different lines. We make many products. Our 
turnover of our total lines is more than five times 
per year, in the average. Some of the lines drop 
down to a turnover of two or three times per year, 
but others run as high as nine times. 
“There is little occasion for any distributor of our 
z00ds to have anything on hand at any time that he 
:annot move during the next month; certainly never 
more than two months should be provided for. The 
cost of selling and distributing under our plan was 
less than half last year, per dollar of sales, of what 
it was a few years ago when we distributed through 
big distributors, with big warehouses, who placed 
very big orders long in advance. I might mention 
that big orders placed long in advance were not lived 
up to when the big decline came a few years ago. 
Our little distributors took every dollar's worth of 
goods they had ordered. That is one thing that 
helped to bring about our changes, and another is 
that the small distributor works with us and takes 
advide and gives back good advice, where, on the 
sther hand, the small caliber. buyer for the big con- 
sern often tries to run the business of his source of 
supply without having brains enough to fill his own 
job. You will readily understand from this letter 
that we thoroughly believe in the closest and small- 
2st kind of buying on the part of the retail and gen- 
eral distributing trade. 
“In our own buying we refuse to buy from any 
sut entirely responsible concerns. We advise them 
sufficiently in advance about our probable needs, we 
-xpect from them immediate service. and we gen- 
>rallv get it.” 
Mr. CrarLEs W. Brown, the president of 
the Pittsburgh Plate Glass Company, which 
are large manufacturers of all kinds of build- 
ing glass, and who also deal in paints, var- 
nishes and painters’ supplies, strongly ap- 
roves of what he says is ordinarily termed 
“hand-tomouth” buying. His comments 
elative to the situation are as follows: 
“If a manufacturer has fifty customers on his 
hooks it seems to me that there is an economic gain 
py the manufacturer carrying a large stock rather 
han to have forty out of the fifty dealers carry a 
surplus, and the manufacturer can more competently 
determine upon the most advantageous production 
»f the article he manufactures. 
“Hand-to-mouth buying indicates a wholesome 
:ommercial condition. The purchaser is, in most 
-ases, amply able to pay readily for urgent buying. 
If he buys a considerable quantity of anv line of 
joods that are not readily salable he is frequently 
bliged to extend his credit. 
“In my opinion the whole trend of modern busi- 
ness conditions favors hand-to-mouth buying, as 
against the old-fashioned principle of carrying large, 
and frequently unnecessary. stocks.” 
ReapjustMENT Must BE ASSUMED BY 
MANUFACTURERS 
Mr. CrarLEs S. PeaRCE, the president of 
che Palmolive Company, who are large manu- 
facturers of soaps, cold creams, talcum pow- 
Jer, etc., has much the same opinion with 
respect to the situation as that entertained by 
Mr. Brown. Mr. Pearce states that it seems 
to him that any problems in connection with 
hand-to-mouth buying hinge on the question 
1s to whether the practice is economically 
sound, as most problems of this character are 
eventually solved as a result of such a test. 
He states: 
“It would appear that the manufacturer can 
aardly expect the retailer to take chances of chang- 
ng styles and top-heavy inventories that he himself 
does not want to take. 
“Perhaps a closer relation between manufacturers 
of kindred lines in the matter of trade practices, 
nitiation of styles, etc., would help to stabilize con- 
litions in each industry so that the burden may be 
shared and production costs kept down. 
“Any attempt to promote quantity buying in 
xrder to lower manufacturing costs, unless it has a 
sound and logical advantage to the retailer, will not, 
n my opinion, be effective in permanently solving 
the manufacturer's problems. 
“Past observation leads one to believe that the 
major portion of the readjustment must be assumed 
sy the manufacturers, few in number in any one 
ine, rather than the thousands of widelv scattered 
~etailers.” 
BeLieves Caution oF RETAILERS (CORRECT 
Mr. Martin L. StrAUS, the president of 
the Hartman Furniture & Carpet Company, 
states that except in a very few departments 
they “‘are not confronted with the problem 
of rapidly changing styles nor is our business 
nherently one which lends itself to an un- 
asually quick turnover. It is our policy to 
urn our merchandise as quickly as possible, 
>ut not at the expense of starving our de 
yartments.” Continuing. he says: