A CRITIC OF DIRECTORATES

Wanganui Chronicle, Volume 80, Issue 127, 31 May 1937, Page 6

A CRITIC OF DIRECTORATES

REFUGES FOR OLD MEN ■This is the age of youth,” is a common saying to-day, but much power in all manner of affairs —particularly financial—is still held by men who have passed three-score and ten. Some terse comment on this matter was made by Mr F. W. Eggleston, a Melbourne solicitor, in giving evidence before the Banking Commission. "Control in business is exercised by men of force, but with little insight and breadth of vision,” he said. “They are nearly always old men .Melbourne and Sydney are ruled by very old men. They do not favour youth or devolve responsibility. Economic affairs in Australia are under the control of men of routine minds who make money very successfully when prices are rising, but are at a complete loss when things are falling. “These conditions are improving, but in Australia the economic system does not apply the correctives to errors which would be applied if men of intelligence and insight were in control. One of the most conspicuous illustrations of this is the composition of the directorates of a very great number of companies. Directorates seem to be regarded as refuges for ver/ old men. The result of such conditions is that, although in Australia there are the elements of a very stable economy, we have had same terrible financial crises caused by cumulative fluctuations, the danger of which should have been obvious to every intelligent business man.”

Mr Eggleston declared that a community in which business concerns were controlled by men of ability and breadth of vision, who had the maximum of statistical data from which io make decisions, would evolve a much sounder economy than a Statecontrolled community, in which the big decisions were made by politicians, who would be influenced by all sorts of political considerations and •'ontingencies.