The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-09-25
URGES CLOSER
COOPERATION
IN INDUSTRY
Speaker Stresses Necessity Of
Coordinate Study of
Problems
CITES TRADE FALLAClES
Points TO Abatement of Can.
collation. Evil and Freak
Advertising

A broader, more comprehensive at
titude on the part OF business men
ot the nation mus, be brough; to the
study OF the great problems of dis
tribution and management which
confront American industry. John N.
Van der Nries. manager Of the north
central division of the United States
Chamber Of Commerce, said, speak
ing at the forum dinner sponsored
by the Bismarck association of COM
mcrce. last night.
Present. day industry is suffering
from an exaggerated individualism
which is the heritage Of the late
nineties, when American business
was marked by the most intense in
dividualiSm Of any nation in the
world, the speaker stated.
"A great many OF the fallaoies
which menace our present industrial
organization crept into industry at
that time," Van der Vries pointed
out preparatory to tracing the ten
denotes of the closing nineteenth
century to explain the business cris-
is OF 1920.
Among the most important causes
Of the 1920 collapse in prices as
stated by Van der Nries was the cam
collation. evil.
Cancellation Evil
"One OF the peculiar features Of
American business has been the fact
that 4 contract between manufac-
turer and wholesaler and whole
Saler and retailer is not entirely
binding" he declared
"As result Of this situation it
l.
tion could not keep up with the de-
mand for every kind of commodity
which followed the war, the retailer
placed orders with jobbers and man.
ufacturers for four times the amount
mand. The retailer relied on cancel
ling the order, if on delivery Of 20
per cent of the order, the demand
could he filled
Fictitious Demand
"As a result, there appeared on the
books Of manufacturers huge but
fictitious demand for commodities
which spurred on the postwar pro-
ductiOn period, and suddenly ended
in the collapse of prices and conse-
quent readjustment."
Freak advertising was cited by the
speaker as another instance of eX.
cessivc individualiSm which charac-
tcriZed prc-war industry.
"We had competitors stresSing in
their advertising every point of diff
ference imaginable and never once
referring to the common advantages
Of the product" he stated. "TOoth-
paste makers emphasized the tremen-
douS Importance Of u square eye in
the toothpaSte tube, or an unusual
variety of container, entirely over
looking the essential qualities Of the
product"
The war did much to standardze
production and to teach manufacture
ers to cooperate in educating the
public to the value of the product.
Standardize Production
"The toothpaste manufacturers got
together and advertised the impor-
tance Of clean teeth in building
health and the relation between bad
teeth and disease"
The late enthusiasm for new fac
teries in every community was touch
ed on by the sneaker.
"The nation today is studded with
mausoleums which were once fac
tories erected without a thought to-
ward proximity Of the market or
availability of raw material" Van
der Vries stated.
"There was a time when a chamber
of commerce would not consider it.
self an asset to the community with
out bringing new factory to town
every few weeks. That period has
passed and factories are now built
to accommodate the market and with
a view to the raw material supply
"A decentralization of industry is
taking place and factories are NOV
ing into smaller communities where
labor is cheaper and nearer to the
source of raw material supply"
Pointing out that more retailers
60 to the wall every year than farm
ers, Van der Vries stressed the ne
cessity of active cooperation among
local stores in meeting new forms
of competition direct-by-mail, and
manufact tn re rer1to-ronsumer methods
of business.
"The supreme court of the United
States has held that house-to-ho ouse
canvassing by the manufacturer is
legal" he asserted.
Referring to the railroad rate sit
uation, Van der Vries stated the
problem lies in tying up small roads
with large ones in such a manner
that uniform rates may be charged
for the same service.
without this combination, fair
rate for large trans-continental
road would mean insolvency for
great number of small roads and
large sections Of the nation would
be without railroad service. Con-
versely, a rate sufficient to main
tain small roads world mean huge
profit for the big roads,"
Fred l.. Conklin was toastmaster at
the dinner. Singing was conducted
by A. ]. Duemeland. Approximately
loo business men att ndnd the din.