Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-10-25
COST-IGNORANCE
MEANS BUSINESS
FAILURE ALWAYS
Chairman Hurley Of Federal
Trade Commission Talks to i,
State Bankers. es
SUCCESS Is KNoWI,
Cut Throat Rival Not Only
Hurts Competition, But
Kills Himself.
COMING BANK LAWS

should have accurate, clear-cut ac-
counting systems, according to Ed
ward M Hurley, chairman of the
Federal Trade, commission. who
spoke to the delegates of the Ne
braska Bankers association in their
convention at the Hotel Fontenelle
yesterday afternoon. He even went
so far as to suggest to the bankers
that they make loan to business
houses conditional upon their estab-
fishing an accounting system that
will show their real costs and their
real financial condition.
Il think you ought to do this, not
simply for their sakes'," he said, "and
to protect your loans to them, but
to protect your loan to the man who
is sound, and to protect business as
a whole. For the man who does not
know his true costs is just the man
who prices his goods foolishly, and
thereby impairs the business of his
sound competitors at the same time
that he ruins his own.
Guesses Fatal.
Too low price e-making, based on
guesswork or on partial costs, is a
menace to sound business. The
menace is not in underselling for a
business concern must expect to face
the low prices that are due to eff
ficiency. But even the most efficient
concern is not always able to meet
cut-throat. prices based on ignorance
| u predict that within five years
there will be very little money loaned
by any banker in the United States
to any merchant or manufacturer
who does not present a statement
showing detailed information, not
only regarding his true assets and
liabilities, but also indicating that he
is conducting his business in an eff
ficient manner, and that he knows his
true costs"
S. M. FELTON,, president Of the Chi
cago Great Western Railway COM
pany, spoke on the effect of the au-
tomobile on railroad passenger traf-
fic. He developed the subject of the
competition the roads have had from
boat lines, from electric railways and
other sources, and said; But the
latest to appear in the field promises
to be more universal and trouble
some to deal with. No fixed rails
have to be laid and paid for to con-
tract its spheres Of operation. Any
one with Ford and the price of a
few gallons of gasoline in his jeans
can enter the lists with the most
costly twelve-car Pullman train in the
land. The whole vast continent af-
fords the field for his operations.
That Auto Parade.
"At point eight miles from the
city hall in Chicago these automo-
biles fit by for two hours, night and
morning, at the rate of 100 minute
at an average speed of twenty to
twenty-five miles an hour. Is it any
wonder that between parallel trolley
line and automobile competition, the
Chicago & Northwestern, which for
merly had monopoly of the Chi
cago north shore passenger traffic,
should see its average passenger
heightened from about twenty-seven
to thirty-five miles during the last
sixteen years?" ~
The fact that the railroads in 1916
contributed in taxes $152,000,000
toward the building of permanent
highways for the automobiles was a
point on which Mr.. FELTON, touched.
THAT does not strike the funny bone
of the railroad manager either" he
said. H.....
"On top Of the loss in passenger
traffic." he continued, comes sure
loss through motor truck competition
The radius of motor truck daily de-
livery is now we'll over thirty miles
and every mile of improved road the
railways help to lay adds to its length
and efficiency. In) England the rail
ways have met the competition by
going into the motor business them
selves.
| Helping Rivals.
"In Nebraska something over 3d.
900 automobiles are in use this year
and the railways paid nearly $2,-000,-
k000 in taxes to build roads for these
motors to operate; so you see we can.
not escape this competition. How we
will meet it has not yet been worked
out, and I confess the problem
stumps me-"
| The railway official told the bank.
efs the problem should interest them
as we'll as the railway men, as the
financing Of railroads new and old is
part of their business. ,"What are
you going to do to tighten the burden
imposed on your servants" he asked
President Peter w. Goebel OF the
! American Bankers association talked
briefly, urging the Nebraska banker.
to lift their membership in the
American association from the pres
ent 500 to 700 next year.
. The bankers attended the Orpheun
, theater in a body last night as tn,
guests Of the bankers OF Greater
Omaha.
Nearly 300 bankers are registered
for the convention.
| Amend Bank Law.
The state bank guarantee law needs