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pints;” “500 Pills Dover's Powder (powdered inventor a million dollars, buying the process opium)."

outright. It is understood that this arrangement is It now develops, however, that the Maxim something of an experiment. If it works out company has merely closed a contract for the well, it will be continued permanently.

exclusive manufacturing rights. Nevertheless this is extremely significant. The big muni

tions company evidently sees much merit in BULLETIN

There are said to be all sorts the proposition; special laboratories are to be ILLUSTRATIONS of trusts, and now, it is built and every facility afforded to develop

charged, the photoengravers the invention to its fullest commercial possihave rigged up one!

bilities. Thus a relief from the present high So, if your BULLETIN comes to you some price of gasoline may be in sight. time in the near future minus illustrations of The process hinges, it is stated, on the liberany kind, you may conclude that we have ation of hydrogen. The invention is said to joined an antiengravers' association and re- be revolutionary in character. fused to pay trust rates !

The engravers' movement started in Chicago, we are told, where an advance in prices

The Abbott Alkaloidal Company, Chicago, running all the way up to 200 per cent was put

has issued a statement positively denying the into effect, and plans were laid to organize 34

newspaper reports pertaining to the explosion other cities on the same basis. Detroit was

which occurred in the company's laboratories organized" three or four months ago.

in April. Particular exception is taken to the But trouble was encountered when New

statement that the company has been engaged York was struck. The matter was brought to

in the manufacture of ammunition or exthe attention of the district attorney, and unless the organization back of the movement, no

plosives. matter how loosely constructed it may be, either disbands or mends its ways, it is an- The result of the referendum vote taken by nounced that action will be brought under the the Chamber of Commerce of the United anti-trust laws.

States on the issue of price maintenance has In the meantime, however, don't worry been announced. By a vote of 693 to 237 the about the pictures in the BULLETIN. We'll try Chamber is committed to the principle of price to keep right on supplying them, somehow!

protection. But now that we have to pay double prices for printing paper, due to the war, why couldn't the engravers let us alone for a while?


The New York legislature adjourned without passing the Hamilton-Fertig bill, a measure

designed for the purpose of subjecting manuThere has been a great deal facturers of proprietary preparations to the ENRICHT GASOLINE in the public press lately control of the State department of health.

about the process invented by Dr. Louis Enricht, of New York, for the seemingly miraculous turning of water into a The Era Directory, recently published, substitute for gasoline. It has been stated that places the number of drug stores in the United the Maxim Munitions Corporation paid the States at 46,561.





The Bulletin next month will contain something of special interest on the soda fountain. A member of the Bulletin staff is now in the East and will seize upon the occasion to interview some of the largest and most successful soda men. The material he is collecting will be made the subject of one or more articles beginning with the July issue.

a business of this type? It has often been EDITORIAL

claimed that a druggist ought to realize at least three turnovers a year. Inasmuch as the cost

of goods sold annually is $6500, he will thus A COMMON FALLACY.

have to reduce his investment to a point as low

as $2200. This is doubtless pretty small for In the business literature of the day one sees

a business of this size, but assuming that such a good deal of advice on the subject of turning

a point can be reached, we then find that a net over one's stock as many times a year as pos- profit of $1000 for the year has been made on sible. Some of this advice is wise. Some of

a stock investment of $2200. Without menit is very misleading.

tioning the investment in fixtures, and considIn a book published within a year or two,

ering the stock alone, the druggist has, thereentitled “Keeping Up with Rising Costs,” the

fore, made his capital yield him 45 per cent. conclusion is finally arrived at in the last

But if, now, he is a poor merchant according chapter that the answer to constantly increas

to the views of these profit mathematicians, ing expenses is found in more turnovers. In

and is only able to turn over his stock 1972 other words, if a merchant will only turn his

times a year instead of 3, his investment will capital frequently enough, he will convert losses into profits. This is the one solution

become $4100 in place of $2200, and he will given by the author to the great problem of

then only be making 227/2 per cent on his cap

ital instead of 45. rising costs and decreasing yields.

This looks ominous, and it is very easy for But stock turnovers comprise no such pan

a clever writer and a good arithmetician to acea as this would indicate. Let us examine into the facts with some care.

convince such a druggist that he has failed You understand that such writers, when lamentably to make the most of his opportuni


ties. He has carried too much stock, he has they talk about increasing the number of stock

paid too little attention to turning over his turnovers annually, do not mean by this an increase in annual sales. That is an entirely capital, and he has made only half as much different question. If you keep your stock

vield on his investment as he should.

But what is the essential truth behind this moving by selling more and more goods, you

somewhat sophistical argument? are going to boost your business and make more money—there isn't any doubt about that.

This imaginary druggist that we are talking

about has committed the crime of tying up But then we are primarily discussing increased sales and not increased turnovers.

$1100 in stock instead of $2200. His investWhat is usually meant by turning over your

ment is therefore $2200 too much. What has capital more frequently is merely this, that you

he suffered as a result? Simply this—he has reduce your investment by carrying a smaller

lost the interest return on the extra $2200. stock in order that, with sales at a certain

That's all. Estimated at 5 per cent, this is a point, you may do business on less money.

mere matter of $110 for the year. Everything that is said in this editorial must

For, if the druggist had kept his stock down be read with this distinction clearly in mind.

to $2200, and had invested the remaining Take, for instance, the figures representing $2200 outside his store, as would otherwise the average drug business that have been

have been the case, the money would have printed in this journal on many occasions dur

earned him 5 or 6 per cent-probably not more. ing the last few years. The sales are $10,000

He might, therefore, have added something a year; the cost of goods sold is $6500; the like $110 or $120 to his net income for the expenses are $2500; and the net profits are

year, but this isn't any such sum as we are $1000. The percentage of expense is 25 based

often led to believe can be realized from turnon the selling volume. The percentage of

ing one's stock over twice as rapidly. Not gross profit is 35, and the percentage of net here do we find an infallible remedy for all profit is therefore 10.

the ills of store-keeping. This represents with considerable accuracy On a purely percentage basis, it is easy to the average drug store, both as to volume of show that such a merchant has only made his business and profit yield.

investment in stock yield half what it should, Now what reference has stock turnovers to and that instead of realizing a net profit of 45


per cent he has only managed to complete the attend to their wants. Here we see the vast year with 221/2. But figured in real dollars, difference between clerks, and why it is that the difference in actual cash at the end of the one should be paid three times as much as year is after all very slight, and this difference another. As a matter of fact, the sales girl might easily be more than made up in other receiving $15 a week was underpaid, while the ways.

apology for a clerk who was getting $5 a week When a dealer, anxious to keep his stock was being grossly overpaid. turning as rapidly as possible, cuts it down too If the druggist ever happens to work this low, he loses the attractiveness which a larger thing out scientifically, he can determine pretty assortment has for many customers. Sales accurately that he is safe in paying a clerk up are often lost because a druggist hasn't got to 8, possibly, or even 10 per cent of his what people ask for, and when a man reduces volume of sales. If, on the other hand, a his stock too much, he is crippling himself in clerk is paid materially beyond that, it may be a hundred different ways. Frequent buying well to look into his efficiency. in small lots, moreover, usually means the loss of best prices and discounts, and it involves

PRETTY CONVINCING LOGIC. more bookkeeping, larger freight and express bills, and more trouble and expense generally; lines of trade are finding it difficult to keep up

Nowadays many manufacturers in different So that, when the whole thing is summed up for the average druggist, the question is

with their orders. They have more business just about as broad as it is long. By all means

than they can attend to. Under the circum

stances some of them have discontinued their turn over your capital as often as you can. This is good business. It is good finance. But advertising, and one such manufacturer wrote don't think that it has any magic power to

E. St. Elmo Lewis asking him what he thought

of such a step. increase your profits materially, and to turn your business from a failure into a success.

Lewis replied as follows:

The oversold manufacturer is reaping two results

to-day, either the results of consistent advertising in WHAT IS A CLERK WORTH?

the past, or the benefits that are coming to all manu

facturers in a hungry market. If he is in the first class, Investigators who have studied the problem

he should advertise to-day because he will want business of retail merchandising up and down the line five years from to-day; if he is in the latter class, he have discovered that clerk hire represents from should advertise to insure that he will get more than 8 to 10 per cent of the annual volume of sales.

his competitive share when the market is glutted. This is the one largest item in the expense ac

That there is no necessity for overadvertising is self

evident, but we take it that your question means exactly count, and next to it in point of size is of

what it infers, and that is-shall he cut out all advercourse the proprietor's own salary.

tising? The manufacturer with a short view of merManagers of department stores have figured chandising will cut out his advertising when he gets the thing out very scientifically, and some of

behind on orders; the manufacturer with the long view them have arrived at the conclusion that a

will continue advertising on the same principle that a

man realizes he is going to be hungry day after tosalesman should be paid a salary roughly based

morrow, no matter how well he has dined to-day. The on his sales. In other words, no clerk should tramp lives from meal to meal. That is the difference receive more than 8 per cent, say, of the vol- between the long view and the short view of the whole ume of business that he turns in. It has fre

problem. quently been found, however, that the highest This is the answer of an expert—of a man priced salesman is really the most economical, who has frequently been called into council and that the dub who gets $5 a week is often by large manufacturers to help them outline an expensive luxury. In one case, for in


their selling and advertising campaigns. He stance, a girl drawing 10 per cent of her sales knows what the game is. He knows why to was receiving $5 a week, while another draw- play it and how to play it. ing 3 per cent was getting $15 a week. The Lewis's advice applies to the manufacturers opportunities for making sales were about this year who are cutting out their advertising. equal in both cases. The fifteen-dollar woman, It applies, though perhaps in less measure, to however, was so successful that customers the retailer who is tempted to do the same would wait for her when she was busy with thing. other patrons rather than have another clerk Don't!

Last inonth an editorial appeared in the

BULLETIN which has attracted a great deal of
attention and which has brought expressions
from all parts of the country.

PARKE, DAVIS & CO.'S NEW AUDITOR. We suggested that right now is the time to It is gratifying to see men rise in the world make an effort to win more business for the and come into their own. The resignation of prescription department.

H. D. Allee as auditor for the corporation of Very recently a letter came to us, from Parke, Davis & Co., of this city, afforded the which we quote: "It is my opinion that we Board of Directors an opportunity to prohave a splendid opportunity to increase our mote Norman McLeod, who had been travelbusiness by urging physicians to prescribe in- ing auditor of the organization for ten years, stead of dispense. The present high prices and who in that capacity had visited branches that generally obtain have got the doctors of the house all over the United States. He guessing; they do not want to give up some of had even been to the London Branch on two the drugs and preparations they have been in or three occasions. the habit of using, and they hardly can afford Born in 1875, in London, Ont., Mr. to dispense them at present prices. The laity McLeod got his first training in the Canadian has become reconciled to high costs as far as Bank of Commerce. He was sent to several drug stores are concerned, and I believe that now is the time to strike, and by persistent and concerted action all along the line I am sure the doctors will see the logic of the situation and write prescriptions as they never wrote them before."

Surely if physicians can ever be brought “to see the logic of the situation,” now is the accepted time. Such an opportunity never existed before, and in all probability never will exist again.

We repeat, therefore, the admonition voiced last month: go to your dispensing physician and ask for the business. There can be no harm done, at the worst.

Point out the facts that prices are constantly advancing, and that in all likelihood they will continue to advance for some time to come.

If you cannot persuade the physician to abandon the practice at once, suggest that he do so gradually as his stock becomes depleted.

of the branches of the bank throughout the Do not overlook this unusual opportunity!

Dominion, and made such a reputation that he was captured by the Detroit Stove Works

and made general accountant of that corporAnother fatal poisoning case out in Califor

ation. Later on he was promoted and made nia is due to the administration of barium car- assistant secretary and assistant treasurer. Ten bonate instead of barium sulphate in x-ray years ago this month he entered the service of work. Druggists should be extremely careful. Parke, Davis & Co., taking the place of travelIn this case, however, the victim was a dentist ing auditor, and has now been promoted to the who volunteered to become a subject in an ex

auditorship. perimental test, and no blame attaches to the Mr. McLeod is a man of both ability and store at which the drug was bought. Barium popularity. His promotion to this important sulphate is harmless; barium carbonate a dead- position has been greeted with pleasure by all ly poison.

of his numerous friends.



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