terference I doubt whether the manufacturers them- 
selves would ever get together and accomplish the 
desired results that could be brought about by an 
outside agency. For instance, in the tire business— 
as it is today, the small concerns manufacture at 
least one hundred different sizes and styles of tires, 
and the larger companies still more. This could 
easily be cut to one-fourth. . . . 
“The main features, however, are to make it a 
little more difficult to obtain goods readily; simpli 
fication of styles and sizes; and to do away with the 
competitors bringing out new styles which are 
merely met by his competitor and are detrimental 
to the situation as a whole.” 
Era or DecrLinmic CoMmmopiTy PRICES 
Mr. P. W. LitcurieLp, president of the 
Goodyear Tire & Rubber Company, com- 
ments on the situation as follows: 
Favors KEEPING STOCKS AT A MINIMUM 
“The conservative way to do business is to keep 
commitments and stocks at a minimum, providing 
there is no great inducement of lower prices nor 
anticipation of a rising market, nor fear of delays in 
transit. At the present time, in most commodities, 
buyers are able to get their orders filled on relatively 
short notice, due to ample productive capacity, and 
to have the orders delivered without delay, due to 
ample transportation facilities. There is also a feel- 
ing that on deferred purchases the price may be 
lower and resale prices consequently reduced 
“It is quite logical therefore that the hand-to- 
mouth buying policy will continue as long as this 
condition exists. 
“This tendency will undoubtedly result in keener 
competition by the manufacturers for business, 
which usually results in trying to meet the buyer's 
wishes, rather than standardizing product, and or- 
ganizing the manufacturer's distribution system so 
as to make prompt delivery possible on short notice. 
This undoubtedly increases the cost of production 
and the cost of distribution, and necessitates greater 
advertising expenditures. 
“The greatest opportunity for gain now is through 
organizing for the most economical distribution pos 
sible for giving prompt service. 
“As soon as conditions come into balance; when 
transportation requirements overtake capacity; when 
consumption requirements overtake manufacturing 
capacity, or when consumption requirements over- 
take raw material capacity, then larger orders and 
longer commitments will replace hand-to-mouth 
buying.” 
THE LEATHER INDUSTRY 
Mr. H. S. Brown, the president of the 
Central Leather Company, outlines the 
“hand-to-mouth™ buying situation in his in- 
dustry as follows: 
“It would seem that insofar as so-called ‘hand-to- 
mouth’ buying has been occasioned by improved 
transportation facilities or affecting production or 
distributing economies—the policy will be of a per- 
manent character. Where the policy, however, is 
the result of a style factor occasioned by highly com- 
petitive conditions, it would seem that the so-called 
hand-to-mouth’ buying policy may be, to some ex- 
tent, eliminated with a reversion to a standardized 
product. 
“In the heavy leather business, you of course ap- 
preciate that the process of tanning is so long in 
time that large inventories of finished and process 
stock are unavoidable. Tanners have, however, 
learned during the past few years that the excessive 
inventories carried in the past years are entirely un- 
necessary to give good service and, in the light of 
the present ‘hand-to-mouth’ buying policy, which is 
apparently world-wide, inventories must be kept at 
the lowest possible point.” 
THE PAPER INDUSTRY 
Mr. ArcHiBALD R. GRAUSTEIN, the presi 
dent of the International Paper Company, 
together with Mr. J. L. Fearing, the vice 
president of the Company and in charge of 
sales, make the following comments insofar 
as the business of their industry is concerned: 
“Buying for immediate demand, from ‘hand-to- 
mouth,’ does apply to distributors and retailers in 
the paper industry, but there are special reasons 
which have brought this about. . 
“In the writer's opinion, it is better to have sur- 
plus stocks of paper in the hands of the paper mills 
rather than have them in the hands of those with a 
tendency to speculate. 
“It seems to me up to the mills to make the neces 
sary readjustments and in a broad way, it seems to 
be to their interest to do so, as tending to keep them 
in proper control of their markets.