N фуз UNITED STATES DEPARTMENT OF COMMERCE EPARTMENT UNITED STAT COMMERCE ICA OF AMERICA STATES OF AMERICA UNITED ST COMMERCE ISSUED BY THE BUREAU OF FOREIGN AND CONTENT S COMMERCIAL & INDUSTRIAL Wholesale Dry Goods Distribution Costs to Be Studied. National Retail Credit Survey Plans Progress.... Distribution Census and Retail Credit Survey Seen as Fact Finders. "How To Use Current Business Statistics".... European Markets for American Cotton Crop.. Latest Accessions to Domestic Commerce Library. BUSINESS & INDUSTRIAL CONDITIONS National Retail Furniture Institute Discusses Trade Conditions.. No. 21. Page 126 6 8 8 9 3 Inventory, No. of Employees, 4 5 6 8 8 8 10 Salaries and Wages to Size of Establishment... "How To Use Current Business Statistics"........ Los Angeles Gets $1,500,000 Automobile Assembly Plant. INDUSTRIAL DEVELOPMENT Synthetic Nitrogen Production Assumes Significant Proportions.. TRADE & TRADE PROMOTION Trade Practice Conference of Paint, Varnish and Lacquer Industry.. National Retail Furniture Institute Discusses Trade Conditions.. TRANSPORTATION Use of Motor Truck in Marketing Farm Produce... CONSTRUCTION Building and Loan Associations Progress Shown in Report. 127 11333 2517 77 WHOLESALE DRY GOODS DISTRIBUTION COSTS TO BE STUDIED The Domestic Commerce Division is about to begin a study of distribution costs in the wholesale dry goods trade. This investigation, which is being made with the cooperation of the Wholesale Dry Goods Institute, is one of a series of case studies designed to show methods of distribution cost analysis and the benefits of applying the results of such analysis. "Analyzing Wholesale Distribution Costs" (Hardware) and "Analyzing Retail Selling Costs" (Specialties) are available for free distribution, and studies in the wholesale and retail grocery fields are being prepared. These studies consider the distributor's problems in respect to commodities, costs and customers. Commodities are studied to distinguish slowmoving items from those with a profitable turn-over, to relate their proportion of inventory outlay and space to their proportion of sales. In the wholesale grocery study, for instance, opportunities were discovered to reduce the number of inventory items by 50 per cent. The costs of warehousing, selling, and delivery are likewise investigated to discover those commodities which are being handled at a profit and those which bring no profit or even entail a loss. Customer accounts are investigated for the same purposes. As a result of the facts revealed by the wholesale hardware study, inventory items were reduced from 12,000 to 6,500, customer accounts were cut about 50 per cent to include only profitable accounts, the sales territory was reduced about 33 per cent, and yet the dollar volume of net profits was increased 35 per cent, and operating expenses were reduced from 20 per cent on sales volume to 16 per cent. SYNTHETIC NITROGEN PRODUCTION ASSUMES SIGNIFICANT PROPORTIONS Progress in the nitrogen fixation industry has resulted in the production of a sufficient quantity of synthetic nitrogen at such prices as to overcome the Chilean control of world nitrogen prices, according to a statement made by the Chief of the fertilizer and fixed nitrogen work of the U. S. Department of Agriculture. The speaker traced the development of synthetic nitrogen production from the arc process introduced in Norway about 1905, and continuing with the cyanamid process and the later direct synthetic method of ammonia production. Among important synthetic nitrogen producers in the United States are plants at Muscle Shoals, Syracuse, N. Y., Charleston, W. Va., and a plant under construction at Hopewell, Va. According to the speaker, the nitrogen problem has come to revolve about fuel in general, and coal in particular. The industry from its scope and relative absence of limitations on its raw materials - air, water, and coal - seems due for expansion. He stated that Chilean production will not likely cease to be of significant proportions, but that it will have to adjust itself to the world price level established by attainable costs in synthetic production. The trade_practice_conference on the paint, varnish_and_lacquer_industry to be held by the Federal Trade Commission as announced in the July 23 issue, has been set for August 1 at the Ambassador Hotel, Atlantic City, N. J. The trade practice conference for the cotton-seed pressing industry was held by the Federal Trade Commission at Memphis, Tenn., July 24. NATIONAL RETAIL CREDIT PLANS PROGRESS Plans for the national retail credit survey being conducted by th U. S. Department of Commerce now call for distribution of the retailers' questionnaire during September, and of the consumers' questionnaire during October. This arrangement permits ample time to develop the mailing lists, and also passes over most of the vacation months which would likely not be so productive of replies. The retailers' questionnaire will be sent to contacts of the Department and to concerns recommended by the various credit agencies. Several methods for distributing the consumer questionnaire are available, as for instance, through vocational and trade associations, to representative lists of consumers supplied by credit agencies, and through the cooperation of business houses. One manufacturer writes, "In view of the fact that we have offices in sixty important cities throughout the country, we may be able to assist in distributing the consumers' questionnaire among_our_employees." This entire survey is being undertaken by the Department of Commerce upon request and in the hope that such a comprehensive study of retail credit practices will be of benefit to both distributor and consumer. The success of the survey will be in proportion to the support given by all interested parties. USE OF MOTOR TRUCK IN MARKETING FARM PRODUCE The use of motor trucks for hauling farm produce direct from farms to markets is shown in a survey conducted in New York City by the Bureau of Agricultural Economics, U. S. Department of Agriculture, in cooperation with the New York Food Marketing Research Council. The investigation was limited to peaches, cantaloupes, tomatoes, apples and peppers, during the period July 20 to October 22. The survey does not give the complete total of motor truck receipts, but appears to account for the bulk of New Jersey motor truck shipments. During a single week at the height of the season, the truck receipts of peaches were 58 per cent of all peach receipts, apples 78 per cent, tomatoes 52 per cent, and peppers 16 per cent. Cantaloupes arrived by truck from Maryland, Delaware and New Jersey, but railroads carried the bulk of this product from each of these states. Some wholesale dealers claim not to like the motor truck service because they can not hold the truck operator liable for injury to produce during the trip to market, whereas they can bring claim for damage against railroad companies. No other objections from the point of view of the dealer were reported. Many dealers take their own trucks to the producing section and buy direct. This suits the grower because he sells for cash and need have no further concern, though other local dealers sometimes complain that the country markets are upset by this direct buying. CORNSTOCKS TO BE UTILIZED IN MANUFACTURE OF WALLBOARD A company has been formed in Dubuque, Iowa, for the manufacture of wallboards and other materials from cornstocks. It is said the factory will employ nearly 100 people at the outset. The company has been buying cornstocks in Dubuque County for several months, making contracts with each farmer, and it is reported that over 300 cars of cornstocks have been collected and stored, and that an additional 1,000 tons have been purchased to be collected as required. (Des Moines District Office). |