Show I i Babson Discusses Effect of Law Suits On Business and Need of Legal Ethics D PARI PARK PARE Mass Mus M July It 16 f Hoger W V Babson Dabson In his weekly discussion of af business c conditions today taday brought au out a 0 factor in the oi which many have felt for tar some samo time but low tew have had the th call course courage raga to men men- mention tion n He H refers refer to the th effect of af law suits the delay of o court caun cou and the ef- ef ef effect J feet of ar o appeals on un business Us statement S 'S Is as ae follows E i NEW ENGLAND CONDITIONS I In cw The Tn business business- situation England hoe has b been en very pec for tor the tho th past two or ar three thre years ears Reports of af the Boston Dastan Chamber of o a Commerce have ha b bt- bt n satisfactory and many things thins indicated that Nely EnGland England- should be ba b prosper prosperous prosper ous ous aus but but this prosperity property has not been evident The Th unsatisfactory condition In New England has h been laid to many causes which we e find rind to be b unreal Personally I believe th thit t certain law playa largo large i role rale rol in the th cause caus of at New V e England's ent depression I 1 refer to the tho th Sears Scars lawsuit law suit ault the New oil all suit similar sul sully sulta against pram I n nent nt bankers banker and business men The assets assels oe at o New ew England n have haTO ha vo never ne b been en ma material nut rall or Intangible New England has no fertile soil soli like the lh ceo ceo- central cen central west est or 01 bright sunshine lika the Pacific caR coast st or ar minerals and forests U like ether r sections of af the cau country New e England's assets hate hae been her Integrity initiative Initially It a was wai not New England's natural l es which built the tho th rA railroads ls of af the th uti west but rather her thrift and enter enter- enterprise enterprise prise prill which was directed by a few Y prominent men Enterprise Is R a avery very Intangible thin thing nine and grows growson rowson on an encouragement only anly When Its leaders are ar sued or ar ment their pep called to-called Is gone gane conand filth Ith It it and New ew England goes What Is true tru or of if New England is b balso also more mare mor or 01 lees true tru of af every ever section and every Industry I I JUSTICE STICE RY I This of af course does not mean that law suits stilts should be b suppressed suppressed sup- sup suppressed pressed and Judge judges should not nat con can convict con convict vict simply because law suits hurt business Justice comes come before everything else Is and the th courts Which render ronder should c the respect of af the holo community Whether let her or ar not nat such decisions temporarily hurt busi- busi business nes ness I 1 personally feel that that all the judges judge with the the Willett arid and N New NV V England oil cases especially judge Jude Anderson have rendered a distinct service The basis of ot all 11 prosperity Is Jus- Jus Justice justice lus tice and this we must have hav above all else I 1 am simply making the point paint that law suits hurl hurt business and retard prosperity Law Lay suits aults hurt by taking meila mens men's minds off arc their real work wark and them to efforts effort which ate ac not nat constructive What America needs today taday Is la to have hav business men spend more moro time consulting engi engi- engineers engineer fleece neer and scientists ts and less time consulting lawyers lawyer and nd doctors Law suits suit hurt business by un un- un undermining un the th morale of af This Is especially true when ono one onor or ar more mare mor of af the th e or ar a competitor Is Involved In tho In suit Law suits hurt business by dle- dle discouraging dis Initiative Most suc- suc successful sue 1 business men are ar not nat In business for far the th money maney they thy get gel out of af It but because they enjoy the tho work wor If It the thi enjoyment of the work Is killed they either cither ye re tir rc-tir tire tiro or ar else els take tak an Inactive In- In Interest interest In Interest terest from tram which Inactivity the community as a a whole suffers USES C Of or 1 El rss 10 X causes of af de dl de- de depressions There are ar m y but these thue th e causes are arc largely intangible rather lather than tan than tan tan- tangible gible The ordinary barometers of business such ouch foS as 3 bank clearings railroad ss s and foreign trade etc ete are ar barometers and have hav nothing to do with Ith the tho causes of af changes chance The causes ot of is s changes ar are largely spiritual and psychological caC cal clIl The Th Inefficiency dishonesty and extravagance extra of ot a period of 01 prosperity caUd causes S the tho th depression that follow while the tho th righteous righteous- ness flees nellS Industry and thrift developed during a period of of- of depression pro pro pares ro- ro pares the foundation tar for the tb next p period of at o prosperity prosperity The Th tad fact that the tho th larger lar er number of af o law lawsuits lawsuits lawsuit suits coma camo corn In p latter part of af periods of af prosperity Is very sig- sig significant lc In this this- this connection It-Is It It It IS very seldom that Judge Anderson onor or ar his associates are aro called upon In the the th early early early early- part of af a a period of af prosperity t to m no such a deci- deci Mon sian lon as a they dl did All All of af this that that Instead of f business men blamIng the flU tl courts for tor administering justice they they should so o conduct themselves that law suits suit will III not nat bo be b brought braught against them However should a 1 law suit be brought against them the lh proper conduct of ar their business should then them put them to toa Ina in inn n a position where they will no na los no-los lose lase their cases case When hen a man Is 1 I Innocent a law suit does daes doe not nat lu- lu in so much with his busi busi- business business ness Therdore Therefore Ie IC lawsuits law suits suit area are a great damper r on an on should not nat business men make mak a great effort to so conduct them them- themselves themselves selves that there thero will bo be b fewer such law suits culls In the tho future 11 1 This brings me m to the th proper function of at law lawyers ers I LAWYERS WYE S IN IX BUSINESS ESS Should lawyers be employed so much as they thy are sir at the tho present time In connection with nith the mak- mak makIng making mak-Ine mak Ing of af o money maney The commercial commercial- commercialization commercialization 1 Uan of at law may be bo very detri detrimental mental to this title country surely the legal profession ia for tor fora tora fora a great treat man many troubles trouble which we wc ho have vo tada today Many m men ii are r mat U- U as is lawyers lawyer when they really are arc b or ar promoters Some Same of af the great reat law firms are not nat law offices ces but are ar really banking houses hauses I 1 repeat that the commercialization of af of the fh profession sion may be responsible for lar lota n a great creat deal ot of our financial trou trou- troubles trou- trou troubles troubles bles today taday Too mary lawyers may maybe maybe maybo be engaged In telling business men how haw they can do wrong and get b by Lawyers ot of course must bs b employed by business burines men when they get Into trouble but bilt the real business of af should be bo to keep the tho bu men from fram get get- getling getting ting ling Into trouble This can be bc bedone bedon done dono only anly by lawyers lawyer taking a high moral maral stand stan and Insisting that their clients shall obey abey the tho spirit of o the law as as as well as the thc letter Business men should consult con can con consult sult suIt lawyers lawyer morn mora often be before fare doing things rath rather r than after afler It ItIs itis ItIs Is very Important however that the lawyers la Consulted should be bemen bemen men of tho the highest grade erade charac charge character character ter and men with reason reason- reasonable abl able ablo tees fees COunT COURT STATISTICS Ta Today ay we chart chrt failures bank banie clearings clearing railroad earnings ec e c but we wo dont don't chart law suite Some Someday Someday day dlLY we will chart law suite and when that day comes come It will bE found faund that they are aro ar one ane on of af the best barometers barometer of af business A large number of ot law suits suit 18 isone I one of at the th signs at of the end of af a period of af prosperity and ond the lh begInnIng 0 ofa ot of a 0 period at of of depre depression tan while a small email number of af law suits is a af sign ot of the tho th end of af a period of af depression and the tho th beginning ot of iIo a period of 6 f prosperity Some Som da day dayI I 1 hope hape law sult suits will figure Into the cam compilation of Cr the th Babson- Babson chart Babson-chart inow chart chart Is snow n w made up of af o all tile the th leading Ing barometric subjects but they mostly of af tangible things thing such uch as a crops craps railroad traffic bank loans etc Today Taday the th stands a at 9 per cent above normal having declined from tram IE 16 per cent above aba normal In January this year Per Per- Personally Personally Pcr I 1 that the tho th fact that business men have hav been obliged to f spend so o m much time in 10 incourt incourt court so much time tim negotiating with Ith labor and sa so time answering government quo ques- ques questionnaires is fa ono one on Impart Important ant factor In causing this t decline Copyright ht lUG 1926 Publishers Fh Fi Fl Financial Bureau |