Triannual Meeting of the at Sacramento

REPORT OF MANAGING DIRECTOR H. T. DIDESCH

Mr. President, Members and Guests: My_report begins with a summary of our financial status, which ac_cording to our Balance Sheet as of Wednesday, March 23, is as follows:

Beginning with March 1, the personnel of the Institute organ- ization has been reduced to two people-a stenographer and my- self. Fixed expenses including salary account, are now $1000.00 the month. The financing of the accounting service is no longer a part of the Institute budget, but since February l, has been carried by Mr. Niclas personally.

A more detailed outline of the new financial program will be presented in the report of this morning's meeting of the Board of Directors.

Membership

At the San Francisco meeting, November 18 and 19, I reported a total of 129 active and 16 associate members. The membership now totals 138 active members and 17 associate members. or a net gain of l0 members. Ilowever, there have been 8 resignations-S of them due to withdrawal from business-hence a total of 18 new members has been added to the roster since last meeting.

In explanation of Inventories, $562,60, it should be stated that the amount shown does not include office supplies, but represents "salable" stock only, figured at cost or less. The individual items are:

That increase is our best progress during any period between conventions. We still have a fertile field of prospective members to work on, and by keeping everlastingly at it can eventually increase the roster to 300 active members.

The Balance Sheet lists Accounts Payable at $1626.82, which amount includes salaries and fixed office expenses to the end of the present month.

Accounts Receivable from members, listed at $2642.89 includes a number of Doubtful Accounts. Six members are in arrears 1 year or more. Of those, two have acknowledged their indebtedness and are making payments, while four, whose accounts total $620.00, have shown no disposition to pay up. It will be necessary therefore, either to charge off their accounts as a loss or to set up a Reserve account in the amount of $620.00. Either procedure will wipe out the Surplus of $282;30 and create a Deficit in the amount of $337.70.

On the surface our financial condition appears bad, Actually. however, it is improving and even though the item of $620 of bad accounts is written off as a complete loss, the restricted budget now in eftect, plus the new schedule of dues which has been accepted by 128 members, will create a small surplus by the end of April. Thereafter. there will be a substantial addition to Surplus account each month.

My own efforts, however, cannot do the trick. I must have the enthusiastic cooperation and support of every individual member and every secretary of each Institute Branch. This cooperation must be active, not passive, and it must embrace prompt participation in our activities and wholehearted adherence to our program and principles. I tell you candidly and with a thorough knowledge of the subject that you members who have ignored my questionnaires and other communications, and those of you who have cut prices and raided outside markets and generally disturbed the standards in your home market and outside markets, have done far more to retard the growth of the Institute and jeopardize its status, than all other causes combined that either you or I might enumerate. Just what do you infer would impel a non-member to pay dues to the Institute when he observes price-cuttin! and unethical practices within the ranks that frequently exceed the most vicious tactics of the so-called "uneducated" outsider?

Program Of Activities

The meeting of the Board of Directors at San Francisco on December 17 resulted in the adoption of the following program of activities named in their order of importance: l. Contact.

The Board placed "contact" above all else. This is to be accomplished through the tri-annual meetings and visits of the Managing Director. who is to make a Zl-d,ay trip covering the entire State between each convention. I have made the first of those trips and lrave established contact between 12 local Branches.

2. Standard Pricc Guidc.

The compilation of a Standard Price Guide for use throughout the state was made the second activity, Schedules covering the