Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-11
INDUSTRY STUDIES
|. DISTRIBUTION COST
Merchants Plan Reduction in
Price of Products to
Consumer.

The Washington conferences which
have aroused so much interest and ac-
tivity throughout the country are being
followed up by thorough study, on the
part Of some Of the biggest business
men In the United States, of problems
Of distribution.
The Hoover conferences were largely
devoted to construction and to produce
ton. Problems of distribution did not
come actively even before the meeting
called by the Chamber Of Commerce Of
the United States, but some Of the men
who attended the latter conference have
taken the subject up in a most serious
way.
Mass Production.
They declare mass production has
been responsible for the greater part
of American prosperity, but they hold
that if that prosperity Is to Ee main
tanned it must be accomplished by mass
production. The only way there can be
mass production, they assert, Is to mar
row the range between the cost of
production and sale prices. Sales Of
sufficient volume to constitute mass dis
tribution, they add, can only be attained
through the stimulation of price reduc-
ton.
OOIAlC VI b1Ic' ldIBcSG HlcACIldA1Go LII
the United States are now debating the
ACCESSIBILITY of making an immediate
and comprehensive survey as a basis
for the establishment of such mass dis
tribution. This survey will not be one
of the laggard, perfunctory studies. 1t
will report finally within few months
and will have preliminary data, accord
ing to present plans, within few weeks.
One of the great merchants of the
country declared today that efficiency
in mass production had progressed in
some lines of industry almost as far a.
it Is possible. Further attempts to cur
tail expenses in production, he said,
might very easily lead to disaster. He
pointed to the fact that some Of the
railroads had cut their costs so low as
to make the result ineffective and that
they had been compelled to increase
their expenditures. On the other hand,
distribution seems to have stood still
for years.
Specific Instances.
He pointed to the fact that one could
take at random 10 articles of common
use bought regularly by nearly every
household and find that the cost to the
consumer represented an advance of at
least 100 per cent above the cost of
production and that in NEST instances
the range was between 200 and 800
per cent. In answer to queries as to
| whether these articles had to be picked
out specifically, he said that he might
instance necktieS.
He explained that many ties cost the
manufacturer rs cents each, that they
cost the merchant approximately 81
and that they were usually retailed at
81 IN the most expensive shops, $1.75
each In the great majority OF retail
| etc nj at in
sales retail establishments. This price,
he pointed out, meant a gain of 100
per cent above the cost to the manu-
facturerS.
Gov. Frank d. Roosevelt will hold a
conference in New York on December
IL with representatives Of the apparel
trades and retail organizations having
within their membership merchants
| from all over the country. This prob
lem of distribution is sure 10 come be-
fore this body, and retailers all over
| the country are watching for the result
in the hope of increasing their volume
of sales during the next three months.
Retailers Reserves.
The retailers are we'll fortified and
have piled up splendid reserves Of capt.
tai and surplus. So long as the public
can and will buy, they are confident
that they are in a safe position. They
have little doubt that the public can
buy, but there is some uncertainty as
to whether the public will be inclined
to buy as freely in the next few months
as before the present situation arose.
Consequently, anything that will stimu-
late volume of sales during the next
three months is regarded by the re-
| tailers as of the utmost importance.
Little anxiety Is felt with regard to
| the agricultural communities. There
are ample funds in the industrial COM
munities, and 1t is up to the retailer to
attract those funds to purchase in the
| lines he carries.