« PreviousContinue »
PROFITS AND EARNINGS
Parke, Davis & Co., Detroit. The first report that appeared charged the thief with having looted his employers of $600,000 worth of narcotics, and credited the government with a very clever piece of detective work. The facts are that about $800 worth of narcotics was stolen, and that about $600 worth of this was recovered. More than that, it was Parke, Davis & Company's own house detective who handled the case, merely calling on the local police department to arrest the man when a search had revealed the goods in his room.
The young man promptly confessed. He proved to be an ex-inmate of the prison at
on at Jefferson City, Missouri, and had been in the employ of Parke, Davis & Company but a short time.
A JEWELRY DEPARTMENT. Druggists who carry jewelry, with a watchmaker in charge, will be interested in this statement. It covers a jewelry department in a Pacific Coast store, the drug business not being taken into consideration at all. la
The total sales are shown to be $3720.85 for the year. The gross profit is $2056.75, and the expenses $1623.60, leaving a net profit of $133.15. 13
Expressed in percentages, the gross profit is 33.2, the expense 43.6, and the net profit 11.6.
In a letter which accompanies the statement the druggist says:
“I hire a watchmaker for $20 a week and he looks after our jewelry business. I charge up
A special counsel attached to the attorneygeneral's office in Iowa has advanced the opinion that under the State Pharmacy law, neither a general merchant nor a wagen peddler can lawfully sell medicines containing either alcohol or poisons. If this interpretation can be made to hold, it would seem that the competition of itinerant venders is pretty well blocked.
* * * The Supreme Court of the United States has upheld the right of individual States to tax coupons, trading stamps, and other similar devices. This opens the way for legislatures all over the country to pass such regulatory measures as may be deemed best for the protection of small retailers.
* * * The initial meeting of what is termed the World's Salesmanship Congress will be held in Detroit, Michigan, July 9 to 13, inclusive. It is stated that master salesmen from all parts of the world will be at the congress, and many noted men will be on the program.
* * * It will be recalled that a decision rendered in the District Court, Buffalo, New York, classed the Eastman Kodak Company as an illegal monopoly. The Eastman Company has appealed to the United States Supreme Court.
* * * J. Leyden White has been retained as Washington correspondent for the N. A. R. D. It will be recalled that Mr. White tendered his resignation some time ago.
$20 a month rent against this departmer.t and apportion the other expenses. Our jewelry business must stand on its own feet.
"You will notice that the percentage of gross profit is high. This is explained by the repair work we get, which amounts to something over $100 a month, and is far more profitable than prescription business. I would not advise any one to take up jewelry as a side-line, though, unless he is sure of a reliable watchmaker and engraver, for otherwise he will have a small elephant on his hands."
This man seems to have found a reliable watchmaker, and seems to be doing as well as he could expect to do. Jewelry, with him, is a profitable side-line.
A CALIFORNIA STATEMENT. We have had to work this statement over a little, and our correspondent may not recognize it at first glance.
In a letter which accompanied the blank, “California" said that he had omitted from his calculations two items—cash discounts amounting to $237.07, and “interest on investments at the local rate of 8 per cent. I wanted to see how you treat these items,” he states.
Well, the first item—the cash discounts—we treat by subtracting the amount ($237.07) from the cost of goods bought during the year. No one can dispute the correctness of such a course: the goods cost just that much less money.
However, there are those who are inclined to take issue with us in the matter of charging interest on the investment. The BULLETIN contends that to do so is an abomination unto the Lord. We contend that interest should not be dragged into the accounting. It does not belong there. This point has been discussed a number of times in the BULLETIN and space will not permit us to go into it here. Let it be enough to say that according to our system of accounting, “California" did the right
the stock should be written off, likewise, and charged in the expense account.
Then, again, all merchandise sold during the year should be entered on its proper place on the blank, whether the goods have been paid for or not. What the store owes is not taken into consideration at all in a statement of this character. We concern ourselves only with this question: has the store been run on business principles during the year? We merely analyze a year's business, as such. The proprietor's or the store's financial condition—that
is another matter entirely. What we are trying to arrive at is (1) has the store charged enough for what it has sold—determined by the gross profit; (2) have expenses been kept down to a safe level; (3) has there been a sufficient margin of net profit?
These facts should not be lost sight of.
In the case under discussion, if we take the figures as they stand, our correspondent has made a gross profit of 12.4 per cent, his expenses have been 27.2, and he has made a net profit of 15.2 per cent.
s12148.46 .. 9730,82
11. Grow profits -
12 Correet empresa 13 Na profits 14 Total income from business -
thing when he omitted this item from his calculations.
We find that our correspondent's business yields a gross profit of 44.4 per cent, that the percentage of expense is 34.1, and that the net profit is 10.3. This is an excellent showing, when it is known that the proprietor drew out a salary of $2700 for the year.
A KANSAS STATEMENT. We fear that this statement presents a few inaccuracies—not visibly, but underneath the record. Our correspondent has supplemented the regular form with a statement made out in his own way, and it is on this that we encounter a number of peculiarities.
For instance, he supplies us with a detailed expense account, and on this we do not find the item “depreciation.” Ten per cent of the inventorial value of the fixtures should be written off each year and charged to expense. Fixtures include the soda fountain. Five per cent of
TUTTON! BEFORE USIN
An Editor's Responsibility.
must be confessed that he was not popular ABOUT PEOPLE
with druggists. He was wont to buy large space in the newspapers and fill it with attacks
on substitution and other evils alleged to be DEATH OF CHARLES H. MCCONNELL.
practiced by many members of the calling.
It was a source of pride with Mr. McConIn many respects Charles H. McConnell, late
nell that he served during the entire Civil War of Chicago, was a remarkable man. First
First in the Twenty-fourth Michigan Regiment. He
in the Twenty-fourth Michiga making a fortune in the show business, then
was never tired of telling about the famous losing it, and afterwards succeeding only in- “Iron Brigade” of which the Twenty-fourth differently in various other activities, he en- Michigan Regiment formed a part. Over six tered the drug business as a rank outsider after
feet tall, erect in carriage, dignified to a degree, he was fifty years old. His capital at that he looked the part, and he was a man of striktime was Nerve. Always plausible and im- ing characteristics in general. He was about pressive to a degree, he got the banks inter
seventy-four years old at the time of his death.
Chas. H. MCCONNELL.
ested and they even stood by him during a period of receivership that resulted when the panic of '93 and '94 struck the country a year after the enterprise was started.
Before long Mr. McConnell pulled out, however, and he ultimately established a business at 122 North State Street, in Chicago, of a very prosperous type. The daily volume of trade grew to exceed a thousand dollars. The entire left side of the salesroom was devoted to the prescription department, from the front window back to the rear, and something like four or five hundred prescriptions were dispensed daily. It was said ten years ago that Mr. McConnell realized a net profit of $30,000 a year—and he built it all up after he was fifty years old!
He was a man of great originality, but it
Druggists' Association since 1897, succeeding his brother, who, in turn, had succeeded his father. Thus a member of the family has been treasurer of the association since it was organized in 1876.
DEATH OF WALTER H. GALE. Walter H. Gale, a prominent figure in the drug world of Chicago, and formerly well known as an officer and leader in the N. A. R. D., died late in March.
what practically amounted to a game of chance EDITORIAL
It is true he won several hundred dollars, but it doesn't appear that his business life was much
affected thereby. This is merely like making LUCK IN BUSINESS.
money in investments or speculations. We are giving space this month to a very Anyway, these various recitals are exceedinteresting series of papers on the subject of ingly interesting, entirely apart from whatever “Luck as a Factor in My Business Career.” philosophy they may suggest. We recommend Three of the four contributions won prizes in them to all our readers. They will furnish a our recent contest.
delightful half-hour. Just how strong a factor good fortune may prove to be in the building of a career is ex
THE DRUG SHORTAGE. ceedingly debatable. In the long run, of course, we get just about what we deserve in
Magazines are beginning to complain, we this vale of tears. As a rule luck won't do us
are told, that the advertising patronage they much good unless we are trained and ready for
have been accustomed to receive from manuthe opportunity which luck presents.
facturers is falling off. And the reason manuAnd yet nearly every man, at one time or
facturers give for not advertising is that they another, has had a piece of good fortune that are not sure of an adequate supply of raw mahas materially aided him in the struggle for
terial. place and success. It has, so to speak, cleared
The war broke out in August, 1914, and the way for Merit and Ability.
very shortly thereafter Germany and Austria, Some of these truths are neatly illustrated in
and later Turkey, were almost entirely elim
and later Turkey, were almost entir our symposium this month. To Mr. Jenkins. inated from the world's commerce. We deat a critical time, fell a nice piece of good pend on these countries for many finished fortune when a wrong turn of the wheel might articles and products, and also for quite a have thrust him back several years, and per
formidable list of raw materials from which haps under the circumstances ruined his we have been in the habit of manufacturing the chances permanently. And yet who shall say products ourselves. that Character, as represented in himself and On the other hand, those countries more or his family, was not the dominating factor ? less loosely banded together and denominated
In Mr. Tupper's case, we apparently have as the allies have been engaged day a luck unalloyed. Here was an occasion where in the manufacture of all sorts of commodities mere chance, entirely foreign to any other con- which are necessary to the carrying on of the sideration, really gave a man an occupation, war. An abnormal demand developed, and and in doing so made it possible for him to into its wasteful maw has been fed millions and attain a comfortable success. And yet, of millions of dollars' worth of raw material. course, if Mr. Tupper hadn't had the brains to And on top of all the rest, our own country capitalize the opportunity, it wouldn't have has quickened to the unusual opportunity, and done him much good.
all over ihe land factories are belching forth Mr. Greenawalt evidently believes himself to a half again as much smoke as they ever be living under a lucky star, and so he seems to belched forth before—and consuming at least be. And yet, again, we see a man getting twice as much raw material. some of the good things of life because he This is what has been going on for more deserves them and because other people trust than a year, and there could be but one result. him. In every one of the several occasions The world's available supply of many kinds of described by him he was selected instead of raw material, inexhaustible though it may have other men because he was liked and respected, seemed in the first place, is running out. We and because people had faith in him. It wasn't, are facing a raw material shortage in many after all, so much a matter of luck as it was of lines. plain desert.
What is true in other fields of commercial Mr. Clark's recital in a sense falls outside activity is much more emphatically true in the the scope of the theme. His story isn't so drug world. Our supplies of drugs and chemmuch a narrative of luck as a factor in business icals covering a wide range are being depleted, success as it is a description of good fortune in and in many cases the prospect of securing
enough to supply prospective demands isn't at
THE CLASS IDEA DANGEROUS. all encouraging
The editor of the BULLETIN was present at This situation is not very alarming, however, a meeting of druggists recently, and the Stewhen viewed broadly. There is nothing on
phens-Ashurst bill was one of the topics up for the shortage list that we can't get along with
discussion. out, in so far as actual and indispensable needs
A great deal was said by the different speakare concerned.
ers on the benefit the druggist would derive But nevertheless we can see the position that
were the bill to become a law. Those who manufacturers are in. The situation is one of
contributed to the discussion seemed almost great perplexity and uncertainty. Manufac
unanimous in the opinion that druggists as a turers surely would not care to exploit products
class should stand solidly back of the measure they couldn't supply for some time to come.
and, still as a class, should pass resolutions, And then there is the matter of price. Taken
send telegrams to congressmen, etc. as a whole, the market is steadily advancing.
Then Charles F. Mann took the floor. He pointed out that Congress was not particularly
interested in the druggist as a class, and that THE DECIDING VOICE.
too much activity in which the class idea was Addressing a meeting of the New England emphasized would do more harm than good. Rexall Clubs, Louis K. Liggett, head of the “Congress is going to take a broad, compreUnited Drug Co. and the Liggett chain of drug hensive view of the situation,” he said, “and stores, stated that competition between the if the bill is passed it will be because it is Liggett and Riker interests had “led to a waste deemed best for the American people in genof money to an amount probably between eral.” $2,000,000 and $3,000,000.”
What Mr. Mann said is doubtless a forecast This is loose language-Mr. Liggett made of what will actually happen, and the lesson is no attempt to be specific or definite. The idea that we shouldn't make our appeals too narhe sought to drive home was that rivalry begot row. Perhaps, as the matter now stands, the economic waste, and that the way to check most effective work that could be put back of such waste was to combine the rival institu- the Stephens-Ashurst bill would be for drugtions.
gists to get their friends—those outside of any There can be no question as to the effective- trade activity—to say a good word for it to ness of this method. But with combination their congressmen. And it may well be that a comes added responsibility. The larger the price-maintenance bill will not find favor at concern the more quasi-public it becomes; and Washington until it has received just this kind the far-distant millennium—there seems to be of support. no escaping it-must be a modification of what our socialistic friends look forward to. On the other hand, the rank and file of re
MORE QUESTIONS WANTED. tailers do not view with favor mergers of this We have run out of questions for the character. They fear the power which the department of Monthly Prize Questions and accumulation of so much capital places in the Answers, and we are writing this editorial to hands of a few men, and Congress and all our invite some new topics. State legislatures are constantly being asked to We pay $1.00 promptly, by return mail, for check either the growth or the progress of such every question that we accept and use. Somecombinations.
times it happens, though not often, that sub“Waste must be eliminated,” say the captains stantially the same question will be contributed of industry and the economists.
by two people, in which event, if the question "Greed must be checked,” says the independ- is accepted, we give payment and credit to the ent, and the reformer joins in the cry.
man whose letter bears the earliest date. Meanwhile the “ultimate consumer" keeps Please come forth with your suggestions, right on consuming; and out of it all, in the and let us see if we can't get some unusually end, must come that condition which is the live topics for discussion in this popular departmost advantageous to his interests. He is in ment of the BULLETIN. the majority.
One dollar for every accepted question.