pendent staff that can determine the net result of all of your effort, collectively and individually.

Are you getting results? Is the thing there in your work which you think is there? How do you know? Where is the proof?

The salesmen of an organization were not selling their proportion of goods in two Southern States. The salesman who was covering the territory was sent out to find out why they were not selling the quantity of oil they should sell.

What did the salesman do?

He went in and said "Mr. Jones, you don't use more than half a barrel of 40-cent oil in a month, do you?" Jones replied"No, that's about right."

The salesman put down that reply on a slip.

Then he went over to Bill Jones and Bill Smith in the next town, and said "You don't sell more than a barrel and a half of 20-cent oil a month, do you?" They replied, "Barrel and a half, that's about right," and so it went.

The reports fully demonstrated that the salesmen were getting all that could reasonably be expected out of the territory.

The investigators looked at the statements, but the figures did not look right, they knew what proportion of oil they ought to get out of those States, they knew how much oil was being sold. in those States and they came to the conclusion there was something the matter with the investigators.

They sent independent investigators and they soon found the trouble. It was in the asking of the questions. They would go in to Jones or Brown and say "Jones, how much oil are you using, of the 40-cent grade?" Jones would reply-"I don't know." Then the investigator would say, "Here is a cigar. You would not mind giving me an estimate of what you sell, would you?" Jones replied, "No, not at all. I used three barrels last. month." "Is that your average?" "Well, two and one-half barrels a month would be about my average," and so it went on. There was just the difference-the salesman went out with the idea of finding out that he was doing all that he could be expected to do, and the investigator went out with the idea of finding out what the facts really were.

Of course, when some of us come to the conventions of The National Association of Corporation Schools and bear testimony

before the brethren on the wonderful things we are doing in our schools it is reasonable to expect, at least, that we do not color statements against ourselves, to say the least, but it is often a question whether we have the right understanding and the correct value of the performance and the results. There is need of paid men on the Association staff who can go into your industries and make scientific surveys of your educational needs. You need to encourage the development of courses for the training of vocational teachers who know vocations and who can teach.

You need propaganda. Like all professions, you are in danger of believing that secrecy sanctifies your efforts. Industry should help you more than it does. It will when it understands that you are making men more efficient for industry. You must show how vocational teaching develops efficient democracy-which is the only safe democracy.

The next five years will show many tremendous cataclysmic changes in American industry. None of us can foresee what the results will be. Be ready and have a plan to do something as the times change. At the present time there is a great deal of tendency to spread out thin, which puts me in mind of the hen who was busy running around the farm laying eggs, and when it came to setting time she went crazy trying to cover them!

Some time ago the daily papers had reference to certain steel plants which failed to get certain shell contracts let by this Government-I say this in the presence of Mr. McLeod-failed to get certain shell contract let by the United States Government and the contract was awarded to an English concern at Huddersfield, England. The article in the paper went on to tell what the new British efficiency had done to America.

It has been my purpose to leave with you these thoughts: We have lacked intelligence in meeting the problem of international industrial efficiency to date, because we have been proud of our ability to be tremendously wasteful in our methods. We must work true to economic law.

Our competitors of to-morrow are cutting out both waste in materials and lack of economic intelligence-they are buying brains where they do not have them, as the Japanese and Chinese have done.

Our Association must show the way by combining its experience and intelligence in propaganda for the benefit of the whole

business world, and cut out industrial waste by developing men who will do the right thing in the right way at the right time all the time, because they will be happiest in doing it that way. We must cease being afraid of efficiency, or of being considered efficient.

In closing let me paraphrase the saying of a famous Frenchman: If we, my friends, can see beyond the red mists of war that there endures the right of man to life, even though millions die to make that right secure;-if we can see the right of conscience to liberty, in spite of bloody Prussian blades; if we can see the sovereignty of reason, even if the whole world seems to have gone mad; if we can teach the holiness of labor to a Democracy in peril of its ease, we shall have gained a vision worthy of the price that must be paid. (Applause.)

THE TOASTMASTER: It has been the policy of The National Association of Corporation Schools to have rotation in office. It has been significant that persons who have held office and become ex-officers have kept their interest in the Association. I am sure that you will all be glad to hear a few words from one of our Past-Presidents, Mr. John McLeod, the Assistant to the President of the Carnegie Steel Company, and Past-President of The National Association of Corporation Schools.

ADDRESS

MR. JOHN MCLEOD: Mr. Toastmaster, Ladies and Gentlemen: It takes all kinds of philosophy to prepare a speech to deliver between the one you have just heard and the one I know you are going to hear, but that is my position and I need the philosophy. The only philosophy I can find I discovered to-day on the back of some postal cards downstairs. Your Toastmaster a short time before the speeches commenced asked me if I would consent to say a few words after. Mr. Lewis had spoken and before Mr. Tily commenced, telling me that when something happened here, as you noticed earlier in the evening, that when that happened Mr. Tily was lost in thought, coming to at the psychological moment, but that his thoughts were scattered and he believed he would require some little time between his period and Mr. Lewis' to collect his thoughts, so I consented after recalling something I read on the back of one of these postal

cards. It was something to this effect-That if Sherman was right in his definition of war, I felt like telling the Toastmaster to go to war. As a friend of Mr. Tily I did not, and then I thought I would appeal to your sympathies, but on the postal card down stairs it tells me that the only place you can find sympathy is in the dictionary. So I will, therefore, have to cast myself upon your mercy. I think maybe you have some of that quality left.

After the talk that Mr. Lewis has given us I doubt if any one would care to speak in any other than a serious vein, because we are confronted with a number of serious things at this period in our history which requires solution. I was rather impressed with a remark Mr. Lewis made during his talk. It was thisThat efficiency should be considered in the light of service to society. If what we do will not meet the test of that expression, and all that that expression implies, then nothing is efficient, because everything we do that is worth while has to produce that thing which we call service, either to ourselves or to others. If you will stop to consider the very crucial thing in selling is not in the selling of articles, but the selling of service represented by the articles; in other words, you are selling in terms of units of service. If that were not true then why should a man pay ten dollars for something that he can get for five dollars. If he is buying an article he might do that; if he is buying service he would not. Take the item of wheels, a forged wheel and a cast wheel. One is about double the price of the other but the unit of service is about in the ratio of 3 to 1, compared to the cheaper article. Therefore, we will find it necessary, as The National Association of Corporation Schools, to realize that we are going to try to solve a problem, and the problem can only be solved when we are satisfied ourselves and convince others that what we have to offer is going to be of service to them. In doing that you will find, I think to-day, a great many of the corporations and also a great many of those who are employed by the corporations, in a very receptive mood-they are willing to buy your article if you can convince them that it is going to serve them.

The large corporations have spent millions of dollars on the material end of their business and they have done it because they have been convinced that in spending that money they were going to get back service which would not only give a return for the

money expended, but give them a profit on the side. They are commencing to realize that in dealing with this human element they are doing this very thing about which I have just spokenthey are realizing that it is possible to make an expenditure of money which will yield a large return-they are now realizing that there is a capitalization which is practicable in the possibilities of the development of the humans with whom we are associated in our business endeavors, and that by doing something for them we are doing something for ourselves. Therefore, it is up to us to find out how to discover these human possibilities. We have to get yardsticks to measure them and put them to these tests which we heard of to-day, and I believe we are going to get them. I can see the signs of that. I can see that Brother Scott is approaching an answer.

The first time these tests are tried they will not yield 100 per cent efficiency, but they will give a certain percentage of efficiency. It may be that they will only yield, in the beginning, ten per cent of efficiency and that we will have to discard 80 or 90 per cent that is not efficiency. In my opinion, that is quite a lot to have accomplished in the time we have been working on this problem, some five years that is not a long time. It may seem long to some of the young men who are ambitious to do things all at once. We are making a mistake to expect an answer to these problems right away. You cannot get it right away. You will get a percentage of your answer. The rest of it you will be disappointed in, because we cannot reach these conclusions by any short cut methods, but this particular endeavor is, after all, an endeavor to do those things which will make for that thing which we call human happiness. If that is accomplished, and I think it will be, we can then repeat with better knowledge and better appreciation the lines of the great poet:

"O happiness! our being's end and aim.

Good, pleasure, ease, content! whate'er thy name:
That something still which prompts the eternal sigh,
For which we bear to live, or dare to die."

THE TOASTMASTER: Ladies and Gentlemen, you have heard from the past and I now want to refer to the future and present to you a young man whom we are all looking forward to, Mr. J. W. Dietz, the Vice-President of our Association, and the Edu