The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1919-08-21
PICKING THE MANAGER

Saturday Evening Post-Most of the
unrest in the world SINNERS down to
this: People want higher wages and
cheaper products of labor; shorter
working hours and more goods. With
many of the demands of labor every
body sympathizes. The trend of
wages. measured in purchasing power,
should be upward, not downward, fol-
a downward trend involves hardship
end degradation to many; and hours
of labor should tend to shorter, not
Iengthen. With the demand for more
abundant and cheaper goods every
body sympathizes; but a great part
of the cost OF all goods finally re-
solves itself into wages. or the cost
of labor.
Some wordmongers offer ar easy so
lution-namely, just appropriate CAPT
tai and capitalists. But intelligent and
candid socialists know that is not a
solution. For intelligent and
candid socialists. as well al for all
other serious students, the only solu-
ton finally is greater production, high
er industrial efficiency. Now the eff
cheney of any industrial unit depends
first OF all upon the ability of the
management-of the directing mind OF
minds. Whether is is a great rail-
picking a capable manager is the first
step toward getting that unit to func-
ton properly Without hat step no
other steps will answer.
The c~apitalistic system of individual
competitive ownership is not only the
best scheme that ever has been ed
vised for picking capable managers.
but 1t Is the best Geheme &c that end
that eve can be devised, for under it
the rewards depend Immediately and
automatically upon good management,
while bad management Immediately
and automatically entails heavy penal
ties. A set OF stockholders, whose
money LIS invested in the undertaking,
choose the management. Their profits
depend upon a right choice. IL they
choose wrongly they lose their money.
Naturally, then, the capitalistic sys-
tenn tends with all it's force t the
development and discovery of able
managers. To anyone acquainted with
its day by day workings 1t often seems
nothing else than a tireless, Unsuitable
hunt for capable men. But under tine
acid test of the capitalist system the
man must actually make good: he
nus deliver the goods not in phrases
but In Unconditional cost sheets.
Under any scheme of public, social
igt or collective ownership and direc-
ton OF industry there would be no
such acid test and no such automatic
penalties for poor management. When
stockholders use bad judgment in
choosing the management OF a rail.
road or a mill, deficit wipes them out.
They are naturally mighty anxious to
avoid deficit. II the public owns the
railroad or mill. deficit is charged of
TO the public treasury. explained away
in plausible phrases, and, nobody OK.
periences any acute personal incon-
venience. Every scheme oil public. so.
cialist or collective ownership and
direction fiEaiiy comes to that: there
Is no big individual reward for good
management. no acute individual pen.
atty for bad management-unless of
course. It eventually to a Boil
shevist case, where collectivism so
demoralizes industry that a whole pop
ulation suffers acute penalties. i. = .
There Is a real struggle throughout
the old world-with many echoes hers
over the final direction and damage
ment Of industry. The nub of it is
whether the managers OF industry
shall be chosen by stockholders. by
the pubIic-meaning the political gov.
ernment-or by the body OF workmen
employed in the industry. or perhaps
jointly by the government and the
workmen. In England just now it
RACES round naturalization OF coal
mines and railroads. An American
phase develops in the proposal of the
railroad brothcrhoods that the govern
ment buy the railroads and let the
employees elect the management: or
elect Jointly with the government.
This Is something very different from
consulting with labor. giving labor full
representation and a full say as to
hours wages and all that. 1t Is not
4 coD1fal and labor D-artnerGhip. It