jC-r=Cono/72/'cS /_J^^^^^^^^ ^o^ ' 
 
OFFICE TRAINING 
 
 and 
 
 STANDARDS 
 
 By FRANK C. McCLELLAND 
 
 A, W. SHAW COMPANY 
 
 CHICAGO NEW YORK 
 
 LONDON 
 
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 s^"^^ 
 
 /M2 
 
 COPYRIGHT. ]919, BY A. W. SHAW COMPANY 
 MArN LIBrJARV 
 
 relNTED in THB OWITBD 8TATE8 0» AUEBICA 
 
TO THE STUDENT OF OFFICE 
 PRACTICE 
 
 rriHE difference between work and play is simply the differ- 
 '- ence between your attitude toward work and your attitude 
 toward play. Office work can easily be turned into a fascinating 
 game, just by following the rules and keeping score. 
 
 ''How can I keep score on work?" Just the same way you 
 keep score in a game. In a baseball game you count the hits, 
 the runs, the fouls, and so on. In business you can also count 
 the hits, the runs, and the fouls. 
 
 Every time you finish a task, you make a ''hit"; each mis- 
 take counts as a "foul"; every time you fail to finish a task, 
 you make a "strike"; and if you fail often enough, you "strike 
 out." On the other hand, work quickly done counts as a "ball" 
 and four balls give you your "base"; you score a home run 
 every time you receive advancement. 
 
 What are the rules? There are only three rules for success 
 in business; they are: learn the game, play the game, and stick 
 to it. Simple? Yes, but you will find that something just as 
 simple lies at the bottom of everything that's worth while. 
 
 This book will show you how to play the game. Here are 
 a few suggestions that will help you to get the most out of the 
 book : As you thumb over the pages, you will see illustrations of 
 various kinds — photographs, charts, diagrams, forms. 
 
 Study these illustrations carefully. They were not put in to 
 fill up the book, or to make it look nice. Each illustration was 
 selected with a purpose, and thousands of illustrations were 
 examined before the final selection was made. 
 
 If the illustration is a photograph, see how many different 
 objects in it you can pick out. Ask yourself what the purpose 
 of each object is and why it is shown. 
 
 You will find the charts are helpful, if they are used correctly. 
 The only justification for using a chart is to make a situation 
 
 \ nriOf^ 
 
PREFACE 
 
 clearer than is possible by a written description or by columns 
 of figures. A chart which is unintelligible is worse than none at 
 all; it takes up valuable time and space. As you examine each 
 chart try to analyze it just as you would a photograph. Try 
 to find a reason for everything on the chart. 
 
 The forms are not merely "something to fill out." If they 
 were, blank sheets of paper would be just as serviceable. A 
 properly designed form does not call for any useless information, 
 but it does call for all the information that is necessary. 
 
 Analyze carefully each form in the book and see if you can 
 give the reason for the form as it stands. Also try to improve 
 the form, if you can. 
 
 You will find some of the charts and tables well worth mem- 
 orizing. Do so. An easy way to memorize something is to read 
 it over once or twice, and be sure you get the meaning of it. 
 Close your eyes and try to recall how it looks. Read it once 
 more and then copy it on a sheet of paper. 
 
 After you have copied it, compare it with the original to make 
 sure it is an exact copy. Then put both original and copy out 
 of sight and try to make a copy from memory. Do not be dis- 
 appointed if you don't get it the first time. If it were possible 
 to jump from the bottom of a ladder to the top, the rungs would 
 never have been put in. 
 
 Every business has a purpose. That purpose is usually to 
 make a profit for the owner of the business, whether that owner 
 be one man, as in the case of a butcher shop, or several thou- 
 sand stockholders, as in the case of the United States Steel 
 Corporation or of a railroad. 
 
 Not only must the business make a profit, in order to succeed — 
 it must also render some service to the community. Every 
 business is successful just to the degree that it makes itself 
 serviceable to the community, and every new business is expected 
 to justify itself by rendering a new or superior service. 
 
 The constant study of every business organization and every 
 individual entitled to any position in the business world is or 
 should be how to improve the service rendered to the community. 
 But the basic reason for business, which in the last analysis is 
 simply the buying and selling of commodities or service, is to 
 make a profit. 
 
PREFACE 
 
 For example, the butcher buys the Hve animal at a price, kills 
 it, cuts it up, and sells the various parts of the animal for more 
 than he paid for it. Not only must he get more than he paid 
 for it, but he must also see that the selling price pays for his own 
 labor, the labor of his men if he has any, the rent of his butcher 
 shop, his light, heat, equipment, and, if he has borrowed money, 
 interest on the borrowed money. He must also protect his shop 
 from fire, and the selling price must, therefore, include the 
 cost of the insurance. 
 
 Now if the butcher bought and sold only one animal a year 
 and paid all his bills once a year, he would need to include in the 
 selling price of the meat from that one animal all his costs for 
 that year. The result would, of course, be an absurdly high 
 price for the meat. 
 
 But the butcher sells more than one animal a year, He may 
 not sell the bones until he has a pile that may have come from 
 twenty or thirty cattle. This pile of bones may have accumu- 
 lated in five days, or it may have taken five weeks. In any 
 case that pile of bones has cost something, and the butcher must 
 get that cost back, with a profit. 
 
 How the butcher gets his cost back, what that cost is, how 
 he determines what profit to add, how he determines when to 
 buy cattle and when to sell, when to keep on accumulating bones 
 and when to dispose of them, where to keep his meat and to 
 whom to sell it, whether to buy and sell for cash or have the 
 goods charged, whether to carry groceries in addition to meats, 
 whether, in short, to do or not to do the thousand and one things 
 that come up continually, day after day — all of these are deter- 
 mined by what are called business policies. 
 
 The pohcy of a business house determines very largely where 
 that house is headed, and what it is doing. "Honesty is the best 
 pohcy" is a fundamental, and in that fundamental and the extent 
 to which it is practiced in all business, lies largely the success 
 of the business. 
 
 But this is only one policy. There must be hundreds, and 
 sometimes thousands, of other policies. Policies are the guide 
 posts which direct the course of the business, and like guide 
 posts, all the poHcies of the business must lead in the same 
 direction, to get to the desired point, which is usually profits. 
 
PREFACE 
 
 The head of the business sets the guide posts, or poHcies. 
 His assistants follow the guide posts he has set. This is called 
 "carrying out the poUcies." In carrying out the pohcies, more 
 help is needed with some poUcies than with others. Take letter 
 writing for example: common courtesy requires that all letters 
 requiring answers shall be answered within a reasonable time. 
 Some letters will be answered one way, some another. A letter 
 of complaint would, of course, be handled differently from a 
 letter ordering goods. Here there are two policies in force, easily 
 determined. The first pohcy requires that all complaint letters 
 shall be handled tactfully, so as to satisfy the customer, and still 
 keep his trade. The second policy requires that the order shall 
 be shipped to the customer just as soon as possible, and in the 
 way the customer requested. 
 
 In carrying out these policies, other minor policies or guide- 
 posts may be required, just as the country roads have signs 
 pointing the way to the main highway, which in turn has guide- 
 posts pointing to the big city, the ultimate goal. The main 
 highway represents the road over which the business is travehng 
 to the goal of profits. The side roads may represent the different 
 departments which contribute their share to the main highway. 
 And there may be still smaller roads leading into the side roads. 
 Some of these smaller roads may be only foot paths. But, 
 whether the way be a footpath, a side road, or the main high- 
 way, the guide-posts which we call pohcies are necessary to 
 guide our steps every foot of the way. 
 
 It is evident that at some steps many assistants will be 
 required. It is also evident that every assistant, whether he be 
 the assistant manager or the office boy, whether he be a book- 
 keeper or a stock clerk, has a definite part in every business, has 
 certain definite policies to carry out, certain definite guide-posts 
 to follow, and just to the extent that those guide-posts are fol- 
 lowed, from the office boy up to the president, just to that extent 
 will the business prosper. And just as the neglect of the president 
 to follow the instructions on the guide-posts of the main highway 
 may lead to the desert of loss instead of the city of profit, just 
 so may the neglect of the assistants on the footpaths and side 
 roads to follow their guide-posts lead them into the woods instead 
 of out into the main highway which leads into the city of profit. 
 
PREFACE 
 
 Do not think, however, that the president's and the man- 
 ager's jobs are the only well-paid ones in the office. They aren't. 
 While we should all try to qualify ourselves for the manager's 
 job, we must not forget that there are other well-paid positions 
 in every office. 
 
 The demand for expert stenographers has never been satisfied. 
 From a stenographic position to the work of a private secretary 
 is but a step. There is probably no quicker way to learn a 
 concern's business methods than through its correspondence. 
 The secretary is always handling the intimate details of his 
 employer's work, and gets invaluable training first hand. 
 
 More and more each year stenographers are entering court 
 and pubhc work. Court stenographers command high pay, 
 although the strain is very severe and the pace terrific. Many 
 pubhc stenographers have their own offices and staffs, and the 
 calhng is dignified as well as remunerative. 
 
 Over one hundred miUion dollars in sales are made each 
 year by mail by one house alone — that is a specific example of 
 the possibihties of letter writing. That is also one reason why 
 the man or woman who can write good business letters is always 
 in demand. The work of the correspondent is pleasant and 
 agreeable, and the position is well paid. 
 
 Many a successful man today looks back to the time when 
 he first studied bookkeeping. Indeed, without bookkeeping, 
 modern business would be a mystery. Whether you ever become 
 a bookkeeper or not, you'll probably never regret the time spent 
 in acquiring a knowledge of the subject. 
 
 From bookkeeping to accounting the transition is easily 
 made. Accountants today hold important positions in big 
 concerns. The abihty to tell whether a business is going ahead 
 or falling behind is worth a lot in these days of intense competi- 
 tion. The positions of auditor ajnd controller carry high salaries. 
 
 Among the other good positions available to the ambitious 
 worker are those of purchasing agent, traffic, employment, 
 advertising, and sales managers, assistant department heads, 
 and supervisors of many kinds of work. 
 
 This book is for every office worker, regardless of his or her 
 position, as well as for those who are not yet engaged in but 
 are looking forward to office work. 
 
PREFACE 
 
 If you are or expect to be a stenographer, a private secretary, 
 a correspondent, this book wall show you how to become more 
 efficient in your work, a more capable assistant, an indispensable 
 aid to your employer. 
 
 If you're a bookkeeper or expecting to become one, yoa can 
 learn how to gain a deeper insight into the intricacies of account- 
 ing and office work, through this book. 
 
 A file clerk can not only improve his or her filing, but can 
 also make the files really live, something more than dry masses 
 of papers and records — make them the vitals of the business. 
 
 The stock clerk, the typist, the copyist, the dictating-machine 
 operator, the bill clerk, the operator of office machines, the order 
 clerk, the cashier, the wrapper, the addresser, the supervisor and 
 the inspector, the messenger boy and girl the checker — in fact, 
 every clerk and assistant in the office will find in this book an 
 opportunity for which they have longed, a chance to look beyond 
 their job and prepare for the job ahead. 
 
 If you are working for the purchasing agent or the traffic 
 manager, the auditor or the sales manager, the controller or the 
 advertising manager — in whatever part of the office you are work- 
 ing or expect to work, you will find this book your best friend. 
 
 If you will master its pages, you will not only have a better 
 knowledge and idea of your own job and its meaning but you 
 will be ready for advancement far ahead of others who may be 
 wasting their opportunities. 
 
 Every hour you spend in mastering this book will return to 
 you, ten, twenty, fifty, or even a hundred times its present worth, 
 in real money. The policies and methods here given will guide 
 you to more effective work, show you where you are going, and 
 enable you to use your strength and knowledge and ability 
 where it will count the most for you in dollars and cents and for 
 the business into which you may go. 
 
 The guide-posts which are pointed out to you in this book 
 have been tried and tested, proved and found effective. The 
 wealth of material placed at the author's disposal by the pub- 
 lishers, has enabled him to pick and choose from the experiences 
 hterally of thousands of business houses. 
 
 All the resources of the A. W. Shaw Company, its editors, 
 its traveling and resident investigators, and its immense and 
 
PREFACE 
 
 well-digested masses of commercial data— accurate, broad, and 
 down to the minute— have been freely drawn upon, even to the 
 charts, photographs and diagrams which make it so easy to 
 understand business methods. 
 
 In addition to the publishers, the author is also indebted to 
 the following concerns, from whose experiences it has been his 
 privilege to draw: Western Union Telegraph Company; R. G. 
 Dun & Company; Ford Motor Company; Curtis Publishing 
 Company; Chicago Telephone Company; Yawman & Erbe; 
 Westinghouse Electric & Manufacturing Company; Chicago 
 City Directory Company; Chicago Clearing House Association. 
 
 The author wishes to express his thanks to Mr. Sherwin Cody 
 for the use of some material, as well as to the publishers of the 
 American Magazine for the privilege of reprinting some material 
 in the chapter on Personality in Business. 
 
 To Mr. W. H. Leffingwell the author is indebted for some 
 valuable expert suggestions on scientific office management and 
 for permission to use some material from Mr. Leffiingwell's 
 splendid report on that subject; to Samuel B. King, Esquire, 
 of the Chicago bar, who certified to the correctness of the legal 
 matter in the text; to Mr. L. L. Jones of the Cleveland High 
 School of Commerce, and to Mrs. Margaret Herbert of the 
 Springfield (Missouri) High School, for reading the manuscript 
 and for their suggestions for improving the text ; to Mr. WilHam 
 Bachrach, District Supervisor of the Commercial Schools of 
 Chicago, for reading the manuscript and for his helpful sugges- 
 tions; to Miss Esther Jane Helfrich of the editorial stafT of the 
 A. W. Shaw Company, whose help in putting the book on a high 
 standard of composition has been welcome; and to the managing 
 editor of the text-book department of the A. W. Shaw Company, 
 Mr. Edwdn M. Robinson, who assisted in the preparation of the 
 material and whose encouragement throughout has been a source 
 
 of help and inspiration. 
 
 Frank C. McClelland 
 
CONTENTS 
 
 CHAPTER I 
 
 The Development of the Office 1 
 
 What it takes to make an office. Facilitating the transaction of 
 business. The one-man oflBce. What a functional office is. Where 
 the thinking is done. How details are handled. Why letter 
 writing is important. Why records must be kept. How the 
 results are shown. The relation of the office to the rest of the 
 organization. Production. Distribution. Administration. The 
 management and the employee. A spur to ambition. 
 
 CHAPTER II 
 
 Handling Correspondence 9 
 
 How the incoming mail is handled. How the mail is opened. 
 Why letters must be inspected. What to do with enclosures. 
 How to classify the mail. Handling the cash mail. Addressing. 
 How to fold a business letter. Window envelops. Sealing and 
 stamping envelops. Mailing and mailing machines. Insurance, 
 registration, and special delivery. The work of the correspon- 
 dence department. 
 
 CHAPTER III 
 
 Stenographic Work and Standards 21 
 
 How letters are written. Analyzing the letters. Methods that 
 save time in answering letters. Taking dictation. How the dic- 
 tating machine works. Transcribing, Labor-saving devices. 
 Several ways of making copies. The stencil duphcator. Getting 
 letters ready to sign. How to verify enclosures and remittances. 
 Dictation machine standards. Some standards for stenographers 
 and typists. Taking dictation. How to say what you mean. 
 The choice of words. Watching your English when dictating. 
 What one stenographer discovered about her work. Errors to 
 avoid in transcribing correspondence, A test of stenographic 
 ability. What a typist should be able to do. How to increase 
 speed and accuracy. The technique of business correspondence. 
 Some suggestions that may help. 
 
CONTENTS 
 
 CHAPTER IV 
 
 Office Reference Books and How to Use Them ... 43 
 Various kinds of reference books. The three most useful books. 
 The city directory and how to use it. How to use the telephone 
 directory. Classified directories. What you can do with syn- 
 onyms. Some special directories. Sources of mailing lists. How 
 to use a code book. Credit rating books. Atlases and gazetteers. 
 The railroad pathfinder. The U. S. postal guide. Special bulle- 
 tins and guides Trade periodicals and business magazines. 
 
 CHAPTER V 
 
 Using the Telephone and Telegraph to Best Advantage 59 
 When to use the telephone and when the telegraph. The proper 
 way to telephone. How to call a number. How to answer the 
 telephone. Answering calls for your employer. Handling inter- 
 house calls. One way of getting confidential information. How 
 the telegraph facilitates business. What it costs to telegraph. 
 How to write a telegram. How one manager handles telegrams. 
 How to use cipher and code words. How to make your message 
 clear. Three ways to save money in telegraphing. How to deter- 
 mine which kind of message to use. Long distance messages. 
 Cable messages and addresses. Wireless addresses. How to 
 transfer money on short notice. Allowing for differences in time 
 when telegraphing. 
 
 CHAPTER VI 
 
 What the Files are for 79 
 
 The essentials of a good filing system. Equipment, Flat files, 
 vertical files and card indexes. How the files are indexed. How 
 to make filing easy. The alphabetical system. The geographical 
 system. Filing by number. Filing by date. Finding letters in 
 the follow up. How to file carbons. What topical filing is. 
 Alphabetical-numerical filing. The advantages and disadvan- 
 tages of different methods. The right way to get letters from 
 the files. How long should letters be kept in the files? The tech- 
 nique of filing. 
 
 CHAPTER VII 
 
 The Purchasing Department 99 
 
 The object of the purchasing department. Requisitions. How 
 the purchasing agent watches the market. Getting classified 
 information for the buyer. Some sources of information. How to 
 
CONTENTS 
 
 get estimates. Why are purchase orders necessary? How one 
 buyer follows up his orders. The stockroom. Guarding against 
 fire and theft. How to know how much stock you have on hand. 
 How to take an inventory of stock. What the perpetual inventory 
 is. Values and prices. Points of law. 
 
 CHAPTER VIII 
 The Sales Department 115 
 
 What the salesmen are supposed to do. Doing business by mail. 
 Advertising as a source of sales. What the sales manager wants 
 to know. Reports the salesmen make. The daily sales report. 
 Handling sales letters. The use of mailing lists. Recording the 
 results of advertising. How to check advertisements. Filing 
 advertising material. A word about contracts. Some legal points. 
 
 CHAPTER IX 
 How Orders are Handled . • 135 
 
 Writing the order. How orders are registered. Putting the order 
 through. Analyzing the order. Why orders must be analyzed. 
 How many copies must be made? Three ways of copying orders. 
 The routine of the order department. Following an order through 
 a factory office. 
 
 CHAPTER X 
 
 What You Ought to Know about Shipping 141 
 
 The duties of the shipping department. How orders are shipped. 
 Why proper packing is important. Handling freight shipments. 
 How to make express shipments. What it costs to ship goods. 
 Tracers and claims. Parcel post, express, and freight shipments. 
 Points of law. 
 
 CHAPTER XI 
 The Accounting Department 149 
 
 What the accounting department does. The difference between 
 bookkeeping and accounting. Why the ledger is important. 
 The essentials of double-entry bookkeeping. How to take a 
 trial balance. Just what "posting" is. Credit and collection 
 records. Statements. Making up the payroll. Cost account- 
 ing. How accounting machines are used. Some uses of the 
 typewriter in the accounting department. Statistical machines. 
 Billing machines. Looseleaf and card-index devices. Reports 
 for the executive. 
 
CONTENTS 
 
 CHAPTER XII 
 
 The Treasurer's Office 169 
 
 The functions of the treasurer's office. What are "funds"? The 
 meaning of finance. How capital is provided. Borrowing money 
 at the bank. How to make payments by check. What is meant 
 by "notes receivable"? How to watch collections. How the 
 surplus funds are invested. The yield on the investment. Elemen- 
 tary principles of finance. What you can do with checks. The 
 essential differences between partnerships and corporations. 
 Life, property, and accident insurance. Some questions the treas- 
 surer has to answer. 
 
 CHAPTER XIII 
 
 The Manager's Job 195 
 
 How do you work? One very important problem. Dealing with 
 human nature. The office manager as an engineer. Planning the 
 office for effective work. The" straight line "principle. Suiting the 
 desk to the work. The inside of the desk. Muffling office noises. 
 The greatest problem of all. Hiring, placing, and training em- 
 ployees. Standard practice instructions. Keeping the workers 
 contented. Ways to stimulate ambition. Making a game out 
 of work. The office from the manager's desk. Office appliances 
 and labor-saving devices. Some problems in office efficiency 
 that the manager has to solve. 
 
 CHAPTER XIV 
 
 Opportunities for Employment 213 
 
 Taking an inventory of yourself. Picking out your weak points. 
 What employers are looking for. A few of the possibilities. Why 
 it is worth while to plan for your life work. How to select your 
 employer. Tests which measure your ability. Where personality 
 counts most. Suggestions that may help you in getting a bond 
 and in getting a job. 
 
 CHAPTER XV 
 
 Personality in Business 229 
 
 How to play the game. What others have done. How a railroad 
 president started. From a dollar a day to a million a year. A big 
 man's secret of success. What happened to a clock gazer. What 
 initiative means. Business maxims that have helped others. 
 Your chances for getting ahead. 
 
 zvi 
 
CONTENTS 
 
 CHAPTER XVI 
 
 Standards and Tests for Measuring Your Personal 
 
 Efficiency 239 
 
 One kind of standard. What standard methods are. How to set 
 a standard. Standard practice instructions. Standards of accom- 
 plishment. How standards can increase your efficiency. What 
 you can do with words. When errors may be costly. How to 
 make figures. A test in billing. A simple mathematical test. An 
 easy way to figure interest. A test in mental arithmetic. A test 
 of mental alertness. How to test your ability. 
 
 Preface ^ 
 
 Bibliography 263 
 
 Index 277 
 
 STANDARDS, QUESTIONS, EXERCISES, AND TESTS 
 
 Accounting 161 to 168 
 
 Analyzing 257 
 
 Banking 175 to 178, 184 to 186, 189 to 194 
 
 Billing 167,247,248 
 
 Cablegrams 73, 76 to 78 
 
 Checks and their uses 176 to 178, 185, 186, 190 
 
 Copying 39, 40 
 
 Correspondence and dictation 18 to 20, 33 to 42 
 
 Credits and collections 163, 165, 168 
 
 Directories 55 to 57 
 
 Employment 207, 208, 211, 223 to 228, 254 
 
 Filing 95 to 98 
 
 Financial 175 to 194 
 
 General review 258 to 260 
 
 Getting abond 224 to 226, 228 
 
 Historical *>^ 
 
 Insurance 182, 183, 188, 192, 193 
 
 Investments 180,181,187,191,194 
 
 Interest . 
 
 .250 
 
 Knowledge 54 to 58, 258 to 260 
 
 Legal points 113, 114, 128 to 134, 148 
 
 Mailing 18 to 20 
 
 Memory 
 
 Mental alertness 257, 258 
 
 Mental arithmetic 251, 252 
 
 Office appliances 163, 165, 209, 210 
 
 Office efficiency 206 to 212 
 
 xvii 
 
CONTENTS 
 
 Order department 139, 140 
 
 Partnerships and corporations 179 to 181, 187, 191 to 194 
 
 Penmanship 246 
 
 Personal efficiency 214, 220 to 223, 242 to 260 
 
 Personality 236 to 238 
 
 Promissory notes 175, 184, 189, 194 
 
 Purchasing 112 to 114 
 
 Rapid calculation 248 to 252 
 
 Reference books 54 to 58 
 
 Selling 128 to 134 
 
 Shipping 19, 143 to 148 
 
 Stenographic 33 to 42 
 
 Stocks and bonds 180, 181, 187, 191, 194 
 
 Telephone, telegraph, and cable 72 to 78 
 
 Time differences 77, 78 
 
 Treasurer's office 175 to 194 
 
 Typing 33 to 42, 244, 245 
 
 Vocabulary 243 
 
OFFICE TRAINING AND STANDARDS 
 
CHAPTER I 
 
 THE DEVELOPMENT OF THE OFFICE 
 
 WHEN all the inhabitants of the earth were uncivilized 
 and gained their livelihood by means of hunting, stealing, 
 or fighting, there was no necessity for offices. Later 
 as the savage became semicivilized, herded his flocks, and 
 produced more than he could eat, he found that he had some- 
 thing to trade or sell. When he sought to increase his trade 
 and to keep a record of his gains or losses, the first "office" was 
 probably estabfished. 
 
 This was so long ago that the records have probably all been 
 destroyed, although they may have been carefully scratched on 
 the clay or rock walls of some convenient cave accounting room. 
 With improved methods of stock raising, agriculture, manu- 
 facture, and transportation, the importance of the office has 
 increased and its usefulness has become more and more widely 
 recognized. 
 
 Today the methods employed in business offices are as far 
 superior to the former "counting rooms" as the recent inven- 
 tions of labor-saving office machinery are to the first crude 
 substitutes for human labor. Under the stress of competition, 
 a large part of office work has been effectively standardized, 
 and the routine of the office will depend upon the methods 
 employed by the management. 
 
 What it takes to make an office. If a farmer trades a 
 caK for some potato seed, grows 200 bushels of potatoes, hauls 
 them to market, finds a buyer, and records the transactions in 
 the back of the almanac, he has performed practically all the 
 functions of a business organization. His office may be the 
 kitchen; his appliances the kitchen table, a chair, a pencil, and 
 the almanac; while he himself is the producer, the salesman, 
 the bookkeeper, and the manager all in one. The office proper 
 
 1 
 
2 0FFIC3 TRAINING AND STANDARDS 
 
 may therefore be called the home of the business, where the 
 required clerical details are cared for and worked out. 
 
 Where the office space is properly laid out, Ughted, heated, 
 and ventilated, and the most effective and practical mechanical 
 apphances are furnished to the best obtainable human material, 
 the highest grade of results would naturally be expected to 
 follow. It is the human element in any office that often plays 
 a large part in the success or failure of the business. 
 
 Facilitating the transaction of business. Without an 
 office it would be impossible to transact business on an extensive 
 scale. Even the small business requires a home and an organi- 
 zation. The office for a time may be located in the garret, 
 cellar, or kitchen; but as the business grows, the best room in the 
 house may be given over to the "machinery" through which the 
 poUcies of business are planned and carried out. 
 
 In facilitating the transaction of business, systems of records 
 are required, letters must be written and filed, business papers 
 must be made out and recorded, legal papers are often needed, 
 statistics must be furnished, and money is continually being 
 received and paid out. 
 
 The one-man office. What is perhaps the commonest type 
 of office organization today is generally known as the "miUtarj'-" 
 type. It is a development of the one-man office, for, as the 
 office grows, the one man at the head still retains unlimited 
 control over all the departments. This plan is no longer con- 
 sidered practical in many large businesses because of the diffi- 
 culty in finding a manager with the time and abiUty to direct 
 the details of an entire organization as satisfactorily as trained 
 department heads can. We shall see later how the work of 
 these department heads may be coordinated. 
 
 What a functional office is. The originator of the func- 
 tional plan of organization is Frederick W. Taylor, who developed 
 the Taylor system of scientific management. Under Mr. 
 Taylor's plan each worker has as few operations to perform as 
 possible, and he is drilled in each operation until he becomes 
 proficient. There is usually one person in each department 
 who supervises this training. 
 
President 
 
 _/ G 
 
 and 
 
 directors 
 
 
 FIGURE 1 : This organization chart shows an office of the functional type. Follow 
 the lines and you will see under whose authority any part of the work comes. In 
 this concern the general files are under the head of the correspondence department, 
 who is responsible to the office manager; he in turn reports to the general manager. 
 
 3 
 
d OFFICE TRAINING AND STANDARDS 
 
 Another original thinker has developed functional organi- 
 zation into what is known as the " line-and-stafT " plan. Under 
 this plan the staff is composed of experts who instruct the prin- 
 cipal line officers as to the best methods of handUng their work, 
 and they, in turn, train the men under them. Mr. Taylor's 
 studies were confined largely to factories. W. H. Leffingwell 
 has effectively applied the Taylor methods of scientific manage- 
 ment to office work. 
 
 Where the thinking is done. The office of any successful 
 business must be the thinking and directing force for the entire 
 concern. As the thinking department, the office must provide 
 plans, standards, and instructions for those in the operating 
 departments, and keep records of the results. 
 
 Twenty men in the thinking oflBce and 75 in the operating 
 departments will often turn out more work than 150 men in the 
 operating department working without scientific direction. 
 Organized work under the direction of organized thinking 
 usually means a type of scientific management that will pro- 
 duce results well worth while. 
 
 How details are handled. The chief executive does not 
 usually spend his time in looking after petty details which can 
 just as well be taken care of by his staff and fine ofl^cers. One 
 of his most important duties is to organize the office to provide 
 for the special instruction of each employee according to approved 
 standards. The employees should be surrounded by the best 
 mental, moral, and physical conditions. A just plan of com- 
 pensation and promotions should be instituted. The play 
 instinct should be appealed to in developing all standards so 
 that the employee will be as interested in the business as he is 
 in his games and sports. 
 
 It is obvious that a multitude of details must be handled in 
 the most scientific method possible; otherwise the office force 
 will be swamped in a confusion of poorly understood tasks. 
 Aside from the clerical work connected with the buying, selHng 
 and accounting departments there is the dictating, typing, 
 mailing, and filing of correspondence; the carrying of messages; 
 the handling of many kinds of quotations, invoices, clippings, 
 tariffs, legal, and business papers. 
 
THE DEVELOPMENT OF THE OFFICE 5 
 
 The importance of letter writing. Letters and business 
 papers must, of course, be used in business unless the transac- 
 tions are confined to a limited scope and area, but when trans- 
 actions take place at long distances, the only practical method 
 is by correspondence. Even when the long distance telephone 
 and traveling salesmen are employed, it is usually necessary to 
 put the contracts in writing and to answer many questions by 
 mail, requiring one or more stenographers. 
 
 Orders are confirmed or claims adjusted by letters, which 
 are often the only records of the dealings. Announcements are 
 made, prices quoted, estimates furnished, promises given, cir- 
 culars distributed, prospects made customers, purchases com- 
 pleted, and collections made possible through correspondence. 
 
 Why records must be kept. Frequently the importance 
 of keeping business records is not appreciated until some special 
 information which cannot be found is badly needed, such as the 
 price paid for an order of goods, figures previously quoted, 
 former selling prices, and so on. Reference to letters or other 
 business papers is often necessary, letters of inquiry must be 
 followed up, prospects supplied with information, comparisons 
 made, and conclusions drawn. 
 
 The records for these purposes not only must be kept in 
 convenient and legible form, but they must also be filed where 
 they may be found quickly when needed. Many employees 
 are required for this work in large offices and fixed standards 
 of accomplishment are usually necessary in order to get the 
 desired results without loss of time. 
 
 Thus we see that the office is the faciUtating force which 
 makes possible the successful running of the entire organiza- 
 tion, consisting of producing, administration, and marketing. 
 
 Showing the results. The accounting department is prob- 
 ably the most important of the administrative departments. 
 It handles the important functions of recording, tabulating, 
 and reporting the results of all transactions. These reports 
 show the past successes or failures, and help to determine the 
 future activities of the company. 
 
 For example, the cost figures show whether prices quoted 
 ajtd obtained are high, low, or normal; whether particular 
 
6 OFFICE TRAINING AND STANDARDS 
 
 departments are falling below or rising above the average in 
 effectiveness; and whether expenses are in proportion to the 
 income in comparison with other periods. 
 
 Producing the goods. The production division of the 
 business produces the article to be sold. It may be purchased 
 from the wholesaler, the factory, or the farmer. In some cases 
 the raw material is purchased, manufactured, and sold to the 
 wholesale or the retail trade. Some concerns have no manu- 
 facturing departments, and the purchasing department corre- 
 sponds to the production end of the business. Banks are con- 
 tinually opening up new Unes of credit and enlarging their 
 resources for the purpose of facilitating business. Insurance 
 companies through their actuarial departments are providing 
 the material by means of which new business can be prof- 
 itably secured by the salesmen. 
 
 Selling the product. The finished product, no matter from 
 what source it is obtained, is turned over to the sales department 
 for marketing. It now becomes the duty of the sales manager 
 and his force to dispose of the product at a profit in order to 
 maintain the business. 
 
 More or less stenographic, typewriting, and clerical work is 
 required in the related correspondence, advertising, and account- 
 ing departments. In all business, however, the two prime 
 factors of buying and selling constitute the basis of the business. 
 
 The chief executive's function is to coordinate the work of 
 all the departments and to keep the whole organization running 
 smoothly. It is his duty also to look after the welfare of the 
 employees under his charge. 
 
 When the proper relation between the management and 
 the employee is more fully understood, there will be more 
 enthusiasm all along the line. It is possible to make business 
 a fascinating game in which united team-work makes for suc- 
 cess and where winning the game brings interest and efficiency. 
 When employees realize that the prosperity of the firm depends 
 upon their efforts and that advancement and continued employ- 
 ment must depend upon the united effort of the employer and 
 employees, they will take an added interest in their work and 
 the results obtained by it. 
 
THE DEVELOPMENT OF THE OFFICE 7 
 
 HISTORICAL STANDARDS 
 
 The development of the office 
 
 1. The first "office" was established when men began to try to increase 
 their trade and to record their gains and losses. 
 
 2. The first "office" records were probably scratched on cave walls. 
 
 3. With the increased civilization of man and the growth of trade, the 
 office has become more and more important as a means of facilitating business 
 transactions. 
 
 4. Not all offices are located in city skyscrapers. 
 
 5. A farmer's kitchen may be his office. 
 
 6. The office is the home of the business. 
 
 7. The most effectively equipped office may be expected to produce the 
 best results. 
 
 8. Nevertheless, the human element in the office is often responsible for 
 the success or failure of a business. 
 
 9. The one-man office is an office where the office force consists of one 
 individual. A farmer's office is a one-man office. So is a dentist's or a doctor's 
 in most instances. 
 
 10. In the military type of office one man has unlimited control over all 
 departments. 
 
 11. The military type is considered impractical by some business men 
 because it is hard to find a man fitted to direct all the departments with equal 
 effectiveness. "^' 
 
 12. The functional plan of organization was developed by F. W. Taylor. 
 
 13. Under the functional plan of organization, each worker has only one 
 or at most a few operations to perform. 
 
 14. In a functional organization one person in each department super- 
 vises the training of the workers. 
 
 15. The " line-and-staff " plan of organization is a development of the 
 functional tj^pe. 
 
 16. The staff is composed of experts who instruct the line officers (depart- 
 ment heads), who train the workersunTler them. 
 
 17. Mr. Taylor's work was applied largely to machine shops and factories. 
 
 18. W. H. Leffingwell was the first to adapt Mr. Taylor's methods to 
 office work. 
 
 19. The office of the business is like the mainspring of a watch; it contains 
 the directing force of the business. 
 
 20. The office provides plans, standards, and instructions for the operating 
 departments. 
 
 21. Scientific direction often increases output 100% or more. 
 
 22. Executives should not waste their time on small details that someone 
 else can do equally well. 
 
 23. The executive should try to make business a game for his employees. 
 
 24. There is more or less clerical work required in nearly every depart- 
 ment of a business. Correspondence must be dictated, tj^ped, mailed, and 
 
8 OFFICE TRAINING AND STANDARDS 
 
 filed. Messages must be carried; quotations, invoices, clippings, tariffs, and 
 legal papers handled. All these operations are performed in the office. 
 
 25. The accounting department records, tabulates, and reports the re- 
 sults of all transactions. 
 
 26. The production division produces the article to be sold. 
 
 27. The sales department sells the finished product. 
 
 28. Buying and selling are the fundamental factors of any business. 
 
 29. The finished product must be sold at a profit to make it possible for 
 the business to continue. 
 
 30. If employees realize that they can to a large extent "make or break" 
 a business, they will take an added interest in their work. 
 
 STANDARD QUESTIONS 
 
 The development of the office 
 
 1. Have there always been offices? 
 
 2. When did trading begin? 
 
 3. When was the first office established? 
 
 4. Were the first records kept in books? Why or why not? 
 
 5. How were the first records kept? 
 
 6. Is the office becoming more or less important? Why? 
 
 7. Are all offices located in city office buildings? 
 
 8. Can you think of any offices that are not? Where are they located? 
 
 9. Would you expect to produce letter results in an effectively equipped 
 office or in one poorly equipped? ^ 
 
 10. Is there any element in the office as important as, or more important 
 than, the equipment? If so, what? 
 
 11. Wha^ is a one-man office? 
 
 12. Do you know of any one-man office? If so, what business is the owner 
 engaged in? 
 
 13. What are the characteristics of the military type of organization? 
 
 14. Is there any objection to the military type of organization? If bo, 
 what? 
 
 15. Who originated the functional plan of organization? 
 
 16. What are the characteristics of a functional organization? 
 
 17. What is the "line-and-staff" plan of organization? 
 
 18. In what field did Frederick W. Taylor do most of his work? 
 
 19. Who adapted Mr. Taylor's plan to office management? 
 
 20. How is the office related to the rest of the business? 
 
 21. Name several kinds of work that are carried on in the office. 
 
 22. Into what three branches is business divided? 
 
 23. What is the chief function (a) of the accounting department? (b) of 
 the production division? (c) of the sales department? 
 
 24. What are the two fundamental factors of any business? 
 
 25. To what extent does the success of a business depend on the employees? 
 
CHAPTER II 
 
 HANDLING CORRESPONDENCE 
 
 THE letters received by most business concerns go through 
 many processes before they finally reach the files. A 
 letter may be handled by one person, as in a small business, 
 or by several persons, as in a large mail-order house. These 
 processes naturally divide into four parts, as follows: 
 
 1. Receiving 
 
 2. Answering 
 
 3. Mailing our answer 
 
 4. Filing ♦ 
 
 In this chapter we'll see what happens to the letters before 
 they are answered, and what becomes of them after they are 
 answered. The next chapter will tell us how they are answered, 
 and in Chapter VI we shall learn effective methods of filing. 
 
 How the incoming mail is handled. As soon as received, 
 the mail is usually sent direct to the mail-opening clerk to be 
 opened and sorted for distribution to the proper departments. 
 In the mail-opening department of one firm the unopened letters 
 are first sorted to separate those letters that are specifically 
 addressed to some person from those addressed to the house. 
 A boy then immediately delivers these letters to the people 
 addressed, thus eliminating any delay. 
 
 Meanwhile the mail addressed to the house is going through 
 a number of processes, in this order: 
 
 (a) opening 
 
 (b) sorting and classifying 
 
 (c) delivering to the proper departments 
 
 How the mail is opened. In a business where the volume 
 of mail is small it is usually opened by hand. In this case care 
 
10 OFFICE TRAINING AND STANDARDS 
 
 should be taken not to cut through checks or other enclosures. 
 In medium sized offices, where from 150 to 200 letters are re- 
 ceived, a small hand-operated mail-opening machine is often 
 used as a time saver. In large offices, where a large volume is 
 regularly handled, an electric mail-opening machine is found 
 useful. Whatever method of opening mail is used, the object 
 is to open the envelop as quickly and carefully as possible, and 
 to get the mail sorted with the least possible delay. 
 
 Inspecting the letters. Immediately after opening the 
 mail, see that each letter is properly signed, that it contains the 
 complete address, that no enclosures are missing, and that there 
 has been no unusual delay from the time the letter was written 
 until the date of receipt. Some firms make it a rule not to 
 destroy the envelop but to pin it to the letter or papers, as it 
 may contain the only complete address, or it may be needed to 
 show when the letter was mailed. 
 
 What happens to enclosures. The enclosure is then fast- 
 ened to the letter with a pin or clip. If any enclosure is missing, 
 it is noted on the letter. 
 
 Since the government does not stamp the date of the receipt 
 of letters at the post-office, it is desirable sometimes to note 
 the time of receipt at the office. In the case of important delayed 
 orders, for instance, it is occasionally necessary to prove that 
 the letter was not mailed when written or that it was delayed 
 in transit. Clock-dating machines are used for the purpose of 
 recording the hour as well as the date of receipt. Some firms 
 are satisfied to stamp merely the d'ate the letters arrive. Each 
 concern decides this practice for itself, of course. 
 
 It is helpful to watch each movement in order to economize 
 time in handling mail. If the clerk forms the habit of opening, 
 checking, and dating each letter as soon as opened, she will be 
 repeating many unnecessary motions. While she is using the 
 date stamp, all the letters should be stamped at once, each 
 operation being carried out without any lost motion. 
 
 The special mail-opening table shown on page 15 (Figure 3) 
 was devised after several careful tests were made to ascertain 
 the most effective way of opening mail. The sunken baskets 
 and pincushions eliminate a great deal of useless motion. 
 
1 
 
 Opening 
 
 
 1- 
 
 Incoming mail " 
 
 Classifying 
 Distributing 
 Making a record of referred correspondence 
 
 Making assignment slips 
 Keeping weekly work record 
 
 
 Stenographic 
 work 
 
 Furnishing stenographic supplies 
 
 
 Inspecting work 
 
 
 
 Following up work 
 
 
 
 Systems 
 
 Alphabetical 
 Geographical 
 Numerical 
 Topical 
 
 
 Filing 
 
 Correspondence requisitions 
 
 The work of the 
 
 correspondence < 
 
 department 
 
 Follow-up file 
 Document filing 
 Transferring correspondence 
 
 
 
 "Messenger service 
 
 
 Interiiouse ^ 
 communications 
 
 Basket system 
 Interhouse notes 
 
 'collecting 
 Folding and enclosing 
 
 
 Outgoing mail < 
 
 Stamping 
 
 Classifying 
 
 Routing 
 
 
 Telephone and 
 
 Keeping records of outgoing calls 
 
 
 telegraph 
 service 
 
 Keeping records of incoming calls 
 
 
 Information •< 
 
 Handling callers 
 
 Organizing the messenger service 
 
 FIGURE 2: You will often find that by arranging data in this fashion, you can 
 
 make it easier not only to analyze the data, but also to remember the important 
 
 details. This outline of the work of the correspondence department shows at a 
 
 glance the exact relation of any part of the work to any other part. 
 
 11 
 
12 OFFICE TRAINING AND STANDARDS 
 
 How to classify the mail. After the mail is opened and 
 checked to see that no enclosures are missing, there are two pro- 
 cedures. Some firms immediately proceed to classify the mail 
 according to departments, while others divide the opened mail 
 into two parts — "cash mail" and ''non-cash mail." 
 
 Cash mail, as the name indicates, is letters containing remit- 
 tances. The clerk places these in one pile, and in another pile 
 she places all letters which do not contain remittances. 
 
 The advantage of separating the two kinds of mail is that 
 the non-cash mail can be classified and delivered at once without 
 waiting for the cash mail to be sorted and Hsted. One clerk 
 takes the letters which do not contain any remittances and at 
 once starts to classify them according to departments. Each 
 letter is placed in the group where it belongs for distribution. 
 On page 15 is shown how three concerns sort their mail. 
 
 The clerk who sorts the mail should be able to tell at a 
 glance to which department each letter should be sent. A letter 
 containing an order will go, of course, to the order department, 
 a complaint letter to the complaint department, a letter asking 
 for an extension of time on a bill to the collection department, 
 a request for information about a former employee to the man- 
 ager, a letter quoting prices of goods used by the concern to 
 the purchasing department, and so on. When the letter must 
 pass through several departments, it is so marked that the 
 proper data may be entered or attached from the time it is 
 received until it is answered. When all the mail is classified, 
 the messenger boy deUvers it to the various departments. 
 
 Handling the cash mail. Another clerk takes the cash 
 mail and enters the various items on a hst. Some firms group 
 the items on the hst of cash mail into classes, so that when the 
 totals are footed the cash receipts for each class are shown at 
 a glance; this simplifies the bookkeeping. Other firms simply 
 sort the remittances into city checks, out-of-town checks, money- 
 orders, and currency. After the remittances are Hsted and 
 sorted, they are sent to the cashier, who indorses and deposits 
 them in the bank the same day they are received. 
 
 Besides the operations connected with receiving the incoming 
 mail, this department also sends out the outgoing mail. 
 
HANDLING CORRESPONDENCE 13 
 
 Addressing letters correctly. One of the most important 
 duties connected with sending out mail is to see that it is addressed 
 correctly. Over 10,000 misdirected letters are sent to the dead- 
 letter office daily. Last year this office handled over 10,000,000 
 such letters and packages, containing more than $2,250,000 in 
 checks, drafts, money orders, and cash. Some of this mail was 
 finally delivered to the owners because the inside address was 
 plainer than the one on the outside. Counting the cost of 
 postage, advertising letters, and the original cost of getting 
 out the mail, you can estimate in this one item a little of the 
 cost of carelessness. 
 
 Some of these letters and packages are mailed without 
 sufficient postage or, indeed, without any postage at all. Others 
 have no return address on the outside. With many, a part of 
 the address is missing or incorrectly given. It is bad enough 
 to omit the name of the state, but worse to write down the 
 wrong state. There are 27 Clevelands and 28 Washingtons in 
 the United States; it is impossible for the mail clerk always to 
 know where to send your letter if the state is not named. 
 
 Frequently the use of abbreviations causes trouble. Nev. 
 may be written to look like Neb., N. J. like N. Y., Col. like 
 Cal, Ind. like Md., and Vt. like Va. Some of these difficulties 
 may be avoided by writing the full name of the state or, if you 
 must abbreviate, at least abbreviate correctly. 
 
 The sender's return address should be the same on the 
 envelop as on the letter heading. The letter address should 
 agree with the one on the envelop, whether the ''window en- 
 velop" is used or not. Wliere a part of the address is missing 
 it can usually be corrected by referring to the envelop, the letter 
 file, directories, postal guides, or gazetteers. 
 
 Many large offices now use the addressing machine for all 
 correspondents requiring 10 or more letters a year. For a 
 less number it is found to be more economical to use the type- 
 writer than to make the stencils or plates used in the machines. 
 Addressing machines may be used for addressing envelops, 
 wrappers, bills, folders, statements, notices, receipts, and labels. 
 
 Some machines automatically handle the name plates and 
 return them to the filing drawer in the proper order, at the 
 same time skipping any names not desired. One machine will 
 
14 OFFICE TRAINING AND STANDARDS 
 
 print many thousands in a day, making it possible for large 
 firms like the Curtis Pubhshing Company to get out millions 
 of papers in a short time. 
 
 Kow to fold a business letter. Letters are folded by 
 hand in small offices. In folding an ordinary business letter 
 fold upward from the bottom, bringing the lower edge to within 
 about half an inch from the top. Make two folds from left to 
 right, allowing the right-hand edge to project about half an 
 inch. This leaves half an inch square at the upper right-hand 
 corner, where you grasp the letter with your thumb, and it will 
 easily open with the right side up. Insert the folded letter in 
 the envelop without turning the letter over. For large envelops 
 the paper should be folded twice from the bottom up, leaving 
 a small margin at the top. Of course when ''window envelops" 
 are used it is necessary to fold the letter so that the address will 
 fit the window. The diagram on page 16 shows the standard 
 instructions for folding letters to fit window envelops that one 
 large concern uses. 
 
 Firms sending out from 500 to 1,000 letters a day often find 
 it an economy to use a folding machine. It is possible to fold 
 40 000 pieces a day at a cost of ten cents a thousand, while the 
 the cost by hand folding would run from 30 to 40 cents a thou- 
 sand folds. In using this machine it is necessary to keep the 
 envelops stacked in the- same order as the folded letter. The 
 same care, however, is needed in hand folding, as many letters 
 may be placed in the wrong envelops by inexperienced or care- 
 less help, causing possible embarrassments. 
 
 Sealing and stamping envelops. Where the amount of 
 outgoing mail is not large the sealing and stamping are usually 
 done by hand. The envelops are arranged so as to expose only 
 the gummed flaps. By passing a moist sponge over the surface 
 the letter can then be quickly sealed by hand. Machines are 
 now in use which will seal about 5,000 letters an hour. 
 
 It requires care in either method not to use too much or 
 too little moisture on the gummed surface or the letters will 
 not be securely sealed. The same thing is true in regard to the 
 stamping of mail. Some machines which can be run by motor 
 will seal and affix the stamp at the same time. 
 
FIGURE 3: This girl can open, pin, FIGURE 4: This girl is sorting mis- 
 and sort 310 letters an hour by using cellaneous letters on this pecuHar looking 
 this special table with sunken trays. rack for distribution to departments. 
 
 FIGURE 5: Just imagine how much mail this concern receives! Here are seven 
 
 men and boys sorting mail for the various departments. In order to work fast 
 
 each worker must, of course, know just where each letter goes. 
 
 15 
 

 uiw-^' 
 
 §mr^ 
 
 FIGURE 6: This is the mailing room of one office where the mail is comparatively 
 heavy. As you see, the mailing machinery shown here makes it possible to get the 
 mail out on time. Each piece of mail is weighed in order not to waste postage. 
 
 Instructions for Folding Letters to Fit Window Envelops 
 
 Figure 2 
 
 Fold bottom over to top of saluta- 
 tion as shown in Figure 1 ; this marks 
 line where second fold is to be made. 
 
 Pick up letter as described by Fig- 
 ure 2. holding firmly with left hand 
 while making fold with right, moving 
 hand from left to right as mdicatcd 
 by arrow in Figure 3. 
 
 Hold letter in same position with 
 
 left hand while- grasping under edge 
 with right vsee Figure 4) Then turn 
 address side down preparatory to 
 placing in e»velop. 
 
 EnvclnpsJBhould be placed face 
 dowinvMrd^On^sKlf of pile of letters, 
 with fLTpyjjjt to letters as shown in 
 illustratio^^B Insert enclosures as in 
 Figur 
 
 n won 
 
 FIGURE 7: How easy it is to learn from pictures. These simple sketches are 
 standard practice instructions for folding letters to fit window envelops. The 
 office workers who use them learn quickly how to do the work in the standard way. 
 
HANDLING CORRESPONDENCE 17 
 
 The method of stamping letters by hand has been recently 
 standardized and the output raised from 14 letters a minute to 
 84 a minute. The stamps are usually purchased in sheets of 
 100. The ordinary clerk requires about one minute to tear the 
 sheet of 100 stamps into 10 strips. Under the standard method 
 10 sheets, or 1,000 stamps, can be prepared in the same time. 
 
 As many as 10 sheets of stamps can be handled at one time 
 by folding and creasing each perforated line between the stamps. 
 This requires 9 folds in each direction, or 18 in all. First the 
 wide strip of white unperforated paper should be folded and 
 torn off. The edges may more easily be kept even by folding 
 the middle line first and following in order from there to the 
 edge. Make a roll about one inch in diameter of the 10 sheets, 
 the mucilage side out and the roll the length of the long side of 
 the sheet. Hold it in place with a small rubber band to keep 
 it from unrolling. The first row of stamps or 10 strips may now 
 be broken off just as you would break a piece from a stick. 
 The entire 10 rows of ten strips each can be broken off and un- 
 rolled in one minute. 
 
 How the strips of stamps are used. Place the envelops 
 one above the other in straight piles in front of you. Put the 
 stamps mucilaged side up and a moist sponge at your right side. 
 Be sure the sponge is not too wet or the mucilage will be washed 
 off. Take the end of one strip in the left hand and moisten the 
 strip with one stroke of the sponge in the right hand. Affix 
 the stamp with the left hand, and press it in place with the right. 
 At the same time twist the stamp loose from the strip with the 
 left hand and shove the envelop ahead with the right hand, 
 leaving the next envelop clear for stamping. 
 
 This method has increased the efficiency of stamping letters 
 over 300%, raised the salaries of the employees, and has done 
 away with the necessity of purchasing expensive stamping 
 machinery except perhaps in the largest offices. 
 
 Care must be taken that the correct amount of postage is 
 used on all classes of mail. This is particularly true in regard 
 to foreign mail. It is estimated that an immense amount of 
 foreign trade is lost by this little bit of carelessness. All foreign 
 countries collect twice the amount of postage due and it is 
 
18 OFFICE TRAINING AND STANDARDS 
 
 claimed that many foreign merchants will not redeem such 
 mail. They at least cannot] have a very friendly feeling toward 
 a firm which sends in a letter with 10 or 20 cents due because 
 the mailing clerk thoughtlessly started the letter with the usual 
 two-cent stamp. Every office should have printed postal 
 regulations regarding the rates of postage for all classes of mail. 
 
 Mailing the letters. It is possible to make mistakes even 
 after the mail has been perfectly prepared for posting. If 
 important mail is posted a few minutes after the last fast mail 
 train for the day has departed, there may be a delay of 12 hours 
 in its delivery. All valuable mail should be insured or registered, 
 since in the event of loss or non-delivery your firm may be held 
 responsible, even if the goods were paid for in advance, because 
 the order called for safe delivery. 
 
 Sometimes a few hours gained in the receipt of a letter will 
 be of great importance, and you can insure immediate delivery 
 from any United States postoffice by placing on the envelop a 
 special delivery stamp. If you cannot obtain such a stamp, 
 you can put 10 cents additional postage on the letter and write 
 on the envelop "special delivery." 
 
 Packages of value may also be sent c. o. d. if you are not 
 sure of the credit of the customer. For a small fee the post- 
 office department will collect the amount and return it to you 
 in the form of a postoffice money order. If it is important for 
 you to know whether your letter was received at a certain time, 
 you can register it and demand a return receipt. To get this 
 receipt you must write or stamp across the face of the envelop 
 "Return receipt requested." 
 
 STANDARD QUESTIONS 
 
 Opening, sorting, and distributing incoming mail 
 
 1. How is mail usually opened in a small office? 
 
 2. How may time be saved where 150 to 200 letters a day are received? 
 
 3. What plan is followed when a large amount is received? 
 
 4. What care must always be taken in opening letters? 
 
 5. After the letters are removed from the envelop, what do you do first? 
 
 6. How do you check up enclosures? 
 
 7. What would you do in case the enclosure was missing? 
 
 8. What do you do with remittances enclosed? 
 
HANDLING CORRESPONDENCE 19 
 
 9. Who deposits the checks in the bank? 
 
 10. Why must you be familiar with all forms of remittances? 
 
 11. How do you sort the letters? 
 
 12. What notations should be made on the letters? 
 
 13. When should the envelop not be destroyed? 
 
 14. When should the date of receipt be stamped? 
 
 15. Why is it sometimes important to stamp the clock time of receipt as 
 well as the date? 
 
 16. To what department would you send an order for goods? 
 
 17. To what department would you send a letter — 
 
 a. complaining of the receipt of damaged goods? 
 
 b. giving references as to financial standing? 
 
 c. asking for an extension of time for payment of a bill? 
 
 d. asking for a report on a former employee? 
 
 e. giving quotations for the sale of goods? 
 
 f . asking for quotations on the net price of goods? 
 
 g. applying for a position with the company? 
 
 h. applying for the purchase of stock in the company? 
 
 i. complaining of the non-receipt of goods? 
 
 j. giving instructions regarding future shipments? 
 
 k. containing remittance for the payment of a sight draft? 
 
 18. What is meant by "under separate cover?" 
 
 19. How would you identify letters where plain paper and envelops are 
 used and the signature or address is lacking? 
 
 20. Why is it necessary for employees to standardize all their operations 
 in opening, sorting, and distributing mail? 
 
 MAILING STANDARDS 
 
 Enclosures and remittances 
 
 1. Never enclose stamps loosely. Wrap them in waxed paper. 
 
 2. It is unsafe to remit small coins, even in a "coin card." 
 
 3. You can send currency by registered mail where there is no postal 
 money order office. 
 
 4. The postal money order is best for small towns without bank or 
 express offices. 
 
 5. Express money orders are negotiable and good for small amounts. 
 
 6. A postal money order is payable only at the office on which it is 
 drawn. 
 
 7. Express money orders are cashed at banks or any express office of 
 the company. 
 
 8. Postal money orders can be indorsed only once. 
 
 9. Express money orders may be indorsed several times. 
 
 10. Postal money orders cost from 3 cents for S2.50 to 30 cents for $100. 
 
 11. Express money orders cost the same as postal money orders. 
 
20 OFFICE TRAINING AND STANDARDS 
 
 12. The United States Government is responsible for one, the express 
 cmpany for the other. 
 
 13. The government is responsible for an amount not to exceed $50 on 
 registered letters. 
 
 14. It will pay losses not to exceed $100 on insured packages. 
 
 15. It costs 10 cents to send $100 by bank draft. 
 
 16. It costs 30 cents to send $100 by express or postal money order. 
 
 17. It costs 85 cents to send $100 by telegraph transfer, plus the regular 
 rate for a 15-word message. 
 
 18. It costs 10 cents to send $100 by registered letter. 
 
 19. It costs 25 cents to send $100 by insured parcel post. 
 
 20. The cheapest way to remit $2.50 is by money order. 
 
 21. The cheapest way to remit $25 is by bank draft or by personal check 
 if exchange is not required. 
 
 22. The cheapest way is not always the best way. 
 
 23. The best way to remit $50 in currency is by registered letter. 
 
 24. The best way to remit $5,000 in currency is by express. 
 
 25. It would not be wise to send $60 by registered letter. 
 
 26. It would not be wise to send $60 by money order. 
 
 27. It would not be wise to send $6,000 by express. 
 
 28. The largest express money order issued is $50. 
 
 29. The largest postal money order issued is $100. 
 
 30. If money is lost or destroyed it cannot be returned even if insured. 
 
 STANDARD QUESTIONS 
 
 Handling outgoing mail 
 
 1. How is mail addressed by machinery? 
 
 2. Describe the best method of folding a business letter by hand. 
 
 3. How are letters folded by machinery? 
 
 4. Why are so many letters sent each year to the dead-letter office? 
 
 5. Why should special care be taken to stamp mail properly? 
 
 6. How would you instruct an office boy with regard to sealing letters? 
 
 7. How would you instruct an office boy with regard to stamping letters? 
 
 8. When is it desirable to register mail? 
 
 9. How would you send a letter by special delivery? 
 10. What is meant by a "window envelop"? 
 
CHAPTER III 
 
 STENOGRAPHIC WORK AND STANDARDS 
 
 BEFORE the invention of typewriters, all letters were writ- 
 ten by hand, which took a great deal of time. Although 
 some very small concerns may feel that their business 
 is not large enough to warrant the use of a typewTJter, yet most 
 business men today use typewriters for writing their letters, 
 thereby gaining over the old handwritten letters the advantage 
 of speed and legibiUty. 
 
 But since the executive has so many letters to write, he 
 seldom does his own typewriting. Instead, he dictates to a 
 stenographer, or to a dictating machine. In this way a man 
 can answer several hundred letters a day, while if he had to 
 typewrite his own letters, he would not be able to answer more 
 than a limited number. 
 
 Answering the mail. Most letters" that are not mere 
 acknowledgments require an answer. Some letters, such as 
 inquiries, remittances, and so forth can be answered at once. 
 Others require certain information or possibly getting the previous 
 correspondence from the files before they can be answered. 
 Still others, such as complaints and requests for adjustments, 
 call for investigation, although many houses make it a point 
 to acknowledge at once, as a matter of courtesy, all letters to 
 which the answer may be delayed. 
 
 The three steps in answering a letter are: 
 
 (a) determining the nature of the letter 
 
 (b) getting the necessary information 
 
 (c) writing or dictating the answer 
 
 Analyzing the letters. The first step, therefore, before 
 answering any letter, is to determine into which class it falls. 
 Perhaps it will help if we Hst certain kinds of letters and then 
 
 21 
 
'22 OFFICE TRAINING AND STANDARDS 
 
 sec which kind our letter is. In general, there are 10 kinds of 
 letters. They are: 
 
 (1) inquiries 
 
 • (2) sales 
 
 (3) acknowledgments 
 
 (4) orders 
 
 (5) complaints 
 
 (6) requests for adjustment 
 
 (7) collection 
 
 (8) remittance 
 
 (9) introduction, application, recommendation 
 (10) miscellaneous 
 
 Having determined what kind of letter it is we are going to 
 answer, and having obtained the information necessary for 
 an intelligent reply, we proceed to write or dictate our answer. 
 
 Methods that save time. Nearly all firms use some kind 
 of "form letter" and "form paragraph" to answer certain 
 letters, on account of the economy in dictating correspondence. 
 These letters are numbered and filed in a form book, and may 
 be copied as the body of the letter or inserted in paragraphs 
 where a commonly asked question always requires the same 
 answer. If they have been carefully prepared by an expert, the 
 dictator will not only save his time and that of the stenographer, 
 but he will secure a better letter by using appropriate forms 
 than by dictating without sufficient preparation or time. The 
 results also are likely to be more satisfactory. 
 
 Another kind of form letter commonly used is more in the 
 nature of a circular or follow-up letter. The printing is usually 
 in imitation typewriting with a blank left for filling in the name, 
 address, and sometimes an introductory clause to make it 
 more personal. Care should be taken that any "fill-ins" are 
 exactly in line and that the address is properly placed. Such 
 letters are intended to give the appearance of a personally 
 dictated answer, and should be prepared with that object in 
 mind at all times. 
 
 Other form letters are sometimes used where no attempt is 
 made to imitate the typewriter, such as stock letters of collection 
 agencies or general advertising circulars. 
 
G. M. JOHNSTON COMPANY 
 
 26 WATER STREET 
 
 Milwaukee 
 August 9. 1918. 
 
 STENOGRAPHERS AND TYPISTS 
 
 J. A. Blaisdell Company 
 2967 Main Street 
 Indianapolis, Indiana 
 
 Gentlemen: 
 
 As we desire uniformity of style in the arrangement of all letters 
 leaving our office, you will please use this letter as a model for 
 future correspondence. 
 
 The "M" of Milwaukee should be below and slightly to the right of 
 the printed heading; the date should be centered underneath 
 exactly as shown. 
 
 Begin the letter addressing the customer one space beneath the 
 dot on the upper left-hand side. (Where the margins are to be 
 unusually wide, because of a short letter, start one space below 
 but to the right of the dot.) In cases where the letter is to a 
 small town and no street address is given, show the city on the 
 second line and the state on the third line. Where a four-line 
 address is necessary, start on a line with the dot. In the case 
 of a five-line address start one space above the dot. 
 
 The left-hand margins of paragraphs must be in line with the 
 heading; double space between paragraphs. 
 
 In closing, use the phrase "Yours very truly." starting exactly 
 in the middle of the sheet; sign "G. M. Johnston Company," start- 
 ing underneath the "s" of "Yours." When the letter is to be signed 
 place the word "By" two spaces below and immediately underneath 
 the initial "G." Have the correspondent's and the stenographer's 
 initials on a line with the left-hand margin, two spaces lower 
 than "G. M. Johnston Company" Regulate the width of margin by 
 the length of the letter to be written. 
 
 When the letter cannot be written on one sheet use a special 
 second sheet, of the same grade of stationery. 
 
 Show "-2-" "thus, two spaces below the heading, and continue the 
 letter three spaces lower than the "-2-" with the same width 
 nargin as on the first sheet. 
 
 Yours very truly, 
 
 G. M. Johnston Company 
 
 GUJ:MN By 
 
 FIGURE 8: How easy it is to write a letter just the way the office manager wants 
 
 it, when you have a model letter like this to show you where to place the date, the 
 
 salutation, and conclusion, how to space the paragraphs, and everything else you 
 
 need to know. Every stenographer has a copy of this letter in her desk. 
 
 23 
 
24 OFFICE TRAINING AND STANDARDS 
 
 Taking dictation. The stenographer may take down the 
 letter in shorthand, or she may use one of the various shorthand 
 writing machines. These machines are supposed to be sold 
 only to operators who are trained in their proper use. 
 
 What the dictating machine does. The dictating ma- 
 chine works on the principle of the talking machine. The 
 dictator dictates his letter into the machine, which records 
 what he says on a wax cylinder. When the typist writes the let- 
 ter, she listens to the talking machine and hears what the dictator 
 has said just as if he were talking to her. 
 
 The dictograph is used by some business houses in dictating 
 letters. This instrument is somewhat like a telephone, except 
 that you do not have to hold your mouth close to the transmitter. 
 It is automatic, in that pressing a button gives instant connec- 
 tion with the desired department. By using this instrument 
 you do not have to call the stenographer into the office to dictate 
 a letter. She sits at her own desk and takes down the letter aa 
 you talk through the dictograph. 
 
 Transcribing the letters. Make yourself familiar with the 
 style of letter preferred in your office and adapt yourself to its 
 requirements. There is no reason why every letter should not 
 be neat, artistic, accurate, and attractive in appearance. The 
 margins should be even at the sides and a Httle wider at the 
 bottom than at the top, similar to the plan usually followed in 
 framing a picture. The spacing must of course be regulated 
 by the size of the paper and the length of the letter. When 
 single spacing is used, the paragraphs should be separated by 
 double spacing. On page 23 is shown a model letter used in 
 one office. Every stenographer has a copy of this letter to 
 which she can refer at any time. 
 
 Labor-saving devices in the office. There are a number 
 of labor-saving devices which lighten considerably the work of 
 handUng correspondence. Among these, the typewTiter has 
 become one of the most important. It is necessary for the 
 operator to know how to manipulate the machine skilfully and 
 how to keep it in perfect condition. The manufacturer usually 
 furnishes a })0()k of instructions on the care of the machine, and 
 these instructions should be carefully followed. 
 
STENOGRAPHIC WORK AND STANDARDS 25 
 
 How letters are copied. In general, a copy is made of 
 every letter or paper that leaves the office. This copy is kept 
 on file for reference. Formerly copies of pen-wTitten papers 
 were made by means of the letter-press. Later, copying ink 
 was used on the type\\Titers and copies made by the same process. 
 The greatest objection to this method was that while the copies 
 were perfect, they were copied and indexed in a large book which 
 could not be filed with the original letter. 
 
 To avoid this difficulty, a roller copying machine was in- 
 vented and the impression transferred to a continuous roll of 
 thin paper, which was cut off and filed with the letter. Many 
 legal offices still have their important papers copied in this way, 
 but carbon copies are coming into more general use. The sheet 
 of carbon paper is inserted between the letterhead and the second 
 sheet, and the impression of the tj-pewriter keys, striking the 
 letterhead, is transferred by the carbon paper to the second 
 sheet, making an exact copy of the original. 
 
 There are also disadvantages in the use of carbon copies. 
 If changes are made in the original, it is necessary to see that 
 the same alterations are made on the carbon copy. This is 
 usually done wdth pen and ink, unless the letter is entirely re- 
 written, when a new carbon copy is of course made, and the old 
 one destroyed. Some firms also place the signature on the copy. 
 
 Where exact copies of contracts, telegrams, or important 
 letters are required, the letter-press method is still in use. If 
 more than four copies are required, it is considered a waste of 
 time to use the carbon paper except with very thin paper; hence 
 the tj^jist of today must be familiar with the use of the various 
 duplicating apphances such as the gelatin dupHcator, stencil 
 duplicator, type and ribbon duplicator, and the automatic type- 
 writer, all of which are in general use. 
 
 The gelatin duphcators are used when 50 or less copies are 
 needed. The material to be reproduced is either written by pen 
 or typewriter with regular copying ink. It requires very little 
 instruction to learn to operate this simple appliance. 
 
 The stencil duplicator. In many commercial schools, the 
 stenographers are expected to learn how to manipulate the 
 stencil dupHcator, since it is commonly used in printing circulars 
 
26 OFFICE TRAINING AND STANDARDS 
 
 and form letters where less than a thousand copies are desired. 
 Several thousand copies can be printed in an hour by the use 
 of a motor-driven machine, while about a thousand can be printed 
 in the same time by hand power. 
 
 When thousands of follow-up form letters are required, it is 
 an economy of time to use the type and ribbon duphcator. With 
 this machine a facsimile signature may be shown in ink, giving 
 the letter a more personal touch. 
 
 The Multigraph, Printograph, Flexotype* Multicolor and 
 Writerpress are machines of the same class in which actual type 
 is set and the impression made through a typewriter ribbon. 
 
 One of the more recent dupHcating machines on the market 
 is the automatic typewriter. It is built somewhat on the prin- 
 ciple of the piano player with a regular typewriter as a part of the 
 equipment. A single operation produces a finished letter with 
 the desired date, name, address, and special notations complete. 
 
 Getting letters ready to sign. After the typist or stenog- 
 rapher has completed the letter, she places it under the flap 
 of the envelop with the addressed side up. The one who signs 
 the letters should either sign his name so that it can be read or 
 else have his name typewritten somewhere near his signature. 
 Unreadable signatures may be costly and cause endless incon- 
 venience, annoyance, and often the loss of business. 
 
 Where large numbers of checks, drafts, bills, stock certif- 
 icates, pay checks, or dividend checks are to be signed, a check- 
 signing machine is often used. With this machine, 14,000 papers 
 can be signed in a little less than three hours. The operator 
 writes with a monitor pen which controls a series of fountain 
 pens that respond to the sHghtest movements of the monitor 
 pen and reproduce the exact signature of the operator. The 
 paper drops into a tray and a new set of checks is automatically 
 drawn under the pens. 
 
 Verifying enclosures and remittances. The stenographer 
 will be held responsible for any enclosm-es to be sent with the 
 letters she writes. Promised enclosures are. either forgotten or 
 placed in the wrong letter or package every day, to the annoyance 
 of thousands of business men. Make it a point to collect the 
 enclosures as soon as the letter is written and place them in 
 
FIGURE 9: If you want to feel tired 
 
 out before you are half through the day 
 
 sit humped up like this girl, but — 
 
 FIGURE 10: If you prefer to keep fresh 
 
 and alert all day long, you will find that 
 
 this posture is very much better. 
 
 FIGURE 11: Here is a room full of girls transcribing letters from the dictating 
 
 machines beside each desk. The woman sitting at the desk at the right is their 
 
 supervisor. The cylinders are records of letters waiting to be transcribed. 
 
 27 
 
Dictate the following letter in one and one-half 
 minutes. As much as possible is to be trans- 
 cribed within four minutes. Accuracy will be 
 counted more than merely speed. Handle mar- 
 gins and indentations with care and judg- 
 ment. The basis is thirty-five words a minute. 
 
 THE 1919 calendar we got 
 out a few months ago ap- 
 pealed favorably, although it 
 was a little late in the season. 
 Several customers informed us 
 they had already purchased a 
 calendar supply for 1919, and 
 suggested that we take up the 
 matter early for 1920. We 
 have done so, and enclose two 
 samples. You may have either 
 style, with your name and 
 business card, at $5 a hundred. 
 Our name will not appear at 
 all, so the calendar will be yours 
 and you will get a nice piece 
 
 of work at less than half what 
 you would pay for similar cal- 
 endars if you placed an order 
 direct. A calendar makes a 
 very useful and acceptable re- 
 membrance to your trade and 
 is especially appreciated by 
 prospective customers. We 
 must fileadditionalordersearly 
 with the calendar people, in or- 
 der to get the low price. May 
 we therefore hear from you 
 promptly, telling us which style 
 you wish and the copy you 
 would like printed on your 
 supply ? 
 
 FIGURE 12: When a stenographer applies for a position, she is usually given a 
 test for speed and accuracy. The young woman shown here is taking such a test. 
 If she writes this letter neatly, correctly, and within the required time, the employer 
 will know that she is competent, and capable of filling the position satisfactorily. 
 
 28 
 
STENOGRAPHIC WORK AND STANDARDS 29 
 
 the addressed envelop or make a note of the number of enclosures 
 on the letter and copy from your notes a complete list on a separ- 
 ate paper. You cannot depend upon finding later all the en- 
 closures mentioned in the body of your notes. 
 
 If something is to be sent under separate cover, send the 
 mailing clerk an addressed label at once, as it generally takes 
 more time for third-class mail to reach its destination. When a 
 large number of circulars are to be sent to one address, it is 
 customary to number them by groups so that they can be easily 
 designated. In case many sets of circulars are needed for dis- 
 tribution, much time and labor are saved by arranging the 
 pamphlets on a revolving table so that they can be assembled as 
 they pass by. Although this device takes up considerable 
 space, it serves the purpose. 
 
 Where the mail is heavy, it is a good plan to put the letters 
 with enclosures in a separate group to be specially looked after at 
 mailing time. The maihng clerk, who should be familiar enough 
 with all forms of enclosures to detect errors or omissions, can 
 then carefully verify all amounts mentioned in remittance en- 
 closures, without losing any time. 
 
 Standards of work. In every office, some of the em- 
 ployees work faster than others. The faster workers may be 
 more capable, or better trained, or they do not waste so much 
 time as the slower ones. In any case, they turn out more work. 
 Under these conditions, it doesn't seem fair to pay the slow 
 workers as much as the fast workers. On the other hand, it is 
 not always possible to obtain fast workers at once. Usually 
 some training is necessary. One way of training the slower 
 workers to do more work is to set standards of accomplishment. 
 An investigation is made to determine what would be a fair day's 
 work for one person. This amount is then called the standard. 
 The standard of measurement of typewritten matter that is 
 commonly used is the square inch, and a transparent celluloid 
 scale is used like that on page 31. 
 
 Many offices have already estabhshed standards of perform- 
 ance for a day's work and the pay is determined by the amount 
 accomphshed. A bonus system which remunerates each worker 
 according to the quantity and quality of work done enables 
 many to increase materially their incomes. 
 
30 OFFICE TRAINING AND STANDARDS 
 
 Dictating machine standards. Several years ago the Cur- 
 tis PubUshing Company, which employs over 1,000 persons in its 
 offices, made an effort to standardize the operation of their dic- 
 tation machines. A school of instruction was estabUshed and 
 measurements taken of the work being done. It was found 
 that the average production of an operator a week was 1,200 
 square inches of typewritten matter and the wages of a girl who 
 did this work was $9. 
 
 After a scientific study of the operation and the fixing of a 
 standard, it was found that 4,200 square inches a week became 
 the average production, and the wages increased from $9 to $11 
 a week. This meant an increase of 22% in the wages and a de- 
 crease in the cost of production from $7.50 to $2.50 for 1,000 
 square inches, or an increase in efficiency of 200%. The work 
 was not so difficult, was more skilfully executed, and was far 
 more interesting. Surely a plan which will double the efficiency 
 of the workers and make a game out of work is much better than 
 the hit-or-miss method where everyone does as he thinks best, 
 regardless of method. 
 
 This result is accomplished, first, by selecting only appli- 
 cants who give evidence of becoming efficient; second, by train- 
 ing the apphcants chosen in the details of the department to 
 which they are to be assigned; third, by holding classes for em- 
 ployees to review the best processes and explain modifications; 
 fourth, by determining what constitutes a fair day's work and 
 establishing that as a standard; fifth, by inaugurating a bonus 
 system which will remunerate each worker according to the 
 quality and quantity of work done. 
 
 Stenographic standards. Some offices have estabUshed a 
 standard of 60 words a minute for transcribing dictation. The 
 pay for this class of work is $18 a week. No standard is fixed for 
 dictation, but the same rate is paid for the time spent in dictation 
 that is earned in transcribing. This is estimated on an average 
 number of 12 words a line and 2G lines on a page. At the rate 
 of 60 words a minute, a page may be transcribed from short- 
 hand notes in about 5 minutes. 
 
 After making allowance for time spent in dictation or for 
 lunch or other interruptions, if the general average is only 30 
 

 
 
 
 
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 .58 
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 1.00 
 
 1.00 
 1.25 
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 1.33 
 1.67 
 
 2.00 
 
 1.67 
 2.08 
 2.50 
 
 2.00 
 2.60 
 3.00 
 
 2.33 
 2.02 
 3.50 
 
 2.67 
 3.33 
 4.00 
 
 3.00 
 3.75 
 4.50 
 
 .58 
 .67 
 .75 
 
 1.17 
 1.33 
 1.50 
 
 1.75 
 2.00 
 2.25 
 
 2.33 
 2.67 
 3.00 
 
 2.02 
 3.33 
 3.75 
 
 3.60 
 4.00 
 4.50 
 
 4.08 
 4.67 
 5.25 
 
 4.67 
 5.33 
 6.00 
 
 6.25 
 6.00 
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 .83 
 
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 1.00 
 
 1.67 
 1.83 
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 2.50 
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 3.33 
 3.67 
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 4.17 
 4.58 
 5.00 
 
 5.00 
 5.50 
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 5.83 
 6.42 
 7.00 
 
 6.67 
 7.33 
 8.00 
 
 7.50 
 8.25 
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 1.08 
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 1.25 
 
 2.17 
 2.33 
 2.50 
 
 3.25 
 3.50 
 3.75 
 
 4.33 
 4.67 
 5.00 
 
 5.42 
 5.83 
 6.25 
 
 6.50 
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 7.50 
 
 7.58 
 8.17 
 8.75 
 
 8.67 
 
 0.33 
 
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 0.75 
 10.60 
 11.25 
 
 1.33 
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 2.67 
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 4.00 
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 4.50 
 
 5.33 
 5.67 
 6.00 
 
 6.67 
 7.08 
 7.50 
 
 8.00 
 8.60 
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 0.33 
 
 0.92 
 
 10.50 
 
 10.67 
 11.33 
 12.00 
 
 12.00 
 12.75 
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 1.58 
 1.67 
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 3.17 
 3.33 
 3.50 
 
 4.75 
 5;00 
 5.25 
 
 6.33 
 6.67 
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 7.02 
 8.33 
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 0.50 
 10.00 
 10.50 
 
 11.08 
 11.67 
 12.25 
 
 12.67 
 13.33 
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 14.25 
 15.00 
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 1.83 
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 3.67 
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 5.50 
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 7.33 
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 9.17 
 
 9.58 
 
 10. 00 
 
 11.00 
 11.50 
 
 12.00 
 
 12.83 
 13.42 
 14.00 
 
 14.67 
 15.33 
 16.00 
 
 16.50 
 17.25 
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 2.08 
 2.17 
 2.25 
 
 4.17 
 4.33 
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 6.25 
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 8.33 
 8.67 
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 10.42 
 10.83 
 11.25 
 
 12.50 
 13.00 
 13.50 
 
 14.58 
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 16.67 
 17.33 
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 18.75 
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 4.67 
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 7.00 
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 12.08 
 12.60 
 
 14.00 
 14.60 
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 16.33 
 16.02 
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 18.67 
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 21.00 
 21.75 
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 2.58 
 2.66 
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 5.17 
 5.33 
 5.50 
 
 7.75 
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 8.25 
 
 10.33 
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 11.00 
 
 12.02 
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 15.50 
 16.00 
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 18.08 
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 20.67 
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 23.25 
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 8.50 
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 22.67 
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 25.60 
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 6.17 
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 12.33 
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 18.60 
 10.00 
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 21.58 
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 24.67 
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 27.75 
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 3.33 
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 6.67 
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 20.00 
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 23.33 
 23.92 
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 26.67 
 27.33 
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 30.00 
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 FIGURE 13: In some offices a transparent celluloid scale like this one is used to 
 
 measure the typists' work. When the upper left-hand corner of the scale is placed 
 
 over the upper left-hand corner of the typewritten matter, the number over the 
 
 lower right-hand corner shows how many square inches have been typed. 
 
 31 
 
32 OFFICE TRAINING AND STANDARDS 
 
 words a minute, the operator receives a salary of S9 a week. It 
 has been shown that the stenographer takes considerable satis- 
 faction in maintaining a certain standard of proficiency, especially 
 when she receives a salary in accordance with the standard at- 
 tained by her in her w^ork. 
 
 In one office where this method has been employed, with a 
 force of about 75 stenographers, not only were the salaries in- 
 creased 20%, but a saving of 20% was made in the department. 
 A competent operator with two assistants was placed in charge. 
 The chief operator had charge of assignments, gave out the in- 
 structions, and kept time. One assistant was in charge of the 
 phonograph division, while the other measured all work and 
 looked over the correspondence, making it unnecessary for the 
 dictator to read his letters for ordinary errors. 
 
 Standards for typists. With the general use of the type- 
 writer in making out bills, statements, order forms, card in- 
 dexing, and looseleaf papers, there is a constant demand for 
 capable typists. The use of phonograph dictation is another 
 cause of this increased demand. 
 
 Since it is an ea^y matter to measure the speed and accuracy 
 of the typist, the tendency is to standardize all such work and 
 pay the operator according to his proficiency. Many students 
 sacrifice even a moderate speed for accuracy, and others go to 
 the worse extremity of sacrificing accuracy for speed. The typist 
 must not only be accurate, but must also be fairly speedy or 
 else fall behind in the race for supremacy. 
 
 Select some special sentence and time yourself on it today. 
 Practice the same sentence a httle each day and note the im- 
 provement from week to week. When you can write 110 words 
 or more a minute without an error, you may be sure that you can 
 ultimately increase your present speed in ordinary copying work. 
 
 Take the sentence: "Now is the time for all good men to 
 come to the aid of their party," and see how many times you 
 can write it without a mistake in 10 minutes. 
 
 Knowing and also doing. You may easily see from the 
 foregoing pages that a worker in the correspondence department 
 is an important factor in helping to carry out the business opera- 
 tions of the office. You should not only know exactly what is to 
 
STENOGRAPHIC WORK AND STANDARDS 33 
 
 be done, but also the reason for doing it, and the best way to 
 standardize all operations. If you are interested in getting 
 good results, you may be sure you will be given a chance to 
 show what you can do. 
 
 Remember that the more you know the more valuable will be 
 your services, provided you do your best at all times. 
 
 DICTATION STANDARDS 
 
 How to say what you mean 
 
 1. Do not say "the best of the two," when you mean "the better." 
 
 2. Do not say "can I see you?" when you mean "may I see you?" 
 
 3. Never say "do you carry hardware?" when you mean "sell." 
 
 4. Do not say "every once in a while," for "occasionally." 
 
 5. Never say "what line of business?" when you mean "kind." 
 
 6. Never say "return same to me," when you mean "return it." 
 
 7. Do not write "in reply will say," if you mean "I will say." 
 
 8. Never say "I guess," when you mean "I suppose." 
 
 9. Do not say "I don't think," when you do think. 
 
 10. Do not say "I beg to advise you," or "beg to inquire." 
 
 11. Do not say "the two last," when you mean "the last two." 
 
 12. /Never call a person a "pSrt^." \ , 
 
 13.\Never make a " date '^ when an appointment is desired<- 
 
 14. Do not say "posted" if you mean "informed." 
 
 15. Don't say "I don't hardly know," or "I can't hardly tell." 
 
 16. Do not say "It looks good," when you mean "it looks well." 
 
 17. Do not say "equally as well," when you mean "as well." 
 
 18. Never use "he don't" for "he doesn't." 
 
 19. Never say '^a couple of days" when you mean "two days." 
 
 20. Do not say "along that line" when you mean "on that subject." 
 
 21. Never say "a beautiful home" if you mean "house." 
 
 22. Do not say "yourself and myself" if you mean "you and me." 
 
 23. Do not say "it said in the paper," when you mean "the paper said it." 
 
 24. Do not say "a good write-up" if you mean "article." 
 
 25. Do not say "lots of," when you mean "many." 
 
 26. Why say "the two are both alike" when they are "alike"? 
 
 27. Why say "funny" when you mean "odd," "strange," or "queer"? 
 
 28. Did you "extend an invitation" when you intended to "invite"? 
 
 29. Why say "he didn't show up," when you mean "he didn't appear"? 
 
 30. Do not say "I am real glad," if you mean "very glad." 
 
 31. Do not say "seldom ever," when you mean "seldom." 
 
 32. Do not say "the package is liable to come" for "may come." 
 
 33. Do not say "a less number," when you mean "a fewer." 
 
 34. Do not divide "among" two people but "between" them. 
 
 35. Don't say " enclosed herewith." " Herewith " is superfluous. 
 
34 
 
 OFFICE TRAINING AND STANDARDS 
 
 36. Don't say " I only want two dollars " if j'ou want "only two dollars." 
 
 37. Don't say "I doubt its veracity" if you mean "the truth." 
 
 38. Don't say "the observation of the rule" if you mean the "observance." 
 
 39. Don't say " the latter end of the year " if you mean "the end." 
 
 40. Don't say "if in case I succeed," when you mean "if I succeed." 
 
 41. Don't say "he was celebrated for his crimes" if you mean "notorious." 
 
 42. Don't say " to be given away gratis " if you mean " to be given away." 
 
 43. Avoid "the same" as 5^ou would the smallpox. 
 
 44. Avoid "thanking you in advance." It is impossible. 
 
 45. Avoid long words when short ones are better. Your object in writ- 
 ing is to make yourself clear, not to confuse your correspondent. 
 
 DICTATION STANDARDS 
 
 The choice of words 
 
 From "The Writing of Good Letters for the Crane Company" 
 
 (Reprinted by permission of the Crane Company) 
 
 DON'T WRITE 
 
 Adopt for take or decide. 
 
 Anticipate for expect. 
 
 Apt for likely. 
 
 Appreciate for value or increase. 
 
 Avocation for vocation. 
 
 Balance for rest or remainder. 
 
 Bring for take. 
 
 Can for may. 
 
 Caption for heading or title. 
 
 Character for reputation. 
 
 Cheap for low-priced or inexpensive. 
 
 Claim for assert. 
 
 Commence for begin. 
 
 Complete for finish. 
 
 Consequence for importance. 
 
 Consider for regard. 
 
 Could for might. 
 
 Couple for two. 
 
 Depot for station. 
 
 Differ with for differ from. 
 
 Donate for give. 
 
 Don't for doesn't. 
 
 Each other for one another. 
 
 Excessively for exceedingly or very. 
 
 Fewer for less. 
 
 Graduated for was graduated. 
 
 Have got for have. 
 
 Hurry for haste. 
 
 If for whether. 
 
 Ill for sick. 
 
 Illy for ill (as an adverb). There is no 
 
 such word as "illy"). 
 Immediately for straightway or at 
 
 once. 
 In for into. 
 
 In so far as for so far as. 
 Inaugurate for begin. 
 Individual for person. 
 Indorse for approve. 
 Initiate for start or begin. 
 Last for latest. 
 Lay for lie. 
 Lengthy for long. 
 Liable for likely or prone. 
 Loan for lend. 
 Locate for settle. 
 Located for found. 
 Location for place. 
 Mutual for common. 
 Name for mention. 
 Nice for good. 
 Nicely for well 
 
 Observe for say or remark or see. 
 Over and above for more than. 
 
STENOGRAPHIC WORK AND STANDARDS 35 
 
 Partially for partly. Proven for proved. 
 
 Party for person. Purchase for buy. 
 
 Past for last. Quantity for number. 
 
 Patronage for custom. Railway for railroad. 
 Per for a ("a ton," "a day," not "per Reliable for trustworthy. 
 
 ton," "per day.") Reply for answer. 
 
 People for persons. Reside for live. 
 
 Perform for do. Residence for house or home. 
 
 Perpetually for continually. Retire for go. 
 
 Portion for part. Section for region, vicinity, or neigh- 
 Posted for informed. borhood. 
 
 Present for introduce. Standpoint for point of view. 
 
 Preventative for preventive. State for say. 
 
 Procure for get. Universal for general or all. 
 
 STANDARD EXERCISES 
 
 Watching your English when dictating 
 Can you find the errors in these sentences, which were. taken from actual 
 business letters? If you can, rewrite them correctly, giving your reasons for 
 making the changes. j^ 
 
 1. Each of the companies sent their own representative. 
 
 2. Fill out the enclosed blank and return same by return mail. 
 
 3. I have a date with the manager tomorrow evening. 
 
 4. The secretary published a good write-up on cooperation. 
 
 5. The balance of the order was divided between two firms. 
 
 6. There is another party applying for the same position. 
 
 7. One can build a good home for S5,000. 
 
 8. He is proprietor and owner of the factory. 
 
 9. If you think of opening a clothing store let me give you a little advice 
 along that li ne . 
 
 10. Yourself and friends are invited to visit our factory. 
 
 11. ThTorder will be shipped in a coiiple of days. 
 
 12. It isjaid in the paper that the bank would be closed. 
 
 13. The accountant always does his work in good shape. 
 
 14. The two offices areC^oJB alike. 
 
 15. The shipment is liabl£to%me any day. 
 
 16. The bookkeeper seldom e^ter makes a mistake. 
 
 17. Do you carry farm implements now? 
 
 18. Let us know where you are stopping and we will send the goods. 
 
 19. Can we expect an order from you? 
 
 20. We wisjL^OiU to try any experiment with our new tractor. 
 
 21. Th^ftast(fwo articles were omitted. 
 
 22. We received a less number of orders from you last month. 
 
 23. The firm can not accept of your hospitality. 
 
 24. We have got a large number of reapers in the warehouse. 
 
36 OFFICE TRAINING AND STANDARDS 
 
 25. Divide the money btlwyyii the three customers. 
 
 26. You should not be angry frtrme when the goods were as represented. 
 
 27. The clerk died wi*h diphtheria, so the shipment was delayed. 
 
 28. If he dont write soon we will cancel the order. 
 
 29. The manager's fatjier died when Jid was quite young. 
 
 30. Your book is different than mine. 
 
 31. The widow woman was left without any support. 
 
 32. A man that is a member of the firm will call. 
 
 33. The company ordered their men to begin work. 
 
 34. 'Whttv shall we elect secretary? 
 
 35. Who do you regard as the best salesman? 
 
 36. In reply to your inquiry wi!f say — . 
 
 37. Your esteemed favor just received. 
 
 38. Yours of the 21st at hand and contents carefully noted. 
 
 39. Your recent letter received and I-beg to advise-^. 
 
 40. I-feeg to-Femain youf-feumble servant, John Smith. 
 
 DICTATION STANDARDS 
 
 Perhaps these suggestions will help you 
 
 1. Most business letters are written for the purpose of selling something. 
 
 2. Sales are the result of confidence. 
 
 3. Clearness and truthfulness are convincing. 
 
 4. If the sales letters fail to sell, everything fails. 
 
 5. The dictator must be well informed on his subject. 
 
 6. He must be accurate, since mistakes are costly. 
 
 7. He must have the tact never to offend. 
 
 8. He must be always alert. 
 
 9. All letters should be answered the day they are received. 
 
 10. If a final answer can not be made, acknowledge the receipt and follow 
 soon with a complete letter. 
 
 11. Don't put off answering the difficult letters until tomorrow, as to- 
 morrow may never come. 
 
 12. Avoid being brusk, but be direct and courteous. Be brief, but do 
 not omit important facts. 
 
 13. Avoid arguments, as antagonism drives away friends. 
 
 14. Be polite, but do not use "soft soap." 
 
 15. Energy and enthusiasm beget attention and interest. 
 
 16. Make your letter easy to read. 
 
 17. Avoid being funny and smart. 
 
 18. Avoid confusing the prospect by presenting several propositions. 
 
 19. Avoid even the aDi? f^?^''-^ri^*" ^'^ s;arfnsi.n 
 
 20. Make your letter show advantages to be gained, not evils to be avoided. 
 
 21. Do not use technical terms that might not be understood. 
 
 22. Avoid the use of superlatives, such as tremendous. 
 
 23. Do not omit the small words, such as "a," "and" or "the." 
 
STENOGRAPHIC WORK AND STANDARDS 37 
 
 24. Do not use a long word when a short one will do as well. "Begin" is 
 better than "inaugurate," "buy" than "purchase," "house" than "residence." 
 
 25. Study the origin and meaning of words. 
 
 26. Enlarge your vocabulary by reading the best writers. 
 
 27. Do not use fancy letter paper, or green ink. 
 
 28. Do not place "bill poster" advertisements on your stationery. 
 
 29. Avoid closing paragraphs beginning with "hoping," "trusting," or 
 "I beg to remain." 
 
 30. Always sign your name so that it can be read. 
 
 DICTATION STANDARDS 
 
 What one stenographer discovered about her work 
 
 1. Always be prepared with material and tools. 
 
 2. Don't rap on the resk when the dictator makes a pause. 
 
 3. Be interested. Don't stare a hole through the wall. 
 
 4. Never put down anything you don't understand. 
 
 5. Ask questions, if necessary, when a pause occurs. 
 
 6. Always be sure that the names and addresses are correct. 
 
 7. Note special instructions in long hand. 
 
 8. Cancel transcribed notes by drawing a line through them. 
 
 9. Number and date note books for filing. 
 
 10. Don't omit small words to save time. 
 
 11. Don't use abbreviations in the body of the letter. 
 
 12. Avoid st, d, or th in writing dates. 
 
 13. Never abbreviate the names of cities. 
 
 14. Never write & for "and" except in firm names. 
 
 15. Do not use Dear Miss for Dear Madam or Dear Miss Smith. 
 
 16. Never omit the names of states in addresses. 
 
 17. Do not use My Dear Friend for My dear Friend. 
 
 18. Do not use 5-12-17 for May 12, 1917, in the heading of a letter. 
 
 19. Don't write Neb. for Nebr., Col. for Colo., Penn. for Pa., or Bait, 
 for Baltimore. 
 
 20. Don't use abbreviations in the introductory address except Mr., 
 Mrs., Dr., R. F. D., St., and Ave. 
 
 21. Do not abbreviate Master, Professor, President, Superintendent, or 
 Honorable in the address. 
 
 22. Do not abbreviate the given name of a correspondent unless he does. 
 
 23. Never address a woman by her husband's title. 
 
 24. Don't beg. You have no right to " beg attention " or " beg to inquire." 
 
 25. Never use a punctuation mark that does not make the meaning clearer. 
 
 26. Avoid "hoping," "trusting," "awaiting," "kindly answer," and "es- 
 teemed favor." 
 
 27. Always read the letter before you transcribe the reply. 
 
 28. Never address a letter to a large city without giving the street number 
 except to well-known concerns. 
 
38 OFFICE TRAINING AND STANDARDS 
 
 29. Be sure the address is on the inside and outside of the letter. 
 
 30. Always place the stamp in the upper right-hand corner. 
 
 31. Never strike one letter over another without erasing the first one. 
 
 32. Never erase unless you can do it without showing. 
 
 33. Leave two spaces after a period instead of one or three. 
 
 34. Address the president of the United States, governors, and ambassadors 
 as "His Excellency." 
 
 35. Address men holding prominent public office as "Honorable." 
 
 36. Do not crowd your letter to get it on one sheet. 
 
 37. Place the body of the letter in the center of the page so the margins 
 are balanced. 
 
 38. Avoid an uneven right-hand margin. 
 
 39. Remember that your efficiency is shown by the quantity and quality 
 of your work. 
 
 40. Remember that accuracy without speed is better than speed without 
 accuracy. 
 
 STANDARD EXERCISES 
 
 Errors to avoid in transcribing correspondence 
 Here are some errors made by a stenographer in transcribing her notes. 
 See if you can find what is wrong, and rewrite each one as it should be written, 
 giving your reasons for making the changes. 
 
 1. Lincoln, Neb. 7-24=T77' 
 
 2. Sioux Falls, S. Dak., Jan. 2nd, 1917. 
 
 3. Carrie Bond Joplin Mo., My dr. Miss: 
 
 4. Brown and Black, Canton, Ohio. Dear Gents: 
 
 5. I am, Yours respectively, Henry Smith 
 
 6. Yours resp'y- Hiram Jones. 
 
 7. Eras. J. F. Towne, Janesville, Wisconsin. 
 
 8. Mr. Judge Jones, Nashville, Tennessee. 
 
 9. Yours of February 3rd. rec'd and in reply will say — . 
 
 10. Miss. Rose Pyne, 231 N. 27th St. Bait. Maryland. 
 
 11. Chas. True 234 W. 2nd St. Boston. 
 
 12. Prof. F. C. Good, Supt. City schools. Long Pine, Neb. 
 
 13. The Co. will give you a no. of large orders soon. 
 
 14. Hoping to hear from you soon, Yours very truly. 
 
 15. P. J. Roga, W. 12th St., Chgo., Ills. 
 
 16. Doctor J. W. Black, 43, 2nd. ave. Phila. Penn. 
 
 17. If the drill is not satisfactory return same at once. 
 
 18. Room 45, 124 Penn Av. Denver Col. 
 
 19. G. W. Green, Hamilton, Montana, My Dear Sir: 
 
 20. We have shipped to Brown & Banett 1 suit of clothes & an overcoat. 
 
 21. Between the company and myself there should be no trouble. 
 
 22. The train being late will delay him coming. 
 
 23. Every business has it's problems. 
 
STENOGRAPHIC WORK AND STANDARDS 39 
 
 24. There is no danger of me falling. 
 
 25. The next one whose to give a report is the treasurer. 
 
 26. The man who's place you are taking has been with us 20 yrs. 
 
 27. This is the 3rd order we have received from you. 
 
 28. The books leaves were badly torn. 
 
 29. Have you seen Smith's and Weston's new typewriter? 
 
 30. I guess you are mistaken in amount of the order. 
 
 31. I was sure it was him who made the mistake. 
 
 32. We saw your ad in the Courier Journal. 
 
 33. We can make you a low price on a ladies fur coat. 
 
 34. Politics dont affect business very much. 
 
 35. Have you received the treasurers report? 
 
 STANDARD EXERCISE 
 
 A test of stenographic ability 
 This is taken from the Regents' examinations of the New York State Board of 
 Education. Let someone read it to you and see how long it takes you to trans- 
 cribe it accurately from your notes. Then practice it until you can do it in 
 the given time, 3>^ minutes. 
 
 STANDARD REQUIREMENTS 
 210 words — to be copied in 3K minutes from stenographic notes. 
 Can you write postals, direct envelops, copy telegrams, write on ruled paper, 
 on narrow paper and on wide paper, make carbon copies and letterpress copies, 
 cut stencils and run off mimeograph copies, use the tabulator and take dictation 
 directly on the machine— in fact, do the work you may be called on to do the 
 first day in the business office? All these things should be a part of your work 
 in school and you should not be satisfied till you can meet the requirements of 
 business. Remember this one thing above everything else: Business men of 
 today know that a real stenographer can do first-class work, including all the 
 details that I have enumerated above, and they are looking for just such a one. 
 A stenographer, like other machine operators, must be familiar with the 
 implements used in the business. It is not really difficult to master the several 
 makes of machines after you have thoroughly mastered one, for most writing 
 machines of today conform in essentials to two standards. The student should 
 insist upon getting instruction on both kinds— the single and the double key- 
 board machines and be prepared to use either with ease. 
 
 TYPING STANDARDS 
 
 How to increase speed and accuracy 
 
 1. If you do not use the touch system, learn it. 
 
 2. Errors mean that the fingers do not go naturally to the right keys. 
 
 3. Develop the muscles of the hand and fingers by exercises used in 
 playing the piano. 
 
40 OFFICE TRAINING AND STANDARDS 
 
 4. Pay particular attention to the little finger and thumb. 
 
 5. Devote 30 minutes each morning to practice exercises. 
 
 6. Practice one selection until the desired speed and accuracy are at- 
 tained. 
 
 7. Then choose another selection and practice in the same manner. 
 
 8. Time yourself each day and note progress. 
 
 9. Rapid operators should practice as well as the slower ones. 
 
 10. Striking two keys at once shows lack of control of the fingers and 
 must be overcome by careful repetition where the mistake occurs. 
 
 11. If the shift key is not depressed far enough it shows lack of control 
 of the little finger, which needs strengthening. 
 
 12. In the daily practice matter it should be a rule never to permit erasures. 
 
 13. Avoid reading only a few words at a time. Grasp a whole sentence 
 and write it without stopping. 
 
 14. Avoid working by spurts, as it merely results in fatigue and lessens 
 the output. 
 
 15. Keeping stationery in a special desk rack which holds each kmd of 
 paper avoids the loss of time in removing it from the desk drawers. 
 
 16. Avoid wasting time in straightening paper after it has been placed 
 in the machine by properly starting it. 
 
 17. Avoid wasting time and energy by adopting a correct position while 
 at work. 
 
 18. Avoid lifting the hands much above the keyboard. 
 
 19. The work must be done by the fingers, which should not be raised 
 more than four inches above the keyboard. 
 
 20. Adopt the standard abbreviations given in the United States Postal 
 Guide, if you must abbreviate. 
 
 21. The block style of writing addresses (without indenting) is a saving 
 
 of time. 
 
 22. Enter speed contests whenever you have an opportunity. 
 
 23. Two hundred square inches an hour is considered a good standard. 
 
 24. Analyze your work carefully in order to discover the cause of your 
 mistakes or failures. 
 
 25. You will find that your accuracy will improve as your speed increases. 
 
 STANDARD EXERCISE 
 
 What a typist should be able to do 
 Here is another selection taken from the New York Board of Regents' examina- 
 tions, which is supposed to be copied in three minutes, if you are up to the 
 standard required for such work in some offices. 
 
 SPEED AND ACCURACY 
 210 words to be copied in 3 minutes, without any mistakes. 
 Until accuracy is a matter of habit, reduce speed somewhat— that is, 
 write within your speed. But this fact must be remembered also in working 
 
STENOGRAPHIC WORK AND STANDARDS 41 
 
 for accuracy: that habit is a most powerful influence for either good or bad and 
 that if you write at a certain speed it will become a fixed habit ; you will get into 
 a habit that will be hard to get out of. This danger can be removed by doing 
 some work every day to accelerate speed. Put on pressure for a little while, 
 but not to such an extent as to make you lose control of your nerves. It is easy 
 to go from one extreme to another — that is, by trying to write too rapidly or 
 by being too deliberate. 
 
 The influence of habit on accuracy is also very important. You have 
 probably noticed in your practice that j^ou will often write for a considerable 
 time without once striking a WTong key and that this gives you a sense of buoy- 
 ancy, confidence and comfort that makes accuracy easy and materially increases 
 your speed. You are carried along by the exhilaration of doing perfect work. 
 On the other hand, if you strike a wrong key, you ^\ill probably make a series 
 of mistakes. 
 
 STANDARD QUESTIONS 
 
 Typing and addressing letters 
 
 1. What is meant by preparedness to take dictation? 
 
 2. What is most desired of the typist in getting out mail? 
 
 3. Why should the typist understand everji^hing he writes? 
 
 4. Should he ever change a letter dictated by liis employer? 
 
 5. Why is it important to spell correctly? 
 
 6. What is the reason for using punctuation marks? 
 
 7. What is the reason for using abbreviations? 
 
 8. When should abbreviations not be used? 
 
 9. Why it is desirable, in firm letters, to have the initials of the sten- 
 ographer and dictator on every letter? 
 
 10. What is the best position and form of the envelop address? 
 
 11. How should the envelop and letter be arranged for signature? 
 
 12. How can a typist write letters from dictation without a knowledge of 
 shorthand? 
 
 13. How can a typist write a letter without having seen the dictator? 
 
 14. Are there any noiseless typewriters? 
 
 15. What are the advantages in using a dictating machine? 
 
 16. Why is it desirable to write on only one side of the paper? 
 
 17. Why is it desirable to keep a copy of all business correspondence? 
 
 18. What are the advantages and disadvantages of a carbon copy? 
 
 19. Under what conditions would it be desirable to use letterpress copies? 
 
 20. What is the standard of measurement of typewritten matter? 
 
 STANDARD QUESTIONS 
 
 The technique of business correspondence 
 
 1 . Why is it desirable to use printed letterheads? 
 
 2. Why is it not desirable to place showy advertisements on letterheads or 
 envelops? 
 
42 OFFICE TRAINING AND STANDARDS 
 
 3. Why is it not desirable to omit your own address or the date of your 
 letter? 
 
 4. WTiy should your letterhead and signature agree with the name and re- 
 turn address on the envelop? 
 
 5. A\Tiy should the address in the letter correspond with the one on the 
 envelop? 
 
 6. What is the proper form of address and salutation for a j'oung unmar- 
 ried woman? 
 
 7. What is the proper title for a prominent politician? 
 
 8. What are the proper titles for a firm of men? 
 
 9. WTiat are the proper titles for a firm of women? 
 
 10. What constitutes an effective approach in a business letter? 
 
 1 1 . What constitutes an effective argument in a business letter? 
 
 12. What constitutes an effective conclusion in a business letter? 
 
 13. "V\Tiy is it desirable to use good English in a business letter? 
 
 14. Why is it desirable to refer to the date of the letter you are answering? 
 
 15. Which is the most important part of a letter? 
 
 16. Why is it not desirable to omit words for the sake of brevity? 
 
 17. Why is it not desirable to use "hoping," "trust," or "awaiting" in 
 closing a letter? 
 
 18. What is the proper form for the courteous closing of a business letter? 
 
 19. Can you sign your name by machinery? 
 
 20. Why should the signature be in full and always the same? 
 
 21. When is it desirable to enclose a return stamp in j'our letter? 
 
 22. Why is it not desirable to write letters with a pencil? 
 
 23. What constitutes the best business letter? 
 
 24. What is meant by initiative? 
 
 25. Why should the stenographer know how to dictate a good letter? 
 
 STANDARD EXERCISES 
 
 Writing business letters 
 
 1. Write out an order in the form of a business letter. 
 
 2. Write to a friend giving your reasons for advising him to take a course 
 in office practice. 
 
 3. Write to a friend giving your reasons for advising him to study short- 
 hand and typewriting. 
 
 4. Write to a friend giving the qualities you think most desirable in a 
 private secretary. 
 
 5. Write to a young friend urging him to open a savings bank account. 
 
 6. Write to a young friend in answer to his letter asking for instructions 
 as to how to open a bank account. 
 
CHAPTER IV 
 
 OFFICE REFERENCE BOOKS AND 
 HOW TO USE THEM 
 
 IN ancient times, when any information was required, it was 
 the custom to sit in a conspicuous place and make inquiries 
 
 of passersby. As towns grew in size the town crier was 
 employed to answer questions and make public announcements. 
 When towns became cities, directories replaced the crier. 
 
 The first American directory was compiled in Philadelphia 
 at about the end of the Revolutionary War. Boston did not 
 have one until the year in which the Constitution of the United 
 States was adopted. Streets were not numbered in those days, 
 so well-known landmarks were used to define locations; for 
 example, Federal Street, Boston, was described as "running 
 from Simpson's in Cow Lane down by Rev. Mr. Popkin's Meet- 
 ing House into Milk Street." 
 
 Classification of reference books. In all these stages of 
 development saving time has been the basic motive. Time is 
 money, and many an expense is justifiable if it represents a 
 worth-while saving in time. Directories, dictionaries, guide 
 books, and reference books of one kind or another are essentially 
 time-saving devices, in that they give the desired information 
 quickly, accurately, and briefly. To be able to use reference 
 books to the best advantage, let us first classify them into 
 
 1. Directories 
 
 2. Dictionaries and word books 
 
 3. Books of general information 
 
 The three most useful reference books. There are three 
 books which will be found in nearly every business office. They 
 are the city directory, the telephone directory, and the dic- 
 tionary. And yet few people really know how much valuable 
 
 43 
 
44 OFFICE TRAINING AND STANDARDS 
 
 information each of these books contains, or how to get the 
 information out of the books. Suppose you want to find out 
 where Albert Wallace works, and what his business is. 
 
 Of course if you knew someone who knew Albert Wallace, 
 you might ask your friend about him. But you may never 
 have heard of Albert Wallace. The city directory will not only 
 tell you where Albert Wallace works and what his business is, 
 but also where he lives. Furthermore, the directory will tell 
 you exactly where the streets are that he works and lives on, 
 and also how to get there. 
 
 The city directory. In fact, the city directory not only 
 contains an alphabetical Ust of all persons over 18 years of age 
 who live or work in the city, giving their names and occupa- 
 tions, where they work and where they live; but it also Hsts 
 all the business houses in the city, with the names of the part- 
 ners or officers. There is definite information regarding streets 
 and numbers and how to get to them; local transportation 
 systems; pubUc, semipublic, and private institutions; clubs, 
 museums, churches; so that anyone who knows how to use a 
 directory can in a very short time learn more about the city 
 than some people know who may have lived there for years. 
 
 How reference is made easy. All business directories are 
 arranged alphabetically, and they usually are cross-indexed so 
 that a name or business may be located under several different 
 heads. Of course, it is necessary to know something about 
 the person you wish to locate, how to spell the name, or the 
 location if you wish to know the name, or the business if you 
 wish to know the name or location. 
 
 How to use the city directory. Open the directory in the 
 middle; you will notice two or more columns of names (the 
 Chicago city directory, for instance, has five columns); at the 
 top of each column is printed in black type the name of the 
 first person in that column. The names are all arranged alpha- 
 betically so that you can quickly locate any desired name. 
 If the name you're looking for is "Wallace," turn over the pages 
 of the directory fairly rapidly until you come to names begin- 
 ning with "W"; then turn the pages more slowly until you see 
 at the top of the colunm "Wa," then "Wall," then "Wallace"; 
 
OFFICE REFERENCE BOOKS 45 
 
 run your finger down the column till you come to the name 
 "Albert," and there you will find the information. 
 
 Of course, every name isn't printed at the top of the column. 
 Unusual names like ''Slyde," for instance, might appear only 
 once in the directory; in that case look at the top of the column 
 for the name nearest to the one you are seeking. 
 
 How to use the telephone directory. Suppose the man- 
 ager asked you if you knew how to look up a telephone number. 
 You would probably say, "Why, of course." But there is a 
 wrong w^ay and a right way to look up a telephone number. 
 One manager wanted to find out how many of his employees 
 really knew how to find a telephone number in the directory. 
 Out of ten who tried, only two were efficient. The others 
 floundered around, and while they finally located the correct 
 number, they took three or four times as long as was necessary. 
 You should be able to find any number in 10 seconds ! If it takes 
 longer than that, you are not using the right method. Practice 
 the method given here until you are perfect. 
 
 Anyone who has learned to use a city directory will find it 
 easy to use a telephone directory. The purpose of the telephone 
 directory is obviously to furnish telephone numbers. The use 
 of the telephone itself is described in Chapter V, so we'll simply 
 take up here how to find the number. 
 
 Like the city directory, the telephone directory contains 
 the names of the subscribers arranged in alphabetical order. 
 But instead of a name being printed in black type across the 
 top of each colmnn, there are only two of these "index names" 
 on a page. Both of these names are at the top of the page; 
 one is at the left, the other at the right; the left-hand name 
 shows the first name on that page, and the right-hand name 
 shows the last name on the page. Since these two names show 
 the first and last names on each page, all the other names on 
 the page are between these two. 
 
 For example, suppose you were looking for the name "Wall" ; 
 the first name on that particular page might be "Walker" and 
 the last name "Wallace"; therefore, you would know that the 
 name "Wall" must be on that page, since "Wall" comes after 
 ''Walker" and before "Wallace." 
 
46 OFFICE TRAINING AND STANDARDS 
 
 When you have found the name you're looking for, run 
 your finger over to the right of the column, where there's a 
 number preceded by a name. This name is the exchange dis- 
 trict where the man whose number you're looking up lives, 
 and the number is his number in that exchange. "Franklin 
 5700" means that his telephone is in the Frankhn exchange 
 district and his number is 5700. "Franklin 5700" is, therefore, 
 the number you give the telephone operator. 
 
 The telephone directory also gives the street address and 
 the business. Some very large concerns have what is called 
 a private branch exchange, and their names are printed in 
 capital letters. Usually only one number is given, even though 
 there may be several telephones in use by the concern; that 
 number is used for all departments. 
 
 The classified directories. Practically all city and tele- 
 phone directories contain a classified section where all persons, 
 firms, or corporations conducting business are listed under their 
 business or profession. A great many take advantage of this 
 section by paying something to have their names printed in 
 heavier type than others in the same list. They also find it 
 sometimes pays to be listed under several different headings 
 and also in the advertisers' section. These classifications make 
 it easy to locate quickly any individual, firm, or corporation, 
 and they are also convenient for securing quick service in case 
 of emergency calls. 
 
 How to use the dictionary. In some respects the dic- 
 tionary is one of the most useful books in the office. The 
 stenographer who does not have to use one constantly is indeed 
 rare. Probably the dictionary is used more often as an authority 
 on spelling and pronunciation than for any other purpose. But 
 to get the most value out of the office dictionary requires more 
 than an occasional reference. 
 
 For one thing, to be able to use words with their proper 
 meaning is a faculty that must be cultivated and sometimes the 
 misuse of words may be costly. Indeed, one great lawyer has 
 said that if it were not for the misuse of words, the lawyers 
 would starve. Whether this is true or not does not matter 
 half so much as does your ability to make your meaning clear 
 
OFFICE REFERENCE BOOKS 47 
 
 to those to whom you are writing or speaking. Whenever you 
 are in doubt about the meaning of a word, look it up. If you 
 always take pains to make sure that you are saying just what 
 you mean to say, you will find that you will gradually acquire 
 a most useful habit. 
 
 What you can do with synonyms. There's another prof- 
 itable use for the dictionary which it is well worth while to 
 know about. Nearly every dictionary gives a list of synonyms — 
 words which have almost the same meaning. Suppose, for 
 example, that you are writing a letter or an advertisement, and 
 you aren't quite satisfied with a particular word — either it 
 doesn't mean exactly what you want it to mean, or it doesn't 
 sound right — anyway, you feel sure there must be some other 
 word that will express your thoughts a Uttle clearer, but you 
 can't seem to recall the word. 
 
 Tm-n to the dictionary, and find the word you're using; 
 after the definition you'll see a number of other words which 
 have almost the same meaning as the word you have in mind. 
 Pick out the one that best suits your purpose. If you are 
 not sure that the new word will express your meaning as you 
 want it expressed, look up the definition of that word in the 
 dictionary also; eventually you are sure to get just the word 
 you want for your particular purpose. 
 
 The synonym books. For all ordinary purposes the hst 
 of synonyms given in the dictionary will serve; but some offices, 
 particularly advertising and editorial, require even wider uses 
 of words, and to meet this requirement, books of synonyms 
 have been prepared. These synonym books, of course, give 
 many more synonyms than the dictionary, and writers find them 
 almost indispensable. 
 
 Some special directories. In addition to these three books 
 — the city directory, the telephone directory, and the dictionary, 
 of which nearly all offices have copies, some offices have special 
 directories and reference books. Information about people 
 and their doings, business and its progress, history and its 
 development, and the thousand and one things which are going 
 on all about us, has been compiled into reference books and 
 directories covering nearly every conceivable subject. Ref- 
 
48 OFFICE TRAINING AND STANDARDS 
 
 erence books have become the principal source of information 
 concerning the people living in various communities; their 
 names; the business activities in which they are engaged; 
 then- financial, social, and professional standing; where they 
 live, whether they keep house, board, or have rooms; where 
 they work; and how their names are spelled. 
 
 Directories furnish a fairly complete knowledge of who 
 makes, sells, buys, or trades in practically every line of mer- 
 chandise or produce. They give information concerning all 
 pubHc institutions, such as hospitals, churches, clubs, societies, 
 government departments, officials, buildings, parks, playgrounds, 
 schools, and museums. They list private institutions, such as 
 sanitariums, amusement halls, theaters, and hotels. They locate 
 all transportation facilities, whether by water, rail, cab, or taxi. 
 They direct people how to get to any place by furnishing a 
 complete list of streets; where they begin, end, or cross others; 
 where in every block and between what streets any given number 
 is. A special house directory gives at each number of every 
 street the people living or transacting business there. 
 
 Concerns whose customers are persons of social distinction 
 and wealth frequently find social registers helpful. Most books 
 of this kind contain the names of socially prominent people, 
 arranged alphabetically by name and also by sections. This 
 second arrangement is helpful to exclusive retail shops. 
 
 Then there are directories of manufacturers, with lists 
 classified by products or by states or both; bankers' directories, 
 showing the officers and financial standing of banks throughout 
 the country; partnership and corporation directories. There 
 are directories of trade names, registered and not registered, 
 and their proprietors; lists classified by trades and professions; 
 institutions, like schools and hospitals; foreign business houses 
 and their local offices and representatives; pubhcations of all 
 kinds arranged by towns, which, in turn, are listed by states; 
 manufacturers who advertise, with the names of their advertis- 
 ing managers and their agencies; and a directory of directors, 
 giving the names of du-ectors of corporations. 
 
 Sources of mailing lists. Directories may thus be profit- 
 ably used in compiling lists of special trades or professions; in 
 
OFFICE REFERENCE BOOKS 49 
 
 selecting lists by occupations according to whether they are 
 high-class, medium, or low-class prospects; in making up lists 
 of persons within, say, 10 minutes' walk of a certain estab- 
 lishment; or in correcting the initials, addresses, or occupations 
 of names on maihng lists. 
 
 One firm has even published a directory of mailing lists, 
 giving a description of each list, its size and completeness, the 
 number of names, where it can be obtained, and the price. A 
 mail order house might find a book like this useful. 
 
 How to use a code book. Firms with foreign connections 
 or correspondents also find use for a cable-code book which 
 helps greatly to cut down the expense of cable messages by 
 shortening the number of words required to convey the message. 
 A code book is simply a directory of code words arranged 
 alphabetically, each word being the code for a certain phrase. 
 For example, the word "Dardejante" may stand for "Draft 
 has been presented for payment," and the word "Daricus" may 
 stand for "Draft is correct; please pay." Nearly every kind of 
 message is given in a code book. 
 
 Suppose we desired to send a cablegram to London reading 
 "Merritt Brothers draft has been presented for payment for 
 two hundred dollars. Shall we pay for your account?" If we 
 did not use a code book the cablegram would contain 18 words 
 in addition to the name, address, and signature, which might 
 bring the number of words up to 27. At 31 cents a word, 
 the cablegram would cost $8.37. By using code words we would 
 get this result: "(name) (address) Merritt Brothers Dardejante 
 Morderesti Genageld (signature)," making only eight words, 
 which would cost only $2.48, a saving of $5.89. 
 
 Five special reference books. Among the special reference 
 books there are five which are particularly useful. They are : 
 
 (a) Mercantile rating books 
 
 (b) Atlases and gazetteers 
 
 (c) Railroad guides or pathfinders 
 
 (d) The United States postal guide 
 
 (e) Special bulletins and trade periodicals 
 
 Credit rating books. The mercantile rating book is a 
 book giving the credit ratings of all persons, corporations, and 
 
COLORADO-ORI 
 
 T Brown T. S Gro M 4 
 
 • BurchUl Albert & Bros G S fit Mill D+ IJ 
 
 • Carroll Edgar G S J3 
 
 • Clark Mrs. T. G G S L 3i 
 
 T Dalton John Gro M 4 
 
 '/. Gorman Mrs. Geo Confcc, etc. M 4 
 
 * Hayes Oscar G S 
 
 T Hughes M. P Gro K 3i 
 
 * McEachem Mrs. B G S Cb Milly L 3i 
 
 S McFarlane Andrew Bsmith K 3i 
 
 ♦ O'Brien John G S fls Saw Mill D \\ 
 
 • O'Brien Mrs. Ruth GSJ3 
 
 •/ Shanahan J D Confec, etc L 4 
 
 ORISKA, Kit Carson Co.-3 C 
 
 On C P R— Tel. Ex. Westfield, 5 M— 
 St. John, 19 M 
 
 S Belyea H. R Bsmith M 4 
 
 T Crandall James Saw Mill 
 
 ORTIZ, Conejos Co.— 1 D 
 (R. D. from Bathurst) 
 
 On C 86 G S R — Tel. Stonehaven 
 2 M— Ex. Bathurst, 20 M 
 
 • Comeau C. B G S L 3i 
 
 Lombard & Sons Comn Mers 6b 
 
 Grindstones D + IJ 
 (Br Boston, Mass.) 
 S O'Hearn J. B. Bsmith M 4 
 
 OSGOOD, Weld Co. 
 
 ♦ Richardson Myron G S M 4 
 
 OTIS, Washington Co.— 1 D 
 
 On I C R— Tel. G N W— Ex. Can— 
 —Pop 2.945 
 */ Abraham Theron . . . Fruit fls Confec 
 X Allan Clyde Painter 
 
 • Amy Howard B & S L 3J 
 
 D Anderson, R. G Furn M 4 
 
 T Armstrong Albert Gro G 3 
 
 Arnburg Mrs. Crisella Rest M 4 
 
 Arsenault David Meat M 4 
 
 T Baird fls Sons — V/hol Gro C 1 J 
 
 (Br St John) 
 
 ♦ Bannon M. J G SG3 
 
 3 Bell A. J Fum. etc 3 
 
 I Benson R. M Coal L 3} 
 
 V Bethune Geo Elec Supply M4 
 
 ▲ Blain Miss Evelyn Milly M 4 
 
 ABrander Richard DGG 3 
 
 */ Brightman Henry H Bak L 3 J 
 
 * Brotsky Ludap - - GSM 
 
 OURAY, Ouray Co.— 1 C 
 
 On I C R— Tel G N W— Ex. Cai 
 Jacquet River— Pop 200 
 
 II McKenzie Silas. , Flour 
 
 n McMillan Henry Saw Mill 
 
 • McMillan Lewis G S 
 
 ♦ Windsor David (Mrs. A. I.) G 
 
 OVID, Sedgwick Co.— 3 C 
 (R. D. from Lepreau) 
 On C P R— Tel. Ex. St. Geori 
 
 ♦ Chittick Charles G JS 
 
 », Giles Thos GSN 
 
 * Mulherin Charles GSK 
 
 ~\ Smith Rud6"ph Saw Mill 
 
 OXFORD, UPlata Co.— 3 D 
 
 X, Tel. Ex. Sussex, 7 M — Pop 
 
 S Chapman Peter Carriagemkr N 
 
 "1 Hartt Lyle S&G Mills K 
 
 * Keith R 8s Co GSI 
 
 T Mace Samuel Gro I 
 
 II OldfieldH. S Grist Mill 1 
 
 * Tamlyn H. P GSI 
 
 PADRONI, Logan Co.-I D 
 
 On I C R— Tel. Ex. Petit Rocher- 
 
 Bathurst 
 
 ♦ Doucet Mrs. John P. H G S ^ 
 
 PAJODA, Routt Co.— 2 D 
 
 X. Tel. Ex. Newcastle, 16 M 
 McColm Mollie Fish I- 
 
 POGOSA JUNCTION, Archuleta Co 
 (R. D. to Midland) 
 
 On I C R and N B C 8s R— Tel. M 
 Ex. Can— —Pop 300 
 
 • Allaby Co.. Ltd OS! 
 
 C Campbell Mrs. William Hotel I 
 
 S Carson Roscoe Bsmith I 
 
 Folkins Perry Meat ^ 
 
 C Foohey J. L Hotel & Liv(d) 
 
 * Gallnsher 8b Co G S fls Lbr 
 
 * Harmcr R. P G S Ss Lbr 
 
 S Hem'-, worth P. D Bsmith 
 
 * Howe Walker G S 
 
 S Innis S. N Carriagemkr M] 
 
 S Loughery N. O Liv 
 
 • Myers Alfred G S 8s Lbr 
 
 (• Patriquin R. A Garage J| 
 
 P Reynolds Arthur Creamero 
 
 T Rober tt^on D ouglas.. .,_^. Gro 
 
 FIGURE 14: This page is taken from Dun's Register. Suppose Henry H. Bright- 
 man of Otis, Colorado, should apply to you for credit. To look up his credit rating 
 you first find "Colorado." after that "Otis," and after that "Brightman." After 
 his name appear the symbols L SVi. The key to these symbols is shown on page 51. 
 
 50 
 
KEY TO RATINGS 
 
 Subscribers are urged to consult the latest detailed reports 
 in our possession in every case involving credit. Over 4,000 
 changes are made each business day. 
 
 Left-hand column 
 Estimated pecuniary strength 
 
 Right-hand column 
 
 General credit 
 
 High Good Fair Limited 
 
 Aa 
 
 Over 
 
 $1,000^000 
 
 Al 
 
 1 
 
 H 
 
 2 
 
 A + 
 
 Over 
 
 750,000 
 
 Al 
 
 1 
 
 n 
 
 2 
 
 A 
 
 $500,000 to 
 
 750,000 
 
 Al 
 
 1 
 
 n 
 
 2 
 
 B + 
 
 300,000 to 
 
 500,000 
 
 1 
 
 n 
 
 2 
 
 2\ 
 
 B 
 
 200,000 to 
 
 300,000 
 
 1 
 
 n 
 
 2 
 
 2\ 
 
 c+ 
 
 125,000 to 
 
 200,000 
 
 1 
 
 n 
 
 2 
 
 2\ 
 
 C 
 
 75,000 to 
 
 125,000 
 
 n 
 
 2 
 
 2h 
 
 3 
 
 D + 
 
 50.000 to 
 
 75,000 
 
 u 
 
 2 
 
 2h 
 
 3 
 
 D 
 
 35,000 to 
 
 50,000 
 
 u 
 
 2 
 
 2\ 
 
 3 
 
 E 
 
 20,000 to 
 
 35,000 
 
 2 
 
 2b 
 
 3 
 
 3i 
 
 F 
 
 10,000 to 
 
 20,000 
 
 2i 
 
 3 
 
 3i 
 
 4 
 
 G 
 
 5,000 to 
 
 10,000 
 
 
 3 
 
 3i 
 
 4 
 
 H 
 
 3,000 to 
 
 5,000 
 
 
 3 
 
 3i 
 
 4 
 
 J 
 
 2,000 to 
 
 3,000 
 
 
 3 
 
 3i 
 
 4 
 
 K 
 
 1,000 to 
 
 2,000 
 
 
 3 
 
 3§ 
 
 4 
 
 L 
 
 500 to 
 
 1,000 
 
 
 
 3| 
 
 4 
 
 M 
 
 Less than 
 
 500 
 
 
 
 3i 
 
 4 
 
 Where only a) 
 
 credit rating ap-) 
 
 pears, this line) 12 3 4 
 
 of credit desig-) 
 
 nation appears.) 
 
 (d) Where an italic d in parenthesis precedes a rating, it 
 is an indication that one or more of the partners in the firm are 
 liable in another or other firms, and the responsibility is in 
 that sense divided, thus: (d) B + 1. 
 
 The absence of a rating, whether of capital or credit, indi- 
 cates those whose business and investments render it difficult 
 to rate satisfactorily. We therefore prefer, in justice to these, 
 to give the detailed reports on record at our offices. The rat- 
 ing of branch houses should always be looked up at headquar- 
 ters also. 
 
 FIGURE 15: Here is the key to the ratings given in Dun's Register. You want to 
 find out what L Z^z, the symbols describing Henry H. Brightman's financial condi. 
 tion, mean. By glancing down the column to the left you find that his financial 
 strength is from $500 to $1,000 — and in the right-hand column that his credit is fair- 
 
 51 
 
52 OFFICE TRAINING AND STANDARDS 
 
 firms doing business. These ratings are determined by mer- 
 cantile agencies which make a business of collecting and arrang- 
 ing credit information. 
 
 Since over 90% of the business of our country is said to be 
 conducted on a credit basis, business men can reduce losses in 
 bad debts by eliminating guesswork in granting credit privileges. 
 Every business man naturally wants to keep his credit ratings 
 as high as possible. It is also essential for wholesalers and 
 manufacturers to obtain the most rehable information possible 
 concerning the financial standing and integrity of their cus- 
 tomers and their prospective customers. 
 
 The subscription to the rating books also usually includes 
 a number of special repojts. The reference books are usually 
 issued every three months, but special reports can ordinarily 
 be obtained at almost any time. If a merchant asks a whole- 
 saler to sell him goods on time, the wholesaler obtains a report 
 concerning the amount the merchant has invested in his busi- 
 ness, his estimated wealth, the time engaged in business, and 
 the probabihty of success or failure; if the report is satisfac- 
 tory, the credit is allowed. 
 
 It is often advisable to consult the latest statistics when 
 looking up the rating of any firm, since it is estimated that 
 over 4,000 changes in ratings are made daily by the various 
 mercantile agencies. 
 
 The names in the reference books are arranged alphabetically 
 according to states and cities. If you wish to look up the finan- 
 cial standing of Hiram R. Barton, of Lincoln, Nebraska, you 
 would first find Nebraska and then the city of Lincoln. Oppo- 
 site his name you will see the kind of business and the letters 
 and figures signifying Barton's capital rating and his credit. On 
 page 50 is shown a sample page of mercantile ratings from Dun's 
 Register and on page 51 is the key to the ratings. You will 
 find it interesting and perhaps profitable to practice looking up 
 ratings until you can do it readily. 
 
 Atlases and gazetteers. If you have frequent occasion to 
 look up the geographical location of cities and towns, and such 
 points as relative distances between places, a good atlas and 
 a gazetteer will serve your purpose. 
 
OFFICE REFERENCE BOOKS 53 
 
 The railroad guide. The railroad guide or pathfinder, as 
 it is sometimes called, is another source of valuable information, 
 especially for sales departments where the salesmen's trips must 
 be scheduled and sometimes close connections with trains made. 
 The pathfinder usually contains the running time of trains on 
 all the railroads in the United States; a man in San Francisco 
 could map out a trip clear across the country to Boston, and 
 know just M^hat trains to take at each transfer point, as well as 
 stopovers, before he even started. 
 
 The U. S. postal guide. The last of the special reference 
 books on our list is the United States Postal Guide, published 
 in July of each year by the Post Office Department at Wash- 
 ington. This book, which is kept up to date by monthly supple- 
 ments, contains not only comprehensive information about 
 domestic and foreign mail matter, together with rules and regu- 
 lations governing the various classes of mail matter, but also 
 complete fists of ah the postoffices in the United States, arranged 
 alphabetically by states, by counties, by classes, and by names. 
 
 The monthly supplements contain the latest changes in 
 postoffices and additional information about the postal ser\'ice, 
 particularly with reference to new rufings and changes in the 
 old rules. The guide is used to advantage by most concerns 
 in their maifing and shipping departments, to check addresses, 
 verify postage and to enable them to comply with the require- 
 ments of the Post Office Department. 
 
 Special bulletins and guides. Although we have covered 
 the scope of the principal reference books hkely to be used in 
 business oflftces, nevertheless one extremely valuable source of 
 business information remains to be considered. This source 
 consists of special bulletins, trade, technical, financial, and 
 business periodicals, and various kinds of guides. The special 
 bulletins and guides usually contain current information that 
 is continually changing in character, such as prices of mer- 
 chandise, stock and bond quotations, dividend and interest 
 dates, special and general meetings, steamship saifings, earnings 
 of corporations, and so forth. 
 
 Trade periodicals and business magazines. Each trade 
 has its own periodical, containing the latest news about the 
 
54 OFFICE TRAINING AND STANDARDS 
 
 trade and also any special information that may be of value. 
 One advantage of the trade periodicals is that they enable their 
 subscribers to keep up to date and posted on happenings in 
 their particular trades. 
 
 Then there are general business magazines, which contain 
 material that is not restricted to any special field, but is usually 
 adaptable to any business. A careful study of the best of these 
 periodicals will help to develop many valuable ideas that might 
 otherwise be lost forever. 
 
 One more word about reference books. It is not necessary 
 to know everything, but the more we know the more useful 
 we may become; and the next best thing to knowing anything 
 is to know how and where to find it. There are many ofiice 
 workers who do not know how to use the index in dictionaries 
 and other reference books so as to find quickly the desired word, 
 name, or data. Practice searching for different kinds of in- 
 formation so that you can find what is wanted when it is wanted 
 and you will make yourself a more valuable assistant in any 
 office, or indeed, in many other situations. 
 
 STANDARD QUESTIONS 
 
 Sources of information 
 
 1. Who compiled the first unabridged dictionary in the United States? 
 
 2. Is the dictionary a necessary office reference book? 
 
 3. "Wliat kind of information is found in a thesaurus? 
 
 4. ^\^lat kind of information is found in a gazetteer? 
 
 5. What kind of information is found in a year book? 
 
 6. ^\^lat kind of information is found in a Who's \Mio? 
 
 7. What kind of information is found in business journals? 
 
 8. What kind of information is found in a credit rating book? 
 
 9. ^\^lat kind of information is found in an encyclopedia? 
 
 10. \Miat are synonyms? Give examples. 
 
 11. WTiat are homonyms? Give examples. 
 
 12. What are antonyms? Give examples. 
 
 13. \\niy should we be strictly accurate in the use of our language in 
 business transactions? 
 
 14. How would we find out where a prominent man was born and what 
 he did? 
 
 15 How would you find out the fastest route for sending mail? 
 16. How would you find out the best express company by which to make 
 a shipment? 
 
OFFICE REFERENCE BOOKS 55 
 
 17. How would you find out the best freight route for shipping goods? 
 
 18. How would you find out about the financial standing of a customer? 
 
 19. In what way is a gazetteer of use in an office? 
 
 20. Of what value is an atlas in an officef 
 
 21. Why is it important to know where raw materials are produced? 
 
 22. Why it is important to know the principal manufacturing centers? 
 
 23. Why is it important to know the chief shipping centers? 
 
 24. In what way is broad general information of value? 
 
 25. How would you find in an atlas the location of a city? 
 
 26. Where would j^ou find the leading facts about a city? 
 
 27. Where would you look for the biography of a prominent politician? 
 
 28. How would you use the index in an encyclopedia? 
 
 29. What are the two largest credit rating agencies of the United State.-? 
 
 30. How does the country merchant secure a good credit rating? 
 
 31. Why is it important for any merchant to have a good credit rating? 
 
 32. Why is it important for the wholesale merchant to know the capital and 
 credit rating of customers? 
 
 33. What merchants have no capital or credit rating? 
 
 34. Can the country merchant without a capital or credit rating buy 
 goods from the wholesale merchants? 
 
 35. Under what conditions do mercantile agencies furnish private reports 
 on ratings? 
 
 36. How do merchants in country towns and cities get the credit standing 
 of private individuals? 
 
 37. About what percentage of business is transacted on a credit basis? 
 
 38. Can all business be conducted on a cash basis? 
 
 39. What is the highest rating a firm can have according to the Dun key? 
 
 40. What is the lowest rating a firm or individual can have? 
 
 41. What would the rating "2" indicate? 
 
 42. What would the rating "A 1 " indicate? 
 
 43. What would the rating "(d) B+1" indicate? 
 
 44. How would you find a name in a credit rating book? 
 
 45. Does the commercial agency guarantee that a man is honest or will 
 pay his bills? 
 
 46. Does the agency guarantee that a man is worth so much money? 
 
 47. Does the credit man of a wholesale house depend entirely on the 
 report of a commercial agency in deciding upon the credit of a customer? 
 
 48. What are Dun's notification sheets? 
 
 STANDARD QUESTIONS 
 
 How to use directories 
 
 1. State the object of any directory. 
 
 2. Is the directory a public convenience or a necessity? 
 
 3. In early days before directories were used how did the people obtain 
 desired information? 
 
56 OFFICE TRAINING AND STANDARDS 
 
 4. What was the first city directory published in the United States? 
 
 5. WTiat information is contained in a directory? 
 
 6. How is the directory of value when you wish to buy something? To 
 sell something? To call a doctor? 
 
 7. In case the water pipes spring a leak how would you find the nearest 
 plumber? 
 
 8. How would you locate by telephone a person at his place of work 
 when he had no telephone? 
 
 9. How would you find what cross street is nearest a given address? 
 
 10. How would you find the location of a prominent office building? 
 
 11. How would you locate a small corporation? 
 
 12. How would you locate the business address and firm name if you 
 knew a person's name? 
 
 13. How would you find the name of the person if you knew the street 
 number? 
 
 14. How would you find out the occupation and whether a person was 
 rooming, boarding, or keeping house? 
 
 15. How would you find out where to go to pay your taxes? To record a 
 deed? To safely deposit your money? To buy a railroad ticket? To rent an 
 apartment? To ship goods by express or freight? 
 
 16. If you came into a town as a stranger where would you get access to a 
 d' rectory? 
 
 17. How would you find out where to rent a room near a school? 
 
 18. How would you find out the location of the bank nearest to your 
 place of residence? 
 
 19. How would you locate the nearest church to your place of residence? 
 
 20. How would you find out the salary of the mayor of your city? 
 
 21. How would you find out the address of the Board of Health? Board 
 of Education? Board of Aldermen? 
 
 22. How would you find out how many railroads entered your city? 
 
 23. What is the value of classified business directories? 
 
 24. Of what value would a classified directory be if you were marketing a 
 special feed suitable for horses? 
 
 25. If you were marketing a high-grade article how would the directory 
 aid you in obtaining a mailing list? 
 
 26. Should you wish to reach the medium class of trade how would the 
 directories be of service? 
 
 27. Of what value are directories several years old? 
 
 28. Why should the directory in general use be up to date? 
 
 29. How are directories of use in correcting mailing lists? 
 
 30. How could you obtain a list of individuals who were within a five 
 minutes' walk from a certain ofl^ice? 
 
 31. Of what special use are directories in a lawyer's office? 
 
 32. Of what special use are directories in an instalment house office? 
 
 33. How could you find the name of a customer whose name was lost or 
 could not be read, if you knew the city and street number? 
 
OFFICE REFERENCE BOOKS 57 
 
 34. Suppose the state was missing but you knew the name of the city was 
 Portland; how would you find the address? 
 
 35. How would you find out the best transportation service in a city? 
 
 36. What are the advantages of having special corporation, professional, 
 institutional, and social directories? 
 
 37. Why is not a telephone directory as serviceable as a general city 
 directory? 
 
 38. What use would you make of directories in case of accident, fire, or 
 burglary? 
 
 39. What information is found in Blue Books? 
 
 40. What use cou'd you make of directories in selecting a location for a 
 tea room? 
 
 STANDARD EXERCISES 
 Suggestive search questions 
 1 WTiat were some of the early kinds of manufacturing? 
 
 2. What has been the influence of the invention of machinery? 
 
 3. What has been the nfluence of the increase in population? 
 
 4. What has been the influence of the improvement in transportation? 
 
 5. WTiat factories are usuaUy located near the raw material? 
 
 6. What factories are usually located near the distribution market? 
 
 7. What factories import their raw material? 
 
 8. Why does the United States import her raw silk while Italy grows 
 most of hers? 
 
 9. Why do we ship iron ore from the mines instead of manufacturing 
 steel products at the mines? 
 
 10. Why does Australia not manufacture much steel when she has plenty 
 of iron ore and fuel? 
 
 11. Why does England import her wool and cotton? 
 
 12. Why do we have more flour mills than sugar mills when we import 
 so much sugar? 
 
 13. Why is it an advantage to replace wooden cars and bridges with steel 
 and concrete? 
 
 14. Why is New Jersey an important manufacturing state when it has 
 little fuel or water power, and imports most of the raw material used? 
 
 15. Why are there more important cities on the Atlant'c coast than on 
 the Pacific coast of the United States? 
 
 16. Why are there more cities on the United States side of the Great 
 Lakes than on the Canadian side? 
 
 17. Why does West Virginia rank low as a manufacturing state when it 
 produces much coal, iron ore, natural gas, and petroleum? 
 
 18. Why is three-fourths of all the manufacturing of the United States 
 carried on east of the Mississippi River and north of the Mason and Dixon line? 
 
 19. Which is the most important industry of the United States? 
 
 20. According to value of products, what is the leading manufacturing 
 industry of the United States? 
 
68 OFFICE TRAINING AND STANDARDS 
 
 21. What industry has showTi the largest percentage of increase in busi- 
 ness during the past year? 
 
 22. Are there greater business opportunities in the manufacturing or mer- 
 cantile lines in the United States? 
 
 23. Why does South Africa do little manufacturing? 
 
 24. Why are wages lower in England than in Canada? 
 
 25. Could a manufacturer produce cheaper goods in a rich country than 
 in a poor one? 
 
 26. Compare the importance of water power and coal in the development of 
 manufacturing in New England and Pennsylvania? 
 
 27. Why is water power likely to increase in importance? 
 
 28. Is the profit-sharing plan for employees likely to produce greater 
 efl&ciency in the working force? 
 
 29 Why does the average person stand a better chance to succeed in 
 business than in a profession? 
 
 30. What are some of the advantages of piece work? 
 
 31. What are some of the advantages of cooperation? 
 
 32. Should there be a struggle between capital and labor? 
 
 33. What is the greatest manufacturing country of the world? 
 
 34. WTiat country manufactures the best linen? 
 
 35. What country manufactures the best leather? 
 
 36. "What country manufactures the best cheese? 
 
 37. What country manufactures the best dyes? 
 
 38. What country manufactures the best china? 
 
 39. What country manufactures the best cutlery? 
 
 40. What country manufactures the best paper? 
 
 41. What country manufactures the best wine? 
 
 42. WTiat country manufactures the most sugar? 
 
 43. What country manufactures the most woolens? 
 
 44. WTiat country manufactures the most silk? 
 
 45. What country manufactures the most cotton? 
 
CHAPTER V 
 
 USING THE TELEPHONE AND TELEGRAPH 
 TO BEST ADVANTAGE 
 
 SCIENCE has placed at our disposal two great time savers— 
 the telephone and the telegraph. Nearly every business 
 office has a telephone, and the telegraph is often used 
 where the expense of telephoning would not be warranted. 
 The telephone gives almost immediate communication, while 
 the telegraph is a Uttle slower, but not quite so costly for long 
 distances. To learn how to make the best and most profitable 
 use of each of these devices, when to use the one and when to 
 use the other, or when not to use either, we will take up each, 
 starting with the telephone, and beanng in mind that the object 
 in both cases is to save time. 
 
 Which should be used? It costs money to use either the 
 telephone or the telegraph. If the time saved is not worth 
 the cost, then it is not profitable either to telephone or telegraph. 
 This refers more particularly to long distance telephone calls 
 than to local calls, but it is well worth bearing in mind at all 
 times. It takes only 10 dimes to make a dollar and every dime 
 saved represents 10% on each dollar of capital invested. 
 
 Since the main object of all business is to make a profit, 
 all unnecessary expenditures must be carefully watched, and 
 the telephone and telegraph furnish an easy way of spending 
 money unprofitably. But where the sHghtest doubt exists as 
 to whether to telephone or to telegraph, it is better to decide 
 in favor of the telephone every time. 
 
 The proper way to telephone. There are, however, other 
 ways of saving time in using the telephone than the mere anni- 
 hilation of distance. Considerable time may be saved by know- 
 ing how to use the telephone properly. In the previous chapter 
 
 59 
 
60 OFFICE TRAINING AND STANDARDS 
 
 we have learned how to find the telephone number. In using the 
 telephone, therefore, we have only three things to consider — 
 the use of the instrument, making a call, and answering a call. 
 
 In using the instrument, lift the receiver from the hook 
 and place it closely against your ear; put your lips directly in 
 front of and close to the mouthpiece of the transmitter, and 
 speak in a moderate tone of voice, enunciating your words 
 distinctly. Do not talk fast. 
 
 To make a telephone call take the receiver from the hook 
 and place it at your ear. The operator will say: "Number 
 please?" Give the exchange name and number of the sub- 
 scriber w'anted and the operator will repeat them to avoid 
 mistakes. Remain with the receiver at your ear until an answer 
 is received. This courtesy is due the operator. 
 
 If the desired line is busy, the "busy" signal (an interrupted, 
 buzzing sound), or the operator, will notify you of that fact. 
 This means that the Hne called for is connected with some other 
 line. Hang up the receiver and wait a few minutes before 
 trying that number again. 
 
 How to call a number. In giving the number to the 
 operator, state the name of the exchange first, and then the 
 number, like this: Franklin 5700 (FrankUn, five, seven hundred). 
 Each figure of the number should be spoken distinctly, making 
 a pause after the name of the exchange, and after the first two 
 figures, like this: "Lincoln, two three, four six" (Lincoln 2346). 
 Where the number ends in two zeros, use the word "hundred," 
 as above; where it ends in three ciphers, use the word "thou- 
 sand," as "Main, three thousand" (Main 300(t). 
 
 Your object in making these pauses is to help the operator 
 make the connection more quickly. The first tw^o numbers 
 represent the number of the switchboard, and the last two 
 numbers represent the number on that switchboard. In Lincoln 
 2346, the subscriber's telephone is number 46 on switchboard 
 number 23 in the Lincoln exchange. 
 
 Speaking the numbers this way also helps you to memorize 
 the numbers themselves, since it is much easier to carry two 
 numbers of two figures in your mind than one number of three 
 or four figures. 
 
FIGURE 16: This is the way they telephoned in 1879. This switchboard is 
 one of the first which Alexander Bell estabHshed in New York City. ' 'A crank 
 who says he can talk through a wire," is the way the newspapers described him then. 
 
 FIGURE 17: This modern telephone exchange' doesn't look very much like the 
 one shown at the top of the page. You will notice that in this photograph there is 
 not a man or boy in the room, while in 1879 there were no women operators at all. 
 
 61 
 
FIGURE 18: The young woman shown FIGURE 19: Hold the receiver firmly 
 
 here operates this switchboard in addi- to the ear with the left hand. Leave 
 tion to doing stenographic work. the right hand free to take notes. 
 
 FIGURE 20: Here are four devices for interhouse communication. Name each 
 
 one that is shown in the picture and tell how it is used. Describe in a few words- 
 
 just what the man is doing and why you think he is doing it. 
 
THE TELEPHONE AND THE TELEGRAPH 63 
 
 How to answer the telephone. In answering telephone 
 calls do not say "Hello," but give your name or the name of 
 your firm, or both, such as "Berkeley and Company, Lee talk- 
 ing"; or "Shipping Department." Some firms ask their 
 employees in answering calls to give simply the telephone num- 
 ber. Whatever way the manager instructs should of course 
 be followed, the object always being to save time, both yours 
 and that of the person calling. 
 
 In the front part of the telephone directory are given addi- 
 tional suggestions for using the telephone, as well as for making 
 long distance calls, and you should familiarize yourself with this 
 information, so that you can use it when needed. 
 
 Answering calls for your employer. In many small 
 offices one person may handle all the incoming telephone calls. 
 That person may have to give information requested over the 
 telephone, or she may have to "relay" the calls to others in the 
 office. Many executives dislike to be interrupted in their work, 
 and they instruct their assistants not to disturb them unless 
 the call is really important. The assistant often has to decide 
 whether or not she shall call her employer to the telephone. 
 
 In one office the assistant first finds out the name of the 
 caller and the nature of his business, and then decides whether 
 it is important enough to let him talk with the manager. Very 
 often she can handle the business herself, and her employer 
 much prefers that she should. It saves his time and thereby 
 makes her much more valuable to him. 
 
 Handling interhouse calls. Many larger offices having 
 numerous telephones handle all calls, both within the house 
 and outside, through a central switchboard which may be 
 small enough for a stenographer to handle, or large enough to 
 be called a "private branch exchange," with several operators. 
 A central switchboard like this makes it possible for the inter- 
 house calls to be handled expeditiously and at the same time 
 permits a control on the outside calls. 
 
 Two other methods of interhouse communication are worthy 
 of mention. One of them is somewhat like the telephone, 
 except that it is much more sensitive, and does not require any 
 "central" operator. In any dictograph system, as one of 
 
64 OFFICE TRAINING AND STANDARDS 
 
 these methods is called, there are two or more "stations," each 
 station being a complete instrument, which looks something 
 like a box. One of the advantages of the dictograph is the 
 ability to speak in a natural tone of voice without holding the 
 receiver to the ear. Of course it is limited to interhouse use 
 and is much more expensive than the telephone. 
 
 One way of getting confidential information. Some- 
 times there are occasions when it is desirable to get information 
 without using the telephone, or without divulging the fact that 
 you are getting the information. In some banks, for instance, 
 if you present a check to be certified, perhaps you will notice 
 that the teller goes to a corner of his cage and makes a notation. 
 Then he prepares one or two forms to sign and after a few min- 
 utes he goes to the corner again and looks at what is written 
 there. He proceeds next to certify your check, or to tell you 
 that he cannot certify it. 
 
 What the teller did was to write on the telautograph, an 
 electric instrument which transmits the actual writing to another 
 department of the bank, where your account was looked up, to 
 see if your balance was large enough to permit him to certify 
 your check, or obtain any other interesting information. 
 
 How the telegraph facilitates business. While the tele- 
 phone has become the personal servant of business, the telegraph 
 has also developed rapidly, and the combination of the two 
 kinds of communication makes possible the rapid and intelligent 
 interchange of information of all kinds. 
 
 What it costs to telegraph. Two particular points of dis- 
 tinction stand out between the telephone and the telegraph. 
 Conversation over the telephone may be more or less unlimited. 
 You may ask or answer as many questions as you like, and the 
 connection is practically instantaneous. An ordinary business 
 conversation that lasts over 15 minutes is exceptional. 
 
 With the telegraph, however, the message is first written, 
 and then sent over the wire, and you must wait for a reply. 
 Each word of a telegram, except the addi-ess and signature, is 
 charged for, although any number of words up to 10 may be 
 sent for a specified charge. Each word over 10 is charged for 
 at so much a word. 
 
THE TELEPHONE AND THE TELEGRAPH 65 
 
 Right here is the first opportunity to stop unnecessary tele- 
 gram costs — whenever possible, without sacrificing the sense, 
 limit the number of words in the message to 10. The address 
 and signature are not counted in a telegram, as in a cable mes- 
 sage. Of course the longer the distance, the greater the cost, 
 and the proportionately greater saving by limiting the number 
 of words. Few ordinary messages really require more than 
 10 words. Unnecessary and meaningless words, such as "a" 
 and "the" and "are," may often be omitted. 
 
 Writing out your telegram. Perhaps the easiest way to 
 prepare a telegram is to write out what you want to say, and 
 then cross out such unnecessary words as do not affect the 
 meaning. For instance, suppose we have just received a request 
 from one of our largest customers in a city 1,000 miles away 
 for immediate specifications and quotations on some of ovr 
 products. It happens that one of our salesmen is near that 
 city but does not expect to go there until next week. 
 
 We have a choice of two actions — either to "wire" our 
 quotations direct to the customer, or to wire our salesman to 
 stop work where he is and go to the city where our customer 
 is located. By calling personally the salesman gets the oppor- 
 tunity to answer any questions the customer may wish to ask, 
 and he can also help the customer in ordering. 
 
 Accordingly we decide to wire the salesman. We could 
 probably write something like this: 
 
 "Please leave your work in Albany and go to New York 
 immediately, and call upon Mr. D. E. Peterson, who wants 
 us to give him specifications and quotations on our numbers 
 8, 23, and 35." This makes 37 words. By cutting out un- 
 necessary words we can reduce this to : 
 
 "See Peterson Newyork immediately numbers eight twenty 
 three thirty five." This makes exactly 10 words. 
 
 Notice particularly that "Newyork" is counted as one word 
 and should be so written in all telegrams. Numbers also should 
 be spelled out; each digit of a number is counted as one word: 
 "10,000,000" would be counted as eight words, while "ten 
 million" is only two words. Each hyphenated word should be 
 written as one word, without the hyphen. 
 
euu Of uMiKi mtitit | 
 
 mituii 
 
 X 
 
 UT ima 
 
 
 ■iiirt maua 
 
 
 mar unit 
 
 
 sfilP 
 
 WESTER UNION 
 
 MARCH 15, 1919 
 
 S L DSAN 
 ORAKD HOTKL 
 ALBAHY H T 
 
 8ES PETERSON NETTORK IiaffiDIATZLT BOlffllRfi EIGHT TWEIITY THREE 
 
 TBIRIT FIVE 
 
 FIGURE 21: This is how the telegram on page 65 is prepared for sending to the 
 
 telegraph office. You will notice that it is typed entirely in capitals, that New York 
 
 is written as one word, and that the punctuation is omitted. 
 
 For Mr. 
 Mr. 
 
 MEMORANDUM OF TELEPHONE CALL 
 _Date 
 
 .Time. 
 .of_ 
 
 left this message: 
 
 His number is. 
 
 Please call him at. 
 
 Signed. 
 
 FIGURE 22: A memorandum s'.ip like this for noting down telephone messages 
 helps to make sure that all the desired information about any call is given. Some 
 offices have the slips printed on pink paper. Can you think of any reason for this? 
 
 66 
 
THE TELEPHONE AND THE TELEGRAPH 67 
 
 How one manager handles telegrams. One office man- 
 ager makes it a rule that all telegrams sent out from his office 
 shall be typewritten in capital letters without any punctuation 
 or sentence spacing; his reason for this is that the telegraph 
 company writes all telegrams that way and by writing his 
 telegrams the same way, he can see just how his telegrams are 
 going to look when they are received at the other end. "Often 
 the omission of a period or comma will change the entire mean- 
 ing of a sentence," he says, "and I'd rather find it out before 
 I send a telegram than afterwards." 
 
 Another manager uses the word "stop" when he finds it 
 absolutely necessary to use periods; of course this adds one 
 word to the cost of the telegram, but he says it sometimes pays. 
 
 Cipher and code words. Improper grouping or mu- 
 tilation of words is not permitted, although groups of figures 
 or letters which are not dictionary words of one of the eight 
 specified languages will be counted at the rate of five characters 
 to a word. 
 
 For example, "ALRIGHT" would be counted as two words 
 because they are improperly combined, while "navy-yard," 
 "cannot," or "can't" are each counted as one word. 
 "HAVYU" would not be permitted or would be counted as 
 two words because it is purposely mutilated for the purpose 
 of gaining a word. "Cipher" or "code" words may, how- 
 ever, be used for regular telegrams, but not for day or night 
 letters, which will be discussed later. "ITISI" would be 
 counted as three words, while "SIITI" could be used as one 
 cipher word and might mean "Your order was shipped today." 
 
 Many firms issue code books or sheets in which their prod- 
 ucts are designated by code words. For example, an automobile 
 manufacturer designates a "rear axle left housing nut bolt 
 No. 352" by the code word "EEM" while "DECEIVABLY" 
 means: "Ship immediately by express prepaid." The private 
 code insures secrecy, since only those having copies of the key 
 can read the message. Among the universally used code sys- 
 tems are ABC, Lieber's, and the Western Union. 
 
 How to make your message clear. It may be well to 
 remember that it is not economy to sacrifice clearness for brevity. 
 
68 OFFICE TRAINING AND STANDARDS 
 
 If your message isn't clear, add enough words or change it until 
 it is clear. Otherwise you may be simply throwing away not 
 only the cost of the telegram, but also the cost of possibly two 
 more telegrams — one from your salesman asking for more 
 information, and your answer to him. 
 
 What we have studied thus far applies practically to so- 
 called "regular telegrams," or ''fast day messages," as the 
 telegraph companies call them. There are three other kinds of 
 telegraphic messages which may be used — the "night message," 
 the "day letter," and the "night letter." Each of these has 
 its uses and often one of them will serve the purpose just as 
 well as a "regular telegram." 
 
 Night messages and day letters. The "night message" 
 is the same as a regular telegram, except that it is sent during 
 the night, and delivered the following morning, for a lower 
 rate for ten words than a regular telegram. For 13-^2 times the 
 cost of a regular telegram of 10 words you can send a "day 
 letter" of 50 words or less. 
 
 This leeway of 50 words makes it possible to make our 
 message longer than if we used only 10 words; on the other hand, 
 the day letter is not as fast as a regular telegram. The regular 
 telegram is usually transmitted as soon as received, while the 
 telegraph company agrees to send the day letter "some time 
 during the day." This enables the telegraph company to keep 
 ts wires busy during what might otherwise be slack periods. 
 
 Ordinarily a day letter is only about two or three hours 
 slower than a regular telegram. If, for instance, a telegram 
 was sent from Chicago to Boston, leaving Chicago at 9 a. m., 
 it might be delivered in Boston within half an hour, while a 
 day letter sent at the same time might not reach Boston before 
 11 or 12 o'clock, and if the wires between Chicago and Boston 
 were unusually busy, the day letter might not get through 
 before 3 or 4 o'clock. Delays like this are, however, said to 
 be rare, except in severe weather. 
 
 Night letters. A "night letter" of 50 words or less may 
 be sent for the same cost as a regular telegram of 10 words, the 
 telegraph company agreeing to deliver the message before 12 
 o'clock the following noon. Similar considerations apply to 
 
THE TELEPHONE AND THE TELEGRAPH 69 
 
 night letters as to day letters. The messages are sent "some 
 time during the night," when the wires are least busy. 
 
 Although the company does not agree to deliver a night 
 letter before 12 noon the next day, usually a night letter from 
 Chicago to Boston, for instance, would be delivered in Boston 
 about 7 or 8 in the morning, or on the first mail in the morning. 
 Needless to say, the telegraph companies have built up a profit- 
 able business out of night letters and day letters, at the same 
 time benefiting their patrons. 
 
 Which kind of message to use. Just which kind of mes- 
 sage to use depends largely on the urgency of the message. If 
 your message required an immediate reply, of course you would 
 use a regular telegram. If you didn't require an immediate 
 reply but simply wanted an answer during the day, a day letter 
 might serve; and if you didn't need an answer the same day, 
 but couldn't wait for the mails, you could use a night letter. 
 
 From many postofhces there are no Sunday deliveries of 
 mail. If you were planning to leave town Saturday night on 
 an extended trip and found Friday that you had to have certain 
 information from your Boston office, you would probably send 
 a day letter to your Boston office; they would reply with a 
 night letter, which would reach you Saturday morning. If 
 you had written, the letter could not have reached Boston in 
 time to get any kind of reply back to you before you left town 
 Saturday night. 
 
 If you didn't reaUze until Saturday morning that you had 
 to have the special information, then you would have sent a 
 regular telegram and probably would receive either a day letter 
 or a regular telegram in reply, depending upon how long it 
 took to look up the information. 
 
 Long distance messages. While the telegraph is used 
 for continental long-distance communication, when we wish to 
 wire business men in London or other foreign places it is neces- 
 sary to use cable service or the wireless, which has been developed 
 very rapidly. The rates for ''marconigrams," as the wireless 
 messages are called, are a little less than for cablegrams. 
 
 Cables and cable messages. There are four kinds of cable 
 messages: full rate, deferred half rate, cable letters, and week- 
 
70 OFFICE TRAINING AND STANDARDS 
 
 end letters. The full rate cablegram is transmitted without 
 delay. The deferred half rate cablegram is usually transmitted 
 in order, but it is subject to being deferred in favor of full rate 
 messages for not over 24 hours. 
 
 Cable letters perform a function similar to that of day and 
 night telegraphic letters — the sending of a longer message at a 
 lower rate, subject to delivery at the convenience of the cable 
 company within 24 hours. Week-end cable letters are similar 
 to cable letters except that the rate is slightly lower and the 
 message must be filed before midnight Saturday for delivery 
 Monday morning. 
 
 In the lesson on directories we learned how to write cable- 
 grams in code. As with telegrams, only regular full rate cable- 
 grams may be written in code. 
 
 Cable and wireless addresses. In this country there is no 
 charge for the address, date, and signature in telegrams unless 
 extra words are included; but in cablegrams and marconigrams 
 it is customary to charge for every word, so the messages are 
 further abbreviated by the use of cable addresses. 
 
 For example, if a cable is sent to the Commonwealth Edison 
 Electric Light and Power Company of New York, the full 
 address would be counted as eight words. The company might 
 adopt a cable address such as "CEDELCO" which is made 
 up from parts of the company name. If no other firm had 
 adopted this name it could be registered and accepted as the 
 address of that particular company. Cables addi-essed to 
 "CEDELCO, NEWYORK" could be delivered easily and 
 would be counted as two words instead of eight. 
 
 Sometimes two firms doing a large amount of cable business 
 with each other will adopt a "reversible cable address," so that 
 each firm will address the other by that word and they will 
 know by whom the message was sent as soon as they receive it. 
 It is not necessary in that case for either to sign their message. 
 You can easily see that this would mean a considerable saving 
 in the course of a few years. 
 
 Transferring money on short notice. One really impor- 
 tant service performed by the telegraph and cable companies 
 remains to be considered — the transfer of money by telegraph 
 
THE TELEPHONE AND THE TELEGRAPH 71 
 
 or cable. Occasions often arise when it is necessary to pay 
 money at some distant point upon very short notice, so short 
 that it would be obviously impossible for either the mail or the 
 express to reach that point in time. Resource must therefore 
 be had to the ''wire" companies, who will arrange for the imme- 
 diate transfer of funds from any part of the world to any other 
 part at a relatively low cost. 
 
 The rates vary according to the distance, since the regular 
 rate for a 15- word message is added to the transfer rate, which 
 runs from 25 cents for $25 to 85 cents for $100, with a rate 
 of 25 cents for each additional $100 up to $3,000, and 20 cents 
 for each additional $100 above $3,000. 
 
 This gives an opportunity for paying premiums, taxes, fines, 
 assessments, or mortgages before a fixed time limit expires. 
 A deposit is often required to guarantee a purchase, sale, con- 
 tract, or advertisement. Travelers and salesmen require extra 
 funds on short notice, and there are many other ways in which 
 business is facihtated and the public acconmiodated by these 
 telegraphic transfers of money. 
 
 Differences in time when telegraphing. When transfer- 
 ring money at a specified time, or when important business 
 transactions must be accepted or closed before some fixed date, 
 it is necessary to know the difference in time between the two 
 places, especially if they are far apart. Since the earth rotates 
 on its axis once in 24 hours and there are 360° in a circle, the 
 sun seems to travel 15° in each hour of time, which makes a 
 difference of one hour with each 15° of longitude. If a message 
 is started at 3 p. m. in San Francisco it would reach New York 
 instantly, but the offices there would all be closed for the day, 
 because the time in New York is three hours ahead of San 
 Francisco time. If a cablegram leaves New York for London 
 at 3 p. m. it would be 8 p. m. when it arrived in London, which 
 is about 75° east of New York. 
 
 If you should start a wireless message from a steamer in 
 the Pacific ocean just east of the international date line at 
 noon on July 1, it would reach San Francisco about 4 o'clock 
 in the afternoon; New York at 7 o'clock; London at midnight; 
 Constantinople at 2 o'clock the next morning; Manila at 8 
 
72 OFFICE TRAINING AND STANDARDS 
 
 o'clock the next morning, and it would reach a steamer just 
 west of the date line at noon of July 2. If your steamer now 
 crosses the date Hne going west you will gain a day in a second. 
 Therefore, if you wish to send money by cable from San 
 Francisco and have it in Manila on July 2, you must send it 
 on July 1, or it will arrive a day too late. 
 
 You can easily calculate the difference in time between 
 two cities by finding the difference in degrees and dividing that 
 by the number of degrees in an hour of time, or you can obtain 
 from the telegraph or cable company a table showing the differ- 
 ence in time between the important cities of the world. 
 
 TELEPHONE STANDARDS 
 
 How to use the telephone 
 
 1. Before calling for a number consult the directory. There are over 
 500,000 numbers in some directories. Don't try to remember all of them. 
 
 2. You can save time in looking up numbers if you make a list of the 
 numbers you call most frequently and keep it near the telephone. 
 
 3. Speak into the transmitter, not at it or at the ceiling. 
 
 4. Keep your voice below your ordinary pitch rather than above it. 
 
 5. If you can't be understood, try to speak more slowly and distinctly. 
 
 6. Listen when the operator repeats the number after you and see that 
 she gives it correctly. 
 
 7. Do not say Central 2978 if you mean 2987. 
 
 8. Say two-nine, eight-seven — not twenty-nine eighty-seven, or two 
 thousand nine hundred eighty seven. 
 
 9. Say four, four-four — not four double four or four forty-four. 
 10. Say two-one, one-0 — not two one ten. 
 
 IL Say three hundred— not three double O or three 0. 
 
 12. Say five thousand — not fifty double O or five 0. 
 
 13. Say three, five hundred— not thirty-five double or thirty-five 
 hundred. 
 
 14. Don't hang up the receiver when you get the wrong number. 
 
 15. Move the receiver hook slowly up and down to attract the operator's 
 attention and then give her the right number. 
 
 16. If you wish to make an emergency call and don't know the number, 
 simply say you want to report a fire or you want to get a policeman. 
 
 17. No charge is made for emergency calls. 
 
 18. In answering the telephone, do not say "Hello." It is a waste of your 
 time, and the time of the person calling you. 
 
 19. Introduce yourself by giving your number, or your firm name and 
 then your name. 
 
 20. Don't give any information until you know to whom you are talking. 
 
THE TELEPHONE AND THE TELEGRAPH 73 
 
 2L Don't trust your memory in receiving messages but always have a 
 pencil and pad at hand for taking notes, 
 
 22. When there is a call for a member of the office force who is absent, 
 secure the name and number of the person calling and also the message if pos- 
 sible. It is a good idea also to note the hour the call was received. 
 
 23. If possible without being discourteous, find out what is wanted before 
 connecting a call with the manager. Perhaps you can answer the question and 
 save the manager's time. 
 
 24. Don't get angry. It is unbusinesslike. Besides you may be the one 
 who is to blame. 
 
 25. A well-modulated, pleasing voice, tact, and good judgment will help 
 to win friends for your employer and promotion for yourself 
 
 26. Don't do your visiting over the telephone during office hours. 
 
 TELEGRAPH STANDARDS 
 
 Writing, sending, filing, and receiving telegrams 
 
 1. The telegraph is less expensive than the telephone for long distance 
 communication. 
 
 2. The cost of a telegram depends on the number of words in the message. 
 
 3. Each figure and punctuation mark is counted as one word. 
 
 4. Spell out all numbers; it usually costs less. 
 
 5. Quotation marks and parenthesis are counted as one word. 
 
 6. Omit the complimentary close and the saluation in telegraph and 
 cable messages. 
 
 7. Omit words that do not help make the message clear. 
 
 8. Abbreviations in common use, such as c. o. d., f. o. b., o. k., %, a. m., 
 and p. m. are each counted as one word and should be so written: cod, fob, ok, 
 %, am, pm. 
 
 9. Make your telegram brief, but never sacrifice clearness to brevity. 
 10. If desired, messages may be "repeated back" for one-half of the 
 
 rate for telegrams, or one-fourth of the full rate for cablegrams. 
 
 n. Repeating the message helps to insure correct transmission, but no 
 guarantee of accuracy is given by the telegraph or cable company. 
 
 12. It may take from two to four hours to get a reply to a message if 
 there is a large amount of business ahead of j^our message. 
 
 13. Government messages have priority in their transmission over all 
 other messages. 
 
 14. A special government rate is made on the transmission of all weather 
 bureau reports. 
 
 15. The use of ciphers and codes reduces expense and assures secrecy. 
 
 16. The use of a code is permissible in day and night telegrams and in 
 cablegrams but not in day and night letters, deferred cablegrams, cable letters, 
 and week-end cable letters. 
 
 17. A day letter containing 50 words costs only IH t °aes as much as a 
 telegram, but it is not so fast. 
 
74 OFFICE TRAINING AND STANDARDS 
 
 18. A night letter of 50 words costs the same as a telegram of 10 words. 
 
 19. Never send a regular telegram when a day letter will serve your 
 purpose. 
 
 20. Never send a day letter when a night letter will do as well. 
 
 21. Never send a night letter when the mails are fast enough. 
 
 22. If your business is u gent enough to require a regular telegram, it is 
 not economy to send a day or night letter. 
 
 23. Messages should be typewritten in triplicate on blank forms furnished 
 by the telegraph company. 
 
 24. The original copy is furnished to the telegraph company for trans- 
 mission. 
 
 25. One copy may be enclosed in a letter confirming the telegram. 
 
 26. The third copy is to be filed in your ofhce as a record of the message, 
 and also to check the telegraph company's bills. 
 
 27. In cablegrams each word in the address, date, and signature is charged 
 for. 
 
 28. Marconigrams may be used in transoceanic communication. 
 
 29. Marconigrams cost a little less than cablegrams. 
 
 30. Deferred half rate messages, cable letters, and week-end letters are 
 cheaper than regular cablegrams but not as prompt. 
 
 31. You are wasting money if you send a regular cablegram when a cable 
 letter will do as well. 
 
 32 Radio messages may be sent to nearly all ocean and lake steamers, 
 making it possible to keep in touch with them at all times. 
 
 33. Marine service messages report the sighting and arrival of steamers 
 from foreign ports. 
 
 34. Wireless messages and cablegrams must be paid for in advance. 
 Telegrams may be sent collect, but the payment must be guaranteed by the 
 person who is sending the message. 
 
 35. Messages must be written in one of the following languages, using 
 Roman characters: Latin, Italian, German, Dutch, Spanish, Portuguese, 
 French, Eng'ish. 
 
 30. Telegraph companies are required by law to send messages exactly 
 as wTitten. 
 
 37. If you want to get money quickly from one place to another you can 
 telegraph it. 
 
 38. The large express companies will transfer money by telegraph at all 
 points where they have offices. 
 
 39. The telegraph companies add the cost of a 15-word message to the 
 transfer rate, while the express companies charge only for a regular code message. 
 Remember this when you want to telegraph money. 
 
 40. Remember when telegraphing or cabling that New York time is three 
 hours ahead of San Francisco time and London time five hours ahead of New 
 York time. 
 
 41. You can obtain from a telegraph or cable company a table showing 
 the difference in time between the important cities of the world. 
 
THE TELEPHONE AND THE TELEGRAPH 75 
 
 STANDARD QUESTIONS 
 
 The use of the telephone 
 
 1. Is the telephone a luxury or a necessity? 
 
 2. About how long has it been in common use? 
 
 3. By whom was the telephone invented? 
 
 4. Why has its adoption increased so rapidly? 
 
 5. What is the chief value of a telephone? 
 
 6. What is the longest telephone line in the world? 
 
 7. Under what conditions has the telephone supplanted the telegraph? 
 
 8. Under what conditions is it better to use the telegraph? 
 
 9. Under what conditions would it be advisable to telephone a long 
 distance? 
 
 10. What business would be most inconvenienced by discontinuing the 
 telephone? 
 
 11. How is time sometimes wasted by using the telephone? 
 
 12. Under what conditions would the telautograph be more suitable for 
 interhouse communications? 
 
 13. Under what conditions would the dictograph be more satisfactory 
 than the telephone? 
 
 14. How many parties are involved in making a telephone call? 
 
 15. What are the most essential points to be observed? 
 
 16. Why do mistakes frequently occur? 
 
 17. What is the commonest cause of mistakes? 
 
 18. How far should the lips be held from the mouthpiece? 
 
 19. Is it necessary to raise the voice above the ordinary tone? 
 
 20. What effect does rapid talking have on the conversation? 
 
 21. How do harsh and abrupt tones affect customers? 
 
 22. WTiat are the effects of delays in answering calls? 
 
 23. What is the best method of introducing yourself? 
 
 24. Why should you get the name of the caller? 
 
 25. Is it necessary to say "Good-bye"? 
 
 26. WTiat is the best method of calling numbers? 
 
 27. Why is it important to be brief but not blunt? 
 
 28. Why is it necessary to be courteous? 
 
 29. What is meant by: "The voice with the smile wins"? 
 
 30. How can you recall the operator? 
 
 31. What should you do when you get the wrong number? 
 
 32. What are the advantages of a party line? 
 
 33. What are the advantages of an extension telephone? 
 
 34. What are the advantages of a private exchange? 
 
 35. What are the advantages of a branch exchange switchboard? 
 
 36. What are the advantages of a monitor switchboard? 
 
 37. What are emergency calls? 
 
 38. How would you telephone in case of fire? 
 
 39. How would you call the police? 
 
 40. Why do telephone companies have schools for their employees? 
 
76 OFFICE TRAINING AND STANDARDS 
 
 41. Do you generally get good service from a telephone company? If 
 so, why? If not, why not? 
 
 42. Do you generally get as quick service in a store as you do from a 
 telephone company? 
 
 43. Whose fault is it generally when you get the wrong number? 
 
 44. WTiat is meant by "long distance?" 
 
 45. What is meant by "information"? 
 
 46. What is meant by "traffic manager"? 
 
 47. How could you tell whether the place to be telephoned is long dis- 
 tance or surburban? 
 
 48. What would you do if the telephone should get out of order? 
 
 49. What would you do if the person wanted at the telephone was absent? 
 Give your reasons. 
 
 50. What are the advantages of a classified telephone directory? 
 
 STANDARD QUESTIONS 
 
 Telegraph and cable messages 
 
 1. Can you mention some of the ways in which the electric telegraph has 
 benefited business? 
 
 2. What is the advantage of a day letter over a night letter? A night 
 letter over a regular letter? A telegram over a telephone message? A day 
 message over a night message? 
 
 3. What is the difference between a telegram and a cablegram? A 
 cablegram and a marconigram? A night message and a night letter? A day 
 message and a day letter? A regular and a deferred cablegram? A cable 
 letter and a week-end cable letter? 
 
 4. Under what conditions would you use the telephone in preference to 
 the telegram? The night letter instead of the night message? The cable 
 letter instead of the cablegram? 
 
 5. What business conditions have increased the use of telegrams? Of 
 cablegrams? Of marconigrams? 
 
 6. What business finds it a special advantage to use the week-end cable 
 letter? The wireless message? 
 
 7. ^Vhat advantages are there in using a registered cable address? 
 
 8. Why is legibility an important factor in writing messages? 
 
 9. Are the telegraph companies allowed to alter obvious mistakes in 
 sending a message? 
 
 10. If a cablegram is sent in French, will it be delivered in English? 
 
 11. What is meant by repeating a message? By decoding a message? By 
 confirming a message? 
 
 12. How many copies of a message usually are made? Wliy? 
 
 13. Will the telegraph company guarantee repeated messages? 
 
 14. How long does it take to send a cablegram from New York to London? 
 
 15. How long does it usually take to get a reply? What causes the delay? 
 
 16. Why is the time when a message is delivered of great importance? 
 
THE TELEPHONE AND THE TELEGRAPH 77 
 
 17. Why is the difference in time between two places important? 
 
 18. How can a message be received at an earlier hour than it was sent? 
 
 19. How can a broker buy stock three hours before the market opens? 
 
 20. How do express companies transfer money by telegraph? 
 
 21. How is time an important element in sending money by telegraph? 
 
 22. ^\^ly is it important to use care in wording a message? 
 
 23. Are punctuation marks included in the message? 
 
 24. When are charges made for extra words in the date or address? 
 
 25. When are charges made for all of the address and signature? 
 
 26. WHiy do we omit the salutation and complimentary closing in messages? 
 
 27. What is the best way to wTite figures in a telegram or cablegram? 
 
 28. Can an American operator send a cablegram in Spanish if he cannot 
 read Spanish? In Greek? In Latin? If so, how? If not, why not? 
 
 29. In how many different languages can cablegrams be sent? 
 
 30. Must a message be signed in order to be accepted? 
 
 31. Will a message be accepted if it contains profane language? 
 
 32. Can the person who writes the message change the date or name of 
 the place where it is filed? 
 
 33. Can anyone find out the nature of the message you sent by asking the 
 telegraph com.pany? 
 
 34. How can you guarantee the delivery of a message in a remote place 
 where there is no telephone? 
 
 35. Under what conditions is it advisable to transfer money by telegraph 
 through an express company? 
 
 36. Why are government m.essages given precedence over all others? 
 
 37. How are telegraphic messages a protection to the farmer, the fruit 
 grower, the shipper, the lake and ocean vessels? 
 
 38. How is it possible to read in the New York morning paper about a big 
 business deal that took place in London at 9 a. m. the same day? 
 
 39. Can a man withdraw by telegraph an offer which he sent by mail if 
 he sends the message before the letter is received? 
 
 40. Why can telegraph companies afford to transmit deferred messages 
 at such a low price? 
 
 41. Why do some firms prefer to deliver their own messages to the com- 
 pany instead of turning them over to a messenger boy? 
 
 42. For practice invent a code and write some messages. Each message 
 should be "decoded" or translated by writing the meaning in different colored 
 ink or type underneath the code words. 
 
 STANDARD EXERCISES 
 
 Differences in time 
 
 1. How many degrees of longitude around the earth? 
 
 2. How many hours does it take the earth to rotate on its axis? 
 
 3. How many degrees in an hour of time? 
 
 4. How many degrees in a minute of time? 
 
78 OFFICE TRAINING AND STANDARDS 
 
 5. The difference in time between Philadelphia and St. Louis is one 
 hour. If St. Louis is 90° west longitude what is the longitude of Philadelphia? 
 
 6. The difference in longitude between Washington and San Francisco is 
 45°. When it is 9 o'clock in the morning at Washington what is the time at 
 San Francisco? 
 
 7. When it is noon at Washington what is the time at Montreal? 
 
 8. When it is noon at Washington what is the time at London, England? 
 
 9. When it is noon at Washington what is the time at Denver, Colorado? 
 
 10. When it is noon in St. Louis what is the time at Seattle, 120° west? 
 
 11. When it is noon in St. Louis what is the time at Rome, Italy, 15° east? 
 
 12. WTien it is noon in St. Louis what is the time at Manila, 120° east? 
 
 13. Two traveling men met in Minneapolis. One found his watch two 
 hours slow and the other two hours fast. Where might they have started, if 
 their watches had not been changed since they left home? 
 
 14. A train left Chicago at 6 o'clock, p. m., and arrived in Denver at 5 
 o'clock the next evening, Denver time. How long did the trip take? 
 
 15. A train leaves St. Louis at 6 p. m., and arrives in New York at 7 p. m., 
 the next day, New York time? How long does it take to make the trip? 
 
 16. How can you send a telegram on Tuesday and have it received on 
 Monday? 
 
 17. If a New York office closes at 3 o'clock, p. m., when must a telegram 
 be sent from San Francisco to arrive before closing hours? 
 
 18. A London office closes at 2 p. m. "WTien would it be necessary for a 
 Chicago man to send a cablegram that would be delivered before closing? 
 
 19. A cablegram sent from New York at 9 a. m., was delivered in Paris 
 at 2 :30 p. m. How long did it take to transmit and deliver the message? 
 
 20. A business deal in Manila requires a certain amount of money to be 
 there July 1. When must the money be sent by cable from Chicago to be 
 available on time? 
 
 21. A San Francisco man decides at 3 o'clock in the afternoon to send a 
 telegram of 25 words to a firm in New York. What would be the best kind of 
 message to send and how much would it cost? 
 
 22. How much would it cost to transfer $200 by telegram from New York 
 to San Francisco and when would it reach San Francisco if started at 3 p. m.? 
 
 23. How much would it cost to send a week-end letter of 30 words from 
 London to New York and how much time would be gained by a branch house 
 making such a week-end report? 
 
 24. How much will it cost to send a code cablegram of 10 words to London 
 from San Francisco via New York if the message must reach London not later 
 that 5 p. m., July 4? If the clocks are moved ahead one hour in England be- 
 tween May 21 and October 1, when must the message leave San Francisco? 
 
 25. If the rate of a cable letter from Chicago to Liverpool is 75 cents 
 for the first 12 words and 5 cents for each additional word, how much will a 
 37-word message cost? How much time will be gaiued over a regular letter? 
 
CHAPTER VI 
 
 WHAT THE FILES ARE FOR 
 
 THE files form a vital part in the records of every office. 
 In fact, the success or failure of a transaction or even a 
 business may sometimes depend upon how available the 
 information in the file is. The object of fihng letters and papers 
 is not simply to dispose of them — the waste basket could serve 
 that purpose; the object of filing is to make it easy to find 
 the papers or letters when they are wanted, and to find them 
 quickly without any delay whatever. 
 
 The essentials of good filing. When we speak of files, our 
 first thought is of letters. In one way, however, all of the records 
 of an office are files, and just as much care must be taken with 
 records of all kinds as with letters. The average business man 
 is not expected to remember the prices quoted, the contracts 
 accepted, or the letters written, if he can depend upon the 
 office files and records to furnish him instantly the infor- 
 mation that he desires. 
 
 These records may consist of correspondence, miscellaneous 
 information, or financial data. They may be needed to settle 
 a dispute, confirm an opinion, establish a standard, make com- 
 parisons, or facilitate business in numerous other ways. A 
 good filing method therefore is one that is adapted to the busi- 
 ness, can be depended upon for accuracy, and will produce 
 at once the information wanted. 
 
 The value of capable assistants. Two factors go far to 
 determine the degree of success which any method of filing or 
 record-keeping attains. The first factor is of course the method 
 itself, and the second is the character of those who are to operate 
 it. A filing plan which will run itself has not and never will 
 be devised; it is impossible. But intelligent office assistants 
 
 79 
 
80 OFFICE TRAINING AND STANDARDS 
 
 go far toward making any plan effective. A capable filing 
 clerk can usually operate a poor system; but a careless clerk 
 will make a failure of the finest system ever installed. Hence 
 it is evident that the greatest efficacy is reached when both 
 method and operators are harmoniously adjusted to the partic- 
 ular needs of the office. 
 
 Since the basis for all record-keeping and filing is the method 
 by which the records, papers, letters, and data are arranged, 
 let us first take up the principles which underhe any successful 
 filing plan. With this background we can then go ahead and 
 discuss ways of adapting plans to the requirements of different 
 offices, and the characteristics that are necessary to make filing 
 assistants capable. 
 
 Filing equipment. First let's consider the equipment used 
 in filing. The earliest fiUng devices which we know anything 
 about were the pointed stick, bent wire, or steel spindle. These 
 were followed by the box file shown on page 84, which con- 
 tained an index of the letters of the alphabet on manila sheets 
 fastened to one side of the box. The papers to be filed were 
 placed between these sheets in alphabetical order. This simple 
 method is still often used where the correspondence would not 
 fill over two or three boxes a year. Its chief attraction perhaps 
 is its cheapness. 
 
 Flat files. The box file was followed by the flat file or 
 loose sheet drawer, which was modeled on almost the same 
 principle as the box file, except that a drawer was used, the 
 papers filed flat, and the divisions were further subdivided, 
 allowing for an increase in the quantity of correspondence and 
 other papers to be filed. 
 
 Next came the Shannon file, which is probably the most 
 practical type of flat filing. This is used where papers such as 
 unfilled orders must be referred to frequently and are in danger 
 of being lost. These files are fastened to a thin board ready 
 to hang near the desk, or they are made in drawers to fit a 
 cabinet. The steel arch on which the papers are filed alpha- 
 betically holds them in place and prevents the loss of important 
 papers. The Shannon file is illustrated on page 84. It is used 
 by many construction companies for fifing reports. 
 
THE FILES 81 
 
 Vertical files. The latest improvement is the vertical file, 
 which affords an effective method for filing correspondence and 
 for preserving all forms of ofTice records. The equipment of 
 any vertical fihng system consists of: 
 
 1. Standard or special sized drawers made of wood or metal, with "fol- 
 lower blocks" to hold the guides and folders in an upright position. 
 
 2. Manila or pressboard guides, in sizes to fit the drawers, with projecting 
 tabs at the upper edges of the guides; these tabs bear the index letters or num- 
 bers or other designation. 
 
 3. Manila folders placed one or more in back of each guide; the letters 
 and papers to be filed are placed in these folders. 
 
 A vertical file is shown on page 84. 
 
 Card-index equipment. The equipment of a card index 
 consists of: 
 
 1. A cabinet with as many drawers as required. 
 
 2. Guides, the same size as the cards, indexed or blank, colored or white, 
 according to the method used. 
 
 3. Record cards, with printing, ruling, color, and size to suit. 
 
 The drawers usually have stops on the back, which help to 
 prevent them from being pulled out carelessly and dropped. 
 The stops may be so arranged that they can be removed by 
 tilting the front slightly. Card-index drawers should not be 
 furnished with suspension slides. Experience has shown that 
 rods for holding the cards in place are not needed except when 
 the equipment is to be handled by the general pubhc, or in 
 card ledgers where the responsibility of keeping the records in 
 their proper place depends on one person. 
 
 We shall see how the card index is used in connection with 
 the numerical system of correspondence filing, the "follow up," 
 and the ''tickler." The card index, which is a method for 
 keeping compiled information filed on a card where it can be 
 found instantly, permits an extension of these principles to the 
 filing of other office records and business papers. It is well 
 adapted to the preserving of such office records as subscription 
 Usts, salesmen's and prospect cards, quotations given or received, 
 catalog indexes, stock records, instalment collections, and 
 factory costs, as well as other records which will be described 
 later in connection with the handUng of departmental records, 
 data, and correspondence. 
 
82 OFFICE TRAINING AND STANDARDS 
 
 How to make filing easy. If we keep in mind that filing 
 is simply arranging letters or papers so that they can be found 
 quickly, we shall find the study and preparation of filing sys- 
 tems to be comparatively simple. 
 
 Suppose we take a letter from Robert Bowen. This letter 
 has been answered, and with the copy of the answer attached 
 to it, is ready to be filed. Where shall we file it? 
 
 The very first question we ask ourselves is: ''When we want 
 to find this letter again, what would we naturally look for first?" 
 Why, "Robert Bowen," of course. So, if we file the letter 
 under Robert Bowen we will feel pretty sure of finding it again. 
 This kind of file is called a name file. That is, all the letters 
 are put away under the names of the writers of those letters. 
 
 But suppose we have 20 or 30 letters from as many different 
 people, or suppose we have 100 different letters from 100 dif- 
 ferent people. We would of course file the letters by name, 
 and look for them by name. But if our names were not arranged 
 in some order, wouldn't it take us rather a long time to find 
 Robert Bowen' s letter, if we had to go through all the other 
 letters before we came to it? 
 
 The alphabetical method of filing. Evidently we must 
 arrange those names in some order that will make it easy to 
 locate any desired name quickly. The first thing we think of 
 is to arrange the names alphabetically — that is, place all names 
 beginning with A under "A," all beginning with B under "B," 
 and so on. Now if we want to find Robert Bowen's letter we 
 simply look under ''B" first, and if we were careful in fiUng 
 the letter, we will find it quickly. This method of fifing by 
 letter is called the alphabetical method. 
 
 The most generally employed and the best understood 
 method of indexing files consists of a set of 26 guides and folders 
 arranged alphabetically, one for each letter of the alphabet. 
 Or, if the correspondence is small, one vertical file drawer and 
 20 guides and folders usually are sufficient. As the corre- 
 spondence increases, 40, 75 or many more guides may be arranged 
 in one index. 
 
 Another method of filing is by states, called tlie geographical 
 method. In preparing geographical guides with indexing it is 
 
FIGURE 23 : Filing is really quite simple if you use a little care. With a diagram 
 
 like this, the four different methods of filling are clearly explained. Take each 
 
 word that is encircled and follow the line leading from it. Of course, not many 
 
 letters would need to be so thoroughly cross-indexed as this one. 
 
 83 
 
I 
 
 FIGURE 24: The box file was one of FIGURE 25: The Shannon file holds 
 
 the first filing systems in existence; it is the sheets firmly but loosely by the 
 still used to a limited extent. clasps through the holes. 
 
 FIGURE 26: Filing on edge is Uu- 
 
 modern way of filing. The vertical file 
 
 shown here is a geographical file. 
 
 FIGURE 27: Here is a typical follow- 
 
 uf3 file. It's sometimes called the 
 
 memory file. Can you guess why? 
 
 S4 
 
THE FILES S3 
 
 possible to start in a small way with just as many states as are 
 needed. As the business increases, other states are added and 
 sub-indexes placed in those states where correspondence war- 
 rants it. Index guides for the names of towns can be inserted 
 and alphabetical guides placed behind the town guides. This 
 plan permits the unUmited growth of a fiUng system without 
 destroying the old guides as in straight alphabetical fiUng. 
 
 In the numerical method a number is used on the index 
 guides, and the decimal plan of notation is usually followed. 
 A separate card index is also required, in which the names are 
 arranged alphabetically. 
 
 It is sometimes claimed that where the number of letters 
 to be filed is very large the alphabetical system is not practical 
 because it requires so many subdivisions of the alphabet. It 
 is possible to secure alphabetical subdivisions with several 
 thousand guides if necessary; and important letters like "S" 
 would contain several hundred subdivisions with the letters 
 carried sometimes to six or seven places in such names as Schmitt 
 and Schmitz. It is obvious that with an index as large as 
 this mistakes will occur unless the clerk is extremely accurate 
 in reading the index and placing the let-ter where it belongs. 
 
 Although the alphabetical method is perhaps the simplest 
 method of fiUng and indexing, still it is not always the best. 
 And yet it is almost always used more or less in connection with 
 some of the other methods we shall now proceed to study. 
 
 The geographical method of filing. Where the corre- 
 spondence comes from widely scattered sources, or where the 
 place is of more importance than the person's name, a geo- 
 graphical method of filing is sometimes preferable. This might 
 be true in handling the correspondence of the sales department, 
 where the territory is divided into districts or agencies. These 
 files are usually arranged according to states, in alphabetical 
 order; under each state the towns in that state are also arranged 
 in alphabetical order. 
 
 If there is not enough correspondence to justify the use of 
 town guides in certain states, there may be only the state guide 
 and an "A B C index." In this ABC index the letters are 
 filed according to name, as in the straight alphabetical system. 
 
86 OFFICE TRAINING AND STANDARDS 
 
 Of course if the correspondence does not come from many states 
 and towns, the state guides may be dispensed with, and only 
 town guides used, arranged alphabetically. Under each town 
 is the A B C index. 
 
 In each case sub-guides may be added as the business 
 increases, and when the correspondence of any locality or indi- 
 vidual warrants it, special folders may be inserted. It might 
 be necessary to remember the name of the town or state in order 
 to find certain correspondence, or the letters from different 
 towns by the same individual might be filed in separate folders. 
 On the other hand, the name of the individual or the names of 
 firms might be forgotten more easily than the town from which 
 he or they wrote, and the quickest way to locate them would 
 be by the town or state. 
 
 Filing by number. When vertical fiUng was first intro- 
 duced, the numerical method was commonly employed; hence 
 it came to be generally understood that the numerical method 
 was always used with the vertical file; but it is now generally 
 conceded that the numerical method should not be installed 
 unless the alphabetical or geographical will not answer. 
 
 Another mistaken idea in regard to the numerical plan was 
 that it was an advantage to use it w^hen the volume of corre- 
 spondence was large. If it is a disadvantage to use the alpha- 
 betical or geographical method in a large business, it would 
 be a double disadvantage to use the numerical, on account of 
 the greater expense in filing and the possible loss of time in 
 finding correspondence. 
 
 The real advantage, then, gained by the use of the numerical 
 system, is when cross references are necessary, or when papers 
 or books must be referred to under more than one heading. 
 In many offices, such as law firms, it has been found an advantage 
 for each customer to be given a number and all papers and files 
 pertaining to that case filed under that number. 
 
 Nearly all libraries are indexed numerically, because ref- 
 erence must be made to the book by name, by author, or by 
 subject matter. The majority of them are cataloged under 
 what is known as the "Dewey Decimal System." A modi- 
 fied form of the decimal method is appUed in classifying some 
 
THE FILES 87 
 
 numerical indexes. There would seem to be so many possi- 
 bilities for errors, however, that only an expert should attempt 
 to install such a method. 
 
 In the ordinary numerical filing the guides are generally 
 numbered in lO's or 20's. When mail from a new correspondent 
 comes in, he is assigned the next consecutive number. His 
 name, address, and number are written on a card which is filed 
 alphabetically in a card-index drawer. The letter to be filed 
 is marked in the upper right-hand corner with the number 
 assigned to that correspondent and is filed in a manila folder 
 bearing the same number. The folder is filed numerically 
 behind the proper guide. When a letter comes in from a regu- 
 lar correspondent, the card index is consulted to find the number. 
 
 Filing by date. Suppose we want to write to Robert 
 Bowen about two weeks after our last letter, especially if he 
 hasn't sent us a reply. If we had a chronological file, in which 
 the guides are arranged by months and days instead of by 
 letters, numbers, or towns, we could file Robert Bowen's letter 
 two weeks ahead, and on the day set, go to the file, and take 
 out his letter. This kind of file is often called a "follow-up 
 file," and if properly used is very convenient. 
 
 Every business firm employs some plan for following up 
 dehnquent correspondents. It may be for the purpose of 
 converting a prospect into a customer, or for collecting a past 
 due account, or for circularizing a mailing list. In each instance 
 it is impossible to depend absolutely upon the memory; so a 
 method of filing is devised for calling attention automatically 
 to the particular date when the next letter is to be sent. 
 
 A special drawer of the filing cabinet may be used for this 
 purpose, or the correspondence may be filed in the usual way 
 and a follow-up card made out which contains a record of all 
 the transactions. By means of 31 daily and 12 monthly guides, 
 any material which needs consideration may be filed under a 
 certain date and automatically come up for attention at the 
 correct time. A central "tickler" file for all the employees of 
 an office who have follow ups has sometimes been found to 
 save time and to be practical for bringing matters to the atten- 
 tion of the right person on time. 
 
88 OFFICE TRAINING AND STANDARDS 
 
 Finding letters in the follow up. Right here one point 
 about follow-up or chronological files which is sure to come up 
 might well be considered. After Robert Bowen's letter has been 
 placed in the follow-up files, we do not expect to see it again 
 until the time set for our further attention to it. But if Robert 
 Bowen should write us before that day arrives, we should want 
 to get the letter that we placed in the follow-up file. Unless we 
 remembered the follow-up date, the only way we could find 
 the letter would be by going through the entire follow-up file. 
 A number of interesting methods are used in dififerent ofhces to 
 obviate this. 
 
 One office manager has the stenographers make an eixtra 
 carbon copy of every letter they write. This extra copy is 
 then placed in the follow-up file, and the rest of the correspon- 
 dence goes to the regular files. When the carbon copy comes 
 up on the day set for the follow up, if the matter has been 
 attended to, the extra carbon copy is destroyed. If, however, 
 no answer has been received, or the matter has not been attended 
 to, then the rest of the correspondence is obtained from the 
 regular file and the proper steps taken. 
 
 This method insures the complete correspondence being in 
 the files and available at all times. There is no delay caused 
 by looking through the follow-up file for a letter that hasn't 
 come up on the date marked. 
 
 Another convenient plan that is used in one office is to 
 file the letter alphabetically or numerically and the carbon copy 
 chronologically. This is done by placing the follow-up date on 
 the letter and also on the carbon copy. The original letter is 
 filed as usual in the regular correspondence files, and the carbon 
 copy bearing any necessary notations is filed in the follow-up 
 file under the date when the next letter is to be sent. If it is 
 necessary to refer to the original letter, it will be found in the 
 regular file. Should a reply be received before the follow-up 
 date, which we will suppose is March 23, the letter is referred 
 to and is found with "March 23" marked on the upper right- 
 hand corner, which means that the answer to the last letter 
 will be found under the guide "March 23" in the chronological 
 file. The follow-up date may then be changed, or the corre- 
 spondence handled in the usual manner. 
 
THE FILES 89 
 
 Another plan that is used does not require the extra carbon 
 copy; neither is a letter-size filing cabinet required. And where 
 filing space is at a premium, this plan has advantages over the 
 extra-carbon method. A 3 x 5 index card is made out giving 
 the name, address, date, subject, and where the letter is filed. 
 
 This card is filed chronologically behind the guide in the 
 card index showing the month and the day when it is next to 
 receive attention. The letter and carbon copy are filed in the 
 regular files after marking on them the follow-up date, so that 
 if an answer is received before that date the letter can be 
 answered in the usual manner and the follow-up card removed 
 or set ahead to a new date. 
 
 If the original letters are filed numerically, the regular 
 card index may also be used as a ''tickler" by simply using cards 
 with the days of the month printed at the top of each card. 
 Metal clips placed over any particular date will be in a straight 
 row and make it easy to locate any desired card. This makes a 
 double fiUng, since the cards are filed alphabetically and the 
 follow-up date chronologically, and is therefore more expensive. 
 
 What topical filing is. Topical fifing, or filing by subject, 
 also requires the use of card indexes. Such a method is gen- 
 erally used only where the subject matter of the letters is of 
 great importance, and the fact that a letter comes from a par- 
 ticular concern is relatively unimportant. 
 
 Often several cards must be made out for each letter in 
 order to index it thoroughly, and this, of course, adds to the 
 cost. Further, a thoroughly competent person must do the 
 indexing or it is almost valueless. 
 
 One big diflftculty in subject indexing is the fact that no 
 two persons are likely to hit on the same word or phrase to 
 index a paragraph ; and at different times the same person might 
 select different phrases. Thus reference becomes rather un- 
 certain unless enough index cards are made out so as to leave 
 little doubt that one of them will be chosen when the matter 
 is referred to later. 
 
 On account of this tendency to refer to the same subject by 
 different names, topical filing should not ordinarily be employed 
 unless the subjects are well determined and a natural reference 
 
90 OFFICE TRAINING AND STANDARDS 
 
 established. In spite of these considerations, subject fihng is 
 the only method that fits the requirements of some concerns. 
 Architects, street railways, or county offices, for example, might 
 naturally and profitably use filing by subjects. 
 
 The alphabetical-numerical method of filing. It is 
 possible to combine some of the best features of the alphabetical 
 and numerical methods by numbering the alphabetical guides. 
 Then the clerk can find the correspondence by the alphabetical 
 method, which is direct and accurate, and can file them by 
 nimiber, a safe and rapid way. 
 
 A comparison of different filing methods. The al- 
 phabetical method seems the most natural because we are 
 all perhaps more accustomed to the dictionary arrangement 
 and grouping of words. It is therefore probably the best under- 
 stood, and should perhaps be generally used before attempting 
 some more complex method, unless there are apparent advan- 
 tages to be gained by the adoption of such a method. 
 
 It should be remembered that both the alphabetical and 
 geographical methods are direct filing methods and do not 
 ordinarily require the double indexing which is necessary in 
 the numerical method. Preparing an extra card index is not 
 only an additional expense, but it may require more time to 
 locate a letter than under the direct plan. In both the numeri- 
 cal and geographical methods the files are enlarged by simply 
 inserting additional index guides, while with the alphabetical 
 method some of the guides must be discarded and an entirely 
 new set must be substituted in order to take care of the increased 
 correspondenc e. 
 
 One point in connection with the numerical method which is 
 generally regarded as a hindrance is that it requires a separate 
 card reference index to make it workable. On the other hand, 
 it should be understood that the card contains useful informa- 
 tion which may make it of greater value than its cost of pro- 
 duction. The addressing machine can sometimes be used in 
 making out the cards, and the same cards may be employed in 
 following up business. 
 
 It cannot easily be claimed that any one filing plan is better 
 than any other, since every business must of course select the 
 
FROM 1UN2 RNj). CORRESPONDENCE 
 
 DEPARTMENT 
 
 LIST 
 DEPT. 
 
 C2cc«i^ 7l<K Sx 3f7 /3 
 
 JUN 2 LMA. 
 
 PLATE 
 DEPT. 
 
 Cdrl A Elemm 
 
 204 Paul Jones Bldg 
 
 LoulsvUle Ky 
 
 9 20 
 
 S2397B 
 
 lUN 2 FJ. 
 
 ORDER^ 
 
 JUN 2 BAT. 
 
 CORRESPONDENCE 
 FILES 
 
 SHIPPING RECEIPT 
 
 FIGURE 28: In one office the correspondents use requisition blanks for getting 
 
 information from other departments. The date and the correspondent's initials 
 
 are stamped at the top and a check placed against the department from which the 
 
 information is wanted. That department writes or attaches the information. 
 
 91 
 
OUT 
 
 Request for Correspondence 
 be held in file until papers are returned! 
 
 Papers Wanted 
 
 
 (Na 
 
 Charged to < Department . 
 
 X^ 
 
 t .. ^aWe^vT 
 
 Note - Make separate request sheet (or each subie 
 and correspondent as this sheet will be filed in pU 
 of letter taken from the file 
 
 FIGURE 29: There is never any mystery as to who has correspondence taken 
 from the files in the office which uses this form. To get desired correspondence you 
 fill out a slip like this, which is placed in the file drawer when a letter is removed. 
 
 J Out Card A 
 
 
 
 
 
 
 Given to 
 
 Reference 
 
 Date 
 
 Given to 
 
 Reference 
 
 Date 
 
 Given to 
 
 Reference 
 
 Date 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 30: Here is a little different form of out card. This one may be used 
 again and again until all the blanks are filled. The tab shows above the top of the 
 folder and in this way you can tell immediately what correspondence is missing. 
 
 92 
 
THE FILES 93 
 
 method best suited to its particular purposes. It is evident 
 that some methods which are best for certain lines of work 
 would be impossible in other offices. Whatever the method 
 used, an intelligent employee must be depended upon to make 
 its application a success. 
 
 Removing letters from the files. Correspondence should 
 never be removed from the files without making some record 
 to show when the paper was taken out and who is using it. 
 Some concerns refuse to allow the removal of any correspondence 
 unless a properly signed requisition is furnished. Others insist 
 that material is to be kept from the files no longer than 48 hours, 
 unless the requisition is renewed. The head filing clerk is the 
 only one who is allowed to remove papers, and he is therefore 
 held responsible for their safe return. 
 
 One concern uses this method for telling what correspon- 
 dence is missing from the files: When papers that have been 
 filed are required for reference, the requisitioner fills out a 
 blank like that shown on page 92. This ''out" sheet — as it 
 is called — is just about 10 inches high. It is placed upright in 
 the folder from which papers have been taken, and the word 
 *'out" shows prominently above the edge of the folder. 
 
 Thus it is possible, simply by glancing through a drawer, 
 to tell where papers have been removed. The filing clerks 
 every so often check through the drawers for which they are 
 responsible. Should any correspondence be held for some time, 
 apparently without reason, a note to that effect is sent to the 
 requisitioner. When finally the papers are returned, they 
 replace the "out" sheet, which is destroyed. 
 
 Another concern has the filing clerk pin a colored slip to 
 every paper that leaves the files, bearing the following notice: 
 
 This correspondence is charged to your department and must be returned 
 to the files promptly. 
 
 Under no circumstances are these papers to be transferred to any other 
 department except through the file room. 
 
 Transferring the correspondence. When it is necessary 
 to make room for later and more important papers the older 
 correspondence is transferred. The only object in keeping 
 correspondence after it has been transferred is to have available 
 
94 OFFICE TRAINING AND STANDARDS 
 
 important letters which may be called for or needed as evidence 
 in lawsuits. It is evident, therefore, that some letters and 
 papers, from their very nature, are not of sufficient importance 
 to be kept. They may therefore be destroyed at any time. 
 
 There is a sHght disadvantage in removing all the corre- 
 spondence at one time, since some is of greater importance 
 than others, and there is no time when it will not be necessary 
 to refer to some of the recent mail. When the mail is filed, it 
 simplifies matters to indicate the date for "killing" or trans- 
 ferring, or the less important matter may be filed in different 
 colored folders and all of that color transferred at a fixed date. 
 Some concerns prefer to arrange the two upper rows of their 
 cabinets for six months' correspondence and transfer to the 
 two lower rows at the close of that period. In another six 
 months the upper rows are cleared and the lower rows stored 
 in less expensive cabinets. 
 
 How long to keep letters. Differing conditions change 
 the length of time it is necessary to keep letters in different 
 offices. One fairly large concern, for example, keeps letters 
 in the current files for only six months, and then places them 
 in the "transfer files." The transfer files are similar to the 
 current files, and are perfectly accessible, only not so conve- 
 niently located in the filing depaHment as the current cabinets. 
 Papers remain in the transfer cabinets until they are from one 
 to six years old, according to the requirements of the business. 
 They may then be removed to a warehouse of the company, 
 where space is not so valuable as in the office, or they may be 
 destroyed then and there. 
 
 The filing assistants. The first essential, if you wish to 
 become a filing expert, is a good memory, keen sight, and skill 
 in reading names and numbers. Skill must also be attained in 
 arranging names in exact alphabetical order. Then comes the 
 ability to tell at a glance which name corresponds to the index 
 and finally, with accuracy, to place the paper in the division 
 where it belongs. 
 
 These essentials can be acquired through persistent practice 
 and training for accuracy, which will be of service in any kind 
 of work. Begin by reading at a glance numbers containing 
 
THE FILES 95 
 
 six or more figures and then try to reproduce them orally from 
 memory. Write the figures in their exact order. You might 
 be asked to get from the file, numbers 346529 and 24638. Could 
 you do it without writing down the numbers? Where the 
 numerical system of filing is used there are many large concerns 
 which use numbers running over six figures. 
 
 You should also train yourself to read quickly groups of 
 words, names, and firm names, arranging them in alphabetical 
 order as read. Study the dictionary and directories for the 
 purpose of understanding the exact dictionary arrangement so 
 that you can carry out the alphabetizing of words to the last 
 letter of a word, if necessary. Practice wnriting names and 
 firms in the proper arrangement for filing and always observe 
 the key which will be used on the index. Then file the papers 
 in the divisions where they belong and remember that 100% 
 accuracy is required. If you become an expert fihng clerk 
 you may reasonably expect to be called upon to manage some 
 filing department where efficiency is desired and rewarded. 
 
 FILING STANDARDS 
 
 The technique of filing 
 
 L Filing is putting papers safely away where they may be found quickly 
 when wanted, 
 
 2. The filing method must be suitable for the business. 
 
 3. The filing clerk must thoroughly understand the method. 
 
 4. The filing must be done with the greatest accuracy. 
 
 5. Remember, you might as well throw the paper out of the window as to 
 file it in the wrong place. 
 
 6. Filing clerks must be quick and accurate in reading names. 
 
 7. Clerks should have good memories for names and numbers. 
 
 8. Carbon copies of the answers should be fastened to the letters; pasting 
 is easy and commonly used. 
 
 9. The papers are to be placed in the folder back of the guide index. 
 10. The latest papers are always placed in the front of the folder. 
 n. Letters should be filed with the top of the sheet toward the left. 
 
 12. Letters should not protrude from the ends of folders: the files should 
 always look neat. 
 
 13. Never remove papers from the files without making some note of the 
 papers that are removed. 
 
 14. An "out" card shows at a glance what letters are missing. 
 
 15. When letters are filed under the names of the company, they are filed 
 under the first word, disregarding the word "The." 
 
96 OFFICE TRAINING AND STANDARDS 
 
 16. When letters are filed under the name of the writer, they are filed under 
 his surname. 
 
 17. When the surnames are the same, the given names determine the 
 position. 
 
 18. If the surname and the given name are the same, the address deter- 
 mines the position. 
 
 19. If the words are the same, the qualifying adjective determines the 
 position. 
 
 20. When the word "The" is the beginning of the firm name, it is not con- 
 sidered in alphabetizing. 
 
 21. When "and" is a part of the firm name, it is not usually considered in 
 filing. 
 
 22. Names beginning with Mac or Mc usually precede all other names 
 beginning \sath M. 
 
 23. Letters signed by an individual member of a firm should be filed under 
 the firm name, unless you are instructed otherwise. 
 
 24. When several letters are received from one firm, they may be placed 
 together in one folder. 
 
 25. All letters from one firm should be put in the same folder, even if 
 signed differently. 
 
 26. Flat filing means that the papers lie perfectly flat in the drawer, 
 
 27. The spindle is the oldest and simplest form of flat file. 
 
 28. The box file is the cheapest method of flat filing still in use. 
 
 29. The Shannon file is perhaps the most common flat file method still 
 in use, where important papers are filed independently. 
 
 30. In vertical filing, the papers stand on edge in the drawer. 
 
 31. Vertical filing is the most practical and the most commonly employed 
 in correspondence filing. 
 
 32. Papers, letters, cards, and in fact, nearly every kind of record, are 
 filed by names, localities, subjects and numbers. 
 
 33. The alphabetical method is the most commonly used system of filing. 
 
 34. Alphabetical filing should be employed when the name is the point 
 most commonly used or remembered. 
 
 35. Geographical filing is successfully employed in sales departments or 
 when the location is more important than the name. 
 
 36. Numerical filing is employed where reference must be made to the 
 paper under more than one heading. 
 
 37. The numerical file with the card index is accurate and practical when 
 cross reference is necessary. 
 
 38. A combination numerical-alphabetical method combines some of the 
 rapidity and accuracy of both methods. 
 
 39. The chronological file consists of 12 monthly guides and 31 daily 
 guides, with folders. 
 
 40. Chronological filing is used in follow-up methods. 
 
 41. A follow-up file insures matters being brought up for attention at the 
 proper time in the future. 
 
THE FILES W 
 
 42. The card index may be used in follow-up service by using twelve 
 guide cards, one for each month. 
 
 43. Topical or subject filing may be employed when it is an advantage 
 to have all the papers on any one subject together. 
 
 44. Correspondence not often referred to is transferred every six months 
 or once a year to the transfer files. 
 
 45. Important letters may be filed in manila folders when they are to be 
 preserved a long time. 
 
 46. Unimportant letters may be filed in green folders and marked when 
 they may be "killed" or refiled. 
 
 STANDARD QUESTIONS 
 
 The technique of filing 
 
 1. What purposes are served in any filing method? 
 
 2. What are the elements of a good filing method? 
 
 3. Why should not all firms have the same method? 
 
 4. Why should a head filing clerk be held responsible? 
 
 5. What are the four general methods of filing? 
 
 6. What groups of office records are filed? 
 
 7. What is a cabinet, a guide, an index, a folder? 
 
 8. What methods of filing are commonly used? 
 
 9. What was the earliest method of filing used? 
 
 10. What is probably the cheapest method now employed? 
 
 11. What method is most generally understood? Why? 
 
 12. What method is most commonly used in small businesses? 
 
 13. What method is now most generally employed? 
 
 14. Which method of filing is best for a sales agency manager? Why? 
 
 15. Which method of filing uses the card index? 
 
 16. Which method of filing is best for an author? 
 
 17. Which method of filing is best for a library? 
 
 18. Which method of filing do you consider the safest? 
 
 19. In which method of filing are mistakes most likely to occur? Why? 
 
 20. Which method is considered the most accurate? Why? 
 
 21. Which method would be suitable for a large railroad corporation? 
 
 22. What is meant by a follow-up method? 
 
 23. What is meant by the alphabetical method of filing? 
 
 24. What is meant by the geographical method? 
 
 25. What is meant by topical filing? 
 
 26. What is meant by the numerical method? 
 
 27. What is meant by the decimal method of indexing? 
 
 28. What is the object of the alphabetical-numerical method? 
 
 29. What is meant by the chronological method? 
 
 30. What is meant by transferring the correspondence? 
 
 31. When the day arrives on which a letter is marked to be "killed," is 
 it sent to the dead-letter office? 
 
98 OFFICE TRAINING AND STANDARDS 
 
 32. What is meant by the "desk tickler"? 
 
 33. What is the "tickler" supposed to tickle? 
 
 34. When should an "out" guide be used in correspondence filing? 
 
 35. How may the card index employed in a numerical method be used in 
 follow-up work? 
 
 36. Mention other practical ways in which the card index is employed? 
 
 37. Which should come first in the files, the C. & E. I. Ry., or the C. & N. 
 W. Ry.? Why? 
 
 38. Under what name would you file the Stanley Morton Co.? 
 
 39. Which would be filed first, Clarence Brown, of St. Louis, or Clarence 
 Brown, of Minneapolis. 
 
 40. In which order would you file: Brown Bros., Chicago; Brown, Bar- 
 rett and Co.; Brown and Carter; James R. Brown; James J. Brown; William 
 G. Brown; Brown and Barrett; Brown and Co.; Brown Bros., New York? 
 
 41. What filing method would best suit a contractor? 
 
 42. What filing method would best suit a lawyer? 
 
 43. What filing method would best suit a city government office? 
 
 44. What filing method would best suit a newspaper? 
 
 45. What filing method would best suit a follow-up method? 
 
 46. What filing method would best suit a purchasing agent? 
 
 47. What filing method would best suit a state government oSice? 
 
 48. Name some points which might decide the value of a filing method for 
 any special business? 
 
 49. What may a geographical method of filing show about the business? 
 
 50. Contrast the different filing methods as to simplicity, ease of filing, 
 safety, and expense. 
 
CHAPTER VII 
 
 THE PURCHASING DEPARTMENT 
 
 WHEN we want a bottle of ink or some paper to write 
 on, we drop in at the stationery store on our way home 
 and buy what we want, paying perhaps 10 cents for 
 the ink, and 25 or 50 cents for the paper. The man who does 
 all this for a business house is called the purchasing agent. 
 He may spend only a small part of his time if he is buying for 
 a small business, or he may have a large staff of assistants, if 
 he is employed by one of the large corporations. 
 
 The object of the purchasing department. Whatever 
 the size of the business, the object of the purchasing department 
 is the same: 
 
 1. To buy all material that is needed by the business 
 
 2. To buy material of the required quality 
 
 3. To buy it at a reasonable price 
 
 4. To see that deliveries are made in due season 
 
 It is obvious that where all the buying is done through 
 one man or one department, lower prices may usually be obtained 
 because of large purchases, closer uniformity of material assured, 
 and the schedule of deliveries checked up more exactly than 
 where each department makes its own purchases. 
 
 Purchase requisitions. The purchasing agent buys all 
 material; this material may be raw material, such as leather 
 for the factory; equipment for either the factory or the office; 
 manufactured goods ready to sell; or supplies for the whole 
 concern. He receives requests for materials and supplies from 
 all departments of the company; these requests are called 
 requisitions, and it is from these requisitions that the pur- 
 chasing agent finds out just what material is wanted and how 
 much he is to buy. 
 
100 OFFICE TRAINING AND STANDARDS 
 
 A form of requisition used by one concern is shown on page 
 101. This requisition is also his authority for buying the ma- 
 terial wanted. It must therefore be signed by the manager, 
 as well as by the person ordering the material. 
 
 Usually two copies are made of this requisition. Just how 
 many copies should be made depends on the requirements of 
 the concern. The purchasing agent must have one, of course. 
 Then if the person making out the requisition keeps a copy, he 
 will know just what he ordered, and when the material comes 
 in can use his copy to check the accuracy of the count. 
 
 In some concerns both copies go to the buyer, who notes on 
 the duphcate when delivery may be expected, and returns it 
 to the requisitioner; the copy also acts as an acknowledgment 
 from the purchasing department that the original requisition 
 has been received. 
 
 As soon as the purchasing agent gets the requisition which 
 has been approved by the manager or the comptroller, his 
 next step is to buy the goods requisitioned. He may know 
 just where to get exactly what is ordered, or he may have to 
 make a search for it. 
 
 Watching the market. Right here comes an important 
 part of the work of the purchasing department — keeping tab 
 on the market conditions, as to both prices and supply. When 
 there is a plentiful supply, prices are usually favorable, and 
 purchases should be made at such times, if possible. Of course 
 it isn't always possible to know ahead of time just what will 
 be required, and how much; but a carefully planned set of 
 records will help to eliminate mistakes and uncertainty. 
 
 Classified information for the buyer. Every purchasing 
 agent has occasion from time to time to refer to his record of 
 invoices from concerns with whom his house has previously 
 dealt. A card is made out for every kind of article purchased, 
 giving the name of the firm and a complete record of prices, 
 discounts, and allowances, together with pertinent remarks 
 as to service, quality, and other matters of interest. He also 
 finds it useful to maintain a price file, showing quotations re- 
 ceived on the material his concern uses or is likely to use, with 
 details as to prices, terms, and delivery. 
 
No. 
 
 PURCHASE REQUISITION Date. 
 
 Purchasing Agent Wanted 
 
 Please furnish Department with the following: 
 
 (State quantities, sizes, approximate prices if known, and sufficient description of the articles 
 desired so as to identify exactly what is wanted.) 
 
 Requisitioner_ 
 
 The requisitioner must not write below this line Department head. 
 
 Ordered from. 
 Order No 
 
 Delivery expected — Approved. 
 
 FIGURE 31: A request like this is sent to the purchasing agent when material 
 is to be purchased. In the blank space the requisitioner describes the material 
 wanted, signs his name, and then sends it to the department head for his O. K. 
 
 No 
 
 ACKNOWLEDGEMENT r,,,, 
 OF REQUISITION „,^„„, 
 
 
 Your requisition for_ 
 
 Department for the following received 
 
 
 
 Department head 
 
 
 
 Delivery expected — — 
 
 FIGURE 32: This acknowledgment of requisition is simply a carbon copy of the 
 requisition itself. The purchasing agent sends it back to the requisitioner as an 
 indication that he has received the requisition. Then the requisitioner holds it. 
 
 101 
 
Gentlemen: 
 
 Please give 
 
 MARSHALL & SONS 
 
 Boston, Massachusetts 
 
 Specifications of printed matter 
 submitted for price quotation to 
 
 immediate quotation upon thefoUowing printed matter, the specincation* for which are here givm: 
 
 Quantity 
 Numtxii of pages 
 Trimmed Htejxxly 
 Cover jiie 
 
 Stock, body, »ize, quality, 
 and weight 
 
 Stock cover 
 Inks. t>ody 
 Inks, cover 
 Numlwr of pagn of 
 
 composition in the body 
 Composition on the cover 
 Binding 
 
 Number of illustration* 
 Size of illustration* 
 Number of illustrations to 
 
 the page 
 Delivery of the copy and 
 
 cuts to you 
 Proofs 
 Delivery 
 
 Specirt 
 
 will be of satisfactory working quality, in the si«» 
 
 Say when, provided the cuts and copy are delivered to you as stated above 
 
 Fill in spaces left blank for that purpose, then sign below and return to MARSHALL h SONS 
 Boston, Massachusetts, addressing envelope "For the attention of the department." 
 
 Respectfully submitted. 
 
 (Name of ) 
 By 
 
 FIGURE 33: Here is a specification blank such as described on page 103. This 
 
 one happens to be for printed matter, but the same idea is used for "shoes or ships 
 
 or seahng wax." These specification sheets are sent to concerns handling the goods 
 
 wanted; and the one who gives the best quotation gets the order, 
 
 102 
 
THE PURCHASING DEPARTMENT 103 
 
 In addition to the "record of prices" and the "record of 
 quotations" the purchasing agent must be able readily to find 
 catalogs, price lists, and other circulars received from different 
 supply houses. These are usually filed by a numerical plan. 
 Two or more cards are made out for each catalog, one showing 
 the firm name and the other the article listed. 
 
 The information on these cards should be as complete as 
 possible, giving the names of the firms with the catalog and 
 price list numbers, and showing all the reputable sources of 
 supply. On page 106 are shown cards like those used by pur- 
 chasing agents for watching prices and market conditions. 
 
 Sources of information. In addition to catalogs, the pur- 
 chasing agent also studies the trade papers, and often is able 
 to pick up valuable news affecting market prices and conditions. 
 For instance, he may learn that because of some happening 
 in the locaUty where material the firm uses is produced, that 
 particular material is going to be very scarce, and that by 
 buying now instead of waiting till later, he may be able to get 
 very favorable prices. He may not have any orders to buy 
 this material, but by inquiring of his manager whether or not 
 some more of that material will be wanted before long, he can 
 learn if it is wise to buy it now and save money, at the same 
 time making sure of the supply. A good instance of this was 
 seen in the fall of 1917, when a number of far-sighted purchasing 
 agents saw a coming shortage of coal, and laid in heavy reserve 
 stocks. Statistics clearly showed the shortage. 
 
 It is also important for the purchasing agent to be familiar 
 with the terms of a contract, the value of warranties, the lia- 
 biUties of common carriers, and to know under what circum- 
 stances orders may be recalled. 
 
 Getting estimates or quotations. It may happen, and 
 often does, that there are available no recent prices of the ma- 
 terial to be bought, and it becomes necessary to get "quotations" 
 or estimates from reliable firms. Where several firms are asked 
 to "bid," as it is called, a specification blank hke that shown on 
 page 102 is mailed. When the bids are received from those 
 concerns interested in getting the order, the buyer decides 
 where he shall place the order, keeping in mind the three require- 
 
104 OFFICE TRAINING AND STANDARDS 
 
 ments of quality, price, and delivery. Some concerns 
 manufacturing a very high grade of goods ask correspondingly 
 high prices, while others, who make good grades at low or rea- 
 sonable prices, may be handicapped in delivering on time; 
 a third concern may be able to make quick deliveries, and the 
 price may be right, but the goods are not up to standard quaUty; 
 hence the buyer must watch all three factors. 
 
 What becomes of purchase orders. As many copies of 
 the purchasing order are made as are necessary. The original 
 is sent to the firm from which the purchase is made. A second 
 copy is sent to the receiving department, so that the shipment 
 can be checked when received. Some firms omit the number 
 of articles by using a short carbon on this second sheet; this 
 is to make it necessary for the receiving clerk to count carefully 
 every article to determine whether the correct amount has 
 been received. The third copy remains in the purchasing 
 department and is filed with the unfilled orders. Some con- 
 cerns make a fourth copy, which may be used for follow-up 
 purposes in special cases. 
 
 When the goods have arrived at the receiving department, 
 and have been counted, the second sheet is returned to the 
 purchasing department, is checked and attached to the invoice, 
 and sent to the account department for record and payment. 
 The third copy is now removed from the unfilled orders and 
 filed with the filled orders. The illustration on page 105 shows 
 the purchase order forms used by one concern. 
 
 Unless goods ordered are received by the time they are 
 needed, important work may be held up for lack of the material 
 ordered. One purchasing agent uses a simple follow up for 
 checking deliveries promised for certain dates. 
 
 One buyer's follow up. He uses a sheet about 83/2^11 
 inches, ruled with 31 columns hke that shown on page 106. 
 At the top, these represent the days of the month. In the 
 wider column at the left of the sheet is written the name of the 
 supply house, and a brief summary of the goods ordered, to- 
 gether with the date ordered. A pencil check mark ( V ) is 
 then made in the column under the date when delivery is to 
 be expected. 
 
Date 
 
 Accounting Department 
 L. Williams & Sons, 
 
 Freight 
 
 Date rec'd. 
 
 No. 
 
 O.K'.d by 
 
 Date 
 
 Receiving Department 
 L. Williams & Sons, 
 
 Freight 
 
 Date rec'd. 
 
 No. 
 
 O.K'.d by 
 
 Date 
 
 L. Williams & Sons, 
 
 I-Tew London. Conn. 
 
 Please furnish' us the following material at oncer 
 
 Ship via. 
 
 Place this number on your invoice 
 Our requisition No. 498 
 Terms 
 Distribution 
 
 L. Williams & Sons, 
 
 By 
 
 Separate at this line and return to 
 
 Acknowledgment of Order 
 
 .191 
 
 L. WilHams & Sons, 
 New London, Conn. 
 
 We acknowledge receipt of your order No. 535. and will ship as follows: 
 
 FIGURE 34: Here are the purchase orders described on page 104. The one in 
 
 front is the original order. The concern from which the goods are ordered tears 
 
 off the lower half, fills it out, and returns it to the purchasing agent. This teils the 
 
 purchasing agent when and by what route to expect the shipment. 
 
 105 
 
A rt-irip 
 
 QUOTATIONS 
 
 Size and quality Quantity ] 
 
 Date 
 
 Firm 
 
 Catalog 
 file 
 
 Terms 
 
 Time needed 
 for delivery 
 
 Price 
 
 Discount 
 
 Freight 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 35: Purchasing agents must keep some kind of records of quotations 
 and a card like this helps. The buyer has his quotations where he can get at them 
 and he does not have to get new prices whenever he wants to buy something- 
 
 Daily Follow-Up On Purchase Orders 
 
 Ordered 
 from 
 
 Date 
 ordered 
 
 Order 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 " 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 36: A follow up like this helps the purchasing agent keep track of pur- 
 chases. In the first three columns he enters the details of each order and checks 
 the date when delivery is due. If not received on time he finds out why. 
 
 106 
 
THE PURCHASING DEPARTMENT 107 
 
 How the follow up works. Orders are then followed up 
 in this fashion: from two to five days before the date set for 
 deUvery the pui-chasing agent or his assistant calls up the supply 
 house and asks what progress is being made on the order. The 
 reply will fall into one of three classes; thus: 
 
 1. Delivery will be made on time 
 
 2. Delivery will be made at a later date than 
 
 originally agreed 
 
 3. Can't tell when dehvery will be made 
 
 If the supply house says the order will be delivered at or 
 before the time agreed upon, then no mark is made on the 
 follow-up sheet. But if delivery is going to be late, a red check 
 mark is placed against the new date; each time the date is 
 postponed a new red check is made against the new date. When 
 dehvery is finally made, a blue check mark is made on the date 
 of delivery. This shows that the order has been completed, 
 and no further follow up is necessary. 
 
 The red check mark serves a double purpose — it not only 
 shows that deliveries are late, but it also shows which firms 
 do not make deliveries when promised. This information 
 may be valuable when placing orders in which prompt deliv- 
 eries are an important factor. 
 
 Every morning the follow-up sheet is checked with the ship- 
 ments received during the previous day, a list of which the re- 
 ceiving clerk sends to the purchasing department every night. 
 
 The receiving clerk, who is often the stockkeeper as well as 
 shipping clerk, is expected to receive the goods dehvered, and 
 count and check them carefully against his duplicate copy of 
 the purchase order. If no errors are found, the goods are turned 
 over to the storekeeper and the purchase order sent to the 
 purchasing department, where it is filed with the filled orders. 
 In case errors or damaged goods are found, the mistakes are 
 followed up until all corrections have been made and the trans- 
 action is definitely closed. 
 
 Some material may be received for which the receiving clerk 
 has no duphcate order. This, hke everything which comes in, 
 should be counted, checked, and recorded so that an exact 
 inventory of the stock will be on hand at all times. 
 
108 OFFICE TRAINING AND STANDARDS 
 
 Where the stores are kept. The store room, where the 
 stores, stock, suppUes, merchandise on hand, raw material, 
 or whatever name may be appUed to the material kept there 
 serves two purposes, which are of nearly equal importance. 
 The stores must be safe from fire or theft, and they must be 
 accessible when wanted. These two purposes should be served, 
 whether the stores are kept in a small closet, or in a 10-story 
 building, called a warehouse; whether they are kept in tanks, 
 like oil, or whether they are spread out over acres of ground, 
 like a lumber yard. 
 
 Safety from fire and theft. In some instances fireproof 
 vaults are required for safety; in others metal shelving or bins 
 or containers will serve the purpose. For our purposes, how- 
 ever, we will consider that the stores are kept in one or two 
 rooms, adjacent to the shipping department, and that metal 
 bins and shelving like those shown on page 109 are used to 
 hold the material. 
 
 Accessibility of materials. Unless stores are easy to get 
 at when wanted, time will be wasted in filling orders. Here 
 again there enters the same consideration we learned when we 
 studied filing. We decided then that the object of filing papers 
 is to be able to find them again quickly. 
 
 In considering where to file any letter or paper, we first 
 ask ourselves "Where will we look for this paper when we want 
 it?" Likewise in a storeroom we must ask ourselves this ques- 
 tion: "When we want this material, where is the most likely 
 place to find it?" and also: "Is it convenient to get at when 
 we want it?" 
 
 Immediately there occurs to us the thought that the ma- 
 terial that is called for oftenest should be placed nearest the 
 counter so as to save steps; and that very heavy material should 
 be stored near the floor, so as to require Httle lifting. As soon 
 as we have decided where material is to be put, then we ought 
 to label each bin and shelf and thus tag everything in a bin 
 or on a shelf, so that when the stock clerk is away the manager 
 or any authorized individual, can find material needed in an 
 emergency. On page 109 is shown the way one concern tags 
 its stock bins. 
 
o 
 
 BIN TICKET 
 
 Bir. No 
 
 Location 
 
 Material 
 
 Size and weight. 
 Finish 
 
 Send this ticket to office when only 
 
 . .remain in bin, and 
 
 replace it withi temporary ticket. 
 
 FIGURE 37: A ticket like this hung 
 on each bin will enable even an in- 
 experienced person to find material. 
 
 o 
 
 TEMPORARY BIN TICKET 
 
 Bin No._ 
 Location. 
 Material. 
 
 Size and weight 
 
 Finish . 
 
 When only is left in 
 
 bin, send regular ticket to storekeeper 
 and put this in its place. When re- 
 gular ticket is returned, hang both to- 
 gether until stock is above minimum, 
 after which remove this ticket. 
 
 FIGURE 38: This temporary ticket 
 takes the place of the regular one when 
 the minimum of stock is in the bin. 
 
 FIGURE 39: The shelves in this bin FIGURE 40: In this office the stock 
 
 can be adjusted to suit material of any clerks do their work on roller skates. 
 
 size required. It is called a unit bin. Is there any advantage in doing this? 
 
 109 
 
FIGURE 41 • In this stock room even an inexperienced worker can find materia 
 with little difficulty. The large cards on the ends of each stack tell what matenal 
 is kept in each section of bins; the small tags what is kept in each mdividual bnn. 
 The si'c of the bin varies according to the material. A bin tag is shown on page 1 09. 
 
THE PURCHASING DEPARTMENT 111 
 
 But the work of the stock clerk doesn't end with putting 
 material in the most convenient places, and knowing where 
 those places are. He should also be able to tell exactly how 
 much of any one kind of material is on hand at any time. 
 
 Knowing how much stock you have. There are two rea- 
 sons for this. The stock on hand is of course a part of the 
 assets of the company, and in making up a balance sheet the 
 manager must know how much stock is on hand. The other 
 reason for knowing how much stock is on hand is to be able to 
 obtain a new supply before the present supply runs out. 
 
 A good stock clerk never lets his stock of any article run 
 completely out before ordering a new supply. On the other 
 hand, he does not want to have so much ahead that it will 
 deteriorate before it is used, to say nothing of taking up space 
 for which the company may be paying rent. 
 
 Taking inventory of stock. Counting the stock is called 
 "taking an inventory." An inventory is simply a record of 
 what you have. A few years ago it was considered sufficient to 
 take an inventory of stock every six months or even once a 
 year. Today nearly every well-managed business insists upon 
 a monthly inventory at least, depending, of course, on the 
 nature of the business. 
 
 If these inventory or stock records are correctly handled 
 they show the value of the stock from day to day, prevent 
 overstocking, and tell whether certain articles are moving dur- 
 ing the different seasons. They also are of great value in the 
 adjustment of fire insurance. 
 
 The perpetual inventory. An inventory card filed topi- 
 cally or numerically may be kept by the storekeeper for each 
 article carried in stock. The card shows the date, the amount 
 received, also the date and amount dehvered, leaving a per- 
 petual balance of the amount on hand. The maximum and 
 minimum quantities to be kept in stock are also indicated, 
 showing the proper time for ordering. 
 
 It is of com-se important to take counts from time to time 
 in order to test the accuracy of the stockkeeper's balance. 
 These counts are usually checked by an inspector while being 
 taken, to insure their reliabiUty. 
 
112 OFFICE TRAINING AND STANDARDS 
 
 PURCHASING STANDARDS 
 
 The work of the purchasing department 
 
 1. The primary function of the purchasing department is to buy needed 
 material of the desired quality at the lowest price obtainable. Sometimes 
 this department is responsible also for receiving and checking goods when 
 they arrive. 
 
 2. By having all purchasing done through one department, it is often 
 possible to secure the lowest prices and close uniformity of material; also to 
 check accurately deliveries of material bought. 
 
 3. A purchase requisition is a written request for the purchase of supplies 
 and must be signed by the manager as well as by the person ordering the 
 material. 
 
 4. The purchasmg agent keeps close watch on the market conditions 
 relating to price and supply. 
 
 5. When the supply is plentiful, prices are usually favorable. For this 
 reason purchases should be made at such times, if possible, even if the 
 material purchased is not needed at that particular time. By the time the 
 material is needed, prices may be considerably higher. 
 
 6. A carefully kept set of records helps to eliminate mistakes and un- 
 certainty in buying. 
 
 7. If a far-sighted purchasing agent foresees a shortage it may be well 
 for him to purchase more than enough to satisfy the present demand, counting 
 on saving the difference in higher prices later on. 
 
 8. In getting estimates, the quality, the price, and the time an article 
 can be delivered must all be considered. 
 
 9. The location as well as the reliability of a firm may affect the prompt 
 delivery of an order. 
 
 10. A careful check should be kept of the time of delivery of goods in 
 order to avoid delays on subsequent orders. 
 
 PURCHASING STANDARDS 
 
 Values and prices 
 
 1. High prices do not always mean good values. 
 
 2. The supply or demand for an article does not always fix its value. 
 
 3. Air has no market value, although it is very common. 
 
 4. Sunshine cannot be purchased, although it is very common. 
 
 5. Purchasing at a low price may permit selling at a larger profit. 
 
 6. Competition in buying tends to raise prices because the buyers bid 
 against each other. 
 
 7. Much competition in production tends to lower prices. 
 
 8. A reputable trademark is often a guarantee of quality. 
 
 9. Control of supply may often fix prices. 
 
 10. Flour is more useful than diamonds, but there are not many diamonds, 
 (he demand for them is large, the supply is firmly controlled, and the prices are 
 therefore very high. 
 
THE PURCHASING DEPARTMENT 113 
 
 PURCHASING STANDARDS 
 
 Points of law 
 
 1. An offer to buy or sell may be withdrawn any time before it has been 
 accepted. 
 
 2. Your offer to buy is made when your letter is delivered, not when it 
 is mailed; but you may withdraw your offer before the offer is accepted. 
 
 3. The contract is completed when the letter accepting your offer is 
 mailed; therefore you cannot withdraw an offer after the acceptance has 
 been mailed, even though you never receive the letter of acceptance. 
 
 4. If an offer is worth accepting, accept it at once, or it may be with- 
 drawn. 
 
 5. If an article is damaged when shipped, or while in transit, and the 
 carrier is chosen by the seller, the buyer must either return the article or pay 
 for it. If he is compelled to replace the damaged article by a sound one at a 
 higher price, he may recover the difference. 
 
 6. If an article you buy is not as represented, you can get your money 
 back or collect damages actually sustained pro\aded that you return the 
 article without unnecessary delay. 
 
 7. If, however, you purchase damaged goods after inspection, then you 
 cannot collect damages. "Caveat emptor" means: let the buyer beware. 
 
 8. If you buy an article and leave it in possession of the seller, you are 
 the loser in case it is stolen. 
 
 9. If you buy an article on trial, the seller is the loser in case it is destroyed 
 before there has elapsed a reasonable time for trying it. 
 
 10. If you buy with the privilege of returning, you are the loser in case 
 the article is lost. 
 
 11. There are differences in rules of law in the different states of the 
 United States; generally the law of the state in which delivery of the goods 
 is to be made is the law which fixes the rights of the parties. 
 
 STANDARD QUESTIONS 
 
 The work of the purchasing department 
 
 1. What are the objects of a purchasing department? 
 
 2. Why should all purchases for a firm be made through one department? 
 
 3. How may the buyer know when purchases are necessary? 
 
 4. What are purchase requisitions? 
 
 5. What information is required by the purchasing agent? 
 
 6. Why should the purchasing agent watch the market? 
 
 7. Is it ever wise to purchase more than is needed simply because the 
 price is low? Why? 
 
 8. Where does the purchasing agent get his information? 
 
 9. How may catalogs and price lists be filed and indexed? 
 
 10. What three factors must be watched in getting estimates? 
 
 11. How are quotations filed? 
 
lU OFFICE TRAINING AND STANDARDS 
 
 12. How many copies of purchase orders are usually made? Why? 
 
 13. Why should all deliveries be carefully checked? 
 
 14. How does the purchasing agent know when goods are received? 
 
 15. How may the buyer keep track of an order before it has been delivered? 
 
 16. Why must the buyer know the financial responsibility of the firm with 
 which he deals? 
 
 17. Why is the location of the house from which he purchases of im- 
 portance to the buyer? 
 
 18. What are the advantages of buying in large quantities? 
 
 19. Why should the buyer know about the source of supply? 
 
 20. Why should the buyer know about the cost of production? 
 
 STANDARD QUESTIONS 
 
 Values and prices in purchasing 
 
 1. Do high prices necessarily mean good quality? 
 
 2. If the cost price of an article is reduced, would the market value 
 also be reduced? 
 
 3. If two articles cost the same to manufacture, would the market price 
 be the same? Why or why not? 
 
 4. What effect would a large crop of potatoes have on the market price? 
 
 5. What effect would a great war have on the market price of wheat? 
 
 6. What effect would a small crop of apples have on the market price? 
 
 7. What effect would a large number of manufacturers have on the 
 market price of an article? 
 
 8. What effect would a large number of buyers have on the market 
 price of an article? 
 
 9. Why does a diamond necklace cost so much more than a barrel of flour? 
 10. Why does the most useful thing in the world have no market value? 
 
 STANDARD EXERCISES 
 
 Points of law in purchasing 
 
 1. What is meant by, "Let the buyer beware?" 
 
 2. Is the innocent buyer protected when he purchases stolen goods? 
 
 3. In what kind of establishment does the purchasing agent buy raw 
 material? 
 
 4. What would a wholesale clothing purchasing agent buy? 
 
 5. If an order to buy is made by letter may the offer be withdrawn? 
 
 6. Is the offer made when the letter is posted or delivered? 
 
 7. If an offer by letter is accepted by letter may the offer be withdrawn 
 before the acceptance is received? 
 
 8. Is the offer accepted when the letter is mailed or delivered? 
 
 9. If the acceptance by mail is never received, is the contract completed? 
 
 10. If a plainly defective article is inspected and purchased, what are the 
 rights of the buyer? 
 
CHAPTER VIII 
 
 THE SALES DEPARTMENT 
 
 OBVIOUSLY the purpose of the sales department is to 
 sell the product of the company to its customers. To 
 understand just how this purpose is carried out, and 
 the relation of the sales department to the rest of the business, 
 it will be worth while to glance at the chart on page 116. 
 
 This chart shows how one firm has organized its sales de- 
 partment. The sales manager is, of course, the head of the 
 department, and under him are the district sales managers 
 and then the salesmen. The branch managers are also some- 
 times called district sales managers. 
 
 What the salesmen do. The salesmen get the orders. 
 They may travel from city to city, or they may be located in 
 one place, which they cover thoroughly, or they may sell right 
 in the store itself. The traveling salesmen call upon their 
 customers, while in a store the customers come to the salesmen. 
 In any case the object is to sell the product of the firm. 
 
 Doing business by mail. Considerable business is done 
 by mail as well as by salesmen. This is usually called mail- 
 order business. Some houses do nothing else, employing no 
 salesmen at all, either in the store or on the road. Their cus- 
 tomers purchase from a catalog. 
 
 Advertising as a source of sales. There is another 
 important source of sales— through advertising. Advertising 
 appropriations run from the cost of a small classified adver- 
 tisement into milUons of dollars, covering full pages of national 
 magazines and requiring careful preparation. 
 
 Having thus seen what the sales department does, we are 
 now ready to consider the office work required in connection 
 with marketing the firm's product. 
 
 115 
 
Sales 
 manager 
 
 Advertising 
 manager 
 
 Copy writers 
 
 Rate man 
 
 Catalog editor 
 
 — Record clerks 
 
 Mail clerks 
 
 Branch 
 managers 
 
 Salesmen 
 
 Dealers 
 
 Consumers 
 
 - Authorized agents 
 
 Direct 
 salesmen 
 
 r- Retail dealers 
 
 Consumers 
 
 Mail order 
 manager 
 
 Follow-up clerks 
 
 Correspondents 
 
 FIGURE 42 : The sales manager is in charge of the sales department. Responsible 
 
 to him in this organization are the advertising manager, the branch managers, the 
 
 salesmen, and the mail-order manager. The chart shows what each is responsible 
 
 for. All sales departments may not be organized just like this one of course. 
 
 116 
 
THE SALES DEPARTMENT 117 
 
 What the sales manager wants to know. The first ques- 
 tion the sales manager asks is: "How many dollars' worth of 
 goods are we seUing?" Having found this out, his next ques- 
 tion is: ''What is it costing us to sell that quantity of goods?" 
 And finally: "How can we sell more goods, and yet keep down 
 the expense of selling them?" 
 
 All of the records concerned with the sales department are 
 devised with these three questions in mind, and it will be in- 
 teresting to see how the sales manager gets the information 
 he is seeking. 
 
 Reports the salesmen make. Each salesman sends in a 
 daily report of his prospects, calls, and sales. This information 
 is transferred to the office card records and summaries made 
 for comparison. From these statistics charts and graphs are 
 prepared showing the percentage of prospects sold, also the 
 general relation of cost to sales and the ratio of the individual's 
 sales and expenses to the average. 
 
 All these records show the producing ability of the sales- 
 man, whether the business is up to the standard in each dis- 
 trict, and the cost for each dollar of sales. A salesman's typical 
 daily report is shown on page 118. 
 
 Likewise the sales slips which the store salesmen send in 
 are recorded and totaled. In large establishments where much 
 compiling of statistics is required and the accounting is com- 
 plex, a tabulating and recording machine is frequently used. 
 
 The daily sales report. From these sources, and from the 
 report of the mail orders, the summary of the day's sales is 
 made up and placed on the sales manager's desk the next morn- 
 ing. On page 119 is shown the report that is made to one 
 manager. This daily report shows not only the sales made, 
 but also the cost of making the sales, thus answering the first 
 two questions of the sales manager. 
 
 This leaves the last and sometimes the most important 
 question of all: "How can we sell more goods and yet keep 
 down the expense of selhng them?" We will leave to books on 
 selHng the discussion of the ways and means used to increase 
 sales, and confine ourselves to examining the office work of 
 the sales department concerned with giving the sales manager 
 
Ciiaom^n'o uiaaUlu ovnoncA ronnrt fnr thp wppk pnriinff vJ^ 
 
 .^^L^ 
 
 /7 
 
 19 IT 
 
 
 
 
 
 Date 
 
 Breakfast 
 
 Dinner 
 
 Supper 
 
 Total 
 meals 
 
 Bed 
 
 Total 
 
 Railroad 
 
 Laundry 
 
 'bus 
 
 Miscellaneous 
 
 Miscellaneous 
 
 Total 
 
 Sales 
 
 % 
 
 Sunday 
 
 .^56-" 
 
 Jsr 
 
 .CO 
 
 l.lo 
 
 2.0C 
 
 3.7o 
 
 
 
 
 
 
 3.10 
 
 
 Monday 
 
 .v55- 
 
 .r-o 
 
 .rn 
 
 1.35 
 
 Z^o 
 
 3.35 
 
 /.7^ 
 
 
 2f 
 
 .^f 
 
 
 (,.60 
 
 */.. 
 
 ^ 
 
 Tuesday 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Wednesday 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Thursday 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Friday 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Saturday 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Total 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cash on ha 
 
 nrtf 
 
 
 Expenses ( 
 
 nr WftPk 
 
 
 
 
 
 I 
 
 o 
 
 
 
 o o 1 
 
 FIGURE 43: Traveling salesmen's expenses are usually paid by their company. 
 
 Every concern wants to know just how much each salesman is spending as well 
 
 as earning, so they require the salesmen to send in expense reports each week. 
 
 Daily Report of Sales Expense Report 
 
 Dealers Called On 
 The namt of every dealer called 
 on mujt be given, toeether with 
 hii addrew and the amount sold 
 
 Buyer's Name 
 This must be shown 
 
 II Amount • The following blanks must be filled in 
 
 Town „ „„, ,„M i r'"L'^'"j^j"'r°r;Ta»^'of'"rr7'^rS 
 
 mark "X" j '"»'«• • ^^, ,„,„„ „„ 
 
 (U^ K^yrOXh 
 
 £imi. Wsuin-wm 
 
 \..dlc..yJb '6o 
 
 O i Breakfast at TJ jdjL.A„^ 
 
 
 
 ^ 
 
 Jl^!vt<5U/ 9h-«-Vi.<U-*-»v>' 
 
 
 
 C^ i D,n„er a, M. P.MjUvUrjU> 
 
 
 IL 
 
 
 ^^,214^ ^^^7 
 
 
 \ Supper at n " 
 
 
 Si 
 
 
 
 
 i Bed at " " 
 
 
 ff> 
 
 
 
 
 i Left U/-«i£»^ at /Ooeloek 
 
 
 
 
 
 
 : Arrivedif-.(33lM^"tWJ«oclock 
 
 
 
 
 
 
 ! Fare (by tram, 4>oM, irKf^ 
 
 -L- 
 
 21 
 
 
 
 
 ■ (Cancel unnecessary words) 
 
 
 = 
 
 
 
 
 ^== 
 
 
 
 — 
 
 = 
 
 
 
 
 
 
 
 Total sales for day 
 
 /oo 
 
 0O : Total expenses for the day 
 
 y 
 
 re 
 
 Total expenses for day 
 
 3 
 
 jTO : Total sales for day 
 
 hoc. 
 
 Oo 
 
 (\Ji^, Xx^t^rvJ 
 
 yu i %rRy^j J-ouy 
 
 ,^r^J^ 
 
 
 TTm rcpurt must U 
 
 u.uiicJ every day cxce 
 
 Salesn 
 
 ^luig Su 
 
 nday ! 
 
 ilcsnu 
 
 
 FIGURE 44: Many salesmen are required to report every day the calls made, as 
 
 well as the names of the customers and their buyers. One company gets a daily 
 
 expense report at the same time and compares total expenses with total sales. 
 
 118 
 

 
 
 
 
 
 
 
 
 DAILY SALES 
 
 
 
 
 
 
 
 
 
 
 
 
 Chair. 
 
 Tabic 
 
 Dmaer, 
 
 Beds and 
 
 bedding 
 
 Parlor 
 furniture 
 
 Carpet. 
 
 Kitchen 
 furnish- 
 ings 
 
 Wall 
 paper 
 
 Miscel- 
 laneous 
 
 Shop 
 
 Summary 
 
 
 Sales 
 
 Cost 
 
 Salts 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sales 
 
 Cost 
 
 Sale, 
 
 Cost 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IJ- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 li 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ifi- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 21 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 22 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 23 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 24 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 S6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 27 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 28 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 29 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Total 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 45: Most sales managers are live wires — otherwise they wouldn't be 
 
 sales managers. They want the latest methods and they want to know just what 
 
 is going on in their departments. A daily report of sales like this often helps. 
 
 DAILY SALES SHEET 
 
 Date Temperature 
 
 Number Visitors Day Weather 
 
 
 Name Description 
 
 Lot 
 
 Cash 
 
 c 
 
 o.d. C 
 
 harge 
 
 coats 1 
 
 Su,ts 1 
 
 Dresses | 
 
 Sk.rts 1 
 
 Petticoats 
 
 Pur, 1 
 
 
 No 
 
 Sale 
 
 
 A 
 
 ccount C 
 
 
 Bale C 
 
 
 ale ( 
 
 -ost E 
 
 ale C 
 
 ost 
 
 ale C 
 
 ost £ 
 
 ale C 
 
 
 »le 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 46: Here is another daily sales report for the sales manager. By care- 
 fully studying these every day, it is possible to compare today's sales with yester- 
 day's and with the same day last year. Any increase or decrease is apparent. 
 
 119 
 
ISO OFFICE TRAINING AND STANDARDS 
 
 the information and data that will help him solve his problem 
 of increasing sales without increasing cost, which, after, all, is 
 really not so difficult as it might at first seem. 
 
 Handling sales letters. Three methods are commonly 
 used: letters to salesmen, sometimes called "pep" letters or 
 "ginger" letters; letters to customers, usually called sales 
 letters; and du-ect and indirect advertising. 
 
 Letters to the salesmen are sent whenever occasion requires. 
 Sales letters may be sent only occasionally, or, as is more often 
 the case, they may be mailed at certain intervals. A series of 
 letters mailed in this way is sometimes called a follow-up series 
 because each letter is expected to follow up the message carried 
 in the preceding letters. 
 
 Follow-up sales letters are usually sent out on a prearranged 
 schedule, which shows just when the proper letter is to be mailed. 
 On page 121 is shown the mailing schedule of one large mail- 
 order house. 
 
 The use of mailing lists. "Maihng list" is the name 
 usually given to the hsts of names of prospects to whom sales 
 letters and other advertising material are mailed. Some sales 
 managers have maihng hsts which require constant attention 
 to keep them up to date, because of changed addresses, deaths, 
 and so forth. One sales manager considers that it costs more 
 to correct his prospect lists than to make up new lists of pros- 
 pects every year. Of course the fist of customers is kept up 
 to date all the time, but this man found there were so many 
 changes in the prospect lists that it took longer to make the 
 changes than to make up new lists. He gets new names from 
 advertisements, clippings, salesmen, or lists purchased from 
 directory and mailing companies who make it a business to fur- 
 nish Usts in various fines of trade. 
 
 Some concerns keep their mailing fists on cards, while others 
 use addressing machine plates or stencils. In any case the 
 method of fifing is usually a combination of the alphabetical and 
 geographical systems, as described in Chapter VI. 
 
 Recording the results of advertising. Milfions of dollars 
 are said to be spent each year in ineffective advertising, both 
 direct and indirect. Perhaps one reason for this waste of money 
 
Series t- 
 To Secure 
 NewDealefs 
 
 Clip 
 
 15 Days 
 
 Mailing Z 
 
 BtiOatiK 
 ABC- 
 E-HL 
 
 Form 
 Letter 
 NDSor 
 
 howWe 
 Sell" 
 
 Blank 
 
 bisavnl 
 iheet 
 
 \Riturn 
 Ho 
 
 Put On 
 Dedlei- 
 List 
 
 aip 
 
 30 bap 
 
 MAIUNG5 
 
 
 Mailitig 
 
 3 
 
 No 
 
 Form 
 Letter 
 
 ftwW? 
 Sell- 
 
 Smped 
 
 hepty 
 
 
 
 ChD 
 30Diys 
 
 Beply 
 
 {■dAIUNGZ 
 
 
 
 
 No 
 
 Series AD 
 
 fieply 
 
 Peply 
 
 
 
 
 
 
 
 
 No 
 
 Drop 
 
 
 Peply 
 
 
 FIGURE 47: This schedule shows one concern just when to mail its follow-up 
 
 sales letters. Fifteen days after number 1 is mailed, if no reply is received, number 
 
 3 is sent — if a reply is received number 2 goes out— and so on, to the last one. 
 
 SI 
 
 Date 
 
 S2 
 
 SI 
 
 S3 
 
 S2 
 
 S4 
 
 S3 
 
 S5 
 
 S4 
 
 S6 
 
 S5 
 
 SA 
 
 S6 
 
 SB 
 
 SA 1 
 
 
 
 
 
 rj 
 
 5 
 
 5 
 
 20 
 
 5 
 
 20 
 
 5 
 
 20 
 
 5 
 
 20 
 
 5 
 
 20 
 
 
 
 
 
 
 
 6 
 
 21 
 
 6 
 
 21 
 
 6 
 
 21 
 
 6 
 
 21 
 
 
 
 7 
 
 7 
 
 7 
 
 7 
 
 7 
 
 7 
 
 7 
 
 Z2 
 
 7 
 
 22 
 
 7 
 
 22 
 
 7 
 
 22 
 
 
 
 
 
 8 
 
 8 
 
 8 
 
 8 
 
 8 
 
 23 
 
 8 
 
 23 
 
 6 
 
 23 
 
 8 
 
 23 
 
 8 
 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 24 
 
 9 
 
 24 
 
 9 
 
 24 
 
 9 
 
 24 
 
 
 
 
 
 
 10 
 
 
 10 
 
 10 
 
 25 
 
 10 
 
 25 
 
 10 
 
 25 
 
 10 
 
 25 
 
 
 
 11 
 
 11 
 
 11 
 
 11 
 
 11 
 
 11 
 
 11 
 
 26 
 
 11 
 
 26 
 
 11 
 
 26 
 
 11 
 
 
 
 
 12 
 
 12 
 
 12 
 
 12 
 
 12 
 
 12 
 
 12 
 
 27 
 
 12 
 
 27 
 
 12 
 
 
 
 
 
 
 13 
 
 13 
 
 13 
 
 13 
 
 13 
 
 13 
 
 13 
 
 28 
 
 13 
 
 28 
 
 13 
 
 
 
 
 
 
 
 
 
 14 
 
 
 14 
 
 14 
 
 29 
 
 14 
 
 29 
 
 14 
 
 
 
 
 
 30 
 
 
 
 15 
 
 15 
 
 
 15 
 
 15 
 
 30 
 
 15 
 
 30 
 
 15 
 
 
 
 
 
 
 
 
 Ifi 
 
 
 16 
 
 16 
 
 16 
 
 16 
 
 31 
 
 16 
 
 31 
 
 
 
 
 
 17 
 
 17 
 
 17 
 
 17 
 
 17 
 
 17 
 
 17 
 
 17 
 
 17 
 
 
 17 
 
 1 
 
 17 
 
 1 
 
 
 2 
 
 18 
 
 la 
 
 18 
 
 18 
 
 18 
 
 18 
 
 18 
 
 18 
 
 18 
 
 
 18 
 
 
 
 
 
 19 
 
 19 
 
 19 
 
 19 
 
 19 
 
 19 
 
 19 
 
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 19 
 
 3 
 
 
 
 
 
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 25 
 
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 25 
 2S 
 
 24 
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 24 
 
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 26 
 
 9 
 10 
 
 25 
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 9 
 10 
 
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 25 
 
 9 
 10 
 
 
 
 
 
 
 
 27 
 
 27 
 
 27 
 
 
 27 
 
 
 27 
 
 11 
 
 
 
 28 
 
 28 
 
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 28 
 
 
 28 
 
 28 
 
 28 
 
 
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 12 
 
 
 
 29 
 
 29 
 
 29 
 
 29 
 
 29 
 
 29 
 
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 29 
 
 
 29 
 
 
 
 
 
 
 30 
 31 
 
 1 
 Z 
 3 
 
 4 
 
 
 
 
 30 
 
 
 30 
 
 30 
 
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 30 
 
 14 
 
 30 
 
 
 
 
 31 
 
 31 
 1 
 2 
 3 
 
 4 
 
 31 
 
 1 
 2 
 3 
 
 4 
 
 31 
 
 31 
 
 31 
 
 31 
 
 31 
 
 
 31 
 
 16 
 
 31 
 
 1 
 
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 1 
 
 16 
 
 2 
 3 
 
 4 
 
 2 
 3 
 
 2 
 3 
 
 4 
 
 2 
 3 
 
 4 
 
 2 
 3 
 
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 2 
 3 
 4 
 
 18 
 19 
 
 2 
 3 
 
 4 
 
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 18 
 19 
 
 2 
 
 3 
 
 4 
 
 17 
 18 
 19 
 
 2 
 
 3 
 
 4 
 
 17 
 18 
 19 
 
 FIGURE 48: This mailing schedule isn't as complicated as it looks. The symbols 
 
 at the top represent a series of follow-up letters. Find in the second column the 
 
 date of the last letter. In the first column is the date for the next letter. 
 
 121 
 
1 
 
 
 
 
 
 
 1918 
 
 roaow-up record 
 
 DOLLARS 
 
 
 
 
 \ 
 
 
 / 
 
 
 
 
 
 \ 
 
 1 
 
 
 
 - snow • 
 
 THIBD • 
 
 fOURTli - 
 
 — nnH - 
 
 -SIXTH - 
 
 ntcuuw 
 
 FOUOW'UP 
 
 ifiras 
 
 
 
 OT 
 
 \ 
 
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 — SOWIH - J 
 
 rasoMi misnv 
 
 ^ 
 
 
 
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 vT 
 
 ^.j. 
 
 \ 
 
 
 
 
 
 
 
 
 
 
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 N. FIB.IMl«ra.lUTJUIEIUlVW&SO>T0CT NOV. DO. 
 
 1 Utter J L 
 
 Fifth 
 
 > 11 M 7 14 21 ]• 
 
 Weeks 
 
 FIGURE 49: A graph like this shows FIGURE 50: And this chart shows 
 
 just how much business each letter in the actual sales in dollars which each 
 
 the follow-up series is bringing in. letter in another series produced. 
 
 M i ll 
 
 Advertising 
 Cost 
 
 I I I I 
 
 Number of 
 Inquiries 
 
 I I I I I 
 
 Number of 
 Orders 
 
 I I I I I 
 
 Amount of 
 Sales 
 
 I I I I I 
 
 rr 
 
 Advertising 
 per Inquiry 
 
 h 'l5 % V; '/? 'I<j 'If 'IS 'IL 'I-J 'Ig 'If If 'IS U 'Ij 'IS If 'If 'IS U 'Ij '/» 'If 'If 'IS 'U 'h 'If 'H If IS 'IL if IS 'if 
 
 FIGURE 51: A chart like this one presents facts just as truly and much more 
 
 vividly than long, dull columns of figures. It also makes possible a comparison of 
 
 sales with costs at a glance. Each column represents one year of advertising. 
 
THE SALES DEPARTMENT 123 
 
 is the lack of an effective plan for checking up the returns. A 
 concern may feel sure it has an article to sell that is desired by 
 a certain class of people, or it may be able to write an interesting 
 story about it, or it may know the best time to advertise the 
 article. But it is not sure of the best medium through which 
 this information is to be given to the pubHc. 
 
 On this account it is necessary to keep a complete record of 
 all returns, both of inquiries and the actual sales closed. Such 
 records usually run for some time in order to make the compari- 
 sons of different mediums of any value. 
 
 The results obtained from the sales letters are recorded and 
 charted for the sales manager. By "keying" each follow-up 
 and form letter so as to show the number of customers secured, 
 a record can be made showing which letters are effective and 
 which ones should be strengthened or discarded. 
 
 If a letter or a maiUng should show particularly good results, 
 the sales manager would want to use that letter again some time 
 and perhaps get some good points to use in other letters. The 
 measure of any effort is the result that effort produces, and it 
 is by results that the manager determines which are the best 
 letters to use. The charts one firm uses for watching the results 
 of its mailings are shown on page 122. 
 
 How to check advertisements. Just as the results 
 obtained from sales letters are checked, recorded, and tabulated, 
 so also are the results obtained from advertising. While it is 
 sometimes a little more difficult to get accurate records of results 
 from newspaper and magazine advertising than from direct- 
 by-mail advertising, yet comparative returns are not at all 
 impossible. Such returns are particularly valuable in planning 
 the advertisement and in deciding which mediums to select 
 for advertising purposes. 
 
 In one method that is employed the records are kept fairly 
 accurate by ''keying" each advertisement. This is done by 
 using some symbol or distinctive mark in the address line or 
 as a part of the coupon which will easily identify the source 
 of the inquiry. Sometimes a department letter is used, such 
 as ''Department A" in one medium, while in another pubhca- 
 tion the address might be "Department C." Sometimes the 
 
124 OFFICE TRAINING AND STANDARDS 
 
 numbers in the address may be either street or room numbers 
 or several different addresses may be used. 
 
 Many advertisers use a coupon on which is printed the name 
 of the publication containing the advertisement. One advan- 
 tage in using a coupon is that it usually seems to make it easier 
 for the writer to send in his order or to make an inquiry. 
 
 When the repUes come in they are assorted according to 
 "key" numbers and it is then a comparatively simple matter 
 to record the number of replies to the advertisement. The 
 records usually show the name of the pubhcation and all neces- 
 sary information in regard to the advertisement and the results 
 obtained from that advertisement. 
 
 A comparison of these records helps the manager to select 
 the profitable media and to discard the unprofitable ones. They 
 also indicate the size and kind of copy which is most productive 
 and the season of the year when the best results are obtained 
 for each particular proposition. One concern uses a card like 
 that shown on page 125 for keeping track of the results obtained 
 from its advertising. 
 
 Some firms insert advertisements in series, on the same plan 
 as a follow-up series of letters. This also requires a schedule, 
 of course, just Uke the letters, and the form on page 125 shows 
 how an eastern corporation keeps its records of advertisements 
 which appear in series. 
 
 Filing advertising material. Many advertising managers 
 collect clippings, booklets, lectures, advertisements, and any 
 other material that will be of service in preparing copy in the 
 future. In filing this material the same principles apply to a 
 certain extent that are described in Chapter VI. Perhaps 
 topical filing is more widely used than any other, although of 
 course circumstances may require other methods or combina- 
 tions of methods. 
 
 Photographs, drawings, and proofs are almost always filed 
 in vertical file drawers if possible. If they are arranged nu- 
 merically and card indexed, reference to them is made quickly 
 and conveniently without loss of time. Of course when a 
 drawing or a picture is removed from the file a note is made 
 on the card showing where it has gone. 
 
SCHEDULE OF ADVERTISING 
 
 Whole number _ 
 Copy sent 
 
 .Cuts s 
 .Page. 
 
 .Date of 
 .Copy by. 
 . Lines 
 
 MEDIUM 
 
 DATE 
 
 MEDIUM 
 
 DATE 
 
 PUBLICATION 
 
 CLOSE 
 
 PUBLICATION 
 
 CLOSE 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Lines to be treated . 
 
 Remarlts on copy. 
 
 Remarks on illustrations . 
 
 FIGURE 52: Advertisements which are inserted in series have to be prepared en 
 
 schedule. That is what this form does. It gives the dates of publication and when 
 
 the advertisement must be ready. It is helpful in writing the advertisement. 
 
 1 
 
 Publication | 
 
 
 Jan 
 
 Feb 
 
 Mar 
 
 Apr 
 
 May 
 
 June 
 
 July 
 
 Aug 
 
 Sept 
 
 Oct 
 
 Nov 
 
 Dee 
 
 Sp.iir used 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cost 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 3 
 
 ^ 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 Total 
 
 Cost 
 
 Jan 
 
 Inquines 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Oid.rs 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Fd. 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Orders 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Mi. 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ordeis 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Apt 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Orders 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Mdy 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Oul.rs 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ju.„ 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Oidtrs 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 July 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Orders 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Aus 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ord.rs 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Stpt 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Orders 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ocl 
 
 Inquirir. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Orders 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Nov 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Orders 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Dtc 
 
 Inquiries 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ordeis 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 53: Advertisers in magazines want to know just how much business 
 
 their advertising is bringing in. This card provides for one year's advertising in 
 
 one publication. The resulting inquiries and orders are recorded belowo 
 
 125 
 
FIGURE 54: This is one method of filing large photographs, maps, or charts 
 
 They are placed flat in the drawers. Although they are not so easily found perhaps 
 
 as if filed vertically, it is claimed flat filing keeps them in better shape. 
 
 FIGURE 55: Here is a cabinet foi' filing large photographs vertically. Since 
 
 they arc placed in portfolios, they keep clean. Perhaps the greatest advantage of 
 
 this method is that they are easily located by means of the inde.x on the door. 
 
 1 ■_'('. 
 
THE SALES DEPARTMENT 127 
 
 More or less difficulty is often experienced in filing electro- 
 types, halftones, and zincs because it is not always easy to give 
 a "cut," as it is called, a name by which it may be readily iden- 
 tified and located. One plan that works very well is to file the 
 cuts by number in shallow drawers provided for this purpose. 
 
 Proofs of the cuts are pasted on looseleaf sheets 83/2x11 
 inches and filed in regular file drawers with guides to show the 
 subjects covered. A notation is made on the index card when- 
 ever the cut is sent out, showing where it went and when it 
 will be returned. 
 
 A word about contracts. Since nearly every sales and 
 advertising department handles many contracts, it will help to 
 become familiar with a few basic principles covering contracts. 
 The essential features of a contract are: first, the parties must 
 be competent; second, there must be a consideration; third, 
 there must be a definite subject matter; fourth, there must be 
 mutual assent; fifth, the time must be definite. 
 
 Contracts are written, oral, or implied. A written contract 
 is no stronger than an oral or implied one, but the method of 
 proving oral and implied contracts is sometimes more difficult 
 than the written contract, which generally proves itself. One 
 business man persistently refused to sign contracts of any kind. 
 
 ''If my word is not good," he would say, "then we can't 
 do business." 
 
 One day he rented a building for five years at a rate of $500 
 a month. As usual he refused to sign a lease and he soon took 
 possession under his customary oral agreement. 
 
 In a little over a year rents rose in his district, an industrial 
 boom set in, and a local manufacturer offered the owner $800 
 monthly rental for the building on a 10-year lease. The owner 
 accepted and mailed the occupant a 30-day notice to vacate. 
 
 When the tenant consulted his lawyer he was advised to 
 move because the law provided that a contract which cannot 
 be carried out in less than a year must be in writing, and he 
 didn't have any written contract at all. After this costly 
 experience the sufferer resolved to reduce all agreements to 
 writing, and in the case of all involved contracts to consult his 
 attorney without fail. 
 
128 OFFICE TRAINING AND STANDARDS 
 
 An agreement to purchase merchandise valued at $500 or 
 over is not binding unless it is in writing and signed, or unless 
 paid at the time the order is given. For example, a flour sales- 
 man telephones a customer that he has a hundred-barrel lot of 
 flour for sale at $5 a barrel, and the customer says he will take 
 it; the salesman orders the hundred barrels shipped to the 
 customer from the mill. 
 
 Before the flour arrives the price falls to $4 a barrel and 
 the customer refuses to accept it. He cannot be compelled to 
 take the flour, and the seller stands the loss. Had the customer 
 signed an agreement to take it, or had he paid any money on 
 account of the purchase, or had the salesman delivered one 
 barrel of flour, the customer might have been compelled to pay 
 the price at which he had agreed to buy the flour. 
 
 In some states this would be true if the price of the lot of 
 goods sold were only $50; and in a very few states, neither 
 writing, part delivery, nor payment of part of the purchase 
 price is required. Agreements to sell real estate must, how- 
 ever, always be in writing. 
 
 SELLING STANDARDS 
 
 What a contract is, and when it is binding 
 
 1. A con trac t is an agreement between two or more persons. 
 
 2. The parties to a contract must be competent. 
 
 3. A contract made by a minor is not void but it is voidable. 
 
 4. A contract made with an intoxicated person is not enforceable, if it 
 is apparent that he cannot understand what he is doing. 
 
 5. The "minds must meet" or agree in order to make a contract. 
 
 6. A says: " I think I will sell my horse for $100." Bsays: "I accept." 
 This does not make a contract. 
 
 7. A contract made by force is illegal. "An act done by me against my 
 will is not my act." 
 
 8. Generally, "The outward act indicates the inward intent." 
 
 9. Usually, "A wrong is not done to one who knows and wills it." 
 
 10. The requirements of the contract must be lawful. 
 
 11. Generally, "A contract cannot arise out of an illegal act." 
 
 12. Gambling contracts are illegal and void. 
 
 13. A contract promising to make a gift cannot be enforced. 
 
 14. There must be a valuable consideration in every contract. 
 
 1.5. Don't change the consideration when accepting an offer or there is 
 no contract. 
 
THE SALES DEPART:MENT 129 
 
 16. A says: "I will paint your house for $200." B says: "I accept at 
 $195." This does not make a contract. 
 
 17. The contract is made when the pfFer is accepted. 
 
 18. If a good offer is made, accept at once or it may be withdrawTi. 
 
 19. If you intend to withdraw an offer do it at once or it may he accepted. 
 
 20. If you accept and use fruit you did not order, you must pay for it, 
 unless the circumstances under which it comes to you indicate tliat it \va> 
 intended as a gift or that it was not to be paid for. But a person cannot make 
 you- his debtor by imposing upon you the inconvenience of rejecting benefits 
 that he forces upon you. 
 
 21. In some states a contract is valid if dra\\Ti on Sunday. 
 
 22. Don't make an oral contract when you can make a written one. 
 
 23. A contract is legal if written with a lead pencil. 
 
 24. An oral contract is usually as binding as a written one. 
 
 25. Agreements not to be carried out within a year must be in writing. 
 
 26. In many states a contract to purchase goods in value over $50 must 
 be in writing. 
 
 27. Contracts for the purchase of real estate must be in ^Titing. 
 
 28. Leases for over a year should be in writing. 
 
 29. Pay something on an oral offer if you want to bind the bargain. 
 
 30. There is less opportunity for dispute in written than in oral contracts. 
 
 31. A promises to pay B $100 in potatoes. This is a good contract. 
 
 32. You get in a ferry boat and are rowed across the stream. This is an 
 implied contract. 
 
 33. It is a serious offense to change or erase contracts without the consent 
 of all parties concerned; a contract changed without the consent of all the 
 parties is not enforceable. 
 
 SELLING STANDARDS 
 
 Some legal points in selling 
 
 1. A man cannot sell that which has ceased to exist. 
 
 2. He may contract to sell a crop which is not in existence. 
 
 3. An out-of-style suit is as serviceable as ever but not so valuable. 
 
 4. A diamond is very valuable but not particularly useful. 
 
 5. Sunlight is useful and serviceable but not valuable. 
 
 6. Air has no value because no one wishes to buy it, although it is very 
 useful. 
 
 7. You may be richer if you double the price of 3'our land, but you do 
 not create any wealth. 
 
 8. If you take an article home on approval, the sale is not made unless 
 you keep the article beyond a reasonable time to decide whether you want it. 
 
 9. If something remains to be done, the sale is not made until the work 
 is completed. 
 
 10. If delivery is to be made, the owner is responsible until it is delivered. 
 
 11. The delivery of an article does not constitute a sale. 
 
130 OFFICE TRAINING AND STANDARDS 
 
 12. An article may be delivered, to be paid for on the in talment plan. 
 
 13. If goods purchased on the instalment plan are destroyed by fire, the 
 purchaser is the loser. 
 
 14. If you buy an article with the privilege of returning, the sale is 
 completed. 
 
 15. If goods bought with the privilege of returning are stolen while in your 
 possession, you are the loser. 
 
 16. If you take home an article on approval and it is stolen, the store is 
 the loser. 
 
 17. If you buy an article which was delivered at your home but stolen 
 before it reached you, you would be the loser. 
 
 18. If you buy an article which was lost in delivery, the store would be 
 the loser. 
 
 19. A promise to perform certain work is a valuable consideration. 
 
 20. One dollar is a valuable legal consideration. 
 
 21. Love and esteem are good considerations, but a good consideration is 
 not what the law requires for a valuable consideration. 
 
 22. A married man should not execute a deed without his wife's signature, 
 
 23. A married woman should not execute a deed without her husband's 
 signature. 
 
 24. A chattel mortgage is salable, but the goods must not be sold without 
 permission. 
 
 25. The unpaid seller may stop goods in transit, if the buyer fails, 
 
 26. If the buyer has received his bill of lading and transferred it, the 
 sell r cannot take the goods. 
 
 27. A person without a title can sell negotiable papers to an innocent 
 purcha;-er before they are due and the title of the purchaser will be good unless 
 the paper was stolen. 
 
 28. A person can sell an article left in his possession to an innocent pur- 
 chaser and the owner will not be able to recover it. 
 
 29. Generally one cannot give a better title than he possesses, subject 
 to the exceptions in the preceding paragraphs. 
 
 30. If the buyer refuses to accept the sold article, the remedy is to sue 
 for damages or to enforce the contract. 
 
 STANDARD EXERCISES 
 
 The law of sales 
 
 1. Mr. Fall purchased a bill of goods amounting to $100 and paid for 
 them with a check which was accepted and the bill marked paid. Is Mr. Fall 
 discharged from any other liability? 
 
 2. A merchant sold a hat to Mr. Fast for $5 cash. The hat was delivered 
 at Mr. Fast's place of business but he never received it. Who was liable for 
 the loss and why? 
 
 3. Mr. Cone purchased a horse from Mr. Lloyd for S200. It was agreed 
 that the horse should be delivered in a week and paid for in four weeks. Two 
 
THE SALES DEPARTMENT 131 
 
 days after the contract was made the horse was killed by lightning. Who would 
 be the loser and why? 
 
 4. Mr. Hill agreed to purchase from Mr. Ives a horse for S300 provided 
 he could try it one week on approval. During the second day while in Mr. 
 Ives' possession the horse was killed by fire. Who was the loser and why? 
 
 5. Mr. Hunt agreed to purchase an automobile from Mr. Howe for 
 $1,000 provided the car was painted before delivery. Before the painting was 
 finished the car was destroyed by fire. ^Vho was the loser and why? 
 
 6. Mrs. Cone purchased some furs valued at SlOO with the agreement 
 that she could return them any time within a week if not satisfactory. Before 
 the end of the week the furs were stolen. Who would be the loser? Why? 
 
 7. Mr. True, a country merchant, orders by mail a bill of goods amount- 
 ing to $200. The goods were promptly shipped as ordered but were destroyed 
 in transit. Must True pay for the goods he never received? If he doesn't have 
 to pay, who would ? Why or why not? 
 
 8. Mr. Sells bought a riding horse from Mr. Tine for $300. After riding 
 a few miles the horse went lame. Mr. Sells demanded the return of his money, 
 claiming misrepresentation. How much can he recover? 
 
 9. Mr. Camp authorized his coachman to sell a riding horse for $200. 
 The coachman warranted the horse to be sound, although it was not. For 
 how much is Mr. Camp liable? 
 
 10. Mr. Small ordered and paid for a suit of clothes from his tailor. The 
 clothes were finished and ready for delivery when the shop and contents were 
 burned. On whom does the loss fall? Why? 
 
 11. Mr. White takes cloth to his tailor to be made into an overcoat for 
 $20. Mr. White is notified that the coat is finished, but before he gets it the 
 shop burns. Must Mr. White pay the $20 and the tailor pay for the cloth? 
 Why or why not? 
 
 12. Mr. Hunt ordered by letter a table which he had examined at the 
 store the day before. When the table was delivered, he refused to pay for it, 
 as he did not like it. Can the merchant collect? Why or why not? 
 
 13. Mr. Hart ordered by telephone a bedroom set which he had seen m 
 a show window marked $75. When the furniture was delivered, Mr. Hart did 
 not like it and refused payment. Can the merchant collect the price of the 
 furniture? Why or why not? 
 
 14. Mr. Brown employs Mr. Black to buy a car for him at an auction 
 sale. Mr. Black buys the car with his own money and sells it to Mr. Brown at 
 a profit of $150. What remedy has Mr. Brown? Why? 
 
 15. A customer purchased a table on credit, but at the expiration of the 
 time for which credit was extended he did not make payment. Can the mer- 
 chant recover the table? Why or why not? 
 
 16. Mr. Bell lost his watch. It was found by Mr. Coin, who sold it to 
 Mr. Doyle, an innocent purchaser. Can Mr. Bell recover the watch from Mr. 
 Doyle? WTiy or why not? 
 
 17. Mr. Ball agreed to purchase a watch if it proved satisfactory on 
 10 days' trial. Before the 10 days expired Mr. Ball sold the watch to Mr. 
 
132 OFFICE TRAINING AND STANDARDS 
 
 Davis. Can the jeweler recover the watch or to whom must he look for his 
 pay? Why? 
 
 18. Mr. Bates made an oral agreement with Mr. Call that he would sell 
 to the latter 200 tons of coal at $6 a ton, provided the order was received 
 within 15 months. Mr. Call sent in the order in 13 months and Mr. Bates 
 refused to make shipment. Is Mr. Bates liable? Why or why not? 
 
 19. Mr. Hyde purchased S400 worth of goods from Mr. Ives and gave in 
 payment Mr. Brown's note for $400, indorsed "without recourse." Mr. Ives 
 was unable to collect on the note and sued Mr. Hyde. Must Mr. Hyde pay 
 for the goods? Why or why not? 
 
 20. Mr. Day agreed to sell his automobile to Mr. Barr for $1,000 and 
 Mr. Barr made a payment of $25. Later Mr. Day sold the car for $1,200 and 
 returned the $25 to Mr. Barr. What recourse has Mr. Barr? 
 
 STANDARD QUESTIONS 
 
 The sales department 
 
 1. What is the purpose of the sales department? 
 
 2. How is this purpose carried out? 
 
 3. What do the salesmen do? 
 
 4. What is meant by "mail-order" selHng? 
 
 5. Is advertising an important source of sales? Why? 
 
 6. What three facts does the sales manager want to know? 
 
 7. What is the purpose of keeping records in the sales department? 
 
 8. What do the daily reports from salesmen show? 
 
 9. What becomes of the information sent in by the salesmen? 
 
 10. Is there any way of handling a large volume of statistics quickly and 
 accurately? 
 
 11. What does the daily sales report show the sales manager? 
 
 12. What three methods are used to increase sales? 
 
 13. What are "pep" letters? 
 
 14. What are sales letters? 
 
 15. What is meant by a follow-up series? 
 
 16. How are follow-up letters usually sent out? 
 
 17. What is a mailing list? 
 
 18. How is the mailing list kept up to date? 
 
 19. How are mailing lists filed? 
 
 20. Why is it necessary to keep a record of advertising? 
 
 21. What do advertising records show? 
 
 22. What is meant by "keying" an advertisement or a letter? 
 
 23. Why are letters and advertisements keyed? 
 
 24. Describe how an advertisement may be keyed. 
 
 25. Why are coupons used in advertising? 
 
 26. What is done with the coupons? 
 
 27. Describe a schedule and explain how it is used. 
 
 28. What kind of material is filed in the advertising department? 
 
THE SALES DEPARTMENT 133 
 
 29. What method is used in the advertising files? 
 
 30. What kind of illustrations are used in the advertising department? 
 Name as many kinds as you can recall. 
 
 31. How are illustrations filed in the advertising department? 
 
 32. What is a "cut?" 
 
 33. Name the different kinds of cuts. 
 34o How are cuts filed? 
 
 35- Describe a system for keeping track of cuts. 
 
 STANDARD QUESTIONS 
 
 Concerning contracts and other legal papers 
 
 1. How many persons does it require to enter into a contract? 
 
 2. What is meant by the saying that the minds must actually meet in 
 order to form a complete contract? 
 
 3. Are oral contracts enforcible? 
 
 4. Are unlawful contracts enforcible? 
 
 5. Are contracts dated on Sunday void? 
 
 6. Are contracts made by minors voidable? 
 
 7. Are contracts made by insane people enforcible? 
 
 8. Are contracts made by intoxicated people enforcible? 
 
 9. Why are not oral contracts generally considered as secure as written 
 contracts? 
 
 10. Is an oral contract enforcible if not carried out within a year? 
 
 11. Is a contract promising to make a gift enforcible? 
 
 12. Can contracts for services be broken? 
 
 13. If one party to a contract fails to perform his part of the agreement, 
 can the other party be held responsible? 
 
 14. Can a person be punished for not paying according to the contract 
 if he actually does not have the money? 
 
 15. What is meant by a contract under seal? 
 
 16. B agrees to buy a horse from A for $200. If the horse dies before it 
 is delivered to B, is B responsible? 
 
 17. A makes an offer to sell B a lot for $2,000. Before B accepts the 
 offer, A changes his mind and withdraws his offer Can B force A to sell? 
 
 18. A, who lives in Montana, offers to sell for $5,000 a farm to B, who 
 lives in Iowa. On November 2 A writes to B that he is withdrawing the offer. 
 On the same day B writes A accepting the offer. Can A be forced to sell? 
 
 19. A gives B a note in which he promises to pay $200 in potatoes at the 
 market value. Is this a good contract? 
 
 20. A promised to pay B $500 if he lost a bet he made with B. He lost 
 the bet. Can B collect the money? 
 
 21. A offers by letter to sell a house to B for $2,000. B replies by letter 
 that he accepts the offer subject to the house being put in good repairs. Is 
 there a contract or not? 
 
 22. Why is it important to avoid erasures in drawing legal papers? 
 
134 OFFICE TRAINING AND STANDARDS 
 
 23. Why should legal papers of all kinds be protected by covers? 
 
 24. "WTiat is meant by a power of attorney? 
 
 25. Is a power of attorney good after the death of the person granting it? 
 
 STANDARD EXERCISES 
 
 Points of law in sales contracts 
 
 1. Mr. Brown says to Mr. Call: "I think I will sell my car for $1,200." 
 Mr. Call says: "I accept that offer." Is that a contract? Why or why not? 
 
 2. Mr. Arens says to Mr. Burns: "I will pay you $100 to paint my 
 house." Mr. Coyl, who is standing near, replies: "I will accept that offer." 
 Is this a contract? Why or why not? 
 
 3. Mr. Doyle says to Mr. Elm: "I will pay you $75 to paint my auto- 
 mobile." Mr. Elm replies: "I will accept for $80." Is this a contract? Why 
 or why not? 
 
 4. Mr. Frye says to Mr. Gill : " I will take $200 for this white horse." The 
 next day Mr. Gill meets Mr. Frye and says he will accept the offer for that 
 horse. Mr. Frye refuses to sell. Can Mr. Gill enforce the sale? Why or 
 why not? 
 
 5. Mr. Blaire steps on a street car and rides three blocks. Is this a 
 contract and if so how is it enforced? 
 
 6. A newspaper was sent regularly by mail to Mr. Dale, who had not 
 subscribed but who did not refuse to receive it and did not direct its discon- 
 tinuance. Must Mr. Dale pay for the paper? 
 
 7. Mr. Gale sent a crate of strawberries to Mr. Abbott, who had not 
 ordered them, but he received them and used the berries. Can Mr. Gale 
 collect the price of the berries? Why or why not? 
 
 8. Mr. Boyd without authority to do so sends a watch to Mr. Cain and 
 writes: "Give the watch a 10-days' trial and if you do not return it at that 
 time I shall cont^ider it sold for $25." Cain does not return the watch. How 
 much can Mr. Boyd collect? Why or why not? 
 
 9. Mr. Crane offers a lot to Mr. Dalton for $2,000 and gives him until 
 6 o'clock in the afternoon to decide. About 2 o'clock Mr. Crane is offered 
 $2,500 for the same lot and sells it. Mr. Dalton accepts the offer and sues 
 Mr. Crane for breach of contract. Can he collect? Why or why not? 
 
 10. Mr. Bamberg wrote to Mr. Crane on May 4, and offered him $200 
 for a riding horse. Mr. Crane answered on May 5, accepting Mr. Bamberg's 
 offer. In the meantime Mr. Bamberg changed his mind and wrote Mr. Crane 
 on May 5, withdrawing his offer. The letters passed each other in the mails. 
 Can Mr. Bamberg be compelled to take the horse? Why or why not? 
 
 11. Mr. Brown on his twentieth birthday purchased a $000 piano as a 
 gift for his sister. Mr. Brown signed a written contract agreeing to pay for 
 the piano in six months. Can the piano dealer collect if Mr. Brown refuses 
 payment? Why or why not? 
 
 12. An iufiuit borrowed $40 of an adult with which to purchase food and 
 clothing. Can the adult recover the borrowed money? Why or why not? 
 
CHAPTER IX 
 
 HOW ORDERS ARE HANDLED . 
 
 IN a small business it is often possible for one person to 
 handle all the office details in connection with the handUng 
 of orders. But nearly all large concerns have a separate 
 department which does nothing but handle orders. 
 
 Writing the order. Orders are usually written on stand- 
 ard order blanks, which provide space not only for the goods 
 ordered, but also for the ether information necessary to an 
 intelligent handling of the order, such as the customer's name 
 and address, the terms on which the goods were sold, when and 
 where the order is to be shipped, and any special directions or 
 instructions. The blank shown in Figure 57 on page 137 gives 
 a good idea of what one company requires. 
 
 How orders are "registered.'* When the order reaches the 
 office it is immediately "registered." Of course each company 
 has its own way of registering its orders, but the purpose is 
 always the same — to make an accurate record of every order, 
 so that if at any time a question should come up, the details 
 of that order can be found immediately by referring to the 
 register. In one office the following information is registered: 
 
 Date 
 
 Number of the order 
 
 Name of customer 
 
 What is ordered 
 
 Quantities ordered 
 
 Amount of sale 
 
 Terms 
 
 How the order was obtained 
 
 Not only does this give the information about each order, 
 but by simply totaling the column "amount of sale," the total 
 
 135 
 
136 OFFICE TRAINING AND STANDARDS 
 
 sales for any day can be immediately obtained. Under "how 
 the order was obtained," there may be two or three columns, 
 or even more if it is thought desirable, each column showing a 
 source of sale 
 
 Putting the order through. But the registering of the 
 order is only a step. After the order is registered it must be 
 filled. Obviously orders alone are worthless; they don't bring 
 any profit to the firm until they are filled. That is why it is 
 so very necessary to fill all orders as soon as possible after they 
 are received. 
 
 Before orders can be filled, however, they must be approved 
 by the credit department, to make sure that the customer's 
 credit is good for the amount of the order, and also to ascertain 
 whether the goods shall be shipped c. o. d. (cash on dehvery) 
 or not. If a customer's credit is not satisfactory, a concern 
 will often ship goods c. o. d., requiring the customer to pay 
 the transportation company for the goods before he can get 
 them. Obviously, however, it would be unwise to ship c. o. d. 
 to a customer whose credit was good, because of the risk of 
 losing the customer's good-will. 
 
 Analyzing the order. After the credit department has 
 o. k.'d the order, it comes to the analysis clerk, who divides all 
 orders into three classes; those that 
 
 (1) can be filled from stock on hand 
 
 (2) must be purchased from other concerns 
 
 (3) must be manufactured 
 
 Of course some orders might come under all three of these 
 classes. But almost any order can be divided so that it will 
 fall into one of these groups, and this dividing into groups is called 
 "analyzing the order." 
 
 Why orders must be analyzed. Orders for goods in stock 
 can be filled at once by the stock room, while the purchasing 
 department has to buy goods which must be purchased outside, 
 and those that have to be manufactured must be put tlirough 
 the shop or factory. It would be wasteful to send a stock order 
 to the purchasing department; and there would be no reason for 
 sending a purchase order to the factory. In other words, orders 
 
Sales order < 
 
 Orders delivered by receiving to entry department 
 Entry on order register 
 
 Entry of order 
 
 Distribution 
 of copies 
 
 FoUow-up 
 on orders 
 
 Examined and checked by interpreter 
 Acknowledgment sent 
 Manifold copies made out 
 Checked with order register 
 
 (1) Copy for permanent office record 
 
 (2) Copy to stock room or 
 
 (3) Copy for acknowledgment 
 
 (4) Copy to shipping room 
 
 (5) Copy to sales department 
 
 (6) Copy for invoice 
 
 Tickler file 
 Back ordering 
 Suspense file 
 
 FIGURE 56: By studying this chart carefully you will learn what happens to a 
 
 sales order in the average office from the time it is received and entered until it is 
 
 filled, shipped, billed, and finally disposed of. An invoice is shown below. 
 
 MACDONALD & WORTH 
 CHICAGO 
 
 Sold to Date 
 
 City 
 State 
 
 Discminf 
 
 
 Ship hy When . 
 
 Quantity 
 
 Kind 
 
 Description 
 
 List price 
 
 Totals 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 57: As many copies of the sales order are made as are needed to be sent 
 
 to the various departments. This copy, which is sent to the customer as a record 
 
 of the sale, is called the invoice; sometimes it is enclosed with the goods. 
 
 137 
 
138 OFFICE TRAINING AND STANDARDS 
 
 should go only to those departments which are concerned with 
 the order: a purchasing order would go to the purchasing depart- 
 ment; a stock order would go to the stock room; and a factory 
 order would go to the factory. 
 
 We could send the original order, if there were only one 
 kind of goods ordered on it; but if there were several kinds, 
 then copies must be made, one for each department concerned. 
 And each copy must contain full directions for handhng the 
 order, as well as where to send it, and how to send it, whether 
 by freight, express, or parcel post. 
 
 How many copies must be made? In addition to the 
 copies that must go to the departments which are to make up 
 the order, as we saw in the preceding paragraph, certain other 
 departments must also get copies. Some concerns do not use 
 over three or four copies of the regular house order forms. The 
 original is sent direct to the shipping department. Another is 
 filed alphabetically in the unfilled order files of the office. One 
 copy passes to the accounting department, where it is filed 
 numerically. The fourth copy is filed in the sales department 
 for the statistical record. 
 
 When the order has been filled, the shipping department 
 returns its copy to the order department with the shipping 
 receipt attached. The order then passes to the accounting 
 department for billing, after which the unfilled order is released 
 and filed with the filled orders. 
 
 It is also possible, in making out orders, to include in the 
 same operation the invoice and an acknowledgment of the order. 
 Where orders must pass through the factory, as many copies 
 are made as will be needed in the different shops. A\Tien an 
 order comes in for a machine which is to be shipped complete, 
 this method can be still further expanded. 
 
 With one writing, copies may be made for acknowledging 
 the order to the agent and to the customer, an order to the 
 factory, a notice to the traffic department, two notices to the 
 treasurer, two copies for the order department, a notice to the 
 agent with credit of commission, a notice to the accounting 
 department to credit the agent's commission, and a ledger 
 sheet for the accounting department. 
 
THE ORDER DEPARTMENT 139 
 
 How copies are made. When eight or ten copies are 
 required, if these were written by hand or even on a typewriter, 
 the cost might be excessive. Some interesting methods have 
 been developed for making copies of orders. Of course one of 
 the commonest is the typewritten carbon copies, but this may 
 be expensive if more than three or four copies are required. 
 
 One company uses a simple method of copying its orders. 
 The original order is printed in copying ink, and the salesman 
 uses a copying pencil in making out the order. After the order 
 has been registered any desired number of copies may then be 
 made on an ordinary gelatin duplicator. 
 
 Another company uses a raised type dupHcator for the pur- 
 pose. A stencil or ''plate" is stamped containing the desired 
 information. With this plate or stencil the requisite number 
 of copies are printed at one time. With this arrangement, even 
 the invoice can be made out at the same time. 
 
 In the next lesson we shall find out what the shipping depart- 
 ment does with the orders it has received. 
 
 ORDER DEPARTMENT STANDARDS 
 
 The routine of the order department 
 
 1. In a small business one person may handle the orders. 
 
 2. In a large business an entire department may be required to handle 
 the orders. 
 
 3. Orders are usually written on standard order blanks. 
 
 4. Registering orders provides an accurate record for future reference. 
 
 5. The order register shows the date, the name of the customer, what is 
 ordered, the quantities, the amount, the terms, and the source. 
 
 6. The total sales are obtained by totaling the " amount of sale" column. 
 
 7. The sales manager watches the column headed "how the order was 
 obtained," in order to decide what steps to take to increase sales. 
 
 8. Since there is no profit in unfilled orders, every order should be filled 
 as soon as possible after it is received. 
 
 9. The credit department should approve all orders. 
 
 10. If a customer's credit is not satisfactory, goods may be shipped c.o.d. 
 
 11. An order should not ordinarily be sent c.o.d. to a customer whose 
 credit is good, lest he be offended, and his good-will lost. 
 
 12. Orders are divided into three classes: those that can be fil'ed from 
 stock on hand, those that must be purchased and those to be manufactured. 
 
 13. This division of orders into classes is called "analyzing the orders." 
 
 14. Orders should go only to those departments which are concerned with 
 the order; hence the necessity for order analysis. 
 
140 OFFICE TRAINING AND STANDARDS 
 
 15. In addition <o the copy of the order which goes to the stock room, 
 the factory, or the purchasing department, one copy goes to each of the fol- 
 lowing departments: shipping, accounting, sales; and also to the unfilled order 
 files. 
 
 ORDER DEPARTMENT STANDARDS 
 
 Following an order through a factory, office 
 
 1. The order comes in by mail and is opened in the mail-opening de- 
 partment. 
 
 2. It is sent to the order department, where it is recorded and given an 
 order number. 
 
 3. It is sent to the credit department for o. k 
 
 4. It is duplicated, and duplicate orders are sent to each department 
 which is to furnish a part of the material. 
 
 5. It is billed in the accounting department. 
 
 6. The production department has the order with the date on which 
 the shipment is to be made. 
 
 7. The planning department makes out instructions for filling the order, 
 with the time for completion. The order is scheduled. 
 
 8. Requisitions for material are sent to the store room. 
 
 9. The foreman has the order. The material f r< m the store room is 
 gathered, assembled, inspected, finished, and sent to the shipping department. 
 
 10. The shipping department has the order. 
 
 11. If the order is shipped by freight, the bill of lading is obtained. 
 
 12. If it is shipped by express, a receipt is obtained. 
 
 13. If it is shipped by mail, postage is paid and a receipt is obtained if 
 it is registered or insured. 
 
 14. The accounting department is notified of the shipment of the order. 
 
 15. The accounting department sends the bill to the customer. 
 
 16. The money is paid, or 
 
 17. The accounting department sends the bill to the collection manager. 
 
 STANDARD QUESTIONS 
 
 The routine of the order department 
 
 1. How are orders usually written, and why? 
 
 2. What information is given on an order blank? 
 
 3. What is the first step in handling orders? 
 
 4. What information is recorded in the order register? 
 
 5. What does the order register show the sales manager? 
 
 6. What happens to an order after it is registered? 
 
 7. What is meant by analyzing an order? 
 
 8. How is an order analyzed? 
 
 9. What departnients should receive copies of orders? 
 
 10. How are orders copied? 
 
CHAPTER X 
 
 WHAT YOU OUGHT TO KNOW 
 ABOUT SHIPPING 
 
 A LL the time and care that may have been expended in 
 /\ getting a customer may easily be lost in the shipping 
 department. Probably more complaints arise from the 
 careless handling of merchandise in transit than from any other 
 cause, leaving out of consideration, of course, the question of 
 quality. The shipping department is therefore an important 
 link in the chain that holds the customer to the company. 
 
 The duties of this department. Not only must the ship- 
 ping department watch proper packing and routing, to help make 
 sure that the quantities are correct, and that the order should 
 reach the customer in good condition and in a reasonable time 
 but also it must notify the office when goods are shipped. 
 Although the reasons for this seem obvious, yet undoubtedly 
 many concerns are today losing money because their shipping 
 departments are sending out orders for which the customer 
 never pays, simply because no records are made of the ship- 
 ments. Another reason for notifying the office that shipment 
 has been made is so that inventories may be reduced accordingly 
 and thus be kept accurate. 
 
 Let us then take up the duties of the shipping department. 
 
 How orders are shipped. Nothing should be shipped with- 
 out proper authority, which is usually a copy of the original 
 order. For goods which are in stock some concerns make out 
 the labels in the order department, and send only the label to 
 the shipping department. This label has two parts; the left- 
 hand part is the label, and the right-hand part is the order. 
 It is sent to the shipping room in duplicate. The label is 
 pasted on the outside of the package. 
 
 141 
 
142 OFFICE TRAINING AND STANDARDS 
 
 The duplicate is a receipt, to be signed by the transporta- 
 tion company to whom the package is delivered. This dupli- 
 cate is returned to the office and is not only a notice that the 
 shipment has been made, but it also shows who received the 
 shipment, and what the carriage charges are — a mighty valu- 
 able record in the event of loss or damage. 
 
 What proper packing can do. Proper packing is an im- 
 portant duty of the shipping department. It is often possible 
 to save not only a great deal of unnecessary breakage in ship- 
 ment, sometimes resulting in customers' returning goods, but 
 also unnecessarily high freight charges, if the best method of 
 packing is adopted. Usually this comes under the authority 
 of the shipping clerk, although where large quantities of material 
 are shipped, there is sometimes a special packing department 
 which may or may not be under the supervision of the shipping 
 clerk. In some concerns the method of packing is standardized 
 for each product the company handles. 
 
 In the smaller concerns the shipping clerk decides by what 
 route and by what method of transportation the shipment will 
 go. In the larger concerns, however, this ordinarily is handled 
 by the traffic department, which works with the shipping room 
 and sees to it that it has on all orders definite instructions as 
 to whether shipments should go out by messenger, parcel post, 
 express, or freight, and by which route. 
 
 Handling freight shipments. If a shipment is to be made by 
 freight, a bill of lading is made out. This bill of lading is really 
 only a contract between the shipper and the transportation 
 company, in which the transportation company agrees to con- 
 vey the goods described, subject to certain rules and conditions. 
 
 The bill of lading also serves as a receipt for the shipment; 
 it is made out in tripUcate, the original usually being sent to 
 the customer, as notice that the goods have been shipped, and 
 as his authority to get the goods from the transportation com- 
 pany; one of the copies is retained by the freight agent, and 
 the other is filed by the shipper. 
 
 Making express shipments. If a shipment is to be made 
 by express, an express receipt is made out, describing the goods 
 shipped, and signed by the express driver. Often express 
 
THE SHIPPING DEPARTMENT 143 
 
 receipts are bound in books and kept in the shipping room for 
 reference, if occasion should arise. 
 
 What it costs to ship. The transportation companies fur- 
 nish shippers with tariffs giving the rates from the shipping 
 point to all other points in the country on different classes of 
 merchandise. These tariffs are filed alphabetically by the 
 names of the companies issuing them. The most approved 
 file now in use by the transportation companies and large ship- 
 pers is arranged so as to bring all the tariffs into view, keep 
 them in good condition, and permit the alphabetical fiUng of 
 folders, with papers of different sizes. 
 
 In addition to the tariff files it is customary to keep a file 
 of rate cards showing the express, freight, and parcel post rates 
 to different localities. These are filed by states, the towns 
 being arranged alphabetically under each state. 
 
 Tracers and claims. In case goods are delayed, damaged 
 or lost, the traffic department sends out tracers or presents 
 claims for damages. A card index covering claims against the 
 transportation companies is maintained. A card for each tracer 
 and each claim is filed alphabetically under the consignee's 
 name. Each card bears the same number as the original order. 
 Correspondence about the claim is also filed under that number. 
 
 The transportation companies are sometimes slow about 
 settling claims and unless they are followed up the claims may be 
 sidetracked. The correspondence may be filed chronologically 
 with information as to its location on the card, or adjustable 
 signals may be used on the card to show the date when the 
 claim is next to come up for attention. 
 
 SHIPPING STANDARDS 
 
 The functions of the shipping department 
 
 1. The purpose of the shipping department is to check, pack, route and 
 deliver shipments to the transportation company. 
 
 2. This department is important because it is the last place an order stops 
 before it goes to the customer. 
 
 3. The shipping department is, therefore, often responsible for the satis- 
 faction or dissatisfaction of the firm's customers. 
 
 4. To insure that the right quantities are delivered, the shipment is checked 
 against a copy of the order. 
 
144 OFFICE TRAINING AND STANDARDS 
 
 5. The method of packing shipments is determined by the character of 
 the goods shipped, the mode of transportation, the distance to be traveled, 
 and the legal or other requirements. 
 
 6. A stove handle might be safely shipped if wrapped in a piece of burlap. 
 
 7. An expensive cut glass dish might require a substantial container built 
 for the purpose, and carefully stuffed with excelsior. 
 
 8. Packages containing breakable articles should be marked "glass" or 
 "handle with care." 
 
 9. Packages containing fruits or flowers should be marked "perishable." 
 
 10. The person making a shipment is called the shipper or consignor. 
 
 11. The person to whom the shipment is addressed is called the consignee. 
 
 12. The transportation company is called the carrier. 
 
 13. All packages should be plainly marked with the names and addresses 
 of both the consignee and the consignor, as well as the name of the carrier. 
 
 14. In many offices, the label is made out in the order department, to 
 insure the correct address. 
 
 15. In some concerns, the shipping clerk decides the route by which ship- 
 ments shall be made. 
 
 16. In very large concerns, a traffic department determines the routing of 
 shipments. 
 
 SHIPPING STANDARDS 
 
 Parcel post, express, and freight shipments 
 
 1. Express shipments are much faster than freight, and often faster than 
 parcel post mail. 
 
 2. Freight is probably the slowest method of shipping, and also the least 
 expensive. 
 
 3. First-class mail is probably the quickest method of shipping, and also 
 the most expensive. 
 
 4. Parcel post, express, or freight shipments, may be sent c. o. d. 
 
 5. Packages sent by parcel post must not be sealed and must be wrapped 
 so as to make possible inspection of the package. 
 
 6. Parcel post packages must not contain any written matter; WTiting 
 would subject the whole parcel to first-class postage, as would also sealing. 
 
 7. Express shipments may be sealed and may contain writing, but not 
 letters nor messages, unless they are old. 
 
 8. Shipments weighing over 100 pounds are usually sent by freight, be- 
 cause it is less expensive. 
 
 9. Package s weighing from 1 to 50 pounds may be sent by parcel post, 
 provided the combined length and girth is not over 84 inches. 
 
 10. Package.5 costing less than 10 to 20 cents to send are usually shipped 
 cheaper by mail. 
 
 11. Packages costing over 20 cents to send may often be sent cheapest by 
 express. 
 
 12. The postoflBce will deliver parcel post packages, but it will not call 
 for them. 
 
THE SHIPPING DEPARTMENT 145 
 
 13. Freight shipments must be delivered and called for at the freight 
 house. 
 
 14. The express company will call for packages and will deliver them. 
 
 15. Therefore, if the local delivery charges are high, it might pay to send 
 by express. 
 
 16. It might also pay to send by express if quick delivery is desired. 
 
 17. Sometimes whole carloads of materials are shipped by express when 
 quick delivery is required. 
 
 18. Parcel post charges must be prepaid. 
 
 19. Express and freight shipments do not have to be prepaid, but may be 
 sent charges collect. 
 
 20. The postoffice does not give a receipt for mail matter uriless registered 
 or insured. 
 
 21. Express and freight shipments are receipted for by the carriers. 
 
 22. A bill of lading is made out in triplicate for freight shipments. 
 
 23. The original bill of lading is signed by the freight agent, and is usually 
 sent by the consignor to the consignee, entitling him to claim the shipment. 
 
 24. The duplicate bill of lading is signed by the consignor and kept by 
 the carrier. 
 
 25. The triplicate may be kept by the consignor as a memorandum of the 
 shipment. 
 
 26. The original bill of lading is negotiable and may be sold or transferred 
 as often as desired. 
 
 27. When the consignee receives his shipment from the freight house, he 
 signs a receipt showing that he has received his goods, and he receives a receipted 
 bill showing the amount of the freight charges. 
 
 28. When goods are shipped to a foreign country, the consignor makes 
 out a manifest sho^ving the value of the goods for the benefit of the custom- 
 house officers. 
 
 SHIPPING STANDARDS 
 
 How to ship by express 
 The following suggestions on express shipments are adapted from a folder 
 published by the Adams Express Company: 
 
 1. Poorly packed shipments mean dissatisfied customers, and prompt 
 claim adjustments, at best, merely conciliate, but rarely satisfy. 
 
 2. Express shipments should be so packed as to withstand reasonably 
 quick handling, and successful shippers consider careful packing a duty to their 
 customers. 
 
 3. The money saved by inadequate packing rarely equals the profits lost 
 through dissatisfied customers. 
 
 4. Pack glass and fragile articles in wooden boxes or strong corrugated 
 paper cartons, using plenty of excelsior or similar packing, and mark the word 
 "glass" on the outside of the container. 
 
 5. Obliterate old marks on boxes or wrappings— they frequently send 
 packages astray. 
 
146 OFFICE TRAINING AND STANDARDS 
 
 6. Heavy packages of merchandise should not be wrapped in a single 
 thickness of thin paper and tied with a light string, because the most careful 
 handling cannot then prevent delivery in a torn and damaged condition, a 
 common cause of complaint. 
 
 7. Put your name and address on the outside of the package under the 
 word "from." Put your name and address and the name and address of the 
 consignee inside the package as well as on the outside. Then, if the outside 
 mark is lost or destroyed, this will help to prevent delay in delivery. 
 
 8. Do not use tags if the condition of the package will permit marking 
 with ink. 
 
 9. Castings and similar heavy shipments should be marked with two or 
 more strong tags attached by wire. 
 
 10. Raw furs or skins, if in hand-made bales, should be securely stitched in 
 burlap or bag, and marked on a smooth wooden strip sewed flat to the bale. 
 The oil in the skms will destroy any ordinary marking. 
 
 11. Always use the correct street and number for shipments going to 
 large cities. 
 
 12. Because of similar town names, the county should also be shown on all 
 shipments. Abbreviations are misleading — spell out the names of states 
 as well as names of cities and towns. 
 
 13. Send money and jewelry in sealed packages through the money de- 
 partment of the express company, and never in unsealed packages. 
 
 14. If the express charges are prepaid, mark the shipment plainly "pre- 
 paid." If the package is marked with a tag and the address is also written in 
 other places on the package or on more than one side of the package, write 
 the word "prepaid" wherever the address appears. This will prevent collect- 
 ing charges twice. 
 
 15. If a shipment is sent c. o. d., mark the package plainly c. o. d., and the 
 amount. Unless specific instructions to the contrary are given by the shipper, 
 the charge for collecting and remitting the money will be collected from the 
 consignee. The shipper's name and address must be plainly shown on a c. o. d. 
 shipment. 
 
 16. Canada Business— If a shipment is destined to Canada, the owner's or 
 agent's manifest, in the form ordered by the United States Department of 
 Commerce and Labor, must be filled out and forwarded with the shipment. 
 Duplicate invoices in the form ordered by the Canadian Minister of Customs 
 must also be furnished by the shipper. Mark the value on the outside of all 
 shipments to Canada. 
 
 SHIPPING STANDARDS 
 
 Points of law 
 
 1. Receipts should always be preserved for a reasonable length of time, 
 as they may be needed in case of dispute, loss or accident. 
 
 2. Common carriers arc always held responsible for the loss of packages 
 caused by carelessness of their agents. 
 
THE SHIPPING DEPARTMENT 147 
 
 3. Parcel post is carried by the government but its delivery is not guar- 
 anteed, nor will losses be made good, unless the parcel is insured. The govern- 
 ment is not a common carrier. 
 
 4. If goods are lost or stolen or burned in transit, the carrier is the lo; er. 
 
 5. If the loss is caused by "an act of God or a public enemy," the shipper 
 would be the loser. 
 
 6. Losses caused by lightning, floods, or cyclones, would, therefore, be at 
 the expense of the shipper. 
 
 7. A loss by fire would be at the expense of the carrier, because it could 
 be prevented; but a loss by fire caused by lightning would be "an act of God." 
 
 8. The delivery of goods may be stopped if the consignee becomes in- 
 solvent while the goods are in transit. 
 
 9. If, however, the consignee has received the bill of lading and trans- 
 ferred it, the buyer has a good title, and the goods cannot be claimed by the 
 consignor. 
 
 10. A common carrier is not allowed by the government to discriminate 
 against any person by allowing rebates or different freight rates. 
 
 STANDARD QUESTIONS 
 
 The functions of the shipping department 
 
 1. What is the purpose of the shipping department? 
 
 2. Why is this department important? 
 
 3. What connection exists between the work of the shipping department 
 and the possible satisfaction or dissatisfaction of customers? 
 
 4. How are shipments checked for quantities? 
 
 5. What four factors determine how goods shall be packed for shipment? 
 
 6. Would you wrap a china dish the same way as a baseball bat? 
 
 7. How should packages containing breakable articles be marked? 
 
 8. How should shipments of fruits or flowers be marked? Why? 
 
 9. Who is the consignor? 
 
 10. Who is the consignee? 
 
 11. Who is the carrier? 
 
 12. Is the postofEce a carrier? Why or why not? 
 
 13. What instructions would you give about addressing a package in- 
 tended for express shipment? 
 
 14. Who decides by what route shipments are made? 
 
 15. What are the duties of the traffic department? 
 
 STANDARD QUESTIONS 
 
 Parcel post, express and freight shipments 
 
 1. What is the fastest way to ship goods? 
 
 2. What is the cheapest way to ship? Why? 
 
 3. What is the most expensive way to ship? Why? 
 
 4. How would you route a shipment you wanted to send c. o. d.? 
 
148 OFFICE TRAINING AND STANDARDS 
 
 5. Can you name some of the restrictions upon parcel post shipments? 
 
 6. Can express shipments be sealed? And contain writing? 
 
 7. How are heavy packages best shipped? Why? 
 
 8. What kind of packages may be sent by parcel post? 
 
 9. When would you ship by parcel post? by express? by freight? 
 
 10. What are the relative advantages and disadvantages of mail, express, 
 and freight shipments with respect to delivery? cost? speed? payment of 
 the charges? receipt for shipments? 
 
 11. Under what conditions is express shipment preferred? 
 
 12. Are large quantities of materials ever shipped any way except by 
 freight? If so, why? 
 
 13. How should a package containing written instructions be shipped? 
 
 14. How should a package be sent if the purchaser is to pay charges? 
 
 15. How should a small package on which you do not care for insurance 
 be sent? 
 
 16. What is a bill of lading? 
 
 17. Is the bill of lading negotiable? 
 
 18. How many copies are usually made? 
 
 19. Why should the carrier's agent sign the original bill of lading? 
 
 20. Why should the consignor sign the duplicate bill of lading? 
 
 21. What becomes of the three copies of the bill of lading? 
 
 22. What is the freight bill? 
 
 23. Why should the carrier's agent sign one copy of the freight bill? 
 
 24. Why should the consignee sign the other copy of the freight bill? 
 
 25. What steps must be taken when shipping goods to Canada? 
 
 STANDARD QUESTIONS 
 
 Points of law in shipping 
 
 1. Should receipts be kept? Why? 
 
 2. Are carriers responsible for the loss of goods in transit? 
 
 3. Is parcel post a safe way to ship? Why or why not? 
 
 4. When are carriers responsible for the loss of shipments? 
 
 5. When are shippers responsible for the loss of shipments? 
 
 6. WTiat is meant by "an act of God"? 
 
 7. What action can the shipper take if he learns his customer has become 
 insolvent before the goods have arrived? 
 
 8. Suppose the consignee has received the bill of lading, and transferred 
 it, what can the shipper do then? 
 
 9. Can you get different freight rates for the same class of service? 
 10. Can you get lower express rates than your competitor? 
 
CHAPTER XI 
 
 THE ACCOUNTING DEPARTMENT 
 
 IN the accounting department we find one of the most inter- 
 esting and important departments in the business. For 
 it is in this department that records are kept telHng how 
 much money is received and paid out, and for what, who owes 
 the company as well as whom the company owes, how much 
 business the company is doing this year compared with last, 
 this month compared with last month, and so on. 
 
 What this department does. The first task of the 
 accounting department then is to keep certain records; and 
 the second is to prepare reports for the manager, so arranged 
 that they will show at a glance if the business is progressing or 
 going backwards, if one department is doing especially well or 
 poorly, and just what the profits or losses are. In this way 
 the manager can pick out the weak spots and take steps to 
 strengthen them at once. It is easy to see, therefore, how neces- 
 sary it is for the work of this department to be absolutely accu- 
 rate as well as timely. 
 
 The difference between bookkeeping and accounting. 
 
 The first duty, keeping the records, is what we usually call 
 bookkeeping — when we speak of accounting we mean both 
 keeping the records and interpreting them. 
 
 Why the ledger is important. Perhaps the most impor- 
 tant book which is used in keeping the records is the ledger, a 
 page of which is shown in Figure 60. Probably every transac- 
 tion that the company engages in will find a place in the ledger 
 sooner or later, since it is from the figures in the ledger that 
 reports are made showing the condition of the business. To 
 make sure that these figures are correct, there must be some 
 means of checking up their accuracy. 
 
 149 
 
150 OFFICE TRAINING AND STANDARDS 
 
 The essentials of double- entry bookkeeping. The 
 double-entry system of bookkeeping which, with its many adap- 
 tations, is used almost universally at this time, provides this 
 means. The name "double entry" comes from the fact that 
 for every transaction two records are made in the ledger; that 
 is, for every charge there is a credit, and for every credit there 
 is a charge. This is clearly logical, because for every business 
 transaction there are in reality two operations. 
 
 Suppose, for instance, that Henry Miller pays you $80 on 
 account. As a matter of fact, he pays the $80, and you receive 
 it. Both operations should be recorded; Henry Miller should 
 be credited with $80, and you should be charged with it. In 
 the same way, if he buys from you $9 worth of goods on account, 
 he is charged with that $9 and your merchandise or stock account 
 is credited with it. 
 
 In the ledger there is a separate page for every account. 
 There will be one page headed "Henry Miller," for instance; 
 another "Irving Smith." Eveiy thing purchased by either of 
 these men will be entered on the left or debit side; any goods 
 which they return or any money which they pay, on the right 
 or credit side. Besides accounts with people or concerns there 
 are other accounts, headed "merchandise," "cash," "interest," 
 "expense,^' "notes payable," and so forth. 
 
 Taking a trial balance. From the very fact that every 
 item which is charged to one account is credited to another, it 
 is clear that if the entries are correct, the books will balance. 
 That is, the sum of the debit entries will equal the sum of the 
 credit entries. At the end of each month, all the credit balances 
 are listed in one column and all the debit balances are listed in 
 another; if the totals of the two columns are equal, it usually 
 proves that the bookkeeping has been correctly done. This is 
 called "taking a trial balance." 
 
 After the trial balance is "taken," it is a comparatively simple 
 matter to prepare statements for the manager. One of the 
 most important of these summarized statements is the balance 
 sheet, or some form of it. The balance sheet gives a complete 
 statement of the condition of the business at any stated time. 
 On page 15G is shown the balance sheet of a corporation. 
 
Purchase 
 accounts 
 
 Auditing or vouchering invoices 
 
 Entry and distribution 
 Entering on I 
 voucher < Balancing 
 
 I Posting totals to general ledger 
 
 register 
 
 Payments 
 
 By check 
 
 Petty cash 
 Payroll 
 
 Check drawn 
 from voucher 
 Entry on check record 
 
 Entry on 
 voucher register 
 
 Entry on cash book 
 
 Total distribution 
 posted to general 
 ledger 
 
 The work of 
 
 the accounting 
 
 department 
 
 Credit 
 
 Safes J 
 accounts 
 
 Financial 
 entries 
 
 Copy of sales order checked with shipment 
 comes to accounting department 
 
 Bill made out and mailed 
 
 Register of invoices rendered 
 
 Entry made from carbon of bill to 
 customer's ledger 
 
 Totals posted to general ledger 
 
 Amount entered on letter 
 
 Amounts listed and made' up on deposit slip 
 
 Total entered in cash book 
 
 Credits posted to customer's ledger 
 
 Totals posted to general ledger 
 
 Capital stock 
 
 Correction of accounts 
 
 Capital entries-dividends 
 
 Relating to stock and merchandise 
 
 Accounts payable and receivable 
 
 Cash 
 
 FIGURE 58: Studying this chart will make it very much simpler for you to learn 
 quickly just what work is done in the accounting department, and how purchase 
 accounts, sales accounts, and financial entries are handled. A good way to test 
 your knowledge is to copy the chart, and then try to reproduce it from memory. 
 
 151 
 
Journal 
 
 Dr. Cr. 
 
 
 %^.n 
 
 f^£^tfj. (^^^^ttLta^ 
 
 
 
 / 
 
 o o oo 
 
 
 f^ 
 
 Jo ~>io^ /gcx^xZc^a,^^ 
 
 
 ^oo oo 
 
 
 
 
 
 C^^L^aJ^ 
 
 
 9.00 oo 
 
 
 
 
 - Dr 
 
 Cash Book 
 
 Dr. 
 
 
 1918 
 
 Items 
 
 Sundries 
 
 Accounts 
 Receivable 
 
 
 ~ (l^. II • 
 
 / llcJlouyyyc JL, ^a^AAJ-CA^ 
 
 7a.zo.S% 
 
 Soj.x^f 
 
 
 - (IT J 
 
 \^»^ti^«j /t2c^cx-cx/-<x-'U--Ce^ 
 
 3uOO. 00 
 
 
 
 - n >i 
 
 q.£. :^Ci.ry^.rr^.^mJ.Co. 7^ 
 
 
 i;i^>s-3 
 
 
 ~ " /Sb 
 
 fe :N. -Lu^jLl^o^ 
 
 
 16. ^8 
 
 
 
 
 
 
 - 
 
 -==^- 
 
 ■^~ r : TT-: 
 
 n iJ — lL 
 
 1 1 1 1 — u± 
 
 ^ 
 
 L- 
 
 
 
 
 _ 
 
 FIGURE 59: Only the debit or left-hand page of the cash book appears here. 
 
 In the journal, debit and credit entries are made on the same page. According to 
 
 the journal real estate was sold for $1,000, since real estate is credited. 
 
 J. C. Hammond Co. 
 
 
 Date 
 
 Debit 
 
 v/ 
 
 Amount 
 
 Date 
 
 Credit 
 
 V 
 
 Amount 
 
 9— 
 
 r 
 
 ^K-<?C<L£^. 
 
 
 1 
 
 CO — 
 
 (U. 
 
 II 
 
 &U- 
 
 
 
 7 2,fS 
 
 i 
 
 
 
 
 
 
 (T 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 J 
 
 
 
 FIGURE 60: In Figure 59, cash is debited with $72.53 paid by J. C. Hammond 
 
 Company on account. Here is the ledger account showing a credit entry of $72.53 
 
 and a debt entry of $100. They still owe the difference, $27.47. 
 
 152 
 
THE ACCOUNTING DEPARTMENT 153 
 
 The definition of ' 'posting." Some firms do not enter 
 their records directly in the ledger, but transfer the items from 
 original books of entry, such as the journal, the cash book, the 
 purchase book, and the sales book. This transfer of items to 
 the ledger is called "posting." 
 
 The journal often serves the purpose of a diary. In it day 
 by day transactions are lined up one after another in the 
 order in which they occur. 
 
 In the cash book is entered an account of all money which 
 comes in or goes out. On the debit side of this book are entered 
 all amounts received ; on the credit side all amounts paid out. 
 
 In the purchase book are entered all purchases made from 
 outside concerns; in the sales book all sales made to outside 
 individuals or concerns. 
 
 The special nature of a business may require other books; 
 but these five — the ledger, the journal, the cash book, the pur- 
 chase book, and the sales book — are the fundamental ones on 
 which almost all other books or records are based. 
 
 Credit and collection records. Besides keeping the rec- 
 ords which we have already discussed, another task often han- 
 dled by the accounting department is that of keeping credit 
 and collection records. Almost all business operates to a cer- 
 tain extent on a credit basis. This makes it necessary, of course, 
 to know whether customers are trustworthy before selling them 
 goods on credit, and all sorts of information has to be collected 
 about customers or prospective customers from every con- 
 ceivable source — from salesmen, from banks, from credit report- 
 ing agencies, and many others. 
 
 Some firms make out a card for each customer which gives 
 the name, address, rating, ledger account number, and other 
 useful information. Others simply place the credit rating at 
 the top of the ledger account. One method is to place all the 
 information concerning one firm in a folder and file it numerically. 
 
 Collection records are closely connected, of course, with 
 credit records. Before granting more credit to a customer it is 
 necessary to know if he has paid his previous bills promptly. 
 For this reason collection records are usually placed under the 
 same control as credit records. 
 
154 OFFICE TRAINING AND STANDARDS 
 
 As soon as a ledger account is opened it is necessary to adopt 
 some systematic method of keeping after the customer until 
 the bill is paid. For this purpose it is customary to use a special 
 collection card containing all the available information on the 
 case. The record is handled just hke a follow-up method. By 
 the use of signals on the card, attention may be called to the 
 account whenever any action is desired. 
 
 The usual way is to send out a statement, followed if neces- 
 sary by overdue notices or a sight draft, which is an order upon 
 the debtor for the amount due. If these steps bring no results, 
 form letters or special letters are sent before placing the account 
 in the hands of an attorney for collection. 
 
 When to send statements. The right kind of statements 
 mailed when due will do much toward keeping a credit business 
 on a healthy basis. If statements are sent out at the end of 
 the month, every effort should be made to see that they are 
 mailed so as to reach the customer promptly on the first of the 
 month. Laxness in sending bills, statements, and in following 
 up collections only encourages the slow paying customer. When 
 a customer knows that if he does not pay promptly, he may 
 lose his credit standing, he is more Hkely to send the money 
 when it is due than if he knows he can hold back indefinitely. 
 
 When an itemized statement is not required, the simplest 
 plan is to give the dates and purchases with credits and amount 
 due. Some firms send such a statement and attach carbon 
 copies of each sales slip where itemized copies are desired. 
 
 Another plan which may be used is the daily-posting balance 
 statement and balance ledger. Such statements may be mailed 
 as often as necessary or without any loss of time at the close of 
 the month. Banks particularly use a modification of a daily 
 posting system. 
 
 Making up the payroll. Another regular task of the 
 accounting department is "making up" the payroll. Since one 
 of the largest costs in nearly every business is the cost of help, it 
 is necessary to keep records showing the amount of work done 
 and the salaries paid. Probably the commonest method is the 
 use of a mechanical device for recording the time each employee 
 starts work and finishes. Time-recording clocks are used in 
 
Where 
 
 to 
 enter 
 
 A credit 
 purchase 
 
 Outgoing cash 
 
 A credit 
 sale 
 
 Incoming cash 
 
 Remittance 
 on account 
 
 Cash 
 purchase 
 
 Payment 
 on account 
 
 Cash sale 
 
 Journal 
 
 or 
 record 
 group 
 
 of 
 books 
 
 
 
 
 (1) 
 Bill or 
 register 
 of sale 
 
 
 (1) 
 Bill or 
 register 
 of sale 
 
 
 (1) 
 Cash book 
 
 (1) 
 Cash book 
 
 
 (1) 
 Cash book 
 
 (2) 
 Cash book 
 
 (1) 
 Invoice 
 register 
 
 
 
 
 
 
 (2) 
 Journal 
 
 
 
 (2) 
 Journal 
 
 
 
 Ledger 
 
 or 
 balance 
 group 
 
 of 
 books 
 
 (3) 
 
 Individual 
 
 ledger 
 
 account 
 
 (2) 
 
 Individual 
 
 ledger 
 
 account 
 
 
 (3) 
 
 Customers' 
 
 ledger 
 
 (2) 
 
 Customers' 
 
 ledger 
 
 
 
 
 
 (4) 
 Accounts 
 receivable 
 
 (3) 
 Accounts 
 receivable 
 
 
 (4) 
 Accounts 
 payable 
 
 (3) 
 Accounts 
 payable 
 
 
 
 
 
 
 (4) 
 Ledger 
 
 cash 
 account 
 
 (2) 
 Ledger 
 
 cash 
 account 
 
 
 (4) 
 Ledger 
 
 cash 
 account 
 
 (3) 
 
 Ledger 
 
 cash 
 
 account 
 
 (5) 
 Merchan- 
 dise 
 
 
 (3) 
 Merchan- 
 dise 
 
 (5) 
 Merchan- 
 dise 
 
 
 (4) 
 Merchan- 
 dise 
 
 FIGURE 61 : If you're looking for a quick way to learn where to make any book- 
 keeping entry, you'll find this chart a great help. When you receive or pay out 
 money, whether the transaction is for cash or for credit, your first entry is invari- 
 ably at (1) under the proper heading, then at (2), and so on. 
 155 
 
Statement of Condition 
 
 
 June 30 
 1918 
 
 July 31 
 1918 
 
 Increase 
 
 Decrease 
 
 Assets 
 Plant and machinery 
 Patents, good will, etc. 
 Supplies and unfinished goods 
 Accounts receivable 
 Bills receivable 
 
 Cash ^ , 
 
 Total assets 
 
 Liabilities 
 Capital stock 
 Accounts payable 
 Bills payable 
 Reserve for bad accounts 
 Surplus 
 
 Total liabilities 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 FIGURE 62: The manager receives periodically a statement of condition. A 
 
 comparison of total assets with total liabilities will indicate where the business 
 
 stands. A banker asks for a statement of condition before lending money. 
 
 GREAT WESTERN RAILROAD 
 
 BALANCE SHEET, DECEMBER 31 
 
 ASSETS- 
 
 Road and equipment.. . 
 
 Deposits in lieu of mort- 
 gaged property sold, 
 
 1917 
 
 $ 
 
 40,630,187 
 
 1916 
 
 $ 
 
 39,309,357 
 
 etc 
 
 Invested in affiliated 
 companies: 
 
 Stocks 
 
 Bonds 
 
 Advances 
 
 Other investments .... 
 
 Cash 
 
 Special deposits 
 
 Traffic, etc., balances.. . 
 
 Agents and conductors. 
 
 Miscellaneous 
 
 Material and supplies. . 
 
 Deferred assets 
 
 Prepaid rents and insur- 
 ance premiums 
 
 Unadjusted debits . . 
 
 Securities issued or 
 assumed (unpledged). 
 Total 
 
 3,658,676 4.410,251 
 30 30 
 
 362,123 
 501,835 
 492,014 
 
 30,682 
 258,087 
 168,842 
 244,092 
 
 48,876 
 
 33,480 
 1.21S 
 
 362,123 
 501.835 
 438,441 
 695,080 
 
 51,250 
 160,416 
 139,397 
 218.524 
 
 57.393 
 
 32.705 
 550 
 
 46.432,299 46.412.311 
 
 LIABILITIES— 
 
 Common stock 
 
 Preferred stock. . . 
 
 Stock for conversion... 
 
 Common stock 
 
 Preferred stock 
 
 Equipment obligations. 
 
 Mortgage bonds 
 
 Receipts for funded debt 
 Loans and bills payable 
 Traffic, etc., balances . 
 Accounts and wages . . 
 
 Miscellaneous . . 
 
 Matured interest, etc. . . 
 Accrued interest, etc. . 
 Accrued depreciation . 
 Additions to property 
 
 through income and 
 
 surplus 
 
 Profit and loss 
 
 1917 
 $ 
 
 12.707.941 
 12,962.392 
 
 253.500 
 
 33.200 
 
 1.023,000 
 
 15.432,500 
 
 1.000 
 
 350.000 
 
 219,738 
 
 393,882 
 
 83,700 
 
 124,690 
 
 143,429 
 
 409,356 
 
 758,560 
 ,535.412 
 
 1916 
 $ 
 
 12,707,941 
 12.962,392 
 
 253,500 
 
 33,200 
 
 1.200.000 
 
 15,432.500 
 
 1.000 
 
 350.000 
 
 232.730 
 
 413.590 
 
 32,800 
 
 112.163 
 
 145,242 
 
 348.439 
 
 745.019 
 1.441,795 
 
 46.432.299 46.412.311 
 
 FIGURE 63: Many very large corporations publish their balance sheets for the 
 
 benefit of their stockholders, who may include not only private individuals, but also 
 
 banks, trust companies, and in many cases even other corporations. 
 
 156 
 
THE ACCOUNTING DEPARTMENT 157 
 
 many establishments because of the simple method of recording 
 the time of arrival and departure, or the time spent on any special 
 assignment of work, by just punching a card. Other firms use 
 cards on which the timekeeper punches or marks the hour of 
 arrival and departure. The payroll is made up from these re- 
 cords which the timekeeper sends in to the office. 
 
 What cost accounting is. One branch of accounting which 
 is attracting more and more attention is cost accounting. This 
 is not so much a method of bookkeeping as it is a method of 
 keeping records of the cost of materials, labor, and overhead 
 (general or administration) expenseg' entering into the manufac- 
 tured product. The cost records are usually handled in the 
 accounting department. 
 
 The use of accounting machines. The work of the ac- 
 counting department has been much simphfied in the last few 
 years by the invention of various accounting machines. This 
 means that in many concerns bookkeeping is largely a mechanical 
 process and the clerk simply learns how to operate the bookkeep- 
 ing machine. 
 
 As one result of the extent to which modern labor-saving de- 
 vices have been used in accounting and record keeping, it is now 
 possible for a manager to know at 10 o'clock every morning all 
 the details of his business for the previous day, so that he knows 
 exactly where he stands. Formerly a business man considered 
 himself fortunate if he could get a statement by the tenth of the 
 month of the previous month's business. 
 
 The typewriter in the accounting department. The 
 most commonly used machine for making accounting records is 
 the typewriter, particularly in making out orders, bills, state- 
 ments, looseleaf and card-index material. The most frequently 
 employed record of the office is the totals of columns of figures, 
 which may be accurately and quickly obtained by the aid of the 
 non-listing adding machine. WTiere a fist of the numbers added 
 is desired, it is necessary to employ a listing machine. 
 
 If an itemized fist is wanted with products, remainders, and 
 totals, as in bills and statements, use a billing machine, which 
 is a sort of combination typewriter and adding machine. When 
 the work is completed, one operation has recorded the figures 
 
158 OFFICE TRAINING AND STANDARDS 
 
 in the desired column and found the necessary remainders and 
 totals. As many as 12 copies may be made at one time, so that 
 practically all of the operations involved in keeping the necessary 
 records can be performed with a machine. 
 
 The statistical machine. One of the most interesting 
 recording machines is known as the Hollerith. This is an auto- 
 matic, electrically operated machine, which is employed by large 
 estabUshments for compiling statistical information and state- 
 ments. Cards containing figures representing special informa- 
 tion are punched by means of the perforating attachment. These 
 cards are all placed in the machine and assorted by it auto- 
 matically, selecting only the cards containing the desired infor- 
 mation, and rejecting the others. 
 
 To find any given total, the machine is set to operate only 
 on cards with a certain perforation and the totals are given for 
 such subjects. Where thousands of items are handled, this 
 machine makes it possible to obtain in a comparatively short 
 time, complete statistical records which otherwise would take 
 weeks, months, or even years to compile. One machine will 
 handle 15,000 cards an hour. 
 
 The billing machine. The billing machine is often an im- 
 portant time saver. "WTien goods are purchased from the factory 
 or wholesale house, the bill sent to the merchant is usually called 
 an invoice. Duplicate sales sUps are made at the time of pur- 
 chase and a copy sent to the accounting department as soon as 
 shipment is completed. "Itemized bills" are made out from 
 these sales slips, showing the proper extensions and totals. 
 If part payments are made or any goods returned, credits are 
 shown in red ink. 
 
 The accounting department must not only be able to show 
 that all the transactions of buying and selling are properly re- 
 corded, but the manager will want to know which transactions 
 are profitable, and whether the business is increasing in volume 
 v\'ithout any unnecessary increase in expense. It is, therefore, 
 evident that a ledger which is always in balance and will show 
 a perpetual inventory of stock, is often very desirable. 
 
 This is made possible by means of the adding-subtracting 
 ledger-posting machine. Both debits and credits are posted 
 
thet fiT J •"'^ ^''°""'' ^'^ '^^"'^'"^ '" the office shown here. In 
 
 these fihng drawers is a card for every account. The broad, flat drawers make it 
 
 possible for the girls to handle the cards with a minimum of time and effort 
 
 FIGURE 65: Statistical machines like these do the work that would otherwise 
 
 require a whole army of bookkeepers and clerks. The machine in the foreground 
 
 handles 250 cards a minute and an inexperienced girl can easily run it. 
 
 159 
 
All necessary ) 
 financial information' 
 
 Executive's desk 
 
 Six daily reports _ 
 
 on his desk - 
 
 every morning f 
 
 cover all previous 
 
 da^'s work i 
 
 All necessary 
 
 information about 
 
 clerical routine 
 
 
 DAILY LIST 
 
 
 
 
 
 ^^ ^_.,,,^ n,.. No 
 
 
 Order 
 department 
 
 Order 
 
 1.^ 
 
 i 
 
 j 
 
 i 
 
 n s- 
 
 
 report 
 
 DAILY REPORT 
 
 
 ▲ 
 
 
 
 
 _ 
 
 
 I 
 
 O'OfS despatched Dale 
 
 No 
 
 t 
 
 All necessary 
 
 
 
 " 
 
 
 - 
 
 Order 
 
 1' 
 
 i 
 
 1 
 
 1 
 
 i': 
 
 J 
 
 1 
 
 
 
 Rert^arks 
 
 
 
 
 
 
 
 
 
 
 
 information about 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 orders 
 
 
 — 
 
 - 
 
 - 
 
 - 
 
 
 
 — 
 
 z 
 
 
 
 :- 
 
 - 
 
 — 
 
 z 
 
 
 ^' 
 
 
 
 L- 
 
 L 
 
 L 
 
 ^ 
 
 
 
 n 
 
 " 
 
 r 
 
 -- 
 
 -- 
 
 - 
 
 - 
 
 = 
 
 
 
 *" u'ed 
 
 
 
 
 
 
 
 
 
 
 
 Shipping 1 
 
 
 
 
 
 
 
 
 
 
 
 department 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 report i 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Report F-B— ret 
 
 
 Dcla.l$ ot all orders desoalched 
 
 FIGURE 66: These reports are what, to a large extent, justify the work of the 
 accounting department. They summarize the entire activity of the concern, and 
 tell the manager just what took place the previous day. With these before him, he 
 can see how the business is progressing and bolster up any weaknesses he may find. 
 
 160 
 
THE ACCOUNTING DEPAIITMENT 161 
 
 at one run, and the balance instantly calculated by the machine. 
 This is, of course, a great time-saver as well as trouble-saver when 
 it comes to making out monthly statements and trial balances. 
 The machine is easy to operate. 
 
 Looseleaf and card-index systems. The use of looseleaf 
 or card ledger systems makes possible the adoption of machine 
 bookkeeping. Any number of clerks can work on the accounts at 
 the same time; each account may be kept entirely independent 
 of others, balanced, removed, or filed, as is found most convenient. 
 
 Looseleaf and card-index systems also permit the classifica- 
 tion of accounts in a logical order and the expansion of business 
 by the filing of the balanced or closed accounts and the insertion 
 of new sheets without the expense and labor of opening new books. 
 
 One point to remember is that the records kept by the ac- 
 counting department or by any other department, for that mat- 
 ter, are not kept for the sake of keeping records. They are 
 worth while only as they help to indicate the condition and prog- 
 ress of the business. Study Figure 66 carefully. 
 
 Reports for the executive. The executive must watch all 
 departments, large and small; he must watch men and their work ; 
 he must watch routine work — the amount, the cost, the time re- 
 quired, and the method used — whether it is buying or selling, 
 production or administration. Reports furnished him by the 
 accounting department will enable him to do so as no other 
 method could. He can compare this week's costs with last 
 week's and with the same week a year ago — he can compare one 
 department's progress with another — he can place his finger on 
 weak spots and apply a proper remedy to whatever condition 
 is below normal. 
 
 ACCOUNTING STANDARDS 
 
 The work of the accounting department 
 
 1. Three important kinds of records are kept in the accounting depart- 
 ment: cash received and paid out; the amounts due and the amounts owing; 
 the volume of business done and the cost of doing it. 
 
 2. In addition to keeping records, the accounting department also pre- 
 pares statistical reports for the manager. 
 
 3. Sometimes a separate statistical department prepares the reports, 
 especially in very large corporations. 
 
162 OFFICE TRAINING AND STANDARDS 
 
 4. Three of the facts brought out bj' these reports are the progress of the 
 business, the progress of departments, and the profits and losses. 
 
 5. The manager studies these reports to pick out the weak spots and to 
 take steps to strengthen them. 
 
 6. Statements of accounts should be mailed regularly and on time. 
 
 7. A simple form of statement is one giving the dates and the charges, 
 with the credits and the balance due. 
 
 8. Many banks use ledger-posting macliines, enabling them to obtain 
 balances whenever desired without loss of time. 
 
 9. Pa>Toll records are made up from the time cards of the employees. 
 
 10. Cost accounting shows the cost of materials, labor, and overhead 
 expenses entering into the manufactured product. 
 
 11. Records are not kept for the sake of keeping records. 
 
 12. Records are worth while only as they help to indicate the progress and 
 the conditioirW the business. 
 
 ACCOUNTING STANDARDS 
 
 Elementary principles of bookkeeping 
 
 1. Bookkeeping is the keeping of records. 
 
 2. Accounting is the interpreting of records. 
 
 3. The ledger is probably the most important record in bookkeeping. 
 
 4. The double-entry system of bookkeeping helps to make the ledger 
 more accurate. 
 
 5. In double-entry bookkeeping, two entries are made in the ledger for 
 every transaction: for every charge there is a credit, and for every credit there 
 is a charge. 
 
 6. The looseleaf ledger has a separate leaf for every account. 
 
 7. The left-hand side of the ledger is called the charge or debit side. 
 
 8. The right-hand side of the ledger is called the credit side. 
 
 9. When the total credit entries of all accounts are equal to the total 
 debit entries of all accounts, the ledger is said to be in balance. 
 
 10. The operation of comparing the credit totals with the debit totals is 
 called taking a trial balance. 
 
 11. The balance sheet is a statement of the assets and liabilities of a 
 business. It shows the condition of the business at any stated time. 
 
 12. Entries are usually transferred to the ledger from some other source, 
 such as books of original entry. 
 
 13. The transfer of items from the books of original entry to the ledger 
 is called "posting." 
 
 14. The four commonest books of original entry are the journal, the cash 
 book, the purchase book, and the sales book. 
 
 15. In the journal the transactions are lined up one after another as they 
 take place. 
 
 16. Each transaction is represented by two items in the journal, a credit 
 item and a debit item. 
 
THE ACCOUNTING DEPARTMENT 1G3 
 
 17. In the cash book is recorded all money received and paid out. 
 
 18. Cash received is entered on the left or debit side of the cash book. 
 
 19. Cash paid is entered on the right or credit side of the cash book. 
 
 20. In the purchase book are entered all purchases made from others. 
 
 21. In the sales books are entered all sales made to others. 
 
 22. These five books — the ledger, the journal, the cash book, the purchase 
 book, and the sales book — are the fundamental books on which all others 
 are based. 
 
 ACCOUNTING STANDARDS 
 
 Credit and collection records 
 
 1. Since a large part of business is done on a credit basis, certain records 
 must be kept to determine whether customers are worthy of credit. 
 
 2. Some of the sources of information about customers are salesmen, 
 banks, newspapers, trade journals, and credit reporting agencies. 
 
 3. Different firms use different credit records. 
 
 4. One firm records credit information on a 3 by 5 inch card, giving the 
 name, address, rating, ledger account number, and oth"er useful or interesting 
 information. 
 
 5. Another firm places the credit rating at the top of the customer's ledger 
 account. 
 
 6. Still another firm places all credit information concerning customers 
 in letter-size folders, filing them numerically. 
 
 7. A collection record is used to watch payments on accounts, in order 
 not to let the account run too long before it is "cleaned up." 
 
 8. One method is to use a special follow-up card showing the dates notices 
 are mailed, or the calls made by the collector; the payments made; the balances 
 due; any special action taken, and so forth. 
 
 9. By the use of tabs or signals, attention may be called to any account 
 card whenever desired. 
 
 10. Collections should be followed up carefully and firmly. 
 
 ACCOUNTING STANDARDS 
 
 The use of labor-saving devices 
 
 1. The use of labor-saving devices in the accounting department makes 
 it possible for a manager to know every morning at 10 o'clock all the details 
 of the previous day's business. 
 
 2. The use of looseleaf and card ledger devices makes possible the use 
 of machines in bookkeeping. 
 
 3. These devices also permit the logical classification of accounts and 
 other information. 
 
 4. The typewriter is used in writing orders, bills, statements, looseleaf 
 and card-index records. 
 
 5. Columns of figures are added on adding machines. 
 
 6. A non-listing adding machine simply adds the figures, giving the total. 
 
164 OFFICE TRAINING AND STANDARDS 
 
 7. A listing machine not only adds the figures, but also prints each 
 figure on a slip of paper, thus furnishing a check. 
 
 8. A billing machine is a combination typewriter and adding machine. 
 
 9. With a billing machine you can obtain a printed list of items, with 
 products, balances, and totals. 
 
 10. The Hollerith statistical machine is used to compile statistics where 
 a large number of figures is handled. This machine sorts punched cards at 
 the rate of 15,000 an hour. 
 
 STANDARD QUESTIONS 
 
 The work of the accounting department 
 
 1. What is the purpose of keeping books? 
 
 2. What kinds of records are kept in the accounting department? 
 
 3. What must records show to make them worth while? 
 
 4. Why is it necessary for executives to receive frequent reports of the 
 condition of the business? 
 
 5. What three important facts are brought out by the reports prepared 
 for the manager? 
 
 6. What does a simple statement of account include? 
 
 7. Why are monthly statements sent to customers? 
 
 8. If the accounting department should be especially busy one month, 
 would there by any objection to putting off mailing the statements until the 
 next month? 
 
 9. What is cost accounting? 
 
 10. Why is accuracy so necessary in keeping books? 
 
 STANDARD QUESTIONS 
 
 Elementary principles of bookkeeping 
 
 1. What is the difference between accounting and bookkeeping? 
 
 2. What is the journal? 
 
 3. What is the cash book? 
 
 4. What is the ledger? 
 
 5. What is the purchase book used for? 
 
 6. What is the sales book used for? 
 
 7. What are the four commonest books of original entry? 
 
 8. What is meant by debit and credit? 
 
 9. Which side of the ledger is the debit side? The credit? 
 
 10. What is the most important set of records in bookkeeping? 
 
 11. What is the double-entry system? 
 
 12. What is meant by "posting"? 
 
 13. On which side of the cash book would you enter cash received? 
 
 14. On which side would you enter cash paid out? 
 
 15. What are assets? 
 
 16. What are liabilities? 
 
THE ACCOUNTING DEPARTMENT 165 
 
 17. "VVTiat is the trial balance and what does it show? 
 
 18. When is the ledger in balancs? 
 
 19. What is the balance sheet? 
 
 20. What does the balance sheet tell you about the business? 
 
 STANDARD QUESTIONS 
 
 Credit and collection records 
 
 1. Why is it necessary to keep credit records? 
 
 2. Do all firms use the same kind of credit records? Why or why not? 
 
 3. Name three methods by which credit records are kept. 
 
 4. What are four sources of information about customers? 
 
 5. What is the purpose of collection records? 
 
 6. What methods are used by three different firms to watch overdue 
 accounts? 
 
 7. How may attention be called to an account at any desired time? 
 
 8. Why should collections be followed carefully and firmly? 
 
 9. If a customer ignores a statement, what can be done? 
 10. What final step may be taken to enforce payment? 
 
 STANDARD QUESTIONS 
 
 The use of labor-saving devices 
 
 1. Name four machines that have simplified to a considerable extent the 
 bookkeeper's work. 
 
 2. What are the advantages, if any, of looseleaf ledgers? 
 
 3. For what purpose may the typewriter be used in the accounting 
 department? 
 
 4. What does the adding machine do that the bookkeeper used to do? 
 
 5. What is the difference between a listing and a non-listing adding 
 machine? 
 
 6. What is a billing machine? 
 
 7. What machine is used for compiling statistics? 
 
 8. What are several methods used commonly for making up the payroll? 
 
 9. How are statements made by machinery? 
 
 10. Is bookkeeping by machinery more accurate or less accurate than 
 other methods? Why or why not? 
 
 STANDARD EXERCISES 
 
 The use of labor-saving devices 
 
 1. Make a list of all the uses of a typewriter in the accounting department. 
 
 2. Make a list of all the uses of a typewriter that you can recall, either 
 in the accounting department or in any other department. 
 
 3. Make a list of any other uses you can imagine a typewriter might be 
 used for. 
 
166 
 
 OFFICE TRAINING AND STANDARDS 
 
 4. Make a list of the jobs an adding machine can do, distinguishing be- 
 tween adding machines for different purposes, and explaining how each kind 
 is particularly fitted for certain work. 
 
 5. Make a list of all the different office machines you ever saw or heard 
 of, and place in one column all those that can be used in the accounting de- 
 partment, explaining how each machine is used. 
 
 STANDARD EXERCISES 
 
 The work of the accounting department 
 (Questions similar to these are asked by the New York State Board of 
 
 Examiners as a test in speed, accuracy, and accounting.) 
 
 Make up the payroll from the following time sheet, filling in the columns 
 
 "total hours" and "wages due" and totaling the last column. 
 
 Time Sheet' for Week Ending Jan. 13 
 
 Time in hours 
 
 Total 
 hours 
 
 Rate per 
 hour 
 
 Wages 
 due 
 
 No. 
 1 
 2 
 3 
 4 
 5 
 6 
 7 
 8 
 9 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 20 
 21 
 22 
 23 
 24 
 25 
 
 Name 
 
 M 
 
 Jones, L. C 
 
 Brown, G.W... 
 Boylan, C. C... 
 Eastman, A. B . 
 
 Cook, E. A 
 
 Winslow, W. W. 
 Fenno, L. M . . . 
 Rogers, W.T.. 
 
 Gray, L. P 
 
 Baird, J. G 
 
 Bills, C.E 
 
 Jeffers, G. R. .. 
 Patton, W. L. . . 
 
 Bliss, G. G 
 
 Day, R. G 
 
 Grant, E. F. . . . 
 Newman, F. C. . 
 
 Glass, J. G 
 
 White, C. C... 
 Black, B.W.... 
 Green, J. G . . . . 
 Ayers, C. B.... 
 Wylie, H. H... 
 
 Hunt, L. S 
 
 Howe, S. C . . . . 
 
 7H 
 3 
 
 m 
 
 7K 
 9 
 
 8^ 
 
 8M 
 7M 
 10 
 7M 
 8 
 
 7H 
 8K 
 IVa 
 8 
 VA 
 
 m 
 
 8 
 
 7M 
 
 6 
 
 8 
 
 9% 
 
 8 
 
 4 
 
 8 
 
 7K 
 9 
 8 
 
 8M 
 10 
 
 m 
 
 9 
 
 m 
 
 7 
 
 W2 
 
 7 
 9 
 
 7 
 
 W 
 2 
 
 93^ 
 
 7 
 
 8^ 
 9 
 
 8M 
 8^ 
 8^ 
 7^ 
 
 7M 
 
 8^1 
 
 8 
 
 8M 
 
 7^ 
 
 7M 
 
 9M 
 
 8M 
 
 9 
 
 6>^ 
 
 5 
 
 8K 
 
 7 
 
 4 
 2 
 
 6>i 
 7 
 
 9^ 
 8M 
 8 
 
 7M1 
 6^ 
 8H 
 8M 
 8 
 10 
 93^ 
 
 W2 
 
 9 
 
 9M1 
 
 9 
 
 7M 
 
 8 
 
 7H 
 
 SH 
 
 9 
 
 F S 
 
 .40 
 .24 
 .32 
 .32 
 .25 
 .48 
 .22H 
 .15 
 .123^ 
 .20 
 .50 
 .333^ 
 .60 
 .75 
 .25 
 .37H 
 .40 
 • 623^ 
 .30 
 1.00 
 .45 
 .35 
 .42 
 .52 
 .55 
 
 Total payroll for the week . 
 
THE ACCOUNTING DEPARTMENT 
 
 167 
 
 STANDARD EXERCISES 
 
 Computations in the accounting department 
 Find the value of: 
 
 doz. gloves @ $6.70 a doz 
 
 X. 
 
 2. 
 
 88 
 
 3. 
 
 7j 
 
 4. 
 
 93 
 
 5. 
 
 55 
 
 6. 
 
 508 
 
 7. 
 
 105 
 
 8. 
 
 525 
 
 9. 
 
 498 
 
 10. 
 
 993 
 
 11. 
 
 825 
 
 12. 
 
 750 
 
 13. 
 
 1,275 
 
 14. 
 
 6,400 
 
 15. 
 
 5,235 
 
 16. 
 
 1,224 
 
 17. 
 
 5,500 
 
 18. 
 
 15,750 
 
 19. 
 
 13,600 
 
 20. 
 
 12,345 
 
 21. 
 
 8,900 
 
 22. 
 
 6,400 
 
 23. 
 
 4,400 
 
 24. 
 
 305,000 
 
 25. 
 
 13,434 
 
 doz. collars @ .73 a doz. 
 
 714 doz. ties @ 4.50 a doz. 
 
 doz. buttons @ .093^ a doz. 
 
 doz. pencils 
 
 lbs. nails 
 
 lbs. wire 
 
 lbs. guano 
 
 lbs. oatmeal 
 
 lbs. feed 
 
 fence posts 
 
 bolts 
 
 paving stones . . . 
 
 fence posts 
 
 paving blocks . . . 
 
 tiles @ 10.05 
 
 ft. lumber @ 37.00 
 
 bricks @ 15.75 
 
 shingles @ 13.40 
 
 iron posts © 9.66% 
 
 lbs. coal @ 16.20 
 
 lbs. feed @ 88.00 
 
 lbs. hay @ 16.40 
 
 lbs. bran @ 15.25 
 
 @ .44 
 @ 3.05 
 @ 1.25 
 @ 5.25 
 @ 4.92 
 @ 8.95 
 @ 8.25 
 @ 3.50 
 © 12.75 
 @ 8.80 
 @ 10.89 
 
 a doz. 
 a cwt. 
 a cwt. 
 a cwt. 
 a cwt. 
 a cwt. 
 aC. . 
 aC. . 
 aC. . 
 aC. . 
 aC. . 
 aM.. 
 aM.. 
 aM.. 
 aM.. 
 aM.. 
 aT.. 
 aT.. 
 aT. . 
 aT. . 
 
 lbs. iron ore @ 10.33% a T. 
 
 STANDARD EXERCISES 
 
 Elementary principles of bookkeeping 
 
 1. With pen and rule show a cash-book page; a journal page; a ledger page. 
 
 2. James Black owed Allison & Company S325.70 according to a state- 
 ment rendered the last of the month. Black purchased merchandise on the 
 8th to the amount of $300.60, was credited with merchandise returned $12.40 
 on the 9th. Paid cash $300 on the 15th. Purchased merchandise on the 12th 
 to the amount of $460.25 and paid cash $361.90 on the 29th. How much balance 
 would his statement show? 
 
 3. (a) From the following debits and credits make a trial balance: 
 
 Proprietor Cr. $5,522.16; Cash Dr. $10,640, Cr. S7,577; 
 Mdse. Dr. $6,848, Cr. $5,290; Expense Dr. $842, Cr. $25; Interest 
 Dr. $8.56, Cr. $6.40; Notes receivable Dr. $630, Cr. $425; Ac- 
 counts Receivable Dr. $8,462, Cr. $7,240; Notes Payable Dr. 
 $465, Cr. $630; Accounts Payable Dr. $5,240, Cr. $6,420. 
 
168 OFFICE TRAINING AND STANDARDS 
 
 (b) Make a trial balance by differences, using the same debits and 
 credits. 
 
 4. If your statements show the following, what is the condition of the 
 business? Which are assets and which liabilities? Draw up in the form of a 
 balance sheet. 
 
 Notes payable $425 
 
 Accounts payable 5,420 
 
 Merchandise worth 6,200 
 
 Cash on hand 4,200 
 
 Notes receivable 837 
 
 Accounts receivable 6,280 
 
 5. What is the condition of the following business? Draw up in the form 
 of a balance sheet: 
 
 Merchandise on hand $1,240 
 
 Cash 460 
 
 Coal on hand 120 
 
 Accounts receivable 320 
 
 Notes receivable 640 
 
 Notes payable 1,225 
 
 Accounts payable 1,750 
 
 STANDARD EXERCISES 
 
 Credit and collection records 
 
 1. Design a looseleaf system for gathering credit information, and explain 
 the meaning of each item. 
 
 2. Design a card system for watching collections and explain how it is used. 
 
 3. Design a complete collection system, explaining in detail how it operates. 
 
 4. Explain how you would find the rating of a customer, and what that 
 rating means. 
 
 5. Design a form of daily report for the accounting department to make 
 to the general manager, showing the status of collections. 
 
CHAPTER XII 
 
 THE TREASURER'S OFFICE 
 
 JUST as the treasury department in Washington has charge 
 of the government treasure or funds, so the treasurer of 
 a concern, or the person who fulfils the duties of that 
 office, has supervision over the concern's money matters. He 
 is responsible for the funds of the company. In order, there- 
 fore, to enable us to understand just what the treasurer does 
 and how his assistants can help him in the most effective way 
 we ought to have a pretty clear idea of just w^at is meant 
 by the word "funds." 
 
 What are * 'funds?" "Funds" is a rather general term 
 appUed to the money and securities of a concern. It covers 
 all forms of money, from what is in the cash drawer — including 
 checks, currency, bills, notes, drafts, and so forth — to all the 
 bank deposits, and loans, as well as the investments in the 
 stocks, bonds, and conmiercial paper of other concerns. The 
 treasurer may therefore well be entitled to be called the financial 
 manager of a company, or the manager of its finances and 
 financial matters. 
 
 The meaning of finance. "Finances" is an attractive 
 sounding word, but its meaning is really quite simple, and 
 when we say that the treasurer is the manager of the finances, 
 we mean merely that he is the man who looks after the money 
 matters. Now, of course, for one man to attend to all the 
 money matters of a concern of any size would be impossible; 
 therefore he delegates parts of his work to others, especially the 
 greater part of the accounting, which is handled by the account- 
 ing department. Of course, the number of people on the 
 treasurer's staff will depend to a great extent upon the size and 
 nature of the business. 
 
170 OFFICE TRAINING AND STANDARDS 
 
 What the treasurer's office does. If we were to outline 
 the duties of the treasurer's office, it would look like this: 
 
 (1) provision of funds for carrying on the company's business 
 
 (a) capital 
 
 (b) current expenditures 
 
 (c) loans 
 
 (2) care of and responsibility for the company's funds 
 
 (a) receiving moneys 
 
 (b) accounting for moneys 
 
 (c) depositing moneys in the bank 
 
 (d) disbursing moneys 
 
 (e) investing surplus funds 
 
 (3) representing the company in dealings with the bank 
 
 (a) borrowing 
 
 (b) collections through drafts, acceptances 
 
 (c) discounting bills 
 
 (d) advice and information 
 
 (4) care of the company's property 
 
 (a) insurance 
 
 (b) rents 
 
 (c) taxes 
 
 (d) repairs ■ 
 
 (e) improvements 
 
 The accounting department, as we learned in an earlier 
 lesson, handles most of the bookkeeping connected with some 
 of these duties, and the cashier handles the cash received, acting 
 for the treasurer in doing so. But the responsibihty rests with 
 the treasurer. No money can be paid out without his authority, 
 and he is constantly on the watch to see that the company's 
 property is at all times conserved. 
 
 Since many of the treasurer's duties are usually outlined 
 clearly in the by-laws of the company, it may help you to get a 
 set of corporation by-laws and study them carefully. 
 
 Why capital must be provided. Without money a busi- 
 ness cannot run. This seems so obvious as to be almost unnec- 
 essary to state as a fact, but you would be surprised if you knew 
 how many concerns commence business with insufficient capital, 
 and are handicapped for lack of money. Hence the first step 
 in commencing business is to provide the capital. This is 
 usually the treasurer's first job. In fact, as the business expands, 
 the treasurer may be asked to find new capital. 
 
THE TREASURER'S OFFICE 171 
 
 How capital is obtained. Capital is provided usually by 
 the sale of stock or bonds or shares. In a partnership the 
 partners furnish the capital. One partner may furnish the 
 money and the other the experience. The partner who fur- 
 nishes the money often acts as treasurer. The treasurer must 
 not only obtain the capital, but he must also see that the money 
 is spent for the purpose for which it was obtained. 
 
 Even after a company has started business, it may require, 
 and usually does, varying amounts of money for temporary 
 use. It would be unwise for the treasurer to sell the company's 
 stock to get money for temporary purposes, so he borrows the 
 money needed at a bank. 
 
 Borrowing money from the bank. Just why a successful 
 concern should borrow money may not be clear to you. Nearly 
 all business houses use borrowed money to meet their obliga- 
 tions, simply because it is the least expensive method. A 
 concern will borrow money at 6% interest if it is reasonably 
 certain that it can make 8% or more with that money before 
 the loan is repaid. 
 
 Take the simple proposition of paying a bill — assuming that 
 the terms are 2% for cash within 10 days. Now suppose that 
 the treasurer has not sufficient cash in the bank to meet the 
 bill. The company's money is not idle; on the contrary it 
 may be earning such liberal profits that to use it for paying that 
 particular bill would be false economy. The treasurer therefore 
 borrows money from the bank, pays the bill, takes the 2% 
 discount, and within 30 days repays the loan to the bank at 
 a cost of 3/^ of 1% as against the 2% which he earned by paying 
 the bill promptly. 
 
 In the coiu-se of a year a concern may make several loans 
 from its banks, and the .treasurer is usually the man who deals 
 with the bank — he "negotiates" the loan, watches the due dates 
 to see that the loan is repaid promptly, and keeps the firm on 
 cordial relations with the bank. 
 
 Making payments by check. . The treasurer also sees that 
 the deposits in the ^banks are maintained at a proper level. 
 Some banks require a deposit to be at least $1,000 and others 
 more or less than that sum. Practically all firms pay their 
 
172 OFFICE TRAINING AND STANDARDS 
 
 bills by check, and the treasurer makes sure that the checks 
 he signs are correct, not too much and not too little. 
 
 One way in which this accuracy is assured is to attach to 
 the check a "voucher" which is simply a forna stating exactly 
 what the money is paid for, and who approved the amount. 
 Thus, in case of error, the mistake can be quickly traced to the 
 one responsible. In some companies two persons sign the 
 checks; either the auditor signs with the treasurer, or the presi- 
 dent, or the secretary. 
 
 Many concerns use their banks to get cash in advance for 
 money due them. This money may be in the form of loans 
 and accounts receivable, notes receivable, drafts, or trade 
 acceptances. In borrowing money on accounts receivable the 
 treasurer takes to the bank a hst of the firm's accounts receivable. 
 If the banker thinks they are good he will make a loan on them, 
 with the understanding that when the bills are paid the money 
 is to be used to repay the loans. 
 
 What a note receivable is. A "note receivable" is a note 
 given to the firm by someone who owes the fir m money. Usually 
 notes receivable run for 30, 60, or 90 "days, although they may 
 run for two, three, or even four years. If the firm waited until 
 the note was due, it would be 30, 60, or 90 days before it could 
 get the money. If it wants the money before "maturity," 
 the treasurer simply takes the note over to the bank, and "dis- 
 counts" it; that is, the bank lends him the amount the note 
 calls for, less the interest for the period stated. As the maturity 
 date approaches, the bank notifies the maker of the note that 
 his note is coming due, and that he should be prepared to pay 
 it. Of course, if the maker "dishonors" his note by refusing, 
 to pay it, then the treasurer will be under obligations to make 
 good the loss to the bank. 
 
 Watching collections. The treasurer keeps a watchful 
 eye on collections. The usual terms on which goods are sold 
 are 30 or 60 days. Sometimes to encourage prompt payment 
 a discount of 1% or 2% is allowed if the bill is paid within 10 
 days. But if the bill isn't paid at the end of 30 or 60 days, the 
 treasurer takes steps to collect the money. Often he does 
 this through the collection department of the firm. 
 
THE TREASURER'S OFFICE 173 
 
 An account may run so long that drastic measures may have 
 to be taken to make the debtor pay. One of the first steps is 
 to write the debtor that if the account is not paid by a certain 
 date, the company will draw on him through his bank. This 
 often has the desired effect, since few men like to have their 
 banks present drafts to them, as it implies a lack of credit. 
 If this notice does not get the money, the treasurer draws a 
 draft on the debtor and sends it to the bank for collection. 
 The bank presents it to the debtor and asks for payment. A 
 draft is an order upon the debtor to pay to the creditor the 
 amount due; it is signed by the creditor. 
 
 If the debtor decides to pay the draft, he writes his name 
 across the face, together with the word "accepted" and the 
 date. If he doesn't wish to pay it, he says so, or else doesn't pay 
 any attention to it, and the bank then returns it to the treasurer, 
 who decides the next step to take to get the money. 
 
 Investing surplus funds. One of the duties of the treas- 
 urer's office is the investing of the surplus funds of the company. 
 By "surplus funds" is meant the money which the firm is not 
 using or is not likely to use in the near future. If these funds 
 were allowed to lie idle, the company would lose interest on its 
 money, and it doesn't take long for interest to amount to a 
 respectable sum. When you realize that the interest of $100,000 
 is over S16 for only one day at 6%, you can readily see that 
 the question of investing surplus funds is important. 
 
 In deciding just how he shall invest.these funds, the treasurer 
 considers three points in this order: marketabihty, safety, and 
 yield. Marketabihty comes first because if the concern should 
 need money in a hurry the first place to turn would naturally 
 be its investments; the treasurer wants something he can sell 
 or borrow on at a moment's notice. 
 
 Next comes safety of principal. With most people not in 
 business, safety colnes first, but a business man can afford to 
 take chances that another person could not. He can watch 
 market prices closely, and if he sees values decline he can "switch" 
 his investments, or take his money out entirely until he is ready 
 to invest it again. Hence safety is a secondary consideration 
 with the business man. 
 
174 OFFICE TRAINING AND STANDARDS 
 
 The yield on the investment. Third comes the yield on 
 the investment. Anybody can get 2% at a bank; some banks 
 pay 3% and even 4%. High-grade bonds can be bought to 
 yield from 3% to 8%; stocks yield from 5% to 25%. The 
 higher the yield the less the safety; but the treasurer watches 
 the stock market very, very closely, and if an opportunity comes 
 along to buy a stock paying 8% to 15% with a good market, 
 he buys the stock, first making sure that the security to be 
 purchased has a good market so that it may be easily sold if 
 found necessary. 
 
 Or he may get a chance to buy a bond yielding 8% to 10%. 
 Some concerns prefer to buy bonds instead of stocks, because 
 the market value of bonds varies very slightly compared with 
 the violent changes in stock prices, and usually bonds can 
 be sold for very nearly what was paid for them. This is all 
 a matter of judgment, and the treasurer must be on the job 
 every minute of the day. 
 
 If the company owns real estate and buildings, the treasurer 
 has still further duties. He sees that the taxes are paid when 
 they're due, the rents collected if there are tenants, repairs 
 made where necessary, and attends to the making of improve- 
 ments if desirable. 
 
 How this chapter can help you. Although the functions 
 of the treasurer's office have been described rather fully in this 
 lesson, the object is not to teach you how to become the treasurer 
 of a big corporation right away, but to show you the meaning 
 back of all your work, which may include making out checks 
 and deposit slips, bills and drafts, inspecting, recording, or 
 filling in various kinds of blank papers such as notes, mortgages, 
 deeds, leases, stocks, bonds, contracts, insurance pohcies, and 
 commercial drafts, all or many of which are or will be used by 
 the concern which employs you. 
 
 If you are able to appreciate fully the ultimate effect 
 of your work, you are able to perform it much more carefully 
 and intelligently than if you are simply "working." Further- 
 more, in an emergency, your knowledge of financial matters 
 might become of valuable assistance to your firm and thereby 
 to yourself also. 
 
THE TREASURER'S OFFICE 175 
 
 FINANCIAL STANDARDS 
 
 The work of the treasurer's office 
 
 1. The treasurer supervises the money matters and is responsible for the 
 funds of his company. 
 
 2. The term "funds" covers all forms of money, including checks, notes, 
 drafts, bank deposits, loans, stocks, and bonds. 
 
 3. Many of the treasurer's duties may be delegated to others. 
 
 4. The four nrincina Lxiu ^ t^j es of the treasurer are the provision of funds 
 for carrying on the businees, the care of and respon!?ibility for the company's 
 funds, representing the company in dealing with the bank, and the care of the 
 company's property. 
 
 5. Nearly all firms pay their bills by check. 
 
 6. All checks of the company are usually signed by two persons, of whom 
 the treasurer may be one. 
 
 7. The treasurer watches collections very closely, and is usually the final 
 authority on the action to be taken with bad accounts. 
 
 8. "Surplus funds" signifies money which is not being used or is not likely 
 to be used in the near future. 
 
 FINANCIAL STANDARDS 
 
 Elementary principles of finance 
 
 1. Capital for new ventures is usually provided by the sale of stocks 
 and bonds. 
 
 2. Bank loans are made ordinarily for temporary purposes only. 
 
 3. A bond is a note under seal, and usually runs for a term of j'ears. 
 
 4. A bank loan may be made on demand, or it may run for 30, 60, or 
 90 days, but seldom longer than four or six months. 
 
 5. Loans which run for a specified period are called time loans. 
 
 6. Call loans must be paid the day they are called for. 
 
 7. A note payable on demand is due as soon as the demand is made. 
 
 8. A note dated on Sunday is void in some states. 
 
 9. If a note falls due on Sunday, it is payable either on Saturday or 
 Monday according to the state law. 
 
 10. You can obtain cash on a note before it is due by discounting it at 
 the bank. 
 
 11. If partial payments are made on a note, they should be noted on the 
 back of the note. 
 
 12. If a note is not returned when paid, it might be collected a second 
 time if it were in the hands of a bona fide holder. 
 
 13. The legal rate of interest is 6% usually, but the laws of some states 
 permit higher rates. 
 
 14. Usury is charging a higher rate of interest than the state law permits. 
 
 15. In some states the interest is forfeited if usury is practiced. 
 
 16. In some states the principal and interest are forfeited by usury. 
 
 17. In some states there are no usury laws and no penalty for usury. 
 
176 OFFICE TRAINING AND STANDARDS 
 
 18. Bank loans are made either on collateral or some other security. 
 
 19. Collateral means notes, contracts, stocks or bonds deposited with the 
 bank to secure loans. 
 
 20. On collateral loans only one signature is required. 
 
 21. On loans without collateral two or more signatures are often required. 
 
 22. The signer of a note is called the maker. 
 
 23. The indorser of a note does not sign his name on the face of the note, 
 but on the back. 
 
 24. If two persons sign a note, each is held responsible for the full amount. 
 
 25. If, however, one man signs the note and another man indorses it, the 
 indorser is responsible only in case the maker does not pay. 
 
 26. Each additional indorser on a note is responsible only in case the 
 maker or the preceding indorser fails to pa5\ 
 
 27. A note signed by a firm may be collected from either partner. 
 
 28. A note signed by a minor cannot be enforced. 
 
 29. A man who cannot write can sign a note by making his mark. 
 
 30. A note given by a man who cannot write should be witnessed. 
 
 31. If a man carelessly signs a note which he thinks is some other paper, 
 he is liable. 
 
 32. A note written with pencil on a scrap of paper is good. 
 
 33. A note obtained through forgery cannot be collected, even if it is in 
 the hands of an innocent purchaser. 
 
 34. If neither interest nor principal is paid for several years, the note may 
 be outlawed. 
 
 35. The time for outlawing a note varies in different sections according 
 to the state laws. 
 
 36. If an unpaid note is secured, it is as good as before it was due. 
 
 FINANCIAL STANDARDS 
 
 What you can do with checks 
 
 1. A check is an order on a bank to pay out money. 
 
 2. The one who signs the check is called the maker or drawer. 
 
 3. The one to whom the check is payable is called the payee. 
 
 4. Checks are usually made out on regular printed forms, but they may 
 be written on any kind of paper if a blank check is not handy. 
 
 5. Checks written in lead pencil are good, but it is safer to use ink. 
 
 6. Before writing the check, fill in the stub. 
 
 7. In writing the date on a check, use the name of the month instead of 
 the number. 
 
 8. A check payable to bearer could be cashed by anyone holding it. 
 If lost, the finder could cash it. 
 
 9. The same is true of a check with the payee left blank. 
 
 10. You should never write a check payable to the bearer. 
 
 11. Make your check payable to cash if you wish to draw money from 
 your own account. 
 
THE TREASURER'S OFFICE 177 
 
 12. The amount is stated in two places, once in figures, and once in 
 writing. 
 
 13. Make your figures plain, and see that they agree with the written 
 amount. 
 
 14. If the written amount does not agree with the figures, the writing is 
 considered correct. 
 
 15. Write the amount plainly and carefully so that it cannot be changed 
 in any way, shape or manner. 
 
 16. Do not change the amount, if you make an error. Write a new check. 
 
 17. If you write a check with gross carelessness and it is raised, you lose. 
 
 18. A check protector will help to prevent altering the amount. Large 
 firms and banks always use them. 
 
 19. Some check protectors perforate the check; others penetrate the 
 paper; others use an indelible ink. Colored checks on prepared paper aid 
 in detecting erasures or alterations. 
 
 20. Write your signature plainly. 
 
 21. Write your signature the same way on all checks. 
 
 22. After writing a check see that it agrees with the stub in every way. 
 
 23. Forgery is the alteration of any written instrument without the 
 authority of the maker of that instrument. It is a serious crime, and is always 
 heavily punished. 
 
 24. If your signature is successfully forged the bank would be the loser. 
 
 25. A check payable to a person must be indorsed by that person before 
 the bank will pay the check. 
 
 26. The payee indorses a check by signing his name on the back of the 
 check, exactly as it appears on the face of the check. 
 
 27. The proper way to indorse a check is to write your name on the back 
 across the left end. 
 
 28. If other names are indorsed on the back when you receive the check, 
 indorse your name below the other indorsements. 
 
 29. It is wise not to indorse a check until you are ready to dispose of it. 
 
 30. The safest way to indorse checks is to write the words: "Pay to the 
 order of Albert Wallace," across the left end of the check on the back, and 
 then sign your name. This is an indorsement in full. 
 
 31. The bank holds indorsers of checks liable just as indorsers of notes 
 are liable. 
 
 32. You can escape this liability by writing "without recourse" above 
 your indorsement. This is called a qualified indorsement. 
 
 33. If indorsed to "John Smith for deposit," it is a restricted indorsement. 
 
 34. If indorsed "Pay to John Smith" it is a limited indorsement. 
 
 35. You should deposit all checks or cash them within 24 hours after 
 you receive them. 
 
 36. If you hold checks longer than 24 hours you will be the loser in case 
 of the failure of the bank or the drawer. 
 
 37. You may hold the check as long as you please if you are wiUing to 
 take the chances of losing. 
 
178 OFFICE TRAINING AND STANDARDS 
 
 38. A check cannot be cashed before the date, if it is dated ahead. 
 
 39. If a check is dated Sunday it can be cashed on Monday. 
 
 40. If the date is omitted it can be cashed whenever it is presented. 
 
 41. You can cash a check in a strange bank if you have credentials to 
 identify j'ou to the bank. 
 
 42. If a man who knows you will o.k. your signature, j^ou can cash a check 
 wherever his signature is known. 
 
 43. A bank cannot refuse to pay a check if the maker of the check has 
 sufficient funds on deposit in the bank. 
 
 44. If, however, the maker has ordered the bank to "stop payment" on 
 the check, the bank will refuse to pay it. 
 
 45. If the maker's account is overdrawn or there are not sufficient funds 
 on deposit, the bank will refuse to pay the check. 
 
 46. It is not a crime to draw a check on a bank when you are overdrawn, 
 but it is bad business, and in some states illegal. 
 
 47. It is fraud to draw a check on a bank where you never had any deposit. 
 
 48. If a check is stolen and cashed, the man from whom it was stolen 
 would not be the loser. 
 
 49. If you indorse a check that is protested you are responsible. 
 
 50. If j^ou indorse a forged check and cash it you are responsible. 
 
 51. If the bank cashes the check on a forged indorsement the bank is 
 the loser. 
 
 52. Each month the bank renders a statement of your account, showing 
 deposits made, checks paid, and the balance. Your canceled checks are returned 
 to you at the same time. 
 
 53. A canceled check, when returned, bears the indorsement of the payee 
 and should be saved as a receipt for the payment. 
 
 54. Personal checks are very satisfactory for making remittances, since 
 they are easy to draw, easy to send, and the canceled check is a receipt. 
 
 55. For out-of-town remittances, however, many banks charge exchange 
 on personal checks. 
 
 56. It is well, therefore, in sending or receiving out-of-town remittances, to 
 use a check upon a New York bank. 
 
 57. Nearly every bank has connections, either directly or indirectly 
 through other banks, with some New York bank. Your bank can therefore 
 ordinarily accommodate you with a "New York draft," as it is called. 
 
 58. Another advantage in using bank drafts for out-of-touTi remittances 
 is the avoidance of any possible delay in holding up an order until the check 
 is collected. 
 
 59. A certified check is a personal check which the bank has certified. It 
 is good for the amount for which it is certified. 
 
 60. In dealing, therefore, with anyone whose credit or character may not 
 be good, or who is a stranger to you, you are justified in asking him to give 
 you a certified check. 
 
 61. The maker of a certified check cannot have payment stopped on that 
 check without an order from the court. 
 
THE TREASURER'S OFFICE 179 
 
 FINANCIAL STANDARDS 
 
 Partnerships and corporations 
 
 1. A partnership is an arrangement by which two or more persons may 
 work together for their mutual profit. 
 
 2. Nearly all partnerships are or should be based upon a written agree- 
 ment between the partners, stating exactly what each partner agrees to do and 
 what he expects the other partners to do. 
 
 3. The partnership agreement should therefore be carefully drawn, 
 preferably by an attorney. 
 
 4. The partnership agreement usually states who the partners are, the 
 nature of the business, each partner's duties in that business, what each partner 
 agrees to put in and take out of the business, and how the partnership shall be 
 terminated. 
 
 5. Regardless, however, of the agreement, there are certain laws affecting 
 partnerships which must be considered. 
 
 6. The outstanding feature of a partnership is the unlimited personal 
 liability of each partner for the debts of the firm, and responsibility for the 
 acts of all the other partners. 
 
 7. If the firm fails, each member is individually liable for the entire 
 debts of the firm. 
 
 8. Each partner may ordinarily make contracts binding all the other 
 partners, even though he acts against their wishes. 
 
 9. It is wise, therefore, to be extremely careful in choosing partners, to 
 see that those you choose are trustworthy in every way. 
 
 10. A partner may withdraw from a firm at any time, but his withdrawal 
 does not release him in any way from his liability for the acts and debts of the 
 partnership up to the time of his withdrawal. 
 
 11. A partnership is dissolved by death, the lunacy, the insolvency, or the 
 withdrawal of a member, or by the mutual agreement of the partners. 
 
 12. Usually when a partner withdraws from a firm of three or more 
 members, the remaining members form a new partnership. 
 
 13. If a partner withdraws, the fact should be published, and notice sent 
 to all interested persons, in order to relieve him of liability for subsequent acts 
 of the firm; otherwise, he may find himself some day in a rather embarrassing 
 situation. 
 
 14. In fact, any change in a partnership should at once be published and 
 notice sent to all interested persons. 
 
 15. Upon the death of a partner, the other members of the firm have the 
 sole right, in the absence of agreement to the contrary or otherwise, to wind up 
 the business. 
 
 16. In the absence of any prior agreement to the contrary the heirs of a 
 deceased partner cannot enter the firm and manage this interest without the 
 consent of the surviving partners. 
 
 17. A partner cannot dispose of his interest in the partnership by will. 
 He can, however, dispose of the proceeds of his interest after the affairs of the 
 partnership have been settled. 
 
180 OFFICE TRAINING AND STANDARDS 
 
 18. A corporation is an artificial arrangement created by law, under which 
 three or more persons may associate themselves together to carry on a business. 
 
 19. A corporation receives a charter from the state, granting certain 
 powers to the corporation. 
 
 20. No corporation can exceed the powers granted in its charter. 
 
 21. The by-laws of a corporation arc the rules and regulations by which 
 the corporation conducts its business. 
 
 22. The important feature of a corporation is the fact that, except under 
 special circumstances, the stockholders are not liable for the debts of the 
 corporation. 
 
 23. The stockholder of a bank is ordinarily liable for twice the amount of 
 his stock. 
 
 24. That is, if he owns 10 shares of a par value of $100, he is liable not 
 only for the par value of his stock, $1,000, but also for an additional $1,000, 
 or $2,000 in all. 
 
 25. This does not mean that if he paid $1,000 for his stock, he will have 
 to pay $2,000 in case the bank fails. It simply means that he may lose the 
 $1,000 already paid in, and is liable for an additional $1,000. 
 
 26. A stockholder in any other corporation who owns stock that is not 
 "full paid " is liable only for the par value of his stock less the amount " paid in." 
 
 27. "Full paid" stock is stock which has been issued and paid for at its 
 full par value. 
 
 28. The par value of a stock is its face value — the amount printed on the 
 face of the stock certificate. 
 
 29. The par value of a stock has nothing to do with its actual value. 
 
 30. A stock may have a par value of $100 and be worth only $23. 
 
 31. The capital stock of a corporation is divided into shares. 
 
 32. The stockholder of a corporation has one vote for each share of stock 
 he owns, unless he owns non-voting stock. 
 
 33. Certificates of stock are negotiable, and a stockholder may sell any 
 or all of his stock to anyone who is willing to buy it. 
 
 34. A corporation is managed through a board of directors, who may be 
 elected by the stockholders at the annual meeting. 
 
 35. The directors may authorize one of their number, usually the president, 
 to act for them, and to manage the business of the corporation subject to their 
 approval. 
 
 36. A stockholder, therefore, has absolutely nothing to do with the 
 business of the corporation unless he is an officer, or a member of a board of 
 directors, or owns the controlling vote, or is employed by the corporation. He 
 has no power or authority whatever, except a vote at the annual meeting. 
 
 37. The business of a corporation can continue regardless of the death of 
 any stockholder. 
 
 38. In addition to the capital stock some corporations issue bonds, which 
 are notes under seal, and are usually secured by mortgages. 
 
 39. A bondholder is therefore a creditor of the corporation, since the 
 corporation owes him moncv- 
 
THE TREASURER'S OFFICE 181 
 
 40. The stockholder is an owner in the corporation, cince he owns shares 
 of the capital stock. 
 
 41. The bondholder does not have any vote. 
 
 42. The difference between bonds and stock is that bonds are an obligation 
 of the corporation and must be paid at maturity, while shares of stock are 
 simply evidences of ownership. 
 
 43. When the bonds mature, if they are not paid, the bondholders can 
 foreclose on the security, just as the holder of a mortgage can foreclose if the 
 interest is not paid. 
 
 44. The only way a stockholder can get his money back is by selhng his 
 
 stock. 
 
 45. Another difference between bonds and stock is that the mterest on 
 bonds must be paid, while dividends on stock are not paid unless they are 
 earned, and not then unless the directors declare the dividends. 
 
 46. If the interest is not paid, the bondholders can foreclose. 
 
 47. Evidently then, bonds, to be worth anything, must have some security 
 back of them. 
 
 48. The security back of the bonds may be the property of the company, 
 or the income of the company, or simply the promise of the company. 
 
 49. Bonds secured by property are called mortgage bonds; those secured 
 by income are called income bonds; those secured by promises are called 
 debenture bonds or sometimes simply notes. 
 
 50. The interest on bonds must be paid before the dividends on stock are 
 declared. , 
 
 51. Sometimes a corporation issues two or more kinds of stock. One 
 kind is called preferred stock; the other, common stock. 
 
 52. Preferred stock is usually preferred both as to assets and dividends; 
 that is, dividends must be paid on the preferred stock before anything is paid 
 on the common stock. 
 
 53. If a corporation winds up its business and dissolves, the bondholders 
 get paid first, then the general creditors, then the preferred stockholders, and 
 the common stock gets what is left. 
 
 54. Very often the common stock carries voting power, and the preferred 
 
 doesn't. . . 
 
 55. If a stockholder loses his certificate he can get a duplicate by promismg 
 to make good any loss caused by the lost stock showing up. 
 
 56. If the stock turns up in the hands of an innocent holder, the corporation 
 would probably be compelled to recognize it. 
 
 57. In some states the corporation laws are not so rigid as in others. They 
 allow corporations greater powers at less cost and with less supervision. Al- 
 though it is easier to incorporate in these states, there is greater opportunity 
 for fraud. 
 
 58. A corporation can do business in any state, regardless of the state in 
 which it is incorporated. It is, of course, subject to the laws of the statein 
 which it does business, and must also comply with the laws of the state in which 
 it is incorporated. 
 
182 OFFICE TRAINING AND STANDARDS 
 
 FINANCIAL STANDARDS 
 
 Insurance 
 
 1. You can insure against death, fire, theft, accident, ill health, burglary, 
 tornado, loss of business, law suits, and almost anything that is liable to affect 
 you or your family, j^our business, or your property. 
 
 2. To take out insurance on anything you must make application to 
 the insurance company, giving whatever information is required. 
 
 3. If the insurance company accepts your application, it will issue a 
 policy to you for the amount of the insurance. 
 
 4. An insurance policy is a contract between you and the insurance 
 company. You agree to pay the premiums, and the company agrees to pay 
 you the insurance in case of loss. 
 
 5. An insurance premium is what you pay to the insurance company 
 for the insurance. Premiums are paid regularly, usually once a year. 
 
 6. The amount for which the company insures you or your property is 
 called "the face of the policy." 
 
 7. The amount of the premium depends largely on the nature and 
 extent of the risk. 
 
 8. Some "risks" cannot be insured at all. 
 
 9. The cost of life insurance is comparatively high, since if you die you 
 are a total loss to the insurance company. 
 
 10. Fire insurance, on the other hand, is comparatively inexpensive, 
 since the loss may be very slight, and the insurance company pays only for 
 the actual damage. 
 
 11. You may insure j'our life or the life of someone else, provided the 
 insurance company is satisfied that your interest in the other person is sincere. 
 
 12. You cannot insure the life of anyone in whom you have no interest. 
 
 13. A creditor, however, can have the life insured of a man who owes 
 him money. 
 
 14. Ordinarily you may have your life or property insured in favor of 
 anyone you choose. 
 
 15. In case of death by suicide the company will pay the insurance if the 
 policy has been in force for a certain time, usually one or two years. 
 
 16. The insurance company will not, however, pay insurance for the 
 death of a person killed while committing a crime or as punishment for a crime. 
 
 17. If the insured enters the naval or military service, in time of war, the 
 company will adjust the premium. 
 
 18. Untrue statements in the application for insurance may render the 
 policy void, depending on their nature and the company's rules. 
 
 19. If the wrong age is stated, the insurance is not usually affected, except 
 that the company will probably require some adjustment in the premiums. 
 
 20. The premium for a fire insurance policy would be higher for a wooden 
 building than for a brick one. 
 
 21. A brick building beside a railroad track might cost more to insure 
 than the same building near a lake. 
 
 22. Some locations are so dangerous that the buildings cannot be insured. 
 
THE TREASURER'S OFFICE 183 
 
 23. The owner of a powder mill would probably have difficulty in getting 
 insurance on his building. He might also find it difficult to get his own life 
 insured. 
 
 24. Insurance rates in the city are lower than in the country because the 
 fire protection is better. 
 
 25. The more fireproof the building the lower the rate of insurance. 
 
 26. The higher the building the greater the risk and the higher the rate. 
 
 27. The business handling explosives or combustibles must pay a higher 
 rate. 
 
 28. If you do not comply with the insurance rules, you may find that you 
 cannot collect the insurance. 
 
 29. If alterations are made in the building the company should be notified. 
 
 30. In case the surrounding buildings are changed the company should 
 be notified. 
 
 31. In case a new member is admitted to a partnership the policies should 
 be changed accordingly. 
 
 32. If the property is sold the company should be asked to transfer the 
 insurance. 
 
 33. Two or more persons can get insurance on the same property if they 
 have an insurable interest. 
 
 34. The company always reserves the right to replace the lost property 
 instead of paying the face of the policy. 
 
 35. The insurance is usually void if the property is vacated without 
 permission from the insurance company. 
 
 36. Statistics are said to show that the farmer is more liable to accident 
 than is the traveling man. 
 
 37. The employee in a machine shop is more liable to accident than the 
 office worker. 
 
 38. Pianists insure their fingers against injury. 
 
 39. Vocalists insure their voices against injury. 
 
 40. Farmers insure their crops against hail. 
 
 41. Merchants should insure their business against bad debts. 
 
 42. Autoists insure their cars against theft, fire, collision, and property 
 
 43. Cashiers insure their employers against dishonesty. 
 
 44. Fruit growers insure crops against frost. 
 
 45. Factories insure against accidents to their employees. 
 
 46. Business men insure against business depression. 
 
 47. Compulsory insurance against sickness, accident, and old age is now 
 enforced in many states. 
 
 48. Always read your insurance policies carefully. If they contain any- 
 thing you don't understand, ask the company to explain. 
 
 49. Do not take anything for granted. Make sure that everything is as 
 it should be. 
 
 50. Insurance policies should be kept in a safe place where they cannot 
 be lost, stolen, or destroyed. 
 
184 OFFICE TRAINING AND STANDARDS 
 
 STANDARD QUESTIONS 
 
 The work of the treasurer's office 
 
 1 . Why does a business concern have to have a treasurer? 
 
 2. What are the four principal duties of the treasurer? 
 
 3. What is the most important duty of the treasurer in your opinion? 
 Why? 
 
 4. Name the treasurers of three different concerns and tell what each 
 one does, as far as you know. 
 
 5. What is meant by the word "funds"? 
 
 6. Are express money orders funds? Why or why not? 
 
 7. What is currency? 
 
 8. Are express money orders currency? Why or why not? 
 
 9. Does every treasurer look after every bit of the work of his office? 
 If not, who does? 
 
 10. In concerns where the treasurer delegates his work to others, how does 
 he "keep in touch" with the way things are going? 
 
 11. How do most firms pay their bills? Why? 
 
 12. Who signs the company's checks? Why? 
 
 13. How does the treasurer watch collections? 
 
 14. What is meant by the term "surplus funds"? 
 
 15. What does the treasurer have to do with the surplus funds? 
 
 STANDARD QUESTIONS 
 
 Elementary principles of finance 
 
 1. Is it ever a good plan for a prosperous business to borrow money? 
 
 2. Is it ever a good plan for an individual to spend more than his income 
 and borrow money to meet the deficit? 
 
 3. What is the commonest form of business paper which is used as 
 evidence of a loan or of a payment due in the future? 
 
 4. How does the government borrow money? 
 
 5. How does the individual borrow money? 
 
 6. Does the government always pay interest on its notes? 
 
 7. Does an individual always pay interest on his notes? 
 
 8. Does a bank ahvaj's pay interest on its notes? 
 
 9. What is the danger of lending money on a verbal promise to pay? 
 
 10. Why are notes of individuals or corporations sometimes held in 
 preference to cash? 
 
 11. If you were borrowing money on February 15, would you prefer to 
 have the note read payable in 30 days or 1 month? Why? 
 
 12. As a rule, which will allow the longer time for payment, notes due 
 in GO days or in 2 months? Why? 
 
 13. When is a note payable if it falls due on Sunday? 
 
 14. Is a note legal if it is dated on Sunday? 
 
 15. Is an unpaid note as good after maturity as before? 
 
 16. A steals a note from B and sells it to C. Does C have a good title? 
 
THE TREASURER'S OFFICE 185 
 
 17. A note is drawn payable to H. A. Bliss. How can Mr. Bliss transfer 
 it without becoming liable for its payment? 
 
 18. How should a negotiable note be worded? 
 
 19. How should a non-negotiable note be worded? 
 
 20. How should a time note be worded? 
 
 21. How should a joint note be worded? 
 
 22. How should a demand note be worded? 
 
 23. How should a non-interest-bearing note be worded? 
 
 24. How should a compound interest-bearing note be worded? 
 
 25. When does a non-interest-bearing note draw interest? 
 
 26. Why should the time and place of payment be stated in the note? 
 
 27. Suppose value was not received by the maker; is the note legal? 
 
 28. In a joint note, how may either signer be made liable for the entire 
 amount? 
 
 29. How may cash be obtained on a note before it is due? 
 
 30. How is the date of maturity computed? 
 
 31. How is the note indorsed in blank? 
 
 32. How is the note indorsed in full? 
 
 33. How is a restricted indorsement made? 
 
 34. How are partial payment indorsements made? 
 
 35. How does the maker of a note sign his name when he cannot write? 
 
 36. What is the usual legal rate of interest? 
 
 37. What is the penalty for usury? 
 
 38. What is meant by call loans? 
 
 39. What is a collateral loan? 
 
 40. How many signers are required on the note for a collateral loan? Why? 
 
 41. How is capital for new ventures usually provided? Why? 
 
 42. What is a bond? 
 
 43. What is a mortgage? 
 
 44. What is a time loan? 
 
 45. How soon must time loans be paid? call loans? demand loans? 
 collateral loans? 
 
 46. When are indorsers of notes Hable? 
 
 47. When is a note outlawed? 
 
 48. Are bank loans ever made for permanent purposes? If so, for what 
 purposes? If not, why not? 
 
 49. Who is the maker of a note? the indorser? the payee? 
 
 50. How long do bank loans usually run? 
 
 STANDARD QUESTIONS 
 
 The uses of checks 
 
 1. What proportion of business is transacted withchecks? 
 
 2. What are some of the commercial advantages in the use of checks? 
 
 3. How would you open a checking account at a bank? 
 
 4. What does it mean when your account is overdrawn? 
 
186 OFFICE TRAINING AND STANDARDS 
 
 5. Should checks ever be written with a pencil? 
 
 6. Must checks be written on the blank forms furnished by the banks? 
 
 7. As a matter of convenience to your customers, could you draw a check 
 on the bank where he does business? 
 
 8. Why are checks usually printed on colored paper? 
 
 9. Why should an exact account of the checks issued be kept on the 
 stubs of the check book? 
 
 10. Wliy should the canceled checks be saved when returned? 
 
 11. What devices are used to prevent the raising of checks? 
 
 12. In writing a check what cautions are necessary to prevent fraud? 
 
 13. How would you write a check for eighty-five cents? 
 
 14. How would you write a check if you wanted to draw money for your 
 own account? 
 
 15. Is a check good if dated on Sunday? 
 
 16. Will the bank pay a check if it is dated a month ahead? 
 
 17. Is a check good if the date is omitted? 
 
 18. Can you cash a check after the maker has died? 
 
 19. Is it criminal to draw a check on a bank where you have no money 
 on deposit? 
 
 20. What is the difference between a personal check and a certified check? 
 
 21. What is the difference between a cashier's check and a bank check? 
 
 22. How can the payment of a check be stopped? 
 
 23. You are sending a check through the mail to John Smith, Chicago. 
 How will you prevent the check from falling into the hands of the wrong Smith? 
 
 24. How can you cash a check at a bank in a city where you are an entire 
 stranger? 
 
 25. How can you cash a check at a bank where you are a stranger, if you 
 have a friend who is acquainted at the bank but who cannot go with you to 
 the bank for the purpose of identifying you? 
 
 26. If a forger raised a check which you have written and succeeds in 
 getting it cashed, who would be the loser? 
 
 27. If your signature were forged and the check cashed by your bank, 
 who would be the loser? 
 
 28. Where must indorsements be made on a check? 
 
 29. How are indorsements made in blank? In full? 
 
 30. How would you make a qualified indorsement on a check? 
 
 31. How would you endorse a check which you wish to deposit in a bank 
 to the credit of another man? 
 
 32. If a check is indorsed in blank, how can you legally make it payable 
 to the order of Henry Smith? 
 
 33. Why should you never indorse a check in blank unless you are going 
 to cash it at once? 
 
 34. What are the advantages and disadvantages in the payment of 
 accounts with checks? 
 
 35. Would it be safe to sign a check before the amount or the name of the 
 payee is filled in? If so, when? If not, why not? 
 
THE TREASURER'S OFFICE 187 
 
 STANDARD QUESTIONS 
 
 Partnerships and corporations 
 
 1. What is the difference between a partnership and a corporation? 
 
 2. Can you tell a partnership from a corporation by the name? 
 
 3. What is the most advisable step to take in entering into a partnership? 
 Why? 
 
 4. What is a partnership agreement, and what does it contain? 
 
 5. Who should draw up the partnership agreement? 
 
 6. Under what conditions is each partner individually responsible for 
 the debts of the partnership? 
 
 7. Is a contract made by any partner binding on the others? 
 
 8. Why is it wise to be extremely careful in choosing partners? 
 
 9. When may a partner withdraw from a partnership? 
 
 10. How much liability attaches to a retired partner? 
 
 11. In what four ways may a partnership be dissolved? 
 
 12. What steps should be taken by a retiring partner to relieve himself 
 of further responsibility? 
 
 13. What is the object of publishing changes in partnerships? 
 
 14. If a partner dies, what becomes of the business? 
 
 15. What rights in the partnership, if any, have the heirs of a deceased 
 partner? 
 
 16. Can a partner sell his interest in a partnership or dispose of it by will? 
 
 17. What is a corporation? 
 
 18. How many persons does it take to form a corporation? 
 
 19. What is a corporation charter? 
 
 20. What are by-laws? 
 
 21. Are the stockholders of a corporation liable for the debts of the 
 corporation? 
 
 22. What is the liability of a man who owns stock in a bank? 
 
 23. What do you mean by "full-paid" stock? 
 
 24. What is meant by the "par value" of stock? 
 
 25. How is the capital stock of a corporation divided? 
 
 26. Can a stockholder vote? 
 
 27. Can you sell stock certificates? 
 
 28. How is a corporation managed? 
 
 29. How much has a stockholder to say about the business? 
 
 30. What becomes of a corporation if one of the stockholders dies? 
 
 31. Does the sale of stock to pay a stockholder's debts affect the standing 
 of the corporation? Why or why not? 
 
 32. What is the difference between a bondholder and a stockholder? 
 
 33. To what extent are bondholders liable for the debts of a corporation? 
 
 34. Does a bondholder have a vote? 
 
 35. Which would you rather be, a bondholder or a stockholder? Why? 
 
 36. Suppose the corporation does not pay its bonds when they mature. 
 What may happen? 
 
 37. How does a bondholder get his money back? 
 
168 OFFICE TRAINING AND STANDARDS 
 
 38. How can a stockholder get his money back? 
 
 39. What may happen if the corporation does not pay the interest on 
 its bonds? 
 
 40. Why should bonds have some security back of them? 
 
 41. What three kinds of security may bonds have back of them? 
 
 42. What are the three kind of bonds called? 
 
 43. How many kinds of capital stock are there? 
 
 44. What is preferred stock? 
 
 45. If a corporation dissolves, what becomes of the assets? 
 
 46. If you own stock in a corporation and lose your stock certificate, 
 can you get another? 
 
 47. Are the corporation laws the same in every state? 
 
 48. If not, what is the nature of the differences? 
 
 49. Is a corporation obliged to do business in the same state in which it 
 is incorporated? 
 
 50. Why are corporations which belong in one state often organized under 
 the laws of another state? 
 
 STANDARD QUESTIONS 
 
 Insurance 
 
 1. What are some of the things that can be insured? 
 
 2. In what respects is an insurance policy a contract? 
 
 3. What is the face of a policy? 
 
 4. What is the premium? 
 
 5. Is the cost of life insurance low comparatively or high? Why? 
 
 6. What determines the amount of the premium on a life insurance 
 policy? 
 
 7. Is it better to insure at an early age or wait till you are older? 
 
 8. Will the insurance company pay the insurance if the insured person 
 commits suicide? 
 
 9. If the insured is killed in war, can the policy be collected? 
 
 10. Can the policy be collected if the insured person is killed while com- 
 mitting a crime? 
 
 11. What effect will there be on the policy if the insured reports his age 
 incorrectly? 
 
 12. Can you insure the life of anybody beside yourself? If not, why? 
 If so, under what conditions? 
 
 13. How is it possible for insurance companies to pay large amounts 
 when they receive small premiums? 
 
 14. Is fire insurance expensive or inexpensive? Why? 
 
 15. Are insurance rates lower in the city or in the country? Why? 
 
 16. Would you pay a higher premium on a frame building or on a cement 
 or brick one? Why? 
 
 17. Is a four-story brick building a greater risk than a one-story building? 
 On which would the premium be higher? 
 
THE TREASURER'S OFFICE 189 
 
 18. Are there any buildings, do you suppose, which cannot be insured at 
 all? If so, why? 
 
 19. What ought you to do if you make alterations on property that is 
 insured? If you neglect this, what may the consequences be? 
 
 20. What effect does it have on the policy if the property is sold? altered? 
 vacated? 
 
 21. Can more than one person insure the same property? 
 
 22. In case of entire loss, does the company always pay the face of the 
 policy? 
 
 23. What are eight different kinds of accidents against which you can 
 insure yourself? 
 
 24. Is it safe to keep your insurance policies in your desk at home? Why 
 or why not? 
 
 25. Can you think of a better place? 
 
 STANDARD QUESTIONS 
 
 Some questions the treasurer has to answer 
 
 1. What is the financial center of the world? 
 
 2. What is the financial center of the United States? 
 
 3. What is the largest bank in the world? 
 
 4. What is the largest bank in the United States? 
 
 5. Are banks a necessity to modern business? Why? 
 
 6. How are national banks different from state banks? 
 
 7. How are private banks different from trust companies? 
 
 8. How are postal savings banks different from savings banks? 
 
 9. What is the clearing house and what part does it play in business? 
 
 10. Why are heavy fines imposed in the clearing house for tardiness and 
 inaccuracy? 
 
 11. What are safe-deposit vaults? 
 
 12. What is the difference between bank drafts and checks? 
 
 13. How do checks differ from sight drafts? 
 
 14. How do sight drafts differ from time drafts? 
 
 15. Are bank drafts money? 
 
 16. Are bank drafts legal tender? 
 
 17. Are national bank notes currency? 
 
 18. Do national bank notes draw interest? 
 
 19. Are national bank notes good if the bank fails? 
 
 20. What gives security to national bank notes? 
 
 21. In buying a bank draft, to whose order would you have it made 
 payable? 
 
 22. Are bank drafts safer than personal checks? 
 
 23. What is a bill of exchange? 
 
 24. What is a letter of credit? 
 
 25. What is a travelers' check? . 
 
 26. What is meant by negotiable paper? 
 
190 OFFICE TRAINING AND STANDARDS 
 
 27. What is meant by collateral? 
 
 28. What is meant by bank discount? 
 
 29. What gives paper money value? 
 
 30. Wliy are coins more desired in time of war than paper money? 
 
 STANDARD EXERCISES 
 
 Business puzzles involving checks 
 
 1. A, with a checking account of $1,500, gave to B a signed check in 
 which the amount was left blank, with the understanding that B was to pur- 
 chase between $300 and $400 worth of goods and insert in the check the amount 
 of the purchase. B purchased $1,000 worth of goods from C and filled in that 
 amount. In case A could not prove the restrictions placed on B, how much 
 would he lose? 
 
 2. Mr. Hay gave his check for $200 payable to the order of Mr. Crawford. 
 The check was indorsed in blank by Mr. Crawford but was lost before it could 
 be deposited in the bank. It was found by a thief, who cashed it before the 
 payment could be stopped. Who was the loser and how much? 
 
 3. The First National Bank refused payment for want of funds of a 
 check for $200 drawn on it by Mr. Roe in favor of Mr. Drake. Mr. Drake 
 did not present the check for payment until nearly two months after it was 
 drawn and did not give the drawee the notice of dishonor until about two weeks 
 after that. From whom can Mr. Drake collect? Why? 
 
 4. Mr. Baley owed Mr. Avery $25 and gave him a check. When Mr. 
 Avery presented the check at the bank, he noticed that although the written 
 amount was correct the figures stated only 25 cents. How much could Mr. 
 Avery get on the check? 
 
 5. A farmer signed a check for $200 on the City National Bank, where he 
 had a checking account for $1,000. The bank cashed the check, not knowing 
 that the farmer had been defrauded by a windmill agent who told him that he 
 was signing a duplicate contract for a windmill at $100. How much did the 
 farmer lose? Why? 
 
 6. Through fraud, Mr, Day secured a check for $500 from Mr. Lord. 
 Mr. Day indorsed the check in full to Mr. Hunter, a holder in due course. 
 The bank paid the check. Who was the loser and why? 
 
 7. Mr. Bates, who has a checking account of about $12,000 writes 
 check for $600 payable to the order of Mr. Woolson, who lives in the same town. 
 Two days later, while the check was still in the possession of Mr. Bates, the 
 bank failed and paid 25 cents on the dollar. How much can Mr. Bates collect 
 from Mr. Gates and how much can he collect from the bank? 
 
 8. Mr. Green wrote a check for $9, which was easily raised to $99 by 
 a forger. It finally appeared in the possession of Mr. White, who was an 
 innocent purchaser for value, and was cashed by him at the bank. How much 
 would Mr. Green lose? Why? 
 
 9. A forger signed George P. Brown's name so perfectly to a check for 
 $150 that it was accepted in the usual course of business by Mr. Black and 
 
THE TREASURER'S OFFICE 191 
 
 finally cashed by him at the bank. Who was the loser and how much was the 
 loss? Why? 
 
 10. Mr. Swan was accustomed to paying his rent by check on the first 
 of each month, receiving a regular rent receipt. On the first of May the land- 
 lord presented a bill for two months' rent, claiming Mr. Swan had never paid 
 the rent for April. Since Mr. Swan can't find his rent receipt for April, he will 
 have to pay the rent again unless he can prove he did pay it. How can he do 
 this? 
 
 STANDARD EXERCISES 
 
 Partnership and corporations 
 
 1. Mr. Fry owned $50,000, Mr. Gee $25,000, and Mr. Hay $1,000 
 interests in a partnership business worth $70,000. The firm failed and all of 
 the partners were bankrupt except Mr. Hay. If the debts were $38,000, how 
 much would Mr. Hay be compelled to pay? 
 
 2. Mr. Barr and Mr. Baird were partners when Mr. Barr decided to 
 withdraw from the firm. Mr. Baird agreed to assume the firm indebtedness 
 of $3,000 and pay Mr. Barr $10,000 for his share in business. Before any of 
 these debts were paid, Mr, Baird failed, paying off only 10 cents on the dollar 
 How much would Mr. Barr lose through the failure? 
 
 3. When Mr. King bought an interest in the partnership business of 
 Lloyd and May the firm owed $1,000 which Mr. King did not agree to assume. 
 Subsequently Mr. Lloyd gave a note in the name of the new firm to one of the 
 creditors for $300. Is Mr. King liable for his share of this note? 
 
 4. Mr. Blue of the real estate of Blue, Brown and Company bought for 
 the firm a $10,000 property, without the consent of his partners. It proved to 
 be a bad investment and was sold for $7,000. How much would Mr. Blue 
 lose in case the three partners owned equal interests? 
 
 5. Mr. Brown and Mr. Babb agreed to buy 4,500 bushels of wheat and 
 divide it according to the amount each invested. Mr. Brown furnished $3,000 
 and Mr. Babb $1,500. Mr. Brown sold his share at a profit of 10 cents a 
 bushel and Mr. Babb sold at a loss of 10 cents a bushel. Is this a partnership? 
 How much did each gain or lose? 
 
 6. Mr. Carr and Mr. Crow agreed to buy and sell 10,000 bushels of wheat, 
 dividing the profits or losses according to the amount each invested. Mr. 
 Carr invested $3,000 and Mr. Crow $9,000. Mr. Carr sold 4,000 bushels at a 
 loss of 10%. Mr. Crow sold 6,000 bushels at a gain of 10%. How much did 
 each gain or lose? Is this a partnership? 
 
 7. Mr. Coin invested $10,000 in the stock of a national bank which failed, 
 paying 10 cents on the dollar. How much did Mr. Coin lose? 
 
 8. Mr. Dunn invested $10,000 in a joint stock company, limited. The 
 firm failed, paying 10 cents on the dollar. How much of his investment did 
 Mr. Dunn lose? 
 
 9. When a mining corporation was organized Mr. Elm purchased 100 
 shares of stock for $1,000 (par value $100). The company failed, owing large 
 sums of money. How much must Mr. Elm pay? 
 
192 OFFICE TRAINING AND STANDARDS 
 
 10. Mr. Fee purchased $1,000 worth of stock, at par, in a newly organized 
 corporation, stock non-assessable and fully paid. The company failed, owing 
 $100,000. How much does Mr. Fee lose? Why? 
 
 STANDARD EXERCISES 
 
 Insurance 
 
 1. Mr. Dale insured for §5,000 a property worth $4,000. In case of total 
 loss, how much can Mr. Dale collect? 
 
 2. Under the 80% clause, Mr. Earl insured for $4,000 his house valued 
 at $5,000. How much can he collect in case of a total loss? 
 
 3. Mr. Fry insured property worth $6,000 for $4,000 under the average 
 clause. It was damaged by fire to the extent of $120. How much w-ill the com- 
 pany pay? 
 
 4. Mr. Gee lent Mr. Maxwell $2,000 and took a mortgage for that 
 amount on his property valued at $5,000. As an additional security Gee 
 insured the property for $4,000. It was totally destroyed by fire. How much 
 can Mr. Gee collect from the company? 
 
 5. Mr. Hoy insured for $5,000 a stock of goods which invoiced at $6,000, 
 On October 15 Hoy moved $500 worth of goods to an adjacent building. On 
 October 17 a fire completely destroyed both buildings. How much can Mr. 
 Hoy collect? 
 
 6. Mr. White purchased of Mr. Brown for $6,000 a property which was 
 insured for $5,000. Mr. WTiite, knowing that the place was insured, paid no 
 further attention to it. The property was destroyed by fire. For how much 
 is the company liable, either to WTiite or Mr. Brown? 
 
 7. Mr. Deo insured a dwelling house for $4,000, and at the time he made 
 out the application he stated that there was no other building within 100 feet 
 of this property. Subsequently he erected a frame restaurant building within 
 20 feet of his house. The residence was destroyed by fire but through no 
 fault of the restaurant. How much would the company pay Deo? 
 
 8. Mr. New insured a stock of dry goods for $8,000. Subsequently he 
 removed the stock into a building which was much better protected from fire. 
 How much can he collect in case of total loss by fire? 
 
 9. Mr. Ray holds a mortgage on Mr. Thompson's property for $2,000. 
 He also takes out a fire insurance policy of $2,000 in his name and pays the 
 premium. The house is valued at $4,000. If the house burns before the 
 mortgage is paid, how much can Mr. Ray collect? Why? 
 
 10. In case Mr. Thompson pays the mortgage before the fire, how much 
 can Ray collect? 
 
 11. In case Mr. Thompson insured his house for full value, how much 
 would the company pay him? Why? 
 
 12. In case Mr. Thompson took out a $2,000 policy in favor of Mr. Ray, 
 how much could Mr. Ray collect? Why? 
 
 13. In case Mr. Ray takes out a life insurance policy on Mr. Thompson 
 for $2,000 and continues to pay the premiums until Mr. Thompson dies, although 
 
THE TREASURER'S OFFICE 193 
 
 the mortgage has been paid, how much can Mr. Ray collect from the insurance 
 company on the policy? 
 
 14. Mr. Coe insured the life of his neighbor Mr. Matthews for S5,000, 
 making himself the beneficiary, because Matthews did not have the money at 
 the time to pay the premium. Coe continued to pay the premiums until the 
 death of Matthews How much can he collect? 
 
 15. When INIr. White made his will he gave his daughter all of a $5,000 
 life insurance policy which he had taken out payable to his son. How much 
 can the daughter collect? 
 
 16. Mr. Pry, in taking out a life insurance policy for $5,000, gave his age 
 as 25 when he was 30. How much will the company pay the estate in case 
 Pry pays the premiums until his death? 
 
 17. Mr. Edwards insured his life for $20,000 and three years later shot 
 himself. How much could his estate collect? Suppose he had shot himself 
 
 n three days? Suppose he was shot while committing a burglary? Suppose 
 he was shot as a spy? 
 
 18. In making out his application for a life insurance policy of $5,000 
 Mr. Black failed to state that tuberculosis was the cause of his mother's death. 
 He passed a good examination but afterward died of consumption. How much 
 will the company pay his estate? 
 
 19. Mrs. True was injured in a railroad accident. As the injury seemed 
 very slight at the time, she settled for $50. Later she was out of work for three 
 months at an expense of $3,000 as a direct result of the injury. How much 
 can she collect from the company? 
 
 20. Mr. Smith shipped by boat $4,000 worth of heavy iron castings. 
 During a storm it became necessary to jettison the iron goods in order to save 
 the boat and the balance of the cargo. If the boat and cargo were worth 
 $400,000, how much would Mr. Smith lose? 
 
 STANDARD EXERCISES 
 
 Some additional problems the treasurer has to solve 
 
 1. Mr. Clark needed $1,000 with which to start a business. He could 
 not borrow on his own credit, so he induced his uncle, Mr. Wadsworth, to 
 give him an accommodation note for $1,000 due in one year at 6% interest, 
 payable to Mr. Clark's order. This note he discounted at the end of one 
 month at the City National Bank. How much did Clark receive from the 
 bank. From whom would the bank collect and how much? 
 
 2. Mr.Amesgave a promissory note to Mr. Dennison for $600 payable in 
 3 months at 6%. One month after date the note was paid by Ames and was 
 not returned. Finally Mr. Dennison lost the note and it appeared in the 
 hands of Butler, an innocent purchaser for value. How could Butler collect 
 from Ames and for how much? 
 
 3. Brown and Black signed a joint note for $1,000 payable in one year, 
 at 5% interest. The note read: "We promise to pay." In case Brown fails, 
 how much will Black be compelled to pay? 
 
194 OFFICE TRAINING AND STANDARDS 
 
 4. Mr. John Francis, who was 20 years old, gave a promissory note for 
 $200 due in 90 days at 6% to Mr. Brown, value received. How much can 
 Brown collect if Francis refuses payment? 
 
 5. On July 15 Mr. WTiite borrowed $200 from Mr. Black in the presence 
 of Mr. Green as a witness, agreeing to pay on September 15 with interest at 6%. 
 On August 15 WTiite and Green were both killed in a railroad accident. How 
 much can Black recover from White's estate? 
 
 6. Mr.,Barr gave his note to Mr. Lord on January 2, 1910, for $200 
 payable on demand at 6% interest. Barr paid the interest at the close of the 
 first and second years, but nothing was paid on the principal. Lord brought 
 suit at the end of the fifth year for collection. Barr refused payment, stating 
 that the note was outlawed, as the statute of limitation was five years in his 
 state. How much could Lord collect? 
 
 7. On March 4 Mr. Ames obtained through fraud from Mr. Bates a 
 negotiable note for $400 due in four months at 6%. Ames immediately dis- 
 counted the note at a bank at 5%. Bates refuses payment on account of fraud. 
 How much can the bank collect from Bates? How much did the bank pay 
 Ames? 
 
 8. Mr. Brown becomes a bona fide holder for value of a promissory note 
 of $500 payable in five months at 5%. The note was given by Mr. Thomas to 
 Mr Clark without consideration. Mr. Thomas refused payment claiming 
 that there was no consideration. How much could Mr. Brown collect from 
 Mr. Thomas? 
 
 9. The Crown Piano Company, with a capital of $1,000,000 (shares 
 $100 each), declares a dividend of $125,000. How much would a stockholder 
 owning 120 shares receive? 
 
 10. An assessment to meet a loss of $25,000 is levied by a company with a 
 capital of $500,000. How much will Mr. Pool, who owns 500 shares of par 
 value $100, be required to pay? 
 
 11. Mr. Cool can buy some stock paying 5% dividends at 120 and some 
 others paying 6% at 150. WTiich is the better investment? 
 
 12. Mr. Holt wishes to invest enough money in 5% bonds at par to insure 
 his daughter an income of $200 a month. How many $1,000 bonds should 
 he purchase? 
 
 13. The partnership firm of White and Black reorganized as a corporation 
 with a capital of $50,000 in shares of $50 each. White's share in the old firm 
 was $12,500 and Black's $18,000. How many shares should each receive and 
 how much stock would remain in the treasury? 
 
 14. Mr. Ray purchased 800 shares of C. & N. W. Ry. stock at a price 
 which would net him 5% on his investment. If the stock pays a semiannual 
 dividend of 3%, how much did the stock cost him and how much income does 
 he receive each year? 
 
 15. Mr. Bain has $5,500 to invest in bonds or mortgages. He can pur- 
 chase a 4% mortgage at par, or 6% bonds at 125. If the security is the same 
 in both cases, which should he buy? Why? What is the difference in the 
 income? 
 
CHAPTER XIII 
 
 THE MANAGER'S JOB 
 
 SOME office workers have an idea that the manager has 
 an easy job. He may come down to the office at nine 
 o'clock or so, read his morning paper, dictate a few letters, 
 talk to callers, walk around the office once or twice, take two 
 hours for lunch, and then go home, sometimes at four or half- 
 past four o'clock. 
 
 The employee who works steadily from eight until half-past 
 five notices all this and, unless he has done some accurate think- 
 ing, he may really beheve that he is working harder than his 
 employer. To be sure, he may be actually doing more physical 
 work than the manager, but if the manager did very much 
 physical work, he wouldn't have enough time to do the work he 
 is paid to do. 
 
 When the "boss" sits at his desk apparently idle, he is not 
 really day-dreaming. On the contrary, his brain is probably 
 working busily, considering one or another of the many problems 
 connected with the office. There are more of these problems 
 than the average worker in the office realizes. 
 
 Working with your brains. There's a very interesting 
 story told about a stockholder in the Standard Oil Company 
 whose office was situated directly opposite the company's 
 office. This stockholder was much perturbed to see one of the 
 department managers of the oil company, who was drawing a 
 fairly large salary, stand with his hands in his pockets, gazing 
 out of his window into the street for the greater part of his 
 time, day after day. It seemed to the stockholder that there 
 was something wrong: this highly paid man was loafing on the 
 job, and the stockholder finally decided to tell the president of 
 the company about it. He did tell him. Somehow or other 
 the president didn't get excited at all. He merely smiled. 
 
 195 
 
196 OFFICE TRAINING AND STANDARDS 
 
 "Mr. Rockwell," he said, addressing the stockholder, "I 
 sincerely thank you for the interest you have shown in the main- 
 tenance of our efficiency. I appreciate the fact that from your 
 window Mr. Rogers appears every bit as idle as you say. 
 
 "But from your window it is impossible for you to see what 
 is going on inside Mr. Rogers' head. It would be highly profit- 
 able to this company to hire a dozen other men like him, if we 
 could get them, and pay them salaries as large as we pay Mr. 
 Rogers, to stand with their hands in their pockets, looking out 
 of their windows and thinking thoughts as valuable as those 
 which Mr. Rogers thinks." 
 
 This is true ptobably of most managers: when they are 
 apparently idle they are busy thinking "valuable thoughts." 
 Just as soon as you and your fellow office workers appreciate some 
 of the many knotty problems the "boss" is up against, you will 
 begin to feel keenly your responsibility for making the whole 
 office run smoothly. 
 
 One very important problem. In our lessons thus far we 
 have studied the office work of many departments; we have 
 seen how the various operations are carried out; and we have 
 learned the relation of each department to the business as a 
 whole. One important problem remains— that of harmonizing 
 the work of all the departments, reducing friction, increasing 
 production, cutting down unnecessary expenses of operation, 
 and at the same time securing the loyalty of- the office workers 
 and keeping everybody happy. 
 
 Dealing with human nature. This is- the manager's 
 job, and it is a big job. Not only does he have to deal 
 with machinery and equipment, but he also has to deal with 
 the most uncertain, fluctuating, changing element in business- 
 human nature. All the Uttle disturbances, the petty quarrels, 
 the differences of opinion, the variations in temperament of the 
 different workers, the natural quickness of some, the laziness 
 of others, the thousand and one component facts that make 
 up the modern business world— all these and many others, some 
 almost unheard of and unbelievable, go to make a bigger and 
 harder job for the manager than the work of perhaps anybody 
 else in the office. 
 
OFFICE PROBLEMS I97 
 
 When machinery squeaks you can oil it; but when a human 
 organization like a highly complicated business office squeaks, 
 something besides oil is required to eliminate imnecessary friction 
 and get it running smoothly again. 
 
 The office manager as an engineer. Four factors, then, 
 the office manager has to deal with — labor, materials, equip- 
 ment, and orders. The office is like the hopper of a machine 
 into which the orders are fed. The hopper is the office; the 
 grindstones are the equipment of the office; the materials make 
 up the order; the office force turns the crank; and the grist is 
 the result; the office manager is the engineer, with the job of 
 keeping the machine oiled, the crank turning regularly without 
 stopping, the grindstones always the proper distance apart, and 
 the grist uniformly fine. 
 
 Let's see how he handles this interesting task. 
 
 First we'll study the office itself, the "physical" office, the 
 building, the rooms, the desks, and the equipment necessary for 
 carrying on the work. Although the physical characteristics of 
 each office must depend largely upon the work that is carried 
 on, nevertheless every office has features that are similar to 
 every other office and many of the principles underlying the 
 work are very much alike. 
 
 Planning the office for effective work. How shall the 
 desks and other office equipment be arranged? When a factory 
 expert lays out the plan for his building, he aims to have the 
 raw material come in at one place and pass naturally from one 
 machine or department to another without loss of time or motion. 
 Exactly the same reasoning apphes in laying out an office, and 
 it is called the ''straight hne" principle. 
 
 The ''straight line" principle. Imagine if you can, two 
 different water pipes running from one water barrel to another, 
 one pipe crooked and twisted and bent, the other pipe absolutely 
 straight. Through which pipe will the water run the faster? 
 Naturally through the pipe that is straight. If we consider 
 the office routine as the "pipe" through which the orders "run," 
 we can easily see that if the routine "pipe" is straight, the 
 orders will go through the office much more quickly than if the 
 routine "pipe" is crooked and bent. That is, if an order can 
 
198 OFFICE TRAINING AND STANDARDS 
 
 come in the front door and go through the office in a straight 
 hne, and out the back door, it will not take as long as it would 
 if the order had to cross the office back and forth several times 
 and then perhaps go out the front door again. 
 
 The straight line principle is followed so that there will be 
 no doubUng back of an order from the time it enters the office 
 until it is filled and shipped. On a diagram of the office the 
 passage of work from desk to desk should form a straight line. 
 It holds true in a small office, as well as in a large one, that all 
 crossing of lines and turning back results in lost motion and time. 
 
 Unnecessary expenses hide in every kink or crook. Because 
 an office operation repeats itself over and over, the waste 
 from lost time is evident wherever a clerk walks 10 feet when 
 the errand could be done by handing a paper across a table. 
 Once these kinks are straightened out, it becomes easier to 
 maintain efficiency and to correct desk-to-desk details. 
 
 Desks, therefore, are distributed through the office not with 
 a view solely to artistic effect, but for convenience, as well. It 
 helps for every employee to keep his eyes open for better arrange- 
 ment of the office. If you notice, for instance, that your work 
 could be simplified or made more effective if your desk were 
 moved next to the person you are working with, don't be afraid 
 to suggest the change. Every wide-awake manager is glad to 
 receive sensible, practical suggestions of ways to increase the 
 effectiveness of his office routine. 
 
 Suiting the desk to the work. Although the desks and 
 other equipment are arranged properly with respect to the 
 routine, it may be that the equipment itself is not suited to the 
 work passing over it. If a roll-top desk is used, perhaps a flat- 
 top desk would serve the purpose better, particularly if the 
 work is of a nature requiring especially good light and constant 
 passing of letters and papers. Or perhaps the work may be of a 
 character that could be most effectively handled with a specially 
 built table. All these considerations and many others are part 
 of the work of the manager. 
 
 The inside of the desk. Some managers even require the 
 insidcs of all desks to be arranged according to a standard plan. 
 There is a good reason back of this: if you are unexpectedly 
 
FIGURE 67: When a certain office manager came into a new concern, he found 
 the office arranged like this. An order came in to the mail-opening desk and from 
 there it skipped all over the office. Follow the arrows and see where it went. 
 
 a 
 
 .9, 
 
 a 
 
 Han 
 
 Sales 
 
 )v '°T T X X 
 
 clerks Correspondents 
 
 bookkeepers 
 
 
 
 
 Fi 
 
 e 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a 
 
 Stenoeraphers 
 
 J "U 
 
 FIGURE 68: He decided time could be saved by a rearrangement. This is how 
 the office looked after he made the change. The order now goes in one straight 
 line from the mail opening desk to the credit man, the bill clerks, and the factory. 
 
 199 
 
FIGURE 69: You won't waste time 
 fumbling for clips and pins if your desk 
 drawer is well arranged with partitions. 
 
 FIGURE 70: The middle drawer of 
 this desk is divided into small compart- 
 ments for pins, clips, and rubber bands. 
 
 FIGURE 71: Hue is a desk that is made up of three interchangeable units. It 
 can be shifted with very little difficulty to suit almost any kind of work. The 
 drawers arc conveniently arranged for filing, and the stationery racks are handy. 
 
 200 
 
OFFICE PROBLEMS 201 
 
 absent, someone in your department can find your work and 
 give it the necessary attention. This manager requires all un- 
 finished business to be placed in folders clearly marked. Pens, 
 penholders, blotters, pins, clips, pencils, erasers, rulers, and office 
 forms are kept in their assigned compartments. Some desks 
 have a deep drawer in which space is provided for fiUng follow- 
 up matters. In case you work with a great many blank forms, 
 the center drawer may be used for special appliances and the 
 upper right- or left-hand drawer for the forms, or a special cabinet 
 near your desk may help. 
 
 An absolute necessity. The most perfect routine ever 
 established will fall short of its possibiUties if the office manager 
 has not provided comfortable working conditions for his em- 
 ployees; he cannot hope to get the best results from them. No 
 one can work effectively at a desk if the room is so cold that his 
 fingers are numb, or if the fight is dim, or the air stuffy, or the 
 surroundings noisy. 
 
 Good light is an important requirement for effective work. 
 Daylight is, of course, the best possible fight, but it is not always 
 available. In that event the manager has to choose the best 
 kind of artificial light and decorate the walls in light colors so as 
 to conserve whatever light there is. 
 
 There is also the question of ventilation, which the manager 
 must decide, and of heat and humidity. A reasonably warm, 
 moist, well-ventilated office will do much to assure the comfort 
 of the workers and to maintain their efficiency at the highest 
 level the year round. 
 
 Muffling the office noises. Another problem that may be 
 worrying the manager is how to muffle the office noises. Noise, 
 as has been proved, is one cause of fatigue and it therefore lowers 
 eflSciency. Much of the noise of a large office is caused by 
 talking. Every employee can easily talk in low tones if it is 
 necessary to talk at all. It is easy enough to reduce the noise 
 made by office machines by using felt cushions for typewriter 
 rests and rubber pads for desks on which rubber stamps or 
 numbering machines are used. These are only a few of the 
 methods that will help reduce office noises. Perhaps you can 
 think of several others. 
 
202 OFFICE TRAINING AND STANDARDS 
 
 The greatest problem of all. There still remains to ,be 
 considered the problem of handling the office workers. No 
 matter how well equipped it may be, an office is worthless with- 
 out people to work in it. Well-trained employees may turn out 
 good work in a poorly equipped office — poorly trained em- 
 ployees cannot turn out good work even in an office that is per- 
 fectly equipped with the latest office devices. 
 
 Hiring, placing, and training employees. The first step 
 to take in building up a capable office force is, of course, to hire 
 promising applicants. Concerns which do not ^dopt careful 
 methods of hiring, placing, and training employees find the 
 number of withdrawals unnecessarily large, causing an enormous 
 expense, since it has been estimated that it costs from S50 to 
 $150 to "break in" a new worker. Many managers use carefully 
 thought out tests for the purpose of testing mental maturity, 
 observation, memory, alertness, accuracy, speed, and general 
 fitness for performing certain mental and physical operations. 
 Anyone who is not up to the required standard is rejected as 
 hopeless for the work required. The tests also show just what 
 kind of work each appHcant's training and abiUty fit him for, 
 and help to lower the number of square pegs in round holes. 
 
 After an employee is hired, he must be trained. Many 
 concerns have the employee who is leaving show the work to 
 the new one, but the more progressive office managers are finding 
 that much better results are usually obtained by the use of 
 standard practice instructions. 
 
 Standard practice instructions. To prepare the standard 
 practice instructions each job in the office is thoroughly analyzed. 
 The very best way to do each task is determined upon after 
 careful study, and then clear and complete instructions for doing 
 the task in that way are written down in full detail. All the 
 new employee has to do at first is to read and become familiar 
 with these standard practice instructions. 
 
 Having mastered the details of the work as written out, and 
 learned the policies and reasons for doing the work as instructed, 
 the new employee is ready to start work. Thus the first day 
 or two gives the new worker the three essential points necessary 
 to give him a proper start: complete instructions, the reasons 
 
JL 
 
 
 jurfSi^ 
 
 
 
 
 
 
 AN ATTENTION TEST 
 
 
 
 Cross the 2's and ring the 3's among the figures 
 
 
 
 given below; the time allowed is two minutes 
 
 
 
 1 ^^ 4 5 6 7 8 9 1 \^ 4 5 6 
 
 
 
 9 4 5 $ 2^8 7 1 ^ 4 ^s^^ 
 
 
 
 01"i4 5-^av8409 ^6 7 fe 
 
 
 
 5 4 ^1^ 8 ^7 4(^5 9 'S^O 
 
 
 
 1 4 @) 7 ^ % 8 4 ^^ 1 (p 9 
 
 
 
 3;>4 5 S^ 7 8 9 f \ 7 5 I 8 
 
 
 
 4 7 9 $) ^ ^ § D 4 5 8 1 7 
 
 
 
 8 4 1 ^ 8 ^ 8 %^0 9 \^^6 4 8 
 
 
 
 7,J>5 7\4 90(3^78@9 52. 
 
 
 
 
 
 FIGURE 72: One concern uses this test to measure the abihty of applicants. It's 
 
 extremely simple, of course, but it shows how well you can concentrate and how 
 
 quickly j-^our mind works. Suppose you get some one to time you while you take 
 
 the test — it may tell you how well you can follow instructions. 
 
 203 
 
In this drawer are paper, 
 
 cards, envelops, and other 
 
 supplies naturally reached 
 
 for with the left hand 
 
 These are the only transient 
 papers about the desk. The 
 folder in the executive's left 
 hand contains reports relat- 
 ing to these papers, and be- 
 longs in the lower right 
 hand drawer 
 
 Folders contain- 
 ing reports on 
 work in process, 
 dictation arid 
 house notes 
 
 Pencils and 
 rubber stamps 
 
 FIGURE 73: The executive who uses this cUsk has arran<j,<-a it so that his -work- 
 ing tools" can be easily reached. The kind of work you do will, of course, determine 
 the arrangement of your desk somewhat. But no matter what the work, the object 
 always is to have an efficient arrangement and stick to it. 
 204 
 
OFFICE PROBLEMS 205 
 
 back of those instructions, and the conduct expected of him 
 while he remains an employee of the concern. In case of mis- 
 understanding reference is quickly made to the instruction sheets. 
 Keeping the workers contented. After the employees are 
 hired and trained, the manager's problem is to keep them con- 
 tented so that they will not be constantly on the lookout for new 
 positions. Favorable office conditions will often help; recrea- 
 tion rooms, rest rooms, and lunch rooms are an advantage also. 
 But one of the most important factors in keeping employees is 
 reasonably good pay. If employees are paid what their work 
 is worth and receive increases as their work improves, they will 
 more than likely be contented. 
 
 About the only way, however, to estimate what office workers 
 are worth is to keep a careful check on their work, and there are 
 many ways of doing this, such as counting and measuring, 
 comparing and inspecting, supervision and reports. 
 
 Many managers stimulate their employees to better work 
 by the use of a bonus system; a reasonable standard of attain- 
 ment is set — those who reach the standard and pass it receive 
 more money than those who don't. 
 
 Ways to stimulate ambition. Nearly every manager finds 
 that it pays to give his office workers something to look forward 
 to. If they see no prospects ahead, their work may become a 
 dreary grind. But if there are better jobs waiting for them when 
 they are ready for the jobs, their own work will become doubly 
 interesting. 
 
 For this reason a number of companies fill vacancies by 
 promotion wherever possible. If a vacancy is filled "from the 
 outside," the old employees are apt to feel that an injustice has 
 been done them. In order to have someone ready to take a 
 position if made vacant, one manager has an understudy in 
 training for every position. This prevents disruption of the 
 force or the routine. 
 
 Making a game out of VAork. Perhaps the hardest prob- 
 lem of all that the manager has to tackle is to make a game out 
 of the work— make it seem like play. While there is, to be sure, 
 more or less work about all games, still this does not prevent 
 all normal human beings from enjoying them. Business is a 
 
206 OFFICE TRAINING AND STANDARDS 
 
 game of intense interest in which the fittest survive and the 
 weaklings perish. If you have never become interested in this 
 game perhaps you have not had sufficient training. You don't 
 expect to play a really good game of baseball or tennis without 
 some preparation, perseverance and perspiration. Enter all 
 the contests you can and throw all the enthusiasm you possess 
 into the game. Even if you don't win the first time, you will 
 find yourself stronger for the next entry. 
 
 You do not know how fast you can run until you run as hard 
 as you can and keep on running. You do not know what you 
 can do in business until you get interested in hard work and do 
 your very best. You may even be surprised at your own accom- 
 plishments when you once find yourself. 
 
 Make up your mind you are going to reach a high goal and 
 start now. Your possibilities are what you make them. Some 
 day you may be facing the very same problems your manager is 
 now facing. Your abiUty to solve those problems then depends 
 largely on the way you play the game now. 
 
 OFFICE STANDARDS 
 
 The office from the manager's desk 
 
 1. Although the manager may sometimes appear to have an easy job, 
 he is usually hard at work — with his brain. 
 
 2. Large corporations pay large salaries to men and women who work 
 with their brains. 
 
 3. Poor Richard said: "The eye of the master does more work than 
 both his hands." 
 
 4. One of the most important jobs the manager has is to harmonize the 
 work of each department with that of every other department. 
 
 5. Since every office has certain features that are similar to every other 
 office, many of the principles underlying all offices are alike. 
 
 6. The office manager deals with four factors— labor, materials, equip- 
 ment, and orders. 
 
 7. An office, like a factory, should be laid out on the "straight line" 
 principle. 
 
 8. The straight line principle means the arrangement of desks and 
 equipment so that there will be no "doubling back" of an order from the time 
 it enters the office until it is filled and shipped. 
 
 9. Water will run through a straight pipe faster than through a crooked 
 one. 
 
 10. If the insides of all the desks are arranged according to a standard 
 plan, it is easier for a substitute to take up the work where it was left off. 
 
OFFICE PROBLEMS 207 
 
 1 1 . Comfortable working conditions will help to maintain office efficiency. 
 
 12. Effective work cannot be accomplished if the light is poor. 
 
 13. Fresh air and a comfortably warm office are essentials to good work. 
 
 14. Since noise causes fatigue, nearly every step that will reduce noise 
 will help the office workers. 
 
 15. In some offices the noise from typewriters and other machines is 
 reduced by placing felt or rubber pads under tlie machines. 
 
 16. In many large offices all the typewriters are placed in one room. 
 
 17. Unnecessary talking causes a great deal of noise. Everyone can do 
 his part to lessen it. Think before you speak. 
 
 18. The difference between good work and bad work may be due to the 
 difference between good training and poor training. 
 
 19. Well-trained employees may be able to turn out good work in a 
 poorly equipped office. 
 
 20. Poorly trained employees cannot turn out good work even in a 
 perfectly equipped office. 
 
 21. The cost of hiring, placing, and training employees has been estimated 
 at from $50 to $150 for each new worker. 
 
 22. If workers are carefully selected before they are hired, they will 
 usually prove more satisfactory than if they are hired without regard to their 
 qualifications or disqualifications for the job. 
 
 23. Tests are used to determine the applicant's mental maturity, observa- 
 tion, memory, alertness, accuracy, speed, and general fitness for performing 
 certain mental and physical operations. 
 
 24. The tests also show for just what kind of work each applicant's 
 training and ability fit him. 
 
 25. In "breaking in" a new employee, many concerns use standard 
 practice instructions in preference to having an older employee do the teaching. 
 
 26. Standard practice instructions show the very best way to perform 
 each operation in the office. 
 
 27. Standard practice instructions for any job are usually prepared only 
 after that job has been thoroughly analyzed and carefully studied. 
 
 28. The advantage in using standard practice instructions in training 
 employees is that they give the worker the three essential points necessary for 
 a proper start: complete instructions, the reasons back of those instructions, 
 and the conduct expected of him while he remains an employee of the concern. 
 
 29. The manager whose employees are contented will not need to worry 
 about their leaving him for better positions elsewhere. 
 
 30. Other things being equal, employees will usually be contented if they 
 are paid what their work is worth. 
 
 31. To find out what an employee is worth, a careful check must be kept 
 on his work. 
 
 32. The usual methods of checking work are counting and measuring, 
 comparing and inspecting, supervision and reports. 
 
 33. Some companies pay bonuses for work which is up to or beyond a 
 reasonably attainable standard. 
 
208 OFFICE TRAINING AND STANDARDS 
 
 34. Every office worker is or should be looking forward to the job ahead. 
 
 35. This is the reason why many companies fill vacancies by promotion 
 wherever possible. 
 
 36. Some companies have an "understudy" in training for every position. 
 Thus someone is always ready to take the next job. 
 
 37. Business is a game of intense interest. 
 
 38. If you can make a game out of your work, it will seem like play. 
 
 39. You do not know how fast you can run until you run as hard as you 
 can and keep on running. 
 
 40. You do not know what you can do in business until you get interested 
 in hard work and do your very best. 
 
 41. Make up your mind you are going to reach a high goal and start on 
 your way right now. 
 
 42. Your ability to be a good captain of your team depends largely on 
 the way you play the game now. 
 
 STANDARD QUESTIONS 
 
 The office from the manager's desk 
 
 1. Should the office manager receive a lower salary than the other workers 
 if he works at the office fewer hours a day? Why or why not? 
 
 2. What does the manager work with most, his hands or his brain? Why? 
 
 3. If you happened to see the office manager come in to the office an 
 hour late several mornings in succession, would you feel that you had a right 
 to do the same? Why or why not? 
 
 4. What are several of the office manager's knottiest problems? 
 
 5. What are the four factors the office manager has to deal with? 
 Describe each one briefly. 
 
 6. Are any two offices just alike? 
 
 7. Is there anything about any office that is similar to every other office? 
 If so, what? 
 
 8. W^hich, if either, of these two types of desk is better: roll-top or 
 flat-top? Give your reasons. 
 
 9. Should the office manager pay any attention to the in ides of the desks? 
 Why or why not? 
 
 10. Is it wise to allow every worker to arrange his desk as he thinks best? 
 Why or why not? 
 
 11. Is there any advantage in having .■; definite place for all unfinished 
 work? 
 
 12. Have comfortable working conditions anything to do with the effec- 
 tiveness of the office? 
 
 13. Can you work as effectively with gas light as with day light? 
 
 14. What is the relation of fresh air to good work? 
 
 15. Does noise cause fatigue? How? 
 
 16. Can office noises be reduced? How? 
 
 17. What are two methods used to subdue the noise of typewriters? 
 
OFFICE PROBLEMS 209 
 
 18. How can every worker help to reduce noises? 
 
 19. Which would you rather have, a poo ly equipped office with well- 
 trained employees, or a perfectly equipped office with poorly trained employees? 
 Why? 
 
 20. Can you think of any way in which the office workers can help the 
 
 manager? If so, how? 
 
 STANDARD QUESTIONS 
 
 Office appliances and labor-saving devices 
 
 1. Has the introduction of labor-saving devices thrown employees out 
 
 of work? 
 
 2. How has the introduction of office machinery affected wages? 
 
 3. What effect has it had on the work of the office? 
 
 4. What effect has it had on the opportunities of office employees? 
 
 5. Explain how office machinery has revolutionized the work of the 
 business office. 
 
 6. What is the most useful machine of the modern office? Why? 
 
 7. What machine brings the mail to the office? 
 
 8. How is the mail opened by machinery? 
 
 9. To what machine is the answer dictated? 
 
 10. With what machine is it wi'itten? 
 
 11. With what machine may it be signed?^ 
 
 12. With what machine may it be folded? 
 
 13. With what machine may it be sealed? 
 
 14. With what machine may it be stamped? 
 
 15: With what device may duplicate orders be written? 
 
 16. What machine will act as bookkeeper? 
 
 17. What device will deliver written messages? 
 
 18. What machine will write a message? 
 
 19. What device will transmit a message? 
 
 20. What machine will protect from fraud? 
 
 21. What machine will count coin? 
 
 22. What machine will number papers? 
 
 23. What machine will date papers? 
 
 24. What machine will fasten papers? 
 
 25. What machine will keep a record of your timo? 
 
 26. What machine will sharpen pencils? 
 
 27. What machine will tie up packages? 
 
 28. What machine will address packages? 
 
 29. What machine will deliver packages? 
 
 30. What machine do you like best to use? Why? 
 
 31. Which machine do you most dislike to use? Why? 
 
 32. Which machine is the most expensive? Why? 
 
 33. Which machine is the greatest labor-saver? Why? 
 
 34. Which machine is the most commonly used? Why? 
 
210 OFFICE TRAINING AND STANDARDS 
 
 35. 'What is the difference between an adding machine and a calculating 
 machine? 
 
 36. What is the difference between a listing machine and a non-listing 
 machine? 
 
 37. What is the difference between the mimeograph and the muRigra h? 
 Name several ways in which each can be used. 
 
 38. WTiat is the difference between the dictograph and the dictaphone? 
 
 39. What is the difference between the addressograph and the signagraph? 
 
 40. What is the difference between the telephone and the telautograph? 
 
 41. What is the difference between the stenotype and the shortwriter? 
 
 42. Under what circumstances can a shorthand-writing machine be used 
 to advantage? 
 
 43. Under what circumstances can the electric pencil be used to advantage? 
 
 44. Under what circumstances can the extra-sensitive telephone be used 
 to advantage? 
 
 45. Under what circumstances can a dictating ma hine be used to ad- 
 vantage? 
 
 46. Under what circumstances can a type duplicator be used to advantage? 
 
 47. Under what circumstances can an addressing machine be used to 
 advantage? 
 
 48. Under what circumstances can mechanical carriers be used to ad- 
 vantage? 
 
 49. Give some good general rules for the care of the typewriter. 
 
 50. Is it a good thing to work like a machine? Why or why not? 
 
 STANDARD QUESTIONS 
 
 Office layout 
 
 1. What is meant by the layout of an office? 
 
 2. What is meant by the straight line principle in laying out an office? 
 
 3. You've probably heard the axiom— "a straight line is the shortest 
 distance from one point to another." Could you apply it in laying ou an 
 office? How? 
 
 4. What considerations should govern the arrangement of desks? 
 
 5. How should desks be arranged with regard to aisles? 
 
 6. Would it be economical to have your desk placed 20 feet away from 
 the person with whom you are working? 
 
 7. If you discovered that you were wasting time because your desk was 
 inconveniently situated, what would you do about it? 
 
 8. In one office a clerk gets $3 a day. He walks 20 feet to the files 20 
 times a day and it takes him 2 minutes each time. How much money would 
 the company save every day if his desk were moved right next to the files? 
 How much in a year? 
 
 9. How near to the worker should drinking fountains be located? 
 
 10. Will a diagram of the office give the manager any indication as to 
 whether the layout is effective or not? If so, how? 
 
OFFICE PROBLEMS 211 
 
 STANDARD QUESTIONS 
 
 Hiring, training, and holding employees 
 
 1. What does it cost approximately to hire, place, and train a new 
 employee? 
 
 2. Is it necessary to use a good deal of care in selecting employees? 
 Why or why not? 
 
 3. How does the employment manager decide whether the applicant is 
 up to the standard required for the position? 
 
 4. How does the manager decide just what kind of work each employee 
 is best fitted for? 
 
 5. Name several methods of teaching new employees. 
 
 6. What method do you consider most effective? Why? 
 
 7. What are standard practise instructions? 
 
 8. Write out standard practise instructions for some operation you are 
 familiar with — e.g., knitting a sweater — playing a game— baking a cake- 
 weeding a garden — sharpening a pencil. 
 
 9. What are the three essential points a new employee should know in 
 order to get a proper start? 
 
 10. Are most managers eager to keep their employees contented? Why 
 or why not? 
 
 11. Why is it advisable to hold on to capable employees if possible' 
 
 12. What is one of the most important considerations in keep'ng em- 
 ployees contented? 
 
 13. How is it possible to know just what an employee is worth? 
 
 14. Name several methods of checking up the work of an employee. 
 
 15. What is meant by a bonus? 
 
 16. What is the purpose of paying a bonus? 
 
 17. What is the best way, in your opinion, of filling vacancies? Why? 
 
 18. Is it a good idea to have an understudy in training for every position? 
 Why or why not? 
 
 19. Do you know of any concern that does welfare work among its em- 
 ployees? What sort of welfare work? 
 
 20. Why does a company carry on welfare work? 
 
 21. What influence have comfortable working conditions on keeping the 
 workers contented? 
 
 22. Is it just for kindness' sake that employers are interested in the health 
 of their employees? 
 
 23. Why do some concerns have schools for their employees? 
 
 24. How can they afford to pay f-alaries to employees while learning? 
 
 25. Why do some employers encourage employees to purchase stock in 
 the company? 
 
 STANDARD EXERCISES 
 Some problems in office efficiency 
 1. A firm employing eight addressing typists found that by standard- 
 izing the work and using the block form of address they gained 25% in efficiency. 
 
212 OFFICE TRAINING AND STANDARDS 
 
 How much would the same improvement save a firm employing 12 typists at 
 $800 each a year? 
 
 2. If the average distance from the desks to the drinking fountain is 
 100 feet and it requires 2 minutes for a clerk to get a drink and return to his 
 work, how much time will 2,000 clerks lose in a year of 300 working days it 
 they make an average of 5 trips a day? 
 
 3. At an average of 25 cents an hour how much money would be saved 
 in 10 years by placing fountains 20 feet from each clerk? 
 
 4. If it costs SI 00 to hire and instruct a clerk, what will the yearly 
 expense be in an office where 400 new clerks are employed every year to main- 
 tain a working force of 200? It is estimated that 20% of the force is changed 
 by death, accident, or some unavoidable cause and should not be charged to 
 labor turnover expense, as it is called. 
 
 5. A clerk opening mail found that by standardizing her work it was 
 possible to handle 300 letters an hour instead of 80 letters an hour under her 
 former methods. What is the percentage of improvement? 
 
 6. A few years ago 41 operators of the Curtis Publishing Company pro- 
 duced 48,000 square inches of typewritten matter in a week at an average 
 weekly wage of $9. How much did this work cost for each 1,000 square inches? 
 
 7. After adopting a standard, 27 operators in the same department 
 produced 115,000 square inches and were paid an average wage of $11 a week. 
 What was the cost for each 1,000 square inches? 
 
 8. What was the percentage of increase in efficiency? 
 
 9. What was the percentage of improvement in wages? 
 
 10. Two typists were taken from a noisy general office and placed in a 
 quiet room. They increased their output 100%. What saving in a year would 
 be effected with a force of 200 typists at an average salary of $18 a week? 
 
CHAPTER XIV 
 
 OPPORTUNITIES FOR EMPLOYMENT 
 
 EMPLOYERS are looking for hjgh-grade help. There are 
 more really good jobs open right now than there are 
 applicants for those jobs. Strange though it sounds, it 
 is the truth. And one of the purposes of these lessons has been 
 to prepare you for one of these high-grade jobs, not only by show- 
 ing you the methods others are using to succeed, but also the 
 way to approach your prospective employer in order to make a 
 favorable impression. 
 
 When you apply for a job, you are a salesman. You are 
 selling your services, and in order to sell your services you must 
 find someone who wants the particular kind of services you have 
 to sell, and who is willing to pay the price you think your ser- 
 vices are worth. 
 
 Taking an inventory of yourself. Your first task then is 
 to find out who wants to hire you. This means that you must 
 analyze yourself; you must find out, if possible, just what work 
 you are best fitted for and how well fitted you are for that work. 
 What do you know? How much are you worth? Take an 
 inventory of your stock on hand. You should know your own 
 personal assets and liabihties before engaging in business for 
 yourself or others. 
 
 It is not necessary to publish your estimate of yourself; 
 others will draw their own conclusions from the records you make. 
 Repeat this inventory occasionally. Compare your estimates 
 from time to time and observe whether you are progressing or 
 retrogressing. But be honest with yourself; you gain nothing by 
 trying to deceive yourself as to the facts. Face them openly, 
 and see where you can improve on the showing. Mark each 
 question on the basis of five points for a perfect score, or 100 
 points for all the questions. 
 
 213 
 
214 OFFICE TRAINING AND STANDARDS 
 
 SOME PERSONAL QUESTIONS 
 
 1. Am I physically fit? Am I up to the standard for my age in weight 
 and height? 
 
 2. Am I fond of out-door recreation? Do I excel in any athletic games? 
 
 3. Have I decided on my vocation? Am I doing anything that is directly 
 preparing me for my life work? 
 
 4. Am I neat and careful in my work? Do I give enough and yet not 
 too much attention to my personal appearance? 
 
 5. Am I a coward physically or mentally? Do I have the tenacity and 
 will-power to stick to my work and face difficulties? 
 
 6. Do I perform my mental and physical work to the extent of my 
 possibilities? Am I above the standard in my line of work? 
 
 7. Am I a shirker? Am I interested and attentive to detail, or am I 
 looking for the easy job? 
 
 8. Am I punctual in all my work and appointments? Have I attended 
 school or kept other engagements for several years without failure? 
 
 9. Am I a knocker or a grouch? Am I as cheerful and poUte at home as 
 I am with strangers or in business? 
 
 10. Do I choose the right kind of associates? Am I fond of gambling or 
 any game of chance? 
 
 11. Do I enjoy reading good books or magazines? Am I interested in the 
 things that have made others successful? 
 
 12. Am I fond of music or art? Do I have a hobby which may be of 
 permanent value? 
 
 13. Do I control my temper? Am I invariably courteous to others? 
 
 14. Am I truthful at all times? Do I deceive myself as to my honesty? 
 
 15. Am I accurate and rapid in my work? Am I interested in improving 
 my efficiency? 
 
 16. Did I ever get a job by my own effort? Am I capable of filling some 
 position well? Have I cultivated my observation and memory? 
 
 17. Am I loyal to my employer and friends? Can I be relied upon in 
 time of trouble? Do I talk too much? 
 
 18. Have I a savings bank account? Do I save money because I am 
 stingy or selfish? Do I want money to spend in self-indulgence? 
 
 19. Have I formed habits of thinking and doing which may some time 
 injure my health or character? 
 
 20. Do I wish to succeed for the purpose of showing off, to have an easy 
 time, or to satisfy my ambition or appetites? 
 
 Picking out your weak points. Perhaps your answers to 
 these questions will give you some things to think about. After 
 adding up the number of points you have made, ask yourself if 
 there's any reason why you can't make 100 points. Undoubtedly 
 you made the full five points on some of the questions; why 
 didn't you make five points on every question? 
 
EMPLOYMENT 215 
 
 Run back over those on which you marked yourself less than 
 five points and try to find out what you lack on each point to 
 bring your standard up to five; when you have decided what 
 you need, determine then and there to start to improve yourself 
 and bring your standard up. No one else can do it for you; if 
 you haven't interest enough in your own self to do it, surely 
 you can't expect anyone else to have that interest in you. You 
 will be surprised to find how much progress you can make. 
 
 What employers are looking for. Having analyzed your- 
 self and found what your strong points are, you must look 
 around to see who wants an employee with strong points like 
 yours. A large number of employment managers met in Chicago 
 a short time ago for the purpose of discussing the subject: 
 "Positions I find the most difficult to fill, and why." It was 
 generally conceded that it is difficult to find trustworthy and 
 competent employees with the qualifications listed beloWo Here 
 is what these employment managers decided they wanted in the 
 people they hire: 
 
 Loyalty, reliability, and truthfulness 
 
 Will-power or tenacity of purpose 
 
 Accuracy and attention to detail 
 
 Memory and ability to follow directions 
 
 Perseverance and willingness to be workers before being bosses 
 
 Interest enough to do your best and cooperate 
 
 Initiative to plan for your future 
 
 Observation and care in your work of today 
 
 Judgment and discrimination of relative values 
 
 Wisdom to know when to keep your mo uth shi^ 
 
 lile there are probably few employees with all these 
 desirable qualities, yet after all the acquiring of most of them is 
 largely a matter of self-training and development. Everythmg 
 depends largely on your own efforts. 
 
 A few of the possibilities. A quick glance over the field 
 of work open to you will help you to determine what business 
 you wish to get into. If you decide to learn a business such as 
 lumber for instance, or hardware, you will expect eventually to 
 know that business from top to bottom, inside and out. In other 
 words, you will become an expert in that particular industry 
 and you will know little about any other. 
 
216 OFFICE TRAINING AND STANDARDS 
 
 Practically all human activity can be expressed in the terms 
 used by the Declaration of Independence — the providing and 
 maintaining of the factors essential to hfe, liberty, and the pur- 
 suit of happiness. What things are essential to life? Food, 
 clothing and shelter. To Uberty? Protection and education. To 
 the pursuit of happiness? Nearly everything that is not included 
 in the other two. 
 
 Another division into which all of these factors can again be 
 separated is that of necessities and luxiu-ies. Some foods are 
 necessities, others are luxuries; some clothing is a necessity, 
 some clothes are luxuries; some shelter is a necessity, some 
 palaces are luxuries. The dividing Une between necessities and 
 luxuries is not clearly defined, nor will it ever be, probably, but 
 you will find that as the things essential to life and Uberty 
 approach the description of luxuries, they also become more or 
 less essential to the pursuit of happiness. 
 
 You have, therefore, two standards by which to choose — 
 one the kind of work you feel would interest you most, and the 
 other the kind of work which would probably be in most demand; 
 in short, the line in which you could do the best work, and the 
 Une which wiU pay you the most money for your efforts. 
 
 Why it is worth while. This may seem like a lengthy job 
 and rather tedious, perhaps. But it is your life work you are 
 planning for, and a few days or a week, or even a month or more, 
 spent now in finding where you belong will be weU spent. How 
 old are you now? How many more years do you expect to live? 
 What proportion of the years you expect to live is the number 
 of years you have already lived? Is it worth while, then, to plan 
 for those years ahead? You aren't planning only for the next 
 two or three years — you are planning for the next 20, 40 or 60 
 years, depending on how old you arc now. And what you do 
 in those 20, 40, or 60 years will depend largely on the nature of 
 the steps you take now. 
 
 Pick out two or three of the really big men in the lines of 
 business you have chosen. Call on these men, and ask them 
 questions about their work and what opportunities it offers to 
 you. If you approach them in an earnest, sincere, businesslike 
 way, you will find these men, whose time is so valuable that it 
 
Salary 
 
 Employed by 
 
 Do not fill in the 
 above space 
 
 Miller & Grove 
 Jewelers 
 
 Application for Position 
 
 Name 
 
 Age 
 
 Date 
 
 Address 
 
 
 Telephone No. 
 
 With whom do you live? 
 
 
 Nationality 
 
 If with parents, state so 
 
 Position desired 
 
 Introduced by 
 
 Grammar school 
 
 What grade? If graduate. 
 
 High school 
 
 How long? If graduate. ; 
 
 College 
 
 If business college, state so. 
 
 State below if you have any 
 special training or qualifications. 
 
 References: 
 Give below four personal references who have known you for past five years. 
 Business or professional men preferred. (Do not name relatives or previous employers.) 
 
 Name 
 
 Business or Occupation 
 
 Address 
 
 FIGURE 74: If you should apply for a position with Miller and Grove, Jewelers, 
 this is the application you would be asked to fill out. Your answers to these 
 questions would determine to a great extent whether or not you were offered the 
 position. Even such simple questions give opportUiiity to display intelligence. 
 
 217 
 
Record of Previous Employment 
 
 Give your present or last position 
 first and other positions in order 
 
 1 Last position 
 Employer Address 
 
 Business From 19 To 
 
 19 
 
 Position held Under whom Salary 
 
 Reason for lenvinp 
 
 2 Next to last positioa 
 Employer Address 
 
 Business From 19 To 
 
 19 
 
 Position held Under whom Salary 
 
 Reason for leaving 
 
 3 Third last position 
 Employer Address 
 
 Business From 19 To 
 
 19 
 
 Position held Under whom Salary 
 
 Reason for leaving 
 
 4 Fourth last position 
 Employer Address 
 
 Business From 19 To 
 
 19 
 
 Position held Under whom Salary 
 
 Reason for leaving 
 
 
 FIGURE 75: This is the other side of the application blank shown on page 217. 
 It tells in brief a history of your business career, and so gives the employer an indi- 
 cation of your experience. It tells what kind of work you have been doing, what 
 salary you received for that work, and other important facts about your former work. 
 
 218 
 
EMPLOYMENT 219 
 
 cannot be bought, will ordinarily give you their attention and 
 you will be able, perhaps, to go through their offices and shops 
 and plants and find out at first hand whether the work would 
 appeal to you or not. Thus you can get a line on almost any 
 business, and determine more easily which one you want to 
 enter. Of course, you can hardly expect to include everything 
 in one or two hasty trips, but you can at least get some ideas. 
 
 Selecting your employer. Having determined the line of 
 endeavor you want to take up, two w^ays of getting a position 
 are open to you. One is to scan the classified advertisements in 
 the newspapers and trade journals; the other is to select the most 
 progressive concerns in your line and write to the employment 
 managers. Whichever way you choose, the information desired 
 by your prospective employers is much the same — the main 
 points on which you will be judged are what you can do and 
 how well you can do it. That is, if you are selected for a posi- 
 tion, it will not ordinarily be because of your knowledge, but 
 how well you can apply that knowledge. 
 
 In many instances you will be given an apphcation blank to 
 fill out. The care with which you fill out this blank, and your 
 answers to the questions asked, will go a long way toward deter- 
 mining whether or not you are fitted for the job. 
 
 If, on the strength of your written application, the manager 
 is interested to consider you further for the position at his dis- 
 posal, he may ask you to call and see him. Or, if you are in his 
 office when you make out the application blank and he is in a 
 hurry to fill the job, he may see you then and there. Some 
 managers, unless the need is urgent, do not like to decide at the 
 time of the first call, but will ask you to come again the next 
 day, or possibly later the same day. This also gives the manager 
 an opportunity to look up your references and to satisfy himself 
 as to your character. 
 
 Tests to measure your ability. Certain tests may be re- 
 quired of you to determine your knowledge, abiHty, and mental 
 alertness. One of the tests given appUcants for the position of 
 typist in a large department store is to copy the following 
 quotation, making all the necessary corrections. The instruc- 
 tions are to do it as quickly and neatly as you can, but to be 
 
220 OFFICE TRAINING AND STANDARDS 
 
 sure you correct every mistake in spelling, punctuation, and 
 capitalization. You are timed on this, to see how near you come 
 to the standard of 210 words in 3 minutes. 
 
 WHERE PERSONALITY COUNTS 
 
 Business men and Execitives are looking everywehere for young Men and 
 Women of the right calaber to bring into their organizations and develope 
 them up to the point of highest afficiency. They want the kind of young people 
 who are equiped with that eluesive thing called personality — That unexceeled 
 ground-work for success. 
 
 They want people who make a good impresion on others, who show in 
 their apearance, maners and activities that they posess the success qualities, 
 they want people who are capable of conducting transactions with other people, 
 to represent the house in a fitting way — people with grasp and comprehention, 
 initiative and deciision. 
 
 Personality comes into play where an impresion is to be made on other 
 people, a man may have a sturling character and ability of high order, but when 
 it comes to makeing others realise these qualaties he must have the power in 
 some sense at least of making others appretiate them in him, in other words, 
 he must know how to display his goods to the best advantage so far as the 
 other fellow is concerned. 
 
 Go into the office of any succesful man and an interesting study in person- 
 ality confronts you, the personal appearance of the man, his manner, his bearing, 
 his way of looking at you — all these impress you. 
 
 Can you follow instructions? Here is another test which 
 will show the employment manager who uses it whether or not 
 you are above or below the standard requh-ed in ability to 
 interpret quickly, carefully, and accurately, and to carry out 
 printed instructions: 
 
 This exercise is given for the purpose of testing your speed, accuiacy, 
 and ability to interpret correctly what you read. It is really a game which 
 emables you to compare your score and efficiency with that of other applicants 
 for the same position. Each question is worth a certain number of points and 
 your total number of correct points earned, divided by the number of minutes 
 you required for answering the questions, will give your score per minute. 
 Answer all questions as quickly and accurately as possible and hand in your 
 paper as soon as completed, so that your exact time may be recorded as a 
 part of your record. 
 
 1. Read the above paragraph and state how your score per minute will 
 be obtained. 
 
 2. How many words in the same paragraph? 
 
 3. How many sentences in the same paragraph? If t\\e first sentence is 
 the longest, underscore the first word of the last sentence. If the third sentence 
 
EMPLOYMENT 221 
 
 is the longest sentence in the paragraph, make three dots underneath the last 
 word of the last sentence. 
 
 4. How many letters in the longest sentence? 
 
 5. In the same paragraph underscore each word containing exactly 
 four letters. 
 
 6. If efficiency is the longest word in the paragraph, draw a ring around 
 the first word of the paragraph. If some other word is longer, place a dot 
 underneath each letter of the longest word. 
 
 7. Give the number of e's and o's altogether in the paragraph. 
 
 8. Write all the letters of the alphabet. Repeat 3 times. 
 
 9. Write the nine digits. Repeat nine times. 
 
 10. An even number is one that is exactly divisible by 2. An odd number 
 is not exactly divisible by 2. Draw a ring around all the even digits which you 
 wrote in 9. If you have written more odd digits than even, draw a line through 
 all the a's, e's, i's, and o's which you wrote in 8. If there are more even digits 
 than odd, draw a line through all the nines. 
 
 It is possible to make 1,000 points if all of these questions 
 are correctly answered. The most accurate pupils will finish the 
 work in 20 minutes or less. This makes an average of 50 points 
 
222 OFFICE TRAINING AND STANDARDS 
 
 a minute for the standard. High school 9th grade pupils will 
 average 33 points. Employment managers will give an apphcant 
 a trial if he can make the average of 33 points, but anything 
 below that is considered hopeless. 
 
 Are you a clear thinker? An interesting test which gives 
 an employment manager an idea of your mental alertness is 
 this one: 
 
 Place a cross, like this X, before each statement or definition which 
 is reasonable and correct. If you think it is not, you may write the 
 sentence correctly. 
 
 1. Living expenses are higher in the country than in the city. 
 
 2. There is a greater variety of amusements in the country than in 
 the city. 
 
 3. The schools in the country are better than those of the city. 
 
 4. It is pleasant to breathe the odors of the plants in the country. 
 
 5. It is generally conceded that farmers have fewer accidents than 
 people living in the city. 
 
 6. It is pleasant to ride to and from the city daily. 
 
 7. It is pleasant to hear the birds singing and the roosters crowing and 
 the horses neighing at dawn in the morning. 
 
 8. Our best business men were brought up in the country. 
 
 9. The automobile is a great time saver; therefore the farmer who owns 
 one spends more time at his work. 
 
 10. More people attend church since the automobile has come into 
 general use because it is so easy to get there. 
 
 11. People read more because they can read while riding in an automobile. 
 
 12. People owning automobiles save money because they do not spend 
 BO much carfare. 
 
 13. Driving a car is not so dangerous as driving horses, so there are less 
 accidents since automobiles came in use. 
 
 14. To write is to make words on paper with a pen or pencil. 
 
 15. To solve a problem is to make figures and put them in the proper places. 
 
 16. A chair is a piece of furniture on which we may comfortably sit. 
 
 17. The boundary between two states is a line which shows where one 
 state begins and another ends. 
 
 18. The boy said he could solve the three last problems. 
 
 19. If Sunday were called Monday, then Thursday would be Friday. 
 
 20. Edison invented the Bell telephone. 
 
 21. The laws of England do not permit a man to marry his widow's sister. 
 
 22. Our president's name eight years ago was Wm. H. Taft. 
 
 23. Richard wrote "Poor Richard's Almanac." 
 
 24. The boys are not allowed to wear soft collars and cuffs on their pants, 
 
 25. The Indian was 80 years old and looked twice his age. 
 
EMPLOYMENT 223 
 
 26. The adversaries were given pistols and placed an equal distance from 
 each other. 
 
 27. A woman said she had no children and that her mother was afflicted 
 in the same way, 
 
 28. The unfortunate patient lay speechless for six long weeks in the 
 month of August, crying incessantly for water. 
 
 29. With these few words he lit a cigar. 
 
 30. A child wearing a pink dress was run over by a wagon four years old 
 and terribly injured. 
 
 31. If 18 eggs cost 18 cents a dozen, one egg costs one cent. 
 
 32. K 3 cats catch 3 rats in 3 minutes, one cat will catch one rat in one 
 minute. 
 
 33. If 3 men standing on a mountain can see 9 miles, one man can see 
 one-third of 9 miles or 3 miles. 
 
 34. If a calf weighs 75 pounds standing on 3 legs, it will weigh 100 pounds 
 while standing on four legs. 
 
 35. Moses drove the animals into the ark two by two. 
 
 36. Americus discovered America in 1492. 
 
 37. Thomas Jefferson wrote Franklin's autobiography. 
 
 38. Samuel F. B. Morse invented the wireless telegraph. 
 
 39. Robert Fulton invented the steam engine. 
 
 40. George Washington wrote the Declaration of Independence. 
 
 EMPLOYMENT STANDARDS 
 
 Suggestions that may help you 
 
 1. Do not apply for a position you cannot fill. 
 
 2. Do not answer an advertisement if you don't fit the requirements. 
 
 3. Don't say you are better than you know you are. 
 
 4. Don't lie about your age or about anything else. 
 
 5. Do not fail to obey instructions. 
 
 6. Do not hesitate in answering questions. 
 
 7. Do not ask unnecessary questions. 
 
 8. Do not fail to be polite. 
 
 9. Do not fail to be clean and neat in appearance. 
 
 10. Don't say: "I feel that I am capable." 
 
 11. Don't waste words on unimportant details. 
 
 12. Don't fail to tell what you can do — and then stop. 
 
 13. Don't fail to answer all the questions in the advertisement. 
 
 14. Don't have someone write your letter for you. 
 
 15. Do not make any mistakes in spelling and punctuation. 
 
 16. Do not use worn-out forms of expression. 
 
 17. Do not make mistakes in the mechanical construction. 
 
 18. Do not boast or cringe. 
 
 19. Do not be afraid to ask what your services are worth. 
 
 20. Don't sign your name with the typewriter. 
 
224 OFFICE TRAINING AND STANDARDS 
 
 21. Don't use the typewriter if it is necessary for your prospective em- 
 ployer to see your handwriting. 
 
 22. Don't use fancy letter paper. 
 
 23. Don't use hotel paper or the letterhead of your last employer. 
 
 24. Don't send a letter that is soiled or that contains erasures. 
 
 25. Don't fail to fold your letter properly. 
 
 26. Never forget to look pleasant and be cheerful. 
 
 27. Never look for the easy job or "soft snap"; it doesn't lead anywhere. 
 
 28. Never forget that you learn to climb mountains by climbing. 
 
 29. Never forget that hard work is a game you can enjoy. 
 
 30. Never forget that you can do something well if you really want to 
 do it and know how. 
 
 31. Never forget that what you do, counts for more than what you can do. 
 
 32. Never forget that what you are, means more to you than what you do. 
 
 33. Is it your fault or the employment manager's if you don't get the 
 position for which you apply? 
 
 34. Is it better to be able to do a number of things fairly well or one thing 
 exceedingly well? 
 
 35. What would you think of greatest importance in preparing yourself 
 for an office position? 
 
 36. Suppose you could write 100 words a minute on the typewriter but 
 your application blank revealed an untruth, do you think you would get the job? 
 
 37. Suppose you were interested in your work, accurate and rapid in 
 execution, but talked outside about the secrets of the office; how long would 
 you hold your job? 
 
 38. How would neatness, accuracy, speed, and perseverance as a book- 
 keeper compare with trustworthiness? 
 
 39. How would ability, experience, and initiative as a stenographer com- 
 pare with reliability? 
 
 40. Would an employer keep experienced and capable help who did not 
 have good health? 
 
 41. Would an employer keep a superior stenographer who was careless 
 and slovenly in appearance? 
 
 42. Would an employer keep a clerk who had ability and perseverance 
 if he was grouchy or impolite? 
 
 EMPLOYMENT STANDARDS 
 
 Getting a bond 
 In addition to the questions asked applicants for a position, the surety 
 companies will ask you for information that is decidedly personal, before they 
 will guarantee your honesty. 
 
 1. Give your name, age, residence, and a full personal description of 
 yourself. 
 
 2. What is the nature of the business carried on by your employer? 
 
 3. How long have you been in the service of your present employer? 
 
EMPLOYMENT 225 
 
 4. How long have you been in the position for which the bond is required? 
 
 5. Who will pay the premium for this bond? 
 
 6. If you have ever furnished any other bond, why was it discontinued? 
 
 7. Has a loss ever been paid on your bond? 
 
 8. What salary will you receive? 
 
 9. Are you responsible for any losses occasioned by bad credits? 
 
 10. If you own any real estate, where is it located and what is its value? 
 
 11. If you own any personal property, of what does it consist? 
 
 12. Is there any incumbrance on your property? If so, how much? 
 
 13. What other indebtedness have you? 
 
 14. How much property do your parents own? 
 
 15. How many persons are dependent on you for support? 
 
 16. If your life is insured, to whom is the policy payable? 
 
 17. Were you ever in business on your own account? 
 
 18. What were your reasons for discontinuing your business? 
 
 19. Did you ever make an assignment for the benefit of your creditors? 
 
 20. Do you occasionally invest in stocks, grain, oil, or real estate? 
 
 21. When and by whom were your accounts last examined? 
 
 22. If you have ever been discharged from any position, state why. 
 
 23. Where and when were you born? 
 
 24. If you were foreign-born, how long have you been a resident of the 
 United States of America? 
 
 25. If you have been naturalized, give the date, the place, and the court. 
 
 26. Of what country are you a citizen if you are not naturalized? 
 
 27. Do you ever use alcoholic liquors? Did you ever use them to excess? 
 If so, when? 
 
 28. Give the names and addresses of your employers for the past two years. 
 
 29. Give the names and addresses of three of your school teachers to whom 
 we can refer. 
 
 30. Give names and addresses of three persons, not relatives, to whom we 
 can refer, 
 
 EMPLOYMENT STANDARDS 
 
 What the bonding companies want to know about you 
 On page 226 are some of the questions that a surety company will ask 
 your instructors, your employer, and your references. There is a reason for 
 asking each question. How do you think a truthful answer to each one would 
 influence the bonding company in case you were to be promoted to a position 
 of trust and were required to furnish a bond? 
 
 A large New York surety company says: "This form must be returned to 
 the home office of the company before any bond will be issued. As we depend 
 largely upon an applicant's record at school and with his former employer for 
 an estimate of his general worthiness of guarantee, we would thank you for 
 answers to all questions asked, assuring you that any information given us 
 will be treated as strictly confidential, and will be used by us solely in judging 
 the risk." 
 
226 OFFICE TRAINING AND STANDARDS 
 
 1. How long was the applicant in attendance? 
 
 2. Do your records show punctuality in attendance? 
 
 3. Do your records show good deportment? 
 
 4. Did he give good attention to his studies? 
 
 5. Was he a student of ability? 
 
 6. Was he known to have any bad habits? 
 
 7. Were his companions favorable associates? 
 
 8. Was he ever known to bet or gamble? 
 
 9. Was he addicted to the use of any liquor, drug, or opiate? 
 
 10. Was he ever fond of speculation? 
 
 11. Have you ever known or heard of any dishonorable action? 
 
 12. Was he good-natured or irritable? 
 
 13. Was he level-headed or erratic? 
 
 14. Was he careful or careless about his work? 
 
 15. Was he honest and truthful? 
 
 16. Was he a willing worker? 
 
 17. Was he careful or careless about his personal appearance? 
 
 18. Was he afraid of long hours? 
 
 19. Did he generally try to give satisfaction? 
 
 20. From your acquaintance with him and his antecedents, do you 
 regard him as entirely trustworthy? 
 
 21. If ever in your employ, what objection, if any, would you have to 
 employing him again? 
 
 22. What position did he occupy in your service? 
 
 23. Did his duties embrace the handling of cash? 
 
 24. Did he always make prompt and correct settlement? 
 
 25. For what reason did he leave your service? 
 
 26. Was he in debt to you at the time he left your service? 
 
 27. How long have you known the applicant? 
 
 28. Why is bond now wanted on his behalf? 
 
 29. What will be the title of the applicant's position? 
 
 30. How much is his salary and when will it be paid? 
 
 31. What is the largest amount of cash he will be permitted to control 
 at one time? 
 
 32. State whether applicant is permitted to indorse checks drawn to 
 your order. 
 
 33. Can he sign checks without the countersignature of some other person? 
 
 34. What means will you use to ascertain whether his accounts are correct? 
 
 35. How often will his accounts and books be audited? 
 
 36. Has he ever been short in his accounts with you? 
 
 EMPLOYMENT STANDARDS 
 
 Getting a job 
 Here are some of the questions that must be answered by applicants for a 
 position. They were taken from the application blanks of several different 
 
EMPLOYMENT 227 
 
 firms. Why do you suppose that any company would care to know the answer 
 to each of these questions? Do you think you could answer them satisfactorily? 
 
 1. Give your name, age, height, weight, the color of your hair and eyes, 
 your complexion, and nationality. 
 
 2. What schooling have you had? 
 
 3. What school did you last attend? 
 
 4. How long has it been since you left school? 
 
 5. Why did you stop school when you did? 
 
 6. Why did you leave your last position? 
 
 7. If you are now employed why do you wish to change? 
 
 8. Do you live with your parents? 
 
 9. Have you anyone dependent on you? 
 
 10. Do you attend church? 
 
 11. Are you addicted to the use of tobacco, liquor, or opiates? 
 
 12. Is your health good? 
 
 13. Do you have any defect of sight, hearing, speech, or limb? 
 
 14. What are your favorite forms of recreation? 
 
 15. To what club, union, or society do you belong? 
 
 16. Have you done any studying since leaving school? If so, what? 
 
 17. Have you ever been discharged? Give full particulars. 
 
 18. Have you ever been charged with being in arrears in any position? 
 
 19. Did you ever give a surety bond? 
 
 20. Would you be willing to do so, if required? 
 
 21. Are you financially interested in any business? 
 
 22. Have you any income aside from your salary? 
 
 23. To what extent have you engaged in speculation? 
 
 24. To what extent are you in debt? 
 
 25. Do you carry any life insurance? 
 
 26. Do you carry any accident insurance? 
 
 27. Have you ever been involved in any lawsuits? 
 
 28. Do you own any real estate? 
 
 29. Have you a savings bank account? 
 
 30. If married, give the name and address of your wife or husband. 
 
 31. Give the name and address of your parents, if living. 
 
 32. If you are not married and your parents are not living, give the names 
 and addresses of your nearest relatives. 
 
 33. Are you subject to dizziness or fainting spells? 
 
 34. What long or serious sickness have you had? 
 
 35. Have you ever been injured? If so, to what extent? 
 
 36. Were you ever operated on? If so, for what? 
 
 37. What languages do j^ou speak or write? 
 
 38. Are you good at figures? 
 
 39. What kind of work do you like best? 
 
 40. What work do you think you are best qualified to do? 
 
 41. Have you ever been expelled from school? 
 
 42. Give the names and addresses of your last three employers. 
 
228 OFFICE TRAINING AND STANDARDS 
 
 43. Give the names and addresses of three persons, not relatives or em- 
 ployers, who can certify as to your character. 
 
 44. What leads you to make this application and why do you think you 
 could succeed in this business? 
 
 45. If 3'ou subscribe regularly for some magazines, state which ones. 
 
 46. Name some book of fiction, travel, science, or business which you 
 have read and liked. 
 
 47. What newspapers do you read, and which sections of these papers 
 interest you most? 
 
 48. Do you belong to any athletic club or association? 
 
 49. Do you engage regularly in any athletic sports? If so, which ones? 
 
 50. Do you have any hobby, such as music, painting, or drawing? 
 
 STANDARD QUESTIONS 
 
 Getting a bond 
 
 1. In addition to the questions the bonding companies ask, they will 
 also want to know the names and residence of j^our parents or nearest relatives. 
 Why? 
 
 2. Would they prefer to have your relatives live in the United States or 
 in a foreign country? Why? 
 
 3. Why do they want to know how much you are in debt? 
 
 4. Why do they want to know the color of your hair, beard, eyes, and 
 complexion? 
 
 5. Does it make any difference to them about your size and weight? 
 Why or why not? 
 
 6. Why do they always insist on knowing the names and addresses of 
 your former employers? 
 
 7. Do they place much dependence on your school record? Why or 
 why not? 
 
 8. Would they pay much attention to the report from a reference who 
 knew you only slightly? Why or why not? 
 
 9. Why do they want to know about the way your employer conducts 
 his business? 
 
 10. If their premiums are paid promptly does it make any difference 
 about the amount of your salary or income? Why or why not? 
 
CHAPTER XV 
 
 PERSONALITY IN BUSINESS 
 
 BUSINESS is a game, and those who would win must pay 
 the price. You cannot ''play the game" unless you know 
 the rules, and apply them. 
 Where shall I start? At the bottom. All big men started at 
 the bottom; that's where everything that is worth while starts. 
 The only way to build a sohd, substantial foundation is to begin 
 at the bottom and work up; and the speed with which you 
 climb depends entirely on yourself. 
 
 How to play the game. If you have mastered the lessons 
 in this volume you have made a start; you are ready for the next 
 step and that next step is to apply to your daily work the prin- 
 ciples you have learned here. The road before you is not an easy 
 one; it is no road for a shirker; hard work hes at every step of 
 the way, especially at the start. But you can lighten the load 
 considerably and make progress faster and enjoy yourself as 
 well if you will always keep in mind this one suggestion: 
 
 Throw your whole soul into your work; make a game out 
 of it; and "get into the game." 
 
 What others have done you can do. You will find help 
 and inspiration from knowing how other men became successful. 
 If you can learn the methods used by these men to get ahead, 
 you can use these same methods to get ahead yourself; it requires 
 only determination and application. 
 
 Howard Elliott, president of the Northern Pacific Railroad, 
 says: 
 
 "If you would increase your power, you must know yourself 
 through self-analysis; and having become acquainted with the 
 quahties possessed by you, you must so apply your qualities, 
 your knowledge of human nature, and your knowledge of your 
 
 229 
 
230 OFFICE TRAINING AND STANDARDS 
 
 business, that you will create in the minds of those with whom 
 you deal or come in contact the effects of favorable attention, 
 interest, desire, action, confidence, and satisfaction." 
 
 Frank A. Vanderlip, president of the National City Bank of 
 New York, says: 
 
 "A man's prospects are better if he had a humble start and 
 worked his way up. Conquering adversity begets strength. He 
 must be a good team-worker — this is important. He must be 
 more concerned in getting a thing done than in getting credit 
 for it. Finally in all things a man must have common sense, 
 horse sense, gumption — call it what you will." 
 
 How a railroad president started. Daniel Willard began 
 raiboading as a track laborer and is now president of the Balti- 
 more and Ohio Railroad. His philosophy of "getting on" is: 
 
 "I have always tried in every position to suit my employer, 
 to make myself as useful as I knew how, never bothering about 
 the number of hours I put in if there were things that needed 
 to be done. I have always been an early riser. It is well to read 
 up everything within reach about your business; this not only 
 improves your knowledge, your usefulness, and your fitness for 
 more responsible work, but it invests your work with much 
 more interest. 
 
 "I had no special advantages. I had no superior education, 
 no unusual mental gifts, no physical advantages, no influential 
 friends, no money. I worked my way out of the rut by deter- 
 mination to keep right on doing the best I knew how to fill my 
 job, plus, and losing no opportunity to increase my fitness for 
 my job." 
 
 From a dollar a day to a million a year. Charles M. 
 Schwab, chairman of the Bethlehem Steel Corporation, began 
 work in the steel business at a dollar a day and now receives a 
 salary of approximately $3,000 a day. Mr. Schwab says: 
 
 "The prevailing idea about genius is all nonsense. I have 
 found that the surest way to qualify for the job just ahead is 
 to work a little harder than anyone else on the job you're holding 
 down. To my mind, the best investment a young man starting 
 out in business can possibly make is to give all his time, all his 
 energies to work — just plain, hard work. The captains of in- 
 
FIGURE 76: Miss Nellie M. Scott, FIGURE 77: Rear Admiral Samuel 
 president of the Bantam Ball Bearing McGowan believes that offices, like ships, 
 Company, was once a stenographer. should be "stripped for action." 
 
 FIGURE 78: Thomas E. Wilson, the FIGURE 79: Julius Rosenwald devel- 
 president of Wilson and Company, pack- oped Sears, Roebuck and Company into 
 ers, started as an office clerk. the largest mail-order house there is. 
 
 231 
 
FIGURE 80: Frank A. Vanderlip FIGURE 81 : Charles M. Schwab says: 
 worked on a farm — now he's president of "I work just for the pleasure I find in 
 perhaps the largest bank in the country. work, and in developing things." 
 
 FIGURE 82: Walter H. Cottingham 
 
 believes that enthusiasm is one of the 
 
 greatest aids to success there is. 
 
 FIGURE 83: Jud^c Ellxrt H. Gary 
 is c'lairman of the greatest industrial 
 
 organization in the country. 
 
 232 
 
PERSONALITY IN BUSINESS 233 
 
 dustry are not hunting money. They are seeking brains — 
 specialized brains — and faithful, loyal service. Brains are needed 
 to carry out the plans of those who furnish the capital." 
 
 A big man's secret of success. Judge Elbert H. Gary, 
 chairman of the United States Steel Corporation, compiled the 
 following prescription for the young man ambitious to attain 
 success: 
 
 1. He should be honest, truthful, sincere and serious 
 
 2. He should believe in and preach and practice the Golden Rule 
 
 3. He should be strong and healthy, physically and morally 
 
 4. His habits and mode of living should be temperate and clean, and his 
 companions selected with regard to their character and reputation 
 
 5. He should possess good, natural ability and a determination constantly 
 to improve his mind and memory 
 
 6. He should possess a good education, including particularly the funda- 
 mentals, such as mathematics, grammar, spelling, writing, geography, and 
 history; and also a technical education concerning the lines he proposes to 
 follow 
 
 7. He should be studious and thoughtful, keeping his mind upon a subject 
 until it is mastered 
 
 8. He should be conscientious, modest but courageous, energetic, per- 
 sistent, even-tempered, economical, faithful, and loyal to his friends and the 
 interests he represents. 
 
 We see then, that three things are essential: Study, training, 
 and hard work. Walter H. Cottingham, president of the Sherwin- 
 WilUams Company, adds a fourth — enthusiasm. Here's the way 
 he puts it: 
 
 "Knowledge begets confidence, confidence begets enthusiasm, 
 and enthusiasm conquers the world." This is the motto of 
 Sherwin-WilHams' salesmen all over the world. Perhaps you 
 might find it worth memorizing. 
 
 What happened to a clock gazer. Two young men grad- 
 uated from the same school under similar conditions, with 
 practically the same educational qualifications. They were 
 stenographers and began work in the same estabUshment at 
 $40 a month. 
 
 In three years one man was getting $60 a month and was a 
 good stenographer, but he was not likely to be promoted agam 
 soon. The other one was a manager at $200 a month and was 
 in line for further promotion. 
 
Five Principles of Effective Work 
 
 ^^ Plan \^ 
 
 ^^^^Schedule\^ 
 
 /^Execute \. 
 
 ^/Measure \. 
 
 ^/ Reward \^^^ 
 
 To plan rigMly you 
 
 The work must be 
 
 It must then be 
 
 The work accom- 
 
 If your work is accom- 
 
 must know: 
 
 scheduled 
 
 executed: 
 
 plished must be 
 measured: 
 
 plished effectively 
 you should be 
 
 I What work is to 
 
 A schedule to be 
 
 1 Skilfully 
 
 
 rewarded with: 
 
 be done 
 
 effective must be: 
 
 
 1 As to your 
 
 
 
 
 2 Accurately 
 
 potentiality 
 
 1 Good working 
 
 Z How It IS to be 
 
 1 Definite 
 
 
 
 conditions 
 
 done 
 
 
 3 Rapidly 
 
 2 As to your past 
 
 
 
 
 
 records 
 
 2 Health 
 
 3 Wtien it is to be 
 
 other scheAjles 
 
 4 Without unneces- 
 
 
 
 done 
 
 3 Difficult to 
 
 sary effort 
 
 3 As to the past re- 
 cords of others 
 
 3 Happiness 
 
 4 Where it is to be 
 
 accomplish, but 
 
 5 Without unneces- 
 
 
 4 Self-development 
 
 done 
 
 4 Possible to 
 
 sary delay 
 
 4 As to quantity 
 
 5 Money 
 
 5 How fast it can 
 
 accomplish 
 
 
 5 As to quality 
 
 
 be done 
 
 5 Rigidly kept 
 
 
 
 
 FIGURE 84: If you model all your work on these five basic principles, you will 
 be more than likely to do all your work effectively. And if your work is effective, 
 then you may expect your reward — health, happiness, self-development, and money 
 
 Save the Minutes! Time is the Most Valuable thing in 
 
 the world!! 
 
 
 
 Saving 
 
 Means 
 
 Or 
 
 a saving in the wage bill each year of the amounts 
 shown below, according to the hourly rate 
 
 The following table 
 shows the amoutit that 
 
 ''„ of 
 Time 
 
 Mm. 
 per 
 Hour 
 
 Saving 
 Hours 
 
 
 Per Year 
 
 5<- 
 
 Wt 
 
 I5r 
 
 20f 
 
 25r 
 
 30f 
 
 35f 
 
 40f 
 
 45r 
 
 50c 
 
 .016 
 
 1 
 
 40 
 
 $2 
 
 S4 
 
 S6 
 
 S8 
 
 SIO 
 
 SI2 
 
 S14 
 
 S16 
 
 )18 
 
 J20 
 
 
 
 2 
 
 80 
 
 
 8 
 
 12 
 
 16 
 
 20 
 
 24 
 
 28 
 
 32 
 
 36 
 
 40 
 
 can be saved each year 
 
 .06 
 
 3 
 
 120 
 
 
 12 
 
 18 
 
 24 
 
 30 
 
 36 
 
 42 
 
 48 
 
 54 
 
 60 
 
 
 .066 
 
 
 160 
 
 
 16 
 
 24 
 
 
 40 
 
 48 
 
 56 
 
 64 
 
 72 
 
 80 
 
 In wages by shortening 
 
 .082 
 
 5 
 
 200 
 
 
 20 
 
 30 
 
 40 
 
 50 
 
 60 
 
 70 
 
 
 90 
 
 100 
 
 the labor time required 
 
 .10 
 
 6 
 
 7 
 
 240 
 280 
 
 
 24 
 28 
 
 36 
 42 
 
 48 
 
 60 
 70 
 
 72 
 84 
 
 84 
 
 112 
 
 108 
 126 
 
 120 
 
 to perform an operation. 
 
 .133 
 IS 
 
 8 
 9 
 
 320 
 360 
 
 
 32 
 36 
 
 48 
 
 54 
 
 64 
 72 
 
 80 
 90 
 
 96 
 
 112 
 126 
 
 128 
 
 162 
 
 160 
 
 
 
 10 
 
 400 
 
 20 
 
 
 60 
 
 80 
 
 100 
 
 120 
 
 140 
 
 160 
 
 160 
 
 2O0 
 
 To save one minute 
 
 183 
 
 
 440 
 
 22 
 
 44 
 
 66 
 
 88 
 
 no 
 
 132 
 
 154 
 
 176 
 
 198 
 
 220 
 
 
 .120 
 
 12 
 
 4«0 
 
 24 
 
 48 
 
 
 96 
 
 
 
 168 
 
 192 
 
 216 
 
 240 
 
 in each hour worked, 
 
 .216 
 
 13 
 
 520 
 
 26 
 
 52 
 
 78 
 
 104 
 
 130 
 
 106 
 
 182 
 
 208 
 
 234 
 
 260 
 
 
 .233 
 
 
 560 
 
 28 
 
 56 
 
 84 
 
 
 140 
 
 
 196 
 
 
 252 
 
 280 
 
 means a saving of 1.67o 
 
 .25 
 
 15 
 
 600 
 
 30 
 
 
 90 
 
 120 
 
 
 180 
 
 210 
 
 240 
 
 
 300 
 
 In the wage bill. In one 
 
 .266 
 .283 
 
 16 
 17 
 
 640 
 680 
 
 32 
 34 
 
 64 
 68 
 
 96 
 
 128 
 
 160 
 (70 
 
 192 
 204 
 
 224 
 238 
 
 256 
 272 
 
 288 
 306 
 
 320 
 340 
 
 year, one minute ineach 
 
 .30 
 ,316 
 
 18 
 19 
 
 720 
 760 
 
 36 
 38 
 
 76 
 
 108 
 
 152 
 
 180 
 190 
 
 216 
 
 2S2 
 266 
 
 288 
 
 324 
 342 
 
 360 
 380 
 
 hour saved means a 
 
 .333 
 350 
 
 20 
 21 
 
 800 
 840 
 
 40 
 42 
 
 80 
 84 
 
 120 
 126 
 
 168 
 
 200 
 210 
 
 240 
 252 
 
 280 
 294 
 
 320 
 336 
 
 360 
 378 
 
 420 
 
 saving of 40 hours. 
 
 .366 
 
 22 
 23 
 
 880 
 920 
 
 
 88 
 
 138 
 
 176 
 184 
 
 220 
 230 
 
 276 
 
 308 
 322 
 
 352 
 368 
 
 396 
 
 440 
 460 
 
 nearly one week. 
 
 .40 
 
 24 
 
 960 
 
 48 
 
 96 
 
 144 
 
 192 
 
 240 
 
 288 
 
 336 
 
 386 
 
 432 
 
 480 
 
 
 
 
 
 50 
 
 100 
 
 
 200 
 
 250 
 
 300 
 
 350 
 
 400 
 
 450 
 
 500 
 
 
 .433 
 
 26 
 
 1040 
 
 52 
 
 
 156 
 
 208 
 
 260 
 
 312 
 
 
 416 
 
 
 520 
 
 Trueefficiencymeans 
 
 ,45 
 
 
 loao 
 
 54 
 
 108 
 
 162 
 
 216 
 
 270 
 
 
 378 
 
 432 
 
 486 
 
 540 
 
 making every MINUTE 
 
 466 
 ,483 
 
 29 
 
 1120 
 1160 
 
 58 
 
 112 
 
 168 
 
 224 
 232 
 
 280 
 290 
 
 336 
 348 
 
 392 
 406 
 
 464 
 
 504 
 522 
 
 560 
 580 
 
 count. 
 
 ,50 
 
 
 1200 
 
 60 
 
 120 
 
 180 
 
 240 
 
 300 
 
 360 
 
 420 
 
 480 
 
 540 
 
 600 
 
 This table Is figu 
 
 ed on 
 
 the basis of an 8 hou 
 
 r day 
 
 300 workin 
 
 1 days 
 
 
 
 in tf 
 
 e year. 2'100 working h 
 
 ours. 
 
 
 
 FIGURE 85: You've probably heard that time is money, but perhaps you've 
 never realized just how much money. This table shows how many dollars would 
 be saved in a year if one minute were saved every hour and that minute well spent- 
 
 234 
 
PERSONALITY IN BUSINESS 235 
 
 The employment manager gave me the secret of the differ- 
 ence in their progress. The first was a "clock gazer," not inter- 
 ested in his work, and never did anything more than he was 
 required to do. The other one was always interested in his work, 
 and was never afraid to make improvements, or suggest them 
 at least, as well as to go ahead and do things without being told. 
 He was always looking for a harder job and trying to make 
 himself more valuable to the company. That, after all, is really 
 all there is to initiative — being a "self-starter," instead of wait- 
 ing for somebody else to "turn the crank" or to push the button. 
 The man with initiative does not have to be pushed. 
 
 Some men never get up until they are called. If no one 
 happens to apply the stimulus they are gunpowder without the 
 spark, dough without the yeast, an engine without the steam. 
 
 What initiative means. An office boy in a New York 
 concern was assigned to the station just outside the president's 
 door. He hadn't been on the job long, but he understood his 
 duties. The president from tune to time would tell him things 
 to do. He was to do them. That was all there was to it, as far 
 as he could see. 
 
 One day the president called him in and said: "There's a 
 baby buggy downstairs. I wish you'd take it out to my house." 
 
 Was he an ordinary new office boy? Did he ask any questions? 
 He was not. He did not. 
 
 He left the room, got the address from a telephone book, 
 then wheeled the baby buggy, a big one, out into the street and 
 down into a subway station. There he learned the subway 
 wouldn't carry it. He dragged it back into the street and up 
 into an elevated station. The L-road wouldn't carry it, either. 
 He tried to get on a surface car, with the same luck. 
 
 He considered walking; but it was seven miles, and the baby 
 might be waiting. Also, the president might be needing him. 
 
 He called a taxicab, and piled the baby buggy aboard. At 
 the house, he lacked money enough to pay the taxi fare, and so 
 he made a round trip of it for himself. 
 
 He expected to be fired when he told the president about the 
 $8 fare waiting outside. Instead, his salary was raised. This is 
 a striking example of initiative. 
 
236 OFFICE TRAINING AND STANDARDS 
 
 PERSONALITY STANDARDS 
 Are your chances any better than theirs? 
 
 1. Henry Clay began his career as a clerk in a lawyer's office. 
 
 2. Daniel Webster worked his way through college by teaching school. 
 
 3. Senator Clark, the multi-millionaire copper magnate, at one time sold 
 maps for a living. 
 
 4. George B. Cortelyou, president of the Consolidated Gas Company of 
 New York, began life as a civil-service stenographer. 
 
 5. Benjamin Franklin was the son of a tallow chandler and did without 
 meat in order to buy himself books. 
 
 6. John Adams was the son of a poor farmer. 
 
 7. The father of Shakespeare couldn't spell or write his own name. 
 
 8. George W. Perkins, a New York financier, was a stenographer in his 
 younger days. 
 
 9. Robert Burns was the son of a bankrupt. 
 
 10. James A. Garfield was a boy of all work; he was too poor even to have 
 a trade. 
 
 11. Ulysses S. Grant was a tanner by trade. 
 
 12. Abraham Lincoln was a boatman and rail splitter. 
 
 13. Edward Bok, editor of the Ladies' Home Journal, was once a stenog- 
 rapher. 
 
 14. James J. Hill, the great railroad builder, began work as a section hand. 
 
 15. John Milton was blind when he wrote "Paradise Lost." 
 
 16. Frank A. Vanderlip, president of the National City Bank of New 
 York, was once a stenographer. 
 
 17. Andrew Carnegie, who has given away more millions than any other 
 man, began business without a dollar. 
 
 18. A prince is born to be a king and he can never rise above his station 
 because he thinks he is already at the top. 
 
 PERSONALITY STANDARDS 
 
 Business maxims that have helped others 
 
 1. The only helpless people in the world are the lazy. 
 
 2. The wise man learns by experience, but fools never learn. 
 
 3. Procrastination is the thief of time. 
 
 4. Time is money. Thou shalt not steal. 
 
 5. Have a time for everything and everything in its time. 
 
 6. "By and by" leads to the road "never." 
 
 7. No man has any right to say he is of no account. 
 
 8. He who moves not forward goes backward. 
 
 9. Our work counts for more than our talks. 
 
 10. Trifles make perfection but perfection is no trifle. 
 
 11. One today is worth two tomorrows. 
 
 12. The deepest rivers flow with the least sound. 
 
 13. No man can contradict his own deed. 
 
PERSONALITY IN BUSINESS 237 
 
 14. He who comes into court must come with clean hands. 
 
 15. Many promises lessen confidence. 
 
 16. No one can be profited by his own wrongs. 
 
 17. He that wrongs his friend wrongs himself more. 
 
 18. The bigger the work the greater the joy in doing it. 
 
 19. Luck consists in always being on the job. 
 
 20. It is not enough to be good— be good for something. 
 
 21. Concentration is the secret of strength. 
 
 22. A damaged reputation is hard to repair. 
 
 23. God helps them who help themselves. 
 
 24. Diligence is the mother of good luck. 
 
 25. • A penny saved is a penny earned. 
 
 26. He is poor whose expense exceeds his income. 
 
 27. Better go to bed without supper than to rise with debts. 
 
 28. See'st thou a man diligent in his business; he shall stand before kings. 
 
 29. Love not sleep lest thou come to poverty. 
 
 30. Whatsoever ye would that men should do to you, do ye even so to them. 
 
 31. Don't let your wishbone take the place of your backbone. 
 
 32. Folks who never do any more than they get paid for never get paid 
 for any more than they do. 
 
 33. A wise man will make more opportunities than he finds. 
 
 34. It may be a httle farther around the corner of a square deal, but the 
 road is better. 
 
 35. To rest content with results achieved is the first sign of business decay. 
 
 36. The talent of success is doing what you can well and doing well what- 
 ever you can. 
 
 37. Success does not consist in never making blunders, but in never makmg 
 the same one a second time. 
 
 38. Even the fool when he holdeth his peace is counted wise. 
 
 39. I know what pleasure is, for I have done good work. 
 
 40. The only man who never makes a mistake is the man who never does 
 anything. 
 
 41. Our doubts are traitors and make us lose the good we oft might win 
 by fearing to attempt. 
 
 42. Blessed is the man who has found his work. 
 
 43. Talk less and listen more. 
 
 44. When in doubt mind your own business. 
 
 45. Failure is only for those who think failure. 
 
 46. Plow deep while sluggards sleep, and you'll have corn to sell and keep. 
 
 47. Today is short. Yesterday is gone. Tomorrow may never come. If 
 you have anything to do, get busy. 
 
 48. Getting things done is largely a matter of getting things started. 
 
 49. Anything that is worth doing is worth doing well. 
 
 50. The world generally gives its admiration not to the man who does 
 what nobody else ever attempts to do, but the man who does best what multi- 
 tudes do well. 
 
238 OFFICE TRAINING AND STANDARDS 
 
 STANDARD QUESTIONS 
 
 "WHiat are your chances for success? 
 
 1. May a poor merchant succeed? 
 
 2. Can a poor doctor succeed? 
 
 3. Must a poor preacher succeed? 
 
 4. Might a poor teacher succeed? 
 
 5. Could a poor lawyer succeed? 
 
 6. Would a poor banker succeed? 
 
 7. Should a poor workman succeed? 
 
 8. In each of the first seven questions, substitute the word "good" for 
 the word "poor" and see if the answers would be changed. 
 
 9. Substitute the word "incompetent" for the word "poor." How are 
 your answers affected? 
 
 10. Substitute the words "hard working" for the word "poor." How are 
 your answers affected? 
 
 STANDARD EXERCISES 
 
 The application of business maxims 
 
 1. Pick out 10 maxims which appeal to you particularly. Take each 
 of the 10 maxims you select, and tell why you selected it, what its meaning is, 
 and how you are going to use it to help you. 
 
 2. Explain the meaning of the saying " Proscrastination is the thief of 
 time." 
 
 3. How would you carry out the maxim "Have a time for everything 
 and everything in its time"? 
 
 4. Do you believe that " No man has any right to say he is of no account? " 
 Why or why not? 
 
 5. Wliat is meant by "He who moves not forward moves backward"? 
 
 6. When would you use the saying "The bigger the work the greater the 
 joy in doing it"? 
 
 7. What is luck? 
 
 8- What did one writer say was the secret of strength? 
 9. Explain the statement that "Folks who never do any more than they 
 get paid for never get paid for anj"^ more than they do." 
 
 10. Do you believe that "To rest content with results achieved is the 
 first sign of business decay"? If so, why? If not, why not? 
 
 11. Do you agree that "The only man who never makes a mistake is the 
 man who never does anything"? 
 
 12. What do you think is the meaning of the quotation which begins, 
 "Our doubts are traitors" — 
 
 13. Explain what is meant by " Failure is only for those who think failure." 
 
 14. What did a great man say about sleep? 
 
 15. What is the way to get things done? 
 
CHAPTER XVI 
 
 STANDARDS AND TESTS FOR MEASURING 
 YOUR PERSONAL EFFICIENCY 
 
 THE first thing we ought to know about standards is, of 
 course, what a standard is. Now there are all sorts of 
 standards, standards of size, standards of quality, standards 
 of quantity, standards of speed, standards of height, and many 
 more. But a standard, of whatever sort it may be, always has 
 this characteristic— it is something by which we can measure 
 something else. 
 
 One kind of standard. Perhaps you may have entered a 
 contest at some time, a race, for instance. Perhaps there was a 
 certain record you were out to beat, say 8^ minutes. That 
 was the standard time by which you were to judge your own 
 running and measure your success. If you finished in 8 minutes, 
 you were above the standard, but if it took you 8V^, you were 
 15 seconds below the standard. In that case the standard was 
 a standard of speed. 
 
 Or say you are building a fence four feet high. You have 
 boards of various lengths, some six feet long, some three feet, 
 some four. Your standard is four feet — you measure all the 
 boards by that standard and choose only those that equal the 
 standard. Here your standard is a standard of height. 
 
 What standard methods are. Then there are also stand- 
 ards of method, standard ways of doing certain things. For 
 instance, when we were studying about the correspondence de- 
 partment, we learned the best way to fold letters to fit window 
 envelops. That method is the standard, the best method of 
 folding letters that has been discovered up to this time. Of 
 course, if some thoughtful person works out a better way, his 
 method will probably become the standard. 
 
 239 
 
240 OFFICE TRAINING AND STANDARDS 
 
 A standard method can be found for every operation in the 
 office as well as in our daily Hves outside of business. Whatever 
 you are doing, there is one way of doing it that is best — best 
 because the results are of the highest quality and because it 
 takes less time and effort. 
 
 When you fu'st tried to learn to skate, you probably have 
 a vivid remembrance of how difficult it was and how you 
 did httle but stumble along— until you suddenly fell into the 
 proper stroke; from that time on your skating improved con- 
 tinually and you began to go faster and faster. It is the same 
 way with playing the piano. Until you acquire the skill, the 
 best method, what is called technique, your playing is amateur- 
 ish. But when you have once reached the standard, you are 
 beginning to be a real musician. 
 
 How the standard is set. Whatever you are doing in the 
 office — if it is only addressing envelops — there is one method that 
 will yield the best results, a standard method. The question 
 now is — how to find the standard. The first step is to analyze 
 the job, whatever it may be. Take the window envelop again. 
 The expert who set the standard may have spent a long time in 
 the mailing room before he drew up his plans. He watched girls 
 folding letters, each one according to her own ideas. Some were 
 fairly speedy; others accomplished about half as much as the 
 fastest worker. He noticed that even the fastest worker went 
 through unnecessary motions. 
 
 Finally he worked out a method which combined the best 
 points of all the workers and omitted useless motions. This 
 method then became the standard. He even took photographs 
 of a girl folding letters, and these were given to the other girls 
 in order that they might learn the standard method. Now they 
 are all working according to the same plan. 
 
 Standard practice instructions. As soon as the standard 
 method has been determined, instructions for performing the 
 operation in the standard way are written down. These are 
 called standard practice instructions. A great many concerns 
 today have standard practice books or office manuals. These 
 books contain the standard practice instructions for carrying 
 on all the work of the office. 
 
PERSONAL STANDARDS 241 
 
 There are very good reasons for having all standard practice 
 instructions written out. Written instructions are one of the 
 best possible methods of teaching new employees their work. 
 If there are no written instructions, and an old employee leaves, 
 the manager may find that there is a vacancy to be filled and 
 that no one in the office is famihar with the work. If, on the 
 other hand, there are standard practice instructions for every 
 job in the office, the manager can turn them over to the new 
 employee with perhaps a word of advice and know that the 
 employee is receiving accurate instructions. 
 
 Standards of accomplishment. Many concerns, in addi- 
 tion to adopting standard methods, set a standard amount of 
 work to be accomphshed every day — so many letters to be 
 folded — so many square inches of typewritten matter to be typed, 
 and so on. A celluloid scale for measuring typewritten matter 
 is used for just this purpose — to measure accurately the work 
 of the typists and stenographers. Those who reach or excel the 
 standard rate of accomphshment receive more money. 
 
 How standards increase efficiency. Now we can see how 
 standards may be used to increase the efficiency of the office in 
 providing a basis for determining just what salary each em- 
 ployee is earning. It isn't fair, of course, for a worker who turns 
 out a large amount of work to be limited to the same salary as 
 her neighbor who does considerably less. And the probability 
 is that the one who is doing less work could do much better if 
 her methods were more efficient. When a standard method is 
 determined upon — when all the workers are instructed in the 
 use of the standard method — then there is no injustice in ex- 
 pecting a uniform amount and quality of work from all. 
 
 How you can use standards. You see then that a stand- 
 ard is something to measure by, something that can be used as 
 a model. The question now is — how can you yourself make use 
 of standards? The answer is so simple that you have probably 
 guessed it already. You can use standards to measure yourself, 
 measure your accompHshments, your knowledge, your accuracy, 
 your speed. And so you will learn just where you are succeeding, 
 where you are failing, which part of your work is up to the 
 standard, and which part needs improvement. 
 
242 OFFICE TRAINING AND STANDARDS 
 
 Certain tests have been devised by which you can determine 
 how nearly you measure up to the standard of accompUshment. 
 The test which follows, for instance, forms a basis for measuring 
 the quality of your memory and attention. 
 
 STANDARD TESTS 
 
 Tests for memory and attention 
 If you use the muscles of your arm they will grow strong, but if you tie 
 your arm up in a sling your muscles will grow flabby and weak, no matter how 
 much you desire to have them strong. If you do not use your mind you cannot 
 expect it to develop any more than your arm would grow strong in a sling. 
 If you wish to see what you can do in the way of mind training, practice these 
 exercises and make a record of your improvement from time to time. 
 
 1. As you walk by a show window observe as many articles as you can 
 and see how many you can recall afterward. 
 
 2. While riding in a street car observe six or more advertisements. Close 
 your eyes and see how many you can remember. 
 
 3. Whenever you meet a stranger try to associate his name, face, or some 
 striking characteristic with some known fact and remember the name as well 
 as the face by the association of ideas. It is a valuable asset in business to be 
 able to remember names and faces. 
 
 4. Have some one read to you numbers which contain six or more figures 
 and see how many figures you can repeat without a mistake. 
 
 5. Read the following three words carefully once; then close the book 
 and repeat each word: incomprehensibility, phthisic, parallelopipedon. 
 
 6. After reading the following instructions carefully close the book, and 
 follow the instructions without any error. Draw a square, a circle, and an 
 equilateral triangle, each one inch in diameter. Connect the lower left-hand 
 corner of the square with the lower right-hand corner of the triangle. If the 
 area of the circle is greater than the area of the square draw a dot in the center 
 
 of the circle. . 
 
 7. Draw a square, a rectangle, a parallelogram, and a parallelopipedon 
 and have only one figure when finished. Refer to the dictionary if you do not 
 know the meaning of the words. 
 
 8. Draw a horizontal line two inches in length and bisect it. From the 
 right extremity of the line draw a perpendicular one inch in height. Connect 
 the upper extremity of the perpendicular with the point of bisection in the 
 original line. From the left extremity of the original line drop a perpendicular 
 one inch in length. From the extremity of the last perpendicular drawn, con- 
 nect the point of bisection of the original line. Without rereading these 
 instructions, draw the figure. 
 
 What you can do with words. You will find that a good 
 grasp of words, of synonyms and antonyms and homonyms, will 
 
PERSONAL STANDARDS 243 
 
 be a valuable help to you in business as almost everywhere else. 
 If you should become a stenographer, you will have to know the 
 meanings of words, how they are spelled, and the difference in 
 meaning between words that sound alike but are spelled differ- 
 ently. Even more will you need a good vocabulary if you should 
 happen to become a correspondent. Try out your vocabulary 
 by taking this test. You should be able to finish it in 10 minutes. 
 
 STANDARD TESTS 
 
 A test of your vocabulary 
 Write a suitable synonym (similar meaning) after each word: 
 
 1. 
 
 contract 
 
 2. 
 
 amount 
 
 3. 
 
 account 
 
 4. 
 
 frequent 
 
 5. 
 
 permanent 
 
 6. 
 
 abandon 
 
 7. 
 
 efficient 
 
 8. 
 
 finish 
 
 9. 
 
 accurate 
 
 10. 
 
 condemn 
 
 11. 
 
 approve 
 
 12. 
 
 receive 
 
 Write a suitable 
 
 1. 
 
 income 
 
 2. 
 
 similar 
 
 3. 
 
 debit 
 
 4. 
 
 assets 
 
 5. 
 
 accept 
 
 6. 
 
 censure 
 
 7. 
 
 simple 
 
 8. 
 
 deficit 
 
 9. 
 
 profit 
 
 10. 
 
 reliable 
 
 11. 
 
 prompt 
 
 12. 
 
 agreement 
 
 
 Write a suita 
 
 1. 
 
 capital 
 
 2. 
 
 dun 
 
 3. 
 
 heard 
 
 4. 
 
 route 
 
 6. 
 
 rap 
 
 13. 
 
 economize 
 
 14. 
 
 exchange 
 
 15. 
 
 .sufficient 
 
 16. 
 
 customer 
 
 17. 
 
 postpone 
 
 18. 
 
 slaughter 
 
 19. 
 
 dishonest 
 
 20. 
 
 argument 
 
 21. 
 
 necessary 
 
 22. 
 
 durable 
 
 23. 
 
 discount 
 
 24. 
 
 prosper 
 
 eani 
 
 ng) after eac 
 
 13. 
 
 intelligent 
 
 14. 
 
 difficult 
 
 15. 
 
 separate 
 
 16. 
 
 diminish 
 
 17. 
 
 valuable 
 
 18. 
 
 shortage 
 
 19. 
 
 punctual 
 
 20. 
 
 sensible 
 
 21. 
 
 surety 
 
 22. 
 
 wasteful 
 
 23. 
 
 deposit 
 
 24. 
 
 bankrupt 
 
 r sound) after ea^ 
 
 6. 
 
 allowed 
 
 7. 
 
 principal 
 
 8. 
 
 canvas 
 
 9. 
 
 peel 
 
 10. 
 
 counsel 
 
244 OFFICE TRAINING AND STANDARDS 
 
 11. 
 
 seize 
 
 12. 
 
 weighed 
 
 13. 
 
 stationery 
 
 14. 
 
 steel 
 
 15. 
 
 clause 
 
 If). 
 
 straight 
 
 17. 
 
 leased 
 
 18. 
 
 currant 
 
 19. 
 
 lien 
 
 20. 
 
 medal 
 
 21. 
 
 waste 
 
 22. 
 
 bail 
 
 23. 
 
 plum 
 
 24. 
 
 loan 
 
 When errors may be costly. Even in such apparently 
 simple operations as addressing envelops, copying names, and 
 filing cards alphabetically, there is a standard of accompUshment 
 by which you can measure your work. The standard speed set 
 for the following exercise is 100 an hour on the typewriter or 250 
 an hour with a pen. However, never sacrifice accuracy to speed. 
 A record of even 400 an hour means nothing if your work is 
 untidy or inaccurate. A slight error in speUing a customer's 
 name or address may mean the loss of that customer's business. 
 
 STANDARD TESTS 
 
 Testing accuracy, speed, neatness, and punctuation 
 in copying addresses for mailing and filing 
 Copy each of these names and addresses on one side of a 3 by 5 card just 
 as you would on an envelop, punctuating properly, and abbreviating where 
 it is logical. On the other side of the card arrange the name and address in 
 the best form for filing alphabetically. Mark the exact number of minutes 
 it takes you to write all the names and addresses, stating whether you used 
 a pen or a typewriter. An easy way to keep time is to write down the time 
 when you start and again when you finish. A fair typist can address 100 or 
 more envelops an hour — addressers using a pen can do 250 an hour. 
 
 1. T B Bridges Manager Heald-Dixon College Oakland California 
 
 2. Bishop Paul Restarick Honolulu Territory of Hawaii 
 
 3. James F Smith Esquire 1786 Magnolia Avenue Denver Colorado 
 
 4. Charles V Bloomington Attorney Little Rock Arkansas 
 
 5. Mrs Margaret W Eaton 957 East 24th Street New York 
 
 6. Captain John S Moore 231 Beemis Court Omaha 
 
 7. Mr W E G Foster Manila Philippine Islands 
 
 8. George N Carter Secretary Olympia Flour Mills Olympia Washington 
 
 9. Benjamin I Wheeler President First National Bank Des Moines Iowa 
 
 10. Doctor William A Wright 141 Cambridge Place Brooklyn New York 
 
 11. Honorable Peter Williams Providence Rhode Island 
 
 12. Miss Gertrude Hunter Fond du Lac Wisconsin 
 
 13. Thomas A Cook and SOns 56 Ludgate Circus London England 
 
 14. Nathanial O Perry Senior 71S2 West Sycamore Street St Louis 
 
 15. Maurice L Bond Junior Burlington Vermont 
 
PERSONAL STANDARDS 245 
 
 16. Colonel Claude Conrad Salt Lake City Utah 
 
 17. Messrs Judd and Todd Washington District of Columbia 
 
 18. Mr Earl A White Santa Fe New Mexico 
 
 19. Reverend Matthew 2 Taylor Fort Wayne Indiana 
 
 20. Mrs W B Manson 1373 Union Street Schenectady New York 
 
 21. A P Johnson Assistant Secretary Northern Life Company Portland 
 
 22. Miss Cora A Thompson Anchorage Alaska 
 
 23. Arnold J Bates President Arrow Mining Company Reno Nevada 
 
 24. Mr Homer K Baldwin Charleston South Carolina 
 
 25. William R Edwards Postmaster El Paso Texas 
 
 26. Mr Hugh T Jones Huntington West Virginia 
 
 27. H E Parish and Sons Cumberland Maryland 
 
 28. Mr Joseph O Davis Grand Rapids Michigan 
 
 29. Mr F E Davis Care of Bach and Land Boise 
 
 30. Marshall Field and Company Chicago Illinois 
 
 31. Mr Walter C Dole East Orange New Jersey 
 
 32. Mr Oscar A Wilde Paducah Kentucky 
 
 33. Bach and Buhl Lebanon Oregon 
 
 34. Miss Kate Fronsdal Bergen Norway 
 
 35. Mr Daniel Forest Pittsburgh Pennsylvania 
 
 36. Mr Harry T Coons Richmond Virginia 
 
 37. Robert E Forbes Attorney General Hartford Connecticut 
 
 38. Miss Nina D Langdon Kobe Japan 
 
 39. Mrs Belle Hart Sheffield England 
 
 40. Right Reverend Patrick J Reilly Rector St Anthonys Church Cohasse 
 
 41. Harvey B Black Doctor of Medicine Auburn Maine 
 
 42. Mr Herman Small Birmingham Alabama 
 
 43. Lieutenant L K Moore Oklahoma City Oklahoma 
 
 44. Miss Juliah S Snow 83 Bryne Mawr Terrace Omaha Nebraska 
 
 45. Mr Lewis A Stone Nashville Tennessee 
 
 46. Albert Maxwell Civil Enginer United States Navy 
 
 47. Gordon and Company Newark Ohio 
 
 48. Mr Franklin Y Gault Phoenix Arizona 
 
 49. Mutual Life Insurance Company Daj^ton Ohio 
 
 50. The National Paper Company Atlanta Georgia 
 
 Do you know how to make figures? Almost any sort of 
 office work you do will require to a greater or less extent the 
 use of figures. It is very important, therefore, that you should 
 be accustomed to make figures rapidly, accurately, and legibly. 
 Especially if you are placed in an accounting department you 
 will find that perhaps promotion itself may at some time depend 
 on the figures you make. 
 
 There is no reason to be discouraged, however, if you feel 
 that your figures now are not up to the standard. That is what 
 
246 OFFICE TRAINING AND STANDARDS 
 
 a standard is for — to give you a goal toward which to work. 
 And if you try conscientiously to improve there is no reason why 
 you should not succeed. Practice making figures with these 
 suggestions in mind, and see if you do not notice an improvement. 
 
 PENMANSHIP STANDARDS 
 
 How to make or not make figures 
 
 1. Improve your spare moments by practicing the making of figures 
 with a muscular movement; that is, use your whole arm, not just your fingers. 
 
 2. If you wish to improve rapidly, become interested in your practice 
 and compare your work today with what you did yesterday. 
 
 3. Be sure to make all figures with the same slant you use in writing. 
 
 4. You should be able to make neat, legible figures at the average rate 
 of 60 a minute. 
 
 5. Accuracy and legibility are the first essentials in making figures. 
 
 6. Speed and neatness with an artistic appearance are commendable. 
 
 7. Observe how practical bookkeepers or clerks make their figures and 
 correct your own where you can make any improvement. 
 
 8. Here is a set of figures made by a penman for you to use as a model : 
 
 9. Observe that the figures are not all the same height. The 7 and 9 
 extend below the line and the zero is about as high as the 9, while the stem of 
 the 6 extends above the others. 
 
 10. Do not make a hook when beginning the 1 or it may look like the 7. 
 
 11. Use care in making the 2 or it will not be the same slant as the other 
 figures. Do not make it back-hand or vertical. 
 
 12. The lower part of the 3 should be twice as large as the upper part. 
 
 13. There are four things to observe in making the 4. The first stroke 
 is a short straight line and comes nearly to the base line. The second line is 
 about twice as long as the first, but is straight and parallel with the base line. 
 The third line is about the same length as the second with a slight curve but 
 practically parallel with the first line. 
 
 14. The lower part of the 5 may be made like the lower part of the 3, 
 but the button-hook or fish-hook style generally increases the speed. 
 
 15. Do not try to make the 4's or 5's without taking the pen from the 
 paper, lest your 4's look like 7's or 9's, and your 5's be taken for 3's. 
 
 16. Do not begin the 6 with a curve like the zero, nor finish with a large 
 loop at the bottom, or your figure may look like a zero. 
 
 17. Do not make any extra hooks on the 7, as it is a waste of time. 
 
 18. Do not make the 8 backward or it may look like the zero. 
 
 19. The loop of the 9 may be placed on the line, but do not extend the 
 stem so far below the line that it will interfere with other figures. 
 
PERSONAL STANDARDS 
 
 247 
 
 20. Make the zero small, round, or egg-shaped. It will not only appear 
 more artistic but will avoid confusion with the 6. 
 
 Accuracy is required in this work. The next test will 
 give you an opportunity to test your ability not only in making 
 figures but also in using them. If you work in an accounting 
 department, you will probably be asked to do some billing. In 
 that work you must have your multipUcation tables at your 
 finger tips, and be able to add columns of figures quickly and 
 correctly. The following exercise in billing furnishes a good test. 
 You should be able to do it in four minutes. Time yourself and 
 see how nearly your score reaches the standard not only of speed 
 but also of accuracy. 
 
 STANDARD TESTS 
 
 To test accuracy and speed in billing 
 
 Time — 4 minutes— allow 3 points for each correct product, and 8H points 
 for each correct total. Possible score 100. 
 Find the cost of: 
 
 240 lbs. table salt @ 2^4^. 
 
 320 lbs. granulated sugar @ 6}4i- 
 
 117 lbs. rice @ 11 1/ 
 
 125 lbs. Rio coffee @ 28ji 
 
 250 lbs. Mocha coffee ©24^5 
 
 144 lbs. dried apples @ 83^0. 
 
 SH lbs. dried beef @ 36^5 
 
 450 lbs. codfish @ GU 
 
 IHlbs. bacon @ 42(i 
 
 373/^ lbs. chocolate @ 32^ 
 
 126 lbs. Young Hyson tea @ 66^i 
 
 > 
 
 Total. 
 
 160 
 175 
 500 
 328 
 243 
 
 bu. wheat @ $1,123/^ 
 
 bu. clover seed 
 bu. timothy seed 
 
 bu. corn 
 
 bu. rye 
 
 187H bu. oats 
 
 128 4/7 bu. potatoes. . . 
 
 1833^ bu. millet 
 
 110 bu. beans 
 
 Total 
 
248 OFFICE TRAINING AND STANDARDS 
 
 256 horses at $125.00 
 
 312 mules at 166.66§ 
 
 128 wagons at 250.00 
 
 231 trucks at 333.33^ 
 
 240 automobiles at 750.00 
 
 Total 
 
 This is easier than it looks. You may also be called upon 
 to add sales slips, to subtract a customer's payment from the 
 amount he owes, to find the average cost of one article when the 
 given price is for gross lots, or to multiply the price of an article 
 by the number sold. The test which follows will perhaps help 
 to show you how well you are fitted to do that kind of work. 
 In each case the standard of attainment is 100 points in 10 
 minutes. How far above the standard can you go? 
 
 STANDARD TESTS 
 
 Fundamental processes in rapid calculation 
 Do not spend more than one minute for each group. Allow one point for 
 each individual problem correctly solved, but you may allow one point for 
 each column in addition and one point for each digit in the long-division 
 answers. A total of 100 points is the standard score. 
 
 ADDITION SUBTRACTION 
 
 Possible points 15— Standard 10 Possible points 20— Standard 10 
 
 786 947 687 798 679 5386 9256 7635 8372 9246 
 
 843 586 734 386 756 2387 3478 5697 2479 2057 
 
 956 753 695 759 835 
 
 328 679 378 834 397 
 
 596 285 576 748 756 
 
 877 836 748 986 675 
 
 485 673 863 865 899 
 
 758 898 975 289 685 
 
 669 676 589 653 678 
 
 DIVISION 
 Time 1 minute— Possible points 30— Standard 10— Record 
 
 19775-4-25 9950 H- 50 31200-75 25480^80 9876^12 
 
 9135-^45 15696^48 52542^63 25038^39 43239^71 
 
 9637 
 
 6364 
 
 8253 
 
 4246 
 
 8372 
 
 2848 
 
 3695 
 
 2897 
 
 3897 
 
 3579 
 
 6546 
 
 5257 
 
 8558 
 
 7562 
 
 8463 
 
 3748 
 
 3568 
 
 1969 
 
 3795 
 
 2795 
 
 9645 
 
 5583 
 
 9754 
 
 6345 
 
 7356 
 
 4578 
 
 2695 
 
 2958 
 
 2567 
 
 3458 
 
PERSONAL STANDARDS 249 
 
 CROSS MULTIPLYING 
 
 Time 1 minute — Possible points 20 — Standard 10 — Record 
 
 95 37 77 74 84 65 43 55 81 17 
 
 95 88 91 76 24 35 44 49 99 66 
 
 25 50 75 41 19 51 33 91 88 39 
 
 7783364577 5899812667 
 
 EXTENSIONS 
 
 Time 1 minute — Possible points 20 — Standard 10 — Record 
 
 .10 X 1927 = 45 X .13 1/3= .20 X 156 
 
 184 X .25 = 24x1.162/3= .75 X 28 
 
 .40 X 85 = Six .098/9= 1.20 X 45 
 
 2.25 X 24 = 45 X .26 2/3= .375 X 56 
 
 96 X .0625 = 27 X 1.33 1/3= 24 X .875 
 
 48 X .1875 = 42 X .24 5/6= 32 X .5625 = 
 
 75 X .06 2/3= 36 X .66 2/3 = 
 
 EXTENSIONS 
 
 Time 1 minute — Possible points 18 — Standard 10 — Record 
 
 1/5 X 15 = 15 X 2/3 = 3/4 X 36 
 
 35 X 5/9= 2/3 X 4/5 = 3/4 x 8/9 = 
 
 3/4 X 11/3= 6 1/4X 4/5= 3/5 X 4/6 = 
 
 12 1/2 X 7 = 7 X 6 1/4= 7 1/2 X 7 1/2 = 
 
 9 1/2 X 8 1/3= 8 4/5 X 7 3/10= 8 1/5 X 6 3/5 = 
 
 24 X 9 7/8 = 28 X 24 6/7 = 36 X 49 8/9 = 
 
 ADDING FRACTIONS 
 Time 1 minute — Possible points 15 — Standard 10 — Record 
 
 1/8+ 1/7= 1/5+ 1/6= 1/5+ 1/4+ 1/2 = 
 
 3/4 + 7/8= 2/3 + 4/5= 2/3 + 3/4 + 1/4 = 
 
 111/2+58 1/3= 10 1/2+ 16 3/4= 2 2/3 + 1 +2 1/2 = 
 
 17 +25 3/5= 6 2/3+ 46 2/3= 11/2+21/3+3 
 
 44 4/9+22 2/9= 16 3/4 + 124 = 11/4 + 11/2 + 13/4 = 
 
 SUBTRACTING FRACTIONS 
 
 Time 1 minute — Possible points 15 — Standard 10 — Record 
 
 1/6— 1/7= 1/5— 1/9= 2/3— 1/4 = 
 
 3/4— 3/8= 7 1/2— 5 1/3= 8 1/4— 2 3/4 = 
 
 9 — 3/5= 9 — 2 1/2= 6 3/4—3 
 
 26 2/3 — 13 1/3= 37 1/2— 12 1/2= 62 1/2—12 1/2 = 
 
 25/3 — 8 1/3= 33 1/3 — 100/3 = 73 1/3— 6 2/3 = 
 
250 
 
 OFFICE TRAINING AND STANDARDS 
 
 FINDING 100% FROM FRACTIONAL PARTS 
 Time 1 minute — Possible points 18— Standard 10 — Record 
 
 12 
 
 - 2/3 = 
 
 7/6 - 
 
 - 1 1/6 = 
 
 11 1/4 - 
 
 - 1 1/4 = 
 
 9 
 
 - 1/12 = 
 
 16 
 
 - 2/9 = 
 
 2 1/3 - 
 
 -3 
 
 15 
 
 - 3/5 = 
 
 2 1/3 - 
 
 -2 4/5 = 
 
 8 4/5 - 
 
 -2 1/5 = 
 
 45 
 
 - 5/6 = 
 
 24 
 
 - 2/11 = 
 
 12 
 
 - 2/15 = 
 
 FINDING 100% FROM DECIMAL PARTS 
 Time 1 minute— Possible points 18— Standard 10— Record 
 
 197 -e- . 10 
 
 45 - 
 
 - .25 
 
 35 - 
 
 -1.25 
 
 15 - 
 
 - .06 2/3 = 
 
 3.6 - 
 
 - .375 = 
 
 10 - 
 
 - .10 
 
 73 
 
 •4- 
 
 .20 
 
 33 
 
 -f- 
 
 .75 
 
 45 
 
 ■i- 
 
 .625 
 
 24 
 
 -T- 
 
 .66 2/3 
 
 .01 
 
 -j- 
 
 10 
 
 1.6 
 
 -r- 
 
 .0625 
 
 
 5/6-^5 
 
 11 -^ 1/9 = 
 
 3 1/3 4-2 1/2 = 
 
 45 ^ 5/8 = 
 
 80 ^ 5/16 = 
 
 25 1/4^3 
 ARTS 
 
 123 ^ .60 
 
 27 - 
 
 -1.50 
 
 45 - 
 
 - .9375 
 
 28 - 
 
 - .93 1/3 = 
 
 3.9 - 
 
 - .8125 
 
 100 - 
 
 - .001 
 
 An easy way to figure interest. Problems in interest are 
 constantly coming up in every business. When money is lent 
 or borrowed, interest must be reckoned. An easy method of 
 figuring interest is in common use. Since 6% is the usual interest 
 charged, we start with that. To find the interest on any amount 
 for 60 days at 6% we simply move the decimal point two places 
 to the left— that is, the interest on $250 for 60 days at 6% is 
 $2.50, for 6 days $.25, and so on. Here are some interest problems 
 which can be solved by this simple method. Time yourself — you 
 should be able to finish the 25 problems in from 5 to 7 minutes. 
 
 Number 
 1 
 2 
 3 
 4 
 5 
 6 
 7 
 
 10 
 
 STANDARD TESTS 
 
 Problems in simple interest 
 
 Principal Years Months Days 
 
 $350.00 6 
 
 S575.00 60 
 
 $120.00 75 
 
 $425.00 40 
 
 $450.00 63 
 
 $675.00 80 
 
 $144.00 121 
 
 $735.00 120 
 
 $480.00 125 
 
 $824.50 720 
 
 Rate Interest 
 
 6% 
 
 6% 
 
 6% 
 
 9% 
 
 8% 
 
 4M% 
 
 5% 
 
 3% 
 
 6% 
 
 5% 
 
PERSONAL STANDARDS 251 
 
 Number Principal Years Months Days Rate Interest 
 
 11 $630.00 141 4% 
 
 12 $275.75 6000 6% 
 
 13 $435.00 2 12 10% 
 
 14 $375.00 4 24 5% 
 
 15 $480.00 2 20 7H% 
 
 16 $273.50 9 18 5% 
 
 17 $275.00 4 15 8% 
 
 18 $385.00 7 6 5% 
 
 19 $425.00 10 20 9% - 
 
 20 $287.50 1 4 6% • 
 
 21 $367.50 1 3 8% • 
 
 22 $800.00 1 4 15 4% • 
 
 23 $500.00 2 2 12 5% 
 
 24 In what time will $337.50 double itself at 10%? 
 
 25 In what time will $535.75 double itself at 8%? 
 
 Can you do these in your head? A salesman in a retail 
 store is constantly called upon to figure problems in arithmetic. 
 He cannot always stop to write them down on paper, but must 
 often work them out mentally. Usually the problems will be 
 fairly simple, but even simple ones require mental alertness and 
 accuracy. Have someone read these problems to you. 
 
 STANDARD TESTS 
 
 Problems in mental arithmetic 
 
 1. How many lemons at 5 cents each can I get in exchange for 18 eggs 
 at 18 cents a dozen? 
 
 2. John is 4 feet in height ; James is 6 inches taller than Henry ; and Henry 
 is 6 inches taller than John. How much taller is James than John? 
 
 3. If three-fourths of a yard of cloth costs three-fourths of a dollar, how 
 much will 3M yards cost? 
 
 4. Marj' is 6 years younger than Jane, and Jane is 5 years older than Ann. 
 If Ann is 10, how much older is Ann than Mary? 
 
 5. If a herring and a half costs a cent and a half, what will a dozen and 
 6 herring cost? 
 
 6. Ted can beat Fred by 3 yards in a race of 100 yards. Ned can beat 
 Fred by 5 yards in a race of the same distance. How many yards can Ned 
 beat Ted in running 100 yards? 
 
 7. If you cut 30 yards of cloth into one-yard pieces, and cut one yard 
 every day, how long will it take? 
 
 8. Mr. Brown sold a horse for $90 and bought it back again the next day 
 for $80. On the following day he resold the horse for $100. How much 
 profit did Mr. Brown make? 
 
252 OFFICE TRAINING AND STANDARDS 
 
 9. I sold three-fourths j'ard of cloth for 75 cents. If I sold three-fourths 
 of a yard for what one yard cost me, how much will I gain per yard? 
 
 10. A stranger bought a hat for $3 and paid for- it with a §20 bill. The 
 merchant not having change obtained it at the nearest bank and gave the 
 stranger S17 and the hat. The bank soon discovered that the bill was counter- 
 feit and required the merchant to replace it with $20 of good money. How 
 much did the merchant lose? 
 
 11. If it takes one minute for a man to saw a board into two pieces, how 
 long will it take the same man, sawing at the same rate, to saw a similar board 
 into 24 pieces? 
 
 12. If telephone poles are set 4 rods apart, how many poles will it take 
 to string a line one mile long? There are 320 rods in a mile. 
 
 13. A girl began working her problems at 11:45 a. m., and finished them 
 at 1:15 p. m. How long did it take to work the problems? 
 
 14. A boy is standing on the shore of a circular pond. The distance 
 around it is 634 miles and the greatest distance across it is 2 miles. What 
 is the least distance the boy can walk to reach a point directly opposite the 
 spot where he is standing? 
 
 15. A boy was asked how many fish he had caught. He answered: "If 
 
 1 catch this one, which is biting, and half a dozen and a dozen more, I will 
 then have 19." How many did he have? 
 
 16. Ted and Fred had an equal number of marbles. Ted lost several of 
 his. If he tells you how many he lost and how many they both together then 
 had, how can you find how many each had at first? 
 
 17. Mr. Brown hired an automobile for $8 to make a trip from A to B to 
 C and return. The distance from A to B is 12 miles, and from B to C 12 miles, 
 making a total of 48 miles to travel. At B Mr. Smith got permission to ride 
 with Mr. Brown from B to C and return on condition that he should pay his 
 share of the automobile charges. How much should each man have paid? 
 
 18. John bought 60 oranges at 2 for a cent and 60 more at 3 for a cent. 
 He sold all at 5 for 2 cents. How much did he gain or lose? 
 
 19. What is the highest point a boy can reach while standing on a box 
 
 2 feet X 3 feet x 4 feet? The boy is 4 feet in height and can reach one 
 foot above his head, but he must not stand on tip-toe or prop up the box or 
 use any other means of elevating himself or the box. 
 
 20. I have a certain number of apples and my brother has a smaller 
 number. How shall I find how many I must give him so that each may have 
 the same number? 
 
 When time is money. Tests have recently been made in 
 office work showing that with increased speed comes greater 
 accuracy. It is true that accuracy should come before speed, 
 but the slow workers are not always the most accurate, while the 
 best workers are always speedy. Do not form the habit of 
 working slowly, lest you think you can't do any better. 
 
A SCORE CARD 
 
 For recording the improvement in your work 
 
 How to use this card 
 
 In column 1 write the 
 date you make your test. 
 In column 2 put down the 
 time you start the test and 
 in column 3 the time you 
 finish. The number of min- 
 utes (in column 4) is the 
 difference between columns 
 1 and 2. Put the number 
 of errors in column 5 and 
 in column 6 the number of 
 points you make. As your 
 work improves, the num- 
 ber of errors v/ill, of course, 
 decrease, and the number 
 of points will increase. 
 
 Name "/< 
 Began recorc 
 
 ^^^-V-tAjC Kh^r.^O-txy-7\ J 
 
 x^t/tt^.^ Finished record T^um/?.5 
 
 1 
 
 Date of 
 
 test 
 
 2 
 Time 
 started 
 
 3 
 
 Time 
 finished 
 
 4 
 
 Number 
 of minutes 
 
 5 
 Number 
 of errors 
 
 6 
 
 Number 
 of points 
 
 7 
 
 Checked 
 
 by 
 
 4*ft.J 
 
 lD:^0 
 
 10 -.to 
 
 JO 
 
 /a. 
 
 1*1 
 
 ,fr^ 
 
 J}o 
 
 fO:^0 
 
 lO-.HO 
 
 Jo 
 
 // 
 
 :iA 
 
 ^.c. 
 
 . 17 
 
 9-SiO 
 
 9:10 
 
 10 
 
 f 
 
 :i.L 
 
 %c. 
 
 n <Zf 
 
 ^■.3U> 
 
 f.-.?o 
 
 10 . 
 
 ? 
 
 -i? 
 
 ta 
 
 Oct,( 
 
 <^:ajO 
 
 7:30 
 
 to 
 
 k 
 
 ^^ 
 
 ^c. 
 
 .. 9 
 
 /•.2o 
 
 r.Ho 
 
 10 
 
 7 
 
 ifO 
 
 J:C. 
 
 . yr 
 
 r.io 
 
 t'.H-o 
 
 /o 
 
 I 
 
 f^ 
 
 ."tT. 
 
 ",2.2, 
 
 /:?o 
 
 ImO 
 
 lO 
 
 i 
 
 f/- 
 
 ?c. 
 
 »^t 
 
 ^\(o 
 
 r?.'Ao 
 
 l^ 
 
 r 
 
 5~t 
 
 T^c, 
 
 X^s 
 
 5:,o 
 
 ^.\2 
 
 10 
 
 ^ 
 
 u 
 
 ,^c, 
 
 ••/a. 
 
 1: 10 
 
 V.:io 
 
 10 
 
 L 
 
 77 
 
 ^r- 
 
 • /5? 
 
 i:o^ 
 
 po 
 
 10 
 
 s 
 
 ^5 
 
 
 ' SbS 
 
 1:ao 
 
 h:,o 
 
 ID 
 
 ^ 
 
 Icrv 
 
 ^.C-. 
 
 FIGURE 86: When you record your progress on a score card like this, you can 
 
 see just how fast you are improving from time to time. The illustration at the 
 
 bottom of this page shows how to make a chart of your improvement. 
 
 Improvement Graphs of rUsti^^ f'dAjyij>^r\/ \n CLn.^::tl\y>^nJXL <j 
 
 Chart A, showing Accuracy 
 
 M 1 1 1 1 1 1 1 1 1 1 1 1 
 
 
 
 
 - 
 
 This graph shows the number 
 of errors made in each test When 
 compared with Chart B it shows 
 the increase in your accuracy 
 which accompanies an increase in 
 your speed. 
 
 - 
 
 
 s; 
 
 
 
 
 
 
 
 
 
 n 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 \ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 \ 
 
 
 / 
 
 \ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 N 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 \ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 N rr^Ko,- Lr TTr, 
 
 ors 
 
 
 
 \ 
 
 
 
 
 
 
 
 
 ■ 
 
 ■ 
 
 " 
 
 
 
 \ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 4 5 6 7 8 9 
 Test Number 
 
 Chart B, showing Speed 
 
 1 1 1 1 1 M 1 1 
 
 
 
 I 
 
 
 
 
 
 
 j 
 
 
 - 
 
 This graph shows the 
 number of points made 
 in each test. Since each 
 test lasts exactly 10 min- 
 utes.this chart shows the 
 increase in your speed. 
 
 
 
 1 
 
 
 
 / 
 
 
 
 
 / 
 
 
 
 j 
 
 
 
 
 / 
 
 
 
 
 r 
 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 er 
 
 of 
 
 'oint 
 
 
 
 
 
 
 
 
 
 
 
 "" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2 3 4 5 6 7 8 9 10UJ2 13 
 Test Number 
 
 FIGURE 87 : This is a ' 'picture " of the progress shown by the score card. Robert 
 
 Brown made 12 errors on test Number 1 and only two on test Number 13. He 
 
 secured 17 points on test Number 1 and 100 points on test Number 13. 
 
 253 
 
254 OFFICE TRAINING AND STANDARDS 
 
 WTiile you are practicing to improve your speed and accuracy 
 in making figures, writing, typing, computing, or any other office 
 work, keep an exact record of what you can do and check your- 
 self up from time to time by keeping a record or a graph of your 
 work to show the improvement you are making. On page 253 
 are shown two ways you can keep tab on your work. 
 
 A good illustration of the value bankers place on speed and 
 accuracy is shown in the clearing-house rules of a large city. 
 The following rules are copied from the Chicago Clearing House 
 scale of fines : 
 
 All errors in settling clerks' statements not reported to the manager within 
 20 minutes from the time of beginning, whether of footing or entry — $2. 
 
 All other errors, each — $2. 
 
 For all errors remaining undiscovered at the expiration of one hour from 
 commencing, the fines will be doubled — ($4), and at the expiration of one 
 and one-half hours the fines will bequadrupled — $8. 
 
 Any member failing to be properly represented punctually at the morn- 
 ing exchanges: 
 
 For the first 5 minutes or part thereof, 13. 
 
 From 5 to 10 minutes late, $10. 
 
 Over 10 minutes late, $25. 
 
 Debtor members failing to pay their balances by the hour fixed for that 
 purpose: 
 
 For the first 5 minutes or part thereof, $3. 
 
 From 5 to 15 minutes late, $10. 
 
 Over 15 minutes late, $25. 
 
 Two tests of your ability. The next two tests are in- 
 tended to test your thoughtfulness, your mental alertness, and 
 your abiUty to concentrate your attention. The first test is 
 given by one department store to all applicants for positions. 
 
 STANDARD TESTS 
 
 A test for department-store employees 
 Time — 10 minutes 
 Read these directions through carefully. Then do what the directions 
 tell you to do. 
 
 A girl went to a store to buy herself a dress. She must have as much as 
 9 yards, 27 inches wide, or 7 yards, 36 inches wide; or 4H yards, 54 inches 
 wide. She must not spend less than $8 or more than $12. It would be all 
 right for her to buy a piece larger than needed if it did not cost more than $12. 
 She could wear any color except purple or yellow. 
 
PERSONAL STANDARDS 255 
 
 Each piece is a remnant, and she must buy the entire piece. Mark the 
 ones she could buy "yes," mark the ones she should not buy "no." 
 
 Yes or No Yards long Inches wide Price a yard Color Cost 
 
 1 6 36 $1.50 Brown 
 
 2 8 36 1.25 Gray... 
 
 3 m 54 1.60 Blue... 
 
 4 6 54 2.25 Brown. 
 
 5, ','.'... 9M 27 1.00 Black.. 
 
 41^ 54 2.00 Yellow. 
 
 7 4 54 2.75 Green. 
 
 S 41^ 45 2.50 Green, 
 
 9' 6 36 1.50 Gray... 
 
 10 9 1/11 27 1.10 Blue... 
 
 11 7 45 1.95 Black.. 
 
 12! !.^'^ 111/9 27 90 Pink... 
 
 13 7H 36 1.80 Gray... 
 
 14 14 2/7 27 70 Purple. 
 
 15 4M 54 1.60 Blue... 
 
 16 6 30 1.75 Red. . . 
 
 17 4H 54 2.20 Pink. . . 
 
 18 7K 36 1.40 White.. 
 
 19 5H 54 1.80 Green.. 
 
 20 4H 45 2.40 Black. . 
 
 21 73^ 36 1.60 Pink... 
 
 22 91^ 27 1.40 Red... 
 
 23 6M 36 2.00 Gray.., 
 
 24 8H 36 1.20 Purple. 
 
 25 12K 27 80 White. 
 
 Find the total cost of the 25 pieces of cloth 
 
 STANDARD TESTS 
 
 A test for mental alertness 
 Read these directions carefully and do as you are told to do. 
 
 1. Underline all the names of articles in the first column that were 
 shipped by freight and contain exactly five letters. 
 
 2. Place a cross (X) before each name of an article in the first column 
 which was shipped by freight and sold for $10 or over. 
 
 3. Place a cross (X) after each name of an article in the first column that 
 was manufactured or made by man and was sold for less than $10. 
 
 4. In the second column place a cross (X) after the name of each pur- 
 chaser who bought articles in the year 1918 for less than $10 in value. 
 
 5. New York is the largest city in the United States and Chicago is the 
 second city in size. Place a dot ( . ) under each letter in the name of the largest 
 city found in the third column. 
 
256 
 
 OFFICE TRAINING AND STANDARDS 
 
 6. Cities are often named in honor of some noted person. Underline 
 each city in the third column so named. 
 
 7. In the third column draw a line through all the a's found in the 
 names of cities located in Illinois, Indiana, and Ohio. 
 
 8. In the fourth column draw a circle around the i's found in the name 
 of each state to which goods were shipped by parcel post. 
 
 9. The only state in the United States which is larger than France is 
 Texas. In the fourth column place a dot (.) under every letter of the name 
 of the largest state in the United States. 
 
 10. If the articles in the first column were shipped by express in the year 
 1918, draw a ring around all the 8's found in such dates in the seventh column. 
 
 Directions for marking: 
 
 There are exactly 100 things to be done in this test, in which each correct 
 answer counts one point, making a possible 100 points. Divide the number of 
 points made by the number of minutes required in order to find the average 
 score per minute. If a mistake is made in answering any question, one point 
 should be deducted from the correct score for each mistake. The standard 
 score is 10 points a minute or 100 divided by 10, if there were no mistakes and 
 the time required was only 10 minutes. 
 
 A large mail-order house sold and shipped the following material to the 
 given addresses: (5-14-18 means May 14, 1918) 
 
 Column 1 
 Articles 
 Purchased 
 Book 
 Desks 
 Table 
 Chair 
 Dress 
 Robe 
 Handker- 
 chief 
 Bacon 
 Lamp 
 Candy 
 
 Flour 
 
 Sugar 
 
 Cupboard 
 
 Pamt 
 
 Grass seed 
 
 Shovel 
 
 Hatchet 
 
 Flannel 
 
 Organ 
 
 Doors 
 
 Wagon 
 
 Lantern 
 
 Napkins 
 
 Kettle 
 Piano 
 
 Column 2 
 
 Column 3 
 
 Cobimn 4 
 
 Column 5 
 
 Column 6 
 
 Name of 
 
 
 
 How 
 
 Amount of 
 
 Purchasers 
 
 Cities 
 
 States 
 
 Shipped 
 
 Purchases 
 
 White 
 
 Red Oak 
 
 Iowa 
 
 Express 
 
 S 1.19 
 
 Blue 
 
 Ada 
 
 Ohio 
 
 Freight 
 
 22.25 
 
 Brown 
 
 Waco 
 
 Texas 
 
 Freight 
 
 45.00 
 
 Gray 
 
 Gary 
 
 Indiana 
 
 Express 
 
 4.98 
 
 Green 
 
 Oak Park 
 
 Illinois 
 
 Parcel post 
 
 66.75 
 
 Lon 
 
 Portland 
 
 Maine 
 
 Parcel post 
 
 1.33 
 
 Bear 
 
 Dover 
 
 Delaware 
 
 Parcel post 
 
 1.25 
 
 Fox 
 
 Fremont 
 
 Nebraska 
 
 Freight 
 
 10.00 
 
 Wolf 
 
 Topeka 
 
 Kansas 
 
 Express 
 
 6.89 
 
 Lamb 
 
 Washing- 
 
 
 
 
 
 ton 
 
 Iowa 
 
 Parcel post 
 
 1.30 
 
 Berry 
 
 Seattle 
 
 Wash'gton 
 
 Freight 
 
 18.98 
 
 Jolly 
 
 Lincoln 
 
 Nebraska 
 
 Express 
 
 2.26 
 
 Apple 
 
 Salem 
 
 Oregon 
 
 Express 
 
 2.13 
 
 Bright 
 
 Columbus 
 
 Ohio 
 
 Freight 
 
 21.40 
 
 Poor 
 
 Boone 
 
 Iowa 
 
 Express 
 
 18.49 
 
 Good 
 
 Lafayette 
 
 Indiana 
 
 Express 
 
 2.14 
 
 Day 
 
 La Salle 
 
 Illinois 
 
 Parcel post 
 
 1.85 
 
 Rich 
 
 Madison 
 
 Wisconsin 
 
 Express 
 
 22,00 
 
 Hare 
 
 Houston 
 
 Texas 
 
 Freight 
 
 145.00 
 
 Moose 
 
 Newton 
 
 Kansas 
 
 Freight 
 
 10.25 
 
 Deer 
 
 Omaha 
 
 Nebraska 
 
 Freight 
 
 175.00 
 
 Purple 
 Ball 
 
 Cleveland 
 
 Ohio 
 
 Express 
 
 2.86 
 
 South 
 
 
 
 
 
 Bend 
 
 Indiana 
 
 Parcel post 
 
 2.98 
 
 Rock 
 
 Green Bay 
 
 Wisconsin 
 
 Express 
 
 3.76 
 
 Rod 
 
 Ghicaco 
 
 Illinois 
 
 Freight 
 
 500.00 
 
 Column 7 
 Dates 
 Shipped 
 5/14/18 
 6/ 9/17 
 1/ 2/18 
 8/12/18 
 9/ 1/18 
 8/16/18 
 
 2/25/16 
 5/ 7/17 
 5/ 8/18 
 
 2/ 7/17 
 
 11/12/16 
 
 12/20/17 
 
 6/25/18 
 
 8/ 5/16 
 
 10/ 2/17 
 
 8/11/18 
 
 5/26/17 
 
 3/23/16 
 
 1/27/18 
 
 4/ 6/18 
 
 11/14/17 
 
 7 /22/18 
 
 7/27/16 
 5/ 8/18 
 6/13/17 
 
PERSONAL STANDARDS 257 
 
 Keep your wits about you. Unless you are particularly 
 careful in answering the questions in the following test, you may 
 find that you have made some ridiculous answers. Train your- 
 self to grasp what the question really asks, not what you think 
 it asks or what it seems to ask, but what it actually does ask. 
 
 For example, take the second question: "How many legs 
 has a calf if the tail is called a leg? " Regardless of what you call 
 the different parts of a calf — even if you called everything 
 ''legs" — the calf would still have only four legs. Just because 
 the tail is called a leg does not make it one. 
 
 Now let's see how good you are at analyzing. 
 
 STANDARD TEST 
 
 A test for mental alertness in analyzing 
 
 1. If July fourth comes on Friday, on what day of the month does the 
 first of July come? 
 
 2. How many legs has a calf if the tail is called a leg? 
 
 3. Why did Moses take the animals two by two into the ark? 
 
 4. Who was the father of Zebedee's children? 
 
 5. If the ice wagon weighs 2,000 pounds, the ice 1,000 pounds, and the 
 horses 2,500 pounds, what does the ice man weigh? 
 
 6. A freight train leaves New York for Chicago at the same time a 
 passenger train leaves Chicago for New York. If the passenger train travels 
 twice as fast and they each travel the same number of hours, which train will 
 be the nearer Chicago when they meet? 
 
 7. Who wrote Franklin's autobiography? 
 
 8. Who invented the Bell Telephone? 
 
 9. What was our President's name eight years ago? 
 
 10. Is it true that the laws of Illinois do not permit a man to marry his 
 widow's sister? 
 
 11. If Sunday were called Monday, would Thursday be Friday? 
 
 12. How is it possible in a family for one of the children to have three 
 sisters while another child of the same family ha^ only two sisters? 
 
 13. Write in figures: eleven thousand, eleven hundred eleven. 
 
 14. Would you say 17 and 16 are 32 or is 32? 
 
 15. Mr. Smith gave twenty five-dollar bills for a horse and sold it for 
 fifty-two dollar bills. Did he gain or lose and how much? 
 
 16. Two men had a wager as to which could eat the more oysters; one 
 ate ninety and eight and the other a hundred and won. How many did they 
 both together eat? 
 
 17. A milkman being asked how many cows he had milked that forenoon 
 replied : " Each cow that I milked has four feet and all of my cows together have 
 sixty fore-feet." How many cows had he milked? 
 
258 OFFICE TRAINING AND STANDARDS 
 
 18. If I pay a cent and a quarter for a melon and sell it for 30 cents, how 
 much do I gain? 
 
 19. How many cubic feet of dirt can be dug from a hole six feet long, four 
 feet wide, and two feet six inches deep? 
 
 20. Two ducks before a duck, two ducks behind a duck, and a duck in the 
 middle. What is the least number of ducks possible if the ducks were stand- 
 ing in a row? 
 
 21. Two boys, two miles apart, are standing in a road running east and 
 west. One is facing toward the east and the other is facing toward the west. 
 If the earth is 25,000 miles in circumference, what is the shortest distance each 
 boy may travel to meet the other? They travel at the same rate, in a straight 
 line, do not turn around, and do not walk backward. 
 
 22. Mr. Smith sold a horse for $60 and a cow for $20 less than the horse. 
 If he gained $10 on the cow, how much did he gain on the horse? 
 
 23. Blue ribbon sells for five cents a yard more than white ribbon. The 
 white sells for five cents a yard less than the black. How much more does the 
 blue ribbon sell for than the black? 
 
 24. George goes to bed 20 minutes earlier than his brother James, and 
 gets up in the morning 30 minutes earlier than James. How much longer is 
 James in bed than George? 
 
 25. Mary is four years younger than Jane. Kate is five years older than 
 Mary. If Jane is ten years of age, how much younger is Kate than Jane? 
 
 What do you know? In the following test you will have 
 an opportunity to test your knowledge of office training and 
 standards as well as do some original thinking. There are 75 
 questions asked. Multiply by 4 the number of questions an- 
 swered correctly and divide the product by 3. The quotient 
 will represent your percentage of accuracy. 
 
 STANDARD QUESTIONS 
 
 Standards of knowledge 
 
 1. What is the primary purpose of office records? 
 
 2. Of what does the work of a purchasing department consist? 
 
 3. How should quotations be filed? 
 
 4. How should catalogs and price lists be filed? 
 
 5. How should catalogs and ])rice lists be indexed? 
 
 6. What are the chief benefits of stock records? 
 
 7. What precautions should be taken in regard to stock inventories? 
 
 8. How are results from advertising in different mediums recorded? 
 
 9. WTiat are some of the filing problems in the advertising department? 
 
 10. What information should be given on a salesman's report? 
 
 11. How are prospect cards made out and handled in the office? 
 
 12. How are customers' cards made out and handled in the office? 
 
 13. Name some important points to watch in handling follow ups. 
 
PERSONAL PROBLEMS 259 
 
 14. How are records used to increase sales efficiency? 
 
 15. What i.s meant by house-order forms? 
 
 16. What are the chief reasons for using multiple house-order forms? 
 
 17. How is the routing of orders handled? 
 
 18. What are some of the points to be gained by checking and inspecting 
 orders? 
 
 19. What are some of the sources of credit information? 
 
 20. What use is made of the customer's credit card? 
 
 21. Why should the credit man be in touch with collections? 
 
 22. How is the follow-up system used on collection cards? 
 
 23. What are the advantages gained through cost accounting? 
 
 24. What factors enter into cost accounting? 
 
 25. Whose duty is it to keep the cost records? 
 
 26. How may records and graphs be used to stimulate efficiency among 
 employees? 
 
 27. How do comparative records of employees stimulate an interest in 
 work? 
 
 28. Do comparative records form a correct basis for promotion? How? 
 
 29. How may a record of mistakes form a basis for the assignment of an 
 employee to the work for which he is best fitted? 
 
 30. How does the record of an applicant's examination constitute a basis 
 for permanent employment? 
 
 31. How is the keeping of records of employees of value to the employers? 
 
 32. Of what value are such records to the employees? 
 
 33. What receipts are required in the shipping department? 
 
 34. How does the traffic department keep track of claims against trans- 
 portation companies? 
 
 35. Compare mail, express, and freight transportation. 
 
 36. Compare the cost and convenience of the parcel post and express 
 systems for delivering packages. 
 
 37. Can large shipments be sent c.o.d. by freight? If so, how? If not, 
 why not? 
 
 38. Can packages be shipped c.o.d. by mail? 
 
 39. Can packages be shipped c.o.d. by express? 
 
 40. Can money be borrowed on goods in transit or in the warehouse? 
 
 41. Is there any advantage in shipping large packages by express? If 
 so, what? 
 
 42. Is it ever possible to ship 100 pounds cheaper by express than by 
 freight? If so, when? 
 
 43. What size and weight can be shipped by parcel post? 
 
 44. What is the benefit of the parcel post to the producer? 
 
 45. What is the benefit of the parcel post to the consumer? 
 
 46. What is meant by registering mail? 
 
 47. What is the postal money order system? 
 
 48. What is meant by special delivery? 
 
 49. What is meant by telegraph money transfer? 
 
260 OFFICE TRAINING AND STANDARDS 
 
 50. What is a night letter? 
 
 51. What is a day letter? 
 
 52. What is the largest postal money order that may be issued? 
 
 53. What is the largest express money order that may be issued? 
 
 54. What is the largest United States postage stamp issued? Have you 
 ever seen one? 
 
 55. Describe several methods of sending money from New York to San 
 Francisco. 
 
 56. How can you send money from New York to London? 
 
 57. What are the two most important points to keep in mind when 
 writing a telegram? A cablegram? 
 
 58. What is the difference between a regular telegram and night letter? 
 
 59. Why is more care required in writing a cablegram than a lettergram? 
 
 60. Why are code systems often used in sending telegrams and cablegrams? 
 
 61. Why do business firms have a cable address? 
 
 62. What is the world's greatest commercial country? Why? 
 
 63. What is the world's greatest commercial city? Why? 
 
 64. What is America's greatest commercial center? Wh}'^? 
 
 65. What is the world's greatest railroad center? Why? 
 
 66. Is Europe better situated for commerce than Africa? If so, why? 
 
 67. Is the location of Holland better than Belgium for commerce? If 
 so, why? 
 
 68. Is North America better situated for commerce than South America? 
 If so, why? 
 
 69. Is South America better situated for commerce than Australia? Why, 
 or why not? 
 
 70. Is Montreal better situated than Quebec for commerce? 
 
 71. Is Chicago better situated for commerce than Buffalo? Why or 
 why not? 
 
 72. Is New York better situated for commerce than New Orleans? Why, 
 or why not? 
 
 73. Why are there more Atlantic ports along the northern coast of the 
 United States than along the southern coast? 
 
 74. Why are there more Atlantic ports in the United States than there 
 are Pacific? 
 
 75. Would you expect New York or San Francisco to do more trading 
 with Japan? Why? 
 
BIBLIOGRAPHY 
 
BIBLIOGRAPHY 
 
 THE FOUNDATIONS OF A BUSINESS LIBRARY 
 
 The list of books mentioned here is not intended to be a comprehensive 
 bibliography on business practice; to attempt such a task would defeat the whole 
 purpose of the list given, which is simply to furnish additional reference material 
 for the student of oflace practice and for the junior employee who is ambitious to 
 get ahead. There are bibliographies and catalogs available which cover the whole 
 field of business, and several of these are mentioned at the end of this compilation. 
 
 Every worth-while book on office organization and management has been 
 included. The test which has been applied to each book is its adaptability to 
 the purpose of the list. This has undoubtedly caused to be omitted certain 
 books, which, though splendid and of admitted excellence in their respective 
 fields, yet find no place in a list of this nature. If, however, through oversight, 
 a book has been omitted here and there which should be included, the author 
 would appreciate being so advised. Any means by which we can all cooperate 
 for the benefit of those who are to carry on the world's business, is certainly 
 well worth while. 
 
 Especially valuable are the references to SYSTEM, the Magazine of Business, 
 which have been carefully selected from the wealth of material available. Here 
 are given the actual experiences of hundreds of business men, large and small, 
 and the lessons learned therefrom are pointed out unmistakably. Experience 
 has shown that these excerpts fron actual business are exceedingly helpful and 
 enlightening to the student of business practice. 
 
 MANAGEMENT, POLICIES, ORGANIZATION 
 
 OFFICE MANAGEMENT 
 How TO Manage an Office, by the Editorial Staff of System. A. W. Shaw 
 
 Company, 1914. 
 Office Organization and Management, by L. R. Dicksee and H. E. Blain. 
 
 Isaac Pitman & Sons, New York, 1911. 
 The American Office, by J. W. Schulze. Ronald Press Company, New York, 
 
 1913. 
 Office Organization and Management, by C. C. Parsons. La Salle Extension 
 
 University, Chicago, 1917. 
 Making the Office Pat, edited by W. H. LeflSngwell. A. W. Shaw Company, 
 
 1918. 
 Office Management, by Lee Galloway. Ronald Press Company, New York, 
 
 1919. 
 
 263 
 
264 BIBLIOGRAPHY 
 
 Scientific Office Management, by W. H. Leffingwell. A. W. Shaw Company, 
 
 1917. 
 System, the Magazine of Business: 
 
 Casey, D. V. " Muffling office noises. " March 1914, pp. 246-252. 
 
 GUmore, Hinton. "Gingering up office work. " August, 1915, pp. 185-189. 
 
 Hunt, Carl. "Routing incoming mail." March, 1915, pp. 318-320. 
 
 Kent,' H. 0. "This plan saves 25% on wages. " June, 1918, pp. 898-900. 
 
 Leflangwell, W. H. "My plan for applying 'scientific management' in an 
 office." October, 1916, pp. 373-379. 
 "41 ways to save time in an office." February, 1917, pp. 139-147. 
 
 Murphy, C. D. "Less office routine." November, 1914, pp. 490-498. 
 
 Robinson, E. M. " Making promptness a habit. " April, 1918, pp. 570-571. 
 
 BUSINESS ORGANIZATION AND MANAGEMENT 
 New Ideals in Business, by I. M. Tarbell. Macmillan Company, New York, 
 
 1916. 
 Industrial Organization, by H. D. Martm, C. E. Woods, and others. A. W. 
 
 Shaw Company, 1914. 
 Organizing a Business, by M. H. Robinson. La Salle Extension University, 
 
 Chicago, 1915. 
 Knack op Managing, by Herbert Watson. A. W. Shaw Company, 1917. 
 Twelve Principles of Efficiency, by Harrington Emerson. Engineering 
 
 Magazine, New York, 1912. 
 Scientific Management, by C. B. Thompson. Harvard University Press, 
 
 Canibridge, Massachusetts, 1914. 
 Library of Factory Management. Edited by F. M. Feiker, C. D. Murphy, 
 
 H. F. Porter, and others. 6 vols. A. W. Shaw Company, 1916. 
 I Buildings and Upkeep 
 II Machinery and Equipment 
 
 III Materials and Supplies 
 
 IV Labor 
 
 V Operation and Costs 
 VI Executive Control 
 An Approach to Business Problems, by A. W. Shaw. Harvard University 
 
 Press, Cambridge, Massachusetts, 1916. 
 Some Problems in Market Distribution, by A. W. Shaw. Harvard Univer- 
 sity Press, Cambridge, Massachusetts, 1915. 
 System, the Magazine of Business: 
 
 Girl, Christian. " Making a small business big. " January, 1918, pp. 21-25. 
 Patrick, F. A. "How I train men to spend my money." July, 1918, pp. 
 
 21-24. 
 Rogers, W. S. " How we turned $14.95 into $250,000. " November, 1917, 
 pp. 707-710. 
 "Would your business go on if you quit?" January, 1918, pp. 44-47. 
 
BIBLIOGRAPHY '' 265 
 
 Verity, G. M. ""WTiy we have no trouble with our men." May, 1918, 
 pp. 707-710. 
 
 ECONOMICS OF BUSINESS 
 Principles of Economics, by F. W. Taussig. Macmillan Company, New 
 
 York, 1915. 
 Economics of Business, by N. A. Brisco. Macmillan Company, New York, 1913. 
 Economic History of the United States, by E. L. Bogart. Longmans, Green 
 
 & Company, New York, 1907. 
 
 GENERAL 
 SECRETARIAL WORK 
 Private Secretary, by E. J. Kilduff. Century Company, New York, 1916. 
 Efficient Secretary, by E. L. Spencer. Frederick A. Stokes Company, New 
 
 York, 1916. 
 Indexing and Filing, by E. R. Hudders. Ronald Press Company, New York, 
 
 1916. 
 Dectmal Classification and Relative Index, by Melvil Dewey. Forest 
 Press, Lake Placid Club, New York, 1915. 
 
 System, the Magazine of Business: 
 
 Buchaca, E. J. " Quick filing— easy finding.' ' October, 1914, pp. 438-440. 
 Clark, N. M. "Files that find letters in a hurry." August, 1915, pp. 216- 
 
 220. September, 1915, pp. 320-324. October, 1915, pp. 434^38. 
 Jackson, W. M. "An understudy for every job." December, 1918, pp. 
 
 829-831. 
 McCahan, J. C, Jr. "20% less for postage." June, 1918, pp. 910-911. 
 Murphy, CD. "How 300 business men handle their daily mail." July, 
 
 1916, pp. 11-18. 
 Ricker, G. A. "How much is your stenographer worth?' ' February, 1916, 
 
 pp. 214-216. 
 Smith, R. W. "It's easy to find Jones' letter— now." October, 1917, pp. 
 
 554-555. 
 Swan, F. M. "Preparing men for better jobs." February, 1918, pp. 
 
 207-209. 
 
 BUSINESS CORRESPONDENCE AND BUSINESS ENGLISH 
 How TO Write Business Letters, edited by W. K. Smart. A. W. Shaw Com- 
 pany, 1916. 
 Handbook op Composition, by E. C. Woolley. D. C. Heath & Company, 
 
 Boston, 1907. 
 Business Engush, by G. B. Hotchkiss and C. A. Drew. American Book Com- 
 pany, New York, 1916. 
 
266 BIBLIOGRAPHY 
 
 Course in Business Correspondence, by Herbert Watson. A. W. Shaw 
 
 Company, 1917. 
 Business Correspondence Library, by the Editorial Staff of System. 3 vols. 
 
 A. W. Shaw Company, 1911. 
 Automatic Letter Writer and Dictation System, edited by W. H. Leffing- 
 
 well. A. W. Shaw Company, 1918. 
 Sales Correspondence, by P. W. Lennen, F. W. Wood and others. A. W. 
 
 Shaw Company, 1914, 
 How TO Teach Business Correspondence, by N. W. Barnes. A. W. Shaw 
 
 Company, 1916. 
 Collection of Master Business Letters, by Ad-Man Davison. Baynard 
 
 Publishing Company, Kansas City, 1916. 
 Letters that Make Good, by G. W. Poole and J. J. Buzzell. American 
 
 Business Book Company, Boston, 1915. 
 System, the Magazine of Business: 
 
 Banning, Kendall. "Correspondence dictated over the telephone." No- 
 vember, 1914, pp. 545-547. 
 Davison, E. B. "Does the 'intimate' letter pay?" September, 1918, pp. 
 
 323-325. 
 Morantz, David. "16 ways to close a letter." April, 1917, pp. 426-428. 
 Murphy, C. D. "Blue-penciling your letter." March, 1915, pp. 253-259. 
 "Getting your story across." February, 1915, pp. 133-140. 
 "Making the reader want to buy." January, 1915, pp. 29-36. 
 "Sales letters you read." December, 1914, pp. 584-589. 
 Raseley, H. N. "Saving money by the letters we don't write." July, 1917, 
 
 pp. 44-46. 
 Wheeler, Williard. "Letters that get confidence." October, 1915, pp. 
 400-405. 
 
 PURCHASING 
 Materials and Supplies, by H. F. Porter, F. W. Harris, Geo. H. Gushing, and 
 
 others. A. W. Shaw Company, 1916. 
 Purchasing, by H. B. Twyford. D. Van Nostrand Company, New York, 1915. 
 Purchasing, by C. S. Rindsfoos. McGraw-Hill Book Company, New York, 
 
 1915. 
 System, the Magazine of Business: 
 
 Borget, A. J. "Records the buyer needs." April, 1914, pp. 404-407. 
 Clark, N. M. "Buying Right." May, 1915, pp. 509-514. 
 
 "The hardest problem in buying." September, 1916, pp. 364-372. 
 Johnson, H. M. "How 8 merchants are bu3'ing." August, 1918, pp. 
 
 166-168. 
 Porter, H. F. "Meeting buying emergencies." August, 1915, pp. 170-174. 
 Rankin, N. S. "Buying right supplies at the right time." August, 1915, 
 pp. 198-200. 
 
BIBLIOGRAPHY 267 
 
 Russell, H. A. "Lower costs through a bujnng schedule." January, 1916, 
 pp. 85-87. 
 
 ADVERTISING 
 Advertising and Selling Practice, by J. B. Opdycke. A. W. Shaw Company, 
 
 1918. 
 Psychology of Advertising, by W. D. Scott. Small, Maynard & Company, 
 
 Boston, 1908. 
 Advertising, its Principles, Practice and Technique, by Daniel Starch. 
 
 Scott, Foresman & Company, Chicago, 1914. 
 Making Type Work, by Benjamin Sherbow. Century Company, New York, 
 
 1916. 
 How TO Write Advertisements that Sell, by the Editorial Staff of System- 
 
 A. W. Shaw Company, 1912. 
 Advertising as a Business Force, by P. T. Cherington. Doubleday, Page & 
 
 Company, New York, 1913. 
 Writing an Advertisement, by S. R. Hall. Houghton, Miflflin Company, 
 
 Boston, 1915. 
 Advertising and Selling; Principles of Appeal and Response, by H. A. 
 
 Hollingworth. D. Appleton & Company, New York, 1913. 
 Advertising and Correspondence, by Lee Galloway. (Vol. 4, Modem 
 
 Business) Alexander Hamilton Institute, New York, 1913. 
 How TO Advertise, by George French. Doubleday, Page & Company, New 
 
 York, 1917. 
 Principles and Practice of Advertising, by G. B. Wadsworth. G. B. Wads- 
 worth, 1 Madison Avenue, New York, 1913. 
 System, the Magazine of Business: 
 
 Chamberlin, C. L. "Four firms prove their advertising pays." September, 
 1915, pp. 283-285. 
 
 Clark, N. M. "How 32 advertisers handle inquiries." December, 1915, 
 pp. 618-621. 
 
 Martin, JNIac. "Sticking to the subject." April, 1914, pp. 352-360. 
 
 SELLING 
 
 Knack of Selung, by the Editorial Staff of System. 3 vols. A. W. Shaw 
 
 Company, 1913. 
 Influencing Men in Business, by W. D. Scott. Ronald Press Company, 
 
 New York, 1915. 
 Men who Sell Things, by W. D. Moody. A. C. McClurg & Company, 
 
 Chicago, 1913. 
 Sales Promotion by Mail. G. P. Putman's Sons, New York, 1916. 
 Salesmanship for Women, by R. A. B. Roche. Ronald Press Company, New 
 
 York, 1914. 
 
268 BIBLIOGRAPHY 
 
 Training for a Life Insurance Agent, by W. M. Homer. J. B. Lippincott 
 
 Company, Philadelphia, 1917, 
 Salesmanship and Sales Management, by W. F. Hypes, W. H. Cottingham* 
 
 and others. A. W. Shaw Company, 1914. 
 Salesmanship and Sales Management, by J. G. Jones. Alexander Hamilton 
 
 Institute, New York, 1917. 
 Scientific Sales Management, by C. W. Hoyt. B. G. Woolson & Company, 
 
 New Haven, Connecticut, 1913. 
 System, the Magazine of Business: 
 
 Clark, N. M. "Selling the difficult prospect." January, 1916, pp. 76-81. 
 Hillman, M. S. "Picking the prospects that are worth most to us.' ' Octo- 
 ber, 1918, pp. 502-504. 
 Maxwell, H. M. "How to determine the market for your product." Jan- 
 uary, 1917, pp. 53-61. 
 
 "Taking your sales to pieces." February, 1917, pp. 164-171. March, 
 1917, pp. 276-283. April, 1917, pp. 396-403. May, 1917, pp. 495- 
 501. 
 Rosen, H. B. "Personal Sales— $1,000,000 a month." February, 1918, 
 
 pp. 177-181. 
 Tarrant, S. C. "Graphs for the sales manager." December, 1915, pp. 
 
 648-649. 
 Tucker, R. E. "How I size up salesmen." October, 1918, pp. 510-511. 
 
 TRANSPORTATION AND TRAFFIC 
 Elements of Transportation, by E. R. Johnson. D. Appleton & Company, 
 New York, 1909. 
 
 American Transportation System, by G. A. Rankin. G. P. Putman's Sons, 
 New York, 1909. 
 
 Railway Transportation, by C. L. Roper. G. P. Putman's Sons, New York, 
 1912. 
 
 American Railway Transportation, by E. R. Johnson. D. Appleton & 
 
 Company, New York, 1912. 
 Principles of Railroad Transportation, by R. E. Johnson and T. W. Van 
 
 Metre. D. Appleton & Company, New York, 1916. 
 
 Ocean and Inland Water Transportation, by E. R. Johnson. D. Appleton 
 & Company, New York, 1911. 
 
 Railroad Traffic and Rates, by E. R. Johnson and G. G. Huebner. 2 vols. 
 D. Appleton & Company, 1911. 
 
 Railroads, Rates and Regulations, by W. Z. Ripley. Longmans, Green & 
 Company, New York, 1912. 
 
 Railroads, Finance and Organization, by W. Z. Ripley. Longmans, Green 
 & Company, New York, 1915. 
 
BIBLIOGRAPHY 269 
 
 System, the Magazine of Business: 
 
 Cowling, W. C. "Do you pay too much for freight?" September, 1917, 
 
 pp. 319-321. 
 Keena, F. V. "A drayman's advice on your packing methods." July 
 
 1917, pp. 54-56. 
 McLaughlin, T. J. " 'Send it by freight.' " December, 1914, pp. 630-633. 
 Miller, E. P. "How we save on freight charges.' ' May, 1917, pp. 544-549 
 Porter, H. F. "19 Ford policies that save freight charges." January, 
 
 1917, pp. 45-52. 
 Simpson, Frederick. "Paying less for freight charges." June, 1915, pp. 
 
 638-640. 
 
 ACCOUNTING AND COSTS 
 
 Bookkeeping, Auditing and Accounting, by W. M. Cole. Whiting Publish- 
 ing Company, Chicago, 1916. 
 
 Accounts; Their Construction and Interpretation, by W. M. Cole. 
 Houghton, Mifflin Company, Boston, 1915. 
 
 Elements of Accounting, by J. J. Klein. D. Appleton & Company, New 
 York, 1913. 
 
 Accounting as an Aid to Business Profits, by W. R. Bassett. A. W. Shaw 
 Company, 1918. 
 
 Accounting Theory and Practice, by L. Greendlinger. (Vol. 3, Modern Busi- 
 ness) Alexander Hamilton Institute, New York, 1910. 
 
 Accounting and Office Methods, by W. E. Wilson, E. M. Woolley, and others. 
 A. W. Shaw Company, 1914. 
 
 How TO Find Factory Costs, by C. B. Thompson. A. W. Shaw Company, 1916. 
 
 System, the Magazine of Business: 
 
 Clark, N. M. "The A B C of Accounting." August, 1913, pp. 163-168. 
 Heilman, R. E. "Profits — the difference between 'gross' and 'net'". 
 
 August, 1917, pp. 177-179. 
 McCullough, J. H. "Nutshell reports for the boss." May, 1918, pp. 
 
 717-720. 
 Mueller, E. J. "How much do we owe?" April, 1913, pp. 421-422. 
 Schreffler, R. B. " 'I know now why I keep books.' " February, 1917, 
 
 pp. 195-201. 
 Tarrant, S. C. "Reports that really show the facts." June, 1917, pp. 
 649-651. 
 
 CREDITS AND COLLECTIONS 
 
 Credit Man and His Work, by E. S. Lewis. Bookkeeper Publishing Company, 
 Detroit, 1904. 
 
 Credit, its Principles and Practice, by B. H. Blanton. Ronald Press Com- 
 pany, New York, 1915. 
 
 Credit and its Use, by W. A. Prendergast. D. Appleton & Company, New 
 York, 1906. 
 
270 BIBLIOGRAPHY 
 
 Advertising, Selling and Credits. (Vol. 9, Modern Business) Alexander 
 
 Hamilton Institute, New York, 1911. 
 Credits and Collections, by E. M. Skinner. La Salle Extension University, 
 
 Chicago, 1916. 
 Credits and Collections, by P. R. Earling, H. A. WTieeler, and others. A. W. 
 
 Shaw Company, 1908. 
 How to Collect Money by Mail, by the Editorial Staff of System. A. W. 
 
 Shaw Company, 1913. 
 96 Proved Plans for Collecting Money by Mail, by the Editorial Staff of 
 
 System. A. W. Shaw Company, 1917. 
 Collecting by Letter, by W. A. Shryer. 2 vols. Business Service Corpor- 
 ation, Detroit, 1913. 
 Art of Collecting, by R. J. Cassell. Ronald Press Company, New York, 1913. 
 System, the Magazine of Business: 
 
 Blum, H. S. "Legal pitfalls to watch when you extend credit." October, 
 1916, pp. 395-401. November, 1916, pp. 496-475. 
 "Death and bankruptcy: two credit problems." December, 1916, 
 
 pp. 638-642. 
 "Collecting from bankrupt customers." Februarj--, 1917, pp. 172-179. 
 "Collecting when your customer fails." April, 1917, pp. 387-393. 
 Clark, N. M. "Bringing the debtor to terms." March, 1914, pp. 303- 
 
 307. 
 Givens, Walter. "How we collect our money sooner." April, 1918, pp. 
 
 568-569. 
 Harding, Hon. W. P. G. "Use and abuse of credit." November, 1918, 
 
 pp. 649-651. 
 Lewis, Norman. "How can we collect that money?" December, 1917, 
 
 pp. 920-921. 
 Sammons, Wheeler. "Adventures in collections." May, 1915, pp. 487- 
 
 489. July, 1915, pp. 82-86. 
 Uehlinger, H. "Taking the risk out of poor credits." October 1917, 
 
 pp. 638-540. 
 Wright, M. N. ' 'A file that's always ready.' ' August, 1917, pp. 208-209. 
 Young, H. G. "How I make collections." August, 1915, pp. 175-179. 
 
 FINANCE 
 How to Finance a Business, by the Editorial Staff of System. A. W. Shaw 
 
 Company, 1912. 
 Financing an Enterprise, by Francis Cooper. Ronald Press Company, New 
 
 York, 1915. 
 Corporation Finance, by E. S. Meade. D. Appleton & Company, New York, 
 
 1912. 
 Corporation Finance, by W. H. Lyon. Houghton, Mifflin Company, Boston, 
 
 1916. 
 
BIBLIOGRAPHY 271 
 
 Business Finance, by W. H. Lough. Ronald Press Company, New York, 1917. 
 System, the Magazine of Business: 
 
 Benson, H. L. "Do you know how the banker sizes you up?" March, 
 
 1919, pp. 404-405. 
 Hanson, J. L. "Common sense in financing." August, 1918, pp. 176-178. 
 Murphy, C. D. "Are you borrowing at the right price?" July, 1916, pp. 
 56-61. 
 
 LEGAL 
 
 Elements of Business Law, by E. W. Huffcut. Ginn & Company, Boston, 1917. 
 
 Manual op Commercial Law, by E. W. Spencer. Bobbs-Merrill Company, 
 Indianapolis, 1898. 
 
 Laws of Business for all the States and Territories of the Union and 
 THE Dominion of Canada, by T. Parsons. S. S. Scranton Company, Hart- 
 ford, Connecticut, 1914. 
 
 Good Will, Trade-Marks and Unfair Trading, by E. S. Ilogers. A. W. 
 Shaw Company, 1914. 
 
 SPECIAL 
 
 RETAILING AND WHOLESALING 
 Making Your Store Work for You, by the Editorial Staff of System. A. W. 
 
 Shaw Company, 1917. 
 How TO Run a Store at a Profit, by the Editorial Staff of System. A. W. 
 
 Shaw Company, 1913. 
 Keeping up with Rising Costs, by Wheeler Sammons. A. W. Shaw Company, 
 
 1915. 
 Shaw Retaiung Series, edited by Wheeler Sammons. A. W. Shaw Company. 
 
 Making More Out of Your Advertising, 1919 
 
 Attracting and Holding Your Customers, 1919 
 Course in Retail Merchandising, by Robert B. Schreffler. A. W. Shaw 
 
 Company, 1916. 
 161 Store Plans to Win New Trade, by the Editorial Staff of System. A. W. 
 
 Shaw Company, 1916. 
 Manual of Successful Storekeeping, by W. R. Hotchkin. Doubleday, 
 
 Page & Company, 1915. 
 
 Modern Methods of Merchandising, by Mac Martin. Mac Martin Adver- 
 tising Company, Minneapolis, 1915. 
 
 Economics of Retailing, by Paul H. Neystrom. Ronald Press Company, 
 New York, 1915. 
 
 Retail Selling and Store Management, by Paul H. Neystrom. D. Appleton 
 & Company, New York, 1914. 
 
 How TO Run a Retail Automobile Business at a Profit, by the Shaw Bureau 
 of Business Standards. A. W. Shaw Company, 1918. 
 
272 BIBLIOGRAPHY 
 
 Making a Drug Store Pay, by Frank Farrington. Ronald Press Company, 
 
 New York, 1914. 
 How TO Run a Retail Lumber Business at a Profit, by the Shaw Bureau of 
 
 Business Standards. A. W. Shaw Company, 1917. 
 How to Run a Wholesale Business at a Profit, by the Shaw Bureau of 
 
 Business Standards. A. W. Shaw Company, 1918. 
 System, the Magazine of Business: 
 
 Dixon, C. W. "Why they come back to my store." November, 1917, 
 pp. 730-732. 
 
 Douglas, A. W. "Why don't more women trade with me?" December, 
 
 1917, pp. 906-908. 
 
 Filene, E. A. "Why the employees run our business." December, 1918, 
 
 pp. 805-810. 
 Groch, N. C. "Making money by saving money for customers." June, 
 
 1918, pp. 890-893. 
 
 Heilman, R. E. " WTiat's the remedy for diminishing profits?" February, 
 
 1918, pp. 182-185. 
 Johnson, H. M. "12 ways to move stock." February, 1919, pp. 213-215. 
 Louis, G. L. "More sales to every customer." September, 1917, 
 
 pp. 324-327. 
 Mench, J. L. " What will sell best today?' ' May, 1917, pp. 552-557. 
 Thompson, C. B. "Scientific management in a retail store." December, 
 
 1914, pp. 568-575. January, 1915, pp. 66-71. 
 Ullrich, A. H. "Making it pleasant to spend money with me." January, 
 
 1918, pp. 33-35. 
 Weld, L. D. H. "The right selling price." May, 1918, pp. 711-713. 
 Wildey, H. L. "How I keep trade at home.' ' May, 1917, pp. 474-480. 
 
 BANKING 
 
 Filing Department, by J. A. Cramer. Bankers' Publishmg Company, New 
 
 York. 
 Modern Bank, by A. K. Fiske. G. P. Putman's Sons, New York, 1904. 
 Money and Banking, by E. D. Howard. (Vol. 6, Modern Business) Alexander 
 
 Hamilton Institute, New York, 1910. 
 Money and Banking, by J. T. Holdsworth and D. R. Dewey. D. Appleton 
 
 & Company, New York,"l914. 
 Principles of Money and Banking, by H. G. Moulton. University of Chicago 
 
 Press, . Chicago, 1916. 
 Banks and Banking, by H. P. Willis. American Institute of Banking, New 
 
 York, 1916. 
 Shaw Banking Series, by the Shaw Bureau of Business Standards. A. W. 
 
 Shaw Company, 1919. 
 
 Accounting and Costs 
 Advertising and Service 
 
BIBLIOGRAPHY 273 
 
 Loans and Discounts 
 
 Credits and Collections 
 Buildings, Equipment and Supplies 
 Management and Executive Control 
 How TO Advertise a B.-lnk, by Benjamin Jot, J. D. Walker, and others. A. 
 
 W. Shaw Company, 1914. 
 How TO Increase a Bank's Deposits, by D. V. Casey and B. C. Bean. A. W. 
 
 Shaw Company, 1910. 
 What it Costs to Run a Bank, by the Shaw Bureau of Business Standards- 
 
 A. W. Shaw Company, 1916. 
 System, the Magazine of Business: 
 
 Dunn, H. A. "The cash value of a smile." April, 1918, pp. 565-567. 
 Regan, J. M. "Does service pay? The answer of 89 banks." May, 
 1917, pp. 504-508. 
 "How 71 banks make advertising pay." April, 1917, pp. 404-409. 
 
 INSURANCE AND REAL ESTATE 
 
 How to Sell Real Estate at a Profit, by the Editorial Staff of System. A. 
 
 W. Shaw Company, 1910. 
 78 Proved Plans for Handling and Closing Real Estate Deals, by Joseph 
 
 P. Day, and others. A. W. Shaw Company, 1917. 
 Practical Real Estate Methods, by W. H. Britigan. Westside Y. M. C. A 
 
 New York, 1909. 
 How to Sell Real Estate, by P. L. Melberg. Realty Service Publishing 
 
 Company, Newark, New Jersey, 1916. 
 Real Estate Management and Transfer, by W. J. Jackman. WTiitman 
 
 Publishing Company, Chicago, 1916. 
 Insurance and Real Estate. (Vol. 8, Modern Business) Alexander Hamilton 
 
 Institute, New York, 1911. 
 Insurance Office Organization, Management and Accounts, by T. E. 
 
 Young and Richard Masters. Isaac Pitman & Sons, New York. 
 Principles of Insurance, by W. F. Gephart. Macmillan Company, 1917. 
 Business of Insurance, by H. P. Dunham. 3 vols. Ronald Press Company 
 
 New York, 1912. 
 
 Insurance Science and Economics, by F. L. Hoffman. Spectator Company 
 New York, 1911. 
 
 Fire Insurance and How to Build, by F. C. Moore. Baker and Taylor 
 
 Company, New York, 1903. 
 Fire Insurance Agent and his Agency, by R. K. S. AUebach. Spectator 
 
 Company, New York, 1909. 
 
 How TO Sell More Fire Insurance, by H. Dehnar, L. E. Yoger, and others, 
 A. W. Shaw Company, 1910. 
 
274 BIBLIOGRAPHY 
 
 Life Insueance, by S. S. Huebner. D. Appleton & Company, New York, 1915. 
 Training for a Life Insurance Agent, by W. M. Homer. J. B. Lippincott, 
 
 Philadelphia, 1917. 
 How TO Sell More Life Insurance, by W. G. Glazier, G. M. Herrick, and 
 
 others. A. W. Shaw Company, 1910. 
 Property Insurance, by S. S. Huebner. D. Appleton & Company, 1911. 
 System, the Magazine of Business: 
 
 Collver, Clinton. "Do your insurance policies really protect you?" June, 
 
 1917, pp. 593-599. 
 Mage, W. C. "Picking the one argument that fits the prospect." June, 
 1917, pp. 612-616. 
 
 "My answer for 'No, I don't need more insurance."' June, 1916, pp. 
 610-613. 
 Rosen, H. B. "Personal Sales— $1,000,000 a month." February, 1918, 
 pp. 177-181. 
 
 PERSONAL 
 VOCATIONAL GUIDANCE AND EMPLOYMENT MANAGEMENT 
 
 Choosing a Vocation, by F, Parsons. Houghton, Mifflin Company, Boston, 
 1909. 
 
 Learning to Earn, by J. A. Lapp and C. H. Mote. Bobbs-Merrill Company, 
 Indianapolis, 1915. 
 
 Young Man and His Vocation, by F. S. Harris. Richard C. Badger, Boston, 
 1916. 
 
 Profitable Vocations for Boys, by E. W. Weaver. A. S. Barnes and Com- 
 pany, New York, 1915. 
 
 Profitable Vocations for Girls, by E. W. Weaver. A. S. Barnes and Com- 
 pany, New York, 1915. 
 
 Vocations for the Trained Women, by E. Martin. Longmans, Green & 
 Company, New York, 1914. 
 
 Careers for Our Sons, by G. H. Williams. Macmillan Comoany, New York, 
 1914. 
 
 Engineering as a Career, by F. H. Newell and C. E. Drayer. D. Van Nostrand 
 Company, New York, 1916. 
 
 Millinery as a Trade for Women, by L. Perry. Longmans, Green & Company, 
 New York, 1916. 
 
 Training for the Newspaper Trade, by D. C. Seitz. J. B. Lippincott, Phila- 
 delphia, 1916. 
 
 Vocational Guidance, by J. A. Puffer. Rand-McNally & Company, Chicago, 
 1913. 
 
 Vocational Psychoixjqy, by H. L. Hollingworth. D. Appleton & Company, 
 New York, 1916. 
 
BIBLIOGRAPHY 275 
 
 Job, the Man, the Boss, by K. M. H. Blackford. Doubleday & Page Com- 
 pany, Garden City, New York, 1915. 
 
 PERSONAL EFFICIENCY 
 How TO Get Ahead, by A. W. Atwood. Bobbs-Merrill Company, Indianapolis, 
 
 1917. 
 Personal Efficiency, by Robert Grimshaw. Macmillan Company, New 
 
 York, 1918. 
 How TO be Personally Efficient in Business, by the Editorial Staff of System. 
 
 A. W. Shaw Company, 1915. 
 114 Proved Plans to Save a Busy Man Time, by the Editorial Staff of System. 
 
 A. W. Shaw Company, 1918. 
 Ambitious Woman in Business, by Eleanor Gilbert. Funk and Wagnalls 
 
 Company, New York, 1916. 
 What Every Business Woman Should Know, by L. C. Kearney. F. A. 
 
 Stokes Company, New York, 1916. 
 How TO Get and Keep a Job, by N. C. Fowler. Oakwood Company, Boston, 
 
 1912. 
 Getting the Most Out of Business, by E. S. Lewis. Ronald Press Company, 
 
 New York, 1915. 
 Analyzing Character, by K. M. H. Blackford. Review of Reviews, New 
 
 York, 1916. 
 System, the Magazine of Business: 
 
 Elliott, Howard. " Four rules for greater personal effectiveness.' ' January, 
 1916, p. 49. 
 
 Updegraff, R. R. "Stealmg ideas from yourself." April, 191S, pp. 542- 
 544. 
 
 Woolf, J. D. "Boosting the worker's batting average." October, 1918, 
 pp. 600-605. 
 
 PERSONALITY IN BUSINESS 
 
 Personality in Business, by Edward Hines, H. E. Locke, and others. A. W. 
 Shaw Company, 1917. 
 
 Succeeding with What You Have, by Charles M. Schwab. Century Com- 
 pany, New York, 1917. 
 
 Captains of Industry, by James Parton. 2 vols. Houghton, Mifflin Com- 
 pany, Boston. 
 
 Men who Are Making America, by B. C. Forbes. B. C. Forbes, New York, 
 1917. 
 
 Little Journeys to the Homes of Great Business Men, by Elbert Hubbard. 
 Roycrofters, East Aurora, New York, 1909. 
 
 American Blue-Book of Biography, by T. W. Herringshaw. American Pub- 
 lishers' Association, Chicago. 
 
276 BIBLIOGRAPHY 
 
 System, the Magazine of Business: 
 
 Crowther, Samuel. "Frank Vanderlip." March, 1917, pp. 302-305. 
 Husband, Thomas. "William Wrigley, Jr." February, 1916, pp. 181-182 
 Meldrum, Barclay. "John North Willys." September, 1915, pp. 298-301. 
 Pinci, A. R. "Daniel Willard." August, 1915, pp. 180-182. 
 Sammons, Wheeler. "Thomas E. Wilson." March, 1914, pp. 297-300. 
 Stegren, F. "James Logan." April, 1917, pp. 413-416. 
 Swan, F. M. "Mrs. Snyder." February, 1919. pp. 228-230. 
 
 BIBLIOGRAPHIES AND BOOK LISTS 
 
 1,600 Business Books. H. W. Wilson Company, White Plains, New York. 
 
 Selected Professional and Business Books. Scovell Wellington & Com- 
 pany, Boston. 
 
 What to Read on Business. (Out of print.) Key Publishing Company, New 
 York. 
 
 Book Review Digest. H. W. Wilson Company, White Plains, New York. 
 
 The Working Library. Educational Committee, Advertising Club of New 
 York. 
 
 Business Men's Library. Public Library, Brooklyn, New York. 
 
 Business Books of Today. Public Library, Cleveland, Ohio. 
 
INDEX 
 
 Abbreviations, in addresses, 13 
 ACCOUNTING DEPARTMENT 
 -balance sheet, 156 
 
 - chart of bookkeeping entries, 155 
 
 - cost accounting, 157 
 
 - difference between bookkeeping and 
 
 accounting, 149 
 -looseleaf systems, 161 
 
 - machines, the use of in the, 157-159 
 
 - payroll, making up the, 154 
 
 - relation to other departments, 5 
 
 - reports for the executive, 160, 161 
 -standards, 161, 162, 163 
 
 - statement of condition, 156 
 
 - trial balance, what it is, 150 
 -work of the department, 151 
 
 Addresses, 
 
 - abbreviations in, 13 
 
 - cable, 70 
 Addressing, test in, 244 
 
 ADVERTISING 
 
 - charts used in, 122 
 
 - checking returns from, 123 
 
 - filing cuts and photographs used in, 
 
 124, 126 
 
 - keys and their uses, 123 
 
 - schedule of insertions, 125 
 Alphabetical filing, 82 
 Alphabetical-numerical filing, 90 
 Ambition, wavs of stimulating, 205 
 Application blank for employment, 217. 
 
 218, 219 
 Atlases, how used, 52 
 Attention, test of, 203 
 Automatic typewriter, 26 
 
 B 
 
 Balance sheets, 156 
 
 Bill of lading, 142 
 
 Billing, test for accuracy and speed in. 
 
 Bin tickets, 108, 109, 110 
 Bond, getting a, 228 
 Bonus, for stenographers and typists, 29 
 BOOKICEEPING (see also Accounting 
 Department) 
 
 - cash book, 152, 153 
 
 - chart, showing entries, 155 
 
 - double-entry system, 150 
 
 - entries, where to make, 155 
 
 -journal, 152, 153 
 
 - ledger, 149, 152 
 
 - looseleaf systems, 161 
 
 - machines, the use of in, 157-159 
 -posting, 153 
 
 - purchase book, 153 
 
 - sales book, 153 
 -standards, 161, 162, 163 
 
 - trial balance, 150 
 Borrowing from the bank, 171 
 Business magazines and trade periodi- 
 cals, 53 
 
 Cable messages 
 
 - addresses in, 70 
 
 - four kinds, the, 69 
 
 - full-rate and half -rate, 70 
 
 - letters, 70 
 
 - time differences, 71 
 
 - transferring money by, 71 
 
 - week-end, 70 
 
 Capital, why it is necessary, 170 
 Carbon paper, in copying, 25 
 Card index, the uses of the, 81 
 Cash book, 152, 153 
 Charts showing organization of 
 -accounting department, 151 
 
 - correspondence department, 1 1 
 
 - functional office, 3 
 
 - sales department, 116 
 Checks 
 
 - business puzzles involving, 190 
 
 - paying by, 172 
 
 - uses of, 185 
 
 Cipher and code words, 67 
 
 Collections, the use of statements in 
 making, 154 
 
 Computations in the accounting depart- 
 ment^ 167 
 
 Concentration, test for, 254, 255 
 
 Contracts, sales, 127, 128 
 
 Copies, of correspondence, how they are 
 made, 25, 26 
 
 Copying, ink used in, 25 
 
 Copying orders, methods of, 139 
 
 CORRESPONDENCE DEPART- 
 MENT 
 
 - answering letters 
 
 - analyzing, the reason for, 21 
 
 - dictating machines, the use of, 24 
 
 277 
 
278 
 
 INDEX 
 
 - errors to avoid in, 38 
 
 - fill-ins, the use of in form letters, 
 
 22 
 -form letters and paragraphs, 
 how used, 22 
 
 - taking dictation, 24 
 
 - three steps in, 21 
 
 - transcribing, 24 
 
 - copying letters and papers 
 
 - automatic typewriter, 26 
 
 - carbon paper, 25 
 
 - gelatin duplicator, 25 
 
 - ink used in, 25 
 
 - letter-press, 25 
 
 - roller copying machine, 25 
 
 - stencil duplicator, 25 
 
 - type-and-ribbon duplicator, 25 
 
 - how to make letters artistic, 24 
 
 - importance of this department, 5 
 
 - incoming mail, handling 
 
 - cash mail, 12 
 
 - classification, 12 
 
 - how enclosures are handled, 10 
 
 - how the mail is sorted, 9 
 
 - inspection, methods of, 10 
 
 - mail-opening table, how used, 10, 
 
 15 
 
 - opening the mail, 9 
 
 - saving unnecessary motions, 
 
 ways of, 10 
 
 - time of receipt, why noted, 10 
 
 - model letter, how used, 23 
 -organization chart, 11 
 
 - outgoing mail, handling 
 
 - addressing letters and envelops, 
 
 13 
 
 - enclosures and remittances, 26 
 
 - folding letters, 14, 16 
 
 - insuring packages, 18 
 
 - maihng machinery, 13, 14, 16, 17 
 -postage, how to determine the 
 
 correct, 13, 16, 17 
 
 - registering letters, 18 
 
 - remittances and enclosures, 26 
 -seahng, 14 
 
 - signing, methods of, 26 
 
 - special delivery, sending by, 18 
 
 - stamping, saving time in, 14, 17 
 
 - typevvTiter, use of the^ 21, 24 
 Cost accounting, what it is, 157 
 Cottingham, Walter H., 232, 233 
 Credit and coIle(^tion records, 153 
 Credit-rating books, how used, 49, 50, 
 
 51,52 
 Cuts, filing, 127 
 
 Day letters, when to use, 68 
 Departments, harmonizing the work of, 
 
 196 
 Desks, the uses and abuses of, 198, 200, 
 
 204 
 
 DICTATION 
 
 - machines, 24 
 
 - machine standards, 30 
 
 - standards, 33, 34, 36, 37 
 
 - use of English in, 35 
 Dictionary, how to use in the office, 47 
 Dictograph, 63 
 
 Directories, how to use, 55 
 
 (see also Reference Books) 
 Double-entry bookkeeping, 150 
 Drafts, 173 
 
 ElUott, Howard, 229 
 EMPLOYEES 
 
 - hiring and placing, 202 
 
 - keeping contented, 205 
 
 - qualities employers want in, 215 
 
 - standard practice instructions for, 
 
 202 
 
 - stimulating ambition in, 205 
 
 - training, effective ways of, 202 
 
 EMPLOYMENT 
 
 - analyzing your capabilities, 213, 214 
 -application blank, 217, 218 
 
 - are you a clear thinker? 222 
 
 - can you follow instructions? 220 
 
 - chapter on, 213 
 
 - how to get a position, 213-219 
 
 - picking out your weak points, 214 
 
 - possibilities open to you, 215 
 
 - selecting your employer, 219 
 
 - selUng your services, 213 
 
 - standards, 223-227 
 
 - ten qualifications for a job, 215 
 -tests to measure your ability, 219- 
 
 222 
 
 - two standards for choosing a job, 216 
 
 - what employers are looking for, 215 
 Enclosures and remittances, 10, 26 
 Enghsh, to use when dictating, 35 
 Entries, bookkeeping, where to make, 
 
 155 
 Errors to avoid in writing letters, 38 
 Exchanges, telephone, old and new, 61 
 Executive 
 
 - delegation of detail by the, 4 
 
 - duties of the, 4, 6 
 -reports for the, 160, 161 
 
 EXERCISES 
 
 -business puzzles involving checks, 
 190 
 
 -computations in the accounting de- 
 partment, 167 
 
 -credit and collection records, 168 
 
 -differoucos in time, 77 
 
 -elementary principles of bookkeep- 
 ing, 167 
 
 - errors to avoid in transcribing corre- 
 
 spondence, 38 
 
INDEX 
 
 279 
 
 -insurance, 192 
 -law of sales, 130 
 
 -partnerships and corporations, 191 
 -points of law in purchasing, 114 
 
 - points of law in sales contracts, 134 
 
 - problems the treasurer has to solve, 
 
 193 
 
 - some problems in office efficiency, 
 
 211 
 
 - suggestive search questions, 57 
 
 - use of labor-saving devices, 165 
 -watching your English when dictat- 
 ing, 35 
 
 - work of the accounting department, 
 
 166 
 
 - writing business letters, 42 
 Express, when and how to ship by, 142, 
 
 147 
 
 FILING 
 
 -alphabetical, 82 
 -alphabetical-numerical, 90 
 
 - assistants, qualities and value of cap- 
 
 able, 79, 94 
 
 - by date, 87 
 
 - by location, 85 
 
 - by number, 86 
 
 - by subject, 89 
 -card index, 81 
 
 - comparison of different methods, 90 
 -cuts, 127 
 
 - Dewey decimal system, 86 
 
 - early methods, 80 
 
 - equipment, 80 
 
 - essentials of good, 79 
 -flat, 80, 84 
 -follow-up, 87, 88 
 
 - geographical, 85 
 -unportance of, 79 
 
 - numerical, 86 
 
 - out cards, 92 
 -photographs, 126 
 
 - removing letters from the files, 93 
 
 - requisition blank for correspondence, 
 
 91 92 
 
 - Shannon file, 80, 84 
 
 - standards, 95 
 
 - topical, 89 
 
 - transferring correspondence, 93 
 -vertical, 81, 84 
 
 Fill-ins in form letters, 22 
 
 FINANCE 
 
 -bank loans, why they are made, 171, 
 
 172 
 -bonds and stocks, 181 
 
 - capital, why it is needed, 170 
 
 - checking account, 171 
 
 - drafts, use of in collecting money, 
 
 173 
 
 - duties of the treasurer, 170 
 
 - elementary principles, 175 
 -funds, definition of, 169 
 
 - how capital is obtained, 171 
 -insurance, 182 
 
 -investments, how to make, 173, 174 
 
 - meaning of, 169 
 
 - notes receivable, how used, 172 
 -partnerships and corporations, 179, 
 
 180 
 
 - standards, 175-183 
 
 - stocks and bonds, 181 
 
 - treasurer, work of the, 170 
 
 - watching collections, 172 
 
 - yield on investments, 174 
 First office, the, 1 
 
 Flat filing, 80, 84 
 Folding letters, 14, 16 
 Follow-up methods, 
 
 - in purchasing, 104, 106, 107 
 
 - the tickler file, 87, 88 
 
 Form letters and paragraphs, the use of, 
 
 22 
 Functional office, the, 2, 3 
 Funds, definition of, 169 
 Freight shipments, 142, 147 
 
 Gary, Judge Elbert H., 232, 233 
 
 Gazetteers, tises of, 52 
 
 Gelatin duplicator, when to use a, 25 
 
 Geographical filing, 85 
 
 "Ginger" letters in selling, 120 
 
 Graphs, the use of, 122, 253 
 
 H 
 
 Hiring employees, 202 
 Historical standards, 7 
 How to get a position, 213-219 
 
 Incoming mail (see Correspondence) 
 Initiative, an example of, 235 
 Insurance, 188, 192 
 Insuring mail, 18 
 Interest, a test in computing, 250 
 Interhouse telephone, 63 
 Investing surplus funds, 173, 174 
 Invoice, a form of, 137 
 
 Journal, its purposes and the entries in 
 it, 152, 153 
 
 Keys, their uses in advertising, 123 
 Ivnowledge, general standards of, 258 
 
280 
 
 INDEX 
 
 Labels, how used by one concern, 141 
 Labor-saving devices, 25, 62, 165, 209 
 Layout of the office, 199, 210 
 Ledger and ledger entries, 149, 152 
 Letter-press, the use of the, 25 
 Letters (see Correspondence) 
 " Line-and-staff " organization, 4 
 Looseleaf bookkeeping, the possibilities 
 of, 161 
 
 M 
 
 Machinery, office 
 
 - muffling the noise from, 201 
 
 - questions on, 209 
 
 - used in mailing, 13, 14, 16, 17 
 -used in the accounting department, 
 
 157-159 
 -used in the correspondence depart- 
 ment, 24-27, 30, 39 
 
 - used in the order department, 139 
 Mail (see also Correspondence), 
 
 -seUingby, 115, 120 
 
 - table for opening, 10, 15 
 MaiUng lists, 120 
 
 Mailing machinery, 13, 14, 16, 17 
 Maihng standards, 19 
 Manager, the problems of the, 195-212 
 Maxims, business, how to use, 238 
 McGowan, Rear Admiral Samuel, 231 
 Memorandum shp for recording tele- 
 phone messages, 66 
 Memory and attention, a test in, 242 
 Mental arithmetic, a test in, 251 
 Military office, the, 2 
 Model letter for stenographers, a, 23 
 Money, telegraphing and cabling, 71 
 
 N 
 
 Night letters and messages, 68 
 Noises, office, how to muffle, 201 
 Notes receivable, 172 
 
 OFFICE 
 
 - desks, and desk arrangement in, 198, 
 
 200, 204 
 
 - development of the, 7 
 -first, the, 1 
 
 - function of the, 2 
 
 - functional, the, 2, 3 
 -layouts, good and bad, 197-199 
 
 - lighting, effective, 201 
 
 - "Une-and-staff " organization of, 4 
 
 - mihtary organization of, 2 
 
 - muffling noises in, 201 
 
 - one-man office, the, 2 
 
 - physical details of, 197 
 
 - relation to the rest of the organizi^- 
 
 tion, 4 
 -some problems in the efficiency of, 
 211 
 
 - ventilation of the, 201 
 
 - what it takes to make, 1 
 One-man office, the, 2 
 
 ORDERS 
 
 - analyzing, 136 
 
 - approved by credit department, 136 
 
 - blanks used in getting, 135, 137 
 
 - chart showing progress of, 137 
 
 - filhng, on time, 136 
 
 - how copies are made, 139 
 
 - number of copies required, 138 
 
 - progress of, 137 
 -registering, 135 
 
 - purchase, progress of, 138 
 Organization charts 
 
 - accounting department, 151 
 -correspondence department, 11 
 
 - functional office, 3 
 
 -sales department, 116 
 Out cards, in filing, use of, 92 
 
 Packing, proper, why necessary, 142 
 Parcel post, shipping by, 144 
 Partnerships and corporations, 179-181 
 Payroll, making up the, 154 
 Penmanship standards and tests, 245, 
 
 246 
 Personal questions, 214 
 Personahty standards, 236, 237 
 Photographs, filing, ways of, 126 
 Points of law 
 
 - in finance, 176-183 
 
 - in purchasing, 114 
 
 - in sales contracts, 134 
 
 - in selling, 130 
 
 - in sliipping, 148 
 Position, how to get a, 213-219 
 Postage, using the correct, 17 
 Post at guide, U. S., use of, 53 
 Posting, definition of, 153 
 Production and distribution, 6 
 Purchase book, the use of the, 153 
 PURCHASING DEPARTMENT 
 
 - following up orders, 104, 106, 107 
 
 - information, how to compile, 100 
 
 - object and work of the, 99 
 -orders, how to handle, 104, 105 
 -quotations, getting and using, 103, 
 
 106 
 -requisitions, the use of, 99, 100, 101 
 
 - sources of information available, 103 
 
 - specification blank, object and use of 
 the, 102, 103 
 
 -standards, 112, 113 
 
 - watching the market, 100 
 
INDEX 
 
 281 
 
 Qualities employers want in employees, 
 215 
 
 QUESTIONS 
 
 - applications of business maxims, 238 
 
 - concerning contracts and other legal 
 
 papers, 133 
 
 - credit and collection records, 165 
 
 - development of the office, 8 
 -elementary principles of bookkeep- 
 ing, 164 
 
 - elementary principles of finance, 184 
 -functions of the shipping depart- 
 ment, 147 
 
 - getting a bond, 228 
 
 - handling outgoing mail, 20 
 -hiring, training, and holding em- 
 ployees, 211 
 
 - how to use directories, 55 
 -insurance, 188 
 
 -office appliances and labor-saving 
 devices, 209 
 
 - office from the manager's desk, 208 
 -office layout, 210 
 
 - opening, sorting, and distributing 
 
 mail, 18 
 
 - parcel-post, express, and freight ship- 
 
 ments, 147 
 
 - partnerships and corporations, 187 
 
 - points of law in shipping, 148 
 
 - routine of the order department, 140 
 
 - sales department, 132 
 
 - some personal questions, 214 
 
 - sources of information, 54 
 
 - technique of business correspon- 
 
 dence, 41 
 
 - technique of filing, 97 
 
 - telegraph and cable messages, 76 
 
 - the treasurer has to answer, 189 
 
 - typing and addressing letters, 41 
 
 - use of labor-saving devices, 165 
 
 - use of the telephone, 75 
 
 - uses of checks, 185 
 
 - values and prices in purchasing, 114 
 
 - work of the purchasing department, 
 
 113 
 
 - work of the treasurer's office, 184 
 
 - your chances for success, 238 
 Quotations, how the buyer gets them, 
 
 ,103, 106 
 
 Railroad guide, 53 
 Records 
 
 - credit and collection, 153 
 
 - necessity for, the, 5 
 -sales, 117 
 
 REFERENCE BOOKS 
 
 - atlases, 52 
 
 - business magazines and journals, 53 
 
 - classification of, 43 
 
 - code book, 49 
 
 - credit-rating books, 49, 50, 51, 52 
 
 - dictionary, 47 
 
 - directories 
 
 - bankers', 48 
 
 - city, 44 
 
 - classified, 46 
 
 - manufacturers', 48 
 
 - partnership and corporation, 48 
 
 - sources of mailing lists, 48 
 
 - special, 47 
 
 - telephone, 45 
 
 - first American directory, 43 
 
 - gazetteers, 52 
 
 - railroad guide, 53 
 
 - social register, 48 
 
 - synonym books, 47 
 
 - trade periodicals, 53 
 -U.S. postal guide, 53 
 
 - value of, 54 
 Registering mail, 18 
 Reports, salesmen's, 117, 118 
 Requisitions 
 
 -correspondence, 91 
 
 - purchase, 99-101 
 Roller copying machine, 25 
 Rosenwald, Julius, 231 
 
 ROUTINE 
 
 - accounting department, 151, 161 
 -correspondence department, 9, 11, 
 
 21, 22 
 
 - filing department, 95 
 
 - general office, 3 
 
 - of the manager, 206 
 
 - order department, 135-140 
 
 - purchasing department, 1 12 
 
 - sales department, 1 16 
 
 - shipping department, 143 
 
 - treasurer's office, 170, 175 
 
 s 
 
 SALES 
 
 - advertising as a source of, 115 
 -by mail, 115, 120 
 
 - contracts, points in, 127, 128 
 -department, organization chart of 
 
 the, 116 
 -department, work of the, 115 
 
 - mailing hats, used in making, 120 
 
 - records of, for the sales manager, 117 
 Sales book, purpose of, 153 
 
 SALESMEN 
 
 - daily report of, 117, 118 
 
 - "ginger ' letters, how used, 120 
 
 - what they do, 115 
 Schedule for advertising, 125 
 Schwab, Charles M., 230, 232 
 Scientific management, 4 
 
INDEX 
 
 Score, how to keep. 253 
 
 Scott, Nellie M., 231 
 Sealing letters, 14 
 Selling standards, 128, 129 
 Shannon file, 80, 84 
 
 SHIPPING DEPARTMENT 
 -authority required, 141 
 
 - bill of lading defined, 142 
 -duties of, 141 
 
 - express and freight shipments, 142 
 
 - labels, how used, 141 
 
 -packing, proper, why necessary, 142 
 -standards of the, 143, 144, 145, 146 
 
 - tariffs, how obtained, 143 
 
 - tracers and claims, using, 143 
 Signing letters, 26 
 
 Simple interest, a test in, 250 
 Social register, how used, 48 
 Special delivery, how secured, 18 
 Specification blank, buyer's, 1 02, 103 
 Stamping envelops, a rapid method of, 
 
 14, 17 
 Standard practice instructions, 202, 241 
 
 STANDARDS 
 -accounting, 161, 162, 163 
 -dictating machine, 30 
 -dictation, 33, 34, 36, 37 
 -efficiencv, 241 
 
 - emplovment, 223-227 
 
 - filing, 95 
 -financial, 175-183 
 
 - historical, 7 
 
 - how they are set, 240 
 
 - how you can use them, 241 
 -mailing, 19 
 
 - methods, 239 
 
 - of accomplishment, 241 
 
 - office, 206 
 
 - of knowledge, 258 
 -order department, 139, 140 
 
 - penmanship, 246 
 
 - personality, 236, 237 
 -purchasing, 112, 113 
 -selling, 128, 129 
 -shipping, 143, 144, 145, 146 
 
 - stenographic, 29, 30 
 
 - telegrai)h, 73 
 -telephone, 72 
 
 - typing, 39 
 -typists', 32 
 
 - what they are, 239 
 Statement of condition, 156 
 Statements, when to send, 154 
 Stencil duplicator, when to use the, 25 
 STENOGRAPHERS (see also Corre- 
 spondence) 
 
 -bonus for, 29 
 
 - correct posture for, 27 
 
 - scale to measure the work of, 31 
 
 - standards of work for, 29 
 
 - test for, 28 
 
 Stock, taking inventory of. 111 
 STOCK ROOM 
 
 - bin tickets for use in, 108, 109 
 
 - clerks on roller skates in a, 109 
 
 - purpose of the, 108 
 
 - unit bins used in the, 109 
 
 -why material should be accessible, 
 
 108 
 Straight-line principle, meaning oi the, 
 
 197 
 Sjaionym book, 47 
 
 Tariffs, how obtained, 143 
 Technique of filing, 97 
 Telautograph, 64 
 
 TELEGRAPH 
 
 - brevity in using. 65 
 
 - cipher and code words, use of, 67 
 
 - compared with telephone, 64 
 
 - day letters, when to use, 68 
 
 - how to make your meaning clear, 67 
 
 - night letters and messages, when to 
 
 use, 68 
 
 - standards, 73 
 
 - time differences, how to reckon, 71 
 
 - transferring money by, 71 
 
 - what it costs to use the, 64 
 
 - when to use the, 59 
 
 - writing the telegram, 65, 66 
 
 TELEPHONE 
 
 - calling the number, the right way of, 
 
 60 
 
 - exchanges, old and new, 61 
 
 - how to answer the, 63 
 
 - how to use the, 59 
 -interhouse, how used, 63 
 
 - memorandum slip for messages, 66 
 
 - standards, 72 
 
 - when to use the, 59 
 
 TESTS 
 
 - addressing 244, 
 
 - analyzing, 257 
 -attention, 203 
 
 - billing, 247 
 
 - concentration. 254, 255 
 
 - employment, 220-222 
 
 - memory and attention, 242 
 
 - mental arithmetic, 251 
 
 - penmanship, 246 
 -ra])i(i calculation, 248 
 
 - score card, 253 
 -simple interest, 250 
 -stenograplicrs', 2S, 39 
 
 - to measure ability, 219 
 -typists', 40 
 
 - vocabulary, 243 
 
 Time, differences in, calculating, 77 
 Topical filing, 98 
 
INDEX 
 
 283 
 
 Tracers and claims, using, 143 
 Trade periodicals, why valuable, 53 
 Transcribing letters, 24 
 Training employees, means of, 202 
 Treasurer, functions of the, 169, 170 
 
 (see also Finance) 
 Trial balance, what it is, 150 
 Typewriter, uses of the, 21, 24, 39, 139, 
 
 157 
 Typing standards, 32, 39 
 Typists' test, 40, 219, 244 
 
 u 
 
 Unit bins, 109 
 
 U. S. Postal guide, how used, 53 
 
 Values and prices in purchasing, 114 
 Vanderlip, Frank A., 230, 232 
 Ventilation, why needed, 201 
 Vertical filing, 81,84 
 Vocabulary test, 243 
 
 w 
 
 Watching your English when dictating, 
 
 35 
 Willard, Daniel, 230 
 Wilson, Thomas E., 231 
 Writing business letters, 42 
 Writing telegrams, 65, 66 
 
.^ THE I'AST DATE 
 
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