358 LARGE COMMERCIAL HOUSES IN THE MODERN STATE. 



workmen, are so important, that such an excess of 

 expenditure is amply justified. 



The esprit de corps produced by the arrangements 

 described, which binds together all the fellow labourers 

 of the firm of Siemens & Halske, and gives them an 

 interest in its welfare, explains in great part the com- 

 mercial success which we achieved. 



This leads me to the question, whether altogether 

 it is to the general interest that large commercial 

 houses should be established, which permanently remain 

 in the possession of the family of the founder. It 

 might be said that such large firms are hindrances to 

 the rise of many smaller undertakings and therefore 

 act injuriously. That is certainly pertinent in many 

 cases. Wherever it is possible to maintain an export 

 trade by the productions of handicraftsmen, large 

 competing factories have a prejudicial effect. Wherever, 

 on the contrary, the development of new branches of 

 industry or the opening of the markets of the world 

 for those already in existence comes into question, 

 large centralised business undertakings with abundant 



o o 



capital are indispensable. Such capitals can certainly 

 at the present day be most easily brought together 

 in the form of joint stock companies, but these can 

 nearly always be only pure gain-seeking companies 

 which, by their own regulations, are only allowed to 

 have in view the attainment of the largest possible 

 amount of profit. They are therefore only adapted 

 for reaping advantage from already existing well- 

 tried methods of working and organizations. The 



