Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-14
ECONOMY IS URGED
IN RETAIL FIELD
Credit Mems Official Reveals
Huge Losses Through Waste
in Distribution.
Special pispatch TO The Star.

Special Dispatch to The Star
DALLAS, Tex, May IA 1neflcient
distribution has cost the people of the
United States enough since the war to
pay Off the national debt, DR.. Stephen
I. Miller, executive manager of the Ma
tiopal Association of Credit Men, told
delegates to the annual convention of
the association here.
Bankruptcies have caused a loss Of
over $4,000 900 900 in the last decade,
and that represents only part of the
waste of inefficient distribution" DR..
Miller said.
Retail Stores Increase.
Retail stores have multiplied by
thousands, and the average life of these
stores has been short. There has been
a constant stream of men bringing their
small savings to the altar of merchan-
diSing ambition Without knowledge
of accounts, buying, advertising, mark
up, turnover, credits. collections and
service to customers, they have cut down
the average volume of business per
store, thereby increasing costs OF dis
tribution and prices to consumers.
Handicapped by the lack of business
understanding and strangled by compe-
tition, they have constituted an un-
broken business death march. The cost
to the public of being 'over-merchan-
dised,' added to the cost OF bankrupt
cies, has probably amounted to enough
during the years since the war to pay
off the national debt.
THE competition of chain stores has
undoubtedly hurried many retailer
into bankruptcy. On the other hand
the chains have introduced far-reachlng
economies, stimulated adaptation and
brought about greater cooperation be-
tween wholesaler and retailer.
1T might be well to bring to the
chain store enthusiast q warning taken
from the experience Of business admin
istration. Stretch out series Of busi-
ness uitS from East to West, from North
to South, and observe the naturalization
of economy as the system becomes COM
pick and far flung.
Retailing Is essentially service
The merchant Is host, the customer
guest. Success in store depends upon
consideration of detail and a human
equation closely bound up with owner
ship. The large-scale farmer has never
put the small farmer out of business.
I predict a profitable future for both
the farmer and the independent retailer
who observe the economies of the day"
Duty Of Credit Managers.
DR. Miller said that the responsibility
for screening out the ill-equipped and
inefficient retailers with no real chance
for success rests upon the credit man
ayers of manufacturers and wholesalers
who give them the credit backing nee
essary to establish their short-lived
stores He condemned the loose credit
practices resulting from competition
and the craze for volume.
mo nation is rich enough to carry an
annual bad debt loss of close to 81 ,000,-
000, 900" he said. when competition
takes the form of lax credit practices,
the resulting losses cannot be COM
puted merely in terms of dollars, for
wholesale reputation of obligations in
wolves a loss in national character and
integrity. If credit grantors continue to
set up weak and inefficient retailers,
they will slowly dim intsh the buying
power of the public though waste and
increased cost"