Music Trade Review
Issue: 1905 Vol. 40 N. 15 - Page 13
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE:
" THE COMMERCAL ECONOMIST.'
A
New Type of Expert Whom Progressive
Manufacturers Employ—His Business is to
Look Over a Whole Plant and Suggest
Methods for Curtailing Expenses and In-
creasing Revenue—Why Insiders Can't Do
This.
One of the developments of this commercial
era, with its tremendous growth toward com-
bination and concentration, is a specialist who
styles his profession "the science of economical
method." He is employed by large manufactur-
ers and others controlling men and machinery
to suggest methods by which expenses can be cur-
tailed and revenue increased. He made these
remarks about his "job":
"At the outset 1 wish to say that I do not
claim infallibility or anything like second sight.
I am just a common, every-day mortal. Yet I
believe that to succeed as a commercial econo-
mist one should possess in quite a degree that
peculiar attribute called intuition. In other
words, the calling cannot be learned from books
or by watching the operations of those follow-
ing it.
"The economical expert enters upon his task
unbiased. He specifies that he has full author-
ity to censure in his report any man at fault
in the entire institution, even though it chance
to be the very man who employed him.
"1 had that identical experience in a New Eng-
land factory. The manager of the institution
hired me to detect the leak in expenses so that
he might plug it up. I found that reports were
passing from men to bosses, from bosses to de-
partment foremen, from foremen to superin-
tendent, and so on to the general manager, un-
verified other than by general statements. For
instance, the foreman's excuse for not turning
out the standard amount of given articles in a
certain time was accepted without any attempt
by his superior to find out whether the excuse
was a valid one. The system was in vogue be-
cause the manager himself had first let down
the bars by accepting the reports of his superin-
tendent without debate. The men were not
bringing the plant up to its full measure of ef-
ficiency because of the incompetence of the gen-
eral manager—the man who had hired me. I
bluntly told him so in my report, lie flushed
and bit his lips.
" 'How much do you want for telling me I
am not fit for my position?' he asked.
"I referred to our contract, and he wrote out
a check for the price stipulated.
"In a certain harvesting machine works of
Illinois I discovered that one of its heaviest ex-
penses was the purchase of what is known as
'agricultural vermilion.' This color was used
lavishly on every farming implement the firm
manufactured, and cost from S\i> to 15 cents a
pound. The firm used a million pounds a year,
costing, approximately, $100,000.
"Here was a gigantic bill to reduce. This
firm, and others, like it, hart operated foi years,
using this material and paying this enormous
price. The essentials of the paint were that it
should be durable enough to stand the weather,
that it should be easy 1o apply and that it
should always possess a bright and beautiful ap-
MUSIC TRADE REVIEW
pearance. It was said that nothing had been tigates to see whether a cheaper or less material
may not accomplish the same result, and concen-
discovered so far that would take the place of
trates his mind on every detail of the manufac-
the material used in these cardinal features.
ture, from the raw state of the material until it
"Agricultural vermilion was then composed of
is on the cars waiting transportation a finished
orange mineral and red lead, dyed or enriched
in color with a more intense coloring material, article, properly crated.
of which but. a small percentage was used. The
"He must know, and be able to explain why ho
bulk of the pigment was lead, which cost from
knows. He must be able to defend his deductions
6 to 12 cents a pound. The dye cost from 40 to against those of the oldest and most experienced
80 cents a pound.
hand in the concern's employ. His figures will
"It was a problem for a chemist, and I hap- be challenged, his observations criticised and his
pened to number chemistry among my studies. recommendations derided. He' must take all thiii
I discarded orange mineral and red lead for a as a natural attendant upon the service for which
base, and used an equally effective pigment
he is paid, and demonstrate to the men at the
which cost only 4-10 of a cent a pound. The dye top that his report has a foundation of gran it*
necessary to use with this pigment cost more and cannot be laughed out of court."
than the dye used on the other base, but col-
lectively ,the latter materials cost less than one-
V0CAL10N CO. SUES WRIGHT.
half what the former process had cost, and gave
an equally satisfactory quality of agricultural Compelling Him to Live up to Certain Con-
tracts—Decision Reserved.
vermilion.
"That item saved the works $50,000 a year.
(Special to The Review.)
The fee was based on the amount saved. The
Boston, Mass., April 12, 1903.
harvester company never took occasion to pro-
The bill in equity brought by the Vocal ion Or-
tect the process, and now its rivals all over the gan Co. vs. Morris S. Wright, to have him com-
country are sharing the benefits for which it pelled to specifically perform an alleged contract
so generously paid.
to assign a half interest to the company in cer-
"But the delicate feature of the expert's task
tain patents upon musical instruments, was
is when his investigations lead him up to human heard by Judge Hale in the United States Circuit
agencies. He must steel himself against criti- Court yesterday. The company claims that the
cism and ridicule. Men who have served a long contract, which was made May 15, 1901,. was
apprenticeship at a particular business don't tak<3 while Wright was superintendent of its factory
kindly to the man who is hired to seek out a at Worcester, and under it he was to receive
better way. Superintendents and assistants $5,000 a year and 1 per cent, of the increased
rarely extend the helping hand. But the expert factory output, for which he was to assign a one-
is a sort of buccaneer, and he doesn't mind.
half interest in patents on his inventions. De
"He is backed with authority from headquar- cision reserved.
ters and can rove where he pleases. Too much
reticence in a certain quarter makes him sus-
BUSY TIMES WITH LAUTER.
picious that all is not well there, and he inves-
tigates the more assiduously. Sometimes he C. A. Borst Sending in Big Orders—New Lauter
Factory Under Way—Badly Needed.
finds a foreman protecting an incompetent hand
from motives of sympathy. 1 have run across
(Siiccial to The Review.)
cases where incompetents were shielded for a
Newark, N. J., April 12, 1905.
small weekly monetary consideration paid to the
Charles A. Borst, the general traveling repre-
men immediately over them.
sentative of Lauter Co., is sending in large or-
"When turned loose in an establishment the ders to the home house for Lauter pianos. Mr.
commercial economist begins on the books. He Borst is at present in New York State, and re-
finds how much is charged against each par- ports the greatest enthusiasm among dealers who
ticular article of manufacture for cost of ma- aheady handle the piano, many of whorrt have
terial, construction, insurance, storage, etc. Then expressed I heir opinion that in tone and work-
he goes after the machine, takes it apart, tests manship the Lauter is the best upright piano put
its various wheels, rods, bolts, etc., to see whether forth in the industry. When seen to-day, Mr.
less material would stand the required strain: Cameron, president of the Lauter Co., stated that,
examines every point for surplus material and sales at wholesale had been far beyond expecta-
work, and, if he can, recommends the building tion?, and that the problem has been how to make
of a machine according to his ideas. He takes a two pianos do where four are wanted.
risk in this, because if his model doesn't come up
The new Lauter factory is getting under way.
to the service requirement he's a discredited ex- The site has just been cleared of former build-
pert.
ings, and operations on the actual building will
"It will naturally be asked why men, engaged
begin immediately. The plans show a factory
in a factory every day of their lives, cannot as that in every particular should prove an interest-
readily detect infractions of the law of economics ing model for the trade. Every advantage has
as an outside expert. They do quite frequently. been taken of the latest improvements in con-
Every factory of consequence has some bright struction, lighting and power installation, all of
man who devises and puts in operation plans for which, Mr. Cameron hopes, will lend to the effi-
improvement. But, as a rule, such men are spe- ciency and excellence of the Lauter output.
cialists. Their innovations relate to their own
particular department.
The Knight-Locke Piano Co., of Denver, Col.,
"The whole factory is the expert's field. He the building up a splendid trade with the entire
examines the purchasing, character of goods the line of the Cable Company, which they control
money brings, how they are worked up, inves- in New Mexico, Wyoming and Eastern Utah.
W RITE
US
A
Perforated
Music
Perfection
13
OUT
Rolls
WE C A N T E L L Y O U
SOMETHING O f INTEREST
Perforated Music Roll Company
25 WEST 23d ST., NEW YORK
THE:
" THE COMMERCAL ECONOMIST.'
A
New Type of Expert Whom Progressive
Manufacturers Employ—His Business is to
Look Over a Whole Plant and Suggest
Methods for Curtailing Expenses and In-
creasing Revenue—Why Insiders Can't Do
This.
One of the developments of this commercial
era, with its tremendous growth toward com-
bination and concentration, is a specialist who
styles his profession "the science of economical
method." He is employed by large manufactur-
ers and others controlling men and machinery
to suggest methods by which expenses can be cur-
tailed and revenue increased. He made these
remarks about his "job":
"At the outset 1 wish to say that I do not
claim infallibility or anything like second sight.
I am just a common, every-day mortal. Yet I
believe that to succeed as a commercial econo-
mist one should possess in quite a degree that
peculiar attribute called intuition. In other
words, the calling cannot be learned from books
or by watching the operations of those follow-
ing it.
"The economical expert enters upon his task
unbiased. He specifies that he has full author-
ity to censure in his report any man at fault
in the entire institution, even though it chance
to be the very man who employed him.
"1 had that identical experience in a New Eng-
land factory. The manager of the institution
hired me to detect the leak in expenses so that
he might plug it up. I found that reports were
passing from men to bosses, from bosses to de-
partment foremen, from foremen to superin-
tendent, and so on to the general manager, un-
verified other than by general statements. For
instance, the foreman's excuse for not turning
out the standard amount of given articles in a
certain time was accepted without any attempt
by his superior to find out whether the excuse
was a valid one. The system was in vogue be-
cause the manager himself had first let down
the bars by accepting the reports of his superin-
tendent without debate. The men were not
bringing the plant up to its full measure of ef-
ficiency because of the incompetence of the gen-
eral manager—the man who had hired me. I
bluntly told him so in my report, lie flushed
and bit his lips.
" 'How much do you want for telling me I
am not fit for my position?' he asked.
"I referred to our contract, and he wrote out
a check for the price stipulated.
"In a certain harvesting machine works of
Illinois I discovered that one of its heaviest ex-
penses was the purchase of what is known as
'agricultural vermilion.' This color was used
lavishly on every farming implement the firm
manufactured, and cost from S\i> to 15 cents a
pound. The firm used a million pounds a year,
costing, approximately, $100,000.
"Here was a gigantic bill to reduce. This
firm, and others, like it, hart operated foi years,
using this material and paying this enormous
price. The essentials of the paint were that it
should be durable enough to stand the weather,
that it should be easy 1o apply and that it
should always possess a bright and beautiful ap-
MUSIC TRADE REVIEW
pearance. It was said that nothing had been tigates to see whether a cheaper or less material
may not accomplish the same result, and concen-
discovered so far that would take the place of
trates his mind on every detail of the manufac-
the material used in these cardinal features.
ture, from the raw state of the material until it
"Agricultural vermilion was then composed of
is on the cars waiting transportation a finished
orange mineral and red lead, dyed or enriched
in color with a more intense coloring material, article, properly crated.
of which but. a small percentage was used. The
"He must know, and be able to explain why ho
bulk of the pigment was lead, which cost from
knows. He must be able to defend his deductions
6 to 12 cents a pound. The dye cost from 40 to against those of the oldest and most experienced
80 cents a pound.
hand in the concern's employ. His figures will
"It was a problem for a chemist, and I hap- be challenged, his observations criticised and his
pened to number chemistry among my studies. recommendations derided. He' must take all thiii
I discarded orange mineral and red lead for a as a natural attendant upon the service for which
base, and used an equally effective pigment
he is paid, and demonstrate to the men at the
which cost only 4-10 of a cent a pound. The dye top that his report has a foundation of gran it*
necessary to use with this pigment cost more and cannot be laughed out of court."
than the dye used on the other base, but col-
lectively ,the latter materials cost less than one-
V0CAL10N CO. SUES WRIGHT.
half what the former process had cost, and gave
an equally satisfactory quality of agricultural Compelling Him to Live up to Certain Con-
tracts—Decision Reserved.
vermilion.
"That item saved the works $50,000 a year.
(Special to The Review.)
The fee was based on the amount saved. The
Boston, Mass., April 12, 1903.
harvester company never took occasion to pro-
The bill in equity brought by the Vocal ion Or-
tect the process, and now its rivals all over the gan Co. vs. Morris S. Wright, to have him com-
country are sharing the benefits for which it pelled to specifically perform an alleged contract
so generously paid.
to assign a half interest to the company in cer-
"But the delicate feature of the expert's task
tain patents upon musical instruments, was
is when his investigations lead him up to human heard by Judge Hale in the United States Circuit
agencies. He must steel himself against criti- Court yesterday. The company claims that the
cism and ridicule. Men who have served a long contract, which was made May 15, 1901,. was
apprenticeship at a particular business don't tak<3 while Wright was superintendent of its factory
kindly to the man who is hired to seek out a at Worcester, and under it he was to receive
better way. Superintendents and assistants $5,000 a year and 1 per cent, of the increased
rarely extend the helping hand. But the expert factory output, for which he was to assign a one-
is a sort of buccaneer, and he doesn't mind.
half interest in patents on his inventions. De
"He is backed with authority from headquar- cision reserved.
ters and can rove where he pleases. Too much
reticence in a certain quarter makes him sus-
BUSY TIMES WITH LAUTER.
picious that all is not well there, and he inves-
tigates the more assiduously. Sometimes he C. A. Borst Sending in Big Orders—New Lauter
Factory Under Way—Badly Needed.
finds a foreman protecting an incompetent hand
from motives of sympathy. 1 have run across
(Siiccial to The Review.)
cases where incompetents were shielded for a
Newark, N. J., April 12, 1905.
small weekly monetary consideration paid to the
Charles A. Borst, the general traveling repre-
men immediately over them.
sentative of Lauter Co., is sending in large or-
"When turned loose in an establishment the ders to the home house for Lauter pianos. Mr.
commercial economist begins on the books. He Borst is at present in New York State, and re-
finds how much is charged against each par- ports the greatest enthusiasm among dealers who
ticular article of manufacture for cost of ma- aheady handle the piano, many of whorrt have
terial, construction, insurance, storage, etc. Then expressed I heir opinion that in tone and work-
he goes after the machine, takes it apart, tests manship the Lauter is the best upright piano put
its various wheels, rods, bolts, etc., to see whether forth in the industry. When seen to-day, Mr.
less material would stand the required strain: Cameron, president of the Lauter Co., stated that,
examines every point for surplus material and sales at wholesale had been far beyond expecta-
work, and, if he can, recommends the building tion?, and that the problem has been how to make
of a machine according to his ideas. He takes a two pianos do where four are wanted.
risk in this, because if his model doesn't come up
The new Lauter factory is getting under way.
to the service requirement he's a discredited ex- The site has just been cleared of former build-
pert.
ings, and operations on the actual building will
"It will naturally be asked why men, engaged
begin immediately. The plans show a factory
in a factory every day of their lives, cannot as that in every particular should prove an interest-
readily detect infractions of the law of economics ing model for the trade. Every advantage has
as an outside expert. They do quite frequently. been taken of the latest improvements in con-
Every factory of consequence has some bright struction, lighting and power installation, all of
man who devises and puts in operation plans for which, Mr. Cameron hopes, will lend to the effi-
improvement. But, as a rule, such men are spe- ciency and excellence of the Lauter output.
cialists. Their innovations relate to their own
particular department.
The Knight-Locke Piano Co., of Denver, Col.,
"The whole factory is the expert's field. He the building up a splendid trade with the entire
examines the purchasing, character of goods the line of the Cable Company, which they control
money brings, how they are worked up, inves- in New Mexico, Wyoming and Eastern Utah.
W RITE
US
A
Perforated
Music
Perfection
13
OUT
Rolls
WE C A N T E L L Y O U
SOMETHING O f INTEREST
Perforated Music Roll Company
25 WEST 23d ST., NEW YORK
Future scanning projects are planned by the International Arcade Museum Library (IAML).