844 THE AMERICAN JOURNAL OF SOCIOLOGY
unreasonable to suppose that men can be found who are willing to serve as trustees of the public in controlling other important institu- tions. Why not ? Some of these public works are as essential to the social welfare as schools and churches, and though they are economic institutions, there is no valid reason why the social motive may not be adequate to provide the service. Experience in one instance in Indianapolis has not been disappointing. It may be questioned, how- ever, whether satisfactory trustees can usually be found or sufficient capital secured for the organization, on this plan, of entirely new enterprises those which have to create a demand, those whose social values are not yet appreciated by very many people. Nor may it be commonly possible to secure suitable trustees in very small towns. But for the supply of felt needs in the larger municipalities it does not seem that an efficient organization should ever be impossible. To secure it, however, it is necessary that the initiators of the movement shall be disinterested and intelligent men.
2. The immediate management of the concern is in the hands of directors chosen annually by the board of trustees. The compensation of the directors is " fixed at the expiration of each year's service by the board of trustees, upon a showing made of the services rendered." The directors are restricted in their power to contract indebtedness, and no indebtedness of any kind may be contracted except upon con- sent of two-thirds of the board of directors. The division of labor among various committees of the directors is quite complete, but the approval of the board of directors is required before the action of the more important committees is binding.
A further precaution will be taken in future applications of the gas trust plan ; viz., that instead of making the publication of the accounts optional with the trustees and directors, it is to be provided that a report must be filed semi-annually with the city comptroller, and that the city comptroller may inspect the books of the company at any time.
3. The necessary capital is secured by popular subscription, the shares being fixed at $25. It is necessary that such movements shall be backed by local capital, and it is desirable that as many people as pos- sible shall be directly interested in its success. Incidentally, a splendid means is provided for short-time investment of savings by persons of all classes. It is provided that the dividends upon the stock shall not exceed 8 percent, yearly, and that the amount invested shall be returned to the investors as soon as possible. The shares of stock will still be owned by the stockholders, and the necessary legal fiction of ownership
