who hold the discretion in industrial afEairs is removed by one degree from that of the concerns imder their management, and by two degrees from the interests of the community at large.
The business interest of the managers demands, not serviceability of the output, nor even vendibility of the output, but an advantageous discrepancy in the price of the capital which they manage. The ready vendibility of corporate capital has in great measure dissociated the business interest of the directorate from that of the corporation whose afEairs they direct and whose business policy they dictate, and has led them to centre their endeavors upon the discrepancy between the actual and the putative earning-capacity rather than upon the permanent efficiency of the concern. Their connection with the concern is essentially transient ; it can be terminated speedily and silently whenever their private fortune demands its severance. Instances are abimdant, more particularly in railway management, where this discrepancy between the business interest of the concern and the private business interest of the managers for the time being has led to very picturesque developments, such as could not occur if the intereste of the man-
the readier vendibility of modera corpon[« capital is so ctLaracteriatlo and canBequenllal a factor in busiDess and ooDtrasts ho broadly with Ibe old-fafibiODCd biuiineaH methods that it may fairt; be Bpaken at aa vendibility par excellence. The "holding company" ia the matoie dsTetopmeut of this traffic in vendible capital in industrial b
agement were bound up with those of the corporar tion in the manner and degree that once prevailed. The fact is significant that the more