The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1949-08-29
DOES BUSINESS SEEK PRoFITsl


defended by Harold Fleming, writer on
financial topics, who says that the pre-
dominant purpose of large cooperate
arrangements in all their major policies
is not to make profits but to make sure
that the country will remain indefinitely
in business The idea of management,
according to this writer, Is ste make profits
SO as tosstay in business rather than to stay
IN business to make profits !"
These statements are interesting if
true. Of course, everybody recognizes
that the managing group Of large corpora
tons is Intensely interested in maintain
ing its control Of the business empire they
dominate. which includes retaining their
salaries and their positions of prestige. To
this extent, no doubt, corporate manage
ment is willing to sacrifice some i'm
mediate profit in the interest of building
up adequate reserves for the proverbial
rainy day.
We think it fair to conclude that cor
porate management has improved con-
siderably, but, nevertheless, the desire
Apt PAOilto oIlli COHJIHuCS 10 dHlHlCJC Tile
operations of large, as well as small cor
porations. This desire is sublimated at
times but only when such postponement
Of immediate profit promises subsequent
and greater gains to the corporation or it's
management.
There is no doubt that the large, mod
ern corporation provides security to it's
people, especially to, the top management.
Many of the top executives receive large
salaries, generous bonuses and the promise
of lifetime pensions. So far, the corpora
tons have not been as generous to their
low-level employees, but, in this field. one
must admit, the larger corporations tend
to provide security for employees. That
this is good business policy, paying divi-
dends to the corporation, does not change
the facts.
The corporations of the nation, as
general rule, are directed and controlled
by a small group, which, except in rare
instances, is not responsive to any effec-
tive curb from scattered stockholders.
Under this type of management, corpora
tions have not hesitated to violate anti
trust laws without regard to the fact that
law-breaking is the same, whether4prac-
ticed in the top-brackets of society.or on
the lower level on the pick-pocket and the
petty thief. -
There has also been tendency on the
part of top management to fight thexapay-
ment OF any taxes by the corporate .Struc-
sture. This effort is sometimes accomnaniad
by doubtful bookkeeping, amazing de-
probation and obsolescence and the cry of
double taxation.
There is also noticeable tendency on
the part of corporations and other BUSH
ness enterprises, to assume that govern
ment and society exist for the benefit
OF business. The management of industry
is always quick to proclaim what bust
ness does for the average person, over
looking the fact that organized business
exists for the welfare of society. In short.
the desires and welfare of business are
put ahead of the welfare of the population
as a whole
No corporation should be permitted
to obtain such stranglehold on any phase
OF business as to be able to threaten
the security and safety of the people.
Certainly no business enterprise or COM
bination of business corporations should
be allowed to become so big as to be above
the corrective measures of society, ex-
pressed by the legislative bodies of the
country.