Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-10
WASTE DISCUSSED
BY AID EXECUTIVES
Hoover to Be Main Speaker
at Associations Annual
Banquet Tonight.

Representatives of industries which
spend upward of half-billion dollars
annually in advertising, gathered here
this morning in the Wardman Park
Hotel in the twenty-tirst annual meet
ing of the Association of National Ad-
vertisers, Inc, to delve into the Nations
junk heap, represented by enormous
waste that goes into the distribution
of goods throughout the country.
With all of the heads of departments
Of the Bureau of Foreign and Domestic
Commerce of the Department of Com
merce at his back, providing him with
technical information, DR.. Frank M.
Surface, assistant director of the bu-
reau, conducted question and answer
bureau for the advertisers, going into
every phase of industrial distribution.
DR.. Surfaces forum followed the formal
opening of the convention with speeches
by Bernard Lichtenberg, president of
the association, and Robert P. Lamont,
the Secretary of Commerce.
Secretary Lamont's speech was a
short welcome to the approximately 400
executives from all kinds of business
who are gathered here for a three-d day
convention. The morning session, under
the direction of DR.. Surface. went into
large number of problems connected
with distribution of goods. DR.. Surface
and his associates in the Government
explained the progress now being made
In the compilation of data in the c.nsus
OF distribution conducted in connection
with the recent population census.
Annual Banquet Tonight
This afternoon the association Is
hearing Frederic A. Tilton, Third
Assistant Postmaster General, on the
subject, Should the Post ONCE Depart
ment Be Self-supporting: and What
Changes in the Present Rate Structure
Does the Department Recommend"
Tonight the annual banquet will be
held In the main ball room of the
Wardman Park Hotel, with President
Hoover the principal speaker. The ban
quet viii be presided over by MIR. Lich-
tenberg, and the other speaker on the
program viii be David Lawrence, pub
Usher of the United States Daily. Both
the Presidents and Mr. Lawrence's adj
dresses win be broadcast over nation
wide hook-p of the National Broad
casting Co..
Some of the more pressing matters
vitality affecting advertising and the
advertiser will be thrashed out during
the convention. One of these which
probably viii be taken up tomorrow will
be report prepared on data collected
throughout the past year on the rela-
tive cost per reader of advertising in
the morning newspapers, as compared
with afternoon papers.
Another vital problem of the adver-
Using business, the method recently
devised for checking results of radio
advertising. the first system to give
accurately the returns from that sort
of advertising. will be explained at a
closed session of the convention to-
morrow morning.
Association Head Speaks.
The vast field for elimination of waste
in distribution was pictured by Bernard
Lichtenberg, president OF the association
and vice president of the Alexander
Hamilton Institute. in welcoming adver-
Users representatives to the convention
at the opening session this morning.
Lichtenberg advocated the separation
of service" costs from the actual dis
tribution costs to give true picture of
the mounting efficiency of distribution.
He said, in part:
I'VE witness nothing but improve
ments in distribution methods. Market
data are abundant, transportation is
marvelously improved, store locations
are carefully selected, cooperative mar
keting and buying are effecting vast
economies. statesmen are carefully In
structed. packing and packaging pre-
vents pilfering and deterioration.
But, under the head of these mod
ern selling costs now come a multitude
Of services which we're not part of the
distribution costs few years ago, Your
automobile comes today fully equipped,
whereas few years ago you had to buy
separately all the equipment. The Serv-
ice station offers many conveniences,
bread comes in slices, meat in packages,
chickens in cans, apartments with re-
frigerators, houses with heaters, ice
cream with its individual freezing plant,
electric light with all sorts of service
Even the banks are putting services
under selling costs. They make your
will, counsel your investments, deliver
your pay rolls, give your children all
manner Of presents to induce them to
start savings accounts
My purpose is not to decry the in
crease of service in American business.
1t is this: That service costs be properly
allocated to separate account and that
they be not charged to distribution.
Me- Nnro1 t nnnl