6 UNIVERSITY OF COLORADO STUDIES 



men with a talent for baking kept at the business of making' clocks, 

 nor its men with capacity for clock-making working in a soap factory. 

 By eliminating the effect of family and other influences in industry, 

 and placing each man in a position according to his ability, and making 

 his tenure and promotion depend upon his efficiency, the trust has 

 greatly increased the opportunities for competition. Here is a quotation 

 from Bridge's Inside History of the Carnegie Steel Company showing 

 the methods adopted by that company, and in all probability still kept 

 up by the United States Steel Corporation: 



A workman was building a heating furnace. "There goes that book- 

 keeper! If I use a dozen bricks more than I did last month, he knows it and comes 

 around to ask why." This was no exaggeration. The minutest details of the cost 

 of material and labor in every department appeared from day to day and week to 

 week in the accounts, and soon every man about the place was made to realize it. 

 The men felt, and often remarked, that the eyes of the company were always on 

 them through the books. If the workmanship was exceptionally good and the 

 output of a high average, which was insisted upon, the head of the department 

 received a letter of congratulation, and perhaps a present at Christmas time. If it 

 fell behind either in quality or output, the fact was promptly brought to his notice 

 and Captain Jones would see if the fault lay in the machinery; if it did, he generally 

 knew how to remedy it. If the defect was in the human machine and reproof did 

 not suffice to correct it, the man was replaced by an understudy, which Captain 

 Jones usually had trained in view of such contingencies.' 



The trust has a great advantage in the selection of its manager. 

 Some men excel in organizing industries and in finding the work for 

 which each man is best adapted. The great problem of modern industry 

 is to find these men. A trust has a number of separate plants and each 

 plant has its manager. Each manager is pitted against and compared 

 with the others, and the most capable one selected to be the general 

 manager of the entire trust. 



Again, by this fierce competition between the trust's various plants 

 the output is increased. The plants are matched against each other. 

 Each man knows his work is measured by the work of some other man 

 in another and similar plant. This knowledge makes him put his 

 utmost energy into what he is doing. Such results are impossible in 

 industry conducted on a small scale. 



» Bridge, p. 85. , 



