EDITORIAL A SIGNIFICANT REPORT. The board of directors of the Chamber of Commerce of the United States appointed a special committee comprising ten members to investigate the soundness of the principles underlying the maintenance of retail prices and the advisability of legislation at the present time looking to that end. The report of the different groups of this committee covers something like nineteen printed pages, and there are seventy-five pages of supplementary matter. Seven members favor legislation permitting price maintenance. However, inasmuch as the report was not unanimous, the Chamber has decided to submit it to a referendum. The result will be awaited with unusual interest. Three members of the committee submitted a minority report, these being Frank H. Armstrong, of Chicago, a wholesale grocer, president of Reid, Murdock & Company; Frederick H. Rike, of Dayton, president of the RikeKumler Department Store and president of the Greater Dayton Association; and Percy S. Straus, of New York, of R. H. Macy & Company, and president of the New York Retail Dry Goods Association. The minority members are "unable to approve of the principle of price maintenance as being in the public interest," and they recommend that no legislation on the subject be enacted at this time. Those signing the majority report were George M. Courts, of Galveston, Texas, formerly president of the National Association of Stationers; James F. Finneran, of Boston, president of the Woodward Drug Company, and a well-known leader in the N. A. R. D.; Henry B. Joy, of Detroit, president of the Packard Motor Company; Paul H. Nystrom, of New York, a retailing expert; F. H. Whitcher, of Boston, president of the American Shoe Tip Company; Edward S. Rogers, of Chicago, a lawyer and a copyright and trademark authority; and Professor Paul T. Cherington, of the Harvard Graduate School of Business Administration, chairman of the committee. The conclusions of the majority of the committee are that the advantages of price maintenance would be partly economic and partly social. Here are the five cardinal points as outlined in the report: 1. A properly regulated system of price maintenance on identified merchandise made and sold under competitive conditions puts the emphasis in competition upon quality and service, while at the same time it provides for the public adequate protection against extortion. 2. Price maintenance under these conditions preserves the social advantage of an adequate incentive to invent and devise new products. 3. Price maintenance under these conditions serves to prevent monopolistic control of production processes by powerful distributers. 4. Price maintenance under these conditions preserves the social advantages of such distribution conveniences as are represented by neighborhood stores and by small, but skilful merchants. In some trades, it is the sole guarantee of the preservation of the accepted system of distribution; for instance, it assures the preservation of the book stores as individual enterprises. If the social value of such factors as these is less than their economic cost they are not worth preserving. But who is ready at this time to encourage their annihilation? It is noteworthy that the agitation in favor of restoring to producers the control of resale prices originated with the small, independent retailers, and that most of the opposition to it comes from the large and powerful concerns. 5. The right of the producer to set resale prices is an accepted principle of business law. It has been restricted recently in this country by close decisions of the Supreme Court, none of which was decided on the basis of general principle alone. The committee believes that in the long run the public interest will be best served by legislation specially permitting this method of doing business in identified articles made and sold under competitive conditions. It would seem that to the average merchant the most significant statement contained in the entire document is that relating to the preservation of small or neighborhood stores. "It (price maintenance) is the sole guarantee of the preservation of the accepted system of distribution; for instance, it assures the preservation of book stores as individual enterprises." In other words, if the conclusions of seven of the men composing the committee of ten are sound, either we must have price maintenance or our present system of retail merchandising will gradually crumble away; and in the crumbling process the small dealer will be ground to atoms. At any rate, this opinion comes from too high a source to be ignored, or even to be lightly considered. A BOOK ON RETAILING. The literature of merchandising is gradually becoming more pretentious. The "Economics of Retailing" is a new book just gotten out by Paul H. Nystrom, Ph.D. The publishers are the Ronald Press Co., 20 Vesey Street, New York, and the price is $2.00 post-paid. Professor Nystrom has written a very interesting book. Much of the same material has appeared in fugitive form in the trade and commercial press during the last ten years, but this is the first attempt to write a systematic treatise in book form. It is really a study of retail distribution in all its phases, and the philosophy of the subject is gone into with some care. The reasons for existing conditions are brought out interestingly, and no merchant could read the book without being both profited and entertained. The chapter on the chain-store system is especially illuminating, and there are others on such practical subjects as "price maintenance," "buying at inside prices," "the expenses of retailing," "location and rent," "the department store," and "how retail prices are fixed.” To us perhaps the most startling chapter is that entitled "the failure rate of retail business." Professor Commons is quoted as saying that "10 per cent of the men who go into business succeed, 50 per cent vegetate, and 40 per cent fail." This statement is verified by an elaborate study of the conditions in Oshkosh, Wisconsin, from 1890 to 1912. Of the Of the 526 merchants in business at different times during this period, only 172 remained at the close of it. Most of the failures in business stop short of bankruptcy, and for this reason the ordinary statistics collected by Dun and Bradstreet fall far short of the actual truth. With failures in the retail business so common, is it cause for any wonder that merchants in all lines are in need of more and more instruction in the conduct of their stores? It is a whole lot easier to fail than to succeed. OUR CAMERA CONTEST PRESENTS AN OPPORTUNITY. We wonder if druggists are taking full advantage of the opportunity to increase business in their camera departments by using our Camera Contest as a sales argument? We are offering 13 prizes for amateur work. The only restriction is that the pictures sub mitted must be taken by a camera sold by a druggist. The contest closes July 1. Why not grasp this opportunity? Why not call up customers to whom cameras have been sold and ask them to bring in specimens of their work? Such a request will touch a Amateur responsive chord, we feel sure. "fiends" will appreciate this little act of courtesy and evidence of interest, and will at least call at the store to talk the matter over. When a customer is undecided as to what camera to buy, or whether to take the one you are trying to sell or not, mention our contest. Bring it out as an extra inducement. Tell the prospect to bring a few good specimens of the work done by the camera back to the store and that you will submit them to us. Pictures must be sent in by druggists. We do not accept them direct from camera cus tomers. You want to get in close touch with your patrons; it is business that you should do so. Here is your chance. Work it to the limit! Look up the announcement printed on advertising page 23 of the February number and familiarize yourself with the conditions. WHERE IS EVERYBODY? It's funny that our series of prize offers this year don't seem to be "pulling" as they have in years gone by. On some of the topics we have received only one or two papers, and there is plenty of opportunity yet to get into the game. Once more then: 1. We want some practical papers on the subject of "How to Meet Big Competition." 2. We want some rattling good articles on the subject of Salesmanship-actual and not theoretical salesmanship. 3. We offer three prizes for descriptions of "Blue Sky I Have Bought." Where is the man who can't write on that theme? 4. "Luck as a Factor in My Business. Career" can you beat that for a subject? We are after three prize papers along this line. 5. We also want some papers on the general subject of "My Funniest Experience." The prize money is waiting for the chaps who can give us something good in this direction. 6. And show cards-quite a number of collections have come in, but there is room for more. Send along some of your best specimens and grab one of the prizes. Let us hear from you! PROFITS AND EARNINGS A FLORIDA STATEMENT. A net profit of 13.2 per cent is unusually good; yet "Florida's" figures lead to that finding. "Florida" has charged a proprietor's salary in the expense account; we are sure that that point, at least, has not been overlooked. He states, too, that freight and drayage have been added to the cost of merchandise. So we have no reason to doubt the showing. "Illinois" draws $1200 a year as a salary; "Florida" finds it possible to pull out twice as much. At the end of the year one has $675 left, while the other shows up with a balance a little better than $3375. In the statement under consideration, the gross profit is 28.6 and the percentage of expense 24.9. Gross profit should be 35 per cent, if expenses are kept where they are—and expenses are about right, it would seem. "Illinois" sells goods enough. Nearly $18,000 in annual sales is an excellent showing. But to merely do the business isn't all there is to it. It's net profit that counts. which we might evade the fact that the figures are wrong, even though we were inclined to do so. The percentage of gross profit (obtained by dividing the gross profit in figures by the net sales for the year) should have been set down at 35.8, not at 30.5. Expense, expressed in percentage, was found to be 23.5. This would leave a net profit of 12.3 per cent, instead of 7 per cent. We thank our correspondent for calling our attention to the mistake; and on the other hand we most sincerely hope that "Chicago" has not in any sense been inconvenienced by the error. ABOUT PEOPLE A PROSPEROUS WISCONSIN DRUGGIST. George L. Baldauf not only conducts one of the largest and best equipped drug stores in Wisconsin, but he is also president of a Milwaukee bank-the Wisconsin State Savings ARTHUR MORTIMER. GEO. L. BALDAUF. bank, 25th Street and North Avenue-and president of the North Avenue Civic Association. "No matter what it is, if it's sold in a drug store we have it, and usually at a price that will mean a distinct saving to you," is the slogan that Mr. Baldauf employs in his newspaper advertising and on his calendar. Three registered pharmacists are in charge of the prescription department. On another page in this issue of the BULLETIN an interior view of the Baldauf Drug Company's store is shown. MRS. ARTHUR MORTIMER. Would I Marry a Druggist?" Well, Mrs. Mortimer evidently would-the same druggist. Being a druggist's wife is no hardship whatever, apparently! We find frequent mention of Mr. Mortimer in the drug journals of his own country. |