Iron County record. [volume] (Cedar City, Utah) 1893-1982, 1920-01-23
FRIDAY, JAN. %, 1920.
THE FOUR PARTIES TO INDUSTRY
By W. L. Mackenzie King

xANY have attempted to interpret the new
MI world into which we are passing 1t has been
the special business Of the editor Tor some
time both to observe phenomena and to read Its man
fold interpretations Nowhere has he found in as
small compass such clear analysis and sound con
stuctiyeness as in an address given March -. IVY
before the Empire Club of Canada at Toronto. part
of which is printed below by the courtesy OF the
sneaker who is equally at home in the United States
and Canada. :,
We are accustomed to discuss the problems OF IN
dustry in terms of Capital and Labor. The inability
to find workable solution to many OF these prob
lens arises from vision thus crcumscribed and an
ignoring of other factors equal in significance and
importance. To carry on industry in any but the
most primitive way. four parties discharglng sep
arate and distinct functions. are necessary
First of all. there is Labor. which supplies the
muscular and mental energy necessary to effect the
processes of immediate transformation.
Next there is Capital which is necessary to pro-
vide the raw materials. the appliances, and equip
ment essential to industrial processes. and the adj
vances in the way of food, clothing ad shelter re-
CURED by Labor pending the distribution OF the I'M
ished product.
Then there is Management or Directing Ability
So frequently has Management been associated with
the ownership or Capitdl, udt TIC ioehuy Va "'~ $500
er has more or less been merged in the latter How
ever, a moments reflection is sufficient to disclose
the complete dssimilarity of function between the
two. Capitals contribution to Industry is IN the
nature of material substance loaned by way OF IN
vestment Its possessor may be any kind OF person
from a social parasite or ne 'er-do-well who is the
nheritor of fortune to an infant totally incapable
of any service to industry, and whose property is
necessarily held in trust Managerial ability. on the
other hand, is in the nature of personal service OF
the very highest order. and is wholly necessary, not
only to bring about efficient cooperation between
Capital and Labor in the work of production, but
also to effect and MAINTAIN right relations with the
fourth party without whose cooperation IN all ina
pertains to industry the other three parties coulc
accomplish little or nothing
The fourth party is the community. and tina
entity which we speak of sometimes as ORGANIZED
society," under whose sanction all industry is carret
on, and by whose continuous cooperation with tn
other parties to industry, production distribution
and exchange are rendered possible.
Not only are the four parties necessary to indus
try, but they are equally necessary to one another
Capital can do nothing without Labor. Labor cal
do nothing without Capital. Neither Labor nor Cap
ita can cooperate effectively in industry save unde
the guiding genius of Management; Management
however great its genius can do nothing apart from
the opportunities and privileges the Community at
fords
If all four parties are necessary to industry, ant
equally necessary to one another, then, surely al
four should have some voice in the control of in