-549- For the sake of figures, the man who did a volume of business of $100,000 a year gross sales, prier to 1928, was paid a commission to 10% up to 15% and he would earn approximately $11,000 a year gross. The aver- age salesman made from 2 to 4 trips yearly and received 954 to 100% ship- ments on hLis s.les. Full commissions were paid on all business. Contrast this picture with'the present and we find that this very same man who sold comparative figures of $100,000 up to 1928 is fortunate if his sales today are $50,000 gross. We find instead of receiving 95 to 100i shipments, he is fortunate if his shipments are 70% and he is paid, in the majority of cases, a commission of 5Y or less on net sales instead of gross sales, as indicated by the annexed schedule of rates of commissions naid by 32 representative firms. He now finds it necessary to make at least 4 to 7 trips yearly, with the cost of traveling and doing business no less than 1929. Every manufacturer embodies the selling commission in the cost of his product and, therefore, should take anything out of his own profits. However, on the other hand, the manufacturer who advances his representa- tive a drawing account against the cut commission, finds that at the termination of the year, his salesmen are indebted to the firm, having been unable to do enough business to cover his drawings and the average firm is then inclined to wipe out this deficit. Had the salesmen been paid a respectable rate of commission, as of old, in most cases there would be no indebtedness incurred. However, working under the prevailing lower rates of commission, the manufac- turer finds that it costs him 4% to 5% more. This.naturally makes it necessary for the manufacturer to take an unnecessary loss, whereas if a reasonable and justified commission were originally figured into the cost of the product, this loss would be eliminated and both the salesmen and manufacturer would finish the year with a profit, retaining the sales- men's morale and the employer is completely satisfied, for he too has made a profit and assists in binding the ties of a mutual partisanship and creating a spirit of friendly relations. Pressure being brought to bear as in no other industry, due to lack Sof coordination and cooperation, the handbag salesman has been forced to carry mere than one line. The result is that today 954 of the salesmen carry from 2 to 5 non-conflicting lines in order to earn a meager liveli- hood. No one man can give his honest effort to so many lines and do Justice to himself or to his employer. The conditions above outlined necessitate the making of the fol- Slowing improvement and changes: F 1. Salesmen in the industry should be granted specific territorial rights and these salesmen should enjoy all the rights and bene- fits of any and all commissions that may accrue therefrom directly or indirectly. 2. Salesmen should receive their commissions based upon gross sales.