(Continued from page 191) chasing of raw materials and supplies, production, merchandising and especially on rational management, which would deal with the application of common sense to manufacturing methods. "It might co-operate in the enlargement of the field of safe industrial loans by assuring a preferred credit standing to customer institutions whose statements are prepared by approved accountants acting independently of the concern examined, or by recognized appraisal companies pursuing a like course; or by assuring a preferred credit standing to concerns which are operated in conformity with given standards of merchandise valuation, allowance for depreciation, fire protection and cost accounting." "The department could act as an adviser and aid to responsible concerns needing legitimate investment funds. It might co-operate in intelligent consideration of labor problems by giving due credit to sound labor conditions in customer establish ments. "It might co-operate with customers in stimulating their trade associations to work for the establishment of industrial standards such as cost accounting and distribution. Above all, the department will endeavor through personal visits at customers' establishments to establish a closer relationship between the officers of the bank and its industrial customers. "The actual operation of this department will be through a staff of trained men with a knowledge of cost accounting and industrial engineering. They will likewise have a knowledge of the relation of banking to industry, and be in a position to give the industrialist advice on matters relating to banking and finance. Of course the training incidental toward developing such a staff will require time, expense and persistent effort. "There are today 40,000 manufacturing concerns in this country whose methods of handling the same industrial problems are almost as diverse as the number of firms. If a number of different manufacturers or merchants or bankers can agree on a uniform system of allowing for depreciation or of distributing their overhead charges on a standard statement sheet, are the chances not immensely increased of getting a good one rather than if each one groped for one of his own? And it is not merely in cost accounting that standardization can be applied, but in selling organization, factory planning, buying methods and the like. "To show that the time is not far off when every business man will of necessity conduct his business on a sound efficiency basis, with an accurate knowledge of true costs, I quote from Mr. Hurley, the former chairman of the Federal Trade Commission, who said: "I predict that within five years there will be very little money loaned by any banker in the United States to any merchant or manufacturer who does not present a statement showing detailed information not only regarding his assets and liabilities, but also indicating that he is conducting his business in an efficient manner and that he absolutely knows his true costs. "If a banker does not rightly appraise a manufacturer's financial statement, he should be, and I believe would be, glad to be convinced of his error. If, on the other hand, a manufacturer does not realize that he is pushing his bank credit too far for his own safety, or that there is something about his operations or statement that does not appear sound and conservative, he also should be and usually is willing to be shown his mistake. "We may as well realize that after all confidence in the business means confidence in the management, and that complete confidence in the management can best be assured by personal acquaintanceship between the officers of the bank, and if possible by having an officer of the bank thoroughly familiar with the plant and its equipment. The Industrial Service Department through its staff will bring about a more frequent interchange of visits and more cordial and intimate relationship between the bank and its industrial customers" The Metric System Luther D. Burlingame, of the Brown & Sharpe Manufacturing Company, Providence, spoke on the recent formation of the American Institute of Weights and Measures. This organization, Mr. Burlingame said, resulted from a realization of the likelihood that the efforts of numerous government employes, college professors, and others to push the adoption of the metric system in this country might result successfully if not intelligently opposed. The adoption of the metric system, he said, would necessitate the recalculation of all existing dimensions in the English-speaking world, a proceeding which would be little short of disastrous in its effect upon industry in general. "The members of the National Metal Trades Association," said Mr. Burlingame, "do not need to be told what the adoption of the metric system would mean in confusion, expense and delay in their factories, when every energy should be bent towards order, economy and efficiency. What it would mean later in time of peace is that it would involve the same confusion, expense and delay, although without the critical situation created by the war." Too Much Legislation James T. McCleary, of the American Iron & Steel Institute, clearly showed the necessity for stability of law if progress is to be promoted. He urged that legislators be judged not so much by the laws that they contrive to have put on the statute books as by the laws which they prevent from being enacted. Mr. McCleary emphasized the need for business men to take keener interest in legislation and to maintain closer contact with their representatives in legislative bodies. Our Merchant Marine Wallace Downey, President of the Downey Ship-building Corporation, New York, speaking on "Our Merchant Marine," said the country is suffering tremendously financially and is in great national danger through lack of adequate shipping. He stated that from 1810 to about 1860 we had a 10% differential in our tariffs on goods moved in American bottoms, but that in the making of 24 treaties in 1860, it became necessary to abandon this principle to gain other important objects. The decline of our merchant marine had been steady since that day, so that by 1913 it had almost disappeared. In conclusion, he made a plea for the application of protective tariff principles to shipping and prophesied that if we would spend from $8,000,000 to $10,000,000 a year for 15 years, hundreds of millions of dollars would leap into the shipping trade because it would be a profitable industry. At the end of 10 years, we would have at least 5,000,000 tons in our merchant marine instead of 143,000 tons as in 1913, at which time Great Britain had 22,000,000 tons. James A. Emery, Counsel for the National council for Industrial Defense, discussed the various forms of taxation proposed to raise war revenue and the probable effect upon manufacturers. Industry must not only provide the raw material and the finished product for war, he said, but also the major part of the revenue. A depressed or suspended industry cannot provide the revenue necessary, and there should be no interference with business except to such degree as absolutely essential for defense. Hon. Edward K. Nicholson, Bridgeport, Connecticut, outlined briefly the work of the mobilization committee formed in his city by local industrial and business men, for the purpose of utilizing every possible agency in the county and city for the common good. One feature of the work was the arranging for credit for the farmers for such seeds, fertilizer and other supplies as they need. He commended the Bridgeport plan for the consideration of all as an effective means of handling local problems under war conditions. Industrial Education The report of the committee on industrial education was devoted to a statement of the Smith-Hughes bill, providing federal aid for vocational education, passed at the last session of congress. This bill makes an appropriation of $45,000,000 to the individual states for salaries of teachers of trade and home economics, agriculture, and for the training of teachers. To secure these funds, however, each state must accept the provisions of the law. The committee urged each member of the association to take an active interest and see to it that the personnel of his respective state board represents all interests in order that the funds appropriated may be wisely expended. Prevention of Industrial Accidents The committee on prevention of industrial accidents reported that "following the program previously outlined by the Conference Board, the work during the last year has been along the educational line. It is the opinion of your committee, as well as of the entire Conference Board, that the best results in the future will be obtained by quiet and persistent efforts towards the education of the individual workmen. "Recognizing that the largest per cent of accidents are due to carelessness, which fact is borne out by statistics, the Conference Board has caused to be prepared and carefully edited, a series of bulletins published each month or two throughout the year under the title of "The Spirit of Caution." These bulletins have been published from time to time complete in THE REVIEW. They have been very carefully prepared with the idea of demonstrating to all shop workers the need of being continually careful. The Board has also adopted a Safety Picture Book which was first presented at the National Founders' Association's convention last November. This book is printed in large quantities and sold to employers to be put by them into pay envelopes for distribution among their employes. Nearly a half million of these Safety Picture Books have already been furnished by the Board for distribution. "While it may be well known to our members, it will do no harm to again state that the Conference Board, composed of the National Founders' Association, the National Association of Manufacturers and the National Metal Trades Association today stands foremost in the development and distribution of safety devices." Apprenticeship The report of the committee on apprenticeship outlined its work for the past year and expressed itself as "anxious that those who have their apprenticeship systems shall foster and intensify them to as great an extent as possible, and that those who have no such systems shall interest themselves to the extent of conferring with your committee from time to time in |