574 TRANSACTIONS OF SECTION F. 
and then dealt with the causes of past failures, more especially with the objec- 
tions of the trades unions and their leaders to all extensions of the movement 
beyond its present limited field of application. The author’s proposals for over- 
coming trades-union hostility were :— 
1. Perfect freedom for all workers to join their respective unions if so 
inclined. ; 
2. Recognition of trades-union rates of pay as basis of the copartnership 
scheme. 
3. Election of selected labour leaders in each industry and locality as directors 
of large firms or companies. 
The objections that might be raised to these proposals—by critics from both 
sides—were discussed in some detail, and the author expressed the opinion that 
the wave of unrest which is still troubling the industrial world in all countries 
will only be calmed and give place to more harmonious co-operation between 
capital and labour when the manual workers are given a larger share of the 
profits of industry and a greater stake than they now possess in the welfare and 
prosperity of their country. 
Copartnership, in the author’s opinion, is the most simple and effective means 
for bringing about this change in the organisation of our industries, and at the 
same time preserving that efficiency of financial and technical control, without 
which no industry can succeed in these modern days. Past failures in the 
attempts to run industries entirely by working-men for the workers’ own 
benefit have proved the need for a closer co-operation between Capital, Brains, 
and Labour. There are three essentials required for the successful conduct of 
modern manufacturing industries: (1) A plentiful and cheap supply of capital; 
(2) a plentiful supply of skilled and contented labour;, (3) skilled technical and 
business management which can take instant advantage of all opportunities 
offered for improving the manufacture and of extending the market for the 
finished goods. 
The copartnership principle is the one which offers the best chance of attain- 
ing these three conditions of success, and if trades-union hostility to the 
principle could be disarmed the movement would extend with amazing rapidity. 
3. The Scientific Study of Business Organisation, 
By Professor C. H. OupHam. 
Faculties of Commerce in our universities are designed to provide university 
education mainly for the Employer Class, the persons who are to control and 
direct business enterprises. In their programmes of studies an important place 
should be allotted to the scientific study of modern Business Organisation. 
Apart from this purely educational value, the study has great practical import- 
ance from wider standpoints, viz.: (i) the profitable development of large-scale 
business in British industry and commerce, and (ii) the application of economic 
science to the changing structure of business under modern conditions. 
The paper pointed out how this branch of study suffers in these countries from 
a lack of authentic material in the form of analysed examples of actual business 
organisation based on British practice and experience. At present we have to 
look to American business men and to American universities for guidance in this 
study. This position is unsatisfactory : for American business organisation and 
practice differ in some important respects from British organisation and practice, 
and the interpretation of this difference is itself a curiously interesting economic 
problem. The writer advocated concerted action to procure the required 
materials from the actual working organisations of typical British businesses. 
Modern Business Organisation, as a subject for study, includes the following 
five branches, viz. : (a) Forms of the Business Authority, classified into types by 
noting the way legal responsibility is fixed, with the merits and limitations of 
each type. The controlling authority undergoes transformation into new forms 
as the scale of the business grows larger. (b) The internal Industrial Organisa- 
tion of the individual business. The proper Location, Lay-out, and Equipment 
of the plant. This establishes a departmental organisation and inter-relation for 
each step in the movement of a producf through the factory from raw material up 
