The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-07
Business Unntness.

What has been back Of the age long
political clamor about the unholy az.
grandizement Of corporate combina.
lions in trade and industry IL at least
intlmated by the astonishing facts
which were set forth In the recent
Boston address Of Vice. Chairman
HURLEY OF the Federal Trade Com.
mission.
The theory Of the business legisla-
ton Of the past decade. Of almost the
past quarter century for that matter.
has been that American business
needed only a free field and no favor
asked to he successful. Monopollstic
purpose. II not monopoly In fact. has
been accused Of all the crimes In the
business calendar. and the past gen.
Grafton Of politics devoted itself to
the restoration or establishment Of
competitive conditions 50 that free
business should survive.
The very law of the Federal Trade
Commissions being il an expression
OF the idea that a fair chance vas
all that the American business man
wanted to make his way In the world.
Yet Mr.. HuRLEY's report Of the re-
suits of n preliminary investigation
conducted by the commission into the
business situation raises more than a
presumption OF doubt II all the howl
about the trusts and conspiracies In
restraint Of trade. all the clamor for
Il competitive regime, has done any
thing save to obscure the real issues
of business life.
The affairs Of some 100000 mer-
camille and manufacturing corpora
tions in the United States have been
canvassed. More than a third OF
them have been proftless. More than
another third have just been existing.
More than three-Quarters Of the total
number are Improbable and unsuc-
cessful. Only one.tenth Of the cor
porations studied know their costs of
doing business; and additional light
| on the causes Of failure to attain II
profitable and successful stage Is cast
by the revelations In the case Of the
money making corporations. which
constitute less than a quarter Of the
| aggregate. More than half Of the
| successful ones, In Mr.. HuRLEY's
words, charge OF mo depreciation
whatever"
Here is an exhibit Of anything but
| fitness for that state Of competition
| which 1t has been the goal of so much
political pndeavor to assure to the
| business community. 1t is also an
exhibit which suggests that n vast
amount Of business uproar has been
raised In political quarters In an Of
fort to procure from politics through
statutory enactment n measur OF
business solvency by protection from
competition which n very large per.
centage Of business has been too in.
efficient to obtain for itself In the
competitive field.
Efficiency ms applied to business en-
terprise has often been so exalted by
It's professors as to become a loath-
some word In the ears Of business
men. The science Of efficiency as II
has been expounded has ignored too
much the human element and the
personal equation in business, but cor
porations lacking efficiency are unfit
for the competitions Of the market
place. Politics cannot save business
II 1t will not take the trouble to save
itself from failure.
Most of the cutlery against big bust
ness has been owing Fundamentally
to the fitness for survival which
big business has cultivated. This is
something which has long been known
tn able business men and bankers. II
the Federal Trade Commission car.
ries its studies far enough II will be
able to prove It to the comprehension
Of the public.