, 1925-01-23
Weight at the Top

Certain economists who pore over United States census
ngures, seem haunted with visions of a social system growing
over heavy at the top, with the years as they pass and which
will finally collapse of its own weight. They see with each sue
ceedns enumeration of the occupations of our people a de.
cline In the proportion engaged in the actual production of
commodities, and as steady an increase of those who deal
WIN eommontles after they are produced. The clerks, the bank
ers, the brokers, the lawyers, the accountants, the statesmen,
the stenographers and advertising men multiply, while the far
mer, the factory worker, and the miner occupy less and less of
the economic picture. During the ten years ended in 1920 the
workers engaged in distribution increased ten times as fast
as those who were directly concerned with production. When
too many distributors and manipulators fasten themselves on
ne producers they arc riding for a fall. Too much overhead
will carry down a nation as surely as it will a business concern.
Inc first comprehensive attempt to avoid such a calamity
mas been taken by the United States Chamber of Commerce,
with the counsel and cooperation of Secretary Hoover. Nearly
two hundred delegates from all parts of the country, repre-
senhng every major industry from manufacturer to retailer
met in conference in Washington to formulate plans for a
nation wide Investigation into the methods and costs OF. distri-
button The keynote of the conference was the elimination of
waste. 1t is one of the anomalies of our economic development
that the processes of manufacture have been elaborated and
refined to a degree that has eliminated at least the grosser
forms of waste and inefficiency, while the processes of distrib.
ution are still in n state of comparative chaos. To cite merely
one illustrations; the essentials of life are now produced; in the
main, by largescale operations with a vast economy at every
turn but they are sold through a multiplicity of unorganized
and unrelated units with a waste and inefficiency unknown
in manufacturing for a decade.
In his address to che conference in Washington. Mr. Hoo
e pointed out some OF the more important economic leaks and
wastes in N whole 1rstsm Nc 81 s II rdhr. ion e o. the greatest
unnecessary number of links in the distribution chain and the
excessive number of chains. L do not think any one will deny
una W. have more retail and wholesale establishments than We
need in all sorts of directions" He mentioned the reIa xation of
effort and e1trayagance of Blooms, with the waste of unemploy-
ment and bankruptcy which comes from the inevitable slump;
waste IRON excessive seasonality of production and distribu.
nn -, $50 iiom d nch Oh stahdarus oi quahty and grades;
waste due to inadequate transportation and terminals; waste
due to destructive competition Of people who exhaust their
capital through lack of understanding of the fundamentals of
their business and waste due to disorderly marketing.
Mr.. Hoover is cautious about remedies-except one. He
advocates without reserve discovery Of the facts. When those
concerned see the evils of the situation, he believes they will
Yoluptarny act to correct them. But how they should act he
does nor specifically state. He merely lays down a general
principle TO which he thinks all should conform: "yoiuntary
cooperation in dustry and commerce without government regi.
lation, but with the friendly assistance of government agencies
in organization and Information" Mr.. Hoover has done the
country a great service in the organization of more complete
statistical service on economic conditions than is issued by any
government in the world. His statement that the department
OF conmrce has during the last four years, been engaged in n
continuous and exhaustive study of our whole distribution
system gives promise of even greater service in a field danger.
ously neglected in the past.