The Republican. [volume] (Oakland, Md.) 1877-current, 1910-02-17
BUSINESS POLICY.

Managers of very large enterprises
have different questions of business
policy to solve which smaller firms are
exempt from. When a firm or trust
becomes so large or powerful that it
dominates the market supply of a COM
modify, thelquestion of fixing prices"
arist S; lin other words, it has become
master to large extent of the law of
supply and demand, in that one line.
Such domination is usually based upon
control of the main sources of supply
and of the bulk of the machinery of dis
tribution, in addition to the manufac-
turing features which are he original
scope.of the business. Given firm in
such commanding position with respect
to commodity which the public needs
and must buy in 'arge quantities, be it
beef or wheat, steel rails or coal oil,
what are the principles which should
actuate and determine the fixing of
prices? Are they to be fixed at the ut
most extent of the pubhc's ability to
pay, or at the reasonable limit OF the
company's ability to furnish?
Our business friends are familiar with
the term good will" 1t probably eX-
listed on earth as a business asset cen
turtles before 1.-The angels sang it in. "
Certain-it is that it is as highly valuable
an asset in the balance sheet now as it
ever was. Can trusts or mOnopohes
afford to dispense with it? To come
down to the concrete facts, can any
firm or corporation afford to squeeze its
customers to the last limit of their en-
durance, and thus forfeit their good
will? If an extra demand arises which
causes a temporary shortage, is cor
poration justified in temporarily putting
up its prices, although its own manufac-
turing costs have not increased?
Many modern business men-the
public be- id" type-will answer
these questions without hesitation by
the simple affirmation business is bust
ness" But business is not business, as
they mean it; it is horse sense and COM
mon sense and good sense applied to
commercial life. The doctor who US
ually charges a certain sum for a GER
tain service, and who doubles his fee
because he is wanted more urgently, is
not sensible man. He makes enemies
instead of friends. The shopkeeper
whOEwOuld charge me 10 cents for a 5
cent loaf of bread because | am extra
hungry is unprincipled, and gets no
more ofMmy future custom than can
help giving. The monopoly which fixes
prices according to the demands of the
market .and not according to its cost
price plus reasonable profit is work
ing upon equally false and unfortunate
ethical andabusiness principles. By so
doing it is forfeiting the good will of
its customers, it invites competition, it
provokes hostile legislation and strln-
gent regulation; in other words, it
antagonizes the general public good
will. and no business can permanently
succeed upon such a foundation. A
more secure business, more perma-
nently profitable business, more hon
orable business can be built by cult
waiting the good will of the public, by
public pleased" policy and by
avoiding exploitation of its necessities.
Short-sighted, self-willed, hard listed,
penny wise-and- pound-foolish some bust
ness men are, and they do not see the
better way, the more honorable way
apd in the end the really more profitable
way-which best business sense and in
tuition sees and acts upon.