MONTFLY NEWS BULLETIN

Division of Simplified Practice

National Committee on Fetal s Utilization

National Committee on Wood Utilization

January 15 , 1327 . No. 22.

REDUCING INVENTORIES

R. F. Hudson , Chief

,

Division of Simplified Practice

"If you cannot apply simplification to things you sell, then apply it to things

you buy I Don't buy 15 varieties of bolts, if by study you can make one kind of

j?olt satisfy the 15 uses." The hotel manager who made this statement reduced

his cost of items simplified 20f below their former cost, released §5^0,000 from

former inventories, and saved $100,000 a year.

A well-known eastern railroad out its supply list from 140,000 to 76 , 000 items.

Another road eliminated 493^ items, another 5457’ an(i a over fOOO. One

carrier cut its average stores investment from $39,000,000 to $20 , 000,000 - largely through simplifying its reauirements

.

The cost of carrying inventories includes much more than interest on investment.

Rent, insurance, taxes, transportation, handling and distribution, depreciation

and obsolescence all have to be taken into account. In some lines, the average

"cost- to-carry" is 15 to 25$ of the value of the inventory. It may exceed this

in other fields.

Fany companies have just completed their annual inventories. Now is a good time

to study the possibilities for their reduction through simplification. The savings through release of otherwise idle inventory investment are usually great

enough to make such study very profitable. The ideal situation exists when all

the inventory is in process or in transit - in other words "on the move". Simplification affords an easy approach to this ideal, for it is based on the elimination of excessive or superfluous variety - the chief source of idle investment and

heavy costs of inventory maintenance. If you can not apply simplification to

things you sell, - then why not apply it to things you buy ?

1. PAND-TO-FOUTH BUYING - A STABILIZING FACTOR : In discussing "hand-to-mouth

buying - a stabilizing factor" in the December "Purchasor" , Richard Forester, Commodity Director, National Association of Purchasing Agents,

states - "the minimum of capital investment in the frozen asset of raw

materials, consistent with production demand and price trend, can only be

maintained when sales and production conferences are fully opened up to

the Director of Purchases." Tre following example well illustrates what

can be accomplished under such an arrangement*

"In 1925 > a concern carrying an inventory of only seven hundred thousand

dollars, turned it seventeen times for on annual sales volume of twelve

million dollars. In the same period, an older and larger competitive

concern, who were manufacturers of the same specialty, sold a larger

volume amounting to sixteen million dollars, with a net profit of one

- over -
2

million dollars. But the concern with the smaller sales volume showed a profit twice as great that ran over two- million dollars. Turnover was the answer. The smaller concern turned its inventory value seventeen times.

The best the larger concern could do with its inventory in excess of three J million was four turnovers. This inventory was twenty-five per cent of the sales volume. Slim profits come with such a burden."

Leading men in widely divergent fields agree that simplification increases

turnover, and decreases inventory.

2 • IhFTTJMCE OF INVENTORY OH PROFITS: "How long will present prosperity last?" was one of the interesting questions discussed in the report of E. ?. DuBrul , General Hanagor of the Fachine Tool Builders’ Association, presented!

at the opening session of the last convention. According to Fr.' DuBrul

,

"Sane management simply did not allow business to go into an insane boom,

as might easily have been the case in times gone by". Also, the large influence of inventory on profits was mentioned, it being pointed out that

to keep the rate of turnover at a high average, the inventory must be re- duced as demand falls off. Simplified designs and better control of inventory were said to have improved the rate of tiirnovcr in many of the

association members’ plants.

3* m;E BUSINESS BUDGET : Every business man admits the value of a budget, a plan

which will co-ordinate the buying and' selling, production, advertising and

financial sides of his business. According to an editorial which appeared

in a recent issue of "Printers' Ink", a book soon to be published, ’called

"Classification of Accounts for the Rubber Industry", will give some valuable budget suggestions. The object and needs of a budget are thus described; 1. to establish responsibility , 2. to effect accountability,

3* bo estimate probability, 4* bo determine advisability, lj. to insure

desirability, 6. to chock up ability. Among the advantages summed up are: products, processes and equipment can be standardized; also reduction of

waste will be encouraged by the maintenance of better balanced inventories; by instituting wage payments based upon results, and by assigning

responsibility for expenditures.

Simplified practice is a valuable aid in the operation of a successful

business budget.

4* PROPS! buying TRE SECRET OF GREA

over was 10~l/2 times last y

Hardware' Company , Now York C

Don't buy and buy. Buy and

rules that step-up turnover

catalog regularly. 2. Don’t

on a special deal, 4* Don’t

bought. Price, quality, and

. ing the program for greater

TER TURNOVER: In discussing "why their turncar" , Edwin " R . Lias back, President, I.Tasback'

ity , says; "Buying is the secret of turnover,

sell," he t-ells his buyers. The four buying

for this concern are; - 1. Onl^ buy what they

buy job lots. 3* Don’t, be tempted by price

buy foreign goods if domestic goods can be

proper size were the guide posts- in directturnover

5 * OPE PURCHASING AGENTS’ PART IN WASTE ELII'INATION

"The : Purchasing A .rent ’ s Part

in Waste Elimination" is the title of an article by Thurston H. Ross, in

the December "Southwestern Purchasing Agent". Ur. Ross points out that

"the purchasing agent is a direct factor in the elimination of waste in
- 3 -

business and industry, in his function of utilizing storage facilities and

of supervising materials in use, as well as in the procuring of supplies

and in the choice of couipnent

.

By encouraging simplification and standardization of incoming products, as well as finished goods in his own plant, the purchasing agent can avoid the

necessity of carrying excessive inventories and of having a large amount

of capital tied up in seldom' used commodities.

Many purchasing agents arc buying to advantage by specifying the standard

materials, tools and eouipment r for which Simplified Practice Recommendations wore developed under the a.uspiccs of the Department of Commerce. A

list of the commodities which haVe been simplified will be mailed upon re- quest to the Division of Simplified Practice.

STANDARDIZA.TIOI! OF. SAUCES

According to "The Purchasing Agent” , one of the

simplest but most effective forms of standardization that might be attempted is the reduction of the number of "gauges” that now confuse and

irritate the industrial buyer. It would be an easy matter to formulate a standard gauge table that would embrace the decimal eauivalcnts now included in the multitude of existing "standard” gauges. The adoption of a uniform gauge would v/ork no hardship on manufacturers.

STA HOARD I ZAT 1 0 IT PAYS : It is of considerable interest to note that more and

more industrial concerns definitely recognize that through standardization it is possible not only to produce cheaper goods, but bettor. In

the machinery field, one company, the Boston Gear Works Co. of Norfolk

Downs, Mass., has adopted as a registered slogan the words "Standardization Pays" for use in connection with the company’s products of standardized gears, speed reducers, and silent chain drives.

SAVINGS TFRQUGr SIMPLIFICATION; The Chairman, Standardization Committee, Los

Angeles Purchasing Agents’ Association, is featuring each month, in the

"Southwestern Purchasing Agent" , instances which have been brought to his

attention, where distinct savings have been made by the elimination of

many articles not coming under the heading of accepted standards. . As an example, The County of Los Angeles, through its purchasing department and

cooperation of department heads, has made reductions in the types, sizes

and styles of dishes, crockory, blankets, carbon paper, waste paper baskets, pen points, and typewriter ribbons. The Axelson Machine Company is

reducing its stock of files, safety giggles, grinding wheels , drills, etc.

The Los Angeles Railway Company, through its interdepartmental cooperation, has made stock reductions in curtain rollers, curtain material

,

emery, saws, screws, bolts, rivetE , sheet steel, eto.

A STEP TOWARD PROSPERITY: Edward L. Rossiter, Treasurer of The New York Central Lines, says, in the final report of the Committee on Treasury Department Forms, that -"’Simplified Practice’ is a business philosophy which

has for its ultimate goal the elimination of industrial waste. It is a voluntary continuation of what, during the war, was a compulsory reduction

of a number of commodities tc simplified lists of sizes and types. It re- duces frozen capital, storage space roauiroments and overhead expense,

while increasing turnover, economy of operaticn and labor officiency. ...

- over -
By supporting this program v;o .... make a measurable contribution to' the

proso r rity of the Notion."

10 . SIKPLIFIED PRACTICE AND THE CONFECTIONERY TRAD^S: In the December issue of

the ’ rC o nf e o t i o nc r s ’ Journal", Louis A. Dockman, President, John H. Deckman & Son, Inc., Baltimore, tells of savings and profits In producing a "short line". The keynote of the policy of this firm has boon the deliberate effort to reduce the items In each department of the factory to

a minimum. The principle of simplification expressed by this policy is

that of finding out what pieces are in most general and permanent demand,

and confining production to those pieces. The benefits claimed, as a result of this policy are: decreased cost of manufacture, through quantity production; more nearly continuous operation; a reduction in factory

inventory; more intense and carefully planned selling programs; more

nearly even quality of goods, and better service.

. . 11. BETTER UT ILIZATION OP PASTE; Reclamation of old material at an average net

saving of 020,000 a month is a feature of the shops of the Cleveland,

Cincinnati, Chicago & St. Louis Railroad at Beach Grove, Ind. In a plant

constructed of cast-off materials and couippod almost entirely with re- claimed tools, many articles, including bolts, valves, washers, cut-out

cocks, brake beams, couplers, wrenches , track tools and coupler parts,

arc. reconditioned for further service.

This is a splendid example of the- many instances where railroads and

large concerns are saving money by better utilization of waste and waste

elimination.

12. WASTE OF HUNAN ENERGY : Under the heading "Waste 'of Human Energy" , the

London Times Trade and Engineering Supplement of a recent date contains

a report of a meeting of the British Section of the Societe dcs Ingonieurs Civils dc Franco, which. considered the growing use of mechanical devices, -and the influences of manual operation on machines to supplant such operations. The British attitude toward scrooping obsolete

machines was contrasted by speakers with the American attitude of adopting every labor-saving device. and of standardizing to eliminate wastes.

!3 • COrPARISOE OF U, S. AND GERNAN STANDARDS : Carl Fottgen, in "Das Wirtschaftliche Amcrika" , Berlin, 1923* touches upon the work of the National Industrial Conference Board, and upon that of the Department of Commerce as far as it concerns standardization, waste prevention, specifications , etc. He seems in general to be favorably impressed with these

activities. The purpose of his dissertation is to examine in some detail the economic factors upon which the industrial life of the United

States is based, and then to compare the picture thus developed with the ;j

conditions at present existing in Germany, mainly with -a view to determining whether these conditions arc susceptible of adaptation to American

s tandards

.

. 14* BUDGETING INCREASES EFFICIENCY: Problems involved in the adoption of plans

for the operation of budgets were discussed at length and aroused much

interest at the autumn convention of the American I-rnogement Association,

held in Cleveland, in October. One day was taken up entirely with the

techniaue of budgeting, the program having been prepared by a committee
_ pJ

of which Hr* Juries 0. HcKinsey, professor of business administration,

University of Chicago, was chairman.

Budgeting increases efficiency, and is a good tool to help management in

the forecasting of business and the determining of factors which can and

cannot be controlled.

15* BUTTER I "E? FOPS VERSUS REDUCTION IN PRICES: Hr. Gerard Swope, President of

the General Electric Co., in an address delivered at the annual dinner of

the Associated Business Papers, Inc., says ... "The test of the efficiency

of any organisation is going to be measured not only by its service and

the Quality of products but by its continual and progressive reduction in

the prices of its products to the public. That doesn’t moan a cut-throat

policy but it means the application of intelligence and of science to the

problems before us ; of better methods being introduced in industry, so that without reducing the earnings of labor we can still reduce the selling prices to the public."

Simplification is one of the "bettor methods" now being adopted by industries in a program for bettor service to. tide public.

lS SAVINGS THROUGH USE OF UNIT C OUTA I ITER SYSTEHS : In discussing the advantages

of the container systems at the annual transportation and service meeting

of the Society of Automotive Engineers , held in Boston, ITovember lb - lc , D. \7. P

1 rrin summarized those advantages as follows: TO SHIPPERS:- 1.

Savings in packing expense, 2. Convenience of handling in warehouses

,

3* Faster service, 4* Lover rates, 3

. Later closing time for acceptance

of shipments by railroads, G. Reduction of loss ana damage claims, and

cost of making claims, 7

* Reduction in highway transportation costs between freight stations and shipper and consignee. TO RAILROADS:- I* Reduction of chocking at points of origin and destination, 2. Reduction of

handling at break-bulk and transfer points, 3*- Reduction of congestion at

freight terminals and break-bulk points, /\, Reduction of expense of terminal buildings and handling cauipment, p. Increased car-loading, 6. Reduction of idle tine of freight cars, 7. Increased efficiency of rolling

stock, 8. Reduction of loss and damage claims, 9 * Hakes tracing easier,

10. Retrieves part of freight lost to Inter-city truckmen.

1 7 • STANDARDIZATION OF BUS E'NTIPHENT : G. T. Seely, Cicago Kotor Coach Co., in a paper which was read by F. C. Horner before the transportation meeting of

the Society of Automotive Engineers, ‘held at Boston in November, said: "A

survey of a large number of bus operations in various parts of the country

leads one to the conclusion that in the present stage of bus development

two very important considerations are: 1* Standardization of eauipment on

the smallest possible number of types and makes. 2. Establishment of a standard of maintenance as nearly as possible 100 per cent perfect."

18 . SIMPLIFICATION APPL IED TO TEXTILES

The Managing Editor of "Factory", in the

December issue , 'calls attention to a particularly interesting bit of news

in the American textile situation. "In the efforts which textile com- panies have made to solve their problems by increased diversification of

product , it has been somewhat taken for granted that the principles of simplification, so fruitful when set to work elsewhere, didn’t apply to textiles. But listen to this: Hr. Henry F. Lippert, first president of the

- over -
recently organised Cotton-Textile .Institute, said to the members at the

first annual meeting, in November - "We certainly produce an enormous variety of fabrics. Some of the differences between then are very slight.

It is more than likely that, if our customers' attention was called to it, a great many of these could be done away with, just as the yarn dyers, by

establishing a standardized color card, have much improved manufacturing

conditions without dissatisfying trade.”

The manufacturers of bed blankets and cotton duck have developed simplified practice recommendations in cooperation with the Department of Commerce, resulting In tho elimination of waste and increased savings.

13. ADVANTAGES OF DIE DEAD CFASSR SITTblPI CATION: "Simplified Practice applied to self-opening die head chasers has brought" a number of advantages to the

user," C. \7. Bettcher, Secretary of the Eastern Machine Screw Association,

told the National Machine Tool Builders’ Association at a recent meeting

at Providence. Some of these were : more prompt delivery; saving of oxtyj

j charges for "Specials"; better Quality, closer tolerance and greater uni

formity ; reduction of chaser stock; better fit between screws and tapped

holes* ability to use standard gauges stocked by gauge manufacturers for ; standard screw’ sizes; and assembly v/ith standard thread instead of "mongrels" .

20. INCREASED SALES THROUGH SIIELIFICATIOI-T: In connection with the Simplified

Practice Recommendations covering eaves trough, conductor pipe, and sheet

steel, one prominent manufacturer in Louisville, Ky., has this to say:-

"In this connection, it may be interesting to you to know that we have

discontinued the manufacture of eaves trough and conductor pipe in anything lighter than 28 gauge. We are also rubber stamping the gauge on the | gutter and pipe. It has really worked to increase rather than decrease

our sales. We have also adootod 28 gauge for our standard galvanized roof

ing and whereas last year all of our sales were 23 gauge galvanized, this

year three Quarters of our sales are 28 gauge and one quarter 23 gauge,

and there has been a very nice increase."

21 . REDUCTION O F WASTE CAUSED BY ACCIDENTS; Reducing waste In lost time due to

accidents Is just as important as reducing waste In material or machinery : because it entails lost time that results in human suffering. "Industry

must perfect its organization to deal with this problem," says Carl B.

Auel , past president of the National Safety Council.

22. STANDARDIZATION AND FOREIGN COTTETITION: Reports from other countries indi ca t e increasing "activi ty in the direction of standardization in mechani 1 cal, electrical and other lines. Progress has been marked In some of t.h these countries, and especially so in the case of nations which are among

our keenest competitors in foreign trade.

Along with the news of this trend thero comes an uneasy question to the

minds of many American manufacturers: "Will we be able to determine our future production, or will it be dictated by the practices of industries | of other nations?”

The answer is up to the American producers and American technical organ- 1: zations set ut> to carry on standardization work, progress IS being made, l
- 7

-

but not as rapidly ns it might be were every manufacturer, every trade

association and every engineering, scientific or business school to put

their shoulders to the wheel. The Dayton Journal points out that there

is a crying need to '’sell" the idea of standards and their advantages and

to wage an intensive campaign in this direction.

23. SIMPLIFIED PRACTICE! AS A SHORT CUT: One of the most important steps preliminary to standardisation is simplified practice. It offers a short

cut to benefits for the manufacturer, the distributor or the motive and

locomotive industries.

Norway has joined G-urmany , Switzerland, Austria, Holland, Hungary , Czechoslovakia, Belgium and Sweden in adopting interna tional paper sizes.

Poland has recently formed a standards committee, which is working on

25 projects, among them simplification of electrical material, specification for boilers and cast-iron water pipes, and rules for bridge con- struction.

Sweden is considering standards of taper shanks for milling and drilling

machines

.

2A. STATEDAKD SIZES FOR BOOKLET TAIL: Adoption of standard paper sizes, from

which 14 booklet and folder "sizes could be cut without waste, brought a problem in the size of envelopes for booklets of simplified sizes. One

paper company and on envelope company, by. cooperating on the problem,

have produced a portfolio showing standard sizes of mailing pieces and

envelopes which, when sent out to thousands of buyers, brought order from

the chaos which had threatened, and resulted in a big influx of business

in the simplified sizes. Touch time in estimating and delivery has been

saved.

25. RAILROADS LEAD ITT REDUCTION OF "A GTE : Declaring that the policy of "weeding

out the waste” constitutes the new watchword for both business and government, James Francis Burke, General Counsel of the Bolt, Nut and Rivet

Manufacturers ’ Association, cites the railroads as the outstanding ex- ponents of this movement. In a recent address he said in part:

"The railroad men of this country, shortly after their systems werc re- turned to them by the government, faced a deplorable condition of demoralization. Bat ti'agy took a coldblooded, philosophical view of what they

must do to save the greatest railroad systems in the world. B' catting

out industrial absurdities and reducing the number of units that were

causing untold waste, they have put the railroads of America on a higher

plane of efficiency than ever before marked their history.

"Fere is an illustration of standardization and economy in railroad man- agement; In the nineties, the railroads were using fifty-six different

types of axles which, by 1^21 , they had reduced to six; fifty-eight journal boxes were reduced to six; twenty-six couplers were reduced to one;

twenty brake shoes were reduced to 0 no, and twenty- seven brake heads were

reduced to one.

"V/ho is reaping the benefits? The entire American people."

- over -
26, UTTI PORI* VEHICLE CODE: The Uniform Vehicle Code, which is the outstanding

"acKiovOTTen'T of the !T: tional Conference on Street and Highway Safety, 'has

been reviewed and endorsed in its final form by the Notional Conference of

Commissioners on Uniform State Laws and by the American 3a r Association.

It can scarcely be doubted that the widespread enactment of the Uniform

Vehicle Code, with its wisely chosen provisions, capable of consistent

enforcement, will force sharp reductions in our national automobile ac- cident ratios — tv enabling tourists to know and obey the law .wherever

they may be; by depriving incapable, reckless and criminal drivers of the

^ right to drive; and by eliminating speeding.

27. CENTRALIZED PURCFASING IS APPLICABLE 30 CITY OR POFE: Tnt.re is no essential

“dlffercnce between”!:he management of a~ successful business and a successful government, says the Dayton Journal.

The chief difference between business and government lies in the fact that,

in the latter case the employes arc elected. Despite this difference,

each incoming administration in all respects is a corporation sot up to do

business . The extent to which it strays away from the principles of sound

management will be the extent to which it fails to live up to preelection

Promises

A government of any hind must buy and sell. It must hire labor. It must

provide for financial backing and it must pay its bills. Due to the fact

that administrations change freauently, state, county and municipal governments have not been able to march abreast with the advance of modern

methods of doing business. The growth in popularity of the remarkable

achievements of the commission .and city manager forms of government and

municipalities is a trend of the times.

2d. REDUCTION IN LA?

5 PRICES: The great benefits to be derived from improved

mar.it fac turi ng methods, standardization and simplification ar.e impressively

evidenced by the lower prices for Mazda lamps.

There was recently announced a further reduction In the prices, effective

September 1, 1926 , amounting to about 7 per cent on the sizes of the new

standard line of lamps generally used, and approximately 5 Per cent on al*

types

This is the eighth reduction of Mazda lamp prices since 1920. This reduction means a saving of approximately $4,CGQ,00C a year to the public.

The prices of Mazda lamps are now J/ip below the 1914 prices , although

there ha 3 been a 654 increase in the average cost of commodities since

that year.

SC. DEPT « OP COMRCS LISTS RESEARCH AGENCIES: The increasing application of

sci’entific methods to solve the various problems connected with modern

marketing is revealed In a compilation entitled, "Market Research Agencies" , released a few weeks ago by the Department of Commerce • This publication, which has the commendation of the National Distribution Conference, constitutes an inventory of accomplishment in the field of market

research.
With so many agencies working along the same general lines, as was evidenced at the conference on market research, held recently at the Department of Commerce, the possibilities of duplicating work already accomplished are always x-jresent. To remedy this situation the Domestic Commerce Division compiled this list of sources for market information, enabling any

concern to determine without delay just what has been done by other agencies in this same direction.

STANDARDIZATION ADD SIPPLIFISD PRACTICE IN IfI I-TI I1G

For some years the American Dining Congress has been conducting a campaign for standardization and

simplification of mining. This applies not only to the machinery and e- quipment used in and around the mines but also to the methods followed

underground. It is obviously impossible to establish a single inflexible

and uniform standard for all of the mines in this or any other country,

but it is entirely possible to reduce the number of machines, processes and

methods of mining to a fow sir:plo standards for each field or district.

Wherever possible, says the ,! Coal Age’1

, standardization and simplification

of practice should be established, for this will decrease the stock of

spare and repair parts that must be carried, lower production costs, re- duce selling expenses, cause fewer misunderstandings , and diminish the

cost to the consumer. At the same tine such practice will increase stability of employment, promote promptness of delivery, raise the Quality of

the product, and assure profits to the producer, distributor and consumer

alike.

WHITE DOTOR CO. ORGANIZED AGAINST VASTS: A group of executives from the White

Ilotor Company visits the plant every Friday morning. This group is called

the Duality Committee and is made up of the production manager, the chief

inspector, the assistant factory engineer, the production engineer, the

salvage supervisor and the manufacturing assistant production manager.

The superintendent and inspector of the department being visited are included in the group.

During the week, all materials scrapped In a department are collected at

the Waste N.nteriai Depot for that, department. The Duality Committee visits

each of those depots and examines the material, discusses the cause for the

scrapping and decides upon the measures for preventing its recurrence.

Someone in the group is made functionally respoiisible for seeing that the

trouble is remedied.

WASTE ELIMINATION I IT PAL? '.OLIVE PLANT; This subject, discussed, by J. A. Riley

in the October S.I.E. Bulletin, is quite thoroughly covered in short paragraphs under the headings of; Standard Practice Instructions; Factory

Regulations; Stock Control; Buying Specifications; Symbols; Stock Numbers*

New Numbers; Bin Tags; Research; Illumination; Charts; 7/age Payment Plan;

Insurance; Service and Safety* Cooperation; Material Handling; Differential Piece R-tcs; Night Work.

ACTIVITIES OF NATIONAL COMMITTEE ON TOTALS UTILIZATION

The status of the committee’s active projects is as follows:

Petal Spools and Reels; - On December 2, 192h , manufacturers of metal

spools and reels representing approximately 00 per cent of the annual pro- over
10 -

34-

duo t ion of these commodities , convened at the Department of Commerce under j the auspices of the national Committee on Totals Utilization for the purpose of considering- the possibilities of applying the principles of S impl t- fied Practice to their products.

A Commit teo was appointed to conduct a survey of the present conditions in i, the industry as a first stop in the direction of framing a tentative Simplified Practice Recommendation. The Simplified Practice Committee 'select

cd January 15, 1927, as a tentative date when the chairman will make a re- j port of the results of this survey to the National Commit teo -on Metals

Utilization.

. Automotive Indus try : Early in February, 1927, in Detroit, Michigan, there

will be four general conferences of manufacturers, distributors, and users for the purpose of considering the tentative programs of the Society of

Automotive Engineers, and of developing unanimous Simplified Practice Recommendations covering - 1. Suark Plugs, 2. Pistons and Piston Rings. , 3» Brake

Lining, 4* Roller Bearings. These meetings will be held under the auspice:

of the National Committee on Metals Utilization, further details may be

obtained from this office.

FI a s h 1 i gh t 1 ndus t ry

At a meeting in New York City, December 9th, (under

the auspices of the Department of Commerce) the Simplified Practice Committee of the Flashlight Industry made further progress in its survey of existing over-diversification.

Wrought Iron & Wrought Steel Pipe; Valves and Fittings; Simplified Practice Recommendation No. 57 » "Wrought Iron and Wrought Steel Pipe; Valves

and Fittings", which makes possible a 21 jjer cent reduction in the variety

of pipe sizes, is now at the Government Printing Office. The published

booklet will be ready for distribution in the near future.

ACT I VI

IES OF THE NATIONAL COMMITTEE ON WOOD UTILIZATION

The status of the Commit toe’s active projects is as follows*

Uses for Short Lcnghts in Building and Construction: A bulletin entitled

"The Marketing of Short Length Lumber" containing '$2 pages is now ready for

distribution. Orders for several thousand copies of this bulletin have already been received by the Government Printing Office, as many trade associations are distributing these bulletins to their members and the latter are using them as inclosures with sales letters. Copies of this report can be

obtained from Government Printing Office, Washington, D. 0., at a price of

10^ per copy.

End Matching of Softwood Lumber : This project was started during the

month of December. A subcommittee of eleven members, headed by Mr. Win. F.

Chew, Managing Director, The Builders’ Exchange of Baltimore City, Baltimore, Maryland, is handling this project. The preliminary draft of the

bulletin has been prepared and it is expected that the report will be

ready for the printer within a few weeks . The end matching of softwood

lumber is still in the first stages and it is believed that this bulletin

will effectively contribute to the promotion of the use of this material.

The end matching of lumber is one of the most outstanding accomplishments
11

in tho wood utilization field.

Seasoning end Fondling of Lumber • The four subcommittees representing lumber'' manufactur or s , distributors, fabr ice tors end consumers, arc now assem- bling the necessary- material for their respective bulletins and the Committed; staff in Washington is concentrating its efforts on this project which,

at tho present time, is considered the most important of the Committee’s

activities. An arrangement has been made- with the United States Forest Service, and other institutions, in regard to active cooperation on this project.

Wood 'Distill ation;- A comprehensive, report on wood distillation, which has

already been pronounced as the most complete of its hind written in the

English language, has been prepared by William K. I jungdnhl , Chemical

Engineer, whose services were loaned to the Committee by the Department of

Commerce. The report contains valuable data in regard to' the host practices

of wood distillation,- both in the- United States and abroad. As soon os the

members of the Wood Chemicals Subcommittee have passed on this report, tho

bulletin will go to. the printer.

Wo o d Pres e r

v

a t i o n ; A preliminary investigation of the auestion of retail

distribution of preserved wood is being made by the Committee. As a con-

's ecu one o', this treated : wood , seldom handled by the retailer,' will bo more

readily available to the average lumber consumer.

Sma 11 Pimens

o n Stock; The establishment of the Dimension Lumber Manufacturers’ Association, during November, gave the Committee the benefit of

dealing with an organized group of 'small dimension producers. At the next

meeting of the association in January, it is expected that plans for close

cooperation with that association will be made.

Veneer and plywood; Negotiations between the -Veneer and Plywood Subcommittees and c Special Radio Cabinet Committee Of the Radio Manufacturers

Association are now being c rried on in regard to standardization of sizes

of radio cabinet panels. The success of this project will mean much in the

elimination of waste, both in tho producing and consuming industries.

Containers

At the meeting of the Executive Committee of tho National Committee on Wo~d Utilization held in Washington, November 23 , 1926, it was decided that the Container Subcommittee should be separated into two distinct groups, one for wooden containers ^nd the other for fiber containers,

in order to permit the two groups to develop their projects independently

of each other. At the invitation of the Fifth National Exposition of

Power and Mechanical Engineering, the two groups exhibited, from December

6 to December 11, at the Grand Central palace, New York City, a series of

container types showing scientific design and construction. The exhibit

attracted considerable attention and plans are now bring considered for a traveling exhibit to cover more than forty cities in the United States that

have expressed an interest in this project.

over
12

y, t RECEIPT PUBLICATIONS : Tho following publications were received from the

'^bVermient Printing Office during the month of December, and copies may

be obtained from the Superintendent of Documents of that office, at the

price indicated*

& "A Primer of Simplified Practice*’ - containing ^0 questions and answers regarding simplification movement

"S.P.R. No. 43? Paint and Varnish Brushes” - listing the standard

brushes which wore reduced from 4^0 varieties to 13 -

"S.P.R. No. 33, Steel Reinforcing Spirals" - showing a list of

steel spiral rods for concrete reinforcement , reduced- from 7 _ , to 3

s tandards Dp

5SNERAL BUSINESS CONDITIONS

3b. STABILITY OF DISTRIBUTED PROSPERITY : In a discussion-of the general busi- ness conditions of the country which appeared in the -December bulletin

of the National City Bank, the editor has this to say:-

"Two things chiefly have contributed to the expansion of industry over

the past few years , - the making up of the normal peace time growth tl was retarded by the war, and a great increase in industrial efficiency

which has produced a wider distribution of wealth here than anywhere

else and given to the mass of the people a buying power greater than

that of any other country/. While the impetus derived from the first

may be losing its force, that derived, from the second is inexhaustible

so long as all parties who have contributed to that efficiency cent in

to do so and to cooperate reasonably well to that end. The vrants ox American people are no nearer to being satisfied now than they were a year ago or five years ago, nor is there the slightest prospect that

they will be satisfied in the near future. The buying power of the

at

HO

the

American people exists in the work they do for each other from day to

day, and is as limitless as their wants. The pace at which they make

headway in satisfying their own and each other’s wants depends upon

their ability to work together harmoniously, understanding all the time

the cooperative character of their relations. The secret of continued

prosperity is in a fair and even distribution of it. Whenever a group

attempts to get more than its share the entire flow7 is imperilled."

ooOoo