RESULTS OF SIMPLIFIED PRACTICE, JANUARY, 1921, тo OCTOBER, 1925-Continued During the past year there has been wider recognition given to established simplifications; an increasing degree of adherence to such recommendations by manufacturers, distributers, and consumers; definite evidence of monetary savings resulting; and an increasing number of requests from industries to the division for cooperation. Adherence to simplified practice recommendations by their original acceptors has been swelled by the adoption of the recommendations by many who were outside the original concerns represented. A recent examination shows that 1,200 trade units have indorsed 33 recommendations. These include 57 producer, 86 distributer, and 255 consumer associations. Acting independently of trade associa tions in their respective fields, 386 individual manufacturers, 255 distributers, and over 200 consumers have adopted and are respecting simplified practice methods which have been established. Typical of increasing adherence is the report of the pavingbrick industry which, prior to simplification in 1921, dealt in 66 varieties of paving bricks and had 80 per cent of its production in 11 of those 66 varieties. In 1924 this industry had 88 per cent in the 5 simplified varieties. Similarly the steel-barrel manufacturers in the first five months of 1925 produced 84 per cent of their 2,126,352 barrels in simplified sizes and only 16 per cent in obsolete and nonstandard sizes. The direct savings possible through simplification are strikingly illustrated in the report of the standing committee concerned with the simplification of steel reinforcing bars, which states: Whereas many of our warehouses were being compelled to carry some 16 to 20 different sizes we have now reduced to 11 sizes. About 600,000 tons of reinforcing bars are sold annually in the United States. Dealers under the old arrangement carried in idle stock between 150,000 and 200,000 tons. With the 11 simplified sizes it is our judgment that this business can be more effciently handled with a stock of about 75,000 tons. In other words, the redue tion in sizes to be carried means a saving in idle stock of approximately 100,000 tons, which at an average cost of about $45 per ton means a saving in capital investment of $4,500,000 for the industry. The Associated Metal Lath Manufacturers, in connection with the simplification of metal lath, state: It is safe to say that the normal quantity of eliminated styles of metal lath formerly carried in dealers' stock represented an investment of $2,000,000 which they do not now have to carry. The space occupied by this quantity of lath, the accounting for it, the general trouble in maintaining larger than necessary stocks would also run up into hundreds of thousands of dollars in yearly savings. Declines in prices to the consumer for many of these commodities are already in evidence. Substantial progress has been made by the American Marine Standards Committee in the simplification of practice in the construction and equipment of ships. Some 20 standards have been agreed upon and more than 100 others are in progress of development. Over 260 varied interests in the marine and related fields are cooperating in this committee. SPECIFICATIONS AND BUSINESS DOCUMENTATION (By GEORGE K. BURGESS, Director, Bureau of Standards, and ADDAMS S. MCALLISTER, Senior Engineer] War experience taught us that one of the great unnecessary wastes of public funds arose from faulty specifications. Four years ago a division was established in the Bureau of Standards to develop standard specifications, and already a great deal has been accomplished in that direction. The Federal Specifications Board, an interdepartmental agency, has now covered over 300 groups of items purchased by the Government. This has required investigation into physical qualities and manufacturing practice, together with the determination of tests to be applied in inspection. Specifications in every case have been submitted to cooperating representatives of industry in order that they may be certain of their practical character. Many State and public institutional purchasing agencies are now using Federal specifications together with a considerable number of industrial buyers. This has already resulted in large economies in Government purchases. The adoption of more uniform specifications, formulated by cooperation between producers and consumers, tends to eliminate waste by (a) more positive competitive action, (b) more reliable standards as to quality and service, (c) more uniform demands upon manufacturers, (d) increased opportunity to manufacture to stock, resulting in more regular employment of plant and labor, (e) greater economy to the consumers, and (f) greater assurance of reliability in service. In response to a demand from private purchasing agents throughout the country, the Secretary of Commerce organized a special advisory board of official representatives of associations vitally interested in specifications to consider the whole question of purchase specifications as used in commerce and industry. Under the direction of this board the bureau has compiled a National Directory of Commodity Specifications containing references to 27,000 items relating to 6,600 commodities which will serve the buying agencies of the country as a guide in securing the best developed specifications. Savings similar to those which can be effected through the simplification of specifications and the number and sizes of articles can also be obtained by reducing the number and complexity of documents needed in a business transaction. The department has aided business interests to standardize the forms of warehouse documents and receipts and is working with special committees of warehouse men, shippers, bankers, and transportation agencies to standardize the terms and conditions on such documents. If standardized terms can be agreed upon, great savings will result in the reduction of delays in carrying on business, the elimination of unnecessary trade disputes, and an increased usefulness of such documents as credit instruments. A trend toward simplification of documents is also visible in transportation. Congress, in the transportation act, 1920, called upon the Interstate Commerce Commission to devise a uniform through export bill of lading to simplify the traffic aspects of export transactions. This movement is in line with action of the leading commercial countries in formulating uniform rules for the carriage of goods by sea. The department has aided the business community to appreciate the value of these efforts by making careful analyses of the uniform through export bill of lading and the rules for the carriage of goods by sea. The simplification of the terms and conditions surrounding a transaction promotes mutual understanding between traders and stimulates commerce. ELIMINATION OF WASTE IN DISTRIBUTION [By JULIUS KLEIN, Director, Bureau of Foreign and Domestic Commerce, and A. E ONTHANK, Chief, Domestic Commerce Division] The Department of Commerce has contributed directly to the elimination of waste in domestic distribution through its work along lines of simplification and standardization. At the same time there American Electric Railway Association, American Engineering Standards Committee. American Hospital Association, American Hotel Association, American Society for Testing Materials, Associated Business Papers (Inc.), Associates for Government Service (Inc.), Chamber of Commerce of the United States, National Association of Purchasing Agents National Conference of Business Paper Editors, National Conference of Governmental Purchasing Agents, National Electric Light Association, and the Society of Automotive Engineers. |