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THE BUSINESS WORLD

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FACT VERSUS FICTION IN ADVERTIZING

UST so long as human cupidity inflicts mankind with "bargamania," just so long will some merchants discredit legitimate advertizing. The National Vigilance Committee of the Associated Advertizing Clubs of the World and the corresponding committees of the local advertizing clubs have accomplished good work in many places in driving out the fakers; but there is ample room in most places for more active work in this direction. In New York City alone there might be a dozen vigilance committees without any likelihood of their getting in each other's way.

Samuel Hopkins Adams, who several years ago wrote a series of articles for Collier's about "Fair Trade and Foul, or the Art of Advertizing," has again been delving into the "secrets" of a certain type of business. The results of his more recent investigation have been correlated into a series of articles which have been appearing in the N. Y. Tribune. A comparison of the articles written by Mr. Adams half a dozen years ago with his recent "exposé," shows that the game is much the same, except that the fakers have become a little more artful, their deceit in most instances being more carefully veiled; but the bait is always the same -a bargain.

Mr. Adams says: "For womankind the word 'bargain' has an irresistible appeal, and advertizers have allowed themselves to be carried to extremes in response to this demand. When reading much of the advertizing which appears in the daily newspapers, one might well believe that a great many stores are carrying on not a business but a philanthropy." Women, however, are not the only ones susceptible to bargains; and Mr. Adams cites a number of instances where the sterner sex encourage and support with their patronage questionable business methods. A merchant who calls himself ". the Tailor," operates several stores in New York City, with a chain of stores in other cities. He uses large space in the daily papers with the announcement: "Suits to order, in suitings as high as $20 to $25, for $7.75." Let Mr. Adams tell the story: "Out of half a dozen sleazy-looking patterns a brown-and-white pencil-stripe was selected. 'A fine, all-wool piece of goods,' observed the salesman. do you want a vest?' 'I want a suit;

'Now

coat, vest and trousers.' 'The vest,' said the salesman blandly, 'will be $3.50 more.' 'What! Nearly half as much for the vest as for the rest of the suit? Doesn't the vest go with the suit?' 'A suit of clothes,' expounded the salesman (Webster, Worcester and the Century Dictionary, please note), 'is coat and trousers. The vest is extra. For $2 more you can get a pure Venetian lining.'

"The suit was ordered, a deposit was made, and the patron was told to come back within a few days. Unmitigated astonishment was the patron's portion when, on his return, the suit was presented to him complete. 'Don't I get a try-on?' 'We don't give try-ons of our $7.75 suits.' The victim then got into the suit. If the suit ever had been made to order, it was made to order for some individual built on a wholly different architectural plan. Amid many distressful discrepancies the most obvious was a jutting promontory across the back. This was taken in, the balance of the price collected, and the transaction closed. Except, of course, the analysis. The $20 to $25 value suit to order is a stock suit-or, rather, a stock two-thirds of a suitof the cheapest kind of sweat-shop labor. The 'all-wool' is mostly cotton, with a little worsted. The pencilstripe is white cotton thread. If the workmanship were in any degree respectable, the suit would be worth the price charged. As it is, $5 would be dear for it.

lend it the appearance of a garment in process of making, buck-canvas had been fastened over the collar, and a few white threads to imitate basting were scalloped down the sleeves. Barring the fact that the garment was at least size 48, when the wearer is size 42, and the sleeves were about five inches too long, the fit was tolerable. Alterations were promised and made, the sleeves being turned up into a cuff, and the deal completed. The coat was of wretched workmanship; even worse, if possible, than the suit. It bore all the earmarks of being a low-grade, manufactured size-48 garment. A coat of the same material with hand-made workmanship can be bought for $20 at regular readymade stores."

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HE tailor whom Mr. Adams investigated has many fit rivals—or, perhaps, it would be more appropriate to say misfit rivals—not only in New York but in most other cities. Just why men will allow themselves to be the victims of these misfit made-to-order tailors it is hard to say, unless it is the old, old trouble-"bargamania." That these merchants do a large business is evidenced by the number of stores operated, the wide-spread advertizing which they do, and the number of clerks employed-I hesitate about calling their employees salesmen. It costs at least $8 for the making and finishing of a suit, entirely outside of the material used. The man who wishes made-to-order clothes must be willing "Suits to order, superior suits at to pay a fair price for them or get astonishingly low prices, are the cheated. For the man who can afford Tailor's specialty. With wonder, ad- to spend only a few dollars on a suit miration and envy, the merchant tail- or overcoat, ready-made clothes from a oring trade has long observed his ex- reputable concern give far the best pansive generosity toward the public value. and marveled as to his methods. The wonder may be shared by his customers; the admiration and envy are not-they have to wear the clothes."

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O give this alleged "tailor" an opportunity to make good on a better class of goods, a demand was made for a Carr's Melton overcoat. Samples of the cloth were shown, guaranteed by the salesman to be genuine Carr's Melton, altho it bore no Carr stamp, while the real Carr's Melton is usually trade-marked. The price was $30, and the coat was ordered. "Now appears another phase of trickery. The coat was entirely finished when the customer returned for his try-on, but to

In another article Mr. Adams explains how masculine foppery is responsible for other tricks of the trade. "If there is one branch of trade in which 'Made in the U. S. A.' means value, it is in headgear. Intrinsically there is no more reason why a sensible American should roof himself over with an English derby or a German felt than there is for his investing in a Patagonian toothbrush or a billiard cue from the Shetland Islands. Yet it pleases man's vanity to wear a hat with an imported label. I called on an old friend, who is at the head of a large wholesale hat concern, and asked him this question: 'Why do so many Americans wear foreign hats?' 'They

don't,' he replied. 'But they do,' I insisted. 'I've been looking at the labels, and fully 30 per cent.

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"If you believe all you see inside a hat,' interrupted my friend, with a pitying smile, 'you need a new head. Go out and buy an imported hat at the next store you come to-I don't mean one of the big, reputable hatters, but any other stores and see what you get.' Mr. Adams did as he was bid, and called at a number of stores. He was shown hats stamped "Clayton & Co., England, imported by"; "Felix, Budapest, Austria, imported for -"; "made in England, Bannock Bros., Ltd., imported by," and numerous others. On turning up the

sweatband in each hat he found a second label, not so impressive artistically, but more in substance the little circle of the United Hatters of North

America. "That looks like a Union label,' I

rved to one salesman.

'It is,' replied the man behind the That means the sweatband.

counter. America fats the world on sweatbands, and every hat we import has a special union-made band.' The man who buys a trade-mark that he doesn't know, whether in hats, hams or hosiery, belongs to the species whose birth-rate is proverbially alleged to exceed the speed-limit-one a minute."

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F the merchant who misrepresents the goods he sells was merely an individual he would not be worth serious consideration. But he represents a type. Moreover, he is a symptom, a symptom of decay in honest merchandizing. He reflects discredit on advertizing as a whole. He is a present-day exponent of caveat emptor methods, which were supposed to have gone into the discard long ago. A merchant located in the best retail section of New York City advertized “furs at less than cost." Mr. Adams called at this store, and selected a muff and a neckpiece which were marked respectively "price $32" and "price $30." After some haggling, he bought both for $20, and the suave salesman assured him they were a real bargain as they were a fine selection of skunk.

When the goods were shown to an expert, he stated that they were made up of the white strips cut out of the natural skunk's back because they are inferior fur, pieced together and dyed, the set being a composite of scores of these little cheap odds and ends. The tail which was added for ornament was common, ordinary, twisted dog tail. The two pieces at wholesale would cost $7.50 or $8. A reliable fur merchant would sell these goods as dyed piece skunk, and they could be sold with a handsome profit for $14. But the lure of “bargamania” will extract more than twice this sum from the purse of the unwary. In these "bargains" the fa

kers' method of selling inferior merchandise on absurd misrepresentations at an exorbitant price—and let the customer squeal-is duly exemplified.

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EAL bargains unquestionably exist. Changes in style may leave a dealer with an overstock on his shelves—unusual sizes, remnants and odds and ends, which he must sell at cost, or even below, rather than hold the goods. This form of bargain sale is all too common, which is used as a clearance of old stock quoted at "values" which are not in the gods. Mr. Adams says: "Beware of the word 'value' in an advertizement. It, with its aliases 'made to sell at,' 'worth,' 'sells elsewhere at,' et cetera, is intended to convey a great deal, but in fact means nothing more than the dealer's arbitrary opinion, genuine or fictitious, of

the article.

"This brings me face to face with a puzzling phenomenon of modern store advertizing. Any one of the big standard stores may fairly be said to be 99 per cent.—yes, 99 per cent.-plushonest in its dealings with the public. Yet, by an unhappy perversion of policy, the typical honest store selects its less-than-one-half per cent. of dishonesty to play up in its announcements. By exaggerated claims in conspicuous print it invites the public inside its doors, where, apart from that small percentage of taint in the 'special' announcements, it proceeds to sell honest goods at an honest price. Every professional shopper in New York has had the experience of finding an article on a bargain counter 'marked down to $1.05,' and subsequently purchased the identical article a few counters away in the same store for $1.00. If this is sound business policy, then the public is sillier than the most cynic philosopher has ever dared to claim."

Pick up any

Louis Heilbroner, an experienced clothing man and a careful student of advertizing, says: "When you see a suit advertized 'Value $30.00; now $15.00,' don't ask yourself 'Is this worth $15.00?' Ask 'Is it worth $30.00?' If it is not, you have been tricked into that store under false pretences. You will be safer elsewhere." The advertizing world teems with these dubious formulas of "value." newspaper and you will find many reputable stores advertizing "unusual bargains" - $5.00 corsets at $1.97; scarfs worth $2.50 and $3.00 at $1.20; $35.00 suits at $24.49; $3.50 handbags at $1.95; women's hose, value $1.50, at 89 cents; and so on, through page after page. We cannot say that every one of these claims is untrue; in the mass, they are incredible. The big and successful merchants are too sound and skilful to sell their goods systematically at less than actual value.

Mr. Adams calls attention to two

corset sales in New York which, taken together, so clearly mark the difference between the uncommon honest bargain and the common dishonest one that the parallel is of special interest. One store advertized, "By special arrangement with the makers of (a standard make) corsets, we are able to sell certain of their best models at exactly half price." The other store advertized, "Corsets at half price. This sale is made by special permission of the manufacturers. The reduced prices apply to three discontinued models." Both of these advertizements, each from a different store, referred to precisely the same corsets, identical in style and brand. But what a difference in the advertizing? “Their best models" was a lie. The models were not the best; if they had been, they would never have been discontinued by

the manufacturers and sold out at a great reduction to the two stores.

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HEN the H. B. Claflin Company failed, last summer, there followed close upon the receivers' sale a lurid outburst of special bargains in alleged Claflin goods at startling reductions in the various department stores. Up to the time of these hugely exploited sales about one million dollars' worth of the real Claflin stock had been actually purchased by the stores from the receivers; not more. On the reckoning of what the purchasing stores advertized as Claflin stock, about one hundred million dollars' worth of it was distributed broadcast, shrieking to be sold at "bargain" rates. What did the bargain hunters get out of that? One per cent. of genuine Claflin goods and ninety-nine per cent. bunco. The bunco consisted of old, shelf-cluttering stuff which the merchants hustled down from its dusty habitat to sell on the strength of the advertizing "pull" of the Claflin bankruptcy. Commercial dishonesty. "These are the practices," declares Women's Wear, an independent and authoritative trade journal, from which the above figures are taken, "that are putting department stores in disfavor.”

Mr. Adams offers a simple test. "Watch the bargain-offering store and see whether it flaunts any 'specials' or 'bargains' in the season's standard goods. You will find that the stock in which these wonderful 'value' fluctuations take place is some article which depends upon style or newness for part of its value. Bargains in new Ford automobiles, Gillette razors, Remington or Underwood typewriters, Waltham or Ingersoll watches, B. V. D. or Poros-knit underwear, Colt or Savage pistols, and so on, are not to be found in the advertizing space of many stores. Occasionally, however, a standardized article may be sold at a discount.

ADVANTAGES OF MOTOR TRUCKS IN BUSINESS

Herewith I present an extract from a letter so baldly revealing a certain sort of business practice, that its genuineness would be hard to credit had not the original letter been shown me by one of the greatest and most reputable manufacturing firms in this country. This letter is signed by a large New York retail store which has enjoyed a better reputation than it apparently deserves. 'We can put a price of forty

nine cents on your watches and make our customers believe that we sell all watches cheaper than others, and when we get this thought firmly fixed in their minds we can easily raise the price on other watches $1.00 to $5.00. The customer will never know the difference, and we could sell a lot more of your watches for forty-nine cents than we could for a dollar-therefore, you ought to be happy.'

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"The manufacturers were not happy, and I very much doubt whether the shyster retailer was when he got their reply, which was frank and to the point. Bargains there are, in the shifting exigencies of trade, and bargains there will continue to be. But the store which regularly advertizes a dollar's value for a dollar is the store which usually can be trusted to give a dollar's value for one hundred cents."

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INCREASING THE BUSINESS AND CUTTING THE COSTS WITH MOTOR TRUCKS

S THE motor truck a business necessity or a mere fad that appeals to the universal desire for "something different"? Put this question to any man in the business and he will look at you in surprise, and then come back at you something like this:

"Fad, you say! Marshall Field & Company, the foremost retailers in the world, operate a fleet of 273 machines, which represents an initial expenditure of a

half million dollars. Gimbel

Brothers operate 222 machines, distributed among their stores in New York, Philadelphia and Milwaukee. In their New York service they have not a single horse. John Wanamaker operates 200. Every department store in Philadelphia has adopted power wagons. Is it reasonable to suppose that department stores—the shrewdest business houses in the world-would go to such lengths for the sake of a mere fad?"

On the face of it this array of facts appears conclusive evidence that motor trucks are a business necessity. But department stores are in a class by themselves and have requirements and prestige to maintain that are not found in the general run of business. So let's shelve this evidence and see what representative motor truck users in other lines of business have to say. Many stores that cater to high-class trade steadfastly cling to horse-drawn vehicles on account of the dashing, distinctive appearance of a pair of wellgroomed thorobreds hitched to a wagon of artistic design. They claim that no motor truck can possibly possess the appearance and advertizing possibilities of such a combination. Capper & Capper, Men's Furnishings, Chicago, gained much valuable prestige by this means. Says John S. Capper, president of the company:

"We used to operate a horse delivery system, and took great pride in our horses and wagons. We kept in close touch with the stockyards and obtained the finest horses that money could buy. We obtained much valuable advertizing by this method, and held the opin

ion that it could not be equaled, much less improved upon. But eventually we came to see the advantages of motor delivery. We tried it out under suspicion, and it won us away from horses.

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UR horse delivery consisted of two horses to a wagon. Now one motor truck takes the place of six horses and two wagons. By adopting motor delivery we have obtained two great advantages: first, a saving of approximately 25 per cent. in actual money; second, we have been able to increase our business by covering a wider radius. All things considered, horses are expensive to maintain. It takes a lot of time to keep going to the stockyards to buy new horses; a number of men and boys are needed to care for them, and then they are constantly getting sick. In addition to this, they are not as rapid nor as reliable as motor trucks. We have experienced no trouble whatever with our machines, and each one covers from 60 to 75 miles per day in actual delivery work. Furthermore, we are convinced that our motor trucks possess greater advertizing value than our old horse-drawn vehicles. We have found that our customers expect us to use motor delivery."

Walter Lytton, The Hub, Men's Clothing, Chicago, says: "It took us five years to become convinced of the merits of motor delivery, and now we couldn't be induced to give it up. In addition to obtaining valuable prestige and advertizing, we save considerable time in delivery and consequently cut its cost. We have reduced our cost-perpackage delivery to around two cents." package delivery to around two cents."

Talks with representative concerns in various lines of business brought out the fact that an acceptable delivery system must combine five essentials: (1) speed; (2) reliability; (3) prestige or advertizing-values; (4) low cost of operation; (5) the ability to cover a reasonably wide radius. The consensus is that horse delivery suffers by comparison with motor delivery on all five points.

As to the speed of motors and their all-around reliability there is no question. On these two points it is granted by all that they are immeasurably superior to horses. Point number three

- prestige or advertizing-values-appears open to question. It appears to be six one way and half a dozen the other. But the fact remains that many concerns that held on to horses for this reason have since given them up in favor of motors. The case of Capper & Capper, before related, is typical. Investigation invariably shows that concerns that voice this objection are horse lovers and cling to an antiquated system entirely for personal and sentimental reasons. Sooner or later, however, the demonstrable superiority of motors over horses wins them over.

Point number four-low cost of operation

appears difficult to prove by any set basis of figure comparison. Conditions differ so widely, and the motor truck industry is still so comparatively new, that as yet no basic figures applicable to all cases have been developed.

Motor truck manu

facturers, as a whole, however, claim that a truck will pay for itself out of savings in approximately one year. A number of users were quizzed on this point and without exception substantiated the statement.

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HAT the motor truck possesses great advantages over horsedrawn vehicles on point number five-the ability to widen the radius of a business-is obvious. Users unanimously proclaim its superiority on this point. And right here is where motor trucks will pay considerable dividends if for no other reason. Many a retailer has increased his business from 25 per cent. to 100 per cent. simply on account of being able to serve customers satisfactorily in outlying districts

trade that was hitherto beyond his reach on account of distance.

The limited endurance of the horse is his weakest point. Some interesting facts on this point were given by L. W. Ellis at a recent annual meeting of the Gas and Gasoline Engine Association.

Mr. Ellis said: "Ten hours a day is often assumed as the working period of a horse. Authorities claim that eight hours is better, or that six hours under a heavier load will accomplish the same volume of work with less wear and tear on the horse. The average farm horse cannot be depended upon for more than thirteen to fifteen miles of pull a day, nor more than four to six hours of work per day, as an average of even the busiest months."

Even horses that are used carefully will not work more than 50 per cent. of the working days of the year. It is possible to get 75 per cent. of the working days out of a horse, but this is done at the expense of his endurance; he wears out more quickly. And in 90 per cent. of the year's working days the motor truck will work practically twenty-four hours a day, if necessary. It is never "half sick," has no moods, and never has to be coddled. And a further advantage is that when it is working it is up to maximum efficiency the whole time.

The motor truck suffers no weariness of the flesh, and having twice to six times or even more the speed of the horse, can be housed at any distance from its working base that may be desirable for economy. Furthermore, the garage is not the unsanitary nuisance the horse stable is; and as a single motor truck, properly used, will do the work of from three to six two

horse teams, it is fair to calculate that the motor truck equipment required for a given amount of work will occupy no more than one-fifth the floor space required for horse equipment. This allows for the space occupied by wagons, horses, feed, and so on.

The necessity of stabling horses. near their work to save both time and strength going to "the job" and returning from it means a constantly increasing expenditure for housing. For in cities, and even towns, stables frequently must be located in districts of fast-rising property values.

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Three horses used to cover 18 miles each per day, making a total of 54 miles per day. Cost per mile worked out at $0.4983; cost per day, $8.9928; cost per year, $2,877.66.

One motor truck now does the work of these three horses, and covers 60 miles per day as against 54. Cost per mile works out at $.0917; cost per day, $5.5298; cost per year, $1,738.66.

This shows an actual cash saving of $1,039 per year, in addition to other advantages that accrue from the use of motor trucks. In this case the cash

saving made in the first year more than We recently received an order for paid for the truck. thirty-two tons of coal from a residence in Torresdale. This is about six miles from our yards. Our two trucks put all the coal into the residence in one day, each car making eight trips and carrying sixteen tons.

Every owner of a horse delivery system makes a liberal allowance for depreciation in the value of horses. This is conservatively estimated at 20 per cent. per year. Motor trucks, however, do not depreciate in value as rapidly as horses. There is little, if any, depreciation for the first year. Depreciation doesn't start the first year in iron and steel. Authorities are agreed that it takes about a year to get a motor truck properly "tuned up," so actual depreciation cannot start until a considerable time after the first year.

Another important point to consider is the possibility of accidents. When a horse is hurt it is usually laid up for some time. Motors, however, can be repaired in a few hours. And if a horse meets with a severe accident it usually "dies all over." With motors, broken parts can quickly be repaired or replaced, and the truck made as good as new.

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OW let's see what some users of motor trucks have to Rutland, Va., says: "I purchased a say. J. H. Eitapence, plumber, motor truck June 3, 1910, and have winter ever since. The only time it is operated it continually summer and laid up is about a week early each spring, when I have it cleaned up and painted. I maintain this motor truck

for two-thirds of what it cost me to maintain a one-horse team, with much less work in caring for it. I use my truck continually over rough and hilly roads, and it has never had a tow rope on it. It enables me to go after business in districts that were too far away when I used a horse-drawn vehicle. I send it anywhere within a radius of fifty miles. As a result of adopting motor delivery I have increased my business by fully twenty per cent., and have much more efficient delivery."

Owen Letter's Sons, Philadelphia, one of the largest retail coal dealers in the East, say: "The use of motor trucks has increased our business considerably by widening our trade radius. We bought our first two motor trucks in March, 1914, and have recently ordered two more. In the first few months that we used them they increased our delivery territory by onethird, and are bringing us business which before we had to refuse because we could not reach it satisfactorily with

horses.

"We use motor trucks for long hauls and find them of astounding superiority over horses. One truck does the work of five good horses, and our two trucks have extended our business to points like Torresdale, Holmesburg and Chestnut Hill, distant points from our yard which before we never tried to reach.

"Here is a typical example of this:

"Each of our trucks averages fiftyfive miles a day, and covers from thirteen hundred to sixteen hundred miles a month. One important advantage we have found with our trucks is that we can chute the coal at a greater distance than before. The body of the car hoists so high that a good incline is possible which gives us from four to six feet farther than before. In many cases where we used to have to carry coal in, we now chute it at a distance of twenty-four feet over the side-walk and lawn, then through the cellar window."

J. H. Michener & Co., Meat and Provisions, Philadelphia, say: "We purchased our first motor truck in February, 1911, and bought another in February, 1912. Our repeat order was based on the very excellent performance of our first truck. From February, 1911, to February, 1912, we do not believe we had to pay five cents for repairs. Our two cars do the work of nine horses, and have opened up new delivery territories for us, reaching customers which were inaccessible with horses. The principal advantage of having motor trucks, and the one that overshadows everything, lies in our ability to keep up our schedules on red-hot days in summer or slippery streets in winter.

"The humanitarian subject of this No one question is an important one. with a feeling of sympathy can endure without a pang the sight of unfortunate animals undergoing the misery that we so often see, and we believe that the time will come when all rightminded concerns will adopt motor trucks for this reason, if for 110 other."

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PEED in delivery enters very largely into the success of wholesalers. Retailers are growing more and more inclined to keep their stock of goods down to a minimum. Instead of loading up their shelves with all sorts of goods, the tendency of to-day is to carry a small quantity of a wide range of goods and to rely on their wholesaler to replenish stocks quickly. As a result the wholesaler that can guarantee speedy delivery finds the greatest favor with retailers.

John V. Farwell Company, Wholesale Merchandise, Chicago, recognized this tendency and met it with motor trucks. They have schooled their retailer customers to telephone in orders and expect delivery in an hour or so. They state that the use of motor trucks (Continued on page 366.)

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