anaheim-gazette 1935-02-21

THE ANAHEIM GAZETTE HENRY KUCHEL, Editor and Publisher ESTABLISHED 1870 ISSUED EVERY THURSDAY SUBSCRIPTION PER YEAR ... $2.00 SIX MONTHS ... $1.00 Entered at the Anaheim, California Postoffice as second-class matter. LOTS OF TALK BUT NO SENSE Occasionally every one of us runs up against a plausible argument which is nothing more than propaganda to cover up inexcusable methods of merchandising, or an outright attempt to create prejudice and capitalize upon it. Such an argument usually catches the recipient unawares and likely may go unanswered. Here is one that you will hear repeated again and again, and every time it is repeated the teller convicts himself of either total ignorance or deception: That is, his firm can sell this article cheaper, or put more quality into the product for the same price, because it doesn't advertise! Fundamentally, this argument is based upon the common knowledge that advertising in newspapers costs money. Both advertisers and newspapers are proud of the fact that it does. But the proponent of deception tries to infer that because advertising costs money, the price of the article either must be raised or the quality of the merchandise lowered. Therein lies the deliberate half-truth. If the teller of that false argument ever thought through his statement he would blush with shame. Advertising, true, is one of the ways of merchandising. Because it is in such general use and such good repute, both with the advertisers and with the public, it must be worth while. Let's think through the problem and discover the falsity of such a stand. In the first place, take two identical items, and divide the pile up into two equal lots. From one group of merchandise you organize a company and sell under a brand name, telling accurately and simply in forceful advertising the merits Therein lies the deliberate half-truth. If the teller of that false argument ever thought through his statement he would blush with shame. Advertising, true, is one of the ways of merchandising. Because it is in such general use and such good repute, both with the advertisers and with the public, it must be worth while. Let's think through the problem and discover the falsity of such a stand. In the first place, take two identical items, and divide the pile up into two equal lots. From one group of merchandise you organize a company and sell under a brand name, telling accurately and simply in forceful advertising the merits of the product. This promotion campaign in advertising, you discover, speeds up selling of the merchandise to retail outlets a hundred fold. The demand created by advertising soon empties the retail shelves, and re-orders come flowing in, because merchants like to handle a product which gives satisfaction and sells rapidly. The cost of advertising that product is $100,000. The total value of merchandise sold largely because of proper advertising is approximately $100,000,000. One per cent of the gross value was spent in advertising. The successful campaign had created a steady demand, and sales resistance had been minimized. The other pile of merchandise—identical, mind you, in quality for we here are considering only the phase of economical merchandising—likewise was assigned to another company, with instructions not to advertise. The conclusions here presented are no myth, they are proven in thousands of similar happenings in the last decade. Several avenues are open to the officers of the second company. They prefer to sell quickly in order to get their cash, because in this manner they make their money work faster, which means more profit. Prohibited from advertising, they employ the same number of salesmen to call on the wholesale trade. The wholesalers, not being familiar with the product, are reluctant to try it. Very few do, because they cannot afford to tie their money up into a product that might be a slow mover. Blocked from adequate distribution in this normal path, the company officers employ more salesmen, thus increasing their overhead, although the first group didn't pay expenses. Result, the same. Then only two avenues remain open to dispose of the merchandise already on hand. One is to cut the price to such a low figure that the retailer can afford to sell for considerably under the price of the other product. But since the advertised product is priced fairly, any attempt to thus slaughter the price can result only disasterously to the original company. There is one other method, the company can employ house to house salesmen to annoy housewives and eventually dispose of the merchandise. To offset this added cost, either the company must take a loss on its original investment, or it must raise the price to the eventual buyer. If the customer's price is the same, the non-advertising company loses because its cost of distribution is 25 per cent higher than both the advertising and distribution cost of the advertising firm. If the non-advertiser retails its product for more than the advertised product sells, the non-advertiser customer is gyped. The next time you hear some salesman tell you that because his firm doesn't advertise it can put additional value into the product or it can sell for less, remember that his firm isn't in business to lose money and therefore if you buy from him, you'll be the one that loses. If the customer's price is the same, the non-advertising company loses because its cost of distribution is 25 per cent higher than both the advertising and distribution cost of the advertising firm. If the non-advertiser retails its product for more than the advertised product sells, the non-advertiser customer is gyped. The next time you hear some salesman tell you that because his firm doesn't advertise it can put additional value into the product or it can sell for less, remember that his firm isn't in business to lose money and therefore if you buy from him, you'll be the one that loses. IS THIS SOCIAL SECURITY? Unemployment insurance will keep him until he is eligible for old age insurance, says the champion hobo. Why hunt for a job? AN IDEAL GOVERNMENT If we were asked to depict an ideal social organization, we would say, offhand, that it would be one under which any able-bodied, intelligent man or woman could always find work at wages sufficient to provide for the necessities of life and lay aside something for old age, and after forty years of work be able to retire on his or her savings. We think that a government which concentrated on those objectives and on nothing else would come pretty near to being an ideal government. Its corollary functions might well include provision for the security of the thrifty individual's savings, and such regulation of terms and conditions of employment as would at least not impair the worker's chance of living to enjoy the fruits of a life's work, and would protect him on the one hand against unfair competition by the workers of any foreign nation in which a lower standard of living prevails, and on the other hand against exploitation by unprincipled employers. Such an ideal government would protect every man in his right to keep what he has earned, and as an essential part of that protection, would be administered as economically as possible, in order that the burden of taxation might rest as lightly and as equitably as possible upon all its citizens. This ideal government would make it its first concern that every child had an opportunity to obtain the best education of which it was capable. If, in spite of that education, it persisted in making a fool of itself as it grew up, we do not believe that is any part of any government's concern. That is not to say that government should permit the swindler to roam unchecked; it should not tolerate impositions of any kind upon the ignorant and the unwary. But we do not conceive it part SCHOOL DAYS By DWIG Huh! How'd you ever expect him to ever git down that chimbly? He'll never do her! I DUNNO — BUT HE DONE 'ER LAST YEAR AND HE'LL DO 'ER THIS YEAR — THE FAITH O'MEN DWIG of government's business to recompense the victims of their own foolishness and extravagance. The ideal government would neither pamper its criminals nor allow such social conditions to exist as tend to make crimes against the body politic alluring to the young. It would be a government of few laws, and those restrictive upon individual liberty only as the exercise of that liberty infringes upon the liberties of others. It would be adequately policed and its laws would be rigidly enforced. We do not expect ever to see such a government, either in the United States nor anywhere else. We believe that what we have set down represents in large measure what our government is striving for. We think that there are too many people who want government to do a great deal more than the simple essentials which we have outlined, and that progress toward economic recovery is being hampered by too many lawyers and uplifters having a finger in the pie. THE OTHER MOTIVE WORKS Now that the experiment with the "loss" motive hasn't worked, why not try the "profit" motive? WORLD RECOVERY COMING? One of the facts on which American prophets of recovery base their predictions is that business is undoubtedly on the mend in Great Britain and that solid country is now out in front in the march toward recovery. The depression is world wide. There can be no question about this. It followed the collapse of credit inflation which came after the World war. If depression was world wide then it is equally true that recovery must be world wide and any signs of economic healing anywhere in the world must be hailed with satisfaction. One of the American statesmen who has just returned from England and has noted the satisfactory signs there is Henry W. Allen, former United States senator and former governor of Kansas. In speaking of his observations in Kansas and what they led him to conclude, Mr. Allen said on his return to the United States: "Three years ago in England the present national government came into power, a coalition party headed by Ramsay MacDonald, as a direct reaction from the instability of the Socialist-Labor Party. England was then where we are now. Relief funds ran behind millions of dollars every week. The budget was unbalanced. The administration was faced with the problem of reducing the relief costs or increasing the taxes, and the people seemed unwilling to stand for either alternative. Unemployment figures were in the millions. "Today there are less than 1,000,000 unemployed. As a matter of fact, there are only 800,000 able-bodied men on direct relief, States: "Three years ago in England the present national government came into power, a coalition party headed by Ramsay MacDonald, as a direct reaction from the instability of the Socialist-Labor Party. England was then where we are now. Relief funds ran behind millions of dollars every week. The budget was unbalanced. The administration was faced with the problem of reducing the relief costs or increasing the taxes, and the people seemed unwilling to stand for either alternative. Unemployment figures were in the millions. "Today there are less than 1,000,000 unemployed. As a matter of fact, there are only 800,000 able-bodied men on direct relief, cared for as helpless indigents. They receive $7.50 per week for each husband and wife, and 50 cents a week for each child. The unemployed are divided into two classes, those on insurance benefits, that is, receiving aid from funds to which they have contributed themselves, and those receiving what is politely known as 'added public assistance,' or charity. "Recreation centers and compulsory industrial training for the unemployed sustain their morale. In this way unemployment has been stabilized at far less than normal figures, to the low degree of 3 per cent, to be exact. "The budget is not only now balanced, but there is a definite surplus. Recently taxes have been reduced, which is welcome news in any country. Further, approximately one-half of the old cuts in salaries have been abolished, and wages are returning to good standards. Millions more men are back at work, and England has built up a great new light-industries section in the southern section. The home markets have been greatly increased. In the last 19 months 400,000 new houses have been built. A mam-moth slum-clearance program is under way. Communism and fascism have faded out of the political picture. "How has all this been accomplished? By three things: First, the balancing of the budget; second, the use of the protective tariff for the first time to build up home industry; third, the new building program. All struck at fundamental defects." Here are, of course, some very interesting observations, and the methods which were used in putting Great Britain in the forefront of the world recovery march can be studied in the United States with a great deal of interest and benefit. Certainly our government cannot manufacture prosperity by redistributing wealth and playing Santa Claus to our own people and the entire world. SOME BENEFIT, ANYWAY The recent break in relations between the United States and Russia will not help Russia, but it may save the American taxpayers several millions of dollars in expenses for diplomatic service and a new embassy in Moscow, that was about to be built. public works in all probability pork barrels would spring up like mushrooms after a summer rain. THE COCK-EYED WORLD The entrance of the United States into that world court might have been a gesture towards world peace; but yet and still George Washington said we should beware of foreign entangling alliances. PUBLIC GETS A LEMON Just when the nags get to running good over at the track up the boulevard the men behind the gun raise the price of admission. CALIFORNIA HERE WE COME The San Diego fair is the biggest thing on the map right now. Everybody in the state is boosting for the exposition and according to reports people from all over the nation are headed west. Look out, there, stop crowding! THEY EAT THEIR CAKE AND STILL HAVE IT If all the big concerns in business would pay their just taxes to the government, (instead of using their excess profits to form holding companies, thus keeping their wealth intact within themselves) this government would be sitting pretty. ONE HAND WASHES THE OTHER The 2-cent tax on every revolving dollar in business to pay the old age pension would come out of business and every 30 days go back into business. It would not cost the government anything except to collect the tax. H-M-M! H-M-M! THAT'S NICE FRUIT If half the old age pensioners in this state would spend a quarter of their pension each month for oranges and send them to friends in the states where there are no oranges that would put the citrus business on its feet over night. History of Anaheim Officially Recorded In Minutes of Anaheim Water Company, Which are Copyrighted, 1932, by Anaheim Gazette, and Printed In Weekly Installments Town Hall, Sept. 4, 1880. The board of directors of the Anaheim Water company met in regular weekly session. Present Messrs. Dreyfus, Korn, Hartung and Melrose. Absent, Reiser. In the absence of the president, the chair was occupied by Vice President Dreyfus. The minutes of the meeting held on August 28th were read and approved. The zanjero was authorized to hire a man to work on the river and clean out the old ditch. The following bills were ordered paid: H. Knapke, $56; Anaheim Gazette, $10; F. Hartung, $36. The resignation of Theo. Reiser was read and accepted, and upon motion the matter of filling the vacancy was deferred one week. The secretary reported the return of certificate No. 93, E. Schubert, of 22 shares. A certificate was ordered to be issued to J. K. Tuffree on City Lots 51 and 55, 1 share, in lieu of certificate No. 50. The warrant of the Cajon Irrigation company in favor of A. Novarro for $49.30 was ordered cashed, as this company had agreed to be responsible for the wages of said Novarro as zanjero on the Cajon ditch. Mr. J. B. Tombes addressed the board in relation to the consolidation of the interests of the Cajon and Anaheim Water companies. He was told to reduce his proposition to writing and submit it to the board, who would then consult with the shareholders of this company in regard to the matter. The receipts of the meeting were as follows: On account of 13th assess- The secretary reported the return of 10 shares by R. W. Scott esq. Action upon the matter of filling the vacancy in the board of directors was deferred for one week. The receipts of the meeting were as follows: On account of assessment No. 13, $297; sale of water, $6; re-issue of certificates, $.50; advertising delinquents, 50c; total, $305, which amount was paid over to the treasurer at the close of the meeting. R. Melrose, Secretary. Town Hall, Sept. 18, 1880. The board of directors of the Anaheim Water company met in regular weekly session. Present Messrs. Dreyfus, Hartung, Korn and Melrose. The minutes of the meeting held on September 11 were read and approved. The following bills were ordered paid: S. P. R. R., $34; F. J. J. Schmidt, $75; E. Dunham, $13; A. Guillen, $17.50; H. Knapke, $7.50; total, $147.03. By an unanimous vote, Mr. John P. Zeyn was appointed a member of the board of directors to succeed Theodore Reiser, resigned, and Mr. Korn was appointed a committee to inform Mr. Zeyn of the action of the board, and to request his presence at the next regular meeting. The vacancy in the office of president was filled by the election of Mr. Dreyfus to that position; and Mr. Hartung was elected vice president. Mr. F. J. J. Schmidt appeared before the board and offered to pay $8 for the privilege of cutting the willows along TODAY AND TOMORROW By FRANK PARKER STOCKBRIDGE BOOKS The New Deal People are not buying so many books, these days; but good books are selling more than they did. There was a period of several years in which any book would sell if it were only nasty enough, and a great number of prudent-minded would-be authors, who never had mastered even the rudiments of writing, broke into print with volumes which irresponsible publishers put out and which seemed to find a ready market. That sort of "literature" is fading from the scene. In its place are serious discussions of important and vital questions, which people who are eager to know what all the economic troubles are about are rushing to buy. To my desk come many books. In the past ten days I have received not less than six books discussing the New Deal from different angles, all of them events and issues as they have appeared to him as a member of the Roosevelt Cabinet. Mr. Wallace, naturally, approaches his subject from a different angle from that from which Mr. Hoover views the Washington scene. I get the impression that he is not entirely satisfied with the way things have worked out for the farmer, and if he had the shaping of a new agricultural adjustment act it would be quite a different piece of work. IMPARTIAL Non-partisan Another Wallace—Professor Schuyler C. Wallace, who holds the chair of public law at Columbia University—has written a book which gives to the average reader a clearer and more understandable picture of the New Deal than any single volume I have seen. Professor Wallace, while sympathetic. MARK-EYED WORLD of the United States court might have been words world peace; but George Washington said of foreign entangling GETS A LEMON the nags get to running the track up the boulechind the gun raise the on. A HERE WE COME go fair is the biggest cap right now. Everystate is boosting for the according to reports over the nation are look out, there, stop THEIR CAKE AND HAVE IT g concerns in business just taxes to the govholding companies, thus wealth intact within government would be WASHES THE OTHER tax on every revolving cess to pay the old age come out of business, must the government anycollect the tax. M-M! THAT'S NICE FRUIT old age pensioners in this append a quarter of their month for oranges and friends in the states no oranges that would business on its feet over HOOVER . . . His Ideas Liberals, whether they call themselves democrats or republicans, ought to read Herbert Hoover's book, "The Challenge to Liberty." Mr. Hoover is not a literary stylist. He writes plainly, directly and often bluntly. It is hardly necessary to say that he doesn't approve of the New Deal. Many of its objectives, he agrees, as all sensible liberal-minded men agree, are not only worthy but necessary. What Mr. Hoover fears is that, in trying to arrive at economic security by a short-cut, the American people may be sacrificing liberties which they can never regain. What Mr. Hoover has to say about the tendency of bureaucracy to perpetuate itself and expand its functions arises from his own experience and observation. And what he says about the control of business by government and what its consequences may be provides food for deep thought. WALLACE . . . An Honest View I have long maintained that the most perfectly-functioning brain in the Roosevelt Administration is that of Henry Wallace, secretary of agriculture. Mr. Wallace is capable of seeing both sides of any subject and of thinking things through to their logical conclusions. Now Mr. Wallace has found time to write a book, entitled "New Frontiers." It is not a compilation of speeches and public statements, but a fresh record of for the farmer, and if he had the shaping of a new agricultural adjustment act it would be quite a different piece of work. IMPARTIAL . . . Non-partisan Another Wallace—Professor Schuyler C. Wallace, who holds the chair of public law at Columbia University—has written a book which gives to the average reader a clearer and more understandable picture of the New Deal than any single volume I have seen. Professor Wallace, while sympathetic, seems to have preserved a non-partisan, impartial point of view. To the facts about the various phases of the efforts of the administration he adds his own comments and interpretations, which I would hesitate to indorse as a whole but which are plainly and fairly stated. For the average reader, this is perhaps the most generally useful book of the lot on my desk. CONTROVERSIAL, From Ranks James P. Warburg, who was one of President Roosevelt's economic advisors until they parted company over the administration's monetary policy, has written "It's Up to Us," a highly entertaining book on a little understood subject—money and banking. Mr. Warburg knows his subject. He says that the New Deal is like a calf with five legs, but that is because the American people wanted a five-legged calf. Frank R. Kent, keenest and most penetrating of political observers in Washington, is out with a book called "Without Gloves." Anyone who wants to read the inside of the Washington developments as they occurred, and get a pen-picture of many of the personalities involved, written in a racy, breezy style, would do well to read this book. David Lawrence, as profound a thinker as there is in the ranks of journalism, in his "Beyond the New Deal," tries to follow through to the ultimate consequences of the more important efforts that are being made to achieve recovery.