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 Foregoing Statement

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:

• 1. It does not call for the advertising of their wares by the dealer.
• 2. All skill of salesmanship is eliminated.
• 3. No accounts have to be charged off because of failure.

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.

• Clerks.
• Writing to libraries
• for trade.
• Sending circulars
• and book information
• to libraries.
• Certain reference
• catalogs.
• Receiving order for
• estimate and
• price.
• Looking up same
• and selecting editions
• and pricing.
• Writing to publishers
• about special
• books to be
• priced.
• Correcting librarian's
• errors.

Store Assistance.

• Correspondence in
• general.
• Typewriters, machine,
• paper, etc.
• Advertising for out-of-print
• books and
• general advertising.
• Assistance of other
• clerks.
• Order department
• and laying out order
• and getting
• shorts.
• Receiving department.
• Bookkeeping department.
• Packing and shipping
• department.
• Catalog—reference.
• Freight and express
• on goods bought.
• Returns and credits.
• Postage.
• Loss on bad accounts.
• Theft.
• Depreciation
• of stock.
• Rent.
• Heat.
• Light.
• Care and keep of
• store.
• Salaries and wages.
• Interest.
• Store supplies.
• Insurance and taxes.
• Auditing.
• Cost of books on approval—going
• and
• coming.
• Good will and reputation.

18. The libraries state that

19. In this, the libraries should consider they are not a trade organization, who, like the booksellers, depend on their trade for a living. Publisher and bookseller are one in interest—producer and distributor, and it is economically proper that the publisher's product should pass through the hands of the bookseller, and to whom?—to their clientele, the public. What relation does the library have to the bookseller, other than as a buyer, the same as the rest of the community? It is claimed that libraries are large buyers collectively, but the general public are larger buyers collectively, by many millions of dollars. If the library theory holds good, would not the same theory hold good if the citizens of each community were to combine in their purchasing and demand discounts accordingly? Would this not result in the booksellers' sudden and complete annihilation, instead of a gradual one, as it has been?

20. As to the "increasing charges," there is no more increase to the libraries than to the general public. What brought about these "increasing charges?" The necessity of self-preservation of both publisher and bookseller. Till the beginning of the net system and for some years thereafter books were published at the traditional prices of more than fifty years ago (and later a period of ruinous competition to the bookseller) the discounts to the trade remaining about the same, and this in spite of the fact that the cost of everything pertaining to book-making and its selling had greatly increased, and had not advanced in price, while almost every other article of merchandise, labor, material and the necessities of life, has greatly increased in cost, and increased in selling price.

21. The libraries state:

22. The booksellers do not feel that the libraries are a burden to them. They are anxious to have trading relations with them, but on a mutually satisfactory basis. The library does not need profit for its existence, supported as it is, but the bookseller needs it for his very existence. Were the libraries aware of the actual facts of the case, they would undoubtedly learn to their surprise that the trade done by "the jobbing trade and many dealers" was anything but satisfactory, and were their dealings with the libraries closely analyzed they would find they had made small profit, if not loss, on the total of the books sold to them. The dealers have only shown existing conditions, and have asked for relief.

23. The libraries are not sole buyers of net books. A very large proportion of their purchases are of non-net books, which are sold to them at little or no margin of profit, and at the same discount as the booksellers get. This is ruinous competition.

24. Why then do the trade desire library business under existing conditions? They do not seek this business for its profit-making on general publications, regular and net, for that is almost nil, but for such stock as can be bought at much better discount than the regular trade rates, such as jobs and the like, that they can sell the libraries, and also for the real value of the libraries to the bookseller that their orders often enable him to dispose of certain stock—even at cost—which might take a long time to dispose of. Finally, there is a certain amount of pride—surprising as it may seem—that the bookseller has. He wants to sell the library in his own community, he wants to do all the business of his community, and he feels it keenly that his library is the only one with whom he cannot do business, except at a very small profit or loss; and which trade goes to some other town or state.

25. We trust we have made clear to the libraries the exact business situation as it relates to the bookseller, jobber, and the like. To some extent, what is stated here is no new story. The general assertion has been made by the bookseller that the library business is unprofitable, while the libraries state they believe otherwise is or should be the case, and suggest their ideas as to a remedy.

26. It can be proved, we think, to the entire satisfaction of the libraries, that in spite of the net system and corresponding maintenance of price, the bookseller, jobber and the like, will be happy indeed if he can show the smallest margin of net profit as a result of a year's work in selling regular and net books to the libraries and the public as well.

27. The booksellers, jobbers and the like desire the library business. They believe that it rightly belongs to them in their own locality, and to no one else, be they large or small.

28. They believe the discount given to libraries by booksellers, jobbers and the like, should be uniform the country over, and leave a small margin of profit to the seller.

29. They believe that competitive bidding by the libraries has been detrimental to booksellers, jobbers and the like, as well as to the libraries in many ways, direct and indirect.

30. They believe that the libraries desire to be fair in this matter and not ask for unreasonable terms, and that a knowledge of the real facts of the case of the condition of the booksellers, jobbers and the like, will convince them that the booksellers, jobbers and others are doing all, if not more than they can, in giving the libraries a discount of 33 1-3 per cent on regular books, and 10 per cent on net books, as at present.

31. Booksellers, jobbers and the like fully believe that they can be of great assistance to the libraries and the libraries to them, and it is their earnest hope that close and harmonious relations may be brought about, and that they will do all in their power towards it. The booksellers most heartily endorse the great and good work the libraries perform to the community, and from a selfish point of view, the bookseller freely admits the great assistance derived by them from the influence of the libraries in creating a desire for reading and the possession of books, and the general educating and elevating of the community, and the bookseller also feels that his presence in any community is likewise educating and elevating and that his interests should be reasonably conserved.

32. The booksellers complain that when libraries become publishers, as many of them do, they make their prices net but give the trade little or no discount therefrom. Such books sold by the bookseller, cost him considerable in addition to the published price.

33. They cordially invite the librarians to go into any facts and figures they may desire to be informed about, as to the cost of booksellers doing business and as to the conditions affecting the relationship of both, with a view that all difficulties may be removed, to our mutual satisfaction.

34. We are pleased to learn that the libraries believe—-

1. The approval feature can be dropped.

2. That no library should ask for competitive bids on itemized lists.

3. The bibliographical work is entirely unnecessary by the bookseller and can be dispensed with.

4. That the relations between libraries and the book trade should be placed upon a business basis.

5. That there is no question as to the desirability and the necessity of improving the condition of the book trade, and that they are in sympathy with the apparently successful efforts now being made toward that end.

BOOKSELLERS SELLING TO LIBRARIES AND THE RESULT, IN PROFIT AND LOSS TO THE BOOKSELLER.

The following tabulation is compiled, from actual purchases made from four prominent publishers, by a large bookseller, during a period of one year. These purchases included books in all classes of literature, fiction, biography, science, travel, etc., etc., which would fairly represent the book purchases of a number of libraries for the period of one year. These books were bought at varying discounts, viz.:—2/5, 2/5-5, 2/5-10, ¼, ¼-5, ¼-10, 3/10, 3/10-5, 3/10-10, 1/3, 1/3-5, 1/3-10. Every advantage was taken where possible, to obtain by quantity buying, the extra 5 and 10 per cent, given by the publishers. The amount bought of these four publishers at published price was about $37,035.87, which cost the bookseller about $24,000.00, and included both regular, net and special books.

Let us assume that this bookseller sold these books from his stock to the libraries, at a discount from the published prices, on regular books, of 1/3 and a discount of 10% from the published prices of net books.

It is here shown, what the result of the operation would be to the bookseller, as to profit or loss. The cost point of doing business by booksellers the country over, has been fairly well determined to be on the same average, 28% per dollar of sale. This may fluctuate according to circumstances and location, between 30% and 25%. In order, however, to clearly and fully cover all possibilities in the matter, the expense per dollar of sale has been calculated at 28%, 20%, 15%, 10% and 5% per dollar of sale.

In all these calculations per dollar of sale, no allowance is made for depreciation of stock, fixtures, bad accounts, etc., etc.

It is hoped that a careful analysis of this table will help solve the library problem.

TABLE NO. 1.