This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
On the whole, there seems to be reason for believing that-corporate organization is tending to increase in efficiency. Shareholders and the investing public are becoming more and more acquainted with the evils of careless and irresponsible direction of their properties. They are gradually becoming acquainted, also, with the more common methods of exploitation and are insisting upon remedies. The only real and permanent remedy for corporate inefficiency lies in the development of higher standards of business morality. Directors should be sincerely convinced - as perhaps a majority of directors are - that they are in a position of trusteeship which they have no right to accept unless they intend to fulfil all its duties vigorously and conscientiously, and that next to actual dishonesty, the most serious charge that can be made against a director is negligence; in fact carelessness in handling other-people's money is itself a form of dishonesty. When this truth is so widely recognized and so thoroughly driven home that it cannot be lightly overlooked, the corporate organization will begin to achieve its proper ratio of efficiency.