As a rule, promoters are not overpaid, since they must possess great skill, assume unusual risks, and stake their reputations on single ventures. There are very few professional promoters of high standing. The success of these men has been largely due to the active cooperation of great financiers. Such financial backing is a big element in the promoter's success.
13. Local promoters.—There are several other classes of real promoters and untold millions of would be promoters. Local lawyers and bankers attempt from time to time to secure support for local enter prises. Their success depends upon their financial ability and standing in the community. Space is too limited to describe here the work of the local pro moter. They are usually compelled to turn to the professionals, or to the financiers of the larger cities, for assistance in the promotion of any enterprise of more than local extent. Such assistance is not usually granted unless the control of the new enterprise, and the bulk of the profits from its promotion, are turned over to the financiers. The local man be comes a figurehead in such cases, with perhaps a small fee, or a position in the new company, to compensate him for his efforts.
14. Incorporated promoters.—The most modern type of promoter is the engineering firm, such as the Stone and Webster Corporation of Boston. Firms of this nature entered the business of promotion in the endeavor to find regular employment for their large and expensive staffs of experts. They are
much better able to investigate a proposition thoroly than is the individual promoter or engineer. They are able not only to investigate, but to supervise the construction and the early operation of enterprises which they promote. Such firms usually have a large capital of their own and possess the confidence of the banking fraternity. They are able, because of their own capital and the support of the bankers, adequately to finance enterprises which the indi vidual promoter probably could not handle. Profes sional firms of this kind constitute the logical type of promoter for such substantial and technical under takings as street railways, water, gas, light and power companies, and other public utilities.
They are not found in the field of speculative pro motion for the reason that they cannot afford to stake their reputations in such enterprises. Aside from public utilities, engineering firms do not engage ex tensively in promotion work because of the uncer tainties and risks involved. The individual promoter, backed perhaps by a small syndicate of rich individ uals or speculative bankers, will probably always con tinue to promote mining, industrial and other specu lative enterprises.