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A NEW VICE
The general public is to be admitted, and a Snow, Syracuse; secretary, F. E. Holliday, handsomely executed pictorial scroll of the ex- New York. C. E. Bedwell, chairman; Geo. R. hibitors, called the “honor-roll,” is to be sent Merrell, A. D. Parker, F. C. Groover, and to every druggist within a radius of 400 miles
L. D. Sale comprise the Board of Control. of Chicago. It is hoped that the show will prove so successful that a similar exposition may be held each year hereafter.
One of the new vice-presiPRESIDENT AND A dents of the N. A. R. D. is NEW EDITOR.
W. B. Cheatham, of San The forty-second annual Francisco. Mr. Cheatham was formerly an
convention of the National N. A. R. D. organizer on the Pacific Coast, BALTIMORE.
Wholesale Druggists' Asso- having served in that capacity for five years; ciation convened at Baltimore October 2-6. and for three years he was the Pacific Coast The sessions were held in the roof garden of manager for the A. D. S. He now has retail the Emerson hotel, and Maryland hospitality interests in California's capital, and is also did much to mark the gathering as one of the president and general manager of the Associmost enjoyable that the association has held ated Pharmacists, a corporation doing a manu
facturing business. The organization is of a coöperative nature, and it will be recalled that it secured the services of J. Leyden White a short time ago, Mr. White taking on the title of “director of publicity.” A very creditable little monthly magazine, known as The A. Ph. Spokesman, is put out, Mr. White, of course, being the editor.
The Michigan Board of Pharmacy has decided to grant to applicants who obtain an average of 75 but who fall below 60 in one or more subjects the privilege of making their low marks good at the next examination, or at any examination held within a year. When these subjects are thus taken up separately, however, a marking of 75 in each is required.
President-elect Jas. W. Morrisson. during all the years of its existence. Many Up to the middle of August, according to matters of importance to the trade as a whole
Commerce and Finance, there had been 11,117 were taken up and the discussions proved un- cases of infantile paralysis in the United States usually profitable. In the accounts of the de- since the outbreak of the present epidemic. Of liberations special mention is made of retiring- the 38 States in which the disease has appeared president Charles Gibson's address, and also Arkansas and Oregon rank lowest with three of an address delivered by Dr. James H. Beal, cases each, and New York highest with 7753 who conveyed the greetings of the American Pharmaceutical Association. Chicago was selected as the next convention city, the mat- Frederick W. Mansfield, Democratic canditer of time being left to a standing committee.
date for governor in Massachusetts, was The following officers were elected: President,
formerly a Boston druggist. He gave up Jas. W. Morrisson, Chicago; first vice-presi- pharmacy to study law. dent, Harvey H. Robinson, Baltimore; second vice-president, William Scott, Indianapolis ; third vice-president, I. A. Solomons, Savan- James B. Rayner, one of the founders of nah; fourth vice-president, S. D. Andrews, the firm of Buck & Rayner, Chicago, is dead. Minneapolis; fifth vice-president, Nelson P. He retired from business in 1888.
other turns over his stock twice a year and, EDITORIAL
therefore, has an investment of $3250. In the one case $1300 is tied up, and in the other case
$3250 is tied up. The man with the relatively THREE MISTAKES!
slow turnover uses $1950 more capital than
the other man, but what has he lost that the The merchant who makes 10 per cent net on his sales and turns his stock over five times a year makes 50 per
other man has gained? Simply this—the incent on his invested capital. The man who makes the terest on $1950 that might otherwise have been same percentage on his sales, but who turns his stock
put into outside investments. only twice, makes only 20 per cent.
Wouldn't you The interest on $1950, figured at 6 per cent, rather make $5000 per year than $2000 ?-Book, Stationery, and Novelty News.
is $117. Therefore it follows that if two men
do a business of $10,000 a year, and make 10 A pretty short paragraph to cram three mis
per cent net, the man who turns over his stock takes into, isn't it, but here they are:
five times will make $117 in actual money Mistake No. 1. Stock turnovers are figured
more than will the man who turns over his on costs instead of on the selling volume. And
stock only twice. How absolutely absurd, so "the merchant who makes 10 per cent net on his sales, and turns his stock over five times
then, is the question asked in the paragraph we
are criticizing: "Wouldn't you rather make a year,” really makes better than 50 per cent on his invested capital. He makes nearer 80
$5000 per year than $2000?" per cent on it with the average business.
Let us figure the thing out on the basis of
the investment involved. The man with five Mistake No. 2. “The man who makes the
turnovers has an investment of $1300, and if same percentage on his sales, but who turns his stock only twice,” makes more than 20 per
he makes 10 per cent net on his sales, he realcent. He makes over 30 per cent on his capi
izes a profit of $1000, which amounts to nearly tal if his business represents the average.
80 per cent of his investment. The other man Mistake No. 3. So far we have proved the
has a capital of $3250. Like his friend, he author's case better than he intended to prove
makes $1000 also in the way of net profit, but it himself, but now we must show that his en
in this case it is only a little over 30 per cent tire argument is false. Two merchants with
on his investment. One man makes his capital the same volume of sales, each making 10 per
yield 80 per cent and the other 30. This seems
like a heaven-wide difference, but in actual cent net, one turning over his stock twice a year and the other five times a year, do not
money it means only a little over a hundred make $2000 and $5000 respectively. Merely
dollars. turning over the stock five times instead of
A merchant who makes 10 per cent net on twice isn't going to make anything like a dif
his sales certainly makes that and nothing ference of $3000. It would ordinarily make
more, no matter how often he turns over his a difference of exactly $117—that's all.
stock. It is perfectly childish mathematics to This quotation from the Book, Stationery
assume that if one man turns over his stock and Novelty News is a good specimen of the
twice as frequently he makes twice as much loose thinking that prevails on this subject of
money. The only way this can be done is to stock turnovers. It is so loose, indeed, that it
sell twice as much goods. If, by greatly inwouldn't hold together for a single instant.
creasing your sales, you can sell five times as Let us analyze it briefly.
much goods, you will make five times as much Take our average merchant with sales of money. Or, if, on the other hand, you can sell $10,000 annually. His expense of doing bus- only twice as many goods, you will make only iness is 25 per cent, and his net profit is 10 per
twice as much money. Under these conditions cent. These two items, therefore, total $3500, it would be perfectly proper to ask a merchant: and the cost of goods sold during the year is "Wouldn't you rather make $5000 per year consequently $6500.
than $2000 ?" Now take these two men with different turn- But that isn't what these mathematical jugovers. The man who turns over his stock five glers mean when they talk about increased times a year has an investment of one-fifth of turnovers. They mean keeping the stock low, $6500, which means a capital of $1300. The and buying from hand to mouth, so that you reduce your investment on a given volume of will include compounding and dispensing labsales. The statements that continue to be oratories for the supply of the needed medimade on this subject are almost incredible, and cines. This means State competition for the yet they keep bobbing up time and time again, druggist. Three-fourths of all wage-earners and editors of trade journals repeat them with- and their dependents are involved in this propout stopping to indulge in a little plain analysis. osition. Three-fourths of the druggist's busi
ness in drugs and prescriptions, therefore,
would leave his store and would be deflected to A NEW DANGER THREATENS.
these public dispensaries. Such competition
would be far worse than anything the druggist Within the last few years a movement has
has suffered in the past, and in all conscience originated, and seems gradually to be gaining
the menace of it should be serious enough to headway, that will soon demand the deter
enlist his active and vigorous opposition. mined opposition of druggists in every State in the Union. The N. A. R. D. will be forced
But the druggist would be involved also as to jump into the breach and make use of its
an employer. If any one of his clerks became powerful legislative machinery.
ill, or suffered an accident, the druggist would What is this movement?
be compelled to pay 40 per cent of all the costs.
If the clerk were married, and had a wife and It is a plan to create compulsory health insurance by the enactment of both Federal and
children dependent upon him, the same service
would have to be granted them. Not only State laws, and a society known as the Amer
would two-thirds of the clerk's wages have to ican Association of Labor Legislation has been created for the purpose of pushing the scheme
be paid, but he would be provided with free through. Bills were introduced last year in the
surgical, medical, dental, and hospital service, legislatures of New York, Massachusetts, and
where necessary, and there would also be fuNew Jersey. They failed of passage, but they
neral benefits in case of death. Even maternity will appear and reappear over the country until
benefits would have to be granted in case they success has been met or until the whole propa
became necessary at such a time. Forty per ganda has been given its death knell.
cent of all this expense, we repeat, would have The purpose of this proposed legislation is
to be borne by the druggist as an employer. to provide compulsory insurance for all manual
In the third place the druggist is involved as laborers, no matter what their pay may be,
a taxpayer. In any State where this scheme and for all other employees earning less than
might carry, it has been carefully estimated $100 a month. In all cases of sickness or dis
that the taxes would easily be trebled. Does ability from accidents employees will receive
the druggist want to lose three-fourths of his two-thirds of their wages during absence from
pharmaceutical business on the one hand, and work. They will also be granted free medical
on the other be made to pay three times his service, surgical and nursing attendance, med
normal taxes ? ical supplies, hospital service whenever neces
The whole scheme is a visionary piece of sary, dental work, and the like. Not only socialistic and paternalistic theory of the worst that, but the same service will be given to all
sort. It isn't necessary. There is no general dependents of employees.
demand for it. Even the labor people themWho is to pay for this enormous outlay? selves are against it, but it is being pushed with
The employer will be charged with 40 per ability and vigor, and if the whole propaganda cent of the cost, the employee with 40 per cent,
isn't headed off it is more than likely that we and the State is to make up the remaining 20 shall see such legislation enacted in different
States during the next few years. Where does the druggist come in, and why Organized associations in the drug trade, should he oppose such legislation tooth and both State and national, should join in the opnail ?
position to this absurd scheme, and in the He is involved in three ways. In the first meantime the movement should be watched place, the plan proposes the establishment of with the closest of care and scrutiny. When “operating units” scattered thickly over the the bills make their appearance in various State State for rendering medical, surgical, hospital legislatures this winter, as they surely will, and nursing service. These "operating units” they should be fought with determination, and
our lawmakers should be made to understand all over the world? People who have sicknesses 24,000 that we want no European paternalism of this
miles long generally stay at home. sort in free America.
The truth probably is that the medical profession is still writing its prescriptions in Latin and calling its drugs by Latin names because of inertia. It takes energy to throw off an outworn custom, and the medi
cal profession is just beginning to accumulate the reA SAMPLE!
quired energy in adequate amount. A resolution to A few weeks ago a Chicago physician, Dr.
adopt English has already been offered in the American
Medical Association; its adoption in the near future Bernard Fantus, came out with a plea for the
seems probable. Many eminent physicians concede that use of English in the place of Latin in the the only advantage in retaining Latin is to "keep the writing of prescriptions. This is not the first patient in the dark as to what he is taking," which is not time such a thing has happened, but because of
an advantage, particularly if, as may be suspected, it
just as often keeps the physician in the dark as to the author's standing the paper attracted a
what he is giving. great deal of attention. It is not surprising, therefore, that daily papers all over the coun
All of which causes us to ponder, after we try have commented on the subject, and not in
have ceased smiling—or saying things. If frequently have made the most of the oppor- newspapers, in all earnestness, will print such tunity to take a fling at the prescription-writing stuff as that, to what extent are we justified in profession and at the drug business.
believing anything we see in their columns? We are indebted to J. J. O'Donnell, Pitts
Some of us have the editorial-reading habit. burgh, Pa., for a specimen of the comment re
Perhaps we are being hoodwinked. ferred to, clipped from a Pittsburgh paper, and in spite of the fact that it will take up nearly a column of space, we are going to reproduce
JOIN THE ASSOCIATIONS. the editorial in full. Here it is:
Pharmacy is a profession—and pharmacy is Nothing could be more curious than some of the a business. On the one hand there must be arguments used in defence of the medical profession's learning and its ethics, and on the other hand long-standing custom of writing its prescriptions in
there must be the dollar and all that goes with Latin. This official language of the ancient world still survives in the universities, and has not been wholly
it. Professionalism and commercialism: for banished from religion, but in practical, every-day,
better or for worse they have been brought toworldly affairs it no longer exercises much more influ- gether and made to dwell under the same roof. ence than the “p” in “pneumonia." As the language of Roughly speaking, each segment is represcholars, it was employed one hundred or two hundred
sented by a national association; and that is the years ago by men of high learning among all nations for the writing of their treatises on all kinds of sub
reason that we have the two big bodies, the jects. But that use of it has passed, along with most
A. Ph. A. and the N. A. R. D. others,
Other spheres of human activity may call for Learning in the twentieth century is held to consist only one organization of this kind. Bankers, not of misty philosophical dissertation but of scientific
hardware men, grocers, etc.—these can get research, and an Englishman or American studying the
along with a single central association. But the literature of science will have ten times as much need of German as of Latin. In fact, not even books on
drug trade cannot. medical subjects are written in Latin. The medical Theoretically every druggist in the country profession knows only enough Latin to write its pre- ought to belong to both the national organizascriptions, and hardly enough even for that. Why, tions; in practice a great many do not belong then, does prescription-writing in Latin persist?
to either; and because there is so much disAbout the only answer that a well-known physician is able to suggest in a published article on the subject
crepancy between the theory and the practice is that "a prescription in Latin can be filled anywhere
neither organization has the membership it in the world.” But there's the very point. It can't. ought to have The apothecaries' clerks who do most of the compound- This is all wrong. There isn't a man in the ing are generally as weak on Latin as on the origins
business who hasn't been benefited by both the of the New Testament. They know their own tongues
A. Ph. A. and the N. A. R. D.; and the least -and ragtime—but that is as far as they go, and an honest doctor will admit that ignorant mistaking of
he can do is to lend the moral support of his Latin letters and words by prescription compounders
name and the financial aid that the payment of has hurried hundreds of innocent persons into untimely the really nominal dues would afford. graves. Besides, who wants to have a prescription filled
Join the associations !
A PRICING TABLE.
Here is a table that promises to be of great service to the druggist. It has been devised by E. C. Thulin.
Suppose, for instance, you desire to make a gross profit of 40 per cent on the selling price of a certain article. How shall you determine what this will amount to in dollars and cents? You cannot multiply forty by the cost price of the article, because the percentage of profit isn't figured on the cost. It is figured on the selling volume.
This table solves the problem. It shows you what price you ought to charge to secure a gross profit of any desired amount. If you desire to make a 40-percent profit, based on the selling price, you simply multiply the cost price by 1.667. In the case of an article costing $1.00, you would therefore put a price on it of $1.67.
The table is easily understood. If you desire a gross profit of 30 per cent, multiply the cost by 1.429. If you desire a gross profit of 35 per cent, multiply the cost price by 1.539—etc., etc.