Before the dawn of the Samuelson era at M.I.T., the department had definitely a different look and feel. Davis R. Dewey was a reasonably known scholar of public finance in his day. But the mixture of business and economics is the most striking impression one takes away from the course offerings. Look at the program 30 years later! The group portrait of the M.I.T. economics department in 1976 reveals the addition of one woman!
Back row: Foster, Fiske, Thresher, Underwood, Elder
Middle row: Ingraham, Raymond, Fernstrom, Doten, Silverman
Front row: Schell, Dewey, Tucker, Porter
Source: The M.I.T. Yeaarbook, Technique 1930, p.
________________________
Faculty of Economics, Statistics [and Business]
Davis Rich Dewey, A.B., University of Vermont’79, Ph.D., Johns Hopkins ’86, L.L.D., University of Vermont ’10.
Professor of Political Economy and Statistics; in charge of the Department of Economics and Statistics: in charge of the course in Engineering Administrations.
Floyd Elmer Armstrong, B.A., ’14, M.A., ’15 University of Michigan.
Professor of Political Economy
Carroll Warren Doten, Ph.B., ’95, A.M. ’99, University of Vermont; A.M., Harvard University ’02.
Professor of Political Economy.
Erwin Haskell Schell, S.B. ’12, M.I.T.
Professor of Business Management.
Donald S. Tucker, A.B., Colorado College ’06; A.M., Williams College ’12; Ph.D., Columbia University ’23.
Professor of Political Economy.
Charles H. Porter, A.B., Brown University ’00; S.B. ’03.
Associate Professor of Accounting.
Karl Dickson Fernstrom, S.B. ’10.
Associate Professor of Business Management.
Fairfield Eager Raymond, A.B., Harvard University ’18; S.B. ’21.
Assistant Professor of Industrial Research.
Wyman Parkhurst Fiske, A.B. ’20, M.A.B. ’23, Harvard University; LL.B., Suffolk Law School ’27.
Assistant Professor of Accounting.
Robert Fairchild Elder, A.B., Harvard University ’22.
Non-Member of the Faculty, Instructor.
F. Leroy Foster, S.B. ’25.
Non-Member of the Faculty, Instructor.
Olin Ingraham, Ph.B., A.M.
Instructor.
Abraham George Silverman, S.B., Harvard University ’21; M.A., Stanford University ’23; A.M., Harvard University ’24.
Non-Member of the Faculty, Instructor.
Brainerd Alden Thresher, S.B. ’20; A.M., Harvard University ’28.
Non-Member of the Faculty, Instructor.
Raymond Underwood, S.B. ’29
Non-Member of the Faculty, Assistant.
Oscar W. Hausserman, A.B. ’12, LL.B., ’16, Harvard University.
Special Lecturer for Business Law
Joseph Chrisman MacKinnon, S.B. [?]
Registrar of Business Administration, M.I.T.
________________________
DESCRIPTION OF SUBJECTS
ECONOMICS AND STATISTICS
M.I.T., 1930-31
In this Department is grouped the instruction given in general economics to students all courses, and also the more specialized subjects provided for the course in Business and Engineering Administration (XV).
Subjects Ec1 to Ec99
Ec21. Political Economy. [Prerequisite: E12] Less extensive in its scope than Political Economy Ec31, Ec32. More emphasis is placed upon fundamental principles, and less time devoted to such subjects as money, banking, trusts, labor problems, etc., which are covered by special subjects in Course XV. [Doten]
Ec31, Ec32. Political Economy. [Prerequisite: E12] Elementary but comprehensive. Consists of an analysis and description of the existing economic structure of society, a brief study of economic theory and the application of that theory to some of the more important economic questions. Special attention is given in Ec32 to fundamental business processes including principles of accounting, corporate organization and finance, credit and banking, labor problems and business management. [Dewey and D. S. Tucker]
Ec35. Political Economy. [Prerequisite: E31] Given for students in Course XIII-A. Covers Ec31 and part of Ec32. [Armstrong]
Ec37. Banking. [Prerequisite: E21, Ec65] Credit instruments, credit documents, national banks, state banks, trust companies, savings banks, different kinds of loans, securities for loans, credit statements, the bank statement, the money market, relation of the treasury and crop movement to money market, clearing house, domestic and foreign exchange. [Dewey]
Ec45. Industrial Relations. Covers in general the same field as G21, though in somewhat abbreviated form. Special consideration is given to the history of the railroad brotherhoods and to the federal laws applicable to disputes in that industry as well as to its personnel problems. [Doten]
Ec46. Industrial Relations. [Prerequisite: E21 or Ec31] Intended to familiarize the student with the more important problems which arise out of the relation of employer and employee under present conditions of industry. In addition to a consideration of the organizations and policies of the parties to the contract of employment, it deals with the principles and to some extent the technique of employment management or personnel work. [Doten]
Ec471, Ec472. [Prerequisite: E21 or Ec31, G21] Personnel Management (A). Principles and technique of personnel work, sometimes called human engineering. Problems that arise in practice in recruiting, training and maintaining a labor force. Comparative studies of the methods and practices in selection, including mental and trade tests; placement, promotion and transfer; education and training; job analysis and specifications; the measurement and control of turnover; regularization of employment; absenteeism and tardiness, and other specific problems. Other topics for investigation will include methods of wage payment; benefit plans, including pensions and insurance; health and welfare work; housing; labor legislation, including safety supervision and workmen’s compensation. [Doten]
Ec50. Accounting. [Prerequisite: E12] Systematic recording of financial data is a requisite of business; its basis double entry bookkeeping. But more important for management, stockholders and the general public is analysis directed toward useful conclusions. Instruction therefore, deals with balance sheets, profit and loss statements, surplus, depreciation reserves, methods of report analyses, etc. Actual corporation reports and records are studied. [C. H. Porter, W.P. Fiske]
Ec51. Cost Accounting (B). [Prerequisite: E50, Ec70] Methods of determining costs of materials, processes of labor and machines; the distribution of direct costs and overhead expenses; cost data to test management and to show the particular sources of profits or losses; shipping orders; inventories; recording and payment of wages. The development of standard costs as a basis for management and industrial control is emphasized. [C. H. Porter, W.P. Fiske]
Ec521. Analysis of Business Statements (A). [Prerequisite: E51] Aims to develop analytical ability in the interpretation of business statements and reports. Will include analysis of actual statements, study of type and information needed for complete analysis, adequacy of accounting methods used, structure and content of statements. Points of view of the creditor, the investor and the manager will be considered. Will include study of statements of financial condition, statements of earnings, operating and cost reports, both published statements and internal reports. Methods will include ratios, trends, standards of comparison, and absolute change. [Fiske]
Ec522. Control Through Business Records (A). [Prerequisite: E51] Control of any but the smallest business depends upon an adequate system for the gathering of information needed by executives. Will examine the fundamental principles behind records systems and the extent to which various actual systems meet the requirements for which they were set up. Periodic reports, budgets, costs, cash control, internal check, inter-company and branch office control, voucher procedure, inventory records, payroll procedure, expense control, sales records, machine accounting and special problems of control in various industries will be considered. A general study of some complete record system or a detailed study of some special problem of control will be required of each student. [Fiske]
Ec53. Building Finance (B). [Prerequisite: E21] Describes the financing of new building projects as well as the financing of the building constructor. The topics studied include the valuation of real estate, method appraisal, depreciation, financing by first and second mortgages, mortgage companies, building and loan associations, construction loans, bank credit and the administration of finance. Special attention will be devoted to those aspects of building finance which are connected with the problem of securing new business for the building constructor. [D. S. Tucker]
Ec542. Public Utility Accounting and Analysis (A). [Prerequisite: E21, E50, E57] The special accounting problems of gas and electric companies; a study of the figures needed by the operating management of the companies; the reaction of cost and sales analysis on rates and rate forms; both problems and discussion will be based very largely on actual cases. [C. H. Porter]
Ec551. Public Utility Finance (A). [Prerequisite: E21, E50, E57] Lectures, readings and reports on the financial organization and operation of public utilities, with an analysis of their security issues. Attention is given to government control of financing, the analysis of public utility reports, and the market position of utility stocks and bonds. The operations of holding companies and finance companies and their relation to operating companies constitute an important part of the work. [Armstrong]
Ec552. Public Utility Regulation and Rates (A). [Prerequisite: Ec551] The development and evolution of public utility regulation; the various methods of regulation contrasted and compared; the legal foundations of regulation, the legal duties imposed upon pubic utilities and their legal rights; rates, rate structures and rate control, with much attention to important rate cases; valuation of utility properties and a comparisons of the different methods proposed for determining the rate base. Students will devote some time to actual attendance at hearings before the Public Utility Commission. [Armstrong]
Ec56. Corporate Organization. [Prerequisite: E21, E50] The organization and control of corporations with some attention to other forms of business. Consideration is given to procedure and problems of incorporation, relationships of the parties in the corporation, and combinations of corporations in our large industrials. Public utility corporations are studied briefly with the purpose of presenting the relations of public service corporations and the public. [Armstrong]
Ec57. Corporate Finance and Investments. [Prerequisite: E56] Covers fundamental principles of financial organization and management. The various types of corporate securities are examined, the financial problems of the promoter, the incorporators and the later financial management are studied and illustrations are drawn from concrete cases. The latter part of this subject considers more specifically the different kinds of investment securities with exercises in investment analysis, and a discussion of the methods of the exchanges, brokerage and speculation. Lecturers from investment houses assist in this branch of the subject. [Armstrong]
Ec591. Public Utility Management and Finance (A). [Prerequisite: E21 or Ec31] Deals with the theoretical and practical phases of public utility management. The subject matter will include a brief study of corporate organization and management in general, followed by the application of the general principles of finance and management to public utility enterprises. Emphasis will be placed upon problems of capitalization, holding company organization and certain phases of accounting which bear upon the financial policies of these companies. [Armstrong]
Ec592. Public Utility Management and Finance (A). [Prerequisite: E591] A continuation of Ec591 including public relations, rate making, valuation and regulation by commissions. Some attention will be given to analysis of territory served. In addition to instruction by members of the Institute Faculty, a broad range of topics of direct concern to pubic utilities and to users and refiners of fuels will be covered by lectures by men of special achievement in their several fields. [Armstrong]
Ec61, Ec62. Business Law. [Prerequisite: E37, Ec57] (1) General principles of contract law; and (2) special kinds of contracts, such as contracts for sale of real estate, contracts for sale of personal property, contracts of employment, and bills and notes; (3) agency; (4) forms of business enterprise from standpoint of legal structure, i.e., corporations, partnerships, business trusts, etc. [Hausserman]
Ec63. Business Law and Organization (A). [Prerequisite: E31] A graduate study of business organization from both a legal standpoint and a management standpoint. The subject of contracts and the personal relations of individuals within the organization are emphasized. The advantages and disadvantages of various types of organization are discussed. [Hausserman]
Ec65. Statistics. [Prerequisite: E12] Elementary instruction is given in the construction of statistical tables and charts, official sources of commercial and financial statistics of the United States, and the interpretation of such material. Some attention is given to the statistical methods of forecasting. [Dewey]
Ec661, 662. Statistical Methods (A). [Prerequisite: E65, M21] Study of the principles and methods used in more advanced statistical analysis. Some of the topics included are correlation of two variables, multiple and partial correlation, simple sampling and the basic theory of probability with special reference to business problems. Determination of historical trends and periodic fluctuations of economic time series will receive attention preparatory to the major problem of business forecasting. [MacKinnon]
Ec681, Ec682. Business Cycles (A). [Prerequisite: E37, Ec57, Ec65] A study of the fluctuations in the different phases of business. In this is involved statistical interpretation, theories of the business cycle, studies of the intercausation of the different types of business changes, the interpretation and experimental tests of forecasting methods. [Ingraham]
Ec70, Ec71, Ec72. Business Management Ec71, Ec72 (B). [Prerequisite: E56] Deals with problems of the production and distribution of manufactured goods. Among the more important topics considered are: Organization; plant location, layout and equipment; purchasing; intra-factory transportation; traffic; inspection; stores; design; time, motion and fatigue study; production control; office organization, layout and equipment; commercial research; marketing methods, sales promotion and advertising. As far as possible the practices of production and marketing are studied in parallel, thus emphasizing the development of similar principles of scientific management in both fields. [Schell]
Ec74. Contracting Management. Deals with the business aspects of the building industry. The following topics are considered from an administrative viewpoint: organization, estimating, purchasing, contracts, insurance, sales promotion, control of equipment, control of materials, office control, regularization of work, research coordination of sales, finance and construction programs, organization and management of small construction enterprises, cost accounting and the law of contracts. [Schell]
Ec751, Ec752. Manufacturing Analysis (A). [Prerequisite: E72] Deals with the conduct of professional engineering analyses of management methods in a manufacturing establishment. Schedules are prepared for the critical investigation of such functions as organization, arrangement and maintenance of buildings and equipment, product research and design, purchasing traffic control, storage of materials and product, intra-factory transportation, quality control, salvage, time study and production control. Library research, field interviews and inspections, and a brief thesis are requirements of the course which is conducted as a seminar. [Schell]
Ec761, Ec762. Marketing of Manufactured Products. [Prerequisite: E72 or equiv.] Advanced practice in the organization of the various marketing functions, such as market research, sales forecasting, quota setting, budgets, and sales incentives. Familiarity with current practice is a prerequisite. Trends in development of marketing functions are studied, with the aim of preparing a technique for analyzing the efficiency of any marketing organization. Special emphasis is given to the coordination of selling methods, and to the fundamentals underlying sales policies. The marketing of goods sold to the manufacturers and the marketing of goods sold to the ultimate consumer are handled separately. Readings in current sources, field investigations of specific problems, and a brief thesis are required. [Elder]
Ec781, Ec782. Standards of Measurement in Industrial Management (A). [Prerequisite: Ec70, Ec71, Ec72] Measurement in management is a new conception of the relation of executive responsibilities to the success of any industrial enterprise through the recognition of the principle that a qualitative unit of measure is essential to the scientific regulation of any activity. Weekly classroom discussions based on original investigations will be devoted to a study of practical standards employed in industry and the derivation of methods of measuring and evaluating accomplishment as typified by financial and management ratios, the kilo man-hour, productivity index, economic production and purchase quantities, economic processes, wages, time and motion study, office efficiency ratios, economic sales volume, etc. [Raymond]
Ec80. Ocean Shipping Administrations. [Prerequisite: E31] Deals with the types of ocean services and traffic agencies and their organizations; rate and traffic agreements; ocean shipping documents; ocean rates and regulation; marine insurance; and admiralty law. Its purpose is to acquaint the student with the more important aspects of the business administration of ocean shipping activities. [Fernstrom]
Ec90, Ec91. Investment Analysis (A). [Prerequisite: Ec50, Ec57, Ec65] Various methods of analyzing financial reports of companies whose securities are placed upon the market. Testing of ratios for appraising the value of the security. Risks versus yield of junior and senior obligations; yields and risk of common stock; problems raised by convertible securities; measurements of risks and yield of the securities of new industries; of the securities of stationary and dwindling industries; relation of price to earnings; risk and yield of securities of holding companies and investment trusts; railroad records and derivative ratios; tests of investment bank statements, of business ratios; tests of investment bank statements, of business ratios applicable to investments, and of systems of rating. [Ingraham]
Ec95. Industrial Traffic Management. [Prerequisite: Ec72] A detailed study of the organization and operation of a traffic management department of an industrial plant. The course deals with industry’s conception, interpretation and use of such matters as freight classifications, rate structures, routes, carrier-shipper relations, common carrier liabilities, general and special services, national and state common carrier regulations and protective insurance. Due consideration is given to the types of transportation agencies such as rail, water, air, motor truck, mail, parcel post and express. [Fernstrom]
The following subjects are offered as general studies. For description of G25 see Division of General Studies, page 231.
Ec46. Industrial Relations. G25. Investment Finance.
Source: Course Catalogue of the Massachusetts Institute of Technology 1930 – 1931, pp. 222-225; 281-282
Image Source: Davis R. Dewey in the M.I.T. Yearbook, Technique 1931, p. 47.