Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-06
INDUSTRY TACKLES
LABOR SOCIOLOGY
Trend Against PaternaIism
Seen in Corporations Giving
Employees Regular Work.
- This IL the tenth Of a series OF articles
% pGteTnnitstic trends In government.
BY AsHMUN BROWN.

especially marked since the World
war. have revolutioniZed the country
business methods. That fact is accept
ed by the Individuals and the pater,
naliSt alike. 1t is apparent to all. II
Is the main argument advanced by tht
paternaliSt TO support his demand 1oi
steps toward the naturalization OF
But the individualist, in rebuttinG
the argument of the paternallSt, is
able to point to tremendous changes
that have come about, contemporaneouS
with consultations and growth, In tne
character Of corporate management
"stimulation Of service" Is a term tnal
has been used to express one phase
OF, this change, while Improvement OF
public relations" is another.
In various gigantic private enIsI
prises "long-range planning" to staolI,
izs nroduction. to prevent seasonal
idleness and to level the heights and
Aims of trade Is an actually In an m
creasinr number full recognition Is
given to the social obligation that Is
due both the employees and the PUBIC
There are primitive minded business
executives eXtant, to be sure, whose
whole conception of management Is TO
obtain immediate profits with regard 70
nothing else, but they are diminish
ing body.
Ownership Is Diffused.
The very magnitude of the corporate
unit has operated to diffuse its owner
shin widely among the people. Great
cornorations are becoming less and less
tine tools of individuals or concentrated
rro,rps In whom lie the principal own
ersbfp. Millions own the great cor
porations Of the country, where nun
dreds owned their predecessors: En-
ploye ownership increases swiftly anu
customer ownership grows apace
out of this extraordinary movement,
the amazement and admiration OF Visl-
tors from abroad, there Is developing
a new type Of professional CORPORA
manager. The directing genius OF the
creat corporation Is the employed preSl-
dent. whose personal ownership IN Ine
CORPORATION Is relatively minute. hls
urge Is to build permanently the Vast
organisation he directs Tor the IuIurs,
to cultivate public good will, to improve
the lot of the employees, to prevent
those waxteful clashes with labor that
result in loss to both sides. WITH a
broader vision than his earlier "nlreo
roanarer'' predecessor, and with re-
sy,onsihiltv TO thousands rather tnan
dnaenS Of stockholders. he Is 1reeo
from the motive Of greed for immediate
profits that has wrecked SO many Col-
poraIions. -
cite but two instances, Is conspicuous
A. The limited States Steel Corporation
and the American Telegraph and Tele-
Tn addition to developing this new
TUNE Of CORPORATION management, the
trend in industry Is toward accepting
social responsibility in various olree'
tons.
Two Sterilization Methods.
A pointed out by the Industrial Re
lations Section of Princeton University
means Of stabilizing production ano
one Is for regularity Of plant operation
The other Is for what In effect const-
tutes unemployment insurance.
"The first type of plan," the section
reports. hits closer to the heart OF the
problem in seeking prevention rather
than partial effect. The second may 40
more than meet the workers immediate
needs, however, in attaching to lay-on
q cost which acts IS pressure on the
employer or industry to regularize OPP
erations"
The frst type Of plan has worked to
astonishing success in various industries
heretofore regarded as dependent en-
tirely on seasonal demand, with long
lay-off periods each year. Intelligent
studies have developed methods by
which, through cooperation between the
sales and the production forces, such
defects can be prevented. One great
soap-making concern is now able TO
estimate It's years business twelve
production into forty-nine weeks OF APP
1rtTaafAlu AHuAl nFndiictiOn.
The General Electric Company by
scientific planning, Is able to guarantee
its employees nifty weeks work q year,
including q vacation with pay.
Other Plans Cited.
The Packard Motor Car Company's
''level production" plan. the lateral
integration" plan of the international
Harvester Company, the employment
repatriation policy Of the Dennison
Manufacturing Company. that of the
Beech-Nut Packing Company and the
famous longSrange planning scheme Of
the Walworth Company Of New Haven,
among many, testify TO what can be
accomplished to reduce labor turnover,
guarantee jobs, elevate the employe
standard Of living and likewise make
money for the corporation.
The National Industrial Conference
Board published recently a report on
"Budgetary Control in Manufacturing
Industry" which Is significant of the
attention grouped business Is giving to
the whole subject. This report calls at
tention to the fact that q great change
has taken place in manufacturing in
duStry since the war. The change, which
stu is In process, Is nothing less than
"a revolution in the intangible devices
OF management, q change % from
making what the management willed,
expecting to md buyers, TO making
what can be sold, and Cd from hiring
and nring men accordingly as they
were or were not required to an en-
deavor to increase profltS through re-
ducing labor turnover by providing
steady jobs for trained force
The first change was based on time
studies Of human ef1ciencieS and me-
chanical speeds. on machine design, on
cost Of accounting, and on wage in
eentiveS; the second, on market analy-
sis, through budgeting, sound schedul-
ing and broadminded personnel CO.
operation. One OF the greatest forces in
this basic change that Is taking place
throughout manufacturing industry Is
budgetary control"
Insurance Funds in Vogue.
Various types Of unemployment in
surance, nearly all on a basis of con-
tribution TO the fund by both employer
and employe, are in vogue in many
American corporations, Is are old age
pensions, based on years Of service. The
unemployment insurance plans are OF
q wide variety, and have been changed
from time to time In certain corpora
lions as experience develops better
methods.
Briefly stated, the pronounced trend
in business is toward sterilization OF
employment by private initiative, and
the movement has made great gains
That absolute sterilization viSioned by
advocates Of political action, of course
EiFablp