Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-09-23
Distribution TO
SOLVE REDUCTION IN
HIGH COST OF LIVING
Expert Says This, Rather Than
Cheaper Production, %
Only Way.
SHOULD AID THE RETAILERS

ton rather than cheaper prouuctloh,
says Roger w. Babson In discussing
the business outlook.
Its strange how we concentrate on
saving the pennies and let the dollars
slip through our fingers. The offi-
cials OF every manufacturing company
in the country are hunting franticaliy
for new ways to cut down the cost OF
production. They lie awake nights
over a few cents an hour on labor, OF
an extra dollar or two on n ton OF coal
or any other factor which may AFFECT
the cost OF making this product. Oncs
the goods are made and out of the
factory their efforts cease. The job
OF getting their product TO the ulu-
mate consumer belongs TO someone
else.
"All OF us have become so engross-
ed with the problem Of cutting down
the cost OF production that we have let
distribution take care CT itself We
have saved millions at the bung but
we are losing millions at the spigot.
In the past fifty years the amount OF
goods produced in the United States
has increased probably ten times over.
The number of workers necessary to
produce those goods have increased
only about two and a half times. This
means that, owing to new machinery
and better methods, the average
worker today is able to turn out about
four times as much goods in eight
hours as the worker fifty years ago
did in ten or twelve hours. Allow for
the cost OF the machinery, fuel. ETC.,
and even then you find the average
unit producing cost today is less than
half Of what 1t used to be. In pro-
duction we have made wonderful
progress. because we have given most
of our thought and effort to il.
Turn to distribution and we find
no such progress. In fact, the per-
csntage cost OF distribution probably
has not been reduced at all. With
twice the production per worker we
should expect that the wages for a
days work would buy twice as much
goods as it used 10. IL distribution
had been improved as much as pro-
duction. a days wages would buy four
times as much as it did fifty years
ago. We all know that no such in
crease has taken place. In fact, It Is
debatable II the average family to-
day is even hall again as well OF as
IL used to be.
This does not mean that the retail
er or the jobber or the carrier are hog
ging the difference. 1t means to a
large extent that we have not develop
I'd our tastes % as to get the most
for our money. 1t means that We have
not educated the retailer and other
distributors to most efficient methods
OF handling merchandise. In short
we have not made the same progress
in distributing goods as we have in
their actual production.
We have been .devoting our efforts
to building better factories. to getting
q greater output from labor. to put
ting out more and better goods.
We have done very little towar,
the equally important problem Of get
ting those goods to the ultimate con
sumner. The government is spendinI
over 500, 600, 900 a year in research {,
help the manufacturers and farmer
but II has never even taken a censu
employed gathering information OF
the crops. Hundreds more are ex
perimenting in chemical research 70
means OF fighting pests and blight
which destroy crops, and instructin
the farmer in their use
Similar work is being done for tn
manufacturer to help him find NOR
eficient methods OF production. !
complete census CT manufacturers
taken every Eve years, which show
the number Of firms In each industr,
their production. costs and profit.
These things, OF course, cost none
but they are worth IL. They ar
largely responsible fer the fact tina
the United States stands head an
shoulders above any other countr
in the efficiency Of it's production. j
there any reason why we should nc
spend at least as much to help tn
retail distributor on whom we mus
depend to get those goods to us?
80 far most people have been con
tent to point to the growth OF tn
chain store and cooperative sellin
movements as indicating the shor,
the crying need of the hour is the
we Ill get behind the retailer an
help him. II his methods are wron
II In our misfortune and il is up I
the rest of US TO show him a bette
way. He sells at least IS per cent {
all the consumers goods bought i
the United States; he has more tina
4 million stores in the country ret
reDenting an investment OF billions {
collars; IN short, the individual r,
taller today is our main and Wit
artery CT distribution.
Many people thoughtlessly "a,
DO away with the individual retaile
Let the chain store or the co-operatiy
association take his place Anyor
who studies the problem, howeve
must realize the observation-disclosures
such q plan. Both the chain store an
the cooperative association are q
right, but would we care to Riye an
single organization q monopoly OF O,
distribution?
''Tnen there is another phase OF Il
retail situation for which you and I |,
consumers are to blanche truth
we have grown lazy. We want o,
goods brought to the door, we want
run charge accounts. we want to ha,
a wide variety Of styles and grades /,
goods to pick from. When our wiz,
select q pair OF shoes they insist upc
having twenty different lasts
choose from. When we buy suK,
We prefer to have it come in a past,
board box of the particular size whit
best suits our fancy; and SO {
throughout the line. But these thin,