Thesenegotiationsandmuchofthestrategythatleadsuptoabusinessconsolidationareofthenatureofderangementsofindustry，afterthemannerspokenofabove。Sothatbusinessinterestsandmanoeuvrescommonlydelayconsolidations，combinations，correlationsoftheseveralplantsandprocesses，forsomeappreciabletimeaftersuchmeasureshavebecomepatentlyadvisableonindustrialgrounds。Inthemeantimethenegotiatorsareworkingatcross-purposesandendeavoringtoputtheirrivalsinasdisadvantageousalightasmaybe，withtheresultthatthereischronicderangement，duplication，andmisdirectedgrowthoftheindustrialequipmentwhilethestrategyisgoingforward，andexpensivemaladjustmenttoheovercomewhenthenegotiationsarebroughttoaclose。11*
Serviceability，industrialadvisability，isnotthedecisivepoint。Thedecisivepointisbusinessexpediencyandbusinesspressure。Inthenormalcourseofbusinesstouchingthismatterofindustrialconsolidation，therefore，thecaptainofindustryworksagainst，aswellasfor，anewandmoreefficientorganization。Heinhibitsaswellasfurthersthehigherorganizationofindustry。12*Broadly，itmaybesaidthatindustrialconsolidationsandtheworkingarrangementsmadeforthemoreeconomicalutilizationofresourcesandmechanicalcontrivancesareallowedtogointoeffectonlyaftertheyarelongoverdue。
Incurrenteconomictheorythebusinessmanisspokenofunderthenameof“entrepreneur“or“undertaker，“andhisfunctionisheldtobethecoordinatingofindustrialprocesseswithaviewtoeconomicsofproductionandheightenedserviceability。Thesoundnessofthisviewneednotbequestioned。Ithasagreatsentimentalvalueandisusefulinmanyways。Thereisalsoamodicumoftruthinitasanaccountoffacts。Incommonwithothermen，thebusinessmanismovedbyidealsofserviceabilityandanaspirationtomakethewayoflifeeasierforhisfellows。Likeothermen，hehassomethingoftheinstinctofworkmanship。Nodoubtsuchaspirationsmovethegreatbusinessmanlessurgentlythanmanyothers，whoare，onthataccount，lesssuccessfulinbusinessaffairs。Motivesofthiskinddetractfrombusinessefficiency，andanundueyieldingtothemonthepartofbusinessmenistobedeprecatedasaninfirmity。Still，throughoutmen’sdealingwithoneanotherandwiththeinterestsofthecommunitythererunsasenseofequity，fairdealing，andworkmanlikeintegrity；andinanuncertaindegreethisbentdiscountenancesgainthatisgotatanunduecosttoothers，orwithoutrenderingsomecolorableequivalent。
Businessmenarealso，inameasure，guidedbytheambitiontoeffectacreditableimprovementintheindustrialprocesseswhichtheirbusinesstraffictouches。Thesesentimentalfactorsinbusinessexercisesomethingofaconstraint，varyinggreatlyfromonepersontoanother，butnotmeasurableinitsaggregateresults。Thecareersofmostoftheillustriousbusinessmenshowthepresenceofsomesalutaryconstraintofthiskind。Notinfrequentlyanexcessivesensitivenessofthiskindleadstoawithdrawalfrombusiness，orfromcertainformsofbusinesswhichmayappealtoavividfancyaspeculiarlydishonestorpeculiarlydetrimentaltothecommunity。13*Suchgroundsofaction，andperhapsothersequallygenialandequallyunbusinesslike，wouldprobablybediscoveredbyadetailedscrutinyofanylargebusinessdeal。Probablyinmanycasesthebusinessstrategist，infectedwiththishumaninfirmity，reachesanagreementwithhisrivalsandhisneighborsintheindustrialsystemwithoutexactingthelastconcessionthataruthlessbusinessstrategymightentitlehimto。Theresultis，probably，aspeedierconclusionandasmootherworkingofthelargecoalitionsthanwouldfollowfromtheunmitigatedswayofbusinessprinciples。14*
Butthesentimentwhichinthiswayactsinconstraintofbusinesstrafficproceedsonsuchgroundsofequityandfairdealingasareaffordedbycurrentbusinessethics；itactswithintherangeofbusinessprinciples，notincontraventionofthem；itactsasaconventionalrestraintuponpecuniaryadvantage，notinabrogationofit。Thiscodeofbusinessethicsconsists，afterall，ofmitigationsofthemaxim，Caveatemptor。
Ittouchesprimarilythedealingsofmanwithman，andonlylessdirectlyandlesssearchinglyinculcatestemperanceandcircumspectionasregardstheulteriorinterestsofthecommunityatlarge。Wherethismoralneedofabalancebetweentheservicesrenderedthecommunityandthegainderivedfromagivenbusinesstransactionassertsitselfatall，thebalanceiscommonlysoughttobemaintainedinsomesortofpecuniaryterms；butpecuniarytermsaffordonlyaveryinadequatemeasureofserviceabilitytothecommunity。
Greatandmanyaretheitemsofservicetobesetdowntothebusinessman’saccountinconnectionwiththeorganizationoftheindustrialsystem，butwhenallissaid，itisstilltobekeptinmindthathisworkinthecorrelationofindustrialprocessesischieflyofapermissivekind。Hisfurtheranceofindustryisatthesecondremove，andischieflyofanegativecharacter。Inhiscapacityasbusinessmanhedoesnotgocreativelyintotheworkofperfectingmechanicalprocessesandturningthemeansathandtoneworlargeruses。Thatistheworkofthemenwhohaveinhandthedevisingandoversightofmechanicalprocesses。Themeninindustrymustfirstcreatethemechanicalpossibilityofsuchnewandmoreefficientmethodsandcorrelations，beforethebusinessmanseesthechance，makesthenecessarybusinessarrangements，andgivesgeneraldirectionsthatthecontemplatedindustrialadvanceshallgointoeffect。Theperiodbetweenthetimeofearliestpracticabilityandtheeffectualcompletionofagivenconsolidationinindustrymarkstheintervalbywhichthebusinessmanretardstheadvanceofindustry。Againstthisaretobeoffsetthecases，comparativelyslightandinfrequent，wherethebusinessmenincontrolpushtheadvanceofindustryintonewfieldsandpromptthemenconcernedwiththemechanicsofthecasetoexperimentandexplorationinnewfieldsofmechanicalprocess。
Whentherecitalismade，therefore，ofhowthelargeconsolidationstakeplaceattheinitiativeofthebusinessmenwhoareincontrol，itshouldbeaddedthatthefactoftheirbeingincontrolprecludesindustrialcorrelationsfromtakingplaceexceptbytheiradviceandconsent。Theindustrialsystemisorganizedonbusinessprinciplesandforpecuniaryends。Thebusinessmanisatthecentre；heholdsthediscretionandheexercisesitfreely，andhischoicefallsoutnowOnoneside，nowontheother。Theretardationaswellastheadvanceistobesetdowntohisaccount。
Asregardstheeconomiesincostofproductioneffectedbytheseconsolidations，thereisafurthercharacteristicfeaturetobenoted，afeatureofsomesignificanceforanytheoryofmodernbusiness。Ingreatmeasurethesavingeffectedisasavingofthecostsofbusinessmanagementandofthecompetitivecostsofmarketingproductsandservices，ratherthanasavingintheprimecostsofproduction。Theheightenedfacilityandefficiencyofthenewandlargerbusinesscombinationsprimarilyaffecttheexpensesofofficeworkandsales，anditisingreatpartonlyindirectlythatthiscurtailmentandconsolidationofbusinessmanagementhasaneffectuponthemethodsandaimsofindustryproper。Ittouchesthepecuniaryprocessesimmediately，andthemechanicalprocessesindirectlyandinanuncertaindegree。Itisofthenatureofapartialneutralizationofthewastesduetothepresenceofpecuniarymotivesandbusinessmanagement，-forthebusinessmanagementinvolveswastewhereveragreaternumberofmenortransactionsareinvolvedthanarenecessarytotheeffectivedirectionofthemechanicalprocessesemployed。Theamountof“business“thathastobetransactedperunitofproductismuchgreaterwherethevariousrelatedindustrialprocessesaremanagedinseveraltythanwhereseveralofthemarebroughtunderonebusinessmanagement。Apecuniarydiscretionhastobeexercisedateverypointofcontactortransition，wheretheprocessoritsproducttouchesorpassestheboundarybetweendifferentspheresofownership。Businesstransactionshavetodowithownershipandchangesofownership。Thegreatertheparcelmentinpointofownership，thegreatertheamountofbusinessworkthathastobedoneinconnectionwithagivenoutputofgoodsorservices，andtheslower，lessfacile，andlessaccurateonthewhole，isthework。Thisappliesbothtotheworkofbargainandcontract，whereinpecuniaryinitiativeanddiscretionarechieflyexercised，andtotheroutineworkofaccounting，andofgatheringandapplyinginformationandmisinformation。
Thestandardizationofindustrialprocesses，products，services，andconsumers，spokenofinanearlierchapter，verymateriallyfacilitatesthebusinessman’sworkinreorganizingbusinessenterprisesonalargerscale；particularlydoesthisstandardizationservehisendsbypermittingauniformroutineinaccounting，invoices，contracts，etc。，andsoadmittingalargecentralaccountingsystem，withhomogeneousramifications，suchaswillgiveacompetentconspectusofthepecuniarysituationoftheenterpriseatanygiventime。
Thegreat，atthepresentstageofdevelopmentperhapsthegreatest，opportunityforsavingbyconsolidation，inthecommonrunofcases，isaffordedbytheubiquitousandinasenseexcessivepresenceofbusinessenterpriseintheeconomicsystem。
Itisindoingawaywithunnecessarybusinesstransactionsandindustriallyfutilemanoeuvringonthepartofindependentfirmsthatthepromoterofcombinationsfindshismosttellingopportunity。Sothatitisscarcelyanover-statementtosaythatprobablythelargest，assuredlythesecurestandmostunquestionable，servicerenderedbythegreatmoderncaptainsofindustryisthiscurtailmentofthebusinesstobedone，thissweepingretirementofbusinessmenasaclassfromtheserviceandthedefinitivecancelmentofopportunitiesforprivateenterprise。
Solongasrelatedindustrialunitsareunderdifferentbusinessmanagements，theyare，bythenatureofthecase，atcross-purposes，andbusinessconsolidationremediesthisuntowardfeatureoftheindustrialsystembyeliminatingthepeCuniaryelementfromtheintersticesofthesystemasfarasmaybe。Theinterstitialadjustmentsoftheindustrialsystematlargeareinthiswaywithdrawnfromthediscretionofrivalbusinessmen，andtheworkofpecuniarymanagementpreviouslyinvolvedisinlargepartdispensedwith，withtheresultthatthereisasavingofworkandanavoidanceofthatsystematicmutualhindrancethatcharacterizesthecompetitivemanagementofindustry。Tothecommunityatlargetheworkofpecuniarymanagement，itappears，islessserviceablethemorethereisofit。Theheroicroleofthecaptainofindustryisthatofadelivererfromanexcessofbusinessmanagement。Itisacastingoutofbusinessmenbythechiefofbusinessmen。15*
Thetheoryofbusinessenterprisesketchedaboveappliestosuchbusinessasisoccupiedwiththeinterstitialadjustmentsofthesystemofindustries。Thisworkofkeepingandofdisturbingtheinterstitialadjustmentsdoesnotlookimmediatelytotheoutputofgoodsasitssourceofgain，buttothealterationsofvaluesinvolvedindisturbancesofthebalance，andtotheachievementofamorefavorablebusinesssituationforsomeoftheenterprisesengaged。Thisworkliesinthemiddle，betweencommercialenterpriseproper，ontheonehand，andindustrialenterpriseinthestrictersense，ontheotherhand。Itisdirectedtotheacquisitionofgainthroughtakingadvantageofthoseconjuncturesofbusinessthatariseoutoftheconcatenationofprocessesintheindustrialsystem。
Inasimilarmannercommercialbusinessmaybesaidtobeoccupiedwithconjuncturesthatariseoutofthecircumstancesoftheindustrialsystematlarge，butnotoriginatinginthemechanicalexigenciesoftheindustrialprocesses。Theconjuncturesofcommercialbusinessproperareinthemainfortuitous，insofarthattheyarecommonlynotinitiatedbythebusinessmenengagedinthesecommercialpursuits。Commercialbusiness，simplyassuch，doesnotaimtoguidethecourseofindustry。
Ontheotherhand，thelargebusinessenterprisespokenofaboveinitiateschangesinindustrialorganizationandseeksitsgaininlargepartthroughsuchalterationsofvaluelevelsastakeplaceonitsowninitiative。Thesealterationsofthevaluelevels，ofcourse，havetheireffectupontheoutputofgoodsanduponthematerialwelfareofthecommunity；buttheeffectwhichtheyhaveinthiswayisonlyincidentaltothequestofprofits。