Barbara i^einstoctt Lectures' on 
 Jftorate of CraUe 
 
 HIGHER EDUCATION AND BUSINESS 
 STANDARDS. By WILLARD EUGENB 
 
 HOTCHKISS. 
 
 CREATING CAPITAL: MONEY-MAKING 
 AS AN AIM IN BUSINESS. By FREDERICK 
 
 L. LlPMAN. 
 
 IS CIVILIZATION A DISEASE? By STAN- 
 TON COIT. 
 
 SOCIAL JUSTICE WITHOUT SOCIALISM. 
 By JOHN BATES CLARK. 
 
 THE CONFLICT BETWEEN PRIVATE MO- 
 NOPOLY AND GOOD CITIZENSHIP. By 
 JOHN GRAHAM BROOKS. 
 
 COMMERCIALISM AND JOURNALISM. By 
 HAMILTON HOLT. 
 
 THE BUSINESS CAREER IN ITS PUBLIC 
 RELATIONS. By ALBERT SHAW.
 
 HIGHER EDUCATION 
 AND BUSINESS STANDARDS
 
 HIGHER EDUCATION 
 
 AND 
 BUSINESS STANDARDS 
 
 BY 
 
 WILLARD EUGENE JIOTCHKISS 
 
 DIRECTOR OF BUSINESS EDUCATION 
 AT THE UNIVERSITY OF MINNESOTA 
 
 BOSTON AND NEW YORK 
 HOUGHTON MIFFLIN COMPANY 
 
 d&e fiitoer?'ibe press Cambridge 
 1918
 
 COPYRIGHT, 1918, BY THE REGENTS OF THE UNIVERSITY OF 
 CALIFORNIA 
 
 ALL RIGHTS RESERVED 
 
 Published March igi8
 
 HF 
 
 BARBARA WONSTOOC 
 
 LECTURES ON THE MORALS 
 
 OF TRADE 
 
 This series wifl contain essays by 
 representative scholars and men of 
 affairs dealing with the various phases 
 of the moral law in its bearing on 
 business life under the new economic 
 order, first delivered at the University 
 of California on the Weinstock founda- 
 tion.
 
 HIGHER EDUCATION AND 
 BUSINESS STANDARDS 
 
 LAST summer, when we reached 
 California for a year's sojourn, we 
 had the good fortune to secure a house 
 with a splendid garden. A few weeks 
 ago, after the early warm days of a Cali- 
 fornia February had opened up the first 
 blossoms of the season, our little five-year- 
 old discovered that the garden furnished 
 a fine outlet for her enterprise, and she 
 soon produced two gorgeous I will 
 not say beautiful bouquets. Barring 
 a certain doubt about her mother's ap- 
 proval, she was well satisfied with her
 
 a HIGHER EDUCATION AND 
 
 achievement, she felt a sense of com- 
 pleteness in what she had done and 
 well she might, for she had not left a 
 visible bud. 
 
 There is a strong tendency to go at 
 business the way Helen went at the gar- 
 den. She knew what to do with bou- 
 quets; raw material for making them 
 was within her reach ; what more natu- 
 ral than to turn it, in the most obvious 
 and simple way, into the product for 
 which it was designed. From her stand- 
 point such a procedure was entirely cor- 
 rect she was making bouquets for 
 herself and her friends; every one in 
 her circle would share the benefit of 
 her industry. 
 
 Whenever in the past business enter-
 
 BUSINESS STANDARDS 3 
 
 prise has proceeded from a similar view- 
 point, we have stood aside and let it pro- 
 ceed; it was not our garden; we were 
 quite willing to take the role of disinter- 
 ested spectators. Recently we have dis- 
 covered that it is our garden; we have 
 learned that we are not disinterested; 
 we now see that business plays a large 
 part in the life of every one of us. That 
 being the case, we assume the right to 
 question its processes, its underlying poli- 
 cies, and its results. We are gradually 
 coming to think of business in terms of 
 an integrated and unified national life. 
 We desire the national life to be both 
 wholesome and secure. 
 
 What the public really wants from 
 business, then, is a contribution to na-
 
 4 HIGHER EDUCATION AND 
 
 tional welfare, and it has become con- 
 vinced that, by taking thought, it can 
 make the contribution more certain and 
 more uniform than it has been in the 
 past. Many business men share this view ; 
 with varying zeal they are trying to work 
 out standards of organization that will 
 insure the kind of regard for general 
 welfare which the public has come to 
 demand. 
 
 This is the new idea in business; it 
 has already taken deep root ; but it needs 
 to be further developed. We have the 
 difficult task of reducing an idea to a 
 practical working plan. How shall we 
 go about it ? Fortunately the idea itself 
 contains a hint for further procedure. 
 A new attitude in business must be
 
 BUSINESS STANDARDS 5 
 
 coupled with a new attitude in public 
 policy. 
 
 When my enterprising child made an 
 onslaught on the garden it would have 
 been easy enough to punish her; but it 
 is doubtful if mere punishment gets very 
 far in a case of that sort. Unless we can 
 teach the child to enjoy the garden with- 
 out destroying it, the restraining influ- 
 ence of punishment will be no stronger 
 than the memory of its pain or the 
 fear of its repetition. This memory of 
 the past and fear of the future usually 
 wage a most unequal contest with the. 
 vivid and alluring temptation of the 
 present. 
 
 But should not the child be restrained ? 
 As far as necessary to protect the garden,
 
 6 HIGHER EDUCATION AND 
 
 and perhaps also to make her conscious 
 of an authority in the world outside of 
 her own will, yes but that is not the 
 main task. The main task is to educate 
 her, to develop an understanding of the 
 garden, to get her in the frame of mind 
 in which she will derive her greatest en- 
 joyment when she cultivates it and sees 
 it grow, and when she restricts her pick- 
 ing to a reasonable share of what the gar- 
 den produces. 
 
 In the actual case before us, the child 
 was after quick and easy results, the only 
 kind she could comprehend ; she was un- 
 able to look upon the garden as a living 
 thing whose life and health must be pre- 
 served to-day in order that it may yield 
 returns to-morrow and next week. An-
 
 BUSINESS STANDARDS 7 
 alyzed with adult understanding, her es- 
 sential fault was a failure to get beyond 
 immediate results and to view the garden 
 from a long-time angle. We ought not 
 to expect her to do this now, but we do 
 expect her to do it when she is grown 
 up. We expect in time so to educate her 
 that she will be able to think of the gar- 
 den in terms of permanence and growth 
 and to make an effective use of it from 
 that standpoint ; and this same education 
 in long-time effectiveness is what we 
 want in business. 
 
 Business standards must be discussed 
 from the standpoint of efficiency, but 
 efficiency needs to be interpreted. We 
 may as well admit at the start that the 
 efficiency ideal is not entirely in good
 
 8 HIGHER EDUCATION AND 
 
 repute at this moment. 1 If I may import 
 an expression from England, we have 
 been somewhat "fed up " with efficiency 
 during the recent past and the ration has 
 been rather too much for our digestion. 
 Away back in the eighties, before the 
 dominance of business in American so- 
 ciety had been questioned, efficiency, as 
 the term was then understood, had a 
 place among the elect; it was the inti- 
 mate associate of business success. Then 
 came the muck-raker, and with him came 
 also anti-trust cases and insurance inves- 
 tigations. We turned our attention to 
 
 1 At the time this was written, in the spring of 1916, 
 it will be recalled, the German war machine for nearly 
 two years had been demonstrating its efficiency; the Allies 
 had not yet matched it, and we did not like the work that 
 efficiency was doing.
 
 BUSINESS STANDARDS 9 
 
 labor outbreaks, to graft prosecutions, and 
 to land steals. We talked about "male- 
 factors of great wealth." We even be- 
 came interested in Schedule K. And so, 
 during the first decade of the new cen- 
 tury a whole train of revelations, inci- 
 dents, and phrases tempered our regard 
 for business and brought many business 
 practices under the ban of law and hostile 
 sentiment. Efficiency was in bad com- 
 pany and suffered in reputation. 
 
 But efficiency was able to prove an 
 alibi ; we were told that the thing which 
 posed as efficiency was not efficiency, but 
 special privilege, and we were again per- 
 suaded of the great service a regenerate 
 and socialized efficiency could render. 
 Just at this point came the outbreak in
 
 io HIGHER EDUCATION AND 
 
 Europe; efficiency was again caught in 
 bad company, and we began to hear such 
 phrases as the "moral breakdown of 
 efficiency," "efficiency, a false ideal," 
 and others of similar import. In an arti- 
 cle bearing the title, " Moral Breakdown 
 of Efficiency," published in the " Cen- 
 tury " for June, 1 9 1 5, it was maintained 
 that pursuit of efficiency had led and 
 was still leading civilization on a down- 
 ward path. 
 
 In addition to the reputation of keep- 
 ing bad company, efficiency has to bear 
 the odium of many foolish and inefficient 
 deeds performed by its self-appointed 
 prophets. The quest for efficiency has 
 called forth in business a new functionary 
 known as the "efficiency expert." Many
 
 BUSINESS STANDARDS n 
 
 of these men have done a vast amount 
 of valuable work, but many others have 
 not. While the real expert has been 
 raising the level of business organiza- 
 tion, the others have been piling up a 
 large wastage of poor work and lost 
 confidence. 
 
 But these are side issues. The main 
 fact stands out above them. We have 
 been steadily adding to the burdens on 
 industrial and commercial equipment; 
 even more have we increased the stresses 
 and the strains on human life. A devas- 
 tating war is now suddenly taking up the 
 slack, and the slow and painful task of 
 making the world efficient must be has- 
 tened in order that society may bear the 
 load. In these circumstances we need not
 
 12 HIGHER EDUCATION AND 
 
 apologize for making efficiency the main 
 support of business standards. Nor need 
 we assume, as does the author just cited, 
 that the efficiency ideal in any way con- 
 flicts with the ideal of moral responsi- 
 bility and service. 
 
 Of course, if we reflect, the abstract 
 and impersonal thing which engineers 
 define as the ratio between energy ex- 
 pended and result obtained has no moral 
 quality in itself. Whatever of morality 
 or lack of morality the word " efficiency " 
 calls forth is given to it by the manner in 
 which the terms of the ratio are defined. 
 It is for society to make the definitions. 
 Society may determine the forms and 
 the limitations under which it will have 
 business energy expended, and it may
 
 BUSINESS STANDARDS 13 
 
 decide what are the social ends toward 
 which it will have business effort con- 
 tribute. Guided by wise social policy, 
 efficiency and service go hand in hand. 
 Since business is subject to control 
 by society, it follows that the efficiency 
 factors in a particular business, in a whole 
 industry, or in business generally, must 
 adjust themselves to the decisions that 
 society has made, and they must also take 
 account of decisions that it may make 
 in the future. And these decisions are 
 not all recorded in the law or even in 
 the vague thing we call public opinion. 
 Laws and opinions of particular groups, 
 group morality, individual morality, even 
 inertia, and a long list of more subtle 
 and often capricious reactions are chan-
 
 14 HIGHER EDUCATION AND 
 
 nels through which social purpose finds 
 expression. 
 
 It is worth our while to consider how 
 these reactions may affect practical ad- 
 ministration. No reflection is needed to 
 see that in proportion as business men fail 
 to take account of forces outside the busi- 
 ness, in that proportion they are likely to 
 miscalculate the results of business poli- 
 cies. Striking examples of such miscal- 
 culation are found in the experience of 
 Mr. George M. Pullman back in the 
 nineties, and of Mr. Patterson, of the 
 National Cash Register Company, a dec- 
 ade later. Each of these men, with 
 apparent good faith, undertook to sur- 
 round his laborers with conditions of 
 physical, mental, and moral uplift, and
 
 BUSINESS STANDARDS 15 
 
 each undertook to do it as an act of pa- 
 ternal bounty. Each of them, as far as 
 we can judge, expected appreciation, 
 gratitude, and increased efficiency. But 
 they failed to take account of the group 
 consciousness of their laborers; they 
 did not know what the laborers were 
 thinking ; and because the laborers were 
 thinking something different from what 
 the employers thought, policies intended 
 to arouse gratitude aroused instead re- 
 sentment and a strike. 
 
 But there are many things besides 
 too much paternalism that may result in 
 a strike. Another concern of interna- 
 tional dimensions and one whose officers, 
 I can vouch, are men of high character 
 and public spirit, also found itself con-
 
 1 6 HIGHER EDUCATION AND 
 
 fronted with a strike in 1910. This was 
 a highly organized business. For years 
 its sales department had tried to seek out 
 the highest grade of talent, and the re- 
 sult was a selling and distributing organ- 
 ization that was the model and the envy 
 of competitors. But questions of employ- 
 ment seem to have gone by default, the 
 general policy being confined to a sincere 
 but vague good-will toward employees 
 and acceptance of things as they were. 
 The issues of the strike were issues 
 with which we are all familiar. On the 
 workers' side, grievances and no worka- 
 ble machinery for redress; result: organ- 
 ization, concerted group action, force. 
 On the other side, there was a personal 
 readiness to hear grievances, coupled
 
 BUSINESS STANDARDS 17 
 
 with insistence on the ancient right of 
 the employer to conduct his own busi- 
 ness in his own way, without interference 
 from employees or the public. 
 
 After weeks of deadlock the strain of 
 a distressing situation, losses from the in- 
 terruption of business, regard for public 
 opinion and the opinion of friends, com- 
 bined with their own desire to do the 
 right thing, induced the employers, 
 probably against their best judgment, to 
 recede from their position. An agree- 
 ment was made providing for increased 
 wages, standardization of piece-work, a 
 preferential shop, and appointment by 
 the firm of a person to hear grievances 
 and to cooperate with a representative 
 of the union in securing redress.
 
 1 8 HIGHER EDUCATION AND 
 
 The union in this case was fortunate 
 in being represented by a high-minded 
 man who was a real statesman. The firm 
 selected a trained economist as labor ex- 
 pert, and he soon had an employment 
 department in operation. Together these 
 men and their colleagues have kept peace 
 in the concern and have developed and 
 expanded the machinery for settling dis- 
 putes into a model of industrial-relations 
 organization. 
 
 Some four years after the strike the 
 business head of the firm testified in a 
 public hearing that he should scarcely 
 know how to conduct his business with- 
 out the organization which now obtains 
 for dealing collectively with labor. He 
 also in the same hearing expressed the
 
 BUSINESS STANDARDS 19 
 
 view that a large employer is a trustee 
 of the public, responsible for the meas- 
 ure of public welfare in which his busi- 
 ness results; and this man, remember, is 
 not a reformer or even a radical, but just 
 a successful business man. 
 
 In this bit of labor history there were, 
 no doubt, many fortunate but uncon- 
 trollable factors which, otherwise com- 
 bined, would have brought a less happy 
 result. But two things stand out : first, the 
 laborers listened to wise counsel they 
 were well led; and second, the employ- 
 ers, when they consented to make an 
 agreement, gave the plan adopted their 
 genuine support. Combining good citi- 
 zenship with business sense they were 
 able to understand the new social influ-
 
 20 HIGHER EDUCATION AND 
 
 ences that make the formulas of 1880 a 
 poor gauge of efficiency factors in 1910. 
 They are now enjoying the benefits of 
 their willingness to learn. 
 
 The effect of social forces is seen un- 
 der different circumstances and from an 
 entirely different angle in the present 
 halting policy of American railroads. 1 
 Here, in addition to other social ele- 
 ments in the question, is the fact of 
 definite government control. This cir- 
 cumstance has accustomed railway man- 
 agers to look at both the internal and 
 the public factors in their success. A 
 number of years ago, before Mr. Justice 
 Brandeis became a member of the Su- 
 
 1 Referring to the situation early in 1916 when this sen- 
 tence was written.
 
 BUSINESS STANDARDS 21 
 
 preme Court, he pointed out, as many 
 others have since done, that the railroads 
 were looking too much to the govern- 
 ment factor, and too little to the econ- 
 omy and effectiveness of their own in- 
 ternal administration. Even though we 
 concede this point, it is still clear that 
 the highest efficiency of our railroads 
 must wait upon a clarification of policy 
 with respect to the great social fact af- 
 fecting railway operation the fact of 
 government control. We may not ap- 
 prove the precise manner in which the 
 railroads respond to this fact, but obvi- 
 ously they cannot be efficient and ig- 
 nore it. 
 
 Examples, ranging all the way from 
 accepted and enforceable legal restric-
 
 22 HIGHER EDUCATION AND 
 
 tions to the interplay of the most subtle 
 group sentiments, could be multiplied 
 at will to bring out the presence of 
 the social factor in efficiency standards. 
 Were it not that internal business poli- 
 cies, on the one hand, and public pol- 
 icy toward business, on the other, are so 
 frequently vitiated by failure to reckon 
 with the probable reactions which a par- 
 ticular measure will call forth, I should 
 not retard the discussion to emphasize 
 a point so obvious. But though the pres- 
 ence of social factors is obvious, how 
 to measure them is not obvious. Gen- 
 eral principles that bear on a specific 
 case are hard to locate and difficult to 
 apply. Even the broad lines of social 
 and business policy are not always clear,
 
 BUSINESS STANDARDS 23 
 
 and the probable trend of future policy 
 is still less clear. 
 
 Just what are the principles that are 
 being worked out in order to deter- 
 mine the forms and the limitations un- 
 der which business energy shall be ex- 
 pended, and how do they differ from 
 those followed a generation ago? Take 
 the other side of the efficiency ratio: 
 toward what results are we trying to have 
 business energy directed? Again, what 
 are the instruments with which society is 
 enforcing its purpose ? How effective are 
 they, how effective are they likely to be- 
 come ? Finally, what bearing will this 
 social effectiveness or lack of effectiveness 
 have on standards of business efficiency 
 for the generation about to begin its work ?
 
 24 HIGHER EDUCATION AND 
 
 Even though we cannot answer these 
 questions to-day, we have, to-day, the 
 task of educating the generation that 
 must answer them. More than this, the 
 education we provide for the generation 
 about to begin its work will determine, 
 in no small measure, the kind of an- 
 swers the future will give. It is, there- 
 fore, of great importance that in our 
 ideals and our policies for educating fu- 
 ture business men we should try to an- 
 ticipate the social environment in which 
 these men will do their work. 
 
 We are in the habit of speaking of 
 the present as a time of transition 
 the end of the old and the beginning 
 of the new. In a very real sense every 
 period is a period of transition. Society
 
 BUSINESS STANDARDS 25 
 
 is always in motion, but that motion at 
 times is accelerated and at other times 
 retarded. Clearly we are living now 
 in a period of acceleration a period 
 which must be interpreted not so much 
 in terms of where we are, as of whence 
 we came and whither we are going. 
 This means that we cannot hope to pre- 
 pare an educational chart for the future 
 without understanding the past. 
 
 In our study of business we are al- 
 ways emphasizing the "long-time point 
 of view," and we fall back upon this 
 convenient phrase to harmonize many 
 discrepancies between our so-called sci- 
 entific principles and present facts. On 
 the whole, we are well justified in as- 
 suming these long-time harmonies, but
 
 26 HIGHER EDUCATION AND 
 
 it will not do to overlook the fact that 
 many important and legitimate enter- 
 prises have to justify themselves from a 
 short- time viewpoint. Of more impor- 
 tance still is the fact that in this coun- 
 try enterprises of the latter sort have 
 predominated in the past. This circum- 
 stance has a very marked bearing on the 
 nature of our task, when we try to ap- 
 proach business from the standpoint of 
 education. 
 
 There are strong historical and tem- 
 peramental reasons why nineteenth-cen- 
 tury Americans were inclined to take a 
 short-time view of business situations. 
 Our fathers were pioneers, and the pio- 
 neer has neither the time, the capital, 
 the information, the social insight, nor
 
 BUSINESS STANDARDS 27 
 
 the need to build policies for a distant 
 future. The pioneer must support him- 
 self from the land ; he must get quick 
 results, and he must get them with the 
 material at hand. 
 
 Every one of our great industries 
 steel, oil, textiles, packing, milling, and 
 the rest has its early story colored 
 with pioneer romance. The same ro- 
 mantic atmosphere gave a setting of 
 lights and shadows to merchandising 
 and finance and most of all to transpor- 
 tation. Whether we view these nine- 
 teenth-century activities from the stand- 
 point of private business or of public 
 policy, they bear the same testimony to 
 the pioneer attitude of mind. 
 
 Considering our business life in its
 
 28 HIGHER EDUCATION AND 
 
 national aspects, our two greatest enter- 
 prises in the nineteenth century were 
 the settlement of the continent and the 
 building-up of a national industry. In 
 both these enterprises we gave the pio- 
 neer spirit wide range. With respect to 
 the latter, industrial policy before 1 900 
 was summed up in three items : protec- 
 tive tariff, free immigration, and essen- 
 tial immunity from legal restraints. 
 This is not the place to justify or con- 
 demn a policy of laissez-faire t or to 
 strike a balance of truth and error in 
 the intricate arguments for protection 
 and free trade ; nor need we here trace 
 the industrial or social results of immi- 
 gration. We need only point out that 
 the policy in general outline illustrates
 
 BUSINESS STANDARDS 29 
 
 the attitude of the pioneer. The thing 
 desired was obvious ; obvious instru- 
 ments were at hand immediate means 
 used for immediate ends. From his 
 viewpoint, the question of best means 
 or of ultimate ends did not need to be 
 considered. 
 
 In building our railways and settling 
 our lands the pioneer spirit operated 
 still more directly, and in this connec- 
 tion it has produced at the same time 
 its best and its worst results. The prob- 
 lem of transportation and settlement 
 was not hard to analyze ; its solution 
 seemed to present no occasion for diffi- 
 cult scientific study or for a long look 
 into the future. The nation had lands, it 
 wanted settlers, it wanted railroads. If
 
 30 HIGHER EDUCATION AND 
 
 half the land in a given strip of territory 
 were offered at a price which would at- 
 tract settlers, the settlers would insure 
 business for a railroad. The other half 
 of the land, turned over to a railroad com- 
 pany, would give a basis for raising capi- 
 tal to build the line. With a railroad in 
 operation, land would increase in value, 
 the railroad could sell to settlers at an 
 enhanced price and with one stroke re- 
 cover the cost of building and add new 
 settlers to furnish more business. 
 
 In its theory and its broad outline the 
 land-grant policy is not hard to defend. 
 The difficulties came with execution. 
 We know that in actual operation the 
 policy meant reckless speculation and 
 dishonest finance. We know that no
 
 BUSINESS STANDARDS 31 
 
 distinction in favor of the public was 
 made between ordinary farm lands, for- 
 est lands, mineral lands, and power sites. 
 We know that the beneficiaries of land 
 grants were permitted to exchange ordi- 
 nary lands for lands of exceptional value 
 without any adequate quid pro quo; and 
 we know that there were no adequate 
 safeguards against theft. 
 
 Wholesale alienation of public prop- 
 erty was intended to secure railroads and 
 settlers, but the government did not see 
 to it that the result was actually achieved. 
 Speculation impeded the railways in do- 
 ing their part of the task, while indi- 
 viduals enriched themselves from the 
 proceeds of grants or withheld the grants 
 from settlement to become the basis of
 
 32 HIGHER EDUCATION AND 
 
 future speculative enterprises. All this 
 seems to show that in execution at least 
 our policy from a national standpoint 
 was short-sighted. Careful analysis and 
 a more painstaking effort to look ahead 
 might have brought more happy results. 
 And how about the railroads from the 
 standpoint of private enterprise ? A rail- 
 way financier once described a western 
 railway as " a right of way and a streak 
 of rust." The phrase was applicable to 
 many railways. Deterioration and lack 
 of repairs were, of course, responsible 
 for part of the condition it suggests, but 
 much of the fault went back to orig- 
 inal construction. It was the wonder 
 and the reproach of European engineers 
 that their so-called reputable American
 
 BUSINESS STANDARDS 33 
 
 colleagues would risk professional stand- 
 ing on such temporary and flimsy struc- 
 tures as the original American lines. 
 Poor road bed ; poor construction ; tem- 
 porary wooden trestles across danger- 
 ous spans everything the opposite of 
 what sound engineering science seemed 
 to demand. Why did not the owners of 
 the roads exercise business foresight to 
 provide for reasonably solid construc- 
 tion ? 
 
 What seems like an obvious and easy 
 answer to all these questions is that both 
 the Government and the road were con- 
 trolled in many cases, as the people of 
 California well know, by the same men, 
 and these men were privately interested. 
 As public servants or as officers of cor-
 
 34 HIGHER EDUCATION AND 
 
 porations they were supposed to be pro- 
 moting settlement and transportation ; 
 as individuals they were promoting their 
 own fortunes. This result was secured 
 by the appropriation of public lands and 
 the conversion of investments which the 
 public lands supported. That this sort 
 of thing occurred on a large scale and 
 that it involved the violation of both 
 public and private trusts is fairly clear. 
 Public sentiment has judged and con- 
 demned the men who in their own in- 
 terests thus perverted national policy; 
 and we approve the verdict. But it is 
 not so easy to condemn the policy itself 
 or to indict the generation that adopted 
 it. Looking at the matter from the 
 standpoint of the nation, it was precisely
 
 BUSINESS STANDARDS 35 
 
 the inefficiency and the corruption in 
 government which augmented the the- 
 oretical distrust of government and made 
 it unthinkable to the people of the sev- 
 enties, that the Government should build 
 and operate railways directly. The land- 
 grant policy entailed corruption and 
 waste, of course ; but what mattered a 
 few million acres of land ! No one had 
 heard of a conservation problem at the 
 close of the Civil War. Resources were 
 limitless ; without enterprise, without 
 labor and capital, without transportation 
 they had no value, they were free goods. 
 The great public task of the nineteenth 
 century was to settle the continent and 
 make these resources available for man- 
 kind. This task it performed with nine-
 
 36 HIGHER EDUCATION AND 
 
 teenth-century methods. From our 
 standpoint they may have been wasteful 
 methods, but they did get results. In its 
 historical setting, the viewpoint from 
 which the task of settlement was ap- 
 proached was not so far wrong. 
 
 When we examine the counts against 
 the railroads as private enterprises, we 
 find that the poor construction, which 
 from our point of vantage looks like 
 dangerous, wasteful, hand-to-mouth pol- 
 icy, is only in part explained by the fact 
 of reckless and dishonest finance. I am 
 advised by an eminent and discriminat- 
 ing observer that the distinguished Ital- 
 ian engineer to whom Argentina en- 
 trusted the building of its railroad to 
 Patagonia, produced a structure which
 
 BUSINESS STANDARDS 37 
 
 in engineering excellence is the equal 
 of any in the United States to-day. But 
 the funds are exhausted and the Pata- 
 gonia railroad is halted one hundred and 
 fifty miles short of its goal ; there are no 
 earnings to maintain the investment. 
 
 The reaction of high interest rates on 
 the practical sense of American capital- 
 ists and engineers has made operation at 
 the earliest possible moment and with 
 the smallest possible investment of cap- 
 ital the very essence of American rail- 
 way building in new territory. Actual 
 earnings are expected to furnish capital, 
 or a basis for credit, with which to make 
 good early engineering defects. All this, 
 of course, is but another way of saying 
 that the criterion of engineering effi-
 
 3 8 HIGHER EDUCATION AND 
 
 ciency is not " perfection," but " good 
 enough." This distinction has placed a 
 large measure of genuine efficiency to 
 the credit of American engineers, and 
 it explains why Americans have done 
 many things that others were unwill- 
 ing to undertake. It is a great thing to 
 build a fine railroad in Patagonia, but I 
 am sure we all rejoice that the first Pa- 
 cific railroad did not have its terminus 
 in the Nevada sagebrush. The standard 
 of technical perfection set by the Italian 
 engineer did not fit the facts. It is not 
 the failure to attain his standard but the 
 failure to measure up to a well-consid- 
 ered standard of "good enough" that 
 stands as an indictment against Ameri- 
 can railway enterprise.
 
 BUSINESS STANDARDS 39 
 
 Viewed in historical perspective the 
 business environment of the pioneer ap- 
 pears to have been dominated by two 
 outstanding facts : one, seemingly inex- 
 haustible resources ; the other, a set of 
 political and economic doctrines which 
 told him that these resources must be 
 developed by individual initiative and 
 not by the State. The faster the re- 
 sources were developed the more rap- 
 idly the nation became economically 
 independent and economically great, 
 and since they could not be developed 
 by the State it is not strange that pri- 
 vate initiative was stimulated by offer- 
 ing men great and immediate rewards. 
 These rewards have encouraged individ- 
 uals and associations of individuals to
 
 40 HIGHER EDUCATION AND 
 
 aspire to a quick achievement of great 
 economic power, and their aspirations 
 have been realized. Such achievements 
 have been a dominating feature of our 
 business life, and we have regarded them 
 as an index of national greatness. 
 
 Abundance of resources, if it did not 
 make this the best way, at least made 
 it an obvious way, for the nineteenth 
 century to solve its business problems. 
 From our vantage point we can see that 
 serious mistakes were made. When we 
 set the foresight of our fathers against 
 our own informed and chastened hind- 
 sight their methods appear clumsy and 
 amateurish. But in the main they did 
 solve their problems : they gave us a set- 
 tled continent ; they gave us transporta-
 
 BUSINESS STANDARDS 41 
 
 tion and diversified industry. We now 
 have our garden and the tools with which 
 to work it. If the pioneer allowed the 
 children to pick flowers and in some 
 cases to run away with the plants and the 
 soil, he did not fail to develop the estate. 
 Our inheritance from the pioneer is 
 not only material but psychological. 
 The pioneer attitude of mind has made 
 a real contribution to our business stand- 
 ards. The very magnitude of our en- 
 terprises, the fact that we have had to 
 develop our methods as we went, our 
 success in approaching problems that 
 way, have given us a confidence in our- 
 selves and a readiness to undertake" big 
 things without counting the cost. This 
 readiness is a large, perhaps a dominant,
 
 42 HIGHER EDUCATION AND 
 
 factor in our contribution to world 
 progress. It is not an accident that the 
 greatest problems of mountain railway 
 building have' been met and solved by 
 American engineers, or that they have 
 carried a great railroad under two rivers 
 to the heart of our greatest city. These 
 in a private way, and the Panama Ca- 
 nal in a public way, are typical of 
 American engineering enterprise. 
 
 As with engineering, so with general 
 business. Our pioneer managers did not 
 lack imagination ; they were not afraid 
 to undertake ; they were not constrained 
 by worry lest they make mistakes. They 
 made many mistakes. Some were cor- 
 rected, others ignored, but many more 
 were concealed by an abundant success.
 
 BUSINESS STANDARDS 43 
 
 The pioneer could afford to do the next 
 thing and let the distant thing take care 
 of itself, and in large measure he es- 
 caped the penalties which normally fol- 
 low a failure to look ahead. 
 
 Substantial forces have tended to keep 
 the pioneer spirit alive. If some re- 
 sources have been depleted, other re- 
 sources have been found to take their 
 place. Scientific discovery, invention, 
 and the development of technique have 
 placed new forces at our command. 
 Products have been multiplied, but the 
 demand for products has multiplied 
 faster. We have been able to continue 
 offering men great and immediate re- 
 wards for the development of new 
 enterprises. As labor was needed, our
 
 44 HIGHER EDUCATION AND 
 
 neighbors have continued to supply it. 
 The result is that our business has con- 
 tinued to go ahead without being too 
 much concerned about the direction in 
 which it was going. 
 
 Business has eagerly appropiated the 
 results of science without itself becoming 
 scientific. The difficult way of science 
 makes slow progress against the dazzling 
 rewards of unbridled daring. So many 
 strong but untrained men have been en- 
 riched by seizing upon the immediate 
 and obvious circumstance there has 
 been so little necessity for sparing ma- 
 terials or men and so little penalty for 
 waste that we have developed a na- 
 tional impatience with the slow and 
 tedious process of finding out.
 
 BUSINESS STANDARDS 45 
 
 Along with our technical and business 
 enterprise, with the courage and imagi- 
 nation of which we are justly proud, a 
 too easy success has given us a tendency 
 to drop into a comfortable and optimistic 
 frame of mind. Imagination, intuition, 
 power to picture the future interplay of 
 forces, courage and capacity for quick ac- 
 tion all these qualities are as essential 
 to-day as they ever were to business suc- 
 cess. The pioneer environment reacting 
 on our native temperament has given us 
 these qualities in full measure, but it 
 has also given us a habit of doing things 
 in a hit-or-miss fashion. Our very im- 
 agination and courage applied to wrong 
 circumstances and in perverted form have 
 often borne the fruit of national defects.
 
 46 HIGHER EDUCATION AND 
 
 There is a strong inclination to assume 
 that the old approach to problems will 
 bring the same results that it did in the 
 past, and to forget that we are living in 
 a new world. The problems confront- 
 ing the pioneer were not the problems 
 we face to-day. It requires great ability 
 to draft a prospectus; in many of our 
 greatest enterprises drafting the pros- 
 pectus has been the crucial task. But a 
 prospectus is not a going concern. There 
 is a vast difference between promotion 
 and administration. In the promotional 
 stage of our business life we were solving 
 problems made up of unknown quanti- 
 ties, problems for which the only angle 
 of approach was found in the formula 
 x+y = z. We still have and shall always
 
 BUSINESS STANDARDS 47 
 
 have problems of the x-\-y = z type, but 
 if we apply that formula to a problem in 
 which 2 + 2 = 4 we are not likely to get 
 the best results. 
 
 Business may not yet be a science, but 
 it is rapidly becoming scientific. Scien- 
 tific inquiry is all the while carrying new 
 factors from the category of the unknown 
 to that of the known, and by so doing it 
 is setting a new standard of business effi- 
 ciency. The more brilliant qualities, 
 like courage and imagination, must be 
 coupled with capacity for investigation 
 and analysis, with endless patience in 
 seeking out the twos and the fours and 
 eliminating them from the equation. 
 When it is possible by scientific research 
 to distinguish a right way and a wrong
 
 48 HIGHER EDUCATION AND 
 
 way to do a task, it is not an evidence 
 of courage or imagination but of folly 
 to act on a faulty and imperfect reckon- 
 ing with the facts. 
 
 The person who uses scientific method 
 takes account of all his known forces; 
 he prepares his materials, controls his 
 processes and isolates his factors so as to 
 reveal the bearing of every step in the 
 process upon an ultimate and often a far 
 distant result. In other words, he tries 
 at every stage to build upon a sure foun- 
 dation. His trained imagination andjudg- 
 ment working on known facts set the 
 limit on what he may expect to find, and 
 interpret what he does find, all along the 
 way. 
 
 In so far as particular business en-
 
 BUSINESS STANDARDS 49 
 
 terprises have rested on engineering, 
 chemistry, biology, and other sciences, 
 a scientific method of approach has long 
 had large use in business ; but the scien- 
 tist in business has usually been a salaried 
 expert a man apart from the manage- 
 ment and it has been his results, and 
 not necessarily his methods, that have 
 influenced business practice. We are now 
 coming to understand that scientific 
 method is the only sure approach to all 
 problems ; it is a thing of universal ap- 
 plication, and far from being confined 
 to the technical departments of busi- 
 ness, where the technical scientists hold 
 sway in their particular specialties, it 
 may have its widest application in work- 
 ing out the problems of management.
 
 50 HIGHER EDUCATION AND 
 
 The way in which a man trained in 
 scientific method may determine busi- 
 ness practice in a scientific manner finds 
 illustration in a multitude of practical 
 business problems, ranging all the way 
 from the simplest office detail to the most 
 far-reaching questions of policy. To cite 
 an example, of the simpler sort: if an 
 item in an order sheet is identical for 
 eight out of ten orders is it better to 
 have a clerk typewrite the eight repeti- 
 tions along with the two deviations or 
 to use a rubber stamp ? Of course, there 
 are not one or two, but many, items in 
 an order sheet and the repetitions and 
 deviations are not the same for all items. 
 In practical application, the rubber-stamp 
 method means a rack of rubber stamps
 
 BUSINESS STANDARDS 51 
 
 placed in the most advantageous posi- 
 tion. It requires also a decision as to the 
 precise percentage of repetitions which 
 makes the stamp advantageous. Then 
 arises the further question, why not have 
 the most numerous repetitions numbered 
 and keyed and thus avoid the necessity 
 of transcribing them at all ? 
 
 The rule-of-thumb approach to this 
 kind of problem would proceed from 
 speculations concerning the effect of in- 
 terrupting the process to use the stamp, 
 the result of such interruptions on the 
 accuracy of work, difficulties in the 
 way of necessary physical adjustments, 
 and many other questions that would 
 occur to the practical manager. 
 
 The scientific method of approach
 
 52 HIGHER EDUCATION AND 
 
 would first inquire whether there are any 
 principles derived from previous motion 
 study or other investigations, that apply 
 to the case in hand. In accord with 
 such principles it would then proceed, 
 as far as possible, to eliminate neutral or 
 disturbing third factors and to arrange 
 a test. The results of the test would 
 lead, either to a continuance of the old 
 practice, or to the establishment of a 
 new practice for a certain period, after 
 which, if serious difficulties were not 
 revealed, the new practice would be 
 definitely installed. 
 
 It should be emphasized at this point, 
 that there is a fundamental difference be- 
 tween investigations or tests which con- 
 template an immediate modification of
 
 BUSINESS STANDARDS 53 
 
 practice and those investigations in which 
 research that is, the discovery of new 
 truths is the sole object. Tests which 
 are carried on within the business must 
 never lose sight of the fact that a busi- 
 ness is a going concern and that it is 
 impracticable and usually undesirable to 
 transform a business into a research lab- 
 oratory. Scientific methods in business 
 should not be confused with the larger 
 problem of scientific business research. 
 This larger task, if undertaken by the in- 
 dividual business concern, is the work of 
 a separate department. For business gen- 
 erally, it will have to be conducted either 
 by the Government, or by business-re- 
 search endowments. The point at which, 
 in practical business, research should give
 
 54 HIGHER EDUCATION AND 
 
 place to action is a question that wise 
 counsel and the sound sense of the trained 
 executive must determine. 
 
 An example of the contrast between a 
 scientific and a rule-of-thumb approach, 
 as applied to a question of major policy, 
 is found in discussions of the relative 
 advantages of a catalogue and mail-order 
 policy over against a policy of distribu- 
 tion by traveling salesmen. A few years 
 ago the head of one of the largest whole- 
 sale organizations in the United States, 
 talking with an intimate friend, expressed 
 fear that his house, which employed sales- 
 men, might be at a dangerous disadvan- 
 tage with its chief competitor, which did 
 an exclusively mail-order business. The 
 friend comforted him with the assurance
 
 BUSINESS STANDARDS 55 
 
 that there are many buyers who prefer 
 to be visited by salesmen and to have 
 goods displayed before them. This fact, 
 he held, would always give an adequate 
 basis for the prosperity of a house that 
 employed the salesman method of dis- 
 tribution. 
 
 Neither the fear nor the assurance 
 here expressed reveals a scientific atti- 
 tude of mind. Careful analysis shows, on 
 the one hand, that the mail-order policy 
 is not the most effective means of culti- 
 vating intensively a well populated ter- 
 ritory. On the other hand, it shows that 
 the expense of sending salesmen to dis- 
 tant points in sparsely populated areas 
 more than absorbs the profits from their 
 sales. Individual concerns have arrived
 
 56 HIGHER EDUCATION AND 
 
 at these conclusions by experiment and 
 accurate cost-keeping and have succeeded 
 in reaching a scientific decision as to 
 which territories should be cultivated 
 by salesmen and which ones should be 
 covered exclusively through advertising 
 and the distribution of catalogues and 
 other literature. 
 
 The difficulty that business men find 
 in applying scientific method consist- 
 ently in the analysis of their problems 
 is strikingly revealed in the labor policy 
 of the great majority of industrial con- 
 cerns. While many men of scientific 
 training are dealing with problems of 
 employment, probably no concern has 
 undertaken to make a scientific analysis 
 to determine what are the foundations
 
 BUSINESS STANDARDS 57 
 
 of permanent efficiency of the labor force 
 which they employ. This is not sur- 
 prising, when we remember how com- 
 plicated is the problem and how short 
 the time during which we have been em- 
 phasizing the human relations as dis- 
 tinguished from the material or mechan- 
 istic aspect of business organization. 
 
 To state even a simple problem of 
 management, like the one concerning 
 the order sheet, set forth above, is to 
 reveal some of the difficulties of analy- 
 sis which characterize all subject-matter 
 having to do with human activity. This 
 means that we should not expect results 
 too quickly nor should we be disap- 
 pointed if the first results of efforts at 
 scientific analysis are not absolutely con-
 
 58 HIGHER EDUCATION AND 
 
 elusive. As soon as we recognize that 
 business is primarily a matter of human 
 relations, that it has to do with groups 
 and organizations of human beings, we 
 see that scientific analysis of it cannot 
 proceed in exactly the same way as with 
 units of inanimate matter. The reaction 
 of human relations to changed influ- 
 ences, frequently cannot be predicted un- 
 til the changes occur. Business, in other 
 words, is a social science and, like all 
 social sciences, must deal primarily with 
 contingent rather than exact data ; like- 
 wise conclusions drawn from scientific 
 analysis must in large measure be con- 
 tingent rather than exact. 
 
 Although we cannot always isolate our 
 factors, control our processes, and other-
 
 BUSINESS STANDARDS 59 
 
 wise apply scientific method, with results 
 as conclusive as those obtained in labo- 
 ratories of chemistry, physics, or biology, 
 we need not therefore reject scientific 
 method in favor of a rule-of-thumb. We 
 should, however, be suspicious of too 
 sweeping claims based on any but the 
 most careful and painstaking analysis of 
 facts by persons who are thoroughly 
 trained in the kind of analysis they 
 undertake. 
 
 While a scientific approach will help 
 in solving many problems of business de- 
 tail, the substitution of scientific method 
 for a rule-of-thumb approach will real- 
 ize its object most completely in the in- 
 fluences exerted upon fundamental long- 
 time policy, influences which cannot bear
 
 6o HIGHER EDUCATION AND 
 
 fruit in a day or a year. The circum- 
 stances of our history have retarded the 
 acceptance of a long- time scientific view- 
 point in business, but forces now at 
 work are making powerfully for a sci- 
 entific approach to business manage- 
 ment. First among these is a realization 
 that our resources are measured in finite 
 terms. We have begun to take account 
 of what we have, and we are able in a 
 rough way to figure the loss from what 
 we have squandered. The situation is not 
 desperate, but we can see that it may 
 become so. To insure against possible 
 disaster in the future we need to exercise 
 effective economy in turning resources 
 into finished goods, and we need to elimi- 
 nate waste in the distribution and the
 
 BUSINESS STANDARDS 61 
 
 consumption of these goods. In private 
 business the need for such economy is 
 reflected in rising prices for raw mate- 
 rials. In its public aspect we have labeled 
 the problem, conservation. 
 
 A second force making for a scientific 
 approach to business is found in the be- 
 ginnings of a social policy to which I 
 have referred. This policy is showing 
 itself in limitations upon the way in 
 which materials and men may be utilized 
 and in a sharper definition of the busi- 
 ness man's obligations to employees, to 
 competitors and consumers. As long as 
 resources are to be had for the asking, 
 while cheap labor can be imported and 
 utilized without restraint, and where no 
 questions are asked in marketing the
 
 62 HIGHER EDUCATION AND 
 
 product, there is not the right incentive 
 to do things in a scientific way. As busi- 
 ness becomes more and more the subject 
 of legal definition, as the tendency grows 
 of regarding it as a definite service, per- 
 formed under definite limitations, and for 
 definite social ends, margins will be nar- 
 rowed and it will become increasingly 
 necessary to do things in the right way. 
 The scientific approach to business 
 has made great progress during the past 
 decade. Out of the hostile criticism to 
 which so-called big business has been 
 subjected have come several government 
 investigations and court records, in which 
 policies of different concerns have been 
 explained, criticized, and compared. 
 Besides, business men themselves have
 
 BUSINESS STANDARDS 63 
 
 become less jealous of trade secrets and 
 have shown an increasing inclination to 
 compare results. A good illustration of 
 this tendency is seen in the growth of 
 " open price associations " and in the 
 spirit in which credit men, sales man- 
 agers' associations, and other business 
 groups exchange information. In the 
 same spirit, business and trade journals 
 have given a large exposition of individ- 
 ual experience and increasing attention 
 to questions of fundamental importance. 
 More significant still has been the 
 scientific management propaganda. Mr. 
 Brandeis's dramatic exposition of this 
 movement in the railway rate cases in 
 1911 at once made it a matter of public 
 interest. Later discussion may not have
 
 64 HIGHER EDUCATION AND 
 
 extended acceptance of scientific man- 
 agement, but it has not caused interest 
 in it to flag. The movement has become 
 essentially a cult. Its prophet, the late 
 Frederick Taylor, by ignoring trade- 
 unionism and labor psychology in the 
 exposition of his doctrines, at once 
 drew down upon them the hostility of 
 organized labor ; the movement was 
 branded as another speeding-up device. 
 More serious than the antagonism has 
 been the spirit in which some of the 
 scientific management enthusiasts 
 not all have met it. They seem to as- 
 sume that their science is absolute and 
 inexorable, that it eliminates disturbing 
 factors and hence needs no adjustment 
 to adapt it to the difficulties met in its
 
 BUSINESS STANDARDS 65 
 
 application. This air of omniscient dog- 
 matism, together with the disasters of 
 false prophets, has somewhat compro- 
 mised the movement and has diminished 
 its direct influence. However, business 
 men have been stirred up. They have 
 become accustomed to using the words 
 " science " and " business " in the same 
 sentence. They are in a receptive atti- 
 tude for ideas. The indirect influence 
 has been great. 
 
 A final, and probably in the long-run 
 the most permanent, influence making 
 for the extension of scientific method in 
 business has been the new viewpoint 
 from which universities have been ap- 
 proaching the task of educating men for 
 business. Prior to 1900, university edu-
 
 66 HIGHER EDUCATION AND 
 
 cation for business in the few universi- 
 ties that attempted anything of the 
 sort was confined to such branches of 
 applied economics as money and bank- 
 ing, transportation, corporation finance, 
 commercial geography, with accounting 
 and business law to give it a professional 
 flavor. There were also general courses 
 labeled commercial organization and 
 industrial organization, but these were 
 almost entirely descriptive of the gen- 
 eral business fabric of the country, and 
 had but the most remote bearing on the 
 internal problems of organization and 
 management which an individual busi- 
 ness man has to face. The assumption 
 was that a man who was looking for- 
 ward to business would probably do well
 
 BUSINESS STANDARDS 67 
 
 to secure some information about busi- 
 ness, but there was little attempt at defi- 
 nite professional training of the kind 
 given to prospective lawyers, physicians, 
 or engineers. 
 
 Within the past few years universities 
 have begun to undertake seriously the 
 development of professional training for 
 business. The result has been that 
 through organized research and through 
 investigations by individual teachers and 
 students, the universities are gathering 
 up the threads of different tendencies 
 toward scientific business and are them- 
 selves contributing important scientific 
 results. Out of all this there is emerging 
 a body of principles and of tested prac- 
 tice which constitutes an appropriate
 
 68 HIGHER EDUCATION AND 
 
 subject-matter for a professional course 
 of study, and points the way to still 
 further research. 
 
 One of the earliest results of an ap- 
 proach to business in an attitude of sci- 
 entific research, is the discovery that 
 there are certain fundamental principles 
 which are alike for all lines of business, 
 however diverse the subject-matter to 
 which analysis is applied. Substituting 
 the principle of likeness for diversity as 
 the starting-point of business analysis, 
 has far-reaching consequences not only 
 for education and research but for man- 
 agement as well. First among these con- 
 sequences is the fact that search for 
 elements of likeness leads at once to 
 replacing the trade or industry with the
 
 BUSINESS STANDARDS 69 
 
 function as the significant unit both of 
 research and organization. 
 
 If we start our study of business by 
 separating manufacturing, railroading, 
 merchandising, banking, and the rest, 
 with a large number of more or less logi- 
 cal subdivisions in each field, and then try 
 to work out a body of principles appli- 
 cable to each subdivision, we soon run 
 into endless combinations and lose all 
 sense of unity in business as a whole. As 
 soon, however, as we approach business 
 from the standpoint of accounting, sales 
 management, employment, executive 
 control, and when we find that lessons 
 in statistics, advertising, moving mate- 
 rials, or executive management, learned 
 in connection with a factory, can be
 
 70 HIGHER EDUCATION AND 
 
 carried over with but slight adaptation 
 to the management of a store, we at 
 once get a manageable body of material 
 on which to work. 
 
 Recognition of the principle of like- 
 ness and of its corollary, analysis by 
 function rather than by trade, marks per- 
 haps the greatest single step yet taken in 
 the development of scientific business. 
 The principle, however, has its dangers. 
 Analysis by function implies functional 
 specialization in research and a similar 
 tendency in business practice. Without 
 specialization there can be no adequate 
 analysis of any large and complex body 
 of facts. With too intense specializa- 
 tion there is always danger that the as- 
 sembling and digesting of facts, and
 
 BUSINESS STANDARDS 71 
 
 especially the conclusions drawn from 
 them, will reflect some peculiar slant of 
 an individual or of a particular specialty. 
 The accountant does not always go 
 after the same facts as the sales mana- 
 ger, and even with the same facts the 
 two are likely to draw quite different 
 conclusions as to their bearing on a gen- 
 eral policy. Specialization, too, may re- 
 sult in setting an intense analysis of one 
 group of facts over against a very super- 
 ficial view of other facts or again, an 
 intense analysis of the same facts from 
 one viewpoint with failure to consider 
 them from another, and perhaps equally 
 important, viewpoint. Unless these weak- 
 nesses are corrected, the business will 
 lack balance ; the work of departments
 
 72 HIGHER EDUCATION AND 
 
 will not harmonize ; there will be no 
 fundamental policy ; goods sold on a 
 quality basis will be manufactured on a 
 price basis all of which leads to dis- 
 astrous results. 
 
 Scientific method is the first article in 
 the creed by which business training 
 must be guided. The growing necessity 
 for critical and searching analysis of 
 business problems, justifies all the effort 
 we can put forth to develop plans for 
 training into a structure of which scien- 
 tific method shall be the corner-stone. 
 But analysis is not all. Following analy- 
 sis must come synthesis. Somewhere all 
 the facts and conclusions must be as- 
 sembled and gathered up into a working 
 plan. It is this task of leveling up rough
 
 BUSINESS STANDARDS 73 
 
 places in the combined work of depart- 
 ment specialists, that puts the training 
 and insight of both the executive and 
 the director of research to the most se- 
 vere test. It is a mark of a well-trained 
 executive that in performing his task he 
 instinctively follows principles instead of 
 trusting alone to momentary intuitions, 
 however valuable and necessary these 
 may be. 
 
 And here it is that the second article 
 in the creed of business training appears. 
 The executive's task is primarily to ad- 
 just human relations, and the nature of 
 the principles by which these adjust- 
 ments are made, determines the relations 
 of a concern to its laborers, to competi- 
 tors, to customers, and to the public. If
 
 74 HIGHER EDUCATION AND 
 
 the executive comes to his task without 
 a mind and spirit trained to an appreci- 
 ation of human relations, he is not likely 
 so to synthesize the work of his subor- 
 dinates as to make for either maximum 
 efficiency within the business or its max- 
 imum contribution to the life of the 
 State. 
 
 The term "executive" in large and 
 highly organized concerns is likely to 
 mean the head of a department. A large 
 proportion of the department heads now 
 in business are men of purely empirical 
 training. Their horizon is likely to be 
 limited and to center too much in the 
 departmental viewpoint. They may per- 
 haps be able to see the whole business, 
 but if they do, they will probably see
 
 BUSINESS STANDARDS 75 
 
 it exclusively from the inside. There is 
 frequently nothing in their business ex- 
 perience that has made them think of 
 the great forces at work in society at 
 large. As the bulk of business has been 
 organized in the past, there has been no 
 department in which, automatically and 
 in the regular course of business, a view 
 looking outward is brought to bear. If 
 it came at all, it was reflected back from 
 the larger relations and the larger social 
 contacts of the head of the business. 
 Many general executives have been pro- 
 moted from the position of head of 
 department at a period in life when 
 their habits of thought had become 
 crystallized, and it was not natural 
 that they should entirely change those
 
 76 HIGHER EDUCATION AND 
 
 habits with the change in their respon- 
 sibilities. 
 
 Besides, the economics of competition 
 and a strong group sentiment among 
 business men have tended to make them 
 resist social influences which might re- 
 act upon the policies of their own busi- 
 ness. Superficial conclusions drawn from 
 such experiments as those of Pullman 
 and of Patterson, to which reference has 
 been made, have seemed to justify such 
 resistance and have fortified men in the 
 belief that business and response to so- 
 cial influence should be kept separate in 
 water-tight compartments. 
 
 More recently men have been coming 
 to understand the fundamental defects 
 in the Pullman and the original Cash
 
 BUSINESS STANDARDS 77 
 
 Register plans and have come to realize 
 that even a separate welfare department 
 may be successfully incorporated in a 
 business, if only certain fundamental 
 policies are followed in its management. 
 Still more significant is the view look- 
 ing-outward and the consequent har- 
 monizing of social and business motives, 
 which is coming in the ordinary devel- 
 opment of business policies as a result 
 of their more fundamental analysis. 
 
 Perhaps the greatest step toward a 
 fuller consideration of facts on the out- 
 side is taken, when a business creates a 
 separate department of employment. It 
 is hard to see how the head of an em- 
 ployment department can have the larg- 
 est measure of success if he sees only the
 
 78 HIGHER EDUCATION AND 
 
 facts on the inside. A comprehensive ap- 
 plication of scientific method to problems 
 of employment leads a long way into 
 analysis of the social facts affecting the 
 people who are employed. 
 
 From different angles the same thing 
 is true in other departments of business, 
 notably so in the case of advertising and 
 sales. One of the most obvious outside 
 facts which affect sales, is the location 
 and density of the population, and yet it 
 is a fact which frequently is neglected. 
 Another outside fact, which ultimately 
 advertisers will have to consider, is the 
 consuming power of population. They 
 have been very keen to study our psy- 
 chological reactions, and in doing this 
 they have undertaken the entire charge
 
 BUSINESS STANDARDS 79 
 
 of the evolution of our wants. But they 
 have not always gone at their work from 
 the long-time point of view. Sometime 
 they will have to take account of the 
 fact that unwise consumption impairs 
 efficiency and depletes the purchasing 
 power from which advertisers must be 
 paid. 
 
 The next step in the scientific analy- 
 sis of business is to provide for more 
 ample analysis of facts on the outside. 
 Weakness at this point explains the de- 
 fects in many plans for the welfare of 
 employees, it explains the defects in sci- 
 entific management, mentioned above, 
 and it explains many other shortcom- 
 ings in projects for increasing the effec- 
 tiveness of business.
 
 8o HIGHER EDUCATION AND 
 
 But men who approach business from 
 the standpoint of university research are 
 not free from the same danger. In their 
 effort to orient themselves with the busi- 
 ness facts, they get the business point of 
 view and run the risk of centering atten- 
 tion too much on materials and material 
 forces. Even psychological reactions of 
 men and women may be analyzed from 
 the standpoint of their mechanics, with- 
 out ever going back to those impelling 
 motives which have their roots in the 
 human instincts and complex social re- 
 actions of which the men and women 
 are a part. 
 
 Approached from *he standpoint of 
 scientific method, the field of conflict 
 between different interests in business
 
 BUSINESS STANDARDS 81 
 
 and between so-called " good business " 
 and "good ethics" becomes measurably 
 narrowed. I do not mean to give sci- 
 ence the sole credit for achievements 
 along this line. More frequently ad- 
 vance in moral standards has been forced 
 on unwilling victims through legislation, 
 public opinion, or class struggle, and 
 then men have discovered, as a happy 
 surprise after the event, that " good 
 ethics " was profitable. But science has 
 done something, and might have done 
 still more, if our efforts at scientific anal- 
 ysis had not been so often underweighted 
 on the human side. These very discov- 
 eries of harmony between wholesome 
 practice and good business constitute a 
 part of the body of fact of which a truly
 
 82 HIGHER EDUCATION AND 
 
 scientific method must take account. 
 When a review of all the cases in which 
 compulsion has changed existing meth- 
 ods shows an almost invariable adapta- 
 tion and a tendency toward better re- 
 sults after the level of competition is 
 raised, a man of scientific training im- 
 mediately asks the question, whether a 
 fundamental law is not at work. 
 
 A glance at social legislation during 
 the last century reveals some interesting 
 uniformities. Every step in the devel- 
 opment of the English Factory Acts as 
 they stood at the beginning of the pres- 
 ent war, starting with the first Child 
 Labor Bill in 1802 and ending with the 
 Shop Regulation Act of 1912, had been 
 taken against the protest of the most
 
 BUSINESS STANDARDS 83 
 
 vocal elements in the trades concerned. 
 In nearly every case investigation will 
 show, either that the requirements of 
 the measure enacted fell considerably be- 
 low the practice of the best concerns, or 
 that the whole industry was in need of 
 some outside impulse to start it in the 
 way of more efficient organization. As 
 long as it is permissible to employ five 
 women and five children to tend five 
 machines, there is not the right incen- 
 tive to make adjustments by which all 
 five of them can be tended by one man. 
 In this country in our forty-nine ju- 
 risdictions we have been going forty-nine 
 times over the experience of England 
 and other countries, in connection with 
 each effort to force up the competitive
 
 84 HIGHER EDUCATION AND 
 
 level. We have seemed to be quite un- 
 able to apply the most obvious lessons 
 of experience either at home or abroad 
 to new cases, and yet essentially the same 
 uniformity of adaptation has occurred 
 here as abroad. Like our employer, 
 whom a strike impelled to adopt an 
 advanced policy toward labor, we find 
 after the event that we should not know 
 how to do business under the standards 
 in force before the law compelled a 
 change. 
 
 Enforcement of the Sherman Anti- 
 Trust Law has been frequently cited as 
 an example of unwise government inter- 
 ference. With respect to many of the 
 incidents of enforcements, criticism has 
 been well founded. But the net result
 
 BUSINESS STANDARDS 85 
 
 of that enforcement has been a much 
 sounder body of law on the important 
 subject of fair and unfair competition. 
 Besides, we now have in the Federal 
 Trade Commission the beginnings of an 
 administrative organization for dealing 
 with the whole subject of monopoly and 
 restraint of trade. And more than all 
 this, we have a better prospect than ever 
 before, of some sort of mutual respect 
 between government and business, and 
 of honest cooperation in working out 
 their mutual problems. It is not likely 
 that the Anti-Trust Law has prevented 
 honest men from earning legitimate 
 profits from legitimate business service 
 to anything like the extent which would 
 be indicated by the vigor with which it
 
 86 HIGHER EDUCATION AND 
 
 has been opposed. But even if it has, we 
 have received something for the price 
 paid. 
 
 And so the list might be lengthened, 
 pure food and drugs, meat inspection, 
 public service regulation, industrial 
 safety, and the rest, in nearly every 
 case, from a purely business point of 
 view, opposition, in so far as it related 
 to the main point of government policy, 
 has been a mistake. Refusal of the busi- 
 ness men affected to accept a policy of 
 regulation has tended to shut them out 
 of the councils in making adjustments 
 of detail. This fact has hindered the gov- 
 ernment in performing a service which 
 in most cases both the public and the 
 business needed to have done.
 
 BUSINESS STANDARDS 87 
 
 Even when we admit, as obviously 
 we must, the persistence of conflict be- 
 tween different interests with respect to 
 a large mass of business detail, the fact 
 of group influences and social control 
 still remains an important consideration 
 to which business analysis must give due 
 weight. There has been a large mass of 
 business in this country, in which the 
 community has been unable to recog- 
 nize any productive service ; it has been 
 regarded only as a means of acquisition 
 for those who pursue it. Legislation, 
 public opinion, and the evolution of 
 enforceable standards within particular 
 business groups are tending all the while 
 to narrow the sphere of purely acquisi- 
 tive business. With respect to that great
 
 88 HIGHER EDUCATION AND 
 
 mass of business which has both an ac- 
 quisitive and a productive side, these 
 forces are gradually bringing us to an 
 attitude of mind in which we regard 
 gain as a by-product of service. 
 
 The public is also recognizing that 
 the purpose of goods and services is to 
 promote individual and community wel- 
 fare, and as fast as public policy to that 
 end can be worked out, it is carrying 
 emphasis even beyond specific products 
 and services to the social ends for which 
 these products and services exist. In 
 these ways society too is trying, clum- 
 sily perhaps, to take a long-time view of 
 its business and to conserve the human 
 values that make for progress. 
 
 Obviously it is but a partial and in-
 
 BUSINESS STANDARDS 89 
 
 complete analysis of a business situation 
 that omits these human factors ; a work- 
 ing policy that fails to anticipate their 
 force and then to reduce the zone of 
 conflict to its lowest limits is neglecting 
 an important element in the definition 
 of long-time efficiency. And business 
 men are beginning to see this. 
 
 A few weeks ago the manager of a 
 large department store in San Francisco 
 was kind enough to show me his record 
 of departmental profits for a number 
 of months. The fluctuation in relative 
 profits of different departments month 
 by month was apparent, especially the 
 fact that after a certain month several de- 
 partments which had previously earned 
 high profits became relatively much
 
 90 HIGHER EDUCATION AND 
 
 less profitable. I asked the manager to 
 explain, and he did in this way : At the 
 time when the change occurred a new 
 policy had been inaugurated by which 
 employment of help had been central- 
 ized and standardized for the whole 
 concern. As a result, when certain de- 
 partments which had been decidedly 
 sub-standard with respect to wages were 
 brought up to standard, they were un- 
 able to earn anything like the profits 
 which they had previously shown. 
 
 Without going into the question of 
 the connection between high wages and 
 profits, of which this incident in my 
 opinion was an exception, it was clear 
 to the manager as to me that the in- 
 crease in wages in these particular de-
 
 BUSINESS STANDARDS 91 
 
 partments had been accompanied by an 
 immediate loss in profits. Furthermore, 
 the manager was unable to determine, 
 from figures available before and after 
 the change, that this loss had been di- 
 rectly compensated by gains in other 
 departments. In order to get his view- 
 point concerning the change at issue, I 
 asked him two questions : ( i ) Why was 
 he willing to make a change of such 
 a fundamental character without being 
 able to ascertain in advance whether or 
 not it would be profitable ? (2) In the 
 absence of facts that could be incor- 
 porated in the accounts, was it his be- 
 lief that the change would in time be 
 profitable, and if so, how did he reach 
 his conclusion ?
 
 92 HIGHER EDUCATION AND 
 
 His response to the first question re- 
 vealed to me an intensely natural but 
 nevertheless complex motive. He said, 
 substantially, that he was confident that 
 standardized employment was the only 
 acceptable policy, from the standpoint 
 of the general manager. Given the ne- 
 cessity of standardizing, it was necessary 
 for the general reputation of the business 
 to standardize upward rather than down- 
 ward. He wanted his business to be 
 regarded as one in which the best stand- 
 ards of employments obtained. Further- 
 more, he added, "California will soon 
 have a minimum wage law, and I want 
 this business to be well in advance of any 
 wage standards which may be imposed 
 by law."
 
 BUSINESS STANDARDS 93 
 
 Answering the second question more 
 specifically, the manager recognized the 
 advertising value of a reputation for hav- 
 ing good conditions of employment. 
 He had discovered no tendency for gen- 
 eral profits to diminish or for the rate 
 of increase to be retarded more than 
 temporarily. In the absence of definite 
 facts to the contrary he considered it 
 safe to assume that as soon as the busi- 
 ness should become adjusted to the new 
 standards, standardization of wages up- 
 ward would be profitable for the busi- 
 ness as a whole. He wanted to make 
 the change voluntarily and to commence 
 operating successfully on the new basis 
 in advance of competitors. 
 
 It is scarcely possible to discuss this
 
 94 HIGHER EDUCATION AND 
 
 sort of business situation with a pro- 
 gressive manager, without feeling that 
 he does not approach business exclu- 
 sively from the standpoint of gain ; in 
 other words, to use the phrase of Adam 
 Smith, he is not exclusively an " eco- 
 nomic man." The manager of a mod- 
 ern business, on the contrary, is a man 
 very much like the rest of us, and being 
 such a man he is first of all desirous of 
 conforming to whatever standards are in 
 way of acceptance by that part of so- 
 ciety in which he moves. Obviously, 
 these standards are made up of both 
 selfishness and altruism, with selfishness 
 tending all the time to become more 
 enlightened as society advances. 
 
 As we come to distinguish more
 
 BUSINESS STANDARDS 95 
 
 clearly between reward for service and 
 mere one-sided gain, there occurs a par- 
 allel change in men's motives; they be- 
 come more sensitive to social disfavor 
 and to social esteem and less and less 
 willing to devote their lives to activity 
 by which no one but themselves is ben- 
 efited. In this reaction of altruism with 
 enlightened selfishness there emerges in 
 men's minds a new concept of their own 
 interest and a better understanding of 
 the kind of business policy that in the 
 long-run brings them the greatest re- 
 ward. Of course, this does not mean 
 that enlightened selfish interest has 
 ceased, or that it will ever cease, to be 
 a motive force in business. But there 
 is a vast difference between selfishness
 
 96 HIGHER EDUCATION AND 
 
 untempered with other motives and 
 selfishness eager for the esteem of one's 
 fellows. 
 
 Clearly it is a task of higher educa- 
 tion to help promote response to the 
 more enlightened motives. The diffi- 
 culty which even men of advanced 
 university training have in taking full ac- 
 count of human factors indicates some- 
 thing of the nature and importance of 
 the task. The so-called "scientifically 
 trained" manager tends to undervalue 
 the human factor of his equation. His 
 analysis is likely to be overweighted on 
 the material side. When the university 
 starts as it is starting and should start 
 to train future executives, it needs to 
 analyze its own problem, and take full
 
 BUSINESS STANDARDS 97 
 
 account of the dangers against which 
 it has to guard. Otherwise the training 
 itself will be overweighted on the ma- 
 terial side and will perpetuate the weak- 
 ness that it ought to correct. 
 
 The greatest danger in this connec- 
 tion, as I see it, arises out of the dis- 
 tinction between the so-called " cultural " 
 and the "vocational" point of view. 
 This distinction comes to us with a 
 large mass of traditional authority, and 
 we have classified subjects and erected 
 barriers on the assumption that the dis- 
 tinction is real. As far as the training 
 of business executives is concerned, I 
 am confident that the distinction is one 
 which ought never to be made. It is a 
 great misfortune, when young men and
 
 98 HIGHER EDUCATION AND 
 
 women who are preparing for a serious 
 career are permitted to think of culture 
 as a non-functioning ornament ; equally 
 unfortunate is it for them to think of 
 their prospective vocations as activities 
 devoid of cultural association. 
 
 A few days ago a student who had 
 already selected his profession and was 
 anxious to be about it confided to me, 
 as many others have done, how distaste- 
 ful he was finding the task of " work- 
 ing off his culture." Does any one really 
 suppose that the sophomore who is 
 " working off his culture " under faculty 
 compulsion, in order to get his college de- 
 gree, is really absorbing from his study 
 anything which, as the faculty assumes, 
 makes him a better man and yet, as he
 
 BUSINESS STANDARDS 99 
 
 himself believes, contributes nothing to 
 effectiveness in his profession ? Or take 
 the case of the man who devotes him- 
 self with professional earnestness to his 
 two, three, or four years of college work 
 will he find that he has invested his 
 time and his money on a purely orna- 
 mental luxury that has no relation to 
 his later work ? 
 
 The first great element of training 
 which the university can give to future 
 business men is a mastery of scientific 
 method as a means of analyzing prob- 
 lems and synthesizing results. Quite as 
 fundamental as this is the development 
 of an intelligent and sympathetic ap- 
 proach to questions of human relation- 
 ship. Only the beginning steps in the
 
 ioo HIGHER EDUCATION AND 
 
 direction of business efficiency can be 
 taken while attention is confined to the 
 material and mechanistic side of busi- 
 ness organization. No secure basis for 
 permanent efficiency can be established 
 until we are prepared to go deeply into 
 the question of human motives and to 
 understand something of the complex re- 
 actions that come from individual and 
 group associations. Without such a basis 
 we cannot hope for a nationally effec- 
 tive business organization. 
 
 Business is a form of cooperation 
 through which men exercise control over 
 natural forces and thereby produce things 
 with which to satisfy human wants. Any 
 subject well taught, which gives an in- 
 sight into human relations or into nature
 
 BUSINESS STANDARDS 101 
 
 and man's control over it, will help pre- 
 pare a person to deal with the intricate 
 problem of human relations in business 
 that is, if the student has studied the 
 subject in an attitude of mind to see its 
 bearing on what he is preparing to do. 
 The question is not so much one of too 
 few or too many so-called culture sub- 
 jects, but rather of the attitude of mind 
 in which all subjects are undertaken. It 
 is a question of getting such a survey of 
 the great facts of human experience and 
 of so pointing their significance as to 
 enable men to approach a problem of 
 human relationship with sympathy and 
 something of a long-time dynamic view- 
 point. When this is accompanied by 
 a mastery of scientific method, the foun- 
 
 UN1VERSITY OF CALIFORNIA 
 ^A UAUWARA COLLEGE
 
 102 HIGHER EDUCATION AND 
 
 dations are reasonably secure. Without 
 such foundations, secured either in col- 
 lege or out, analysis of problems in a 
 specialized business field is almost sure 
 to be one-sided and incomplete. 
 
 The kind of professional training 
 that I would suggest for the future 
 business executive would be laid on the 
 foundation of a college course of two, 
 three, or four years in which the view- 
 point and the varied methods of study 
 in several diverse branches of knowledge 
 had been thoroughly instilled. When the 
 student passed to the professional study 
 of business he would be expected to 
 master the fundamentals of business or- 
 ganization and management, including 
 the basic elements of subjects like ac-
 
 BUSINESS STANDARDS 103 
 
 counting, finance, and other divisions 
 of organization common to all lines of 
 business. All of these studies would be 
 pursued with constant reference to the 
 fact that business is carried on in a com- 
 munity in which certain public policies 
 are enforced and in recognition of the 
 fact that business should conform to 
 these policies and help to make them 
 effective in contributing to public wel- 
 fare. 
 
 As the student advances, the course 
 would proceed toward greater and greater 
 specialization, and would finally culmi- 
 nate in an intensive study of some fairly 
 narrow business problem, pursued until 
 the student has mastered it in principle 
 and in detail. The result of his study
 
 104 HIGHER EDUCATION AND 
 
 would be set forth in dignified readable 
 English which an intelligent layman 
 could comprehend and which would 
 make the article acceptable for publica- 
 tion in a journal of standing. 
 
 Professional study of business, then, 
 should give students a comprehensive 
 many-sided survey of business and a thor- 
 ough grasp of scientific method as used in 
 analyzing business facts. It should pre- 
 pare the student to think complicated 
 business problems through to the end 
 and to put the results of his thinking to- 
 gether into an effective working plan. 
 Finally, it should maintain an atmos- 
 phere in which business problems are 
 regarded in a large and public-spirited 
 way.
 
 BUSINESS STANDARDS 105 
 
 We are well under way with profes- 
 sional training for business ; but if stu- 
 dents fail to get the general educational 
 foundation for it, it will not accomplish 
 the best results. If the two, three, or four 
 years of college study is regarded as some- 
 thing purely ornamental and irrelevant, 
 while they are getting it, if it fails to 
 arouse an appreciation both of scientific 
 method and of human values, or if these 
 values are thought of as something to for- 
 get when the student comes to the anal- 
 ysis of practical problems, the univer- 
 sity will not have done what it might do 
 for the promotion of high standards of 
 efficiency in business. 
 
 In all of the discussions I have tried 
 to point out how emphasis in business
 
 106 HIGHER EDUCATION AND 
 
 is gradually shifting from acquisition, to 
 production and service ; how there are 
 gradually evolving in business, profes- 
 sional standards of fitness, of conduct, and 
 of motive; and how more and more these 
 standards enter into the measuring of 
 business success. Our educational assump- 
 tions still rest too largely on the old dollar 
 standard of success with its well-known 
 inferences about the blood-and-iron 
 equipment with which that success can 
 be attained. 
 
 Psychologists tell us that we tend to 
 get what we expect. If we fail to create 
 enthusiasm for the opportunity for serv- 
 ice in business; if we assume that young 
 persons who enter business are going to 
 measure their returns in dollars alone ;
 
 BUSINESS STANDARDS 107 
 
 or if we continue to feature, as we have 
 done, the break between the so-called 
 " cultural " and the professional parts of 
 the university course, there will be danger 
 that we shall continue to get the thing 
 for which we plan. 
 
 There can be no doubt that many of 
 our old assumptions about the relative 
 dignity and social distinction attaching 
 to different kinds of study, as well as the 
 assumption of a purely mercenary mo- 
 tive in business, have impeded a whole- 
 some reaction between higher education 
 and business standards. These assump- 
 tions have created an atmosphere an 
 objective and subjective attitude of mind, 
 a set of motives and desires, of appreci- 
 ations and valuations, all of which stand
 
 io8 HIGHER EDUCATION AND 
 
 in the way of the most far-reaching edu- 
 cational results. 
 
 So far as these assumptions can be 
 rationally explained, they rest on ideas 
 that are in part mistaken, in part exag- 
 gerated, and in part obsolete. The appli- 
 cation of scientific method to business 
 has created an entirely new relation- 
 ship between business and education. 
 Scientific analysis and social policy are 
 establishing a new connection between 
 the material and the human facts of 
 business. In the new atmosphere the 
 business executive requires those fine 
 qualities of mind and spirit, and the 
 ability to command these qualities for a 
 given task, which peculiarly it is the 
 work of the university to cultivate.
 
 BUSINESS STANDARDS 109 
 
 In proportion as universities have vig- 
 orously undertaken this work, and have 
 applied scientific method to their own 
 problem of articulating it with higher ed- 
 ucation in general, the line of approach 
 to professional business training has be- 
 come increasingly clear. Among the 
 notable developments of the past decade 
 has been a shifting of emphasis from the 
 training of specialists to the training of 
 business executives. As preparation for 
 executive work comes to be generally 
 recognized as an appropriate field for 
 systematic professional study, the stand- 
 ards that scientific method has already 
 achieved will become fixed and better 
 standards of business efficiency and serv- 
 ice will emerge.
 
 ffiitetfitie 
 
 CAMBRIDGE . MASSACHUSETTS 
 U . S . A
 
 J/ 
 
 THE LIBRARY 
 
 UNIVERSITY OF CALIFORNIA 
 Santa Barbara 
 
 STACK COLLECTION 
 
 THIS BOOK IS DUE ON THE LAST DATE 
 STAMPED BELOW. 
 
 0)/i-5,'6o(F1453sl)476D
 
 UC SOUTHERN REGIONAL LIBRARY FACILITY 
 
 A 000 721 543 7 
 
 HF 
 1131 
 
 TT7