Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1915-07-10
FED. COMMISSION
PLANS TO AID
BUSINESS MEN
Vice Chairman Of New Trade
Board Discusses Plans for Fu-
ture Work.
MAY DIVIDE COUNTY
INTO SEVERAL ZONES


man Edward N. Hurley of the Feders
Trade Commission, in a statement tt
day suggesting plans by which tn
commission may give constructiv
helk to American business, emphasi;
ed two methods which he considere
Of particular Importance.
lone of these" said Mr.. Hurley, j
his statement, lis to aid the bushes
men Of the country in obtaining tn
additional credits to which their bus
ness operations may entitle them. Th
second is to aid in establishing a stan
dard system of bookkeeping and cos
account. The two are interdepend
emit"
Country Into Zones.
The commission has in mind, Mr.
Hurley announced, dividing the coun
try into zones and maintaining il
each, experts in accounting, costs an(
manufacturing upon whom manufac
lures, merchants and business mer
may call for advice and assistance ir
establishing economies.
THE small manufacturer, the coun'
try storekeeper, and the retail mer
chant as a rule he said, do not get
all the banks credit that they ought
to receive, owing to the fact that they
are unable to present balance sheets
in accordance with good business
practice. These men are just as good
business ME in many respects, as
those Of larger operations. They
have brains, ability, knowledge of
their wares and Of their customers,
but they dc not speak the language
Of the banker in that they are not
able to present a statement showing
their true assets and liabilities.
Gould Get More.
"~Frequently a business nan with a
credit of a few hundred dollars at his
bank based wholly on personal
grounds, could, if he could produce a
reliable balanse sheet, readily obtain
several thousand dollars which would
enable him to expand his business
along sound lines. Failing to obtain
it, his business is limited and con
fined.
Bankers are in bushes to loan
money to business men, and recog-
nize' that loans made on balance
sheets that are sound are desirable
loans. The banker will welcome any
standard of statement that will per-
nit him easily to ascertain the exact
liabilities and assets Of his customer
Standard Forms.
1T is recognized that no one stan
dard form of accounting can be ap-
Piled to all classes Of business, and
that special forms must be. divised for
each group or class Of commerce and
industry. For example, the coal in
dustry. can use one standard system
Of accounting. Among others, the
country store and general store retail
er, the wholesale grocer. the boot and
shoe wholesaler, the boot and shoe re-
the drug store, the manufactur-
erer Of textiles, the manufacturer Of
machinery, the wholesale clothier, the
retail clothier, each must have his
own special system. But it is true
that a great many Of these forms
could be adapted for use in lines 9TH
er than those for which they are or
iginally arranged. as certain funda-
mental principles underlie the gener-
al structure Of accountancy and must
DO recognized by each group.
Selling Price.
"The fact must be admitted that in
to put a selling price on your
products you must, if you be a man
first know exactly what it
costs you to manufacture and sell
hem. When business was done on
I large percentage of profit this was
not SO essential. but in most lines of
industry today the large percentage
II profit has passed. We are working
On a smaller margin and we must alb
know what our goods cost.
Any old and out-of-date method Of ar
living at cost figures, without mar.
gins Of profit so close, must be elimi-
ut is a fact we'll understood among
business men that the general demon
alization in a large number of indus
:ries has been caused by firms who
cut prices, not knowing what their
goods actually cost to manufaucture;
and the cost Of selling, which is equal
important, is almost wholly lost
sight of.
Compulsory Methods.
Glow can the Federal Trade Com.
mission help cure these conditions?
BY no compulsory methods. The
has no power and no de.
sire to use such methods. But the
does hope to reach the
desired end by putting at the service
If the manufacturers and merchants
who have not had the experience or
advantages that larger firms possess,
he accountants, bookkeepers and ex-
in cost of production that are
employed by the Commission, and in
hat way to help strengthen American
Industries where they are weak.
These services will be rendered only
IN the request of the individual mer-
chant or manufacturer who desires
hem.
High Efficiency.
I'm European countries, manufac-
and merchants, aided by their
governments, have developed a high
state Of efficiency, which enables
hem to sell their goods in the mar
hets of the world. The Federal
Trade Commission desires to do what
It can to help bring the American
manufacturers and merchants on
equal terms with these foreign compe-
.itors in order that we may be able to
get and hold our chare Of foreign
.rade.