New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-13
BETTER EDUCATION FOR
BUSINESS IS NEEDED

about contracts in relation to partnership
and the eXigencies Of investment and
trade call for another form OF business
organization known as the corporation.
| The classes OF property, the rights or
owners therein. the conditions under
! which property is advanced and used. the
laws under which negotiable paper is is
sued and used and the forms and control
OF legal organizations are all matters Of
/ law.
Nothing less than a consistent presenta-
/ ton of this subject as a science VIII
! answer as a theoretical training for busi-
/ ness. FOR without an under, tardinS of the
| relation OF the various Tarts Of the
/ science the student will be harmed more
| than helped. Stripped OF criminal law ana
procedure and of the mystery which Tor
/ untold generations has been allowed to
/ hecloud principles that are in themselves
easily comprehended, ire science of law
| becomes a subject within the complete ap-
/ prehension Of the young man we'll before
( the age when he should enter upon the
/ activities Of business
| Accounting is the language Of the com-
( mercal world. In IL the ownership OF
/ property. whether by the individual or by
the organization IS definitely stated and
/ through il the results of the efforts 10
/ achieve the commercial object are made
| known. Unproductive effort Though the
/ facts presented by accounting, may be
| eliminated or controlled and the produc-
/ tive lines may be emphasized Both the
| present condition and the progress OF an
/ enterprise are made known by the science
| Of accounting. Investors arc safeGuarded'
/ tie public obtains control of public utili-
| ties and capital is made more secure IN
its employment for the purposes Of com
mcrce thereby.
/ Thus business has, az subject matter
wealth, which represents at the same Tune
| It's tools and its object. Effort must DC
! expended subject 10 the legal rules that
| give and regulate the right Of property
and create and govern the various forms
OF business organization. And business
has a language in which II states not only
| the beginning and the end OF all enter
prises, but. for the sake OF greater pro-
ductiyity and definition. the Intervening
| transactions as we'll There are the r.
lated subjects of money, banking, trans
| Co
one or all OF these special branches OF
, commercial activity will disclose the bear
! ing Of the fundamental sciences OF eco
nomics. law and accounting.
/ The sciences. while each Is distinct In
itself should be taught each IN relation
20 the others. with coordination At every
step SO that in their later stages they
I blend into a new science, which may be
called, for want OF better name Dusi-
ness administration.
Let me illustrate the coordination tIa'
IS essential I'm the teaching OF the sci
| cnces. The capital OF the individual Is
protected by a general contribution to
! common fund. which We know by the
name OF insurance. and its relation 10 'ht
protection Of the individuals capital Is
matter Of economics. such Insurance y
! carried out by agreement when IN ia" j.
treated as a special division OF the SUD
,.c, ~ contracts. and the insurance func-
| ,ion is regulated by statutes for the safe-
guarding Of those who are Insured. IN
business practice insurance IL an essehua'
nrecaution and is recorded with proper
accruals by means Of accounting.
Another illustration: \ community In
order 10 be prosperous must maintain ana
preferably increase its tools-that Vs. the
mart Of its wealth known as capital TO
do this there must be reserved iro'" ''!'
| things produced enough 10 Keep the 'ooiS
irtact In organized effort the corpora
,,on may not legally distribute as proht
ts capital or tools In hand. common
o.~-,ers must set aside from their earn
inrs a sufficient reserve TO MAINTAIN 'he"
capital. There are, Of course many other
| uIys,ra.ions that could he given OF speC'hC
LEGAL requirements for the maintenance u
ca,i,al BY accounting the organization
,bous the state Of facts-that U.s. the eN-
,.r, ~ depreclation and the reserves that
| have been made therefor.
Tho coordination could be shown IN
,horea,d wavs. The great difficulty from
Tho no,nt of view OF the young man pre-
parine for a commercial lie mas pee" wv
iocl, ~ this coordination. Economies mas
been taught as "A separate science usua'''
-. professors who understood niue OF ."e
.c,ences OF law and accounting La" mas
hean taught. II at all by men interes'eu
largely I'm practice and It's many p'o-
cedures. and accounting. sorry 10 s'"'''
has been taught In many cases pS me-,
al,iIIod In the practical recording ana
/ ,,o,i,r of accounts but unlearTed III
economics and in law. and consequently
,,i,bout a clear comprehension OF theH
hearing upon this work. IL remains
! ,be,efore. for those interested IN business
od,,ca,,on 10 state and teach the pasic
sciences in relation TO each other as
preparation for business
Let us consider for moment our pc
| ginning young man. equipped not with
| raining afforded In the so-called com
aro,al schools. but with the three SCI
| ences. o,i-
! I,non entering the Office Of the organi-
! zat,on OF which he IL TO be part ho
notes the building and the ground site i
! ooo,,nios. ne thinks OF the title and won
! dere whether the land is owned IN Zee
/ s,nn,e or held upon lease. In the latter
go no thinks OF reversionary rights'
! ~ lind turns 10 trust deeds as spe-
| -, CORN, of lien which perhaps ~ouId
80 used az security for part OF the cHpi-
,al advanced. As he waits ne "on'e''
u,he,her II would be more proh'aDie io'
,,o Concern 10 rent or to own ne th'iihS
/ NJ the investment principal oy which "e'
known property at nome returns
| nc rate than holdings situated al
,,.,.auoo. he looks at the furniture anu
-. ard thinks Of them as capitaI
and wonders. perhaps, whether inc! ai0
rronerlv accounted for and "hether sur
ec,ent reseryes arc mace TOT 'he" ue