Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-02-17
INCREASING CORPORATE MAN.
AGEMENT

= That q relationship between the
employer corporation and the en-
ployes must necessarily differ from
that existing between the individual
employer and his employees with
whom he Is brought into closer con-
tact, goes without the saying. This
well-known fact has caused more or
less consideration, not to say some
degree Of apprehension. The de-
STABILITY Of clear understanding of
conditions involved by the relation
ship is evident; anything tending to
impair 1t is regrettable, so much so
that expedients for avoiding this
have been and are being tried.
The importance of success in this
endeavor to improve relationship In
creases with the increase in corpora
ton management. The extent of that
increase is such that the National
Industrial Conference Board con-
cludes that industrial ownership Of
manufacturing establishments
will be a thing Of the past in Ameri-
can industry within another iuarter
Of q century, If the diffusion Of
ownership interest effected by the
Incorporating Of business continues
as 1t has during the past rs years"
In 1900 but 17.9 per cent of the
manufacturing establishments were
incorporated; in 1919 31.5 per cent
were incorporated and these en-
ployed, 86.5 of the employees, produc-
Ing ST. per cent Of all the manu-
featured products.
This tends to mass production and
the use Of capital in large amounts.
and should result in increased eff
5iciency in production. with cor
responding increase in total wealth
and national income" as the Board
points out. 1t proceeds to these de-
auctions:
"All people are consumers. and as
such benefit from efficient mass pro-
Sluction; by virtue of corporate
organization, and the wide distribu-
ton of shares, many more people
have an ownership interest in in
dustry than had such before the day
Of corporate organization. The ma
iority of people are wage earners and
salaried workers, and are affected
both as such and IN their capacity of
consumers by the changing owner
ship of industry. How hasthe wage
Garner and salaried employee as such
Jared during the period of intense
incorporation Of industry In Amer
lea?
1.-THE participation of the workers
in the proceeds of industry, for the
period of 1904 to 1919, for which
figures showing the rate of increase
in corporate industrial activity are
given above, may be gagged by
figures available as to wages and
salaries paid during that time. as
compared with the value of manu-
facture in which they were engaged
The total of salaries and wages paid
employees progressively increased
from S3,1S4,SS4,275 in 1904 to $13,-
425,771,S34 in 1919. an increase OF
321.5 percent, while the total value
added by manufacture increased
during the same period from &c.
293,694,753 to $25,041, 698.490. an in
crease of only 297.s percent; or a
proportionate increase of salaries
and wages Of from so percent of total
value of a proportionate increase OF
salaries and wages of from so per-
cent of total value of manufacture in
1904 to approximately 81 percent in
1919, showing wages and salaries
growing at a faster rate than the
value Of manufacturing output.
Money wages. however, while in
dicating the trend of the wage move
ment, in themselves are not sufficient
as a measure of the workers share in
the proceeds of industry. the Board
points out. Cost of living must be
taken into account. This. the Board
does in It's monthly wage study of Is
different industries, covering about
100000 wage earners. According to
the Boards wags and cost of living
studies, the wage earner's real
weekly earnings, that is the purchas-
ing power of his weekly pay at the
beginning of the current wear was 20
percent higher than in 1914"
The Board recognizes the import
ance Of the relationship existing
under such conditions and concludes,
corporate management has social
obligation to its employees and to the
community as we'll as an economic
ANA e. tee cho rob old rsD