The cost of production of a modern workman has constantly increased, with the advance of the industrial arts. The period of preparation, of education and training, necessary to turn out competent workmen, has been increasing; and the period of full workmanlike efficiency has been shortening, in those industries that employ the delicate and exacting processes of the modern technology. The shortening of this working-life of the workman is due both to a lengthening of the necessary period of preparation, and to the demand of these processes for so full a use of the workman's forces that even the beginning of senescence will count as a serious disability,—in many occupations as a fatal disability. It is also a well ascertained fact that effectual old age will be brought on at an earlier period by overwork; overwork shortens the working life-time of the workman. Thorough speeding-up ("Scientific Management"?) will unduly shorten this working life-time, and so it may, somewhat readily, result in an uneconomical consumption of the community's man-power, by consuming the workmen at a higher rate of speed, a higher pressure, with a more rapid rate of deterioration, than would give the largest net output of product per unit of man-power available, or per unit of cost of production of such man-power.
On this head the guiding incentives of the businessman and the material interest of the community at large—not to speak of the selfish interest of the individual workman
—are systematically at variance. The cost of production of workmen does not fall on the business concern which employs them, at least not in such definite fashion as to make it appear that the given business concern or businessman has a material interest in the economical consumption of the man-power embodied in this given body of employees. Some slight and exceptional qualification of this statement is to be noted, in those cases where the processes in use are such as to require special training, not to be had except by a working habituation to these processes in the particular industrial plant in question. So far as such special training, to be had only as employees of the given concern, is a necessary part of the workman's equipment for this particular work, so far the given employer bears a share and an interest in the cost of production of the workmen employed; and so far, therefore, the employer has also a pecuniary interest in the economical use of his employees; which usually shows itself in the way of some special precautions being taken to prevent the departure of these workmen so long as there is a clear pecuniary loss involved in replacing them with men who have not yet had the special training required. Evidently this qualifying consideration covers no great proportion of the aggregate man-power consumed in industrial enterprises under business management. And apart from the instances, essentially exceptional, where such a special consideration comes in, the businessmen in charge will, quite excusably as things go, endeavour to consume the man-power of which they dispose in the persons of their employees, not at the rate that would be most economical to the community at large, in view of the cost of their replacement, nor at such a rate as would best suit the taste or the viability of the
particular workman, but at such a rate as will yield the largest net pecuniary gain to the employer.
There is on record an illustrative, and indeed an illustrious, instance of such cannily gainful consumption of man-power carried out systematically and with consistently profitable effect in one of the staple industries of the country. In this typical, though exceptionally thoroughgoing and lucrative enterprise, the set rule of the management was, to employ none but select workmen, in each respective line of work; to procure such select workmen and retain them by offering wages slightly over the ordinary standard; to work them at the highest pace and pressure attainable with such a picked body; and to discharge them on the first appearance of aging or of failing powers. In the rules of the management was also included the negative proviso that the concern assumed no responsibility for the subsequent fortunes of discharged workmen, in the way of pension, insurance or the like.
This enterprise was highly successful and exceedingly profitable, even beyond the high average of profits among enterprises in the same line of business. Out of it came one of the greater and more illustrious fortunes that have been accumulated during the past century; a fortune which has enabled one of the most impressive and most gracious of this generation's many impressive philanthropists, never weary in well-doing; but who, through this cannily gainful consumption of man-power, has been placed in the singular position of being unable, in spite of avowedly unremitting endeavour, to push his continued disbursements in the service of humanity up to the figure of his current income. The case in question is one of the most meritorious known to the records of
modern business, and while it will conveniently serve to illustrate many an other, and perhaps more consequential truth come to realisation in the march of Triumphant Democracy, it will also serve to show the gainfulness of an unreservedly canny consumption of man-power with an eye single to one's own net gain in terms of money.
Evidently this is a point in the articulation of the modern economic system where a sufficiently ruthless outside authority, not actuated by a primary regard for the pecuniary interests of the employers, might conceivably with good effect enforce a more economical consumption of the country's man-power. It is not a matter on which one prefers to dwell, but it can do no harm to take note of the fact for once in a way, that these several national establishments of the democratic order, as they are now organised and administered, do somewhat uniformly and pervasively operate with an effectual view to the advantage of a class, so far as may plausibly be done. They are controlled by and administered in behalf of those elements of the population that, for the purpose in hand, make up a single loose-knit class,—the class that lives by income rather than by work. It may be called the class of the business interests, or of capital, or of gentlemen. It all comes to much the same, for the purpose in hand.
The point in speaking of this contingent whose place in the economy of human affairs it is to consume, or to own, or to pursue a margin of profit, is simply that of contrasting this composite human contingent with the common man; whose numbers account for some nine-tenths or more of the community, while his class accounts for something less than one-tenth of the invested wealth,