the vested interests and the common man-第19章
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and with every successive move the control exercised by the
business men in charge grows wider； more arbitrary； and more
incompatible with the common good。
Business affairs； in the narrow sense of the expression； have
in time necessarily come in for an increasing share of the
attention of those who exercise the control。 The businesslike
manager's attention is continually more taken up with 〃the
financial end〃 of the concern's interests； so that by enforced
neglect he is necessarily leaving more of the details of shop
management and supervision of the works to subordinates； largely
to subordinates who are presumed to have some knowledge of
technological matters and no immediate interest in the run of the
market。 They are in fact persons who are presumed to have this
knowledge by the business men who have none of it。 But the larger
and final discretion； which affects the working of the industrial
system as a whole； or the orderly management of any considerable
group of industries within the general system；… all that is still
under the immediate control of the businesslike managers； each of
whom works for his own concern's gain without much afterthought。
The final discretion still rests with the businesslike
directorate of each concern the owner or the board even in
all questions of physical organisation and technical management；
although this businesslike control of the details of production
necessarily comes to little else than acceptance； rejection； or
revision of measures proposed by the men immediately in charge of
the works； together with a constant check on the rate and volume
of output； with a view to the market。
In very great part the directorate's control of the industry
has practically taken the shape of a veto on such measures of
production as are not approved by the directorate for
businesslike reasons； that is to say for purposes of private
gain。 Business is a pursuit of profits； and profits are to be had
from profitable sales； and profitable sales can be made only if
prices are maintained at a profitable level； and prices can be
maintained only if the volume of marketable output is kept within
reasonable limits； so that the paramount consideration in such
business as has to do with the staple industries is a reasonable
limitation of the output。 〃Reasonable〃 means 〃what the traffic
will bear〃； that is to say； 〃what will yield the largest net
return。〃
Hence in the larger mechanical industries； which set the pace
for the rest and which are organised on a standardised and more
or less automatic plan； the current oversight of production by
their businesslike directorate does not effectually extend much
beyond the regulation of the output with a view to what the
traffic will bear； and in this connection there is very little
that the business men in charge can do except to keep the output
short of productive capacity by so much as the state of the
market seems to require； it does not lie within their competence
to increase the output beyond that point； or to increase the
productive capacity of their works； except by way of giving the
technical men permission to go ahead and do it。
The business man's place in the economy of nature is to 〃make
money；〃 not to produce goods。 The production of goods is a
mechanical process； incidental to the making of money； whereas
the making of money is a pecuniary operation； carried on by
bargain and sale； not by mechanical appliances and powers。 The
business men make use of the mechanical appliances and powers of
the industrial system； but they make a pecuniary use of them。 And
in point of fact the less use a business man can make of the
mechanical appliances and powers under his charge； and the
smaller a product he can contrive to turn out for a given return
in terms of price； the better it suits his purpose。 The highest
achievement in business is the nearest approach to getting
something for nothing。 What any given business concern gains must
come out of the total output of productive industry； of course；
and to that extent any given business concern has an interest in
the continued production of goods。 But the less any given
business concern can contrive to give for what it gets； the more
profitable its own traffic will be。 Business success means
〃getting the best of the bargain。〃
The common good； so far as it is a question of material
welfare； is evidently best served by an unhampered working of the
industrial system at its full capacity； without interruption or
dislocation。 But it is equally evident that the owner or manager
of any given concern or section of this industrial system may be
in a position to gain something for himself at the cost of the
rest by obstructing； retarding or dislocating this working system
at some critical point in such a way as will enable him to get
the best of the bargain in his dealings with the rest。 This
appears constantly in the altogether usual； and altogether
legitimate； practice of holding out for a better price。 So also
in the scarcely less usual； and no less legitimate； practice of
withholding needed ground or right of way； or needed materials or
information； from a business rival。 Indeed it has been rumored
that one of the usual incentives which drew the patriotic
one…dollar…a…year men from their usual occupations to the service
of their country was the chance of controlling information by
means of which to 〃put it over〃 their business rivals。 All these
things are usual and a matter of course； because business
management under the conditions created by the new order of
industry is in great part made up of these things。 Sabotage of
this kind is indispensable to any large success in industrial
business。
But it is also evident that the private gain which the
business concerns come in for by this management entails a loss
on the rest of the community； and that the loss suffered by the
rest of the community is necessarily larger than the total gains
which these manoeuvres bring to the business concerns； inasmuch
as the friction； obstruction and retardation of the moving
equilibrium of production involved in this business…like sabotage
necessarily entails a disproportionate curtailment of output。
However； it is well to call to mind that the community will
still be able to get along； perhaps even to get along very
tolerably； in spite of a very appreciable volume of sabotage of
this kind； even though it does reduce the net productive capacity
to a fraction of what it would be in the absence of all this
interference and retardation； for the current state of the
industrial arts is highly productive。 So much so that in spite of
all this deliberate waste and confusion that is set afoot in this
way for private gain； there still is left over an absolutely
large residue of net production over cost。 The community still
has something to go on。 The available margin of free income
that is to say； the margin of production over cost is still
wide； so that it allows a large latitude for playing fast and
loose with the community's livelihood。
Now； these businesslike manoeuvres of deviation and delay are
by no means to be denounced as being iniquitous or unfair；
although they may have an unfortunate effect on the conditions of
life for the common man。 That is his misfortune； which law and
custom count on his bearing with becoming fortitude。 These are
the ordinary and approved means of carrying on business according
to the liberal principles of free bargain and self…help as
established in the eighteenth century； and they are in the main
still looked on as a meritorious exercise of thrift and sagacity
duly so looked on； it is to be presumed。 At least such is the
prevailing view among the substantial citizens； who are in a
position to speak from first…hand knowledge。 It is only that the
exercise of these homely virtues on the large scale on which
business is now conducted； and when dealing with the
wide…reaching articulations of the industrial system under the
new order of technology； u
