homemoney to purchasehow There are, of course, shining exceptions to this discouraging side of the story. Better produced, more frequent, informative, and readable Chairman's Speeches and Company Accounts are being produced in a growing number of instances, and shareholders themselves are beginning to realize their own interest in identification with organizations in which they own a part. They, too, have in the past been far too remote from the problem. There are even examples far too rare today of managements encouraging shareholders to promote the goods or services manufactured by the companies in which they are investors as well as to visit the factories or offices where such goods and services are prepared. Before the war many companies were run autocratically by an individual or by a small executive board with complete disregard for the interests of the shareholders as distinct from those of the company itself. The true profits were not disclosed and dividend policy was frequently not related to profits but rather to keeping the shareholders quiet. Many such businesses were successful but in a few cases the situation was abused and shareholders lost their money. The situation is now completely changed. The law has been altered to require more disclosure of trading facts. Further, the big increase in the shareholding public has forced recognition of the fact that democratic principles involve a full recognition by the management of the right of shareholders to be treated as partners in the business. Before the war there was considerable justification for withholding a large part of the profits from the shareholders and for reinvesting this money in the business. Any company must retain sufficient cash to maintain its place against competing business and this will usually involve a substantial retention of profits to supplement the cash provided by depreciation provisions. If, however, the management of a good company has big plans for expansion it will not be afraid to ask shareholders to put up more capital. It can be of immense help to any company to disclose freely how the business is faring, to pay generous dividends, and to ask the shareholders for more capital whenever there are developments which cannot be financed by a moderate retention of profits. The shareholders own the company and managements must recognize this fact and while it is true that the shareholders can always sell out апйчаге thus not nearly as committed as employees or customers it is no excuse for the neglect of their interests or for their own apathy presentday characteristic. It might well be claimed that the importance of management for the worker is selfevident and hardly needs elaboration. The theme of this book is, after all, leadership in management and the securing of responsible participation throughout a business operation is management's highest aim. Household