What's What in AmericaBrewster, Eugene V. (Eugene Valentine)
History
What's What in America
Brewster, Eugene V. (Eugene Valentine)
United States -- Civilization; United States -- Social life and customs
A is engaged in the manufacture of shoes. B is a rival. They sell a
certain shoe for $3. Each has a separate plant to maintain; a
bookkeeper; a delivery wagon; and fuel, light, rent and advertising
bills to pay. After a while A and B form a partnership under one roof,
with only one delivery wagon, one bookkeeper, etc. With this great
saving in expenses they find that they can produce as many shoes with
the one enlarged plant as the two old plants produced and at much less
cost. They can now pay a little higher wages, make a little more profit
and still reduce the price of their shoes to, say, $2.90. C now comes to
town and opens a rival establishment. He has difficulty in producing as
good a shoe for $2.90 as does the firm of A & B, but he competes for a
while until D comes to town and starts another shoe factory. Then C and
D join their plants into one and the two firms go on competing, each
spending large sums in advertising, etc. Finally they all get together
and combine the several plants into one. They build an extension on A
and B's building and move C and D's machinery therein. The new firm of
A, B, C & D now have a large plant. Where formerly the individual
manufacturers employed say six bookkeepers, they can now get along with
but two. Where they once had ten delivery wagons they now require but
two or three, because of the systemized routes mapped out. Instead of
each manufacturer spending $10,000 a year for advertising, or $40,000 in
all, the new firm now spends only say $15,000. The saving and economy is
so great in nearly everything, that they can now pay still higher wages,
make still greater profit and sell their shoes for perhaps $2.75--if
they want to. Thus everybody is benefited by the enlarged partnership
except those who have been thrown out of employment, and they shall
presently be taken care of as we proceed.
Now, if four men by combining and forming a partnership can reduce the
price of shoes from $3.00 to $2.75 and pay higher wages and make more
profit than if they were operating separate plants, how great must be
the advantages of 100 or 1,000 men and plants combining into a
partnership. This would be a Trust. If two men can use the light of one
lamp or the heat of one radiator without one depriving the other of any
light and heat, so can 100 men do likewise, provided there is enough
light and heat to go around, and on this simple principle is the great
Trust founded. It economizes; it eliminates useless energy; it allays
waste; it saves. Our letters are delivered by the Trust system; our milk
is delivered by the old system of individual enterprise and is
inconsistent with modern civilization.
ORGANIZATION.
Public-domain text, read in full here on John Shaqi.
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