'to the profitable purchase and sale o{ properties whoae management they may have in hand. They are also interested in making or marring v&rioiu movements of coalition or reorganization, and to this ulterior end it ia incumbent on them to <' manipulate" securitiee with a view to buying and sell-, ing in such a manner as to gain control of certain lines of securities.' Hence it is a rule of this class of business traffic to cultivate appearances, — to avoid, or sometimes to court, the appearance of sin. So that under this leadership the course of industrial affairs is, in great measure, if not altogether, guided with a view to a plausible appearance of prosperity or of adversity, as the case may be. Under given circumstances it may as well become the aim of men in control to make an adverse showing as a favorable one. The higher exigencies of the captain of industry's personal fortunes, as distinct from those of the corporation controlled by him, may from time to time be best served by an apparent, if not an actual, mismanagement of industrial afEairs. A convincing appearance of decline or disaster will lower the putative eamingcapacity of the concern below its real eaming-capacity and so will afford an advantageous opportunity for buying with a view to future advance or with a view to strategic control. Various other expedients looking to the like outcome are well known to 1 Ct Cluvtet m. ftbon.
the craft, besides bona fide mismanagement. A given line of securities may be temporarily depressed by less heroic tactics ; but the point in question here is the fact that under this system of corporation finance the affairs of the corporation are in good part managed for tactical ends