History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial TimesMyers, Gustavus
History
History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial Times
Myers, Gustavus
United States -- Economic conditions; Wealth -- United States
The artificial creation of the law called the corporation was so devised
that it was comparatively easy for the men who controlled it to evade
personal, moral, and often legal, responsibility for their acts.
Governed as the corporation was by a body of directors, those acts
became collective and not individual; if one of the directors were
assailed he could plausibly take refuge in the claim that he was merely
one of a number of controllers; that he could not be held specifically
responsible. Thus the culpability was shifted, until it rested on the
corporation, which was a bloodless thing, not a person.
FIELD'S PULLMAN WORKS.
In the case of the Pullman Co., however, much of the moral
responsibility could be directly placed upon Field, inasmuch as he,
although under cover, was virtually the dictator of that corporation.
According to the inventory of the executors of his will, he owned 8,000
shares of Pullman stock, valued at $800,000. It was asserted (in 1901)
that Field was the largest owner of Pullman stock. "In the popular
mind," wrote a puffer, probably inspired by Field himself, "George M.
Pullman has ever been deemed the dominant factor in that vast and
profitable enterprise." This belief was declared an error, and the
writer went on: "Field is, and for years has been, in almost absolute
control. Pullman was little more than a figurehead. Such men as Robert
T. Lincoln, the president of the company, and Norman B. Ream are but
representatives of Marshall Field, whose name has never been identified
with the property he so largely owns and controls." That fulsome writer,
with the usual inaccuracies and turgid exaggerations of "popular
writers," omitted to say that although Field was long the controlling
figure in the management of the Pullman works, yet other powerful
American multimillionaires, such as the Vanderbilts, had also become
large stockholders.
The Pullman Company, Moody states, employed in 1904, in all departments
of its various factories at different places, nearly 20,000 employees,
and controlled 85 per cent of the entire industry.[179] As at least a
part of the methods of the company have been the subject of official
investigation, certain facts are available.
To give a brief survey, the Pullman Company was organized in 1867 to
build sleeping cars of a feasible type officially patented by Pullman.
In 1880 it bought five hundred acres of land near Chicago. Upon three
hundred of these it built its plant, and proceeded, with much show and
advertisement of benevolence, to build what is called a model town for
the benefit of its workers. Brick tenements, churches, a library, and
athletic grounds were the main features, with sundry miscellaneous
accessories. This project was heralded far and wide as a notable
achievement, a conspicuous example of the growing altruism of business.
THE NATURE OF A MODEL TOWN.
Public-domain text, read in full here on John Shaqi.
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