of minor or subsidiary processes upon the same
premisses or in close organic connection with the main process, the
establishment of a special workshop for repairs, various economies in
storage, which attend large-scale production.

(_d_) Economies consisting in saved labour and increased efficiency of
management, superintendence, clerical and other non-manual work, which
follow each increase of size in a normally constructed business. These
are often closely related to (_b_), as where clerical work is
economised by the introduction of type-writers or telephonic
communication, and to (_c_), as by the establishment of more numerous
and convenient centres of distribution.

(_e_) The utilisation of waste-products, one of the most important
practical economies in large-scale production.

(_f_) The capacity to make trial of new experiments in machinery and
in industrial organisation.

Sec. 2. To the class Economies in Competitive Power belong those
advantages which a large business enjoys in competing with smaller
businesses, which enable it either to take trade away from the latter,
or to obtain a higher rate of profits without in any way increasing
the net productiveness of the community. This includes--

(1) A large portion of the economy in advertising, travelling, local
agents, and the superiority of display and touting which a large
business is able to afford. In most cases by far the greater part of
this publicity and self-recommendation is no economy from the
standpoint of the trade or the community, but simply represents a gain
to one firm compensated by a loss to others. In not a few cases the
"trade" may be advantaged to the damage of other trades or of the
consumer, as when a class of useless or deleterious drugs is forced
into consumption by persistent methods of self-appraisal which deceive
the public.

(2) The power of a large business to secure and maintain the sole use
of some patent or trade secret in machinery or method of manufacture
which would otherwise have gone to another firm, or would have become
public property in the trade, represents no public economy, and
sometimes a public loss. Where such improvement is due solely to the
skill and enterprise of a business man, and would not have passed into
use unless the sole right were secured to his business, this economy
belongs to the productive class.

(3) The superior ability of a large business to depress wages by the
possession of a total or p