President White—This admirable paper causes me to say to every one here that they cannot afford to go away and not deposit a dollar with the Secretary for the book of the Proceedings of this Congress. The book of these admirable and practical addresses should be in every home, should be in the library. I hope that every one will leave their address, will register, and receive as soon as they are published a copy of the Proceedings. (Applause.)
It was Louis D. Brandeis who said a year or two ago that the railroads of this country could save a million dollars a day with practical economy and with good system. He got that idea from and quoted Mr. Harrington Emerson of New York City, who will now address this audience upon “The Rescue of the Fit.”
Address, “The Rescue of the Fit”
Mr. Emerson—Mr. President, Ladies and Gentlemen: There is a growing clash between employer and employe. The old order is passing away and the new order has not yet come in. The millions lost in strikes are forever wasted. This direct waste due to supposed conflict of interest is one of the great losses. The other is more serious. Not one man in ten is in the place in the world best fitted for him, not one place in ten is filled by the best man in the world for the job. When the job is not bossed by the right man and when the man is on the wrong job there is a waste whose magnitude is incalculable. It is to mitigate, palliate, obviate, these two great sources of waste that on a large scale a new plan is being put into operation. The theory that underlies it is founded on principles, not on empiricism or on tradition or on rule of thumb.
It is theory that has given us the best designs for steam turbines, gas engines, dynamos, aeroplanes—it is theory that gives us this plan of the Employment Department.
What is the theory?
All manufacturing costs fall under three divisions: Materials, Labor, Equipment Charges.
Materials means all materials, whether for manufacture or operation.
Labor means all personal service or personal charges, whether direct, indirect, supervising or managing.
Equipment charges are made up of taxes, insurance, depreciation and interest on investment.