The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-08-27
RISKS OF BUSINESS.
Only a Genius Can Make Money
Continually

From the Worcester Spy.
When labor troubles occur certain
class of writers and takers point 10
few hundred of very wealthy men as
proof the men who work receive less
than their share of the products of
their labor. In few cases of patented
articles, of partial monopolies or of
specially favored industries this may
be true, but these exceptions prove the
rule that the risks of business are
greater than the risks of the laborer,
the return less sure and the proportion
of the returns very often inadequate
for the risks, worry and losses involved.
Capital is not a mighty force COM
manding sure return. If it were gov
eminent bonds would return more than
2 per cent If it were easy for the
capitalist even to invest his money for
6 per cent. safe return the savings
banks could pay more than 3 per cent.
or three and half. Capital is timid
thing. An ugly rumor kills it. A war,
a strike, political reverse, overpro-
duction, a drought sweeps away mil
lions of dollars honestly and patiently
acquired. Every man knows that 1T is
easier to earn money than to keep 1t,
easier to get money by toll than to
make it productive.
Only a genius-and they are rare
makes money continually earn more.
Take our own city. Every store has
men clerks who could control capital
enough and who perhaps understand
the business as well as the proprietor.
Some clerks are better off in worldly
goods than the storekeeper they work
for. They dare not risk their money.
They are more content to work on sal
airy. They are wise in their way, too.
What is true of the small store is true
of the large department store, the fac
tory, mill and public service corpora
ton. Men put their money into these
big concerns with even less change TO
exercise personal control of the bust
ness. Many men fear the risks of rail-
road stocks. Reckon up the losses OF
bankrupt railroads in the past twenty
years and you will see the reason Tor
their timidity.
We are not talking of mining or of
industries where speculation is the
prime factor, but of the industries
which are at present fairly prosperous.
Look around you. Every town in
New England has monument to the
risks of business in empty factories. In
some cases whole towns are in state
of decay owing to changes that make
| business too dangerous for anybody to
| take the chances. Yet to take these
chances would mean work for idle men,
wages for more workers, comforts Tor
barren homes. But shops are idle at
Hopkinton, Southboro Ashland, Ma
tick right between Worcester and BoS-
ton in the heart of the wealthiest and
most populous district of New Eng
land. And manufacturing is having a
day of unwonted prosperity! In New
Hampshire and all around us great
mills and factories are rotting to the
ground Even the great Steel Trust
has idle mills. The AK industry is to
be removed for reasons of economy to
the ruin of East Dougas. 1t is feared
that serious labor troubles might cost
Worcester her chief industry.
Men cannot do business at loss.
Factories cannot be run merely to give
employment to laborers unless some
paternal authority like the government
interposes. The owner of mill must be
able to sell the product at a price
that will pay for material, wages and
other running expenses interest, taxes,
ETC., and leave enough for the owner to
lay by something against season or
loss or disaster. That is where the cal
culation of the outside critic fails. In
many corners at least 10 per cent. of
the entire capital must be replaced
every year as insurance against wear
and tear, accidents and losses of va
rious kinds. Any business that spends
all IL makes is bound to fail. There
must be reserve.
The ideal arrangement would be to
share the profits over and above a
reasonable surplus among the working
of all grades. The practical difficulties
are numerous. Certain rules must be
framed The owners or managers must
Judge how much they dare distribute
and in this way give their competitors
distinct advantages. 1t is a difficult
problem. Only very ignorant persons
are sure they have a panacea for in
dustrial diseases.
The dangers of going into business"
are no greater to-day than they ever
were. The chances of success were new
er brighter-but still they are chances.
Money will not command success in
any business. Unfagging industry and
endeavor and great ability will not al
ways insure success.
The labor agitators who demand i'm
possible conditions probably have an
entirely different view point. They as
sumo that If one man fails another fool
will put his money into the same ven
ture and keep the business in motion.
The object that both employers and
wage-earners should be striving for is
to make business profitable. The work
ers are bound to get their share in the
IN,