and appreciably less than that proportion of the discretionary national establishment,—the government, national or local, courts, attorneys, civil service, diplomatic and consular, military and naval. The arrangement may be called a gentlemen's government, if one would rather have it that way; but a gentleman is necessarily one who lives on free income from invested wealth—without such a source of free, that is to say unearned, income he becomes a decayed gentleman. Again, pushing the phrasing back a step farther toward the ground facts, there are those who would speak of the current establishments as "capitalistic;" but this term is out of line in that it fails to touch the human element in the case, and institutions, such as governmental establishments and their functioning, are after all nothing but the accustomed ways and means of human behaviour; so that "capitalistic" becomes a synonym for "businessmen's" government so soon as it is designated in terms of the driving incentives and the personnel. It is an organisation had with a view to the needs of business (i.e. pecuniary) enterprise, and is made up of businessmen and gentlemen, which comes to much the same, since a gentleman is only a businessman in the second or some later generation. Except for the slightly odious suggestion carried by the phrase, one might aptly say that the gentleman, in this bearing, is only a businessman gone to seed.
By and large, and taking the matter naively at the simple face value of the material gain or loss involved, it should seem something of an idle question to the common man whether his collective affairs are to be managed by a home-bred line of businessmen and their successive filial generations of gentlemen, with a view to accelerate the velocity and increase the volume of com
petitive gain and competitive spending, on the one hand, or by an alien line of officials, equally aloof from his common interests, and managing affairs with a view to the usufruct of his productive powers in furtherance of the Imperial dominion.
Not that the good faith or the generous intentions of these governments of gentlemen is questioned or is in any degree questionable; what is here spoken of is only the practical effect of the policies which they pursue, doubtless with benevolent intentions and well-placed complacency. In effect, things being as they are today in the civilised world's industry and trade, it happens, as in some sort an unintended but all-inclusive accident, that the guidance of affairs by business principles works at cross purposes with the material interests of the common man.
So ungraceful a view of the sacred core of this modern democratic organisation will need whatever evidence can be cited to keep it in countenance. Therefore indulgence is desired for one further count in this distasteful recital of ineptitudes inherent in this institutional scheme of civilised life. This count comes under the head of what may be called capitalistic sabotage. "Sabotage" is employed to designate a wilful retardation, interruption or obstruction of industry by peaceable, and ordinarily by legally defensible, measures. In its present application, particularly, there is no design to let the term denote or insinuate a recourse to any expedients or any line of conduct that is in any degree legally dubious, or that is even of questionable legitimacy.
Sabotage so understood, as not comprising recourse to force or fraud, is a necessary and staple expedient of business management, and its employment is grounded in
the elementary and indefeasible rights of ownership. It is simply that the businessman, like any other owner, is vested with the right freely to use or not to use his property for any given purpose. His decision, for reasons of his own, not to employ the property at his disposal in a particular way at a particular time, is well and blamelessly within his legitimate discretion, under the rights of property as universally accepted and defended by modern nations. In the particular instance of the American nation he is protected in this right by a constitutional provision that he must not be deprived of his property without due process of law. When the property at his disposal is in the shape of industrial plant or industrial material, means of transportation or stock of goods awaiting distribution, then his decision not to employ this property, or to limit its use to something less than full capacity, in the way for which it is adapted, becomes sabotage, normally and with negligible exceptions. In so doing he hinders, retards or obstructs the working of the country's industrial forces by so much. It is a matter of course and of absolute necessity to the conduct of business, that any discretionary businessman must be free to deal or not to deal in any given case; to limit or to withhold the equipment under his control, without reservation. Business discretion and business strategy, in fact, has no other means by which to work out its aims. So that, in effect, all business sagacity reduces itself in the last analysis to a judicious use of sabotage. Under modern conditions of large business, particularly, the relation of the discretionary businessman to industry is that of authoritative permission and of authoritative limitation or stoppage, and on his shrewd use of this authority depends the gainfulness of his enterprise.
If this authority were exercised with an eye single to the largest and most serviceable output of goods and services, or to the most economical use of the country's material resources and man-power, regardless of pecuniary consequences, the course of management so carried out would be not sabotage but industrial strategy. But business is carried on for pecuniary gain, not with an unreserved view to the largest and most serviceable output or to the economical use of resources. The volume and serviceability of the output must wait unreservedly on the very particular pecuniary question of what quantity and what degree of serviceability will yield the largest net return in terms of price. Uneconomical use of equipment, labor and resources is necessarily an everyday matter under these circumstances, as in the duplication of plant and processes between rival concerns, and in the wasteful use of all resources that do not involve expenditure on the part of the given concern.
It has been the traditional dogma among economists and publicists in these modern communities that free competition between the businessmen in charge will indefeasibly act to bring the productiveness of industry to the highest practicable pitch and would lead to the most unreserved and vigilant endeavour to serve the community's material needs at all points. The reasons for the failure of this genial expectation, particularly under latterday business management, might be shown in some detail, if that were needed to enforce the argument as it runs in the present connection. But a summary indication of the commoner varieties and effects of sabotage as it is systematically applied in the businesslike conduct of industry will serve the purpose as well and with less waste of words and patience.
It is usual to notice, and not unusual to deplore the duplication of plant and appliances in many lines of industry, due to competitive management, as in factories engaged in the same class of manufacture, in parallel or otherwise competing railways and boat lines, in retail merchandising, and in some degree also in the wholesale trade. The result, of course, is sabotage; in the sense that this volume of appliances, materials and workmen are not employed to the best advantage for the community. One effect of the arrangement is an increased necessary cost of the goods and services supplied by these means. The reason for it is competition for gain to be got from the traffic. That all this is an untoward state of things is recognised on all hands; but no lively regret is commonly spent on the matter, since it is commonly recognised that under the circumstances there is no help for it except at the cost of a more untoward remedy.