Washington telegraph., 1923-11-16
why INDUSTRY IS
misunderstood
Geo. E. Roberts Tells How Co.
operative Character OF Cor
pOratiOns Is 0bscuTed.
RADICAL AGITATION RESULTS
Malntsnanee Of Present Industrial sys-
tenn Necessary TO Maintain Present
Standards Of comfors for All
the People, He Says.

1 nc IlOutIu INDUSTRIAL system 10 ~
bottom a cooperative organization, but
this fact is obscured by the complex
ity Of huge enterprises, George d. Rob
erts, noted authority on business and
finance, declared in a recent speech
before the American Bankers Associa.
ton Convention at Atlantic City, N. ].
THE primitive man knew that the
harder he worked the more he would
have" Mr.. Roberts said. "When a man
exchanged work with a neighbor he
had the whole transaction under
his eyes. But when a man works
with thousands Of others for a
great corporation ne doesn't see any
definite relationship between what he
does and what he gets. He doesn't
know whether he is getting a fair
share of the industrial results or not,
and he suspects not
THE modern industrial system Is
essentially cooperative, but you can.
not have effective cooperation with
out understanding. Because people do
not see the Industrial organization as
a whole we have the tendency for So
ciety to break up into groups and
blocs and unions and organizations of
one kind and another, many of whom
are trying to advance their own inter
ests at the expense of society as a
whole. The population of this country
today could not be supported in the
state of comfort to which 1t is accus-
toned without the modern, specialized
organization.
Bolshevlsm In Russia
THE extremity of social dlsorgan.
ization has been seen in Russia, where
has been enacted the greatest tragedy
in the history of the world. What hap
pened there will happen everywhere
unless there is development Of the
capacity of people to work together
and understand each other
"In its final form the revolution in
Russia was against what Is called the
capitalistic system, or the private own
ership of property and direction Of in
dustry. The results of the revolution
are so calamitous in Russia as to give
check to revolutionary tendencies in
other countries. Yet the economic
principles of Bolshevism are in1uenc-
ing public opinion mors-es-s@ssu every
where.
"The motive behind all this aglta-
tion is the desire to establish equality.
The social struggles of the past have
been for political equality. Now the
demand is for equality in possessions,
equality in incomes, equality in the
management of industrial affairs.
There is no argument against the as
pirations OF men for better social con-
ditions, but radical ideas result from
certain economic fallacies. One re-
lates to the employment and service
Of private capital, Men read about
vast sums of wealth belonging to indi-
viduals, and think of these sums as
devoted exclusively to the owners. In
fact wealth employed in production
for the public market is rendering
service to the entire community, no
matter who owns it.
"The whole radical argument is like
claiming that nobody ever got any
benefit from the development of the
steam engine but the owners Of steam
engines. OF course, the theory only
needs to be stated for the fallacy to
be apparent. The man who works for
wages IS benefited by every Investment
Of capital which increases and cheap
ems the supply Of the things for which
his wages are spent.
The Service Of Capital
1T is a fundamental truth that all
productive property although privately
owned, is part Of the equipment of So
ciety. by which its wants are supplied.
'The progress OF the past has been
accomplished under the individualistic
system. The theory of this system is
that every one shall have for his own,
as nearly as may be, that which re-
suits from his own efforts. It is a sys-
tenn calculated to stimulate the initia.
tive, call out the energies and develop
the ability of each individual. He is
free as to his undertakings; there are
no restrictions except that he must
seek his own gains by activities that
are serviceable to the community as a
whole, and he is inspired to labor, not
simply BY the desire for personal ad-
vantage, but by the desire to provide
for loved ones, by the impulse to self
expression, 10 realize and develop his
natural abilities, and by the ambition
to achieve, to win distinction and to
! render service.
1T does not Promise equality. I'M
less there is equality in production, in
service, IA effort, in resolution and in
self-denial why should there be equal
ity in the division Of results?
"The justification Of individualism,
however, is not merely in what 1t al
lows to the superior individual, but IN
the results that inure to all. 1t is in
the interest Of all to secure the most
effective organization, the most effec-
tive management and the largest pos
sible production. These cannot be had
by adopting the sction that all have
equal ability for any position, or by
any other system than that which
Judges men by their individual quail
hcations"