The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1914-06-29
Where Business Gets Too BE-.


of wholesale dry goods corporation
is another suggestion that conceEI
may get so big that its efficiency
decreases in proportion to its size
Some time ago The Commercial
Appeal made this point in discus
sing a certain great railway system
which formerly in the units com
posing it was profitable. But when
the units were thrown together anl
made one great system the cXpens'
of opration grew and combined bust
ness did not grow.
There is a point where a bushes
can reach in safety, and beyond tina,
point business can be too big for thf
attention of those controlling IT,
After a time a fixed basis viii
established where it will not be re
garded as safe to make 1t large
than that point where the abilit
OF one man or one group Of men
give it personal attention ceases.
The business in which the Clan
companies were interested required
infinite attention to detail Tn
turnover is big and the margin o
profit is not great If there is az
extravagance or an unnecessary eX
pense the long duration of either
will be hurtful.
A compact railway system Is a
good Illustration CT the point we ar
making. Where the chief 'operatini
official can get over his lines ever
two months, give attention to tn,
terminals, devote time to every pro
posed improvement, look ca~full
into new contracts which inyolyt
an increase in fixed charges, tn
chance for leaks is eliminated.
Milton II, Smith Will go down il
history as a most competent ant
successful railway president Nj
Smith Is familiar with every mil
OF the Louisville & Nashville Ra'
road. lie knows the country 81
miles on either side of its tracks
lie knows exactly the track room
he has in Now Orleans, how mucl
in Memphis and how much in Biz
mingham, He is faT-seemg and /.
will be found that his road in mos
every southern city it touches ha
all the advantages for the handlin
of freight.
He sees prospective waste an6
avoids it. Mr.. Smith knows his,
road, knows the capacity of the
country, knows when to buy and
when to build. Now, if he were
president of road three times a :
big, in the very nature of things i
could not give that attention to th,
enormous line that he does to tn
Louisville g. Nashville System.
What this man might have don,
with the Rock Island, with it's hi!
mileage, or with the Missouri paci-
nc. would have been interesting. n,
would have done the very best an,
man could have done with them. bur
the mileage of these roads are spc'
that no human mind can grasp tn
details of their operation.
The United States Steel compan,
is a colossal corporation. vet in tn,
steel hearing itself it was admitted
that some of the smaller and indie
pendent companies were able to pro
duce steel and steel products NOR
eheaply than the big corporation
and could sell under it and make /,
profit.
Standard Oil was a big nation
wide trust. II made an enormou
amount Of money When Standar,
Oil was cut into a half dozen seDa~
rate companies the combined profit
of these companies were create
than the profits of the parent com
pany out of which they were cut.
The American Tobacco Compan,
broke into groups. and these proup
are earning more now than did ii
consolidated company.
Business when it becomes onorm
oHaiy big seems TO get Just like a.
overgrown boy or an ovcrgrowu ma,
1t is imposing just as a big man j
imposing, but it is no more effectiy
as against a we'll managed norm;
sized business than is the giar
against the man of normal size
Memphis Commercial Appeal.