MANUFACTURING AND SELLING. 133
or because of the claim that the merchandise was not up to the sample,
a claim very difficult to prove or disprove.
The eal committee approved 8 cases for prosecution ab
the expense of the association. At the date of the report, 4 of these
cases had been won by the association and 3 were still pending. The
grosesniion of one was dropped, because it was found Hat the manu-
acturer had, in previous correspondence, allowed a return of
merchandise.
The report says: “Taken all in all, we have made a good start in
eradicating the common business evil of unjustifiable cancellation and
return of merchandise. So far, the expenses incurred by the associa-
tion for prosecution of cancellation cases by the trade-abuse committee
has been $217.78.”
Credit information.—The association maintains a credit department,
and the report says: “Forty-one concerns of our association made
use of our credit information during 1914, and we have obtained 304
reports regarding 103 firms.”
ee association also maintains a collection depart-
ment. During 1914 there were 1,280 claims filed, amounting to
$131,804.33. The Pepa} of the manager of the association says:
«At present, I can only report for the first nine months of 1914, and
out of 949 claims filed during the period we collected 733 without
referring to counsel, which means dat we were successful in. 77 per
cent of our claims. The total amount of the claims was $101,717.45,
out of which we collected $80,835.77, which is 80 per cent of the total
amount.”
Left-over goods.—Few manufacturers ever carry a very large stock
of finished goods. A line of samples is made up and the garments
are manufactured as the orders come in. This is to avoid being left
with a heavy inventory of finished goods on hand at the end of the
season. Left-over goods have to be sold at a sacrifice and the manu-
facturer is glad to sell them at cost. Following are opinions expressed
by manufacturers in regard to left-over goods:
The constant demand for new styles causes considerable loss very often to the
manufacturer. A great amount of merchandise is left over which must be sold at
from 30 to 50 per cent of the original price.
No man can come out whole on mt left over. He will not come out at cost, count-
ing the selling and overhead expenses.
We inventory goods at cost rien and get out about even. Usually we make expense
in addition to cost, but not administrative expense on inventoried goods.
Left-over goods, sample lines, etc., are generally sold to department stores and other
large merchants for their ““white-goods sales,” at about 33% per cent off. The loss on
sample lines of this firm amounts to about $3,000, or 1} per cent on sales a year.
The trade is to a large extent affected by the seasons, for at the close of any bad
season left-over goods are sold at department stores at a very large loss.
Left-over goods are sold to a jobber or a retailer at reduced prices, or we notify
retailers by mail that we have such goods and can send samples and prices. These
goods are always sold at a loss.
From the above opinions it will be seen that a manufacturer is
unable to carry as heavy a stock of finished garments as he could in a
more staple line. This condition is not only a detriment to the
manufacturer but also to his employees, for when sales are light he is
forced to lay off his help until new orders are secured.
RE of women’s muslin underwear do
comparatively little advertising. A few of the larger establishments
advertise extensively, but this is an exception to the general rule.