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ATLANTA BALTIMORE BIRMINGHAM BOSTON BUFFALO CHARLOTTE CHICAGO CINCINNATI CLEVELAND DALLAS DENVER DETROIT JACKSONVILLE KANSAS CITY LOS ANGELES MINNEAPOLIS NEWARK NEW ORLEANS NEW YORK PHILADELPHIA PITTSBURGH HASKINS & SELLS CERTIFIED PUBLIC ACCOUNTANTS BULLETIN EXECUTIVE OFFICES 15 BROAD STREET. NEW YORK PORTLAND PROVIDENCE SAINT LOUIS SALT LAKE CITY SAN DIEGO SAN FRANCISCO SEATTLE TULSA WATERTOWN BERLIN LONDON MANILA PARIS SHANGHAI HAVANA MEXICO CITY MONTREAL VOL. X I NEW YORK, NOVEMBER, 1928 No. 11 The Era of Consolidations COMPETITION, traditionally referred to as "the life of trade," today frequently finds itself branded as a "menace to business." In that ideal state which economists assume as an hypothesis upon which to base their reasoning, free competition is held not only to be a boon to consumers, but to regulate production so that it is confined to a profitable basis. In that practical world with which business enterprise actually has to deal, free competition may be advantageous to the buying public, but statistics show that it does not always keep production within the bounds of profit. Boarding houses spring up in a city like New York, not because compiled data show that there is a profitable demand for more and better boarding houses, but frequently because some uninformed widow must seek a means of economic existence, and she determines to "try her luck" at accepting paying guests. The result usually is a shortlived experiment, continuing until the meagre capital has been exhausted. Business ventures, too often, are like city boarding houses. They are likely to be begun without adequate survey of the field and scientific planning of the operation. Frequently, they are continued, regardless of demand, without knowledge of costs, and with intermittent, if not continuous, losses of capital. The facts, if they could be developed, probably would show that many businesses are started without a possible chance of economic success. They are continued in the face of certain failure. They battle with competition which is sure to be fatal. The entrepreneurs "try their luck" when there is no luck to be had. The outcome is preordained. Such is the condition of thousands of small enterprises today. The business in their respective fields is so organized that they cannot compete and survive. High costs which go with small volume of production sap their capital and leave them, sooner or later, stranded in the bankruptcy courts. The day of small business in this country probably is past. Consolidation is the order of the day. Every industry seems to be headed toward the formation of larger units, working on a basis of sound and sane competition. The economists may yet realize their ideal state. In the meantime, the accountant must understand what should be his part when business units are brought together. He must furnish, in consolidated form, the results of past performances of the units. He should not undertake to prophesy what
Object Description
Title |
Era of consolidations |
Author |
Anonymous |
Subject |
Consolidation and merger of corporations |
Citation |
Haskins & Sells Bulletin, Vol. 11, no. 11 (1928 November), p. 81-82 |
Date-Issued | 1928 |
Source | Originally published by: Haskins & Sells |
Type | Text |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Libraries. Accounting Collection |
Date-Digitally Created | 2009 |
Identifier | HS Bulletin 11-p81 |