12. New York Stock Exchange.—The New York, Stock Exchange is a voluntary association of men in terested in the purchase and sale of stocks and bonds. Its transactions, amounting daily to many million dol lars, originate in all parts of the country. Some ex perts have estimated that less than half its business originates in New York City. The history of the Ex change reveals a constant effort on the part of its governors to bring its methods up to the highest pos sible standard and to prevent any practice or custom which will tend to give wrong impressions to out siders. No code of ethics so-called has been adopted, yet an unwritten code exists which no broker dare violate. The governors of the Exchange seem to realize fully their responsibility to the public, and are not slow to rule against any evil or dangerous prac tice that is brought to their notice. It is doubtful if the affairs of any other business organization in the country are managed in accordance with an ethical code of finer quality.
Most men who lose money by dabbling in stocks are victims of their own greed and folly. In order to save such men from themselves, if that is possible, the governors of the Stock Exchange have adopted a very strict rule with regard to advertising done by its members. In the words of Mr. William C. Van A_nt werp speaking for the governors of the Exchange: We have said to the members, "you must not only put your advertising on a dignified plane, but you must not use anything in the nature of catch phrases or alluring devices designed to influence the judgment of those to whom it is ' addressed. You may advertise as generously- as you please; supply the public with as much educational matter as you choose; offer what you have for sale, but do not attempt anything remotely approaching the business of a tipster." 13. Ethics of directors.—Not many years ago the board of directors of a large industrial corporation suddenly decided to stop dividends. Before final ad journment every member of the directors present bad excused himself under some pretext or other and tele phoned orders to his broker to sell stock.
• It was considered conventional and proper for a man at the bead of a corporation, the "insider," to take advantage in the market of all secret informa tion. It was usual for those in charge to organize private firms to sell to and buy from the large cor poration on terms not at all to the advantage of the latter.
But big corporate business today is, as a rule, done on strictly ethical principles. Never before was there such a keen feeling of responsibility to stockholders, customers, employes and the public. Little real "in
side information" exists. In fact the public is promptly informed as to developments in most cor poration affairs.
14. Ethics of a great industry.—The United States Steel Corporation, the largest industrial organization in the world, has done much to lift ethical standards in business. Assailed by government judicial action, no competitor could be found to malign it ; indeed, all wondered at its helpful spirit of cooperation. No employe could give material evidence of deliberate, unfair treatment. The attitude of the corporation in regard to competition and its employes is expressed in the following extracts from speeches made by the chairman of its board of directors: In the days gone by, never to return it is to be hoped; it was a common practice for competitors in business to act in accordance with the rule that might makes right, and on the basis that permanent success could be reached and enjoyed only by those having the greatest strength and power or the longest purse. As a result, it frequently happened that the weaker or poorer were crushed and destroyed. A com petitor was treated as a common enemy. Methods for his defeat and overthrow were used regardless of good morals or good policy. Possibly, in some instances, this redounded to the pecuniary advantage of a few, tho even that is doubtful. Certainly, it was not permanently beneficial to the general public ; and, from the standpoint of good morals, was a shame and a disgrace.
In passing, it is proper to say that in the lona run an unreasonable destructive competition, such as Chase re ferred to, is prejudicial to the best interests of all concerned, including the manufacturer, his workmen, his customers and the general public.
We do not need the sUggestions of any one in order to make up our minds as to what we will do when these ques tions of ethics and economics and politics are brought to our attention. We should be the leaders and not the followers. We should undertake to place ourselves on a plane much higher than the demagogue or the reformer who attempts to assail us and who pretends to be the champion of the laboring man. We do not need any suggestions from people like that. We know what our duty is, we know what the rights of our employes are, and we feel obligated, and take pleasure in knowing that we are at all times doing all we can for the people in our employ in keeping their wag,es up and in bettering their condition and keeping them in a posi tion where they may enjoy life.