The Family Life of Big Business
The Empire Club of Canada Addresses (Toronto, Canada), 9 Dec 1937, p. 141-159
Kavanagh, James E., Speaker
Media Type
Item Type
Industrial relations. The shift from work at home to work outside the home, which then changed its name to industry. The unchanging characters of the people that do the work. The human factor now entering into the conduct of various business enterprises. A decrease in immigration since the war and the resulting scarcity of human labour. How that has effected the leaders of industry. Giving thought to the ways and means by which men and women can be kept pleased and satisfied. A new outlook on industry. Man as a four-sided individual: physical, mental, social, and sentimental. A consideration of each side or element. How industry today is catering to all sides in its effort to build up a solid, contented, satisfied and efficient machine. The mechanics and the humanics of business. Criticism being levelled against many employers of labour and the speaker's response to it. A detailed discussion of how industry is dealing with all four sides of their workers. Details of education, financial and social programmes provided for workers. Programmes operated through insurance companies. Life and hospitalization insurance. Old age insurance, or pensions. The word "retirement" used more frequently now than "pension." An analogy between these programmes and family life. The "good business" element of these programmes. The new gospel being preached by the employers of labour today: the three H's—the hands, the head and the heart.
Date of Original
9 Dec 1937
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Full Text
Thursday, December 9th, 1937

PRESIDENT: Gentlemen: In appraising Canada's exports and Canada's contribution to the world, we should not overlook her native sons and daughters. In every walk of life, in every country, we find Canadians who through their' ability are at the head of their professions and callings and life insurance has been no exception. It is interesting to read while walking down Wall Street in New York the tablets to the memory of one, Morris Robinson, a native of Nova Scotia who was the first President of the Mutual Life Insurance Company of New York, and established the business of modern life insurance on this continent in 1843. Today we welcome home to his native province Mr. James E. Kavanagh, the First Vice-President of the Metropolitan Life Insurance Company of New York. Mr. Kavanagh received his early education in the public and high schools of this Province and has been connected with the Metropolitan Life in almost every capacity since 1897. As the executive in charge of his Company's group division which, I believe, includes life and accident, health and annuity groups, he is in constant touch with the problems of capital and labour, major problems as well as very minor problems and he has become a leading authority on this all-important subject of today, the relationship between employer and employee. I have much pleasure in introducing to the members of the Empire Club of Canada, our guests and the radio audience, Mr. James E. Kavanagh. The subject of his address is "The Family Life of Big Business." Mr. Kavanagh. (Applause.)

MR. JAMES E. KAVANAGH: Mr. Chairman and Gentlemen: It was with some reluctance on my part that I decided to accept your kind invitation to come here and address this Empire Club and it is with a good deal of timidity on my part that I even now attempt to address you. Your flattering introduction leads me to think that my audience will expect something perhaps unusual in the way of my remarks.

It is true I have had an opportunity the past twenty odd year's to make rather intimate contacts with executive officers of various business houses with whom we are doing business and those contacts have led me to acquire a considerable knowledge of the problems that confront these executives in the carrying on of their various enterprises.

Being in the life insurance business and human lives being the raw commodity with which we have to deal, naturally my mind turns to the affairs of the individuals in the business houses, rather than to the dollars or the material side of the various enterprises.

We are hearing much these days about industrial relations. Work used to be very largely conducted in and around the homes. You are all familiar with the fact, however, that when steam was turned into practical use through the use of the steam engine that work gradually was weaned away from the household and taken into other places, usually cities and towns and there in our factories and mills and warehouses and workshops today the work is conducted on a large scale that used to be very largely conducted in the homes. No longer do we have any canning of vegetables, of fruits, have curing of meats, have laundry work, have much cooking or baking, have manufacturing of drugs, of clothing, and the hundreds of other things that used to be done in the home, such as spinning and carding and weaving. Those have all left home and they have been lured away and taken a new place of residence. When Work left home and went out into the big world it changed its name. It got married to Capital and called itself Industry. But it means work, just the same. The fact that work changed its name didn't in any way change the character's of the people that did the work. Men and women today are just about the same as they always were and while they no longer carry on their work in one small home or in the vicinity of one small home and do carry on in a large home where hundreds and sometimes thousands of worker's are, there needs to be in those homes conditions prevailing which are the ideal, conditions you find in the best managed households of our land.

Men and women like to be happy. Unfortunately, in these two countries of ours, Canada and the United States, we have had such an abundance of raw material and we have had such an abundance of raw material in the shape of immigrants coming to our shores that our business leaders have not always had to give much time to the human factor that entered into the conduct of their various business enterprises. Since the war, however, there has been quite a change take place in both these countries. Now, instead of immigrants coming in we have had periods when we have had immigrants going out, when there have actually been more people going out of our country than there have been coming in. This scarcity of human labour has had an effect upon the leaders of industry. It has made many of these pause arid stop and look and listen and give thought to ways and means by which men and women can be kept pleased and satisfied. The labour turnover that obtained in both these countries a few years ago has rapidly changed. It was not at all an uncommon thing for a manufacturing firm employing, say, one thousand hands to actually hire one or two thousand new people during a year in order to keep those jobs filled. That was known in industry as labour turnover.

I say this cessation of immigrants coming to our shores has forced leaders of industry to pause and ascertain what, if possible, could be done to reduce this very great economic waste in the constant turnover of the men and women that enter into the various enterprises concerned. Raw hands, unskilled hands produce material that is sometimes known as seconds. Sometimes materials are produced that are of no use, sometimes destroying machinery or tools, involving much time in the way of supervision and education on the part of the foreman and so there has gradually stolen over these two countries a new outlook on industry, and when I say industry I include all lines of human activity such as manufactures, merchandising, education, transportation, mining and many others of a like kind, there has arisen in the United States and Canada a school of men who make their living by undertaking to teach business how to keep men and women satisfied, how to keep them on the job. To me it seems rather a simple thing as it does to most people who have given any thought to it. The large business house is nothing more nor less than the small home, much increased in size. There we find men and women presided over by foremen, by section heads, by departmental heads, by general managers, by officers, and if those men and women are to give to the industry with which they are identified the best services that they can give they must have the man happy and contented.

The man is a sort of four-sided individual. There is the physical side of him, there is the mental side, there is the social side, and there is the sentimental side. It may help our thinking if we will just pause long enough to consider those things. You keep a man or woman physically fit, in fine fettle, free from aches and pains, free from accident or the hazard of accident, and you have gone a considerable way toward making that man or woman more nearly one hundred percent efficient. You take the same man and keep him mentally alert, stimulate his thinking along right lines, give him an increased knowledge of what he is doing or give him an increased knowledge of other things outside what he is immediately doing and you have a more nearly satisfied man than you otherwise would have. You have him growing in knowledge, his mental capacity is enlarging and he is developing into a more valuable citizen and a more valuable employee for the particular corporation with which he is identified. You take the same man or woman, (I use the word 'man' including both) give him social advantages, give him some fun, give him a chance to have a good time and you have gone a long way toward making him still better as an employee. He is much more satisfied and undoubtedly much more efficient in the particular corporation. Then, go one step further and give him an opportunity to gratify his sentimental desires. Most of us work not for ourselves alone but for those we love. Most of us have wives and mothers and sisters and children, dear ones we are working for, and we would like to gratify our sentimental feelings toward them by providing them with opportunities and privileges and comforts such as we think they need and desire. If we can give a worker the opportunity to gratify those sentimental longings and feelings we will go a long way again to having the man still further satisfied and efficient.

If you will keep in mind those four phases of the worker you will, as we go along, see how industry today is catering to each other in its effort to build up a solid, contented, satisfied and efficient machine, because that is what an industry is. There are mechanical machines, of course, made of steel and iron and fabrics of other kinds, but they are useless without the human machine and the human machine, tied together like a big bee-hive, must be in harmony and working together and anything that detracts from that is a retarding, expensive influence. That is being recognized by business houses today and somebody has called that particular activity of satisfying these human needs the humanics of business, contrasted with the mechanics of business. The mechanics of business is getting the raw material to the finished product and to the ultimate consumer as quickly and economically as possible. The humanics of business is the study of ways and means to keep men and women happy sand satisfied and efficient.

There is much criticism being levelled today against many employers of labour and if we would listen to it all and take it seriously there would be times when we would be inclined to think that these countries are terrible countries in which to work. If you listen to some of the street orators and some of the other people who are always ready to harp and criticize it would impress you that there certainly are better countries in which we could live than Canada and the United States.

I would like to turn our attention this afternoon, if I might, to some of the things which will indicate that things aren't quite as serious as others would have us believe them to be.

Take the physical side of the man. It may interest you to know that in the United States and Canada there are hundreds, yes, there are thousands of corporations that have well-defined, clear cut, definite programs of industrial relations. They have officers, or if they are not officers they are officials whose duty it is to look after the physical well-being of the employees and we find such things as annual medical examinations. Any number of plants have their own doctor's. In many instances doctors are engaged full time for the particular care of their own employees. They are medically examined when they are engaged to work; they are medically examined when they show the slightest need of care in the hands of a physician. Many of them have their nurses, many have their own hospitals and rest rooms where they have equipment to give first aid and services to the employee, should he get sick or meet with an accident.

But there is much more than that. Those are remedial steps that are available. There are the steps that are taken to prevent the need of a doctor. Prevention is better than cure, so we find very extensive, comprehensive and complete physical programmes operating today in our best managed institutions. There are playgrounds for the men and women, gymnasiums, locker rooms, athletic organizations, hired leaders to organize and train the men and women in their various physical exercises.

We find the employers are very quick and keen to take every advantage to prevent accidents. The men and women are guarded against accidents and it is the boast of some concerns that they will go for a year or two years without a major accident. Prizes are awarded between various trade associations to those houses or those manufacturing concerns that can carry on their business with a minimum number of accidents. Safety courses are inaugurated and much is done in the way of training the people to protect themselves against the hazards of their particular industry. Industry carries not only a hazard of physical accident but a much more serious risk that is known gas industrial diseases. There are today many diseases that arise through the peculiar nature of the business enterprise. One of the most important today that is causing more concern than any other is that of silicosis. There are today millions of dollars of law suits pending in the United States and Canada against employers, inaugurated by ex-employees who have contracted, or who claim to have contracted silicosis through the inhalation of dust while working for the particular employer. Much time and money and effort is being spent by industry of that kind to guard their employees against diseases of that kind. There are many others which I need not take the time to tell you about, any more than to refer to them.

The lighting of the buildings in which the employees work today is just about perfect. Every precaution is taken to protect the eyes of the employee.

Lunching facilities--many, many concerns today are providing splendid dining-room and splendid cooking equipment, and sometimes the meals are given outright to their employees in order that while on the job at least they may be sure of a good meal and, if he pays for it himself, it is at a very modest rate. Industry found long ago that it pays to do this. While it involves a capital expenditure of tens of millions of dollars--that is literally true--tens of millions of dollars are invested by industry today in the physical equipment designed for the well being of employees. As I say, industry finds it pays to do it.

Not only does industry provide the splendid physical programmes but they are going much further in the way of providing mental programmes. It is amazing when we look over the field of activity in America to find the very broad and comprehensive educational programmes to be found today in factories, warehouses, offices, and mining centers as well, where the employer has gone to considerable expense in the way of establishing class rooms, engaging educators to come and teach his employees. Many of the employees have not had the advantages of higher education and incentives are put up to encourage the illiterate or those not well educated to avail themselves of the opportunity that is provided in the industry itself for a broadening of knowledge on the part of those employees, because the very educating of that man or woman in itself makes a bond of interest between the employer and the employee. It comes back in the subtle, indirect way as a sort of rebound of gratitude. Not vocalized--it is felt rather than vocalized. The employee has for his employer a kindlier feeling than he perhaps would otherwise have. Not only does the employee but the employee's family and the constituency in which the employee lives and operates feels more kindly toward that institution than it otherwise would because there is a recognition of human interest on the part of the employer toward the employees which is appreciated by the community at large.

These educational programmes are still further supplemented by the training of foremen, by the training of the art of salesmanship, by the training of the .art of manufacturing the particular materials that are being made in the various enterprises, educational classes in English, rare art, shorthand, stenography, actuarial courses, nursing courses, book-keeping, dress making, millinery. It is just amazing to observe, as I do as I go around the country, the various interests that are taken on the part of these employers of labour to train their men and women to become more alert sand more efficient and more useful to themselves and do society.

These mental programmes are still further supplemented by splendid social programmes. We all want some fun. All work and no play makes Jack a dull boy. Business has come to find that out and today it has well-organized programmes. They have their bands and their orchestras and their glee clubs, their annual dances, their outings and they have their picnics. They have their various showers that are given to the girls when they are going to get married. There is a house mother in many of the big concerns and it is her business to listen to the troubles, whether imaginary or real, of the employee. There is a sort of confessional where men and women can go sometimes and pour' out their hearts and tell what their troubles are. A real interest is displayed on the part of the management toward employees, just as a father, or mother displays real interest on the part of himself or herself toward the child in the home. That attitude of paternalism is not simply in the attitude of giving. It has broadened out into the attitude of a relationship of co-operation between employer and employee-all spelling for good will and going a great way toward making our countries equipped with better human machines than they otherwise would have.

Then these three problems, physical, mental and social are still further supplemented by very broad and comprehensive financial programmes that are so huge as to be staggering in their final results. Almost anybody can earn money. Very few people can save it and very few people can save it for any length of time. Now, it may interest you to know that there has been set up traps, contraptions, devices, programmes in industry which snitch off and hold back and retain a portion of the payroll at the request, however, of the employee, so there is being evolved an automatic systematic, painless method of extracting money from people's pockets. None of us like to part with money. We work hard to get it or think we do and we resist every effort made to take it away from us. But there is an advantage taken of what is known as mob psychology. Thousands of employees working for an employer are offered an opportunity to do something. A great majority of people do not think. It hurts most people to think. There are only a very limited number of thinkers in this world, and the thinkers and the leaders are the people who seat the pace and always the thinkers and the leaders in every industry and group of people, if they are quick to see the advantages of the programmes offered by employers, go ahead and the others follow along and become the beneficiaries of the associations they have had with such a thoughtful employer. The result is today we have in these two countries a very, very thrifty lot of people. The word thrift implies something that we don't like to think of. There is an implication of stinginess about thrift. We don't like to use it here in America. We talk about the thrift of the French peasants. It is claimed he hoards his gold, that he putts it in a stocking and hides it in a chimney corner. That is lazy money, that is money that doesn't do any good. That is idle, lazy, slow money. We in America have learned a better way. We have our money put at work, working the day it is earned instead of having it lying idle. How is that done? It is done by means of what is known as the payroll deduction programme. There are today over eight million men and women engaged in industry and again, I say, industry includes everything from education to manufacture and transportation of materials. There are over eight million of these people automatically saving money through what is known as the unseen dollar. The dollar they never get their fingers on, the dollar that can't lead them into temptation, the dollar they can't spend. They never see the dollar, the dollar that the paymaster takes out of the weekly and monthly pay and puts to work along certain lines. What are the certain lines? Various and many indeed they are. Sometimes the employer invites the employees to contribute money systematically for the purpose of purchasing homes and a home building campaign pertains in that particular area and a large number of employees are encouraged in getting homes and paying for them in this easy, systematic manner. Building and loan associations are operating successfully through many industries today. I find that there aren't so many here in Canada but there is a very large number in the United States, indeed. There are over seven million people today participating in building and loan organizations where they are systematically paying money, sometimes directly, and in many cases through payroll deduction by the employer.

The larger and more spectacular programmes, however, are those that are operated through the insurance companies. You know that there are nearly three hundred life insurance companies operating in the United States and Canada and for the most part these companies have built up huge reservoirs of wealth by retail methods. They have their agency corps contacted with the ultimate consumer, the man or woman interested, and they have succeeded in getting that person to become a systematic individual, saving money monthly, quarterly, weekly, yearly, whatever it may be, for some future need, and in that capacity the life insurance companies have put up these large volumes of money.

There are over 112 billion dollars of life insurance in America, more than half the life insurance in the whole world is located in these two countries. Now, 100 million of that, nearly, has been done in the retail method, by the personal' solicitation of agents to the individual, but of late years big business (when I say big business I mean any sizeable concern) has learned how it can use the life insurance companies and we find today that the business employers of this country, over 20,000 employers of labour in the United States and Canada are today engaging the services of life insurance companies to help them build up the financial programmes that they are desiring to carry out for the benefit of their employees. This is a wholesale method of merchandising.

There is probably no product that is manufactured today in this country or the United States that is merchandised with such a minimum of effort and with such an economy of expense as is life insurance when it is merchandised through the employer. He sets himself up as a sort of branch office, a sort of general agent of the particular insurance company and he invites his employees to participate in a programme and he goes further than that. He not only invites them to come in on it, but goes a long way toward helping them pay for it. He makes it very easy for them to pay for it by having the payroll master make deductions and make remittances to the insurance company. The result is the insurance companies today are able to be of much larger service still than they already have been. Where that will end I do not know. One thing is certain, it is expanding very, very rapidly.

These employers of labour long, long ago had created and fostered and built up in their institutions benefit societies, mutual aid societies, whereby the employees would organize and pay monthly dues and in the event of sickness or accident, in case of death, small death benefits were payable, sickness allowances were paid, accident allowances were paid as well. Those are operated today and have been in many of our big corporations for the last fifty or sixty or a hundred years. They have been operative and they have done and are doing a grand service to that section of society that is industry. But the employers of labour have found out that they can use the insurance companies in a, broader way so today they have engaged the services of the life insurance companies to carry on health and accident insurance on this group or wholesale basis, so the employee may get for himself, under terms and conditions such as he couldn't obtain by himself, a very considerable amount of health insurance or accident insurance.

That has been still further supplemented by hospitalization insurance. It is a very great tragedy to the average home, outside of the mental anguish involved there is the financial anguish-if I might use such an expression-when a member of the family has to go to the hospital. A very limited number of homes can afford the expenses involved in going to hospitals for treatment which is often needed. As a matter of fact, thousands of men and women today are in need of surgical attention in hospitals and they have too much pride to go in and take the operation as a charity ward.

Some employers today are engaging the life insurance companies to come in and set up a programme whereby the employee can get a very considerable amount of money payable to him for hospital needs and a certain amount of money payable week by week while in that hospital. That is (a rather new movement. It only started a few years ago but it bids fair to become a very large piece of business for the various houses that are engaging in it.

There is still another activity that the insurance companies are being used for. That is to provide old age insurance, commonly called pensions. In this country we don't like the word pension. It smacks of servant. Pension smacks of-Oh, just a little bit of something that is given to them, and we Canadians and Americans like to think we are independent. We are not pan-handlers. We don't want people giving us something. We want to fight our own battles. So those of us who are interested have found out that it is not a good word to use, so the word pension is no longer very much in use in the United States by employers of labour. It is now termed retirement. We all like to look forward to the day when we can retire. There is something attractive to contemplate, for a young man or woman to imagine the day is coming when he or she can retire to a definite income.

It may interest you to know there are today operating in these countries programmes that have already accumulated hundreds of millions of dollar's that are deposited with the life insurance companies jointly by the employee and the employer for the specific purpose of paying those men or women interested definite incomes when they arrive at age sixty, or sixty-five, or, whatever the age determined on is at which they would like to retire.

So these programmes that employers of labour are using, these financial programmes which I have spent sometime on, in reference to insurance, group life, group health, group hospitalization, group old age insurance, have reached such a stage that today 13,000 million dollars of group life insurance is in force in America. There are about 45 lion dollars of health and accident benefits operative. In other words, if all the people insured were to get sick there would be 45 millions payroll a week going out that is insured and guaranteed for sickness and accidents.

There are corporations today where the employers have of their own volition contributed and have put away over 30 millions of dollars. I know at least two corporations where the employees have on tap for themselves, available if wanted at any time, over 30 millions of dollars which they have saved in this manner, all for one purpose, namely for retirement. Along with that the employer probably puts as much or more. There are quite a number of concerns in this country today that have already many, many millions of dollars turned over to life insurance companies for the specific purpose of providing annuities, which means old age payments to the employees when they arrive at retirement age.

These financial programmes have all binding effect. They seem to do something to a man or a woman that is a desirable thing to have done to that man or woman. It seems to make that man or woman have a feeling that he or, she is growing rich. We all like to picture the day when we will be rich. It is good psychology for an employer of labour to set up a programme in his plant which enables the employees to feel and think they are growing rich. Not growing rich by speculative processes, no, but by the good old-fashioned method of thrift, by saving the money the day it is earned, by having it never come into their hands, by having the savings part attended to first. It is so easy to spend money and so difficult to save it.

Now, I have referred to the programmes that employers of labour have built up in creating better industrial relations. They are all just the kind of programmes that ought to obtain in your home, if you, as the head of a house, can have a programme of that kind you will have a happy family, you will have your wife and children and yourself, too, fairly contented and you ought to be better citizens and more efficient than you otherwise would be. If there is anything in the world it is disagreeable to get along with it is a grouch. You know yourself if there happens to be any unpleasantness in your home between you and your wife, it sort of spoils the day for you. You may go out with your head up. You had the last world, maybe, yet all through that day something just isn't quite right in the heart. Something isn't quite right. You know, on the other hand, how nice it is when everything is sweet and lovely at home with you and your wife and the children. The same thing obtains in industry if the employer and the employee have a smile and a good word for each other, if they feel they are co-operating and getting along together.

When you read about industrial relations please give some credit to the thoughtful employers of America and Canada--I use the word comprehensively--for the foresight they have exercised in building up these programmes. And it is all good business. Do not give the employer credit for being a philanthropist. It isn't so at all. It is nothing more nor less than good business. It is good business for big business to make its men and women into business men and women. Business is systematic. That is the reason it is business and the moment business ceases to be systematic it ceases to function properly and goes out of business.

Only the other day I was seated at a luncheon table with a gentleman who is connected with the Radio Corporation of America and in talking about their health programme he outlined a simple little incident which will illustrate to all of you the value of programmes of this kind, how they pay. They had a number of cases of dust diseases arising and they found out that certain of their manufacturing processes required abrasive treatment. After the material came from the mould it had to be polished and the polishing was done by sand blast and the sand blast filled the air with dust and particles of silica got in the lungs of the workers sand resulted in the disease known as silicosis. So, in their study, trying to find out how to prevent their employees becoming sick, activated only by that motive, they found there were better ways of treating those pieces of the machine than the way they had been treated. They found out a method known as shot projections, which produce an abrasive effect and wear down the rough surface and do away with the dust. They found further that about ninety percent of the articles being moulded that way could be moulded in a different way, not to require any abrasive treatment at all. They had been simply going on in .the old method because it had been operative for a long time, but plans have been worked out by which the moulding could be done so perfectly that there was no need of abrasive treatment at all. They had been simply going on in the old method because it had been operative for a long time, but plans have been worked out by which the moulding could be done so perfectly that there was no need of abrasive machinery. As a matter of fact, in an effort to take care of the health of their employees they inaugurated a new way of treating the material itself and are actually carrying on that particular branch of their activity at a saving of $50,000 a year. The employer had the satisfaction of knowing that in his efforts to look after the health of his employees he had actually saved money.

I notice that the red light has gone on. I am through. I hope I have said something that may be at least suggestive to you business men, to you men who are here today because you are interested in industrial relations. You are interested in seeing that the men and women that are engaged in your various enterprises are functioning as nearly as possible one hundred per cent. I take it as a good omen today in both these countries that there are .to be found every dray almost, gatherings such as this, where highly paid executives, very important owners of business enterprises are giving much time and thought and study to the various devices and programmes that have been inaugurated for the betterment of human relations in the various enterprises. Believe it or not, things are getting better in these countries. Things are getting better. There is no country in the world today where the men and women are so well paid, so well rewarded for their efforts as in these two countries. They are the best paid, the best educated, the best housed, the best entertained people in the world, and there is no group of people in the world that have built up for themselves protection against the worries that come in later years as have the people of these two countries. Nearly every man or woman has had or does have in his mind thoughts like these: What will happen to my family if I die? What will happen to me if I meet with sickness or accident? What will happen to me if I lose my job? What will happen to me if I live to be an old man and haven't an income? Those are major worries, not always vocalized but they are there all the same. If we can do anything as an intelligent, educated people to remove those worries, not only from ourselves but our associates, we will have gone a long way toward making this a still happier and a better world in which to live.

There is just one other thought I intended to get across. The employers of labour today have a new gospel they are preaching, the gospel of the three H's-the hands, the head and the heart. No longer is an employer contented to hire a thousand hands. He wants a thousand heads. He wants a thousand hearts, too. If he has the good will and the thoughtful consideration of the employees he has an asset there that is more valuable on his annual statement than he reports it to be. Those of you famliar with looking at annual' statements gotten out by various corporations (I am looking at my friend of the General Electric who was talking about his annual statement a few minutes ago) will see on the annual statements the assets and liabilities and when you get to the bottom of the assets sometimes you see, "Good Will--$1.00." Try and buy it for a dollar. This is often a misstatement in an annual statement. It is worth more than a dollar. You don't sell and you wouldn't sell the love that your children and your wife have for you, yet you can't draw a dollar on it. You can't sell it, you can't got any cheques cashed on that. Neither can these employers draw cheques. That is the reason it is put down at a dollar. They can't draw cheques on the good will of their employees, but the good will of the employee and the good will of the customer and the good will of the constituency in which he operates is a very considerable asset. It is being recognized, it is being played up to. In spite of the flurries of excitement, in spite of the strikes and troubles that come along every once in a while we are making very rapid progress in both these countries and I see nothing myself but reason for congratulations to the big successful business men that are giving their lives--that is true--giving their lives to the betterment of conditions, in this world. You may say they are giving their lives to make money. Maybe they are, but the mortality among the business men, the high executives, the men who do not have limited working hours of six and eight hours but who work fourteen, sixteen, eighteen and twenty hours a day doing a great service, is very high. Let us say a good word for them once in a while. They are not as bad as we sometimes think they are.

Mr. President, Gentlemen, I thank you for the privilege of coming here. I thank you for your attention. I consider it a great honour to be invited here and I hope I have not wasted your time. (Applause.)

PRESIDENT: Mr. Kavanagh, we are all concerned about and are thinking about the subject of your address today and you have indeed clarified many points and given us further thoughts for study in this most interesting and instructive address. I express to you, Sir, the grateful thanks of your audience present, and your audience of the air.

The meeting stands adjourned.

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The Family Life of Big Business

Industrial relations. The shift from work at home to work outside the home, which then changed its name to industry. The unchanging characters of the people that do the work. The human factor now entering into the conduct of various business enterprises. A decrease in immigration since the war and the resulting scarcity of human labour. How that has effected the leaders of industry. Giving thought to the ways and means by which men and women can be kept pleased and satisfied. A new outlook on industry. Man as a four-sided individual: physical, mental, social, and sentimental. A consideration of each side or element. How industry today is catering to all sides in its effort to build up a solid, contented, satisfied and efficient machine. The mechanics and the humanics of business. Criticism being levelled against many employers of labour and the speaker's response to it. A detailed discussion of how industry is dealing with all four sides of their workers. Details of education, financial and social programmes provided for workers. Programmes operated through insurance companies. Life and hospitalization insurance. Old age insurance, or pensions. The word "retirement" used more frequently now than "pension." An analogy between these programmes and family life. The "good business" element of these programmes. The new gospel being preached by the employers of labour today: the three H's—the hands, the head and the heart.