sreaking down the peaks and better distribut- 
ing the load. Mr. Needles says that of course 
in some lines the practice may increase the 
cost of production, but that in others it re- 
duces waste by eliminating the carrying of 
arge stocks with the attendant risks of fluc 
-uation in prices and change in styles. Gen- 
erally speaking, Mr. Needles says, the present 
distribution conditions are very satisfactory 
‘0 the carriers. 
Tae SouTHERN RaiLway SySTEM 
Mr. Fammrax Harrison, president of the 
Southern Railway System, has the following 
very interesting comments to make with re: 
spect to existing conditions: 
“We have no doubt that the practice of what you 
term ‘hand-to-mouth’ buying of merchandise by 
-etail distributors is ‘a permanent condition’ in the 
United States, having its stimulus in the individual 
advantage of the retailer, and its assurance in the 
development of dependable package car freight 
service. We believe, then, that the problem of 
adaptation is that of the manufacturer. For him it 
seems to be a new phase of the fundamental busi 
ness problem, that of widening the market—a prob- 
em which, under the pressure of the necessity of 
disposing of the surplus arising out of ‘mass pro- 
Juction’ the American manufacturer has heretofore 
shown amazing ingenuity in solving, e. g., by financ- 
‘ng installment buying.” 
Tue LouisviLLE AnD NaseHVILLE RAILROAD 
COMPANY 
Mr. Warreroorp R. Coie, president of 
‘he Louisville and Nashville Railroad Com- 
pany, advises that the speeding up of trans 
sortation facilities in the South since January, 
1922, has been something better than twenty- 
five per cent. Touching upon the question 
of the merchant and the dealer in local terri 
tory, Mr. Cole makes the following quota: 
tion from a recent traffic report: 
“It has been stated that on account of good rail- 
road service the Ford Motor Car Company have re- 
duced their inventory from thirty to ten days. It 
has been stated that a merchant (I believe in St. 
Louis) saved almost a million dollars in interest in 
one year on account of reduced inventory, and I 
6nd that the merchants in the small towns are 
joing the same thing. For instance, I know a mer- 
-hant at Springfield, Ky., who at one time carried 
several hundred rolls of roofing—at the present time 
he carries only approximately twenty-five. When 1 
asked him why he carried such a small stock he 
stated that he could call Belknap & Company (at 
Louisville, Ky.) at noon, place an order with them 
and have the freight the following morning, which 
is true. I find similar conditions exist at other 
points, and I do not see any change that is going to 
he made in this method of buying at an early date.” 
In conclusion Mr. Cole questions whether 
‘he consumer is appreciably benefited by the 
new buying methods, his reasons being as 
‘ollows: 
“The retailer, carrying a lesser stock and making 
1 more rapid turnover of what he has, certainly has 
sreatly lessened the average capital tied up in stock, 
and therefore, insofar as he is concerned this lessen- 
ng of the overhead can be passed on to the consumer. 
3ut it would appear that the manufacturer having, 
asimself, to carry produced stocks of about the same 
:quivalent as under the old conditions, has no less- 
:ned overhead in capital tied up and consequently 
no smaller interest costs, although it is true that he 
Joes save by reason of having a lower amount of raw 
materials. Necessarily he must pass his overhead 
-osts on to the retailer. Stated in another way, it 
looks to me as if goods, as priced to the retailer, are 
relatively speaking higher than they would be under 
the old conditions; consequently, as the retailer usu- 
ally figures his profit on a percentage basis, such 
may even compound what would otherwise be the 
cost to the consumer.” 
Tur Cricaco, BurLingTON anD QUINCY 
RaiLroap Company 
Mr. Hare Horpen, president of the Chir 
:ago, Burlington and Quincy Railroad Com- 
pany, believes that present buying practices 
present a tax upon the ingenuity of business, 
as well as those engaged in transportation, 
although he admits that it is along what seems 
to him to be relatively normal lines. As re 
yards the services which the railroads have 
given, Mr. Holden has the following com- 
ments to make: 
“Without doubt the remarkable improvement in 
character of the railroad freight service during the 
past five years has brought about a standard of trans 
~ortation which we of the railroads must expect to 
maintain: in the davs of car shortages prior to the