under compulsion of patriotic devotion, fear, shame and bitter need, and under the unprecedentedly shrewd surveillance of public officers bent on maximum production, the great essential industries controlled by the vested interests may, one with another, be considered to approach -- perhaps even conceivably to exceed -- a fifty-percent efficiency; as counted on the basis of what should ordinarily be accomplished by use of an equally costly equipment having the disposal of an equally large and efficient labor force and equally good natural resources, in case the organisation were designed and managed with an eye single to turning out a serviceable product, instead of, as usual, being managed with an eye single to private gain in terms of price.
To the spokesmen of "business as usual" this rating of current production under the pressure of war needs may seem extravagantly low; whereas, to the experts in industrial engineering, who are in the habit of arguing in terms of material cost and mechanical output, it will seem extravagantly high.
Publicly, and concessively, this latter class will speak of a 25 percent efficiency; in private and confidentially they appear disposed to say that the rating should be nearer to 10 percent than 25. To avoid any appearance of an ungenerous bias, then, present actual production in these essential industries may be placed at something approaching 50 percent of what should be their normal productive capacity in the absence of a businesslike control looking to "reasonable profits." It is necessary at this point to call to mind that the state of the industrial arts under the new order is highly productive, -- beyond example.
This state of the case, that production in the essential industries presumably does not exceed 50 percent of the normal productive capacity, even when driven under the jealous eye of public officers vested with power to act, is presumably due in great part to the fact that these officers, too, are capable business men; that their past training and present bent is such as has been given them by long, exacting and successful experience in the businesslike management of industry; that their horizon and perspective in all that concerns industry are limited by the frame of mind that is native to the countinghouse. They, too, have learned how to think of industry and its administration in terms of profit on investment, and, indeed, in no other terms; that being as near as their daily work has allowed them to take stock of the ways and means of industry. So that they are still guided, in some considerable part, by considerations of what is decent, equitable and prudent in the sight of conservative business men; and this bias necessarily goes with them in their dealings with those ubiquitous, intricate and systematic dislocations of the industrial system which have been found profitable in the management of industry on a footing of competitive sabotage. They still find it reasonable to avoid any derangement of those vested interests that live on this margin of intangible assets that represents capitalised withdrawal of efficiency.
In so characterising the situation there is, of course, no inclination to impute blame to these businesslike officials who are patriotically giving their best abilities and endeavors to this work of enforcing an increased production in the essential industries and diverting needed labor and materials from the channels of waste; nor is it intended to cast aspersions on the good faith or the honorable motives of those grave captains of industry whom the officials find it so difficult to divert from the business man's straight and narrow path of charging what the traffic will bear. "They are all honorable men," But like other men they are creatures of habit; and their habit of mind is the outcome of experience in that class of large, responsible and remunerative business affairs that lie somewhat remote from the domain of technology, from that field where the mechanistic logic of the industrial arts has something to say. It is only that the situation as here spoken of rests on settled usage, and that the usage is such as the businesslike frame of mind is suited to; at the same time that this businesslike usage, of fixed charges, vested interests and reasonable profits, does not fully comport with the free swing of the industrial arts as they run under the new order of technology. Nor is there much chance of getting away from this situation of "incapacity by advisement," even under pressure of patriotic devotion, fear, shame and need, inasmuch as the effectual public opinion has learned the same bias and will scarcely entrust the conduct of its serious interests to any other than business men and business methods.
To return to the argument. It may be conceded that production in the essential industries, under pressure of the war needs, rises to something like a 50 percent efficiency. At the same time it is presumably well within the mark to say that this current output in these essential industries will amount to something like twice their ordinary output in time of peace and business as usual, One-half of 50 percent is 25 percent; and so one comes in sight of the provisional conclusion that under ordinary conditions of businesslike management the habitual net production is fairly to be rated at something like one-fourth of the industrial community's productive capacity; presumably under that figure rather than over.
In the absence of all reflection this crude estimate may seem recklessly hasty, perhaps it may even be thought scandalously unflattering to our substantial citizens who have the keeping of the community's material welfare; but a degree of observation and reflection will quickly ease any feeling of annoyance on that score. So, e.g., if the account as presented above does not appear to foot up to as much as the conclusion would seem to require, further account may be taken of that side-line of business enterprise that spends work and materials in an effort to increase the work to be done, and to increase the cost per unit of the increased work; all for the benefit of the earnings of the concern for whose profit it is arranged. It may be called to mind that there still are half-a-dozen railway passenger stations in such a town as Chicago, especially designed to work at cross purposes and hinder the traffic of competing railway corporations; that on the basis of this ingeniously contrived retardation of traffic there has been erected a highly prosperous monopoly in the transfer of baggage and passengers, employing a large equipment and labor force and costing the traveling public some millions of useless outlay yearly; with nothing better to show for it than delay, confusion, wear and tear, casualties and wrangles, twenty-four hours a day; and that this arrangement is, quite profitably, duplicated throughout the country as often and on as large a scale as there are towns in which to install it. So again, there is an exemplary weekly periodical of the most widely reputable and most profitable class, with a circulation of more than two million, which habitually carries some 60 to 80 large pages of competitive advertising matter, at a time when the most exacting economy of work and materials is a matter of urgent and acknowledged public need; with nothing better to show for it than an increased cost of all the goods advertised, most of which are superfluities. This, too, is only a typical case, duplicated by the thousand, as nearly as the businesslike management of the other magazines and newspapers can achieve the same result. These are familiar instances of business as usual under the new order of industry. They are neither extreme nor extraordinary. Indeed the whole business community is run through with enterprise of this kind so thoroughly that this may fairly be said to be the warp of the fabric. In effect, of course, it is an enterprise in subreption; but in point of moral sentiment and conscious motive it is nothing of the kind.
All these intricate arrangements for doing those things that we ought not to have done and leaving undone those things that we ought to have done are by no means maliciously intended. They are only the ways and means of diverting a sufficient share of the annual product to the benefit of the legitimate beneficiaries, the kept classes. But this apparatus and procedure for capturing and dividing this share of the community's annual dividend is costly -- one is tempted to say unduly costly. It foots up to, perhaps, something like one-half of the work done, and it is occupied with taking over something like one-half of the output produced by the remaining one-half of the year's work. And yet, as a business proposition it seems sound enough, inasmuch as the income which it brings to the beneficiaries will presumably foot up to something like one-half of the country's annual production.
There is nothing gained by finding fault with any of this businesslike enterprise that is bent on getting something for nothing, at any cost. After all, it is safe and sane business, sound and legitimate, and carried on blamelessly within the rules of the game, One may also dutifully believe that there is really no harm done, or at least that it might have been worse. It is reassuring to note that at least hitherto the burden of this overhead charge of 50 percent
