Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1906-03-07
n!,Sesza,
ADVERTISING PAYS.


The American Artizan of March s
contains splendid editorial. on the
principal reason the catalogue houses
succeed SO well. It follows:
On February 9th a mail order con-
Germ capitalized at five millions of
dollars, which is reputed to have
been doing an enormous business,
passed into the hands of a receiver
by the order of Judge S. H. Bethea of
the federal court of Chicago. The
necessary legal application for the re-
~ceivership was taken by three credi-
tors who acted at the instigation of
the postal authorities.
This concern was the Cash Buyers
Union First National Cooperative
Society. 1t was created three years
ago by Julius Kahn under the laws of
the state of New Jersey.
The postofi1ce inspectors who have
been Investigating the corporation for
some time past, and who are familiar
with its course, say that shares
amounting to $1,027,000 were sold
through the mail. The plan was to
sell stock for $40 a share, at the same
time agreeing that stockholders
should receive discount of five per
cent on all stock purchased and a
commission of five per cent on all
goods sold to customers. The scheme
was alluring, and all of the stock dis
posed of was sold through the mails.
At the very first, $4,000 was spent
In preparing and mailing catalogues,
and it is estimated that $1,000, 900
worth of goods was sold during the
past year. 80; .-.. .... .
= STILL Notwithstanding the enormous
gross income of the concern expenses
could not be met. The postoffice men
say that a =. high valuation on the
Z corporations assets is 100000. An
N effort is being made by a committee
: representing twenty-five prominent
manufacturing companies to secure
the cooperation of other creditors and
administer the affairs of the Cash
Buyers Union outside the courts, In
an endeavor to bring about liquidation
of their claims at as high percent
age as possible. ~..
Kahn says the concern is solvent
il let alone. That the large amount
of money which represents the differ
ence between the receipts and the
cash on hand has been expended IN
securing stockholders, who, he says,
are as much of an asset, though an
Intangible one as the right of way of
a railroad. But his creditors are not
willing, to leave the affairs of the com
pany to his management.
Such is brief outline of the course
of the Cash Buyers Union Founded
ON nothing more tangible than an idea
the idea of selling shares to the
general public and merchandise to
4 shareholders and anyone else who
would buy and fostered by nothing
+ more substantial than the flow of the
advertising mans English, it shot
spectacularly into the business sky
and as speetacularly burst.
What story does this affair teach
If it be not that the success Of such
businesses is built largely on the
( strength of printers ink and the
choice of words on advertising. r.,
5: Surely the experience of the Cash
Buyers Union would indicate clearly
that the mail order house has no ad-
vantage in natural business resources
over the combination of nanufactur.
er, jobber and retailer.
Does not the failure Of Mr.. Kahn's
z concern hammer home the truth that
it is not the bargain which the mail
order house offers which catches the
customer, but the manner in which
& that bargain is offered? John Jones
says: "a have lawn mower for sale
Tor IS which is worth S. And 1t is.
But Jones says it unattractively and
D in such a way that no one believes 1t
or remembers It. Montmorency
Woods catalogue house says: Just
4 look at my lawn mower Isn't it a
peach The steel A in those blades
was meant for 81 razors but It ii too
good, 50 have put II in my lawn
s mowers. And look at the landscapes
painted on that machine! Michael
Angelo swan across the styx this
morning prlrposeIy to do that lob for
8 me. And the wood In the handel.
We have an AFFIDAVIT from that wood
when II was a mere shrub out In the
Maine forests, swearing 1t would BE
careful 20 grow into extra strength If