The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-12-02
THE UNIVERSITY COURSE.
EntrepreneurS an Outcome of
Modern Industry.
PROFIT AssIMILATED TO RENT.
rlonopolies Viewed Through the
Savant SpectacIes of Professor
Plehn-SoCialiSts.


course on political economy was delivered
in the Art Institute last evening by Pro.
lessor C. c. Plehn before a large and
much-interested audience. The subject
under consideration was THE Leader OF
Industry and His Profits" The term
leader of industry, or entrepreneur. was
defined to mean the man who assumes the
responsibility of business, furnishes the
capital. buys the raw materials, directs the
workers, pays for their labor and the other
expenses of the business. reimb bursting him.
self from the sale of the products. This
function, which is entirely an outcome OF
our modern organization of industry. has
grown to be of immense importance in this
century, and it now seems almost impossi-
Bile to do without it. Even our great
stock companies, which seem to be me-
chimes for furnishing more easily and in
larger quantities capital necessary for un-
dertakings. or a resumption by society as
whole of It's old community rights to
capital and land and method of sharing
the entrepreneur system among many.
never prove successful unless the entire
management be in the hands of man or
group of men having in high degree the
talents necessary to properly carry on the
business.
Here the lecturer proceeded to prove
that profits-the employers share of
the product-are determined by law SIM
liar to that of rent, and are themselves
akin to rent
The subject of competing groups was
then taken mp. "Competition," said the
professor. does DOT pervade the Industrial
world uniformly. but only pervades differ
ent groups and sub-groups, according to
occupation, ability and training. Compe-
tition exists only between groups pursu-
ing like industries and producing the same
line of goods. Within the groupS lndiyid-
uals compete with each other in like lines
of work; ent while worker of lower
grade cannot compete with one more
skilled, 1t often happens that a skilled
workman takes the place of a less capable
man when employment is difficult to
obtain"
The profits were defined to be that por-
tion left over from the sale of the product
after paying the expenses of the business,
and this profit is greater or less according
as the manager has carried on his business
well or i'll in comparison with other mana
gers in the same competing group.
AS many 60 into a business ignoTantly.
simply because there is a demand for the
product, il follows that there is much poor
management and often no profits. The
price Of an article is fixed by the man who
manages his business worst, his being the
highest cost of production and leaving a
=
better skilled managers. just as rent is
the result of monopoly of certain advan-
tages connected with land, so profits are
the result of a monopoly of native business
talent.
Monopoles were next taken I'D and it
was shown that where mass of wealth
was thrown into an enterprise absorb
otherwise competing groups into one there
Is nothing to fix prices, which are then
purely arbitrary.
'If such monopolies," the speaker stated,
''are managed by a man who is content
with moderate profits they are of benefit TO
the consumer, as III the case of the Stand
ard Oil Company, by means of which the
price of petroleum has been reduced, but in
such organizations there is always
temptation TO rob the public inslead of to
benefit it,"
Pure profits. it was stated, consist of
wealth due to good management or costs
saved. ana as they never influence wages
or prices anger against those who obtain
them is unreasonable. but this feeling
should be directed toward those Who really
raise prices through Dad management.
In this connection the subject of social
ism was considered. Anarchists" said
the speaker. ''are utterly opposed to the
existing state of affairs In every way.
Communists believe in absolute leveling
down, in making every one work alike and
share alike. Socialists would have the
production and itself give en- ployment to
all. Socialists argue that land and vested
capital ought TO be common property,
owned by the State and that private own
ership in them should be abolished. This,
they say, would result in an indefinite in
crease of production, and would do away
with useless competition, as parallel lines
of railroad and the like, while it would
give work to all. The number of hours
work expended on an article would fix its
value, unit of labor would be established
and products would be valued according to
the amount of time and skill which they
cost. Money would be done away with,
and man would be PAID for his work BY
certificates stating the number of hours
which he had worked at a certain class of
labor. and these certificates he could ex-
change for articles which had cost another
man an equal amount. Socialists contend
that with such system it would be safe
to bond the country. and that there would
be no crisis. no panics and no hard times"
Professor Plehn explained that the
schemes OF the socialists though very inge-
NOUS are very impractical. and that the
link connecting the millennium which they
picture and the prosaic present is always
missing. A gradual progress, however, is
being made in the direction so much talked
of by them. State ownership of railroa Is
is being seriously considered in more tn an
one country, and has been put in operation
in New Zealand. Workingmen's insur-
ance has become compulsory In Gsrma ny.
and many of our best writer's and thinkers
are advancing views which are decidedly
socialstic in their tone.
In conclusion the lecturer spoke briefly
of the professional socialists of Germany,
who are modified socialists, believing that
the State must first be improved and grad
ually assume certain functions as soon as
1t is educated up to the point of taking
proper charge thereof, and said that this
folI hoo 1a1
United States. where 1t is looked upon with
much favor.
The next lecture will be upon "Ex-
change" including money and the silver