continued advantageous sate of the output of goods or services produced by the industrial use of this capital.
That is to say, the interest of the managers of a modern corporation need not coincide with the permanent interest of the corporation as a going concern; neither does it coincide with the interest which the community at large has in the efficient management of the concern as an industrial enterprise. It is to the interest of the community at large that the enterprise should be so managed as to give the best and largest possible output of goods or services ; whereas the interest of the coi^ poration aa a going concern is that it be managed with a view to maintaining its efficiency and selling as large an output as may be at the best prices obtainable in the long run ; but the interest of the managers, and of the owners for the time being, is to so manage the enterprise as to enable them to buy it up or to sell out as expeditiously and as advantageously as may be. The interest of the community at targe demands industrial efficiency and serviceability of the product ; while the bua^ neas interest of the concerD as such demands veo-
dibility of the product; and the interest of those men who have the final discretion in the management of these corporate enterprises demands vendibility of the corporate capital. The community's interest demands that there should be a favorable difference between the material cost and the material serviceability of the output ; the corporation's interest demands a favorable pecuniary difference j between expenses and receipts, cost and sale price of the output ; the corporation directorate's interest is that there should be a discrepancy, favorable for purchase or for sale as the case may be, between the actual and the putative eaming-capacity of the cor, poration's capital.