has laid hands upon the power of looked upon with such regard as the impeachment. Tammany, in its long American business-man. And this should and unsavory history, has utilized various have its good effect. The more esteemed agencies for its own profit, but this is the a calling the better its standards. A first time that the highest judicial trination that looks up to its industrial bunal in the state, that organized to conleader puts a premium upon making busi- duct impeachment trials, has ever been ness a high calling. Already, at least two

utilized as part of its machinery. colleges, Harvard and Dartmouth, have

And this, after all, is the aspect of the business schools, not so much to teach the matter that has the largest public constudent business practice as to give him a

cern. The guilt of Governor Sulzer on this broad business vision and a high business count does not particularly matter. That he standard, such an attitude toward his has been unfit for the high office of Govercalling as is common among the profes- nor has long been evident. But his unsions that require special training.

fitness is not the reason for his impeachIn a way we are becoming the Chinese ment. The real reason for his impeachof the Occidental world. We are doing ment is his refusal to hand over the powers now what they have done for centuries, of his office to Tammany. glorifying the merchant and neglecting Other episodes in the recent New York the soldier who with us for centuries past legislative session emphasize this point. in fact and in fiction has been the domi

In the early days circumstantial charges of nant man of our national ideals.

bribery were brought against Senator

Stillwell. The proof was abundant against A NEW DEVELOPMENT IN THE Mr. Stillwell but the Tammany legislature BOSS SYSTEM

acquitted him. He is now serving a term

in Sing Sing, sent there on conviction of HE present political situation in the identical charges for which the Tam

New York is, at least temporarily, many legislature gave him a clean bill of

an unpleasant exception to our health. A few months ago charges were improving political conditions. It has been preferred to the legislature against Jusa long time since Tammany has had so wide tice Daniel F. Cohalan, of the Supreme an ascendancy as it has now. Under Mr. Court. The case was similar to

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Governor Sulzer's; certain offenses said this condition and tried to remedy it, but to have been committed by Justice Coha- he failed to win the approval of Congress lan before his election to the bench were for his plans. held to disqualify him for judicial office. Mr. Garrison and Mr. Daniels have. The legislature, after listening to the therefore, before them an opportunity to evidence, “vindicated” Justice Cohalan. put the United Service on a better footThe chief point in which his situation ing and at the same time to save the differed from Mr. Sulzer's was that Justice Treasury the large sums of money that Côhalan was still on good terms with are now being wasted. How the SecreTammany.

taries meet this issue will give a fair indiHere, then, is a political organization of cation of their aims and ideals in the adill repute that uses the high ends of justice ministration of their departments and of to "vindicate” those who remain loyal their ability to gain the necessary coöperato it and to "impeach” those who en- tion from Congress. deavor to break away. And Tammany has had the hardihood to force this situa

THE APPOINTER-GENERAL tion upon the public attention immediately before a city election.

N THE first 152 working days since There was never a better time to take Postmaster-General Burleson began New York City out of Tammany's hands. his administration he appointed 5,705 It has drawn attention anew to its own postmasters. Of these 2,203 were Presishortcomings in its vengeance upon Mr. dential appointments that have to have Sulzer. This is no defense of the Gover- the confirmation of the Senate. In other nor. He was not a proper candidate to words, the director of a great transportabegin with, and his nomination and elec- tion agency that is vital to the interests tion by Tammany are just as good proofs of the whole country has had to spend of Tammany's unfitness to rule as are much of his time looking over the qualifiTammany's motives in the impeachment. cations of the privates in his army — not

only the qualifications of the thirty-eight FOR THE GOOD OF THE SERVICE

a day that were given jobs but two or three

times that many that had to be refused. ECRETARY GARRISON has com- This is a waste of his time and a detripleted his tour of inspection of the ment to the service. To hire a postmaster

army posts which are scattered who is to get $3 a day, or about carpenall over the United States. Many of them ter's wages, necessitates consultation beare relics of the Indian Wars or even of tween the Postmaster-General and one or Revolutionary days. The General Staff two Senators, and also probably with a of the Army is on record that most of Representative. And then when the job them are of no military value. The Sec- is assigned it is necessary to make the retary himself, even before he made his President of the United States go through tour, realized that there was urgent need the red tape of appointing the man and to of cutting down the unnecessary expenses make the Senate of the United States perof maintenance and that garrisoning the form its august function of confirmation useless posts meant the division of the Of course Postmaster-General Burleson army into such small units as seriously to did not originate this plan nor can he do hamper its efficiency.

away with it without the approval of ConIn the Navy a similar situation exists. gress, but it would be a welcome sight. There are a number of useless and expen- after his improvements in the parcel post, sive stations scattered up and down the to see him attack this long standing abuse. coast, from the yard at Portsmouth, N. H., Such practices as these, and the fact that to the station at Charleston, S. C. They, recent Postmaster-Generals have been too, are survivals of past conditions or of also campaign managers, give to the political pull.

post office a political aspect which for the Secretary Daniels's predecessor knew of good of the service should be eliminated

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A FINANCIAL TALE OF TWO CITIES

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HIS is a financial tale of two went on to explain that, in the past, it cities written for the investor had apparently been deemed unnecessary in municipal bonds.

to maintain the sinking fund for which One of the cities is Atchison, provision had been specifically made; that Kans. Though

among the

"on account of a temporary stringency in Idest in the state, it has never been ambi- the money market" Atchison had not ious to become a metropolis. Its citizens been able to raise the necessary funds to ike to boast of the substantial character, meet the maturing debt; and that, thereather than of the rapidity, of the city's fore, the best the city could offer was new rowth, both in population and in prop- bonds in exchange for the old, "with the rty values. Its population by the last same rate of interest that had satisfied for ensus report was about 16,500.

thirty years." This, the mayor thought, On July 1, 1883, Atchison issued ought to be acceptable to every one under 6266,950 worth of bonds to pay off some the adverse circumstances. old indebtedness. These

These bonds bore But he had reckoned without his host. nterest at the rate of 4 per cent. a A New York banking house, into whose year, and were to run for thirty years. hands some of the bonds had fallen, lost Among the provisions of their issuance no time in making it plain to the city was one which made it a duty of the city officials that new securities would not be Officials to raise every year, by means of acceptable under the terms offered. It was axes, a sum of money large enough not pointed out that, though the 4 per cent. only to meet the interest on the bonds but interest might have been satisfactory for also to create a fund for the payment of many years after the bonds were issued, heir principal at maturity.

under present conditions investment Presumably, all the legal preliminaries funds were demanding and receiving a necessary to making an issue of this higher rate than that. In fact, it was kind were properly attended to. The declared flatly that new 4 per cent. Atchiponds were bought as an entire issue by son bonds were not worth par. bankers who, in turn, parcelled them out It should, perhaps, be explained that the n several smaller lots to investors. For fundamental difference between the kind vears they were forgotten, except as their of “refunding” proposed by the mayor swners were reminded twice every year of Atchison and the familiar kind so freof the interest being “due and payable at quently resorted to by the great railroad the office of the City Treasurer at the City and industrial corporations lies in the of Atchison,” or, perhaps, when they fact that the latter always offer to the occasionally passed from hand to hand in bondholder the alternative of receiving private business transactions. Had these cash payment if he is dissatisfied with the municipal bonds been true to family tra- terms of the new securities, even though dition, they would have ended naturally they may — in fact, practically always do

quiet and uneventful life -- held in high - bear a higher rate of interest. regard by investors - exactly at the end Two ways of solving Atchison's finanof three score years, and there would have cial problem were suggested. First, raisbeen no occasion to mention them here. ing the necessary funds by making an

But as July 1, 1913, drew near - the appeal to the civic pride of local bankers; day on which the holders of these Atchison second, fixing the rate of interest on the bonds expected to be able to turn in their new bonds at 5 per cent. and, perhaps, securities for money — something unusual providing for their early maturity. It happened. A notice was sent out by was recalled that the latter was the kind Atchison's mayor that the city couldn't of solution which the state of Tennesse: nay off the maturing bonds. The notice had sensibly and successfully applied to a

similar problem not very long before. But responsibility in safeguarding outstanding the discovery was made that in Atchison's bonds. This might happen in almost case it would be necessary to apply to the any American city once in a while. The state legislature for authority to issue interesting thing for the holder of municbonds at a higher rate, and it was too late pal bonds is to know what guarantee be to take that action, because the legislature has against such actions. had adjourned. There seemed, moreover, The officials of Atchison were made by a to be insurmountable obstacles in the mandate of the highest court of their state way of resorting to the other suggested to see the error of their ways and it tock solution. So there was nothing left for less than three weeks. That is the imthe bondholders to do but to appeal to the portant point of the story. It will doubtKansas courts.

less turn out that the city's credit has been This was done, and within twenty-three saved. And the unique record for safety days after July 1st, the date on which pay- of municipal bonds as a class - a record ment of the bonds should have been made, which has demonstrated their peculiar the Supreme Court of the state of Kansas fitness to be treated as the groundwork of declared that Atchison could not officially permanent investment — has been save fix the amount of taxes for the citizens from an unseemly blemish. to pay for the running of the city during The other city is Fargo, N. D., one is the next few years unless it included taxes the same general class as Atchison, witt to take up the defaulted bonds in annual about an equal number of inhabitants, and instalments, with 4 per cent interest added an equal amount of wealth in property

The effect of this Supreme Court deci- values. Its part in the tale is briefly toid. sion was to bring about a radical change in as suggesting another element that enters the attitude of Atchison's officials and to in an important way into the security of turn them back upon the second suggested municipal bonds. solution of their problem. Immediately Late in 1912 the mayor of Fargo made they communicated with the holders of the extraordinary announcement that the the old bonds, asking if, instead of receiving city had declared a dividend of 6 pe their payments in annual instalments, cent. At first no one seemed to undethey would not be willing to take in stand what was meant, but the explanaexchange new twenty-year 5 per cent. tion was offered soon afterward that, dur bonds, which would be provided with a ing the year, the city had saved about sinking fund large enough to enable the $10,000, which it had been decided : city to retire them before maturity. refund to taxpayers in proportion to the:

One response to this communication last assessments. This dividend was pas brought out the moral of Atchison's in cash a few months ago, and it stands 23 experience, which has been related here in an exceptional achievement in efficiency a good deal of detail because it is unique. and economy of city administration. In it the suggestion was made that in the It is, of course, not to be expected that light of all that had happened when the Fargo's example can be followed generall old bonds matured it could scarcely be by other cities under similar circumstances expected that investors would place entire But if the declaration of actual dividents confidence in the city's attitude toward to taxpayers does not become a part of the its financial obligations. More assurance routine proceedings of our "city fathers on this point was needed to get people to there are plenty of other ways of putting accept new bonds, no matter how satis- economy and efficiency in evidence, and factory their general terms might be. thus giving additional investment prestig

Atchison was able to point to such things to the whole class of bonds that are backed as a low total and per capita debt, a high by taxes, the kind of "earnings" which market value of taxable property back of must be paid, as the Kansas Supreme its bonds, and a substantial amount of Court emphasized by the decision which assets owned. Yet a single administra- it rendered with such swift justice in the tion left room for doubt about its moral case of the Atchison bonds.

HE WONDERFUL RECORD OF THE FACTORY MUTUALS WHICH LOSE ONLY ONE

TWENTIETH OF ONE PER CENT. OF THE PROPERTY THEY INSURE

BY
FRANK WILLIAMS

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LEVEN years ago the “big fire” Companies, with headquarters in Boston. broke out in the city of Pater. They make no attempt to secure business, son, N. J. A northwest gale in and any mill owner is eligible for mema temperature of twenty degrees bership if he complies with their strict

above zero pushed a wall of rules of fire prevention. They charge ame a thousand feet long more than approximately the same premiums that hree quarters of a mile. Six million other insurance companies do. But after ollars' worth of property burned up. they have paid the cost of doing business, ust as the fire reached the richest prizes of inspection, and the fire loss, they f all, the silk mills, it stopped.

return what is left to their members in The fire companies of Paterson and all proportion to the premiums paid. This he surrounding cities were already de- rebate now amounts to more than 90 eated, the streets were full of frozen per cent. of the premium. ose, and people in the business and When the Mutuals were formed, the esidence districts just beyond the silk insurance rate on factories was "a dollar hills were only waiting for those somber a hundred.” The mill owner with a uildings to light up as a signal to desert $100,000 property had to pay $1,000 a he city. But the silk mills remained year for fire insurance. By taking a lark. The fire did not reach them. few simple precautions the Mutuals were The mills themselves, with their own fire- able at once to reduce the rate to 50 umps, finally beat off the attacking cents a hundred, and, now that they have onflagration when it had burned to made a science of fire prevention, they vithin fifty feet of them.

have a rate of only four and one half It was a miracle, but like most modern cents. That means that the insurance niracles it had a reason behind it. The on a $100,000 building is $45 a year. The eason the silk mills did not burn was insurer's premium on its face is far more hat they were insured in the Factory than this, but the rebate brings the net Mutuals, and they require preparation payment down to this insignificant sum. gainst every fire possibility.

Of course, the reason for this is that Most people will ask at once: What the mills insured, and therefore inspected, ure the Factory Mutuals?

by the Factory Mutuals very seldom have They are merely associations of mill fires. While almost all other kinds of ywners who insure one another. They buildings are burning up faster than ever tre not run for profit. They are only before, the mills and foundries insured in o insure the mills and factories of their the Factory Mutuals are having only one nembers, but in doing that they have fire where they formerly had from fifteen ransformed buildings that at one time to thirty. The use of automatic sprinklers vere considered the worst fire risks into has in itself reduced the number of factory he safest kind of buildings in America, fires to one eighth, and the automatic o far as fire is concerned. They have sprinkler owes its existence to the Facproved again the old adage that an ounce tory Mutuals. Their experiments with of prevention is worth a pound of cure. sprinkler systems over a long course of

There are nineteen Mutuals in all, years led to the invention of the automatic but for convenience they have formed sprinkler. In fact it was forced by them the Associated Mutual Fire Insurance on a reluctant public. All the mills

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