New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-08-15
STATE is A BAD
BUSINESS BOSS SAYS
CHAIRMAN HURLEY

Chairman Edward n. Hurley ha:
quit the United States Shipping
Board. Few men accumulated Sc
much experience during the war a:
he did; it poured in on him from al
sides. especially in those days when
he stood at the centre of a job
providing ships to get our troops to
Europe in time-that focused more
attention on him than on any other
man. Yet, for all its variety, Mr.
Hurley's experience was in largest
extent with employers and employees
it was a job in production on a scale
far greater than any private enter
prise had even conceived before the
war
Mr., Hurley was asked in Washing
ton the other day if he would tell
as sort of yaledictory to the Ameri-
can people on leaving the Chair
nanship of the Shipping Board what,
IN his job, had impressed him most.
The efficiency of private owner
ship and operation as compared with
public ownership and operation,
was the answer, "and believe this
lesson. as it is brought home more
emphatically to the American peo-
pie, IS to prove one OF the greatest
benefits we derive from the war.
rs new iacts about the conduct of
the war come out, as our experience
in many fields of production is ap-
praised, they will point, | predict,
more unerringly to this same con-
cluSion-the superior efficiency of
private ownership. All production
centers on the cost-you can't get
away from that. SHIFT the respon-
siDiltty tor the cost, for the best
possible result under a given set of
circumstances, and you shift the
responsibility tor efficiency. That
IS what we did on the Shipping
Board under the pressure of TIE
wars necessity, when the question
on cost was forced into second place.
we shifted the responsibility of the
cost from private shipbuilding con-
Germs to the Government.
In the beginning the Shipping
Board requisitioned ships building
for private owners at prices for
wnich contractors had agreed to
b'nid them. Then material began to
ADVANCE rapidly IN price and laborers
demanded more wages. The ship
builders said they wouldn't pay any
more, so the Government appointed
a LABOR Adjustment Board. Employ
ers and emplyes both demanded more
money We granted the increases,
and interest in production was not
manifested as 1t had been before,
either by employer or by employe.
want to be clear here. and cast no
retlection on the loyalty and pa
'riotism OF employers or employees
generally. The old line plants had
been efficient before the war, and
renamed so. And in leaving this
office 1T would be an ill-return for
the cooperation ! received on all
SIDES to criticise them. What ! want
to emphasize, as the important les
son to us all, is that it was not
The fault OF the men but the system
adopted.
Ihe responsibility of cost was,
as ! have said, shifted to the Gov
ernment. That keen interest in re-
suits which follow private initiative
was gone. There you have the whole
problem as between Government
ownership and private ownership
stated. No way has been found to
lnstill in Government ownership the
incentive that possesses private
ownership, to improve conditions of
production. Under Government con-
troll found the spur Of highest
endeavor was taken off the private
concerns, and that the slowing up
spread inevitably to the employees.
The cost plus percentage system
vas great mistake, and from the
start had a bad effect on the work.
men and the management. No pri-
'ate concerns could have operated
md paid their way on the wages
paid under that system. On the
basis OF cost they could not have
borrowed money from the banks,
Ind for lack of finances would have
,een unable to get new contracts.
The whole proposition of Govern
nent ownership is fine in theory
n practice the push of individual
mercy Is missing. l don't know of
! Government-owned plant that pro-
luces more than two-thirds effici-
ncy, and there are numerous ex-
mPles much below this line.
For a short time such a plant,
mder special appeals, might be 4
peeded up. but it could not be main
aimed for a protracted period, and
ooner or later would drop below
he standard OF private management
When the manager has no dividend
o strive for, when the toll is paid,
he slowmg-up is sure to follow.
For new shipyards we furnished
he capital, we guaranteed the wages
re provided the profits. What ma
ural incentive was there to keep ,
osts down? AS we view the op-
osite conditions under which our
Industries have grown TO their nre- .