tion quite distinct from
the work of the superintendent or manager of a business.

_How Much the Term "Labor" Covers._--We include under the term _labor_
all effort expended in a routine way in carrying on business. The
overseers in the shops, the bookkeepers, clerks, secretaries,
treasurers, agents, and, in short, all who perform any of the labor of
management for which they get or can get salaries are laborers in the
comprehensive sense in which we use the word. It comes about that the
employer usually labors; for he does the highest and most responsible
work in his own mill or shop. It is not, however, in his capacity as
_entrepreneur_, or "_undertaker_," that he labors; for, as the
_entrepreneur_, properly speaking, he employs and pays for all the
work that receives a stipend. He may employ himself, indeed, and set
aside a stated sum to pay his own salary; but this means that in his
capacity as _entrepreneur_ he needs a good manager and hires himself
to act in that capacity. Scrupulous fidelity is the most important
quality that a manager can possess, and the employer can always trust
himself to possess it so long as it is his own interests that he
controls.

_Entrepreneur and Capitalist._--In the same way we include in the
capital of an establishment whatever invested funds the employer
himself supplies, as well as what he hires from others. Here again a
man is likely to serve in more than one capacity, for as an
_entrepreneur_ he hires capital and as a capitalist he lets it out for
hire, so that in the one capacity he hires capital from himself acting
in the other capacity. The man "puts money" into his own business and
gets interest for the use of it.

_The Different Functions of the Same Man distinguished in
Business._--This distinction between the different functions that one
person may perform is not a mere refinement of theory, but is
something that is recognized in business and has great practical
importance. In a corporation officials who are also stockholders
receive salaries that are usually reckoned on the basis of the amount
that they could get in the market if they were to enter the employment
of other corporations and do the same kind of work they are now doing.
Favoritism may give them considerably more than this amount, but even
then this amount is the basis of the calculation which fixes their
stipend. If they are paid more than their work is worth to their own
corporations, what they get is so