Evening star., 1936-06-10
D. c. MEN HEARD
BY CONTROLLERS
Three Capital Department
Store Executives Speak
at Chicago Session.
BY EDWARD C. STONE.

Woodward IL LOthrop, washington
was one of the chief speakers before
the Mid-year Controllers Conference
this forenoon, on Reducing Operating
Expenses Through Collective Action ."
Two other Washington speakers have
also addressed the Chicago convention.
Harold S. Malone, controller OF the
Hecht Co, and Paul Nachtman. credit
sales manager of Palais Royal, Inc.
One of the most serious problems
which Washington store managers
and those everywhere face is that Jf
returned goods Mr.. Buete told the
convention. Many cities have been
conducting educational campaigns
similar to the one conducted in Wash
ington, using envelope and package
inserts, newspaper and radio advertis-
ing One feature of the Capital cam
paign differed from those in Other
cities. he said, assistance being given
by the District of Columbia Federation
of Women's Clubs. The federation
passed a resolution requesting stores
to place restrictions on the return of
merchandise as a means of curtailing
unnecessary expense which would
eventually be reflected in the cost of
merchandise to the consumer.
We believe our customers have be-
come returned goods conscious" he
said. They are using more care IN
their purchases. for the returns have
shown a decrease. We find. however
that we must keep these returned
goods regulations constantly before the
public We have also endeavored to
educate our own sales force to their
responsibility in the matter. as we
found that all too frequently customers
were encouraged to order things sent
out which could be returned if no.
wanted"
Addressing the Credit Management
Division. Paul NaChtman, of PalaiS
Royal, urged greater credit conscious
ness" and advocated more cordial
treatment of all customers looking for
credit. Substitute the smile for the
frown and the warmer greetings OF
cordiality for the polarized stare" he
suggested. He then offered "a sug
gestions for improving credit depart
ment service.
H. G. Malone controller at Hecht's.
made an outstanding address on
Payroll Accounting" declaring that
payroll budgets, both weekly and
monthly are as important as mer-
chandise budgets He cited a num-
ber of payroll methods which have
proved especially useful in the Wash
ington store.
SS3.I25,000 Issue Tomorrow.
Considerable interest was mani
tested in the financial district today
in the formal offering at 10014, eX-
pected tomorrow, Of \ S83,125,000
Federal Land Bank per cent con-
solidated bonds. due January l. 1856.
The bonds will be subjected to re-
demption on or after January /, l946.
Preferential consideration on sub
scriptions will be given to holders
of the Federal Land Bank Az bonds
which are to be retired on July /,
next, out of proceeds of this redemp-
tion. Bond men here believe this
offer will be generally accepted.
William I. Myers, governor of the
Farm Credit Administration, said
today that notice is going out now
for the calling of the Az bonds.
This represents the second and final
refunding of Federal Land Bank
bonds in 1886 Further refunding
Is expected early next year.
Wilson on Storage Board.
Charles F. Wilson, of the law firm
of Sherley. Faust & Wilson, has
been elected member of the board
of directors of the Fidelity Storage
Co. to fill the vacancy caused by
the death of his partner, Frederick
de c. Faust, who was also men,
ber of the board of the National
Metropolitan Bank.
Fidelity Storage directors also de-
clared the regular quarterly divi-
dend of So per share, to be paid on
July Is, next, President David B.
Karrick announced.
American Telephone stockholders
here were elated over the 50-cent
dividend voted yesterday by Western
Electric after a five-year interval
It will greatly strengthen American
Telephones regular 9 per cent divi
dend, as the Bell Company owns
90 per cent of the Western Electric
stock, and will receive about S3,000-
BOO. Holders of Virginian Railway
stock were pleased with the declara-
tion of $3.50 dividend on common in
place of So six months ago.
Service Charges Analysed.
Illustrating what can be done in
the way of eliminating service
charges on Improbable accounts"
through service charges on accounts
with small balances. John A. Hand,
Birmingham, Ala, controller of the
First National Bank, told the Amer
lean Institute of Banking National
Convention at Seattle what the ex-
perience of his institution has been
with 10000 small accounts.
After the service charge had been
IN effect short while" he said. "a
survey disclosed that approximately
5000 had increased balances, 1000
had closed out and we were charging
1900. The closed accounts averaged
to approximately $4,000 per month,
did not tell the whole story. After
the 1000 accounts closed we discon-
tinued several bookkeeping machines,
reduced the cost of supplies and were
able to make a substantial reduction
In personnel"
His analysis shows about the same
results as have been obtained here in
the Capital. The service charge has
been a revelation to bankers. Some
call it the most important step in
bank management in SO years. They
say they don't know what they would
have done without it during the de-
preston, with the demand for loans
80 light and so much money inactive
During the past year service charges
have taken care of the banks divi-
dends." one banker said today. The