of three or preferably five years. The advertising campaign of an industry involving as it often does the education both of consumers and distributors and the overcoming of long existing prejudices requires time. The building of a permanent good will cannot be accomplished overnight.

Advertising Methods.-It is impossible within the scope of this chapter to describe the methods employed by many associations in their campaigns. Every advertising medium has been employed. Government departments, women's clubs, county agents' meetings, public schools, colleges, universities, boards of health have all been utilized where their coöperation was proper and effective. The ancient fair idea has been employed in such great exhibitions as the National Automobile Show, the National Dairy Show and the annual exhibition of the Assn. of Ice Cream Supply Men. The most modern of inventions such as the motion. pictures and the radio are being utilized everywhere. One striking characteristic of the most successful association advertising is the use of a timely slogan which emphasizes the basic idea of the campaign and through repetition imbeds itself in the consciousness of the buying public. Such slogans as "Say it with flowers, ""Save the surface and you save all," or "Concrete for permanence," are known to nearly every one; and each of them expresses a clear definite idea underlying the advertising.

Pitfalls of Association Advertising.-Advertising has become a great science involving a comprehensive knowledge of psychology, of salesmanship, of economics, in fact of all the problems affecting business. The formulation of an association campaign involves a careful study of the product and its relation to competitive products, an analysis of existing and potential markets, a knowledge of the factors and methods of distribution in the particular industry. Advertising has a technical side of its own. Only an expert can know the relative values of the different advertising media in interpreting a product or an industry to the audience it is desired to reach. The formulation of a great association campaign, the preparation of advertisements and advertising literature, the devising of effective means of securing the coöperation of all branches of the industry and of many other organizations requires the utmost skill.

Some conclusions or recommendations derived from the ex

perience of various associations can be stated with a reasonable

assurance.

First, it is unwise for a trade association not to employ an advertising agency of the highest caliber preferably with association advertising experience for a campaign of this sort.

Second, ample time must be given for the raising of funds, planning of the campaign and the establishment of contact with the many elements participating directly or indirectly in the campaign. An association campaign of national scope requires coöperation not only with the distributing branches of the industry but often with many public organizations which may require great diplomacy and tact. Advertising experts must study the problems of the industry. Time taken to raise a generous advertising fund and to develop a well thought out plan, is time well spent.

Third, the campaign should be financed for at least three years. In dealing with the intangible results which for the most part flow from associated advertising, results cannot be secured or measured in one year. The first year of most association campaigns has been a disappointment and unless the members clearly understand this fact and bind themselves to support the effort of an association for a fixed period, the program is in danger of collapse before it is vell started.

Fourth, the control of the campaign should be placed in a very small committee consisting of men in whom the other members have the highest confidence. The paint and varnish campaign, probably the most effectively organized and conceived campaign in trade association history, is in the hands of a small committee composed of the advertising directors of several companies in the different branches of the industry. These men serve without compensation. Both curtailment of expense and expedition of action require a small committee which can meet often for consultation with their advertising agent. This is especially true during the first year when the selection of an advertising agency may involve consultation with many agents and the consideration of many proposed plans.

Fifth, complete publicity of the details of the proposed plan should be furnished the individual members. Competition makes business men naturally suspicious. They are fearful that the

moneys appropriated for advertising may be used to the indirect benefit of certain individuals or factions. A small committee to retain the confidence of the association members should advise the membership fully of its plans.

Sixth, the utmost care should be used to see that if possible the advertising represents the unanimous voice of the members. If so worded or employed as to favor any group or product over another, the whole program will be quickly wrecked.

Seventh, an effective plan must be devised before the campaign is started so that inquiries resulting from such advertising if they involve possible sales shall be made available to all members interested on a fair impartial basis.

Finally, the means should be provided for tying up the national campaign with the advertising campaigns of individual members. Trade-marks, insignia, slogans or other methods may be employed to enable each member of the association to directly capitalize the good will secured by the association campaign. The paint and varnish industry has an executive manager available to assist all the members in their sales promotion work and to synchronize individual campaigns with the big national program. Such coöperation not only utilizes the full force of the national campaign but also impresses the members with the value of association advertising. The use of any such marks or insignia as part of a plan to fix prices would of course be unlawful.

Legality. There can of course be no question as to the legality of association advertising when used to accomplish the purposes outlined in this chapter. Advertising or any other device if used as a means of restricting trade is unlawful.42 The usual purpose of advertising is to stimulate rather than to restrain trade. But it is possible for advertising to be used as a means of restraining competition. Association advertising tied up with a common trade-mark might conceivably be used as a price fixing agency.43 Advertising could be used as the medium. for libeling the products of a competing industry or as a black42 Letter, H. M. Daugherty, Attorney General, to Herbert Hoover, Secretary of Commerce, Feb. 8, 1922, Appendix J.

48 Letter, H. M. Daugherty, Attorney General, to Herbert Hoover, Secretary of Commerce, Feb. 8, 1922, Appendix J.

list or to procure a boycott. It could be used to misrepresent conditions in the industry, and through such deception of the buying public to procure a high level of prices. It could be used to bring about restriction of production or other unlawful results. Such uses by an association, however, are rather improbable. It is an established rule of law that a lawful act may become unlawful when used to accomplish an unlawful purpose. There is no reason why this rule would not apply to advertising as to any other act.

Moreover, at least 28 states have enacted statutes prohibiting the publication or circulation of false or misleading advertisements concerning property offered for sale." These statutes are for the most part comprehensive in their terms although not effectively enforced.

There is little possibility of the violation of any law in the advertising of a trade association. The advertising of a trade association is subjected to so close a censorship in order to represent the united opinions of an industry, and the policies of the association are so closely controlled by men of high standing and prestige in the industry, that its quality is certain to be high. The betterment of advertising since the days of the circus and patent medicine advertising has been remarkable. Through such agencies as the Associated Advertising Clubs of the World. the American Fair Trade League, and other organizations, business men are policing their own advertising in a splendid way.

Coöperative advertising is one of the finest developments of the trade association movement. It has enlarged the field of advertising, giving added weight to this rapidly growing force in our industrial life. It has created markets where no markets existed, removed friction and misunderstanding between producer, manufacturer and distributor, bettered the relationships between industry and government, and brought industry and the general public into friendly and intelligent contact.

44 Report of Joseph E. Davies, Commissioner of Corporations, on Trust Laws and Unfair Competition, 1915, p. 517.

CHAPTER X

TRAFFIC AND TRANSPORTATION 1

THE Overshadowing importance of our transportation system to the economic life of the nation has been emphasized by the war and the developments since the war. The increased efficiency of transportation has probably been the greatest single factor enlarging competition until it has become national and often international in scope. Production and distribution,-indeed the industrial life of America, depends upon the swift interchange of goods through the medium of the railroads. Policies and methods of railroad operation operate directly and powerfully to retard or advance the commercial development of cities, regions, industries and in fact of the nation. Despite the direct pecuniary interest involved in the transportation situation, despite the uncertain and fluctuating policies of governmental regulations which may greatly aid or greatly harm American industry, the shipping public, generally speaking, has always been inadequately organized to properly protect its interest either in its dealings with the carriers or before governmental tribunals.

Our system of transportation, our methods of rate making, our plan of regulation are all the products of a slow evolution in which the varying practices and methods of different regions developed under varying physical and economic conditions and under a highly competitive system of railroading are being gradually standardized and unified or modified as a result of wider experience. Our rate structure is complicated and in no sense final. In discussing rates, the Interstate Commerce Commission once well said:

"The Commission is dealing with a difficult problem, involving multitudinous effects and an infinite variety of modifying conditions

1 JOHNSON AND HUEBNER, “Railroad Traffic and Rates," published by Appleton, is a comprehensive treatise to which I am indebted for considerable information contained in this chapter.