The Theory of Business

第8章

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第8章

The Theory of Business 佚名

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The Theory of Business
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  Illustrativeinstanceswillreadilysuggestthemselves。Manyabusinessmanturnsbypreferencetosomethinglessdubiousthanthedistillingofwhiskeyorthesaleofdeleterioushouseholdremedies。Theyprefernottousedeletriousadulterants,evenwithinthelimitsofthelaw。Theywillratherusewoolthanshoddyatthesameprice。Theofficialsofarailwaycommonlyprefertoavoidwrecksandmanslaughter,evenifthereisnopecuniaryadvantageinchoosingthemorehumanecourse。Morethanthat,itwillbefoundtruethatthemoreprosperousofthecraft,especially,takeprideandpainstomaketheserviceoftheirroadsortheoutputoftheirmillsasefficient,notsimplyasthepecuniaryadvantageoftheconcerndemands,butasthebestpecuniaryresultswilladmit。Instancesareperhapsnotfrequent,buttheyarealsonotaltogetherexceptional,whereaprosperouscaptainofindustrywillgooutofhiswaytoheightentheserviceabilityofhisindustryeventoadegreethatisofdoubtfulpecuniaryexpediencyforhimself。Suchaberrationsare,ofcourse,notlarge;andiftheyarepersistedintoanyveryappreciableextenttheresultis,ofcourse,disastroustotheenterprise。Theenterpriseinsuchacasefallsoutofthecategoryofbusinessmanagementandfallsundertheimputationofphilanthropy。

  Thecaptainsofthefirstclassnecessari1yarerelativelyexemptfromtheseunbusinesslikescruples。

  Theeconomicprincipleof“chargingwhatthetrafficwillbear“isdiscussedwithgreatcareandelaborationbyR。T。Ely,MonopoliesandTrusts,ch。III,“TheLawofMonopolyPrice。“Cf。,forillustrationofthepracticalworkingofthisprinciple,testimonyofC。M。Schwab,ReportoftheIndustrialCommission,vol。XIII。pp。453-455。

  18。“Monopoly“ishereusedinthatloosersensewhichithascolloquially,notinthestrictsenseofanexclusivecontrolofthesupply,asemployed,eg。,byMrElyinthevolumecitedabove。ThisusageisthemoreexcusablesinceMr。Elyfindsthata“monopoly“inthestrictsenseofthedefinitionpracticallydoesnotoccurinfact。Cf。Jenks,TheTrustProblem,ch。IV。

  E。g。theprestigevalueofIvorySoap。

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