|
A Flame of Success by Jim Davies
October 15, 2007 The
19th Century Industrial Revolution was one of the most glorious periods in
human history, for the societies that took part--notably in During
the Summer break, I had the chance to explore one small example of the
kind of enterprise that took part, when visiting
The
Jönköping Match Company was founded by the Lundstöm brothers in 1845,
close to a lake shore in what was then a small town in a predominantly
agricultural society. Their big innovation was of the safety match--one
that would ignite only when struck on the abrasive strip provided, not on
any old brick, stone or shoeleather. Demand boomed. Candles and oil lamps
needed lighting, as did wood fires for warmth and cigars and pipes for
relaxation, and the chemistry of the new invention gave them an edge. Production
was at first divided between factory and home.
Local residents could take in a batch of materials and assemble
matchboxes and matches to fill them, and return the finished articles for
payment under contract. Children could take part, of course, as they
always had done as family members in corresponding farm work--but they
drew no wage, unless from Pappa. Progressively the company drew the work
in to the factory--and children with it.
They were offered pay at a third of the adult rate, and that was
gladly accepted. Museum
visitors, however, are faced almost at once with the shocking revelation
that the Lundströms employed children at low wages, and that prolonged
exposure to phosphorus caused deformities of the eye, teeth and skin. What
wickedness! We were also told that the low-cost, modern housing provided
nearby was offered only to families whose every adult member was an
employee of the company. What discrimination! Praise was reserved for
actions of direct benefit to the community, such as making the company's
state-of-the art fire department available outside the factory gates. The
enormous indirect benefits it brought to the community were
overlooked or perhaps just not understood. During
the second half of the century, the company mechanized as much as possible
(not least, so as to reduce that close exposure to the chemicals found to
be so dangerous to health) and by 1892 its inventor and engineer Alexander
Lagerman at last delivered Jönköping
Match was the foundation of that modern city, and by aggressive marketing
of its products, it formed a prime example of Swedish industrial skill and
worldwide enterprise. Yet
those are not the impressions that would be gained by impressionable
members of, say, a visiting school tour group. Just as in Ayn Rand's Atlas
Shrugged, the heroes of commerce and the originators of widespread
prosperity are despised and belittled. This was a capitalist success
story, but it's being told by tax-funded peddlers of collectivist myth and
political rectitude. I
did notice that in the 20th Century, the company engaged in some
disreputable behavior, though the museum did not pick it out as such.
After WWI, there were mergers and acquisitions and control passed to one
Ivar Krueger, who set out to monopolize the match industry in as many
countries as he could. The method was to flatter each nation's political
leaders by printing their portraits on all matchboxes sold, in return for
"exclusive rights to market matches" in their domains.
Naturally, every business dreams of cornering its market--not too much
wrong with the desire, for it stimulates efficiency--but monopolies can be
sustained only when laws enforce them, and the
Swedish
Match Co. (as the
company became under Krueger) was corrupt enough to seek them just as the
local Pols were corrupt enough to grant them. Krueger killed himself in 1932 after FDR had the Fed contract the supply of US money, so precipitating a worldwide depression. He need not have; demand for matches had inevitably contracted as gas and electricity replaced wood fires and oil lamps, but Swedish Match still survives and prospers, even if not with the burning success it used to have. Jim Davies is a retired businessman in New Hampshire who led the development of an on-line school of liberty in 2006, and who expects to experience a free society in his lifetime. |