The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-09-20
THE FACTORS I'M INpusrRy.

THE FACTORS IN INDUSTRY.
An interesting treatise is that OF Johi
Lee Mahin on the subject OF Labor
Capital. the Public and Management. !,
An its title implies, II Is a discussion q
the relationships OF industry. MIR. Ma,
h!a Is the director Of an ADVERTISING
agency and the paper comprises an ad.
'di ess delivered before tho Sterling Sil,
verware Manufacturers association al
the Waldorf-Astorla hotel In New Yorl
last April. Tho address has beer
printed In the form OF booklet fol-
distribution.
II Is shown that labor creates capital
but that. the latter Is only important
ms II Is used. Out OF use II is a dead
weight TO those who possess II. To
become a productive agent and to Jus
tify Its ownership, capital must be put
10 work. The man, therefore, who can
make II do the most work Is the best
| man 10 handle II, whether owner or not.
Labor and capital are therefore primary
elements In industry, but Mr.. Mahin in
PRODUCES two other elements, the public
and management.
Labor and capital In their Joint un-
oortakings are not self-sufflcIent be-
cause they do not consume all of their
Joint products. Hence the public as a
consumer becomes n factor In the sit
uatlon. Few enterprises would be
profitable were there no patrons of their
products aside from those engaged I'm
tho business. Tho public is a distinct
factor that cannot BIO dispensed with.
seine projects are more productive and
prontable than others OF similar char
acter. This Is due, In large measure. to
management.
management is regarded by many as
lndlssoiubly merged with capital or
ownership, but Mr.. Mahin makes an
interesting showing In favor OF its COM
pete separation as a. distinct and In
uispensabie element in Industry. In
iuct, ne makes It the greatest of the
Iour elements. One OF the errors of
capital, Mr.. Mahin points out. is the
assumption that owners Up qualities one
70 manage. The mere possession of
wealth Is no more likely 10 indicsta
hpliity TO manage than In popularity an
Indication OF a capable public ofIioiaf
Mr.. Mahin expresses the hone OF -IIv-
Ing long enough TO see our cities re-
garded as nothing more nor less than
business Institutions which conserve
health, protect life and property. and
Give legitimate industry the fullest ana
ireest expression. Such an institution.
ne believes. would require only four
executives--a physician in charge of
health; an engineer in charge OF streets,
sewers and buildings; banker I'm
chargo OF finance; and manager who
runs the city's business like that of n
corporation.
t IL noted that In some portions of
EUROPE city management Is regarded ms
career. and retention or promotion is
dependent upon efficiency instead of
politics or religion. and the hope is ex-
pressed that In time a method NAV be
iouhd Tor Keeping good men on the lob
IN our national government and let
ting out the incapable, regardless of
politics. Here again, Il is insisted that
tbose who are comforting the greatest
penents on the public are the managers
OF some OF our large corporations NV |
their services. -
mutual recognition Of and bv tbe
TOUR clements to the transaction. each |
by the other. is urged by Mr.. Mahin. |
Iho only way labor can have mora ,a |
10 produce more, and It Is shown that |
hbor produces more In co GENERATING |
with capital than II can produce alone
puts capital to work and
It's effect in production. The
my way to get money is to earn it.
mo laborer by putting in his time.
'nergy ana thought; the capitalist by
'lsking his acoumulations: the manager
py planning, and getting his plans car |
led out"
What Mr.. MahIn says of management
s Illuminating. Four stages are rec
'Bnlzed which young. man who goes
o the top must pass through. First. he I
must learn To earn his own living.
fuung mans self-reSpect IL greatly
,'"nulated when he discovers that he IA
10 longer dependent upon his parents
VI, support Next he must learn so Ia
'se ms Drains as to augment the out
tut or his hands. In other words. be
hould learn to utilize his own services
!" 90 70 earn moro than by selling bis
ahor to others.
ln'the third stage OF management n
nan plans and directs the energie, ~
thers' He supervises employment ana
= held responsible for the results 81
Us organising and administrative mower
nther than for what he does himsen.
MS division embraces those who own
ma operate retail stores. manage man
liacturing establishments, or who man.
re departments of large wholesale or
otail stores or OF larger manufactures.
lecording to Mr. Mahin. there are Few
Vhose ambitions transcend this third
tnge: Tot beyond It lies another. clear
nd distinct. ~'
The fourth stage is when a man
eeches q point where he does prao-
lcaliy no routine work. Perhaps the
,,rm general manager better describes
N position A consulting manager is
OF an inapt designation, He directs
no is consulted by managers OF the
'ird stage In much the same fashion I
! the latter do with those under their
irection. His efficiency is shown IN
reducing results by getting and hold
lg me cooperation OF other big ana
apable men. In the fourth stare. the I
anager plans on broad lines, the de-
'iis OF execution being left TO those