UC.NRLF bS^ Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/commercialorganiOObrucrich Commercial Organizations Commercial Organizations Their Function, Operation and Service A Compilation of Material from the Proceedings of the National Association of Commercial Organization Secretaries and its Predecessors American Association of Commercial Executives, and the Central Association of Commercial Secretaries With an Introduction by Paul T. Cherington Edited by William George Bruce r— -*=:<^vVi/> Ji THE^ BRUCE PUBLISHING COMPANY MILWAUKEE, WISCONSIN Copyright 1920 by the Bruce Publishing Company DEDICATION This work is dedicated to that type of Ameri- (•aii, so abundantly found throughout the land, who gives unselfishly of his time, thought and effort for the wellbeing of his fellowmen; who, through the medium of the modern commercial body, promotes the economic, civic and social progress of his community; who daily gives ex- pression to the highest aspirations and motives of citizenship; who, through constant interest and concern in his home town contributes a real man's share towards maintaining the prestige, power and prosperity of a great nation. ^:5120G PREFACE The literature devoted to or*>auized community promotion along economic and civic lines, as exemplified through local commercial bodies in the urban centers of the United States, has been found to be extremely meagre and unsatisfactory. For the most part it has been fragmentary in form and has provided nothing in the way of a comprehensive and helpful treatment of the subject. With the growing tendency on the part of communities towards material and social progress through collective effort this dearth of instructive literature has become increasingly manifest. The theorist, it is true, has spoken variously and voluminously on the subject, but the man who has travelled the road of experience in this domain has thus far remained silent. iVt least his voice has not gone beyond a limited range to that larger constituency which stands ready to listen and profit by his counsels. The lessons afforded by actual service have been exchanged by commercial secretaries in somewhat restricted circles. But, here authoritive voices have enunciated the fundamentals that must be observed, the methods that must be employed, and the results that may and can be achieved. Splendid studies have been made by those actively identified with successful commerce bodies, but their observations and conclusions have thus far remained imbedded in the routine of convention proceedings, and hence have not been readily accessible to the larger class of students in this field of activity. They have brought guiding principles and policies into bold relief, constructed the organization machinery to its last detail, outlined the mode of its operation, and established the relations that must be observed by the active factors and forces. They have touched the mainsprings of organization success, and created the modei-n commerce bod}^ as defined and interpreted in American urban centers. The National Association of Commercial Organization Secretaries and its two preer help me to get it changed ?'' Now, his proposition presented in definite, concrete form, the trade organization point of view, which is that the sum total of the duty of the organization is to help any particular member to get anything done which he thinks will benefit him pecuniarily in his business. I had never heard that point of view stated in such a clear-cut, straight-out-from-the-shoulder way as that, and I listened with a good deal of interest to see what the answer would l3e. "Well, Mr. F ," the President said, in answer, "frankly, I don't know whether we will or not. If you think the pavement in front of your store ought to be changed, and will write me a letter about it, I will see what our committee on municipal affairs thinks about it; but its answer will de- pend entirely upon whether it would be for the benefit of the people of Boston as a whole to have that pavement changed. In other words, if it is for the benefit of the city as a whole that the pavement be clianged, we will try to get it changed: and, if it is for the benefit of the city as a whole that it should stay as it is, Ave will oppose its being changed ; and, as a matter of fact, we will favor its being changed or oppose its being changed just as quickly whether you are or are not a member of the chamber. What you suggest is not what we are in the business for." And then he spent two or three minutes telling his caller the kind of things which the chamber was formed to promote, and ended by saying that it was evident that in working for the kind of things he had enumerated, the organization would be working to promote the interests of the great majority of busi- ness men; that if by working for these things they were pro- moting without a single exception the private interests of each individual member of the chamber, they would be very glad of that fact; and that if by working for the things which he had named they happened to be working for something which was against the private interests of some individual member, they regretted that fact — but that it was clearly the duty of the organization to go ahead, regardless of that, and work just as hard a^ possible to get it done. That conversation gives you a clear-cut statement of the two points of view. 34 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. And what was the effect on the apparent^ selfish, grasping, hardheaded business man, who came in so thoroughly imbued with the trade organization point of view? Did he get angry? Not in the slightest. Bringing his fist down on the desk, he said: ^'By George, that's right. I never understood the idea before. I will gladly join and help.'' He sat down and signed an application. But that was not all. Tliat man had seen a new light — he had been converted — and he went out and, with- out being asked by anybody to do it, secured and sent in five applications of other men within a week. The Commercial Organization in the Town or Small City By J. P. HARDY For the purpose of determining wherein the problems of small cities vary from those of larger communities, and to what degree size accentuates this difference, I have divided the cities into three groups as follows: Cities of 200,000 and over are designated as Class A. Cities of not less than 75,000 nor more than 125,000 as Class B. Cities of less than 75,000 as Class C. Five cities in Class A with an average population of 360,000. Five in Class B with an average of 98,000, and thirty-seven in Class C with an average of 30,000 have furnished the informa- tion on which this paper is constructed. Before entering on a general discussion of the subject it will, I believe, be both in- teresting and instructive to compile and analyze the answers received to the questions. Best or Most Unique Achievement Question No. 1 : What is your best or most unique achievement for the past five years? The answers to this question varied to such an extent as to mal^e it necessary to tabulate them before attempting their analysis. Answer Class A Class B Class C Improvement of City government 12 9 Securing New Industries 10 Adjusting of Transiportation rates 1 5 Campaign for Membership , 1 Organized Retail Merchants 1 1 Note: — ^l^'his paper is based upon a questionaire designed to reveal char- acteristic small town activities and the expressions of the small town secre- taries. THE COMMERCIAL OROANIZATION IN THE SMALL CITY. 35 Answer Class A Class B Class C Organized Agricultural Development 1 3 Built Public Buildings 113 Adjustment of Insurance rates 1 Trade Extension Tour 1 1 Promotion of Chautauqua Exposition of Industrial Show 5 Civic Improvements Elimination Fake Advertising 1 Improvement of Service of Public Service Corp 1 Securing Conventions 1 Re-organization of Chamber 1 C Parks and Playgrounds 5 Good Roads 2 Charities 1 2 Extension of Transportation facilities 1 3 Educational Promotion 1 Remembering that one and one only achievement was asked for, it is interesting to note that in answers received from forty- seven cities, twenty distinctive achievements are recorded as worthy of note. It is fair to presume that during our five- year period, embodied in the question, many other notable results were achieved hy all the cities Avho record answers to this question. Some index, therefore, of the ambition and purposes of cities in general may be gleaned from these an- swers. It will be noted that the size of the city bears evidently no relationship to the importance it attaches to any one of the accomplishments recorded ; for those noted by Cities of Classes A and B are also recorded by those of Class C. Dividing the answers received into three subdivisions, namely. Industrial, Commercial and Civic, we find that in the small cities: Twenty -one relate to Industrial Achievement. Four relate to Commercial Achievement. Forty relate to Civic Achievement. AVhile one achievement only was asked, some cities record- ed two or more, which will account for the fact that sixty-five answers are returned by thirty-seven cities. Kinds of Promotion Emphasized Question 2 : What kind of promotion do you emphasize most? Industrial and Commercial only Industrial and Civic only Commercial and Civic only Answer Class A All three equally 2 All three mostly civic 2 All three mostly industrial 2 1 3 Class B Class C 3 14 2 6 \ 3 36 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Class C Civic only 3 Industrial only 3 Commercial only 2 Industrial and Commercial only 2 Industrial and Civic only 1 Commercial and Civic only 3 An analysis of these figures indicates that in all classes of cities the preponderance of effort is laid on civic activities. In the small cities it appears that efforts along one line only, while exceptional, are evidently, confined to cities in this class only; larger cities in both Classes A and B are indicated as engaged in all three forms of association activities. A closer study of the answers to this question shows that in small cities stress is laid on the commercial or industrial phase of association work, as they happen to be located in agri- cultural or manufacturing localities. The only exception to this rule being in those cities located in agricultural districts, in which the association has interested itself in agricultural development; in such cities surely they may be credited with industrial as well as commercial activity on the theory that every farm is a factory. Large Town vs. Small Town Problems Question 5: What do you regard as the most distinguishing difference between- the large and small town problems? As this question calls for an expression of opinion and not of necessity of experience, I shall not tabulate the answers by classes. So many and varied were the answ^ers that I have concluded to quote from a selection only, as follows : "Siz?s of issues involved." "Problems larger but not more numerous." "Benefits more apparent in smaller towns, making it easier to get co- operation." "In small towns men know one another so well that they often fail to harmonize." "Work easier in large city." "More direct service required in small city." "Large cities have large problems unknown to small cities ; small cities many problems which large cities have already solved." "The large city must employ heroic measures to correct evils resulting from lack of city planning when they were small; small cities must give citizens vision enabling them to prepare for the big city of the future." "Finance is the difference, the little city usually lacks the big fellorw who will Invest and await results." "Problems proportionately the same ; finance the little city's difficulty." "The attitude of membership to organization." "The problems are largely identical — the machinery for w^orking them out naturally more limited in the small city." THE CHAMBER OF COMMERCE IN THE CITY OF "AVERAGE." 37 "The knocker's knock is not so keenly felt in large cities as in gmall." "Large cities place emphasis on the word better — small on the word Mgger." "In large cities the association duties are specific and definite, while in the small city they are variable and general." "The small city problems are more personal." "In the large cities, that is in cities of say a quarter of a million i)opula- tion or more, the man of large affairs considers himself a permanent resident and citizen of the community in wliich he lives, and, therefore, takes an active interest in the work cf the city's commercial organization. Practically all of his business affairs are in the city in which he lives, and he is, there- fore, interested in its commercial progress. "In the smaller cities, the same type of men do not give the same atten- tion to local affairs and, as a result, the work of commercial organizations in such cities is left very largely to men who cannot be properly classed as c:m mercial leaders. This is due to some extent, I believe, to the fact tliat the men of big affairs in these smaller cities are more deeply concerned in the affairs of the larger communities near at hand and they consider the civic and commercial problems of their own community too unimportant for their attention. This statement is, of course, not true with respect to every big man in Fmall cities, but it is true with respect to many. As a natural result the large city organization has the advantage of the advice of the most suc- cessful business men of the city ; men of ripe experience and sound judgment ; men w^ho have the means to properly finance the projects which are determined to be for the best interest of their organization or community. The small town organization on the other hand is often obliged to be content with the advice of men of limited ability, experience and means. These men may have large ideas, but they often lack the influence and means through which to translate their words and plans into deeds." The preponderance of evidence elicited by the foregoing twelve questions is to the effect that the problems of the small city are practically the same as those of the large cities — as far as concerns the problems tliemselves — the distinguishing dif- ference between the tAvo being, that in small cities the questions of finance and service b}^ organization members is much more acute. It seems to be pretty well established that the efforts, aims and ambitions of associations in small cities cover the Avhole field of association work. The Chamber of Commerce in the City of '* Average" By JOSEPH F. LEOPOLD This new city named "Average" was founded somewhere in the United States in July, 1917, and has grow^n but little since. It is neither an industrial nor commercial community, neither high-brow watering place nor mining camp, but a mix- 38 EFFICIENCY AND CHARACTERISTIC ACTIVITIES ture of all in proper proportion as built from the information furnished by some seventy-seven of the secretarial craft. The city of ^^Average" is just 19,000 in population and its Chamber of Commerce has an annual income of $4,100.00, with a gradu- ated scale of membership fee from fl.OO to f 300.00 per year and about 155 members in good standing. In other words, "Average'^ is just the information from small cities over the whole United States ranging from 2,500 to 50,000 population "boiled down." Each of these cities re- quested for information owns and operates in some fashion a commercial organization. Their organization incomes stretch from $75.00 per annum to $75,000 per annum, but the annual income of "Average" is only |4,100, showing that many of the cities smaller and larger, too, than "Average" are very inade- quately financed. It would be unfair to try to explain in detail what the small town organization could do without first giving a mo- ment to the secretarial wail that comes practically as one voice in answer to the questionaire citing the small town handicaps as compared A^dth the city larger than 50,000, which, in this statement, is classed among the larger communities. Let us sum up some of the handicaps : First: The small town usually has New York ideas com- mercially and Pittsburgh thoughts industrially. Second : The income is small, the secretary is poorly paid, with but scant office help, if any. Third : There are no bureaus in charge of expert indus- trial managers, publicity men, etc. Fourth : The small town chamber of commerce members usually think in terms of dollars rather than units of com- munity betterment. Fifth : Small income curtails bulletins, etc., with resulting small interest and consequent poor committee service* For the sake of convenience, and to skeletonize the mass of information received so that the results might be seen at a glance, the accomplishments are listed under headings in the order of their importance. It is interesting to note the simi- larity of work and the lines of endeavor most generally attempt- ed; also, a measure of accomplishment in all lines in accordance with the income of the organization, rather than in accordance with the population, location or special type of city. THE CHAMBER OF COMMERCE IN THE CITY OF "AVERAGE." 39 f>. 7. 8. 1. Kctail Worfc— 62. Credit Bureas, Trade Tours, Collection Bureaus, Buy-at-home Campaigns, Dollar Days, etc. 2. Industrial Promotion — 59. By Bonus, etc. Helping Local Industries, Bidditig for New Industries. 3. Civic Improveme^it — 44. Health and Welfare of Public, Parks, Playgrounds, Government, Public Nursing, Rest Rooms, Comfort Sta- tions. 4. National — 43. Largely Red Cross, Liberty Bond, Garden Work, Recruiting, Patriotic Demonstrations, etc. 5. Agricultural — Fartn Agent — 42. Increased Acreage, Better Farming Condition, Bringing Farmer and City to- gether. Picnics. Municipal Improvement — 19. Water, Sewers, Buildings, Streets, City Planning, etc. Advertising and Charities In- vestigation — 18. Classifying Advertising — Eliminating Fraud in Both, Federation of Charities. Good Roads — 17. Tvocal Highways, State, Main Market and National Highways, Permanent Road Building, Auto Club Work, Signs, etc. 9. Publicity and Conventions — 15. Magazine, Newspaper, Mall, etc. Bulletins, Information Bureau Conventions. 10. Traffic Worfc— 13. Passenger Service, Freight Service, Freight Rates, Claim Collection, Auditing, etc. 11. Special Features — 12. Buying Own Home, Bringing in Outside Attrac- tion, Musical Programs, Entertainment of National Figures. 12. Legislative Matters — 9. City, State, National. 1.3. PuMic Utility Work— 4. Traction Work, Fights on Gas and Electric Rates, Express Rates and Service on All Public Utilities, Telephone Mergers. 14. Surveys — 3. Social, Industrial, Health, Sanitary, etc. 15. Employment Bureau — 3. Local, State. 16. Leadership — 4. General Work. 17. Labor Disputes — 3. Mine, Factory and Other Labor Troubles. 18. Financial Work — 2. Raising Large Funds for Special Purposes. 19. Against Industrial Promotion — (Residence Section.) 20. Oet-Together Lunches. Weekly, Bi-monthly, Monthly, Special, etc. 40 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. A hurried glance here shows plainly that five particular activities are uppermost in the small town mind; namely, re- tail affairs, industrial promotion, civic improvement, agricul- tural development, and national matters. Municipal improve- ment, advertising and charities investigation, good road work, special features and legislative matters follow next in impor- tance. In other words, it shows what the town of "Average'' is doing and not what it can do. ^ Some of the organization endeavors are peculiar to some particular community, and, of course, are not subject to debate here. The question of labor disputes is also a line of activity that is limited to certain cities and to the whim of fate. Traffic work requires skilled men and extra income. It is desirable and always needed. Employment problems, legislative matters, public utility affairs, various kinds of surveys and special finan- cial work are all subject to certain contingencies of necessity and frequently are not usable lines of activity for a period of a year or even more. Leadership is never enduring and requires continuous in- jections of spirit along its hypothetical backbone to make it actual, concrete and visible. Five and one half years of study on my part have made me believe that a chamber of commerce is conMriictivc leadership in community matters and that regu- lar, well outlined and prepared lunch programs are the surest and quickest means to the end. With leadership assured, all else is easy. And following come the four fundamentals of com- munity organization activities in a definite way. Retail affairs are not only important, but are showing vast strides under the capable leadership of intelligent commercial organizations. Retail affairs touch usually the pulse of the membership and the hip pocket of the most influential citizens in the community, and where rests his pocket book, there rests his heart and interest. Trade expansion, credit rating, collec- tive advertising, cooperative deliveries, and other chamber of commerce stimulants have done and will do wonders toward standardizing retail business. Interdependent with retail affairs is industrial develop- ment. Business men are responsible for the usual cry for more factories and the secretary, lucky enough to be hired in a town that some manufacturer wants to get into, is made for life. Factory grabbing has been reduced to a business basis, but is THE CHAMBER OF COMMERCE IN THE CITY OF "AVERAGE." 41 far from being solved. Small towns especially are reaping harvests in industrial development. The reason is plain and not to be denied. The wise manufacturer wishes to get into new territory with more easily satisfied labor, all other condi- tions being considered equal. Small cities should and wall continue to strive for industrial development. It shows big re- turns quickly and is the most popular of all chamber of com- merce '^results." "Civic improvement'' is the wish and desire of all good citizens. Each individual and neighborhood suggestion reaches the wide awake commercial organization. The result is or- ganized activity on a community need and a stride taken in city betterment. The growth in number of parks and play- grounds, the better sanitary and living conditions, public com- fort stations and rest rooms, clean city government and an in- creasing standard of citizenship can be traced in many small cities to the influence of organized effort in community bodies. Agriculture is the all-important problem of this and every other era of history. Small towns are especially fitted to pro- mote and develop all things agricultural. By getting expert farm demonstrators where none now^ exist, by preaching the doctrine of better farming conditions, by helping to find mar- kets for crops and labor to harvest them, by relieving the farm- er's mind of the bogey that all urban dwellers are crooks and instilling a feeling of dependence in the agriculturalist — much has been accomplished for the farm and farmer, and the end is not yet. Most of the credit is due the small town and much to the small town chamber of commerce. Such w^ork is the work in the small town. Such is the ac- tivity of "Average." It is good, but not good enough. We need more money to spend and more for full time, trained sec- retarial executives. We can't blow^ hot and cold. We can't practice law and run a chamber of commerce. The secretary of "Average" is only about half-twined. He's still part in- surance man, laTN^er and newspaper man. Yet he has done wonders. CHAPTER 11. The Relations Between Civics and Commerce By O. B. TOWNE Text books on civil government define civics as applying to those laws, methods and systems which administer the affairs of government. In a more technical sense the definition refers to the governmental and judicial functions of cities. Usage, however, has measurably broadened the meaning of the term, especially since the development of the commercial organization idea. Dictionaries of standard merit accept the broader inter- pretation, and tlie definition now includes altruistic and wel- fare work and the humanizing of commerce, as well as civil government. We accept the theory- of the definition, but in meeting the civic and commercial requirements of the day, we find actual limitations and danger lines which puzzle even the most ana- lytical mind. Where does civic work leave off and commercial work begin? Where does commercial work leave off and civic work begin? Where does civic work leave off and politics begin? Is there benefit accruing to the others when emphasis is placed on any one of the three? What are the opinions of secretaries and other business and professional men, who have been long in the field? What are the facts? A city reflects the ideals of its citizens. This is true in commerce as well as in civics, although it will be more appar- ent in civics. The standards of community life are boldly im- printed on every department of community activity. It is true that many communities have developed and grown rich without paying the least attention to civics. But a community without civic develojjment remains at a stand- still and commerce will eventually blight, if not decay. Com- merce may make civic development possible in a pronounced degree, but civics in return makes commerce human instead of mechanical, thus making permanent commercial progress possible. 42 THE RELATIONS BETWEEN CIVICS AND COMMERCE. 43 In speaking of commerce we have three things in mind. First, manufacturing; Second, distribution; Third, community values. The hardest thing in commerce is to find the man who can most successfully manage the affairs of industry. But, there are those who can. Their experiences in civics are interesting in the extreme. They have learned that it is commercially profit- able to keep machinery well repaired and protected, rather than to neglect it and when it thus becomes useless, replace it with new. They have also learned that it is commercially profitable to protect the factory employee, to keep the quality of his ef- ficiency at a high degree, rather than to drive him to the break- ing point and then replace him with the untried and the un- trained. But it takes a man wdth a mind and spirit tuned to the civic idea, to see this and to profit commercially thereby. It has proved true that an employee who is well fed, who lives in decent sanitary surroundings, with the beautiful in nature and art to encourage and inspire him, will turn out more perfect Avork, more of it and with less wear, tear and waste, than will an employee, whose surroundings engender low ideals of honesty, poor health, immorality, debauchery and otherwise impaired ability to render even fifty per cent effi- ciency in service. Important problems of manufacturing are contentment, health, clear minds, skill and efficiency among the employees. Those business men who have made the experiment show", by the increased output of their plants, that there is net profit in emphasizing the civic end of industry. In Germany, civic effort is a great feature of community life. Dusseldorf business men, cooperating with the city gov- ernment, previous to 1913, contributed $64,000 a year to parks and 1110,500 a year to theatres and orchestras, in order that the people of that city might see and hear the best in music and the drama for their inspiration and thinking, and not be compelled to seek pastime in cheap beer gardens with debauch- ing entertainments amid degrading surroundings. And a busi- ness man of Dusseldorf said in 1913, when speaking of this remarkable fact, "It is a business investment which yields net profits to the manufacturers, and to industry." We find the same condition true in Frankfort, Munich, Cologne, Hanover, Mannheim, Ulm and many other cities in 44 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. the German Empire, as well as in many cities of France, Italy, Belgium, Sweden, England and Austria. In all the European cities mentioned great attention has been paid to housing conditions for the employees, for the very obvious reason of keeping them in good health, in pleasant sur- roundings and in a contented frame of mind. An enlightened, well-housed, healthy, and a mentally, morally and physically clean buying public, with an eye ac- customed to the beautiful in nature and in art, is going to buy better goods, and do it more intelligently, than will a public of the opposite status. Not only will it buy better, but it v/ill buy more, because less will be squandered for the degrading things of life. The market for the retailer will, therefore, be more de- sirable and more secure. Civics Avill also mean net profit to him. But what of community values? Property values are de- termined by two things — commerce and civics. The business location and business utility of a piece of property determine, to a very large ext-ent, its market value. But civic improve- ments, such as jjarks, boulevards, schools, civic and commercial centers, good fire and police protection, improved streets, sewer and water, gas and electric lights will increase the value of that same property, many times. This is especially true of resi- dence property, for the elements of convenience and environ- ment have greater influence on the value of residence property than business property. The effect in all instances is direct. Concerning the extent to which a commercial organization may legitimately interest itself in civic affairs and the danirers encountered in this work, a vital consideration is the nature of the commercial organization. In some of the older eastern cities, the commercial organization devotes itself almost entire- ly to commercial matters, to the exclusion of civics. This is due, largely to the age of the cities in question, together with the fact that the commercial organization in its present status is of comparatively recent origin. Manj^ of the older cities of the east have had purely civic organizations for many years. These are sectional, for a single civic w^ork, for the permanent beauti- fication and maintenance of specific residential districts, or for community wide improvement. The board of trade, from which the present commercial organization has sprung in these same cities, was purely a commercial body and has not been tolerated in the civic field. THE RELATIONS BETWEEN CIVICS AND COMMERCE. 45 The dangers to any voluntary organization, such as is the average commercial body, are from an internal rather* than from an external source. Its main problem is in keeping its membership intact while it establishes itself in the community. Dangers from without usually serve to knit, more closely to- gether, the component parts of the organization. The reason for and strength of a commercial organization lie in its ability to serve the community. The only danger which need be considered is that which impairs this ability. The danger, although it may come from m,any sources, is but a single danger — internal disruption. A commercial organization must avoid participation in re- ligious controversies ; it must not take sides in keenly partisan political campaigns. It must avoid advocating the cause or candidacy of any individual or group; using its influence ex- clusively for the commercial interest of an individual or group of business men ; interfering with or opposing, directly, officials of constituted authority; any tendency toward exclusiveness ; technicalities; taking sides in capital and labor controversies; taking credit for the work of other organizations; interfering with or openly opposing the operations of old established civic bodies ; being impractical, shallow and unprepared in its civic promotional work ; allowing politics, religion or factional in- terests to creep into the organization and influence its conduct and the election of its officials. The manner in which questions of principle may bring the commercial body too near the danger line of politics, the actual status of the organization in the community will be one factor, and the relation of the principle in question to the commercial and civic activity of the body will be the other. The status of the organization in the community must be constantly main- tained and improved. The same thing is true regarding the commercial and civic activity of the body. "Public questions of principle," according to Mr. Bowers, of elamestown, "are the very elements of political platforms upon which men differ, and in that possible difference of opin- ion lies the danger to commercial organizations." William George Bruce of Milwaukee, on the other hand, writes: "Political parties have their adherents; candidates have their friends. Both adherents and friends may be mem- bers of the commercial organization. To exert partisanship 46 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. here means to invade the field of practical politics and the domain of opposing political parties and organizations.'' Questions of principle touch a community when they treat of governmental safety, justice, commercial equity, humanity and posterity. When public questions become any less broad in their scope they pass into the twilight zone and cease to be questions of principle. Many differ over the line of demarcation between civics and politics. To me, it appears that the purpose for which the commercial body is formed has a great deal to do with this whole matter. A commercial organization has as its general purpose seiwice along commercial and civic lines. It has no legally established position in the governmental affairs of the community and, therefore, may not trespass on those grounds with impunity, except in the spirit of service to commerce and civics. The policy of the useful commercial organization must be constructive in every sense. To be constructive, it cannot be partisan even in the slightest degree, for partisanism strikes at the one vital spot in the organization — internal cohesion, and implies a destructive policy towards the tenets of its oppo- nents. Mr. Bruce of Milwaukee, says, "The line of demarcation between civic activities and political activities, drawn by com- mercial bodies, must lie between ante-election campaigning and post-election cooperation, between selfish partisanship and un- selfish non-partisanship, between party preferment and commu- nity progress and welfare." While this is true, it does not go far enough. In the words of Lucius Wilson of New York, "The duty of the commercial organization is to teach the people to think." He did not say think rightly. If he had, he would have assumed that someone in the community knew which was the right way to think and had the authority to dictate. No one may dictate unless so authorized by the law or by the people. No one is so authorized in the, commercial organization. The line of demarcation between wholesome civic activi- ties and dangerous political controversies lies in the attitude and conduct of the commercial body itself when dangerous political questions are involved. In wholesome civic activities, the organization is seeking to serve the whole community along THE RELATIONS BETWEEN CIVICS AND COMMERCE. 47 the line of civic and commercial affairs. If the organization is impartially constructive in the assistance it renders the public to help that public solve each problem on its merits, it can go to almost any extent in its activities. The phases of commercial organization work which come entirely under the head of civics are numerous. To a well bal- anced and wisely governed commercial body the field for civic activity is very broad. Much of it, however, comes under the head of commercial civics, for it has to do A\ith those phases of governmental and humanitarian effort which increase or de- crease the profits of commerce. The line of demarcation between commercial and civic af- fairs is not so difficult to define, even though civics has a great influence on commerce. J. P. Hardy of Fargo, believes "it is parallel to the line that marks the difference between policy and administration.'' He gives this definition with special ref- erence to the science of government. Mr. Bruce of Milwaukee, enlarges the scope of this definition, however, when he writes: "The line of demarcation places pay-roll and profit on one side, and the physical and moral well-being of the community on the other." INIr. Gumm, of Fort Worth, sums it all up in one word. "Dividends.'' Mr. Nelson of Bingha;mton, says: "Business Profits." To my mind the line of demarcation may be found by de- termining the direction of the activity. Is it toward, or is it away from commerce? If the direction of the activity is toward commerce, either directly in trade promotion, increasing divi- dends, transportation of freight or manufacturing, or indirectly in the improvement of streets and housing conditions and building good roads, it may be said that the activity is purely commercial. If, on the other hand, it is humanitarian welfare work, and does not touch commerce either directly or indirect- ly in matters of business, nor affect commerce even through civil authorities, it may be said to be purely civic. But how about those commercial organization activities which may not belong to either class? There are exceptions to all rules, of course, but it is a question whether the number is very large and also whether a detailed analysis of the ultimate purpose and effect of the activity would not determine pretty accurately the exact direction of it as regards commerce. There is general unanimity of opinion among secretaries 48 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. regarding the dependence of commercial success and progress upon good government, but the extent of that dependence is variously estimated. Mr. Bruce of Milwaukee, says : ^^Good government means to afford that freedom of action and that protection to life and property which enables the merchant, the manufacturer, the mechanic and the professional man each to perform his allotted part of the world's work.'' Howard Strong says : "Good government generally means an all-around square deal for everybody.'' The reason for government in the first place indicates a certain degree of responsibility for the success and progress of business. Governments and laws are established primarily that the right to life and livelihood may be enjoyed in a reason- able degree of peace and security. The commercial organization is composed of volunteers with a wider common ground of understanding. The member- ship is made up of business men with a common purpose and, hence, with a wide field of common interests. This organiza- tion is not established by law for administrative purposes. It represents the collective citizen in thinking out and promulgat- ing plans, methods and projects for today and for future gen- erations. When it speaks it can only speak in an advisory ca- pacity, in so far as the city administration is concerned, and when it acts it can only act in a cooperative capacity. It can only guide, direct and lead the people in their progressive thinking and assist them to co-ordinate their efforts to secure justice and equity while solving the problems of the times and place. In discussing the possibility of the commercial organiza- tion being drawn into legislative matters of city, state and na- tion, two things should be considered: First, who will specifi- cally set forth the business and civic needs of our community as a whole, if the commercial body does not? Second, should the general civic and business interests of the community sit calmly back and leave the laws, which vitally affect their affairs, to the judgment of the legislators, who as a rule, are from small communities, when in the halls of legislation, of city, state and nation, private interests, private institutions and special or- ganizations are rampant, seeking favors and special privileges? Commerce has been the football of politics almost from the THE RELATIONS BETWEEN CIVICS AND COMMERCE. 49 founding of the government. It has been the party issue in almost every national campaign for a century. Few business men have had a word to say about it all. Business men should have something to say in the affairs of the state and nation. They should have more to say about the real business end of the local government. Commerce and civics, which every effort is being put forth to improve — should be heard from, directly, when laws of vital importance to both are to be enacted. They should be represented at the hearings and conferences, but more especially, they should be represented in the membership of the legislative body itself. Good civic conditions and good citizenship advertise a com- munity. The greatest source of desirable publicity is a citizen who is in love with his city and has tangible reason for that affection. Not only does it advertise his community, but it advertises the community spirit of the place. It advertises its industry, its general business affairs, its community life. There is one other consideration on which too much em- phasis cannot be laid. A community, in w^hose development special emphasis has been laid upon civics, is loyal and patri- otic to itself, to the state and to the nation. The very nature of the civic work done proclaims that fact. There is tlie ideal to defend; there is the contented home life to protect; there is the organized whole to uphold. All these have their commercial value. Although they do not appear in figures in the final balance of the average commercial institution, who can say that there is in them any less commercial value because of that fact? CHAPTER III. Industrial Activities Industrial Development by Chambers of Commerce By GLENN A. BOWERS The effort of coramercial organizations to attract indus- tries to their cities is almost universal. Three broad groui)s of members in particular concern themselves with industrial development activities; retailers who are interested in an in- creased purchasing power of the city; manufacturers who are aware of the advantages which result from the concentration of a large number of industries ; and general members who look to a larger, more prosperous and more active city. Because of these interests, commercial bodies have for many years made efforts to attract new industries and to assist in various ways industries already located in the cities which they represent. The broad policies of industrial development, unless de- termined in an arbitrary manner, rest upon a knowledge of industrial conditions. To acquire this knowledge, eonimon practice has had to undertake a comprehensive survey of all social and economic factors which affect industry. Some of the points which it has been found profitable to include in a survey of this kind are outlined very briefly in this paper. The policies which organizations have followed may be put into two groups: (1) The creation of conditions favorable to industries, both those already in the city and those which may be induced to come; and (2) The offer of special inducements to new indus- tries. Offers of special inducements are given especial atten- tion herein, with only casual mention of those conditions which favor industrial growth. Industrial Surveys • Industrial facts which would be of value in one city might naturally be unimportant in another. The detailed outline of a survey must, therefore, be left for local determination. In general, however, an investigation of this sort might include such subjects as are listed under the following principal groups : 50 INDUSTRIAL DEVELOPMENT BY CHAMBERS OF COMMERCE. 51 1. Existing industries: Nature, number, output, etc. 2. Market possibilities: Quantity and kind ol* manufactured material shipped into vicinity, quantity and kind of unfinished products and raw materials shipped elsewhere for further numuf acture ; de- termination of accessible markets, extent to which accessible markets have been developed, location of competitors, etc. 3. Raw materials: Cost, length of haul necessary, kind produced in vicinity, etc. 4. Transportation facilities : Number of lines, distances to markets, rates, traffic bureau organization and work, terminal facilities, warehouses, means of transfer, etc. 5. Environment : Nature of industries, efficiency of city goivernment, character and supply of labor, housing conditions, educational in- stitution, etc. 6. Manufacturing costs : Power, labor, raw materials, etc. 7. Banking facilities : Number and size of banks, nature of investments, extent of local market for industrial securities, etc. Two Types of Organization Activity The two broad policies adopted by organizations to attract industries, as was suggested above, apparently turn upon this question: "Are your efforts confined to the creation of condi- tions favorable to industries?'- In some organizations, the policy is to confine their activities, either entirely or practically so, to the creation of conditions favorable to industries. On the other hand, many organizations have adopted the policy of offering special inducements to secure new industries. Other organizations make no effort whatever to attract new indus- tries. Those organizations which confine themselves to the crea- tion of favorable conditions do so largely on the ground that industrial gro^^i;h depends upon fundamental economic condi- tions, regardless of special inducements and artificial condi- tions. Those organizations Avhich offer special inducements do so for one of tAvo reasons: (1) They believe that industries may honestly need aid, financial or other, in order to develop or expand, and that money spent to aid these industries will be returned indirectly through improved business conditions; (2) Although they may disapprove of the principle just stated, they feel that it is necessary for them to follow the practice in order to compete with other cities which give such inducements. Creation of Conditions Favorable to Industries "Conditions favorable to industries'' appear to be corollary to those groups given above in outlining a general survey. Ac- 52 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. tivities aimed at the creation of more favorable conditions may, therefore, be grouped as follows: .1. Efforts to diversify industries by promoting improved local con- ditions. 2. Improvement of marketing conditions by advertising, by attracting trade conventions, by entertainment of buyers and providing fa- cilities for display to buyers, by broadening market through bet- ter freight and express service, etc. 3. Improvement of raw material conditions by making possible in- creased production in vicinity, by providing adequate storage space, by giving attention to freight rates, etc. 4. Improvement of transportation facilities by establishment of adequate traffic bureau service, by providing adequate terminal facilities, warehouses, good street conditions, etc. 5. Improvement of civic conditions, housing, schools, entertainment, rea- sonable food prices, efficient management of physical plant of city, etc. 6. Lowering of manufacturing costs by development of cheap power, by providing expert advice foir managers, by developing industrial tracts in convenient relation to railroads and city, etc. 7. Improvement of banking facilities. These are activities which organizations liave undertaken in efforts to improve local conditions. The list is by no means complete and is intended merely to be suggestive. Offer of Special Inducements to New Industries Many kinds of si)ecial inducements may be offered to pros pective industries. In general, however, they may be placed into six main groups : Bonuses, cash and indirect ; credit guar- antees; secured loans; loft buildings for small industries; and stock or bond purchase. Bonuses: Cash. A cash bonus is merely a payment of money to a concern in return for locating its plant in the city offering the bonus — in other words, the city buys the industry from which it expects to get an indirect profit. This practice has had extensive use in the past but is now in disfavor in most organizations. Bonuses : Indirect. The plan of giving indirect bonuses in the form of free sites, tax exemptions, moving costs, free rents, low water rates, etc., is the same in principle as the cash bonus plan, but apparently differs considerably in application. Free sites is the most popular form of indirect bonuses. In some instances the gift is made directly by land owners or real estate operators in the expectation of increased values accruing to land adjacent to newly developed areas. Donations of land INDUSTRIAL DEVELOPMENT BY CHAMBERS OF COMMERCE. 53 may, therefore, be more freely secured than an outright gift of money to a factory, or credit endorsement and stock subscrip- tion in which the return is less certain and the benefits more re- mote. Tax exemptions are granted in but few cities. Credit Guarcmtees. Much criticism has been directed against banks for their conservative policy toward industrial loans. One reason for this conservatism may be the lack of expert knowledge about industrial management on the part of bank officials. It is not the practice in this country, as it is in Germany, to have among the officers of a bank a man skilled in industrial affairs. In a number of cities, commercial or- ganizations have attempted to supply this expert knowledge to banks and to offset all other objections to industrial loans by guaranteeing to banks loans made to approved industries. Typical provisions of this plan are : 1. Subscriptions for specified amounts are made with the understanding that losses suffered will be prorated among the subscribers. 2. From 10% to 20% of the amounts subscribed shall be paid in to form a contingent fund before tlie plan begins to operate. 3. Subscriptions paid in shall be deposited with banks which agree to make loans to industries upon approval of duly authorized rep- resentatives of the subscribers. Secured loans. In most cases of credit guaranty, the sub- scribers are secured to the extent of the physical assets of the concern aided. Organizations may, however, extend credit to industries direct, with or without credit. The results of a ques- tionaire here show that while some organizations offer special inducements, a larger number grant loans to industries only upon security. A few organizations grant loans without se- curity. The plan is simple and further comment is not neces- sary. Loft htdldings for small industries. In a number of cities in which desirable factory space is limited, loft buildings have been financed by commercial bodies or by associations formed among their members. The aim of these organizations is to provide buildings equipped with modern industrial appliances for the use of small industries which could not otherwise ob- tain such facilities. In many cities, even antiquated factory space is difficult to find. Without adequate factory space it has been hard to secure new industries which could not afford to construct and occupy an independent plant. This activitv is not necessarily a "special inducement." 54 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. In some cases, it may be more 'properly the "creation of condi- tions favorable to industries.'' However, the facts that private capital has not provided such facilities and that commercial organizations have been forced at times to finance the undertak- ing, warrant the mention of loft building construction as a special inducement. It is the usual practice to charge a reason- able rental for space in these buildings, to cover all expenses and yield a fair rate of interest on the investment. Stock or bond purchase. The final group of special induce- ments includes the purchase of stocks of new industries, or of established industries seeking to expand. Some organizations offer special inducements, others purchase stocks or bonds in concerns which show promise of success; some approve legiti- mate stock issues to citizens after investigation, others refer stock issues to citizens without approval. Again a number of organizations will have nothing to do with stock or bond propo- sitions but attempt to se€ure new industries through other special inducements or economic advantages. The industrial enterprise must be independent of the com- mercial body but close cooperation may exist between them. A selected group of men should be charter members. "One of the fundamental essentials to the success of a financing plan is that the unit of efficiency should be kept in mind in selecting the members." The following requirements should be insisted upon: 1. Members should be financially able to assist in the underwriting of enterprises endorsed for promotion. 2. Members should be prominently identified with industrial or other enterprises in the city. 3. Members should understand and be in full sj-mpathy with the plans and purposes of the company. 4. Members should be willing to contribute time and judgment to the investigation of projects which the board of directors approve as worthy. 5. Members should have experience in some field of activity that will enable them to assist in determining the advisability ocf promoting any enter- prise under investigation. Prior to investment in an industry the board of directors shall first decide whether a project is worthy of investigation. The board then appoints a committee of members especially qualified to make the investigation. Members receive just com- pensation for their services. If it is deemed advisable, expert services may be employed by the board to assist the committee. Incidental to the work of the company, a thorough survey is to INDUSTRIAL DEVELOPMENT OF THE SMALL TOWN. 55 be made of the city and vicinity to secure a complete analysis of ever}' industry, including full data as to its sources of ma- terials and its products. Industrial Development of the Small Town By WM. S. MILLENER Notwithstanding the fact that many of the foremost think ers in commercial organization work hold that commercial bodies should give first consideration to civic improvements, and less attention to trying to secure new industries, the fact remains that the average commercial organization in the small town still devotes considerable time and effort to securing new industries. In order to learn something of the methods and progress of other to^ATis, over 100 questionaires were sent out. The data upon which this paper is based was secured from the replies received from eighty-four secretaries, located in towns ranging Editor's Note: — No subject which has come within the range ci com- mercial organization effort has received greater attention than that which deals with the securing of new industries. At the same time no subject with- in the range of organization purpose has undergone greater modifications. "We want new^ factories !" was the sole slogan of many of the commercial organizations a decade ago. Many were organized for no other purpose, and secretaries were employed for no other duty than to secure factories. Their tenure of office depended upon the measure cf success they attained. The offers of bonuses in the tvay of sites, buildings, stock subscription, remission of taxes, etc., etc., were of a most generous nature. The reaction, however, set in when the failures by far outnumbered the successes. It was tjhen discovered, too, that the success €f an industrial enterprise involves more than bonuses, gifts and exemptions. It was learned that a manufacturing enterprise must take into considera- tion accessibility to raw materials, facilities for distribution of the finished product, and an adequate supply of the right kind of labor. And above all things, the business management must be capable and honest. Much money has been sunk in enterprises where one or more of the elements here enumer- ated have been lacking. While the average commercial body is no less ambitious to secure new industries, it has become more circumspect in securing them. It no longer makes factory getting the sole object of its existence or employs a secretary solely for his factory getting ability. It inventories its own ecnditions and environment, measures its opportunities, and establishes more nearly the c'ass of industries that could thrive within its borders. The commercial organization of today has also come to the realizatlcn that the first essential is to make the city worth while as a place to live in. The schools must be good, the streets clean, the drinking water pure, the parks attractive, etc., etc. The city must be sanitary, afford recreational facilities and public utilities if labor is to be attracted. 56 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. in population from 10,000 to 100,000, and scattered over thirty- two states. The average population of the towns reporting is 59,252, having commercial organizations averaging 641 mem- bers, and an average income of |1 4,-406.00. Industrial Committee The answer to the question "Do you have an industrial committee to investigate and negotiate with prospective indus- tries?" indicates that, almost without exception, these towns refer the investigation of industrial questions to a standing committee. Answering the question "Do you have a guarantee fund?" 71 towns answered "No." One town answered "Planning to have such a fund.'' ■ Williamsport answered "No longer. Guarantee fund aban- doned." Williamsport was a pioneer in the guarantee fund move- ment. When this plan was first devised it was thought by many that at last a w^ay had been found to solve all of the prob- lems of substantial industrial growth of both established and new industries. Since this plan was devised in 1900 and aban- doned in 1914, after having been copied or modified by a num- ber of cities, it may be best to briefly refer to it, and the reason for its abandonment. The Williamsport plan was essentially^ a subscription of credit by responsible local business men. Under this plan, the local banks agreed to furnish money to such industries as might desire to negotiate a loan on the endorsement of three attorneys- in-fact, representing the subscribers to the fund. Subscrip- tion contracts to this fund ran for a period of five years. Copies of the contract and certificates of the action of the subscribers in electing the attorneys-in-fact were filed with the banks, and the attorneys were authorized to endorse for the whole, or any part of the fund. Before such endorsement was made, applications by bor- rowing firms for aid were required to be approved by the direc- tors of the board of trade. How^ever, the attorneys-in-fact had the power to refuse the endorsement, even when it had been approved by the directors of the commercial organization. If, at maturity, the applicant failed to meet the obligation, the subscribers to the fund were supposed to pay the amount due, each subscriber being liable for a pro rata share only, of the indebtedness. INDUSTRIAL DEVEI^OPMENT OF THE SMAX,L TOWN. 57 This guarantee of credit was conservatively given, and when given was protected by sufficient security, so that with but a few exceptions there were no losses. The few losses that were sustained were paid by a few wealthy men, usually mem- bers of the board of directors, and there Avas never any assess- ment on all of the subscril)ers to the fund. In this city, credit was only extended to industries that found some difficulty in negotiating a-loan from a bank. The result was that the credit of any concern so helped was material- ly injured, and it was more difficult for it to secure accommo- dations from local banks without the same sort of endorsement. Believing that ultimately it was detrimental rather than help- ful to the manufacturer who secured a loan under this plan, the same was abandoned. Commercial organizations are business concerns, and the same tests of good business should be made to apply. It is a question of bargain and sale, securing the goods, if they be needed, at the best possible terms for your city. The only way that a commercial organization can be of assistance to established industries is to provide a business atmosphere in the whole community that will produce general conditions, such as stabilizing labor, which, in turn, will pro- vide the opportunity for industrial growth, if the industry is well placed and capably managed. Small Town Development In the final analysis of industrial development of the -small town, whether it be in making conditions favorable to indus- tries or in offering either direct or indirect special inducements, the greatest factor for success is the standard of the human element back of the movement. Every movement needs its leader, its optimistic, determined, public-spirited man with a vision, who will give freely of his otvti time and influence others to give of theirs, working for the good of all. Such is the work of our commercial organizations, the building of men and inter- esting them in all the ramifications of community betterment and industrial development. There is no set rule which can be laid down for the guid- ance of all, but the conclusions reached in studying this ques- tion are: 1. That it is unwise to offer a oasb bonus to secure the location of an in- dustry. 58 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. 2. That desirable factory locations on one or more railroads should be con- trolled, either directly or indirectly, by the commercial organization, to prevent undue land speculation and the retarding of normal industrial growth. 3. That commercial organizations, either directly or indirectly, should pro- vide suitable facilities for small manufacturers in a loft building or in- dustrial building, that could be sub-let at a reasonable rate, having all the conveniences of low power, shipping facilities, etc. 4. That the possession of a fund for investment in industrial securities is no guarantee of wise industrial development. 5. That more thought should be given to ways and means that make it pos- sible for established industries to grow and expand, than should be given to efforts to secure the location of new industries. 6. That when the best conditions for manufacture and the proi^er housing of employees of established industries are sufficiently developed, new indus- tries will seek you, rather than you having to seek them. 7. That satisfactory industrial development will come to every small town when these things have been done, for, in the doing of them, the human elements, organization and cooperation, will have been brought to the high- est point of development, and all community problems may be solved with despatch. The Proper Place of Industrial Development in the Work of a Commercial Organization By R. H. FAXON Cities do not grow — they are made I And yet, industrial- ly, there are notable examples of cities which have not been made, but have gTOwn. There are cities where every natural law of industry has apparently been violated or has failed to work. Such cities are fortunate indeed, and yet they do not disprove the rule. They are, rather, the exception. There is, for instance, no special reason why Battle Creek should be a cereal center ; Detroit a motor center ; Grand Rapids a furniture center; or Ncav England the center of the textile industry or of shoes. Yet the last- named examples emphasize the more great- ly the rule that cities are made and do not merely grow. But that the supply of material is an overwhelming incident, is illus trated by the growth of the textile industry in the South, where cotton grows, and by the shoe industry in St. Louis, near the leather-production center. Therefore economy of location and proximity to raw ma- terials do not always determine the location of industry. As a premise, the five things that really count in industrial work, or factory location, are : Labor, transportation, materi- als, money, and market. PLACE OF INDUSTRIAL DEVELOPMENT IN ORGANIZATION. 59 Labor is the element often considered most important. A labor market has in the past been deemed essential to successful industrial development. Yet it may be accepted that, outside of certain peculiar or isolated cases, labor will go where industry begins its work. Transportation is an important factor, yet not an absolute essential. We find, on analysis of conditions, that Grand Rap- ids still remains an important furniture center, despite the al- most total lack of Northern timber and the distance from which it has to secure its supply. Massachusetts, far removed from hides and leather, save by importation under more recent legis- lation, continues to specialize on the shoe and leather business; and its raw materials of cotton are a long distance from the place of production. Transportation also takes into consideration the haul of the finished product as well as the raw material ; but in this era of intensive development surrounding so-called ^^centers;'' with the existence of successful tariff, freight, or transportation bureaus, jealously guarding the territory of these ^^centers;" and with national advertising creating a countrywide if not international demand for many products, the distance the product has to go is found to be no insuperable barrier. We next come to money outlay. Included in that is capi- tal, most important, and its procurement; the question of sal- aries and wages, matters of taxation, including war and other governmental revenues and taxes; credits, and the amounts necessary to procure materials and to equip industrial institu- tions. A further treatment of this essential will be found later. As to market, the world is the market of any staple product. There is little barrier. Coming myself from an inland city, small in comparison with the great industrial centers, unde- veloped as it is industrially, and not known to fame as a manu- facturing community of renown, I could name you at least a half dozen products which go to not only the length and breadth of the land, but into foreign countries as well. How much more marked this is in a hundred other communities ! The Man and the Market Into the term "market" go many things, which include production, sales, advertising, management, etc. Without these, the word "market'' is not embrasive. And here, again, 60 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. we find the importance, the potency, of The Man Behind ! Someone's vision, someone's strength of character, someone's strict integrity, someone's administrative genius, must go into the product from its inception to its final lodgment with the consumer, else we have not suitably defined the word ^'market." There can be no royal road to industrial success in any community. Seldom can any wholesale industrial development be attained. If a community starts to develop some one indus- try, it makes it the better for others in that line, and, ultimate- ly, the community develops thereby. The success of one man attracts the attention of another in the same line. The labor market is thus created, and the community sort of specializes on that line. Like attracts like. Soon the community becomes famous as of one thing. But the best balance is maintained, of course, by a careful study of the things most adapted, the nearby source of raw^ material, the small market that may first be developed, and the kind of men that may be massed for in- dustry in general. It is a starting point to other things. It may be accom- plished by an industrial secretary, or by a general secretary, or by a committee, or by a bureau. It matters not so long as it be done. When it is done and done right, then the organiza- tion is in shape to do more industrial work intelligently. The safest and surest way to get an industry is to discard all the Avellworn methods, study the local situation thorough- ly; take the local survey and ascertain as above indicated the institutions and products of the community, the lack, and the need, and then make a systematic effort to build up a new line or a weak line. The opportunity wdll come — it never yet failed to pass the door of any community, and only may be intercepted by an alert and sane community organization. An invitation to a concern that seeks to remove for proper reasons ; the sub- mitting of a brief that is sensible and practical and shows rates, market, labor conditions, distribution, and general community relations toward industry, and, most of all, a digiiified, sensible desire on the part of the community to have the industry in its midst, will do more than anything else ever invented to bring it. And every one thus brought and successfully looked after and follow^ed up is an assurance of more to come in the future. We have been preaching civics in our commercial organi- zations for the past few years. Indeed, it may be said that PLACE OF INDUSTRIAL DEVELOPMENT IN ORGANIZATION. 61 civics occupies nearly one-half the average community organiza- tion effort. We assume there may be no successful contradic- tion of this assertion. The best business application of that fact lies in its relation to industry*. For instance : we may lay it down as axiomatic, regardless of woeful lack in so many places, that if it is best for the community to have parks and boulevards and lighting and paving that is worth while, and playgrounds and comfort stations and a clean, wholesome sur- rounding, it is doubly well for industry to receive its share of such modern civic improvement and betterment. Housing, industrial welfare, the pension system, the recog- nition of the man factor in industry, the facilities in the factory which the office and the home enjoy, the bonus system, the re- fectory, the clubs and all that, are not a waste in overhead: they are a definite investment and a part of the institution outlay. They produce results, just as the ordinary civics pro- duce results in the general citizenship. An Industrial Survey An industrial survey, a carefully planned, thoughtfully figured out, homegrown affair, which would not go above the heads of a committee or a board, and which would not be con- fusing in its multiplicity of details, should be provided. Such a survey might feature cardinal points as follows: Business and Administration — Name and character; date of establishment; names of officers, directors, etc., especially including engineer and works manager ; physical value of plant. Plant — Location and physical layout ; number of buildings, and whether owned ; surroundings, as to density of population, isolation, etc.; character of building construction; floor space; insurance; fire; heating facilities; water supply; power; ele- vators and safety devices ; clubs ; telephones, etc. Production — Seasonal periods; equipment; routing and follow-up system; organization membership; principal materi- als used ; principal articles manufactured ; direct marketing or through jobbers; branches; catalogs, etc. Labor — Accessibility; closed or open; history of experi- ence ; manner of settlement of trouble ; workmen ; clerical force ; can women replace men if necessary; manner of payment; bonus ; overtime ; nationality, etc. 62 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Transportation — Trackage, trucking arrangement, etc.; trunk lines accessible ; switching facilities ; water use, if any. Then it would be wise to include some addenda as follows : Laboratory data ; disposal of products as to area and man- ner of shipment, especially if express is used; list of principal competitors ; railroad service, as a general factor ; use of traffic bureaus ; materials used, source, etc. ; heat, light, power, w^ater ; taxes, etc. ; by-products and waste. As to the proper place of industrial development in a com- mercial organization, speaking directly and briefly to that one point: There are, generally speaking, in community organiza- tion work as systematized today, four great subdivisions. They are: Organization affairs; public affairs; industrial affairs, and civic affairs. Each is co-ordinate. Each bears its proper proportion of importance in organization work. What Is an Industrial Survey? BY A STUDENT The term "surve^^" has been borrowed from the science of sociology. It has been expanded, however, until the expression *^an industrial survey" has come to mean anything from a card index of industrial cities to an elaborate investigation of the industrial resources of the community. As a point of departure it might be well to define more or less definitely what is meant by industrial survey in this dis- cussion. For purposes of argument we may use the term as including any attempt to deter miyie and list the factors hear- ing on the industrial prohlems of the community. Three ques- tions at once present themselves: (1) What are the factors bearing on industrial problems? (2) What is the purpose for Avhich they are to be listed? and (3) What are the industrial problems of the community? The main difficulty in industrial surveys as conducted by chambers of commerce is that they are apt to be carried on from the viewpoint of "social values" rather than from the view- point of the manufacturers' ledger. Let us illustrate: There is a certain pork-packing estab- lishment in the East which has an elaborate system for collect- ing hogs in the Mississippi valley. This system costs thousands of dollars a month to operate. The firm also has a system of WHAT IS AN INDUSTRIAL SURVEY? 63 education for its employees on which it spends a great deal of money. Every part of the factory is carefully planned, and expenses are watched at every turn. The market is carefully studied and the marketing system worked out by the company is designeil to secure the largest return possible from the entire output. After all this care has been exercised and all this ex- pense laid out, the company figures its profits on all the animals it kills at considerably less than one-quarter of one cent a pound. All the savings and all the advantages over the com- petitors secured by careful thought in the planning of the manu- facturing and marketing steps may be wiped out by a little carelessness anywhere along the line. For instance, in the cut- ting room the whole profit margin may be wiped out by care- lessness in cutting the sides into their two main parts — backs and bellies. There is a strip through the middle of each side which belongs equally well with either type of product, and if the price of backs is high of course there is an advantage in cutting the backs wide and getting the greatest possible amount of backs out of the sides, and vice versa. The point, however, is that carelessness in this one detail within the plant may off- set the results of an elaborate system for making savings) in production or distributing costs. This illustration may make it clearer than the bare state- ment can, what is meant by dealing with the industrial and commercial factors of the community- from the point of view of the manufacturer's ledger. In many instances, every pos- sible advantage which the community can offer must be turned to account. But such advantages as labor supply^ nearness to market, immunity from strikes, or even cheap power, in the manufacturer's mind only work out into figures representing minute fractions of a cent per unit of product. It is clear, there- fore, that what may appear to be great advantages in a com- munity may be either largely, or entirely, ott*-set by apparently trivial factors. At the same time it is clear also that certain apparently trivial factors may make up for deficiency in what might be called natural equipment. This idea of viewing resources from the standpoint of the manufacturer's ledger helps us to explain also some of the ap- parent contradictions between the results of surveys and the actual experience of communities. For instance, if we viewed the resources of Detroit in perfectly cold blood the probabili- 64 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. ties are that we should never pick that as the location for the greatest automobile center in the United States. What appar- ently happened was that certain forceful and constructive per- sons undertook the establishment of automobile factories there, and the personal influences were strong enough to counteract what natural disadvantages there might have been. Illustra- tions of the same thing might be found in the case of such mat- ters as a minor change in a freight rate. There are instances also where the mere passage of time with the resulting depreci- ation of property has been sufficient to modify the larger and apparently more powerful factors in the location or operation of an industry. Factors Bearing on Industrial Problems With this point in mind it is possible to get some idea of w^hat type of factors it is necessary to consider in an industrial survey. Strictly speaking, there is nothing short of omni- science that would be entirely satisfactory as equipment for conducting an industrial survey. There is no feature of the civic, social, commercial, or political life of the community w^hic^h might not have a bearing on industrial location and op- eration. The main difficulty is not to find factors which ought to be listed, but to select those factors the listing and observa- tion of Avhich will be of use. It perhaps needs no demonstra- tion that an industrial survey may very quickly clutter itself up with the mere volume of detail accumulated, so that it will be of absolutely no use to anyone. Two common errors in making such a survey may serve to sum up the general principles underlying the process of selec- tion of material factors in the situation. The first of these is the error of duplicating work already done. For example, one industrial survey which closed its eyes to the existence of a very full housing survey already available in the community, undertook to cover incompletely the ground which had been thoroughly covered by the housing survey, instead of go- ing through the housing survey and selecting and indexing such material as would be useful. Another case may be cited where several thousand dollars were spent in supplementing material on the statistics of employment on tbe theory that the state statistics on the subject were incomplete. After three years' work material was collected which was perhaps more WHAT IS AN IXDUSTRIAL SURVEY? 65 detailed than the state-s figures, but a portion of what had been collected was two or three years old and the value of the sta- tistics was seriously impaired by the minuteness with which the survey had been conducted. In their present form the sta- tistics may be more valuable from a scientific point of view, but they Avill i)robably be no more useful to the manufacturers than are the state figures. When large appropriations are not available, and when a large staff cannot be used for conducting the survey within a very short time, one of the most important steps is the determi- nation of what material already exists concerning the more conspicuous factors, and a careful indexing of the data Avhich, while they may have been collected from an entirely different' point of view, may be extremely useful in specific cases. A second common error is that of regarding the industrial survey as being an end in itself. Its chief usefulness is in making easy of access facts which will help the manufacturer to judge intelligently the suitability of the community for his purposes. A survey, therefore, is never an achievement; it is always merely a tool. It is even a question w^hether a separate survey from the industrial point of view is what is wanted in most instances, and not an index of the significant industrial factors brought out in either a general civic survey, or the surveys covering specific parts of the equipment and conditions of the commu- nity. With this point in mind it is evident that no satisfactory general schedule of factors to be considered in an industrial survey can be made. What would apply in one community would not be pertinent in another, nor would the same lists be equally valuable in the same community for two different in- dustries at the same time. The Purpose for which Factors are Listed The second question is what is the use to be made of the listed factors bearing on the industrial problems of the commu- nity. For the sake of emphasis let us repeat the answer to this which has already been given. An industrial survey is not intended to take the place of the brains of a manufacturer. Its task is to help him to ascertain some of the factors useful in the process of reaching a decision whether to locate or to remain in a community, or to modify his present equipment or methods. 3 66 EFFICIEXCY AND CHARACTERISTIC ACTIVITIES. As in the case of the factors to be considered so in the case of the method of listing, no formula for a survey can be laid down. In fact, in many instances, the most useful form of sui-vey con- ceivable is not strictly speaking a survey at all, but is rather, as has already been intimated, a card index of material in existence. But whether the survey takes this form or a more elaborate one there are certain general features which may be worth consideration. In the first place, the index ought to be in such form that the material is always in process of expansion and correction. An industrial survey which is in final form is in most cases no longer of any use. In the second place, one of the most con- 'spicuous features of the survey should be reference to compiled sources and to sources in the form of well-informed men who may be expected to supply material and suggestions on the factors under consideration. The third essential should be availability of the material for use without the guidance or in- terpretation of anyone, even the secretary himself. Aside from these features there is little that is common in the problems of compiling and indexing the material bearing on the industrial problems of the community. How detailed the material is to be will vary with almost every case which it is planned to serve. What standards are to be set up for the in- clusion and exclusion of material, also, will be matters impos- sible of satisfactory solution according to any general formula. The chief objection to any such statement of the case as this is the rather sweeping one that by the application of such standards one might as well have no separate industrial survey at all. Except as a matter of convenience, and as a tool for the saving of time and effort, this is entirely true ; but even after it has been gi-anted that the survey is merely a device for making accessible material already in existence there is still a large usefulness for it. Certainly in most cases there is a wide gap between dependence on the general information of the secre- tary, and having available an index of this kind for use in get- ting facts about the industrial situation. What are the Industrial Problems of the Community? The third question is, what are the industrial problems of the community. As has been intimated there probably is no industrial problem absolutely separate from all the other prob- WHAT IS AN INDUSTRIAL SURVEY? 67 lems of the community, but there certainly are questions which arise, the bearing of which is mainly industrial. For example, I have before me specimens of analyses of the industrial and commercial resources of the communities pre- pared for four different types of purpose: (1) An analysis of a specific industry for the purpose of determining the facts con- cerning a restricted number of features of that one industry; (2) A special survey of a certain portion of the resources of a community for a specific purpose ; ( 3 ) A general survey of the community for the purpose of bringing out a specially selected group of facts; (4) A general inventory for general reference. The fii*st of these — an analysis of a specific industry for the purpose of determining the facts concerning a restricted num- ber of features of that one industry — is the simplest and easi- est sort of survey to conduct. The ends aimed at are specific and the material to be collected is not so diffuse that it cannot be readily handled, For example, in the city of Rochester, a few years ago, a state committee met for the purpose of investi- gating conditions in the factories in Rochester. The testimony taken at this time was made the basis of sensational new^spaper articles concerning the length of hours and some features of organization in the clothing factories of Rochester. The cham- ber of commerce undertook to ascertain the actual facts of the case. A committee was appointed for the purpose, and the committee worked with diligence and with absolutely even handed justice, and made a presentation of the situation which corrected man}- of the misrepresentations in the newspaper article, and for the first time made available the real facts of the case. Such a survey as this confined to a single industry, and covering a concrete group of problems necessarily is much more satisfactory and tangible in its results than a general survey can be, but, of course, the number of surveys of this sort would have to be multiplied almost indefinitely before they would be of great value in any general examination of the industrial con- ditions of the community. The second type of survey — a special survey of a certain portion of the resources of a community for a specific purpose — is comparatively simple also, but it is very difficult to con- duct such a survey and keep it on a thoroughly practical and scientific basis. An example of a sui*vey of this kind w^ould be 68 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. the examination of the resources of a city for the purpose of determining in a general way its adaptability to, say, an ex- pansion of the steel rolling industry there. The general facts of course may be ascertained Avithout difficulty, but when it comes to the real concrete factors in the situation one is con- fronted with the difficulty of presenting the real inside infor- mation, such as would be necessary from the standpoint of the manufacturer's costs of operation. If, for instance, there should be one or two successful steel mills in the city, none of them would be willing to give up its inside figures for the encourage- ment of the location of new industries. If, on the other hand, there were no steel mills there, almost any figures would neces- sarily be conjectural. The third type of general survey for the purpose of bring- ing out a specially selected group of facts is extremely useful as an adjunct to social service or to civic investigations. A good example of this Avas a survey made a few years ago in the city of Cleveland which brought out certain facts about the in- dustries of the city which liad not been available before. Notable among these was a collection of facts about gaps in the indus- trial activities of the city. It was found, for example, that in some instances the finished product of certain Cleveland estab- lishments was the raw material for factories located elsewhere, and that there were no factories of the second type in the city. On the other hand, it was frequently found that Cleveland in- dustries were going elsewhere for semi-manufactured materials which apparently could be produced quite satisfactorily in Cleveland. The following quotation from the report of the committee conducting this survey — which, by the way, was not called a survey but merely a report on progress in industrial develop- ment — will indicate something of Avhat the survey revealed : Radiators : Thousands are used in Cleveland and its immediate vicinity annually, none are made here, and foundry iron goes to consumers here cheaper than at the points where radiators are made. Woolen fahric and xrool yarn: Cleveland is one of the greatest centers for the production of women's clothing and knit goods ; ahout $8,000,000 worth of woolen fabrics is used by Cleveland manufacturers annually, of which only a small portion, in a few grades, is woven here ; and no yarn is produced here. Machine tools : Some are made in Cleveland, but many of the tools most generally used WHAT IS AN INDUSTRIAL SURVEY? 69 in our scores of machine shops must be bought directly or indirectly from outside producers. Automobiles : Cleveland is one of the largest makers of automobile parts, but exiwrts a large proportion of them to Michigan, where they are assembled into the cheaper machines, turned out in large quantities, with acres of fac- tories and thousands of mechanics. We produce high-grade cars, but why not also the cheaper cars in larger volume, thereby siwelling our own industrial prosperity? This ^survey became the starting point for a long series of more detailed investigations by the chamber and led eventual- ly to the formation of the Industrial Development Company which has for its object assisting in the financing of new en- terprises and the undertaking of what is referred to as a thor- ough, exhaustive survey of Cleveland and adjacent territory to secure complete analysis of every industry including full data as to its sources of materials and its products. The type of survey which thus fits into the existing studies of conditions in the city, but undertakes to view them primarily from the industrial point of view is in many respects the most useful and suggestive type of all. The fourth class of survey which has been referred to as an inventory of general reference has already been discussed as a convenient means to the end of working out the industrial problems of a community. There are certain secretaries whose grasp of the details of their own community is more useful for practical purposes than any survey could be, but at the same time there is very grave danger in the secretary's assumption of familiarity with facts concerning which his real knowledge is extremely limited and vague. From what has been said it may be gathered that I have some doubts about the value of a separate industrial survey to be conducted by a commercial body duplicating the work of civic or social surveys already in existence. On the other hand, I am convinced that it is unfortunate for secretaries as a whole to have at hand for general use no more really specific and re- liable information about their city than is commonly available. In every community there certainly ought to be somewhere, either at the chamber of commerce or in some other place, a collection and a carefully prepared index of such written or other material as is available in the way of reliable facts about the industrial and commercial equipment of the city. More- over, even small organizations might well turn their attention 70 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. to the preservation and maintenance of what might be called a current catalogue of some of the more obvious industrial and commercial factors. For example, maps of the city showing at a glance insurance districts, tax rates, passenger transporta- tion facilities, available industrial locations and similar facts ought to be a part of the equipment of each commercial organi- zation office. The following list of some of the concrete types of material collected for a surve^^ conducted in Minneapolis contains some suggestions which ought to be of value to any secretary, and which are much more useful for i^ractical pur- poses than a great deal more detailed material hid away in a file: Compilatioii of lists and maps of available factory sites both improved and unimproved, together with full description of the same with regard to size. location, character of buildings, proximity to labor supply and transportation facilities, insurance rates on stock and machinery, etc. Preparation of more than one hundred maps, charts and tables showing various phases of industrial development. Analysis of industries to show which are declining, which are stationary and which are advancing, together with the reasons therefore. Preparation of maps showing localization of various classes of industries. Preparation of maps and charts showing principal distributing centers for local industries. Analysis of trade tendencies in local territory to discover changes in industrial relations by which local establishments may profit. Back of these the amount of detail would depend on the resources of the organization, but material of this kind ac- curate enough for most cases can be obtained Avithout great cost, and in most instances, the collection of the really inti- mate and detailed material can better be done by individuals than by any organization undertaking to have a universal knowledge on hand for everybody. Factors In Securing Factories By J. F. CARTER The main factors of factory efficiency are labor, transpor- tation, materials, investment, markets and location. While some of these are primary essentials, others are only apparently so. Let us examine location as a factor. For instance, the furniture factories are located in and around Grand Rapids, while the mahogany and Circassian walnut are imported through New Orleans and New York, and the red gum and FACTORS I^^ SECURING FACTORIES. 71 oak grow natively in the extreme south. Raw materials must travel far out of the way to be manufactured in Grand Rapids and shipped to the center of population. There is here an evi- dence that the economy of location is not decisive. Hence, it would seem that there is some other factor which has a bearins:. Detroit is an automobile center; New Orleans is a burlap bag center; eastern Massachusetts is a shoe center, and Grand Rapids is a furniture center. A few years ago some men start- ed a shoe factory in St. Louis, and another was started as soon as the tirst one showed signs of success. Today St. Louis rivals l>oston, and men have no fear of making shoes in St. Louis. It has been but a few years since some brave fellows in a little town in North Carolina invested their local money in a furni- ture plant — today High Point is the furniture center of the southeast. Within two years there have been many "Made at Home" exhibits and expositions and campaigns held in the larger cities of this country. The newspaper comments and publicity and some of the letters of the commercial bodies in those cities cried aloud against the shame of their people buying goods outside of town when they were made in their own home city — at the lack of patriotism of the people of "our town'' in purchasing the goods made in a competitive city. The Factor of Chief Importance It Avould seem, really that after a study of the whole field, after a few years' review of the situation, first studying the ele- ments of economic location and comparing the conclusions with the actual location of factories, manufacturing of almost any article is successful in almost any part of the country. The man is the real factor in successful manufacturing. It is the human element that counts, and which is left out of the calculations of commercial secretaries. This does not argue that there is nothing to be gained from the study of economics of location, nor that we should not try to influence some of the furniture factories to leave Grand Rapids by proving that the combination of the five great ele- ments of economic location are more favorable to the furniture manufacturer at New^ Orleans than at Grand Rapids; nor that Kansas City should not try to lure the woolen mills of the east by showing them that the combination of the ^ye great elements favors Kansas City as against any of the New^ England loca- 72 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. tions. But, here it is clear, that when nothing is added to these economic arguments by the cities which are so economi- cally situated, factories are not seen moving to them in great numbers, while factories of various kinds are moving to those cities which are advertising themselves in a big way, and grant- ing concessions to plants. Little attention need be paid to some items : For instance, as calculated against the total production of a factory, the average percentage paid out in power is slightly more than two- tenths of one percent ; pow er that includes cost of fuel, or cost of production of power of any kind, or cost of renting power of any kind. Taxes, even including the internal revenue charges, amount to less than two-tenths of one percent. Here and there we find a factory which uses large amounts of power, and, in such cases, it might be well for the commer- cial secretary to find ways and means of reducing the cost of power, or of exhibiting to the prospective manufacturer what low cost is to be found in his particular city. But, as a general rule, it applies in far the greater number of cases, the cost of power and taxation has a very small bearing on the total busi- ness done. Many manufacturers may talk of taxation, but when the tax bill is paid it figures as a very small part of the total expense. Going further through the census figures, we find that salaries amount to 5.1 percent of the value of the product turned out in the average factory, and that wages amount to 18.6 percent of the total. Some Other Important Items Then Ave approach the real crux of the situation — the ma- terials amount to 63.8 percent of the total manufactured prod- uct, and by "materials" the census bureau has specifically stated that it means the materials used in manufacture, plus the mill supplies used by the factory, plus the container of the product. The "miscellaneous^- item forms 10.5 percent of the total value of manufactured products; this miscellaneous item in- cludes rent of offices and buildings, exclusive of factory, and in- cludes rent of machinery, royalties, use of patents, insurance, ordinary repairs of buildings and machinery, advertising, trav- eling expenses and all other sundr^^ expenses. This item also includes the taxes and revenue charges. B^ACTORS IN SECURING FACTORIES. 73 Now, there comes the question of transportation of the manufactured goods to the market, and there are no figures given on the question. It would help us a great deal were we able to know this. May I revert for a moment to the much-talked-of topics of taxation and fuel, and call your attention to the fact that the percentage paid out in salaries (without mention of wages) is more than twelve times as great as the items of taxation and fuel combined? Yet, commercial secretaries will use their efforts in arguing taxation and fuel items, when the manufac- turer himself can wipe out all the ground he gains by the mere payment of a little salary to someone who might be useless to the plant. In discussing this item of fuel : Why is it that secretaries will discuss the price of coal per ton? Coal is not valued by the ton by a good manufacturer. What he is looking for is coal with heat units in it, and the chances are that he pays more when he buys a low-priced coal, than when he buys a high-priced coal, for in the latter case he is getting a coal with heat units which are available with the least destruction of his boilers or grate bars, or waste of time to bis firemen in dumping ashes. Coal is good or bad or indifferent. It should be analyzed, and each manufacturer should buy that coal which gives him minimum-priced horsepower. He should figure his coal by the horsepower hour, just as he buys his electricity from a public utilities corporation by the kilow^att hour. The Influence of Market Problems The item of "market" is one of the important factors in locating a factory, or a branch plant. "Market" certainly is not composed of the population of the city or its state. "Mar- ket" is all that territory which can be reached in competition with any other center of manufacture of the same article. Com- merce is the movement of things from the place where they are abundant to the place where they are not. "Market," viewed from the standpoint of an industrial location, is all that terri- tory to which the manufacturer can go on an equality with his competitor. "Market," to the largest extent, is bounded by the line of demarkation of comparative freight or express rates, the comparison being between the proposed location and some competitor or several competitors. That is, "market" for agri- cultural implements for a proposed factory at Houston, is pri- 74 EFFICIENCY AND CHARACTERISTIC AC^TIVITIES. marily that territory into which the Kansas City and Moline manufacturers of implements can not go as against freight rates applying out of Houston. In brief, any argument offered hj the industrial secretary as to markets, must be based very largely upon freight rates applying on the particular com- modity. However, if it can be shown that the combination of cost items are lower at Houston than at Kansas City or Moline, the territory broadens slightly and goes beyond the freight rate line of demarkation. This is drawing a very fine line on the work of the industrial secretary, and Ave find very few of them who come to a discussion of cost items with any degree of defi- niteness or accuracy. In thus attempting to define "market," I have assumed that the factor}' shall make a piece of goods in which there is compe- tition, such as cigars, candy, caskets, paint, gas engines, etc. There are some commodities, of course, which have little com- petition and which travel far beyond any territory bounded by freight rate lines. One point I wish to drive hard upon is this: that "mar- ket" is not present merely because a certain commodity is not made in a city. For instance, there is no paper factory at El Paso — and this can never be taken as an argument that the "market" at El Paso forms a reason for the location of a paper plant. The Matter of Money Outlay One of the major elements in economic location is known as investment or "Money Outlay." It is my impression that just here lies one of the chief factors in securing factories. I am opposed to the bonus, unalterably opposed to it. "Money outlay" includes the cost of the site, the improvement of that site and its approach, the cost of building materials, the bank credit facilities, the licenses, corporation laws and costs, ease of obtaining additional subscriptions to stock, ease of selling bonds or other securities, and like items. And, of these, the factor which arises often is a combination of cost of site, credit facilities and stock subscription. It is not the big manu- facturer with plenty of capital who is seen before our commit- tees in an effort to locate — ^it is, rather, the small man who has worked himself up from a degree above zero and who is in search of help after proving to himself that he is deserving of it. He FACTORS IN SECURING FACTORIES. 75 wishes to have more money behind him, wishes to be given a strong push along the highway which he has been following, and he seeks that place where the i^eople are willing to give him the necessary aid. We speak now, of course, of the legiti- mate, honest manufacturer. This does not rise out of an attempt on the part of run-down plants, or poorly-operated plants, or poorly-managed plants to get enough money from someone to head off its creditors for a period. There comes a demand for local investment from some of the very best managed plants — plants which are perfectly solvent and which have, for quite a time, been paying good divi- dends. It is a \ers^ easy matter, however, to be tricked, and it is also a ver}^ easy matter for a commercial secretary to criticize others for not putting in their money to help the city gain new enterprises. The average man seeking factories for his city has probably not lost a large proportion of his own money by ven- turing in other people's enterprises, else he would not be so prone to find fault with his own townspeople for being slow in making investments in divers plants Avhicli he may have inter- ested in locating. There are several ways of raising money for the prospec- tive incoming factor^'. One is by direct solicitation of stock subscriptions among the townspeople or members of the com- mercial organization for each separate plant; another is by the raising of a fund which shall be used in making such in- vestments; a third is by the adoption of a guarantee plan for backing the credit of the manufacturer ; and another is the sub- division plan. It may well eliminate that plan which demands that the secretary go about tlie city in an effort to interest a dozen individuals in an enterprise — getting one located in that vi^ay, and then proceeding on the same line for the second. This is a very weak plan, just as is that one by which a meet- ing of citizens is called and voluntary subscriptions to stock are asked. It works once or tAvice and then fails. The sub- scriptions are made on a basis of patriotism and not on a basis of investment. The Attitude of the Banks. The guarantee plan, by Avhich the manufacturer borrows money at a bank and has a special list of subscribers standing back of his note, does not appear to be a good one. Cities that 76 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. have tried it will not employ the guaranty plan again. Boston is a very fine evidence of this. Boston is willing to state that the guaranty plan was a failure in that city. It does not af- ford an opportunity for anyone but the manufacturer and the banker to profit. The bank makes its interest on the loan and is secured by having prominent men of the community endorse the paper ; the manufacturer is given the chance to make money manufacturing or to experiment on other people's money, him- self having whatever chances there are to win, while, if he loses, the citizens of the community are given the bag to hold. A Fund for Industrial Development Then there is the fund of cash for the purpose of investing in securities of a factory. A fund of $400,000 is raised by popu- lar subscription, and a call for the payment of ten percent in cash is made. The ten percent is placed in bank. We now have a factor}" approach us. It looks good; we investigate; it still looks good, and we have the committee make an investigation ; it continues to look good, and the investment is made. The money is either borrowed from the bank, putting up the cash payment as collateral by promising to leave it on deposit, or the cash fund itself is used and a second call for ten percent is made for use in the next factory. So on we proceed until the entire fund is exhausted. What is the result? Some of those plants will fail, others succeed, and a third group will hold their own, shoAving neither progress nor retrogression. The invest- ments, as investments, will go the way of that sort — the divi- dends from the paying plants will not take care of the losses of those which fail to pay. Of course, it must be understood that we are discussing this entirely from the standpoint of in- vestment — forgetting the good which the plants do for the city by their employment of labor. The Industrial Sub-division There have been several industrial subdivisions in towns and cities of this country, some operated as private enterprises and others operated by commercial bodies without profit. Such industrial subdivisions as a rule have been successful. The reason is that investment is obtained for a group of plants without asking the townspeople to invest directly in the stock of the factory and thus have a reasonable chance of losing; that the townspeople invest in a piece of land, by the growth FACTORS IN SECURING FACTORIES. 77 of the town in a natural manner and by the forced growth of the particular section by the location of factories, they have a much better, almost certain, chance to realize their investment, with the additional chance of profit on the land adjacent to the factories. It becomes necessary, of course, for the industrial secre- tary to Avork out a plan of industrial subdivision which will contain the greatest numl>er of advantages for the various fac- tories, such as street car transportation for labor, several spur tracks from different railroads, the installation of water, gas, electricity, telephone service and sewerage. An active indus- trial secret aiy could build a model industrial center if he so desired, thus giving advertising to his city which is of consider- able value beyond the mere location of the plants. Since the investment of money or the granting of conces- sions has brought about such plans as the guaranty, the ex- emption from taxation, free sites, and investment companies, all of Avhich have had serious disadvantages and drawbacks, the industrial subdivision, operated without profits to any pri- vate person, is the method which will get the greatest support from townspeople and Avhich will solve the question of invest- ment and granting of concessions to plants. The industrial secretary should have his own survey in liand, and should know more especially the class of factories which would have the least chance at success and those which would have the best. Among the leading factors in securing factories advertising is first, and the second factor is the ease of obtaining help for the honest manufacturer who is solvent and can show that he wdll succeed with more capital behind him. The five great elements of economic location are primarily those which a manufacturer should study closely before trying to change, but the two mentioned are those which an industrial secretary should study before he will be successful in locating plants. To some cities factories have a tendency to drift — to others they must be attracted. Industrial Survey of the City What it Involves, and the Results to be Expected By EMMETT HAY NAYLOR The preparation of the municipality for industries involves making a complete industrial survey. This should be done by classifying all the present industries of the cit}^ as to their products, volume of business and financial standing. All freight rates, shipping charges (by water or rail), should be analyzed. The housing conditions of the employees should be investigated. When all these facts are gathered together, then a careful study should be made of the situation with the knowl- edge at hand. If there is any industry already in the city Avhich needs financial aid or proper management or other need- ful direction, it should be assisted. By all means, the in- dustries already located in the city should be assisted first, before any new ones are sought. If the freight rates are not satisfactory, they should be adjusted. If the housing condi- tions and home advantages are not desirable, they should like- wise be rectified. In this analysis should be determined the weak spots in the industrial life, and they should be strength- ened. Then the question will arise, ^'What does the city want as regards new industries?'' It is never safe for any city to have one product. The industries of the municipality should be di- versified so that in time of depression of one article, the others will maintain an equality of business activity. Another question that should arise is: "What industries is the city most fitted to take care of as regards the locality of the city?'- A city should guarantee high profits to the manu- facturer by natural advantages — a net profit greater than would be possible in any other city for this particular product. Also, in considering the industrial situation, and in bring- ing new industries to the city, labor conditions and the possi- bilities of strikes should be in every instance regarded. When we consider that the average gain from year to year in urban population for the United States was 35 per cent and that the average gain in manufacturing for the United States was 81 per cent, it is plainly manifest that the factories supply prosperity to the cities. In the New England district, we find the payroll and net factory cash spent through the regular 78 INDUSTRIAL SURVEY OF THE CITY. 79 channels of stores, banks, realties, etc., amounts to about |1200 for every family, city and country, while in the South, West, Southeast and Soutlnvest, it reaches about |150 per family. If the same proportionate factory business be located in a city of 100,000, it would mean an increase of some |20,000,000 spent yearly in that city, or some $1000 more for every family. Now, when the city has been placed in a position to invite new industries to it, and has no needful industries of its own, and it has been determined what class and kind of new indus- tries are desired, we go to our next step. Solicitation of New Industries The solicitation of new industries may be done in two ways : the indirect or receptive manner, and the direct or aggres- sive manner. The indirect or receptive manner, is by advertising. Mu- nicipal advertising for industries does pay for the commercial organization that has unlimited funds to spend in such, but for a commercial organization to have only a small campaign of advertising, with little or no money to devote to it, is a loss. The advertising of the municipality for industrial purposes will bring in a great many replies w^hich will be chiefly chaff, but among them there may be one or two kernels of pure wheat. The commercial organization, hoAvever, always should have on hand all up-to-date information as regards wages of labor, freight rates by rail or Avater, power rates, light rates, rentals for workmen, cost of fuel, available raw materials, etc. Such literature as is sometimes foisted upon the public by munici- palities, showing delightful scenes and written in fine descrip- tive power, makes pleasant reading, but the average industry wants to know definite and vital facts. Fine illustrated book- lets showing the city as a good place to live in, and to do busi- ness in, are desirable, but facts and figures of a business nature are more essential. A card system should be established by the commercial organization by Avhich all available factory sites, buildings for rent, etc., should be kept up-to-date and on hand for immediate and ready replies. On this card should be the following information : Size of lot, location, size and character of building, space available, light, for heavy manufacturing, for light manufacturing, kind of business desired, elevators, power, railroad facilities, sale price, rental and the name of owner and agent. 80 EFEICIENCY AND CHARACTERISTIC ACTIVITIES. The industry applying for information and assistance from the commercial organization should be told exactly the position of that commercial organization as regards new industries, so that there may be no misunderstandings and no waste move- ments in going after something which in the end will mean noth- ing. The assistance of the railroads sliould be sought in fur- nishing information to commercial organizations, as it is as much their business as anyone's to bring new industries into the city. The direct or aggressive method, is to concentrate on the particular kind of industry that is desired for the city. It is bet- ter to go after one or two than to give a great broadside by a whirlwind advertising campaign and be indifferently effective. Through the press clipping bureaus and hj other means, a sec- retary can keep constantly in mind labor conditions in other municipalities, where fires, etc., have taken place, and if he sees there an industry which he thinks should be better located in his city, he can then go to them with a proposition at the time of their trouble, and they may consider a change. In this he has to be the diplomat, in becoming acquainted with the offi- cials of the company and suggesting to them the possibilities of a change. It is never wise to talk to an old and established in- dustry about moving their entire plant to another city. It is better to talk to them about establishing a branch plant in your city and then eventually you may get the entire industry. If, however, the secretary cannot make a personal visit, he can at least Avrite a letter which is full of personality and sincerity, but which contains convincing facts. If there is one "DON'T'' that I would suggest, it would be DON'T USE CIRCULARS. They are a waste and a quasi insult. If the industry is worth going after, it is worth at least spending two cents on in a per- sonal letter. Investigation of New Industries In the investigation of the ncAV industry, judgment and analytical work must be used. This is the part of the indus- trial committee of the commercial organization. The thing to beware of in the new industry is the bonus-hunting, the fly-by- night concern which wishes to come to your city, raise money, do manufacturing there for a while, and then move on to the next municipality. The woods are full of tramp industries the same as they are full of tramp individuals looking for a hand- INDUSTRIAL SURVEY OF THE CITY. 81 out. And if they come to your city and locate and then fail, they leave industrial scars which are hard to eradicate. No city is desirous of the reputation of being the '^home of industrial failures." And yet, one must not be too independent as regards the consideration of new industries. All merit some thought. For instance, a man once came to a city in New England with a new kind of biscuit. He invited some of the so-called progressive citizens to his room in the hotel and there demonstrated to them his proposition. He squeezed some dough through a sieve, made it into a cake, baked it in a charcoal oven, and then served it to them mth sugar and cream. In a self-complacent manner they informed him that it might be all right for invalids, but that the average person would not eat that baled hay. He was a man without money, but he had a good product. Somebody with a vision saw it, and he is now manufacturing shredded w^heat biscuit at Niagara Falls, and you all know the result. In the city of Spring-field, Massachusetts, a w^orld cham- pion bicycle rider, suggested the possibility of having bicycles run by motor, and was called a day dreamer. But at last he interested some parties, and now he has one of the largest in- dustries in the country. These two examples show that no matter what the man's idea is, there doubtless may be some practical, saleable value in it, for you never can tell what the public will buy. And yet, on the other hand, you have to w^atch out for the visionary patentholder, who has an article which never could sell, but who comes to you and wants to organize a company and himself with no business ability at all, to be- come manager of it. I would suggest that the average new in- dustry be tested by the following questions : 1. Is the article which they manufacture useful? Is there a demand for it? 2. Has the company proper and efficient officers? 3. Is the company capitalized sufficiently to carry on the business in a satisfactory manner? 4. Has it a clear and definite business policy? 5. Does it strive for a high perfection in manufactured product? 6. Is its business and manufacturini? or.2:anization satisfactory, and has it a complete system of accounting? These facts should all be procured, and, furthermore, a complete report from Brad street and Dun should be had as to the business and as to the integrity of the officers. The com- pany should also be asked to place in the hands of the commit- 82 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. tee a certified auditor's report of its accounts and a certified appraiser's report of its machinery and other material assets. The question should also be carefully considered as to ex- actly Avhy this industry wants to come to your city. Of course, if 3 ou are soliciting the industry, the question does not arise, but if the industry comes to you, there must be some reason for it, and there's many a chance for an ulterior purpose to creep in here. If the industry is established in the city, all of these reports and facts should be kept carefully on hand by the secretary for reference and the progress of the industry for two or three years recorded. With the approval of the new industry, we come to our fourth and last step, the Location of New Industries In the first place, no commercial organization can consist- ently consider itself a stock promoting organization. It may be able to promote nine industries and have them successful, but the tenth industry might fail and thus spell dissatisfaction and ultimate disorganization to the commercial body. All that the commercial organization can do in this regard is to endorse an industry highly, and say to its members — "We have investi- gated this industry and have found it to be desirable for the city.'' But, there are four definite business methods by which a commerce body may locate new industries, and they are by forming independent companies working under the advisement of the board of directors of the commercial organization. These four methods are : 1. The Industrial Holding Company Plan. 2. The Industrial Loan Plan. 3. The Real Estate Development Plan. 4. The Nursen^ Plan. The Industrial Holding Company Plan is brought about by organizing a holding company of certain citizens of the commu- nity who will use the resources of the company for the purpose of stimulating old and new industries in the community. The company does not give bonuses, but properly invests its re- sources. The company is organized and incorporated for the benefit of its stock holders and for the promotion of the pros- perity of the community. All the stock is subscribed by the citizens of the municipality. The capital of this company should INDUSTRIAL SUKVEY OF THE CITY. 83 be large enough to permit the compan}^ to do comprehensive work. Under the genei*al corporation laws, when one-half of the stock is subscribed the company may do business. The company can be formed in the city by either a general canvass, by a mass meeting, or in any manner that seems best suited to the temperament of the citizens. Now, when some new industry has been investigated and found desirable, it is brought to the city, and it is necessary, let us say, to have ?50,000 additional capital. The directors of the industrial holding company are thoroughly satisfied that the new industry is a good investment; they call upon all the stockholders pro rata to buy stock to the aggregate sum of $50,000 and with the understanding that the industrial hold- ing company shall have representation on the governing board of the new industry. In this manner, |50,000 is invested, not given, to the new industry. The dividends on the $50,000 are paid to the treasurer of the industrial holding company and are pro rated to the individual stockholders of the industrial holding company after paying any incidental expenses for the operation of the said industrial holding company. In organ- izing the company and in securing stock, it is well to bear in mind that no subscription shall be called for until the new industry is endorsed by the directors of the industrial holding compam^ ; that not more than a certain percentage of the capi- tal stock shall be called for within a certain period of time; and that no subscription shall be in force until at least one- half of the capital stock of the industrial holding company has been subscribed. The industrial holding company should be empowered to purchase bonds from any incoming industry, which it endorses, or to furnish funds on long time loans, to purchase securities, and to do everything necessary to the loca- tion, establishment, maintenance and operation of the indus- trial enterprise. The industrial holding company can, if it wishes, organize its own industries and operate them with its own capital. The secretary of the commercial organization should be secretary of the industrial holding company. The industrial loan plan simply involves a credit or en- dorsement of loans for industries which are in need of addi- tional funds for the larger development of their business. This is done by calling a mass meeting of the citizens or a commit- tee meeting, as you will, and organizing a loan company. The 84 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. affairs of the company are in the hands of three or more trus- tees whose duty it is to carefully investigate the matter, ascer- tain the amount of loan desired, what security is offered, and the general merit of the proposition. If the trustees approve, they will go to the bank in which the loan is to be placed, make out the notes or mortgages, have the proper officials represent- ing the industry endorse the notes or sign the mortgages and then sign the papers themselves as attorneys-in-fact for the signers of the guarantee fund. The banks notify the trustees, at the same time they notify the officials of the industry when payments on notes or mortgages are due. In case of loss, the banks notify the trustees, who in turn, call upon and collect from each subscriber his share of the loss. The applicants are often found among people outside of banking credit, but as the risk is high, the loans are generally kept small. The next plan is the real estate development plan. It pro- vides that a group of citizens may get together and open up a certain tract of land for development purposes, offering special inducements to industries recommended by the industrial com- mittee of the board of trade or chamber of commerce to locate there. The plan secures an industrial fund for the city without calling for outright subscriptions, but by giving real value for any moneys secured. There is danger, however, under this plan that the real estate developers, in their desire to make money, will let any industry come into the city, and, therefore, it should be understood that no industry will be allowed on the tract which lias not been thoroughly investigated and approved by the industrial committee of the commercial organization. The advantages of this plan are that it gives the municipality an industrial fund in real property. It segregates the factory district of the city; it stimulates the municipality to develop along proper city planning lines as regards factories, and it offers great possibilities as regards satisfactory housing condi- tions and pleasant, healthful environment. The last plan is the nursery plan. There are many indus- tries which are too small to occupy large plants, but which will eventually grow. These industries should all be housed in one building known as the Industrial Building, and there allowed to incubate. The building, of course, should be constructed with good railroad facilities, proper lights, air, and modern manu- facturing requirements and conveniences. A great many cities INDUSTRIAL SURVEY OF THE CITY. 8."> have already constructed such buildings and find no difficulty at all in renting space to small industries which are investi- gated and found to have possibilities of future growth. * » * * To summarize briefly then. The municipality must be properly prepared by a survey, so as to have all conditions satis- factory for procuring new industries. New industries must be solicited by either the indirect method — through advertising — or by the direct method — personal and individual solicitation. All industries should be carefully investigated by the industrial committee, and if recommended, turned over to the industrial holding company. They caii then be properly financed and located, but if there is no industrial holding company, they can be provided for by the industrial loan plan, the real estate de- velopment plan, or the nursery plan. There is every reason to believe, however, that the indus- trial holding company plan is the solution, since it is possible for the company to lend credit to incoming industries by finan- cing its loans in the company's own funds either through the purchase of industrial bonds or making loans outright. The industrial holding company plan is better than the loan company plan because its subscribers invest and secure dividends, whereas in the loan company plan, merely low in- terest is obtained. The risk is equal in both plans. An indus- trial holding company can also handle the real estate develop- ment plan, can construct a building for infant industries and can do all when once a new industry is found desirable for the municipality. The great purpose, or purposes, of the commercial organiza- tion is to build up the industries of the city by the most economi- cal, efficacious and business-like methods possible. And every city, citizen and member will praise and support that organiza- tion which has this one of several purposes and accomplishes definite results. Some may say that the commercial organizations should build up their cities and let the industries come of themselves, but I sincerely feel that definite action should take place in procuring new industries and that when all is said and done, the commercial organization exists, first and foremost, for the building up and increasing of the industrial life of the city. CHAPTER IV. Agricultural Activities Commercial Organizations and the Farming Element By H. V. EVA The functions of a commercial organization may be stated in general as the promotion of the commercial, industrial and civic welfare of the community it is organized to serve. The question is, how far should agricultural development enter into carrying out these functions? There can be but one answer : First, all things come from the ground. There have been no skeptics in the history of the world on the truism that man must eat to live. A community also must eat to live, and the community's food supply has an important bearing on develop- ment. The more immediate question today is hoAV far should the commercial organization enter into this work? Let me give you two different viewpoints. One is expressed by the secretary of one of the most efficient organizations in the country: "It would indeed sound strange if we were to tell you that as an organization we do not devote any time to the subject of agri- cultural development, because^ all of our prosperity comes from the ground ; but as a matter of fact we do not have a committee on agriculture, and we have never felt the necessity of taking an active interest in this subject. This perhaps needs an ex- planation." The explanation is that he thinks the agricultural college in his state is very satisfactorily doing the work of im- proving agricultural conditions. Another executive states that his organization was not organized for agricultural development. It was organized for the purpose of advertising the city, securing new indu*^tries, conventions and advancing the interests of the city generally so far as possible. However, in the conduct of a campaign it learned the truth that a prosperous and progressive city must be backed up by a prosperous and progressive farming region. The result was enthusiastic and effective work in the field of agricultural development. COMMERCIAL ORGANIZATIONS AND THE FARMINC; ELEMENT. 87 In this day of cooperation and interdependence no man, no bnsiness, no community may stand alone. We must look about us, confer with and work with our neighbors that we may solve the problems that touch us all. Therein lies the foundation for commercial organization work and every movement in which men work together. The problems of the farmer and the city business men are intimately related. The problems of the city and the county surrounding it have a similar relation. The commercial organi- zation that endeavors to confine itself to the problems that can be seen from its office windows is, in my judgment, making a serious mistake. Among the factors entering into industrial development is the cost of living. In the family of the wage earner food takes a greater percentage of the family income than it does in the family of the average salaried man or business man. Food costs have a greater bearing on the wages of mechanics than on the salary of tlie executive. Accordingly, the man with capi- tal to invest considers the food supply and its effect on wage when considering a location for his factory. Every city that pretends to be a distributing center must have a market. A city is large and important in proportion to the size and importance of its distribution area. Within the distribution area of a large city will be found smaller cities of various grades of size and importance, each with its own distribution area — circles within a circle. Obviously, the pros- perity of the people and the towns within its distribution area is of vital importance to every city. If its own food supply is not involved — if there is plenty of production to supply it with- out expensive transportation, it still may turn its attention to production for other markets, and the serving of those markets so as to bring the greatest prosperity to the producers. How should the commercial organization show its interest? I am going to quote here the experience and accomplishments of one organization. In this particular cit}^ some twelve years ago a commercial club was organized. At that time everyone believed that the city was surrounded by barren waste. Through the whole upper part of the state the lumberman had cut his swath, leaving millions of acres of pine stumps, trees he scorned, tangled brush and branches. Underneath was a soil rich in agricultural resources, but few^ would believe it. 88 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. For several years the commercial club talked agriculture. It called upon the world to take notice of the rich surroundings and obtained no response. Then they started out to prove their statements. They engaged a practical, scientific farmer and made him agricultural superintendent. He got out among the few farmers. He made displays at county fairs and land shows. He conducted experiments. He interested the state college of agriculture and the county. It gradually climbed in the esti- mation of those who had been skeptics. Today its position is assured. They did not stop when they had proved their state- ments, but went to the state legislature and obtained an appro- priation for a state demonstration school. They went to the legislature again and obtained the passage of a bill empower- ing counties to make appropriations for county agents, and ap- propriating an amount from which the state would make similar appropriations when the counties had qualified. The result is that this state now has 35 county agents in the field. A commercial organization should most emphatically take an interest in agricultural development in the country around it. The degree of activity should be based upon local condi- tions. Study your county. If the actual work of instruction is being done by the state agricultural college or some other agency, get into touch with it and see if there is not something you can do to help. Your ability to deal with problems of road building, the straightening out of marketing tangles and the extension of farm credits is far ahead of the ability of any mere educational agency. Whether your problem is one of settle- ment, increased production, conservation or marketing, you need a scientific agriculturist to work among the farmers. Agriculture and Commercial Organizations *(EXTRACTS FROM A COMMITTEE REPORT) It is a plain and self-evident fact that there are very few commercial organizations so situated that they cannot do great good for their cities and communities by an effort to help solve some of the many problems of the producers of farm products. There are few states where the yearly value of farm products is not greater than that of all its manufactured products, and ♦Committee: — W. E. Holmes, Chairman; Bruce Kennedy, H. V. Eva, L. B. Dunham, Carl J. Baer. AGRICULTURE AND COMMERCIAL ORGANIZATIONS. 89 when one considers that agriculture is only beginning to be rec- ognized as a science, the modern farmer, both as a scientist and business man, it is easy to see that the great majority of com- mercial organizations can deal with no more vital subjects than those presented to the individual, or organization, who will study the needs of the contiguous rural communities. Doubtless every commercial secretary in the country ap- preciates, at least to some extent, the wonderful work that has been and is being done by the United States Department of Agriculture and by the agricultural colleges of the various states; but the most casual investigation A\dll show that in a great majority of the communities where practical work is be- ing done along the line of educating the rank and file of farm- ers to the latest and most scientific ideas the initiative has been taken by the business men of the towns, only a compara- tively few of whom are land owners. Especially to those of us who have spent some years on the farm the reason is obvious; but the fact remains that the average farmer resents the insinuation that the "town man'^ can tell him anything about farming, forgetting that the busi- ness world is filled with thousands of "farmer boys" who have had an opportunity to study and to observe the application of modern ideas, men who can see w^here their fathers failed, through lack of instruction, to practice methods that are today revolutionizing agriculture and adding immeasurably to the wealth of the country. Movement for Diversified Farming A movement in the South that is of significance, is the campaigns of education for diversified farming supported and fostered by commercial organizations. For a great many years, the agricultural energies of this section have been devoted to growing cotton almost exclusive- ly. As a result of the one-crop system, the soils have deterio- rated and it has become the custom to buy practically all food- stuffs from other states. It is said that in Alabama, during the year 1914, the people sent money to other states for foodstuffs ?6,000,000 more than the total value of the state's cotton crop. This money purchased corn, oats, wheat, hay, potatoes, and other foods, despite the fact that it has been demonstrated that 90 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. these crops can be grown abundantly in Alabama and the other states of the South. The necessity' for growing more foodstuffs was forced upon the minds of the farmers by the sharp drop in the price of cot- ton/ folloAving the outbreak of the war in Europe. The market fell from around fourteen cents to six cents and farmers, who had planned to buy foodstuffs from the West wdth cotton at fourteen cents, had to suffer the consequences of their own folly. They could not pay their debts and had no money to buy corn, hay and potatoes, which they should have grown. It is no light task to undertake changes in lifetime customs of a people, but this work was shouldered by several commer- cial organizations of the South and reports indicate surprising- results already. Whirlwind campaigns were made in Texas, Arkansas and Alabama. Scores of speakers, men of expert knowledge, were sent throughout these states. Their work Avas given enthusiastic support by the newspapers and business men and was followed by carefully prepared pamphlets and book- lets treating of grain growing, cattle, hogs, sheep and chickens. In mam^ counties permanent organizations were perfected. Another result of this campaign of education is shown in the fact that packing houses, flour mills, and grain elevators are being established at hundreds of commercial centers in the South. All over the South farmers are organizing for coopera- tion in growing and marketing grain, livestock and vegetables. Commercial organizations have blazed the way for these new conditions. A distinct service has been performed by chambers of com- merce in the way of developing and improving rural life and in cultivating closer relations between the city man and his country neighbor. Rural communities have been organized for social development, excursions have been made into the country by business men, farmers have been invited to join commercial bodies, and rest rooms and market exchanges have been pro- vided at commercial centers. But the people of the east and the middle and central west where land values are high, are also Avaking up to a realization that the farmers must change their methods. A prominent official of the United States Department of Agriculture recent- ly said to a member of your committee : "If the present high land values in many sections of the i AGRICULTURE AND COMMERCIAL ORGAXIZATIONS. 91 country are to be maintained it will be only by the introduction of improved methods of agriculture, and the tirst lesson to learn is to make the farm fully support the family, after which the farmer can begin to figure on profits. It is almost a crime for any farmer to buy his ham and bacon, or potatoes and butter in town, but thousands of them are doing it." There certain!}- is food fOr reflection in the statement of Bert Ball, secretary of Crop Improvement Committee, Chicago, that in no community Avhere an agricultural adviser is at work was the initiative taken by the farmers ; it always has and prol>- ably always will remain with such organizations as we have the honor to represent to lead in the campaign of education which must precede the employment of such experts. The Farm a Factory There are so many pliases and angles to the subject under discussion that one hardly knows which is the most important and interesting; but if one were to attempt to sum up briefly the statement contained in the many replies received to the questionaire sent by your committee to two hundred secre- taries, in all parts of the country, it w ould probably be in these words : "The coi^imercial organization w^hich does not concern itself with local agricultural problems and conditions is asleep at the swdtch." "AYe consider every farm in our trade territory as a fac- tory, producing materials absolutely indispensable to the life of the human race," says one secretary. "It is a singularly fortunate fact that the farmer produces no ^finished products,' in other Avords, that with the exception of vegetables and fruits (which the average farmer does not produce to sell) and of eggs and hay, practically everything grown on the farm — corn, wheat, rye, barley, cotton, cane, hogs, cattle and sheep — must come to the city as *raw materials,' to be prepared for consump- tion, these various processes furnishing employment to an in- finitely larger army of laborers than was required to produce the raw materials." A bulletin recently issued by one of the great harvester manufacturing companies says: The opportunity of the town lies in the country. The country can get along without the town, but no town ever has been or ever will be perma- nently prosperous where the land is poor. The town is built on farm prof- its; on what farmers produce in excess of their home needs. Towns are the 92 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. natural evolution and outgrowth of necessity — places to store and distribute the world's surplus products through the channels of commerce. There is' but one road to permanent city building — that road leads to the farm. Business is so sympathetic, so sensitive to crop production, that the forecast of a poor wheat or corn crop affects the markets of the world. When the harvest fields smile, to\\Tis wax fat, and factories increase the pay roll. Corn, wheat, and hay, beef, pork and poultry — these are the soil builders, the home builders, the builders of great cities. The old fashioned chamber of commerce, with its cash bonuses and free factory sites, is rapidly passing away. Instead of grabbing business from each other, towms are beginning to look to the country, out into the fields of growing corn and wheat and hay. Here lies the opportunity — for the great city, strange as it may -seem, is out in the country, hidden in the fertility of the soil. A successful hay campaign will bring factories to the town. Hay means beef and pork, which beckon the packing house and storage plant. More corn means cereal mills, glucose factories, starch factories. Flour mills locate in wheat-producing sections. Creameries follow the dairy cow, and the truck patch calls for the canning factory. Let us have more chambers of agriculture and commerce and fewer "com- mercial clubs." Let us create wealth from the opportunities at home, and not subtract it from other communities "No country can be richer than its lands,'' saj^s another secretary, who adds : "From the soil comes our food and cloth- ing; all other human needs are subordinate to these. Food is the chief material of life — its production is the most important occupation. In the hard school of experience we are slowly learning the lesson of real business economy — the greatest les- son of all time — that of feeding ourselves. Should commercial organizations interest themselves in these problems? !» should sav thev should.'' The Commercial Organizations' Relations With the "Back Country" By HON. D. F. HOUSTON It was my fortune not many months ago to have an op- portunity to speak to the chamber of commerce of one of our thriving cities. I had made some study of its problems and progress. I had certain views as to its relatioris to the sur- rounding country and the direction of progress. Before speak- ing, I asked if some one Avould not tell me what made the city, and the answer came — "the back country" — and this I knew to be true. I then innocently observed that, of course, as prudent business men, they had taken steps to inform them- COMMERCIAL ORGANIZATIONS AND "BACK COUNTRY." 93 selves of the needs and problems of the back country, of the best ways to foster a balanced agriculture and to promote its well-being; that their bankers had intelligent views as to the credits which should be extended and for what ; that they had taken pains to see that good roads radiated into tlie country districts; and, that they had assisted the fanners in solving their difficult problems of marketing and distribution. I then asked if they would tell me what had been done; and a deep and significant silence pervaded the room. This is one of many experiences and could be duplicated in many parts of the Union. That there should be a change, or that the change which is beginning to appear should be rapidly made, you will agree. What, then, is to be done? Obviously, first of all, a new attitude must be assumed and a sense of responsibility, even on the basis of enlightened selfishness, must develop. Business men and. business organizations must join the other great ele- ments in society and become effective students of agricultural problems and efficient instruments in bettering rural life. The problems are exceedingly numerous and sufficiently difficult to tax the best thought of the best men of the Nation. With all the progress made — and the progi^ess has been rapid and vast — there continue to be many interesting and urgent problems of production. There is much to be done for soil improvement, for plant and animal breeding, for the eradi- cation of diseases, for improvement of cultural methods, for better farm management, and for better utilization of labor throughout the year. The Nation is losing hundreds of millions of dollars through diseases which can be controlled or eradi- cated, and under better conditions the meat supply of the Na- tion can be greatly increased with reasonable profits to the pro- ducers and distributors. That this is essential may be sharply indicated by the mere statement that while in the last fifteen years we have gained 24,000,000 of people, the number of our beef animals has decreased 6,000,000, sheep 10,000,000, and hogs have increased only 11,000,000. Not less important, and even more urgent, are problems of distribution. It is one thing to produce commodities and an- other thing to distribute them economically and profitably. There can be little doubt that in this phase of his enterprise the farmer has been at a marked disadvantage. He has been without banking machinery to serve his particular needs as 04 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. the merchant and manufacturer are served ; without established standards for staples for use in market transactions and with- out systematic knowledge of the markets themselves; without ability to command the requisite transportation facilities ; and without the requisite contact with the machinery of distribu- tion. No one can estimate the losses arising because of these defects. Many drawbacks exist because the farmers' opera- tions, as a rule, are on a small scale. The average cultivated farm in the Nation is 75 acres, and in some sections only 35 acres. This points to one conclusion, that cooperation for not only marketing, but also for production, is essential in the in- terest of the producer as well as of the consumer. But even if each farmer were an efficient producer and community arrangements were developed for efficient market- ing, the problems would not have been solved. There is much that individuals and groups of individuals may do in every community. In fact, they must always do the larger part. Self-help Avill be the rule in the future as it has been in the past. Nevertheless, there are certain undesirable and unjust conditions which no amount of private effort can overcome. Such conditions legislation alone can correct. In the field of production, national and state agencies for a number of years have been rendering effective service, but, to the second half of agriculture involved in distribution, no systematic attention had been given or provision made up to two and a half or three years ago. Even the economists of the Nation had shown a singular indifference concerning prob- lems in this field. They had been busily studying the econom- ics of industry, banking, transportation, public debts, inter- national payments, corporation finance, economic theory, and the economic systems of the medieval and ancient world, but a mere handful had shown any appreciation of the difficulties which vexed the six million farmers of the Nation in spite of their knowledge of their strivings against them. In the minds even of the few there were grave doubts as to the lines that in- quiries should folloAv and as to the possibility of securing re- sults within a reasonable time. Some Recent Federal Legislation But things have moved rapidlj^ An office of markets to make investigations in all directions was organized in 1913, COMMERCIAL ORGANIZATIONS AND "BACK COUNTRY." 95 was rapidly extended, and today possesses a large trained per- sonnel with a budget of approximately a million dollars. It has accumulated a great mass of valuable information, and has extended aid to farmers and communities in many directions and particularly in the tield of the marketing of perishables through a market news service. Certain of the investigations of the office will require time. Many facts must be secured and conclusions reached before effective action can be taken. But certain things needed to be done. It was not necessary to await a long course of inquiry to begin doing them. The present generation needed service. A program was marked out and has been completed, in large measure, by the enactment of singularly carefully framed legislation. The national banking law was so amended as to permit banks to lend money within safe limits on farm mortgages and to recognize the peculiar needs of the farmer by giving his paper a maturity period of six months. The Federal Farm Loan Act was passed, creating a banking system to reach intimately into the rural districts, to operate on terms suited to the farmer's needs under sympa- thetic management, to introduce business methods into farm finance, to systematize and to reduce the cost of handling of farm loans, to place upon the market mortgages which will be safe investments for private funds, to attract into agricultural operations a fair share of the capital of the Nation, and to lead to a reduction in interest rates. Then there were enacted the Cotton Futures Act, providing standards for cotton, for the supervision of the operations of the exchanges, and for placing the trading in cotton on a sounder basis ; the Grain Standards Act, to establish standards for grain, to remedy certain in- justices and undesirable practices; and the Warehouse Act, providing for licensing bonded warehouses and making pos- sible an easily negotiable warehouse receipt, the better stor- age of farm products and the more orderly distribution of farm products. Not less important for farm operations is the Federal Aid Road Act, excellently conceived to safeguard the expenditure of ?1G0,000,000 arising under the act over the five- year period, and certain to secure better results from the 1280,000,000 or the equivalent now annually expended in the Nation for good roads. Preceding these measures Avas the Agricultural Extension Act, one of the most significant educational measures ever 96 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. adopted bv any government. Its terms you are familiar with. Like the road act, it provides for a very significant thing, for cooperation between expert state and federal agencies. It undertakes to bring home to the people the best scientific and practical knowledge bearing on production and distribution. It provides for the most effective way of disseminating knowl- edge, the old way, through personal contact. It will reach its full development in 1922-23, when there will be expended under its term from state and federal funds alone |8,680,000 in the direct education of the farmer and his family, and probably from other federal and state community funds from three to four millions more. With increased local support this will permit the placing in each of the 2,850 rural counties of the Nation two county agents, in most cases a man and a woman, with the assistance of district supervisors, all working with the aid and direction of the great forces of the land grant col- leges and the Department of Agriculture. What Organized Work Involves I have indicated these problems, this legislation, and this machinery for the very simple reason that if you undertake to cooperate in agriculture, you must know what you are coop- erating in and for, the conditions under which work must be done, the machinery through which it must be accomplished, and to suggest to you, and through you to business men, that these things must be assiduously studied if efforts are to be effective. Obviously, you must know the problems and the forces if you are to work intelligently. One of the great prob- lems confronting us is how to educate the business man and secure his effective participation. The department and the land grant colleges are frequently embarrassed by ill consid- ered and unwise proposals from individuals and business or- ganizations ; and not infrequently friction and ill-feeling is en- gendered. The business man is occupied with his immediate concern and no effective plan has been devised for reaching him. The metropolitan press has not yet fully conceived the part it might play in this great field. Agricultural activities are important but furnish little of the stuff commonly regard- ed as news, and it is seldom that you find on staffs of city papers men either interested in these matters or possessed of the requisite training to discuss them. Is there not suggested COMMERCIAL ORGANIZATIONS AND "BACK COUNTRY." 97 here a liigh opportunity for the useful direction of your ef- forts and influence? It is especially essential that the busi- ness world should have at least a sympathetic appreciation of the difficulties under which the farmers of the Nation labor and a basis for forming an intelligent judgment on construc- tive and remedial economic and legislative proposals. One of the discouraging things is the resistance by many business in- terests, based clearh' on ignorance, to greatly needed and sound legislation. Many of the discussions in the metropolitan press and in the trade journals of such proposals are frequently, to say the least, not creditable to them or helpful to their read- ers. I might refer, for instance, to current discussion of the Farm Loan Act and the Federal Aid Road Act. I have seen very few adequate discussions of either of these measures in the larger dailies, and have seen much that was misleading and distorted. I need not suggest that if we are to have gov- ernment by public opinion, facts must be presented, be fairly interpreted and correct conclusions courageoutsly faced, no matter where they may lead or what prejudices they may run across. What Commercial Organizations Can Do Looking at the matter more narrowly, there are many things that commercial organizations aild business men may well consider. Each urban community might well, in coop- eration Avith leaders in the surrounding districts, undertake a careful surve}^ for the purposes of better production and better organization. It may assist in the securing of a good county agent where there is none and effectively cooperate with him. Business men and business organizations may help work out better wholesale and retail markets for farm products, farmers' community buildings may be planned and established, and good roads radiating into the back country may be promoted to mutual advantage. Bankers in many parts of the country may be brought to see that by their wise use of credit will be de- termined the question whether or not the rural districts shall have a well-balanced, prosperous agriculture. Not a few of them are learning the lesson, and in some states the banking associations have intelligently and effectively organized state committees, composed of a member from each county, for the betterment of rural life. A peculiar opportunity is afforded for the sympathetic and constructive assistance of the banker 4 98 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. and the business man in connection with the inauguration of the Farm Loan Act and the formation of local associations, and in the furtherance of cooperation among farmers for the bet- terment of production and marketing. Another thing you in particular can do. Lack of stability and uniformity in agricultural conditions is one of the explana- tions not only of unsatisfactory financial arrangements but also of inadequate marketing facilities. Even after we have done the best we can for marketing and finance, there will be difficulties growing out of rapid agricultural changes, of shift- ing of population, in short, out of the continued pioneering of the Nation. Certain results expected from financial or mar- keting studies and legislation can be secured only with a stable and balanced agriculture. Some of the most pathetic failures arise in regions where farmers have settled under alluring in- ducements. Not infrequently they find novel conditions and dif- ficulties of production, but more frequently difficulties of mar- keting through lack of planning or through remoteness from markets. Much of the responsibility for such misfortune lies at the door of the real estate agent and of the town which is overanxious to build itself up. Obviously, some sort of re- sponsible oversight and direction would be desirable and help- ful, and I can think of no agents better adapted to render as- sistance in this direction than the membership of this body. False advertising and lack of provision or of previous planning is shortsighted in this field as in others, and in the long run defeats the objects and ambitions of the advertisers. CHAPTER V. Traffic and Transportation Bureaus By FRANK BARRY Transportation is a vital factor in commerce and produc- tion. This fact is now recognized by all commercial organiza- tions of importance which conduct transportation bureaus in connection with their activities. Prior to 1887 the railroads of the country were operated without governmental regulation. Rates charged were gener- ally based upon "what the traffic would bear and move.'' Rules and regulations were dependent only upon th^ volition of the carrier and the influence that the shipper could exert. As a result, preferential rates and discriminations were rife. The enactment of the law to regulate commerce, February 4, 1887, was intended to establish the right of the shipping public to reasonable charges for transportation, equal rates to all and adequate service by common carriers. For a brief period beneficial effect resulted. Time and the courts, however, modified the operation of the law and nullified the powers that were supposed to have been vested in the Interstate Com- merce Commission. After persistent effort by organized shipping interests of the country, continuing for about four years, the Interstate Commerce Law was substantially amended on June 30, 1906, and subsequently on June 18, lt)10, so as to give the commis- sion definite powers of regulation. With this effective governmental regulation of common carriers came a realization of the advantage, if not necessity, of a traffic organization or bureau, as an integral part of the commercial association, to guard the lawful rights and promote the interests of the shipper. Prior to 1006 but few business organizations conducted traffic bureaus. Since that time there has been a large and rapid increase in their number. Today practically every pro- gressive commercial and manufacturing organization of im- portance has its transportation department. 99 100 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. At first the railroads did not look with approval upon these associations, deeming their existence and action an undue in- terference with the business of the carriers. Gradually this feeling has been overcome, until most railroads consider the industrial traffic bureau a valuable assistant and auxiliary to their work, affording cooperation in transportation matters which could not otherAvise be obtained, and saving the rail- roads a vast amount of labor and expense in furnishing neces- sary information required by shippers. The evolution of the traffic bureau has been gradual, and accomplished upon lines adapted to the ideas and necessities of many communities and individuals. Business organizations in the larger communities have generally provided strong, efficient traffic bureaus under the management of capable men, who usually have had long ex- perience in transportation. Cities of 200,000 or more popula- tion, requiring extensive service, are able to afford the neces- sary financial support for a strong traffic bureau, while cities of smaller population have been obliged to "cut their garment according to the cloth" and feel that they are not justified in employing a high salaried manager with clerical assistance necessary to afford comprehensive service. The cost of maintenance of a traffic bureau in about 120 cities of the country having a population of 100,000 or more, varies from about |5,000 to $40,000 per annum, and averages 110,000. Owing to the varying conditions and the methods adopted for maintenance of traffic bureaus, also the differences in na- ture of the service required, it would be difficult to classify or draw comparisons between the various associations operat- ing in commercial and manufacturing centers. In some of the larger cities, the traffic bureau is main- tained entirely at the expense of the business association, and all members are entitled to the entire service afforded by the bureau. In others, the expense of maintenance is borne in part by the members who most need the service, who pay for its support annual dues of from |50 to f 100 per year, or are willing to pay a larger assessment, as a contribution, and the deficit in cost of operation is made up by appropriation from the parent organization. In other communities the traffic bureau is made self-sus- TRAFFIC AND TUAN>I'UKTATION BI RE^UR ' ' UOl taining, its expense being borne entirely by the* membership, and its accounts being kept separate from those of the parent organization. There are almost as many different methods of financing traffic bureaus as there are associations with which they are connected. The service afforded by traffic bureaus differs according to the desires and needs of the community. This service may be classified as individual in character, or for the benefit of the member, and in general, affecting the interests of the commu- nity. It is customary for all freight bureaus to maintain a tariff* file, to afford service in the quotation of rates and routing of shipments, tracing of delayed shipments, advice with regard to claim matters, dcHrisions of the Interstate Commerce Com- mission, the state commission, decisions of the courts and ad- vice regarding many questions that arise in traffic matters. Switching rates and rules, electric line express and parcel post rat^s, passenger service, rates and rules, steamship rates and service, as well as export facilities, are also within the scope of the traffic bureau's work. Other traffic bureaus undertake to check and audit freight bills, though this has been found impracticable in many in- stances Avhere attempted, owing to the volume of the service, the expense of employment of necessary clerical force, and the unprofitable results. Where this service is afforded there is usually imposed an additional charge beyond membership dues, based upon the fee of about two cents per expense bill checked, or a commission of from 25 per cent to 50 per cent for the amount of overcharge discovered and collected. Some bureaus undertake to collect for members' claims for overcharge and loss and damage. Others act in such matters in an advisory capacity. Most traffic bureaus handle complaints, conduct or assist in classification and rate adjustments in behalf of members, and perform a very valuable and highly appreciated service in this field. Tariff issues are carefully scrutinized and members kept informed as to changes that may interest them. Traffic bureaus in the larger communities perform a very useful function in conducting cases affecting the interests, of the community before governmental agencies, the Interstate » ^' 102^ '^' • EF^tCTENCY AND CHARACTERISTIC ACTIVITIES. 'Commerce Commission, the state commission, and local au- thorities. They also strive to promote local transportation facilities such as through merchandise car loading, the enlarge- ment of local stations, the conduct of stations, teaming, electric railway and motor truck service. Many of the larger industrial concerns throughout tlie country now conduct a traific bureau in their own interest, and Avhile such concerns are frequently members of the traffic bureau attached to the local manufacturing or industrial as- sociation, the details of necessary traffic service are attended to by their own bureau. Traffic bureaus and departments throughout the country have generally become allied and cooperate with each other through membership in the National Industrial Traffic League, which, through its various committees, and united action in transportation matters, has accomplished many benefits for the shipping public. Transportation Problems — How Shall They Be Dealt With? By D. P. CHINDBLOM The commercial organization that is ambitious to exert the greatest possible influence in the community cannot afford to delegate these important questions to another body or to com- pete with it. The commercial organization has in its membership, if it is truly representative, tlie very men who must back the traffic organization that is entitled to recognition as representative of the community. This is an unnecessary duplication and often results in a divided community. The commercial organization should be able to deal with these questions in a manner that will make the other agency unnecessary, avoid the duplication and unify the community. There is need for handling these questions in a construc- tive way and on a sound economic basis. Selfish aims and tem- porary advantages bring no permanent result that is beneficial to the community. This does not argue that an exclusive traffic organization is not capable of such a view. A real commercial TRANSPORTATION PROBLEMS. 103 organization, properly advised, will deal with every question in that manner. The fact that so many other problems of the commercial organization that arise cannot be properly handled without proper information on transportation is another reason for handling transportation questions within that body. We have in mind the pertinent example of the location of new indus- tries. Finally, the reasons for a separate traffic organization are really tAvo : The failure of the commercial organization to take up this Avork, or its failure to truly represent the community and get its support. The latter situation is a real challenge to the existence of the commercial organization. Relation of the Traffic Department to the Organization A discussion of how to deal with transportation problems within the commercial organization would not be complete without a consideration of the relation that the traffic depart- ment should have to the entire organization. This question only arises when there is such a separate department in charge of a traffic manager, commissioner, etc., and merits careful atten- tion. On this question let us speak frankly in the interest of the cooperation that must exist in order to get the best results. The traffic manager who measures up to the requirements is a man of special training and technical information gained by years of experience and application to the study of these questions. Naturally, the more qualified he is the more he is certain to have very definite opinions on the problems that come to him. The secretary, however, is the executive re- sponsible for the general administration of the work of the entire organization and supervision of every department. What is often needed is mutual recognition of the qualifi- cations and position occupied by the other. The traffic man- ager can get much assistance in securing support for his sug- gestions by keeping his secretary informed and by working with him. At the same time the secretary is in a much better position to successfully direct the work of the organization, secure necessary data, and fortify himself in dealing with his officers and membership by consulting with the traffic man- ager. This proposition is workable. 104 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Cooperation with the Carriers Cooperation with the carriers brings up one of the impor- tant and difficult questions for the organization. It is a mat- ter 01 regret that there has been too little cooperation in the past and too much antagonism. The fault has been a mutual one. Shippers have not always been willing to admit when they were wrong. On the other hand, the carriers have not been as frank as they might have been. The commercial organization should endeavor to secure an increasing desire on the part of the carriers to inform the ship- per and confer with him, and to develop a greater willingness on the part of the shipper to be convinced that the carrier is sometimes right. It Avill always be a fact that the commercial organization will be recognized as more definitely representing the shipper than the carrier, because the carrier serving many communi- ties cannot have that intimate interest in a particular commu- nity that the shipper has. It is the duty of the commercial or- ganization to see that this local interest of the shipper is exer- cised in a fair and reasonable way. When an agreement cannot be reached nothing has been lost by frankness and discussion. If there is a willingness to cooperate, conflicting views can be presented to the properly authorized tribunal for decision in a much better spirit of honest difference of opinion. We are told by both shippers and carriers that nothing is gained. The answer is that nothing is lost, and certainly noth- ing is accomplished by refusing to cooperate. What the carriers can accomplish by securing the coopera- tion of shippers has been recently demonstrated in the matter of car efficiency. Without tariff restrictions voluntarily a large increase in the heavier loading of cars has been secured. Appointment of the Transportation Committee To properly deal with transportation problems the appoint- ment of the transportation or traffic committee is an important matter. The members ought to be business men big enouglv to see the problems of the carrier as Avell as those of the shipper — men not afraid to acknowledge when the carrier is right, and with courage to insist upon a solution of their problems when thev are risrht. TRANSPORTATION PROBLEMS. 105 It is not necessary or helpful that representatives of the transportation companies should serve on these committees. As a practical matter, submitting any problem to a committee so constituted means that the shipping members and the carrier members will confer among themselves and the meetings of the committee will only be joint conferences. We may as well be frank al)out the situation, appoint the committee of repre- sentatives of the shippers and then have all the joint confer- encces desired, in fact, insist upon them. Educational Work The work of education is an important one and should in- clude the general public, as well as the membership and those employees of the membership who directly handle their trans- portation mattei-s. It is deemed helpful to accept every oppor- tunity offered to reach the public outside of the organization in an etfort to get as wide as possible a dissemination of infor- jnation. The opportunities for doing this with transportation problems are not as numerous as with more popular subjects, nor do they lend themselves as well to this method of handling. The real work is witli the membership. It is important that they be informed as to what your problems are and the solu- tion proposed. This is accomplished through your publica- tions, circulars and the public meetings of your organization. Particularly in public meetings there is room for more discus- sion of transportation questions. There is an important educational work to be done with the transportation committee. The committee must be free to reach its own conclusions if it is to have a real part in the work. The members of the committee, however, can not be expected to have sufficient information on these matters and it is up to the traffic manager to keep the committee informed. If this view is impressed upon the member of the staff handling transportation problems it will be helpful to successful work. The committee should be given the necessary data and sugges- tions, but the idea of education of the committee should not be overlooked. There are many matters of local and general trans- portation conditions that are not necessarily subjects for action by the committee, but of which its members should be informed. A phase of education through the commercial organization in transportation matters that is more generally recognized is 106 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. the work done with traffic managers and shipping clerks of individual firms in the community. In some organizations only the shipping clerks are reached and in others both groups. In the purely educational work of this character we are trying out the experiment of including representatives of the carriers. Questions are brought up for discussion and we have had the benefit of getting the views of both. sides expressed to mutual advantage. The topics for discussion with the traffic managers are necessarily different from those taken up with the shipping clerks. The traffic managers discuss rate adjustments, han- dling of tariff files, preparation of claims, rulings of the Inter- state Commerce Commission, etc. With the shipping clerks we have covered in detail such questions as the proper description of commodities, packing, marking and billing of shipments, principles of routing, etc., emphasizing the relation of these matters to proper, prompt and safe delivery and the assessment of correct transportation, charges. Many shippers and their shipping clerks do not ap- preciate the importance of these simple matters to a determina- tion of the cost of shipping, nor the extent to which their ship- ping methods set at naught their best advertising and salesman- ship efforts. This kind of education is important because it prevents trouble and that should be the purpose of the commercial or- ganization. Proper transportation facilities, rates and service may be available and not intelligently used. Examples of the points emphasized follow : Describing a commodity by a trade name not contained in the freig-bt classification which may result in a higher rating. We had actual illustra- tions of that being done. Failure to fully describe the contents of a box by omitting some article taking the highest rate of any in the box, thus violating the law and being subject to penalty if it should be discovered. Giving a description of an article without designating the state of manu- facture, whether a crude or other than crude commodity where that infor- mation is necessary, omitting to state whether liquid or dry, which some- times makes a difference. Using the term box, barrel, crate or bag indiscriminately. Shipping articles as a complete article when they could be separated, or shipping them set up when they could be knocked down, causing excess charges. Failing to remove old marks from boxes resulting in shipment being forwarded to wrong destination. TRANSPORTATION PROBLEMS. 107 Omitting the name of the county when there are two towns or cities of the same name in the same state. Routing in a manner that does not take advantage of the cheapest route. The above illustrations indicate the variety and practical nature of these questions. These are matters of everyday ship- ping transactions. The number of claims, the overcharges, the unnecessary correspondence, the friction caused, are not theo- retical. They are actually happening right along. Where pos- sible to do so we have given actual cases. We have also used the stereopticon in si lowing the condition of packages due to improper packing, use of old cases, or failure to properly close a box. This kind of work is carried on by many organizations. Specific Services Rendered The specific services rendered in the regular work of the department are simply stated but cover a very wide field. These services divide themselves into two general classes, specific service for the individual shipper and the service for the com- munity as a whole. Speaking of the former, first attention may be called to the giving of specific information in answer to inquiries. These questions include rates, routing, classification rules and descrip- tions, what to do in some particular case of a shipment lost^ damaged or delayed, handling of claims, etc. Answering these questions requires the maintenance of a more or less extensive tariff file of the steam and electric rail- roads, and of boat lines, decisions of the Interstate Commerce Commission and state commission, rulings of courts and con- siderable other similar information. These questions are often complicated and difficult to answer. They require for a proper ans'wer not only informa- tion but a large measure of diplomacy. Many of these questions come to the traffic department of the commercial organization as a last resort. The traffic manager must be fair and honest in his judgment, ready to insist upon the rights of the shipper, but Avilling to tell the shipper when he is in error. Many of these difficulties arise from a failure on the part of the shipper to do the right thing in the first place and lack of information as to how to file his claim for any loss sustained. Examples of how some of these matters must be handled may be given as illustrative: 108 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Shipper ciallessible shrinkage we in- sisted upon payment of claim. The carrier had agreed to make only a par- tial settlement. We secured practically full settlement on the basis of the figures submitted. Cases of this kind could be multiplied showing how the traffic manager must endeavor to determine each case on its merits. The specific services rendered the community are not as numerous as those rendered the individual, but they often involve a great deal more and are of the utmost importance. The larger communities generally confine their work to these community problems, giving information in a limited Avay, and only advising with membei*s on claims and other such matters. The ^mailer communities, on the other hand, TRANSPORTATION PROBLEMS. 109 emphasize the specific services to the individual to a much greater extent. In most organizations there is a tendency toward extending these specific services as required. No rule can be fonnulated to govern the policy in this respect. Local conditions and the demands of the membership must determine this question. In handling these problems the organization should guard against this work deteriorating into mere collec- tion of claims. The work should be conducted on a broad basis as genuine traffic service and with a view of preventing the re- currence of errors that can be avoided. Under the heading of the services to the community come all of the important questions of protecting a community in its relative adjustment of rates and service as against competing centers, improving and extending local facilities, securing sup- port for the passage of necessary state and federal statutes and i)reventing the passage of unnecessary and unwise laws. When these questions come up the community that is rep- resented will get its viewpoint considered wliether before com- missions or carriers. It is not always the things that are se- cured in these proceedings that are of the greatest importance, but what is prevented may be as important. Locally the ex- tension of switching arrangements, additions to freight-house facilities and similar matters should be given attention. Illustrations of the effect of rate adjustments could be re- ferred to, but I desire to emphasize just one point. A discrimi- nation of only a few cents per hundred pounds amounts to a considerable amount in total for a community in the course of a year. However, it is not only that but the fact that business may seek other communities that must be considered. Without discussing the merits of the particular case which may be familiar to many of you, I have in mind an instance where an effort was made to divide a certain defined rate terri- tory and secure the application of a lower basis of rates to a portion of it. That this action would have been favorable to the one portion and a disadvantage to the other is apparent witliout argument, whatever the actual result may have been because of other considerations. A case was decided some time since in which a rate adjustment to a community of not many cents per hundred pounds gave to that community the full benefit of certain power developments which had been largely offset by the previously existing adjustment. 110 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. In certain instances of commodities that are particularly responsive to the rate situation, the territory of distribution is almost entirely controlled by it. In these matters the services of a trained traffic official with a knowledge of the general rate situation throughout the country and its development is essential. The Small Community vs. the Large City There is a great difference in the application of the methods referred to in the community organization that employs a traffic official and the organization where the secretary must handle these problems. Every organization that can find a way to do so should secure the services of someone familiar with traffic work. There is no other real answ^er. With a view of bringing the subject up for discussion, however, I will at- tempt to make a few suggestions that may be helpful to the secretary in dealing with these problems. The first suggestion is that the secretary should be a close student of a standard traffic publication. Much information on other subjects is gained in that way and much can be ob- tained tlirough that source by transportation subjects provided the publication consulted is one that covers current events. Many small communities have some industry that has a traffic manager or another official more or less familiar with transportation matters. Draft him into the service. Keep in touch with the local railroad representatives and encourage them to consult with you and inform you of changes. By developing a habit on the part of your members of bringing to you their problems and giving them intelligent in- vestigation, a great deal of information will be obtained. In investigating these matters discuss them with other sliippers, with representatives of the carriers, form the acquaintance of your neighbor organization that has a traffic official; he will be glad to assist to a reasonable extent; you will get more ^ut of this than you expect. This kind of investigation Avill bring out some of the real problems of your community. You will probably find a number of members having the same diffi- culty and that will lead jou to sometliing that needs attention. A strong transportation committee of men who come in touch with these matters in their own business will develop much in- formation in a discussion of these problems. The question has been asked what could be accomplished TRANSPORTATION PROBLEMS. Jll by the employment of a railroad rate clerk in the organization. For the routine matters of answering many of the inquiries made and furnishing the secretary with information, such an assistant can be of much use. Care should be exercised in getting someone intelligent enough to get the organization viewpoint. There are some excellent traffic men who lack this requisite of organization training and who would not be success- ful in this work. The more important the city, the more important its prob- lems and the necessity for a high-grade man, but there are many communities where the organization is sufficiently strong and the needs of the community important enough to warrant se- curing the services of a traffic official if the members could only be made to see the benefits. Cooperation With Other Organizations There are questions that are not strictly local and that should be handled through cooperation with other organiza- tions. In this connection I wish to refer to the one national organization which has the support of commercial organiza- tions, namely, the National Industrial Traffic league. It has in its membership the traffic officials of many of the commer- cial organizations of the country. This organization has been very helpful to organizations that have no traffic off*icials through answers to inquiries submitted to its headquarters and through the information contained in its circulars and the printed proceedings of its meetings. It has carried cooperation with the carriers to the extent that it is frequently in conference with committees and repre- sentatives of the American Railway Association. This rail- way association and the league have been recognized as the national representatives of shippers and carriers by the Inter- state Commerce Commission. Conclusion The Chamber of Commerce of the United States sent out auite a complete questional re as to the traffic bureaus in the different organizations in its membership. The result of tlus investigation Avas published and distributed in pamphlet form. It is worthy of your careful reading. Particular points emphasized in this paper are: 112 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Necessity for commercial organization viewpoint in deal- ing with transportation problems. Importance of transportation problems to the organiza- tion. The commercial organization the unit in the community, and the traffic bureau a department of the organization. K^asons why these problems should be dealt with Avitliin the commercial organization. Relation of traffic department to the organization as a whole. Cooperation with the carriers. Personnel of the transportation committee. Actual handling of transportation problems, (a) Educa- tional work, (b) Specific services rendered. 1. To the individual. 2. To the community. Suggestions for handling these problems in an organiza- tion that has no traffic official. Cooperation with other organizations. CHAPTER VI. Retail Trade Activities Organization Service for Retailers By LEE H. BIERCE In discussing this topic one condition must be kept in mind and that is the fact that in the smaller cities practically the entire organization is built around the retail merchants and those closely associated with them; while in the larger cities the retailers fonii but a committee, bureau or department of the organization. In the smaller communities even the secur- ing of new industries, good roads, regulation of charities, the betterment of train schedules, etc., are retail activities. In the larger organizations these activities are handled by separate committees or bureaus far removed from retail interests and are never looked upon as retail activities. In the general cycle of merchandising there are four groups of business interest involved : The producer of the raw product, the manufacturer, the wholesaler and the retailer. To illustrate : In the manufacture of breakfast foods we have the man who raises the grain, the manufacturer of the food, the wholesale grocer and the retail grocer. Should the retail grocer fail in business he owes his bank and the wholesaler; should the wholesaler fail he owes the manufacturer, and should the manufacturer fail he is indebted to the producer of the raw product. The reverse of the situation is not true. The pro- ducer is never indebted to the manufacturer; the manufactur- er does not owe the wholesaler, and the wholesaler never owes the retailer. Therefore, the most important man in modern merchandising is the retailer, for upon his success depends the entire success of all the other groups. The retailer should be tbp strongest mentally, financially, and in every other way. He should be the big man of the community, the one who leads in all matters of civic pride and activity. However, we know this is not the case and that men of small means, limited educa- tion and limited aspirations drift into retail merchandising 113 114 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Therefore, it becomes necessary for the banker, the wholesaler and the manufacturer to do a lot of thinking for the retailer; it is necessary for them to solve the retailer's problems for him. In other words the commercial organization finds more to be done for the retailer than for any other class of membership. Dependency of Retailer Again, the retailer is dependent upon the community for his very existence. He is dependent upon better conditions in the community for better conditions in his business and the development and growth of the community for a development or enlargement of his business. Then he is the one man who should be more concerned over the future progress and pros- perity of the community which he serves than any other class of membership in the commercial organization. He should pay more and work harder. As an illustration, permit me to say that one per cent of the furniture manufactured in Grand Rap- ids is sold at retail in that city; a wholesale drug house there has several thousand customers but only seventy of them are located in Grand Rapids. Therefore, the furniture manufac- turer and the wholesale druggist are less concerned about the future development of the city than the retailer w'ho disposes of all his merchandise to the citizens of the very community which he serves. Whether the retail merchant of your city is the one Avho pays the most for his membership and is the mem- ber who is the most active in the organization to make your city a bigger, busier and better one may remain an unanswered question. Nevertheless, the fact still remains that he is the man you do the most thinking for ; he is the man you work the hardest for and are the most concerned about. Whether the service rendered for the retailer by your or- ganization is handled by the secretary, a separate executive or a fully oraganizd bureau is a condition which depends largely upon the size of the organization and the city served and is of little moment at this time. We are proceeding on the assump- tion that there is either a bureau, department or committee or- ganized for the purpose of considering the problems and activi- ties of the retailers and that this committee is in session waiting to be told what to do. Some of the principal activities of prac- tically all commercial organizations, activities of interest prin- cipally to the retailers, are as follows : ORGANIZATION SERVICE FOR RETAILERS. 115 Activities of Interest (1) The investigation and endorsement of charitable and social welfare organizations; the selling of tickets and soliciting of advertising should be regulated and controllee oi>en. Then the matter of Saturday closing hours has been handled by the commercial or- ganizations in the larger cities. It is frequently necessary for the retailers^ to work in harmony with the manufacturers so the stores will be open on the evening of pay-day. This is a situation frequently developing in the smaller cities and should be worked out by the commercial organization. (9) A careful study or survey should be made by the commercial or- ganization of the delivery systems used by the retailers with a view of de- termining the cost and whether or not a cooperative system would be an economy and at the same time maintain adequate delivery service. In one small city Feventy-two independent delivery rigs were displaced by twelve cooperative rigs with an additinn of four on Saturdays. In all probability approximately the same reduction in the number of rigs and the same cur- tailment of expense could be effected in almost every city. (10) In several of the larger cities the returned goods evil was well under control months, and even years, ago. This matter has now been brought forcibly to the consideration of all commercial , organizations by the Board of Economy of the Council of National Defense. This condition and many others brought about by the war will have to be considered by commercial organizations in the interest of their retail memlK?rs. It is an ill wind that blows nobody good and there will be manj^ profitable lessons we can learn from the present conditions thrust upon us on account of the war, and that city which gives the most careful consideration to these prob- lems is the one that will reap the greatest benefit, and the live commercial organization will handle all- these problems as they develop and do so in the interest of the retail merchant and the trade he serves. (11) The study of retail salesmanship is rapidly developing as an activity in which retail merchants are taking a greater interest. It is almost impossible for the retailer to employ trained help unless he secures it from his competitor or fellow merchants. C-ommercial organizations should assist the retailers in correcting this situation and they can do so by bringing to their cities sales experts to address both retailer and employee. The con- ducting of classes in salesmanship in the night schools, business colleges and Y, M. C. A., courses should be encouraged. It is also conceded that proper retail salesmanship will greatly reduce the volume of returned merchandise and indirectly assist in solving that particular evil. (12) Several organizations report that they are now assisting their members in preventing shop-lifting and the passing of fraudulent checks. ORGANIZATION SEliVICE FOR RETAILERS. 117 Information is circulated quickly from one store to another warning: against persons of a certain description. This information is also >:ent to nearby towns for the purpose of protecting the merchants of those communities. Systems have also been adopted whereby information about clerks is circu- lated among the members of the retail divisions of some of our larger or- ganization?. This information is for the purpose of preventing inefficient, drinking and dishonest clerks from getting another position. Clerks who quit without giving sufficient advance notice are also included in the list. It would be practically impossible to furnish such service exceiit through the commercial association. (13) The retailers in many cities have acquired the habit of giving si)ecial discounts to certain people i=^uch as ministers, teachers, actors, clerks from other stores, employees of city institutions, etc. Now many of these merchants would like to get out from under this habit. The matter can best be handled and the problem solved by an agreement among the retail members of the commercial organization. Again we discover a desired result almost unobtainable without the assistance of a commercial organization. (14) The practice of granting a discount of ten per cent to dressmakers is one that has been very largely indulged in by the dry goods and depart- ment stores of many of our larger cities. That this practice was being great- ly abused is revealed by the fact that when one commercial organization l>rought about the ruling that only those dressmakers employing two or more helpers were entitled to the discount the number enjoying this privilege dropped from two thousand to 150. This is strictly a service to be ren- dered by commercial organizations for the retail members. (15) While the improvement of the highways, or in other words, "good roads," is seldom looked upon as an activity in which the retailers should be especially interested, nevertheless it is that division of your membership that reaps the greatest reward through the construction of better roads. Many retailers have confessed that good roads have not onlj' helped to increase their business but have made it easier for them to combat mail order competition. With the general use of automobiles on the part of the farmers it is now more essential than ever before that all roads leading into your city be improved and properly maintained and the retailers are the ones who should interest themselves in this movement. Signboarding and the proper posting of the roads are also important. (16) Many of our cities have boulevard lighting systems in the retail districts and invariably this improvement was secured by the retail divi- sion of the commercial organization. The proper lighting of the retail district is very important and certainly should be looked after by the re- tailers themselves working through their organization. Other problems of a municipal nature frequently interest the retailers, some of these being the proper routing of street cars; the size and position of outside display cases and advertising signs; proper schedules on suburban trains; the cleaning of sidewalks in the downtown district, etc. (17) Trading stamps are now looked upon as an uneconomical factor in merchandising and their extermination should be sought. This is, of course, a matter of legislation and a difficult one at that, but the time ha^ arrived when all unnecessary factors entering into the sale of merchandise should be eliminated. These would include the giving of trading stamps, voting contests^, the giving of premiums and the extension of credit on too liberal a basis. The desired results can be obtained only through the co- 118 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. operation of the retailers and this cooperation would be impossible without a commercial organization or the forming of a new organization which amounts to the same thing. There is unquestionably more lost motion, less efficiency and more waste in retailing, as it is conducted by a vast major- ity of the retail merchants of this age, than in any other phase of business. Delivery systems overlap, are cumbersome and too expensive; credit is frequently granted in a very unsatis- factory and unscientific manner ; salespeople are poorly trained and unqualified; advertising is misleading and frequently dis- honest ; competition being keen, trade evils and abuses are prac- ticed on a large scale and, all in all, retail merchandising is on an absolute unsatisfactory basis. Manufacturers maintain retail service bureaus and wholesalers conduct merchants con- gresses with the sole purpose of elevating retail merchandising methods. Picture if you can a group of retailers getting to- gether and conducting a meeting for the purpose of elevating wholesale merchandising methods. The truth is that the manu- facturers, wholesalers and others are trying to solve the retail- er's problems for him, they are thinking for him. Under these conditions the deduction is apparent that not only must the re- tailer be exceedingly active in the commercial organization but tlie commercial organization must be exceedingly active for the retailer even if it has to be done through a manufacturers', bankers' or jobbers' committee. CHAPTER VII. A Plan for a Temporary Exhibition By JOHN M. GUILD When a secretary is moved to initiate a home products exposition or his organization undertakes one, what should be the first step, and what should be the entire program? It is the pui-pose of this paper to provide specifications. There are two kinds of home products expositions — the temporary and the permanent. This paper deals only with the temporary. It has no bearing whatever on the permanent dis- play s of home products that many cities have, especially in the south and on the Pacific Coast. There are two kinds of tem- porary expositions — the kind gotten up for entertainment and possibly for profit, and the kind gotten up for trade promotion and for education. The first invariably attracts great throngs that carry away not much more than the pleasant taste of a good time, Avhereas, the other, properly planned and managed, becomes as it should be a valuable, long remembered and im- portant event in local history. Why should time and eftort be invested in a hastily gotten up glittery thing, when careful preparation will bring forth an exposition that will be not only creditable to the organization back of it, but will promote greater recognition of the organi- zation's leadership, greater confidence in it, greater knowledge of home products, more business and, therefore, better times? But there are two classes of people, those that want to be en- tertained and those that seek knowledge. Both must be inter- ested. All are purchasers or consumers, and greater home patronage is one of the cardinals of such an exposition. There- fore, in planning an exposition, the necessity for striking a medium between the two extremes is important. The main essentials are three.. ^ There must first be a good reason for having an exposition. This involves not only the object sought to be attained, but the timeliness. Whether or not manufacturers can afford to put on the right kind of exhi- 119 120 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. bition must be taken into consideration. The second is a good show. It must be that in these days of twentieth century per- fection. The third is a good attendance. With a good purpose, a good show and a good attendance an exposition successful in every way is assured. So much for general principles. Now for details and a plan of campaign which, for purposes of simplicity, have been classi- fied into five main headings: Purpose, organization, prepara- tion, operation, results. Under purpose are l^ye sub-divisions that cover the prin- cipal reasons for an exposition. These are promotion of trade, education, cooperation, advertising, profit. As a general proposition, the first purpose is the promo- tion of trade, unless the exposition is being promoted by travel- ing professionals. The exposition is, therefore, intended to show the home people first everything made in their town. The average citizen, yes, and the average business man, keen though he may be, has little conception of what is made behind his neighbor's factory walls. He is so engrossed with his own af- fairs that he couldn't, to save his soul, tell whether or not some common article of use, that he himself doesn't handle, is made there. If that is true of home people, it is more so of strangers and an exposition should aim to also reach the outside trade. To promote trade, the displays are supplemented when- ever possible by the distribution of descriptive matter and fre- quently samples. The latter is more common in the case of foodstuffs, but in paper, metal and wood working lines, attrac- tive little souvenirs, often the articles in miniature, are given out. The value of these depends on the articles advertised, its merit, class of people reached, etc. The practice of giving out something is recommended, especially for its power in drawing a certain class to the exposition. Although drawn there largely by the attraction of something for nothing, they cannot attend without some good resulting. A survey of expositions held shows but few cases where the articles on exhibition are confined strictly to home products. The first step away from that rigid classification is to permit the exhibition of articles of outside manufacture that do not compete Avith a home production. The next and commonest procedure is to allow any bona fide manufacturer, jobber or merchant to show anything made or sold there, in the regular A PLAN FOR TEMPORARY EXHIBITION. 121 course of business. This of course lets in the retailer, the auto- mobile dealer and other classes, not only desirable but frequent- ly indispensable if the exposition is of any great magnitude. One thing invariably prohibited is the selling of anything from the exhibits, and it should be. An exposition is meant to be promotional of interest in the goods shown, and if exhibitor's want visitors to try their wares they should furnish free samples. Booths are not intended to be selling places, and it is somewhat to the discredit of the exposition management that permits such sales. The average exhibitor will be satisfied to shov\' his goods and take orders. This, of course, is independent of concessions. Educational If the pui'pose of an exposition is along the lines so far indicated, the educational value to the community will be very great. To impress home people with what is made in their town, get them to try the home-made article, whether cornmeal or a washing machine, impressing them with the quality or superiority to the imported article and thereby get them to talk it among themselves and to outsiders, means an invaluable ally to the other recognized advertising methods. All of this means a greater home consumption, and there is no better ad- vertisement than the general use of a home product. This use unconsciously develops a home pride and creates a natural con- fidence in everything else made there. It makes a citizen more readily responsive to other calls for civic patriotism. It knits the community more closely together and develops a better spirit in every way, one that may be capitalized to almost any extent by the local commercial body. • Cooperation and Advertising If another purpose of the exposition be working up a spirit of cooperation, this is a splendid medium. In the average community manufacturers are prone to work along independ- ently, bear their own burdens, fight their own fights, overlooking the fact that this is the day of cooperation. An exposition brings the different exhibiting interests together, and, being for a common puri)ose, creates a cjoser fraternal and commer- cial spirit, even among trades widely different. If the purpose of the exposition is community advertising, no city or town can have a better medium. As the big national 122 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. and international expositions, held years apart and in different parts of the country, are milestones of progress in manufacture, science and art, so is the local exposition a positive evidence of the progress in that community. The effectiveness of it as an advertisement depends on how widely it is advertised, whether only locall}^, in very nearby towns, in all trade territory or beyond. Profit or Deficit If the purpose of the exposition is financial profit, that will, to some extent, detract from the reputation and dignity of the proposition. Fortunately, profit is generally of secondary consideration and means to guard against a deficit rather than gain a profit. But in estimating the probable expenses and income, it is well to figure on a safe margin so that contingen- cies will be provided for. No profit should be made from the exhibitor in any way. He is a partner in the enterprise. With- out him there can be no exposition. He must be treated right and given everything possible for his entry fee. Many exposi- tions plan to open their doors with all expenses up to that time met, so that if bad weather should ensue, the management will be mighty glad they did not figure on admissions to meet the overhead expense. It is noticeable that where there has been a profit as the result of playing safe, it generally goes to the local organization to be reinvested for the benefit of the community. It is well to announce in advance, where there is likelihood of the question being raised, that this is what will be done. It can be shown that, what\ ill be immediately apparent, and will also be perma- nent. Exhibitors The exhibitors, as one of the principals in the project, gen- erally report fine advertising at a minimum cost, great num- bers of new friends made, and lots of orders taken. Exhibitors tell of introductions to prospective customers that they could not possibly have reached in any other way. They report success in the introduction of new lines by getting the attention of the public all at once, and they are generally ready for another exposition. The results to the promoters of the exposition should be something of a total of the benefits to the people, the commu- nity and the exhibitors. If the exposition has been a success for them that is a sufficient dividend for the promoters. But, in addition to that, the exposition should be to the public a fine example of unselfish community work, and if a nice cash bal- ance is left on hand, that is a further evidence of good manage- ment on the promoter's part. If, on top of this, a financial statement of all receipts and expenses is published, this means taking the public into further confidence and helps the organi- zation in the next big thing it undertakes in its work of build- ing up the city. Bear this in mind : The public is often indifferent to the work of an organization, and even some of its members are. Directors and secretaries may slave for them day and night and accomplish great things, but the result of an exposition in the community will surprise in the way it will please the people It is a spectacular thing, a dress parade proposition, in which they can all participate and which, compared to other work, they can all see. An exposition will awaken them as nothing else will. CHAPTER VIII. Conventions and Publicity Conventions, Their Cost and Value By L. H. LEWIS Conventions unquestionably are a known factor in develop- ing the transient population of a city and in giving a commu- nity direct advertising. Every convention is of some value to a city, but the eje of an expert usually is required to determine fully what it is. Only the expert can tell in certain cases whether the cost was greater than the value. Surface condi- tions do not always indicate the correct value of a convention. It is a grievous error to estimate the complete value of a con- vention by the money spent by the delegates. There are spend- thrifts in the convention business, and there also are men em- ployed w^ho get excellent returns on the money invested. The actual cost in dollars and cents of financing a convention rare- ly, if ever, determines its worth. The convention business, as a w^hole, is exceedingly profitable, but there is a great need for standardization. Much money and effort are wasted. Compe- tition for conventions is as keen as in any other branch of com- mercial organization work. Possibly the greatest value of the convention is the pub- licity given the city w^here it is held. Any city with a spark of progress invariably seeks to advertise its advantages broadcast. Publicity for a city of the most valuable kind often comes free and unsolicited because of conventions. It is frequently inspi- rational and usually does not have to be paid for in dollars and cents. One of the best mediums for obtaining this highly de- sirable publicity — that is so different from any other brand of advertising — is through the convention. A satisfied convention visitor to any city is a w^alking ad- vertisement for that municipality. Shrewd advertisers select the publications that reach the greatest number of persons with w^hom there is a probability of doing business. The cost and the quality of the subscribers to. those mediums, of course, are 134 CONVENTIONS, THEIR COST AND VALUE. 136 controlling factoi-s in the selection. Practically these same fac- tors must be considered if satisfactory results are to be obtained in the convention business. There are some mighty good and there are some very bad conventions meeting regularly through- out the United States. There are more brands of conventions than colors in the rainbow. Some cities have been injured more than benefited by the conventions they have entertained. One of the best kind is that which helps local business generally. The convention that, in addition to demanding a bonus and all op- erating expenses, disturbs local conditions, is a mighty poor one, and should be labeled "not wanted." My own experience, along with the information I have gathered recently, convinces me that to obtain the greatest results in convention work, there should be the highest type of organization. Use should be made of the most modern business methods, and efficiency should be the motto of the organization. The convention business is one of the greatest and most important branches of commercial organization work. It concerns practically every commercial organization in the United States. Municipal publicity can hardly be separated from conven- tion work. They are closely connected in innumerable ways. Many commercial organizations have seen the necessity and wisdom of organization and system in handling convention work and quite recently there have been established bureaus and departments whose activities are devoted exclusively to this field. Results naturally come with the establishment and opera- tion of a compact, well-oiled organization — a committee, a di- vision, a department, a bureau — that is continually in service. I have failed to find the organization or the individual who professed to know all about the convention game. It really is a game, and the players must continually keep in training if they stand well in the percentage column. Experience gathered in handling one convention is usually helpful in dealing with nnother. The successful convention bureau keeps records and files that are of almost inestimable value. No rules have ever been established and no fixed methods devised for either obtaining or handling conventions. What might be a satisfactory arrangement in one city would not work well in another city. The que^stion of handling conven- tions by cities, particularly in entertaining them and in perfect- ing local arrangements, resolves itself into the fact that each city has a course of individual treatment. 136 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Some Conclusions About Conventions It is not my purpose here to lay down a definite plan for convention work, but I have made several observations that caused me to reach the following conclusions : Commercial organizations that make especial provision for convention work get the greatest results from their efforts. Buying conventions is a bad practice and one that should be stopped. A convention that has to be bought really is not worth having. The general tendency among cities now is to offer a meeting place free of charge, assist in making the local arrangements AA'ith members of the organization meeting in convention, and help in advertising the convention. It is in- variably a mistake for a city to try to get a convention when the local members of the organization are not interested. Obtaining conventions is nothing more than a high type of salesmanship. A successful convention man is a diplomat skilled in the art of disposing of his goods at the best possible price for the organization he represents. A small convention frequently benefits a city more than a large gathering. The greatest possible amount of care should be exercised in selecting a convention so as to eliminate the undesirables. This can only be done through proper organiza- tion and system for which sad experiences usually pave the way. More satisfactory results in convention work usually are obtained by having a budget so that those in charge will always be acquainted with their financial condition. Financing con- vention work has been a mighty big problem with many cities. The general public sometimes fails to appreciate the value of conventions. This also is true in a measure of those who are directly benefited when the convention comes to town. It is a fatal mistake for any city to endeavor to entertain a convention when it does not have the proper facilities to do so. There is a wonderful contrast between the satisfied and the disgruntled convention visitor. Both always remember their treatment. One is chanting in praises, while the other is con- tinually bellowing in disgust over his treatment. The success- ful merchant endeavors to wrap satisfaction up in every bundle while the most successful convention organization endeavors to satisfy eveiy convention visitor. There is a certain class of conventions that is continually watching the horizon for easy prey. There are parasites in the CONA^BNTIONS, THEIR COST AND VALUE. 137 convention field — more than willing to take all and give prac- tically nothing in return. It is this class of conventions that the experienced convention man will not touch. The unsophis- ticated led astray by the glowing accounts of the number of delegates and the money they will spend during the convention usually pays the price but once — and no more. Competition between cities for conventions is very keen and has developed some tendencies that are unquestionably bad. Representatives of some cities have painted a picture of their town that never did nor could exist. This probably has caused some conventions to accept Avith a grain of skepticism the statements made by some convention men. Probably this is why some conventions ask for almost ever3^thing from an ap- propriation of several thousand dollars to a free meeting place and really expect to get only a small part of what they ask. Many commercial organization executives in the past few years have remarked that conventions have been spoiled. I myself think there has been ample ground for this belief, but I think present conditions are decidedly improved. Considered from every standpoint the convention that is really worth while to any city, if properly managed and ob- tained through what are recognized as approved methods, is one of the best community developers on the market. More conventions mean more hotels, more new money and a brand of advertising that money can not purchase. Many cities would not have coliseums had they made no effort to get conventions. Their transportation lines would not be modern had they re- mained out of this field. Many cities would be without some of their best citizens and largest manufacturing concerns had they not acted the part of convention host. The price of real estate and property rentals would not be as high in many cities had no conventions been held there. The Value of Conventions There are many values to the ordinary convention that can hardly be estimated definitely. A few cities over the country confine their efforts to certain classes of conventions, but the larger cities especially can not do this with any degree of suc- cess, for reasons that are obvious. These cities that specialize endeavor to obtain conventions Avhich they believe will give the most benefit to certain lines of business represented in their 138 EFFICIENCY AND CHARACTERISTIC ACTIVITmS. town. One of the values of a convention that is difficult to compute is that wrong impressions about a city frequently are corrected when the convention visitor comes to town and en- joys its hospitality. False opinions disappear when the visitor sees with his own eyes a thing that had been pictured to him in a different way. Here is one of the educational features of the convention. The educational value of the average convention is one of its most important assets. The most improved business methods frequently are taken up for discussion on the convention floor. This invariably acts as a stimulant to local business. An- nouncements often are made of the latest discoveries in the scientific world. A city neglects golden opportunities when it fails to impress its advantages in every way upon the mind of the convention delegate. There are about five thousand organizations meeting in convention in the United States. Experts figure that the aver- age convention visitor will spend about six dollars a day. Some cities calculate to spend from fifty cents to two dollars a day for entertainment for each defegate. Most cities follow the plan of either sending a representative or asking the local mem- bers to present their invitations to the convention itself or to the committee in charge of selecting the next convention city. Most commercial organizations usually let local members take complete charge of the arrangements for the convention because the expenses usually are kept down to the minimum when this plan is followed. This w^ould not apply, of course, when there are not enough local members to shoulder the burden. All forms of entertainment are provided through the in- genuity and the fertile brain of the convention man. The means at his disposal usually governs the scope of the entertainment. Some cities can entertain a convention successfully with one- half the expense required in another city because they have the facilities and the natural advantages. That the convention business is profitable is shown by the fact that the convention industry in the state of Colorado ranks fourth. In 1913 it was figured that in that state the conven- tion business amounted to |25,000,000, which was larger than its gold output. In several cities the city administration regu- larly makes contributions for conventions, thus throwing the burden upon every citizen. Several cities maintaining highly ADVERTISING BY COMMERCIAL ORGANIZATIONS. 139 successful convention bureaus spend about one per cent of the total amount raised for entertainment. The funds in some cities are raised by the hotels and restaurants giving one-fourth, the commercial organization one-half and the public generally one-fourth. About seventy-five per cent of their funds are spent in obtaining conventions. Many commercial organiza- tions annually set aside a certain amount for convention work, but only a limited number keep any record of the amount spent for entertainment and a record of the visitors brought to their cities each year by conventions. Most commercial organiza- tions always endeavor to obtain funds for convention work from outside sources. They endeavor to raise funds for each convention in this manner when they do not have a special fund for the work. A word of warning would seem to be in order now. The secretary who knowingly disseminates wrong information about a convention to a fellow secretary is guilty of high treason. It is far better to give no information at all than to lead an in- quirer astraA^ Give every inquirer the most reliable informa- tion, for who can tell w^hen the tables will turn. The practice of charging exorbitant hotel rates because of conventions is a question that probably will demand the consideration of legis- latures in more states than one during the next few years. This is without the control of the average convention organiza- tion, but the convention man will be doing an honorable service if he communicates the views of the ordinary delegate in the premises to the hotel proprietors. City Publicity Portion of a Report on Advertising by Commercial Organizations By CARL DEHONEY and THORNDIKE DELAND ^ote : The following constitutes the deductions made from voluminous material on the subject gathered, as the result of an exhaustive questionaire, from all parts of the United States. A review of the facts brought out in our survey together with other experiences and data on the subject lead us to sug- gest that the dominating features of the situation as it exists today are : 140 EFFICIENCY AND CHARACTERISTIC ACTIVITIES: That commercial organizations have as yet only scratched the surface of this great question; have only begun to realize its vast importance both for their own development and the development of their cities; that out of the present confusion and conflict of opinion there will eventually come an approach at least to a more scientific handling of the problem. That, while there is marked difference in the problem of advertising a commercial organization or a city and advertising a commercial product for sale and consumption, yet there are sufficient points of similarity to enable the municipal adver- tiser to profit by the more standardized experiences on the pro- curing of commercial advertising. That some of the difficulties met in organization and mu- nicipal publicity differing from those of commercial advertis- ing are: 1st — The publicity manager of a commercial organization being re- sponsible to a larger number of individuals than in the case of the business corporation is frequently badly hampered in carrying out in full his plans along proper lines. 2d — That frequently not having, or appearing to have perhaps, tangible products or things for sale, it is more difficult to demonstrate actual results. 3d — The frequent changing of personnel of governing boards and com- mittees resulting in changing of ideas, often prevent the full carrying out of campaign and render abortive what otherwise might have splendidly suc- ceeded. These are difficulties which the publicity manager and his committee must succeed in overcoming. Some of the points of similarity in advertising a commer- cial organization or a city and advertising a commercial product are: First: The absolute necessity of thoroughly developing a complete plan based upon a thorough analysis of the whole situation and including not only the first steps leading up to the campaign and the campaign itself, but full provisions for adequate follow-up to take full advantage of results. A commercial advertiser, before spending any money, must analyze his product, his competition, his distribution, his mar- ket, and the various methods for bringing product and market together. In a similar way a city, before advertising, should first thoroughly analyze itself, study its strength and its weak- ness, its competition in different directions, its market, its facili- ties for bringing its market in closer touch, such as transporta- ADVERTISING BY COMMERCIAL ORGANIZATIONS. 141 tiou facilities, etc., and the best method for producing the best results. Second : That the nearer the commercial organization can come to offering a definite thing to sell, the more certain will an advertising campaign succeed. If a city has a good definite real estate proposition, if it offers definite opportunities for new settlers and the investment of new capital, definite ad- vantages for the location of particular classes of industries, recreation and tourist advantages, a definite market situation differing from its competitors, it can hope for success in a pub- licity campaign. If you study the campaigns Avhich have suc- ceeded you will find they involve some definite proposition which, after all, is only a logical business proposition. Third : That cities Avhich take up successfully the question of publicity, must first make sure they are themselves "right" when subjected to the acid test. If not, they must make them- selves right, and the first step is to arouse the citizenship gen- erally to a greater knowledge of the city's advantages and re- sources and greater enthusiasm for its development. This has been the basis of "Know your city" campaigns and industrial surveys. If the people of a city can be aroused to the necessity of doing things for themselves, they can often bring more prestige and publicity to the community than all the advertising experts and committees in the country can produce. A notable instance is Cleveland. It spends no money in the national organizations on trade papers, apparently sends out little publicity matter, does little along convention lines, yet no city has received more favorable publicity within the past few years. Active Cleve- landers have done it. In this feature of the work the progressive chamber of commerce can capitalize this sentiment to "sell" its member- ships and increase its revenue for work, and, therefore, this whole question of advertising the association is only another phase of the question of membership and revenue, without which no organization can live. Here is where the commercial or- ganization has a definite proposition it can hook up with ac- cepted advertising principles. In its local work, the commercial organization finds its best publicity medium in its daily newspapers, as evidenced so generously in the facts brought out by this survey, showing that 142 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. commercial organizations in the United States receive publicity which would cost at reading matter rates over five million dol- lars a year. The commercial organization will find paid space in these papers profitable if it has some definite project to put across, or to retain and increase its support. In municipal advertising, the viewpoint is veering away from the procuring of miscellaneous free publicity, and while cities will and should continue to get all the free publicity they can, they will come more and more to consider buying what they want from the mediums experience has shown most capable of results. In municipal publicity, just as in commercial advertising, great value can be created for an attractive and logical slogun or design, corresponding to the commercial trademark, by using same throughout all kinds of publicity, and hammering it home persistently until it comes to stand in the public mind for that city. If a city has made itself "right;" if it has an enthusiastic citizenship in touch with its aspirations and organized to fur- ther its plans ; if it has a definite publicity plan and proposition (a good slogan or trade mark Avill tell the truth and keep on telling it in season and out of season) it will deliver. the goods whenever called upon, and will follow up its prospects it will Avin through publicity. CHAPTER IX. Trade Extension Tours The Mission of Trade Extension Journeys By WILLIAM GEORGE BRUCE It ma}' not be amiss to discuss the purposes of annual trade extension journeys, conducted under the auspices of com- mercial organizations, describe the attitude of the visiting job- ber and manufacturer towards the inland retailer, and point out the benefits to be derived by all the factors involved. The larger and average sized commercial centers of vari- ous sections of the country have in recent years engaged to a considerable extent in socalled trade excursions or merchants' trips. Their value, or at least their popularity, is established. But, it may also be well to analyze more closely just wherein and to what extent the trade extension journeys are beneficial to the business houses that engage in them and to the city that promotes them. The benefits or advantages derived from them may be summarized as follows : — First : They promote the spirit of friendship among those who participate in trade extension journe3^s. Business men are afforded an opportunity to become more intimately acquainted with their competitors, learn to appreciate one another as man against man, with the tendency to substitute wholesome compe- tition for unfriendly rivalry. Second : The members or managers of a business firm who participate in such trips have an opportunity : (a) To meet their customers in person which is usually appreciated and which tends to strengthen the business rela- tions existing between the firms and their customers. (b) These trips are apt to prompt immediate orders or pave the way for future orders. Frequently a sufficient num- ber of orders are secured by business men, the profits upon which cover the cost of several trips. (c) The visiting merchant is afforded an opportunity to see his customer in his home environments and under condi- tions which furnish an answer to the questions: "Is this a careful business man? Has he a good store, centrally located? Does he keep his stock in good condition?" In the adjustment 143 144 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. of credits it is important to know something about his custom- er's methods of doing business and the reputation he has at home. Third: Affording an opportunity to those who have no trade in the region visited to study its business possibilities. It has frequently developed that business houses have found it to their advantage to place salesmen in a field after visiting the same that had before such visit seemed unpromising. Thus, many new trade accounts have followed as the result of these trade extension journeys. Fourth: A distinctive gain is made for the city that en- gages in these trips. If the firms and individuals engaging in them did not derive an immediate benefit, there is still an ad- vertising value which goes to the city. It adds a prestige to such city which could be gained in no other way. From the Standpoint of the Cities Visited Experience has taught that the expressions of good will and friendship showered upon trade emissaries of this character along the routes traveled are usually of the most sincere and cordial character. The personal expressions as Well as the numerous speeches made, taken in their entirety, reveal the elements of genuine hospitality, geniality and goodfellowship. While the attitude of the smaller centers of population is not entirely selfisli in character there is usually a reciprocal spirit which forms an important stimulus towards strengthened busi- ness relations. The basis for the friendly attitude on the part of the small- er town is usually found in the following: First: A local pride in the thought that an important trade extension train honors the town with a visit. Such events are comparatively rare. Second: A satisfaction in being afforded an opportunity to point to the home town's achievements and possessions. Whether the local commercial, industrial or institutional in- terests are large or small, the resident citizen is always proud to dwell upon them. Third : The authorities usually recognize the fact that hos- pitality is a virtue which applies to communities as well as to individuals, and that hospitality manifested on occasions of this kind denotes also the enterprise and public spirit of a people. THE MISSION OF TRADE EXTENSION JOURNEYS. 145 Fourth: That trade relations between the larger and smaller cities ar^ reciprocal; that the products of the farm which maintain the small city must find their ultimate outlet for consumption in the larger centers of population; that the manufactured article of the large city is, in turn, essential to the life, activities and comforts of the farm and the small city. Attitude of the Visiting Merchants The responses usually made by the executive officers and members of the trade extension journey may be summed up in the f ollow ing thoughts and expressions : First: That commerce knows no limitations; that state lines are created for purposes of government only; that an interstate commerce is consistent with the American idea and conducive to the welfare and prosperity of the whole country ; that we are one people, under one flag, w^ith one and the same destiny. Second : That the progressive merchant of the large city believes in the integrity, mission and purposes of the smaller units of population; that the smallest villages alike with the great metropolis performs a function in the economic, civic, educational and moral Avelfare of the nation. Third : That the price list, quality of goods, taste and' personal contact and the element of friendship cannot be ig- nored or overlooked. Fourth : That honesty and integrity are a permanent and self-accruing asset in business and that the merchants come with honorable motives, with clean hands and clean intentions. Fifth : That the commercial and industrial center means to compete aggressively with other markets; to apply enter- prise, energy and industry in developing its possibilities. Sixth : To tell the world what their city is, what it has, and what it stands for ; to tell of its natural advantages, its geographical location; its commercial and industrial achieve- ments, its hopes, its aspirations and its future. Administration and Management The trade extension journeys heretofore undertaken have been uniformly successful in the ends and purposes which they have aimed to serve, namely to promote and strengthen the business relations between a given commercial center and the outside world. They have also been conducted upon a self-sus- 14G EFFICIENCY AND CHARACTERISTIC ACTIVITIES. taining basis. The expense has been almost wholly borne by those who have participated in them. In order, however, that the greatest degree of service be attained in point of participation, in the selection of an itin- erary, in securing a reasonable rate of per capita cost, in secu- ring an efficient train service, in prompting a cordial reception and in attaining favorable publicity in the towns to be visited, the merchants' trips have been planned with discriminate care months in advance and with a supervisory care on the part of committees, executive officers and board of directors. More especially must this be done if the trips are to be made self- sustaining in point of cost and effective in desired results. The committees entrusted with the immediate and detail arrangements are apt to become engrossed in certain phases of the trip and lose sight of the larger problems involved and the ultimate outcome of the financial end of the project. Here action, Avhich shall be timely enough so as to make the veto power of the board effective and practical both as to the itiner- ary and the cost involved, is recommended. The following suggestions are usually observed : First: That all trips are planned with a view of making them self-sustaining in point of cost. Second : That the committee plan its itinerary during the month of January of each year for the trade excursion to be undertaken during the month of June following, and that a list of probable participants be prepared and acceptances be secured as early as possible. Third : That the committee present to the board of direc- tors a report on the next merchants' trip, the itinerary and date for same, the number of prospective participants, the arran Ele- ments for transportation, specifying cost for mileage, meals and sleeping car service, accompanied by estimates as to the total receipts and expenditures involved. Trade Extension Through Excursions By WALTER S. WRITTEN In the serious business of city, state and empire building, the trade excursion or trade trip is as new as it has proved important. It is to the city what the drummer is to the indi- vidual jobber. In short, the trade trip is the city's drummer. SHORT TRIPS FROM A JOBBING CENTER. 147 Yet, the city's drumuier differs from the jobber's drummer in one respect — while the latter takes orders, the former only an- ticipates them. It should not be the aim of the excursionists to write orders. On the other hand, they should avoid it entirely. The business of the excursion is larger. It is, first of all, to plant the seed; the harvest, as in the course of Nature, should come later. If an attempt to take orders is made, it leaves a lasting impression in the mind of the otlier fellow that you were ^^after something." Such an impression Avould be fatal to the object of the excursion. It should scatter broadcast the idea of reci- procity between merchant and merchant. In other words, we^ a city, have something to olTer you, namely, unexcelled trans- portation facilities, a market of wider scope, this or that which you cannot get elsewhere. You gain a psychological vantage point when the fact of your offering is emphasized. Leave as much as possible behind to serve as a reminder of the fact that you have been there. This includes trinkets for the school children and high class advertising, such as a tastily gotten up pamphlet containing views of the city and descriptions of its places of interest — in short, an advertisement with the advertising idea not too obtrusive. Such literature will probably adorn a desk or a counter for months, and, before it reaches the w^aste basket, be picked up and read by hundreds. And, of course, there is alw^ays the advertising of the individual firms. Short Trips From a Jobbing Center By E. H. CLIFFORD In most cities which maintain a commercial organization, one of the important functions of that organization is to ar- range trade extension trips which afford the members an op- portunity to repay to the towns in their trade territory the visits made by the merchants and citizens of the town. It is also a method by which they extend their trade relations and in various cities different plans have been evolved to attain this end. It is generally conceded that trips of this kind are worth w^hile — that the item of expense is a legitimate charge to adver- 148 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. tising, and the members of commercial organizations take great interest in them and usually cooperate in suggesting the places to visit. They promote a feeling of good fellowship and many acquaintances are formed that are lasting and agreeable. Towns visited always plan some kind of a reception, gov- erned by the length of the stay with them, so the members mak- ing the trip return home, in most instances, satisfied that it has been worth the time, trouble and expense involved. Long Journeys Pittsburgh in 1912 visited a great number of cities in the Middle West and created quite an amount of interest by their special train which contained models and exhibits of their various manufactories. They had quite an attractive train and a large party. A few ladies were in this party, which is a new departure in trade trips as usually only men take part in them. In the cities of the Middle West, up to this time, nothing so elaborate has been tried, as the length of time consumed on the trips is usually one week. The Alaska Bureau of the Seattle Chamber of Commerce made an 8,000 mile tour through Alaska and the Yukon, which is considered to be the longest tour of Alaska. Some Great Lakes cities have used lake steamers and call their trips "cruises." Several cities have tried automobiles. The plan is usually governed by local conditions, but the details are nearly always the same, as the object is to satisfy the travelling party and make things as pleasant as possible for them during the trip, and to create a favorable impression in the cities visited Music is always one of the first things taken into considera- tion, as it is generally admitted that a good band is one thinjr that will liven up the members of the party and also attra(»1 attention in the towns visited. Other means of entertainment are usually provided, most parties having among their mem- bers a few who will make up quartets and double quartets. Souvenirs are expected, and it is customary for the members making these trips to provide themselves with something that will be retained by the people in the towns visited. This, of course, is a detail, and is Avorked out by parties making the trip. Badges are worn by members. Some sort of a uniform or cap is sometimes suggested. SHORT TRIPS FROM A JOBBING CENTER. 149 One-Day Outings Most of the commercial organizations plan trips of a week's duration, traveling many miles irom their home city, and to a different territory each year, having on their train a diner and sleeping cars. In St. Joseph we followed this plan for a number of years, but for the last two years our members wishing us to offer them something of a different nature, we have adopted the idea of a one-day trip — leaving St. Joseph in the early morning, making our destination some point about one hundred miles from home, returning the same night, taking dinner and supper at towns en route. This plan has met with such universal favor with our members that we are of the opin- ion it will be quite a long while before they will call upon us to arrange for the week trips for them, as we have found that it is much easier for our members to lay aside their business for one day — five or six times a year — than for them to plan for a week's absence. It also enables a larger percentage of our members to make the trip, as the cost is nominal, as for the five trips which were planned last year, any one of our members who made all of them, was only called upon to spend $32.50. We have discarded the diner and commissary car from our trains, as our plan for taking care of the meals en route is for us to suggest to the ladies of some church in the town where we wish to take dinner or supper, that they serve us, we guaranteeing them that we will pay for not less than 150 meals, at an average price of 50c each, and for w^hatever num- ber there are above our guarantee. Our experience has been that this plan is satisfactory to both the ladies of the church and to our members and we have been fortunate in having some very fine meals served to us under this plan. We much prefer this, to going to a hotel for the service is much quicker, and as most of the supplies and labor are donated by the ladies of the church serving the meal, it leaves with their church treasury a nice sum, and also affords our members making the trip an opportunity of meeting with some of the best people in the town we visit. We plan our trips to make our last stop in the evening about 5 :30, trying to arrange it so that this visit will be at the largest, or one of the largest, towns in the territory, spending about two hours there, and we are usually entertained by the local commercial club. It takes us about three hours to get 150 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. back home, as we plan no stops on the return trip, this part of the trip being devoted to the social entertainment of the mem- bers of our party, and with this in view we call our trips ''Get Acquainted Trips," as we find that a great number of our mem- bers wish to meet with one another and this affords them that opportunity. We do not carry a commissary car on the going trip, as we have found this to be an objectionable feature to a great many of the toAvns visited, and it is also objected to by quite a few of our members. Whatever liquid refreshments are desired are sent to the end of the line, and upon the return trip — as there is only our own party in the train — those of our members who wish it are then served. We have found this a very satisfactory way of handling a very difficult proposition. We do not limit the members of our party to any individual line of business, believing that a trip given by our club should be open to any of our members in good standing, and although at first there Avas some criticism at bringing the jobber and re- tailer together in visiting the different towns, this has been overcome, as there are so many in the party that the business identity of the member making the trip is lost sight of. Trade Extension Trips — -Methods and Results By LEROY M. GIBBS While trips of this character are more or less common to all sections of the country, the development of the United States from the East to the West has resulted in the eastern section becoming primarily a manufacturing section, selling its product largely through the jobber. The central and western sections, with less manufacturing, w^ith great distributing houses wholesaling the products of many milJs and factories throughout a vast territory given over in the main to agricul- ture, mining and forest products, with fewer cities, are con- cerned with selling goods to the small town retailer. Owing to the fact that in the eastern states, cities and towns of con- siderable trade importance are located in close proximity to each other, the trade territory or sphere of influence covers a comparatively small area ; that is, while in a given area might be located a great city enjoying a nation-wide trade, there TRADE EXTENSION TRIPS— METHODS AND RESULTS. 151 would be perhaps half a dozen cities within a radius of one hundred or two hundred miles enjoying a considerable jobbing business. In the central and western states with their vast areas and the greater distance between cities there are many points which become, through various forces, distributing cen- ters for great stretches of country, these centers, in most cases, being situated at such distances from each other as to necessi- tate an over-night journey. One secretary has said that the average trade territory is in the form of an ellipse, with the interested city located in the eastern end of the ellipse. This is, of course, particularly true of the jobbing territor}^ of the western city and is the direct result of the adjustment of freight rates. Perhaps this applies more to cities situated west of Mississippi River valley points which meet rates based on water transportation. It is self-evident that favorable inbound freight rates are of the greatest importance to a city as a jobbing center. Equal- ly important are the outbound rates enabling the city to meet competition. Freight service, so arranged as to provide prompt delivery of goods, satisfactory prices and a friendly interest and acquaintance with the merchant and the territory served, is an important factor in building up trade. The Importance of Trade Trips Such information as I have been able to gather indicates that there are 75 cities carrying on annual trade trips, going out for a week and covering anywhere from 1,000 to 2,000 miles, while there are a still greater number of smaller towns with restricted territory going out by automobile for one or two-day trips. In general, a trade extension trip has as its object, not only the increase of trade tluit may result to the individual jobber or manufacturer through meeting his customers and possible buyers, but the strengthening of the city as the logical center of that section — not only as a trading point, but the com mercial, social and educational center — in short, the "big town" to its constituency. Four General Methods There are perhaps four general methods of trade extension trips : 152 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Those by train and ordinarily covering a five or six-day or possibly a two-week period, in a more or less extended trade territory. By automobile and usually of not more than one or two days' duration, covering nearby towns. Trolley trips ordinarily limited to one day. Trips taken by a few great cities w4th enormous manu- facturing interests and in which only the larger towns or cities are visited, what we may term, a major geographical section. Some of the Great Lakes cities and some coast cities make trips by boat, but these for the most part are more in the nature of pleasure excursions, but none the less valuable. The Objects of the Trips AVhile some hold that, trade being the major purpose of the institution, the advantages of the home city should be dwelt on at all times. The preponderance of opinion seems to be in favor of establishing friendly relations and that trade will follow as a matter of course. Only in a comparatively few cases is an effort made to solicit, and some organizations absolutely prohibit the carr3dng of order books. The tendency seems to be, however, to leave this to the judgment of the individual with few efforts being made to actually take orders on such a trip. A feature that appeals to me, as of considerable value and yet adopted apparently by few cities, is that of sending an ad- vance man over the territory to be visited. This man calls upon the representatives of the commercial organization or the town officials, arranges any program that is to be carried out, and other details. He also sees the leading merchants, and, while advising them of the contemplated visit, gets their viewpoint, learns where they buy the greater part of their goods, why a competing city may be favored, what deliveries are made from his city, and of any misunderstandings that may exist. Upon his return he makes a report w^hich is published and a copy furnished each member of the party for use during the coming trip. Many business men have come to realize that the thing of greatest importance is the economic development of the country, and as a result have carried out through trips of this nature TRADE EXTENSION TRIPS—METHODS AND RESULTS. 153 campaigns of education, preaching in regions subject to drouth where corn is a" precarious crop, the growing of kaftir, milo maize and sorghums, which are better adapted to such condi- tions; in a one-crop section, diversified farming; in a stock-rais- ing country, the breeding of better stock; in a fruit section, better grading, packing and marketing, such subjects always being handled by experts carried for the purpose. I have in mind a case where through such propaganda, carried out over a period of yeai*s in a trade territory, hundreds of cars of peanuts are now being raised where previously they were an unknown crop. Methods for Conducting Trips by Train Some organizations seem to favor the appointment of a considerable number of committees to handle the various de- tails, but I am inclined to favor one strong committee which handles the entire matter. The question of first importance is the arrangement of the itinerary, that the train may move on schedule, that there may be time enough in the principal trade centers and not too much at the less important stops- There is a growing sentiment, however, against merely rushing into a town and out again, leaving in the minds of the men vis- ited only a confused idea as to the identity of the visitors. It is necessary that the schedule be lived up to, and that the night stop be reached not later than five or five-thirty. The best prac- tice seems to be to delegate some one man as train master, whose duty it is to handle the train. It is important that advance information be given in towns ^ to be visited through the commercial organization or some official and to the local newspapers, advising the date of the visit and the hour of arrival and departure, the information given the newspapers being in nature of a write-up, which naturally lends itself to local treatment. It is also good practice for the member making the trip to write his trade of the intended call. The number of men carried on such trips seems to run from seventy-five to one hundred and fifty, and too much em phasis cannot be laid on the necessity of a house being repre- sented by the principal or an official of the firm. The local merchant sees traveling salesmen frequently but feels honored by a visit from "the big boss." 354 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. There is some question as to the advisability of inviting re- tailers to join the party, and some cities do not permit this practice. In case the retailer is carried, it would seem wise that he give out no advertising matter or do anything to cause conflict with the small town retailer, who is naturally jealous otf his trade territory and regards the city retailer, with his big advertising, as his strongest competitor. Equipment carried is, of course, dependent on the number of men making the trip, as in almost every case the excursion- ists live on the train. The average equipment consists of two baggage cars, one being used as a lunch and soft drink estab- lishment, two diners, three or four Pullmans, one or tAvo tour- ist sleepers, and a combination library, buffet, or observation car. The cost, including transportation, meals and tips, aver- ages approximately f 100 for each member for a five or six-day trip. The men making the trip may be divided into two classes : Those who retire early with the desire for sleep, and the owl squad who never sleep. The secretary who knows his men can easily arrange matters so that these men occupy different cars, much to the satisfaction of those who wish rest. Almost invariably a good band is carried and appreciated in the small towns where they seldom have the opportunity of hearing the better band music. Short talks are usually made in the towns where the time will warrant, with more elaborate programs in the evenings, the evening program in most cases consisting of an informal reception or smoker. One city adopted a pleasing form of eve- ning entertainment by giving a band concert in conjunction with motion pictures thrown on a screen stretched against a building. Care should be taken, however, in the selection of speakers, each speaker understanding what subject or subjects he is expected to cover and the time that he is to talk, otherwise there is the danger of a program becoming long drawn out and tiresome. In speaking in the open air it is much easier for the speak- ers if the crowd be so grouped as to allow the speaker to face the wall of a building unobstructed by awnings. Trying to speak from a corner with a crowd all about is an almost im- possible situation for a speaker; it breaks his voice and few can hear, resulting in inattention and disorder. TRADE EXTENSION TRIPS— METHODS AND RESULTS. 155 Some favor the carnival spirit and seem to believe that this breaks down formality and is appreciated in the small town. I am very much in favor of the dignified educational trip and think it has a much better and lasting effect. I do not mean to imply that I am opposed to fun, but any- thing of this nature should be incidental and not the major part of the program. In almost every case the trade trippers are supplied with uniform hats, caps or dusters, buttons or ribbons showing tht, name of the man and the firm represented, and march to the center of the town visited, led by the band. Souvenirs are carried on all such occasions, but usually by the individual firms, although some organizations give out well-printed advertising matter of their city, order books or other matter. In working up an itinerary it is well to include even the "tank towns,-' although the visit be short, for often these towns take themselves seriously and resent any apparent slight. The Conduct of Automobile Trips The advent of the automobile has served to greatly increase the retail territory of the larger cities and towns, in many cases shoppers driving twenty-five, fifty or even one hundred miles to trade, the territory, of course, being affected materially by the class of roads leading to the city and the location of com- peting centers. In this connection too much stress cannot be laid upon the necessity of good roads. The automobile trip is popular in many towns and cities, and is particularly well adapted to trips where the number participating does not warrant the running of a special train and for comparatively short trips into immediate trade terri- toTj. It permits of much greater flexibility and does not call for the outlay required by the more pretentious train trips. As a rule it is more local in character and in its make-up generally includes men representing both wholesale and retail establishments. Frequently such excursions are almost wholly community boosting trips — get-together, get-acquainted propo- sitions, and are, no doubt, of value both from the standpoint of a knowledge of the immediate surrounding country, crop conditions and trade. The better organized trips have a definite schedule and 156 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. program such as the more ambitious train trips, the benefits in territory covered being comparable to the extended excur- sions. A danger to be guarded against in the automobile trip is that of its degenerating into a road race and consequent for- getfulness of the real object of the trip. When this occurs it is likely to do more harm than good. Benefits to be Derived Benefits derived from trade extension trips may be classi- fied into four general heads : To the individual making the trip. To the merchant visited. To the section visited. To the market. The individual benefits are almost as varied and as nu- merous as the men making up the party. The credit informa- tion obtained by seeing a stock of goods and the merchant's way of looking after business in many cases is worth more than the cost of the entire trip. He sees the manner in which goods are kept — neatly displayed or merely thrown on the shelves. In fact, dozens of little things which indicate the stability of the business and which do not find their way into commercial reports. Then there is the opportunity of straightening out the little difficulties and misunderstandings that sometimes arise and that cannot be adjusted through the salesmen, but are easily solved when the principals get together. The jobber or manufacturer can determine if he is getting the amount of business he should get on the territory, and has the chance to judge if he has the real live account in the town or is tied up with the less desirable merchant. He is enabled to study at first hand the needs of his trade and to determine whether he is giving the sort of service his customers have a right to expect. Incidentally it gives him a check on his sales force in the territory. One jobber told me of a case where one of his travel- ing salesmen had charged regularly in his expense account for a drive to reach a certain town. What was his surprise in chatting with the customer to find that his representative had TRADE EXTENSION TRIPS— METHODS AND RESULTS. 157 not visited the merchant in two years, but had called him on the telephone. Freight deliveries are worthy of study on such trips, and often information gained has resulted in the working out of more advantageous schedules with resultant increased trade. The educational value is a very real one. No wide awake business man can make such a trip without gaining a much more comprehensive idea of the country which he serves, its resources, and its possibilities for development. The acquaintance betw^een jobber and merchant makes for a better understanding, a better spirit, and closer cooperation ; for business in the main is done on quality, price, preference and confidence; but these being equal, good will is often the deciding factor. There is undoubtedly a selling value to the individual busi- ness man Avho does business in a town that is known to be very much alive and hustling for business, as well as giving a good impression of progressiveness. The follow-up, and here is a problem many a business man has pondered over! The trade trip follow-up is worthy of thought. It is not new^ for the business man to sit down after a trip and Avrite the men he has seen. It is hard work when the desk is piled high after a week's absence. But it pays. But pays only when the follow-up is made with the right sort of letter. The ordinary stereotyped sort won't do. As well give the girl stenographer a copy of the catalog for reading at the seashore. It should be a good, red-blooded letter, with a punch, a personality, a message from the man w^ho takes his pen in hand and affixes his signature at the end. Then again, a piece of printed matter is sent out by the organization expressing appreciation — an invitation to visit the city and become better acquainted. More likely than not this carries a list of the men who made the trip. Properly pre- pared, such matter should be worth while. The suggestion has been made that a trade trip might prove of value to the merchant if a retail efficiency expert w ere car- ried to aid the small town merchant. It is my judgment that such a man could do little in a town in the time at his command and that this matter can be much better handled through a merchants' week or short cpurse wdth w hich many of you are familiar. 158 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Sometimes we unconsciously overlook the human equation ; we forget the human element in business. We forget the value of the personal touch. 1 believe you will all agree, however, that you have a different feeling in w^riting a man you know and can visualize as you write and put more of yourself into the com- munication. The same is true in the ordinary commercial transaction. The merchant feels the human element in writ- ing the jobber or manufacturer whom he has seen ; he is a flesh- and-blood reality to him rather than a vague abstraction, and the distributor or manufacturer writes with a different spirit when he sees in his mind's eye the customer he is literally talk- ing to and knows his surroundings. Some Results from Trade Tours There is a very real value to the merchant visited. It is his opportunity to show^ the jobber or manufacturer that he is worthy and entitled to a line of credit. He has the advantage of being "at home ;'' he can point out his favorable location, his well displayed stock of goods, and his efficient store service. He can call attention to the prosperity of his section of the country, the big barns, the fine herds of cattle and the crop possibilities. The worth of such a call to the town visited may be a very genuine one. It is a big possibility for advertising and the wide awake town takes advantage of it. The men making the trip are usually trained observers. They are quick to see busi- ness opportunities, the resources of a town and where there may be an opening. Many times this results to the advantage of that section. The big business man knows someone who is seeking a location and sends him there. It helps in municipal improvements — the town wants to sell bonds and there are men in the party who can handle the proposition. Better mail serv- ice, better freight deliveries, a re-arrangement of the passenger schedule, a hundred and one things the small town Avants come to the attention of men w^ho can and are willing to help. While it may be difficult in some cases to trace direct benefits, such trips are unquestionably of great value to a mar- ket, and there is no doubt that many cities have developed a strength that would have been impossible except through such methods. Cities, like individuals, are frequently misunderstood; TRADE EXTENSION TRIPS— METHODS AND RESULTS. 159 especially is this true of the big city in a given territory. The trade trip is often the medium for removing misconception, eliminating suspicion, and clearing the way for mutual under- standing. A publicity value also attaches to such an undertaking, as it is usually given much favorable comment by the press throughout the entire trade territory. The home influence is invaluable, for one of the greatest benefits of such a trip, if not the greatest, is the opportunity given a man of getting acquainted with the business men of his home city. Rubbing elbows, thrown together for a week with men they have merely had a speaking acquaintance with in the past, has a beneficial effect. Men in knowing each other lose suspicion and learn cooperation. They cease to be violenth^ competitive and begin to sense the value of working together. They do not fight among themselves but unite to meet the needs of their trade territory through better service. They go back to their desks ready to help each other, with a broader vision, a kindlier feeling, a better spirit, and with more charity toward both customer and competitor. CHAPTER X. Charity Endorsements Charity Endorsements and the Prevention of Fraudulent Solicitation By HOWARD STRONG A generation ago the average commercial organization would have considered ridiculous the proposal that it assume the endorsement and supervision of the charitable organizations and activities of its community. Each one of you accepts the new conception of the com- mercial organization as a body which includes every civic, social and commercial activity making for the common welfare. Such an organization recognizes the propriety of the demand of busi- ness men for protection against frauds of various kinds, and assurance of economy and efficiency in the charitable and phil- anthropic agencies which call upon them for support. The assumption of this supervisory function by a commu- nity organization is based upon the fundamental principle that the charity which receives its support from the public, is in a sense, a public institution, and that the public has a right and a responsibility, therefore, to know its methods and to demand its conformity with an accepted standard. Asa result, the com- mercial body or some other representative agency, in most of our large communities, has assumed the responsibility of repre- senting the contributors, in supervising the collection and ex- penditure of funds for public charity and relief. In many instances this has been only the first step in the process and there have been taken on additional functions which I shall endeavor to discuss. It is unnecessary to convince you of the i)ropriety of cre- ating an endorsement committee, or in detail to discuss the advantages resulting from its activities. A questionaire mak- ing detailed inquirj^ as to the existence of such a body was sent to sixty-six cities. Replies were received from fifty-seven, and out of these forty-five have already undertaken a plan of en- dorsement, and five are planning to do so, leaving only seven of 160 CHARITY ENDORSEMENTS AND FRAUDULENT SOLICITATION. IGl the number replying, who are not definitely undertaking it. I assume that you are all in sympathy with the general purpose of the plan, and with its accomplishments. I take it that you will prefer a discussion of technique, methods which have been found successful, and the results which have been attained through these various methods. Answering Essential Questions Let me approach the question from live points of view. First — By what organization should charity supervision be undertaken? Second — What activities should, be included in this super- vision? Third — What should be the specific relationship between the supervising body and the charities under its jurisdiction? Fourth — By what method should the conclusions of the supervising body be brought to the attention of the contributing public ? Fifth — What should be the relationship between the en- dorsing body and similar bodies in other communities? First: — What organization should assume the responsibil- ity of charity supervision? The early tendency was toward the performance of this function hv the central charity organiza- tion of the city. It has been argued that such a society has a better understanding of the work of various charitable organi- zations than any other group can have ; that it is in closer touch with their problems, and that it can in a greater degree com- mand the services and judgment of those familiar with char- itable activities. It has been almost universally found, how- ever, that charitable organizations themselves resent the as- sumption of a supervisory attitude on the part of one of their own number. The right of this organization to set itself up as a mentor over other similar organizations is questioned, and the judgment of those representing this body is in danger of being affected by their peculiar and special interest in certain phases of the charity problem. Further, because of an entirely unwarranted, though preva- lent suspicion on the part of business men, that people active- ly identified w^ith charity organizations are theoretical rather than practical, the decisions of the body representing the charity organization are not infrequently discounted. At present, only 162 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. four of those replying to the questionaire conduct bureaus in this manner, clearly indicating a tendency away from this plan. A modification of this method is found in the creation of a joint committee, representing both charity organization, soci- ety and commercial body. Tliis combination gives added weight, in the minds of the contributing public, to decisions of this committee, but fails to eliminate the suspicion and distrust engendered on the part of the organizations coming under supervision. Only four cities conduct the bureau according to this plan. Some years ago the endorsement body, as a money-making proposition, was popular. This was conducted purely for per- sonal gain and was subject to such abuse that it has practically disappeared. Task for Commercial Bodies The plan under which the commercial organization itself assumes the entire responsibility of supervision is gaining in favor. The committee representing the commercial body is usually made up of men of high business standing who are thoroughly conversant, and usually connected, with the activi- ties of various charitable organizations. Their experience in administering successfully the affairs of these philanthropic activities insures the soundness of their judgment in such matters ; their breadth and recognized standing in the commu- nity commands the respect alike of charity organizations and the contributing public; while their right to refuse approval of unworthy methods and to demand efficiency, because they represent the contributors of the community, is freely recog- nized by almost every agency subject to supervision. I think this will soon be the universally accepted plan. Second : — What activities shall be included under the direct supervision of the commercial organization? Some supervis- ing agencies confine themselves to a consideration merely, of solicitations for local permanent charitable organizations, but no such agency, if it is alive to its responsibility, can stop with a consideration of these demands upon the community. There are myriads of soliciting schemes which are presented for the consideration and support of the giving public — religious and labor organizations doing some charitable work, temporary appeals for specific purposes, appeals for individual relief, for philanthropic purposes in other cities, and for national move- CHARITY ENDORSEMENTS AND FRAUDULENT SOLICITATION. 163 ments of various sorts, requests for advertising for semi-philan- thropic purposes as well as straight commercial advertising which promise returns for value received, and, of course, the ever present opportunity for every conceivable character of business investment. I believe that the commercial organiza- tion can well assume a direct supervision over most of these types of solicitation. I see no reason why every one should not be included if the organization has the means to undertake the responsibility and the influence to make its decisions effective. The average business man has little opportunity to study the genuineness of the many appeals which come to him each day. He is anxious to support those things which make for the up- building of his city, or which mean a legitimate profit for him- self. But he does not want to be bunkoed. His organization, which exists for the good of his community, can well undertake the function of protecting him against useless or worse than useless appeals and recommending to him those which it believes are for the common welfare. If the commercial organization is so disposed, it may even employ experts who are competent to investigate the commer- cial feasibility of various advertising plans which are presented and the soundness of proposed business investments. One state- wide commercial organization has definitely undertaken this re- sponsibility. It has organized an investors' league as one of its departments, which will endeavor to ferret out dishonest promoters and wildcat investments, and to inform its members as to their true nature. It will endeavor also to promote and educate a public confidence in legitimate investment. The com- mercial organization which can perform all of these functions successfully will unquestionably render a great service to its members and to the community. A Constructive Supervision Third: — Perhaps the most important phase of the whole problem is the degree of supervision which the endorsing body shall exercise. Some supervisory bodies act merely as rating agencies. The simplest and least effective, but apparently the commonest method, unfortunately, is^analogous to the function performed by Dun's or Bradstreet's agency. The endorsing committee investigates the various applications for approval which come 164 EFFICIENCY AND CHARACTERISTIC ACTIVITIEiS. before it. Those Avhich are worthy and legitimate are given some form of endorsement or favorable report. The unworthy applications are refused and the matter ends there. The or- ganization Avhich performs no other function than this, however, is making little contribution to the constructive philanthropy of its town. It usually does not have the cooperation of the charitable organizations of the city, and more often than not finds itself without influence and its decisions little regarded. The endorsing body which would be really effective must assume a definitely constructive and supervisory capacity. Such an organization gains the confidence and cooperation of efficient charitable organizations by cooperating with them in the standardization of their methods, in suggesting improve- ments and in assisting them to bring their needs before the public in the most favorable manner, and further by taking action against unworthy organizations which are diverting funds from their support. The endorsing body confers with organizations which are endeavoring to fill a real need, but which are ineffective or extravagant, and it becomes eventually the controlling influence in making these organizations serve fully the purpose for which they exist. This committee sys- tematically studies the whole charitable field, it eliminates duplication and useless effort, it secures cooperation among organizations performing similar functions, it assists in creat- ing new" agencies to meet needs not already cared for. If its work is done wisely and without prejudice it becomes the princi- pal factor in the elimination of destructive charity and in the development of a truly scientific and independence-producing philanthropy. It goes further than this — it concerns itself more or less directly with every unsocial condition in the community. It has a part in the removal of these conditions, thus helping to eliminate the necessity for the curative charitable agencies which must now be supported by the public. Housing, public health, recreation and a score of other activities become its vital interests, either through its own activities or through its cooperation with bodies which are dealing with these problems. The supervising agency thus becomes the sponsor for all of the constructive philanthropic and charitable activity of the community. In some cities where the program has been worked out most successfully, the committee holds itself, and CHARITY ENrX)RSEMENTS AND FRAUDULENT SCLICITATION. 165 expects the> community to hold it, directly responsible for the efficiency and economy of the various social agencies coming under its supervision. No such committee can assume this degree of responsibility without the employment of a staff of trained charity experts, for intelligent supervision of this char- acter requires intimate understanding of the actual problems and management of charitable organizations. The commercial body which assumes this responsibility and discharges it con- scientiously becomes a mighty force in the civic and social up- building of its town. Methods of Endorsement Fourth : — The method by which the conclusions of the en- dorsing body are brought to the attention of the public is im- portant. In some instances, the endorsing body gives no formal certification for any kind of solicitation. It informs itself as to the worthiness of various appeals, and any contributor who wishes to learn Avith reference to an appeal must call upon or write to the endorsing body for information. In other instances lists of approved institutions are pub- lished by the endorsing body from time to time, and distributed to its members, and, in some cases, to the general public. Sometimes a formal letter or certificate of approval, usual- ly covering a limited period, is issued to every sort of an agency making a legitimate appeal, while in other cases such endorse- ment is issued only to local worthy permanent charitable or- ganizations, and a verbal or written report is made upon re- quest for all other appeals. The plan by which a report upon request is given without formal endorsement is, I think experi- ence has shown, comparatively ineffective. This plan provide^^i no direct means for bringing to the constant attention of the contributor the fact that there is an organization which is ready to serve him. The availability of this service, as a matter of fact, occurs to a very small proportion of the contributors who are called upon, and as a result, the approval of the endorsing body is not at all an essential element in securing funds. The endorsing body consequently has little influence in endorsing its requirements upon the institutions which it seeks to influ- ence. I do not think a single endorsing body which follows this plan, has attained an influence which makes its endorse- ment essential to the support and success of every charitable 360 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. organization in the community, and which is, therefore, in a position to enforce high standards of efficiency. I am very strongly of the opinion that the most effective method, from the standpoint of efficiency in the charitable or- ganization, education of the contributor, and protection to the community, lies in the use of some form of an endorsement card or certificate, supplemented perhaps by the occasional pub- lication of a "v/hite list,'- at least for permanent local bodies. Every solicitor who carries a card of this kind is certain to present it as an additional argument for a contribution. The contributor in a short time comes to realize that there is an organization which is constantly serving him and when the card is not presented he insists upon the endorsement of his organization before he makes a contribution. Thus every char- itable organization comes to recognize the tremendous influence and value of having the official endorsement, and makes every effort to comply with the standards insisted upon by the en- dorsing body. I know of several communities in which the ap- proval of the endorsing body is practically essential to the con- tinuance and success of the charitable organizations. Endorsement Cards Issued On the other hand, it is frequently argued that the issuance of a card of endorsement results in the absolute reliance of the contributor upon the judgment of the endorsing body and that support of the philanthropic activities of the community be- comes mechanical instead of resulting from an intimate knowl- edge of and interest in the work of these organizations. As a matter of fact, I think experience has clearly proven that the use of the endorsement card stimulates personal investigation and inquiry on the part of the contributor, and that in those communities where this plan is followed, the giving public has attained a more intelligent understanding of and greater sympathy with the work which it is supporting than has been attained in communities which employ other methods. The endorsement bodies which have been the most potent factors in the education of their communities to a responsibility for the charitable work of those communities are in general the ones which have followed this method. A modification of the endorsement card has been tried in one community with some success. Solicitors are given a large CHARITY ENDORSEMENTS AND FRAUDULENT SOLICITATION. 167 certificate sheet. The endorsement is at the top, together with the amount of money which the organization may collect during the current year, and space is left for the names of. subscribers, with the amount which they give. Contributors are urged to give only when a sheet of this kind is presented, and to record their names and contributions on this sheet. This makes it possible to determine at all times the amount which is being raised and insures against the solicitor's appropriating a part of the money which he receives. In some communities the card of endorsement is given in- discriminatety to every sort of solicitation which is considered legitimate. This is dangerous, for it is an almost impossible task for any group of men to become absolutely certain as to the worthiness of appeals for some forms of advertising, for solicitation for individual relief, and particularly for activities outside their own communities and in other cities. The re- sponsibility which is implied by the issuance of a card should not be assumed without this certainty. Fifth : — What relation should exist between the endorsing body and similar bodies in other communities? The endorse- ment committee plan has become a national movement. Prob- ably upwards of seventy-five or one hundred cities are now more or less effectively performing this function. Methods are be- coming standardized as we gradually work out those practices, which are the most successful. Furthermore, there are a great many appeals which are nation-wide in character. Certain national bodies performing national functions send their so- licitors throughout the country. There are local bodies, such for instance as educational institutions, soliciting in various cities and states. Again, there is that vast host of itinerant solicitors, with various questionable schemes, happily decreas- ing in number, which appear in various cities. CHAPTER XI. Commercial Arbitration By T. C. HUFF In 1768, when the New York Chamber of Commerce was formed, a provision was incorporated in its Charter that it could arbitrate business disputes. This organization has made four attempts to form a mechanism for conducting arbitration. The first three were failures. The first failed because there was no method of enforcing the award; the other two, because they attempted too much, for the promoters had in mind a court of commerce, exclusively for merchants, fashioned after the Old World Handelsgerichte and the Tribunaux de Com merce. Differences in laws, customs and viewpoints made such a scheme impracticable in our country. The fourth and last plan, later to be described, is a more modest attempt and seems in order and quite within the realm of practicability. In 1801 the Philadelphia Chamber of Commerce composed of merchants of Philadelphia provided in its by-laws for an arbitration committee to settle commercial differences arising among its members. We find many early attempts to form strictly trading bodies. In nearly every case, arbitration of disputes among members, was an essential part of the work. In 1836 when the Boston Chamber of Commerce was founded, it had only two committees, the committee of inquiry and the committee of reference. It is not stated what their functions were, but the latter was probably a board of commercial arbi- tration. The arbitration committee and the committee on ap- peals held a very important place in the Boston Board of Trade in 1854, when it was founded. In preparation for this study of the present status of this form of chamber of commerce activities, a questionaire was sent out to 39 organizations from which 28 replies were re- ceived which told of the activities and how they were conduct- ed. Most of the material 'in this study w^as secured from sixteen of the organizations reporting this character of work. 168 COMMERCIAL ARBITRATION. . 169 Early in the investigation it became evident that thevur bodies allow the disputants to subpoena witnesses, and comy^el the production of books and papers, as in a court of law. While the Master Builders' Exchange of the city of Philadelphia does not give this privilege, the New Orleans Board of Trade, Ltd., can subpoena a witness but cannot compel the production of papers and books. The penalty for failing to appear before the committee varies with the different organizations. The various answers were as follows : "At the discretion of the committee." "Fine, suspension, or expulsion." "Fine." "Ne\er occurred." "Fine not exceeding one-half of the fee, and the board can insist on no postponement." "Postponed, too many hearings would result in ex-parte hearing." "If the plaintiff, the case fails; if the defendant, judgment is against him by default." These various answers show that there is little uniformity in dealing Avith this situation. All of the proceedings are taken down by a stenographer in five organizations, in two if it is desired, and one does not at all. The action of the committee is not secret to members of the association, except in the case of the Chicago Board of Trade. If a member wishes to see the award of the committee, he can do so upon application to the secretary. In reaching these awards, all cases are settled on their merit and are not gov- erned by precedent. 172 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. The Decision and its Force The decision of the committee is binding in five cases and subject to appeal in the New Orleans Board of Trade, Ltd., the Minneapolis Chamber of Commerce, the Chicago Board of Trade and the Indianapolis Board of Trade. The statutes of the state in ^>'hich the above organizations are located provide that the awards be binding in four organizations. The New Orleans Board of Trade, Ltd., has a rule that an appeal w^ill not be permissible, unless the amount in dispute exceeds five hundred dollars. Among the trading bodies, ap- peals are infrequent, unless the amount involved in dispute is a large sum. After a case is taken to the committee on ap- peal, its decision is generally always final and binding. The time limit in which an appeal will be allowed differs greatly in the different organizations, varying from eight hours to thirty days. Kevocation of the decision is allowed in only three bodies, the St. Louis Merchants' Exchange, the Memphis Merchants' Exchange and the Chicago Board of Trade. In St. Louis the penalty is ''paying such expense as has been incurred." In Memphis, if a revocation occurs, it is the duty of the secretary to prefer charges, the penalty being censure, suspension or expulsion. In none of the bodies is the right to revoke ever waived. A submission to arbitration in the Chicago Board of Trade can be revoked by either party after the allegations and proofs of the part}^ have been closed and the matter finally sub- mitted to the arbitrator for decision, but it has never been done. By mutual agreement, the case can be dropped, in the St. Louis Merchants' Exchange and the New Orleans Board of Trade, Ltd. None of the organizations has any requirements for the revocation of an award. In case of revocation, the other party to the submission can maintain an action for all the expense that he has incurred in preparation for the arbitration unless otherwise agreed to, in the St. Louis Merchants' Exchange. This matter is left to the decision of the committee in the Balti- more Chamber of Commerce and the Chicago Board of Trade. There is no requirement in any of the organizations that the award shall be filed with the court. The losing side must fulfill the requirements of the award with the prevailing side at once in one organization, within a reasonable time in two, six days in one, and ten days in three organizations. In the COMMERCIAL ARBITRATION. 173 majorit}' of cases if this is not complied with, the award can be filed with the court, and it Avill see that the award is en- forced. The fees are fairly uniform for all the organizations as shown in the appendix. In five organizations they are on a sliding scale but of stated amounts, governed by the amount in- volved in the dispute. This plan is used more in the larger or- ganizations. It is generally paid to the secretary, w^ho divides it among the arbitrators. The fee for the committee on ap- peal is generally the same as that for the arbitration com- mittee, while for non-members it is, as a rule, always some- what higher. The Work of the Trading Body Aibitration Committees Many thousands of disputes have been settled in this; country by these arbitration committees. The Memphis Mer- chants' Exchange has settled about three thousand cases. About fifteen years ago, the Exchange began numbering the cases and the last one is number 1,740. The Chicago Board of Trade has arbitrated many hundreds of cases during its fifty-seven years of existence. All of the bodies report that the work of the committees has been uniforml}^ successful and satisfactory to both parties. The Chicago Board of Trade reports that, "The committees are highly regarded by members and non- members in the grain trade.'' This, in general, is the gist of the matter of the workings of the arbitration committees in the trading bodies of the United States. Arbitration is an essential part of a trading body, as the organization is formed simply for business pur- P * Commercial Organizations The idea of commercial arbitration by American chambers of commerce is not new. We have already seen that as early as 1768, the New York Chamber of Commerce incorporated in its charter, given by King George, a provision for arbi- trating business disx)utes. The New York Chamber of Com- merce is the leader among commercial organizations regard- ing arbitration. The origin of the New York plan is of a very complex nature. As earlier stated, four attemptvS have been made. The first three were unsuccessful. The last and final plan is based upon the past history of the New York Chamber of Commerce. 174 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. European commercial courts, stock exchanges, trading bodies; the London Chamber of Commerce, Canadian Chamber of Com- merce and eleven American chambers of commerce and boards of trade were studied before this plan was evolved. Few of them were suitable examples that could be followed to any great extent. The committee then examined the past records of the New York Chamber of Commerce. Profiting by past mis- takes and basing the arbitration proceedings upon the New York Statutes, the present plan Avas formed. The European commercial courts could not serve as a guide due to differences in laws and customs. The London Court of Arbitration was followed to a certain extent because of a likeness of their customs and those of our own. The plan, which was worked out, is comparatively simple. Selection and Control of the Arbitrators First of all, is the standing committee on arbitration which is appointed. It has complete supervision of all matters con- cerning arbitration referred to the chamber of commerce. This committee compiles from time to time, revises, and keeps a list of qualified persons willing to serve voluntarily, as arbi- trators. All names in this list, are members of the chamber of commerce. The list is known as, — "The list of official arbi- trators of the New Y^ork Chamber of Commerce." This list of official arbitrators in a strictly commercial or- ganization is necessary. In a trading body, a committee can easily be selected, which is familiar with the terms of that par- ticular business or trade. This is not true for a commercial organization, where many different kinds of business are repre- sented. Hence it is easily seen that where a committee may be able to arbitrate all cases which might arise in a strict trading body and every member be familiar with the technicali- ties of the business, it would be practically impossible for a committee of suitable size to be able to handle all contentions which might arise in a commercial organization. The disputants can select the standing committee, one man from the official list, or each choose a man, who in turn chooses another and all three serve as a committee. A member of the board of directors or a man even indirectly interested in the dispute cannot act as an arbitrator. The arbitration committee has power to disregard trivial or unimportant cases. The great bulk of cases considered are COMMERCIAL ARBITRATION. 175 those dealing with fiiiaiicial and commercial differences. Legal questions, as a rule, are taken to the courts. Conciliation This work of conciliation of disputes is in all probability the most important branch of work of the arbitration commit- tee. Mau}^ disputes are settled in this way and hence never appear before a group of arbitrators. This is preferable to arbi- tration, if possible, as the good-will of both parties is retained, and their business connections still exist as before. This part of the work does not make a show, but is invisible and exceed- ingly important. ,, , , r ^ Method of Procedure In the case of a dispute, the disputants sign a written form of agreement "consistent with the existing provisions of law," stating Avhich of the three forms of arbitration they wish to use, and that they will abide b}^ the decision of the arbitrator or arbitrators selected by them. After the submissions are turned in, the parties are then notified of each folloAving hearing as to the time and the place. All hearings are informal, which greatly aids the dispu- tants to get into closer touch Avith each other. They are not public unless at the request of the contending parties. The power of subpoenaing and swearing witnesses is given to the arbitrators. Before evidence can be taken "the arbi- trators must be sworn by a notary or other officer authorized to administer oaths, faithfully and fairly to hear and examine the matter in controversy and to make a just award according to the best of their understanding." Before taking any outside evidence, the -arbitrators iirst read the two submissions and then ask each side to state for what it is contending. During the hearing, all evidence that is material and important, must be considered. At the request of either party, all books and papers must be produced. Cross- examination of witnesses is allowed to a reasonable extent. A competent stenographer is employed to take down all evidence. The Decision and its Force The contending parties "agree to stand to, abide by, and perform any and all decisions, awards, order or orders, and iudgment that may be made by the arbitrators."* ♦Pamphlet on Commercial Arbitration of the New York Chamber of Com- merce. — pp. 51. 176 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. The arbitrators, iii reaching their decision, can either fol- low or disregard rules of law. If the rights of either party are dependent upon a rule of law, the arbitrators decide the point at issue. If the point of law is too strict to be reason- able, it can be set aside and the case determined upon an equi- table and common sense basis. The disputants, in the submission, waive the privilege ^^to withdraw, or revoke the submission, after the arbitrator or arbitrators have accepted their appointment."* These decisions have the weight of court decisions, and are as binding. One might take a case to a court and get a deci- sion based upon a previous decision of the arbitrators. The successful party can take a decision of the arbitrator or arbi- trators and file it with the Supreme Court of the State of New York. The award will then have the same power as a supreme court decision. The court will set aside an award if any of the following defects are present : 1. "The award has been procured by corruption, fraud, or other undue means. 2. "There was evident partiality or corruption among the arbitrators or either of them. 3. "The arbitrators are guilty of misconduct in refusing to postpone the hearing, upon sufficient cauFe sliow^n, or in refusing to hear evidence perti- nent and material to the dispute; or of any other misbehavior by which the rights of any parties have been prejudiced. 4. "The arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final and definite award upon the subject matter sub- mitted, was not made."** These records of the cases and the decisions are available at all times to the members of the New York Chamber of Com- merce and outsiders as well, but only upon a written order of the committee on arbitration. The New York Chamber of Commerce is a very strong advo- cate that precedent should be followed in all subsequent simi- lar cases. In its "Handbook for Arbitrators" by Mr. Cohen, he says; "A series of commercial precedents has a very im- portant value to the business community and the certainty of knowing how important questions will be answered, will serve ♦"Handbook for Arbitrators" of the New York Chamber of Commerce. Prepared by Julius Henry Cohen of New York City. **"Handbook for Arbitrators" of the New York Chamber of Commerce. Prepared by Julius Henry Cohen of New York City, COMMERCIAL ARBITRATION. 177 to prevent controversies in the future/' As a result, the arbi- trators write an opinion for each case as do the courts. Each party to the submission must pay to the clerk the sum of $60.00 and a larger one if the committee deems it neces- sary. Each arbitrator receives f 10.00 per day or part thereof, and the stenographer gets the usual remuneration. The costs to non-members is the same. Work of the Committee Since the inauguration of this system, numerous conten- tions have been settled to the extreme satisfaction of both parties. In practically every case the defeated party has ac- ceded to the award. Cases involving botli large and small sums have been settled. Cases concerning almost every con- ceivable kind of merchandise have been taken up. From every case, that has been arbitrated or conciliated, comes the report of quickness of action, equity of judgment, and inexpensiveness. The plan of the New York Chamber of Commerce has been adopted, almost to the letter, by the Rochester Chamber of Commerce and the Cleveland Chamber of Commerce. A few minor changes Avere made in each case. This educational branch of the work is considered very important by the New York com- mittee. In its own words it says, "Its largest opportunity, as its most important duty, is to inspire increased regard for the principles of arbitration the world over.'' This educational feature of the work, the New York Chamber of Commerce is over-anxious to extend. This organization is the best adapted and equipped of any organization in America for educating other organizations to the great value of arbitrating business disputes. O^^^^ pj^„^ The other plans occur among smaller organizations. In these organizations the plan is not so strong as that of the New York Chamber of Commerce. Witnesses are seldom sworn, ex- cept in the Easton Board of Trade. In only one organization, are there any fees, and these are the actual cost expenses. The main weakness of all these smaller organizations is that the decision of the arbitrators is not binding upon the contending parties. One organization reports that the decision is binding, if the disputants agree that it shall be so, before the arbitration of the dispute. There is a great field for the arbitration of business dis- 178 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. putes by the smaller organizations. Before arbitration will be a success, the decisions of the arbitrator or arbitrators must be binding. An arbitration plan, similar or like that of the New York Chamber of Commerce, can be put to use in a town of any size. All that is necessary is to have men in the town who are of good report, and "fair and square" in all their dealings with other men. The idea of arbitrating commercial and financial disputes is becoming international in scope. This movement has been brew ing for some time. In June, 1914, the Sixth International Congress of Chambers of Commerce, was held at Paris. On this occasion, the American delegates presented an outline for in- ternational commercial arbitration under the direction of com- mercial organizations. Their plan was adopted by th^ con- gress. The intervention of the European War prevented the special international conference on this matter. In May and June, 1915, a Pan-American financial confer- ence was held in Ncav York City. International arbitration of commercial disputes between business men of the United States and Argentina was very seriously discussed. These meetings inspired a group of representatives of Argentina and the United States to formulate a plan of arbitrating business disputes. This plan covers such disputes as, compliance w^ith orders and damages due to poor packing, quality of merchandise, etc., etc. No governmental supervision is called for in any case. The settlement of contentions is done by means of a tribunal, formed by the chambers of commerce of each country. The arbitration of disputes is voluntary. This plan is ready to be studied, and if it is satisfactory, to be ratified by the Latin-American countries. If Argentina ratifies it, it will be tried first between Argentina and the United States. It is hoped that if this plan gets into operation between the United States and Argentina, that it will be an incentive to the other Latin- American countries to adopt the same or similar plans. The main advantage that will accrue from this step is, that it will greatly increase the Latin-American markets, now open, to American manufacturers. It will tend to alleviate the dis- trust that each holds for the other, and create a better and more wholesome business spirit toward each other. COMMERCIAL ARBITRATION. 179 Appendix FEES OF THE TRADING BODIES. Baltimore Chamber of Commerce: Each member of the Committee is entitled to Three ($3.00) dollars for each sitting. If the amount at issue is over $1,000.00 the fee may be in- creased to five ($5.00) dollars for each sitting. Chicago Board of Trade : Where the amount in controversy shall be under $500 $10.00 Where from $500 to $1,000 15.00 Where from $1,000 to $1,500 20.00 Where from $1,500 to $2,500 ; 25.00 Where over $2,500 and upward 50.00 Indianapolis Board of Trade : For each award under $500 (in value) $10.00 For each aTvard from $500 to $1,000 12.00 For each award from $1,000 to $1,500 18.00 For each award from $1,500 and upward 25.00 Memphis Merchants' Exchange Where the arbitration is not based on the determination of grades or quality, If under $1,000 $15.00 If $1,000 or over Ij4% on amount of award If the arbitration is for the determination of grades as shown by samples the fee varies for the different articles. Minneapolis Chamber of Commerce : Same as the fees of the Chicago Board of Trade. Neiv Orleans Board of Trade, Limited : $5.00 for each case. New Orleans Stock Exchange : Each disputant shall deposit w^th the treasurer $25.00 before a case is taken up. Each man on the committee receives $5.00. Philadelphia Master Builders' Exchange: Each member of the committee of three shall receive five ($5.00) dollars for each sitting. Outsiders shall each pay $25.00 to the Exchange for the use of it. St. Louis Merchants' Exchange: Less than $1,000 $10.00 From $1,000 to $2,000. 15.00 From $2,000 upward 20.00 COMMERCIAL ORGANIZATIONS. Springfield, Mass. ; Winona, Minn., and Fort Dodge, Iowa, make no charges for their arbitration. The Easton Board of Trade charges only the actual expenses of the case. New York Chamber of Commerce, Rochester Chamber of Commerce, and Cleveland Chamber of Commerce: Each party to the submission must deposit the sum of $60.00, or at the discretion of the committee, a larger amount, all of which pays the necessary expenses as the arbitrators' fees of $10.00 per day or part thereof, stenog- raphers' fees, paper, etc. CHAPTER XII. The Chamber of Commerce of the United States By MERLE THORPE Less than eight years ago every first-class country in the world had its national federation of business except two- Turkey and the United States. The business men of Great Britain, France, Switzerland, Austria, Italy and Belgium had been organized for nearly a quarter of a century, Holland and Germam^ for a hundred years. In the spring of 1912 a group of business men met with the President of the United States and the Secretary of Com- merce and Labor and laid the foundation for the United States Chamber of Commerce. Today this national federation, with its 1,256 trade and commercial organizations and their under- lying membership of 670,000 men, is the largest in the world. President Taft, in his message to Congress in December, 1911, urged the importance of coordinating the local commer- cial organizations, trade associations, etc., into a central body for the purpose of increasing their efficiency and extending their usefulness, and of encouraging commerce between the states and insular possessions of the Union and foreign countries. The suggestion found favor and resulted in the President directing the Secretary of Commerce and Labor to initiate a movement for the creation of a national commercial organization. Commercial bodies throughout the United States were ac- cordingly invited to send representatives to a conference in Washington, April 22, 1912, to set the necessary machinery in motion. The sessions lasted tAvo days, and the outcome was the Chamber of Commerce of the United States, with Harry A. Wheeler Vice-president of the Union Trust Company, Chi- cago, as its first president. Mr. \Mieeler held the presidency two years, and was suc- ceeded in 1914 by John H. Fahey of Boston, who also held the office two terms. R. Goodwyn Rhett, President People's National Bank, Charleston, S. C, was elected in 1916, and re- 180 THE CHAMBER OF COMMERCE OF THE UNITED STATES. 181 elected in 1917. Harry A. Wheeler in 1918 was again called to the presidency, and in 1919 was succeeded by Homer L. Ferguson, President of the Newport News Shipbuilding Com- pany, Newport News, Va. Elliot H. Goodwin was appointed general secretary when the office was created in 1912, and still holds tliat position. The steady growth of the National Chamber is shown by the following table : Organizations States Associate and Individual Members April 1913— 326 43 April 1914— 549 47 1954 April 1915— 646 47 2724 April 1916— 737 48 3490 April 1917— 919 48 5716 April 1918—1041 48 7447 April 1919—1177 48 10193 Dec. 1919—1256 48 11900 Embraced in this membership are organizations and indi- viduals in every state in the Union, and in Alaska, Hawaii, Porto Rico and the Philippines ; also the American Chambers of Commerce in London, Buenos Aires, Paris, Havana, Naples, Constantinople and Rio de Janeiro. The New Nationalism in Business What has brought about this new development in Ameri- can life? What common impulse lias stirred this great re- sponsible body of American business men? Any movement that has behind it 670,000 people is preg- nant with significance. When in eight years it can enlist 670,000 business men who direct and control the principal en- terprises in the country, it strikes deep at the roots of Ameri- can life. Tt is no longer enough that a mere handful of men, the leaders of the world's affairs, shall be concerned with the na- tion's business. Our collective problems have become our indi- vidual problems. Business men have felt the want for some central organization that would promote a broader understand- ing of business in its national phase, that would apply to the industry of the nation the sam^ principles of cooperation that have done so much for their own business. They subscribed to the chamber of commerce idea : A unity of purpose and of ac- tion on the part of business men. 1 182 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. Addressing the first annual meeting of the national cham- ber, President Taft said : ^'This organization has been perfected at a time when it can be especially useful. I have been surprised in going about the country to find that there is no town and no village so small that it does not have either a board of trade or a chamber of commerce. Now there is not any reason why those associations should not be units that go to make up together, with the larger organizations of larger towns and cities, where there is a real trade and real commerce, the constituency of this great federation; and I speak of the movement for the purpose of showing the power that this national federation has by refer- endum to all those member organizations to gather from them the best public opinion that there is, in order to influence the legislation of the country, so far as that may be properly in- fluenced.'' Two years later President Wilson, addressing the national chamber, said : "I have followed with a great deal of interest the work of this association. You are beginning to know the other parts of the country just as well as you know your own part of it; and, better than that, you are beginning to know what the other parts of the country think as well as what your part of the country thinks. And it will often happen, I dare say, that you will find that other parts of the country have an idea or two. And very few instrumentalities are, or will be, more serviceable than yours in this digestion and comparison of views, this frank assessment of the opinion of business men, at least, of the country, with regard to all great matters of public policy. I congratulate the country upon having such an instrumentality, and I think your own committees will testify that they have a broader conception of what this association can do than they had before, and that they have this as their leading conception, that the life of this country does not reside even chiefly in any center of population of the United States." Determining Chamber Policies Policies of the national chamber are determined by the referendum of a two-thirds' vote of the member organizations, and in annual or special meetings by a two-thirds' vote of the delegates from the several organizations. The former method THE CHAMBER OF COMMERCE OF THE UNITED STATES. 183 of ascertaining business opinion throughout the country is growing in popularity among business men, and the force of their views thus registered is felt in the country's general commercial and industrial progress. Members of Congress and of legislatures have expressed appreciation of these declarations by business men because through them they are able to size up situations from an angle not afforded by any other source. Included in the referendum vote are the organizations in the small city as well as those in the greatest metropolis so that when the returns come in the national chamber has the opinion of all elements in the world of business, and not merely the opinion of a single group or section. Before a question is submitted to the organizations for a vote, the committee having the problem in hand makes a care- ful investigation and reports its findings and recommenda- tions to the board of directors of the national chamber. If the board decides to submit the recommendations, arguments are prepared for and against them, and they are sent to the mem- ber organizations, which have fortj^-five days in which to give them consideration. The national chamber is committed by a two-thirds' vote. Failing to obtain a two-thirds' vote, the prop- osition is lost. Every member organization, however small in numbers, has one vote. No organization, however large, has more than ten votes. Senator Charles Curtis, a recognized leader in Congress, discussing the referendum plan of ascertaining public senti- ment, said : '^Congressmen evidently were impressed by the national chamber's referendum on the railroad question, it being plain that action was taken after the business men of the various organizations had given the subject careful attention. A state- ment by folks with whom, we are acquainted of a conclusion reached as the outgrowth of study for a period of days, or weeks, carries weight. When senators and representatives learned of the action of local commercial organizations on the proposed railroad legislation, they appeared eager for all the information available, and gladly gave consideration to the principles advocated. Even those who were not in harmony with the national chamber's railroad platform had respect for the manner of its creation. The national chamber presented no 184 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. bill. It left that feature of the proposed legislation to Con- gress. Its simple declaration of principles appealed to all who had been trying to frame legislation, and I find that several things the national chamber stands for had been incorporated in both the pending railroad measures. Regardless of the out- come of the proposed legislation, the Chamber of Commerce of the United States has set an example of how to present helpful information to Congress which others engaged in similar work could follow with profit." National Chamber Activities Perhaps the national chamber's greatest service to the country was in directing war activities. Recognizing the tre- mendous task of mobilizing all the resources of the Nation for the successful prosecution of the war, and the special duty of business men to aid in every possible way, the national chamber placed at the disposal of the government all the facilities of its organization for any use to which the^^ could be employed. The first call came through the Secretary of War, when he asked for the appointment of local committees throughout the country to cooperate with the district quartermasters in the purchase of war supplies. These committees, speedily brought into being, rendered valuable service. The war service committees, organized to act with the gov- ernment's war industries board, performed highly important tasks the last year of the war, and were doing their best work Avhen the armistice was signed. The national chamber called a war convention at Atlantic City, and put into operation a program which brought every business interest in the United States solidly into line for ev- erything the government wanted done. The convention said to the Government: ^^You name it, and we will go over the top with it." And there was no faltering on the part of American business men while the fighting was in progress. After the armistice, a great reconstruction convention was held at Atlantic City which set in motion the machinery for pulling the country together industrially. The latest achievement of the national chamber was to bring about a conference at Atlantic City of representative busi- ness men of Belgium, France, Great Britain, Italy and the United States for the purpose of making plans for reopening THE CHAMBER OF COMMERCE OV THE UNITED STATES. 185 the channels of commerce. It has been regarded as the most important meeting of business men since the signing of the armistice. Membership Qualifications Every commercial or manufacturers' association not or- ganized for private purposes is eligible for membership in the national chamber. Such organizations are of two classes designated as follows: First — Local or state commercial or business organizations whose chief purpose is the development of the commercial and industrial interests of a single state, city or locality. Second — Local, state, interstate or national or- ganizations whose membership is confined to one trade or group of trades. In addition, persons, firms and corporations holding mem- bership in any organization admitted to the national chamber are eligible for election as associate and individual members. These members receive the regular publications of the national chamber and may avail themselves of the facilities of the na- tional headquarters, may attend all regular and special meet- ings of the chamber and, subject to the rules of such meetings, may have the privilege of the floor; but they are not entitled to vote except as duly accredited delegates of organization members. The purpose of creating associate and individual memberships was to secure the direct and continuous interest .n the work of the national chamber of the business men in 9YeTY aggressive section of the country Avho represent in their organizations and in their communities leadership and con- structive ideas. An association affiliated with the national chamber having twenty-five members is entitled to one delegate and one vote, and for each two hundred members in excess of twenty-five, one additional delegate and one vote; an association of less than twenty-five members may be admitted to membership if in the judgment of the board of directors its importance justifies it, and is entitled to one delegate and one vote, but no association is entitled to more than ten delegates and ten votes. The rate of dues for each organization member is based upon the scheduled annual income from membership fees and is approximately one-half of one percent of such income; pro- vided, however, that no organization member shall pay annual 186 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. dues of less than $10, or more than |700. Associate members pay annual dues of $100 ; individual members, $25. How Governed The national chamber's board of directors is selected by districts to represent all sections of the country. Twenty-five members are active and hold office for two years, thirteen being chosen at the annual meeting in one year and twelve in the suc- ceeding year. The board has supervision of the affairs of the national chamber, selects the officers — a president, four vice- presidents and a treasurer, who are ex-officio members of the board. An executive committee of eleven members of the board, with the president ex-officio, acts for the board in the interim between its meetings. The directors are nominated by a com- mittee selected by the national councillors. The national council is composed of one representative from each organization member in the national chamber. It was created for the purpose of bringing about continuous co- operation with the board of directors of as many able business men as possible in every section of the country, and it acts in an advisory capacitj^ to the board. It is the duty of the national councillor to bring to the attention of the national chamber all matters that come to his notice in his own locality which might be valuable to the members of the chamber. Much of the work of the national chamber is carried on through standing and special committees which report to the board of directors. It is particularly necessary that all com- mittees should be broadly representative and that the conclu- sions reached should be national in character. These commit- tees include : Budget and efficiency; federal trade; international com- mercial arbitration; railroads; statistics and standards; Argen- tine arbitration; ocean transportation; highways; public utili- ties; employment of soldiers and sailors; cost accounting; fire waste and insurance; finance and budget; building; financing building ; incorporation of chamber ; reorganization of chamber ; revision by laws; war service executive; federal taxation com- mittee ; postal facilities ; publicity ; national defense. A Business Service Through its Washington office, the national chamber pro- vides direct service to its members in response to requests for THE CHAMBER OF COMMERCE OF THE UNITED STATES. 187 information, and also through its publications. A general bul- letin issued weekly gives its members prompt and accurate notice of all activities of executive departments affecting busi- ness. Legislative bulletins of the national chamber, also issued weekly during the sessions of Congress, constitute a thorough digest of current national legislation affecting commerce and industry. A special division of information is maintained at the na- tional headquarters under the direction of business and legal experts. Members are furnished direct with advice and data obtained from official and other first-hand sources available in the government departments, the Library of Congress, or else- where in Washington. Information and assistance is also fur- nished to members who apply personally at the national head- quarters. The Nation- s Business^ the official magazine of the national chamber, is published monthly, giving a careful and readable interpretation of the business news. This is the editorial con- fession of faith of the Nation's Business : "To create a national viewpoint for American business, breaking down provincialism and narrowness. "To stimulate at the same time community development. "To advocate foreign trade as a natural and necessary growth, making stable our domestic trade. "To emphasize the value of organization — of teamwork in business. "To serve American business by furnishing: "A perspective of the world's commercial activities with their interpreta- tion. "A clearing house of the new ideas in organized business. "An intelligent report on current relations of government and business. "To temper all with a serene belief in the idealism of American business. "To find in all business the romance and the enthusiasm which each man finds In his business. "To be human — in the way that business is to business men. "In this faith we shall strive to express the sanity, the integrity, and the stability of American business.' Organization Membership Service The organization service bureau of the national chamber is equipped to furnish commercial and trade organization mem- bers with data in regard to their organization structure, meth- ods of work and activities. It is a clearing house for such in- formation and affords a means for making the successful meth- 188 p:fficiency and characteristic activities. : ods and achievements of one organization the common property of all. Information is largely acquired through correspondence and questionaires, from official publications of organizations and direct study on the ground. It is dispensed through let- ters in replies to inquiries, news-letters and pamphlets, and through personal visits of the chief of the bureau to organiza- tions. Through its semi-monthly news-letter to secretaries, the bureau brings at regular intervals to the attention of commer- cial organizations new phases of the work of particular organi- zations in the field. It is a valuable instrument also in carry- ing on investigations of any problems or line of endeavor which may at the moment be paramount. The bureau's pamphlets incorporate the results of it« special inquiries and cover to date the following subjects: Organization structure and method; traffic bureaus; community advertising and publicity; agri- cultural bureaus and committees; industrial development; Avar activities of commercial organizations ; commercial organization credit bureaus, and building a modern chamber of commerce. The chief of the bureau devotes a large part of his time responding to requests for the bureau's field service. On such visits to organizations the chief of the bureau confers with their boards of directors, committee chairmen and members re- garding their local problems, and addresses their memberships on subjects pertinent to commercial organization work and aims. It is the purpose of the organization service bureau to continue gathering, testing and classifying information to the end that there will always be available to the organization members of the national chamber a. fund of data as to hoAV the several organizations have met and solved their problems. A Program of Expansion Experience has demonstrated that the time has come when it is necessary to expand the national chamber's organization to accord with its increasing responsibilities and obligations, and to assure representation for every division of commerce and industry. With this situation placed before them, delegates to the annual meeting at St. Louis recommended that the board THE CHAMBER OF COMMERCE OF THE UNITED STATES. 189 of directors proceed to bring about such structural changes as are needed. The plan of operation under which the chamber has con- ducted its affairs proved well adapted to conditions arising at the time the chamber was established and during the period prior to the war, but the war brought new conditions and the changes contemplated will change the structure from one of general character to one of divisional operation and responsi- bility. In making such changes all activities of the chamber will be so coordinated that each will be related to the whole in a manner to guard all policies and precedents that have char- acterized it during its seven years of life. The structure of American business, if cross-sectioned, is found to consist of the following definite and distinct depart- ments, and it is, therefore, proposed to reorganize the national chambers machinery to conform to these natural divisions by the creation of departments to operate for and in their inter- ests: Industrial production — embracing manufactures, mining and even perhaps agriculture, if agricultural interests some day should desire to federate with organized business. Domestic distribution — embracing all wholesale and retail distributors of merchandise. Foreign commerce — embracing organizations that have to do with exports and imports. Transportation and communication — embracing associa- tion related to railroad operation, telephone, telegraph, public utilities and water transportation,, both ocean and inland. Finance — embracing all association of banks and bankers. Insurance — embracing fire, life, casualty, liability and ma- rine associations. These six departments include virtually all of the elements of commerce and industry. A seventh Avithin the chamber would be that of civic development, which would constitute a clearing house for beneficial activities in this field as differen- tiated from commercial development, which latter would be abundantly cared for in the other divisions. National Chamber to Build The national chamber has bought a property in the very heart of Washington where it will erect a home for 190 EFFICIENCY AND CHARACTERISTIC ACTIVITIES. American business. It is just across Lafayette Square from the White House. Washingtonians know it as "the old Cor- coran place." The lot is at the corner of Connecticut Avenue and H. Street. The new building will be erected where former- ly stood the house that was at different times the home of Francis Scott Key, Daniel Webster, and Mr. Corcoran, founder of the Corcoran Art Gallery. The structure, five stories high, will cost approximately $2,500,000. PART II. Methods of Organization and Operation 191 CHAPTER XIII. Membership Democracy as a Factor in Chamber of Commerce Membership By HOWARD STRONG Tlie average commercial organization has during the past ten 3'ears assumed an entirely new form, and in this new form has made a new assumption and taken on a new responsibility. The old board of trade was essentially an organization for the protection of property rights. It was as a matter of fact a board of trad — ition. It was primarily, perhaps exclusively, interested in the promotion of the business interests of the com- munity. It did not pretend to concern itself with anything out- side of these interests. This was, of course, perfectly proper. The organization was not sailing under false colors, as long as the promotion of the business interests — the protection of prop- erty rights — was its declared intention. But, was the organi- zation democratic? Democrac3^, I think, implies activity in the interest of the whole people. We all recognize, of course, that the development of the business of a city is essential to the welfare of every man, woman and child in that city, but a large proportion of the citizens of any community are not interested, or think they are not interested, in retail credits, in traffic facilities, in grain inspection, and other activities which were characteristic of the old board of trade. And, is it not true that the average man of the community felt that the board of trade was essentially and legitimately for the promotion of business interests, and that he had no vital concern in it or its doings? The Organization of Today The new organization has broken away from the old con- ception. It is called usually the association of commerce, but all of us are proud to think of it and designate it as an associa- tion of citizenship, which takes up every vital question of in- terest to the whole people. It is an organization for community 193 7 194 METHODS OF ORGANIZATION AND OPERATION. service. In other words, it makes the clear assumption that it is no longer an instrument for the benefit of a certain group of the community, but that it exists for the promotion of the wel- fare of the whole community. Since this assumption is unmis- takable, is not the responsibility for community service, which means democracy, equally unmistakable, and must not our present-day organizations become democratic if they are to sail under true colors? Democracy, as I see it, is a matter of dimensions, vertical and horizontal. True democracy requires that the vertical dimensions be unbroken, that the interests of every class, of every strata, be represented. True democracy requires, as well, that the horizontal dimension be complete, that every section, everv^ neighborhood, have proper consideration. In our struggle for democracy we start with, a prejudice to overcome. I think you will grant that in every community there is a suspicion abroad that we, the big central commercial organization of the city, do not represent every strata and class of society. This is a natural suspicion. In the nature of the case, because our support must come largely from the employ- ing class, because this class is most vitally interested in our commercial and industrial activities, because our forebears, the board of trade, represented this class, we can hardly expect anything else. Furthermore, we must acknowledge that some of our members still have this conception, and that they think our activities are legitimately for the benefit of this single group alone. The Time for Action It is our first duty to correct this misapprehension. Pri- marily we must avoid the appearance of evil. It is certainly wise, and I believe it is usually possible for us, as secretaries, to keep our organizations away from the consideration of ques- tions upon which their attitude is certain to be misunderstood. In my mind it is almost universally a mistake for the commer- cial organization to take active part in labor questions. No matter how sincere may be our conclusions, if we align our- selves with the one side or with the other, we shall be misunder- stood and our motives questioned. The best way to democracy that I know of is through democratic action. If the right i& upon the side of the public service corporation, act fearlessly and make the fullest possible statement of your reasons. If DEMOCRACY IN CHAMBER OF COMMERCE MEMBERSHIP. 195 it is on the other side, act with equal fearlessness, and you will probably find that the public service corporation, which is usually made up of reasonable men, like the rest of us, will acquiesce and perhaps respect you the more. When it is necessary to take action with reference to some public question upon which the community is divided, it is fre- quently possible to clarify the problem in the minds of your citi- zens, and materially to assist in reaching a solution without necessarily aligning yourselves with either faction. The Necessity of Bigness We are all familiar with a charge that our organization represents primarily the jobbing interests, the retail interests, the manufacturing interests or some other special group of business men. The best way that I know of to meet this criti- cism, is so to distribute the activities of your organization and the attention of your directors and officers, so to keep the bal- ance, that there can be no question as to your equal interest in every group and its activities. Another suggestion: It is an excellent plan, if it can be arranged, for the same man to act as secretary both of your jobbing committee or division and of your retail committee or division, for here is where the greatest controversy is likely to arise. I know one organization which has avoided much acrimonious criticism between these two groups by having the secretaries of their retail and wholesale merchants boards with desks in the same room. When two men fill their pipes from the same tobacco pouch and swear at the same steam radiator all winter long, it is going to be difficult for them to have a serious disagreement in their work, and the attitude of the secretary finds its reflection in the attitude of the board or the committee for which he is working. Again, in the larger cities, there is a constant tendency to suspect the central organization of working for the down-town interests in opposition to outlying districts. Even though some of the larger improvements may seem more fundamental, it is well worth while for the central organization to give a consider- able share of its time to local improvements. Jump at the first chance to decide anything in favor of an outlying section of the city in opposition to the interest of the down-town section, and you have done more to convince the whole community of your 196 METHODS OF ORGANIZATION AND OPERATION. honesty and to secure the support of the community, than years of protestations of sincerity can accomplish. Much as the secretary should endeavor to stay in the back- ground and to keep his officers and directors and committee men in the limelight, it is nevertheless true that, in the mind of the ordinary citizen, the attitude of the secretary reflects in a large degree, the policy of his organization. Perhaps no one, therefore, is in as strong a position as the secretary to convince a community of his organization's desire for democracy. CHAPTER XIV. The Best Method of Sustaining and Increasing Membership By BYRES H. GITCHELL When the subject was first assigned to me I proceeded to prepare a questionaire covering all of those questions which anybody could possibly ask who is thinking of the membership problem of a commercial organization. I succeeded in making up a list of forty-eight questions and had about decided to send them out to all the members of these organizations with the request that each answer all of these questions frankly and fully. I laid the questionaire aside for ten days and when I took the matter up again I found that if this questionaire were submitted to me by any other member of the association I could not answer more than eight or ten of the questions in any way that would be helpful in preparing for the discussion of the subject assigned to me. Therefore, I decided to write up a paper presenting the case in favor of the employment of membership solicitors in the light of our own experience in Detroit. Experience in Other Cities The paper was written and then I had before me Mr. Mead's injunction not to present local experiences only. In order to ascertain the experience of secretaries in other parts of the country, I submitted copies of my proposed paper to eight or ten commercial organizations whose membership prbb- lems were much similar to those which we in Detroit were still trying to solve. I asked these gentlemen if they would read my paper and criticise it. To seventy-seven other members of the American and Cen- tral associations I did not send a copy of my proposed paper, but I did ask them if they would write me a letter outlining their ^ews on this subject, making it a point to answer the following five questions: 197 198 METHODS OF ORGANIZATION AND OPERATION. 1. Do you employ a membership sales force in your organization; if so, how large is it; how is it operated? 2. What results has this department been securing as a whole? 3. What do you consider the greatest objection to the employment of membership solicitors by a commercial organization? 4. What do you consider the best argument in favor of their employ- ment? 5. What plan would you recommend that a commercial organization should pursue in sustaining and increasing its membership? To those secretaries to whom I sent copies of my proposed paper, I asked that they should state what they considered the weakest point in the operations of the membership department of the Detroit Board of Commerce. Our queries brought many opinions by no means in accord with our own. Out of forty-one answers, thirty never tried the employment of membership solicitors ; six, exclusive of Detroit, were using them and were satisfied with the results ; two had tried and abandoned the idea, one because they felt that the memberships so secured were "not well sold" and the other because '^a situation developed where it was practically impos- sible to get our own members to solicit new members." After considering all of the replies very carefully, I had come to the conclusion that I could serve you gentlemen best in the time allotted to me if I would devote it entirely to a dis- cussion of my own paper in the light of the forty-one letters which I had received on this subject from brother secretaries in answer to my five questions. Something to Sell If we should go into a manufacturing plant and ask the manager if he considered it worth while to employ salesmen, he would probably excuse himself for a minute and telephone for a doctor — or for the police. A star salesman was once asked what he considered the best asset of a salesman. His answer was: "Something to sell." That's the question for us. Have Ave anything to sell that is worth selling? If we haven't then our organizations are charitable institutions and our salaries are gifts. If we have, then the natural thing to do is to sell it. Comparatively few business men are in business for their health, and it is likewise safe to assume that the average com- mercial secretary has not chosen his vocation for recreational purposes. We're all after results; and efficiency is merely the ability to get them. The day has gone by when commercial METHODS OF SUSTAINING MEMBERSHIPS. 199 organizations have to defend their right to exist. The commu- nity admits that we have a contribution to make to civilization — a service to render, a product to sell. But that doesn't mean that they are all buying it. There's a limit to what any man will buy of his own accord. Beyond that limit he's got to be sold. It doesn't make any dillference whether it's a bible or a piano, there are a lot of us who will think we can get along with- out it — until we're shown we can not, and sometimes, in the language of the old darkey, "It takes a heap o' showin'." But it's generally true that the most precious stones are brought to light by hard digging. They aren't lying around on the ground. Also, a miner wouldn't think much of going after them with a trowel. He wants a full-fledged spade. If we want the solid good type of men in our organization, Ave've got to have the best equipment we can get. The miner who is digging in sand can get along with a spade, but if he's moving rocks, he'll have to take his crowbar. So must we have our equipment equal to any demand. Some Sales Arguments There are rules and rules as to what constitutes a sales- man, but Webster's plain definition beats them all — "one who sells goods.'^ As the "goods" vary, so must the salesman. The commercial organization is turning out a product which, though not as tangible as that of the manufacturer, is nevertheless as real. That product is community service. The chief market is the membership, and as that market expands, so expands the usefulness of the organization. It requires a peculiarly high type of salesmanship to sell that product. Samples can not be carried along in a gi'ip. The membership solicitors in the De- troit Board of Commerce are not theoretical salesmen. They have all passed the apprenticeship stage. Each day brings some experience that demands the utmost of their selling abil- ity. A while ago "A" went to see Mr. Brown, a local theater manager, about his resignation. Mr. Brown's statement was: "Oh, I never get around to any of their meetings, or get any benefit from it. I haven't even been in the building. It's no use to me. That's all there is to it." Wherupon "A" replied: "See here, Mr. Brown, if a man came to your theater here, and bought a ticket and went in and sat down and went to sleep while the show was going on, would you give him his money 200 METHODS OF ORGANIZATION AND OPERATION. back?'' Mr. Brown is still with us. In another case, ^^B'' went to call on a fiery old German who had also resigned. ^'B" stated his business, and by actual time, the next five minutes were consumed by Schmidt in consigning the Board of Com- merce, and all connected with it, to a realm analogous to Sher- man's description of war. When he paused for breath, the salesman began to laugh and said that, "being a Universalist, he wasn't in the least offended." Then he started in on a ready- made sales talk. When he left the shop, he carried Schmidt's check for six months' dues in advance. These are but two instances. A novel would not include them all. Every such case would be lost by the novice. They are saved only by the experienced salesman who regards nega- tives and frowns as merely incentives to action. But results are not obtained without careful planning. A sales organiza- tion, not thorough, is unworthy of the name. Our aim in De- troit is to develop the department to the highest possible de- gree of efficiency, and we employ every available means to this end. Our staff is composed of four men: three solicitors, and one man to handle resignations and delinquents. The member- ship secretary keeps a file of "prospects" upon which the solici- tors work. Staff meetings are held each morning, and the day's work carefully mapped out. Reports are made each night show- ing the results per salesman, and every individual case consid- ered at the next morning's staff meeting. Before any prospect is interviewed, he has received literature, and a letter, both cal- culated to prepare the way for the salesman. The. resignations and delinquents are handled in a similar way, and no effort is spared that can avail to bring them back, in good standing, to the organization. Service Men When a membership solicitor secures an application, he ceases to be a salesman in that particular case, and becomes a "service" man. His duty to the new member is not completed until that member has entered into the activities of the or- ganization. Even the arguments used in making a sale are the objects of careful study, and are threshed out in conference. For example, the secretary will say to a staff salesman: "George, I am a real estate dealer, with plenty of means, but I am 'sore' at your organization because I think you are giving my competitors tips on business. Sell me." Then George starts METHODS OF SUSTAINING MEMBERSHIPS. 201 in, with the rest of the sales force critically watching. The hardest arguments are used on both sides — and a snappy dis- cussion follows. Once a year we plan a campaign in which everyone joins. "Teams" of members are made up, and considerable publicity secured. The results have been gratifying, but such a cam- paign can no more replace the steady, consistent plugging of our membership staff than a manufacturer can employ a fresh force for the rush season and lay off entirely for the rest of the year. The campaign is merely the harvesting season. The final test of this, or an}^ other system is, however, the results. The theory is worth nothing if we can't back it up. The membership staff was acquired in January of this year. When we asked the directors for a trial, we promised them an average of seventy-five members a month for all save the two quiet vacation months of July and August, when business is dull. The records show that in January we secured 92 mem- bers, and collected $647.00 of delinquent dues; in February, 98 new members, and |796.00 in dues from delinquents. Be- ginning in March, the staff did organization work for the campaign, and their services in this connection were invalu- able. The campaign brought us 725 new members — 92 more came in April, and 60 in May. In June we held our annual cruise, and in this connection again, we enlisted the member- ship men for organization work. But little of their time was given to selling. Even at that, however, we secured 40 new members. July, one of the discounted months, brought us 50 more, and August, 59. The collections, also, were steadily improving, and in August — Avith business conditions as they had been during the summer — tAvo men collected over ?6,000.00 of delinquent dues. But there was another result. The sage has said: "As a man thinks, so is he." The maximum is likewise true of an organization. The enthusiasm of the salesmen influenced the entire staff. The argument we advanced to others kept clearly before our minds what we professed to be. Conviction is neces- SSLTV to sell, and conviction, like enthusiasm, is contagious. 202 METHODS OF ORGANIZATION AND OPERATION. . Plans for Committee Organization We had now formulated plans to establish a number of standing committees from our members to Avork with the sales- men for about two hours one day a week. The idea is to have a committee for every day in the week. Mondays, Bill and Tom will go out with the salesmen for about two hours. Tuesdays, John and James, etc. In this way we expect not only to in- crease our efficiency in the work, but also by "reflex action^' to keep our members interested. We had eight months of trial of our methods, and these eight months covered the "slack" time as well as the rush sea- son. The membership st^ff stands or falls on a record some- thing like this: 1216 new members in eight months. Over eight thousand dollars of delinquent dues collected. An increase in our annual revenue of over $30,000.00, at a total expendi- ture of less than ten. An average of eighty new members a month, excluding the months of July and August, and also the month of the campaign. An average of 152 new members a month, and $1,000.00 per month of collections, from January to September. The cancellation of about 50 resignations, and the rekindling of enthusi- asm all along the line as the result of analyzing our assets. A certain optician in Detroit has a very pertinent sign in his window. It reads : "I charge for examining the eyes. Did you ever get anything good for nothing?" We believe that our organization needs the best men it can get to handle its membership — the source of both income and influence. We invested in them, and they, in turn, produced results satisfactory to us, in proportion to the amount invested. * * * * Experience of Large Cities Following are a few typical letters from men who were actually confronted by the same problem that we were con- fronted with in Detroit, and they were expending just as much time and just as much energy and substantially as much money in trying to find the answer to the broader question that we were trying to answer for ourselves in Detroit. Their mem- bership methods are exceedingly interesting to me, and I know that they will be to you. Richard C. O'Keefe, the General Secretary of the Buffalo Chamber of Commerce, writes a long letter, the interesting part of which is this : "We have never maintained such a force in this organization, and I was unprepared to reply intelligently to your various questions. It occurred to me, however, that to assist in determining the value of your argument from our viewpoint, it would be well to give the plan a try-out, which I did, and I METHODS OF SUSTAINING MEMBERSHIPS. 203 am pleased to report that in one week's time three memibers of my office staff secured twenty applications. Needless to say, I am very much inclined to continue the work, and believe that we can substantially increase our membersihip by this means. "For the actual work of each committeeman we have devised a plan which makes it absolutely necessary on the part of anyone participating to do his share of the work, or indicate to every other member of the committee that he has neglected it. "We have prepared a very carefully selected list of over 3,000 prospects. These prospects are arranged on cards in triplicate, filed alphabetically and then submitted. This file of prospects is taken before the membership committee and read off one after another. "Supposing that prospect 1296, Mr. W. J. Keller, is taken by Mr. E. P. White ; the card is removed from the file and handed complete to Mr. White. He writes his name on card number three following the words 'Taken by,* and returns card number three with card number one to the secretary, keep- ing card number two. Card number one is again filed in the prospect file, and card number three signed with Mr, Whitens name, indicating that he has agreed to see this prospect, is placed in another file behind his name as a record that he took the prospect. You will see at once that our file, having been completed with a great deal of work, is not spoiled by giving it away. You will also see that because of the fact that the duplicate and record cards have been torn from card number one, we know that the prospect has been taken ; and you will also see that Mr. White has gone on record as having taken prospect 1296 and must report upon it to the chairman. The further value of this complete prospect li^, record of prospects, and the check upon it, is that all of the work done by the membership committee throughout the year accumulates, and is a record and resource to the chamber for future membership committees. This prospect card is the writer's device, and has already proved its worth beyond question. For the further assistance of the membership committee in their work we use a little booklet briefly outlining the purpose and activities of the chamber of commerce, and enclose you herewith a copy of that." The letter of Mr. Hubert F. Miller, the Business Manager of the Chicago Association of Commerce, was a very interesting one: "Your letter of the 8th has just been received. I have not read the en- closure, but will answer your questions in the order asked, as follows: "1. We maintain a membership sales force of two regular employes, en- gaged exclusively on membership solicitation. We have two other men who work on collections and reinstatements of resignations, and these two men also secure membership applications, in addition to their regular work. The department is conducted under the immediate supervision of the head of the accounting department, who is one of the two men who works on collections and reinstatements and looks after the detail of membership work as well. We also have a stenographer in the office who keeps the records and minutes of the membership committee meetings. He is secretary to the membership committee, but he is not the 'membership secretary,' as we have no such office. The management of the membership work is under the general supervision of the business manager. "2. The result of this arrangement or department is entirely satisfactory. It is based on several years of experience and experimenting, and our records show that the two employes who give their entire time to soliciting member- 204 METHODS OF ORGANIZATION AND OPERATION. ships secure almost as many applications as all other sources combined. If we add the number secured by other employes, the total would be considerab'y in excess of the number credited to the membership committee and all other volunteer effort. Please remember our membership committee is appointed annually and its members are chosen from our best volunteer workers in the membership field. The work of this committee is supplemented by various auxiliary membership committees. It holds weekly meetings. "The committee tries new plans each year and does a lot of good work and secures a large number of applications. The total from all sources aver- ages SCO to 1,000 a year. I believe, however, that more than one-half of all the applications from year to year are credited to the paid solicitors. "3, We have tried plans similar to yours and find them quite satisfactory. We try to invent new schemes or plans annually. Just now we are holding frequent meetings called membership conferences. These attract about fifty of our best workers each week. We have good speakers on association topics and usually have a good dinner and some entertainment. We furnish enough of the goodfellowship feeling and enthusiasm to last the men another week. We foster a spirit of friendly rivalry by dividing the active workers into two bands or teams to compete for leadership. Formerly we had five or six di- visions, but find it works better to have but two. "Our membership solicitors and other membership employes attend all meetings of the volunteer committeemen and help them a great deal with, sug- gestions. All of our employes have been with us several years and are men especially adapted to the work. We have tried out perhaps fifteen men who have failed to make good although they were splendid men of established reputation as salesmen in other lines. It requires a particular gift of per- suasion and diplomacy, as well as tact and business ability, to make a good membership salesman. "4. I see no objection to employing solicitors. I do not believe, how- over, in paying commissions. We have tried out that system repeatedly and abandoned it finally. I believe a great many organizations throughout the country are suffering now from results of membership campaigns conducted on a commission basis. There is always danger that such memberships are not "well sold," and, therefore, will not stay sold, and a flood of resignations results at the end of the first subscription period. "5. The best argument in favor of paid solicitors for membership work is in the results obtained. A good membership man, well trained, with a thorough mastery of the talking points in favor of his organization, work- ing industriously and continuously, can outsell at least two or three ordinary volunteer workers. A volunteer worker has other business to do; he can not concentrate on membership work. It is a "side line" with him, and after he has worked all his friends and acquaintances he runs out of material and finds it very hard to sell strangers. "In conclusion, I am thoroughly convinced that salaried solicitors are a necessary part of association work, especially in larger cities." New York's Membership Experiment Here is a very interesting letter from Mr. S. Cristv Mead, the Secretary of the Merchants' Association of New York, in which he says: "1. A and B. When our membership bureau was created last June a year ago, under the supervisory jurisdiction of a small membership commit- METHODS OF SUSTAINING MEMBERSHIPS. 205 tee to maintain and upbuild the membership, the city was divided into six sections, each large in area, and a corps of six solicitors was selected, each being assigned to a district after being thoroughly grounded in the benefits flowing from commercial organization work, as well as the association's achievements. "C. Each canvasser was given a file of the prospects in his district, the membership committee having previously determined that each was eligible to membership. On a printed card, which indicates the form of the eligible membership file given to each solicitor, initial and subsequent calls were noted. Our daily report form (of which a copy is submitted) showed each day's work. The canvasser's cards and the reports were carefully ex- amined by the manager of the membership bureau, who not only discussed with each solicitor the canvass of certain prospects, but also personally gave or secured such assistance as could be requested to promote early and favor- able action on the membership Invitation extended by our field representa- tive on behalf of either the membership committee, one of our officers or directors, or a member. The entire field force was frequently called together in conference by the bureau manager, to discuss difficulties encountered, to review recent work, or to be Instructed In detail on some Important activity In which the association may have engaged, of vital Interest to a part of or the entire membership. These conferences are Instructive to the men, help membership upbuilding, and often result In the writer learning, for Instance. bow various Interests regard phases of our work, or subjects of concern to certain trades or Industries, or the names of men particularly qualified to render committee service, etc. The conferences lasted from an hour to an hour and a half, being held Saturday mornings when, under the conditions existing In the city, canvassing Is difficult, If not Impossible. '"The districts were so arranged that they could be easily and quickly en- larged or decreased in area, dependent upon the size of the fluctuating field staff. "2. As a whole, the soliciting force secured excellent results. Notwith- standing the heavy Initial cost In organizing and equipping the bureau, the first year's work of the bureau showed a profit of more than $7,500. Our directors approved the view of our membership committee that the work Is profitably conducted, even though the cost of obtaining a new member repre- sents the first year's dues, $50, as In the past the average life of membership Is eight years. As a matter of fact, the cost of securing new members has been about $25. "3. — A. What I would consider as a weak point In your method, namely, the approach of the prospective member, will be largely met. If not entirely, by standing committees of your members working with your salesmen for about two hours one day a week. If any appreciable number of your mem- bership will continually and systematically give such valuable service, yours will be the best plan of membership upbuilding, for It will combine the can- vasser's Intimate knowledge of your activities and the i)ersonal Interest and Influence of a member In extending a membership Invitation. It will make certain an effective approach at great economy of time and under the best possible auspices, for the merchant or professional man will show some ap- preciation of the compliment paid by the call of one of his number, even though it be only to listen to the argument, and if that opportunity Is afforded. In- terest In the work \Nill be aroused sooner or later with resultant member- ship. Falling personal call, letters of Introduction from members for the can- vassers to present to others in the same or other Industries, carry great 206 METHODS OF ORGANIZATION AND OPERATION. weight, especially if the latter highly, though briefly, commends the activities of the organization, the benefits accruing therefrom and urges membership. B. Would not the efficiency of the salesmen be increased by the time given to collection of dues being devoted to membership soliciting? We have one man, one of our regular force, devoting his entire time to collections. Although membership dues represent a debt just as much as that incurred in buying merchandise, at the same time the efforts to collect can only be fol- lowed up to a certain point, and in this work we find other qualities than those usually possessed by the high class salesman are required. The Membership Solicitor "4. Th^re can be no real valid objection to employing membership solicitors any more than to the merchant using salesmen to market his pro- duct, other than that the task of the first named is the more difficult because membership is intangible. Members might question the policy of spending large sums to increase the enrollment, but there is no ground for reasonable criticism if membership upbuilding is self-supporting. Without the aid of members, however, membership canvassing is not productive of results worth while for the effort expended. "As you so clearly state, the membership solicitor must be a man of intelligence and tact, and possess the highest degree of salesmanship. Men of that type can earn more in mercantile pursuits than in our field, hence the personnel of a successful canvassing force changes frequently, as the men engaged therein come in contact with better opportunities. Such has been our experience. The cost of maintaining a membership field force is high, therefore, as it takes at least a month's training before a canvasser can effectively present membership and become even passingly familiar with the prospects. "5. Commercial organizations, especially those in the large centers, spend large sums in issuing literature, in publicity work, and in advertising in one form or another. While they are absolutely necessary, the paid mem- bership solicitor is the best possible means of calling attention to the or- ganization's aims and achievements, for he comes in direct contact with the principal — the i)erson your literature may or may not reach — and if the field representative is of the right type, a favorable impression has been given, or a misconception concerning the organization has been removed, or sugges- tions have been obtained worth many times the cost of the canvass, even if the solicitor is not successful in securing the membership. "A paid soliciting force of necessity must become acquainted with a large part of the membership, and in time nearly all the eligible members, w^ith the result that such solicitors can be used to great advantage, not only in intensive campaigns, but in interesting or arousing part of the mem- bership on any question of importance on which quick action is required. "In addition to different form letters, 'Greater New York,' our weekly publication, our Year Book, leaflet 'Things Done,' the 'Eligible Membership Directory,' a circular quoting city offi<»ials in praise of our work, and a leaflet containing commendatory press comments on our varied activities, are used to good advantage in maintaining and increasing the membership. Membership Arguments As to the work of "soliciting" I might say, gentlemen, that we have changed our plan within the last six weeks, so that METHODS OF SUSTAINING MEMBElRSHIPS. 207 the men seeking new membership have nothing to do with resignations or collections; we have a separate staff to handle that work — one man being engaged in calling on delinquents and looking after resignations, and two men devoting their time exclusiveh^ to sales work. Mr. Howard Strong, the Sec- retary of the Minneapolis Civic and Commerce Association, has this to say : "It is difficult to criticise your paper on the Detroit method, because after all has been said and done, you 'sold the goods,' and that is the thing which all of us are seeking. I will, however, make a few comments which may be a bit suggestive. And j'et while we all talk of 'selling the goods,' as a matter of fact the selling of memberships is quite a different proposition from the selling of the average commercial product. It is the business of the salesman to prove to the man to whom he is trying to sell that he is going to get something tangible out of the sale for himself. On the other hand, our answer to the man who asks: 'What am I going to get out of this?' is: 'If you are that sort, we don't want you in the organization ; the question is : 'What can you put into it for your town?' Now, it is more difficult for a paid salesman to say to a prominent business man a thing of that kind than it is for another member to say it. A member can go to a business' man and say : 'I am giving my time without cost, because I believe the organization is a good thing for our town. I believe you owe support to this organization and to the town, and if you are big and broadminded you will recognize that any- thing which means the development of our town means a return to us. It is up to you to oome in, not for \vhat you can get out of it, but for what you can put in, and show that you are broad enough to recognize that your om\ti growth depends upon the groAvth of the town.' It is very easy for the business man to turn down a salesman whom he knows is paid for what he is doing, while it is hard for him to turn down a member who occupies the same rela- tion to the community that he does, and who is giving his time because of his loyalty to his town. "It is true that you got 1,200 members in eight months, and you had a new building with club facilities as the strongest basis of appeal. Your total cost was $10,000. On the other hand, we got 700 members in less than six months at a cost of something less than $1,000, and as a byproduct we gave a very considerable education in civic affairs to our members who were on our membership committee, which, in my mind, is an important consideration. Nevertheless, neither your figures nor ours are conclusive. The second, third and fourth years, I think, would tell the story more completely. It is quite possible that you can keep on getting members at a faster rate with your method than we can with our method, and I am not at all sure but that at the end of the four years you would show a record ahead of ours. In other words, it is difficult to judge on one year's record for either method. We have a new organization and have not exhausted our field, therefore, the number which we secured this year is perhaps larger than the number which can be secured within the next few years. You have a new club house, and this is a very strong basis of appeal. Neither of us Is making a normal appeal. Three or four lean years would give a better comparison of methods than the comparison of a single fat year under the two methods. "My general inclination is toward the joint plan which you suggest, that is, the plan by which you propose to send out members with your solicitors. 208 METHODS OF ORGANIZATION AND OPERATION. This enables the business man who is a member to put it up to a man who is a non-member on the basis of loyalty to his organization and town, and at the same time it gives him an opportunity to fall back upon the expert salesman who knows the game and who can give an answer to every con- ceivable objection. I am coming to the notion that this, perhaps, is the ulti- mate solution. "I agree with you absolutely in the matter of delinquents. Except in unusual cases, members should not be asked to call upon delinquent members ; that should be left for employees of the organization. "To answer your questions specifically : "1 and 2. We have two or three men on our staff who do some member- ship solicitation. These men, however, see a very small proportion of pros- pects and the work is only incidental to the work of the membership com- mittee. "3. The weakest point in the Detroit plan is the financial cost of secur- ing new members. This is justified, however, if it can not be done for less. Another weakness may appear in the course of a few years if it is found that the members who were secured through 'salesmanship* do not retain their membership, as well as those who are 'sold' by members. This may or may not appear. "4. I do not see any specific objections to the employment of member- ship solicitors, provided they work largely in conjunction with members. "5. The strongest argument in favor of the plan is the fact that you got results, and that you can probably continue to get results, because your so- licitors are absolutely under your control and can keep at work while mem- bers are attending to their own business. Mr. Roland B. Woodward, the Secretary of the Rochester Chamber of Commerce, says: "First. We do maintain a membership secretary. He has no assistants except what would be given to hira in an organization like this at a time when a campaign is on. He is backed by a strong committee, the members of which he is supposed to get to work to aid him in every possible way. "Second. Up to date, this -work has not been satisfactory except in the campaigns that have been put on where the whole energies of the chamber have been turned to that end. "Third. The danger of your program and policy is that it may after a time lead the membership to believe that they are not actively to do that work which is being so competently done by a staff of employes. "Fourth. The greatest objection to membership solicitors is that they are likely to affect adversely the strong feeling of volunteer service, which is the best quality of many of our chambers. "Fifth. The very best argument in favor of membership solicitors is that they give direction to and train the general membership to efficient selling. "Your program has gone on so successfully that you must not be misled by its success and eliminate the many strong factors which your organization had at its service, namely, the inspiration of a new building, the best in the country ; the inspiration of great industrial and mercantile growth in the city, and the combination of forces that had not hitherto worked together." Mr. Munson Havens, the Secretary of the Cleveland Cham- ber of Commerce, savs : — METHODS OF SUSTAINING ME51BERSHIPS. 209 "Were you to ask me, however, for a categorical answer to the question, *Is the employment of solicitors practical?' I would hesitate. I believe there is nc department of an organization more governed by conditions peculiar to it than that of membership, and incidentally, few chambers give the matter the consideration it, the 'business' side, should have. "i or small organizations I am opposed to the employment of solicitors, on the ground that the smaller the community the wider the personal acquain- tance of the organization members and the better the esprit de corps obtainable tJirouj;h membership work by them rather than paid solicitors. The i)oint of cost is also important with small chambers, as the number of new member.-* i:^ach year is necessarily limited by the size of the city. The number, secured by solicitors, who could not otherwise be reached, would be too small to offset the expense of the soliciting department. "I have that same opposition, though in a less degree, to the employment of solicitors by larger chambers. There must necessarily be a lessening of interest in the actual campaign for new members when that campaign Is car- ried on by other than the membership itself, and sooner or later, perhaps when your solicitors have thoroughly canvassed the city, the loss of that feeling of personal responsibility may be felt. Perhaps I am much too conservative. Certainly there are at once two classes of chambers where solicitors may rea- sonably be employed, one, for example, the Merchants' Association of New York, where the size of the city puts a premium on the securing of members through personal acquaintance, and the other, chambers so long In existence that the city has been canvassed and recanvassed by the members themselves until the demand upon their time for such work Is too great to be expected. "Yet, as opposed to this latter situation, we have the example of Boston, where an enthusiastic membership committee has developed a new plan of a small central unit, each member of which attempts not only to secure new members by the regular methods of personal solicitation, but also to Interest a 'sales force' of other members working for him (a plan which promises excellent results), and where no paid solicitors are employed. 'But what actually counts are results, and your corps of solicitors seem& to be producing them. Besides your statement of a $30,000 annual income s-ecured at a cost of $10,000, and In addition a lessening of loss through delinquent collections, theoretical arguments fall flat. Even though you were to accept the theory of x)osslble danger In such a method over a longer period than you have employed It, your Income would have been materially benefitod through Its adoption. ••pJven considering that It is necessary to secure only four hundred mem- bers by our method to equal, in net Income to the chamber one thousand secured by yours, and with the probability that your yearly total will in another j'ear fall to that, there is left the gain through withdrawn resigna- tions, through delinquent collections, and through the psychological factoi- of an annual addition of one thousand names to the roster. The results of your eight months' work present a very strong argument for the employment of paid solicitors. "There is one other point which occurs to me, namely, the personality of the solicitors themselves. I can see where many attempts to Increase mem- l)ershlp would not only be fruitless In themselves, but would react against the organization because of the short-sighted economy of securing Inexperienced and low-salaried salesmen. "I think I have answered In a general way all of your questions, but for convenience will give them In order: 210 METHODS OF ORGANIZATION AND OPERATION. "1. The Cleveland Chamber does not employ paid solicitors. There is appointed annually a committee on membership admission, 25 to 35 members. One of the assistant secretaries gives about one-third of his time to member- ship work. "2. Our method is moderately successful. Frankly, the chamber has reached a point where an increase in the annual number of new members is necessary, but it is my belief that the membership committee will decide to adapt the Boston system to our use rathar than to employ solicitors. "3. With your records of results it is hard to point to a weakness in the method. I have outlined my feelings regarding the method in general. In your case at least objection would have to be theoretical. "4. The two greatest objections to the employment of solicitors are, to my mind, the loss of a feeling of personal responsibility on the part of the membership for the growth of the chamber, and the very great difficulty of securing solicitors who satisfactorily combine personality and efficiency. The next letter is from Mr. James A. McKibben, the Sec- retary of the Boston Chamber of Commerce. Mr. McKibben says: "1. Our plan seems to us to have been pretty successful, inasmuch as it has succeeded in building the membership of the chamber up from 2.693 in 1909 to 4.617, the present membership of the chamber. In fact, it would be entirely fair to say that it had succeeded in building up the membership from 1,464 to 4,617, because at the time when our committee on membership started on the work the combined membership of the Merchants' Association and of the former Chamber of Commerce (which was consolidated in 1909) was only 1,464. "3, 4, 5. Every chamber or board of commerce has in its membership men who are more efficient salesmen, both because of greater ability as sales- men and because they make the approach from a very much better angle than any membership salesman you can hire at a salary. It ought to be possible to utilize this resource of the chamber, and not resort to paid solicitors. Be- sides, human nature is human nature, and it is never eliminated in a member- ship salesman or anybody else. If a man is selling books or goods or member- ship in an organization he would not be human if he did not strain a point to get results. If he does this by representations, which the organization would, if it knew all about them, perhaps not be quite willing to stand back of — and the paid membership solicitor is pretty likely to do this to some extent — the result is inevitable. You have a disgruntled, dissatisfied member whose only asset to the chamber is the annual dues which he pays, and you are likely not to continue getting that many years. "We have recognized that danger in the work in Detroit, and not less fre- quently than twice a month, we invite all the new m^nbers to a luncheon conference, at which time the secretary, or some member of the chamber meets with them and tells them frankly just what we expect of them as new members, and what the work of the organization is, as well as what the work- ing organization of the new members is expected to be. "If, on the other hand, he is able to induce a man to join by his magne- tism and his skill in presenting the case, that is pretty sure to be a temporary state of mind on the part of the man. And beyond all this, is not a man much more likely, with the presentation of the same arguments and facts, to agree to become a member of an organization if these arguments and facts are pre- sented by a member of the organization who is giving his time purely as a METHODS OF SUSTAINING AlEJIBERSHIPS. 211 matter of public spirit than if they were presented by a man whom the man knows is paid to do so? And is he not much more lil^ely to remain longer as a member of the organization? "Our experience with membership committees has shown us that very frequently there is some weakness in their method of ai)proach, because the membership committee goes out, and many of them do not present the argu- ment at all. They merely say : "I say that the chamber of commerce is a good thing; now, take my word for it; sign your name on the dotted line, right there." "And they get the signature on the dotted line and away they go. Our experience is that our new members are better sold, and the proposition is explained more fully to a larger percentage of the new members secured by solicitors than is our chamber of commerce work explained by volunteer workers, going out as committees, although I don't for a minute want to be- little the work of membership committees. "I congratulate you on the attractive statement of the case for the paid solicitor which you have made. It is interesting to note, however, that the cost of the 'increase in annual revenues to over $30,000 was about $10,000.' In other words, the paid solicitors did business at a cost of 33 per cent of the gross receipts." Minimum Results — Maximum Cost I Avas only too glad to get a "rise" on that figure, because we purposely put the figure high. We have stated minimum results, so far as new members were concerned, and maximum cost, so far as expense w^as concerned, and we didn't take into account that the $30,000 of new revenue was new revenue from dues only. We have an entrance fee in the Detroit Board of Commerce of $25.00, and each one of the 1,200 new members secured since the first of January has been called upon to pay that 125.00 entrance fee, and the dues besides, and we figured our cost on the percentage which it bears to the entrance fee. This is what Mr. Will L. Finch, the editor of "Town De- velopment,'' says: — "Taking up your questions seriatim, and answeripg without very mature consideration. I should say that I see no points in the method employed by the Detroit Board of Commerce that could be classed as weak. Your most difficult task will be to get a sufficient continuity of service from your com- mittees who are to go out with the solicitors to make it as efficient in practice as you would wish. "Your second difficulty is to have these committees taken seriously. "I have never been able to see any objection to employing membership solicitors by organizations having a sufficient membership, sufficient funds and sufficient efficiency to make a membership in the organization a salable quantity. "Third. The argument in favor of their employment is first that a secre- tary should not be permitted to solicit memberships, because he is paid for doing a more important work. What is everybody's business is nobody's busi- ness, applies to this as well as to every other human endeavor. A member- 212 METHODS OF ORGANIZATION AND OPERATION. ship solicitor has a specific work to perform, and will give his entire time and thought to the work. "Fourth. In this question you have stated the crux of the whole mem- bership question. It is not likely that so long as the members of a commer- cial organization are human that that organization will ever sustain an in- creased membership year in and year out. Too much depends upon the per- sonnel of the adminis'tration forces of the organization, and too much de- pends uix>n the inclination of men to be apathetic about everything except their business. "No artificial means, even the employment of solicitors or the constant work of the membership committee will ever sustain the membership of an organization unless that organization is actually doing things and unless the membership is first made and then kept sufficiently appreciative, first, of the need of an organization, and second, of the necessity of the individual mem- ber giving of his time and service to the work of the organization. "Inasmuch as I have been thinking and working for the last fourteen years on the questions you have raised, I feel that any reply I could make to your inquiries in the confines of a letter must be woefully inadequate. It is a tremendously big subject, and in fact is the very essence of commer- cial organization life." Lucius E. Wilson, of the American City Bureau of New York City, says: "After reading your statement there can be but one answer to the ques- tion — so far as it applies to the Detroit Board of Commerce. Facts indicate that the employment of solicitors has been successful. However, the plan is not safe for adoption in all cities. The Detroit Board of Commerce is an old, well established, respected organization with a magnificent club house. It has established "something" to sell to prospective members. Its position is al- most unique among commercial bodies. I can not recall another commercial organization in the United States that possesses the same combination of civic activity, plus complete club accommodations. This is a sort of answer to question number one in your letter. "Question number two says: 'What do you consider the greatest ob- jection to employing membership solicitors?' The fundamental trouble with the plan is this: 'The solicitor does not have back of himself the tjremen- dous influence of an aroused enthusiastic public opinion focused upon board of commerce enlargement during a specified time. In other words, the em- ployment of membership solicitors who peg away throughout the year can not produce the results that are obtainable by a well -organized membership campaign. In your owm case, seven hundred and twenty-five members came into the organization during the month of March. The warmth, enthusiasm and encouragement generated in that campaign disseminated itself through the business puhlic of the city. It made boosters for the board of commerce. It put the organization definitely and persistently in the public eye. It laid the foundation for the success of your membership solicitors.' Another diffi- culty to overcome in the use of membership solicitors Is the human problem of finding the right sort of men. I personally think the field representative of an organization like the board of commerce ought to be a highly trained man, competent to impress his personality on the biggest business men in the city.' Such men are scarce and high priced. I don't believe that the produc- tion of a certain number of new membership applications is in itself a suffi- cient justification of the employment of a solicitor. I would want to know METHODS OF SUSTATNING METVIBERSHIPS. 213 just the impression he left among the men whom he failed to sign as well as among those he landed. "Question number three asks : 'What do you consider the best argument in favor of their employment?' Their use as collateral to the general re- habilitation campaign is the best argument for them. In a city of the size of Detroit it is always necessary to have some man or men as membership secretaries who will adjust threatened resignations and other misunder- standings with members. "The fourth question, 'What plan would you suggest that a commercial organization should pursue in sustaining and increasing its membership year in and year out?' demands a book on the subject of managing chambers of commerce. From me it would bring forth a 'dream' that I am entertaining. Some day it is going to be realized. It will be a chamber of commerce that will so completely serve the needs of the community that normal-minded men will support it as naturally as they do their own families. To that end cham- bers of commerce must (a) At regular intervals make big plans that will re- quire the cooperation of the whole city. "(b) — ^Through a medium of a well-organized campaign focus the city's attention upon one plan in such a way that it will lead to accomplishments. "(c) — ^Not depend upon the secretary and his assistants to perform ex; traordinary or unusual tasks, but to employ expert outside assistance to carry through big movements like charter reform, charitable and philanthropic movements in connection with the business public, industrial or commercial surveys, municipal research, city planning movements, vocational education, together with the articulation of the employer and the employe, etc. The secretary would, under this arrangement, be the administrative head of the great organization that would determine the order in which large public move- ments would be presented to the city. He would tell whether municipal re- search should precede an attempt at charter reform, etc. He would dictate the order of community procedure. In short, he would be a man of supreme influence in the community instead of being a clerk. When this conception of community leadership finds its way into the minds of secretaries and di- rectors of chambers of commerce, they will have advanced to a point where they can justly claim that the management of a commercial organization is a profession and a science. C. S. Whittier, Membership Secretary of the Boston Cham- ber of Commerce, says :- — "All of our bills go out on January 1, so that is the natural starting time for the new committee. It has been the usual custom to begin with a small number of men, some of whom are brought over from the committee of the year before, and the first few meetings are intended to be almost wholly of an educational nature. Some of the officers or directors meet with the committee, tell them what the chamber has done in the past year or two, why it took such and such a stand on imx)ortant matters, and answer all questions which occur to the new members. This is continued frequently throughout the year. "Furthermore, I have plotted curves, showing the progress of our mem- bership work since 1909, the comparative number of new members, compara- tive number of resignations each year, etc. All of this preliminary work is just what you would do if you were in the manufacturing busine^ and were putting a new crew of salesmen on the road. You probably would take them to the factory, show them just how the product is made, just why certain 214 METHODS OF ORGANIZATION AND OPERATION. policies have "been adopted, tell them how much business you must do in a year, and give them each their quota. "A word or two about the committee itself. We have been very careful in the selection of the chairman. We have had the cashier of one of the largest banks in New England, the vice-president of one of our large public service corporations; a very prominent lawyer; two prominent insurance men, who were great personal producers, and the sales manager of the second largest bakers' supply house in the United States. Each of these chairmen has been a most excellent salesman himself and has been able to 'drive' the other mem- bers of the committee, who also have been salesmen, primarily. "There are three things which the committee can do. First, get new members ; second, bring back members who have resigned ; third, in a very quiet and careful way help the membership secretary in collecting unpaid dues. The including of these last two functions in a statement of a member- ship committee's w^ork may, of course, be open to argument Often the best salesman loses his enthusiasm when he is continually running up against 'grouches' and dissatisfied customers. Therefore, we have been careful not to ask some members of the committee to handle resignations. We have to be still more careful in the case of unpaid dues. Only where a committeeman tnows the delinquent very well and would have more influence with him do we ever ask his help. "An effort is made to keep the committee stirred up by contests among themselves, and new additions are made throughout the first year as new members develop an interest in the membership work, so that when fall comes we have a fairly large committee, all of whom are well grounded in the prin- ciples and work of the chamber and ready for a quiet and persistent extra spirit at the end of its year's work. For this the secretary has prepared the usual prospect list, while the committee has suggested and planned the neces- sary literature and follow-up letters. "It has always seemed to us that where such a committee was in the field the secretary should do as little personal solicitation as possible. If a good prospect is turned in it is very easy to find someone who knows him or whose place of business is near him. This prospect feels that the chamber has a greater personal interest in him if a member gives up his time to talk things over with him. In the case of resignations, however, the secretary oftentimes is in a better position to look up the trouble or to present different jwints of view to the resigning member, and in the case of unpaid dues, takes almost complete charge of the work with the assistance of the cashier in the treas- urer's office. Speaking in general terms, our resignations are handled by the committee and Secretary jointly, and the unpaid dues almost entirely by the Secretary. James Reilly, Secretary of the Newark, New Jersey, Board of Trade, objects to the employment of membership solicitors on the ground that it has a tendency to take away from the prestige and commercialize the value of membership and im- pairs the standard of a commercial organization. He states : "Our board of directors maintain a standard by restricting membership so that when a man is invited to become a member he feels that an honor has been conferred." That sounds like a "silk stocking" organization. Mr. C. METHODS OF SUSTAINING MEMBERSHIPS. 215 R. Green, of the Ilamilton, Ohio, Chamber of Commerce, be- lieved that new members should be secured through the work of the membership committee, working once or twice a year in short, snappy campaigns. Through an experience of several campaigns conducted in Binghamton and Detroit, I found that when the campaign was over there were a great many business men who had been called on by the membership committee, and while these men were in a favorable frame of mind towards the chamber of commerce they did not sign applications. I never found a membership committee that was willing to take care of this follow-up Avork after the close of the campaign, and it is my experience that some paid member of the staff of a commercial organization should be definitely assigned to the work of fol- lowing up the w^ork of the campaign committee that was left only half finished. Mr. F. G. Morley, Secretary of the Toronto Board of Trade, answering the question as to the best method of sustaining and increasing membership, writes : "I know of no better plan of sustaining and increasing the membership than the one you have adopted in Detroit, viz., giving members semi-club ■privileges. This board has adopted the plan and we hope to get into our new quarters by January 1. I might add that since our intentions were announced new applications to the number of 150 have been sent in prac- tically unsolicited, and I feel sure that when our membership committee opens a short campaign in November we will likely get more members than we require and open a waiting list." J. Will Kell}^, Secretary of the Commercial Club of Topeka, Kansas, makes a criticism on the employment of membership solicitors that represents the views of many of those who wrote letters in answer to my baby "questionaire." "The greatest objection that I feel could be offered against it, is the fact that i>eople would be inclined to say that your soliciting committee or soliciting secretary was working entirely for his salary and that about all the commercial club was doing was raising money to pay its officers. This objection, I know, is offered against a secretary who makes any personal efforts to collect dues." For several years I entertained the same feeling, but I never yet have had any experience to justify the feeling. I have talked personally wdth many of the new^ members secured by our solicitors. I have talked confidentially wdth them, try- ing to secure criticism from them in regard to the method em- ployed. I have also had men follow up and call upon some of 216 METHODS OF ORGANIZATION AND OPERATION. the prospects against whom unfavorable reports had been turned in by our solicitors, and ever}^ man has looked upon our solicitors with the same respect that he would receive and listen to and give an order to the credited salesmen and representa- tives of any commercial organization approaching him with some article for sale. In Detroit, at least, I am absolutely satis- fied that the business men look upon the emploj^ment of mem^ bership solicitors as a perfectly logical thing for the Detroit Board of Commerce to have. All of our bu.^iness men recognize that it costs something to secure business, and they recognize that it will necessarily cost the Detroit Board of Commerce something to secure new members. Particularly in the smaller communities I believe that the secretary who is master of his job gives more to the community than he is paid, and that no man need be ashamed, apologize, or be over-conscious in his dealings with members because of the fact that he is on the payroll of a commercial organization. A great many secretaries will sympathize with Mr. F. N. Yorston, Secretary of the New Brunswick, N. J., Board of Trade, who says : "Will answer your first four questions bj^ stating that we do not maintain any membership solicitors outside of the membership committee, which com- mittee has never been of any real value along these lines." Mr. Thorndike Deland, the Secretary of the Denver Cham- ber of Commerce, makes a significant comment, saying: "I am in favor of the employment of men on the staff of a commercial organization to look after the membership, as this is just as necessary as a sales force in connection with any business establishment and the chamber of commerce should be the model institution of the city." E. M. Clendening, the General Secretary of the Kansas City Commercial Club, writes that not long ago he made a strong recommendation to his directors for the employment of a membership clerk at a regular salary, not for the purpose of doing away with the membership committee, but to utilize him in certain office Avork connected with membership. He desired a man of good address so that he could be sent out to visit concerns when the}' located and thus pave the way for the mem- bership committee. He states that he has been successful in having his recommendation adopted. He believes that in cities of over 150,000 commercial organizations could well afford to METHODS OF SUSTAINING MEArBERSHIPS. 217 employ one, and perhaps more, membership clerks who could be made use of in a good many ways. I like the idea of II. L. Lewis, the General Secretary of the Indianapolis Chamber of Commerce, who suggests the follow- ing as the best plan for sustaining and increasing the member- ship of a commercial organization. He says: "I can hardly recommend any plan for keeping and increasing the mem- bership of a commercial organization that will make a membership solicitor of every member of the organization. With every member in the roll of a solicitor, satisfactory results are sure to follow." On this subject Daniel Casey, the Secretary of the Haver- hill, Mass., Board of Trade, says: "Moses, Methuselah and Napoleon, with Caesar and Cleopatra thrown in for good weight, do not, I will bet a half shilling, know that is the best plan for sustaining and increasing membership." Mr. Casey clinches the argument in favor of membership solicitors with the following: "You are probably aw^are that some organizations are criticised because they devote considerable time to membership work, and the statement is made that they should lend their time to other channels. A professional solicitor would eliminate such criticism." Judgment of Smaller Cities Mr. J. R. Babcock, of the Dallas Chamber of Commerce, writes : My experience is that the best solicitor a commercial organization can send out is the boss man himself. I believe that the secretary can have better success than a committee, and am very sure that he can have better success than any other man in the office force. "However, as it is impractical for the secretary to spend his time solicit- ing and handle the work in the office, it becomes necessary to delegate his authority to others, either to the membership committee, or to a paid man on the staff. Between these two methods, as a general proposition, I believe the better result can be obtained from sending a man from the staff provided the man sent is in close touch with the work of the organization. "This latter requirement, in my opinion, can not hold where a regular solicitor is put on. The greatest objection to employing a regular member- ship solicitor is that he, of course, can not be in as close touch with the work of the organization as is some man who spends the larger part of his time in the office and is close up to the head man. "In a wholesale house a traveling salesman needs to know his goods. He needs to know something of the general policy of the house, but this does not change from time to time; at any rate, the changes are not great. On the other hand, the man who goes out to sell a membership in the chamber of commerce has nothing to offer in direct return for the prospective member, and can only sell that member a patriotic interest in the growth and pros- perity of the town, and at best only a limited amount of direct service. As 218 ATETHODS OF OR(?ANIZATION AND OPERATION. this amount of direct service will vary with each individual member, it is essential that the membership solicitor shall know with a fair degree of ac- curacy what the policy of the head or secretary of the organization will be towards this prospect after he becomes a member. "For these reasons it is next to impossible for a paid solicitor to secure members on the right basis unless he be very closely associated with the head of the organization and in close touch with the policies of the organization. We have sent out paid solicitors, had one man employed for six months, who has been president of the old commercial club some fifteen or twenty years ago. During the first few weeks he brought in good results from soliciting among his friends of former years. After this limited field was worked he was able to do practically nothing in the way of securing new members. "We have also tried the membership solicitation plan of having large committees with a great deal of enthusiasm, and while we secured a great many new members during these campaigns, have found that the percentage of holdovers was very small compared with the members that have been se- cured by the secretary direct or one of his men in close touch with the work of the organization." Mr. W. T. Corwith, Business Secretary of the Lynchburg Chamber of Commerce, says: "The chief danger is that an over-enthusiastic solicitor who desires to make a good showing will be tempted to overwork the local material, and in order to get them to sign up will hold out inducements which are not based upon a sound footing. The members secured in this way are sure to make trouble later on." We in Detroit had our membership solicitors work from a very carefully compiled list of prospects. Morning conferences are held between the secretary and the solicitors, and instruc- tions are given in reference to the method of approach which solicitors are to make to certain prospects with whom the secre- tary is acquainted. The solicitors make individual reports verbally at these morning conferences in reference to the talks which they have had with each man whose application they secure, and also with each man whose application they fail to secure. In this way we keep very closely in. touch with the sales arguments being used, and do not allow solicitors to hold out inducements not approved by the secretary. We have another check on this by holding two or three times a month conferences between the secretary and new mem- bers whose applications have been secured by the membership men, and then there is a frank talk between the secretary or other officers of the board with these men in regard to their relationship to the working part of the board. They are told what they can expect and what they can not expect. If there .METHODS OF SUSTAINING MEMBERSHIP. 219 are any cases wliere the solicitors have made any promises whatever, we endeavor to draw this out from the new members at these conferences, and we have not as yet found any instance in which we have been able to criticise the salesmen for the arguments they have used. When we first organized the work of our membership so- licitors we had them devote a certain portion of their time to collecting dues and calling upon members who had resigned. Very quickly we had to abandon this, as we found it greatly reduced the efficiency of the salesmen in securing new members. We then took one of the salesmen who had shown the greatest ability in handling collections and resignations and assigned him exclu-sively to this work. This proved to be an improve- ment over the old plan, but was not entirely satisfactory, be- cause in our morning membership conferences we found the salesmen not particularly interested in the reports and discus- sions between the secretary and these collectoi's. Recently we have entirely divorced the two, and the solicitors devote their time exclusively to securing new members, and their depart- ment is entirely distinct from the department handling collec- tions and resignations. Our experience in this respect is the same as that of the Merchants' Association of New York and the Association of Commerce of Chicago. When Do Solicitors Pay? How large a city has to be to make the employment of mem- bership solicitors profitable for a commercial organization is a problem I have considered in connection with this question. Kalamazoo, a city having from 40,000 to 50,000 population, made a three months' experiment with the employment of mem- bership solicitors and found it successful. They were particu- larly fortunate in getting a man especially qualified for this kind of work, but were unable to hold him. Their experience covered too short a period to justify any conclusions. Any secretary in considering the application of this method in a city under 100,000 could determine for the purposes of ex- periment whether it would be likely to be worth while or not by carefully preparing a list of the membership prospects in the city and studying the rate of growth. With this knowledge a secretary can estimate the percentage of sales that could be made if the commercial organization's message could really 220 METHODS OF ORGANIZATION AND OPERATION. he delivered to each of these men. It is possible for a man to intervieAv from five to fifteen men a day, out of which a good salesman should be able to secure from one to three applica- tions. Any salesman who consistently secures one new member- ship a day at |25 per year is doing good work. Sometimes they average better than this. In the summer months it is not pos sible to do as well. With this knowledge it is not difficult to determine whether or not it would be possible to keep one man occupied on this work on a paying basis for one year. In Detroit we started out with a list of about 6,000 reason ably promising prospects, in addition to which some 3,000 in habitants are being added to the population of Detroit each month. The Detroit Board of Commerce already has a member- ship which constitutes a little better than one-half of one per- cent of the city's population. Therefore, out of 3,000 new people added to the population each month, we ought to se- cure over fifteen new members. With these figures in mind, it was not difficult for us to determine that we could keep from two to ^Ye men engaged in this work the year round with profit to the organization. The same reasoning can be applied to any city, no matter what its population. NoAV the question put up to me was this : "Is the employ- ment of membership solicitors practical?'' I just want to tell you what my conclusions have been after our one year's ex- perience in Detroit, and with the light of these different sidess of the proposition laid before me by other secretaries, as they are now laid before you. As I have said, we don't consider that question the most important question. The question that we are really trying to answer in Detroit is: "What is the best method of maintaining and increasing our membership?" But answering just the question asked specifically, I am strongly of the opinion that the employment of membership solicitors is practical in the larger cities of the country. One objection has been raised by a number of secretaries, and that objection is, that they thought the cost too expensive. Again, I would like to emphasize my belief that salaries paid to membership so- licitors and to membership secretaries should not be considered as an expense, but as an investment from which definite results in proportion to the investment are expected; and when the results do not justify 'the expenditure the trouble is with the men and the management and not with the idea. We did not MEMBERSHIP DEVELOPMENT AND MAINTENANCE. 221 consider the matter of expense in Detroit. We didn't cliarge up that ten thousand dollars to expense. It was an invest- ment, to be judged entirely b}^ the results produced. It has not been a liability to our organization — it has not been an expense; it has been a source of income; without it we could not have succeeded this year in our annual program. Solicitors or Campaigns — Which? Now, I do believe in membership committees; I do believe in the value of volunteer effort; I do believe in campaigns. I feel certain that the employment of membership solicitors alone is not the best method of maintaining and increasing the mem- bership of a commercial organization. What we are seeking in Detroit and what we hope to be able to answer during the coming year is the best method of combining the work of mem- bership solicitors with volunteer effort sustained throughout the year and culminating in a membership campaign either at the end or at the beginning of each new fiscal year. And that is the conclusion that I have tentatively reached in regard to this question — that the next method is one that will some day be followed by membership departments of commercial organiza- tions, and that will combine the use of membership solicitors with the volunteer efforts of a membership committee, and the enthusiasm and spirit engendered by an annual campaign. I thought you might be interested in knowing the conclusion that I have personally reached on the subject. Membership Development and Maintenance By G. W. LEMON Membership, to quote from a letter I recently received from one of the older secretaries, is the "veritable foundation stone of every commercial organization and how to build it up and how to maintain it, so that the organization shall have the three essentials that every organization must have, is the question. These three essentials , as I need hardly remind the trained secretary, are : Numerical strength^ adequate financial resources and per^sonal service. To these three some associa- tions have aimed to add a fourth, democracy/^ Leaving entirely out of account any consideration of mem- 222 METHODS OF ORGANIZATION AND OPERATION. bership campaigns couducted by local or professional workers — I shall treat my subject under two heads : (1) How shall we secure members all the time — member- ship development? (2) How shall we retain thejn once you have got them — membership maintenance? I do not flatter myself that anything I shall say will be of the slightest value to executives who represent the large or- ganizations in our great cities. My point of view is frankly that of a man of somewhat limited experience who has spent the major part of his secretarial life trying to serve the small city organization. How membership is to be built up — that is our first ques- tion. Securing members during a w^ell-advertised "revival" campaign is not much of a job. The enthusiasm of the "teams" is contagious. The band wagon looks a lot more cheerful and inviting to the average citizen than the secluded corner and consequently scores of men join the knoAV not what^ for reasons they cotild not tell. And there you have your first big problem — ^the uneducated member. What an army they would make if we could only "draft" them out of our several organizations. And if some genius should succeed in "mobilizing" them I will give you one guess as to where the average secretary would assign them for duty — in these stirring times. Camp or can tonment would not have tliem very long, I venture to say. Converting the Unregenerate These men who do not know the first rudiments of modern commercial organization work; who do not understand the difference between a trade organization and one which seeks to serve the community; these men have bought and paid for something — your membership — and they demand value re- ceived. How are you going to give it to them? "Do something — get bus|y — put something over for the town," — that is what the average secretary w^ill tell me. It is the stock advice. And it is good so far as it goes — but it does not go far enough. Unless this man is shown — is "converted" if you will — unless you can broaden his vision to include the other fellow — all the "things-done-for-our-town" stuff, will not count with him one iota. "But why bother with him," another secretary admonishes. MEMBERSHIP DEVELOPMENT AND MAINTENANCE. 223 (He is the secretary who is always seeking the easy wa}^ out.) "Let him go and bend all your efforts upon getting in new members who Avill more than make uj) for this croaker." Ah, there's the rub ! Getting new members so long as those unregenerate fellows are knocking you is some task — is not that true? They are undermining your organization. They are helping create an atmosphere of captious criticism. Member- ship development depends, in the first place, upon good will; your croaking member is a source of ill-will, of disaffection. Convert him at all costs I How? Well, try getting him to Avork. Some one has said: "If you Avant to make a man like you, get him to do something for you/' Certain it is that no man is a real member of the chamber of commerce until he has performed for it some deed of useful service. The Next Step Having tried to create an atmosphere of good will and un- derstanding so that the organization's attempts to accomplish things shall not be discounted at the outset by ignorant an- tagonism — having cleared the ground, what is the next step? The next step, I believe, is to make hig plans for your city and A^our organization. Let your young men dream dreams and your old men see visions of the city of their desire. Most men like to be connected with something big and worth while, not to say heroic. May I illustrate what I mean? A wealthy manufacturer was approached by the secretary of a worthy philanthropic agency which was in need of funds for a piece of definite and much-ueeded work. The caller asked the rich man for $200. "No," said the manufacturer. "I am not interested." The social worker was nonplused for this man had been one of his chief patrons and he began mildly to expostulate. "What will that building you are planning cost?" the manufacturer suddenly asked. "Five thousand dollars." "What nonsense — to build a shack that will have to be torn do\^^l in a few yeai-s. Now look here — ^you go to your board and tell them to put $50,000 in their budget for that building — and I'll send you a check for half that amount. But you'll get none of my money for a poor, little measly proposi- tion such as you put up to me when you came in." 224 METHODS OF ORGANIZATION AND OPERATION. If you have a broad program — a strong platform — and are offering opportunity for individual effort, the men of your com- munity, who are not members of your organization, will want to come in. We must make our organizations the center of life and activity in our respective cities. If our commercial organization is alive and active we need not fear the forma- tion of duplicating organizations such as manufacturers' asso- ciations, retail and wholesale associations, traffic clubs, build- ers' exchanges, etc.; organizations which would distract the attention of our members, taking both their money and inter- est. Anticipate the need for such organizations, wherever pos- sible, and provide them within ^ or at least in association with^ the chamber of commerce. Some Methods The various methods of securing members are so well known that I doubt if much that is new can be advanced. Se- curing members by "revival" campaigns, by paid solicitors, membership committees, etc., — these things have been present- ed before and threshed out at our conventions. But accepting the dictum that "men need not so much to be instructed as to be reminded," let us briefly review and examine some of the methods in vogue. In the case of organizations in cities from 50,000 to 125,000 where an assistant secretary is employed, I believe he is usual- ly entrusted with the task of securing new members. As a rule the assistant secretary works with the bookkeeper on "prospec- tive members." A duplicate op triplicate file is made and, when ready, the membership committee is called and the list very carefully gone over. Dave Dickinson's name is given to com- mitteeman John Woolman but (one or two) copies of the card remain in the office to show what disposition has been made of the prospective member. The assistant secretary makes daily calls in the morning or afternoon for an hour or two either by himself or with a member of his committee. If the "right man" to reach Dave Dickinson is not on the membership committee, then some one else is drafted — may be an officer or director or the secretary. Some secretaries in the smaller organizations have, I fear, the wrong idea about personal solicitation of mem- bers. I have heard men remark that, it wasn't dignified for a secretary to solicit members or go out and try to convert a re- MEMBERSHIP DEVELOPMENT AND MAINTENANCE. 225 calcitrant member. I cannot agree ! When occasion demands I believe that the secretary ought to jump right in and do his bit for membership, not tyiifg himself up with the details, but ready to help out upon extraordinary occasions. From this survey one may deduce the following: Gather- ing all of the membership committee activities or "stunts'^ into one compact whole it is found that our composite mem- bership committee will meet at regular intervals, generally at luncheon; that it will receive and exchange membership pros- pects and swap experiences; that it will discuss new methods of reaching "hard ones;" that it will plan new arguments and improve old ones and go at it again with renewed vigor. It has been found wise to occasionally limber up the ora- torical guns and have membership luncheons or dinners. Bring- ing a fellow secretary to speak works out finely if the said fellow secretary is tactful, forceful, and above all, brief. I will venture to say this: That the average business man will not listen intently to any address for more than 30 minutes. Many a fine occasion has been killed by talk. Ahva3^s choose an athletic toastmaster — with more physique than eloquence — who can be trusted to keep every speaker strictly to the time limit. It is a good plan to put forth a little evangelistic effort at every public meeting. Extending the invitation to join will seldom result in a zero mark on your membership book, granted that your members have formed a commendable habit of bring- ing a friend or associate to every social event of the organiza- tion. But we miist press on to the second part of the subject: 71 ow to Keep Members Whoi Yoa Once Have Them — Memher- ship Maintenance. Membership lapses may safely be taken as the pulse of the organization. A certain shrinkage is inevitable, but when the rate is seen to be increasing it is time to stop, look and listen ; it is time to subject the organization to a searching enquiry and to seek for the disease of which the resignations and with- drawals are merely a visible manifestation. Recapitulation To recapitulate. The problem has been divided into two parts. In the first part huilding tip the membership is dealt with under the following heads : 226 METHODS OF ORGANIZATION AND OPERATION. (1) Converting the iinregenerate member. (2) Planning big things for the organization and city. (3) Various methods of hantlling membersliip work; (a) Paid solicitors, (b) Standing and special committees, (c) Sec- retary and assistant secretary. In discussing the second part of the problem, how to keep memhers when once yon have secured ihem^ the following points are emphasized : (1) Make the organization truly democratic. (2) Work constantly to increase man power. (3) Do not allow your board to usurp the functions of the committees. (4) Stick to the primary purpose of a house organ. (5) And most important of all, set your members to work. Elements of Membership Conservation By ROBERT B. BEACH Whfct;: IS the weak spot in your chamber of commerce? I am leading off with a frank question. Having the first op- portunity to answer, I will give an equally frank reply. The weak spot is the membership. You may disagree with me. It is my guess that you do. It is also my guess that I am right. There is no more important problem that comes to any of us than what we are pleased to call membership conservation. The resources, the man-power and the success of every chamber of commerce are bound up in it. There are just two reasons why most of us fail to give mem- bership conservation the attention it deserves. One reason is because it is in fact — though not in importance — a secondary matter. The first proposition is to build a chamber that is alive and on the job and does things. If that is done the membership will conserve itself. The other reason is that the problem of mem- bership conservation is exceedingly difficult. It is a whole lot easier to evade the issue than it is to meet it. It sometimes hap- pens that secretaries, like other physical phenomena, follow the course of least resistance. The selling of an association to its membership is a most undeveloped and under-rated science. ELEMENTS OF MEMBERSHIP CONSERVATION. 227 Wastage in this department represents a loss of energy that would wreck any ordinary business enterprise. Usually the so-called normal losses are too high and the reason they are too high is that a disproportionately large amount of effort to bringing a man into the chamber is made and a disproportionately small amount of effort to holding him there when he is secured. It is good to get members, but it is better to keep them. The getting of members is accomplished by effective salesman- ship ; the keeping of members is accomplished by delivering the goods and just a little more. Why Members Resign Why do your members resign? Did you ever catalog the reasons? 1. Because they get nothing out of it. 2. Because they cannot attend meetings. 3. Because they haven't time to be active. 4. Because they are not interested. 5. Because they have a grievance. G. Because they object to action taken. 7. Because they cannot afford it. Put all these reasons together and they reduce to one that contains them all : "I am out of touch with the chamber and the chamber is out of touch with me." That accounts for the grievance, and even for the "cannot afford.^' Because men forget grievances when they are in touch and they can afford the things they really Avant. Suppose for a moment we review the situation positively instead of negatively. Why do members retain their member- ships? What are the particular features of the chamber's ac- tivities that hold a member to the organization? There are five: 1. Achievements — The big. things you are doing. A cer- tain part of your membership is content to forget the other things, expecting no individual benefits, seeking no individual activity. These members are willing to give financial support as long as they are persuaded that good work is being done in their behalf. 2. Service — The direct aid you give to your members. To some this is the real basis of membership. They are not the altruists of your enrollment, they are practical men inclined to measure the value of the chamber by the frequency they have 228 METHODS OF ORGANIZATION AND OPERATION. occasion to make demands upon it and the promptness and liberality of the response. 3. Meetings — Source of inspiration and acquaintance. To not a few, meetings wre the association. Other benefits may be intangible, but the meetings are real. Personal contact cre- ates personal interest, the root of membership stability. 4. Activity — A personal part in the work of the chamber. There is no need to sell the chamber to the active worker. He measures the value of the chamber's work by the work he him- self puts into it. As long as he labors for the joy of doing and feels that his labors are prod\ictive, you can put him down as a man who himself is thoroughly sold and who in turn will sell others. 5. Contact with the chamber. Kot all the members can be employed at one time. Not all can or will attend meetings. But there are other points of contact. Those members who cannot or do not share personally in the day-to-day activities, are called upon for advice ; they are given special assignments ; they are kept informed; they are made to feel that they are necessary to the chamber. So long as that feeling continues, they are fixtures. So soon as that feeling ceases they become floaters and are in danger of drifting aw^ay. How Members Are Retained Using these five principles as a basis for our deductions, the elements of membership conservation may be expressed very simply in this way: 1. Keeping your members informed. 2. Keeping your mem- bers satisfied. 3. Keeping your members interested. 4. Keep- ing your members busy. 5. Keeping your members in touch. Membership conservation is an idle occupation unless there is back of it an effective organization and real achievements. We are assuming, not unreasonably, that each of our chambers is well organized, well managed — we admit that — and is per- forming a worth-while service in the worth-while way. Let us imagine that you, in the spirit of candid explora- tion, are making a little journey into the life of a compara- tively inactive member. At .the outset — for all members must begin — ^you are urged very strenuously to join the chamber. You are flooded with letters, pamphlets, and a variety of print- ed appeals. You are beset with telephone calls and personal in- ELEMENTS OF MEMBERSHIP CONSERVATION. 229 lerviews. You sign up. Suddenly this vast interest ceases. You are notified of your election by a stereotype form. At regular intervals you receive bills for dues. You receive printed notices of meetings, which — since you are not in the habit of attending — are glanced at and laid aside. You receive copies of bulletins, the contents of which you soon take for granted and "approve without reading." You receive an invitation to the annual banquet, which, because it is somewhat out of the ordinary, you accept. You put on your dinner coat and go. You are greeted at the door by a recep- tion committee, whose cordiality is vigorous but impersonal. You find that most of the people you know have table parties of their own and you are turned over to a group which with every intent of being sociable still has interests that concern themselves more than they concern you. When you receive notice of the annual election you refrain quite properly from voting because it is more or less of a for- mality and the result a foregone conclusion. When you see the chamber mentioned in the morning paper you are reminded not unpleasantly that you are connected with it. You have never had an impelling desire to sacrifice time and effort and are reasonably complacent in being let alone in the matter of com- mittee service. Y^'ou have a vague idea that there are a lot of young fellows who do the running about because they like that sort of thing. Occasionally you get a request by form letter to go out and get a ncAv member. You mentally resolve you will comply when favorable occasion offers. The occasion does not happen along and the matter slips your mind. You are not displeased or dis- satisfied. Probably you are happy that the chamber makes such slight demands upon you. Y'ou had apprehended that it would be more exacting. Sometimes there come to you matters of public moment that are not as they should be. You wonder why somebody doesn't do something. Perhaps you wonder why the chamber doesn't do something. It may be that you are impelled to offer a suggestion which you forward by letter. In a few days you receive a profuse note of thanks from the secretary, who is doing his blessed best to be appreciative. The suggestion he tells you has been referred to a committee for consideration. Time slips by. You forget about it. So apparently does the 230 METHODS OF ORGANIZATION AND OPERATION. chamber. You take all this as a matter of course. You go on paying your dues. You are a member in good standing. Ev- eryone is content. The Unknown Member Here is a member who, so far as 3 our records may show, is as good as the best on your books, yet who unbeknown to you and unbeknown to himself, is in a dangerous condition. If exposed to the contagion of discontent he would quickly con- tract the disease. He is an element of weakness, not a source of strength. This member is summoned by the president of the chamber to serve on a committee that is to receive a distinguished guest of the city. The secretary drops him a line, tipping off a busi- ness deal that he may be interested in following up. He is in- vited — and responds — to an invitation to "sit in" with the board of directors at a conference that has to with the chamber's program of work, and he comes awaj- feeling that he has had a glimpse of the inner works. A member of the booster com- mittee calls him on the 'phone and gets him to bring a mutual acquaintance to mid-Aveek luncheon. He finds springing up within him a desire to have more to do with the chamber of commerce and its activities. How can you make the individual member an inseparable part of the chamber and its work? The answer is — repeating Avhat we have called the elements of membership conservation — by keeping him informed, satisfied, interested, busy, in touch. But how keep him informed? How keep him satisfied? How keep him interested? How keep him busy? How keep him in touch? By studying every possible point of contact. By choo- sing those which seem practical. By laying out a program— which we may dignify by calling a program of membership conservation — and making that program the basis of your re- lationship with your members. I do not maintain that one program will meet the needs of all chambers. T am inclined to believe that one program will meet the needs of but one chamber. In no two particular or- ganizations are conditions just alike, but I do believe that the same principles, if sound, will work under all conditions and that a program can and must be developed for every chamber that will demonstrate its value by the acid test of dependable results. ELEMENTS OF MEMBERSHIP CONSERVATION. 231 Consider for a moment the possible ways of keeping in touch with the member. By meeting him — the most desirable form of contact. By telephoning him — possibly next best to seeing him. By letter — personal, of course. By printed com- munication, impersonal, but direct. By general printed mat- ter — bulletins and the like. Through the press. And in the mass, through gTOup meetings large and small. Observe, there are various avenues. Answer for yourself the question how many avenues are you employing. How ef- fectively are you using them? As a matter of fact you could take almost any one of these means — letter writing for example — and so develop it that it would accomplish all five of the ele- ments of membership consei-vation. Program of Membership Conservation I. Signing the Memher. a. Selling campaign based on service of chamber to com- munity. b. "Why you should be a member,'' printed, helpful to the man who sells and the man who signs. c. Send him between time of application and his election the graphic story of the chamber — what it is. how it works, told in charts — something he will observe because it is different and will understand because it is clear. II. Introduction to Chamber. a. Three letters following election: One from secretary, one from chairman of membership committee, one from president. b. Definite appointment to visit headquarters — not an in- definite "sometime." Appointments may be grouped. c. Luncheon appointment at meeting of chamber with representatives of personnel committee. d. Personnel record indicating what he is interested in and what he is qualified for based on interview above. e. New members' conference, arranged when ten or a dozen new members can be brought together with a few old-timers and members of the board. A busi- ness meeting to discuss chamber activities and gen- erate ideas. 232 METHODS OF ORGANIZATION AND OPERATION. III. Keeping Him Active. a. Personnel record should be supplemented with service record. The two may be combined. Service record keyed, so that committee assignments can be made with the view to giving the largest number an op- portunity to work. b. Special assignments — a variety of "small'' jobs — dis- tributed as widely as consistent. c. Kecord of attendance with a round-up of absentees, say four times a year (or oftener if you like) with a personal reminder, not of their non-attendance, but of the particular reason why they are wanted at a particular time. IV. Information. a. A monthly news-letter — not the usual bulletin — some- thing different — an intimate letter concerned solely with the chamber, but with the brevity and direct- ness of news. Four pages, no more. Need not con- flict with the weekly or monthly journal if the cham- ber prints, one. b. At convenient and rather frequent periods devote five minutes of a general meeting to the report by a com- petent speaker of some specific achievement, coupled with message from membership committee. c. After completed tasks, a letter to those particularly in- terested both on membership list and permanent prospect list. d. Also the usual publicity channels, including the press. V. Consultation. a. Periodic membership conferences — limited groups, gen- eral in character ; discussion of current and proposed activities with well-informed discussion leaders. Such conferences may well have the definite purpose of contributing to the general program of the cham- ber. b. A systematic plan of writing to members for expres- sions of opinion, advice, suggestions. Some of these expressions may be published to advantage as inter- views. ELEMENTS OF MEMBERSHIP CONSERVATION. 233 c. An annual or biennial referendum — chamber activities — not recommended in all cases, but highly advan- tageous in some. d. Sub-committees of personnel committee, who will sit down at frequent intervals in groups of two or three with members who have "ideas." Never regard ideas lightly — something may occasionally come of them. VI. Service. a. Determine by record what portion of membership fails to use various services which chamber performs. Re- gard these as "service prospects" and organize a mildly insistent campaign (correspondence prob- ably) to get them coming to the chamber for what it can give. b. Business "tips" to members — advance information they use to advantage — is outstanding evidence that the chamber is on the job. c. Advertise "privileges of membership," referring pri- marily to service. The reaction on the secretary is good ; it may lead to improving facilities for service. VII. Terminations. a. A resignation card so devised that you will have an absolute record of the effort made to reinstate, to- gether with reasons and dates — the basis of effective follow-up. Accept no resignation without a com- plete record that shows justifiable cause or a hope- less case. b. Where the cause might have been corrected, take pre- cautions against a "next time," and thus profit by your loss. c. The only termination that the secretary may regard as fully justifiable is termination by death. A member who dies in good standing has given to his chamber the "last full measure of devotion" and is entitled to a becoming obituary. There, gentlemen, is a program. Not necessarily a pro- gram for you ; not necessarily a program for me. Nevertheless a program which will get results. 284 METHODS OF ORGANIZATION AND OPERATION. Membership Methods in Small Organizations By J. P. HARDY Second cousin to the financial nightmare of the chamber of the small city is the difficulty of interesting and getting the active cooperation of its members. Many of the causes that make financial problems difficult of solution are responsible for this difficulty also. The manager of the branch office, whose real interest lies many miles away in tlie home office, is usually a difficult subject; he is a salaried employee and owes his duty, and too often only duty, to the corporation which pays his salary. He probably joins the organization as a member and when his dues are paid is satisfied that he has done his full duty — nor is he alone in this respect in a small city. The average business man — having so much detail to attend to in his own affairs — finds little or no time to devote to the affairs of the community; that is to say, the real big men in small communities are very apt to limit their support of the chamber to the payment of dues. In response, however, to the question, "What do you regard as your most difficult task?" six cities say, "Getting successful committee meetings,'' seven say, "Keeping members interested/' one says, "Keeping retailers interested," two say, "Satisfying the knocker." This I submit as evidence of abundant lack of cooperation and, therefore, of personal service. Some of the answers to my inquiry throw, I think, some light on this matter of personal service. There is evidence enough to demonstrate the fact that in small communities the intimate acquaintance existing between the members of the organization often acts as a hindrance to really efficient com- mittee work. A knowledge of the limitations of your neighbor often prompts you to belittle his efforts — or refuse to sanction his appointment for committee service, believing him incap- able of delivering the goods. Again the answers to the query relative to cooperation on the part of the city government is illuminating on this question of personal service. Eleven cities admit that this cooperation is lacking in small communities. The individual is generally in close touch with the affairs, poli- cies and sentiments of the city administration and aligns him- self closely with one or the other wing of the city government — a specie that usually has at least two wings — as a result of MEMBERSHIP METHODS IN SMALL ORGANIZATIONS. 235 which questions affecting civic improvements, or any matters affecting the policy of the city administration, too often find the commercial organization hampered in its effort to effect a reform or promote an improvement, because of the individual alignment to which I liave referred. These, in brief, are to my mind the real difficulties of the small city organization. Let us now turn our attention to the constructive problems that engage their attention and which must be and are being solved despite the obstacles above referred to. Demands of Members Now a few words as to the demands that members make on their organization. It is, I think, an invariable rule that those who give the least personal service are the loudest in their demands for organization accomplishment. Small cities usual- ly have insatiate appetites for growth ; the quickest method of inducing growth is undoubtedly that of bringing in manufac- turing enterprises. The usual and most insistent demand, therefore, is for factories — a demand that is extremely difficult to satisfy — and one that it is not always wise to heed too close- ly. The demand for protection is probably next in order. This demand is negative in its make-up — one that asks of the associa- tion that it make no effort to bring in competitive business.. This, though not usually as common as the other, yet is, I think, one presenting greater difficulties of solution. Let me illus- trate: You have, we will say, one wholesale grocery house; you and your committee know that the field is large enough for two, and that the second will stimulate the business of the older house, rather than discount it, on the theory that the larger the market the more buyers, but you can't expect the old house to see it that way. And here you have a real job — one calling for a fearless policy of progression. Go ahead and get your second house — the management of the old house will thank you some day if you succeed. These two are, I think, the demands that we have with us all the time. There are, of course, many others infrequent in their recurrence — but just as troublesome. There is the demand for service to the member — purely personal — often impossible, and generally unreasonable. The demand T mean of the fellow who wants to be the first to be let in on a deal or who won't join a movement unless he is afforded some special privilege that if given him must be denied to others 236 METHODS OF ORGANIZATION AND OPERATION. This variety of demand requires careful handling, a lot of diplomacy, and above all firmness. These demands on the association are, I believe, more acute in proportion to the size of the membership and the population of the town — the smaller the town the greater are the difficul- ties along this line and the bigger the task of solving them. Finally there is, I believe, no panacea for the relief of or- ganization troubles any more than there is any unfailing recipe for working out its problems — local conditions vary to such a degree that the rule which works well in one place will fail in another. The chief task, I believe, of the secretary of a small town organization is largely that of educating his people; to strive to do all that is expected will usually spell failure — the selection of the effort that will produce real good to the commu- nity and laying stress on that one effort — in other words, lay- ing out a small program and doing it well and thoroughly, while it may not appease the appetite of the average member during the constructive period of the work will, when the job has been accomplished, yield a greater return than that of the ambitious program that keeps everybody on their toes for awhile and final- ly lets them down when it fails. Sustaining the Interest of Members By JAMES A. McKIBBEN We tried in Boston in 1913 one experiment, devised by our versatile membership committee and assistant secretary Whit- tier. AVe had been conducting a limited number of industrial excursions — that is, "tours" of members through notable in- dustrial establishments in and around Boston. They conceived the idea of conducting some "industrial trips through the works of the chamber.'' Perhaps a very brief description of the situation which made the committee on membership think this experiment ad- visable would be interesting to you. The position which the chamber and which certain officers of the chamber (not always with the authority of the chamber) had taken in regard to a certain important matter was strongly resented by certain members — not only because it was against their own personal interests, but because they sincerely believed that bad judgment MEMBERSHIP METHODS IN SMALL ORGANIZATIONS. 237 had been exercised, and that the position taken was not in the interest of the public as a whole. When this feeling was at its height, the time for electing directors arrived; and there was a strong opposition ticket, with a strong and active group of members of the chamber back of it, put into the field. The prophet of calamity for the chamber was abroad in the land, and there was real anxiety as to the final outcome. The situation was one Avhich might very well discourage any committee on membership; but the effect on our committee w^as to make it decide that the time had arrived to put on a little more steam. We do not believe very much in member- ship "campaigns'^ in Koston, but the situation at that time seemed to the committee on membership to make one advisable. Its members refused to be drawn into the controversy in any way ; but instead of going on in the normal way, the committee instituted a campaign for new members, and in two wrecks se- cured the applications of 367 men — and without the payment of a single cent to paid solicitors. Now, these men came in, in December, and, joining as they did at the end of the year, it cost them a very small amount; but a bill for tlie whole of next year's dues would in the natural course be sent them promptly on the first of January. The committee on membership had noticed that if a member under- stood the objects and field w^ork of the chamber and knew Avhat it was doing, he was not likely to drop out of the chamber. It, therefore, wanted to get them informed about the chamber, and conceived a plan for doing it. These new members were asked how many of them w^ould be interested in making "tours" through the chamber of commerce. Over 200 wanted to. They were divided into groups of 25, and an old member of the cham- ber put at the head of each group. Each "tour" consisted of a meeting of two groups at luncheon (never the same two), so arranged that before the "tours" were finished each member of any particular group had met the members of every other group and thus had, within a few weeks, as a result of his join- ing the chamber, considerably widened the circle of his ac- quaintance. These industrial excursions differed from the others, in that instead of taking the men to the factory, ex- hibits from the factory were brought to them. At each meeting some officer of the chamber and two chairmen or representa- tives of important committees gave short, snappy, intimate ten- 238 METHODS OF ORGANIZATION AND 0PERATIOx\. minute talks ou the chamber and some of the important pieces of work upon which it was at that time engaged. The effect was electrical. Of those secured in this campaign, a much larger percentage stayed in and paid their dues than we had expected. The prophet of calamity, by the Avay, did not "make good." Our resignations this year, instead of being enormously larger, as had been predicted, were 25 per cent less than the preceding year. The Fourth Essential to Sustained Interest All of these latter features are valuable, not only as a means of conveying information to your members, but because when the members who take part in them get in with the crowd, they have a natural tendency to go along with the crowd, and also because they are to some small degree examples of the fourth, and remaining, gTeat main support of a strong and lasting in- terest on the part of your members. Granted an efficient organization, a correct understanding of its proper function and field of work, and efficient agencies for keeping in close touch with your members and of keeping them informed of what the organization is doing, the fourth and last essential seems to me to be to get just as many of your members into the work as you can — every single one of them, if possible. Practically every member of an organization wants to take part in its work — or thinks he does. Experience will convince you that a large portion will not do anything which involves much time or effort on their part ; but they will come to a dinner or luncheon, or perhaps an outing or an industrial excursion. If that is the most you can get them to do, get them to do that —and then indulge in what the military men call "sniping" (picking off the exceptional man as he is observed here and there), the only difference being that they kill the man off, and you, instead, make him a "live one." Many valuable recruits for real, active service on working committees can be obtained in this Avay. This fourth fundamental seems to me quite as important as any of the other three which I have ' mentioned — possibly the most important of all. People appreciate things in this world very much in proportion to the extent to which they put them- selves into those things. There are in every organization many REBUILDING AN ORGANIZATION. 239 men never discovered by its management, who are willing, even anxious, to do real work if they are given the opportunity to tackle some object in which they are interested, and believe they can produce results commensurate with the time they put into it. No organization utilizes more than a fraction of the "man power" available in its membership. I have pointed out only one of many ways in which men of this character may be discovered. Rebuilding an Organization By PAUL V. BUNN "What is a chamber of commerce, and what is it for?" I have tried to write down one paragraph, giving as well as I can what the proper definition of a "chamber of commerce" should be. "It is an organization of business and professional men, who, as individuals, believe in their town and their commu- nity, and Avho are, therefore, willing to support the organiza- tion Avith their knowledge, their personal service — and their money." "A chamber's sole excuse for existence lies in doing the greatest good for the most people, in civic, commercial, indus- trial production and transportation affairs; in rendering serv- ice which will help tlie community, whether it knows it or not; and in handling matters of general interest, which ordinarily no individual Avould attempt, and which he could not handle if he should attempt." That is what a chamber of commerce should do in order to obtain the greatest success. Now in carrying on its work any chamber is liable to fall into, or unwittingly drift into, some sort of a rut, which may impair its usefulness as a cham- ber, and that had better be avoided. What are the principal kinds of these ruts? I have listed seven of them. The first one is that a chamber may serve only a limited group ; Second, the chief aim of a chamber may be to pile up a surplus. I do not see that a chamber of commerce needs any surplus. Third, it may have a small income; its membership (or contributing forces) may be "tight-wads" who love incom- ing money but have no respect for spent dollars ; men who pay no attention to the human element. Fourth, it may take biased viewpoints on all sorts of popular questions. Fifth it may 240 METHODS OF ORGANIZATION AND OPERATION. require all its work done by its office staff, instead of having a staff that gets its members to work, thus educating them to community affairs. Sixth, it may be merely a booster club, shouting Avhat a fine town it has, whether it has a fine town or not; inducing industries to move in regardless of their subse- quent fate. Seventh, it may strive to get, instead of to serve. There may be dozens of other ruts, but those to my mind are the principal ones that affect the commercial organization that fails of success. If these are the worst ones and if the definition above given of a real chamber of commerce is the cor- rect one, how can we become the one by avoiding the other. Here is where we leave the abstract, and get down to the situa- tion as it developed in St. Louis. It was, rightly or wrongly, popularly held to be a close corporation, run and controlled by a limited number of firms or individuals and people were becoming more and more restive about it, and felt less confi- dence in it as a helper of their own community affairs. It was regarded as a self -perpetuating institution. It was even pub- licly stated that one man had named the president for ten years successively ; and it was felt that the membership it had, did not have a look-in at all. Democracy Established But, a reorganization followed. Democracy was estab- lished. Soon the public began to realize that the chamber doors were wide open for service. We moved into new quarters twice as large as the old, established three new bureaus: Member- ship, publicity and industrial, the last of which had previously been a part of another department ; and we began to deal with important business matters of the community — not political — which hitherto had been deliberately sidestepped. It may be interesting to know something of the traffic on the Mississippi River, for the last 28 to 30 years — the greatest body of water in the world — that river carries about one million tons of traffic a year, while the Rhine, but a fraction of its length, far smaller in width and draining far less territory, carries Mtj million. We went to work to revive that river traf- fic. We took hold of it progressively with the help of the other organizations up and down the river, especially at New Orleans. Under the old regime that would not have been attempted, be- cause the railroads were against it. \ REBUILDING AN ORGANIZATION. 241 The next thing we took up was to remove the so-called "coal arbitrary." We have the biggest soft coal deposits in the country just across from St. Louis and the railroads have been for years hauling this coal from the mines to East St. Louis for $26.00 a car, regardless of the distance from the mines, but to get that same car hauled one-half mile farther across the river, St. Louis has had to pay flO.OO extra tribute money to get that coal across the river. Imagine fighting that proposition. The chamber took hold, and I may state confidently that we expect to get a decision upon this matter before the first of the year. It is now before the Interstate Commerce Commission with all the testimony. The next one of this class of ruts was a strike on the street railway system. The city officials had done their best to get the officials of the railway company and their employees together. They would not speak together. The chamber got them togeth- er in its offices about 4 :00 o'clock one afternoon, locked them in, and at 10 :00 o'clock they came out with an agreement. So the public began to see the chamber was taking up things for the good of the public. It was easier to get members than be- fore, when we had to overcome prejudice against our previous association on the part of the people, who felt it had not been run for the wider interests of the city. Later throe additional new bureaus were added: The Junior Chamber of Commerce Bureau, the Safety Council and the St. Louis Furniture Board of Trade. The junior chamber is made up of young men eighteen to 28 years of age, and they are all in business, all interested. The bureau has 700 members, each paying |6.00 yearly in dues. These young men are going to give the chamber the material in later years to make good ; and, if the chaml)er does its duty by them, they will be better business men. The tendency of the average man is to think in terms of the individual, instead of in terms of the community. We have a habit of mixing altruism and selfishness, and the mixture is not standardized. Some people are nearly 100 per cent selfish, I am sorry to say, some 90 per cent, 70 per cent, 50 per cent, and so on, down to the few who are 100 per cent altruistic. But there are few in that class. It is an unfortunate fact that it is always the minority, the few, that will take action in a way that will benefit the community regardless of their own personal interest. 242 METHODS OF ORGANIZATION AND OPERATION. It is easy to find good arguments in favor of the thing which means dollars to us. That is, perhaps, one of the rea- sons why the average chamber of commerce has only twenty to 30 per cent of the population who should be eligible pros- pects. And many of those that do join the chamber are under a misapprehension. They think that as soon as they sign their cards they are going to get some business from the chamber, so that the profits from that business will pay for the dues in the chamber, and when they find that out, they become among those that furnish a large percentage of membership losses. Perhaps that is not true, but that class furnishes a large pro- portion of lapses in membership. The Selfish Member A man came into my office the other day and said : "I am not going to renew this membership, because I don't get enough printing from you. I have got to have enough printing from you to pay for my membership, in order to keep it up.'' "Write out your resignation," I said. He began to see light, and came back. It showed the trend of his mind. He wanted a fcAV hundred dollars' worth of printing trade, to make fifty dollars' worth of profit to take care of his member- ship dues. Real production is confined to products of the soil, and the waters, and the mines, and the forests. Everything used has got to come from those sources. If a man manufactures axes, he must have the raw ore to make them from ; if he manu- factures cloth, he must have the raAv cotton, raised in the field and picked and ginned, in order to make his product. Many times this manufacturer is liable to think he is a producer, but he is, in fact, a transformer. Likewise the man who distributes, the wholesale hardware merchant, or the jobber who sells the axes or the cloth to the retailer, may get the idea into his head that he is producing something, when he is in reality only a distributor of the products of the soil, the mines and the for- ests, put into shapes which he can sell to retailers and con- sumers. Our banks with their millions of resources — what do they produce? Nothing. They loan you money ; establish debits and credits on slips of paper. But if it were not for the pro- ducer, they would go out of business, all of them. We must teach the producer he must do things better than REBUILDING AN ORGANIZATION. 243 he has done before; and he must no longer ignore the sources of supply. When production ceases, our business ceases. When production is low, our business is low. The manu- facturer and distributor will have nothing to manufac- ture and distribute ; the transformer nothing to transform, and our bankers^ debits and credits become worthless scraps of pa- per. Cities live and trade upon the surplus of the producer. Down at Wall Street they trade on the surplus made by our producers over and above what they and their families require. That is all Ave have to trade on. Why dilate on this point? Simply because we are talking about re-building an organization, and that, among others, is a thing we have got to take an interest in. Rebuilding an or- ganization depends on getting the right idea of things and sell- ing that idea to your community as an important thing to be done. That is a great deal better than going around begging a man to join your local chamber because you want him to. That is the poorest reason in the world Avhy any man should be asked to join a chamber of commerce ; as S. C. Mead said : "All membership work is worse than fatal, unless you have the goods to deliver ; unless you have an organization that is doing things, and upon the basis of the new membership and the rev- enue derived therefrom, will continue to do things that are worth while and useful to your community.'' It is a question of salesmanship ; and the best salesmanship is that which sells the customer what he really needs. We have not tried the intensive campaign. But we have been working along the lines of the "still hunt" campaign ever since I have been there. We have a membership board, and w^e got a heavyweight member of the board to take the chairman- ship of the membership committee — a man interested in it, and wiio could afford to devote some time to it. We hired a live wire, a good mixer. We put a hundred selected men on the committee, many of them good salesmen, men who Avant to increase their acquaintance. A goodly per cent are insurance men, real estate salesmen, etc. Then, time and money were spent on preparing a list of three thousand prospects. These were listed on cards, arranged by location, all in one buildinj?, or one block being assorted together. About fifteen to thirty people meet at the chamber every Tuesday morning, jjet fifteen to tAventy cards, and go out in two-men teams. At 12 :30 they meet at a complimentary luncheon and compare results. 244 METHODS OF ORGANIZATION AND OPERATION. We kept that up for days, and on no day did we get less than ten. We gained 453 net memberships last year ; this year we have gained thus far 847 memberships. Our net member- ship stands today at 3,521, Avhich is a net gain of 1,300 in 23 months. That would give a yearly increase of |65,000 in rev- enue. We deduct ten per cent in figuring here, although that is too much. The total number of new members to get that gain, since January, 1917, was 1,958. That is the number we have brought in in 23 months. Our total losses of all kinds since January, 1917, were 658, though it was said at the time we changed the policy of the chamber, that we would lose over a thousand members. Service — Great and Small All these big things, these big campaigns — all these big things that you can do, are good and necessary ; but don't make the mistake of thinking that public approval is not swayed as much or more by little personal services as by the big things. If you tell a man you have raised ten million dollars in a tu- berculosis campaign, that is fine ; but if you stop his tooth ache he appreciates that more than he does your success in your tuberculosis campaign. When after three }■ ears' work, we rectified the 5 per cent freight discrimination against St. Louis, people realized we w^ere getting on. But one canner who had vainly looked several days for a lost car of empty cans, while his fruit was about to spoil, thought much more of our service when we found the car and placed it at his door, six hours after he told us of it. When another firm got a dozen bales of furs from Japan at 5 :00 P. M. Saturday, and had to have those tags translated in two hours, they appreciated the fact that we did it for them, perhaps even more than they appreciated the revival of traffic on the river, or the removal of the "coal arbitrary.'' A man came into the chamber the other day. He had been a member for a year. "I want to take out a membership for my secre- tary," he said. "That man who takes care of me at the door treats me so politely and courteously, that I feel that I would like my secretary to enjoy the privileges of such a chamber as well as myself." See what a little thing like that will do. That is the whole story ; and you get my point : That no matter what else you do, you must go after the things that will REBUILDING AN ORGANIZATION. 245 meet the needs, that will meet the approval of the people. Go after them sincerely, get rid of all class distinction. Work for the community first and the individual second. Keep out of politics, but in business matters shoot with a rifle, and not with a blunderbuss. Make your organization democratic, and make your public feel you are there to render them service. CHAPTER XV. Organization Publicity Keeping Before the Public By WM. B. WREFORD The chances are that, if an average bright newspaper man got access to the work of such an organization, he would have discussed the subject matter of the ponderous prepared article with a dozen lines, or at least not gone farther than to make it the text of a dozen or more periodical paragraphs. In the case of either treatment, note the difference in the result : The dozen printed paragraphs would have been breezy and would have been read, where the ponderous article would have been overlooked. The dozen printed paragraphs would have kept the work of the organization before the public for a dozen days, where the heavy article would not have held attention for a single day. The trade of journalism is one which lives on personality. To begin with, the free-masonry that exists between man and man engaged in its pursuit is perfect. No journalist falls so far from grace as to entirely forfeit the sympathy of the more orderly members of the profession. No callow youth struggling to mount the ladder of journalistic fame is so crude or so un- certain of future that some of his fellows do not lend him a helping hand. No man or w^oman who has made good in the profession goes out of it to another sphere of activity that the good-will of his fellows does not follow him, and magnify his virtues and overlook his mistakes. The hardest critics in the world, the journalists, are the kindest observers of the work of their own fellows. Recognizing this, commercial organizations can do their best work by going into the profession of journalism for occu- pants of some of the places at their disposal, for men who are in active touch and have personal friendship with those whom they leave behind them at the newspaper desks and typewriters, 246 KEEPING BEFORE THE PUBLIC. 247 and who can get desirable publicity, where the solemn old dad- dies who used to make publicity could not get a hearing. An Official Mouthpiece The publicity work of a commercial organization should be solely the work of one man — he should be the mouthpiece of the institution, not necessarily quoting liimself, but the president or chairman of a committee or the secretary, or who- ever fits the case the best. The local newspaper, say w^hat one will, is the most gen- erous contributor to town building that an organization has at its disposal. It has, or should have, a selfish interest in the growth of its city. A bigger city means, apart from the grati- fication of honest local patriotism, the more material satisfac- tions of a greater body of readers, bringing with it a better appeal to advertisers, and a greater recompense from such ap- peals. The newspaper receives one of the promptest of the rewards from the growth, in that every newcomer to one's city represents a penny or two a day for the publication. Moreover, journalism has high ideals. It has been striv- ing for better citizenship, more honest government ; greater ad- vantages, material and moral, long before our commercial or- ganizations were born. Well organized commercial associa- tions come into being, therefore, as handmaids of journalism in the. achievement of its ideals and are welcomed by it, be- cause they represent the organized assistance of the commu- nity in bettering its own material and moral conditions. These are among the reasons, practical and ideal, why the commer- cial organization, which is to succeed, must seek and secure the cooperation of the press in its development and in keeping it before the public. Keeping Before the Public I have referred to being kept before the public. Let us analyze the necessity. A hermit will never make a politician. A bird that sits on the nest all the time will never get a repu- tation for the beauty of its plumage or the sweetness of its warble. The article of commerce that waits until its merits are passed around by those who use it, without advertising its merits, will never make its producer a millionaire. Success cept burglary. So the success of a commercial organization and publicity are interchangeable terms in every business ex- 248 METHODS OF ORGANIZATION AND OPERATION. ]ies in its being able to so conduct itself that its journalistic friends will find in its activities constant text for keeping it before the public. Advertising Methods of Commercial Organizations By FRED CLAYTON BUTLER The charge has been made that commercial organization publications survive but a short time. This is disproved by the fact that practically all of the publications mentioned in the report of 1914 of this committee are still in existence and fully twenty-five per cent more have been started during the past year. It will be noticed, by referring to the exhibits, that many of these publications are in their fourth, fifth, sixth and even ninth and tenth volumes. While, almost without exception, executives now issuing house organs are strongly of the opinion that they are read and appreciated by the membership, yet of course no one is able to advance complete and definite proof. Complaints from mem- bers failing to receive copies, suggestions regarding the work mentioned in the publication and numerous and hearty expres- sions of approval and interest on the part of the members, have convinced executives that the house organ is filling a definite need. Stevens of Akron reported a poll which showed 'that a large majority of the members read the publication. The large and constantly growing number of house organs issued by organizations is in itself an acknowledgment of their need. In the largest cities the necessity of such a publication is so obvious as to need no detailing here. Such organizations have large memberships, but a small portion of which can be brought into the activities of the work. The fields of effort are so numerous and so widespread as to make any adequate men- tion of them in the daily press impossible. In fact, the mere recital of the work undertaken and accomplished by a large organization makes a magazine in itself. Accepting as a basic premise, therefore, that the success- ful organization must continually keep before its membership the story of what it is doing and trying to do, we must admit Committee: Fred Clayton Butler. Chairman; Thorndike Deland, A. V. Snell, Ho\^^rd Strong, O. B. Towne. ADVERTISING METHODS OF COMMERCIAL ORGANIZATIONS. 249 that the publication of a house organ by associations in the larger cities is justified from every viewpoint. The question for discussion, consequently, is whether, in the smaller cities where almost unlimited newspaper publicity is available, the the publication of a house organ by commercial associations is advisable. House Organ Contents Without exception, I believe, all publications regardless of size contain the work of the organization. Some contain noth- ing else, while others contain items and articles on business, civics and trade organization. In the choice of suitable contents for a house organ, opin- ion differs widely. Gibbs of Olean believed a publication should contain "clear and concise statements in regard to work being done by the organization, a few well-selected items in regard to what others are doing and a few articles which tend to create civic patriotism.^' Wadsworth of Youngstown used local in- dustrial news (not reprinted but worked up especially), re- ports of committee activities, appeals for cooperation of mem- bers in the larger current activities, and notes on w^hat other cities are doing. He believed that "members will not read through duty. The publication must compete in pure interest with other reading matter received.'' Weller of Erie added that "a small portion of humor and epigrams or short, snappy quotations" are necessary to make a publication readable, but Foss of Springfield thought the con- tents should be limited to "activities of the organization, mat- ters of special interest to its members, and the welfare of the town, presented in a simple, direct and dignified manner, omit- ting jokes and poetry of doubtful literary merit." Lovelace of Danbury believed in "laying emphasis upon what other cities are doing," while Holmes of Sioux City raised an objection to this: "I notice that many of the commercial organizations are devoting a large amount of space in the house organs to quotations from the writings and sayings of other commercial secretaries and presidents — some of them very clev- er and pretty. But it is my judgment, based on such observa- tion as an old time new^spaper man could give, that the aver- age commercial club member is not particularly interested in platitudes on what the Podunk Board of Trade is doing." There is a point in publishing what other organizations are doing. 250 METHODS OF ORGANIZATION AND OPERATION. however, that is missed by Mr. Holmes. This was well brought out in a recent article in "Town Development" by Frederick W. Bender from which I quote : The commercial organization journal has a two-pronged purpose — first to acquaint the membership with what is being done and second, to prepare the minds of the members for the things that are to be done. It is a "little mes- sage" that drops into an office every little while and plants a thought in the mind of the member, doing so regularly, approaching the matter from a little different angle each time, until the member as a result of this persistent thought suggestion, comes around to a meeting and advocates the carrying out of the particular "suggested" project. A commercial executive of many years' experience in commercial organi- zation work recently stated : "I question the advisability of ever making a direct statement to your membership about any measure which you propose to carry out, especially w^here that particular measure means a departure from the usual, without first preparing the minds of the memberships and the community for the thing you propose doing. Experienced executives generally agree that about 90 per cent of the com- mercial organization projects that fail to materialize and are lost on the "table" could have been saved and made realities by preparation. As one executive recently put it, "plant the thought and then assiduously irrigate it." The membership and community mind must understand and appreciate a thing before it can desire it — desire always comes from appreciation and understanding. Such publications as "Chicago Commerce" and "Greater New York" of the Merchants' Association, go further than purely organization news and, in the w^ords of Mr. Mead, "en- deavor to keep the members informed of important events af- fecting their business, and to arouse interest in the city and its welfare." Many other organizations devote considerable space in their publications to a summary of news regarding the pure- ly commercial features of their Avork, such as credits, traffic, exports, etc. Question of Make-Up In the matter of make-up there are also two different schools — the magazine and the newspaper. The preponderance of opinion seems to rest with the newspaper style for reasons logically set forth by Hillweg of Minneapolis from whom I quote : "For two years we published our bulletin as a small maga- zine attractively printed. We felt, however, that it was failing in its purpose of keeping the members advised of the activities of the association. We finally reached the conclusion that a bulletin prepared in newspaper form should accomplish the result desired. We reasoned that because of the likeness of ADVERTISING METHODS OF COMMERCIAL ORGANIZATIONS. 251 our bulletin to a newspaper, the member would be less inclined to cast it aside to be read at some later date. The first issue of the bulletin in the new form brought all the proof we de- sired of its acceptance by our members. While economy played no part in our change, we find that the new form is both more effective and cheaper than the old." Mr. Mead also pointed out that "the advantage of the news- paper form, lies in the fact that it enables the editor to present the news in a w^ay that is familiar to newspaper readers. It also makes possible a lively tone which cannot so well be in- jected into the magazine form." Casey of Haverill recommended "keeping the articles down in size; making them short but snappy, in newspaper style, readable and as interesting as possible.'- While all seem to agree that the articles should be "lively and interesting" it should not be forgotten that to write such articles is a diffi- cult art. Unless great care is taken, the tendency is toward flippancy which sooner or later degenerates into the insane piffle. There is no doubt that members like to read clever "joshing" stories such as are often seen regarding trips and cruises and the more social events of organization work, but the temptation to carry this too far should be religiously re- strained. Hillweg of Minneapolis "found it easy and highly desirable to use illustrations in this form of bulletin," and also found that "it is possible to epitomize in the head-lines all essential points of our work and thus impress the record of activities upon the man who reads nothing but head-lines." This is an important point. In the smaller 'publications especially, tlie tendency is noticeable to avoid long stories and to break an article if necessary into several small stories each with a head so that he who runs may read. The objection that the small organization will not iiave enough fresh copy for a regularly issued house organ does not seem to be a convincing one in the opinion of most executives. In fact, some point out that a regular publication is in itself an incentive to keep the organization at a high pitch. TJie executive finds himself "trying to make bogie" as it were, and unconsciously spurs up the entire organization when he thinks of that monthly resume of activities which must be made. Some executives seem to feel that it is necessary for them to 252 METHODS OF ORGANIZATION AND OPERATION. publish in the house organ, matter which is distinctly news and w hich has not yet appeared in print. Others point out that this isi a false view and that, as a matter of fact, in the small cities at least, nothing should be withheld from the press in order to make news for the house organ. Therefore, entirely regardless of whether or not the organization activities have already appeared in the newspapers, they should be printed in the organization publication. Members do not read the news- papers thoroughly and even though they did, the effort of a re- peated recapitulation of the organization's work is far more impressive and lasting than the mere perusal of occasional news- paper stories. Frequency of Publication In regard to the frequency of publication, opinion is pretty w^ell settled upon the desirability of a weekly for the larger organizations for reasons which are clearly pointed out by Mr. McKibben : "It appears four times as often and therefore has four times the opportunity to make an impression. In report- ing chamber events and happenings, the weekly, being nearer to the event, can give a more effective news touch to its story than the tardy monthly. Each event can be told about more fully and can be brought to the attention of your members more effectively, for you only have to cover one-quarter as many events as you would have to cover in the monthly. The weekly enables you to give more accurate and timely information as to those events which could be covered by a monthly, and enables you to give notice of many events which could not be covered by a monthly — for it is impossible for a busy, working organi- zation to make up a full and accurate schedule of coming events a month ahead. In organization work the newspaper is more valuable than the magazine — and the weekly, appearing more often than the monthly, lends itself more naturally to news- paper style." Should Advertising Be Admitted? In this matter of advertising we find the two schools of thought most definitely marked. Here there are no half-way opinions. Executives either believe in securing advertising or they do not. Needless to say those organizations that are now publishing advertisements believe in that policy. Of those who do not accept advertising all but a few condemii the practice. The lines are so sharply drawn that all that can be done in this ADVERTISING METHODS OF COMMERCIAL ORGANIZATIONS. 253 paper, is to present the two sides fairly and leave the individual to his own decision. While many executives believe with Cotton of Providence that "the presence of advertising matter in the publication renders it more valuable/' and while they honestly believe with him that "any and all advertisers will eventually get their money's worth if they supply the right sort of copy and deliver the quality of goods they advertise," yet it should not be over- looked that if advertising brought no revenue there would be none printed. Consequently the question resolves itself into one of ethics — whether or not a civic-commercial organization is justified in using its publications for profit. Many execu- tives contend that an organization has no more right to seek a revenue in this field than in any other of its various activi- ties. That advertising is an important factor is shown by the fact that many organizations report an income equal to as high as 75 per cent of the cost of the publication, a few like ti:e Milwaukee Association of Commerce make "one pay the other," and some pay the entire cost of publication with a profit be- sides. One of the strongest arguments against advertising is that most commercial organizations are today supervising the ad- vertising propositions presented to their members. Most such organizations would refuse to sanction the solicitation of ad- vertising for a publication issued by any other local, civic, fra- ternal or business organization. Howe of Utica said: "As a chamber we are absolutely opposed to organ advertising, as we consider it a species of additional mulcting of our members. Having a circulation of 1,000 members we have had applica tions from banks and other sources for advertising space, but have universally turned them down. My personal view of many of the organs that come here is that the money is wasted; in fact, I cannot see how different chambers put over the adver- tising they do. I make this point because I believe it is im- possible to give such circulation to these publications as will justify the advertising. Without any hesitation I may say that we could get advertising enough in this city to pay for an elab- orate organ if we desired it but as one of the aims of the cham- ber at the present time is to cut down the enormous waste of money given hit or miss to different soliciting agencies, we 254 METHODS OF ORGANIZATION AND OPPJRATION. feel that we would not be justified in joining the ranks of such agencies — far better a one-sheet bulletin.'' Assistant Secretary McCarthy of Duluth was of a similar opinion. "We endeavor to protect our members from special advertising media and the club publication is one such. The advertising is also an additional tax. It decreases the value by making it, not a special message to the member, but a com- mercial proposition. A monthly bulletin large enough to get into a No. 10 envelope can carry a lot of news and inexpensive enough for any organization worthy to be classed as alive.'- Deuble of Canton believed that ''sl house organ is primarily a factor of information rather than commercial exploitation and should not carry advertising to be of the greatest effect in its real mission to the members. A house organ is in the nature of a confidential communication to the membership and should not tell them where to buy underwear or plumbing at the same time. This practically makes advertising a donation to the associations, because the writer has never experienced any re- turn from such advertising for others, in seven years' advertis- ing management. It also would appear very similar to the souvenir books and programs which advertising is generally condemned by conservative advertisers as valueless from a busi- ness standpoint and appreciated only by the exploiting mana- gers." In the matter of advertising "Chicago Commerce" has taken the middle ground. Mr. Miller Avrites : "The paper is not self- sustaining and could not be made so without carrying a much larger amount of advertising than we now carry. It is the opinion of some of the officers of the association that the paper should carry no advertising whatever ; others believe we should carry enough advertising to pay expenses, and we have fallen into the habit of taking the middle course between the tAvo ex- tremes, and accept such advertising as comes to us without much effort on our part." A few organizations, like the New Orleans Association of Commerce have refused to permit the soliciting of advertising on the ground that the association was not in the advertising business. The Merchants' Association of New York decided not to accept advertising and Mr. Mead explains that "the chief reason for this decision was that a publication without advertising would be more dignified and would make it possible ADVERTISING METHODS OF COMMERCIAL ORGANIZATIONS. 255 to display the news of the association to greater advantage. Other considerations are the danger of making members feel that they are being asked to pay more than their yearly regu- lar dues for the support of their association, and the possibil- ity that the newspapers might feel that the association was en- croaching upon their field." Important As Means of Comniunication A word in regard to expense: Any organization that can afford to issue a year book could much better put the same amount of money in some sort of a house organ. An annual report is as a rule merely glanced through and laid to one side. A house organ appears repeatedly and is effective through its very persistence. A four page journal 6x9 can be printed for as low as $17.00 monthly. The postage need not be considered, as the publication will take the place of miscellaneous notices which would average once monthly. For, to quote Babcock of Dallas again, "In case an organization cannot issue a regu- lar publication, a monthly report in the way of letters to mem- bers is absolutely necessary to keep the organization members in touch with what is going on." To quote Editor Gushing of "The Detroiter," "The publica- tion saves the board many hundreds and even thousands <^>f dollars by making it unnecessary to send out notices of our Tuesday meetings; inasmuch as we have between 30 and 10 Tuesday meetings a year, heretofore it was necessary to send out printed literature to each member, all of which is now taken care of by "The Detroiter," and the saving is quite a large one.'* A writer in a current magazine recommends the use of a Aveekly post card in lieu of a publication. In doing so, he over- looks the fact that the matter of postage would be by far, the greatest item of expense and that four or five post cards month- ly to a mailing list of fifteen hundred would cost far more than a well printed and illustrated publication of at least eight pages. This writer's recommendation does not justify his con- clusion that "the official organ is a costly method of publicity in the long run." The journal can be enclosed with bills and statements and in this way the matter of postage practically eliminated. As a rule second class rates are out of the question for small cities, as they apply only to weeklies. 256 METHODS OF ORGANIZxVTION AND OPERATION. There is one form of house organ that can be issued with- out cost that have given good results in Winona, Joliet and Minot. This is to arrange with the newspapers to publish on a certain day each week under a distinctive heading in a certain location of the paper, exactly the same material that would ordinarily be published in a house organ. The advantages are that all the citizens are kept in touch with the work of the or- ganization and not merely the members alone. The disadvan- tages are that people as a rule read their newspapers hurriedly and skip over undisplayed matter. There is also the disad- vantage of handling a story as a re-write that has already ap- peared as a news story in another column of the same paper. Hollenga of Minot is using this plan daily. Not only does he inform his members of what is going on, but he also gives little write-ups about interesting happenings in other cities — in fact, exactly the same matter as that which appears in the usual house organ. The plan is well worth the consideration of executives in organizations that do not feel that they can afford the expense of a regular publication of their own. Furthermore, a large number of organizations are using their house organ as a means of influencing prospective members with the worth of the organization while they are, as President Mead puts it, "in the incubation stage." It should not be over- looked that this education of prospective members, which will ultimately make it easy to bring a large number of them into the organization, makes the house organ a paying investment. Many executives feel that an association cannot exist on newspaper publicity alone, unsupported by regular reports epit- omizing and emphasizing the accomplishments of the organi- zation. In other words, it seems to be the opinion that it is necessary from time to time to lay before the "stockholder- members" of the organization a dividend balance sheet. In view of the opinions advanced and the recommendations made by the executives consulted, there is but one conclusion, the house organ has come to stay. It is a logical and necessary complement to a successful community organization. It is a pulse-beat from the association itself, carrying to every part of the body its warming, vivifying influence, dispelling indiffer- ence and misunderstanding, awakening enthusiasm and desire, creating a civic vision and bringing to the organization that unanimity of thought and action without which an army is but a mob. Promotional Efforts and the Public Press By ADOLPH BOLDT We are living in an age of publicity. Advertising is mak- ing the world go 'round and at a giddy speed I The merchant, the promoter, the manufacturer, etc., with an unknown or non- advertised article for sale, is soon dropped off and left behind by the fearless operator who takes the bone of advertising and publicity in his teeth and lets the world know he's in the game. The same is true of the commercial executive or secretary. Let him tell the members and the public at large through the columns of the daily press the activities of his organization and he will find the people and the press back of him. Let him cover his activities by a blanket of silence and he'll soon find out that it's very monotonous to do all the boosting. If we all hid our lights under a bushel this would be a dark world, in- deed. It is said that in Houston three men in a corner can ac- complish more than 77 mass meetings. True, if one of the three is a newspaper reporter. By this I don't mean that the press should have access to everything. We all know that executive meetings are ofttimes necessary for the good of a proposition. Yet when the time comes for action, if it is action by the pub- lic, it is the newspapers upon which we all depend to get it before them. Then if we approach the press in a half-way man- ner or in a spirit of aloofness, that might suggest that their part of the cooperation was only for the paper to be used, we can not expect the Avhole-hearted assistance in news columns and editorial pages which, without any movement with the pub- lic, will fall flat. Show Your Newspapers You Trust Them The honor of the average present day newspaperman is wonderful and an inspiration. Although he is employed to gather facts and report them, he will invariably, when asked, repress such facts until released. Give him your confidence, show him you honor it and when you release to him your story and permit its publication, you will find such publication great- er in prominence, better prepared and a genuine message from yourself to the public, rather than a brief notice, hastily written with the facts secured one minute, written the next and rushed into print. 257 9 258 METHODS OF ORGANIZATION AND OPERATION. I have known newspapermen who asked that such confi- dence be given them. If the story or matter is not ready for publication, let your reporter in on the story as it progresses, under promise of secrecy, and when the news breaks you will find your reporter thoroughly familiar with all the ramifica- tions of the story, its import and purposes and far better pre- pared to give you an interesting exposition of your efforts, rath- er than a garbled report or brief secured from quickly gath- ered facts, he can not in a short time fully comprehend. Try it, but first know your reporter. Promotional effort is itself a matter largely of stock selling. It is a fact that there are few worthy industries seeking a change of base. When an industry knocks for admittance at your doors ninety-nine times out of a hundred, there is a string attached. First it is best to find out w^hy the industry seeks to move from another town to yours. There's alw^ays a reason behind such moves and it is safe to find out w^hether the real reason will be of benefit to your town. If an industry or busi- ness is a failure in a brother secretary's town, the chances are it will be a failure in your town and a reported failure is a demerit against your town. Again there are few, very few, industries that come to an- other tow^n seeking entry with enough finances to carry them through. Nearly all want to ship in an old plant, and enlist local aid to reestablish on a new footing. Should the manufactured article be a patent, remember the investor ap- praises his article in the millions W'hen the cool-headed investor will value it in dollars. Like the airbrake the patent may later be worth millions when its success is fully developed, but you can safely discount it one one-hundredth at its beginning, as Vanderbilt did when Westinghouse approached him with his airbrake and Vanderbilt scouted the idea of applying train brakes with "wind." When an industry seeks to move, first find the reason. If the reason is meritorious and your city's advantages will remove the barrier the industry worked against in another city, you have a good prospect to work upon. Find out the condition of the business, appraise the plant with an expert eye, apart from the appraisal placed by the owners, hear the plans of the new- comers and then meet with your manufacturers' committee. Have this committee consist of manufacturers, bankers and KEEPING THE MEMBERS INFORMED. 259 capitalists, shrewd business men, but not too conservative. Have them liberal, yet safe and the advice they will give you may be depended upon. Ofttimes they will pick to pieces the plans submitted by the newcomers. The latter can see but one side — success in the new field with unlimited capital. The committee views it from another angle — can it succeed, will the money be profit- ably invested, the business well managed and a fair return of profit yielded? You can depend on the revised plan offered by the committee. Offer it to the newcomers and stand on it. Let them take it or reject it. If they don't want it, you don't want the industry. Play safe, remembering you are acting for the city with every inhabitant as your client. Don't offer the people something you wouldn't take yourself and you can come very near putting over anything you want. If the revised plan is accepted by the newcomers your line of cooperation shifts to the newspapers. If the unexpected has occurred, and the incoming industry has plenty of funds, enlist the newspapers in giving them a proper welcome and introduce the goods to be manufactured to the home people. Nothing will inspire a new manufacturer more than material welcome in a new city by the people trying his goods. Make him feel at home, ask the press to comment editorially and make the newcomer feel you are glad he came. Your good feeling through the press will kindle a like feeling with the people and the new- comer, too, will be glad he came. When the Newspaper is Your Best Aid But, should the newcomer seek additional capital (and they nearly all do) and the manufacturers' committee has in- dorsed his plan or submitted a new one that has been accepted, the newspaper becomes your invaluable ally. Before you attempt to place a dollar's worth of stock, have your projected enterprise well advertised. Let the newspapers in on the whole scheme and if there is any part of it you do not want printed, you can rely on them not to print it if you so request and play fair with them. But if you want the whole- hearted cooperation of the newspapers take them into your confidence, unfold the whole plan and show how they can co- operate. With all the plans before them you will find them just as interested as you and your path well paved with pub- 260 METHODS OF ORGANIZATION AND OPERATION. licitj, when you go out into the town with your subscription lists. If an enterprise is indorsed by the press the people are with you. They have made your introductory speech, your prospec- tive investors have been apprised of your proposition in advance and their opinion is bound to be favorable with press comment behind it. If the money is available you will find your task easy. As subscriptions are secured publicity of this fact will make your task lighter as the dollars pile up and you will find in the end that your confidence in the newspapers was not only well placed, but they practically have done the work for you. Now in contrast imagine the secretary w^ho hoards to him- self his industrial plans, and tries to raise |50,000 or more alone. If he expects to do it all himself and when the work is accomplished make a newspaper splurge, it lis doubtful whether it will ever come to that point. Raising money is hard enough in itself and can not be done without cooperation. The fact that you have created the plan and led the fight with the new^spapers giving it impetus is credit enough all around ; but in the final analysis it is not credit marks you are seeking, but something for your town. Cooperate with the newspapers and they will cooperate with you. Try to use them and they will have your nose on the grindstone. They are the moulders of public opinion, without which your efforts would be nil. Get the newspapers behind you in all your efforts and half of your battles will be won before they are started. Keeping the Members Informed By JAMES A. McKIBBEN Granted that you have an efficient organization, and that your members have an appreciation of the proper field of work and of endeavor of an organization such as we are connected wdth, it does not necessarily follow that you have an interested membership. These things are merely the foundation upon which the structure of active, live interest must rest. What are the essential elements of a strong and enduring superstruc- ture of sustained interest? Obviously, one of the main supports of your superstruc- KEEPING THE MEMBERS INFORMED. 261 ture must be an efficient plan for keeping the members well in- formed as to what the organization is doing and attempting to do. There are, to be sure, successful business men who will argue with vigor and conviction that any particular effort to keep your members informed is unnecessary; that ail that is necessary is to do efficient work, and that if the organization is doing efficient work, its members will find it out. The busi- ness man who takes that point of view may know all about his business, but he does not know the first principles of working with the public, and he does not understand human beings. One of the fundamental facts about human beings — and one wliich it is well for anybody interested in carrying on any public movement to bear in mind — is that they are all by nature ego- tists; and one of the many ways in which that trait shows it-. self is a man's tendency to assume that what he does not know about does not exist. If he has not heard about his organiza- tion doing a thing, he instinctively assumes that it has not done it; if he has not heard about a thing happening, he as- sumes that it has not happened; and if he does not know af- firmatively that your organization is doing efficient work, he instinctively assumes that it is not. In any public movement, whether it be carried on by a com- mercial organization or any other association, your chances of doing successful and efficient work are very small unless you keep those for and with whom you are working, informed and carry them along with you. Most organizations realize this; most organizations are attempting in some way to meet the situation; and there is no organization, I imagine, which will not admit that its efforts have not been altogether successful — and, perhaps, even that the results are sometimes quite dis- couraging. We in Boston have certainly struggled with the problem, and are still struggling with it. Some Ways of Keeping Them Informed It is just as true in this field as in any other, that no other agency has yet been devised that compares with the personal interview, either in efficiency, in surety of results, or in the quickness with which it produces them. Business men do not by choice sell goods by mail or by circular if it is feasible for them to have a good salesman call on the customer. Whatever 262 METHODS OF ORGANIZATION AND OPERATION. the size or nature of 3^our organization, it is well to take a leaf out of the book of business experience and utilize the personal call to the extent to which the size of your organization per- mits. It is an easy matter for the small organization to keep in close and efficient touch with its members through personal interviews by its officers and directors. They can, and ought to, make use of this efficient agency to a much greater extent than they usually do. In the case of the somewhat larger organization, located in the medium-sized locality, it is entirely feasible to utilize the personal interview to a considerable extent; and an auxiliary agency is almost always at hand in the local newspaper which can, and usually will quite willingly, devote as much space to what the commercial organization is doing as the organization will furnish real good, live news to fill. The yoking of these two agencies — the personal interview and the columns of the local newspaper — gives the medium-sized organization in the medium-sized community the very best chance of all to convey its message satisfactorily to it« members. Inquiry as to the extent to which this auxiliary agency has been used will be likely to elicit some complaint of lack of co- operation on the part of the publishers of the local newspaper ; but such investigation as I have been able to make causes me to have a good deal of sympathy with the publisher. He is not a magician, and with the very best intentions he can only ac- complish a very little in the direction of transforming dry, uninteresting "drool" — such as he is too frequently furnished — into live, interesting reading matter. There are always two sides to a case, and I am inclined to think that investigation will convince you that where the local commercial organiza- tion has not the cooperation of the local newspaper, the fault is not usually principally on the side of the publisher of the paper. The difficulties of the problem of keeping the members in- formed increase as the size of the organization and the size of the city increases — and they increase, not in arithmetical, but in geometrical ratio; and, unfortunately, while the difficulties have increased, the possibility of utilizing the agencies which I have mentioned, has decreased. The number whom you can reach by personal interviews is very small, and, unlike the ORGANIZATION BULLETINS— THEIR HITS AND MISSES. 263 newspaper in a town or small city where the problem of the publisher — whether he will admit it or not — is to get enough live matter to fill his columns, the pressure for space upon the management of a newspaper in a metropolitan city is terrific. A newspaper in a large metropolitan city will not — and, frank- ly, I do not believe can reasonably be expected to — give any- thing like a proportional amount of space in comparison with the amount which the newspaper in a small city can and will give. In the case of the large organization in a large city, the problem is, therefore, immensely more difficult, and the agencies upon Avhich the small organization can rely are very much less available. ^ ^ ^ . . ^ Type of Organization Organs As a consequence, most of them have considered it neces- sary to establish a publication of their own. The first experi- ment is usually a monthly magazine; and although there has been a trend in the last few years towards the weekly publica- tion, the monthly is still by far the most prevalent type of or- ganization organ. A good monthly can do a great deal for an organization and for its city, and it has some advantages over any other form of publication; but as a means of conveying "live" news, it is somewhat lacking. If it is of any considerable size, the very last of the copy will have to be furnished to the printer from six to ten days before it is delivered to your members — and this means that its freshest news is from a week to ten days old, and the oldest from five to six weeks old, when it gets to your members. On the other hand, a weekly, being smaller in size and dif- ferent in shape, can be printed and delivered within twenty- four hours from the time that the last of the copy is delivered to the printer. It also has some other advantages over the monthly, and as a consequence, a considerable number of the larger organizations have adopted this style of publication. Other Ways of Keeping Members Informed Reliance ought not to be placed entirely, however, on any one or all of the three agencies I have mentioned — the personal interview, the local newspaper, and the monthly or weekly publication. If you expect to keep every member informed, you must utilize every possible agency; and there are still other agencies available. 264 METHODS OF ORGANIZATION AND OPERATION. One other way is to utilize another fundamental fact about human beings. Men are gregarious animals. The interest of the members of the organization in it and its work can be greatly increased by getting them together in a social way — and then utilizing the occasion for informing them about some phase of the organization's work or some matter in which the members of the organization are naturally interested. There is, of coui^e, a danger of overemphasizing the social features of the organization. Excessive zeal to get a good attendance and "make a showing" has blinded many an organization and many a secretaiy to the fact that getting together a large number of your members at a dinner merely to hear some- body make a funny speech does not materially increase their interest in the organization and its work. The noted orator or witty speaker may be necessary as a drawing card ; but the organization which does not utilize the occasion to convey to its members something which will be of lasting value to the or- ganization and to the community, has failed to take full ad- vantage of the opportunity. The combination which we have found to work best is three speakers, each occupying from twenty to thirty minutes — one a great orator or noted man with "drawing power,'' another who will say something really "meaty," and finally a short, witty speech. Some people like oratory, and others want "meat" — and both these classes (al- though the latter class will not always cheerfully admit it) like a little fun, if it is not overworked. A method of getting the members together which has in- creased in popularity tremendously in the last few years is the noon-day luncheon, followed by one or more addresses, oc- cupying between a half hour and an hour. In fact, it is per- haps not putting it too strongly to say that this is the com- mercial organization fad of the present time. Here, again, as in the case of dinners, the increase in mutual acquaintance and understanding is of considerable value to the organization: but these noonday luncheons can be given a permanent and lasting value by systematic and well-planned attempts to con- vey to the members a message of real value to the organization and the community — and to the members themselves. Another method of turning the gregarious instincts of human beings to the profit of the organization, used more fre- quently in the West than in the East, is to provide luncheon ORGANIZATION BULLP]TINS— THEIR HITS AND MISSES. 265 accommodations for your members. The getting of the man into your building, and especially his acquiring the habit of coming there from day to day, or at frequent intervals, has the psychological effect on his mind of identifying him with the organization and imbuing him with the esprit de corps of the body. Many business men find the lunch hour the most convenient time for committee meetings, and good luncheon accommodations are likely to assist greatly in securing satis- factory attendance at committee meetings and have a marked tendency to keep the committees in close touch with the or- ganization and with its members. The potential advantages of luncheon accommodations are very great; but left to itself, a lunch room is likely to be of little value — and may even be a source of weakness, through over-emphasizing the social side of the organization. It is only by well-planned, systematic work that the potential advantages may be realized. Organization Bulletins — Their Hits and Misses By G. W. LEMON Organization bulletins — why have them — what type is the most popular — what is the most successful — are we hitting or missing the mark with them — are they really worth the time, effort and money expended? Despite the fact that there are a few secretaries not yet convinced that bulletins are worth while, the overwhelming majority of those who answered my questionaire declare for a bulletin. Why? "It is the show window of the chamber of com- merce, doing for the organization what the window display does for a business establishment. "It is the direct connection and point of contact between the membership at large on the one hand, and the organization and its executive officers on the other. "Permits the presentation of chamber of commerce news and views from the chamber of commerce standpoint. "Drives home it« purposes and activities in a way which cannot be done in the press. "It allows specific and direct personal appeals to be made to the individual member. 266 METHODS OF ORGANIZATION AND OPERATION. "Serves as a check upon the secretary and the board of directors, making both realize their full responsibility to the organization. "The bulletin serves as an alibi when a member complains that he has not been kept fully informed of activities; he has no come-back if he fails to benefit by the information given. "The real purpose of a bulletin is to sell the organization to the member and to constantly keep him sold. If only 25 per cent of the membership read it, it is worth while." In fairness a word should be said regarding the objection to an organization bulletin. It is contended : "That special reports and pamphlets on specific subjects are far more effective. "That by the time of issue, bulletin news is stale. "That they are not read, one city making a test which led to the abandonment of its bulletin. "That newspaper publicity is better and costs less money. "That a mimeographed weekly letter is more effective. Character of Publication Assuming that an organization bulletin is worth while, let us now discuss its character. Should it be a chamber of com merce newspaper? A letter from the secretary to the member- ship? A medium of civic propaganda? A city booster? Some favor a strictly chamber of commerce publication, contending that the chamber of commerce bulletin should not enter the national magazine field, but fill its own peculiar field, which is not open to any magazine or publication of the general type. Others favor the pretentious magazine. Still others differentiate between the bulletins of large and small organizations— pointing out that the pretentious magazine meets the requirements of the former, while not at all suited to the needs of the smaller organization. There are those who believe that the bulletin, while main- taining the chamber viewpoint, should serve a broader purpose as a clearing house for general business information and a medium of exprevssion for leaders in current activities, both local and national. Every organization desires to publish as fine a bulletin as finances will permit; but the bulletin that suits Tulsa, Chicago and Milwaukee would hardly meet the requirements or the SOME DANGP:RS of house organs. 267 resources of the smaller organizations. No general rule, it seems to me, can be laid down, but it may be said that, in the smaller cities, and many of the large ones, the strictly chamber of commerce house organ remains and will likely continue to remain the prevailing type. In some of the large cities the trend is unmistakably toward the pretentious magazine, a type well exemplified by ^•Chicago Commerce'' and Milwaukee "Civics and Commerce." Form, Size and Advertising A good deal might be said regarding the form, size and makeup. A large number of secretaries favor the newspaper form in type, column and headline. Some bulletins have adopt- ed the two-column form, but a majority favor three columns to the page. I might say, however, that the answers to the questionaire clearly indicate that the trend is away from the 4x9 and 5x10 and toward the 81/2x11 and the 9x12, or larger. Convenience in filing and mailing would seem the chief reason for the popularity of the 8^4x11 size. We now come to the most debatable part of this subject. Does house organ advertising really pay the advertiser, or does he regard it as a donation? Memphis (Tenn.), Chicago (111.), Detroit (Mich.), Kansas City (Mo.), New Orleans (La.), and Boston (Mass.), submit specific proofs that adver- tising pays the advertiser, alleging that it often comes to them without so- licitation and remains ; that it is regarded as an investment and not a dona- tion ; and enables the organization to pay, or partly pay, for the bulletin. Memphis {Tenn.) Chaml)er of Commerce submits specific proof that its house organ advertising pays the advertiser by relating the instance of a jobber who had to leave his name off his advertisement because he got so many inquiries from retail buyers for the product he was advertising. Boston (Mass.) Chamber of Commerce says: "Advertising is very fre- quently received and renewed without solicitation of any kind. The bulletin is used as a medium by many advertising agencies, who buy space without solicitation, and who know, if any do, the intrinsic worth of a publication. Advertisers frequently declare that the ad brings them substantial returns and we believe they are getting full value for every dollar spent. It is our policy to inform advertisers at every opportunity that space is sold solely on the merits of the publication and that no advertisements are accepted that are in any sense donations." The Detroit (Mich.) Board of Commerce states that they have instances every week of direct results from advertising and that the head of a large advertising agency has said that "The Detroiter" is "the best medium in the territory for certain classes of things." Rochester (N. Y.) Chamber of Commerce submits a 50-50 report, after stating that the advertisers "let their contracts on the basis of value." One man in the office, of excellent judgment, an old newspaper and advertising 268 METHODS OF ORGANIZATION AND OPERATION. man, claims the advertising is not worth a "whoop/' The secretary adds: "Personally, I am inclined to a 50-50 opinion. I am sure thut some of the advertisers get their money's worth and some do not." Against Advertising Montgomery (Ala.), New York (N. Y.), and Peoria (111.), take vigorous exception to the admission of advertising, claiming that it cheapens the publi- cation, distracts the attention of the reader and takes away from the value of the publication. Los Angeles (Cal.), Kalamazoo (Mich.), Piqua (Ohio), and Wilmington, (Del.), look upon it as in the nature of a holdup, or at least a donation. Coatesville (Pa.), and Lawrence (Mass.) state that they cannot in decency ask help in fighting the advertising nuisance if they accept advertis- ing in their monthly bulletins. New York (N. Y.), Toledo (Ohio), Minneapolis (Minn,), and Fall River (Mass.), fear that the advertiser might wish to dominate the policy of the bulletin and they declare for an absolutely uninfluenced and unobligated op- lK)rtunity to say what they please. Bradford (Pa.), Ix)s Angeles (Cal.), Wilmington (Del.), and New York (N. Y.), feel that the members might consider requests to take advertising as in the nature of a request for a special contribution in addition to annual dues. Dallas (Texas) submits that the entire membership should stand the ex- pense of publishing a bulletin rather than individual contributors. Summary Has advertising in house organs come to stay? Time was that the great magazines of our country did not carry adver- tisements. It seems strange to think of it today, but up to November, 1870, when '^'Scrihner's Monthly'^ began it, periodi- cal magazines did not print advertising at all. And William W. Ellsworth tells us that he remembers "listening with star- ing eyes, while Fletcher Harper, the younger, related that he had in the early seventies refused an offer of $18,000 for the use of the last page of the magazine for a year for an advertise- ment of the Home Sewing Machine." It is not necessary for me to attempt to draw any conclu- sion or give a decision upon this "joint debate" on the ques- tion: "Advertising, is it worth while or is it not?" Is it not largely a question of circulation? Do you not think that if any chamber of commerce bulletin ^\dll reach the buyers that a given advertiser wants to reach, that publication will be used sooner or later, as has been the case with prominent publica- tions that one time refused to carry advertising? "Many men, many minds, and not all of the same mind." Will there not always be differences of opinion and, therefore, different policies regarding organization bulletins, their size. NEWS VALUE IN ORGANIZATION PUBLICITY. 269 character, contents, etc.; differences due not alone to the per- sonality of their editors, but to local conditions and require- ments and to financial resources? It is to be doubted if the time will ever come when one standard will prevail, even a standard for the large city and one for the small. If the secretary has found his size, make-up, editorial and business policy adapted to his community, then why not let him retain it, even though he may be in a minority? At the same time we must preserve the open mind — we must be always ready to adopt new ideas — and there is no secretary who can afford not to read the publications that come to liis de^k, for from them he will glean not only information regarding the chamber of commerce movement in this country, but up-to-date ideas for headlines and display. Few of us realize to the full, as Mead of New York well says, "the opportunity for constructive service on the part of organization house organs.'' We, as secretaries, are practically in control of a new form of literature. The direction it shall take, the policies it shall promote, in a word its character and its purpose, lies in our hands. We must make our house organ literature serve the highest interest of our organizations, our community, our country. Some Dangers of House Organs By G. W. LEMON One great factor in sustaining membership is keeping our members informed. This, of course, immediately suggests a discussion of publicity through letter-bulletins, special weekly pages in local newspapers and house organs daily, weekly or monthly. But the whole question of house organs, their fre- quency of issue, whether advertising should be accepted or not — all this has been given at former conventions. You may find it all, as Kipling says, "in the files." But may I venture a few observations and criticisms upon the contents of some of our bulletins. What I am about to say has come to me chiefly from my own experience. I myself have been guilty of some of the very things which I am now criticizing. Are we hitting the bulPs-eye with our house organs? The only excuse we have for spending money on a bulletin is that 270 METHODS 01^ ORGANIZATION AND OPERATION. it is intended to keep our members informed as to what we kave done or are planning to do ; to seek to educate the member in the commercial organization idea and to enlist his active cooperation in helping to solve the problems which confront his community. Therefore, a bulletin is primarily for members only! What do we sometimes make it? Is it not frequently a collection of more or less interesting photographs, wisdom of sages, humor clipped from the funny columns of newspapers or other bulletins, some ^^boost stuff" about our city with a few articles which bear directly upon our organization? While thinking over this phase of the question of woi*th while bulletins I reached for a pile of them lying on a table near m^^ desk. I mention this to show that I did not hunt for examples — they were right at hand. Bulletin "A" contained seven photos of men who had joined the colors and were re- porting for active duty. Bulletin ^^B" gave up one entire page to a letter by a soldier en route descriptive of life on a (slow) military train. Bulletin "C contained editorials reprinted from the local and from the New York newspapers. Another secretary-editor devoted an entire page of his publication to chronicling "Where they Spent their Vacations." And so one might go on — but I have cited these few examples to illustrate what I mean. The lure of the "mailing list" has proved too strong for many of us. We have gotten together material, not so much for home consumption as for export. Of course, we salve our editorial conscience by declaring that it is "good publicity for our city" and stuff like that. I believe the problem of member- shii3 maintenance will more easily be solved if we use the great power of our house organs for the specific purposes as above outlined. Second only in importance to house organs as a medium for keeping our members informed, it is often, I fear, a source of danger in the hands of a man who sees only the "story" in a big movement or in a major activity of the chamber. Two things are to be guarded against : First, publicity of the boast- ful variety, which would have the public think that the only, useful, worth-while things emanate solely from the chamber of commerce. Second, the personal presentation of every activity, by which I mean that it is a terrible blunder to "give out" news from your office in which your own name constantly appears or NEWS VALUE IN ORGANIZATION PUBLICITY. 271 the names of j^our president, your board or your committee chairmen. There are times when the use of names is not only unavoidable, but essential; but in nine cases out of ten the newspaper story written from the impersonal angle will do the most good — and the least harm. News Value in Organization Publicity By H. F. MILLER I think the most profitable thing we can discuss is organi- zation advertising as distinguished from municipal. Our or- ganization is something like nine years old. We began with ninety-three members. No one believed it would succeed, be- cause similar efforts had failed. Chicago was the worst disor- ganized town in the country ; in fact, we did not have anything approaching a civic organization. We had a number of organi- zations that had their special place and distinct purpose — any number of them, but none of them were of any great civic value ; always had some special thing to perform. But when it came to organization for community interest, the first thing necessary was to arouse a desire on the part of the public to organize. We were handicapped by the fact that some of our biggest in- stitutions did not believe in the idea that towns as big as Chi- cago or New York should have such organizations; that it was a case of every man for himself; that organization plans were for smaller cities; that commercial organizations in large cities would not succeed. We had to overcome that. The best medium we found was the newspapers, so we organized a pub- licity committee. That committee was made up of our biggest advertisers. Just as soon as possible we got away from the idea of asking the newspapers for something, that is, going to them and begging for space. Very soon we found that the way to get the space was to trade news for it, and we consider now that the greatest asset of our organization is its news-pro- ducing qualities. Our biggest problem is to coin that into prac- tical results. So we began to pick out the news features. We found that it was not sufficient merely to say "we have a story^' on a certain subject. We were fortunate in having in the em- ploy of the association some three or four men who had a great deal of experience in newspaper work and advertising, so that 2J2 METHODS OF ORGANIZATION AND OPERATION. we had the newspaper man's point of view. It developed a new situation, in that, when they found a piece of news, they might exchange it for space. They dressed that news up in newspa- per style and sent it over to the city editor. They soon found it was a help underrated rather than overrated, and that it was better to give them a tip in condensed form — only the facts briefly as possible and let the papers play them up in their own way. Chicago's News Bureau So we began to organize what we called the news bureau under the management of a newspaper man. This newspaper man took everything that happened in the daily conduct of the association affairs and tried to make a news story out of it. We kept that up for two years and the news bureau was suc- cessful, but it finally became an old story. While we are still conducting a news bureau, we found that the newspapers did not come around to see us as frequently as before, so we gradu- ally switched to some other line. Throughout all of our work we have tried to get the best out of the one great asset of news producing. To bring it down to date, we have 78 sub-divisions in the association. We have classified our memberships in 78 trades and professions. We have the ways and means commit- tee, of which some of you know, which is really the house rep- resentatives of the 78 sub-divisions, just as the House at Wash- ington is the representative of the states in the Union. We elect ^ye men from each sub-division each year. Sixty-five men meet once a week and listen to some program. Up to this year these programs are made up on any interesting subject that we can find. Whenever we found a visitor in town from any for- eign land whom we thought had a story to tell, we invited him to tell it. Some of the most interesting programs naturally were the result of these meetings. This year we decided to try the publicity feature. So we invited each of the 78 sub- divisions to prepare a story, a newspaper article, on their own line of business. Real estate men write up real estate business in Chicago, and so on. This was done in the office because they could get together to discuss what were the news features of their business. They were asked to tell the story of Chicago real estate in the most interesting phase possible It was then submitted to the office, where the two or three newspaper men in the office took it and dressed it up again and it was re- writ- NEWS VALUE IN ORGANIZATION PUBLICITY. 273 ten, re-edited to suit them, turned over to a body of men called the ways and means council of eleven men, carefully chosen from the 78 sub-divisions, representative of the whole associa- tion. They were asked to edit it, write it up again carefully, exclude all questions of politics, etc., and the result was a good story on real estate. So that story, to the extent of say 1,500 words, was read before the ways and means. A good reader was selected to read the story. Copies of that article were sent to every newspaper and to every trade paper in that particular line of business, while one New York paper took these stories by telegraph ever}^ Sunday, sometimes printing them in full, and other times paragraphs from them. The Creation of News As the result we have written up nearly one-half of all of our trades in Chicago. This will form a volume at the end of the year. We will continue that until we have gone the rounds of the 78 sub-divisions, and go again until we wear out the subject. As long as we can furnish news, the papers will take it. No matter how dry it may be at first glance, you will find, if it is carefully written, always something interesting. A string of figures that is astounding, or a string of facts that never before were told, if they bear the stamp of association approval, they are regarded as authentic and they are filed in the newspaper offices for future reference, so we found it to be a great publicity "stunt'' as we call it. Briefly, out of tliat system we have received to date some 2,500 articles of daily newspapers — 500 columns of news space. And you can figure up what 500 columns of news space would cost you at fl.OO a line. You will find it runs into good money. I believe the system can be applied in almost any city because every city has its strong points. The newspapers want news. If you give them news, you make them your friends ; if you try to get stuff into the newspapers that is not news, you wear out your welcome in the newspaper shop, and if you try to put things over on the city editor you make him an enemy, whether ycm succeed or whether you fail; in other words, he will have no further use for that particular source of alleged news. If you get the newspaper man's point of view and give him what he wants, it will serve your needs and his. Now to digress from that particular talk on the newspa- 274 METHODS OF ORGANIZATION AND OPERATION. per man and speak of some of the other things: We never overlook any opportunity to present any association matter to the newspapers that is acceptable to the newspapers as news. We consider a half -inch of space on the first page of a news- paper worth more to us from a publicity standpoint than a half- page of displa}^ on an inside page, and the difference is that the half -inch cost you nothing while the half -page cost you $500. We have never made it a rule to buy display space in the newspaper. We have no rule against it and whenever oc- casion arises where we believe it Avill be to our advantage to buy space, we have occasionally done so. On one occasion in a campaign for public improvement, we spent five thousand dollars in one day for newspaper publicity, and we never re- gretted it, but with that five thousand dollars (it was a page in each of the daily papers), we got columns of newspaper men- tion which was worth more to us than display. The news cost us nothing and the display cost us |5,000. I would have much preferred one-tenth of the news mentioned to the display. CHAPTER XVI. Financing Commercial Organizations Some of the Problems of Organization Finance By CARL DEHONEY Every commercial organization should seek to establish a thoroughly modern and business-like financial department, in charge of a competent man, one skilled in the art of getting money. There are plenty men of ability in other branches of organization work who cannot earn their salt collecting dues from weak-kneed members. There are others who cannot make a speech to an audience, perhaps, but are able to extract money from the biggest knocker in town, or talk the worst backslider into paying admission to the mourner's bench. Such a man, having also a know^ledge of businesslike office methods, book- keeping and the like, is an ideal fellow for financial secretary. Money gained by jjroper conservation of revenues, by realizing every cent possible from membership dues and all incidental sources of income, by discounting bills for prompt payment wherever possible, and by getting interest on organization funds, is just as good, or rather better, than an equal amount of new subscriptions. Such methods invite respect and con- fidence from business men and make it easier to develop addi- tional organization funds. The survival of the fittest is a rule of life's battle, and it will be borne out in organization work. All over the United States cities are bubbling over with enthusiasm for w^ork through organization machinery. Commercial bodies have been developed by thousands. The disbursements of these organi- zations run annually into many millions. Their work, on the whole, is good, and in many ways is splendid. But in too many there is a lack of business methods for conserving rev- enues, keeping costs systems and cutting down waste. There is as yet no uniform system of accounting. Every organization has its own system. What is publicity in one is industrial work in another, and so on. Comparisons cannot be made with ac- curacy. 275 276 METHODS OF ORGANIZATION AND OPERATION. Budget System Every commercial organization should thoroughly classify its revenues, know its cost and follow a budget made up at the beginning of the fiscal year as a well regulated municipal or industrial corporation. The organization that is going to live and do the most good in the future is that organization which seeks to make its finan- cial plan a solid one, that adopts scientific methods in going after revenue and in conducting its business affairs and at the same time seeks to produce lasting and practical results in all branches of its promotion work. We are going to see the passing of much that is only bizarre and ephemeral in organi- zation effort, and we must give such food to enthusiasm that will keep it strong-nerved, steady and fighting on. The situation in our commercial organizations today in regard to accounting, cost systems, etc., is similar to that which has prevailed in the municipal governments of our cities. It has not been possible in the past to accurately compare the financial reports of any one city with others in its class. Now, thanks to the work of the National Municipal League, the fed- eral government and other agencies, order is beginning to come out of chaos in American municipal finances. I believe one of the things this association could well take up and recommend would be the working out of some plan for standardizing, as far as possible, the accounting and business methods of com- mercial organizations. Sources of Revenue Classified The revenues of the average commercial body may be said to come from the following classes of men : 1. Those who expect to receive an indirect benefit from in- creased property values, increased business and other results of good organization work. 2. Those who expect to receive a direct benefit from some specific department, such as a convention bureau, traf- fic bureau, etc. 3. Those who are interested in the direct benefit from facilities afforded, such as a club house, a grain ex- change, etc. 4. Those who contribute entirely from civic patriotism. It would be seen that the element of self-interest enters in BUDGETS FOR COMMERCIAL ORGANIZATIONS. 277 throe out of the four classes, or a great majority. We should remember that self-interest is a different thing from selfish- ness. The progTess of the world has probably been due more to intelligent self-interest than to any other cause. The ideal organization, therefore, is one appealing to all the classes mentioned. I cannot conceive of a better all-around plan of financing a commercial organization than one which opens sources of profitable revenue from all of these classes. Its basis Avould be a permanent continuing membership, with annual dues of at least |25 a year, buttressed by funds raised for special purposes on contracts covering a period of three, four or five years, given by various classes of members directly interested in some department. The board of directors should have power to supplement vspecial funds from the general fund, but money raised for a specific purpose should be spent for that purpose. ^ r , r^ , -r. ^ Refund Surplus Pro Rata Many organizations make a mistake of not being thorough- ly honest with their members or subscribers. For instance : A special fund is raised for the entertainment of a particular con- vention by a committee on which the organization and the local interests affected have representation. There is a small re- maining surplus. Somebody moves to have the surplus turned over to the chamber of commerce for its general fund, or di- verted elsewhere. This is not right and it is not good organiza- tion policy. That money belongs to the subscribers and it should be returned to them pro rata. If more organizations would folloAv that method they would not have so much trouble raising special funds. In towns having no live organization, or where the work has been at a low ebb, and it is desirable to organize a new movement, the best plan is the three-year contract. The rais- ing of such a fund insures stability for a period sufficient to show results to procure renewals and lay the basis for perma- nent income. ^^ . „ , ^ r ^. Various Methods of Financing The subscriber is allowed to indicate the class in which he is willing to be placed for assessment. While this particular plan has not been worked out, it contains the germ of truth which may solve the problem. It opens up interesting possi- bilities in many directions. Somebody, let us hope, will yet produce a plan to include the holder of larger property inter- 278 METHODS OF ORGANIZATION AND OPERATION. ests in our cities, who have been made rich by the growth of these cities, to more readily realize their self-dnterest in de- velopment work. Up in Saskatoon, where a million-dollar fund was recently raised, I am told that subscriptions of |20,000 each were made by five young men who had gone to north- western Canada a few years ago and made fortunes in gold in- vestment and increase in land values due to the city's upbuild- ing. While we can hardly expect many such contributions in older and more conservative centres, what a great work could be accomplished if the men most directly interested, the hold- ers of the real estate, would come nearer doing their part! Budgets for Commercial Organizations By A. HEATH ONTHANK In these days of efficiency and standardized business prac- tices it is strange, indeed, that organizations composed of the leading business men of the communities should be behind the times in the conduct of their own affairs. It is only recently that any agitation has taken place to bring chambers of com- merce to the level of other commercial and industrial enter- prises in the administration of their finances. Whether it is because the presumed difficulty connected with the variable work of commercial organizations, or whether it is because these bodies have been so busy remodelling the affairs of the world that they have had no time for their own, it is true, nev- ertheless, that a great many chambers of commerce, and many of the foremost ones, have made no attempt to plan ahead the expenditure of their income. Today we hear much about budgets for the federal gov- ernment and for municipalities. The body politic, at any rate, has become alive to the necessity of a stricter accounting for the methods of disbursing its moneys, and this wave of public opinion seems at last to have reacted on commercial organi- zations, so that they, the usual makers and leaders of popular sentiment, are now endeavoring to catch up with it in the matter of budgets. Budget-making is, in essence, no more than forehanded- ness, a look ahead to future events and contingencies. A busi- ness man who sees only a week or month before him has about as much chance of survival as any individual who at present BUDGETS FOR COMMERCIAL ORGANIZATIONS. 279 would trust to the ravens for his sustenance. Why, then, must commercial organizations feel that they are exempt — a class apart from all others? Chambers of commerce, boards of trade, commercial clubs, or whatever they may be called, have two general fields of ac- tivity — short-time projects and long-time enterprises. The former may take only a week, but perhaps a year or more ; the latter are certain to be carried through a number of years. In any event, it is clear that there are certain activities which must be carried along from one fiscal year to another, and for the welfare of which a certain amount of pre-planning must be done. Are they to be left alone to pursue their lonely courses in haphazard fashion, or are they to have definite mile-posts to reach each year, helped along by a knowledge that there is a certain amount of monetary fuel which, if judiciously ex- pended, will bring them to their goals? There are several very obvious advantages of a budgetary system which should be stated at this point. In the first place, budget making causes, ipso facto, pre- planning. It is quite apparent that if a reason for every ex- penditure to be made during the forthcoming year must be given at the start of that period, there must be some sort of preconceived ideas concerning future activities. A committee with work just begun must plan the extension or completion of its labors with an eye to every possible eventuality; a bureau or division entering or carrying forward a specific field of un- dertakings must work out its ways of procedure, their costs, and their limitations. It is entirely unnecessary to point out in detail the beneficial results of such pre-planning on commit- tees, bureaus, and officers. Secondly, a budget gives to the commercial organization as a whole, a definite basis of action. The officers know what is to be accomplished, know that there is the wherewithal to do so, and are thus free to turn their attention to new plans, administrative work, or emergencies. Thirdly, through the "pruning" process of the ratification body, the work of each committee or bureau is brought into its proper place in the formation of a well-rounded plan of work for the whole organization. Pressing activities are given a clear track; minor projects are sidetracked when and where necessary. The president who has a "squint" in favor of city 280 METHODS OF ORGANIZATION AND OPERATION. planning is not allowed to dump most of the contents of the treasury into his pet schemes when it is much more urgent that the organization devote all its energies for a short time to a convention. Thus, the budgetary system weighs all plans in the balance, and chooses the most beneficial for immediate empha- sis. It must not be thought, however, that the budget would cause work in most lines to be dropped while the favorite schemes of the moment were being pushed. Per contra, the fourth advantage to be noted is, that while the more important plans are receiving most attention, the others are all being carried along according to a well-conceived plan of develop- ment. The budget permits a judicious expenditure of income on the main work, and, at the same time, is nursing the other enterprises along to the point when they shall become the chief activities. Fifthly, if the budget is well planned, it will provide for emergency actions as well as for preconceived plans. And sixthly, the financial system of the organization is put on a firm and rational basis of a proper relation of income and expenditure. Insolvency is out of the question and the members are sure that their dollars are being expended in the most beneficial manner. Any idea that the system of budget making is applicable only to large commercial organizations whose incomes run into the tens of thousands is entirely erroneous. It is true that where large sums of money are involved strict planning and accounting are necessary, but it is no more true for an organi- zation of that sort than it is for a small chamber of commerce, where the money received must be put to the most advantageous use in order to see results of any kind. In either case the ad- vantages as enumerated above accruing from a strict adherence to a system of budgets are potent factors in the successful com- pletion of the functions of the organization. This report, therefore, will aim to set forth methods of budget-making for commercial organizations which will be applicable to the small as well as the great. Present Systems of Budget-Making in Commercial Organizations The information on which this study was made is based on a questionaire w^hich was sent out to all organizations which BUDGETS FOR (X)MMERCIAL ORGANIZATIONS. 281 were known to use the budget system, a copy of which is pre- sented herein. (Exhibit A.) From these organizations ninety replies were received, giving results varying widely in their scope of enlightenment. The result has been, however, to shed a broad light upon the differing methods of constructing budgets in these organizations. A. Income A great majority of the commercial organizations from which data were obtained received dues of fixed amounts ac- cording to special classes of individuals and firms. The dues varied from nothing at all — in which case the organization was supported by a special city tax — or $5.00 annually — in the case of organizations whose members paid dues — to as high as $3,000 — in the case of a contributing concern which paid what it be- lieved the services of the commercial organization were worth. Because of the varying sizes and functions of these organiza- tions, it would be misleading to endeavor to find the average or normal rate of dues, since comparability is out of the question. B. Method of Preparing Budget Estimates. Methods of preparing estimates for the annual budget vary widely; there are at least nine different ways in which esti- mates of the financial needs of organizations come into being. Over one-half of the organizations which replied to the ques- tions concerning the preparation of estimates, however, start the planning of Avork and approximation of necessary expendi- tures in the committees or bureaus. The usual routine is for the committee chairman or bureau head to call a meeting of his unit for the purpose of laying down plans and estimating the amounts necessaiy for their consummation in the coming year. When this is done, it is often the custom for the committee chairman to confer with some higher authority, and in such a case, the higher authority may be the executive secretary, the finance committee, the executive committee, or even the board of directors ; practice varies so widely that it is impossible to lay down any general rule for this custom. The detail with which these estimates are prepared is again widely divergent in the reporting organizations. For the most part, however, the estimate is made out only in a very general fashion ; only nineteen out of fifty -three organizations claimed any amount of detail in their estimate. In a great many cases 282 METHODS OF ORGANIZATION AND OPERATION. it is evident that the extent of the estimates is reached when fixed charges of salaries, rent, heat, light, etc., are set down. Most organizations in constructing their budgets base the estimates on a definite schedule of work for the ensuing year. These are naturally made out on the basis of the work and ex- penditures of the preceding year, modified by the work which is foreseen for the coming year. These vary from being "more or less'' in detail to a rigid and specific schedule of tasks worked out on anticipated proposals and committee or bureau work in process of completion. It is the general custom where such schedules of work are prepared to have them made out by com- mittees, under the supervision of a higher authority, e. g., the secretary, finance committee or board of directors. C Ratification of Budget Estimates. When it comes to ratification of the estimates it is again quite evident that there is one method more popular than any two or three others, viz : ratification by the board of directors. Out of sixty-three organizations answering the questions in this field, twenty-five ratified their budget estimates through the board of directors; fifteen through the finance committee plus the board of directors ; eight through the secretary and board of directors; and five by means of all three of the above named agencies. In other Avords, it may be stated safely that it is general practice for the board of directors to possess the power of finally ratifying the budget. The board of directors and its subsidiary part, the execu- tive committee, also play the chief roles in controlling the ex- penditure of budgeted funds. Twenty-seven out of forty-eight organizations thus controlled expenditures, and ten more ad- ded the control of the secretary to either control by the board of directors or executive committee. Over three-quarters of the reporting organizations finance the work of their special committees out of their general funds — the unappropriated surplus after provision for the budget expenditures has been made. Several of these chambers of com- merce, however, are very willing to resort to special subscrip- tions to eke out the general fund, and quite a few rely on this method entirely. But few organizations provide a special fund for financing the work of special committees. Twenty-six out of sixty-six organizations pleaded guilty BUDGETS FOR COMMERCIAL ORGANIZATIONS. 283 to the possession of a contingent fund, and it is evident that among these twenty-six, the uses for that fund are very di- vergent. Some use it for emergencies and abnormal, extraordi- nary expenditures; some for payment of small cash expenses; some as a nest egg; and one even used it as a building fund. Apparently contingent funds. are not yet in vogue. It is almost useless to try to find commercial organizations with special forms of budget accounting or of budget con- struction. Most of the reporting organizations proudly state that they have the most approved bookkeeping methods and that the voucher system is used, ^^hich is not to be marvelled at greatly, considering the character of their memberships. The conclusions that may be drawn from this questionaire are that there are many commercial organizations which claim to run on a budget basis, but for the most part their systems are those in name only; and there are many, many more or- ganizations which claim no relation to a budget system whatso- ever. It is mainly for the benefit of these latter chambers of commerce that this study of budgets in commercial organiza- tions isi being made, and it is with the hope that the conclu- sions which are set forth her-ein will help them to realize the need of a budget system, and that the methods proposed will make the road easier, that some attempt is undertaken to throw niore light on this important subject. . ^ Relation of Budgets to Working Plans A. Income. Very little difference in construction of the budget is made by the fact that an organization has either fixed or variable dues. In either case the income for the future year may be approximated with a large degree of accuracy, and if any un- certainty is felt it is easy to slightly underestimate the income. It is advisable to study the past records of deaths, resigna- tions, and members dropped for non-payment of dues, in order to find the rate of mortality in the membership. One organi- zation is said to write off 10 per cent of the income of its membership each year. This figure, with an estimate of new members each year, derived from a similar study of the records, should give a fairly accurate approximation of income to be derived from members during the forthcoming year. The same procedure should be followed in estimating the income from bureaus, divisions and miscellaneous sources. 284 METHODS OF ORGANIZATION AND OPERATION. This estimation of the income is a matter for consideration by the finance committee. It would be well, if the general sesed for payment the checks are given a number and are again entered in the cash book as a credit to the bank and a debit to vouchers payable. The difference be- tween the checks issued and the vouchers payable is the ac- counts payable of the institution. There is no question that this is the proper system to use in large mercantile institutions w hich make a large percentag3 of their purchases on an extended credit basis. Since practical- ly all chambers of commerce are operating on a cash basis it would seem unnecessary to make the duplicate record. We, therefore, recommend a voucher incorporating on its face the "*- v^ 1 Q, 5; O 1 . >§ -^ ^ Q< 1 • C; ^ ^ vo C> l;5|;5 "<; ^ ^ ^ % |>^^ ^•^ V)§ BLANK CHAMBER OF COMMERCE sO Che^mSer- c/* Cor»tner-ce &/c/y. o. To Blank Bank ^ at I/, State Pau Dnlhy,^ f °cf To the orc/er c r- Tf}e B/ank Ctiamber of Commerce /?./ ■^ /re^surpr (mnfprs/^ffflf/ fl// ^ y Secretary 360 METHODS OF ORGANIZATION AND OPERATION. check and on the back the distribution of the charge; that it be recorded direct in a column cash book and credited to the bank as a check issued and the charges distributed according to the items as recorded on the voucher portion of the docu- ment. This should not be a sheet from which the voucher portion can be detached. It should be a single document, and when it is returned from the bank can be filed with the support- ing documents in the same manner as a duplicate voucher is filed. A simple form of voucher is shown on this and preceding page: DATE DESCRI PTION AMOUNT AUDITFD APPROVPn FOU D HE fi-EL DISTRIBUTION DEPARTMENT ACCOUNT NUMBER AMOUNT N26 7. Books of Account. We recommend the following records as the permanent books of account: (a) Cash receipts. (b) Cash disbursements. (c) Journal. (d) General ledger. (e) Subsidiary records as needed. FORMS, RECORDS AND FINANCIAL ACCOUNTS. 361 (a) Cash Receipts. — This should be a loose-leaf form, ruled, with printed headings, date, name, folio (symbol check), amount and with enough blank columns to bring the sheet to the size of the disbursement record, so that they may both be used in the same size binder or, in the case of the small organi- zations, in the same binder. The last two columns should be ruled and have headings in blank for bank deposits. (b) Disbui'sements. — This record should be practically a stock ruled columnar journal sheet. Suggested headings are date, name, folio (symbol check), next column blank, under which would come two headings, account and number, followed by heading "check number'- and approximately ten blank columns, which can be headed with department or commitee activities. These in turn are followed by two columns with general heading blank for bank withdrawals — this on the theory that many chambers use more than one bank, but hardly more than two in one month, the sheet to be the same size as the cash received sheet. (c) Journal. — This should be an ordinary three-column stock-ruled sheet, preferably 9i4xl 2-inch size, to be used in the same size binder as the general ledger. Mofiflilij Sldfemeni of Depdrlmenl Expenditures Depdrtment. .Month 01 BU DGET MONTH EXPENSE MON T-M BUDGET TO DATE EX pense: TO DATE I Salaries 3 PnntJncj 4- 5l6fionery 5 Auh Mire 6 Travel I nq Expense 7 Renf Etc N08A 3^2 mp:thods of organization and operation. (d) General ledger. — We recommend the ordinary stock- ruled ledger sheet, with debit and credit sides equal, but with the two columns, debit and debit balance and credit and credit balance, on each side of the sheet for the general ledger. This sheet is 9i4xl2 inches to conform with the journal. (e) Subsidiarj^ records.— We find that it is necessary in some of the larger institutions to carry subsidiary records in order to amplify the accounts, as shown in the major records. Recapitulation of Expenses Current Ycdr to Ddfe 19 A B C D E F G Total 1 Salaries 2 Postage 5 Printinq 4 Stationery 5 Auto til re 6 TrdvGlinq Expenses 7 Rent 8 Elc 9 10 II 12 15 14 15 16 17 18 19 20 Total N28B FORMS, RECORDS AND FINANCIAL ACCOUNTS. 363 For instance, in the general ledger the accounts receivable ac- count is represented by the membership ledger, which is sub- sidiary and itemizes in detail the gross total shown in the mem- bership account on the general ledger. This is necessary in other instances such as the distribution of expenditures of com- mittees and departments. These forms can scarcely be stand- ardized to be adaptable to the needs of all organizations, but they should be made to conform strictly to the general system used in the recapitulation of expense and the disbursement records. S. Recapitulation of Expense. In order that this form may be properly kept it is recom- mended that the accounts of the several departments or com mittees be standardized as far as possible on the numerical basis. This is provided for in the form of the cash disburse- ment record. As an example, Department "A" (the "A'^ being merely used as a designation of a department or committee) would use the numbers from 1 to 20 to designate its activities, 1 being salary, 2 being postage, etc. ; Departments B, C, D, etc., would use the same numbering system for detail of items. Thus "A-3,'' "B-5," etc., would instantly identify a charge. In other words, the prefix (letter) would be the department or commit- tee and the suffix (number) the expenditure. Blank Chamber of Commerce Chamber of Commerce Buildimj Purchase Order 4/^_ tut liii Humirr on hrn'cr City Staio. Deliver to ^ 19. M. QvantHij Arfic/e^ Price Amount Ordered by . Charge Blank Cham ber cf Commerce By Secretory N29A 364 MPTTHODS OF ORGANIZATION AND OPERATION. The monthly summary of expenditures of each department (or committee, etc.) should include this information. These monthly statements of departmental expenditures are brought together in a general summary as follows: (See p. 362, No. 8B.) 9. Purchase Order. All purchases should be by order signed by the secretary, issued in triplicate (or quadruplet). A simple form as shown on page 363 : The original of the purchase order goes to the party from whom goods are bought. The first copy, yellow (punched for a loose-leaf binder) , goes into a permanent binder, to be checked off when settlement is made. The second copy, pink, is held and attached to bill when received, so that when voucher check is signed it has attached, for the information of those required to approve or certify, copy of purchase order, together with bill. Where an organization is departmentized there should be as a preliminary to the purchase of goods a requisition, issued by the department manager or chairman, in response to which the goods are purchased and charged to that department. Such a form provides : This department requisition is also attached to the bill when received so that complete information may be supplied. 10. Expense Account Form. A suitable form for recording expenses in traveling is con- venient and promotes accuracy. Such a form is suggested on page 365 : 11. Petty Cash. For the handling of petty cash items the form on page 366 is recommended : 12. Monthly Membership Kecord. A useful form for monthly reports of membership standing, as shown on page 366, gives this data : 13. Membership Prospect Card. Supplementing the official membership record there should be maintained a permanent prospect list, "permanent" being used to imply that the list is kept up at all times, not made up sporadically when "drives" are contemplated. Such a form is given on page 367 : FORMS, RECORDS AND FINANCIAL ACCOUNTS. 365 REQUISITION PURCHASING DEPARTMENT Drth /Q Please obfdin for /he use of thts Deparfmenfjhe followincj. QUANTITY DESCRIPTION PRICE 5i,e adequate for a small organization in its beginning, but just IS surely as that organization grows and its activities increase vud multiply, it will, I believe, prove to be inadequate. There- 'ore, if you would avoid the quicksands of chaotic filing, start (vath, or speedil^^ adopt a system based upon the principle and constructed under the method which is easily capable of ade- quate and simple expansion to meet the growth of your organi- sation. PART III. Qualifications and Self-Training of Secretaries 887 CHAPTER XX. The Qualifications and Self-Training of the Secretary The Qualifications of the Secretary By WILLIAM GEORGE BRUCE The promotion of the economic and civic welfare has be- come the distinctive function of a voluntary body of business and professional men in every enterprising city in tlie United States. Time and experience have taught that certain duties, in achieving the ends here to be attained, cannot on the one hand be left solely to individual initiative, nor can they con- sistentl}^ be delegated to the local governmental authorities. They must, in the nature of things, be entrusted into the hands of the collective citizenship, free from political influ- ences and class prejudice, competent to analyze conditions and prospects and apply measures and departures to attain desired ends. In the Formative Stages The modern commercial organization is still in the forma- tive stages of its development. Its scope and purpose, plan of construction and administrative policy are gradually being lifted from hazy and conflicting conceptions into the light of clearly defined outlines and limitations. Forces which have hitherto slumbered unconscious of the unperformed tasks that lay about them have been awakened into useful action. They have become living, breathing organisms, have assumed definite form and identity and are performing the task which falls to them. Thus, the elements w^hich have been combined for the pur- pose of promoting the economic and civic welfare of the com- munity have grown into a fixed institution which, within its chosen field, must lead in thought and action. It must discover the possibilities for material and civic advancement, focus public attention in the direction of laudable projects and crystallize a wholesome sentiment in support of them. 389 390 QUALIFICATIONS AND TRAINING OF SECRETARIES. While maiiy of the commercial organizations both in the larger and smaller cities have a definite plan and scope, and work towards prescribed ends and purposes, there are thou- sands of organizations whose efforts are spasmodic and aim- less, and who lack both the elements of permanency and effi- ciency. The Seciretary in the Making There can be no wide difference of opinion upon the claim that the secretary, who aims to serve such a movement or body of men with the highest degree of eff'iciency, must have First: A due appreciation of the function and mission of a commercial organization ; Second: An exact understanding of the relation he bears to the organization, its board of directors, to the executive offi- cers and committees, to the membership and to the general public ; Third: A thorough comprehension of the requirements of his position and a determination to equip himself to meet these requirements. But, if it can reasonably be held that the commercial or- ganization is still in its formative stages then it must also be conceded that the commercial secretary is still in the making. While the general mission and purpose of the commercial or- ganization has been fairly understood the status of the commer- cial executive has not been defined with any degree of clearness. No standards have been fixed, nor have any definite rules been formulat^id governing his qualifications or outlining his scope of action. Men have hitherto been chosen for their character, vigor- ous manner and general fund of information. An impressive and genial personality, a readiness of speech and a perceptive and receptive mind coupled with certain experiences, have been the generally accepted requisites for secretarial positions. The relations which the secretary bears to his association, or, more properly speaking, to his board of directors or com- mittees, varies considerably and is governed in part by fixed by- laws and in part by the temper and mental qualities of the sev- eral factors involved. In one organization the secretary is merely the record keeper of the office, the clerk who arranges for meetings and who keeps the minutes, and in another he is the accepted leader who gives both inception and momentum THE QUALIFICATIONS OF THE SECRETAKY. 391 to association effort. In the one the board reserves to itself both the initiative and the executive power, while in the other it sits in a legislative or judicial capacity. While there are variations from these two somewhat ex- treme, or at least highly emphasized opposite, relations be- tween secretaries and their boards, the fact remains that this relation has not been standardized or even brought to a general uniformity' of rule or understanding. Secretary and Board I have intimated that the attitude which the secretary bears to the board is influenced by the relative mental capac- ity of the two. If the secretary possesses the power to impress the board with a superior grasp of the problem in hand, the facility to present the same clearly in its several aspects, and the point with assurance to a logical solution, he will assume a larger place in the association deliberations. If he is gifted Avitli tact and judgment he will secure for himself a wider lati- tude and authority. If he proves himself the intellectual equal of his associates, coupled Avith the application of diplomacy and skill in dealing with both men and afifairs, he will soon become the dominating factor of his organization. With the development of the commercial organization, its purposes coming into stronger relief and its activities assum- ing definite form and character, it logically follows that the qualifications of the commercial executive are put to a rela- tively stronger test. His duties will become more exacting and will involve to a greater degree that intelligence which sees op- portunities and at the same time the path that leads to their realization. The secretary must be the storehouse of ideas, innovations and policies and must exercise that discrimination which dis- tinguishes in them the feasible from the impossible and the substantial from the trivial. The board must serve as the final hopper >N hich separates the grain from the chaff. Action and Achievement The impetus which has been given to commercial organi- zations by the creation of the Chamber of Commerce of the United States of America has also directed attention to the im- portance of the secretary as a controlling factor in promotional 392 QUALIFICATIONS AND TRAINING OF SECRETARIES. effort. It lias done more. It has led to an appreciation of the fact that an organization cannot be vigorous and effective un- less the secretary be energetic and efficient; that an organiza- tion cannot realize its highest aspirations unless the secretary be a man of originality, of action, of achievement. Some one may here suggest that a strong president and board will eliminate the necessity of a strong secretary. The answer to this claim is that the average business and profes- sional man who serves on a board or a committee can give little or no time outside of the committee meetings. He may submit an idea or suggestion but it is more likely that he expects to deliberate over and express his approval or disapproval on what has been planned b}^ the secretary and submitted in some tangible form. The salaried secretary gives his sole thought and effort and his entire time to the association while the un- salaried director is expected to give it his occasional attention only. The latter, therefore, expects merely to sit in judgment on what the executive officer has originated and devised. I may also here add that it always requires a strong secretary to reckon with a weak or erratic committee. A Semi-Public Character The qualifications sought in a secretary mil, in future, command a wider range and will be subject to closer scrutiny. His status, too, will be more clearly defined. His office which is semi-public in character will be subject to the praise or con- demnation of the press and the public, the association members and the board. All these factors will not only seek in the secretary char- acter and ability in an ordinary sense, but will exact expert knowledge on promotional subjects as well as a wide range of information. The day of the dashing, hurrah, circus-style sec- retary, the man who talks glibly and lacks stability of charac- ter and a solid education, is gone by. The future will demand in a stronger degree a thoughtful, well-balanced man, who by virtue of his mental equipment, his broad vision and dynamic powers can meet every exigency and condition and command the confidence and cooperation of his associates. If the future demands a higher type of man in executive secretarial duties, looks for expert knowledge and that culture and training which can most readily be gained through higher THE QUALIFICATIONS OF THE SECRETARY. 393 institutions of learning, then the position will be elevated into a distinctive profession. The Promotional Expert Nor is this prospective view of the situation an unreason- able one. The demand for men capable of assuming the man- agement of commercial bodies is constantly growing. With it has grown the demand for better men and the payment of bet- ter compensation. Two institutions of learning, Harvard Uni- versity and the University of Wisconsin, are inaugurating courses for commercial secretaries, which embody subjects in political economy, civics, sociology, and concrete problems in town development. The young men thus equipped and trained will enter upon their duties Avith an understanding of the funda- mentals in promotional effort and with a scientific knowledge of the principles that must govern in the solution of all local economic and civic problems. Here I do not hold that the secretary of the future must necessarily be a college graduate. The man of native ability and resourcefulness will here assert himself just as he does now in the commercial and industrial field. In outlining the future am I predicting too much? Am I setting standards which are too high and therefore unattain- able? Will the commercial organization of the future exact high and well defined qualifications? I am firmly convinced I have not aimed too high in my pre- dictions or that I have fixed unattainable standards. The day of the expert has arrived. With the advancement in all lines of human endeavor, with the constantly increasing demand for greater efficiency in the channels of trade and commerce, in agriculture and transportation, in government and education there will come also greater concentration and efficiency in community advancement. Collective effort must find its lead- ership in men who are big of heart, of mind and of vision. It must find its best expression in that community progress which recognizes both the material and the ideal. In the assembling of community forces, in the collation of ideas and efforts, in lending direction towards the achievement of desirable ends, there must be the calm head and firm hand of the expert execu- tive. 394 QUALIFICATIONS AND TRAINING OF SECRETARIES. A Summary of the Several Functions First : Tlie mission and function of the commercial organi- zation. Second : The qualifications of the commercial secretary. Third: The relations between secretary and the organi- zation. 1. The Organization. (a) The aim and object of the commercial organization is to foster, protect and advance the commercial, industrial and civic interests of the community. (b) To bring the advantages of geographic location, top- ography and environment to their highest stage of development, utility and attractiveness. (c) Prompt progressive thought and action in all that will make for an enlightened, contented and prosperous com- munity. 2. The Essentials of a Commercial Secretary. (a) He must be a man of character, of moral force, and endowed with a strong human sympathy. (b) He must possess a liberal education, the power of ex- pression in speech and in manuscript, and a fund of informa- tion along practical lines. (c) He must be grounded in the principles governing economics, political economy, civics and sociology. 3. Relation Between Secretary and Board. (a) In the main the function of the board is legislative and judicial, while that of the secretary should be executive and administrative. (b) The board deals with questions involving policies and expenditures and all new departures, innovations and un- dertakings. It deliberates, determines and decides. (c) The secretary originates, initiates, devises and recom- mends and becomes the administrative right arm which carries conclusions and instructions of the board into execution. Here it also logically follows that the prerogatives and authority of the executive will become more clearly defined and expressed. He will stand in a relation to his board similar to that of the superintendent of schools to the school board. He THE QUALIFICATIONS OF THE SECRETARY. 395 will be the promotional expert and g;eneral executive just as the school superintendent is the educational expert and general administrator of the school system. In prestige and as a useful factor in the life, efforts and tendencies of tlie committee his position will be similar to that of the mayor of the city. While he will be less assertive in the eyes of the i)ublic, he will, never- theless, be the most forceful n()n-])olitical, non-partisiin leader in all movements making for material progress and civic and social betterment. He will l;e the receptacle for the best thought and impulse of his community, the fountain from which springs that pride and patriotism which stimulates loyal citizenship; the loyal warrior who constantly seeks to realize its fondest hopes, its highest ambitions and its noblest aspirations. >X^*M > -: CHAPTER XXI. The Most Helpful Secretarial Literature By ROLAND B. WOODWARD This paper can he only snggestive. Bnt in order that it may contain snggestions, we must inquire what the secretary would or should like to be helped to do. What constitutes an ideal secretary — wliat is he engaged to do? The answer to that ques- tion is as varied as the men liere and the communities irom which they come. It is simple and sure that a man, in order to play an im- portant part as an efficient secretary, in sliaping the develop- ment and work of his organization, should know the resources of his community — namely, its raw materials, its wealth and its people. From tliese must be produced oi' utilized its opportuni- ties. But he must do more than have a knowledge of its re- sources. He must know how to guide and inspire its people (especially those in his own organization) to use the commu- nity's resources. To get out of every member of the community, through or- ganized effort, the best that is in him for the benefit of the whole community, that's the secretary's job; to guide the units in a community in working together for the community good; to direct those efforts, and manipulate those units, so as to achieve the best results with the available materials, money and men. A man cannot know and continue to know; he cannot in- spire and continue to inspire without feeding his mind and h^*s spirit. The better his preparation for his difficult task the more he desires to keep open the sources of knowledge and of poAver ; the poorer his prei)aration, the more he needs to open up or to keep open the sources of knowledge and power. The secretary's work, to aid him in doing Avhich he requires "helpful secretarial literature," is, therefore, fourfold : 1st. A perpetual vision of the ideal conditions and human relations Avhich he covets for his community ; 2nd. A knowledge of Avhether — and how — such ideals have been realized or are being realized in other times or places; 396 THE MOST HELPFUL SECRETARIAL LITERATURE. 397 of the diiriculties met and oveicoine ; of the difficulties that have proved insurmountable — and why! Of available instruments for carving out his "ideal" and knowledge of how to use them. 3rd. Mental processes that will devise ways and means where there is no precedent to point the way. 4th. Wisdom and persistence to direct the human element : a genuine love of his fellow-men to enable him to work in har- mony with them and to inspire them to work harmoniously with one another. Reading as a Helpful Factor It is to "make good" on this "job" that the secretary needs help; and making good is infinitely more than merely satisfy- ing his employers. The necessary equipment for the man under- taking this "job" comes from various sources, of which reading is one. In discussing this one, I do not for a moment belittle the others, some of which are: inherent qualities; early train- ing and environment; physical condition; experience; the ex- perience of others — either seen at first hand — as one does in traveling, or heard of by w ord of mouth ; personal contact with inspiring personalities; educational equipment before under- taking this w ork, and not planned with an eye to it. Measure up these three — size and quality of the job, the necessary equipment, and the sources from w^hicb it is obtained — and you see that each item of equipment can be improved or added to by reading. Nor does the importance of reading as a source of equipment minimize in any way the importance of the other sources, any more than the value of intelligence mini- mizes the importance of education, or the value of our sense of hearing minimizes the value of sight. It is evident that altogether different kinds of reading are required to perfect the various kinds of equipment, and that in some cases, it is more necessary than in others. In order that my suggestion might be based on others' ex- perience and opinions as well as on my own, I sent to fifty or sixty secretaries a questionaire which was supposed to be built on the principles of a nut-cracker, that is, I hoped it would ex- pose all the "meat" of the matter. Two things w^hich it exposed quite clearly were a difference of opinion on some points and a lack of opinion on others ; thus forming a basis for discussion, if not for conclusions. One con- clusion, however, is unavoidable — that there is great need for 398 QUALIFICATIONS AND TRAINING OF SECRETARIES. systematic winnowing, in order that the secretary may concen- trate his reading effort on the things which he needs and not fiddle it away in a confused mass of irrelevant and uninspiring matter. Vision and Enthusiasm Because of the ^'vision/' the ever-present picture in the sec- retary's mind of the ideal to which his community should aspire, is the first essential in the secretary's equipment, I shall take up first those questions which bear on this. Among my ques- tions were these : "To what extent do you rely upon reading to sustain your enthusiasm?" "Upon what kind of literature can you rely for inspira- tion?" "What kind of literature is most apt to enlarge your vision, to increase your desire to accomplish? Increase consciousness of ability to accomplish?" Judging by the responses, the consensus of opinion appears to be that one accidentally "happens upon" inspiring articles. Of those who specified certain kinds of reading for this purpose, at least two-thirds referred to such literature as furnishes ac- counts of things now in process of accomplishment, such as pub- lications of commercial organizations, Town Development, The American City, The Nation's Business. Knowledge So much for the vision ! How about the knowledge ! The knowledge of what industries have the best opportunity to thrive in our locality ; of which can be made to thrive that do not now ; of how all local resources can be utilized for the community's greatest profit; knowledge of how to give the citizens the best opportunity to develop themselves, how to conserve their health, their property ; knowledge of which other communities are fac- ing our own problems — and how they are solving them ; knowl- edge of the effects of indifference as well as of the benefits to be reaped from an awakened public interest; knowledge of the character of soil in which will thrive the plant of civic right- eousness and the common good ; knowledge of how our own com- munity can best play its part as a fraction of the whole nation ; knowledge of how "to promote commerce and industry," by pro- THE MOST HELPFUL SECRETARIAL LITERATURE. 399 tecting it from unfair and hampering laws; how to prevent ac- cidents in shops, on the street, and in the home ; how to prevent waste of life and of property by fire ; how to cooperate for bet- ter industrial and commercial training for those who work with us in store, office and factory; how to improve the transporta- tion facilities, which bring people to us and carry our products to them ; how to abate smoke and other nuisances ; how to apply arbitration so as to reduce business friction ; how to utilize our unused assets — the power of our rivers, the possibilities of our lakes, for pleasure and for business ; how to extend our acquain- tance and influence by bringing to our community groups of people in their conventions ; how to cooperate with every village and city in the community in the solution of its problems. Now, here are the questions I asked in order to find out to what reading commercial organization secretaries look for the necessary information to accomplish these things : "To what extent do you rely upon reading to sustain such knowledge of current events as is necessary for your work?" "Cite instances of direct connection between what you have read, and new activities planned, undertaken or accomplished." "Where do you find the most complete, or most reliable information as to what other cities are accomplishing in : A. Increasing number or size of their industries? B. Increasing volume of their retail and wholesale busi- ness? C. Keeping their name favorably before the public? D. Obtaining and keeping good transportation facilities? E. Utilizing available power? F. Making their city desirable residentially by increasing educational facilities ; improving sanitary conditions, civic and public morality, quality and quantity of amusements, community spirit, beauty of streets, buildings and parks; establishing playgrounds." The only noticeable difference in the replies is that some few secretaries — or so one would judge from their replies — indulge in no reading but that of the daily newspapers. With the ex- ception of those whose Bible is the newspaper, there is, except in the estimated importance of the reading matter mentioned, a striking oneness of experience and opinion. All appear to look to commercial organization reports, The Nation's Business, Government Reports,. The American City, 400 QUAI.IFICATIONS AND TRAINING OF SECRETARIES. Town Development, The Municipal Keview and local New York newspapers, reports of city planning conferences. Other sources mentioned, but by fewer, are Fire Prevention^ News, publications of the New York Bureau of Municipal Re- search, Municipal Engineering, World's Work, Literary Di- gest, Continental new^spapers, City Traffic Journals, Housing, Conventions' Reports, Architectural and Building Journals, Outlook, Advertising and Selling, Printer's Ink, The Era, The Survey, Special Reports of The Alexander Hamilton Institute, Editor and Publisher, The Independent, The Proceedings of the Secretary's Association. The Flood of Printed Matter This brings me to a plaint made by practically all, with some suggested solutions of the problem concerned : I cannot read everything that comes in ; and I do not see nearly all the valuable reading matter which is mailed to me. I do not see one of ten of the pamphlets that come to my desk. Much of the best mail never reaches my eye. The man in the large office, with a corp of assistants often does not see much of which would interest him most deeply, while the secretary of the smaller organization, the one who, so far as the office is concerned, is playing a "lone hand," natu- rally canliot read everything that comes in. Both feel that a winnowing machine is needed, to auto- matically throw^ out the chaff and save the wheat. While almost all experience this need, comparatively few have systematically attacked the problem. Here are a few who have : I have an office arrangement whereby various members of the staff are requested to clip out items of interest in any and all publications that come to the office ; these are pasted on cards, and come to my desk before going to the files. I now have regularly upon my desk the editions of fifteen house organs which seem to be of the greatest value, and a member of the staff glances through all — giving to the different men in the office such articles as may be- of special interest to the departments of which they are in charge. I maintain a scrap-book containing clippings from commercial organiza- tion publications and other sources calling attention to activities that seem to me to have merit. One of my stenographers looks over and marks the morning papers for me, and another gives attention to the evening papers, and still another gives attention to the various weekly and monthly magazines. The assistant who discovers Something of particular importance to this office or to myself im- THE MOST HELPP^UL SECRETARIAL LITERATURE. 401 mediately calls my attention to it. I try to look over the headlines of every- thing marked each day — though often I do not succeed. ^ In my own office I am now trying a new sifting arrange- ment. Each member of the staff is asked to mark anything which he thinks would especially interest the secretary, to at- tach a memo thereto, giving the number of the pages on which the notations have been made, and to place it upon my desk. In this way the secretary gets, with the minimum expenditure of time, the maximum of real nuggets. Many books and pamphlets which heretofore I would have felt it necessary to look through myself, I now send to a member of the staff who afterwards returns it marked in such a way that I can in two or three minutes get all the meat there is in it for me. The file clerk also, before filing articles clipped by any member of the staff — the initial on the article shows who sent it to the files — passes such articles to any other member of the staff whom she knows it would interest. We not only have the local papers marked, but clipped and pasted, so that everything on a given subject can be kept togeth- er. This arrangement which has been in effect for several dec- ades, we consider the only practical method of handling that which concerns or interests the organization, in the local news- papers. Educational Equipment — Reference Matter My questionaire did not concern itself with what should constitute the standing reference library of a commercial or- ganization, or A^ith what should be a secretary's preparation for secretarial duties. Among the responses, however, these points were touched, and some indicated such serious thought and analysis. I shall quote from a letter by William George Bruce : The modern commercial secretary, in order to exert the necessary influ ence and command leadership, must be the intellectual equal of his associ- ates. He must primarily be a well informed man on all current events in the economic and civic life of the community, the state and the nation. His general educational qualifications must be sufficiently high to enable him to estimate the meaning and value of tendencies and departures in the industrial, commercial and political movements of the day. While he cannot be expected to be a student of every subject, or an ex- I>ert on every problem, he can have such general information at his command as will enable him to point out the purpose or meaning of this or that effort and to secure the specific information upon it when desired or required. In that capacity he becomes a general factotum, a sort of clearing house, for that information which may serve the interest or purpose of his organization. 402 QUALIFICATIONS AND TRAINING OF SECRETARIES. The literature with which a commercial secretary should familiarize himself may be divided into what I would term ttie cultural and the vocation- al. The one makes for a grasp of fundamentals, the other of current equip- ment. The. Cultural Studies. In order to lay an educational basis the secretary should be familiar with one or more standard books on economics, political economy, civics and sociology. The governing principles in commerce, finance and transportation. The principles of government and fundamentals in sociol- ogy should be within the grasp of every secretary. Any of the standard text books in these branches of studies will serve the purpose. The Vocational Studies. He should be familiar with : The Workman's Compensation Act of his State. The Federal Reserve Board and the Currency Act. The Power and Scope of the Interstate Commerce Commission. The Federal Trade Commission, its Scope and Powers. The Foreign Trade situation, and the best thought on Foreign Trade Pro- motion. War Tax Laws, and National Income Tax. The Power and Function of the State Public Utility Commission. The leading measures before the citj- council, county board, state legis- lature, and national congress. Regarding books that should be at every secretary's hand for ready reference the following have been mentioned : Lists of City, County, State and Federal Government Officials. Important Government Reports. Local Tax, Water, Gas and Electric rates. Classified lists of local business houses and manufacturers. Congressional Directory. While I shall not attempt to go into this exhaustively, since it is not strictly speaking "reading matter" — few people would sit down to enjoy an hour reading local tax rates or lists of officials, I will say that to the lists of books kept for immedi- ate reference should be added : Telephone directories of the principal cities. National and international trade directories. The "World's Almanac." The best Atlases obtainable. Commercial organization annual reports. Annual reports of important local, state and national organizations ; sucb, for example, as tlie National Association for the Promotion of Industrial Education ; National Housing Conference ; American Public Health Associa- tion. The question of what should constitute a commercial or- ganization reference library is simple beside the question of what a secretary should read to keep himself posted with such THE MOST HEI^PFLL SEl'RETARIAL LITERATURE. 403 information as he can make use of in directing the activities of the organization; and this, in turn, is simple in comparison \nth the other question, as to what reading is going to give each individual man the best boost in vision, enthusiasm, ten- acity of purpose, perseverance and single-mindedness. We have seen that certain sources are recognized as fur- nishing necessary information required, but that some of these are recognized as yielding a higher percentage of information than others ; also that the percentage of yield of some of these sources can be increased. Studying this phase of this subject has *led me to ask whether it would not be possible, in order to place the experi- ence of others at our disposal with the minimum of trouble to one's brother secretaries, to compile annually an index of the activities engaged in the previous twelve months by commercial organizations? Then, when one of us wants to profit from the experience of the other fellow in any particular direction he \vi\\ know to whom to address his inquiry, and will not, in find- ing the information he wants, ask twenty secretaries who have no information to give him ; nor will he skip the very one who could tell him most. He will know into whose annual report to look for what he wants. Such a yearly index of commercial organization activities would make it possible for us to find what we want when we want it, thus saving our time and mak- ing it possible to spend more of it on cultural or inspirational literature. Inspirational Factors Neglected When we come to this phase of the subject, there is no es- caping the deduction that as a class, we often subsist on prison fare when we need, and can have for the mere exertion of reach- ing forth, ambrosia and nectar of the gods. One man quotes Lord Bacon: "Reading maketh a full man ; writing an exact man, and conference a ready man" — and nothing is more sure than that we \Nillfully impoverish our- selves when we might choose fulness of life if we neglect to ap- propriate the riches that are ours for the taking. WTiat if we do find that inherent qualities, physical condi- tion, companionship with inspiring personalities, the need of our own community, and the knowledge of what other commu- nities are doing, inspire us with ideals of what we covet for our 404 QUALIFICATIONS AND TRAINING OF SECRETARIES. own community, is that any reason why we should rest with self-satisfied complacency at this point? When one considers what a small number of the inspiring personalities and great achievers of all time are alive today, it scarcely seems possible that any one should deliberately con- fine himself to the study -and contemplation of his contempor- aries. Musicians do not drop the study of Bach, of Wagner or Beethoven because these are no longer with us in body ; artists do not drop the study of the methods or the finished product of Turner, Michael Angelo or Rembrandt because they cannot meet them face to face. And just as it can be said of men whom Ave pronounce great because of their achievements in art or music, so it can be said of many a one great because of his achievements in other directions — in those directions in which we ourselves are working — that "He being dead, yet speaketh," Are we then going to close our ears to their spoken message as well as to the message of their methods and achievements simply because other messages come to us from men with whom we can shake hands and who can grace our banquet tables? Nor only does the reading of what, for lack of a better term, I shall call inspirational literature, enrich the reader, but it undoubtedly increases his capacity to profit from all other cur- rent sources of inspiration, such as travel, companionship of great men, observation, experience. Is it not possible that there is a lack of inclination to exert one's self mentally when one is not obliged to and does not an- ticipate any direct, concrete result? Emerson says: "Every man is as lazy as he dares to be." But looking merely at what we can get is like looking at one side of a building ; the other side, what we can give, is equally important. A secretary gets to give ! At least he should "Get to give." Sometimes, however, he "forgets to give." If he needs vision, inspiration, ideals, to do that which he is paid him to do, how much more do the members of the organization re- quire them to do that for which they are not paid. A secretary needs to make himself "All things to all men." No man can be that without filling in what Nature and previous education have left lacking. Necessity for Selecting Here we come again to the necessity for selecting. No two men are lacking in precisely the same directions; each man THE MOST HELPFUL SECRETARIAL LITERATURE. 405 must analyze himself to discover his needs, before he can intelli- gently search for the material to supply that lack. Each one of us must find how to supply that lack in his own nature, educa- tion and experience which will enable him to meet every man on some common ground ; wliich will enable him to give to every nmn he meets something that man needs or wants. Only in this way can lie have that sympathy with, and insight into, all natures wliich will make it possible to get the best service to the community out of all. I have one clear impression from all this inquiring — the successful nmn reads and reads things that have permanence. Did you last year read and love a great book? Have you made gTcat books your friends? All great leaders have been men of vision — men of vision, not visionaries. There are more men of vision in the village library than in the halls of Congress. Cultivate them, for in their silent pages you Avill find knowl- edge, inspiration, refreshment and fulneSvS of life. Literature Suggested By Roland B. Wooflward : "The conference on 'Helpful Secretarj' Lit- erature.' throujrli the courte.^y of Professors .Jones, Alhert and Cherin.srton, .suf?gest for Immediate use of secretaries the following l)ooks, most of which can be found in any public library : 1. Harrington Emerson. The Twelve Principles of Efficiency. 2. F. W. Taylor, The Principles of Scientific Management. 3. F. C. Howe, The Modern City. 4. Richard T. Ely, Outlines of Economics. 5. Jenks and Laucks, The Immigration Problem. 6. H. M. Hurd, Principles of Real Estate Valuation. 7. T. N. Carver, Rural Economics. 8. II. A. Toulmin, The City Manager. 9. Bulletin of Columbia University, Studies in History and Political Science. Scientific Management. By Prof. Edward D. .Jones (University of Michigan) : In the literature of administration there is, first of all, biography, which is infinite in amount, from ancient Plutarch to modern Bradford, writing of Lee, The American, and varying in quality from the stern stuff which came from under the heavy hand of Carlyle to the light workmanship of Sainte-Beuve. For the study of benevolent tyrants there are Mommsen's chapter on Sulla and Julius Caesar. For tenacity of purpose there is Thayer's Cavour. It is well to seek out the great analyzers of human motives, such -as Samuel Johnson, Bacon, Bulwer. Goethe and Emerson. 406 QUALIFICATIONS AND TRAINING OF SECRETARIES. The philosophy of joint action may be found in the wisdom literature, extending from Proverbs to Bacon's Essays. There is much of it in such maxim writers as La Rochefoucauld, as well as in the pungent para- graphs of Goethe. Besides these, there are pertinent treatises by lesser men not to be overlooked, such as John Foster's Decision of Character and Sir Arthur Help's Essays. Military science deserves careful attention as the most highly developed branch of the art of handling men. The great work in this field is that of General Karl von Claucewitz, the Father of German Strategy. It bears the simple title On War. Especially attractive and penetrating among recent works is Col. Vache^'s Napoleon at Work. To offset a possible influence of harshness emanating from the literature of the science of war one should study the relation of industry to the uni- versal hunger of the human heart for what is beautiful. Here two names suggest themselves to us at once: John Ruskin and William Morris. In conclusion, and with all due humility, perhaps I may be permitted to refer to a work of my own entitled, The Business Administrator ; His Models in War, Statecraft and Science, in which an attem.pt has been made to draw suggestions from the history of the great forms of administration to bear upon the question, what is the ideal conception as to what a business leader should be in America today. This list, which may seem very forbidding, in reality has to do with books which are charming, and written, for the most part, by great men, whose characters make a deep impression upon one who earnestly seeks to become acquainted. To enjoy the best literature is to acquire a habit. A habit is only slowly acquired. To acquire the habit of reading good books two things are essential, first, not to undertake too much. It is more reasonable to undertake to read a certain kind of books fifteen minutes a day than to ambitiously plan for solid evenings of reading and then throw over the effort after a few trials. Second, having formed a program of reading, to do the assigned amount daily, and without fail, until the o.d habits are readjusted and the new habit is firmly fixed. Only then can one permit himself post- ponements and exceptions. Plutarch, Lives, Boston, 30O2; Political Precepts, Boston 1906.. . Bradford, G., Lee, The American, Boston, 1912. Especially, "History of Frederick II of Prussia ;" and "On Heroes." See Works, Centenary Edition, 30 Vols., N. Y., 1890-1901. or any other good edition. These works may be purchased separately at very moderate prices. Mommsen, T., History of Rome. Trans, by W. P. Dickson, 5 Vols., N. Y., 19a3. On Caesar is Bk. V, Ch. XL On Sulla is Bk. IV, Ch. X. Goethe, J. W., The Maxims and Reflections of Goethe. Trans, by T. B. Saunders, N. Y., 1893. Foster, John, On Decision of Character, N. Y., 1875. Helps, Sir A., Essays Written in the Intervals of Business, London, 1890. Von Clausewitz, Gen. Karl, On War. Trans, by Col. J. J. Graham, 3 Vols., London, 1908. THE MOST HELPFUL SECRETARIAL LITERATURE. 407 Col. J. B. M. Vache6, Napoleon at Work, N. Y., 1914. ( Macmillan. ) By Paul T. Cherington of Harvard University: "Social Economics." — R. T. Ely — Outlines of Economics. I. B. Cross — Essentials of Socialism. Business La\A' — E. AV. HufFcut — Elements of Business Law. J. J. Sullivan — American Business Law. Accounting — H. R. Hatfield — Modern Accounting. W. M. Cole — Principles of Accounting. Commerce — J. Russell Smith — Industrial and Commercial Geography. T. N. Carver — Principles of Rural Economics. G. H. Powell — Cooperation in Agriculture. L. D. H. Weld — Marketing Farm Products. For special industries many books exist. These are too numerous to list here. Any good book store can give suggestions. See also special lists of books on business subjects, such as that issued by A. C. McClurg of Chicago, and that bj- The Ronald Press of New York. Government — James Bryce — American Commonwealth. W. B. Munro — The Principles of Municipal Administration. F. C. Howe — The American City and Its Problems. H.A. Toulmin — ^The City Manager. Graham R. Taylor — Satellite Cities. N. P. Lewis — The Planning of the Modern City. City Growth— R. M. Hurd— The Principles of City Land Values. Management — F. W. Taylor — Principles of Scientific Management. Harrington Emerson — The Twelve Principles of Efficiency. The System Co. — Scientific Office Management. M. T. Copeland — Business Statistics. Dealing With Men — W. D. Scott — Influencing Men in Business. Hugo Muensterberg — Psychology and Industrial Efficiency. CHAPTER XXII. College Training for Chamber of Commerce Secretaries What Education Is Doing for Secretarial Efficiency By PROF. WM. A. SCOTT I have no name to suggest for this profession, but I be- lieve it is in process of evolution out of the existing secretary- ships. The chief duty and function of the members of this pro- fession, in my judgment, will be to give expert advice to munici- palities on all matters that concern their economic, social and political life, and to lead them toward the goals at which they ought to aim. A very considerable part of this work is already being performed by many, but I believe that gradually the scope of operations will be enlarged until it covers all the ground I have mentioned. The life of every modern municipality presents four main aspects — its industrial, its commercial, its political and its so- cial aspect. The industrial life in a municipality comprehends its manufacturing interests. Every municipality is bound to engage in manufacturing to a greater or a less extent, but the kind of manufacturing and the amount of manufacturing that ought to be promoted in any particular municipality depends upon a great many conditions, some of which are, possibly, international, some national and others local in character. It is a matter of prime importance to the prosperity of a city and of the nation to which it belongs that it should develop those manufacturing industries for which it is fitted, and that if should be prevented from undertaking those for which it is not fitted. Too often manufacturing industries are solicited by a city and even attracted, without adequate consideration of the conditions upon which their prosperity depends, and of the fitness of the city to supply those conditions. Misfits thus occa- sioned are linfortunate from every standpoint and result in in- jury to the city and to the people immediately concerned, be- cause these misfits have very often retarded instead of promoted the prosperity of the city. 408 COLLEGE TRAINING FOR SECRETARIES. 409 The time has come, in my judgment, when these misfits can be prevented by expert advice, and an expert advisor is needed to prevent such misfits, as well as to call the attention of the city to its unused opportunities and its undeveloped resources. If these matters are left solely to chance and to the parties immediately concerned, these misfits will continue to occur and the normal development of the city will be retarded. Stimulating Commercial Life The commercial life of a city comprehends the distribution among its OAvn citizens of the goods produced and manufac- tured within its borders, for every city, of course, must dis- tribute home products to home consumers ; the marketing of its surplus manufactures ; the distribution among its own citizens of goods produced outside, but needed for their consumption, or as raw materials for their manufacturers and the distribution of goods between outsiders. Involved in this w^ork is complicated transportation and financial machinery, warehouses, stores and markets. Several kinds of expert assistance are needed for the proper functioning of this department of city life. In the first place, the part that the city in question is fitted to play in each of these lines of commerce can only be determined by a very care- ful study of conditions. The local distribution of local products is, of course, necessary, but what part of the work of marketing, of surplus manufactures and of distributing outside produce among home consumers, and w^hat part of the work of distribu- tion for the territory in which the city is located can economi- cally and profitably be undertaken, can again only be deter- mined by a careful study of the entire distribution problem from the standpoint of the nation, state and district in which the city is located. Once the share a city ought to have in the w^ork of distribu- tion is determined, the acquisition of the necessary capital and labor is the next problem. Sometimes private initiative is ade- quate for the solution of this problem, but frequenth^ it is not. Many a city has failed to realize its commercial destiny, because its advantages were not revealed on the capital and labor mar- kets. Unaided private initiative and undirected local pride and enthusiasm often make grievous mistakes in this field. The un- dertaking of commercial enterprises for which a city is not fitted 410 QUALIFICATIONS AND TRAINING OF SECRETARIES. is bound ultimately to result in loss and sometimes in disaster. Only the best expert advice and aid can avert such misfortunes. Political and Social Life The political life of a city includes all aspects of its gov- ernment. Every other department of its life is affected by this one, and its importance is so well understood at the present time that no emphasis of it is required. Neither is it necessary to speak of the deficiencies of American cities in this particular. The best expert advice is certainly needed here, and it is here that such advice is least heeded. Times are rapidly chanj^ing, however, and the unprejudiced public-spirited and well-informed student has the confidence of the public today to a greater de- gree than ever before. The municipal expert is destined to tri- umph in this field also, and when he does a brighter day for our municipalities will dawn. What I have described as the social aspect of city life com- prehends the fields of education, religion, art, sanitation, etc. Some of these have received much attention for a long time; others have been neglected. We have experts in each of them, but we lack the expert who knows how to coordinate them with all the other departments of city life. It is this species of ex- pert that the new profession of which I am speaking will supply. I believe that the need of this new prof-ession is urgent, even though it may not yet be fully appreciated. Competit'on in many fields has broken down, and the era of public regulation of our industrial and commercial life has dawned. Under our system of government the solution of this problem of regula- tion is bound to be slow and to be accompanied by mistakes and friction. The interests of our cit'es will need to be carefully guarded thronghout this period, not in any selfish spirit, but in the spirit of the broadest patriotism and in the light of the fullest knoAvledge of their proper places in the nation's economy. Further evidence of the urgency of this need may be found in the maladjustments which unregulated competition, unwise legislation and the undirected city development of the past have produced. These maladjustments have made themselves felt in the form of local industrial depression — actual failures — bad living conditions and increased poverty. They ought to be removed, but only a skilled hand and a wise head is com- petent for this task. COLLEGE TRAINING FOR SECRETARIES. 411 Breadth of Knowledge The type of man required for this new profession is made evident by the functions I have assigned him. In the first place, he must have unusual breadth of sympathies and of knowledge. The many-sided municipal life which I have out- lined can not be appreciated by a narrow man, and keen ap- preciation of the importance of the harmonious development of all aspects of municipal life is a sine qua non. A mere con- sciousness of their existence will not suffice. Without thorough appreciation, the necessary motive power and interest will be lacking. The necessary appreciation can not be attained without breadth of knowledge. The man who is fitted to advise a mu- nicipality regarding the matters I have indicated must have at his command all that science, art and experience are pre- pared to contribute concerning them. He can not rely upon intuition, casual observation, or even "horse sense," valuable as all these are. The archstrategist, in other words, of the social life of the community is what we are looking for. In order to acquire and utilize this knowledge a man must be in complete command of his mental faculties, and must have a well developed imagination. This means that he must be trained. The faculties of the mind, as well as the muscles of the body, must be developed through training. One must learn to reason, to concentrate, to form correct judgments, to do con- secutive and long continued mental work and to express his thoughts in forcible and convincing language. These powers are not born with us, and do not, like Topsy, "just grow." In addition to breadth of sympathies and knowledge, the professional man I am describing must have been well endowed by nature, and must have developed a good character. The volume of work he will have to do implies health, physical strength and right methods of living. The mental equipment rtMjuired can only be developed out of a naturally good mind, and the character demanded implies the possession of a strong personality — the elements of which must be a gift of nature — good morals, tact and skill in handling men. Kind of Education Required If my analysis of the duties of this new profession, and of the qualities which its members should possess, is even ap- 412 QUALIFICATIONS AND TRAINING OF SECRETARIES. proximately correct, the need for education is obvious and may be assumed. We, therefore, turn to the question of the kind of education that is required. What kind of education will give a man, with a good physical, mental and moral equipment, the breadth of sympathies and of knowledge and the general and special training which this new profession demands? That is the question before us. I have already called attention to the fact that the acquisi- tion of the special forms of knowledge required in this process of education must be preceded by a form or forms of training which will give the man command of his mental faculties. That fact is very often forgotten in the consideration of this subject and the assumption made that any man who wants to prepare himself for this kind of work should proceed at once to the study of the special branches of knowledge that have direct application to it. Educational experience, however, the accumulation of centuries, tells another story. In the development of the rea- soning faculties the imagination, the powers of concentration and of expression, mental endurance and the ability to consider without bias all sides of a question and all the facts that must enter into the correct solution of a problem — some educational instruments are not only better than others, but are indis- pensable. The power accurately and forcibly to express one's thoughts, for example, can not be acquired without the study of language and certain forms of literature, and without an enormous amount of practice, under competent criticism in the use of one's mother tongue. One must learn to reason by rea- soning, and some subjects of study are greatly superior to others for this purpose. Mathematics, for example, has no peer as an instrument for developing the capacity to draw correct conclu- sions from premises and to concentrate the attention. History trains and tempers the judgment and broadens the sympathies. In short, the man who wants to prepare himself for this profession can not dispense with the educational instrumentali- ties supplied in our primary and secondary schools, and must expect to secure the special training for this profession in our higher institutions of learning, especially in our colleges and universities. Indeed, experience has shown that young men and women are far from prepared for highly specialized studies when they pass from the high school into the college and the university. It is for this reason that most of the higher CX>LLEGE TRAINING FOR SECRETARIES. 413 educational institutions of this country continue through at least the first two years of college the use of some of the educa- tional instrumentalities employed in the high school. After a man has gained control of his mental and spiritual faculties, what educational instruments will best prepare him for the peculiar duties of this most exacting profession? During the last century and a half, based upon valuable materials contributed by learned men of the ancient and medi- eval world, several bodies of knowledge have been built up, known collectively as the social sciences. These are capable of supplying the instrumentalities needed for this purpose. The most important of. these are physical and economic geography, political economy, political science, sociology and history. Physical and economic geography reveals the location of those natural resources w^hich are the basis of the world's in- dustries, and the natural, social and other influences which determine the location of the industries developed from them. It supplies a large part of the information needed in the de- termination of what a city should and what it should not at- tempt to do. Value of Political Economy It must be supplemented, however, by political economy, w^hich reveals w^hat we know regarding national housekeeping in all its phases. It presents an analysis of all the factors of national economic life, the laws in accordance with which they operate, and the political, social and other regulations best fitted to secure the maximum of economic prosperity. It treats, among many others, of such subjects as the interdependence of nations, of the various subdivisions of each nation, and of man upon man; the principles w^hich determine the organiza- tion of industrial units of each branch of industry and com- merce, and finally of all the industries of the w^orld, the laws of value and price, the machinery of exchange and the distribu- tion of wealth, the relations between government and industry in all their aspects, including public expenditures and income and their effects upon industries and individuals, public regu- lation of industry, sanitary measures and public education, and the functions and relations of labor and capital. This body of knoAvledge throws light in a thousand ways upon the prob- lems that confront the commercial secretary and is absolutely essential to their correct solution. 414 QUALIFICATIONS AND TRAINING OF SECRETARIES. Political science is the science of government. It treats of the machinery and functions of government and of all things which pertain to the political life of a people. It teaches what forms of government are best for nations, states, municipalities and other political units, under the different conditions of their existence, and what political methods are best adapted to ac- complish the purposes of political life. To this end it has clas- sified and interpreted tlie political experience of the race a.nd indicated its application to modern conditions. Sociology a Coordinating Science Sociology is a coordinating science and cultivates the field left vacant by the other social sciences. It analyzes and de- scribes the forces which hold men together in society, and which explain the innumerable forms of social organization. In this connection it reveals the nature and influence of such fundamental forms and institutions as race, sex, religion, mar- riage, divorce, immigration, emigration, colonization, govern- ment, etc. It analyzes the causes of poverty and crime and records the experience of the world in the treatment of these and other social diseases. It records finally what science and experience has to teach regarding the interrelations and in- teractions between individual characteristics and social in- stitutions and conditions. It throws floods of light upon doz- ens of problems with which the commercial secretary must deal. History is a record of the doings and experiences of the race and an interpretation of that record. No man can under- stand present conditions and problems in this or any other na- tion, in his own city or in any other, without a knowledge of the past conditions and problems out of which they developed. Our present life, in all its aspects, is a product of the past, and the present conditions the future. History is, therefore, an in- dispensable means for the training of the municipal expert. One after another these developing bodies of knowledge have been incorporated as subjects of study into the curricula of our educational institutions, especially into those of our col- leges and universities. In a hundred places in this country and in all the great universities of Europe and most other parts of the world one will now find facilities for their study. But until a comparatively few years ago little effort had been made to select from these great treasure houses the precise things COLLEGE TRAINING FOR SECRETARIES. 415 needed for the equipment of men for various specific tasks. It was assumed that each man would be able to make the selection for himself, or to utilize for his own life purposes those parts of knowledge accumulated during the process of his education, adapted to this purpose and to that, and that he could select for himself, out of the abundance at his disposal, the instrumentali- ties needed for his proper training. Attitude of Universities AVithin recent years, however, some of the leading universi- ties of the country have taken a different view of the matter, and have recognized the need for specialized courses of study adapted to the needs not only of men planning to enter the so- called learned professions of law, medicine and theology, but also of engineers, business men and various classes of public servants. The engineering courses were the first to be devel- oped, and it was not until about 1900 that a beginning was made in the development of courses for the other classes. In this latter field the University of Pennsylvania, at Philadel- phia, the University of California, at Berkeley, and the Uni- versity of Wisconsin, at Madison, were pioneers. Their ex- ample has been followed by Dartmouth College, the Universi- ties of Illinois, Michigan, Minnesota and Chicago, Harvard University and many other institutions. The new courses are ditferently named in different institutions, the most common appellations being ^'Course in Commerce" and ''Course in Com merce. Finance and Accounts." These courses supply most of the instrumentalities needed for the training of the members of the new profession to which, in the incipient stage^si of its development, you gentlemen be- long. They need only to be supplemented by two or three other courses, which I shall presently attempt to describe. In support of this statement T Avish briefly to describe one of these courses. For this purpose I shall use the one in my own insti- tution, not because I wish to claim for it superiority, but be- cause I am most familiar Avith it. Our "Course in Commerce," so-called, requires four years for its completion, like the other university courses, and like them, too, confers upon its graduates the degree of Bachelor of Arts, and admits the graduates of high schools who have com- pleted the usual preparatory-for-college studies. 416 QUALIFICATIONS AND TRAINING OF SECRETARIES. Incorporated in the curriculum for the first two years are the usual non-specialized courses, in continuation of those pur- sued in the high school, designed to complete that training in the power to reason, to make accurate judgments, to express one's thoughts orally and on paper, etc., w^hich I have already indicated as necessarily precedent to the successful pursuit of specialized studies. To some extent, however, these have been modified so as to yield certain by-products of a somewhat special character. The foreign language courses, for example, lay emphasis upon training to speak and write rather than upon the acquisition of the capacity simply to read literature. The course in mathematics includes the mathematics of invest- ment, life insurance, etc., and the course in English includes commercial correspondence. Specialized University Courses These courses are accompanied by others in physical and commercial geography, elementary political economy, money and banking, transportation, economic history and accounting, upon which are built the specialized courses of the last two years. These specialized courses of the last two years are also accompanied by a thorough course in commercial law, and in the organization and management of business concerns. The chief feature of the w^ork of the last two years, how- ever, is the grouping of courses, to meet the special needs of the young men who come to us. So far as possible we fit the case of each individual, but our most completely developed groups are arranged for the training of accountants, statisti- cians, consular officers and bankers. At the earnest solicitation of my friend and counsellor for many years, and your worthy President, Mr. William George Bruce, of Milwaukee, in 1913 we provisionally arranged a group for the training of commercial secretaries. It consists of a combination of courses in political economy, political science, sociology and history, and as soon as the demand warrants we plan to supplement these with a course descriptive of the work, methods and problems of chambers of commerce, and to ac- company that with field work, which will give candidates for secretarial positions some practical experience. We have made a beginning only, but w^e intend to develop this group with the same care and thoroughness we have de- THE UNIVERSITY AND THE SECRETAKY. 417 voted to the others I have mentioned. In this work we need and must have the assistance of all secretaries. The informa- tion upon which these courses must be based must come from them, and the field work which should accompany them will be impossible without their cooperation. In the development of this group we shall keep in mind the larger problem which I have been discussing. The develop- ment of this new profession should be hastened as much as pos- sible, and we are ready to do our part in bringing this about. The University and the Secretary By PROF. EDWARD D. JONES The principles of economics are operative upon various planes: from the consideration of the details of the financial life-plan of an individual, they ascend to the policies of great nations in the world struggle for land and markets. 1. Private Economics. There is first of all what may be called private economics; a subject commonly referred to as the science of personal efficiency. Here the aim is to instruct the individual in the development and use of his personal re- sources. This subject Benjamin Franklin enriched with many an axiom, such as : "A used key is always bright," "It is hard for an empty bag to stand upright," and "Honesty is the best policy.'^ The literature of personal efficiency has been greatly im- proved in recent years by reason of the more searching com- parison of individual records made possible by the elaborate recording systems of great businesses. 2. Business Administration. The second plane of eco- nomic action deals with the policies of private businesses. In university circles this subject is often denominated business administration. For the most part it has to do with the economic utilization of material agencies, that is to say, with applied science ; with the manipulation of value relations, as in finan- cing and accounting, and with the administration of human nature," as illustrated by the work of the general executive. 3. Local Economics. As w^e pass forward from the poli- cies of small units to those of larger size, it is obvious that the 15 418 QUALIFICATIONS AND TRAINING OF SECRETARIES. next plane of economic policy has to do with the combination of individual businesses to form efficient villages, cities and distinctive regions. 4. National Economy. Fourth, we have national econom- ics, better known as political economy, which deals with the great balancing processes of demand and supply by which the general levels of rent, wages, interest and profits are deter- mined. In the consideration of the larger aspects of a nation's commerce and industry such topics arise as the tariff, the im- migration problem, the national banking system, and the rela- tion of public to private activity. Undeveloped State of Lrocal Economics Re\dewing these various strata of economic activity, one overlying the other, we find that the branch of the science which is least developed is the third one, or the study of the economic structure and economic policies of a city or a locality. When a young man starts in life, there is an immense amount of valuable advice available to him, as to the general ordering of his private finances, and as to the personal habits which make for material prosperity. And, if he combines with other men, and enters a business concern in a managerial ca- pacity, where he will have to do with the formation of policies, there is abundance of knowledge within reach with reference to such matters as organizing and financing, the laying out of the shops, the formation of labor policies, the installing of ac- counting systems, and the building up of a selling campaign. But now, when we take the next step in the integration of eco- nomic forces and ask how that business concern shall conduct itself with other businesses in the same locality, so that the resources of the place shall be fully used, or so that a com- pletely equipped industrial or commercial center shall be brought into existence, we find that practice is halting, and that economic science, apart from a few pious platitudes, is prac- tically silent. This lack of definite knowledge is the more surprising when we consider that men have lived in cities from the earliest time, and that the derivation of the word "political," in the title "political economy," refers us back to the age of city-states. Men work individually to produce w^ealth. They work in small groups as firms and corporations. They w^ork also in THE UNIVERSITY AND THE SECRETARY. 419 national groups through comprehensive public policies. How do they— or how ought they — to work in village and city groups? What is the economic structure of a city? How ought an economic survey to be conducted to deter- mine whether or not a city is serving its tributary territory sat- isfactorily? What, for example, ought a village of 2,500 people to be as a market for a surrounding agricultural region? What are the necessary agencies for a New England mill town, in order that such a place shall be a good home for labor and capital? What special agencies should a great metropolitan market possess? Are we clear enough in group analysis to say when a manu- facturing center is large enough to have a local foundry, or a mill supply house; or when a special market should have a trading floor? Do we know the essential conditions for success with public markets or public employment bureaus? I believe that some of the causes of this remarkable defect in economic science are our over-emphasis of the function which individual initiative plays in business, our constant talk of com- petition, and our defective view of competition as a state of pure antagonism. These are all signs of lack of faith and lack of discipline. Present Opportunity But whatever the retarding causes may have been, one thing is certain : The opportunity is now at hand for making a beginning in the systematic development of local economics. The many associations represented in this convention indicate a national movement in American business for individual con- cerns to work together for the local good. Everywhere men are exploring the possibilities of working together profitably in larger groups. What may be called an extra-competitive field of enterprise is being discovered. In this work the universities will take their part. The business world is the laboratory of original experiment in economic matters. The universities are the systematizing and teaching agencies which conserve and disseminate the truth that has been discovered. If you, in your associations, discover 420 QUALIFICATIONS AND TRAINING OF SECRETARIES. how the economic agencies of a locality can be made more effi- cient through joint action, it will become our duty to teach the results to college men. The knowledge which commercial as- sociations gain of local economics it will be the duty of the uni- versities to collect and reduce to systematic statement, so that the charm of the friendly doctrine of cooperation, and the profit of business amity and local patriotism may become firmly fixed in the minds of coming generations of college graduates. Proofs of Business Solidarity This experimentation may be undertaken with confidence. There is no doubt but that the solidarity of interest which ac- tually, or potentially, exists between business interests is much greater than has been supposed by any but the foremost of our business leaders. It begins to look as if there were an op- portunity for the scientific management of the economic in- terests of a locality, which promises results similar to those now being achieved by the application of scientific management to individual establishments. The indications of this which reveal themselves in the study of business administration are very strong. Let us notice some of these signs of solidarity of interest in business. The theory of private business administration is being de- veloped, not as a series of complete studies of individual lines of business — such as a science of furniture manufacture, or a science of machine shop operation — but as an elaboration of the individual phases or aspects common to many industries. Practically every business has 1 . A set of problems concerned with equipment and physi- cal processes. 2. Each has a financial phase, involving the art of raising funds and of satisfying the demands of different classes of creditors. 3. Every business has an accounting problem, which has to do with the organization of a system of records to truly report income and expense, assets and liabilities. 4. So also every business has an administrative aspect, concerned mth the choice of persons, the delegation of author- ity, and the creation of a sufficient incentive for every man. 5. Likewise, every business has a distributive or marketing problem. THE UNIVERSITY AND THE SECRETARY. 421 The study of these various aspects of business reveals the fact tiiat progress in any one of them is not so much made by an individual establishment distancing all rivals and moving forward alone, nor even by a branch of trade growing in per- fection far beyond all others, but rather by a lively process of intercliange of ideas between establishments in the same line and in ditferent lines, so that all move forward together. In short, there is in practical busmess a cross-fertilization of ideas and an interchange of equipment exactly like that in scientific research. Let us consider a few illustrations of this law of progress. The Equipment Phase Take, first, the equipment problem. In factory construc- tion the principles of slow-burning or standard mill construc- tion were worked out by the compilation of New England mill experience by factory mutual insurance companies. These simple but extremely valuable principles are now available for all builders. The Corliss cut-off on the steam engine was originally de- signed to make the impulse of the engine sufficiently even for spinning delicate threads of yarn, but the improvement served to perfect the engine for a thousand uses. The system of interchangeable parts, so essential in all industries making or using mechanism is, as it stands today, the work of half a dozen lines of industry. The first steps were taken in the manufacture of muskets for the United States Government. The further development, involving the evolu- tion of machine tools, the attainment of greater accuracy in the dimensions of parts, and the devising of a system of stock parts to permit repair by replacement, we owe, in historical order, to the sewing machine manufacturers, the makers of agricultural implements, the bicycle trade, and the automobile industry. Everything with reference to physical equipment in industry shows the carrying of ideas back and forth, and the reaction of one industry upon another. The Accounting Phase Another illustration of the necessity of diverse businesses keeping in touch is provided by the theory of cost accounts. Businesses of uniform character, such as spinning and weav- 422 QUALIFICATIONS AND TRAINING OF SECRETARIES. ing, where all items of outlay tend to rise and fall together, elaborated first the percentage methods of distributing expense. The skilled-labor industries supplied us with the man-hour system. The modern machine shop has perfected the machine- hour plan, and is exijerimenting with the idea of charging by production centers. The modern cost accountant thus has available a variety of expedients, and in a complex industry can select and proportion his elements, creating a system spe- cially adapted for the necessities of the individual case. As the evolution has been in the past, so contemporary progress is undoubtedly being achieved. One of the most in- telligent ways of training efficient cost accountants is to bring the men of various lines of industry together, so that they may throw light upon discussions from many different points of view. This plan is being followed in Detroit under the auspices of the Board of Commerce. The Administrative Phase The next aspect of business enumerated in our list is the administrative. Administration is such a great subject, and so replete with illustrations of the interchange of helpful in- fluences between different businesses, that we must let it pass, contenting ourselves with one example. The subject of welfare work is under lively debate. Sup- pose an establishment proposes to open an employees' dining room for the midday lunch. If the management looks about, what does it find — a state of apparent contradiction. One es- tablishment has tried a dining room, and pronounces it the greatest success of any of its efforts to ameliorate the condition of employees. Another establishment has failed with similar plans ; and it may not be evident that the reason was unfriend- ly feeling, or a rapidly changing force, or village conditions, or poor cooking. One plant arranges for a dinner at a cost of fifteen cents and succeeds, the force being highly paid mechan- ics manufacturing an expensive automobile. Another plant fails with meals at ten to twelve cents, because its men are for- eigners on low pay. These men really needed simply a place to keep food cold or hot, and a cup of coffee or a bowl of soup to supplement the solid food of the lunch pail. One establish- ment succeeds with flowers and linen, while another drives its patrons away by the same means. " THE UNIVERSITY AND THE SECRETARY. 423 In the study of any ^ven line of welfare work it is neces- sary to compile the history of many cases before the practical limits of various plans become definite; and before the law of variation of policy in response to conditions is manifest. But individual businesses have not the time to conduct thorough- going studies of every administrative policy they employ. There is an immense amount of money annually wasted in welfare work because the policy is followed, of doing a thino^ for the reason that it has succeeded with some other firm. This han- dling of policies is as crude as Avould be the handling of equip- ment if an engineer installed a given arrangement of shafting and belting in a waterworks station because it had succeeded in a spinning mill. What is more reasonable than that commer- cial associations should become clearing-houses of needed in- formation, supplying data as to the conditions essential to suc- cess in each type of Avelfare work, or as to plans for regulari- zing employment, or as to the new methods of paying wages. The Marketing Phase We noted that every business has a marketing or distribu- tive phase. How is a good buying and selling center created? (a) Merchandising involves the measurement of quantity, requiring a system of weights and measures, and trade customs concerning permissible variations. (b) It involves measuring the quality of goods, requiring a system of grades, and means of certifying grades, and grading experts, and even conditioning laboratories. Think of the labor of the Board of Health of Westfield, Mass., to establish but one point in the quality scale, namely, the point which separates pure food from impure food. (c) There is needed the means of holding merchandise, a matter Avhich involves a warehouse industry, and practical laws relative to bailments. (d) It requires, also, adequate assortment, or a variet}^ of merchandise matching the variety of want. In so far as the out-of-town buyer is concerned, this does not mean the assort- ment of any one concern so much as it does the assortment of the market as a whole. But if no one is responsible for the market as a whole, who is to know how many buyers from the naturally tributary territory go elsewhere? It is said that, some years ago, Marshall Field discovered 424 QUALIFICATIONS AND TRAINING OF SECRETARIES. that certain important western buyers were going east past Chicago, to buy such things as hotel furnishings and the gen- eral merchandise used by railroads. The cause was found to be that these buyers had to go east for rails and structural steel, and so took their other orders along. The remedy applied was the promotion by Mr. Field of steel works in the vicinity of Chicago. This is a case where a great captain of industry made himself the correlating agency. (e) Next to an adequate assortment we may mention fair prices as a necessity for successful merchandising. The formula for fair prices (in so far at least as general market policy is concerned) is to bring to bear on each transaction all possible elements of supply and demand. This means bringing the past and future to bear upon the present, by means of adequate warehousing and cold storage facilities. It means bringing the state of the market for one commodity to bear upon that for another article (when one is the derivative of the other), through the presence of converting interests. It involves bring- ing the price of money to bear upon the price of goods, by mak- ing such arrangements that goods become a safe collateral for loans. It involves, also, bringing to bear upon the prices of any given market the prices of other places, through the active ex- change of quotations. All this means a commercial interlock- ing process which can only be made to approach perfection by definite planning. (f ) Besides fair prices, a market requires means of sus- pending payment, so that goods may freely pass from the hands of those who have more merchandise than opportunity into the hands of those who have more opportunity than property. This calls for a credit system, safeguarded by adequate reports, by the ready application of mercantile skill in handling bankrupt stocks through the work of a credit adjustment bureau, and by the systematic prosecution of fraudulent debtors. (g) Again, a market requires local trucking. This is probably one of the most wasteful forms of American industry. Until the coming of the motor truck, this work was abandoned to the easy-going methods of the jovial Irishman. It yet suffers scandalously from duplication of plant, from amateur experi- mentation in pavement construction, and from congestion in alleys and at bridges and terminals as a result of defects in city planning. The Chicago Municipal Markets Commission THE UNIVERSITY AND THE SECRETARY. 425 has estimated that "the average wagon or truck spends about one-third of its time actively hauling commodities on the street and two-thirds of its time in waiting, loading, unloading, and in delays to traffic." (h) There is required also long-distance transportation. Happily we can say that Federal laws have partly, at least term- inated the scramble of individual shippers after railroad favors, and have made possible the system of having traffic depart- ments under the control of commerce associations, and working in the interest of all the shippers of the locality. (i) Finalh^, a market needs various incidental equip- ments to make the trading process easy and agi^eeable. How grateful a relief is a hotel modeled after a refined home rather than after a flamboyant lobster palace. And perhaps the amuse- ment industries will leave a more attractive memory if they are ^ little above the so-called tired-business-man standard. Intelligent Joint Effort It is evident from this that a market of fair size is about the most complex thing, and about the most social thing, the mind of man has devised. A good market — good for its size — is rare. Most markets fall ridiculously short of their possible efficiency. In his wonderful book "The Harbor,'' Mr. Ernest Poole describes America's greatest port. He speaks of the tangled railroads pouring in their traffic, of boxes and bales shifted hither and thither in a perfect fever of confusion and delay, and of long lines of trucks and wagons waiting hours for a chance to get into the docksheds. The whole waterfront has developed pell mell, each railroad and each ship line grab- bing sites for its otnti use, until the port, like a mighty patient, is strangled and, with swollen veins and arteries, labors to breathe. And then he says, "To see any harbor or city or state as a whole is what most Americans cannot do. And it's what they've got to learn to do." A good market does not happen. It does not emerge Phoenix-like from the fires of competitive hatred; nor blossom from the narrow stem of policy known as every-man-minding- his-own-business. It is the result of intelligent, persevering, joint effort. We may profitably borrow suggestions from countries which have had a longer experience with the modern city than we have had. Study the equipment of Manchester 42G QUALIFICATIONS AND TRAINING OF SECRETARIES. by whicli it holds its place as the queen of the cotton trade. With its accurate grading, its easy financing, and its innumer- able dealers and factors, including equipment houses, consign- ers, insurers, forwarders, packers, and translators, all bound together through the Royal Exchange, it possesses a perfection which is the result of what, I suppose, narrow-minded persons would call "self-sacrificing" effort. But it serves the world, and enriches an important section of a great nation. Study also, the German cities as models of cleanness and beaut^^ and easy growth and economy of effort. Conclusion A word in conclusion. . As business agencies multiply, and the structure of business becomes more refined, it is increasing- ly true in industry that "No man liveth to himself, and no man dieth to himself." The doctrine of efficiency began in America as an indi- vidual philosophy — a Benjamin Franklin proverb — and we learned it so well that the word "Yankee" became synonymous with shrewdness. But the age of corporations has taught American business men to work with confidence in groups. In- dividual initiative has broadened into firm initiative. And this second lesson, likewise, we have learned, until it can be said that no policies are more romantic in their daring than those of American firms. And now that this achievement is familiar, we are taking the next step, and are learning to work together in still larger groups — in units of villages and cities. I have faith that we shall learn to do this also, and shall ulti- mately so excel in it that our cities, when considered as evi- dences of comprehensive intelligence, shall no longer be our disgrace. As we exterminate another legion of enemies to our wel- fare — suspicion, and inadequate information, and ill-coordi- nated effort, and useless duplication — an increase of prosperity will be certain. But, aside from tangible measures of welfare, there is another great advantage coming. Men are enjoying business more because business is revealing a nobler aspect. They are finding out what decent fellows their competitors are, and how many fine things they dare combine to do with their competitors. Conscious Training for Chamber of Commerce Secretaries By PAUL T. CHERINGTON In going over the gTOund there were two questions for which I sought answer at the very outset before attacking the problem of the form which the course was to take. In the first place, what is required of the modern secretary? In the sec- ond place, what provisions are now in existence for equipping a man with those requirements? Very early in my attempt to codify the requirements of a secretary, I found there was one group in which we could not expect to give much direct help. This is perhaps the most im- portant group of secretarial requirements, the personal fea- tures. That indefinite, intangible, but exceedingly important thing known as tact, is a thing absolutel}^ beyond acquirement by a course of training. Certain methods may be w^orked out by w^hich a man can gradually acquire the appearance of tact, and can avoid certain of the worst blunders of tactlessness, but tact, we recognized at the very beginning, was one of the things which lay beyond our province. Skill with men is another thing closely allied to it, partly a matter of practice, but mainly a matter of temperament. Ability in mastering routine is another thing. I simply mention these two or three to let you know that we have not overlooked these immensely vital parts of a secretary's equipment, but that w^e have not yet seen any way by w^hich we can do more than help a man if he is willing and able to help himself. But there is a second group of secretarial requirements for which it seemed to us we might be able to supply real training. All of these relate to a knowledge of and familiarity with, ex- isting facts, and the development of habits of thought and habits of w^ork. These we believe Ave can go a long way tow^ards supplying, and w^e believe also that they can be supplied more easily, more successfully^ in a conscious training at high pres- sure, taken b}' a man who devotes his w^hole time to that train ing, than they can be by a man doing it incidentally to make a Note : It should be explained that Prof. Cherington speaks here from tht- standpoint of an instructor. He has for some years concerned himself ui Harvard University with the training of young men for the secretarial fieli 427 428 QUALIFICATIONS AND TRAINING OF SECRETARIES. living and without the pressure of direction and suggestion upon the part of those who are conducting the work. Secretarial Training Our problem, then, was not that of turning out a com- pleted secretary, because we recognized at the start that there Avere certain things we could not do for a secretary, but our problem resolved itself early into seeing what we could do and then devise, if possible, a method for doing these possible things which would be better than any existing method for p^'o- viding this training. To the existing methods for secretarial training, we also gave attention. Unconscious training, none of us need be told, has developed some men who are better than the man we can count on producing by a system of conscious training. The test, however, will come in the measuring of our average pro- duct against the average run of men who are untrained or who have been unconsciously trained for the work. The newspa- pers, of course, have supplied most of the present secretaries or at least they have supplied more than any other one single source, and there is no more valuable training in the world for almost anything than is newspaper work. I have a stock bit of advice which I give young men who come to me, asking me about going into newspaper work, I say: ^'By all means go. The only warning I would give you is do not stay in it too long." The chief fault with newspaper training is that it tendg to make a man scrappy in his methods of thought and work. Any man who is doing ten jobs a day gets in the habit of doing ten jobs at once and doing them at the rate of ten jobs a day, and then when he must make a long flight he flutters. Business experience is another good training for secretarial work. Some of the best secretaries in the profession have come up through business training, but the diversity of the require- ments for a secretary, make training in one line of business a little bit hazardous. It is apt to make a man narrow and to make him lean a little bit toward his own line of business. TSTiile, if he can get some kind of training which takes the place of ten or twenty years, each spent in many kinds of business and will give him an idea as to how the whole ground lies, it CONSCIOUS TRAINING FOR SP^CRETARIES. 429 has some advantages over traiuing in one special business, great as are the advantages of that kind of training itself. The Basis for Development The professions have supplied some very able men. Thought habits, cultivated by a lawyer, thought habits and work habits developed in other lines of professional training have done the work well in many cases. But the point is that what we have tried to do is to find some wav of conscious train- ing which will take the place of unconscious training and start a man in this new profession at a point where he m^y not only develop farther than the man who starts in not having his bearings, but also may move more steadily in the right direc- tion. In other words, it is not a question of our two years versus two years anywhere else. What we want to do is turn out a man with two years of training who can go into a secre- tary's office as an undei^study and after five years of real prac- tice added to his two years of training, be a bigger, a broader and a better man than if he had spent all seven. years as under- secretary. That is what we are driving at. We do not want to turn out a man who thinks he knows the secretarial business after two years of listening to other people, or after experi- menting in one or two lines of secretarial work, but a man who, as the result of men, with experience in the actual trying of his wings in short flight^s, can see what the secretarial profes- sion is. And having seen, we w^ant him to be willing to invest the hard work and the long hours, and all of the other big in- vestments that must be made by a recruit, whether he be trained or untrained, to make himself a fit member of this profession. The man we are looking at is not the man as w^e turn him out. What we want to know is how the man who started some kind of unconscious training two years ago and today goes into a minor position in the secretarial field, can after five years more, be compared Avith the man whom we have had for two years and who has then had five years of the same kind of secretarial work. Two years of unconscious training plus five years of secretarial work versus two years of conscious training plus five years of secretarial work, that is the measure by which we shall judge our success or failure. The things we hope to develop are thought habits, w^ork habits, and breadth of view. We want our men, above every- 430 QUALIFICATIONS AND TRAINING OF SECRETARIES. thing else, to have an appreciation of the responsibility and the bigness of the job. We want them to see the nnlimited pos- sibilities open to the organization which they serve and open to them as servants of those organizations and the interests which they represent. Secretarial Efficiency and the College — From the Standpoint of the College By PROF. ALFRED L. SMITH The influence of the college in increasing efficiency in the secretarial profession depends solely upon the efficiency of the instruction given in the college. In education for this par- ticular profession, as in education for any other, efficiency of instruction depends in turn upon the successful solution of four problems, namely, (1) The problem of obtaining the cor- rect human material; (2) The problem of determining, gather- ing, and arranging the necessary and the best subject matter; (3) The problem of developing and using the methods of in- struction best adapted to the needs of this field of education; (4) The problem of so placing graduates that their collegiate training may be used to the maximum benefit of themselves and their employers, and their contact with practical organization work be such as to round out their theoretical training most efficiently.- These problems are not stated in the order of their importance; it would be difficult to determine that. I believe, however, that in developing this type of education in any col- lege these problems will arise in this order, as they have at the Tuck School. The problems of human material and instruc- tion methods are largely educational, and I believe must be solved in great part by the college itself. In the successful solution of the problems of subject matter, and placing men, I believe the college needs, and should, therefore, welcome, the closest cooperation and the best advice of men actively engaged in the profession. To be brief, among the fundamental business courses which every student should take, and a knowledge of which perhaps the commercial executive will use most frequently, either know- ingly or unconsciously, are those we call distributive organi- zation and management, comprising a study of the organization SECRETARIAL EFFICIENCY AND THE COLLEGE. 431 and problems — especially of advertising and selling — of mar- keting agencies, such as retailers, jobbers, wholesalers, brokers, commission merchants, cooperative associations, and mail order houses; factory organization and management; financial or- ganization and management; accounting; transportation meth- ods and problems; and statistics. One important result of a knowledge of such courses is the ability which it gives a com- mercial executive to grasp immediately, and discuss intelli- gently with business men their particular problems. The ap- plication of these courses, however, is often more direct. Rudiments of Retail Trade An elementary knowledge of merchandising principles, as you all know from experience, is essential to successful work with mercantile committees or associations. The secretary, to be a valuable aid, must know the rudiments of retail trade strateg;^^; to be a leader he must be thoroughly informed of the problems of the various mercantile businesses. In the man- agement of cooperative merchants' weeks, and advertising and selling campaigns, the secretary's knowledge of advertising principles and methods may mean the difference between suc- cess and failure. I believe that in most communities the most foolish thing that can be done to fight mail order houses i^ to advertise them by beseeching people to trade at home, when at the same time the merchants refrain from using the most pow- erful weapons that they possess, namely : Excellent store serv- ice, decreased selling cost«, attractive window displays, pleas- ing advertisements, and a sound strategy regarding the conduct of sales. If a commercial organization is to aid its members in fighting mail order houses in the manner I think most effi- cient, the secretary must thoroughly understand merchandising principles and methods. On the general college training plus familiarity with busi- ness fundamentals should be superimposed a special course on commercial executive work. The problem here is to give a course neither too theoretical to furnish the student a working knowledge, nor too detailed and technical to provide the stu- dent with that broad and keen insight into the proper relation of the organization and its activities to the business world and the real reasons for its existence. The danger is from the lat- ter rather than from the former. My opinion is that the func- 432 QUALIFICATIONS AND TRAINING OF SECRETARIES. tion of the specialized course goes no farther than to give the student a complete and clear idea of the true functions of a commercial organization, a knowledge of the common types of organization, and the reasons for and relations of committees, bureaus, and sub-ordinate associations, a familiarity with ordi- nary activities, and some detailed knowledge of a certain few activities which are rather technical, or which have now been so standardized as to warrant consideration. It is very easy to introduce much superfluous matter while straining to in- clude actual methods employed in conducting a wide range of activities, or even a few which may for some reason appeal either to the instructor or to the students. A Course of Study The following is an outline of a Tuck School course as pre- sented last year : Part I — Organization and Functions 1. History and development; 2. Functions; 3. Prominent activities ; 4. Type of organization. More emphasis is placed on this part of the course than on the others because it is of the most vital importance that the novice know the true functions of a commercial organization, and realize ^'that teaching the community to think," as one of my friends, Lucius E. Wilson, says, is one of the big jobs of the commercial organization, and that important as is business development of a community, it is necessarily subordinated to the broader community development. Without such a rock to f^tand on, a young secretary is in great danger of being swept away by the waves of selfish desires, unjust criticisms, unwise projects, and utter misunderstanding of the true functions of a commercial organization. It is said "familiarity breeds con- tempt,'' but it is just as true that familiarity breeds a feeling of security and ability to work efficiently, and for this reason a young secretary should be thoroughly familiar with the func- tions, popular activities, dangers and successes of commercial organizations. Part II — Perpetuation of the Organization 1. Membership work : a. Recruiting membership ; b. Keep- ing up membership interest; c. Membership meetings; SECRETARIAL EFFICIENCY AND THE COLLEGE. 433 2. Committee work : a. Selection of committee members ; b. Preparation of program ; c. Committee investigation and re- search; d. Conduct of committee meetings; e. Committee re- ports ; 3. Financing activities ; 4. Publicity: a. Organization publications; b. Member- ship letters; c. Use of local press; 5. Miscellaneous publicity. In this section of the course is given what I consider the four vital phases of commercial organization w^ork. Powerful forces continually operate to render a commercial organization inactive, yet it is in its constant activity and ever present po- tential support in case of sudden civic or commercial need that the commercial organization renders its greatest single service to a community. , The final section of the course concerns itself with more or less detailed discussion of the more important lines of com- mercial organization work, or those which seem to have been more nearly standardized. Part III — Activities and Methods 1. Industrial development: a. Aid of established local industries; b. Attraction of new industries; c. The industrial survey; d. Locating prospects; e. Methods of financing new in- dustries. 2. Retail trade development: a. Credit reporting and collecting systems ; b. Cooperative advertising methods ; c. Con- duct of merchants' weeks, trade carnivals, expositions, etc. ; d. Improvement of merchandising methods and protection against fraudulent practices ; e. Attraction of conventions. 3. Development of transportation facilities: a. Discus- sion and study of the organization, financing and activities of the traffic bureau. 4. Development of the surrounding region : a. The county farm bureau, agricultural association and county improvement league; b. Promotion of interest between farmers and the city. 5. Promotion of civic activities: a. City planning and beautification ; b. Cooperation with municipal officials; c. Pro- motion of miscellaneous civic activities, as clean-up weeks, edu- cational surveys, etc. The problem of teaching the best instruction methods is 434 QUALIFICATIONS AND TRAINING OF SECRETARIES. essentially a problem of the school. The course naturally lends itself to the system of lectures, assignments, class room discus- sion and reports, as is the case in most graduate work. Mock cases may be introduced and have been introduced to some ex- tent at the Tuck School, in order to familiarize the student with actual work, but I believe this is little more than a make- shift. In the Tuck School the need of familiarizing the stu- dent with actual conditions has led to a significant development which we call clinical work. This form of training is necessary, and noAV used by us in all branches of business training. I believe it is especially essential to high grade instruction for this profession. Our experience with the clinical work has more than fulfilled expectations, and w^e are assured by gradu- ates that this phase of a man's training has proved to be the most valuable of all. The instructor is business manager, or executive secretary, of each of a number of active organiza- tions in cities and towns in the vicinity of the Tuck School, al- though most of the work of each is in charge of a student. The instructor performs a supervisory and advisory function simi- lar to that of the efficiency engineer in a manufacturing plant. He also takes charge of some of the more important matters and supplements the work of the students during times of press of work at the school and during vacation periods. The signifi- cant feature of the "clinic work'' is that each student is in charge of an organization in which he comes in contact with that wide range of problems which the full-time secretary faces and for the success of which he is responsible. Drawing Men From Colleges There are sufficiently large and active organizations under able management to absorb each year a score or two of the best men turned out by the colleges. These are the men who have trained especially for this work. There are also numer- ous smaller organizations which can afford only men new to the profession, yet which offer great opportunities for the young secretary. Such organizations should seek the best trained and most able men available. By taking men from the same institution year after year they would get men similarly trained and with similar ideas. Many organizations now accomplish little because they are managed by a new and inexperienced man each year or two who has ideas different from those of his HOW TO FAIL AS A SECRETARY. 435 predecessor, and who keeps his organization back while he learns his profession. This work might be developed further, so that each small organization in each section of the country might cooperate with some college or university of the district, and exchange advice and organization experience for the serv- ices of the yearly output of graduates. If any definite ideas can be sifted from this discussion, they are these: There is cooperative work to be done by the profession and the colleges. The work is more urgent because of the tendency of colleges to introduce a course of this kind. Evidently there is need of something of the nature of a joint committee of educators and secretaries, including perhaps a representative from the Chamber of Commerce of the United States, which is undertaking to gather facts and principles con- cerning proper methods of organization work and management, to consider the subject of the best matter for instruction. Such a work might be perpetual in its nature because of the almost bewildering, rapid advancement in this work. A similar com- mittee might do valuable service on the problem of so placing college graduates with special training in such positions that the graduates on the one hand, and the profession on the other, will reap maximum benefits. How to Fail as a Secretary By MUNSON HAVENS It requires no training whatever to fail as a secretary. A course in the Harvard School of Business Administration or the similar courses at Dartmouth, the University of Chicago, and other colleges are unnecessary. The proper view to take is that such training is a waste of time. Anybody can be a secretary if he thinks he can, and the less preparation he makes, the sooner he begins to draw the salary. It is a good idea to tell the committee which is examining the applicants for the job that the experience you have had is precisely the experience to fit any man for that work. If you have been in newspaper Avork, you can throw the glamour of that enchanting profession so completely around your own personal shortcomings as to conceal them from the shrewdest. 436 QUALIFICATIONS AND TRAINING OF SECRETARIES. The thing to do is to get the job. If you think it will help you, throw in some little remark as — "When I was in Washington for the Daily News, etc., etc./' — Don't hesitate by reason of the fact that the three days you spent in Washington was the only time you were ever there, and that the regular correspondent of the Daily News made an appointment to lunch with you at the Willard at your ex- pense, and forgot to keep the appointment. If you want to graduate from railroad work into a secre- taryship, it is a very good idea to speak of seeing poor Cassatt just before he died. Never refer to Mr. Willard except as Dan. And generally convey the impression that while you did not have the title, you were a sort of unofficial vice-president. Inasmuch as training is 'not essential to get the job, it follows logically that it is not essential to keep it. Your edu- cation is complete, and all you have to do is your work. You may hear of some poor fish who is spending three nights a week at law school, specializing in commercial law. The secretary in a neighboring city may be taking a university extension course in transportation or foreign trade or some branch of civics. But the thing for you to do is to show the town that your school days are long since past. Otherwise the town might think that there was some department of human knowledge that you had not mastered, and this is precisely the inference that you wish to avoid. You should convince the board of directors that it is neces- sary for you to have an assistant before the work develops. Do not let the rush catch you unawares. The directors will have a greater respect for you if you tell them frankly and firmly that you cannot be bothered with details,. Having settled down at jour desk, it becomes your duty and privilege to choose an assistant. Be careful not to get too good a man. At best he might leave you in a year or two for a better opportunity. At worst he might become ambitious to succeed you. Be careful that his training is the same as yours. Otherwise he will perhaps know more about his department than you do. You must let your assistant know from the be- ginning that you are the boss. Do not give him the impres- sion that he is a partner in the concern. If he prepares a good reporj for a committee, be sure to make enough alterations in it so that you can present it to the committee as your joint HOW TO FAIL AS A SECRETARY. 437 production. Of course by the time it has reached the board of directors, it has ceased to be a joint production. This method will prevent your assistant from receiving empty compliments that might swell his head. Make it a point that your assistant shall always sign your name to the office mail. Let him understand from the begin- ning that you demand his respect and do not care a hang for his affection. Give him all the hard work to do, but keep him out of the lime-light. He should never be allowed to give a definite answer in your absence from the office. This may de- lay the service somewhat, but will prevent your being made responsible for his fool mistakes. After your assistant has been with you for a while you should be careful to explain to him how disloyal it is to the organization for him to consider any offer of another position without insisting that the other employer shall first take the matter up with you. With regard to his salary, always remember that you are spending other people's money. Be careful also that his salary never comes within a measurable distance of your own. It is subversive of discipline to have an assistant who is paid near- ly as well as yourself. There are many other points that should be borne in mind in dealing with your assistant, but it is not necessary to speak of but one other. You should always refer to him as "my as- sistant.'^ This makes him proud and glad and happy. Simi- larly, you should always speak of the stenographer as "my secretary." Although she may keep the books and handle the money, she would much rather have you call ber "my secre- tary" than refer to her as the cashier. You should realize from the beginning of your work that your personality is the dominant one. You are forced to ad- mit that you have a brilliant personality, and it would be un- fair to the organization if you did not give it the advantage of the full weight of your personality. This point is suscep- tible of a great many applications. For example: The letter- head of the organization may contain the names of the other officers, but yours should either be separated from these by a space, or else should be printed in larger letters. There does not seem to be any real reason why the names of the other officers should appear on the letterhead but it has been custom- 438 QUALIFICATIONS AND TRAINING OF SECRETARIES. ary to have them there and there is no particular objection to it. It is a good idea to have a sign on the door of 3^our private office — "Secretary's Office." A picture of this office with your- self seated at your desk should be printed occasionally in the annual report. A touch of verisimilitude will be added to 'the picture if your assistant is also shown therein, humbly hand- ing you a paper. Or your secretary may be seen in the picture taking dictation. In either case, however, the side or back of the other person should be turned toward the camera lest the larger effect be lost. The newspaper men should be encouraged to use your name freely. It is a principle of present day newspaper work that a "story'' must be "hung upon an individual." Obviously it is your duty to stand in Avith the newspaper men and pre- serve their interest in the work of your organization, and you must, therefore, yield to this practice, however repugnant it may be to you personally. You could, of course, persuade the newspaper men to hang the stor\^ on the president or the vice- president, or the chairman of a committee, but there is no rea- son why their finer feelings should be violated — their sacri- fices are sufficient as it is; you ought not to shirk any of the disagreeable features of your Avork. In meetings of committees, or of the board of directors, you should smoke a cigar or cigarette while reading the min- utes. This will show the directors or committeemen that you regard keeping the records of the organization as your least important duty. It gives you an air of easy nonchalance that is highly impressive. One meeting will be enough to convince any board of directors that you are from the big city. Having presented the subject for discussion yourself for the very obvious reason that you can do it so much better than the president, your voice should also be heard first in the dis- cussion. They are paying for your opinion, and they are en- titled to it. No matter how many questions are presented, yours should be the A^oice of first and final authority. If you can manage to couaw the impression, without actually saying it, that each of these questions has had your careful considera- tion long before it became apparent to the common mind that there was any such question looming toward the future, it is well to do so. Since it is a fact that you foresaw that the as- sassination of the Arch Duke would precipitate the Great HOW TO FAIL AS A SECRETARY. 439 War, is it not false modesty to try to conceal it? Since it is a fact that you had conclusive evidence that the Germans woi\ld sign the armistice, why appear as ignorant as the common run of men? i In discussing these various questions it is a good idea for you to say a few words between the remarks of each of the other directors. In this way you make certain that your full thought shall be revealed. In order that there may be no doubt as to Avhose opinions are being voiced, begin your sentences with the personal pronoun, "I,'' or as a pleasing variation you might say, "It is my opinion, etc., etc.,'' or ''It is the conclusion I have reached, etc., etc.'' It will occasionally happen that as the discussion proceeds your views may undergo a change. Your views are not altered by the opinions of others present, but your mind works more clearly under the stimulation of the meeting, and in this event justice to yourself requires that after all is said and done, you should sum up. It is this clear, far-seeing all-comprehending statement that your directors need to clarify their minds, un- used as they are to any other intellectual processes than those required for mere money-making. In short, by these methods and others, we should maintain the conviction in the minds of our employers that we are men among men, their equals or their superiors, the acknowledged leaders of the thought of the community. While we need not dwell on this phase of the subject, we should remember that the president should always be referred to as "my president," and the board referred to as "my direc- tors." This will make them proud and glad and happy. Anoth- er little, simple, helpful rule is always to refer to the office of the organization as "my office." When the organization is invited to be represented at a meeting or a dinner, and the occasion for a speech seems immi- nent, you should realize that while the name of the president might be more attractive on the program, there is always the danger that he will "spill the beans," and it is your duty to protect the organization. Go yourself. When your president and your directors and the members see you sitting up at the speakers' table, it makes them proud and glad and happy. The secretary should realize fully the value of his own time. It is paid for with other people's money, and it is a part of his 440 QUALIFICATIONS AND TRAINING OF SECRETARIES. duty to see that their money is not wasted. The president and the vice-president should not be encouraged to spend too much time at your office. There are only so many hours in the day, and you won't get your work done if you have to spend a lot of time talking to them, or worse still, listening to them. Make the president and the directors feel that they have hired you to run the organization, and that you propose to run it. Do not cultivate a habit of being a good listener. It is perfectly obvious that a good listener will receive a lot of con- fidences. Into his ears will be poured the current history of the motives, the ambitions, the jealousies, the meannesses and the occasional greatnesses of his many visitors. It is a mistake to suppose that this fragmentary comment helps to form in your mind a composite picture of your town. With your pow- ers of deduction you can form a far truer picture for yourself if your visitors will refrain from dropping into your office to express their views on the topics of the day. It may be true that the man who receives many confidences is the man in whom the community has confidence, but it is a deadly bore just the same, and it is a very good idea for the secretary to have a sign on his desk, that he who runs in may read — "This is my busy day." Indeed, the secretary should always appear to be very busy. He should walk rapidly through the streets, nodding curtly to those who address him. The man who stops him on the street should receive short shrift. If he wants to see you, he knows where your office is. People are impressed when you show them that you are giving them only half of your attention because of the momentous interests that are hanging by a hair, awaiting your word. You should always have it in mind that you are not the unofficial advisor of Tom, Dick and Harry. If they are not members of your organization they have no right to take your time. Occasionally the importance of your duties should be im- pressed upon the most influential men in town. One way of doing this is to tell the banker that you cannot see him before two o'clock. A still better way is to have your secretary in- form the judge that your calendar for the day is full, but that you would be delighted to see him at ten o'clock on the follow- ing morning. You should keep it in mind that while your town is the HOW TO FAIL AS A SECRETARY. 441 best town in the world today in which to operate a factory or build a home, it was a dead town before you came to it. Nor need the fact that it is the best tow^n in the world deter you from looking for a larger opportunity elsewhere. Now that you have put the town on its feet, it is perfectly proper for you to tell the influential people of a competing town how dead it was before you got there, aud you may even shake your head a little despondently over its future if once your guiding hand is removed from the helm of its destination. The secretary should get mixed up in politics. A very good way to do is to advise everybody to pull for a certain candidate for a certain office — let's say mayor. When your candidate is defeated and the other fellow is elected, it will help you to get what you want from the incoming administration. If you find, hoAvever, that the administration resents your having been on the opposite side, do not admit a mistake, but on the contrary attack each policy of the administration as it develops. It won't do you any harm to let the administration know that if they want you to work with them they have got to come to you. A good deal might be said (outside of the political phase of the question) of the relations of the secretary of a commer- cial organization with men in public office. But certain gen- eral observations can be made. No matter which party is in power, it is a good idea to constantly urge large expenditures of public moneys for the objects in which your organization is interested, and at the same time let it be clearly understood that you think the city administration is wasteful and extrava- gant, and that the tax rate is far too high. In dealing with the mayor and the members of the city council, especially when you are accompanied by a committee, you should call these public officials by their first names. In order to further illustrate your familiarity with them it is a good idea to steal a cigar from the vest pocket of one of them. These attentions on your part wall make them proud and glad and happy. Always keep your hat on at the city hall. The politicians do it, and you are just as good as they are. If the mayor hap- pens to disagT'ee with your committee on the policy recommen- ded, he should be made to understand that a difference on this point constitutes a definite split between himself and the or- ganization, that it will never be forgiven, that your organiza- 442 QUALIFICATIONS AND TRAINING OF SECRETARIES. tion will have no further dealings with him, and that you pro- pose to fight him at the next election. You can add that you carry the business men's votes of the town in your pocket. This may have the effect of solidifying the workingmen's vote against your organization if the mayor is clever enough to handle matters in that way, but even if you are beaten at the election, you have the satisfaction of having had the intelli- gent portion of the community behind you. You should steadily advise your organization to keep out of the labor question. AYhen the manufacturei's in your tov^^n argue that this is the largest question before the town or the state, or indeed the country, you can call their attention to the fact that while it is the largest question, there are other questions, and that if your organization takes sides on the labor question it will not have as great an influence in de- termining other questions. In discussing the labor question with the manufacturer, make him understand that you see no difference between collective bargaining and trades unionism — no difference between socialism and anarchy, and that you agree with him that an eight-hour day, profit sharing, pension- systems and welfare work are the soap bubbles blown from the pipes of impractical dreamers who have never met a pay-roll or paid a dividend. Every little while one of these hard-headed manufacturers will surprise you by conceding an eight-hour day or a share of the profits to his employes. This is simply an evidence that another good man has gone wrong and you can join all the other manufacturers in town in condemning his treachery tc his own class. Always be certain that any new line of work you take up originates within your own organization. If you admit to n committee or to the directors that this is an idea which has been worked out in Rochester, New Orleans, or Seattle, they will not give you credit for originality. As a general policy it is wise not to know too much about what other organizations are doing. It is apt to have its effect on your work ; to deprive it of your own individuality. It may link you up with some other town that is doing the same thing, and consequently make it less clear that the work and policy of your organization are unique. With regard to state organizations and national organiza- HOW TO FAIL AS A SECRETARY. 443 tions, the insular point of view is the proper one. Your town is a self-sufficing entity, and so is your organization. You are not dependent on the other towns in the state, and there is no advantage to your organization in being a part of a national organization. A certain modification of this view is possible, within limitations. FOr example, if you are put on the board of directors of the state organization, it becomes a correct policy for your organization to support the state organization, but on the other hand if the by-laws of the state organization are not drawn just to suit you, you should keep the other members of the board constantly in mind of the danger of your resignation. With regard to the national organization, it is well to consider whether it would not be worth while for your organization to pay dues in the national organization in order that you may accompany your president or councillor each year to the annual meeting in Washington or Atlantic City. Your presence there will have its effect in keeping the national organization on a straight course. In every state organization and every national organization you should keep your eye on the clique that runs the organiza- tion. All organizations (except yours) are run by a clique. There is great need for an insurgent movement to break the slate in all of these organizations. A very good slogan for such a movement is that all of the officers, committee appointments, etc., are held by the larger towns ; that the smaller towns get no recognition, and that the real bone and sinew of the nation is in the smaller towns. An insurgent movement requires leadership, and if you know just how the matter ought to be handled, there is no reason why you should shrink from the duty. At the meetings of state organizations, and whenever pos- sible in the national organization, it is particularly desirable to be heard from the floor at least once, and if possible oftener. The rest of the time can be spent in the ante-room just outside the convention hall. Speaking of insurgents reminds one that a paper of this sort ought to consider how" they should be dealt with. Not that any of us ever have insurgents in our ow^n organizations, but w^e.are asked occasionally by the other fellow^ how^ to deal with this problem. It should be realized in the first place that every insurgent movement is destructive in character, it aims 444 QUALIFICATIONS AND TRAINING OF SECRETARIES. to overthrow the whole policy of the organization, and to sub- stitute for that wise policy the selfish interests of the few in- dividuals who compose the insurgent group. They want to use the organization to promote and foster their own personal and private aims. They cannot use the organization for that purpose so long as you are the secretary. And for that reason they want to get your goat. In order to prevent insurgency from ever gaining a foothold, the following precautions are de- sirable: In the first place the nominating committee lo pro- pose new officers should always be appointed by the secretary. It may be necessary to do a little window-dressing in order to get this through, but with all your experience in this line of work, if you don't know who ought to be on the nominating committee, who in the world does know? Then the secretary should always meet Avith the nominating committee, and, if pos- sible, ought to see each member personally before the first meet- ing in order that the meeting may move smoothly with entire harmony and without any unnecessary waste of the valuable time of the members of the committee. At least two-thirds of the board of directors should be renominated each year. This helps to maintain the consecutive character of the organization's work. Its policy otherwise might be erratic. The same per- sonnel on committees should be continued year after year to give further assurance of a continuous policy within the organi- zation. If an insurgent movement rises in spite of those precau- tions, various steps can be taken that will be helpful. For example, if the insurgents demand an open meeting, the meet- ing can be called for a month later to allow time for the first violence of the movement to die down. When the meeting is finally called, it may be called for an unusual place, at an un- usual hour, and the notices can be issued to part of the mem- bers just a little too late for them to receive them. The impor- tant thing to remember in connection with this treatment of insurgents is that they have no memories. Once an insurgent movement is crushed, it is crushed forever. Moreover, the average insurgent is the kind of a man who is cowed by trea- ting him rough. Above all things, it should never be admitted that the insurgents have any just cause for complaint against the organization. It should never be admitted that the organi zation has ever made a mistake, and the insurgents should never HOW TO FAIL AS A SECRETARY. 445 be given representation on a nominating committee or a board of directors or in any position of honor or trust. You should always take yourself very seriously. A sense of humor in a secretary is badly misplaced. There are too many references to the "geniar- secretary. People do not seem to realize our responsibilities. They get the impression somehow — certainly through no fault of our own — that the president and the directors and the committees do the work. One of the most irritating assumptions that our members seem to have is that there is another fellow around the corner who can do our work just as well as we can, and maybe a little better. Now the secretary who does not take himself seriously encourages these illusions with reference to our vocation. There is a book by one Erasmus— "In Praise of Follie." No secretary should ever read it. Remember in your work that the main thing that counts in a town is the impression that it makes on visitors. And in this connection the visitor must be so conducted around the toAvn that he will not see the bad spots, which can, therefore, be left undisturbed indefinitely. The folks at home may knoAv about them, but they are used to them. A large part of our work should be aimed toward attracting tourist travelers. Emphasis should be placed on the fact that the town can be reached from everywhere and that the visitor may depart thence for anywhere. Waterworks systems, sewage systems, and miles of pavements are of particular interest to cultivated tourists, and should, therefore, be referred to liber- ally in your printed matter. This observation applies also to the location of a factory. Factories are always located where there is pure water to drink, a beautiful Soldiers' Monument, and a fine surrounding agri- cultural community. Comparative statistics should be avoided in literature issued by commercial organizations. Never com- pare the number of miles of pavements in your town with the number of miles of pavements in the other toAvns of correspond- ing size. Never compare the tax. rate in your town with any other tax rate in the world. If the prospective tourist or the prospective manufacturer wants comparative statistics, let him look them up himself — it is no business of yours. Your business is to advertise your town, not the other fellow's town. Everv little while a visitor comes to town and is lavishlv 446 QUALIFICATIONS AND TRAINING OF SECRETARIES. entertained by the organization, and is shabby enough to make criticisms of the town. Of course no attention should be paid to these criticisms. The facilities that the visitor complains of are good enough for our folks here at home, and if they are good enough for us, they are good enough for anybody. You knew that fellow had a swelled head the minute you laid eyes on him. The test of a successful organization is its size. The bigger the organization, the better it is. If you have a tow^n of 30,000 people and there are 1,000 members of your organization, it is safe to say that you have an organization that is absolutely democratic, in which the millionaire rubs elbow^s with the work- man, and of course the moment they join your organization they will absolutely agree on all matters of policy and then go hand in hand as brothers should. A membership campaign every year is a splendid thing. It keeps up the interest in the organization, and gives everybody something to do. If you have taken in 300 members during the year, that is an accomplishment that ought to satisfy any- body. Anybody can see what the year's work has done for the town. The dues of an organization, on the contrary,' should be kept as low as possible. It goes w^ithout saying that if you have very high dues, you will not have a large number of members. Of course, there ought to be a law compelling citizens to join our organization, but in the absence of such a law, they have to be attracted in because it does not cost much. Occasionally 3^ou wdll hear somebody say that the amount of the dues should be determined by the aggregate revenue required for the w^ork to be done, divided among the number of men wiio are really interested in getting the w^ork done. Of course any organiza- tion expert like yourself knows tliat this statement is a fallacy. In the first place how can you tell what work you want to do until you see how much money you have to do it wdth? And in the second place it stands to reason that the more people you get into the organization, th^ more work you can do. Every secretary should have an organization chart. This chart should show the membership as the foundation, then the board of directors, executive committee, officers, committees, bureaus, etc., etc. The secretary's place on the chart should not be bunched with the other officers. This chart is very HOW TO FAIL AS A SECRETARY. 447 helpful ill the practical work of the organization. It is espe- cialh' helpful if different colored inks are used. The best colors are red, blue, purple and green. If at the end of the year, however, you find that the direc- tors are not Avholly satisfied with the results of the year's work, it is well to consider changing the color of the ink used on dif- ferent parts of the chart. The chart is equally efficient in get- ting factories, securing conventions, and promoting public im- provements. If the chart indicates that the committee on mu- nicipal atTairs is responsible to the board of directors, and reports to that body, it is relatively unimportant whether the committee on municipal affairs ever does report to the board of directors or not. The main thing is to get the correct theory. For example, an organization that had a chart which showed that the board of directors reported to the municipal affairs committee could not possibly succeed even though in practice the processes were reversed. Whenever one of your members calls, show him the chart. It gives him a chance to turn over in his mind the matter that he came in to see you about. When he finally presents the matter that is on his mind, you can either show him that it is on the chart, in which case he ought to be satisfied, or else you show him that it is not on the chart, in which case you are perfectly satisfied. Next in importance to the chart is the card list of the membership. This card list should be comprehensive, and sliould include on each card a full history of the public and pri- vate life of each member. Securing this information will take a lot of the secretary's time. But nothing makes a member so proud and glad and happy as to write the history of his life on a sLx by four card. You can increase his pleasure somewhat by printing at the bottom of the card — ^Tlease write on one side only." Having secured all these cards, they should be filed carefully. When you come to make up the committees with the assistance of the president (not that his assistance is im- portant at all), all the cards should be laid out on your desk in alphabetical order, and each life history should be carefully considered in connection with each committee appointment. The president should not be permitted to overlook the impor- tance of the scientific method. He will probably think that the fact that he has known Tom Brown or Dick Jones all their 448 QUALIFICATIONS AND TRAINING OF SECRETARIES. lives, or that Bill Smith and he went to school toj?ether, has ig on the matter. You know, some bearinfir on the matter. You know, and he must be made to know, that there is a scientific method of doing this sort of thing, and that the card list represents that method. That is what you are there for. The secretary should always have at least one hobby. And that hobby should be the focal point of the organization's ac- tivities. It may be civil service, the city manager form of gov- ernment, drinking fountains in the parks, or the reform of domestic architecture. But whatever the hobby may be, it should occupy a large part of the organization's time. If any- one has the mistaken view that the organization's purposes should be more comprehensive, its aims more catholic, the sec- retary can point out that nothing can be accomplished without concentration. Writing reports for various committees may be one of the duties of the secretary. The first principle to be observed in writing his report is that no mention should be made of any arguments which tend to support any other conclusion than the one reached in the report. It is one of the best known facts about the tired business man that he is only interested in the recommendations made by his commercial organization. He cares nothing for the facts upon which its conclusions are based, nor the arguments pro and con which have been thrashed out in the committee. He is prepared to agree blindly with any recommendation the authorized committee makes on the sub- ject. Then, too, a report of this kind always carries great weight with the public at large. When it appears in the news- paper, all of the folks stop thinking whatever thoughts they may have been thinking on the question at issue, and accept immediately and unqualifiedly the recommendations of the commercial organization. The absence of any facts from the report and the omission of any argument convinces the com- munity of the comprehensive view your organization has taken of the subject. The secretary should have as his first ambition to be spoken of as the live wire of the town. But he should be careful to realize that there are two kinds of live wires. He should real- ize that a live wire that is quietly performing its duty is never heard, rarely seen, seldom thought of. A live wire to attract attention should get out of its proper place, bang around against HOW TO FAIL AS A SECRETARY. 449 everything within reaching" distance, short-circuit the machin- ery, and start a fire. Then everybody knows that there is a live wire around. The secretary should realize that the average business man and the average professional man has a very narrow point of view. He is intent on making nioney, and quite often he has the mistaken supposition that the commercial organization is interested in commerce. It will be helpful in dispelling this misapprehension for the secretary to keep himself aloof from commerce as much as possible. When the pickle manufacturer calls on you, recite Shelley to him. He needs the broadening influence of your culture. If one of your directors runs a saw mill, he would rather hear you discuss Bernard Shaw's latest play than anything else in the world. You shouldn't read commercial and financial journals for fear of getting into a rut yourself. Those of your members who are interested in real estate will appreciate it beyond words if you will talk to them about unearned increment and the right of the city to excess appropriation. The manufacturer who has been meeting a pay- roll for forty years will find your views on the nobility of man- ual labor exceedingly refreshing. In short, the important thing is to control the conversation yourself whenever you come into contact with your members, and you should control it along the broadening, cultural lines which represent the highest ideals toAvard which your young life is seeking to express itself. It is never Avise to bother the president or the directors with the criticisms you happen to hear of the organization. It is unfair to them to burden their minds with these details, and besides it is your duty to endure criticism in dignified silence. And finally, there is one infallible test of success or failure. If we hold our jobs Ave have succeeded. If Ave lose them aa'c have failed. Are not the successful secretaries those AA'ho have taken expediency as their Avatchword, have avoided the pitfalls of a decisiA^e position, have ncA^er regarded their organizations as instruments of human progress, but rather as the medium tlirough Avhich they maintain their livelihood? And are not the secretaries Avho have failed those quixotic spirits Avho have fought Avithin their organizations for things they believed to be right, against a majority — against almost a unanimous membership, and have at least acknoAvledged the bitterness of defeat and experienced the humiliation of dis- missal? Of course these are the failures. 16 450 QUALIFICATIONS AND TRAINING OF SECRETARIES. The National Association of Commercial Organization Secretaries By WILLIAM GEORGE BRUCE The National Association of Commercial Organization Sec- retaries has completed a career, sufficiently long and useful, to deserve historic record. While the organization is compara- tively young and, therefore, its story brief, it presents an evo- lution in a new calling — a calling that is a vital factor in Ameri- can community progress^ — and, therefore, not Anthout some national as well as local import. It records a period which has brought the scope and func- tion of the commercial secretary into clearer relief, his methods and operations upon a sounder basis, and his future upon a more established footing. The story of the association, with its pioneering predeces- sors, also embraces the most interesting as well as the most im- portant period in the history of secretarial service. It marks a transition from hazy conceptions to fixed definitions, from spasmodic dabbling to earnest direction, from uncertainty to positiveness. In a general way there has been a consciousness that the responsibilities of commercial bodies are primarily predicated upon community needs and aspirations; that these must be defined and established before concerted effort in realizing them is applied; and that the possibilities of the community along economic, civic and social progress must be analyzed by and realized through the medium of collective effort. But, today, commercial bodies are more certain of their ground, and ap- proach the elements of scope, method and aim Avitli greater as- surance. They have a higher appreciation of their mission and a firmer grasp upon their problems, obligations, and mode of procedure. Unity of Thought and Action Individual inclination and self interest are basic and form the mainspring of all human progress. But, when it is remem- bered that detached individual or diverse effort in behalf of a common cause can lead to nothing, it is promptly recognized ♦Address delivered at the Indianapolis meeting of the National Associa- tion of Commercial Organization Secretaries, October 28, 1919. NATIONAL ASSOCIATION COMMERCIAL SECRETARIES. 451 that unity of thought and action must be employed. Nor can the agencies of gor\^ernment, frequently created out of party strife and always restricted by laAv, legitimately engage in local promotional effort. If laudable ends and purposes are to be achieved for the community, which cannot be successfully fostered by the lone individual or on the other hand by the local government, it only follows that the collective citizenship, marshalled along non- partisan and unselfish lines is best fitted to perform the task. Hence the modern commercial body. That someone should, sooner or later, conceive the idea of associating commercial secretaries for educational purposes, was to be expected. That such an organization would grow into a compact whole, become truly representative in character, and realize its purposes, remained to be seen. Naturally, during its earlier history, this organization passed through all the vicissitudes of early childhood. Its in- fantile ailments were various and frequent, threatening at times to snuff out its young life. But, it continued to live, and gradually grew into a lusty, powerful and serviceable body. This period also marks a notable era in the life of the com- mercial bodies themselves. The young men who have yearly come to these gatherings have carried away new inspiration, new ideas, new expedients to their several organizations. They have been taught to recognize the modern commercial body in the light of a faith — a faith in human nature, in common coun- sel and in concerted action — a faith in the community, its de- velopment, its opportunities, its progress. They have been taught to espouse the highest aspirations of American urban life. In brief, the period with which we are dealing marks an epoch in that promotional effort which constitutes the true mission of the modern commercial body as exemplified in this country. Historic Outline The National Association of Commercial Organization Sec- retaries had its beginning October 10th, 1906, in Binghampton, N. Y. Twenty -five secretaries coming from New York, Penn- sylvania, and New Jersey formed what was then known as the Inter-State Association of Commercial Executives. It later developed into the American Association of Commercial Execu- tives. They represented the Schenectady Business Men's As- 452 QUALIFICATIONS AND TRAINING OF SECRETARIES, sociation, Ithaca Business Men's Association, Elmira Chamber of Commerce, Wilkes Barre Board of Trade, Syracuse Cham- ber of Commerce, Erie Chamber of Commerce, Scran ton Board of Trade, Harrisburg Board of Trade, Cornell Chamber of Com- merce, Rochester Chamber of Commerce, Buffalo Chamber of Commerce, Atlantic City Bureau of Publicity and the Bing- hampton Chamber of Commerce. The historian, James A. Bell, of Harrisburg, Pa., who told the story six years later at Louisville, refers to Clum, Smith, Clark, Gitchell and himself as the Old Guard. The annual meetings were held at Harrisburg, Pa., in 1907; At- lantic City, N. J., 1008; Rochester, N. Y., 1909; Grand Rapids, Mich., 1910; Louisville, Ky., 1911; Washington, D. C, 1912; St. Paul, Minn, 1913; Cincinnati, O., 1914. The Central Association of Commercial Secretaries was formed at Cincinnati, O., in 1909. The credit for originating this organization, we are told, must go to Will L, Finch. The presidents elected at the various meetings held during the life of the organization were the following : 1909 — Cincinnati, Ohio — William G. Gibson, Chicago, 111. 1910 — Milwaukee, Wis. — R. G. McClure, Indianapolis, Ind. 1911— Chicago, 111.— J. M. Guild, Omaha, Nebr. 1912 — Indianapolis, Ind. — E. M. Glendenning, Kansas City, Mo. 1913 — Omaha, Nebr. — William George Bruce, Milwaukee, Wis. In 1913 Mr. S. Cristy Mead at the St. Paul meeting, w^here he was elected president of the American Association, was authorized to confer with the Central Association of Commer- cial Secretaries with a view of consolidating the two bodies. At the same time the w riter, who headed the Central Associa- tion, championed an amalgamation which w^as finally consum- mated at the Cincinnati meeting in 1914. The National Association of Commercial Organization Sec- retaries became the successor of the tw^o bodies. Its meetings have since been held in the cities here named and headed by th following men as presidents : 1915— St. Louis, Mo.— S. Cristy Mead, New York City. 1916 — Cleveland, Ohio — William George Bruce, Milwau- kee, Wis. 1917 — Chicago, 111. — James A. McKibbon, Boston, Mass. NATIONAL ASSOCIATION COMMERCIAL SECRETARIES. 453 1918 — Rochester, N. Y. — Howard Strong, Minneapolis, Minn. 1910 — Indianapolis, Ind. — John M. Guild, Kansas City, Mo. Area and Vision The earlier secretarial conventions held in this country very properly adhered to the most timely program topics. While some of these were discussed with thoroughness others came in for meagre or superficial attention only. And yet some of the programs covered a range of subjects which extended far beyond the immediate problems concerning secretaries and commercial bodies. They rambled into factory and transpor- tation problems, foreign trade, waterways and city planning, ete. x\t the same time they discussed membership mainte- nance, new industries, the value of conventions, and other im- mediate and pertinent organization problems. Some of the speakers, however, were inclined to hold their treatment of subjects within narrow limits. They dealt, to a large extent, with local experience, local viewpoints and local conclusions. The result was that nerv^ departures and projects, partially developed and realized by one locality, were frequent- ly emphasized to the exclusion of the completed and successful experiments of another locality. It became evident here that, in the treatment of any im- portant subject, the experience of many minds and localities must be consulted in order to reach reliable deductions and con- clusions. Furthermore, it became apparent that the human vision must go beyond local color and environment, and extend over greater area and penetrate into a greater variety of con- ditions in order to bring the whole truth to the surface. The program builders of a later day recognized this broad- er conception of their function. They selected their subjects with greater discrimination and urged upon the speakers the value of bringing into play a wider range of observation and a deeper analysis with the result that the addresses gradually grew in strength and character. The builders of the organization also wisely held their deliberations within a properly defined domain. They re- frained from entering upon a discussion of principles and poli- cies that came strictly within the province of the local com- mercial body, and confined themselves to secretarial method;® 454 QUALIFICATIONS AND TRAINING OF SECRETARIES. and modes of procedure. Every topic was dealt with compre- hensively and ably. Every document became an authoritative treatise. Every volume of the proceedings became a dependable reference book. Thus, a review of convention programs for the past decade reveals not only an evolution in the subjects chosen but also in the manner of their treatment. They note a trend from the obvious to the complex, and a gradual penetration to the in- nermost springs of organization success. In fact, the present program goes to the very core of secretarial efficiency. I do not mean to convey the impression, however, that the main topics have all been exhausted and that the program makers of the future will run dry for want of material. An examination of tlie several manuscripts submitted by this or- ganization and its predecessors reveals the fact that there are still topics that have not as yet been comprehensively dealt with, or that must be reconsidered in the light of changed con- ditions and of later experiences. Ideals and Standards The renaissance that followed the merger of the two bodies into the one national organization also led to the fostering of fixed standards and ideals. Those who sought to place the secretarial calling upon a higher plane earnestly championed aims and accomplishments that were apparently far above the reach of the average but in reality within the grasp of all. While it is impossible to rear a completed secretary in a day, or to endow the average with all the mental and tempera- mental qualities that make for the perfect, it is possible to set up the desirable and the attainable. A sincere effort to live up to an ideal constitutes in itself an expression of progress. It spells an upward rather than a downward tendency, dispels lethargy and indifference, and stimulates nobler purpose and action. Those who believed that the impossible had been held up to them, or that the standards of efficiency had been set at un- attainable heights, have since applauded the spirit which sound- ed the battle cry of onward and upward. In reaching out for. the things that make for a more complete man, namely for in- spiration, for strength, for self-reliance, they have incidentally NATIONAL ASSOCIATION COMMERCIAL SECRETARIES. 455 addetl themselves to the ranks of the really efficient commer- cial executives. Another gratifying fact deserves mention here. The exu- berance of jouth is apt to disregard that poise and circum- spection necessary in executive labors, but, the younger men in the profession readily accepteil the counsels of the older. Some of the veterans generously pointed out the pitfalls which await the recruit, and good-naturedly touched upon the foibles, conceits and idiosyncrasies that impede the path to success. Equally gratifying is the fact that a receptive as well as help- ful spirit has characterized the entire organization. All well- meant counsel was cheerfully accepted in the spirit in which it was offered. Defining Official Relationships The period here dealt with may well be described as a dec- ade of definitions. With the progress of time it was certain that an institution such as this would be evolved but it was not certain that it would realize a maximum stage of service. And yet, the statement that it has accomplished more than its progenitors had hoped for it is fully Avarranted. It became within a short time a powerful factor in giving greater mo- mentum and direction to commercial organization labors, in clarifying essentials and in defining official relationships. These definitions cover eligibility to membership in com- mercial bodies, the function of executive officers, the mechan- ism of organizations and the purposes for which they are cre- ated. They have made unmistakably clear that the modern commerce body is a small plant with a large purpose, that the raw materials consist of undeveloped, incomplete and disjoint- ed conditions, and that the finished product is found in ad- justments and accomplishment, in construction and achieve- ment. This period too has thrown the searchlight upon the con- stituent ingredient — membership. Tt has taught that he who bursts in upon the commercial body and selfishly asks "What am I going to get out of this?^' is far from having a proper conception of modern commercial organization purpose. Such men obey the law and pay taxes because they are compelled to, little realizing that a voluntary contribution of time and money to the local body constitutes a test of useful citizenship. During the past decade there have come upon the scene in increasing 456 QUALIFICATIONS AND TRAINING OF SECRETARIES. numbers those who give liberally of themselves and their sub- stance^ in order that the welfare of an entire community may be promoted. AVe are also clearer on the essentials in marshalling mem- bership into a working body. The machinery employed in prompting thought and action along promotional lines must be properly designed and built of the right material. The best business and professional element must be identified with the organization and become an active constituent part of the same. In other words, the commercial body must be truly representa- tive of the progressive citizensliip and organize its component parts so as to effectively perform the service required of the same. Status of the Secretary An undeveloped condition of the commercial body only can account for the wrong position in which some secretaries may be placed. Instead of being recognized as executives with discretionary powers they are, in instances, reduced to a mere recording clerkship. Where such an officer is a novice in sec- retarial duties no objections can be raised, and yet the thought that the secretary must be an expert in policies and methods of community promotion, and the intellectual equal of his board of directors, should be primarily observed in selecting him. In order to fill the position adequately the secretary must l>e resourceful enough to devise, initiate and recommend, and after the committees and the board have fixed upon policies and departures, he must be stronc: enous^h to execute. He serves on the one hand as a stimulus to thought and motive, and on the other as the strong right arm to construct and realize. Logically, it follows that he cannot fulfill the func- tion of his office unless he knoAvs his town and its possibili- ties and the procedure of inaugurating movements and ob- jective action. He must become the clearing house for the ideas and suggestions that come within the organization pre- cincts, and, together with his associates, subject them to the siftinjy process and to analysis. It has always been my theory that the coordination of the secretary and his board, his committees and membership should be clearly defined and recognized in order that friction may be avoided and harmony and efficiency be obtained. Here, of course, it is essential that the secretarv mani- NATIONAL ASSOCIATION COMMERCIAL SECRETARIES. 457 fest sufficient strength of character to meet the requirements of his office and to adjust himself to the interrelations which must obtain here. The president and secretary are not only co-workers but also co-equals. They work as a team in the same harness. They are not in the attitude of boss and clerk, but rather joint workers in a common cause. The tactful secretary recognizes the prerogatives of the president, his distinction and his leadership — while on the other hand the president recognizes the scope and function of the secretary and the cooperative attitude he must assume towards him. Neither can assume to arbitrarily direct the other. Tho source of authority springs from the board of directors to whose dictum both must submit. This body, in its collective capacity, constitutes the highest authority created Avithin the organization. The body mem- bership exercises the legislative functions of the organization and delegates judicial and administrative powers to the board of directors. The president is the presiding officer of the or ganization and the executive head of the board, while the sec retary is the executive head of the office force and of the ad ministrative labors. Aside from the functions outlined here the president stands in an advisory capacity to the secretary and should stimulate all along the lines policies and purposes helpful to laudable achievement. The Old and the New The educational influence which lias so richly flown from the annual gatherings of the association has in a great measure caused a change in the type of men who have gone into secre- tarial labors. The hurrah circus style fellow, who shouted himself hoarse for his town, lias practically disappeared from the scene. Individual brag and bluster have given way to collective thought and team work. It may seem presumptuous to hold that a secretary must educate his board of directors, but it is not unreasonable to assume that the conclusions reached by the trained secretaries of the country, must in a greater or lesser degree be acceptable to those entrusted with the affairs of commercial bodies. The prestige which the National Association of Commer- cial Organization Secretaries has won for itself, together with the distinct'on it has conferred upon many of its members, has 458 QUALIFICATIONS AND TRAINING OF SECRETARIES. also lifted the entire secretarial calling upon a higher plane and has given each man a better standing "back home.'' While some of the secretaries have been honored with office or pro- gram distinction and have thus gained in the eyes of their directors and associates, the rank and file, too, has shared in the benefits that have accrued from convention deliberation. It has enabled them to meet with greater confidence and author- ity the problems that have confronted them, and has won for them a greater standing with their associates and co-laborers at home. It may confidently be asserted that there is no com- mercial secretary in the United States today who has become so proficient in his office that he can afford to ignore the edu- cational stimulus and guidance provided by this body. The impetus thus given to a singular and exceptional call- ing has implied better compensation, higher appreciation and more congenial surroundings. But, it has also gone to the very core of the great cause in which secretaries, directors and com- mitteemen are serving, namely the stimulation of the highest type of American citizenship. What of the Morrow? I have thus far spoken retrospectively. What of the fu- ture? What Avill be the commercial organization of tomor- row? What part will the secretary play in the future economic, civil and social life of his community? What service can and will this organization render in the progress of American civili- zation ? In meeting these questions T am readily prompted to an optimistic answer. If the story of a comparatively recent past may be applied to an immediate or ultimate future then the commercial body will continue to grow in strength and serv- ice, and become an ever increasing factor in the life of the community. It will not only be a common mentor of local interests, in future as it has in the past, but also the strong correlating and coordinating force that will bind the economic and social factors into an effective unit, and lead with greater certainty in the progress of American urban life. The man who guides and directs this force is bound to become a correspondingly important factor. His office will assume increasing distinctions and uniqueness. He will stand NATIONAL ASSOCIATION COMMERCIAL SECRETARIES. 459 on a par with the school superintendent and the mayor, one a citizenship trainer, the other a governmental executive. The commercial secretary, who is both a trainer and an executive, seeking to vitalize citizenship and' to strengthen gov- ernment, is the recognized champion for a community house- hold that shall not only be orderly and intelligent, but prosper- ous and high-minded as well. The collective citizenship, properly marshalled and guided, may go far beyond the legal limitations which beset local gov- ernment in launching into the broad domain of economic and civic advancement. Hence, the commercial secretary not only begins where the school superintendent leaves off, but occupies a field that exceeds in potential service the law-restricted, and oftimes politically biased possibilities of a mayor s office. With the ascendancy of the commercial body, performing in the fullest measure the function of its being, expressing the most laudable ambitions and the highest aspirations of the community, the commercial secretary will rise in distinction, in service and in power. In saying this I am not disposed to exalt the commercial secretary beyond the station to which he has been assigned, but I am certain that by virtue of the growing importance of his office, and as an active participant in the great march of civilization, he ^^^ll stand out as a dis- tinctive figure among his fellow men. Subserving the American Spirit If this organization has, in its brief existence, rendered a service in strengthening the integral parts that constitute a great nation, it has also the power to continue that service and to intensify that beneficent influence which it now radi- ates into numberless units of population. The prestige and power of a great Republic must spring from its component parts. The enterprise and energy, inven- tive genius and constructive ability must be awakened into con- stant and continuous action. Citizenship no longer means mere obedience to the law. It means useful service as well. The patriotism of peace, like the patriotism of war, calls for action — energetic action in all that will prompt a better town in order that there may be a greater nation. That nation is now actuated by a new spirit. The Ameri- ca of old stretched out its arms in Avelcome to the oppressed of 460 QUALIFIGATIONS AND TRAINING OF SECRETARIES. all lands. It cried out to them ''Come to our shores. Join us in building a nation on new ideals of government — a nation that shall endure for all time.'' The new America has gone to other shores, torn down the shackles of autocracy, and cried : ''We have realized our ideals. We are here noAv to help you realize your own dreams of self- determination, of democracy, of freedom." This new world-outlook, Avith its altruism and concern for humanity, also implies a finer relation between our fellowmen at home. It exacts new^er conceptions and responsibilities in the direction of collective community effort, and inspires broad- er considerations for the welfare of the many as against the interests of the few. In the light of this new spirit your mission and mine be- comes loftier, nobler and holier. Let us dedicate ourselves anew to the task that is ours, realize its high purposes, and thereby win for ourselves the proudest distinction that modern civilization can confer upon any man — the title of true Ameri- can citizenship. THE END. INDEX Page Dedication 5 Preface 7 Part I. Advertising by Commercial Organizations 139 Agriculture and Commercial Organizations 8S P'arm a Factory 91 Movement for Diversified Farming 89 Chamber of Commerce in City of "Average" 37 Chamber of Commerce of the United States 180 Business Service 186 Determining Chamber Policies 182 How Governed 186 Membership Qualifications 185 National Chamber Activities 184 National Chamber to Build 189 Nevk^ Nationalism in Business 181 Organization Membership Service 187 I'rogran; of Expansion 188 Charity Endorsements and Fraudulent Solicitations 160 Answering Essential Questions 161 Constructive Supervision 163 Endorsement Cards Issued 166 Methods of Endorsement 16o Task , for Commercial Bodies 162 Commercial Arbitration 16S Commercial Organizations 173. 179 Conciliation 175 Decision and its Force 172. 175 Fees of Trading Bodies 179 Methods of Procedure 171. 175 Other Plans 177 Selection and Control of Arbitrators 169, 174 Work of the Committee 177 Work of Trading Body Arbitration Committees 173 Commercial Organizations and Back Country 92 Some Recent Federal Legislation 94 What Commercial Organizations Can Do 97 What Organized Work Involves 96 Commercial Organizations and the Farming Element 8(5 Commercial Organization in Town or Small City 34 Best or Most Unique Achievement 34 Kinds of Promotion Emphasized 35 Large Town vs. Small Town Problems 36 Conventions. Their Cost and Value ^34 Some Conclusions about Conventions 136 Value of Conventions 137 461 462 INDEX. Page Efficient Commercial Organization 25 Commerce Precedes Culture 28 Directing Collective Effort 29 Economic and Civic Advancement 27 Essence of Promotion 26 Essentials of Efficiency 29 Government and Commerce 26 Ei'^sentials of an Effective Orsranization 31 An Illustration 32 Other Things Essential • 31 Why This is of Importance 31 Factors in Securing Factories 70 Attitude of Banks 75 Factor of Chief Importance 71 Fund for Industrial Development 76 Industrial Sub-division 76 Influence of Market Problems 73 Matter of Money Outlay ^ 74 Some Other Important Items 72 Industrial Development by Chambers of Commerce 50 Creation of Conditions Favorable to Industries 51 Industrial Surveys 50 Offer of Special Inducements to New Industries 52 Two Types of Organization Activity 51 Industrial Development of the Small Town 55 Industrial Committee 56 Small Town Development 57 Industrial Survey of the City 78 Investigation of New Industries 80 Location of New Industries 82 Solicitation of New Industries : 79 Introduction .- lo French Originals of the Chamber of Commerce 15 German Official Chambers of Commerce 19 Modern American Type of Chamber 20 Origin and Works of American Chambers of Commerce 20 Two Tj'pes of Organization in Switzerland 18 Voluntary Chambers in England 20 Mission of Trade Extension Journeys 143 Administration and Management 145 Attitude of Visiting Merchants 145 From the Standpoint of Cities Visited 144 Organization Service for Retailers 113 Activities of Interest 115 Dependency of Retailer 114 Plan for a Temporary Exhibition 119 Admission and Information 129 Booths 126 Building 124 Concessions 130 Cooperation and Advertising 121 Educational . 121 Entertainment 131 Exhibits 125 Exhibitors 133 Finance and Publicity 128 INDEX. 463 Page OfiPicers and Committees 123 Organization and Plan 122 Preparation 125 Profit or Deficit 122 Results 132 Safety and Comfort 130 Service 129 Proper Place of Industrial Development in Work of Commercial Organi- zation A/ 58 Industrial Survey 61 Man and the Market 59 Relations Between Civics and Commerce 42 Short Trips from a Jobbing Center. 147 Long Journifs 148 One-Day Outings ., 149 Trade Extension Through Excursions 146 Trade Extension Trips— Methods and Results 150 Benefits to be Derived 156 Conduct of Automobile Trips 155 Four General Methods 151 Importance of Trade Trips 151 Methods for Conducting Trips by Train 153 Objects of the Trips : 152 Some Results from Trade Tours 158 Traffic and Transportation Bureaus 99 Transportation Problems 102 Appointment of Transportation Committee 104 Cooperation with the Carriers 104 Cooperation with other Organizations Ill Educational Work ; . 105 Relation of Traffic Department to the Organization 103 Small City vs. Large City 110 Specific Services Rendered 107 What is an Industrial Survey 62 Factors Bearing on Industrial Problems 64 Purpose of Which Factors are Listed 65 What are the Industrial Problems of the Community 66 Part II. Advertising Methods of Commercial Organizations 248 Frequency of Publication . . . ,/. . t. . . . 252 House Organ Contents ....'.... 249 Important as Means of Communication .'...:.«-j. . 255 Question of Make-TTp . . . . ..'. . . . 250 Should Advertising be Admitted ,. ; 252 Annual Reports. Their Form and Value -.:...::. lc>. yi»r.^. . . . 339 A Variety of Foi-ms .*r. »,,.,, . . 340 Purpose of Reports .....f . ,, ,;j^«. ... J^^. . . 340 Budgets for Commercial Organizations...... ...;;.%» .-.^jviJi- •• • 278 Budget Accounting , .-^ni vt . . . 289 Control of the Expenditure of Budgeted Funds ..',i. {)«>.. . 288 Relation of Budgets to Working Plans ..,..;..;; 283 Conservation of Committee Energy '^'Jik.. vI^/V. .v. ;..-;... . 306 Conditions Precedent ... . » ... ..... 306 Facilities for Committee Work . .-. 311 464 INDEX. Page Methods of Committee Work 314 Source of Energy 308 The Secretary's Function 307 Democracy in Chamber of Commerce 193 Membership 193 Necessity of Bigness 195 Time for Action 194 Elements of Membership Conservation 226 How Members are Retained 228 Program of Membership Conservation 231 Unknown Member 230 Why Members Resign 227 Filing Systems for Chambers of Commerce 373 Agenda Card and Slip 381 Automatic Index and Numeric Method 375 Basis for Filing Systems 374 Carbon Copies 378 Centralization of Files 377 Circular Letters 379 Committee Correspondence 380 Cross-Reference Slips 379 Geographic System 376 Illustration of Subjects, Classified 384 Illustration of Subjects, Unclassified 384 Methods of Construction 374 Requisite Principles 373 Sorting Tray and Transfer 382 Subject Basis and Numeric Plan 377 The System 378 Forms, Records and Financial Accounts 353 Continuous Bound Records 370 Principles that Govern 368 Security Uniformity 369 Keeping Before the Public 246 An Official Mouthpiece 247 Keeping Before the Public 247 Keeping the Members Informed 260 Other Ways of Keeping Members Informed 263 Some Ways of Keeping Them Informed 261 Type of Organization Organs 263 Membership Development and Maintenance 221 Converting the Unregenerate 222 Next Step 225 Recapitulation 225 Some Methods 224 Membership Methods in Small Organizations 234 Demands of Members 235 Methods of Recording Minutes 342 Brevity Most Desirable 345 Character of Record Books 347 Headings or Side Notes 349 Need of Discrimination 343 Secretary Must Efface Himself 347 Sending Advance Schedule 344 Synopsical Reports 346 Writing the Minutes 344 INDEX. 466 Page Methods of Sustaining Memberships 197 Experience in Other Cities , 197 Experience of Large Cities 202 Judgment of Smaller Cities 217 Membership Arguments 206 Membership Solicitor 206 Minimum Results — Maximum Cost 211 New York's Membership Elxperiment 204 Plans for Committee Organization 202 Service Men 200 Solicitors or Campaigns — Which 221 Some Sales Arguments 199 Something to Sell 198 When Do Solicitors Pay 219 News Value in Organization Publicity 271 Chicago's News Bureau 272 The Creation of News 273 Office Administration 323 Arrears and Delinquents 331 Control of Assistants 337 Form of Reports , 326 General Questions 323 Getting Acquainted 329 Membership Activities 328 Most Effective Unit 333 Retaining Committee Interest 334 Securing Committee Attendance 335 Specific Entertainment Features 330 The Handling of Publicity 336 The Use of Bulletin Boards 327 The Use of Charts 324 Who Appoints Committees 332 Organization Bulletins —Their Hits and Misses 265 Against Advertising 268 Character of Publication 266 Form, Size and Advertising 267 Summary 268 Organization Costs and Results 290 Advertising Media 299 Budget 293 Expediency of a Surplus 295 Expense of Membership Work and TjOss from Unpaid Dues 293 Importance of the Civic and Social as Contrasted with the Commer- cial and Industrial 298 Membership and Income as Related to Population 290 The Ways and Means Plan 296 Value of Cafe Service 292 Promotional Efforts and the Public Press 257 Show Your New spapers You Trust Them 257 When the Newspaper is Your Best Aid 259 Rebuilding an Organization 239 Democracy Established 240 Selfish Member 242 Service — Great and Small 244 Records of Members. Payment of Dues 350 System of Membership Accounts , 352 What is to be Accomplished 351 46G INDEX. Page Some Dangers of House Organs 269 Some of the Problems of Organization Finance 275 Budget System 276 Refund Surplus Pro Rata 277 Sources of Revenue Classified 276 Various Methods of Financing. 277 Stimulating the Organization Machinery 317 A Genial Committee Spirit 320 Affability and Good Humor 322 Do Not Withhold Applause 319 Element of Enthusiasm 318 The Man from the Outside 321 Sustaining the Interest of Members 236 Fourth Essential to Sustained Interest 238 Where to Hold and How to Conduct Meetings 301 Sub-Committee Meetings 308 The Public Affairs Committee 302 The Question of Attendance 304 Where the Real Work Should Be Done 305 Part III. Gofllege Training for Secretaries 408 Attitude of Universities 415 Breadth of Knowledge 411 Kind of Education Required 411 Political and Social Life 410 Sociology and Coordinating Science 414 Specialized University Courses 416 Stimulating Commercial Life 409 Value of Political Economy , 413 Conscious Training for Secretaries 427 Secretarial Training 428 The Basis for Development 429 How to Fail as a Secretary 435 Most Helpful Secretarial Literature. The .390 Educational Equipment— Reference Matter 401 Inspirational Factors Negle<.-ted 403 Knowledge 398 Literature Suggested 405 Necessity for Selecting 404 Reading as a Helpful Factor 397 The Flood of Printed Matter 400 The Vocational Studies 402 Vision and Enthusiasm 398 National Association Commercial Secretaries. 450 Area and Vision 453 Defining Official Relationships 455 Historic Outline 451 Ideals and Standards. 454 Status of the >Secretary 4.56 Subserving the American Spirit. 459 The Old and the New 457 What of the Morrow .: . v. .j,;. i .-^ 458 INDEX. 467 Page Qualifications of rlie Secretary, The 389 A Seiiii-Public Cliaracter 892 A Summary of the Several Fuucti(nis 894 Action and Achievement 391 In the Formative Stashes 389 Secietary and Board 391 The Promotional Expert 393 The Secretary in the Making 390 Secretarial Efficiency and the College 430 A Course of Study 43l» Drawing Men from Colleges 434 Rudiments of Retail Trade 431 University and the Secretary, The 417 Conclusion 426 Intelligent Joint Effort 425 Present Opportunity 419 Proofs of Business Solidarity 420 The Accounting Phase 421 The Administrative Phase 422 The Equipment Phase 421 The Marketing Phase 423 Undeveloped State of Local Economies 418 THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO 50 CENTS ON THE FOURTH DAY AND TO $1.00 ON THE SEVENTH DAY OVERDUE. MAR 1 1935 y ] vYQ^'^ IN STACKS JUL 11065 Qg^ 29 193 5 REC'D LD JUL l'65-4pM JUL 7 1938 HtB 21 194a -m Sf^ iiiii. p^O vo ^^ A9E2. LD 21-i <>jp ^ fT •120C '-7 UNIVERSITY OF CALIFORNIA LIBRARY