Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-16

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That would seem to spell reduced
profits for American capital and shorter
time for American labor under the rule
of-thumb economies From that stand
point we should regretfully watch Eu-
rope adopt our methods. There is,
however another school of business
thinkers which rejoices at the Ameri-
canization of European industry. This
school not only refuses to view with
alarm or to sound the cry of the empty
dinner pail. 1t actually puts up money
to help Europe learn American EN-
cheney methods and therefore increase
her industrial prosperity.
Filene Gives View.
Edward A. Filene, Boston mer-
chant, and Henry S. DenniSon, a Massa-
chuSettS manufacturer, are the leading
opponents of and investors in this new
economic theory. Mr.. Filene has ex-
planned his philosophy somewhat like
this:
Let us assume that pair of shoes
and hat are of equal value If I pro-
duce ten pairs of shoes and my neigh
Dor produces ten hats We can profit
ably do business together. If I pro-
duce ten pairs of shoes while he by
virtue of disabilities Of one sort or an
other can produce only six hats our
exchange is limited accordingly. In
other words suffer If my neighbor is
in economic straits. America can be
most prosperous II Europe, her good
customer, Is also prosperous. 1t Is an
enlightened investment to help restore
European prosperity"
Mr.. Filene, Mr.. ,Dennison and some
American friends, with the co-opera-
ton of American efficiency engineers,
have accordingly financed on gener-
Gus scale an international management
institute here in Geneva. The mission
of this institute is to make available
to European manufacturers, labor
unions, governments, business houses,
colleges-to any interested person or
institution--the best American ex-
perience in increasing production
eliminating waste, reducing labor turn
over, training workers and in general
reducing costs and promoting effici-
ency in industry. The institute serves
also as clearing house for European
experience. A Czech manufacturer
may learn through the institute how a
Swiss industrialist similarly situated
dealt successfully with common prob
lem.
Start Efficiency Magazine.
It is believed by the founders of this
institute that American. manufacturers
have much to learn from Europe in the
matter of efficiency and waste ellnai-
nation and especially in the adaptation
of the worker to his, task. Europe has
seized upon American experience with
extraordinary avidity, but some Euro
peans have improved upon the Ameri-
can technique in the course of their
adaptations and it is hoped to trans
nit this experience to American IN
dustry. Thus far the movement OF
information seems to be orle-way
affair-an American export to Europe.
There was natural response in the
German mentality to the gospel OF
efficiency, but Americanization seems to
have gained a special impetus there
because of the hard struggle to pay
war reparations and effect industrial
recovery. Russia embraced the new
technioue to insure the success of the
revolution. A leading Austrian manu-
facturer remarked recently that with
in a decade Russian goods would be able
to penetrate all those European coun-
tries which failed to organize their In
dustries on the new lineS-so success
full has been the naturalization cam
paign in soviet land.
italy has adopted naturalization as
a governmental policy for much the
same reason as RuSsia-to insure the
success of its fascist revolution. Speak
ing in the italian chamber last March,
Signor Belluzo, then minister of ma
tional economy, said: "The new fascist
industrial policy is based on rationale
cation. We intend to introduce ra-
tionalization gradually, reducing the
cost of production without increasing
unemployment, and we shall set the
pace faster as the supply of labor di-
minishes Industry will be protected
against foreign competition to a greater
extent by more rational methods of
production than by tariff walls"
Latins Slow to Change.
While some of the finest examples
of naturalization are found in France.
which even before the war experimental
with the new technique, the Latin
peoples do not naturally embrace
American speed and efficiency as
readily as the Teutonic races and the
Slavs. Likewise English industrials
methods as a violation of principles
stanchly adhered to. The propaganda
for Americanizing is gaining steadily,
however, and the success of those in
duStrialiStS who adopt the rationaliZa-
ton principles will act as a powerful
lever on the rest of the business men.
The naturalization movement is
spread in Germany by national COM
mittee, to which the government gives
1000, 900 marks ($500,000) annually.
This committee represents the interests
of producers, distributors and con-
SumerS rather than individual indus
tries, and concerns itself with such
problems as Standardization, packing,
budgeting, credits, business barometers
in fact, anything that will make Ger
man production more efficient Under
its inspiration there Is magazine de-
voted to nothing but the best methods
of packing goods. A four-day institute
| on packing was recently held on the
Bremen docks.
The Czech government subsidies the
| MaSaryk Labor Academy, whose func-
ton it Is to promote scientific manage
| ment in Czech industry. Poland, too,
has department of scientific manage
ment financed by the government. The
lectures and complete courses in scien-
tiflc management in European uni
verSitieS and commercial schools are
increasingly numerous. The photography
of European literature on scientific
management, issued prior to July, 1925,
occupies 43 pages of six-point type in
Mr.. Devinat's book Instances of sue
| cesSful use of American methods are too
/ numerous to cite.
U. S. Has Little to Fear.
The picture would not be complete,
however, If one failed to add that an
American engineer visiting many of
these plants, particularly in such an
| industry as radio and automobile manu-
facture, where technical advances come
swiftly, often feels even the most ad-
vanced European plants to be several
years behind their American COM
petitors. have heard these engineers
say that American manufacturers can
readily triumph over even "Ameri-
canized" European industry because of
greater daring and more progressive