r industries, competitive wastes,
or some of them, are eliminated by combination, there is a genuine
advance in technical efficiency, which must be set to the credit of
business motives. In that event, however, the divergence between
business interests and those of the consumers is merely pushed one
stage further forward; it arises, of course, over the question of
prices. If any one is disposed to think that this picture of the
economic waste which accompanies the domination of production by
business interests is overdrawn, he may be invited to consider the
criticisms upon the system passed by the "efficiency engineers," who
are increasingly being called upon to advise as to industrial
organization and equipment. "The higher officers of the corporation,"
writes Mr. H. L. Gantt of a Public Utility Company established in
America during the war, "have all without exception been men of the
'business' type of mind, who have made their success through
financiering, buying, selling, etc.... As a matter of fact it is well
known that our industrial system has not measured up as we had
expected.... _The reason for its falling short is undoubtedly that the
men directing it had been trained in a business system operated for
profits, and did not understand one operated solely for production_.
This is no criticism of the men as individuals; they simply did not
know the job, and, what is worse, they did not know that they did not
know it."

{176}

In so far, then, as "Business" and "Management" are separated, the
latter being employed under the direction of the former, it cannot be
assumed that the direction of industry is in the hands of persons whose
primary concern is productive efficiency. That a considerable degree
of efficiency will result incidentally from the pursuit of business
profits is not, of course, denied. What seems to be true, however, is
that the main interest of those directing an industry which has reached
this stage of development is given to financial strategy and the
control of markets, because the gains which these activities offer are
normally so much larger than those accruing from the mere improvement
of the processes of production. It is evident, however, that it is
precisely that improvement which is the main interest of the consumer.
He may tolerate large profits as long as they are thought to be the
symbol of efficient production. But what he is concerned with is the
supply of goods, not the