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?

Work of the library clerk.

Store Assistance.