Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-12

BY the Associated Press.

II
Of the Department of Commerce.
Described as q new dawn" for the
| Nations business, the new methods Of
distribution cost and control which are
being advocated by the governmental
division are considered by economists
and students of business as one OF the
major contributing factors in the pres
| emit prosperous condition and efficiency
Of American industry. A quarter OF q
century ago the objective of this coun-
| try's industry was volume of production
J and this led to the gigantic industrial
, mechanism, known as mass produc-
ton" But the post-World War period
brought about an economic change and
with it was the need for coordination
and balance of business activities for the
elimination of the superfluous.
To bring about the desired co-ordi-
nation Herbert Hoover, while head OF
the Commerce Department, formulated
a program for the domestic commerce
division to attack the problem of dis
tribution because 1t was believed that
branch Of business had the greatest need
of efficiency. The division launched its
work to serve American business in Its
quest for q solution of the distribution
problem through two channels-one
economic surveys of each region Of the
country and second, analysis Of the costs
of distribution, methods Of controlling
them, and elimination Of wastes In this
field.
At present three Of the nine regional
New England and the Pacific South
west-have been surveyed by the divi-
sion, its director, Howard D. Dunn, said
today, to ascertain the buying power
and characteristics" Of its populations.
Surveys have been started in the Gulf
Southwestern, the Pacific Northwest
States and the Middle West, while no
work has yet been begun in the Gen.
trail Atlantic States and the Rocky
Mountain section. Dunn said that the
economic statistics and analyses Of the
buying power and desires of the inhabi-
tants of the respective sections would
be invaluable to industries In the distri-
button of their products. as it would
reduce efforts to sell undesirable prod
ucts In sections where there Is q poor
market for them.
Cost distribution analyses in two
lines Of wholesale Observation-Disclosures
and groceries-have been made by the
division and three more. dry goods,
plies, now are being prepared. These
analyses have shown, Dunn said, that
purchasing power and consumer pref
erences Of actual or potential customers
are not evenly distributed" The vast
majority of American businesses do not
ascertain ut present adequate informa-
ton about the goods being marketed,
he added, and what it costs to sell the
customer each item.
1.-THE modern American business" Mr..
Dunn continued, must pursue scien-
tiflc planning Of producing and selling
what the customer wants. This means
the analyses Of the sales turnover of
goods, the cost of selling them and the
ascertainment Of consumer wants." He
added that such analyses which have
been reduced to simplified form by his
divisions studies can eliminate from
wholesale and retail establishments
superduous goods.
Leading officials Of the Federal Coy
eminent, including Secretary Wilbur
and Director Smith of the Geological
Survey, are watching with keen inter-
est the recent developments toward oil
conservation.
Secretary Wilbur is very anxious to
see an efflcacious and adequate pro-
gram OF conservation Of the Nations
petroleum resources put into effect and
expressed the view that the present
stupendous volume Of production could
not last for. q decade" He says that
In view of the limited supply of oil
available in the Nation there must be
found uniform and effective method
OF eliminating preventable wastes In
the handling of oil supplies which
should be established immediately.
The recent developments Of interest
to the Federal Government officials
were the agreement Of Oklahoma pro-
ducers to curtail their daily production
by. lao geo barrels by q proration Of
output of the respective fields in that
State, taking effect on October IS. An
other was the law put in force by Cali
fornia providing that all oil producers
should first utilize commercially or pre-.
serve the gas from their wells before
commercial production Of oil can begin.
This statute. which Is now being tested
in the courts Of that State, was d.
rected to eliminate the waste Of natural
gas. The non-uSe Of gas from new oil
wells Is considered by the governmental
petroleum officials to be one of the
greatest wastes existing In the industry.
The Geological Survey has prepared q
plan TO conserve the gas by pumping 1t
back underground into input wells.
This not only conserves the gas for flu
ture use, but forces the oil out from
the well and lengthens the life Of the
petroleum deposit, according to the
survey officials.
The, United States is -eminently
the chief producer Of oil In the world
Director Smith Of the survey points out
but this nation is Consuming twice as
much petroleum as the rest Of the
world" He believes at present the
United States Is exhausting its
petroleum reserves at dangerous rate
and several times faster than the other
oil-producing nations. THE year 1925
has been a year of good resolutions for
conservation" DR.. Smith feels and he
Is understood to hold the expectation
that the oil industry and oil produce
ing States would put into effect ar
adequate program to curb the wastes OF
the product.
Meanwhile the Bureau of Standards
announced that 1t had completed the
formulation Of standards for various
grades Of fuel oil. The bureau pointed
has greatly improved oil burning equip
ment, there had been less attention
paid to the fuel burned. The new
standards are expected to result in more
| satisfactory use Of fuel oil, accordinf
to the bureaus experts.
The slot machine, so familiar to Amer
leans, may be the cause of nostalgis
to them in the future. According to the
officials Of the specialties division of
the Commerce Department, the COIN
| operated machine is being received with
great popularity in all sections of the
globe and American firms making them
nave recorded a go per cent increase In
the value Of such machines exported to
other countries during the second quar-.
ter of this year over the first three
months.
The South American business mar
apparently is fast adopting the ways OF
his business comrades of the United
States. Imports Of Office equipment and
typewriters, made in the United States,