industry so long that they labor under the impression that they know all that there is to be known; and their very conceit closes up the avenue through which light could and would come to make them more efficient, if they would but let it. "Again, there is another class of men who are and have been for years agents, superintendents and foremen, who were never fitted, either by natural endowment or acquired ability, to fill such positions. They would never have been selected for their present posts, but in the early days of the business they drifted into their places, and they have drifted ever since. "Consolidations are, for the most part, made up of firms which have grown up from very small beginnings. Twenty-five years ago it was exceptional for factories to begin with any considerable working force. They usually started small, and, from time to time, as the business increased, added to their plant. Now that has been all changed; and a plant is created in three or six months which starts fully equipped and capable of turning out a product as large as that of firms that have been working to build up a trade for a score of years. "The agents, superintendents, foremen for such new plants, usually being drawn from other going concerns, are selected because of their fitness. "The old method was very different. For example: In an office a young man was hired as bookkeeper, and he did pretty much all the office work that was not done by the proprietor. In time, as business grew, another clerk was hired. In the course of years the office staff had grown till there were a dozen clerks, and the man who chanced to be the first had been promoted at different times until he came to be the agent or superintendent. But he had stopped growing long ago, and simply held a position which he never filled. His being there, however, had prevented some one else from filling it who could, and who, had he been given the opportunity, would have rendered a larger service. Had the inefficient man been set aside and the progressive, efficient man put in his place, the business would, perhaps, have been saved from bankruptcy, and instead of the company dying of dry rot, it might be giving employment to hundreds of other employes. This illustration applies with equal force to many of the departments connected with almost every manufacturing establishment. "The management of the consolidation is severely criticised because it refuses to be handicapped by such men, and in making changes it often works hardship to the individual; but continuing an inefficient man in a position which he did not fill wrought hardship to the efficient man who was kept out of it, and also to hun dreds of employes who have been deprived of work which the other man's ability would have provided. So that the hardship is not all on one side. "Consolidations have closed factories and have thrown many faithful and efficient employes out of work. But every failure through such inefficiency as has been described has done the same thing; and, in many cases, had the consolidation not been brought about, failure would have been the next step. "Then again, owing to antiquated equipment, poor management or economic conditions, it is simply impossible to operate some factories except at a loss; and even though the consolidation had not been consummated, many factories which have been closed by the consolidation would have been closed by the operation of economic law. The final result has simply been anticipated a little, and not a great while either. "A gentleman who was connected with a line of industry which had recently been brought under consolidation said to me that the consolidation had discharged three men, and that he was now working four times as hard as he did formerly. I suggested that a man was somewhat better than a machine and more was expected of him; but that, if he had in his factory a machine from which he could get only 25 per cent. of efficiency he would throw it into the junk heap, and if he, as a man, drawing a good salary, had been only rendering 25 per cent. of his efficiency, he, too, was entitled to a place in the scrap heap. In this day and generation, 25 per cent. of efficiency means to step out and give some one else a chance, who can and will work at higher pressure and render larger service." ADVANTAGE OF FOREIGN CORPORATIONS IN COURTS. Corporations sometimes desire to be incorporated in another state than that in which their business is located so as to be able to have suits transferred to the federal courts. A corporation of one state, doing business in another state, has the right to bring suits in the latter state in the United States courts instead of the courts of the state, if the amount involved exceeds two thousand dollars. And if a suit involving that amount or more is brought against such a corporation in a state court it has the right to remove the cause to the United States court for trial and judgment. This privilege is given by the constitution of the United States to non-resident citizens, and is enjoyed by corporations equally with individuals bringing or defending suits outside of the states of their residence. It is granted for the purpose of relieving non-residents of the effect of any local prejudice, and a non-resident corporation may waive the privilege and sue or defend in the state courts like a resident corporation if it chooses to do so. |