The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-10-23
THE IND STRUCTIBLE ASSET
ny ROBERT FnorHINalIAM.

4 An Address D elivered Before til.
by ROBERT FROTHINGlIAM.
How often it5Jhappens in the quiet
conversation OF a private conference
that some inomentotis tru this, pertain
ing to business. are uttered for the
Z first time; principles that the tense
4 occasion ripens suddenly into words;
new points Of view that surprise us
by their unexpectedness, that force
that master us henccforth because WI.
cant escape them.
RecentlyI was a listener at such a
conference where eof these startling
soutbursts occurred.
A certain board OF directors OF an
industrial concern had invited a keen.
thoughtful advertising agent to con-
fer with them on the problem OF pub
lefty The president opened the ball
by saying to the specialist visitor:
Now we have come together to
pert advertising agent, on the qucs-
ton OF our advertising, IL we conclude
TODD any. We are ready for your
ypcech.''
II haven't any speech to make
replied the agent. II am not sure
that have any Views that Will In
terest you. But am interested In some
OF the things that you can tell me. )"
Then followed q series OF questions
by the agent: What is your acreage7
What Is your floor space? What did
your machinery cost, and what is its
depreciation? WAT Is your payroll?
Do you have trouble In getting labor?
What Is the attitude OF the trade
unions? Have you had strikes or
lockouts? How long have you been
at this business? How does your
product compare with that OF your
competitors? What Is your excuse
for making It? How do you stand
with the trade? What are your
troubles in transportation?
Two hours went by In crisp ques-
tons ana detailed answers. Then
came a pause. Ny friend, the agent,
remarked quietly:
you surely have q lot OF faith to
run this business on"
FAITH" exclaimed the president.
what do You mean7 You, as an
advertising man. are the faith-artist.
We run our business on facts and
tangible assets"
Il don't see 1t that way" replied
the advertising man. admit there
Is a highly Intelligent faith on the side
OF advertising. But you. in your BUST
ness as it is now run. have to have
lot more faith than do. See where
you are:
Here you have put million into
lhis plant. Here is your annual pay
roll. Here Is your depreciation. Hero
Is the amount OF product you must get
out each year. And what is all this
investment for? To sell your product
to the public. Unless you sell to the
rk.a tsu "a L., =
ment? But what Is your cinch on the
public? How sure are you that the
public will rescue you II you get into
trouble? Between you and the public
between the money sunk in this plant
and the goodwill of the purchasers.
there is heap OF uncertainty. II 1t
isn't money tightness and hard times,
1t may be strikes. II 1t isn't labor
troubles 1t may be the competition OF
the same product made more economi-
cally by another concern and sold at
lower cost. Or 1t may be that some
thing you do antagonizes the jobbers,
on whom you are wholly dependent
for the public don't know you.
How shifting and uncertain are
these conditions between your plant
and the consumer! Everything is cer-
tain except the selling and on that
you have no businesslike insurance.
Like many another concern In the
same condition you stand to lose any
year simply because you haven't an
absolutely secure thoroughfare to the
consumer.
Takes Lots OF Faith.
when your hold on the purchaser
Is as insecure as that, I say again, It
takes lots OF faith for you to keep
going. To be more exact. 1t takes lot
OF blind confidence which doesn't even
rise to the level Of intelligent faith.
For the one thing you absolutely need
the keystone to your arch-is an
insurance Of the public's goodwill.
But that insured goodwill OF tho
bigger public you haven't got. You
have the goodwill Of Your present
customers, based on the quality Of
your product. But II any Of the
troubles have mentioned should cut
the connection with your present lim-
tied public. where will you LAND? To
the bigger public you are unknown.
You have left the bigger public's in
terest and sympathy out of account.
Yet that bigger public's goodwill
toward you is the reserve you need.
Without It you are not insured. There,
In that general goodwill. Is the place
to invest for an indestructible asset.
To invest in the sure results OF human
nature is the only Intelligent faith
Need linger on the effect Of that
awakening talk? OF course. 1t con-.
WINGED and got actio- and that's all
there was to that. ! have related the
incident because 1t gives the start to-
what I want to say to you. II l ram
BILE around a bit more than my incisive
friend did shall come in at the same
place he left of.
The tndestructible asset OF an In.
dustria1 business is the goodwill
gained by publicity. That is my
route for this joy-rlde tonight.
But first. as wise men. let US be sure
the road is clear. We must agree,
So We will agree that the first asset,
and the most constant asset, Of an
Industrial business is that its product
must be 100 per cent. IN quality. Tt
must be as good as brains and skill
and honesty Of purpose can make it,
The excuse for. It's manufacture must
lie in its excellence. It must be so.
good thatsit can sell itself, even II not
advertised at all.
Also. the product must have sincere
men behind 1t. Personal honor must