The daily banner. (Cambridge, Md.) 1897-2008, 1920-08-14

S1n1uS1hS New DIoou' EhSh-OiN'NA
} Men are Scarce and Can Name
Their Own Salaries.
1t is foolish, of course, to attempt
} to make comparisons of the relative
Importance of labor, capital and man
agement.
One cannot exist without the oth-
, erS.
; But the following incident may
throw some light on the Importance
of mana agement as a factor in busl-
, ness success.
} A bank director showed me state
ment in which the growth OF the
bank was traced through a period OF
years.
} These figures indicate that, begin
ming three years ago, a remarkable
thing occurred.
A host of new customers began tG
} patronize the bank and deposits al
most doubled within a single year.
Each year since then has shown a
decided improvement over the prevl-
} Gus year.
The beginning of this period OF
growth exactly comedies with the m
! auguration OF a new man as presl-
dent of the bank.
, 1t appears that the former pres1-
dent was a cold and dignitied recluse
who thought he held his job by di-
} vine right.
He seldom spoke to the employees
and only infrequently did he allow a
customer in his office.
) Under his management the 0aRk
made no progress; under the new
management the bank made the best
| showing of any in the city. The
) board of directors remained the same
the employees remained the samf;
the capital invested remained the
same.
The management was the only
thing that changed, so it is to tRe
mana cement that the credit must 80.
; The bank director who related this
incident also told about his expen-
ence with a long-established company
located in small Ohio town.
This company manufactures farm
implements, and has been in business
almost a half century.
The management descended from
father to son without much thought
on anybody's part. The banks sort
of carried the business along, the lire
of credit having been established by
tradition.
One day however, the banks de-
cided that the company was moving
backward rather than forward, AMI
notified the men at the head that
they would have to clean up theT
loans.
They first undertook to sell an IS
sue of preferred stock, but in this
| ,hey were unsuccessful.
Their next move was to employ
general manager who had made a
fpe record in other business.
Within a month after this man Be5
| gan to work the officers of the cor
pany were able to reestablish tlieafa
| line of credit. Business improved
and profits are now better than they
have been at any time in the last
twenty-five years.
| Few changes have been made in
| The personel of this organization, and
| the capital investment has not been
| increased Management, therefore,
must receive credit for the improve
ment.
You may draw your own Conclu-
sions from these two incidents.
| Charles NJ. Schwab sums the mat
ter up this may:
whenever the question comes up
of buying new works we never con-
slider whether we can make the work
pay. This is a foregone conclusion
! if we can get the right man to man
age them"
1 heard Roger Babson. the statis-
tician, make a speech recently IN
which he said that all the vision, in
| itiative, enthusiasm and thrift in the
United States is. locked up in two per
cent of the people.
eff those two per cent were sud
denly wiped OUT" said Mr.. Babson,
this nation would go back fifty
years"
To demonstrate that his percent
| age was high rather than low, he
asked the audience to consider their
own city, representing a population
of about one million. Two per cent
of this would be 10000.
Does a city of a million. contain
more than 1000 people who can be
relied upon in an emergency for
brains, energy and faith?
The point that Mr.. Babson made
was that the great, undeveloped nat
ural resources of America is-men.
| Double the percentage of men and
women who dream think and do, and
we can double our progress over
night.
Here is an astounding thought.
To show the great potentialities
that exist in men, Mr.. Babson cited
the instance of a man who, five years
ago, was delivering express packages
at $40 a week He is now in charge
of the sales of a company doing
business of a million dollars year.
Another man, who six months ago
was repairing Mr.. Babson's garage,
| is now an expert on commodity pr1-
ces And girl doing important work
in his organization today was two
years ago a Western Union messen-
! ger.
''The raw material for the deYel-
opment of leaders in industry, COM
merce and finance is abundant and
ineXhaustible," said Mr.. Babson.
Fortunes await the men who will
take the trouble to work this ma
terial UP into the finished product.
THAT is the way l have made most
of my money-not in buying and sell
ling stocks and bonds. THE Type