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,< "ON THE WRONG TACK." Mr. Gilbertson Reviews Country's Policy. OUR BUREAUCRACY CONDEMNED. As Lis presidential address to the an- nual meeting of tlx- Incorporated Swansea Metal Exchange on Tuesday afternoon, Mr. F. W. Gilbertcon, the president, gave one of the moit. enlightened and compre- tensive reviews of the country's economic situation and the present and future relations of Capital and Labour heard in Swansea for a long period. In addition to eminently sano comments on the whole question of production, there were in the speech striking demonstrations of Government Departruent bureaucracy. At our annual meeting last roar, held some pis weeks before the Armistice (Mr. Gilbertson said), we were able to appre- hend with, fame certainty a period of un- employment followed by a great demand ior most or our product., But it W, tiitiicult to realise the time that v.ould eiapie beioru the demand became etfective, and impossible to realise how hopelessly tieiicieiit we were to prove ourseivea in aeaciiing tne voiumo of production neceh- f-aiy, tjie extent by which costs 01 pro- duction and selling prices would rise; the lack ot co-operation between Capital and Labour as a symptom of reaction; and thf: unwelcollle postponement ot treeuoiu jrom the enervating shackles of bureaucracy. THE TRIUMPH OF LIBERTY. I jipeakmg 01 the immense debt we and ■us wno follow us owe to the millions of I brave men, of our own and allied coun- tries, who fought on through hardship And discouragement till by their superior grit IInd moral won the war, Mr. Gilbert- non said nothing that concerned their in- terests as traders, or might concern them iii the future, could hold a candle in im- portance to the fact that, the principles of individual liberty had triumphed. We it-s as other nations may have to githrough difficult times ahead (ho aaiii; and we may not all live to see cosmos completely emerge from chaos, but the war has restored and confirmed to all nations the opportunity to build their own fortunes and shape their own development by means in which every in- dividual can claim his share and .must shoulder his responsibility. Ilie records ) Of history are not encouraging, hut we must hare faith in the ulti- mate power of a people to develop a commonwealth in which liberty, justice, progress and prosperity are secured to all. and of nations to frame means of i preserving peaceful a.nd tru.ttul contact with each OhN A fresh opportunity j ha5 again been given to the world. Of the use our countrymen may make thk-, Mr. Gilbertson remarked that wise and permanent changes are not ef- fected suddenly. Revolutions and iip- 11eat"a15 ,yf all kinds i-ni,-I)t be needed sometimes as a la1 t rer-ort to (-,are (f)- I etinate ills, but they always produced ,as thtvr fiT"'t effects conditions far worse than they cure. In our own country we had solid foundations of liberty on which ] to build if the ;r#,d,;tonal C.0 ninionse,Ise of our race remained proof against the plausable propaganda of the false prophets. No one who cared to think eeriouely could remain blind to the enor- =ous strid" made by our working c1a. 6inte the country en?rfd the i !1<lustria.l! era, ;n mmfort, 1e"¡'lr. independanee, 1 education, and everything that we thought worth extracting from life. We had witnessed the steady runrch of pro- j gr-s, and although there was still »a I gre:1t raafti of pieventible poverty, ignor- ance and injustice to remove, we ghonid not make the most, of our opportunity if 'we allowed ourselves to ignore what had already been done, almost, in our own t'lfie. I CONSTITUTIONALISM. The steady pursuit of proved constitu- tional methods," Mr. Gilbertson went on, is the only way of surely and safely continuing our progress. Any and all short cnt are certain to be illusory and to put the dock back if they are at- tempted. with consequent suffering and loss, especially to the mass of the people whose conditions it is sought to improve. I daresay we employers see things through our own coloured spectacles just as much as the young Labour leaders do through theirs, but with such an awful object lesson as Russia—unproductive, starving, impotent and hopelesa-our country will not risk the de- struction of its constitutional and representative methods of govern- ment or its industrial system. Nothing, however, should stånd still, and the hest. example of human organisation is one that is progressive and responds sanely but surely to the changing circum- stances of its environment. But changes that profess to lie constructive may yet be good or bad. The destruction of what is called the capitalistic system often ap- peals to men who have no conception of the alternative, so long as men's actions continue to be influenced, as they have been Qince the world be.?an. by selSsh motives. AGAINST NATIONALISATION. The nationalisation of industry is claimed to be a change, by which v the ■workmen's best efforts can be secured and strikes avoided, as under such a system he will no longer have to submit to the galling thought that the higher the wage -he can earn the better off his employer ■wil? be. I confess this argument 101 the new apostles of light doe,; not appeal to me as f. very lofty one, and I am sure it is un- sound. The best work has often been dona tor the single employer, who per- hapi-earries on a tradition of friendship with his workpeople, while in most of the largest industrial organisations capi- tal is represented by the pavings of a host of investors, mainly of moderate means, and very often indirectly, through the investments of insurance companies and the like, by the savings of working men or by trades union funds, The, distinction between the share regis- ter of many large industrial enterprises and the community is often much finer tha:1 the public realise. The recent strike of co-operative societies' employes, railway strike, and the reduced out- put of the coal miners at a time when the retainable profits of the owners are so strictly limited, all point to the illu- sory character of their chief argument 1 for nationalisation.. I., I do not question the sincerity of many of its advocates, but some are eranks and &Omo are. young, and J o I Question their judgment and their! Opacity to act as instructors of the Rational conscience. I rather look for- ward to the time when capita1 that re- presents the savings of the thrifty will represent the savings of thli vast bulk of our working class, who so often to- day cannot sare where they would and will not where they can. The extent to which the national character and the prosperity of the country would gain if only thrift and a habit of investing sav- j Ume could be developed in parallel with improving wage conditions is, I believe, I incalculable. INCREASED WORKING CLASS I RESPONSIBILITY. "The fact is, we who represent capital have got to --ciefeiid what we believe to be essential to the wettare and progress of the community, but we have also got to face ana prepare ourselves for changes, wise and deliberate changes, that will benefit the community as a whole if they are brought about by patient evolution, while the working clu^s have got to educate and prepar6 themselves tor the increased responsi- bility that is indeed already theirs to some extent, and that will grow just so quickly as they tit themselves for it. For them to think that their aims are com- prised in less work and more pay is pure madness, and spells ruin to any country that tries it. But it tiieir aims included better manual work, more intelligent an.) intense for the shorter hours, longer lei- sure in which not only to play, but also to use their wits m the pu blic service las indeed great numbers already do with conspicuous ability), if they included a spirit of co-operation with their em- ployers and an honest, desire to share re- sponsibilities, then better material condi- tions would naturally and inevitably fol- low, together with the higher status the working men ask for, but do not by any means all prove themselves worthy of yet. STRAIGHT WORDS ON OUTPUT. I It is no use being insincere in what has I to be euid in public. The tacts are pateut to ail that manage works to-day, altnough CúntantlJ denied by the leaders, who do no good service to the character-bunding of the rank and tile by protecting what M known by e\cry working man in aits heart to be untrue. Those facts are that among piece workers higher pay means less work, and never was output at a lower ebb than to-day; while among day workers never was work so elac-kly performed; and I among both equally the old pride in the quality of the product and the saving of waste, has almost disappeared. I am sure we all have visions of better times, in which common service will sharo with private gain in supplying the motive for efficient work, but they are far distant yet, and we cannot escape the operaton of economic law.? under which we and many after us must i:ve and which compel us to work I if we are to enjoy the rewaids, and roughly proportion the rewards to the amount or quantity of the work. Th-L-' ni-ost promising constructive re- form has been the adoption by many in- dustries of the Wlvtley Commissions r- commendations under which working roen', representatives will gradually make acquaintance with many of the dif- ficulties of management a nd of in +NnH ::i- onal competition At the present moment we are living in highly arti- ficial and abnormal times, and perhaps people cannot be entirely blamed for fail- ing to realise that, the reward of work, whether by hand or brain, cannot in the long run be what the workers may wish, but what that work is worth, and the further the pendulum <5wing"3 in its pre- sent direction the further may be the re- bound when the natural lawfc operate freely again. In this country we are pro- bably relatvely better off than any other nation, and the prospects are exceedingly good if we settle down to work in time and are not led astray by the spurious prosperity of the moment. Germany was more efficient in workmanship and direc- tion than we. but the lust for purely material advancement and the intense specialisation and control of each man's acVvky produced a nation's character that broke under strain. In the United States it is generally recognised that Trades Unionism in its present develop- ment is bad for the efficient production, and the rnxture of the race and immense immigration have hitherto enabled the I industrial magnates to keep the open shop." The war ha*. however, modified these conditions and the work- men in the States are now lighting for the collective bargaining that has almost imperceptibly grown up to be part of our industrial system. It would be foolish to believe that what has occurred and is occurring is likely to permanently diminish the efficiencv of American and German methods of production. We should rather strive to show that our possession of a truer liberty is an un. mixed advantage to an industrial people and to use the opportunity that now exists and will never come again. THE SOLUTION: PRODUCTION. I We are, however, allowing the oppor- tunity to pass. Strikes, restriction of output, and shorter hours without more intense production are preventing us sup- plying a world's demand that exists at a time when the field is ours. The cry on all sides is Production.' To-day produc- tion would solve our national finances, would bring comfort and an opportunity to save our workpeople, would enable manufacturers to improve their plant, and would establish our connections with foreign customers. Production will be an idle cry later on if we lose our oppor- tunity, and, still burdened by debt and high cost of manufacture, offer our wares to markets ip which foreign goods have J filled the present reeds and permanent foreign connections have been estab- lished. The Government are to an over- whelming degree responsible for the crea- tion of an unhealthy spirit among our workpeople. During the war- it was necessary to keep production going at all costs. In the ordinary commercial struggle of industry it is only possible to keep production going by producing at a cost that will find a market, and there- fore to pay as wages the economic value of the work done. The Government should, however, realise that Trades Unions are now strong enough to safe- guard their members, and that the time has come for oallihg bands off. WAGE ABSURDITIES. I The absurdity of the present state of the minimum wage, plus war wage. plus Sankey award, is very obvious, and except to prejudiced parties (such as the Coal Control Department and the work- men themselves), appears to be a suffi- cient explanation of the reduced output and high cost of coal which is tbr?ttanin? the industrial fittum of our country, x ?hava briefly touched upon two import- ant rea6o" for our delay in rooo"ring otir trade, but a third is no less import- ant and will perhaps prove to be more difficult to remove, the continuance 0, all kinds of Government and bureaur. cratic control. We are a slow, ptit j race, but if we do not iise against the present tendencies we shall properly be regarded by those who succeed to our I responsibilities as fools who got just vhat our folly deserved. The root fal- lacy of all bureaucratic control is the b?liei that any man or committee of me? can exercise infallible judgment, 1 do l not say that tmplate makers conlcl not, by putting their heads to- I gether and by improved organisa- I tion, themselves produce improved result?, but I know quite well (hat not superman in Whitehall can be safely en- trusted with the power to dictate. I have been engaged in my trad e and pretty well absorbed in it for 25 years, and I realise my ignorance every day; not so the Jack- in-Office, who is positive about every-11 thing. TRANSPORT CHAOS. I At the present time the whole hade of the district is in jeopardy owing to the transport chaos. The railway companies and their officials have learnt bad habits as the result of control, and it looks as though the Ministry of Transport will see that they do not unlearn them. Two in. titances are sufficiently illuminating to be worth making public. The first is the counter-charge made by the railway com- panies that shortage of wagons and deten- tions by traders produce the failure to carry the commerce of the country. If the companies could deal with the wagons I already in transit, it would be less diffi- cult to accept their argument, but the fact is that, although our industries are producing less than. their pre-war tapa- city, there never was a time when such hopeless chaos on the railways existed or delays in transit were so constant and prolonged. We may be excused for think- ing that tltv real trouble originates partly in the establishment of the eight-hour day, partly in the almost universal de- terioration in the quality of the service rendered by wage-earners, and partly in faults of management which has suffered from contact with the bureaucratic sys- tem which weakens the cense of responsi- bility in the individual. In the works with which I am associated the most grievous reduction of output is being caused by the non-delivery of coal Pent forward by the collieries and the return of empties to those collieries. BUREAUCRACY'S LIMITATIONS. I Under a bureaucratic system there is little room for individual initiative. The purpose of an enterprise is loet in the maze of detail designed to achieve it. and the individual is more concerned with adherence to his particular instructions than with the essence of the enterprise, lie plays for safety, and since ability or the exercise oi initiative will not beneht him. but may either bring cenoure upon him or be placed to the credit of his superiors, he naturally ceases to exercisc them. The returns he has to fill in assume a greater importance in his eyes than the object of the enterpriee of which he is a cog, and it is to this attrophying experience that I attribute the action of the railway companies m dropping coal wagons en route, because they are owners' wagons, causing works to curtail output, workmen to lose their wages, and the country to fail in the overwnelming call for the maximum export of manufac- tured goods. The other illustration is concerned with the transit of galvanised iron to port. The galvanised iron trade is the greatest metal export trade of the country, and long experience has distributed the mar- kets among the works It able to cater for each. By far the greater part of the immense demands of our Australiasian colonies are met by South Wales and Monmouthshire producers, and the same applie, to the West African, Brazilian, and other special markets. The sailings to those markets are determined by other considerations than galvanised sheets, and in many cases shipment can only be effected from London or Liverpool. In pre-war day* the iron was railed to port of departure, although at higher cost than transit by coaster, because bitter experience has shown there was no other way of deliveting the goods in saleable condition—as if galvanised sheets become wet while in contact with each other chemical action destroys them. Under our new methods of Gov- ernment by the cocksure gentlemen I have referred to, these sheets are or- dered to be sent by coaster, and on my firm asking the Home Trade Ti-uisport Committee how it was proposed to pro- tect the sheets from damage, the follow- ing reply was received:— Dear Sir.-I am in receipt of your favour of yesterday, regarding the ques- tion of sa fe handling and protection of von." traffic in transit from works to Liverpool by mil and coaster. This is, however. a matter which you must settle direct with the shipping companies con- cerned, and it does not in any way affect this committee.' What this letter amounts to is, on the face of it, that we must arrange with the shipping companies that proper stor- ag- sheds be built at the docks from which the coasters trade, that fine weather be arranged for during the load- ing, and that calm seas be n i with on the run to Liverpool. Bnt in reality it amounts to the simple fact that the writer is a cog in the bcaurocratic machine, that he is not concerned with the due arrival of British goods in sale-, able condition, or the volume of our ex- port trade. It does not interest him officially whether the trade ptoses to America or what national waste may follow this ignorant order; all that he is employed for he performs, which is to qgrrv out someone else's instructions and repudiate official responsibility for any- thing that happens. The Federation of British Industries then took up the matter with the com- mittee in London, and received in reply three statements:— (1) "Under pre-war conditions gaivamseo sheets were shipped from Avonmouth to Australia and New Zealand, and if is understood that these err ices will be resumed as soon as possible. I would comment on this by saying tha! the services have already been resumed, but that they do not and never did carry •heels to certain destinations that can only be reached by shipment from Lon- don. (2) Galvanised sheets have always been shipped in very large quantities frorii Bristol Channel ports to Liverpool and London for export. Trade was carried by the coasting companies to the satisfaction of the manufacturers. h comment on this is that fo far as Messrs. John Lysaght and my firm ate concerned the statement is untrue. (3) Messrs. John Lysaght have recently suggested the inclusion of certain poods under the coasting order with a view of their beins sent by sea instead of by rail. My comment on their statement, is that Messrs. John Lvsaght deny it. i THE WRONG TACK. I In conclusion, Mr. Gilbertson said: 1 think the country is on the wrong tack, and our whole future as a virile and suc- cessful industrial n?on ?s being risked by uninformed intprfprenM. We have a diScult time before us that will can for ?tim best efforts of all c i,izenq, but we sha I I can for it in via if we are hampered and disheartened at every turn by the action of controllers and committees who have no direct financial interest in the consequences of Their ictions. and whose experience has not been gained in the hard school of reality. I

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