Your account is long past due, and, although we are

willing to do almost anything to accommodate our

customers, we feel that in your case the time for

concessions has passed. We desire your check at once

for the balance due us.

You are credited with using considerable money in your

business, and it would seem that you should without

difficulty be able to take care of amounts such as you

owe us. If we do not hear from you by April 1, we

shall send a second draft. If you permit this to be

returned unpaid, we shall be compelled to take action

to force collection. We wish to express the hope,

however, that you will not allow this to be done.

Yours truly,

=Exercise 231=

Letter (2) above is written primarily to get a check for the over-due

account and incidentally to get another order. Suppose that the customer

sends an order and no money. You do not wish to extend further credit

until the old balance is paid. Write a tactful letter, saying that you

will hold back the order until you receive a check to pay the over-due

account.

=Exercise 232=

Write the letters in the following transaction:

1. J. F. Brookmeyer, Peru, Ind., is a dealer in shoes.

He opened an account with you a month ago. He has

purchased shoes to the amount of $250. You rendered an

account on the first of the month, two weeks ago.

Write a letter saying that you do not carry over

accounts from month to month, as your small margin of

profit makes it impossible for you to carry an

irregular account. Make it a courteous sales letter as

well as a collection letter.

2. J. H. Brookmeyer sends a certified check for the

full amount, apologizing for the delay.

=Exercise 233=

1. John R. Phillips, 32 New York Building, Seattle,

Washington, owes you $470. Write him, saying that you

need the money. Give a good reason. Make it a

courteous, friendly letter.

2. Mr. Phillips has not answered (1). Write him again,

saying that if you do not get a remittance by ----,

you will draw on him at sight.

3. Your bank notifies you that your draft has been

returned unpaid. Write Phillips, asking for an

explanation. Say that unless you hear by ----, you

will bring suit.

4. Phillips writes an apologetic letter, giving

illness as the reason for his non-payment. He says he

was in the hospital and did not receive letters (1)

and (2). He encloses fifty dollars and promises to pay

at least half the balance next month, the full amount

within sixty days. Write his letter.

5. Accept this offer.

=Exercise 234--Answering Complaints=

1. A mail order house discovered that its files

contained the names of 10,000 people who had once been

customers but who had not bought anything for the last

two or three years. Write a letter in the name of the

manager frankly asking why the customer has stopped

buying. Advertise the stock.

2. One correspondent in reply demands a return of $16,

which he had paid for a coat that was "not worth a

cent." How would you reply to this letter so that the

one making the complaint would send in an order? Write

the letter.

In connection with this exercise study the following letter:

Dear Sir:

We wish to acknowledge your letter of April 16, in

which you say that on April 14 you received a bill for

five S & Q Railway bonds, which Mr. Wensley had sold

you on the 11th at 100 and interest; that you sent us

your check for the amount on the same day; and that on

the 16th, two days afterward, you received a letter

from us, offering a new block of these bonds at 99 and

interest.

This complication was brought about through a peculiar

chain of circumstances, an explanation of which, we

feel, is only just both to you and to us. When Mr.

Wensley came to the office on Saturday, the 12th, he

told us that he had your order for five of these bonds

at 100¼ and interest. The market price was then 100

and interest, and we were very glad to give you the

benefit of the more favorable price. At that time we

had no intimation that more of these bonds were

coming on the market. Quite unexpectedly on Monday we

received notice from our Boston office that they had

in view a new block of the bonds. Even at that time we

did not know definitely that we would get them. On

Tuesday, again quite unexpectedly, we were instructed

by our Boston office that the bonds had been secured

and were to be offered immediately at 99 and interest.

So suddenly did the entire transaction take place that

we were unable to prepare a new circular, and on

Tuesday night we merely sent out a letter, telling our

customers that we had an additional block of these

bonds. In fact, the new circular will not be ready

until about noon of to-morrow.

We realize that you should have been informed of the

new price. The bonds, however, came on the market so

quickly and in taking care of the details of the

offering we were so busy that the matter,

unfortunately, was overlooked. We are glad, therefore,

to make adjustment of the price now by having our

banking department send you our check for $50.

It is unnecessary for us to say, we presume, that we

regret this occurrence and to assure you that had we

known of the new bonds on Saturday we would have

advised you to hold off your purchase until the

offering was ready. We feel that you know us and the

policy of our house well enough to be sure that we

would not willfully take advantage of you in this way.

We trust that the arrangement that we have made

satisfactorily straightens out the matter.

Yours very truly,

=Exercise 235=

1. What is the advantage of the policy shown in the following suggestion

from _System_?

The manager of a retail establishment says: "We never

refuse to refund money. If a dissatisfied customer

returns a purchase, before we ask what the trouble is

we refund his money gladly. When he is free to walk

out of the store with his money, we try to find the

source of the trouble. Generally we can adjust the

difficulty and make a sale."

2. State the advantage in the policy of a large clothing concern which

follows the sale of every suit or overcoat with a letter to the

customer, asking him whether the purchase is proving satisfactory.

3. Write such a letter.

=Exercise 236=

1. Conrad H. Harwood of 122 Winter Street, Vandalia,

Ill., writes to Wilson, Black & Co., manufacturers of

shoes, 100 Second Street, Lynn, Mass., asking why they

are not sending his order of ---- (the goods ordered)

of ---- (date). He is losing sales because of the

delay. If the goods are not received before ----,

Harwood will cancel the order.

2. Wilson, Black & Co. acknowledge the receipt of

Harwood's letter and say that this is the first notice

they have received of such an order. The first letter

must have miscarried. They have shipped the goods. Be

very courteous.

=Exercise 237=

1. C. F. Gardner, a merchant of 432 Puyallup Ave.,

Tacoma, Wash., has received notice from the C.M. &

P.S.R.R. freight office that a box of goods has

arrived from Messrs. Fiske & Jones, Detroit, Mich.

Gardner ordered the goods a month ago. He writes

Messrs. Fiske & Jones that he refuses to accept the

goods because of the delay. He has bought elsewhere in

the meantime.

2. Fiske & Jones apologize for the delay and explain

that it was due to the unreliability of one of their

shipping clerks, who has since been discharged. They

had known nothing of the matter until Gardner's letter

of complaint arrived. They assure him that he will

never suffer another such inconvenience.

3. Fiske & Jones telegraph the C.M. & P.S.R.R. to

return the goods at Fiske & Jones's expense. Write the

telegram.

=Exercise 238--Letters of Application=

A letter of application usually has three parts. In writing such a

letter, first, tell where you saw the advertisement and apply for the

position; second, tell your qualifications and give your references;

third, end the letter appropriately, possibly asking for an interview.

This is a difficult kind of letter to write. Not only should it be neat

in appearance and clearly written, but it should also be so carefully

worded that it will show enough of the writer's individuality to

distinguish it from a form. Be neither hesitant nor bold, but tell your

qualifications in a simple, straightforward way.

Study the following letters. Are they convincing? Do they show the

personality of the writers, or are they mere forms?

1

Gentlemen:

Your advertisement in to-day's Record for a salesman

who knows the tea and coffee business interests me. I

should like you to consider my application for the

position.

Since my graduation from the Blank High School, four

years ago, I have been employed as salesman for the

Economy Wholesale Coffee Co., a firm doing business in

this city and its outlying districts. During these

four years I have gathered a wide knowledge of the

principles of the buying and selling of coffees and

teas and of the grades and blends of both, just the

training, it seems to me, that you wish to secure.

You may depend upon my taking an active interest in

your business, because I have an intense desire to

advance. I myself vouch for my honesty and

earnestness, and Mr. Robert Brown of the firm

mentioned above has assured me that he will supply you

with any information that you may wish as to my

character or ability. He endorses my desire to secure

a broader opportunity.

If the position that you have to offer is one in which

there is a real future for an energetic, capable man,

I should like to have an interview with you.

Yours very respectfully,

2

Dear Sir:

I am answering your advertisement in to-day's Record

for a clerk because I wish to get started in the

wholesale dry goods business, my idea being to work

into the sales department. If the position that you

advertise affords such an opportunity, I wish to apply

for it.

I have had a little experience in the retail dry goods

business, having worked as clerk for Mr. Amos Jones of

this city during the past two summers. What I have

seen and learned of the business makes me feel that I

have ability as a dry goods salesman. I shall be glad

to work hard in a clerical position if only I get a

chance to learn and to advance.

I am eighteen years of age and have just graduated

from the Blank High School, where I took the four-year

commercial course. This, as you know, includes

business arithmetic, bookkeeping, and some business

practice. During the last two years I was business

manager of the high school paper. This position gave

me considerable experience in handling details rapidly

and in soliciting advertising. It is this latter

experience that makes me feel that I would have

success in selling.

I am confident that I can please you, and I should be

grateful if you will grant me an interview. Mr. Amos

Jones, 815 E. 47th St., will be glad to give you any

information that you may wish as to my work, and if

you desire I can furnish other references.

Yours respectfully,

=Exercise 239=

Apply for the following positions:

1. OFFICE MAN--who can handle correspondence and

general office work for growing North side

manufacturing company. Good opportunity for the right

man. State experience and salary expected. Address A.

H. Stanton, 17 Elm St.

2. MAIL ORDER MAN--up-to-date, experienced; must have

ability and be capable of handling a large volume of

correspondence; must also be a pusher and

systematizer. In reply give references, age, and

detailed experience. Address X. W. 291 News.

3. AMBITIOUS YOUNG MEN--who are willing to start at

the bottom to learn steel and iron business; must be

high school or college graduates, or have equivalent

education, and furnish exceptional references; very

good opportunity for the future. Address A. F. 361

Times.

4. BRIGHT YOUNG MAN--for office work in large

manufacturing plant, Northwest side; must be neat,

quick, and accurate at figures. State age, experience,

and salary expected. Address J. F. Holtz & Co., 320 W.

Exchange St.

5. OFFICE CLERK--a girl who can write a plain, rapid,

legible hand; desirable, permanent position, and

excellent chance for advancement. Give age,

experience, if any, and where formerly employed.

Salary $6.00 to start. Address T. P. 514 Chronicle.

6. HELP WANTED--salesman having established trade on

rubber or leather footwear in Michigan, northern

Indiana, northwest Ohio, or eastern Wisconsin. Good

chance to become connected with live middle-western

jobbing house. Give late experience. Address G724 Boot

and Shoe Recorder, Boston, Mass.

=Exercise 240--Contract for Painting Iron Work=

1. James W. Walker & Co., 325 Second St., Pittsburgh,

are receiving bids for painting the iron work of the

bridge to be constructed over the Cheesequake Creek at

Morgan Station, New Brunswick, N. J. The Barnard

Emerson Co., of Harrisburg, Pa., write saying they

would like to figure on the work. They ask James W.

Walker & Co; to send plans and specifications. Write

the letter sent by the Barnard Emerson Co.

2. James W. Walker & Co. reply that they are sending

plans and specifications. They say that bids must be

in by March 10. Write the letter.

3. The Barnard Emerson Co. write that page two, line

four, of the specifications for the bridge to be

constructed (state in detail) reads "and paint all

beams underneath two coats of dark green," and page

four, line ten, reads "all upright beams above and

underneath to be painted two coats of light green

between shades three and four." They ask which is

correct. Write the letter. Be exact.

4. James W. Walker & Co. reply that page two, line

four, is correct. Explain in detail.

5. The Barnard Emerson Co. agree to do the work on

(repeat exactly what bridge you mean) for three

thousand dollars. They guarantee to finish the work by

April 30, according to the specifications. They will

forfeit fifty dollars for every day after that date

until the bridge is finished. Write the proposal or

bid.

6. James W. Walker & Co. write, saying that they

accept the bid above and that they enclose duplicate

contracts, one of which they have signed and which the

Barnard Emerson Co. is to keep. The other the Barnard

Emerson Co. is to sign and return to James W. Walker &

Co.

=Exercise 241--Contract for the Delivery of Property=

1. The Arlington Coal Company, Old Colony Building,

Chicago, Ill., write to the Red Rock Coal Company,

Auburn, Ill., saying that they need several cars of

egg coal per week throughout the year. They ask if the

Red Rock Coal Co. wish to offer some on contract. If

so, they must state how the coal is screened, and give

their lowest price. Write the letter.

2. The Red Rock Coal Co. reply that they will offer

egg coal for shipment at the rate of two cars per week

throughout the year, at $1.15 per net ton, cars f.o.b.

mines. If a contract were drawn up for three or more

cars per week, they would give the coal for $1.12½ per

net ton. They say their egg is an excellent steam

producing coal and gives general satisfaction. It is

shipped from the Red Rock mine via the Chicago & Alton

Railroad, freight rate being 82¢ per ton. Write the

letter.

3. The Arlington Coal Co. write that the Red Rock Coal

Co. may send a one year contract drawn in triplicate

for three cars of egg coal per week at $1.12½ per net

ton, cars f.o.b. mines. Of course it is understood

that the usual clauses regarding accidents or other

unavoidable happenings on either side will be

inserted. Write the letter.

=Exercise 242--Contract for Construction=

NEWS ITEM.--Bids will be received until Dec. 12 by the

Chairman of the Board of Public Works, North Bend,

Washington, for the construction of a solid concrete

bridge over the Snoqualmie River at North Bend; double

arch, with one pier in the river; span of arch 92

feet; width of bridge 50 feet. Plans may be had by

addressing the Chairman.

The McClaine Construction Co., of Spokane, Wash., send in a bid for

$25,000, guaranteeing to use Atlas Portland cement, crushed rock for the

coarse aggregate, and torpedo sand for the fine aggregate, the concrete

to be reinforced with the Kahn system of reinforcement as set forth in

the specifications. The company specify, further, that they shall be

paid extra for excavation, on the scale of 25¢ a yard for earth, 75¢ a

yard for loose rock and hard pan, and $1.00 a yard for solid rock. Write

the letter that they send.

=Exercise 243--Form Letters=

It frequently happens in business that you receive a number of letters

requiring practically the same answer. In such cases, the best plan is

to have one letter that is as good a letter of its kind as you can

write. Use that as an answer to all those to which it can be made to

apply. You may have to add a bit of information or change a word here

and there, but, practically, you are using the same form for all the

letters. When you have mastered the form, the answering of letters of

this class will be a simple matter. The letter accompanying a catalogue

may easily be a form. (See the second letter in Exercise 223.)

The danger, however, is that the use of form letters tends to make work

mechanical. When letters are different, they must receive different

replies. A form letter should never be used just because it is easy to

use when it does not really apply.

Mandel Bros., Chicago, Ill., announce their annual sale of silk

remnants. Make this a good advertisement that will reach several classes

of customers. Have in it as one item white wash silk of heavy quality,

36 inches wide, at 47 cents a yard.

1. Make out a sales letter for the above.

2. Several mail orders have been received in excess of

the supply. Make out a form letter that could be sent

when the money is returned. What is the advantage of a

form letter in this case?

=Exercise 244--Circular and Follow-up Letters=

There is a class of letters that usually originates in the advertising

department of a firm. They are not sent out to answer inquiries, but to

solicit new customers and to keep old ones. Such letters are printed in

large numbers in imitation of typewriting, and the introduction and the

salutation are afterward carefully filled in on the typewriter. The

intention, of course, is to make the recipient feel that he has received

a personal letter. Firms are generally careful to fill in the signature

in pen and ink. These are called _circular_ letters. (See the last

letter in Exercise 223.)

These letters are very important and each year more numerous. Frequently

a series of them is written, each one expanding one argument in a series

of arguments. If all the letters are read, one after the other, you have

a complete list of reasons why you should buy the particular article

which the letters advertise. These letters are sent out regularly, so

that the effect of one may not quite wear off before the next arrives.

It is frequently the case that not until the third or fourth letter is

sent out does any reply come. Such letters should be definitely planned

in order to present arguments that are true and attractive. They must be

simply and clearly written. They are called _follow-up_ letters.

The following series of follow-up letters was intended to be sent to

women who keep no maids. The series was planned to contain five letters.

Write two more, using different appeals from those in the letters here

given.

1

Dear Madam:

Do you remember the fairy tale of Little Two-Eyes?

A fairy, out of pity for the child's hunger, spread a

table before her each day as she was watching the goat

in the field, and when her appetite was satisfied all

the child had to say was, "Table clear yourself," and

the dishes magically disappeared.

"This is a beautiful way to keep house," was Two-Eyes'

verdict, and every woman, thinking of her own distaste

of dirty dishes, will agree.

"How I hate dishwashing!" You have said it hundreds of

times--after every meal, probably.

"I like to cook and bake," you declare. "They are

really interesting. There is fun in trying new

recipes--but the dishes!"

You enjoy giving luncheon and dinner parties. It is a

delightful way of meeting one's friends. Moreover, you

are justly proud of your skill in cooking, and you

like to show your beautiful china. But what a damper

it is on your spirit of good-fellowship, after the

guests are gone, to have to spend an hour or more

washing the dishes. Then you would like to say, with

the child in the story, "Dishes wash yourselves!"

Wouldn't you?

Well, you may. For thirty days--ninety meals--we will

put the Fairy Dishwasher in your home, without

charging you a penny.

The machine is simplicity itself. Wheel the cabinet

into your dining room, alongside your serving table,

and, as a course is finished, without rising from your

place, stack the dishes into the washer. When you have

finished the meal, wheel the cabinet into your

kitchen, make the connection, and turn the switch. In

a few minutes the dishes are washed and dried. Having

friends in to dinner is fun when the Fairy washes the

dishes.

Let the Fairy do yours. Simply return this letter to

us in the enclosed envelope, making sure that your

name and address are correct, and we'll send you the

Fairy. Use it three times a day for thirty days. Then

if you think you can get along as well without the

machine, all that you need to do is to send us a

postal card, telling us so. We'll take back the Fairy

and ask no questions.

But send to-day.

Yours very truly,

2

Dear Madam:

Did you ever envy another woman's smooth, white hands?

You looked at hers, and then you looked at yours; you

sighed and thought, "It's dishwashing."

But what can you do? Haven't you tried everything to

make dishwashing less drudgery? Haven't you tried

patent soaps and tepid water, only to find that the

dishes were not clean? Haven't you tried dish mops,

scrapers, and rubber gloves, only to find that the mop

and the scraper saved but one hand? As for rubber

gloves, as likely as not, the first time you used them

they were caught on the prong of a fork and were

thereafter useless. Yes, you've tried everything;

haven't you?

No, you haven't. You have not tried the only sure help

that there is. Stop your drudgery and let the Fairy

wash your dishes.

For thirty days--ninety trials--we will put the Fairy

Dishwasher in your home, absolutely free of charge,

guaranteed to wash and sterilize your dishes in

boiling water, without a touch of your hand.

Do your manicuring while the Fairy does the dishes.

Pay no money, but send the enclosed postal card

to-day. It will bring the Fairy at once.

Very truly yours,

3

Dear Madam:

An extra hour of leisure every day! What is it worth

to you?

Think what you could do if some one would give you an

extra hour of leisure every day. There's the book you

would like to read, the call you ought to make, the

embroidery you wish you could finish. There are the

thousand and one things that a housekeeper continually

wishes she could do--but where can she get the time?

And yet you waste at least an hour each day washing

dishes when the Fairy Dishwasher will not only save

you the time but rid you of a distasteful task. You

pay 16-2/3 cents a day for five months and the Fairy

does your dishes every day; you buy yourself an extra

hour every day,--you are an hour ahead every day for

the rest of your life.

Is it worth the price?

Remember that we allow you to use the Fairy for thirty

days--ninety meals--before you pay a penny. Then for

five months you send us five dollars a month, and we

guarantee that you will declare it the best

twenty-five dollars that you ever spent.

Send the enclosed postal card to-day. It will bring

the Fairy and a booklet of full directions.

Very truly yours,

=Exercise 245=

You have bought a big tract of land in Alabama. You wish to sell a part

uncleared, to set out a part in pecan trees, and to devote a part to

truck farms. Write three letters to the same man, making each one

stronger than the one before. Keep in mind the five essentials of a good

letter. (See page 230.)

1. Offer the uncleared land at a very low price. Offer

as many inducements as you can, such as desirability

of location, fertility of the soil, and comparison in

price with other land in the same neighborhood.

2. You received no response from (1). Try to sell the

section in which you are planting pecan trees. What

inducements could you offer that might reach a man who

was not affected by (1)?

3. You received no response from (1) or (2). Try to

sell a truck farm. What inducements could you offer

that might lead a man to buy a truck farm when he had

no interest in either uncleared land or pecan trees?

=Exercise 246=

1. The _Modern Magazine_ offers a set of Mark Twain's

complete works absolutely free if you subscribe for

one year for the _Modern Magazine_ and the _Household

Magazine_ at the regular price of $2 for the _Modern

Magazine_ and $1.50 for the _Household Magazine_. This

offer expires ---- (date). Write the letter.

2. You have not responded. The _Modern Magazine_ feels

that you could not have understood its offer. These

are no cheap books. To prove this, the firm is willing

to send you the books to allow you to examine them

before you send any money. If you accept them, pay the

express agent; if not, return the books at the expense

of the _Modern Magazine_. Remember that this offer

expires ---- (date).

3. You have not responded. The magazine extends the

time. Give a reason for the extension of the time.

What criticism can you make on (3)?

=Exercise 247=

A druggist was obliged to move from his corner store four doors east on

a side street. He decided to advertise by sending a series of follow-up

letters embodying the following ideas:

1. Change of location because ----.

2. Stick to your druggist because he holds the key to

your health.

3. What is the reason that my trade is staying with

me? (Prizes for the best answer.)

4. The reasons why trade stays with me--what my

patrons say.

5. The pure food question--why we must handle only

fresh drugs.

6. We are registered pharmacists--what this means to

you.

7. Why our sales expense is smaller now than

formerly--how you profit.

=Exercise 248=

A furniture house selling goods on monthly payments decides to advertise

by sending a series of follow-up letters, using the following reasons

why you should buy, one in each letter:

1. Variety of stock; assurance that they can please,

no matter what you wish. Amplify.

2. Reliability of the firm.

3. The small profit on which they run their business

gives you an excellent opportunity of buying good

values at low prices.

4. Buying on the "easy payment" plan enables you to

have the use of your furniture while you are still

paying for it.

Why is (4) a poor argument?

=Exercise 249=

Write a series of letters to sell an electric washing machine, using the

following items:

1. The machine is ball bearing; therefore very easy to

work. You can sit down while you do your week's

washing. The only work required is hanging the clothes

out of doors.

2. It saves laundry bills.

3. Summary of (1) and (2). The investment required is

not large. Special plans for payment.

4. The machine is durable.

5. Summary of the above. The following figures show

that during the time that has elapsed since (1) was

received the machine might have been paid for out of

the money spent for laundry bills.

PART III--BUSINESS PRACTICE

CHAPTER XVI

MANUFACTURE

THE following chapters will furnish exercises in composition, both oral

and written, based upon the various phases of business. They are

intended to show the application of the principles underlying

manufacturing, buying, and selling. Of course, we cannot expect to go

into great detail in any one of the divisions. That must be reserved for

future study, perhaps reserved until the time that you enter a

particular business. We must remember that our first consideration is

the study of English, the problem of clear-cut expression. Underlying

clear-cut expression is clear-cut thinking. It cannot be repeated too

often that without a definite thought there can be no definite wording

of the thought. To say, "I know, but I don't know how to tell it," shows

a lazy brain. Learn to exercise your thinking powers so that you can

force them to stay upon a subject until you have thought it out

carefully and can express it. All of the oral exercises in the following

chapters require careful preparation. This does not mean that they

should be written out before the recitation, but it does mean that they

must be carefully thought out. The preparation need not take a

particular form. The main thing is that you know exactly the points that

you wish to make before you begin to speak. If the exercise calls for a

paragraph, have clearly in mind the plan by which you expect to expand

your thought. Perhaps you expect to begin with, or to lead up to, a

topic sentence. Remember that this may be done in several ways. Choose

whichever plan seems best. If the exercise does not call for a

particular form, such as a paragraph or a debate, you are left free to

develop your thought in the way that you think fits your subject best

and to the length which you think it demands.

There are many different kinds of businesses. We shall not attempt to

consider any except the most common and fundamental. Some, like farming

or mining, consist in bringing forth certain products from the ground.

Such products are called raw materials, of which an example is wheat.

Some raw materials are sold and used unchanged, but most of them go

through the process of manufacture in order to be directly usable. The

miller is an example of a manufacturer, because from wheat he makes

flour. In this chapter we shall study the principles underlying

manufacture.

The exercises do not by any means exhaust the subject. Each one is to be

considered as a nucleus about which others are to be grouped. If you

live in a manufacturing district, other subjects will easily suggest

themselves. If you have studied Industrial History or Commercial

Geography, you probably have in mind a number of topics for discussion.

If you know but little about raw materials, read some of the books

suggested in Exercise 257. At all events let your work be definite.

Whatever statements you make be able to substantiate by an illustration

of something that you have seen or heard or read.

=Exercise 250--Manufacture=

Almost all the things we eat, wear, and use every day are manufactured

articles. Each one of them requires its own particular process in the

making, involving the necessity in most cases of complex and expensive

machinery, of expert workmen, and of still more expert management. Take,

for example, the shoes we wear, in the manufacture of which an amazing

number of complicated machines and of expert workmen is necessary.

According to the United States Department of Labor, men's rough shoes go

through eighty-four distinct processes performed by skilled workmen and

automatic machines. No less amazing is the amount of work turned out by

these machines. It has been estimated that the McKay machine, which

attaches the soles to the uppers, sews up in about one hour and a half

one hundred pairs, an amount which it would take ninety-eight hours, or

about eleven whole working days, to sew by hand.

Each manufacturing business has peculiarities, machinery, methods, and

even a language of its own; sometimes men must spend years in the study

of the technicalities of certain manufacturing businesses before they

become expert in them. It is evident that we cannot take up any one of

them here except in so far as the principles of one apply to all, and

these can be set down only very briefly.

The first essential to successful manufacturing is correct buying. In

fact, in some businesses this is so essential that the buyer gets a

larger salary than the manager himself. We can see the reason for this

when we consider that a good buyer must understand not only the

materials that he buys, but also the manufacturing processes, so that,

knowing the process through which the raw materials will go in his

particular business, he will buy those materials that will make the most

profitable manufactured articles.

The next essential, and in most cases the most important one from the

manufacturing standpoint, is a management capable of producing the best

product at the least cost. The managers decide what shall be produced

and how; they hire the workmen and decide what each shall do; they

decide what shall be done by hand and what by machinery; and they choose

the machines. Sometimes they go even so far as to determine exactly the

method in which each task shall be done, and whenever they see that it

would be advantageous to install a machine, they do so. Pursuing this

policy, a Chicago yeast concern not long ago put in three machines for

wrapping the small yeast cakes, eliminating the services of 140 girls

and cutting the cost of wrapping to three-fifths of what it had been. In

the steel business the early success of Andrew Carnegie and the famous

Bill Jones was largely due to the fact that on several occasions they

did not hesitate to break up half a million dollars' worth of machinery

and replace it with newer and more efficient kinds.

The third essential to manufacturing success is aggressive marketing of

the product. From the standpoint of money success this is probably the

most important consideration; so important is it, in fact, that it will

be more fully discussed in the chapter following.

=Exercise 251--Manufactured Articles=

_Oral_

1. Define the word _industry_. When is a business

called an industry? (Consult an unabridged

dictionary.)

2. _a._ Name several raw materials.

_b._ Name some industries whose business it is to

produce raw materials.

3. Name some companies or industries whose business it

is, or whose principal function it is, to manufacture

from raw materials.

4. Name some companies or groups of companies that

make articles more useful by transporting them to

places where they are needed.

5. Name some wholesale houses. In what does their

business consist?

6. Name several kinds of retail businesses. In what

does their business consist?

7. Name some companies that manufacture only one

article.

8. Name some companies that manufacture more than one

article, but all of the same class. This is the

largest group.

9. Name some companies that manufacture several

different kinds of articles.

10. Name some companies which, in manufacturing one

product, make a secondary or by-product.

11. Name a number of by-products and what they are

by-products of.

_Oral or Written_

In each of the following emphasize the labor involved, not the machinery

used; prepare outlines:

1. Select any manufactured article that you have seen

on a grocer's shelves, and trace it through (2), (3),

(4), (5), and (6) above, from the raw material until

the product is in the housekeeper's hands. If possible

make your information exact by visiting a factory in

which the article is made. The information contained

in advertisements of well-known articles may help you.

2. Trace the labor that is necessary to put a loaf of

bread on the table.

3. Trace the changes that the mineral undergoes to be

suitable for the making of edged tools, such as knives

or axes.

4. Trace the changes that cotton must undergo before

it is suitable for wearing as a dress or a pair of

stockings.

5. Trace the changes that wool undergoes before it can

be worn as a sweater or a winter coat.

6. Trace the changes that the skins of animals undergo

before they can be worn as a muff.

7. Trace the changes that silk undergoes before it can

be worn as a neck-tie.

8. Trace the changes that hemp undergoes before it can

be used as a rope.

9. Trace the changes that hides undergo before they

can be worn as shoes.

10. Trace wood from the tree to a piece of fine

furniture or to the case of a musical instrument.

11. Trace the steps in the process of making maple

sugar.

12. Trace the steps in making a piece of glazed

pottery.

13. Trace clay to bricks.

14. Trace flax to a tablecloth.

15. Trace the steps necessary to make a five dollar

gold piece.

=Exercise 252=

Subjects for Themes, Oral or Written

The following are suggestions for theme subjects on manufacture. Develop

one or more as the teacher directs.

1. Household uses for asbestos.

2. Making turpentine from wood.

3. A convenient electrical device.

4. The advantages of the fireless cooker.

5. The advantages of concrete as a building material.

6. The way to make a plaster cast.

7. How iron castings are made.

8. Artificial flowers from feathers, paper, or cloth.

9. How a suction sweeper works.

10. The safety match.

11. The uses of wood pulp.

12. Patent roofing.

13. The manufacture of plate glass.

14. Utilizing cotton seed.

15. The advantages and the disadvantages of using baking powder.

=Exercise 253=

Suggestions for Debates

1. The average young man has a better chance to

succeed in business than in a profession.

2. A manufacturing business offers a better

opportunity for a young man at the present time than a

mercantile business.

3. Manufacturing industries would suffer if

immigration were restricted.

4. The labor union should be abolished.

5. The labor union has no right to restrict the number

of apprentices.

6. The profit-sharing plan produces greater efficiency

in the working-force.

=Exercise 254=

Imagine that you are Stanley M. Benner, 171 South St., Buffalo, N. Y.,

proprietor of a factory making men's shirts and collars.

1. Write an order to The American Printing Mill, 1038

Canal St., Passaic, N. J., for several bolts each of

percale, madras, corded madras, and silk striped

madras. Use catalogue numbers.

2. Write another order to The Trescott Silk Mill, 976

River St., Paterson, N. J., for several bolts each of

No. 62, No. 14, and No. 20 shirting silks, No. 62

being a striped silk and the others figured. Be

definite in ordering the colors that you wish.

3. You have received an order from Spencer & Mitchell,

1925 Pearl St., Albany, N. Y. Write a letter, thanking

them for the order and explaining when and how the

goods will be sent.

4. You have received an order from William F. Atwood,

590 Jackson St., Wilmington, Del., for a certain style

of collar on which there has been a run. Write a

letter, explaining that it will take about three weeks

to fill the orders that you now have for this collar

and that you therefore cannot send Mr. Atwood's goods

before the end of the month.

5. The goods have arrived from The Trescott Silk Mill.

You find, however, that two bolts of No. 14 are badly

soiled. Write a letter, saying that you are returning

the bolts and asking to have the matter adjusted.

6. A. W. Trescott, President of The Trescott Silk

Mill, replies, expressing regret that the goods were

soiled and saying that two clean bolts of No. 14 are

being sent at once. Write his letter.

7. You have on hand about 50 gross men's striped

madras collars, for which there is no longer a call.

Write to Markham Bros., wholesale jobbers, 1765

Greenwich St., New York City, asking what price they

will offer for the lot.

8. Accept their offer of $1.50 a gross for the

collars.

9. A customer sends a cash order for goods at last

year's prices, 10% below present prices. Write a

politic reply.

10. Owing to the mildness of the winter, you fear that

you will not sell your stock of men's flannel shirts.

Write a circular letter, offering the shirts in lots

of 25 dozen each, assorted sizes and colors, at a 35%

reduction in price. Address one letter to. Frederick

H. Howard, a dealer at 775 Cedar St., Harrisburg, Pa.

11. A teamsters' strike has delayed your shipments.

You have received so many complaints of the

non-arrival of goods that you decide to prepare a form

letter that will answer all the complaints. Address

one letter to William A. Spaulding, 2937 Waterman St.,

Providence, R. I.

12. Miss Sarah MacComb has a small dry goods store in

Norwich, Conn. She has owed you $125 for six months.

You have been lenient with Miss MacComb because you

know that she has had difficulty in meeting her bills.

However, you feel that she should pay at least a part

of her indebtedness to you. Write a courteous letter,

longer and more persuasive than if it were to go to a

man, demanding payment but retaining the customer's

good will. This is a difficult letter to write.

Prepare it carefully.

=Exercise 255=

1. You have been manager of the Forsyth Furniture Co.,

Grand Rapids, Mich. You have financial backing for

$25,000 and are looking for a location for a factory

of your own. Write the same letter to the Secretary of

the Chamber of Commerce of Great Falls, Mont.;

Memphis, Tenn.; Houston, Texas; Indianapolis, Ind. Ask

the Secretary to tell you the prospects for such a

factory in his city, and what inducements the city

will offer you. (By writing to different cities, the

teacher can obtain their booklets and their special

offers to manufacturers.)

2. Investigate the conditions in one of the cities

mentioned above and reproduce the letter that the

Secretary wrote.

3. Of the four cities, Great Falls appeals to you as

the best location for your factory. Write again,

asking the Secretary especially about the water power

facilities offered and the rates charged for

electrical power.

4. He replies that Great Falls has the most extensive

power in the United States, the hydro-electric power

being ready for delivery in any quantity at

exceptionally low rates. He tells of the many

factories that are already located in Great Falls

because of its water power facilities.

5. Great Falls is your choice. After your factory is

built and your machinery installed, write to the

Secretary of the Sand Point Lumber Co., Sand Point,

Idaho, asking him to submit figures for a contract for

supplying all your fir lumber. Tell him you think you

will use about a million board feet a year.

6. The Secretary replies, offering you a contract on

the following terms: For all amounts under 250,000

feet a year, a rate of 12 cents a foot; under 500,000,

11 cents; over 500,000, 10 cents. All goods are to be

billed at the highest rate and rebates made at the end

of the year, terms of payment being 90 days, 5% for 30

days.

7. Write to the Central American Supply Co.,

Tehuantepec, Mexico, ordering 50,000 feet No. 1

Mahogany Veneer. Have it charged to your account,

which you have previously opened.

8. Write to Gregory Bros., wholesale dry goods

merchants, 12141 Nicollet Ave., Minneapolis, Minn.,

ordering 15 bolts No. 7 Green Denim; 10 bolts No. 09

Green Panne Velvet; 50 yds. No. 216 Tapestry; 50 yds.

No. 16 Tapestry; 100 bolts Green and 100 bolts Brown

No. 5 Guimpe. Instruct them to ship the goods at once

and draw on you at sight through the First National

Bank of Great Falls. (See page 344.)

9. Write to the Excelsior Varnish Co., Merchants'

National Bank Building, St. Paul, Minn., ordering

articles such as varnish, stains, oils, enamels, and

finishing wax.

10. Write an order to a St. Louis firm for leather.

11. Write an order to a Spokane firm for springs.

12. Find out where a Great Falls merchant would buy

oak and birch, and write an order for each.

13. Write to the Hanover National Bank of New York

City (because you happen to know the cashier of that

bank), explaining that you are having a very decided

increase in your business and that, in order to take

care of the demand, you require a loan of $10,000.

Explain further that the rates are too high in Great

Falls for you to take a loan there. Say that you are

enclosing a statement of your assets and liabilities.

14. A dealer in Portland, Ore., writes, complaining

that he has not yet received the goods that he ordered

ten days ago. Write an appropriate reply.

15. You receive an order, one item of which is 3 doz.

oil mops, which you do not carry. Reply that you have

referred the matter to ---- a firm which you can

recommend highly.

=Exercise 256=

Topics for Investigation and Discussion

Principles involved in manufacture:

1. The location of a factory.

_a._ Where necessary raw materials can be obtained easily and cheaply.

_b._ Where land is not expensive.

_c._ Where the coal or water supply will make power inexpensive.

_d._ Where transportation facilities are good.

2. The advantages of using machinery in manufacture.

_a._ Relative amount of work turned out.

_b._ Relative cost of work turned out.

_c._ Relative cleanliness of work turned out.

_d._ Relative uniformity of work turned out.

3. The number of working hours.

Some factories have made the experiment of reducing

the number of working hours from ten to eight without

reducing the wages of the workers. They have found

that the quantity of work turned out is increased and

the quality improved. Can you explain why?

4. The advantages of the profit-sharing plan, both for employer and for

employee.

This is a plan by which a certain per cent of the

profits of the business is divided annually among the

employees. (See a very interesting article in _System_

for March, 1911, or read _Profit-sharing between

Employer and Employee_ by N. P. Gilman.)

5. Specialized labor.

There was a time when a man made all the parts of a

pair of shoes. Why in modern factories does he make

only one part? Which system tends to make shoes of

uniform workmanship? Is uniformity a good quality in

manufacture? This principle applies to any kind of

factory.

6. Special products.

Suppose that you manufactured a large number of styles

of millinery, or novelty, footwear. Would you expect

your profits on these to be larger or smaller than on

your staple styles? Give reasons and illustrations.

7. Why is there a struggle between labor and capital?

8. What is the cause of strikes?

9. Are strikes a good thing for manufacture?

10. A visit to a shoe factory (or any other factory).

=Exercise 257=

Books that will Suggest Topics for Talks

If you have access to a public library, you can probably obtain some of

the following books. They are all simple and interesting, and any of

them will suggest several topics for talks.

ALLEN, N. B., Industrial Studies.

BAKER, R. S., Boys' Books of Inventions.

BARNARD, CHARLES, Tools and Machines.

CARPENTER, F. G., How the World is Fed; How the World

is Clothed; How the World is Housed; Geographical

Readers.

CHAMBERLAIN, J. F., How We are Fed; How We are

Clothed.

CHASE, A. and CLOW, E., Stories of Industries (two

volumes).

COCHRANE, C. H., The Wonders of Modern Mechanism.

COCHRANE, ROBERT, Romance of Industry and Invention.

DOUBLEDAY, RUSSELL, Stories of Invention.

FORMAN, S. E., Useful Inventions.

GIBSON, C. R., The Romance of Modern Manufacture.

LANE, M. A. L., Industries of To-day.

LITTLE CHRONICLE CO., Industries of a Great City.

MOWRY, W. A. and MOWRY, A. M., Inventions and

Inventors.

PARTON, J., Captains of Industry (two series).

ROCHELEAU, W. F., Products of the Soil; Minerals;

Manufactures.

TOWLE, G. M., Heroes and Martyrs of Invention.

WILLIAMS, A., How it is Made.

=Exercise 258=

Study the punctuation of the following; then write from dictation:

1

It is stated that practical experience with gas

mantles made of artificial silk--that is, silk made

from wood pulp--has proved them to be far superior to

those made of cotton, especially where the mantles are

exposed to excessive vibration. Several German towns

are said to be obtaining exceptionally good results

from these new mantles used in conjunction with

pressure gas, and it is asserted that the mantles are

in good condition after being used for seven or eight

weeks. Artificial silk, according to reports, has also

been used experimentally by several manufacturers of

incandescent gas mantles in the United Kingdom. The

reports are all very encouraging, except that there

seems to be one difficulty that is purely

mechanical--the knitting of the artificial silk. The

knots and other imperfections in the yarn cause a

considerable amount of waste. However, the

knitting-machine makers are experimenting to overcome

it.--_Daily Consular and Trade Report._

2

As the production of wool in this country, although

approximating 320,000,000 pounds a year, does not

begin to meet the demands for the raw material, there

is a yearly importation of from 156,000,000 to over

300,000,000 pounds. When each new census reveals the

fact that there are fewer sheep of shearing age in the

country than there were ten years before, the question

of wool production becomes one of still greater

importance. A solution may be found in a Peruvian

product. A variety of cotton grows in Peru whose long,

rough, crinkly fiber mixes so readily with wool that

manufacturers use it in connection with wool in

manufacturing "all wool" goods. It grows on a small

tree that yields two or three crops a year for seven

or eight years. The area, however, in which it is

being successfully cultivated in Peru is so limited

that the annual output is only about 16,000,000

pounds, of which the United States takes approximately

5,500,000 pounds. As the region in which it thrives is

practically rainless, perhaps a way may be found to

persuade the rough Peruvian to make a home for itself

in the hot and arid regions of our Southwest. It would

be a triumph of agriculture, certainly, to raise

vegetable wool in regions not fitted for real

sheep.--_The Wall Street Journal._

3

THE CASTING OF METALS

As is well known, some metals are unsuitable for

casting, while others, like iron, can readily be cast

into any desired shape. The property of casting well,

it is said, depends upon whether the metal contracts

or expands in solidifying from the liquid form. Iron,

like water, expands in solidifying, and hence the

solid metal may be seen floating in the liquid iron

about it. The expansion causes it to fill the die into

which it is poured, and so it can be cast easily. Gold

and silver contract in cooling, and are, therefore,

not suitable for casting.--_Harper's Weekly._

CHAPTER XVII

DISTRIBUTION

CORRECT buying and the most efficient methods of manufacture play a

large part in the successful carrying on of a business, but the most

important consideration is the successful marketing or distributing of

the product after it has been manufactured or bought. Very few products

are so superior in quality that they sell themselves purely on merit.

Competition in business to-day is so keen that, in order to find a

market for his product, a merchant must create a demand for it. Thus at

its very foundation, distribution is merely a process of creating a

demand and then filling that demand. For instance, the retail merchant

is concerned with bringing the customers to his store rather than to his

competitor's across the street. The wholesale merchant is concerned with

having the retailers handle his goods rather than those of another firm.

The mail order merchant is concerned with getting the farmer's business

before some other dealer gets it. The salesman is concerned with writing

the order before a rival from another house writes it.

In the first place, the merchant must handle those things that his

customers consider necessary or desirable. Overcoats cannot be sold in

August, ashsifters on the equator, nor electric fans in Iceland.

Different peoples, different times, and different conditions create

different demands, and it is the merchant's business to study those

demands and to fill them. In the second place, he must leave no stone

unturned in endeavoring to make his product more desirable than that of

his competitors. This may mean extensive advertising campaigns,

expensive displays, outlay for costly catalogues and booklets, the

expenditure of money for inducements to bring customers, or the hiring

of expert salesmen. In fact, thousands of plans are carried out every

year in this endeavor to increase trade.

The getting of new and additional business, however, is only one of the

important considerations that the merchant must always have in mind. He

must also keep what business he already has by maintaining the standard

of his goods and by giving his customers satisfactory service. One of

the first essentials in this question of service is promptness and

exactness of delivery. In this the merchant must depend very largely on

the transportation companies, and therefore a brief study of these

facilities will be especially in place at this point.

Transportation

Transportation is an essential item in the problem of distribution. If

you wished to drink a cup of coffee and found that none could be had

except in Brazil, you would begin to realize how much the steamship

company and the railroad company have done in transporting and hauling

it where you might buy it. The same is true of our oranges from

California and Florida, our apples from Washington and Oregon, and our

grain from the Middle States. In fact, in the case of many products the

most important item is not growing them, but bringing them to market,

since the transportation charges are often much greater than the actual

cost of producing. Thousands of barrels of apples rot on the ground

every year because their quality does not warrant the high

transportation charges, the lack of transportation rendering them

useless. In a smaller measure, the delivery wagons in our cities and

towns are essential to us because they save us the trouble of carrying

our purchases about. Thus, the element of transportation enters into our

lives every day, saving us inconvenience, bringing to us necessities

that we demand and luxuries that we like, and, at the same time,

increasing the price of commodities.

Common carriers, as transportation companies are called, are of two

general classes:

1. Those operating on water--the steamship companies.

2. Those operating on land--the railroad companies.

THE STEAMSHIP COMPANY

Steamship companies operate three general kinds of lines: (1) lines

consisting of the largest and fastest steamers which carry only

passengers, mail, and valuable parcels; (2) lines using slower steamers

which carry both passengers and freight; and (3) lines employing

vessels--steamers, sailing vessels, and barges--which carry only

freight. The cost of hauling cargoes by water is in every case less per

mile than that of carrying the same quantity of goods on land. It costs,

for example, over four times as much to carry a bushel of wheat from

Chicago to New York by rail as it does to carry it across the Atlantic.

It is for this very reason that the traffic on our navigable rivers, the

Ohio and the Mississippi, and on the Great Lakes is so heavy. Whenever a

cargo can be shipped as well by water as by rail and there is no hurry

for delivery, it is shipped by water. However, because so much of our

freight must be rushed from place to place, the railroads get the bulk

of the inland traffic.

THE RAILROAD COMPANY

The services of the railroad company embrace the hauling of freight, the

carrying of passengers, and the transporting of express and of mail. The

hauling of freight is the most important item in the railroad business,

about three-quarters of the total income being derived from this source.

Each year over one billion tons of freight are turned over by shippers

to the railroads, who use almost two and one-half million freight cars

to carry it. About one-half of this tonnage is minerals, mainly ore and

coal; about one-seventh consists of manufactured articles; and

one-twelfth of agricultural products. Commodities are grouped into from

ten to fourteen classes, on each one of which the freight rate is

different from that of the others. By freight rate is meant the cost of

shipping a certain unit, usually 100 pounds or a ton, from one place to

another; it is dependent on the distance. There are certain bulky

commodities like coal, livestock, lumber, grain, and cement, which are

almost always handled in carload lots. They are not included in the

freight classification, but have a special ex-class freight rate.

Freight rates depend also on whether the goods are shipped by slow or

_local_ freight or by fast or _through_ freight.

There are a hundred different kinds of papers used in carrying on the

railroad freight business. Only four of the most important will be

considered here. When a shipper turns over his goods to the railroad

company at its freight depot, he gets from the agent a _receipt for

freight_, which is merely a receipt for the goods he has turned over. In

the ordinary course of business these receipts are exchanged at the

company's office for a _bill of lading_ in triplicate. The original and

one copy are given to the shipper. The second copy is kept by the

railroad. This bill of lading may be of two kinds, _straight_ or

_order_. If a straight bill of lading is given, the original is sent to

the person to whom the goods are shipped, who is called the _consignee_,

who on the presentation of the bill of lading is entitled to the goods

after paying the charges. An order bill of lading is much like a check,

in that it can be assigned to another person. Like the straight bill it

states the name of the consignee or the person for whom the goods are

intended and his address, but the consignee cannot get possession of the

goods until he has paid for them. To collect payment, the shipper

attaches to the order bill of lading a draft for the amount of the

goods and the freight, and through his bank and the bank of the

consignee the amount is collected. The consignee then gets possession of

the order bill of lading, which entitles him to possession of the goods.

This is more fully explained on page 344. The railroad's most important

paper is the _way bill_, which shows the conductor or the agent of the

company just what articles are included in the shipment, so that it can

be checked when unloaded. When the goods arrive at their destination,

the consignee is notified and is sent a _freight bill_ showing the

freight charges. When he presents his bill of lading and pays the

charges, the _freight bill_ is receipted and the goods are his.

In quoting prices on goods, manufacturers and distributors usually

designate whether they will pay the freight or whether it is to be paid

by the consignee. In the latter case the price is quoted f. o. b. at the

place from which the goods are shipped, which means freight on board at

that point. That is to say, if a distributor located at Detroit quotes

his automobiles f. o. b. Detroit, he means that he will see that the

goods get into the railroad company's hands at Detroit, but that the

consignee pays the freight from Detroit to the destination. The latter

is the common practice in shipping.

In the following exercises we shall treat the subject of distribution

under four heads:

I. The Retail Merchant.

II. The Wholesale Merchant.

III. The Mail Order Merchant.

IV. The Salesman.

I.--THE RETAIL MERCHANT

=Exercise 259=

_Oral_

You are opening a grocery store. Remember that your object is to sell

the largest possible amount of goods. Develop each of the following

suggestions:

1. What kind of location would you desire?

2. How would you have the front of your store painted?

Would you try to make it stand out from the rest?

3. Do you think it would pay you to have the interior

newly and brightly redecorated? To put in the best and

brightest lights?

4. What quality of stock would you select? The same

for all neighborhoods? Give your reasons. Would

advertised brands bring you more trade?

5. Do you think window display would pay? Would you

recommend freak or ordinary displays? Price-marked or

non-price-marked? Give your reasons.

6. Does the delivery wagon pay? Would it be advisable

to buy a new wagon and a good horse? What other

considerations would enter?

7. Would you sometimes cut the price of some necessity

to draw people? Give reasons for your answer.

8. Is it a good thing to have a general cut-price-sale

to bring customers to your store? Even if you lose

money by it?

9. Would you give credit? Would the class of people

you served come into consideration?

10. Is the use of trading stamps and premiums good

policy?

11. Why do you often find a meat market in connection

with a grocery?

12. There are two kinds of retail meat markets: (1)

the one that sells goods which can be retailed at a

low price, and (2) the one that sells superior goods

at a higher price. Which policy would you follow and

why?

13. Could a retailer combine the two spoken of in

(12)? Consider cost, space, satisfaction of the

customer.

14. Would you advertise by means of handbills? By

circular letters?

15. What would you do if another grocery opened across

the street from yours?

=Exercise 260=

_Written_

1. You have bought Burton & Sanders' grocery at Fort

Wayne, Indiana. Send out a circular letter advertising

the new White Front Grocery and telling what the

policy of the new management will be. Explain that the

opening sale will begin next Monday and that a

special feature of the sale will, be twenty pounds of

granulated sugar for eighty cents with a two dollar

order.

2. At the same time have an article appear in a local

newspaper, telling that Burton & Sanders have sold

their store to you and that you are making extensive

improvements, especially in sanitary means of handling

provisions. In addition, let the article give an

account of your business career in another town. Would

such an article be of value to you? Write it.

3. Write to Peabody, Harper & Co., Rush Street Bridge,

Chicago, Ill., saying that you would like to open an

account with them. Give as references a bank in your

town and one in Logansport, where you used to live.

Ask Peabody, Harper & Co. what terms they can offer

you.

4. You have decided to advertise in a local paper.

Write to the advertising manager, asking him for

yearly rates for a half-column every evening and a

quarter-page every Friday.

5. Find out what are the advertising rates of a paper

in your town and answer (4).

6. Reproduce a letter that a woman living in town

sends, ordering two dollars' worth of groceries and

requesting that you send, in addition, the twenty

pounds of sugar you advertise in (1). She encloses a

check for $2.80.

7. You are in receipt of a letter from Peabody, Harper

& Co., answering your inquiry in (3) and offering you

sixty days' credit and 2% discount for payment within

ten days. Write the letter.

8. Send an order to Peabody, Harper & Co. for $200

worth of groceries. Among the items let there be 6

cases of canned tomatoes, first quality, at $1.75 a

case. Ask them to send the goods by the Pennsylvania

R. R.

9. Your business is increasing and you need another

clerk, (a) Write an advertisement for one. _(b_) Apply

for the position.

10. Write a short circular advertising an inexpensive

novelty that a grocer might sell. These circulars are

to be wrapped with purchases.

11. Peabody, Harper & Co. write, confirming your order

in (8) and enclosing a straight bill of lading.

12. When the goods arrive, you find no tomatoes among

them. Write a complaint to the wholesale house.

13. Peabody, Harper & Co. reply to your letter in

(12), apologizing for the mistake, explaining how it

occurred (supply an explanation), and telling you that

they have sent one case by express at their expense.

The rest will follow by freight.

14. The tomatoes sent by freight do not arrive. Write

to the grocery company, asking the latter to send out

a "tracer"; that is, to request the railroad company

to trace the goods on its lines.

15. The grocery company telephones the railroad

company, requesting the latter to trace the goods and

to report. The grocery company also writes a letter

confirming its request. Write the letter.

16. (_a_) The railroad company reports that by mistake

the goods were carried through to Lima, but that they

are being returned to Fort Wayne. (_b_) The grocery

company informs you of the developments and hopes that

the delay has caused you no great inconvenience. Write

both letters.

=Exercise 261=

1. You wish to get a partner to open a meat market in

connection with your grocery. Write to a friend in

Lafayette, Ind., who you think will be interested,

proposing the plan. Tell him of the opportunities, as

you see them, of business in Fort Wayne and the

surrounding country. Tell him that with $4,000

additional capital you and he could set up a much

larger establishment, invest in a motor wagon, and

thus secure the trade of the outlying districts.

2. Your friend replies that the proposal appeals

strongly to him, but that he has only $2,000 in cash.

However, he holds a mortgage for $2,000 on ---- (state

the location of the house) in Lafayette, and, if he

can sell the mortgage, he will be glad to avail

himself of the offer.

3. After the partnership is formed, your partner

writes to Orr & Locket, 14 W. Randolph St., Chicago,

Ill., ordering the following to be shipped by

Pennsylvania R.R.: 1 Refrigerator No. 361; 2 Meat

Blocks No. 3; 1 Scale No. M. 30; 1/6 doz. Saws No. 33

(16 in.); 1/6 doz. Saws No. 33 (22 in.); 1/4 doz.

Knives No. 955; 1/4 doz. Knives No. 490; 1/6 doz.

Steels No. 82; 1/6 doz. Cleavers No. 09; 1/4 doz.

Block Scrapers. He explains that he is the same man

who formerly had a meat market in Lafayette.

4. Orr & Locket acknowledge the receipt of the order,

enclose the invoice, and offer him 5% discount for

payment within 30 days. Write the letter.

5. A Detroit manufacturer sends you f.o.b. prices on

his motor wagons. Investigate the prices and write the

letter.

6. Order one of them. (Remember the f.o.b. item.)

7. He writes confirming your order, saying that the

car is now in the shipper's hands and that his bank

has sent the order bill of lading with draft attached

to the First National Bank of your city. Write the

letter. (See page 344.)

8. At the same time the shipper's bank sends a letter

to the First National Bank of your city enclosing the

order bill of lading with draft drawn on you for

collection. A copy of this letter is also mailed to

you. Write it.

9. You telephone your bank to draw on your account for

the amount of the draft and to send you the bill of

lading. You confirm this understanding by a letter.

Write it.

10. Your bank writes, confirming the telephone

conversation and enclosing the bill of lading and a

receipt for the correct amount. You present your bill

of lading, pay the freight charges, and get your motor

wagon. Write the letter the bank sends.

11. The automobile manufacturer has meanwhile received

through his bank a credit for the amount you paid for

the car and writes acknowledging its receipt. Write

the letter.

=Exercise 262=

Choose four or six members of the class, one-half of whom are to argue

in favor of the policy indicated in the plan outlined below and one-half

of whom are to argue against it.

A certain grocer opened a store with the determination of doing a

strictly cash business, and of making no deliveries unless the purchaser

paid for the delivery. This was his plan as suggested by _System_:

1. To those who would carry their own purchases he

sold everything for cash much lower than any other

grocer in town sold it.

2. If the customer bought very bulky goods, or if he

did not wish to be his own delivery man, the grocer

charged him for delivery a certain percentage of the

total of his cash purchases. Yet the customer bought

more cheaply than he could buy in any other grocery in

town.

3. Those who wished to pay once a month instead of at

every visit he advised to deposit a certain sum of

money with him as banker and to buy against that,

paying cash prices and receiving 3% interest on the

amount left on deposit.

II.--THE WHOLESALE MERCHANT

=Exercise 263=

_Oral_

Each of the following should be developed into a paragraph:

1. You are a manufacturer and wholesale distributor

with a factory on the outskirts of a town; would you

have a warehouse in the center of the town? Give

reasons for your answer.

2. What would be the advantage of having your

warehouse near the railroad freight depots? Near the

docks?

3. What would be the advantage of being located in a

large city with many railroads and with water

transportation facilities--Chicago, for example?

4. Speed gets orders. With this in view, what would

you recommend with respect to the equipment for

handling? What would you suggest about the number of

people through whose hands the order would have to go

before being shipped?

5. If you were looking for big trade in a big city,

what kind of stock would you carry? Musical

instruments? Clothing?

6. Would it be a good plan to make a specialty of

certain brands for leaders and to quote a special

price on them?

7. If you were just starting a wholesale hardware or

grocery business, state which you think would be the

better policy: (1) to concentrate on one kind of goods

in one territory and to take on other kinds and

territories later, or (2) to work all kinds of goods

as widely as possible from the very beginning. Explain

fully.

8. Would you bear part of the expense of retailers'

advertising, especially of window displays, provided

they handled your goods?

9. Would it be good business for the salesmen of the

firm to suggest selling methods to retailers and to

plan window displays for them? Give your reasons.

10. Do you think it would increase sales to offer a

money prize to the retailer selling the largest amount

of a certain kind of your goods, the sale of which you

wished materially to increase?

11. Tell which you think would be the better policy:

(1) to undersell your competitors for a time and then,

when you had the trade, to raise your prices, or (2)

to set one price and maintain it from the beginning.

Give your reasons.

12. If you were getting out a new brand of carpenters'

tools, where would you advertise? Would you conduct an

extensive national campaign?

13. If you were bringing out a new soap or washing

powder, where would you advertise? Would you conduct

an extensive national advertising campaign? What would

your answer be if you were introducing a new brand of

crackers?

14. Would bringing out novelties from time to time

help the sale of your staple articles? Explain.

15. Do you think it would pay to send circulars to the

housewives of a certain locality to get the local

grocers' trade? After you had the local grocers'

trade?

=Exercise 264=

_Written_

1. You are Thos. H. Peabody of Peabody, Harper & Co.'s

wholesale grocery. Prepare a circular letter,

announcing your removal to a new building. The letter

will be printed in imitation of typewriting and the

introduction filled in later on the typewriter.

Remember you are seeking patronage. Address one letter

to Walter T. Barth, 350 E. Water St., Milwaukee, Wis.

2. Write an advertisement to appear in the January

number of _The Grocer and Country Merchant_, a

grocers' trade journal. It will announce your change

of location.

3. You receive an order from a retailer in which he

asks for a certain brand of coffee that you do not

carry. Write a letter telling him you do not handle

that brand and offering him another. Make the letter

as courteous as possible.

4. Write an advertisement for (1) a bookkeeper; (2) a

stenographer.

5. Answer (1) or (2) above.

6. Write an advertisement for a traveling salesman.

7. Answer (6) telling why you think you could sell

groceries although you have had no experience.

8. Write a circular letter to send to the trade

setting forth the merits of a new brand of canned

fruit. Say that you are offering the brand at a very

attractive price in the expectation that retailers

will make it a leader. Write to Mr. Barth (1).

9. You have made a contract with the manufacturers of

the canned fruit mentioned in (8), by which you secure

the exclusive sale but take the responsibility of

advertising. Write to an advertising agency, saying

that you are considering a three months' advertising

campaign. Explain that you do not wish the expense to

exceed five thousand dollars.

10. The advertising agency replies that, as five

thousand dollars is a comparatively small sum for a

campaign, it would suggest that the advertising be

confined to one class: street car, billboard,

newspaper, or magazine. Write the letter.

11. Notify the agency of your choice, giving your

reasons.

12. Write a series of three letters to send to

housewives, advertising the canned fruit, with the

purpose of having them ask for this brand at their

grocers': (1) Telling the name of the canned fruit,

its excellence, its price, and where it may be bought;

(2) Asking if the housewife has as yet bought any, and

if she has not, telling her she can get a sample at

her grocer's on presentation of this letter; (3)

Asking how she liked the fruit and quoting a letter of

recommendation received from Mrs. A., who lives in the

neighborhood. Urge her to buy, but not too abruptly. A

letter to a woman should be fairly long. (See page

265.)

=Exercise 265=

1. For two months you have been without a credit man.

You wish to be very careful in your choice because of

the importance of the position. J. B. Wright of 439

Russell Ave., Indianapolis, is a personal friend of

yours. He has heard that you need a credit man and he

recommends Joseph Haddon, who worked for him three

years in that capacity until a year ago when he went

to Colorado because of the ill-health of his wife.

Meanwhile, Mr. Wright's son has been acting as his

credit man. Mrs. Haddon has now recovered, and her

husband is anxious to get another position. Reproduce

Mr. Wright's letter.

2. Write the letter Mr. Wright sends Mr. Haddon in

Colorado, suggesting that the latter apply for the

position.

3. At the same time Joseph Haddon writes, applying for

the position. Write the letter of application.

4. Write Mr. Haddon's letter thanking Mr. Wright for

his interest. Remember that the two men know each

other.

5. Joseph Haddon, whom you have engaged, is proving to

be a very alert credit man. He has made a study of

your credit files and has discovered that you have a

great many accounts of long standing that ought to be

collected. He prepares a courteous letter to send to

the debtors, telling them that he has just been made

credit man and that he personally would like to get

into closer touch with their particular situation to

find out how soon he might expect a remittance from

them, so that he could plan the future of his

department. Write the letter. (See page 254.)

6. A number of retailers remit the amount that they

owe. Some explain their situation in detail, but a

great many do not respond to (5). Write another

letter, still courteous, but more emphatic than (5),

to those who did not respond. (See page 255.)

7. Still a number do not respond. Write a third

letter, saying that you will place the matter in the

hands of your attorney unless you receive a remittance

within ten days.

8. Mr. Haddon discovers that there are about a hundred

retailers who used to be customers, but who have

bought nothing for about two years. He reports this to

the sales manager, Mr. James Woodworth, who writes a

letter to the retailers to induce them to send another

order, using the canned fruit spoken of in (8) of

Exercise 264 as a means of interesting them.

9. Nathaniel Sears, a dealer in general merchandise at

Joplin, Mo., writes to you asking for an open account.

He says that he did a $10,000 business last year and

that, apparently, sales this year will be larger. He

gives no references. You refer the matter to Mr.

Haddon, who looks up Mr. Sears in Bradstreet and then

writes to one of your salesmen at St. Louis, asking

him to investigate the financial standing of Mr.

Sears. Write to the salesman.

10. After three days the salesman reports that Mr.

Sears seems to be doing a good business, but he thinks

the dealer is living beyond his means. He owes two

wholesale houses $500 and $850 respectively; his

property in Joplin is heavily mortgaged, and yet he is

making extensive improvements on his residence; his

son and his daughter are at expensive boarding

schools. Write the letter. Be exact in your

information.

11. As Mr. Woodworth, write Mr. Sears a courteous

letter, refusing him credit but attempting to secure

his cash business.

12. Charles Freeman, 141 Park Place, Newark, Ohio,

writes in answer to (5) saying that he is unable to

pay his account of $500. After the harvest his

outstanding bills will be paid by the farmers, and

then he can remit. He says he is willing to give his

90 day note for the amount he owes.

13. Mr. Haddon writes, accepting the note.

III.--THE MAIL ORDER MERCHANT

=Exercise 266=

_Oral_

1. Suppose you were starting a mail order business.

Would it make any difference in possible profits if

your center of operations were in a large or a small

city? Give your reasons.

2. Would you try to be near good transportation?

3. What kind of stock would you advertise principally:

bulky articles or those easily handled? expensive

goods or those of more moderate price?

4. Your catalogue is your salesman. What would this

statement suggest about the cost of running your

business as compared with that of Peabody, Harper &

Co., who employ five salesmen?

5. How would you bring special attention to your

leaders in your catalogue?

6. Why is it advisable not to give your catalogue away

free, but to charge a nominal sum for it?

7. Would you sell as cheaply as you could or would you

try to sell for as high a price as possible even if

you sold less?

8. Is it profitable for a mail order merchant to sell

one spool of thread or one pocket-knife? Consider the

handling and the packing.

9. Why can the mail order merchant sell more cheaply

than the country dealer?

10. _a._ How is the parcel post favorable to the mail order dealer?

_b._ Why did the country merchant object so strenuously to the

passage of the parcel post law?

11. Some distributors who handle only one kind of

article sometimes pay the freight. Would this plan be

advisable for a mail order house to adopt?

12. Since the purchaser pays the freight, is it

advisable for him to buy a large or a small order at

one time?

=Exercise 267=

_Written_

1. A customer who wishes to buy some furniture

complains that he can purchase what he wishes from

another firm that will pay the freight. Write a letter

meeting his objection.

2. You have just added a new clothing department and

have published a special clothing catalogue, which you

will be glad to send to your customers free of charge.

Write a letter telling of the new department and

drawing special attention to your three-piece serge

suit for $15. Enclose a sample of the cloth.

3. Write, especially to farmers, saying that with the

facilities now offered by the parcel post you are able

to supply their wants quickly; as, for example, for a

broken part of a piece of farm machinery. Write a

fairly long letter in a friendly tone.

4. In the fall write a letter, addressing the farmers'

wives, saying that, as winter is at hand, it would be

well for them to put in a supply of groceries when

prices are reasonable. Enclose a folder giving some

attractive bargains. Write the folder.

5. Write a letter, saying that you have just put up a

new building. Invite your customer to come to see it.

Explain that every afternoon from 2 to 4 o'clock there

will be a band concert in your large visitors' hall.

=Exercise 268=

1. Let one pupil be chosen to dictate to the class each of the letters

outlined below. He is to use no notes. The class will represent

stenographers.

2. Discuss and improve the letters that have been dictated.

1. Borroughs & Brown, a mail order firm at N. 11th and

Callowhill Streets, Philadelphia, send you their

catalogue and an advertising letter. Write the letter.

2. Write, stating that in their catalogue No. 6, page

673, Borroughs & Brown list a washing machine such as

you wish, called the "Pride Swing" washing machine,

No. 4-A-459. The measurements as listed are: depth 13

inches, diameter 21 inches. The price is $5.25. This

is too small for your purpose. Ask if they can supply

you with the same style 30 inches in diameter. Ask the

price.

3. Borroughs & Brown write that they have no such

machine in stock, but, since there have been many

requests lately for a larger machine, they have

decided to consult the factory, and if it is

advisable, they will reproduce the "Pride Swing"

machine in larger size. (Letter head.)

4. Borroughs & Brown, Dept. 18, House Furnishings,

write to the W. F. Wiggins Mfg. Co., Saginaw, Mich.,

stating that they have had several orders for a larger

"Pride Swing" washing machine which the Wiggins

Company manufacture. Burroughs & Brown ask concerning

a 30-inch machine. Write the letter.

5. The W. F. Wiggins Mfg. Co. telegraph Borroughs &

Brown that before they can state a price on a 30-inch

"Pride Swing" machine, they must make samples,

calculating cost of materials and workmanship. Write

the telegram. Confirm by letter. Write the letter.

6. Borroughs & Brown write you, giving the information

contained in (5) above.

7. The W. F. Wiggins Mfg. Co. write Borroughs & Brown,

stating that after several experiments they find that

the coil springs by which the "Pride Swing" machine is

operated are too weak for the larger sized tub. The

manufacture of suitable springs will cause some delay

in their final report.

8. Ten days later. Telegram. The W. F. Wiggins Mfg.

Co. to Borroughs & Brown, stating that they have now

perfected a "Pride Swing Special" machine; width 30

inches, depth 18 inches; price $8, with a discount of

50%.

9. Borroughs & Brown write you that they have

perfected a "Pride Swing Special" washing machine, No.

4-B-459, 30 inches in diameter, 18 inches in depth,

price $7. Add a courteous close.

10. Order five machines. Give full shipping

directions. Say that you will pay according to the

offer made on page 25, catalogue No. 6; viz., $20 upon

receipt of the goods and $5 per month until they are

paid for. Give two references.

11. Borroughs & Brown telegraph the W. F. Wiggins Mfg.

Co. ordering 100 machines, five of which are to be

sent directly to you. Write, confirming the telegram.

12. Two weeks later than letter (10) write again,

explaining that you have not received the machines you

ordered. Ask the reason for the delay.

13. Two weeks later than (11) write a telegram from

Borroughs & Brown to the W. F. Wiggins Mfg. Co.,

asking why the machines have not been sent.

14. Send a telegram from the W. F. Wiggins Mfg. Co. to

Borroughs & Brown, saying that, owing to a teamsters'

and shipping clerks' strike, they have not been able

to fill any of their orders for the last two weeks.

The machines have been sent. (State how and when.)

Write a letter, confirming the telegram.

15. Borroughs & Brown write to inform you that the

strike was the cause of the delay in the shipment of

the machines you ordered ----. The machines were

shipped ----. Add a courteous close.

=Exercise 269=

Conduct a transaction of your own, using the above as a model, except in

the method of payment.

IV.--THE SALESMAN

Salesmanship is a branch of distribution about which many volumes have

been written. We cannot consider it minutely from the personal view of

the salesman, but can only touch upon it from the point of view of

distribution. The salesman is merely a force in distribution like

correspondence, circulars, and advertising. But the salesman has the

advantage over these in that he is able to bring his personality to bear

in the problem of getting business. It is by means of his personality

that the salesman gets the attention and confidence of the customer,--a

thing which is extremely hard to do in a letter, a circular, or an

advertisement. Securing a buyer's confidence is very important, because

no suspicious customer has ever yet bought anything.

In addition to a pleasing personality a good salesman must have a wide

and thorough knowledge of his wares. If he does not know his goods, the

sale drags; whereas, if he knows everything good there is to be known

about them, his enthusiasm instills enthusiasm into the customer.

After bringing his knowledge and his enthusiasm into play, he must next

call on his perseverance and his tact; perseverance to keep at the

customer until he gets the order, and tact to know in each case just how

to go about getting the order and just when to stop. Many salesmen talk

too much; many more do not talk enough.

=Exercise 270=

_Oral_

In talking on any of the following subjects be sure you know just what

you are going to say before you begin, and then say it clearly and

convincingly. Don't say too much and don't say too little. Just exactly

how much you should say no one can tell you. You must watch your

audience. If they look puzzled, give more details; if they look bored,

try shorter, more concise sentences, or bring your talk to a close.

After you have explained all your points, sum them up briefly at the

end. Remember that your talk must, first, attract attention; second,

hold the interest; and third, create enthusiasm and desire to buy.

To supplement what facts you get from observation, study advertisements

and catalogues to get material for (9) to (20) below:

1. Get up a talk to persuade a freshman or a group of

freshmen to subscribe to the school paper.

2. To persuade girls to contribute to a fund to be

used to buy suits for the football team.

3. To induce particularly uninterested freshmen to buy

tickets for a school activity; for example, a debate.

4. As a real estate agent induce a classmate to

establish a home in your neighborhood.

5. Try to sell the manager of the baseball team a new

line of athletic goods.

6. Try to sell a set of Dickens' (or any other

author's) works to a boy who is not fond of reading.

You must enjoy the books that you recommend.

7. Try to sell the class or the teacher a new kind of

loose leaf note book for science or English work.

8. As an agent for the publishers try to sell this

text book to your English class or to your English

teacher.

9. You are trying to sell an automobile to a farmer.

By means of concrete examples develop the following

items into a talk:

_a._ The business opportunities to be gained.

_b._ The social opportunities to be gained.

10. Get up a talk to sell a runabout to a physician

who has a small practice. Suppose that he owns a horse

and a buggy. Be tactful.

11. You are a salesman for an automobile house and are

trying to sell a gasoline car to a man who is partial

to an electric car. Meet the objections to the

gasoline car and put forward its advantages.

12. You are trying to sell an electric runabout to a

woman. Develop the following into a talk:

_a._ Ease of operation.

_b._ Noiselessness and comfort.

_c._ Elegant appearance.

13. You are trying to sell the manager of a local

express company a motor truck. Gather all the data you

can and present it in a talk on why he should replace

his horses and wagons with motor trucks. Be as

specific as possible.

14. Get up a talk showing why a man with considerable

means should trade his two year old car as part

payment for the latest model.

15. Get up a talk to sell a phonograph.

16. To sell an electric washing machine.

17. To sell a piano.

18. To sell a vacuum cleaner.

19. To sell a subscription to a magazine.

20. To obtain an order for groceries or teas and

coffees. The offer of premiums might add to the

effectiveness of your talk.

=Exercise 271=

The following paragraph was adapted from William C. Freeman's

_Advertising Talks_.

George Washington's Cherry Tree Story has served a

good purpose through all of these years. "I cannot

tell a lie" is a phrase that has been used in every

schoolroom in America to impress upon young minds the

importance of truth telling. The phrase is also

serving its purpose outside the schoolroom. In all

professions and in all kinds of business, men know

that in order to make good they must tell the truth.

There never was, in all the history of the country, a

greater movement than now toward universal truth

telling. There is not even that winking at "white"

lies that used to prevail. The man who does not make a

direct statement, who does not earn a reputation for

being honest, has no chance of succeeding. Time was

when the trickster was regarded as shrewd and was

accepted in the community as being right both socially

and commercially. To-day the man who has money without

a reputation for integrity is a bankrupt, as far as

real friends and public opinion are concerned. The

expression "I cannot tell a lie" has been changed

to-day to "I will not tell a lie even if the lie seems

more expedient than the blunt truth." So George

Washington's Cherry Tree Story is as good to-day as it

ever was.

Prepare paragraphs on the following suggestions, expanding each by

examples:

1. As a salesman, be honest with your customers.

2. Cultivate tact.

3. Cultivate a conscience.

4. Learn to avoid friction.

5. Acknowledge your mistakes.

6. Don't criticise.

7. Don't procrastinate.

8. Don't boast.

9. Don't buy your clothes on time.

10. Don't borrow from fellow clerks.

11. Don't think your employer can't see whether you are working.

12. Don't sell a merchant a larger order than he can move.

13. Study the duties of the man ahead of you.

14. New ideas count with your employer.

15. He can who thinks he can.

=Exercise 272=

_Written_

1. A request has come in from your territory for your

automobile catalogue. Write a letter to accompany the

catalogue, inviting the inspection of your cars. Make

it as personal as possible.

2. You have just been talking with a prospective

buyer. Drive home some of the strong points of your

car in a letter exploiting strength, reliability, and

speed. Use the following as a basis of your letter:

The Up-to-the-minute car breaks the record from New

York to San Francisco, making the trip in ten days,

fifteen hours, and thirteen seconds.

3. You have just shown your motor truck to a business

man. Strengthen the impression you made on him by

writing him a letter summing up the important

advantages of the motor truck. Use the following

extract from a letter:

"It has not missed a single trip since I have had it,

and it takes the place of three wagons and twelve

horses. My route from Waltham is so long that a pair

of horses going over it one day has to be laid off the

next."

"This truck makes three trips each day. I have had it

on the road nearly four months and have covered over

four thousand (4,000) miles with no expense for

repairs."

4. A prospective customer has lost interest. Try to

arouse him once more by telling him of a particularly

good sale recently made, or of a new model just

received, or of a new device lately perfected. Your

object is to get him to inspect your cars again.

5. Write a letter to a wealthy man who bought one of

your cars two years ago, offering him half of what he

paid for the car in exchange for a new model. Make him

see that it would be to his advantage to accept the

offer.

6. Write an advertisement to appear in a local

newspaper asking for an automobile salesman.

7. Answer the advertisement, telling why you think you

could sell cars, although you have had no experience.

8. Write a letter to a friend telling him you have

been offered the agency for the Up-to-the-minute car.

Ask him to be your partner, and try to show him why

you will succeed. He will be expected to bear half the

office expenses, and he will get half the commissions.

=Exercise 273--Suggestions for Debates=

1. The mail order house ruins the trade of the country

merchant.

2. The giving of free samples does not attract

desirable purchasers.

3. The use of trading stamps should be abolished.

4. The motor wagon is more advantageous for the

average grocer than the horse and wagon.

5. All manufactured food products should be sold in

sanitary, sealed packages.

=Exercise 274=

_Oral or Written_

Prepare paragraphs on the following:

1. A merchant must know his neighborhood before he

buys his stock.

2. Selling by weight rather than by measure benefits

dealer and consumer.

3. Giving short weights does not prove profitable.

4. The price of a certain kind of goods, or of an

article, that is going out of style should be reduced

to move it quickly.

5. If merchants did not deliver purchases, goods would

be cheaper.

6. Hard work and patience spell the merchant's

success.

7. The middle man gets the bulk of the profit.

8. The telegraph is a great aid to the business man.

9. There is a difference between day and night

telegraphic rates.

10. Money may be sent by telegraph.

11. The night letter is very useful to the merchant.

12. The parcel post is a great help to the farmer.

13. The parcel post tends to increase the business of

the mail order firms.

14. The object of an automobile exhibit is to sell

cars.

15. The five-and-ten-cent stores have succeeded

because ----.

=Exercise 275=

Prepare paragraphs on the following:

1. The importance of transportation facilities to the farmer.

2. The importance of transportation facilities to the manufacturer.

3. The steamship in international trade.

4. Transportation before the days of the railroad.

5. The influence of the railroad in the advance of civilization.

6. Electrifying the railroads.

7. Speed, the cause of railroad accidents.

8. The observation car.

9. The care of food in the refrigerator car.

10. The work of the railroad repair-shop.

11. The advantage of railroad transportation over water transportation.

12. The advantage of water transportation over railroad transportation.

13. Why the larger railroads in our country run east and west.

14. The advantages of the pay-as-you-enter car.

15. The importance of the interurban electric railroads in country trade.

16. The disadvantages of the elevated system in large cities.

17. Congestion in the business district of a large city.

18. The underground system as a solution for congested traffic.

19. The work of a transfer company.

20. The motor truck decreases the business of the express companies.

21. The automobile decreases railroad suburban business.

=Exercise 276=

Topics for Investigation and Discussion

1. The work of the Interstate Commerce Commission.

2. How railroads control other railroads.

3. Railroad earnings.

4. Different kinds of railroad traffic.

5. The relation between the express companies and the

railroads.

6. Railroad rates and rebates.

7. Government ownership of railroads.

8. The influence of the Panama canal in the growth of

business in the southern states.

9. The influence of the canal in the growth of

business in the central West.

10. The influence of the canal in the growth of

business in South America.

11. The deep water way.

12. The parcel post zones.

=Exercise 277=

=Books that will Suggest Topics for Talks=

BOLTON, S. K., Successful Women.

CHAMBERLAIN, J. F., How We Travel.

DRYSDALE, W., Helps for Ambitious Boys; Helps for

Ambitious Girls.

FOWLER, N. C., Practical Salesmanship; Starting in

Life.

HALE, E. E., What Career?

HIGINBOTHAM, H. N., The Making of a Merchant.

LASELLE, M. A. and WILEY, K. E., Vocations for Girls.

LUNDGREN, CHARLES, The New Salesmanship.

LYDE, L. W., Man and his Markets.

MALLON, I. A. S., The Business Girl.

MANSON, G. J., Ready for Business.

MARSDEN, O. S., The Secret of Achievement; The Young

Man Entering Business.

MITTEN, G. E., The Book of the Railway.

MOODY, W. D., Men Who Sell Things.

REED, _et al._, Careers for the Coming Men.

ROCHELEAU, W. F., Transportation.

ROLLINS, F. W., What can a Young Man do?

STOCKWELL, H. G., Essential Elements of Business

Character.

STODDARD, W. O., Men of Business.

THE VOCATION BUREAU, Boston, Vocations for Boys.

(Pamphlets on _The Grocer_, _The Machinist_, _The

Architect_, _etc._)

WHITE, S. J., Business Openings for Girls.

=Exercise 278=

Write the following from dictation:

1

Transportation is a great business as well as

manufacturing or farming. History tells us that very

early people did not have a settled home, but, when

the grass began to give out in one part of the

country, several members of the community, perhaps

whole tribes, took their belongings on their backs and

sought for a new place to settle. It is reasonable to

suppose that they wished to keep up some sort of

intercourse with their friends. At once difficulties

arose, since hostile tribes lived between them and

their old home. It was a brave man, indeed, who

ventured to encounter the dangers of the trip between

the settlements. Such a set of men arose in the

peddlers, who set out alone or in caravans with

articles of produce or manufacture and braved the

dangers even of a desert to exchange what they carried

for the produce of the old home. This is the earliest

form of transportation. Compare this simple form with

the modern railroad, steamship, and express service.

2

CAPTURING THE LATIN AMERICAN TRADE

No empty iteration of the Monroe doctrine, no

reservation of canal privileges, will capture the

trade of Latin America. This will be accomplished only

by efforts to produce and to sell those countries the

kind of goods that they want; measured, labeled, and

packed their way; offered in the language that they

understand; and, moreover, sold at attractive prices.

Our consuls abroad report that in all these essentials

American dealers are deficient and that British,

French, and German manufacturers fill the South

American markets.

To these rivals must be added another, for, in spite

of old South American prejudices against Spain and

Spanish goods, the Spaniards are quietly regaining

their footing in those republics of whose trade a

century ago the home country enjoyed the monopoly. Her

advantages, we know, are a common language and

familiarity with the ways of life and the tastes of

the buyers. Spain produces just the kind of wine,

olive oil, and canned goods that South America wants;

she turns out the kind of paper, the patterns of

cotton goods, the styles of tools and implements, the

clothing, shoes, and weapons used in Latin America;

and the result is that she gets the trade. One-sixth,

at least, of her entire exports goes to her former

possessions.

3

South Africa has been successfully operating an

agricultural parcel post. By its instrumentality gold,

diamonds, minerals, wool, feathers, saddlery, boots

and shoes, confectionery, fruit, plants, seed, butter

and eggs suitably packed, and other farm products are

transported, and the producer and consumer have been

brought together. From the report of the Department of

Posts and Telegraphs we learn that the scheme has

worked well, is a recognized and popular feature of

the postal system, and is entirely feasible. The

sparse settlements and widely scattered population

have not operated to bar its success, as was feared at

the time of its introduction.

4

The duty of applying the remedy for wrecks rests,

primarily, with the railroad managers. And what is the

remedy, and how is it to be applied? It would seem

that there can be but one answer: there must be stern

discipline for taking risks. There must be thorough

instruction as to what risks are and how to avoid

them, just such instruction as the "safety first"

movement is leading up to, but extended to every man

in every department of every road. In addition, the

promise that no engineman will be censured for losing

or not making up time or for not running fast when it

is not considered safe to do so must be changed to the

positive, unequivocal statement that there will be a

substantial penalty for every case of running fast

when it is not safe to do so.--_Railway Age Gazette._

5

More and more attention, each year, is being given by

the railroad managers to the locating of new kinds of

industry along their lines. The roads in the West and

the South nearly all have efficient industrial

departments, land departments, or immigration

departments. Their men seek out new industries, meet

the steamers to tempt immigrants into their region,

arrange for the purchase or rental of lands, and get

together reports of the soil, the products, and the

advantages of any desired location. Perhaps the

greatest effort, however, is bent upon the location of

new factories along the route. In one year one

southern railroad induced more than seven hundred men

to establish industries along its lines, after the

railroads had made complete and painstaking

investigation of all the conditions that would

confront the prospective manufacturers.

CHAPTER XVIII

ADVERTISING

ADVERTISING is one of the most vital forces in the problem of

distribution. Every advertisement is a salesman and is written and sent

out with the idea of doing the work of one. It may bring in actual

orders or it may merely do "missionary work"; that is, it may introduce

a certain article or product and educate the people to see its

advantages so that when next they desire that particular sort of

article, they will order the one that they have seen advertised.

Many an article that has had practically no sale has by means of an

effective advertising campaign been brought to a point of wide

distribution and ready sale. How many safety razors would the

manufacturers sell if they had never advertised their product? Very few.

But when day after day, everywhere a man looks--in street cars,

newspapers, magazines, and on billboards--he sees staring at him a

reason why he should use a safety razor, he soon comes to feel that he

needs one. It is just the same as though the country were covered with

salesmen who were constantly after every one to get him to see the

advantage of the safety razor. The advertised articles may in themselves

be no better than the unadvertised brands, but advertising has created a

demand for the one over the other. The secret of selling success is

creating a demand.

The importance of advertising is demonstrated by an experience which the

city of Chicago had on Wednesday, March 2, 1911. On the afternoon

before, a dispute arose between two newspapers and their printers,

ending in a temporary strike of the printers. As a result, all papers

published on March 2 contained only four pages each, in contrast to the

usual twenty-four, because they contained not a single advertisement.

Fortunately, the strike lasted only one day, as the local printers were

at once reprimanded by the International Typographical Union. But the

losses that newspapers and retail business men suffered on this one day

convinced them of the power of advertising. Street cars, downtown

streets, and department stores were almost empty. To be sure, billboards

still proclaimed their wares, but, as soon as newspaper advertising

ceased, the great mass of shopping stopped.

=Exercise 279=

_Oral_

1. What are some of the advertising methods used in a

retail business?

2. What are some of the advertising methods used in a

wholesale business? Where are the advertisements

published?

3. What is the principal advertising medium of the

mail order house? Explain why it is effective.

4. What is classified advertising? Why are newspapers

anxious to increase it? Name several reasons.

5. What is "display" advertising as distinguished from

classified? What is the principal medium of this kind

of advertising?

6. Give several instances of advertising by means of

the distribution of "novelties," such as calendars. Is

such advertising effective?

7. Is the distribution of samples good advertising? Be

specific in your answer.

8. Is it a good thing to have a trade-mark? Name some

trade-marks that you think are good advertising.

9. Is a bargain table good advertising? What is its

advantage in a retail store?

10. What class of advertising is done in the

classified columns of a newspaper?

11. What class of articles and products is advertised

in the street cars and trains? Expensive or

inexpensive? Things you use every day or not?

12. Are articles advertised by billboards usually

widely advertised articles or not?

13. What kind of articles would you advertise in:

1. The newspaper rather than the magazine?

2. The magazine rather than the newspaper?

3. The street car rather than on the billboard?

4. The trade papers rather than the newspapers?

14. Suppose you were bringing out a new soap and you

could use only one of the following mediums: (1)

newspapers; (2) local and trade magazines; (3) street

cars; (4) billboards and posters. Which would you

choose and why? Would your answer be the same if you

had real estate to sell? A new machine? If you were

producing a new play?

15. NEWS ITEM.--The University of Wisconsin has issued

a bulletin, stating that of all the money spent for

food, shelter, and clothing 90% is spent by women.

Would the following be good advertising for a

magazine: "The women of the country read this paper"?

Give reasons for your answer.

16. Do handbills suggest cheapness to you?

=Exercise 280=

_Oral_

Discuss the value of each of the following as forms of advertising:

1. Location.

2. Furnishings of the office or the store.

3. Letter headings.

4. Window displays.

5. Electric (or other) signs.

6. Moving electric signs.

7. Colors (especially reds, greens, and yellows) as against black and

white.

8. White lettering on a black background.

=Exercise 281=

Fundamentally, the same principles apply to the advertisement as apply

to the sales letter (See page 230). First of all, you must look at your

goods from the standpoint of the user; see his gain in buying rather

than your profit in selling. Your products, then, will probably fall

into one of the following general classes:

1. Something entirely new for which you must create a

demand by showing its advantage to the buyer, arousing

his sense of need and, consequently, his desire to

possess.

2. Something new but filling a long-felt need--"Just

what you've been looking for"--the value of which will

appeal to the buyer almost as soon as the product is

explained. Comparison with the article that now

imperfectly fills the want suggests itself.

3. A new brand of an old staple, like crackers, of

which the superiority must be dwelt upon to induce

buyers to ask for it. Even after the article is

selling well, continuous advertising is necessary to

keep the name before the public.

A paying advertisement appeals to a large class of people or, better

still, to several classes. For a moment let us analyze a few of the

appeals to which almost every one responds; let us consider the reasons

back of our purchases. Why do we buy one article and not another? We buy

it first, perhaps, because we need it or think we need it; second,

because we think it will taste good or be comfortable or good-looking or

because it will afford us amusement; third, because we think it is

better, though possibly more expensive, than any other brand on the

market, and our pride or our desire to emulate responds to it; fourth,

because we think it is good for our health or our safety; and, fifth,

because we shall save money or make money thereby. Summing up, we may

say that the motives to which appeals may safely be made are:

1. Need, conscious or unconscious (usefulness, quality, or durability).

2. Comfort, amusement, or appetite.

3. Pride, desire to emulate, or vanity.

4. Safety (of health or personal possessions).

5. Economy or gain.

Clip from magazines and bring to class good advertisements that appeal

to the motives named above. Try to find those advertisements that make

an appeal to only one motive in one advertisement.

=Exercise 282=

The following catch phrases have been taken from advertisements in

various places. Tell (1) whether their appeal is general; (2) whether

they induce one to buy; and (3) if they do, which of the motives given

above have been used by the advertiser. Frequently more than one motive

is used in one advertisement.

1. For a delicatessen store: Good things to eat.

2. For a chewing gum: The taste lasts.

3. For a motor washer: Two cents a week pays your

washing bill.

4. For a refrigerator: Are you poisoning your family?

5. For a summer drink: It's wet.

6. For stockings: Wear like 60, look like 50, cost but

25.

7. For a shaving soap: Comfort for your face, economy

for your purse.

8. For a liniment: Don't rub--it penetrates.

9. For a hair tonic: What does your mirror say?

10. For a clothing store: Exclusive styles for

exclusive women.

11. For an inexpensive scouring powder: Why pour money

down the sink?

12. For canned goods: When company comes.

13. For a varnish: Water won't hurt it.

14. For bread: The human hand never touches it.

15. For a fountain pen: It can't leak.

=Exercise 283=

Bring to class two advertisements containing catch phrases that you

think are good. To which of the motives given above does each appeal?

=Exercise 284=

Bring in two advertisements of articles that have suggestive names. What

is the value of a suggestive name?

=Exercise 285--Good and Bad Headlines=

A good headline has the following qualities:

First, it should be short. Professor Walter Dill Scott determined by

experiments that the average person can ordinarily attend to only about

four visual objects at the same time--four letters, four words, four

simple pictures, or four geometrical figures. As the headline of an

advertisement is intended to be taken in at one glance, it should,

therefore, be not longer than four words--preferably less, provided the

interest of the phrase is the same. Short words, too, can be taken in

more readily than long words.

Second, the best headline is a command. People instinctively obey a

command, unless it is so worded that they rebel against the manner of

expression.

Third, a good headline is suggestive. It touches upon the things that

the reader is thinking about. It shows that the article that is offered

for sale has a close connection with the interests that absorb the

reader's mind. It is a direct answer to his thoughts, feelings, hopes,

or worries.

The following headlines were taken from the advertisements in one issue

of a magazine. Judge of their effectiveness, using the three principles

given above as a basis for your decision:

1. Get That Job!

2. Foot Comfort.

3. Ventilate, but Don't Catch Cold!

4. A New Filing Cabinet.

5. Are You Open to Conviction?

6. Low Priced Envelope Sealer.

7. Shave for 1c Without Stropping.

8. What a Wonderful Trip!

9. Save 30% on Your Furniture.

10. You Have a Right to Independence.

11. Just Out!

12. Get the Dust Out of Your Home--It's Dangerous.

13. The Easiest Riding Car in the World.

14. Our Seeds Grow.

15. That Raise! (Sub-heading in smaller type: What Would a Raise

in Salary Mean to You?)

=Exercise 286=

Some advertisers choose headlines merely for the purpose of attracting

attention, forgetting that the headline should suggest what the

following illustration and text explain. A few years ago a well-known

automobile company ran an advertisement with the headline _$1000 Worth

of Folly_. The headline was followed by a picture of the automobile. The

advertisement was intended to convey the idea that, as this car might be

bought for $3000, any one paying $4000 for an automobile was foolishly

squandering $1000. As a matter of fact, the only suggestion that the

reader got from the advertisement was that any one who paid $1000 for

the illustrated car would be a fool.

1. Bring to class an advertisement in which the

headline has no connection with the rest of the

advertisement, being used merely to catch the

attention.

2. Find an advertisement in which the headline

suggests the opposite of what the advertisement is

intended to convey.

3. How might either advertisement be improved?

=Exercise 287=

Still-life advertisements are not interesting. The picture of a furnace,

or a typewriter, or a house attracts less attention than the same

objects with human beings represented moving in the picture.

Bring to class two advertisements of the same kind of article, in one of

which a still-life illustration is used and in the other of which human

beings are used to center the attention upon the article that is offered

for sale.

=Exercise 288=

Bring to class (1) an advertisement that is not good because it contains

too much--lacks a center upon which the attention naturally focuses; and

(2) an advertisement that is good because it has a definitely defined

center of attraction.

=Exercise 289=

Bring to class an advertisement in which the principle of balance is

used to advantage, two illustrations, one on each side of the text,

being used to convey one impression.

=Exercise 290=

In writing the following, try to embody the principles that have been

brought out in previous exercises:

1. An entertainment is to be given in the school hall.

Write an advertisement to appear in the school paper.

2. Write an announcement of the same entertainment--to

be posted on the bulletin board.

3. Write an advertisement for a debate.

4. For a football, baseball, or basket-ball game.

5. For an inter-class contest.

6. You have permission to secure advertisements to be

printed in the program of the entertainment spoken of

above. Suppose that you are to write the copy for the

different advertisements. Use one-eighth, one-quarter,

one-half, or one page, as you wish.

Advertise a grocery.

7. A meat market.

8. A dry goods store.

9. A candy store.

10. A bakery.

11. A bank.

12. A tailor's shop.

13. A photographer's studio.

14. A barber shop.

15. A drug store.

=Exercise 291=

1. Write a handbill announcing a 20% discount sale to

run three days in your dry goods store.

2. Describe a chair, table, or other article of

furniture in your own home. The description is to form

part of an advertisement to appear in a mail order

catalogue.

3. You are advertising a new brand of coffee in the

street car. Write the card. Would you use an

illustration? If so, of what kind?

4. As in (3) advertise a new brand of pork and beans.

5. As in (3) advertise a shoe sale.

6. Advertise a well-known brand of soap in a magazine.

Use your own idea. Would you use an illustration?

7. How would you advertise an automobile which has

proved its merits? Remember, your object is to keep

the name before the public. How would you advertise a

new make of automobile? How much space would you use

in either case? Write both advertisements.

8. A half-page advertisement by the Hudson Cereal

Company, 110 Hudson St., New York, of their

Nervo-Cereal Coffee contains the item: "Can you thread

a needle, holding the thread one inch from the end? If

you cannot, you are nervous. Is coffee to blame?"

Exploit the aroma and flavor of the cereal coffee.

9. The Central Packing Company is running a series of

advertisements of their Premium Extract of Beef. This

one is to appear just before Thanksgiving. Entitle it

"Four Delicious Dishes for the Thanksgiving Dinner,"

and then in as attractive a form as possible give four

recipes, making a point of the necessity of using

Premium Extract for the right flavor. At the end sum

up the merits of Premium Extract and mention the

silver premiums given with the certificates under the

metal caps.

10. The Bay City Mill Co., Bay City, Mich., sells fine

finished lumber suitable for making furniture at home.

Prepare an advertisement to show how simple it is to

make tables and chairs at home with their plans and

their specially cut lumber. Illustrate by giving the

plans and working directions for making a useful

table, showing how easy it is with their specially cut

lumber. Set an attractive price on the lumber

necessary to make this table. Sum up by exploiting a

book of plans, which may be had for the asking.

=Exercise 292=

The following paragraph is taken from Professor Scott's _Theory of

Advertising_. What is the subject of the paragraph? Is there a topic

sentence? By what plan is the paragraph developed?

Many of those who use illustrations for their

advertisements follow the philosophy of the Irish boy

who said that he liked to stub his toe because it felt

so good when it stopped hurting. Many of us are unable

to see how the boy had made any gain after it was all

over, but he was satisfied, and that was sufficient.

The philosophic disciples of the Irish boy are found

in advertisers who have certain things to dispose of

which will not do certain harmful things. First they

choose an illustration which will make you believe

that what they have to sell is just what you do not

want, and then in the text they try to overcome this

false impression and to show you that what they have

to offer is not so bad after all. Most of us are

unable to see how the advertiser has gained, even if

he has succeeded in giving us logical proof that his

goods are not so bad as we were at first led to think.

We are not logically inclined, and we take the

illustration and the text, and we combine the two. The

best that the text can do is to destroy the evil

effect of the illustration. Of course, when we read in

the text that the illustration does not correctly

represent the goods, we ought to discard the

illustration entirely and think only of the text, but,

unfortunately, we are not constructed in that way. The

impression made by the illustration and that made by

the text fuse and form a whole which is the result

formed by these two elements.

Write paragraphs on each of the following:

1. Advertising is essential in modern business.

2. Advertising helps the housewife economize.

3. The study of advertisements saves the shopper's

time and strength.

4. Advertised goods cost more than the unadvertised

brands. (Give the reasons.)

5. Trade-marked and advertised goods have increased

the cost of living.

6. Increased advertising causes the styles to change

quickly.

7. Every advertisement must catch and hold the

attention. Some accomplish this object by causing a

laugh. (Describe one such.)

8. Some advertisements hold the attention because they

appeal to our love of the mysterious. One such is ----

(describe it).

9. Some advertisements succeed because of their clever

color scheme. One such is ----.

10. Every successful advertisement contains a

convincing argument.

11. Mouth to mouth advertising is the best and the

cheapest.

12. Advertised goods are better because they have to

be.

13. The consumer pays for all the advertising.

14. The cost of advertising is paid by the competitors

who do not advertise.

15. Advertising tends to create uniform prices.

16. The advertising expert is a student of men.

=Exercise 293=

Give your opinion as to the effectiveness of the following

advertisements:

1

A department store that was anxious to increase its

trade on Mondays and Wednesdays included the following

coupons in its circular advertisement one week:

THIS COUPON AND 19c THIS COUPON AND 50c

Monday only Wednesday only

good for good for

_6 Spools J. & P. Coats'_ _Misses' or Children's_

_Best 6 Cord Machine_ _White Canvas Pumps_

_Thread_ 2 strap model, heavy or light soles,

Regular 30c value trimmed with dainty bow on

vamp. All sizes up to 2.

$1.50 value

2

$10,000 IN CASH TO CHARITY

We ask our customers to decide by their votes the 250

institutions that shall receive this amount. Each ten

cents' worth purchased entitles the purchaser to one

vote.

3

The following appeared in the center of a page

otherwise blank. On the opposite page appeared the

advertisement of a well-known article.

The announcement on the following page is so important

that we have decided to leave this page blank.

4

The following was part of a circular:

Following our annual custom we will again this year

give away absolutely free a beautiful silk flag to

every customer making a purchase of $1 or over,

Tuesday and Wednesday, July 2 and 3.

5

The following appeared in a newspaper:

A WORD OF APPRECIATION

We have now been in our new location somewhat over a

month. Our business has been all that we expected; in

some departments, indeed, there is an increase,

notably in the neckwear, ready-to-wear clothes, hats,

and tailoring departments.

Naturally, we had an abundance of faith in our new

location; nevertheless, we must confess that there

were times when we had anxious moments. We discovered,

however, that our moving was at the "psychological

moment"; we soon learned that in the minds of the

people there was but one thought--success for Michigan

Avenue.

We have always felt that there was a closer bond of

sympathy between our customers and us than is usually

the case between buyer and seller. The unusual

interest taken in our new store and in our success has

more than confirmed us in this impression. Our

experience during the last forty days has really made

life worth living.

The minds of hundreds of our customers have reverted

to the beginning of our business in our old Dearborn

Street store, twenty years ago, and they have made

comparisons between that and the wonderful

establishment we now possess; they have done it in a

way that would almost suggest that it was their

business that they were talking of rather than ours.

It made us feel that, although we have made our

mistakes, nevertheless we must have served the public

well, and we insert this article in the hope that a

few of our well-wishers may read it and understand

that we appreciate and are grateful.

=Exercise 294=

Books that will Suggest Topics for Talks

BALMER, EDWIN, The Science of Advertising.

BELLAMY, FRANCIS (ed), Effective Magazine Advertising.

BRIDGEWATER, HOWARD, Advertising, or The Art of Making Known.

CALKINS, E. E. and HOLDEN, R., Modern Advertising.

CHERINGTON, PAUL T., Advertising as a Business Force.

DELAND, L. F., Imagination in Business.

DE WEESE, TRUMAN A., Advertising (The Business Man's Library, Vol. vii).

EDGAR, ALBERT E., How to Advertise a Retail Store.

FOWLER, N. C., Building Business.

SCOTT, W. D., The Theory of Advertising.

CHAPTER XIX

REAL ESTATE AND INSURANCE

Lands, buildings, and houses are called real property or real estate,

and the business pertaining to them, the real estate business. Every one

of us has more or less to do with this business. If we do not own

property, we pay _rent_. Rent is the money paid for the use of a piece

of land, or a building, or part of a building, and is usually paid at

certain stated intervals of time--monthly, for example. The owner of the

building is called the _landlord_; the one who rents, the _tenant_.

Sometimes there is no condition as to how long a tenant shall remain in

one place and pay rent, but, as a rule, the landlord requires the tenant

to sign a _lease_. This is a contract between the landlord and the

tenant, stating that in consideration of the landlord's furnishing the

tenant a place in which to live with certain conveniences--such as heat,

hot water, and other services--the tenant agrees to pay rent for a

certain length of time, usually a year or more. If the tenant moves out

before his lease expires and refuses to pay the rent, he breaks the

contract and, as is usually the case when a contract is broken, a

lawsuit may follow. In large cities where land is in some places very

valuable, owners may not care to sell the property on which others wish

to build, but lease it to the builders for a certain term of years,

usually ninety-nine years.

Suppose you no longer wish to pay rent, but to own the house in which

you live. If you buy a piece of property from John Smith and pay him

your money for it, you wish to be assured that after a few months John

Smith will not come to you and claim the property as his. To protect

you John Smith gives you a _deed_ to the property. A deed is a contract

between the buyer and the seller of the property. It states that, in

consideration of the buyer's paying a certain stipulated sum of money,

the seller releases and conveys the property to the buyer. This deed

shows that you now own the property. At the same time you should receive

a _clear title_ to the property; that is, you wish to be sure that no

one else has a claim on the property. If John Smith guarantees that the

title is clear, he gives you a _warranty deed_ for the property, in

which he will "warrant and defend the same against all lawful claims

whatsoever." If, however, he simply turns over the property to you as it

stands, he gives you a _quitclaim deed_, in which he relinquishes or

quits all his interest in it. If you have no debts on the property, you

own it in _fee simple_.

Very often in buying property, the purchaser pays only a part of the

purchase price himself, paying for the balance by borrowing the

necessary amount from a third party. For example, if the house you

bought from John Smith cost $6,000 and you had only $4,000, you would be

forced to borrow the other $2,000 to pay John Smith. You would then go

to your bank or to some person who had money to invest and would borrow

the required amount, and to guarantee that you would pay the money back,

you would give a _mortgage_ on the property. A mortgage is a contract

which states that, in consideration of one party's giving the second

party a certain sum of money, the second party agrees to pay interest on

that money at a stipulated rate, and at the end of a certain length of

time agrees to pay the money back; and that, in case the second party

does not pay back the amount at the end of the time, the first party is

empowered to take possession of the property, to sell it, and to get the

amount due him. This last procedure is called _foreclosing the

mortgage_. It is a common practice to mortgage property; almost all the

property in a city is mortgaged.

Some men and firms make a special business of transferring property,

buying and selling it for others, making leases, and collecting rents.

They are called real estate agents, and for their services get a

_commission_, which is a certain percentage of the purchase or the

selling price and a certain percentage of the amount of rent collected.

This percentage varies according to whether the amount of money involved

is large or small, the percentage being larger when small sums of money

are involved than when large sums are involved.

=Exercise 295=

_Oral_

1. What is a lease?

2. Explain why owners of valuable property lease it.

3. What is a deed? Explain the two kinds.

4. What is meant by a clear title?

5. What is meant by fee simple?

6. Why is it important to be careful about the title?

7. What is a mortgage?

8. Explain why property is often mortgaged. Does the

mortgage benefit the owner? Explain.

9. What is meant by foreclosing?

10. What is an agent? How is he usually paid?

11. Why do people employ real estate agents to take

care of renting? To sell their property?

12. Why is property near a railroad valuable? For

what?

13. Why is a corner lot worth more than an inside lot?

14. Why is property on a car line more valuable than

on a side street?

15. What effect would the building of a new street car

line have on the value of adjacent property? Why?

=Exercise 296=

_Oral_

1. Suppose that you are a landlord and that in your

lease no mention is made of giving your tenants

janitor service, but you yourself take care of the

furnace. Other landlords in the block supply janitor

service. After one of your tenants has moved in, he

demands that the back porch be scrubbed once a week

and the garbage emptied daily. What would you do?

Consider the points for and against.

2. Suppose some boys playing ball on the street break

a plate glass window in the store you own. Would you

expect your tenant to pay for repairs?

_Written_

3. Write to Francis L. Russell, a real estate agent,

asking his terms for collecting the rent of ---- (tell

the location of the house, the number of the tenants,

and the rent you receive).

4. As if you were Francis L. Russell write a reply,

saying that you will undertake the collection for a

commission of 5%.

5. Imagine you are a tenant in the same building. The

kitchen sink cannot be used in your flat because of a

stoppage in the plumbing. You have told the agent

once. Write him (see 3) again, stating that unless he

sends a plumber you will not pay your next month's

rent. (Is there any reason for writing this, rather

than telephoning it?)

6. The plumber has submitted a bill of $5.98 for the

repairs suggested in (5). The agent writes to the

landlord, enclosing a check for the rent that he has

collected, less the amount of the plumber's bill and

his commission.

7. You are a lawyer. Write to the landlord, informing

him that the mortgage which your client holds against

the landlord's property expires in thirty days. Ask

the landlord whether he expects to pay the money or

whether he wishes a renewal of the loan for three

years. Your client is willing to give such a renewal.

8. The landlord replies that he is enclosing $100 to

pay the interest due on the mortgage and that he

desires a renewal of the loan. If the lawyer will

prepare the papers, he will come to sign them at the

specified time. Write the letter.

9. You are an insurance agent. Write to the landlord

that the fire insurance on his property expires in

sixty days. Ask him to allow you to write a new

policy. Inform him that the rate now will be 3-3/4%

instead of if 1-3/4% as it was formerly, because a

garage has been erected one door north of his

property. (Why should the rate be higher?)

10. One of the tenants has paid no rent for two

months. You decide that he never will be able to pay.

As landlord you make out and deliver to him a _Five

days' notice of removal_. At the same time, you write

a letter to your lawyer, explaining the state of

affairs and asking him to take charge of enforcing the

notice. (This means that if the tenant does not move,

the case must come up in court. If it is decided in

the landlord's favor, the tenant must move. If he

refuses, the lawyer engages a constable to eject him.)

Write the letter.

11. Francis L. Russell writes three short

advertisements, offering for sale (1) a large 12 room

residence, mortgage $6,000, price $15,000; (2) a 3

apartment building, clear, price $16,000; (3) a large

12 apartment building, mortgage $25,000, price

$41,000, terms to suit. Where would you advertise?

Write the advertisements.

12. You get inquiries about all of the above. Write

answers describing the buildings more fully, and make

appointments with the writers to inspect the property.

13. A man is interested in the 12 flat building, but

he has only $10,000. Offer him the property for

$40,000 on these terms: $10,000 down, a first mortgage

for $20,000 to run 10 years at 5%, and a second

mortgage for $10,000 to run 5 years at 5½%, $2,000 to

be paid each year with interest. Make it as attractive

as possible. Tell him you will arrange for the

mortgages.

14. (_a_) Write to your bank, the First National, and

explain that, although the first mortgage on the 12

flat building for $25,000 still has 3 years to run,

you would like to arrange for a 10 year mortgage for

$20,000, if your prospective buyer takes the property.

(_b_) Write to George R. Scott, who owns the building,

offering him the second mortgage. Explain that

although it is a second mortgage the fact that $2,000

of the principal is paid each year makes it

attractive. (How would the owner benefit if the buyer

failed to make his payments after 2 years?) Sign

yourself Francis L. Russell.

15. You have put through the deal. Write to the new

owner, offering to take care of the renting for a

commission equal to 2½% of the amount collected.

=Exercise 297--Farm Lands=

1. You own a large tract of land in the South, West, or Southwest.

Choose your own locality. Prepare a pamphlet setting forth the

advantages of this particular spot in a series of paragraphs: (1)

scenery, (2) climate and healthfulness, (3) crops, (4) profits from the

crops, (5) price of labor, (6) chances for pleasure, e.g., hunting,

fishing, etc., (7) transportation facilities, (8) price of the land. Use

a firm name and address.

2. Arrange and punctuate: