What form of management should replace the administration of industry

by the agents of shareholders? What is most likely to hold it to its

main purpose, and to be least at the mercy of predatory interests and

functionless supernumeraries, and of the alternations of sullen

dissatisfaction and spasmodic revolt which at present distract it?

Whatever the system upon which industry is administered, one thing is

certain. Its economic processes and results must be public, because

only if they are public can it be known whether the service of industry

is vigilant, effective and honorable, whether its purpose is being

realized and its function carried out. The defense of secrecy in

business resembles the defense of adulteration on the ground that it is

a legitimate weapon of competition; indeed it has even less

justification than that famous doctrine, for the condition of effective

competition is publicity, and one motive for secrecy is to prevent it.

Those who conduct industry at the present time and who are most

emphatic that, as the Duke of Wellington said of the unreformed House

of Commons, they "have never read or heard of any measure up to the

present moment which can in any degree satisfy the mind" that the

method of conducting it can in any way be improved, are also those

apparently who, with some {124} honorable exceptions, are most

reluctant that the full facts about it should be known. And it is

crucial that they should be known. It is crucial not only because, in

the present ignorance of the real economic situation, all industrial

disagreements tend inevitably to be battles in the dark, in which

"ignorant armies clash by night," but because, unless there is complete

publicity as to profits and costs, it is impossible to form any

judgment either of the reasonableness of the prices which are charged

or of the claims to remuneration of the different parties engaged in

production. For balance sheets, with their opportunities for

concealing profits, give no clear light upon the first, and no light at

all upon the second. And so, when the facts come out, the public is

aghast at revelations which show that industry is conducted with

bewildering financial extravagance. If the full facts had been

published, as they should have been, quarter by quarter, these

revelations would probably not have been made at all, because publicity

itself would have been an antiseptic and there would have been nothing

sensational to reveal.

The events of the last few years are a lesson which should need no

repetition. The Government, surprised at the price charged for making

shells at a time when its soldiers were ordered by Headquarters not to

fire more than a few rounds per day, whatever the need for retaliation,

because there were not more than a few to fire, establishes a costing

department to analyze the estimates submitted by manufacturers and to

compare them, item by item, with the costs in its own factories. It

finds that, through the mere pooling of knowledge, {125} "some of the

reductions made in the price of shells and similar munitions," as the

Chartered Accountant employed by the Department tells us, "have been as

high as 50% of the original price." The household consumer grumbles at

the price of coal. For once in a way, amid a storm of indignation from

influential persons engaged in the industry, the facts are published.

And what do they show? That, after 2/6 has been added to the already

high price of coal because the poorer mines are alleged not to be

paying their way, 21% of the output examined by the Commission was

produced at a profit of 1/- to 3/- per ton, 32% at a profit of 3/- to

5/-, 13% at a profit of 5/- to 7/-, and 14% at a profit of 7/- per ton

and over, while the profits of distributors in London alone amount in

the aggregate to over $3,200,000, and the co-operative movement, which

aims not at profit, but at service, distributes household coal at a

cost of from 2/- to 4/- less per ton than is charged by the coal

trade![1]

"But these are exceptions." They may be. It is possible that in the

industries, in which, as the recent Committee on Trusts has told us,

"powerful Combinations or Consolidations of one kind or another are in

a position effectively to control output and prices," not only costs

are cut to the bare minimum but profits are inconsiderable. But then

why insist on this humiliating tradition of secrecy with regard to

them, when every one who uses their products, and every one who renders

honest service to production, stands to gain by publicity? If industry

is to become a profession, whatever its {126} management, the first of

its professional rules should be, as Sir John Mann told the Coal

Commission, that "all cards should be placed on the table." If it were

the duty of a Public Department to publish quarterly exact returns as

to costs of production and profits in all the firms throughout an

industry, the gain in mere productive efficiency, which should appeal

to our enthusiasts for output, would be considerable; for the

organization whose costs were least would become the standard with

which all other types of organization would be compared. The gain in

_morale_, which is also, absurd though it may seem, a condition of

efficiency, would be incalculable. For industry would be conducted in

the light of day. Its costs, necessary or unnecessary, the

distribution of the return to it, reasonable or capricious, would be a

matter of common knowledge. It would be held to its purpose by the

mere impossibility of persuading those who make its products or those

who consume them to acquiesce, as they acquiesce now, in expenditure

which is meaningless because it has contributed nothing to the service

which the industry exists to perform.

The organization of industry as a profession does not involve only the

abolition of functionless property, and the maintenance of publicity as

the indispensable condition of a standard of professional honor. It

implies also that those who perform its work should undertake that its

work is performed effectively. It means that they should not merely be

held to the service of the public by fear of personal inconvenience or

penalties, but that they should treat the discharge of professional

{127} responsibilities as an obligation attaching not only to a small

_elite_ of intellectuals, managers or "bosses," who perform the

technical work of "business management," but as implied by the mere

entry into the industry and as resting on the corporate consent and

initiative of the rank and file of workers. It is precisely, indeed,

in the degree to which that obligation is interpreted as attaching to

all workers, and not merely to a select class, that the difference

between the existing industrial order, collectivism and the

organization of industry as a profession resides. The first involves

the utilization of human beings for the purpose of private gain; the

second their utilization for the purpose of public service; the third

the association in the service of the public of their professional

pride, solidarity and organization.

The difference in administrative machinery between the second and third

might not be considerable. Both involve the drastic limitation or

transference to the public of the proprietary rights of the existing

owners of industrial capital. Both would necessitate machinery for

bringing the opinion of the consumers to bear upon the service supplied

them by the industry. The difference consists in the manner in which

the obligations of the producer to the public are conceived. He may

either be the executant of orders transmitted to him by its agents; or

he may, through his organization, himself take a positive part in

determining what those orders should be. In the former case he is

responsible for his own work, but not for anything else. If he hews

his stint of coal, it is no business of his whether the pit is a {128}

failure; if he puts in the normal number of rivets, he disclaims all

further interest in the price or the sea-worthiness of the ship. In

the latter his function embraces something more than the performance of

the specialized piece of work allotted to him. It includes also a

responsibility for the success of the undertaking as a whole. And

since responsibility is impossible without power, his position would

involve at least so much power as is needed to secure that he can

affect in practice the conduct of the industry. It is this collective

liability for the maintenance of a certain quality of service which is,

indeed, the distinguishing feature of a profession. It is compatible

with several different kinds of government, or indeed, when the unit of

production is not a group, but an individual, with hardly any

government at all. What it does involve is that the individual, merely

by entering the profession should have committed himself to certain

obligations in respect of its conduct, and that the professional

organization, whatever it may be, should have sufficient power to

enable it to maintain them.

The demand for the participation of the workers in the control of

industry is usually advanced in the name of the producer, as a plea for

economic freedom or industrial democracy. "Political freedom," writes

the Final Report of the United States Commission of Industrial

Relations, which was presented in 1916, "can exist only where there is

industrial freedom.... There are now within the body of our Republic

industrial communities which are virtually Principalities, oppressive

to those dependent upon them for a livelihood {129} and a dreadful

menace to the peace and welfare of the nation." The vanity of

Englishmen may soften the shadows and heighten the lights. But the

concentration of authority is too deeply rooted in the very essence of

Capitalism for differences in the degree of the arbitrariness with

which it is exercised to be other than trivial. The control of a large

works does, in fact, confer a kind of private jurisdiction in matters

concerning the life and livelihood of the workers, which, as the United

States' Commission suggests, may properly be described as "industrial

feudalism." It is not easy to understand how the traditional liberties

of Englishmen are compatible with an organization of industry which,

except in so far as it has been qualified by law or trade unionism,

permits populations almost as large as those of some famous cities of

the past to be controlled in their rising up and lying down, in their

work, economic opportunities, and social life by the decisions of a

Committee of half-a-dozen Directors.

The most conservative thinkers recognize that the present organization

of industry is intolerable in the sacrifice of liberty which it entails

upon the producer. But each effort which he makes to emancipate

himself is met by a protest that if the existing system is incompatible

with freedom, it at least secures efficient service, and that efficient

service is threatened by movements which aim at placing a greater

measure of industrial control in the hands of the workers. The attempt

to drive a wedge between the producer and the consumer is obviously the

cue of all the interests which are conscious that by themselves they

are unable to hold back {130} the flood. It is natural, therefore,

that during the last few months they should have concentrated their

efforts upon representing that every advance in the demands and in the

power of any particular group of workers is a new imposition upon the

general body of the public. Eminent persons, who are not obviously

producing more than they consume, explain to the working classes that

unless they produce more they must consume less. Highly syndicated

combinations warn the public against the menace of predatory

syndicalism. The owners of mines and minerals, in their new role as

protectors of the poor, lament the "selfishness" of the miners, as

though nothing but pure philanthropy had hitherto caused profits and

royalties to be reluctantly accepted by themselves.

The assumption upon which this body of argument rests is simple. It is

that the existing organization of industry is the safeguard of

productive efficiency, and that from every attempt to alter it the

workers themselves lose more as consumers than they can gain as

producers. The world has been drained of its wealth and demands

abundance of goods. The workers demand a larger income, greater

leisure, and a more secure and dignified status. These two demands, it

is argued, are contradictory. For how can the consumer be supplied

with cheap goods, if, as a worker, he insists on higher wages and

shorter hours? And how can the worker secure these conditions, if as a

consumer, he demands cheap goods? So industry, it is thought, moves in

a vicious circle of shorter hours and higher wages and less production,

which in time must mean {131} longer hours and lower wages; and every

one receives less, because every one demands more.

The picture is plausible, but it is fallacious. It is fallacious not

merely in its crude assumption that a rise in wages necessarily

involves an increase in costs, but for another and more fundamental

reason. In reality the cause of economic confusion is not that the

demands of producer and consumer meet in blunt opposition; for, if they

did, their incompatibility, when they were incompatible, would be

obvious, and neither could deny his responsibility to the other,

however much he might seek to evade it. It is that they do not, but

that, as industry is organized to-day, what the worker foregoes the

general body of consumers does not necessarily gain, and what the

consumer pays the general body of workers does not necessarily receive.

If the circle is vicious, its vice is not that it is closed, but that

it is always half open, so that part of production leaks away in

consumption which adds nothing to productive energies, and that the

producer, because he knows this, does not fully use even the productive

energy which he commands.

It is the consciousness of this leak which sets every one at cross

purposes. No conceivable system of industrial organization can secure

industrial peace, if by "peace" is meant a complete absence of

disagreement. What could be secured would be that disagreements should

not flare up into a beacon of class warfare. If every member of a

group puts something into a common pool on condition of taking

something out, they may still quarrel about the size of the shares, as

children quarrel {132} over cake; but if the total is known and the

claims admitted, that is all they can quarrel about, and, since they

all stand on the same footing, any one who holds out for more than his

fellows must show some good reason why he should get it. But in

industry the claims are not all admitted, for those who put nothing in

demand to take something out; both the total to be divided and the

proportion in which the division takes place are sedulously concealed;

and those who preside over the distribution of the pool and control

what is paid out of it have a direct interest in securing as large a

share as possible for themselves and in allotting as small a share as

possible to others. If one contributor takes less, so far from it

being evident that the gain will go to some one who has put something

in and has as good a right as himself, it may go to some one who has

put in nothing and has no right at all. If another claims more, he may

secure it, without plundering a fellow-worker, at the expense of a

sleeping partner who is believed to plunder both. In practice, since

there is no clear principle determining what they ought to take, both

take all that they can get.

In such circumstances denunciations of the producer for exploiting the

consumer miss the mark. They are inevitably regarded as an economic

version of the military device used by armies which advance behind a

screen of women and children, and then protest at the brutality of the

enemy in shooting non-combatants. They are interpreted as evidence,

not that a section of the producers are exploiting the remainder, but

that a minority of property-owners, which is in opposition to {133}

both, can use its economic power to make efforts directed against those

who consume much and produce little rebound on those who consume little

and produce much. And the grievance, of which the Press makes so much,

that some workers may be taking too large a share compared with others,

is masked by the much greater grievance, of which it says nothing

whatever, that some idlers take any share at all. The abolition of

payments which are made without any corresponding economic service is

thus one of the indispensable conditions both of economic efficiency

and industrial peace, because their existence prevents different

classes of workers from restraining each other, by uniting them all

against the common enemy. Either the principle of industry is that of

function, in which case slack work is only less immoral than no work at

all; or it is that of grab, in which case there is no morality in the

matter. But it cannot be both. And it is useless either for

property-owners or for Governments to lament the mote in the eye of the

trade unions as long as, by insisting on the maintenance of

functionless property, they decline to remove the beam in their own.

The truth is that only workers can prevent the abuse of power by

workers, because only workers are recognized as possessing any title to

have their claims considered. And the first step to preventing the

exploitation of the consumer by the producer is simple. It is to turn

all men into producers, and thus to remove the temptation for

particular groups of workers to force their claims at the expense of

the public, by removing the valid excuse that such gains as they may

get are {134} taken from those who at present have no right to them,

because they are disproportionate to service or obtained for no service

at all. Indeed, if work were the only title to payment, the danger of

the community being exploited by highly organized groups of producers

would largely disappear. For, when no payments were made to

non-producers, there would be no debatable ground for which to

struggle, and it would become evident that if any one group of

producers took more, another must put up with less.

Under such conditions a body of workers who used their strong strategic

position to extort extravagant terms for themselves at the expense of

their fellow-workers might properly be described as exploiting the

community. But at present such a statement is meaningless. It is

meaningless because before the community can be exploited the community

must exist, and its existence in the sphere of economics is to-day not

a fact but only an aspiration. The procedure by which, whenever any

section of workers advance demands which are regarded as inconvenient

by their masters, they are denounced as a band of anarchists who are

preying on the public may be a convenient weapon in an emergency, but,

once it is submitted to analysis, it is logically self-destructive. It

has been applied within recent years, to the postmen, to the engineers,

to the policemen, to the miners and to the railway men, a population

with their dependents, of some eight million persons; and in the case

of the last two the whole body of organized labor made common cause

with those of whose exorbitant demands it was alleged to be the victim.

But when these {135} workers and their sympathizers are deducted, what

is "the community" which remains? It is a naive arithmetic which

produces a total by subtracting one by one all the items which compose

it; and the art which discovers the public interest by eliminating the

interests of successive sections of the public smacks of the

rhetorician rather than of the statesman.

The truth is that at present it is idle to seek to resist the demands

of any group of workers by appeals to "the interests of society,"

because to-day, as long as the economic plane alone is considered,

there is not one society but two, which dwell together in uneasy

juxtaposition, like Sinbad and the Old Man of the Sea, but which in

spirit, in ideals, and in economic interest, are worlds asunder. There

is the society of those who live by labor, whatever their craft or

profession, and the society of those who live on it. All the latter

cannot command the sacrifices or the loyalty which are due to the

former, for they have no title which will bear inspection. The

instinct to ignore that tragic division instead of ending it is

amiable, and sometimes generous. But it is a sentimentality which is

like the morbid optimism of the consumptive who dares not admit even to

himself the virulence of his disease. As long as the division exists,

the general body of workers, while it may suffer from the struggles of

any one group within it, nevertheless supports them by its sympathy,

because all are interested in the results of the contest carried on by

each. Different sections of workers will exercise mutual restraint

only when the termination of the {136} struggle leaves them face to

face with each other, and not as now, with the common enemy. The ideal

of a united society in which no one group uses its power to encroach

upon the standards of another is, in short, unattainable, except

through the preliminary abolition of functionless property.

Those to whom a leisure class is part of an immutable order without

which civilization is inconceivable, dare not admit, even to

themselves, that the world is poorer, not richer, because of its

existence. So, when, as now it is important that productive energy

should be fully used, they stamp and cry, and write to _The Times_

about the necessity for increased production, though all the time they

themselves, their way of life and expenditure, and their very existence

as a leisure class, are among the causes why production is not

increased. In all their economic plans they make one reservation,

that, however necessitous the world may be, it shall still support

them. But men who work do not make that reservation, nor is there any

reason why they should; and appeals to them to produce more wealth

because the public needs it usually fall upon deaf ears, even when such

appeals are not involved in the ignorance and misapprehensions which

often characterize them.

For the workman is not the servant of the consumer, for whose sake

greater production is demanded, but of shareholders, whose primary aim

is dividends, and to whom all production, however futile or frivolous,

so long as it yields dividends, is the same. It is useless to urge

that he should produce more wealth for the {137} community, unless at

the same time he is assured that it is the community which will benefit

in proportion as more wealth is produced. If every unnecessary charge

upon coal-getting had been eliminated, it would be reasonable that the

miners should set a much needed example by refusing to extort better

terms for themselves at the expense of the public. But there is no

reason why they should work for lower wages or longer hours as long as

those who are to-day responsible for the management of the industry

conduct it with "the extravagance and waste" stigmatized by the most

eminent official witness before the Coal Commission, or why the

consumer should grumble at the rapacity of the miner as long as he

allows himself to be mulcted by swollen profits, the costs of an

ineffective organization, and unnecessary payments to superfluous

middlemen.

The Acquisitive Society · 第 8 / 12 段