New-York tribune., 1918-07-15
Development of
Small Industry
Democracy's s Need
Young Crusaders Home from
War Will Demand more
Than Wages
BY Prof. George II. Haynes
Worcester Polytechnic Institute

W 0TceSter P0lytechnlc Institute
IN THE so-called trust movement
4 where no element of genuine mo-
nopoly has been present a large factor
has been The desire to secure the
economies of large-scale production.
This is sound and constructive mo-
tive, and democracy is concerned to
have such economies attained to the
extent that does not interfere with
, some higher or more essential purpose.
1t is obvious that certain enterprises
must be conducted on a giant scale, if
at all.
Democracy Graves variety and in
dlviduality in industrial DEVELOPMENT.
IL needs the small industry no less
than the large. 1t is not so much that
the individual enterpriser needs the
help and protection of the state, as
that the state needs the widely dis
trlbuted initiative and enthusiasm of
ambitious young enterprisers 1t
means much for the strength and
stability of democracy, if the man
'AS'A >"PHSity lOI luO uSlTldl lSaQeCSnlD
finds scope for developing his aptitudes
as his own master in the enterprise
OF his own starting, and not as a fore
man or as member of the staff of
some giant corporation
Keep Open Opportunity's Door
Right here lies cardinal difference
between industrial democracy as we
would see it develop in the United
States and the type OF socialism which
many fear. Is it not possible to keep
open the door Of opportunity and en-
able the young man to discover and
develop his own aptitude, without at
the same time making him the servant
OF the state, subject to a repression
no less CALLING because imposed at the
behest of a majority?
In recent years there has developed
a new and discriminating appreciation
of certain advantages of the small
plant in industries which are not in
herently monopolistic or in which the
economies Of large scale production
are not dominant consideration.
Perhaps foremost among these adj
vantages is that which relates to the
element Of quality.
Bankers More Liberal Now
The new industry is likely to need a
greater amount of capital at the start.
and its founders acquaintances are
less likely than three generations ago
to have the requisite funds. Changes
IN banking laws of the past FIVE wears
may work to the advantage of the
borrower whose credit is sound; and
IN recent years bankers are said to
have adopted a more liberal attitude
toward young man who can present
evidence Of character, ability and the
soundnes Of project for the production
of something for which there is
genuine need.
1t seems valid charge that Ameri
can organized labor has no vision of
industry as anything else than n war
or, at the best, an armed neutrality
the terms of which at almost any time
are likely to become "a scrap of paper.n
organized labor is content to let the
employer bear all the risks of the en-
terprlse and make from it what profits
he can, when reluctant labor. it's in
terest confined to getting shorter
hours and higher wages, has exacted
its toll.
Small Industries Handicapped
In one respect the small industry
mas peen at an unnecessarily great dis
advantage. 1t cannot conduct scientific
Investigations in elaborately equipped
and expensively manned research lab
oratorles of its own. Here is field
where government, Federal or state
may provide cooperation along lines
similar to those of the L. S. Depart
ment OF Agriculture and of the State
Experiment Stations. The Bureau of
standards IS already doing something
IN the way of research work for nr-
vate concerns.
Considerable saving and enhanced
e'hclency could be secured if manu-
iacturers IN related lines would CO.
operate in their sales work The auto
mobile shows offer a spasmodic and
spectacular example of what may be
worked out in more simple and mod
est lasnion in many lines of industry.
Ihe cooperative fruit-sellng agencies
OF the Pacific Coast States and the
produce-marketing organizations in