Under modern conditions of large business, particularly, the relation of the discretionary businessman to industry is that of authoritative permission and of authoritative limitation or stoppage, and on his shrewd use of this authority depends the gainfulness of his enterprise.
If this authority were exercised with an eye single to the largest and most serviceable output of goods and services, or to the most economical use of the country's material resources and man-power, regardless of pecuniary consequences, the course of management so carried out would be not sabotage but industrial strategy.

But business is carried on for pecuniary gain, not with an unreserved view to the largest and most serviceable output or to the economical use of resources.

The volume and serviceability of the output must wait unreservedly on the very particular pecuniary question of what quantity and what degree of serviceability will yield the largest net return in terms of price.
Uneconomical use of equipment, labor and resources is necessarily an everyday matter under these circumstances, as in the duplication of plant and processes between rival concerns, and in the wasteful use of all resources that do not involve expenditure on the part of the given concern.
It has been the traditional dogma among economists and publicists in these modern communities that free competition between the businessmen in charge will indefeasibly act to bring the productiveness of industry to the highest practicable pitch and would lead to the most unreserved and vigilant endeavour to serve the community's material needs at all points.

The reasons for the failure of this genial expectation, particularly under latterday business management, might be shown in some detail, if that were needed to enforce the argument as it runs in the present connection.

But a summary indication of the commoner varieties and effects of sabotage as it is systematically applied in the businesslike conduct of industry will serve the purpose as well and with less waste of words and patience.
It is usual to notice, and not unusual to deplore the duplication of plant and appliances in many lines of industry, due to competitive management, as in factories engaged in the same class of manufacture, in parallel or otherwise competing railways and boat lines, in retail merchandising, and in some degree also in the wholesale trade.