To the President and Members of the American Library Association:
The Trustees of the Endowment Fund of the American Library Association beg leave to submit the following statement of the accounts of their trust—the Carnegie and General Funds—for the fiscal year ending January 15, 1913.
There has been no change in the investments, and all interest has been promptly paid. The Trustees are pleased to call attention to the credit to the General Endowment Fund of nine life memberships, and would recommend that more of such memberships be taken as they are about the only source of addition to that Fund.
On January 31, 1913, the usual audit of the investments and accounts of the trust was made by Mr. E. H. Anderson, of the New York public library at the request of the chairman of the Finance committee of the Association. As evidence of the audit, Mr. Anderson furnished the Trustees with the following copy of his report made to the Finance committee:
Feb. 1, 1913.
My dear Mr. Andrews:
Yesterday, January 31st, I went to the vaults of the Union Trust Company at Fifth avenue and Thirty-eighth street, this city, and with Mr. Appleton and Mr. Kimball, trustees of the endowment fund of the American Library Association, checked up the bonds now in their custody. I enclose herewith their typewritten statement concerning the funds in their hands, and I certify to the correctness of the figures as to the bonds on hand. These I have checked in black ink after a personal count of them at the vaults aforesaid. At their par value they amount to $102,500 for the Carnegie Fund, and $7,000 for the general endowment fund.
I have not examined the bank book of the trustees nor the vouchers for the amounts transmitted to Mr. Roden, the treasurer. Mr. Roden's records should verify the amounts transmitted to the treasurer. If you think it worth while I can examine the bank book of the trustees, but personally I do not think it necessary. If you feel that it should be done, however, return the enclosed typewritten statement for comparison with the bank book. Mr. Roden will also be able to check the receipts for life members. I think Mr. Appleton said that two more had been received since January 15th.
I hereby certify that to the best of my knowledge and belief all of the accounts on the typewritten sheets enclosed herewith are correct.
Very sincerely yours,
(Signed) E. H. ANDERSON.
Respectfully submitted,
W. W. APPLETON,
W. C. KIMBALL,
W. T. PORTER,
Trustees Endowment Fund A. L. A.
May 1, 1913.
| Cash donated by Mr. Andrew Carnegie | $100,000.00 | ||||
| Invested as follows: | |||||
| June 1, 1908 | 5,000 | 4% | Amer. Tel. & Tel. Bonds | 96½ | $ 4,825.00 |
| June 1, 1908 | 10,000 | 4% | Amer. Tel. & Tel. Bonds | 94-3/8 | 9,437.50 |
| June 1, 1908 | 15,000 | 4% | Cleveland Terminal | 100 | 15,000.00 |
| June 1, 1908 | 10,000 | 4% | Seaboard Air Line | 95½ | 9,550.00 |
| June 1, 1908 | 15,000 | 5% | Western Un. Tel. | 108½ | 15,000.00 |
| June 1, 1908 | 15,000 | 3½% | N. Y. Cen. (Lake Shore Col.) | 90 | 13,500.00 |
| June 1, 1908 | 15,000 | 5% | Mo. Pacific | 104-7/8 | 15,000.00 |
| May 3, 1909 | 15,000 | 5% | U. S. Steel | 104 | 15,000.00 |
| Aug. 6, 1909 | 1,500 | U. S. Steel | 106-7/8 | 1,500.00 | |
| July 27, 1910 | 1,000 | U. S. Steel | 102½ | 1,000.00 | |
| 102,500 | 99,812.50 | ||||
| Jan. 15, 1913 Union Trust Co. on deposit | 187.50 | ||||
| $100,000.00 | |||||
In addition to the above we have on hand at the Union Trust Company $150 profit on the sale of the Missouri Pacific Bonds, which we have carried to a special surplus account.
| 1912 | ||
| January 15, Balance | $1,524.33 | |
| February 6, Int. N. Y. Central | 262.50 | |
| May 1, Int. U. S. Steel | 437.50 | |
| May 10, Int. Cleveland Terminal | 300.00 | |
| May 31, Int. Mo. Pacific | 375.00 | |
| May 31, Int. Seaboard Air Line | 200.00 | |
| July 2, Int. Amer. Tel. & Tel. | 300.00 | |
| July 2, Int. Western Un. Tel. | 375.00 | |
| August 8, Int. N. Y. Central | 262.50 | |
| September 3, Int. Seaboard Air Line | 200.00 | |
| September 3, Int. Mo. Pacific | 375.00 | |
| November 1, Int. U. S. Steel | 437.50 | |
| November 1, Int. Cleveland Terminal | 300.00 | |
| December 31, Int. Union Trust | 39.90 | |
| 1913 | ||
| January 2, Int. Western Un. Tel. | 375.00 | |
| January 15, 1913 Cash on hand | 934.90 | $6,064.23 |
| Disbursements: | ||
| 1912 | ||
| January 24, Carl B. Roden, Treas. | $1,524.33 | |
| June 4, Carl B. Roden, Treas. | 1,575.00 | |
| September 18, Carl B. Roden, Treas. | 500.00 | |
| October 28, Rent Safe Deposit Co. | 30.00 | |
| November 18, Carl B. Roden, Treas. | 1,500.00 | |
| January 15, 1913, Cash on hand | 934.90 | $6,064.23 |
| 1912 | |||
| January 15, On hand, Bonds and Cash | $7,286.84 | ||
| February 28, Life membership, C. N. Baxter | 25.00 | ||
| March 28, Life membership, L. A. McNeil | 25.00 | ||
| March 28, Life membership, A. B. Smith | 25.00 | ||
| May 4, Life membership, H. L. Leupp | 25.00 | ||
| May 28, Life membership, W. M. Smith | 25.00 | ||
| May 28, Life membership, L. E. Taylor | 25.00 | ||
| July 2, Life membership, E. P. Sohier | 25.00 | ||
| September 18, Life membership, M. R. Cochran | 25.00 | ||
| November 1, Life membership, S. C. Fairchild | 25.00 | ||
| $7,511.84 | |||
| Invested as follows: | |||
| 1908 | |||
| June 1, 2 U. S. Steel Bonds | 98½ | $1,970.00 | |
| October 19, 2 U. S. Steel Bonds | 102-5/8 | 2,000.00 | |
| November 5, 1½ U. S. Steel Bonds | 101 | 1,500.00 | |
| 1910 | |||
| July 27, 1½ U. S. Steel Bonds | 102½ | 1,500.00 | |
| January 15, 1913 Cash on hand, Union Trust Co. | 541.84 | $7,511.84 | |
| 1912 | ||
| January 15, Cash on hand | $175.00 | |
| May 1, Int. U. S. Steel | 175.00 | |
| November 1, Int. U. S. Steel | 175.00 | $525.00 |
| Disbursements: | ||
| 1912 | ||
| January 24, Carl B. Roden, Treas. | $175.00 | |
| June 4, Carl B. Roden, Treas. | 175.00 | |
| January 15, 1913 Cash on hand | 175.00 | $525.00 |
In last year's report it was stated that a special collection, showing the kind of work done by library binders, had been started by this committee. During the past year this collection has been materially increased by samples submitted by different binders; it now includes work from 34 binders covering the entire country from the Atlantic ocean to the Pacific. The collection was formed so that when librarians write to ask about the work of specific binders, the work itself can be examined and intelligent answers given.
Notices of the collection were printed in the various library periodicals and a certain numbers of requests for information have been received; a smaller number than the committee hoped for, but sufficient to warrant keeping the collection up-to-date.
In view of certain criticisms of this collection, it may be well to state that it is not the purpose to print criticisms of the work of different binders, or to grade them in any way. When asked for information the committee will not compare the work of one binder with another, neither will librarians be advised to desert one binder and employ another. All that will be done will be to send suggestions as to ways in which the work of the binder in question can be improved. In order to do this the work of the binder must be available for examination. The committee fails to see how any binder can take offense at this method, or claim that other binders are being officially recognized by the A. L. A.
The announcement of the publishers of the Encyclopaedia Britannica that they were about to issue a Yearbook which would be printed only on India paper called forth a protest from this committee against the use of thin paper—a protest which had no effect whatever until letters protesting against its use had been sent to the publishers by 50 librarians of the larger libraries. Even then the sole concession that the publishers made was to agree to bind 750 copies on ordinary paper, provided that we could guarantee a sale of that number. For this reason the committee asks that those who wish to purchase a thick paper edition of the Yearbook register their orders with the committee. If the total number by July 1st amounts to 750 copies, the publishers will be notified to that effect. Many librarians have refused to buy the India paper edition, and it is evident that if all librarians would refuse to get it, the publishers would realize that the demands of librarians in this respect should be heeded.
There have been comparatively few reference books published or announced during the year which the committee felt would need to be bound especially for library use. It was thought advisable, however, to submit our specifications for binding the new editions of the Standard Dictionary and Appleton's Cyclopaedia of American Biography. The publishers of the Standard Dictionary adopted practically all of the specifications and the publishers of the Cyclopaedia of American Biography now have them under consideration.
In this connection it is worthy of notice that the publishers of reference books are not only giving studied attention to binding processes, but they also realize more fully than they did a few years ago the necessity of using leather which is free-from-acid. Until within the last two or three years it has been difficult to get leathers tanned according to the specifications of the Society of Arts. Recently, however, several firms in this country have begun to specialize in leathers free-from-acid; and in addition to this, the Government Printing Office insists on having a certain amount of such leather and calls for it in its proposals for bids. These are encouraging signs that in the future we may hope to get leather which will not disintegrate so rapidly as that which we have been obliged to use for many years past.
With assured standards of book cloths and leathers, which manufacturers, publishers, binders and librarians each year are recognizing more and more as vital to the proper construction of a serviceable book, there remains only paper to be carefully standardized. Some efforts are being made by private companies and by the government to discover which papers are best for certain uses, but at present the librarian at least knows little of the subject and is practically at the mercy of the publisher.
ARTHUR L. BAILEY,
ROSE G. MURRAY,
J. RITCHIE PATTERSON.
At the Ottawa meeting of the American Library Association this committee reported simply progress, without giving details of its work during the past year, but it had submitted the following report to the Executive Board, which we now submit to the Association at large, and follow it up with a further report of the action of your committee during the past year.
To the Executive Board of the American Library Association.
The A. L. A. Committee on bookbuying met with a committee from the American Booksellers' Association in Cleveland on May 13, 1912 for the purpose of discussing book prices and discounts to libraries. As it was found impossible to come to any satisfactory understanding before the annual meeting of the associations, it was decided to make only a report of progress. It was, however, further agreed that a more detailed report should be made to the Executive Boards of the associations to ascertain if the Executive Boards deemed it wise that the discussion should be continued.
The Booksellers' Association at its annual convention held in New York in May has accepted the report of progress, and has reappointed its committee.
During the year 1910-11 your committee had much correspondence with the officers of the American Booksellers' Association, with the librarians and with the booksellers throughout the country on questions of the upward tendency of book prices and the efforts which were being made to decrease the discounts to libraries.
At a meeting of the American Booksellers' Association held in May, 1911, a committee on "Relations with libraries" was appointed to take up the matter with the committee of the A. L. A. Shortly after this committee was appointed, your committee asked that a time be set for a meeting. As the chairman of the Booksellers' committee was abroad, the matter was postponed until September. In September the A. L. A. committee was asked to prepare a statement and submit it to the committee of the American Booksellers' Association, to which they agreed to make a reply, the two papers to form the basis for a discussion at a meeting to be held as soon as the Booksellers' reply had been prepared. We submitted the statement requested in October, 1911. Although repeated requests for a reply were made, we did not succeed in getting a copy until March, 1912, and notwithstanding repeated requests for a meeting to discuss the matter, none was held until May 13, 1912, on the eve of the annual conference of the American Booksellers' Association.
We attach a copy of the statement made by your committee and the reply by the committee of the American Booksellers' Association. The attitude of the members of the committee of the Booksellers' Association at the meeting referred to did not differ from that taken in the reply excepting that they were willing to modify the expressions in the reply to a considerable degree. It urged that special attention should be given to the tables of business loss and profit, which had been prepared in the book store of Brentano's. In connection with these figures the net books should be most considered so far as the new books are concerned. At the present rate of increase of books so issued it will be but a short time before all books are so published.
Your committee was asked to admit that it was morally wrong to demand that the booksellers should do business at any such profits, or loss, shown by these figures. Your committee did not feel that it was justified in taking that position, nor would it be even if it were more certain of the accuracy and fairness of the figures.
Without doubt there is much that is wrongfully asked or required of the booksellers by some of the library people, which must of necessity add materially to the cost of doing business, but this, we believe, should be paid for by those asking the special favors, and should not be covered by a regular charge upon all library business. There was much to be said in favor of the booksellers' increase of prices if it needs to cover such expenses.
On the other hand, it is thought that the bookseller is not justified in all of the increases which have been made in the prices of books to libraries; as, for example, the discounts now allowed to libraries from prices of the net fiction and net juveniles.
It is believed that, with the right spirit of coöperation, there are certain changes that might be made which would help the bookseller, as well as the librarian. If what we understand to be the present attitude of the booksellers remains unchanged, if they are unable to give as well as to take, your committee feels as though the discussion might as well come to an end. We believe that there exists considerable difference of opinion among booksellers as to the justice of the terms now being offered to libraries as large buyers of books.
It will be a matter of great regret if there cannot be established most cordial relations between the libraries and the Booksellers' Association. At the same time, we do not think that the A. L. A. should establish such relations upon terms made wholly for the benefit of the booksellers.
We think that the Executive Board should know the present condition of the negotiations, so that it might, if it sees fit, instruct its future committee.
(Signed)
WALTER L. BROWN,
CARL B. RODEN,
CHARLES H. BROWN.
Committee on Bookbuying.
Statement Made by the Committee on Bookbuying of the American Library Association to the Committee on Relations with Libraries of the American Booksellers' Association.
October, 1911.
To the Committee on Relations with Libraries, American Booksellers' Association.
Gentlemen:
We send you herewith a brief statement of the position of the Book Buying Committee of the American Library Association in relation to the subject which we hope to discuss with you.
The relations between libraries and the book trade should be placed upon a business basis, and the discussion of them upon any other ground is not asked for by the libraries.
There is no question as to the desirability and the necessity of improving the conditions of the book trade, and we are in sympathy with the apparently successful efforts now being made toward that end.
The libraries ask that at this time of reorganization and radical changes a careful and just consideration should be given to their claims as large buyers of a special character. This has always been recognized in the past, and is the reason for the special discounts allowed them by the booksellers.
The library trade as a factor in the book business is of increasing importance. While it may not be considered as "Wholesale business" if, as it is claimed, that term implies the purchase in quantities of single titles and involves a business risk in such purchases, yet it differs so much more from the character of the retail trade that in the new adjustment of discounts there would seem to be little justice in charging against it the expenses of retail trade.
We believe that the amount of library trade, and its peculiar character warrant your association in having appointed a committee to consider its claims.
In dealing with libraries many of the largest items of the expense involved in the conduct of the retail business are wholly unnecessary. It can be conducted as well by dealers on back streets or in lofts as it can be by those who have the most luxurious and expensive stores to attract the retail trade, it does not call for the advertising of their wares by the dealers; all skill of salesmanship is eliminated, and no accounts have to be charged off because of failure.
It is claimed that there are other expenses as great, perhaps, as those mentioned, which are peculiar to the library trade, but in reality are not called for in the business of many libraries, and while, perhaps, they are customary, they are really necessary in but few cases, if any. These expenses would seem to be rather the result of bookselling methods than because of any peculiar demands of the business. These "bad features," as they were called in your recent convention, were pointed out as being
(a) Very slow pay,
(b) Its approval feature,
(c) The practice of asking for competitive bids with the lack of ability to judge squarely of such bids.
We cannot see that any of these features are of vital importance to the library. To many libraries, as we have said, they do not apply at all, and probably others would be better off if they were not allowed by the trade.
The "approval feature" which was made much of by one of your officers, is, we believe, quite as much the fault of the dealers who wish to urge the sale of their stock as it is the fault of libraries who wish to examine the books before purchasing. Many books are sent out to libraries on approval which have already been passed upon, or are entirely outside the range of their purchase, and involve an expense of time to the library, which is forced upon it by the bookseller.
We agree that no library should ask for competitive bids on itemized lists, for the gain to the libraries who do this is much smaller than the expense involved. It is probable that such lists would show a lack of bibliographical detail and would require much time in wasted effort on the part of the bookseller. Library authorities purchasing books in this manner might, perhaps, be expected to show a "lack of ability to judge squarely of such bids." We believe that the bibliographical work of the bookseller in searching for the best (or more often the cheapest) edition to quote on such a list is the most expensive work the bookseller would have in this trade. Such work is wholly unnecessary, as the selected lists of recommended books published by the American Library Association, as well as those published by the state and local associations and the large libraries, are in the habit of stating the edition, the publisher's name and the price. It is safe to say that all libraries are supplied with such bibliographical aid to the extent of their needs and purchases.
This question, however, has little to do with the trade of the libraries conducted according to modern methods. The best libraries do not send out for competitive bids on itemized orders, and they do place the necessary bibliographical detail on their orders, and we might add that their officers are fully capable of judging squarely the editions supplied and the price quoted.
We should like to see the book trade classify the library business as peculiar to itself. Taking the best library trade as a standard, it might suggest some requirements which should be asked for in return for obtaining the library discount. If the business is free from these faults with which it is more or less justly charged, it should be profitable to the bookseller.
We believe that libraries have a right to protest against the increasing charges made to them for the passing of the books of the publishers through the hands of the booksellers, and that some concessions should be made in the discounts now granted. We believe that there is ample room for increasing the booksellers' profits by the reformation of its methods, or perhaps we should say the library methods, which are now accepted by them. The general increase and the tendency toward further increases in the charges for the handling of books for libraries by the rules of your association we believe to be unjust, and that we are fully justified in asking that a careful consideration be given to this question with a view toward making more liberal discounts to this trade.
We do not believe that the last move of your association in making the same discount on net fiction as upon other net books is warranted, for we think it would be only fair to grant the libraries a proportion of the larger profit which the bookseller receives by reason of the extra discount allowed by the publishers on net fiction. If no other concession is made, we believe that a better price should be offered to libraries on their purchases of net fiction.
We should regret to have the booksellers take action which would give the libraries the impression that their trade was a burden to the booksellers; that the members of your association required a larger profit from them than what is amply satisfactory to the jobbing trade and many dealers.
It is to the interests of the library to foster friendly relations with the local booksellers. We believe that together they can be of more service than when working against each other; it is good for the community; we believe that it is also to the interests of the booksellers to keep the library trade, not only because of sentimental reasons, but because it pays. Not only are the library accounts practically guaranteed and the requirements of display, advertising and salesmanship minimized, as we have already stated, but the library is often the only buyer of many books which are received by the booksellers. No other one customer keeps the stock moving to such an extent as the library. None other wears out books and calls for so many duplications after the period of popular demand, taking from the bookseller's shelves books which he need not re-stock. Much of this kind of trade prevents actual loss which the bookseller would have without the library customer.
We are not at all convinced that the booksellers are losers in the library trade, nor do we wish to be placed in the position of receiving special favors. The libraries like to feel that the booksellers are giving them fair prices so they will not be constantly shown by out-of-town dealers how much cheaper they might have bought their new books by waiting a brief time after publication.
Wide margins of profit always lead to the cutting of prices unless the trade is absolutely controlled, which is not the condition in the book trade at this time.
We wish to be in a position to urge all libraries to buy of the regular dealers in their localities, and trust that your committee may be able to see some way of recommending further concessions to the library trade.
Answer to the library Committee on Relation with Booksellers, as proposed by Charles E. Butler, Brentano's, New York.
1. We agree that the relations between librarians and booksellers should be on a business basis, and that there is no question as to the desirability of improving the condition of the book trade.
2. We are in hearty sympathy with the desire of the libraries, that a careful and just consideration should be given to their claims for better discount as large buyers collectively of a special character.
3. It is the most earnest desire of the book trade to be absolutely fair and just toward the libraries. We fully and most sincerely believe that the libraries would not for a moment desire or expect that their purchases should be made at the sacrifice of a trade, whose very existence depends on what reasonable profit can be made by them in their business transactions.
4. The libraries believe that the booksellers can make better discounts than they do now, if they carry on their business along the lines indicated by them, while the booksellers claim that the present condition of buying and selling prohibits them from making a profit, but is actually productive of loss, and that the method proposed by the libraries is not possible.
5. The booksellers are of necessity the agent of the publisher. If his business is not self-sustaining, he must fail. The reduction of real booksellers, by a most liberal construction of what constitutes a bookseller, from about 3,000 when our population was 40 millions to about 2,000 with our population at 90 millions, is evidence of the truth of this assertion. The booksellers are entitled to sell to everyone who buys books, libraries or others.
6. The libraries are not booksellers, therefore they are not entitled to booksellers' discounts, which they are now getting from certain sources. Thus, booksellers are deprived of the library business.
7. The bookseller is an important factor in any community in which he is placed. He is taxed by city and state. His educational influence cannot be estimated. His capital, his brains and physical effort are all invested in making his business a success. To do so, he needs reasonable profits, and it is business folly to do any part of his business that results in a loss.
8. A great majority of the libraries are created and supported by direct taxation, by charitable contribution, endowment, legacies and the like. It is true, the libraries have to be conducted in a careful, businesslike way simply keeping within their means. Doing this, they are free from the booksellers' anxieties and difficulties as a merchant.
9. The unique position enjoyed by libraries in the community as to their capital and freedom from commercial risk, and exemption from taxation and rent, has raised the question: "Why should they receive discounts on books?" Do they, as libraries, get special discounts on their building, their shelving, light, heat, electricity and supplies, etc., etc.?
10. The libraries state that in booksellers dealing with libraries many of the largest items of the expense involved in the conduct of the retail business are wholly unnecessary.
"It can be conducted as well by dealers on back streets or in lofts as it can be done by those who have the most luxurious stores to attract the retail trade; it does not call for the advertising of their wares by the dealer; all skill of salesmanship is eliminated and no accounts have to be charged off because of failure."
11. The bookseller establishes himself in every community, in such locations as will attract trade—generally the best—limited only by his capacity to pay rent and expenses. This is vital to his success. A bookseller locating himself on a back street for the purpose of doing business to enable him to give the library a large portion of his small earnings would speedily end his career. He could not get enough library business to exist on and his chances of doing a general retail business, on a back street, would be very small indeed. He would become solely a 25 per cent or 30 per cent buyer, 10 per cent which he gives to the libraries, with a possible 28, 25 or 20 per cent expense account. We do not believe that the libraries would knowingly ask anyone to do business under such circumstances for their benefit. Will the libraries figure this out?
12. Presuming, for the sake of argument, a bookseller does locate himself on a back street for the purpose of doing library business: He must be a bookseller to get a wholesale rate. A mere agent not carrying stock, but simply buying on orders, would not be supported or supplied by the publishers, as he does not carry stock or assume the risk of the business.
13. He would therefore have to carry a reasonable amount of stock to be considered a bookseller. The libraries may not know that the discount given the bookseller is qualified by the quantity purchased of each item. Thus, the average trade discount now prevailing on net books and net fiction is 30 per cent in small quantities. If he purchases 10 to 25 copies of a title, he gets an extra 5 per cent. If he purchases 50 to 250 of a title (according to the publisher and the book offered) he gets an extra 10 per cent. The libraries familiar with this discount, and being misguided as to the results, argue that a better discount than they now get should be given them by the bookseller. We have not included here the great number of books published at such discounts as 25 per cent, 20 per cent, 15 per cent, and even 10 per cent, to which must be added transportation and other charges. More of such books are bought by libraries than by the retail buyer, such as educational books, scientific books, medical books, law books, subscription books, etc.
14. Now this is what really happens to the man on the back street, as well as to the bookseller on the principal thoroughfare. It is safe to say that out of the purchase of 100 new books of any one house, say for a period of a year, about 90 per cent would have to be bought in small quantities at a discount of 30 per cent, about 5 per cent at the extra 5 per cent discounts, and 5 per cent at the extra 10 per cent discounts. Thus, buying 90 per cent of his stock at 30 per cent and selling to libraries at a discount of 10 per cent leaves 20 per cent to do business, with an average expense cost to the bookseller of 28 per cent on every dollar of sale. The 10 per cent at better rate would improve matters very little, as can readily be seen. It does not seem as if the bookseller could make better discount than he does to the libraries and it really is a question whether he is justified in giving as much as he does now, if able to give any at all, except at a loss to him.
15. The theory has been advanced by the libraries that all their business should be considered by booksellers as an independent element in the business and not chargeable with the 28 per cent cost per dollar of sale, but that the library business should be charged with a much less ratio of expense, thus enabling the bookseller to gratify the desire of the libraries for a further discount. They base this proposition on the following claims:
The facts are that the smaller libraries, and to some extent the larger libraries, are constantly supplied by publisher and bookseller with circular matter regarding new and forthcoming publications, letters and personal visits as to special publications, as well as sending the new books, as issued, on approval, at considerable cost and trouble, and some loss of sale, because books are not available for display to possible buyers who visit the dealer's place of business. The proper handling of library orders to any reasonable extent requires skilled clerks with good knowledge of books, the use of catalogs and the ability to work out titles correctly that are incorrectly given, and which is so often done. It is true that no accounts have to be charged off, but library accounts require much care and trouble in making duplicate and triplicate vouchers, many have to be sworn to before notaries, in some cases depositing money as security that goods will be supplied at prices quoted, and generally a long wait before the bills are paid, and many minor troubles annoying to both libraries and dealers.
16. As a business proposition, the making of a library department a separate one from the business, and determining its exact cost of maintenance, and basing the library discount thereon is not feasible, for the reason that the bulk of its operations are so interwoven with the business, requiring the assistance of the entire force at many stages that it would be impossible to pick out and determine what each operation costs. Again, the profits and loss of a business can only be finally determined at the end of the fiscal year, when the stock is taken, and the books closed—a very anxious moment indeed for the bookseller. He then knows, to his joy or sorrow, how much it has cost him to make one dollar of sale, and what profit or loss he has made on each dollar of sale, on every class of merchandise he has sold, the library trade included. This percentage of sale is his guide for the following year, and as a good business man, he must eliminate every class of merchandise he sells that does not produce some profit. No business can work successfully otherwise.
17. The following table will show the various ramifications of a special library department in the business, if carried out as proposed. What suggestions would the libraries make in a case like this?
18. The libraries state that