CHAPTER XVII

Exercise 256

Topics for Investigation and Discussion

Principles involved in manufacture:

1. The location of a factory.

a.Where necessary raw materials can be obtained easily and cheaply.b.Where land is not expensive.c.Where the coal or water supply will make power inexpensive.d.Where transportation facilities are good.

2. The advantages of using machinery in manufacture.

a.Relative amount of work turned out.b.Relative cost of work turned out.c.Relative cleanliness of work turned out.d.Relative uniformity of work turned out.

3. The number of working hours.

Some factories have made the experiment of reducing the number of working hours from ten to eight without reducing the wages of the workers. They have found that the quantity of work turned out is increased and the quality improved. Can you explain why?

4. The advantages of the profit-sharing plan, both for employer and for employee.

This is a plan by which a certain per cent of the profits of the business is divided annually among the employees. (See a very interesting article inSystemfor March, 1911, or readProfit-sharing between Employer and Employeeby N. P. Gilman.)

5. Specialized labor.

There was a time when a man made all the parts of a pair of shoes. Why in modern factories does he make only one part? Which system tends to make shoes of uniform workmanship? Is uniformity a good quality in manufacture? This principle applies to any kind of factory.

6. Special products.

Suppose that you manufactured a large number of styles of millinery, or novelty, footwear. Would you expect your profits on these to be larger or smaller than on your staple styles? Give reasons and illustrations.

7. Why is there a struggle between labor and capital?

8. What is the cause of strikes?

9. Are strikes a good thing for manufacture?

10. A visit to a shoe factory (or any other factory).

Exercise 257

Books that will Suggest Topics for Talks

If you have access to a public library, you can probably obtain some of the following books. They are all simple and interesting, and any of them will suggest several topics for talks.

Allen, N. B., Industrial Studies.Baker, R. S., Boys' Books of Inventions.Barnard, Charles, Tools and Machines.Carpenter, F. G., How the World is Fed; How the World is Clothed; How the World is Housed; Geographical Readers.Chamberlain, J. F., How We are Fed; How We are Clothed.Chase, A.andClow, E., Stories of Industries (two volumes).Cochrane, C. H., The Wonders of Modern Mechanism.Cochrane, Robert, Romance of Industry and Invention.Doubleday, Russell, Stories of Invention.Forman, S. E., Useful Inventions.Gibson, C. R., The Romance of Modern Manufacture.Lane, M. A. L., Industries of To-day.Little Chronicle Co., Industries of a Great City.Mowry, W. A.andMowry, A. M., Inventions and Inventors.Parton, J., Captains of Industry (two series).Rocheleau, W. F., Products of the Soil; Minerals; Manufactures.Towle, G. M., Heroes and Martyrs of Invention.Williams, A., How it is Made.

Allen, N. B., Industrial Studies.

Baker, R. S., Boys' Books of Inventions.

Barnard, Charles, Tools and Machines.

Carpenter, F. G., How the World is Fed; How the World is Clothed; How the World is Housed; Geographical Readers.

Chamberlain, J. F., How We are Fed; How We are Clothed.

Chase, A.andClow, E., Stories of Industries (two volumes).

Cochrane, C. H., The Wonders of Modern Mechanism.

Cochrane, Robert, Romance of Industry and Invention.

Doubleday, Russell, Stories of Invention.

Forman, S. E., Useful Inventions.

Gibson, C. R., The Romance of Modern Manufacture.

Lane, M. A. L., Industries of To-day.

Little Chronicle Co., Industries of a Great City.

Mowry, W. A.andMowry, A. M., Inventions and Inventors.

Parton, J., Captains of Industry (two series).

Rocheleau, W. F., Products of the Soil; Minerals; Manufactures.

Towle, G. M., Heroes and Martyrs of Invention.

Williams, A., How it is Made.

Exercise 258

Study the punctuation of the following; then write from dictation:

It is stated that practical experience with gas mantles made of artificial silk—that is, silk made from wood pulp—has proved them to be far superior to those made of cotton, especially where the mantles are exposed to excessive vibration. Several German towns are said to be obtaining exceptionally good results from these new mantles used in conjunction with pressure gas, and it is asserted that the mantles are in good condition after being used for seven or eight weeks. Artificial silk, according to reports, has also been used experimentally by several manufacturersof incandescent gas mantles in the United Kingdom. The reports are all very encouraging, except that there seems to be one difficulty that is purely mechanical—the knitting of the artificial silk. The knots and other imperfections in the yarn cause a considerable amount of waste. However, the knitting-machine makers are experimenting to overcome it.—Daily Consular and Trade Report.

As the production of wool in this country, although approximating 320,000,000 pounds a year, does not begin to meet the demands for the raw material, there is a yearly importation of from 156,000,000 to over 300,000,000 pounds. When each new census reveals the fact that there are fewer sheep of shearing age in the country than there were ten years before, the question of wool production becomes one of still greater importance. A solution may be found in a Peruvian product. A variety of cotton grows in Peru whose long, rough, crinkly fiber mixes so readily with wool that manufacturers use it in connection with wool in manufacturing "all wool" goods. It grows on a small tree that yields two or three crops a year for seven or eight years. The area, however, in which it is being successfully cultivated in Peru is so limited that the annual output is only about 16,000,000 pounds, of which the United States takes approximately 5,500,000 pounds. As the region in which it thrives is practically rainless, perhaps a way may be found to persuade the rough Peruvian to make a home for itself in the hot and arid regions of our Southwest. It would be a triumph of agriculture, certainly, to raise vegetable wool in regions not fitted for real sheep.—The Wall Street Journal.

The Casting of Metals

As is well known, some metals are unsuitable for casting, while others, like iron, can readily be cast into any desired shape. The property of casting well, it is said, depends upon whether the metal contracts or expands in solidifying from the liquid form. Iron, like water, expands in solidifying, and hence the solid metal may be seen floating in the liquid iron about it. The expansion causes it to fill the die into which it is poured, and so it can be cast easily. Gold and silver contract in cooling, and are, therefore, not suitable for casting.—Harper's Weekly.

DISTRIBUTION

Correctbuying and the most efficient methods of manufacture play a large part in the successful carrying on of a business, but the most important consideration is the successful marketing or distributing of the product after it has been manufactured or bought. Very few products are so superior in quality that they sell themselves purely on merit. Competition in business to-day is so keen that, in order to find a market for his product, a merchant must create a demand for it. Thus at its very foundation, distribution is merely a process of creating a demand and then filling that demand. For instance, the retail merchant is concerned with bringing the customers to his store rather than to his competitor's across the street. The wholesale merchant is concerned with having the retailers handle his goods rather than those of another firm. The mail order merchant is concerned with getting the farmer's business before some other dealer gets it. The salesman is concerned with writing the order before a rival from another house writes it.

In the first place, the merchant must handle those things that his customers consider necessary or desirable. Overcoats cannot be sold in August, ashsifters on the equator, nor electric fans in Iceland. Different peoples, different times, and different conditions create different demands, and it is the merchant's business to study those demands and to fill them. In the second place, he must leave no stone unturned in endeavoring to make his product more desirable than that of his competitors. This may mean extensive advertising campaigns, expensive displays, outlay for costlycatalogues and booklets, the expenditure of money for inducements to bring customers, or the hiring of expert salesmen. In fact, thousands of plans are carried out every year in this endeavor to increase trade.

The getting of new and additional business, however, is only one of the important considerations that the merchant must always have in mind. He must also keep what business he already has by maintaining the standard of his goods and by giving his customers satisfactory service. One of the first essentials in this question of service is promptness and exactness of delivery. In this the merchant must depend very largely on the transportation companies, and therefore a brief study of these facilities will be especially in place at this point.

Transportation

Transportation is an essential item in the problem of distribution. If you wished to drink a cup of coffee and found that none could be had except in Brazil, you would begin to realize how much the steamship company and the railroad company have done in transporting and hauling it where you might buy it. The same is true of our oranges from California and Florida, our apples from Washington and Oregon, and our grain from the Middle States. In fact, in the case of many products the most important item is not growing them, but bringing them to market, since the transportation charges are often much greater than the actual cost of producing. Thousands of barrels of apples rot on the ground every year because their quality does not warrant the high transportation charges, the lack of transportation rendering them useless. In a smaller measure, the delivery wagons in our cities and towns are essential to us because they save us the trouble of carrying our purchases about. Thus, the element of transportation enters into our lives every day, saving us inconvenience, bringing to us necessitiesthat we demand and luxuries that we like, and, at the same time, increasing the price of commodities.

Common carriers, as transportation companies are called, are of two general classes:

1. Those operating on water—the steamship companies.2. Those operating on land—the railroad companies.

The Steamship Company

Steamship companies operate three general kinds of lines: (1) lines consisting of the largest and fastest steamers which carry only passengers, mail, and valuable parcels; (2) lines using slower steamers which carry both passengers and freight; and (3) lines employing vessels—steamers, sailing vessels, and barges—which carry only freight. The cost of hauling cargoes by water is in every case less per mile than that of carrying the same quantity of goods on land. It costs, for example, over four times as much to carry a bushel of wheat from Chicago to New York by rail as it does to carry it across the Atlantic. It is for this very reason that the traffic on our navigable rivers, the Ohio and the Mississippi, and on the Great Lakes is so heavy. Whenever a cargo can be shipped as well by water as by rail and there is no hurry for delivery, it is shipped by water. However, because so much of our freight must be rushed from place to place, the railroads get the bulk of the inland traffic.

The Railroad Company

The services of the railroad company embrace the hauling of freight, the carrying of passengers, and the transporting of express and of mail. The hauling of freight is the most important item in the railroad business, about three-quarters of the total income being derived from this source. Each year over one billion tons of freight are turned over by shippers to the railroads, who use almost two and one-halfmillion freight cars to carry it. About one-half of this tonnage is minerals, mainly ore and coal; about one-seventh consists of manufactured articles; and one-twelfth of agricultural products. Commodities are grouped into from ten to fourteen classes, on each one of which the freight rate is different from that of the others. By freight rate is meant the cost of shipping a certain unit, usually 100 pounds or a ton, from one place to another; it is dependent on the distance. There are certain bulky commodities like coal, livestock, lumber, grain, and cement, which are almost always handled in carload lots. They are not included in the freight classification, but have a special ex-class freight rate. Freight rates depend also on whether the goods are shipped by slow orlocalfreight or by fast orthroughfreight.

There are a hundred different kinds of papers used in carrying on the railroad freight business. Only four of the most important will be considered here. When a shipper turns over his goods to the railroad company at its freight depot, he gets from the agent areceipt for freight, which is merely a receipt for the goods he has turned over. In the ordinary course of business these receipts are exchanged at the company's office for abill of ladingin triplicate. The original and one copy are given to the shipper. The second copy is kept by the railroad. This bill of lading may be of two kinds,straightororder. If a straight bill of lading is given, the original is sent to the person to whom the goods are shipped, who is called theconsignee, who on the presentation of the bill of lading is entitled to the goods after paying the charges. An order bill of lading is much like a check, in that it can be assigned to another person. Like the straight bill it states the name of the consignee or the person for whom the goods are intended and his address, but the consignee cannot get possession of the goods until he has paid for them. To collect payment, the shipper attaches to the order bill of lading a draft forthe amount of the goods and the freight, and through his bank and the bank of the consignee the amount is collected. The consignee then gets possession of the order bill of lading, which entitles him to possession of the goods. This is more fully explained onpage 344. The railroad's most important paper is theway bill, which shows the conductor or the agent of the company just what articles are included in the shipment, so that it can be checked when unloaded. When the goods arrive at their destination, the consignee is notified and is sent afreight billshowing the freight charges. When he presents his bill of lading and pays the charges, thefreight billis receipted and the goods are his.

In quoting prices on goods, manufacturers and distributors usually designate whether they will pay the freight or whether it is to be paid by the consignee. In the latter case the price is quoted f. o. b. at the place from which the goods are shipped, which means freight on board at that point. That is to say, if a distributor located at Detroit quotes his automobiles f. o. b. Detroit, he means that he will see that the goods get into the railroad company's hands at Detroit, but that the consignee pays the freight from Detroit to the destination. The latter is the common practice in shipping.

In the following exercises we shall treat the subject of distribution under four heads:

I.The Retail Merchant.II.The Wholesale Merchant.III.The Mail Order Merchant.IV.The Salesman.

Exercise 259

Oral

You are opening a grocery store. Remember that your object is to sell the largest possible amount of goods. Develop each of the following suggestions:

1. What kind of location would you desire?2. How would you have the front of your store painted? Would you try to make it stand out from the rest?3. Do you think it would pay you to have the interior newly and brightly redecorated? To put in the best and brightest lights?4. What quality of stock would you select? The same for all neighborhoods? Give your reasons. Would advertised brands bring you more trade?5. Do you think window display would pay? Would you recommend freak or ordinary displays? Price-marked or non-price-marked? Give your reasons.6. Does the delivery wagon pay? Would it be advisable to buy a new wagon and a good horse? What other considerations would enter?7. Would you sometimes cut the price of some necessity to draw people? Give reasons for your answer.8. Is it a good thing to have a general cut-price-sale to bring customers to your store? Even if you lose money by it?9. Would you give credit? Would the class of people you served come into consideration?10. Is the use of trading stamps and premiums good policy?11. Why do you often find a meat market in connection with a grocery?12. There are two kinds of retail meat markets: (1) the one that sells goods which can be retailed at a low price, and (2) the one that sells superior goods at a higher price. Which policy would you follow and why?13. Could a retailer combine the two spoken of in (12)? Consider cost, space, satisfaction of the customer.14. Would you advertise by means of handbills? By circular letters?15. What would you do if another grocery opened across the street from yours?

1. What kind of location would you desire?

2. How would you have the front of your store painted? Would you try to make it stand out from the rest?

3. Do you think it would pay you to have the interior newly and brightly redecorated? To put in the best and brightest lights?

4. What quality of stock would you select? The same for all neighborhoods? Give your reasons. Would advertised brands bring you more trade?

5. Do you think window display would pay? Would you recommend freak or ordinary displays? Price-marked or non-price-marked? Give your reasons.

6. Does the delivery wagon pay? Would it be advisable to buy a new wagon and a good horse? What other considerations would enter?

7. Would you sometimes cut the price of some necessity to draw people? Give reasons for your answer.

8. Is it a good thing to have a general cut-price-sale to bring customers to your store? Even if you lose money by it?

9. Would you give credit? Would the class of people you served come into consideration?

10. Is the use of trading stamps and premiums good policy?

11. Why do you often find a meat market in connection with a grocery?

12. There are two kinds of retail meat markets: (1) the one that sells goods which can be retailed at a low price, and (2) the one that sells superior goods at a higher price. Which policy would you follow and why?

13. Could a retailer combine the two spoken of in (12)? Consider cost, space, satisfaction of the customer.

14. Would you advertise by means of handbills? By circular letters?

15. What would you do if another grocery opened across the street from yours?

Exercise 260

Written

1. You have bought Burton & Sanders' grocery at Fort Wayne, Indiana. Send out a circular letter advertising the new White Front Grocery and telling what the policy of the new management will be. Explain that the opening sale will begin next Mondayand that a special feature of the sale will, be twenty pounds of granulated sugar for eighty cents with a two dollar order.2. At the same time have an article appear in a local newspaper, telling that Burton & Sanders have sold their store to you and that you are making extensive improvements, especially in sanitary means of handling provisions. In addition, let the article give an account of your business career in another town. Would such an article be of value to you? Write it.3. Write to Peabody, Harper & Co., Rush Street Bridge, Chicago, Ill., saying that you would like to open an account with them. Give as references a bank in your town and one in Logansport, where you used to live. Ask Peabody, Harper & Co. what terms they can offer you.4. You have decided to advertise in a local paper. Write to the advertising manager, asking him for yearly rates for a half-column every evening and a quarter-page every Friday.5. Find out what are the advertising rates of a paper in your town and answer (4).6. Reproduce a letter that a woman living in town sends, ordering two dollars' worth of groceries and requesting that you send, in addition, the twenty pounds of sugar you advertise in (1). She encloses a check for $2.80.7. You are in receipt of a letter from Peabody, Harper & Co., answering your inquiry in (3) and offering you sixty days' credit and 2% discount for payment within ten days. Write the letter.8. Send an order to Peabody, Harper & Co. for $200 worth of groceries. Among the items let there be 6 cases of canned tomatoes, first quality, at $1.75 a case. Ask them to send the goods by the Pennsylvania R. R.9. Your business is increasing and you need another clerk, (a) Write an advertisement for one.(b) Apply for the position.10. Write a short circular advertising an inexpensive novelty that a grocer might sell. These circulars are to be wrapped with purchases.11. Peabody, Harper & Co. write, confirming your order in (8) and enclosing a straight bill of lading.12. When the goods arrive, you find no tomatoes among them. Write a complaint to the wholesale house.13. Peabody, Harper & Co. reply to your letter in (12), apologizing for the mistake, explaining how it occurred (supply an explanation), and telling you that they have sent one case by express at their expense. The rest will follow by freight.14. The tomatoes sent by freight do not arrive. Write to the grocery company, asking the latter to send out a "tracer"; that is, to request the railroad company to trace the goods on its lines.15. The grocery company telephones the railroad company, requesting the latter to trace the goods and to report. The grocery company also writes a letter confirming its request. Write the letter.16. (a) The railroad company reports that by mistake the goods were carried through to Lima, but that they are being returned to Fort Wayne. (b) The grocery company informs you of the developments and hopes that the delay has caused you no great inconvenience. Write both letters.

2. At the same time have an article appear in a local newspaper, telling that Burton & Sanders have sold their store to you and that you are making extensive improvements, especially in sanitary means of handling provisions. In addition, let the article give an account of your business career in another town. Would such an article be of value to you? Write it.

3. Write to Peabody, Harper & Co., Rush Street Bridge, Chicago, Ill., saying that you would like to open an account with them. Give as references a bank in your town and one in Logansport, where you used to live. Ask Peabody, Harper & Co. what terms they can offer you.

4. You have decided to advertise in a local paper. Write to the advertising manager, asking him for yearly rates for a half-column every evening and a quarter-page every Friday.

5. Find out what are the advertising rates of a paper in your town and answer (4).

6. Reproduce a letter that a woman living in town sends, ordering two dollars' worth of groceries and requesting that you send, in addition, the twenty pounds of sugar you advertise in (1). She encloses a check for $2.80.

7. You are in receipt of a letter from Peabody, Harper & Co., answering your inquiry in (3) and offering you sixty days' credit and 2% discount for payment within ten days. Write the letter.

8. Send an order to Peabody, Harper & Co. for $200 worth of groceries. Among the items let there be 6 cases of canned tomatoes, first quality, at $1.75 a case. Ask them to send the goods by the Pennsylvania R. R.

9. Your business is increasing and you need another clerk, (a) Write an advertisement for one.(b) Apply for the position.

10. Write a short circular advertising an inexpensive novelty that a grocer might sell. These circulars are to be wrapped with purchases.

11. Peabody, Harper & Co. write, confirming your order in (8) and enclosing a straight bill of lading.

12. When the goods arrive, you find no tomatoes among them. Write a complaint to the wholesale house.

13. Peabody, Harper & Co. reply to your letter in (12), apologizing for the mistake, explaining how it occurred (supply an explanation), and telling you that they have sent one case by express at their expense. The rest will follow by freight.

14. The tomatoes sent by freight do not arrive. Write to the grocery company, asking the latter to send out a "tracer"; that is, to request the railroad company to trace the goods on its lines.

15. The grocery company telephones the railroad company, requesting the latter to trace the goods and to report. The grocery company also writes a letter confirming its request. Write the letter.

16. (a) The railroad company reports that by mistake the goods were carried through to Lima, but that they are being returned to Fort Wayne. (b) The grocery company informs you of the developments and hopes that the delay has caused you no great inconvenience. Write both letters.

Exercise 261

1. You wish to get a partner to open a meat market in connection with your grocery. Write to a friend in Lafayette, Ind., who you think will be interested, proposing the plan. Tell him of the opportunities, as you see them, of business in Fort Wayne and the surrounding country. Tell him that with $4,000 additional capital you and he could set up a much larger establishment, invest in a motor wagon, and thus secure the trade of the outlying districts.2. Your friend replies that the proposal appeals strongly to him, but that he has only $2,000 in cash. However, he holds a mortgage for $2,000 on —— (state the location of the house) in Lafayette, and, if he can sell the mortgage, he will be glad to avail himself of the offer.3. After the partnership is formed, your partner writes to Orr & Locket, 14 W. Randolph St., Chicago, Ill., ordering the following to be shipped by Pennsylvania R.R.: 1 Refrigerator No. 361; 2 Meat Blocks No. 3; 1 Scale No. M. 30;1/6doz. Saws No. 33 (16 in.);1/6doz. Saws No. 33 (22 in.);1/4doz. Knives No. 955;1/4doz. Knives No. 490;1/6doz. Steels No. 82;1/6doz. Cleavers No. 09;1/4doz. Block Scrapers. He explains that he is the same man who formerly had a meat market in Lafayette.4. Orr & Locket acknowledge the receipt of the order, enclose the invoice, and offer him 5% discount for payment within 30 days. Write the letter.5. A Detroit manufacturer sends you f.o.b. prices on his motor wagons. Investigate the prices and write the letter.6. Order one of them. (Remember the f.o.b. item.)7. He writes confirming your order, saying that the car is now in the shipper's hands and that his bank has sent the order bill of lading with draft attached to the First National Bank of your city. Write the letter. (Seepage 344.)8. At the same time the shipper's bank sends a letter to the First National Bank of your city enclosing the order bill of lading with draft drawn on you for collection. A copy of this letter is also mailed to you. Write it.9. You telephone your bank to draw on your account for the amount of the draft and to send you the bill of lading. You confirm this understanding by a letter. Write it.10. Your bank writes, confirming the telephone conversation and enclosing the bill of lading and a receipt for the correct amount. You present your bill of lading, pay the freight charges, and get your motor wagon. Write the letter the bank sends.11. The automobile manufacturer has meanwhile received through his bank a credit for the amount you paid for the car and writes acknowledging its receipt. Write the letter.

2. Your friend replies that the proposal appeals strongly to him, but that he has only $2,000 in cash. However, he holds a mortgage for $2,000 on —— (state the location of the house) in Lafayette, and, if he can sell the mortgage, he will be glad to avail himself of the offer.

3. After the partnership is formed, your partner writes to Orr & Locket, 14 W. Randolph St., Chicago, Ill., ordering the following to be shipped by Pennsylvania R.R.: 1 Refrigerator No. 361; 2 Meat Blocks No. 3; 1 Scale No. M. 30;1/6doz. Saws No. 33 (16 in.);1/6doz. Saws No. 33 (22 in.);1/4doz. Knives No. 955;1/4doz. Knives No. 490;1/6doz. Steels No. 82;1/6doz. Cleavers No. 09;1/4doz. Block Scrapers. He explains that he is the same man who formerly had a meat market in Lafayette.

4. Orr & Locket acknowledge the receipt of the order, enclose the invoice, and offer him 5% discount for payment within 30 days. Write the letter.

5. A Detroit manufacturer sends you f.o.b. prices on his motor wagons. Investigate the prices and write the letter.

6. Order one of them. (Remember the f.o.b. item.)

7. He writes confirming your order, saying that the car is now in the shipper's hands and that his bank has sent the order bill of lading with draft attached to the First National Bank of your city. Write the letter. (Seepage 344.)

8. At the same time the shipper's bank sends a letter to the First National Bank of your city enclosing the order bill of lading with draft drawn on you for collection. A copy of this letter is also mailed to you. Write it.

9. You telephone your bank to draw on your account for the amount of the draft and to send you the bill of lading. You confirm this understanding by a letter. Write it.

10. Your bank writes, confirming the telephone conversation and enclosing the bill of lading and a receipt for the correct amount. You present your bill of lading, pay the freight charges, and get your motor wagon. Write the letter the bank sends.

11. The automobile manufacturer has meanwhile received through his bank a credit for the amount you paid for the car and writes acknowledging its receipt. Write the letter.

Exercise 262

Choose four or six members of the class, one-half of whom are to argue in favor of the policy indicated in the plan outlined below and one-half of whom are to argue against it.

A certain grocer opened a store with the determination of doing a strictly cash business, and of making no deliveries unless the purchaser paid for the delivery. This was his plan as suggested bySystem:

1. To those who would carry their own purchases he sold everything for cash much lower than any other grocer in town sold it.2. If the customer bought very bulky goods, or if he did not wish to be his own delivery man, the grocer charged him for delivery a certain percentage of the total of his cash purchases. Yet the customer bought more cheaply than he could buy in any other grocery in town.3. Those who wished to pay once a month instead of at every visit he advised to deposit a certain sum of money with him as banker and to buy against that, paying cash prices and receiving 3% interest on the amount left on deposit.

1. To those who would carry their own purchases he sold everything for cash much lower than any other grocer in town sold it.

2. If the customer bought very bulky goods, or if he did not wish to be his own delivery man, the grocer charged him for delivery a certain percentage of the total of his cash purchases. Yet the customer bought more cheaply than he could buy in any other grocery in town.

3. Those who wished to pay once a month instead of at every visit he advised to deposit a certain sum of money with him as banker and to buy against that, paying cash prices and receiving 3% interest on the amount left on deposit.

Exercise 263Oral

Each of the following should be developed into a paragraph:

1. You are a manufacturer and wholesale distributor with a factory on the outskirts of a town; would you have a warehouse in the center of the town? Give reasons for your answer.2. What would be the advantage of having your warehouse near the railroad freight depots? Near the docks?3. What would be the advantage of being located in a large city with many railroads and with water transportation facilities—Chicago, for example?4. Speed gets orders. With this in view, what would you recommend with respect to the equipment for handling? What would you suggest about the number of people through whose hands the order would have to go before being shipped?5. If you were looking for big trade in a big city, what kind of stock would you carry? Musical instruments? Clothing?6. Would it be a good plan to make a specialty of certain brands for leaders and to quote a special price on them?7. If you were just starting a wholesale hardware or grocery business, state which you think would be the better policy: (1) to concentrate on one kind of goods in one territory and to take on other kinds and territories later, or (2) to work all kinds of goods as widely as possible from the very beginning. Explain fully.8. Would you bear part of the expense of retailers' advertising, especially of window displays, provided they handled your goods?9. Would it be good business for the salesmen of the firm to suggest selling methods to retailers and to plan window displays for them? Give your reasons.10. Do you think it would increase sales to offer a money prize to the retailer selling the largest amount of a certain kind of your goods, the sale of which you wished materially to increase?11. Tell which you think would be the better policy: (1) to undersell your competitors for a time and then, when you had the trade, to raise your prices, or (2) to set one price and maintain it from the beginning. Give your reasons.12. If you were getting out a new brand of carpenters' tools, where would you advertise? Would you conduct an extensive national campaign?13. If you were bringing out a new soap or washing powder, where would you advertise? Would you conduct an extensive national advertising campaign? What would your answer be if you were introducing a new brand of crackers?14. Would bringing out novelties from time to time help the sale of your staple articles? Explain.15. Do you think it would pay to send circulars to the housewives of a certain locality to get the local grocers' trade? After you had the local grocers' trade?

1. You are a manufacturer and wholesale distributor with a factory on the outskirts of a town; would you have a warehouse in the center of the town? Give reasons for your answer.

2. What would be the advantage of having your warehouse near the railroad freight depots? Near the docks?

3. What would be the advantage of being located in a large city with many railroads and with water transportation facilities—Chicago, for example?

4. Speed gets orders. With this in view, what would you recommend with respect to the equipment for handling? What would you suggest about the number of people through whose hands the order would have to go before being shipped?

5. If you were looking for big trade in a big city, what kind of stock would you carry? Musical instruments? Clothing?

6. Would it be a good plan to make a specialty of certain brands for leaders and to quote a special price on them?

7. If you were just starting a wholesale hardware or grocery business, state which you think would be the better policy: (1) to concentrate on one kind of goods in one territory and to take on other kinds and territories later, or (2) to work all kinds of goods as widely as possible from the very beginning. Explain fully.

8. Would you bear part of the expense of retailers' advertising, especially of window displays, provided they handled your goods?

9. Would it be good business for the salesmen of the firm to suggest selling methods to retailers and to plan window displays for them? Give your reasons.

10. Do you think it would increase sales to offer a money prize to the retailer selling the largest amount of a certain kind of your goods, the sale of which you wished materially to increase?

11. Tell which you think would be the better policy: (1) to undersell your competitors for a time and then, when you had the trade, to raise your prices, or (2) to set one price and maintain it from the beginning. Give your reasons.

12. If you were getting out a new brand of carpenters' tools, where would you advertise? Would you conduct an extensive national campaign?

13. If you were bringing out a new soap or washing powder, where would you advertise? Would you conduct an extensive national advertising campaign? What would your answer be if you were introducing a new brand of crackers?

14. Would bringing out novelties from time to time help the sale of your staple articles? Explain.

15. Do you think it would pay to send circulars to the housewives of a certain locality to get the local grocers' trade? After you had the local grocers' trade?

Exercise 264Written

1. You are Thos. H. Peabody of Peabody, Harper & Co.'s wholesale grocery. Prepare a circular letter, announcing your removal to a new building. The letter will be printed in imitation of typewriting and the introduction filled in later on the typewriter. Remember you are seeking patronage. Address one letter to Walter T. Barth, 350 E. Water St., Milwaukee, Wis.2. Write an advertisement to appear in the January number ofThe Grocer and Country Merchant, a grocers' trade journal. It will announce your change of location.3. You receive an order from a retailer in which he asks for a certain brand of coffee that you do not carry. Write a letter telling him you do not handle that brand and offering him another. Make the letter as courteous as possible.4. Write an advertisement for (1) a bookkeeper; (2) a stenographer.5. Answer (1) or (2) above.6. Write an advertisement for a traveling salesman.7. Answer (6) telling why you think you could sell groceries although you have had no experience.8. Write a circular letter to send to the trade setting forth the merits of a new brand of canned fruit. Say that you are offering the brand at a very attractive price in the expectation that retailers will make it a leader. Write to Mr. Barth (1).9. You have made a contract with the manufacturers of the canned fruit mentioned in (8), by which you secure the exclusivesale but take the responsibility of advertising. Write to an advertising agency, saying that you are considering a three months' advertising campaign. Explain that you do not wish the expense to exceed five thousand dollars.10. The advertising agency replies that, as five thousand dollars is a comparatively small sum for a campaign, it would suggest that the advertising be confined to one class: street car, billboard, newspaper, or magazine. Write the letter.11. Notify the agency of your choice, giving your reasons.12. Write a series of three letters to send to housewives, advertising the canned fruit, with the purpose of having them ask for this brand at their grocers': (1) Telling the name of the canned fruit, its excellence, its price, and where it may be bought; (2) Asking if the housewife has as yet bought any, and if she has not, telling her she can get a sample at her grocer's on presentation of this letter; (3) Asking how she liked the fruit and quoting a letter of recommendation received from Mrs. A., who lives in the neighborhood. Urge her to buy, but not too abruptly. A letter to a woman should be fairly long. (Seepage 265.)

2. Write an advertisement to appear in the January number ofThe Grocer and Country Merchant, a grocers' trade journal. It will announce your change of location.

3. You receive an order from a retailer in which he asks for a certain brand of coffee that you do not carry. Write a letter telling him you do not handle that brand and offering him another. Make the letter as courteous as possible.

4. Write an advertisement for (1) a bookkeeper; (2) a stenographer.

5. Answer (1) or (2) above.

6. Write an advertisement for a traveling salesman.

7. Answer (6) telling why you think you could sell groceries although you have had no experience.

8. Write a circular letter to send to the trade setting forth the merits of a new brand of canned fruit. Say that you are offering the brand at a very attractive price in the expectation that retailers will make it a leader. Write to Mr. Barth (1).

9. You have made a contract with the manufacturers of the canned fruit mentioned in (8), by which you secure the exclusivesale but take the responsibility of advertising. Write to an advertising agency, saying that you are considering a three months' advertising campaign. Explain that you do not wish the expense to exceed five thousand dollars.

10. The advertising agency replies that, as five thousand dollars is a comparatively small sum for a campaign, it would suggest that the advertising be confined to one class: street car, billboard, newspaper, or magazine. Write the letter.

11. Notify the agency of your choice, giving your reasons.

12. Write a series of three letters to send to housewives, advertising the canned fruit, with the purpose of having them ask for this brand at their grocers': (1) Telling the name of the canned fruit, its excellence, its price, and where it may be bought; (2) Asking if the housewife has as yet bought any, and if she has not, telling her she can get a sample at her grocer's on presentation of this letter; (3) Asking how she liked the fruit and quoting a letter of recommendation received from Mrs. A., who lives in the neighborhood. Urge her to buy, but not too abruptly. A letter to a woman should be fairly long. (Seepage 265.)

Exercise 265

1. For two months you have been without a credit man. You wish to be very careful in your choice because of the importance of the position. J. B. Wright of 439 Russell Ave., Indianapolis, is a personal friend of yours. He has heard that you need a credit man and he recommends Joseph Haddon, who worked for him three years in that capacity until a year ago when he went to Colorado because of the ill-health of his wife. Meanwhile, Mr. Wright's son has been acting as his credit man. Mrs. Haddon has now recovered, and her husband is anxious to get another position. Reproduce Mr. Wright's letter.2. Write the letter Mr. Wright sends Mr. Haddon in Colorado, suggesting that the latter apply for the position.3. At the same time Joseph Haddon writes, applying for the position. Write the letter of application.4. Write Mr. Haddon's letter thanking Mr. Wright for his interest. Remember that the two men know each other.5. Joseph Haddon, whom you have engaged, is proving to be a very alert credit man. He has made a study of your credit files and has discovered that you have a great many accounts of long standing that ought to be collected. He prepares a courteousletter to send to the debtors, telling them that he has just been made credit man and that he personally would like to get into closer touch with their particular situation to find out how soon he might expect a remittance from them, so that he could plan the future of his department. Write the letter. (Seepage 254.)6. A number of retailers remit the amount that they owe. Some explain their situation in detail, but a great many do not respond to (5). Write another letter, still courteous, but more emphatic than (5), to those who did not respond. (Seepage 255.)7. Still a number do not respond. Write a third letter, saying that you will place the matter in the hands of your attorney unless you receive a remittance within ten days.8. Mr. Haddon discovers that there are about a hundred retailers who used to be customers, but who have bought nothing for about two years. He reports this to the sales manager, Mr. James Woodworth, who writes a letter to the retailers to induce them to send another order, using the canned fruit spoken of in (8) ofExercise 264as a means of interesting them.9. Nathaniel Sears, a dealer in general merchandise at Joplin, Mo., writes to you asking for an open account. He says that he did a $10,000 business last year and that, apparently, sales this year will be larger. He gives no references. You refer the matter to Mr. Haddon, who looks up Mr. Sears in Bradstreet and then writes to one of your salesmen at St. Louis, asking him to investigate the financial standing of Mr. Sears. Write to the salesman.10. After three days the salesman reports that Mr. Sears seems to be doing a good business, but he thinks the dealer is living beyond his means. He owes two wholesale houses $500 and $850 respectively; his property in Joplin is heavily mortgaged, and yet he is making extensive improvements on his residence; his son and his daughter are at expensive boarding schools. Write the letter. Be exact in your information.11. As Mr. Woodworth, write Mr. Sears a courteous letter, refusing him credit but attempting to secure his cash business.12. Charles Freeman, 141 Park Place, Newark, Ohio, writes in answer to (5) saying that he is unable to pay his account of $500. After the harvest his outstanding bills will be paid by the farmers, and then he can remit. He says he is willing to give his 90 day note for the amount he owes.13. Mr. Haddon writes, accepting the note.

2. Write the letter Mr. Wright sends Mr. Haddon in Colorado, suggesting that the latter apply for the position.

3. At the same time Joseph Haddon writes, applying for the position. Write the letter of application.

4. Write Mr. Haddon's letter thanking Mr. Wright for his interest. Remember that the two men know each other.

5. Joseph Haddon, whom you have engaged, is proving to be a very alert credit man. He has made a study of your credit files and has discovered that you have a great many accounts of long standing that ought to be collected. He prepares a courteousletter to send to the debtors, telling them that he has just been made credit man and that he personally would like to get into closer touch with their particular situation to find out how soon he might expect a remittance from them, so that he could plan the future of his department. Write the letter. (Seepage 254.)

6. A number of retailers remit the amount that they owe. Some explain their situation in detail, but a great many do not respond to (5). Write another letter, still courteous, but more emphatic than (5), to those who did not respond. (Seepage 255.)

7. Still a number do not respond. Write a third letter, saying that you will place the matter in the hands of your attorney unless you receive a remittance within ten days.

8. Mr. Haddon discovers that there are about a hundred retailers who used to be customers, but who have bought nothing for about two years. He reports this to the sales manager, Mr. James Woodworth, who writes a letter to the retailers to induce them to send another order, using the canned fruit spoken of in (8) ofExercise 264as a means of interesting them.

9. Nathaniel Sears, a dealer in general merchandise at Joplin, Mo., writes to you asking for an open account. He says that he did a $10,000 business last year and that, apparently, sales this year will be larger. He gives no references. You refer the matter to Mr. Haddon, who looks up Mr. Sears in Bradstreet and then writes to one of your salesmen at St. Louis, asking him to investigate the financial standing of Mr. Sears. Write to the salesman.

10. After three days the salesman reports that Mr. Sears seems to be doing a good business, but he thinks the dealer is living beyond his means. He owes two wholesale houses $500 and $850 respectively; his property in Joplin is heavily mortgaged, and yet he is making extensive improvements on his residence; his son and his daughter are at expensive boarding schools. Write the letter. Be exact in your information.

11. As Mr. Woodworth, write Mr. Sears a courteous letter, refusing him credit but attempting to secure his cash business.

12. Charles Freeman, 141 Park Place, Newark, Ohio, writes in answer to (5) saying that he is unable to pay his account of $500. After the harvest his outstanding bills will be paid by the farmers, and then he can remit. He says he is willing to give his 90 day note for the amount he owes.

13. Mr. Haddon writes, accepting the note.

Exercise 266Oral

1. Suppose you were starting a mail order business. Would it make any difference in possible profits if your center of operations were in a large or a small city? Give your reasons.2. Would you try to be near good transportation?3. What kind of stock would you advertise principally: bulky articles or those easily handled? expensive goods or those of more moderate price?4. Your catalogue is your salesman. What would this statement suggest about the cost of running your business as compared with that of Peabody, Harper & Co., who employ five salesmen?5. How would you bring special attention to your leaders in your catalogue?6. Why is it advisable not to give your catalogue away free, but to charge a nominal sum for it?7. Would you sell as cheaply as you could or would you try to sell for as high a price as possible even if you sold less?8. Is it profitable for a mail order merchant to sell one spool of thread or one pocket-knife? Consider the handling and the packing.9. Why can the mail order merchant sell more cheaply than the country dealer?10.a.How is the parcel post favorable to the mail order dealer?b.Why did the country merchant object so strenuously to the passage of the parcel post law?11. Some distributors who handle only one kind of article sometimes pay the freight. Would this plan be advisable for a mail order house to adopt?12. Since the purchaser pays the freight, is it advisable for him to buy a large or a small order at one time?

1. Suppose you were starting a mail order business. Would it make any difference in possible profits if your center of operations were in a large or a small city? Give your reasons.

2. Would you try to be near good transportation?

3. What kind of stock would you advertise principally: bulky articles or those easily handled? expensive goods or those of more moderate price?

4. Your catalogue is your salesman. What would this statement suggest about the cost of running your business as compared with that of Peabody, Harper & Co., who employ five salesmen?

5. How would you bring special attention to your leaders in your catalogue?

6. Why is it advisable not to give your catalogue away free, but to charge a nominal sum for it?

7. Would you sell as cheaply as you could or would you try to sell for as high a price as possible even if you sold less?

8. Is it profitable for a mail order merchant to sell one spool of thread or one pocket-knife? Consider the handling and the packing.

9. Why can the mail order merchant sell more cheaply than the country dealer?

10.a.How is the parcel post favorable to the mail order dealer?b.Why did the country merchant object so strenuously to the passage of the parcel post law?

11. Some distributors who handle only one kind of article sometimes pay the freight. Would this plan be advisable for a mail order house to adopt?

12. Since the purchaser pays the freight, is it advisable for him to buy a large or a small order at one time?

Exercise 267Written

1. A customer who wishes to buy some furniture complains that he can purchase what he wishes from another firm that will pay the freight. Write a letter meeting his objection.2. You have just added a new clothing department and have published a special clothing catalogue, which you will be glad to send to your customers free of charge. Write a letter telling of the new department and drawing special attention to your three-piece serge suit for $15. Enclose a sample of the cloth.3. Write, especially to farmers, saying that with the facilities now offered by the parcel post you are able to supply their wants quickly; as, for example, for a broken part of a piece of farm machinery. Write a fairly long letter in a friendly tone.4. In the fall write a letter, addressing the farmers' wives, saying that, as winter is at hand, it would be well for them to put in a supply of groceries when prices are reasonable. Enclose a folder giving some attractive bargains. Write the folder.5. Write a letter, saying that you have just put up a new building. Invite your customer to come to see it. Explain that every afternoon from 2 to 4 o'clock there will be a band concert in your large visitors' hall.

1. A customer who wishes to buy some furniture complains that he can purchase what he wishes from another firm that will pay the freight. Write a letter meeting his objection.

2. You have just added a new clothing department and have published a special clothing catalogue, which you will be glad to send to your customers free of charge. Write a letter telling of the new department and drawing special attention to your three-piece serge suit for $15. Enclose a sample of the cloth.

3. Write, especially to farmers, saying that with the facilities now offered by the parcel post you are able to supply their wants quickly; as, for example, for a broken part of a piece of farm machinery. Write a fairly long letter in a friendly tone.

4. In the fall write a letter, addressing the farmers' wives, saying that, as winter is at hand, it would be well for them to put in a supply of groceries when prices are reasonable. Enclose a folder giving some attractive bargains. Write the folder.

5. Write a letter, saying that you have just put up a new building. Invite your customer to come to see it. Explain that every afternoon from 2 to 4 o'clock there will be a band concert in your large visitors' hall.

Exercise 268

1. Let one pupil be chosen to dictate to the class each of the letters outlined below. He is to use no notes. The class will represent stenographers.

2. Discuss and improve the letters that have been dictated.

1. Borroughs & Brown, a mail order firm at N. 11th and Callowhill Streets, Philadelphia, send you their catalogue and an advertising letter. Write the letter.2. Write, stating that in their catalogue No. 6, page 673, Borroughs & Brown list a washing machine such as you wish, called the "Pride Swing" washing machine, No. 4-A-459. The measurements as listed are: depth 13 inches, diameter 21 inches. The price is $5.25. This is too small for your purpose. Ask if they can supply you with the same style 30 inches in diameter. Ask the price.3. Borroughs & Brown write that they have no such machine in stock, but, since there have been many requests lately for a larger machine, they have decided to consult the factory, and if it is advisable, they will reproduce the "Pride Swing" machine in larger size. (Letter head.)4. Borroughs & Brown, Dept. 18, House Furnishings, write tothe W. F. Wiggins Mfg. Co., Saginaw, Mich., stating that they have had several orders for a larger "Pride Swing" washing machine which the Wiggins Company manufacture. Burroughs & Brown ask concerning a 30-inch machine. Write the letter.5. The W. F. Wiggins Mfg. Co. telegraph Borroughs & Brown that before they can state a price on a 30-inch "Pride Swing" machine, they must make samples, calculating cost of materials and workmanship. Write the telegram. Confirm by letter. Write the letter.6. Borroughs & Brown write you, giving the information contained in (5) above.7. The W. F. Wiggins Mfg. Co. write Borroughs & Brown, stating that after several experiments they find that the coil springs by which the "Pride Swing" machine is operated are too weak for the larger sized tub. The manufacture of suitable springs will cause some delay in their final report.8. Ten days later. Telegram. The W. F. Wiggins Mfg. Co. to Borroughs & Brown, stating that they have now perfected a "Pride Swing Special" machine; width 30 inches, depth 18 inches; price $8, with a discount of 50%.9. Borroughs & Brown write you that they have perfected a "Pride Swing Special" washing machine, No. 4-B-459, 30 inches in diameter, 18 inches in depth, price $7. Add a courteous close.10. Order five machines. Give full shipping directions. Say that you will pay according to the offer made on page 25, catalogue No. 6; viz., $20 upon receipt of the goods and $5 per month until they are paid for. Give two references.11. Borroughs & Brown telegraph the W. F. Wiggins Mfg. Co. ordering 100 machines, five of which are to be sent directly to you. Write, confirming the telegram.12. Two weeks later than letter (10) write again, explaining that you have not received the machines you ordered. Ask the reason for the delay.13. Two weeks later than (11) write a telegram from Borroughs & Brown to the W. F. Wiggins Mfg. Co., asking why the machines have not been sent.14. Send a telegram from the W. F. Wiggins Mfg. Co. to Borroughs & Brown, saying that, owing to a teamsters' and shipping clerks' strike, they have not been able to fill any of their orders for the last two weeks. The machines have been sent. (State how and when.) Write a letter, confirming the telegram.15. Borroughs & Brown write to inform you that the strike was the cause of the delay in the shipment of the machines you ordered ——. The machines were shipped ——. Add a courteous close.

1. Borroughs & Brown, a mail order firm at N. 11th and Callowhill Streets, Philadelphia, send you their catalogue and an advertising letter. Write the letter.

2. Write, stating that in their catalogue No. 6, page 673, Borroughs & Brown list a washing machine such as you wish, called the "Pride Swing" washing machine, No. 4-A-459. The measurements as listed are: depth 13 inches, diameter 21 inches. The price is $5.25. This is too small for your purpose. Ask if they can supply you with the same style 30 inches in diameter. Ask the price.

3. Borroughs & Brown write that they have no such machine in stock, but, since there have been many requests lately for a larger machine, they have decided to consult the factory, and if it is advisable, they will reproduce the "Pride Swing" machine in larger size. (Letter head.)

4. Borroughs & Brown, Dept. 18, House Furnishings, write tothe W. F. Wiggins Mfg. Co., Saginaw, Mich., stating that they have had several orders for a larger "Pride Swing" washing machine which the Wiggins Company manufacture. Burroughs & Brown ask concerning a 30-inch machine. Write the letter.

5. The W. F. Wiggins Mfg. Co. telegraph Borroughs & Brown that before they can state a price on a 30-inch "Pride Swing" machine, they must make samples, calculating cost of materials and workmanship. Write the telegram. Confirm by letter. Write the letter.

6. Borroughs & Brown write you, giving the information contained in (5) above.

7. The W. F. Wiggins Mfg. Co. write Borroughs & Brown, stating that after several experiments they find that the coil springs by which the "Pride Swing" machine is operated are too weak for the larger sized tub. The manufacture of suitable springs will cause some delay in their final report.

8. Ten days later. Telegram. The W. F. Wiggins Mfg. Co. to Borroughs & Brown, stating that they have now perfected a "Pride Swing Special" machine; width 30 inches, depth 18 inches; price $8, with a discount of 50%.

9. Borroughs & Brown write you that they have perfected a "Pride Swing Special" washing machine, No. 4-B-459, 30 inches in diameter, 18 inches in depth, price $7. Add a courteous close.

10. Order five machines. Give full shipping directions. Say that you will pay according to the offer made on page 25, catalogue No. 6; viz., $20 upon receipt of the goods and $5 per month until they are paid for. Give two references.

11. Borroughs & Brown telegraph the W. F. Wiggins Mfg. Co. ordering 100 machines, five of which are to be sent directly to you. Write, confirming the telegram.

12. Two weeks later than letter (10) write again, explaining that you have not received the machines you ordered. Ask the reason for the delay.

13. Two weeks later than (11) write a telegram from Borroughs & Brown to the W. F. Wiggins Mfg. Co., asking why the machines have not been sent.

14. Send a telegram from the W. F. Wiggins Mfg. Co. to Borroughs & Brown, saying that, owing to a teamsters' and shipping clerks' strike, they have not been able to fill any of their orders for the last two weeks. The machines have been sent. (State how and when.) Write a letter, confirming the telegram.

15. Borroughs & Brown write to inform you that the strike was the cause of the delay in the shipment of the machines you ordered ——. The machines were shipped ——. Add a courteous close.

Exercise 269

Conduct a transaction of your own, using the above as a model, except in the method of payment.

IV.—The Salesman

Salesmanship is a branch of distribution about which many volumes have been written. We cannot consider it minutely from the personal view of the salesman, but can only touch upon it from the point of view of distribution. The salesman is merely a force in distribution like correspondence, circulars, and advertising. But the salesman has the advantage over these in that he is able to bring his personality to bear in the problem of getting business. It is by means of his personality that the salesman gets the attention and confidence of the customer,—a thing which is extremely hard to do in a letter, a circular, or an advertisement. Securing a buyer's confidence is very important, because no suspicious customer has ever yet bought anything.

In addition to a pleasing personality a good salesman must have a wide and thorough knowledge of his wares. If he does not know his goods, the sale drags; whereas, if he knows everything good there is to be known about them, his enthusiasm instills enthusiasm into the customer.

After bringing his knowledge and his enthusiasm into play, he must next call on his perseverance and his tact; perseverance to keep at the customer until he gets the order, and tact to know in each case just how to go about getting the order and just when to stop. Many salesmen talk too much; many more do not talk enough.

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