Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-05

mas undcr way DrOao-Rauge STUDY OF
credit conditions and problems
throughout the Nation-a tremendously
vital factor in our present-day system
If distribution especially as to Install
lnent selling and credit extension.
In every problem it's case of get
ling the facts.
Following is the text of DR.. Julius
rSlein'S address:
1 deeply appreciate the opportunity
cfforded me by The Washington Evening
;;tar and the Columbia Broadcasting
Gystem to speak in this Radio Forum
u behalf of the Department of COM
Inerce. I am only sorry-and KnoW
hat you share my regret-that Secre-
larry Lamont has been regrettably I'M
BILE on account of illness to speak TO
YOU on this subject from the wide
range of his business experience.
I would like to discuss with you what
y perhaps the gravest aspect of the
Nations LvsineSs, namely, the urgent
reed for revitalizing the entire system
IF merchandise distribution in the
United States.
This problem is intimately related TO
fha welfare OF every one of us. Its
1lution involves directly the better
Ilent of every family budget in the
country. BY establishing greater eff
riency and economy in the conduct OF
Domestic trade. we are making your
collar buy more This, I think you
will agree. is decidedly worth while.
The high American standard OF
wing gives you your radios, your motor
2rs, your comfortables, your recrea-
.'ons and amuSementS. And what Is the
t-onomic groundwork of that living
:'andard? It has two corner stones.
.,ne of these is high wages for those
10 create the Nations wealth. The
4, her is low prices for consumers.
Buying Power Up.
The broader the spread between the
% the more solid is the pyramid Oh
IF economic well-being. This unprec-
Tented prosperity of ours is explain
',le largely by the fact that what
onomists call the real wage'-that
j.. buying power-has been increasing
ice 1922 at the rate OF Two ana one oi1e+
nth per cent a year. whereas IN tlaC
ne wholesale prices have been talllng
i; the rate of cne-tenth of one per cent
. wear. But from 1896 to 1913 real
pes increased only at the rate OF
99-half of one per cent year, whereas
,,olesale prices we're increasing TWO
ID one-third per cent year. Incre
y, have in one small packet OF status
s the nub of the whoe story OF our
,4oressiye advance since the war.
your real wages, OF course. are
assured by the amount OF goods tnaG
-, money in your pay envelope Will
-, To achieve national progress, in
material sense, we must make the
Lar blv more merchandise. Thdt
>. cessitates lower prices. And now can
ioes be lowered? Obviously. by e
cling the cost OF Cd making tne
> IDS and CD bringing them 10 you'
n reducing the cost of making tnem
>duction eficiency can still accom-
.sh much. but we cannot expect the
e-vance along that line to be as raplo
II dramatic henceforth. as 1t mas
IN in the past half-century.
Waste Exceeds $4,000, 100000.
Tn what direction shall we turn, then
;, order to reduce retail prices? we
st snread the line OF attack oy
.1tfng enemies that have received en-
-lv too little attention in the past.
IN the opinion of trained observers
~ economists, there Is not less Ilaan
to 10 billion dollars OF waste IN Ine
nduct of American business eEeiy
7r in both directions-exporIS anu
,oorts-ad nthere is ample reason
>, belive that the highest single pei,
,tage of this waste arises IN the helo
distribution.
THAT is I am convinced, the greatest
ne now before the industrial ano
11mercial community OF the country.
'7a efforts of our bushes machinery 70
,.7ke headway with the present compl-
-4ion of scientific mass production, on
- one hand, and our haphazard, ANU
.ated distribution, on the other, Is
a giant capacity truck trying 70 oe-
ar its load of up-to-date, ef11ciently
~oduced commodities by creeping along
- highway of commerce under the
wer of a "one-lung" motor OF the
1tage Of 1905.
4 savings represented in the load are
'--,geIv eaten up by the fragrant, waste
ii filtility of the distributive power.
distribution is motion applied TO
,,cterials" Gas it has been denneo by
80 distinguished authority, then Ger
'nly much needs to be done before
, can rightfully claim to be attaining
satisfactory degree OF prontaOie
>cration.
Waste Has Many Phases.
Precisely where, we may ask, do these
--stes occure, and what are tnen
uses? They arise from such things
excessive expenditures in sales, pro-
,--ative effort without adequate lnfor-
lotion as to prospects in a given
.--qrket. unwise credit methods, unfair
~actices of small trading minority,
efficient data as to national STOCKS
=, goods, disorderly marketing. partlc-
rrly Of perishables, with resulting
hts and famines, careless and 1nJu-
-ious procedure in the retail trade.
large sums are needleSsly consumed
o., unsystematic warehousing, In ex-
VACANT delivery services, in ill-1udged
vertising, in unwise installment
thods.
Great wastes exist also in the phys
Il movement of merchandise-ln
cking, handling and transportation.
r instance, it has been 1ouno that
DDS can be handled much more eco
nicallv through the use of skid
ltforms"-a device which assemblies
yes or other containers on movable
, ard or base This is utilized IN con-
notion with trucks or cranes and
IS away with the need for handling
IN individual package separately
! rect savings through the use OF Sucn
nple devices range from IS per cent
3, as high as go. 1t looks as II, Wltn
naturalization and interchangeablllty
might save ultimately anywhere
m 200 to 500 million dollars year
thus simplifying handling. And thai
merely one phase Of physical dlstrl-
.tion.
Bankruptcy Courts CIOgged.
We must determine the reason why
r bankruptcy courts are clogged with
tragic wrecks of retailers. In one
edium sized Middle Western cit!
grocery stores fail every month, In
living heavy losses, many OF which
uld be prevented, If watchful eyt
d been kept on some of these prevent
lie distribution wastes which l nave
nntioned.
The fundamental American philoso
" of lowering prices SO as to increas'
~nslmption. of mass turnover anC
r..nin,lm margin of proflt-thoSe prln