THURSDAY. DECEMBER 23. 1920
PAGE THREE
ADDRESS OF C. W. MATHESON
Delivered Before
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Dodge Brothers Texas Dealers at Dallas, Texas
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November 15, 1920
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Gentlemen, It would bo very difficult
for me to tell you how deeply I ap
preciate your welcome, and it would
be equally difficult for me to tell you
how happy 1 am for thin opportunity
of di: < us. lng our problems with you
around the family tubl”. Each one
of you is a member o’ Dodge Broth
ers business family,
and between
us th< re have never been my
Hecrets.
Everything
that Doil :o
Brother luii ii-inc in .lien 1 k-.tio.i-
ship with ii. ir dealers ami tiie pub
lic in in: ope: bool:. Wo have neve ■
kept any : ccrets from them. ’ We
have told you frankly, ah,:
. wlr
we have wanted you to do certain
things, so today I i.m going to dtseii-
with you some of tlie inside pi obi‘ins
of our bus:ne; .
reason fhey <1 ■ not uni» ami va
ing years, until today, by making
il
is becau
they h.,Ve never been
the simple statement that Mr. H. E.
taeght vain»
ouJ th ■ leuson tin y
Dodge made to me a few weeks ago
h.iVi- never beta lau ht values is when he said: "Today, Dodg. Broth
b.cause they have n■ we.- had anv eis’ profit per car is a smaller profit
stand ml •> go by. Tl. ’ itnderstai.l
per car than when Dodge Brothers
tlie gold t:i..'i.:i<l, l.'.i' liny de 11 t •first sold the car for seven hundred
understand : lie motor car ufandi.rd
eight-five
dollars.”
1 I want
you
of value.
Do lge Brothers
five
gentlemen to get the full meaning of
years- six yen’-»
ig.>, undertook to
that, and to do so, I am goini: to give
and did t table h a standard of mo-
you somfc figures. There is
pop-
tor car value; a .»tanda rd by which
ular Ï eeling fostered by many nevvs-
hmotor cat value could be jtnr. -d.
papená who se editors ar< not suf-
How did they go about io do that?
f.
Hy inf irmed, 'hat the price» of
They determined. first of all. they man r ials th. at enter into the constrn-
would not build a car Lo conform lo
I! .. i mote >r cars ate lower, and are
price, but Instead , they would build
be coniing lü’ wer and lower every day.
a car to (-o’ fo:ii. to an ideal which
M hat are t lie’ fact -? The price of
exi ted in their minds
i hey be-
is not lower, the price of pi:
lievtd the public wanted a bet'. :
iron is not substantially lower, price
o.
, p . is not lower. On the con
These are times which wer- pre ear of a certain type; they believ'd
the public wanted a car of a cer.a'n
trary, pig iron, today, sells for forty
dicted whin I was I ere January la..’
type that they could afford to buy,
'■ forty- tv.o dollar, a ton. We ha>e
Every dealer was then u. ving Dr -
that would be safe to ride in; that
ii our yard enough pig iron io build
Brothers to ship him more <•
;
al: ilie Dodge Brothers cars we can
every dealer v. aS urging Dodge Bro v. mid give them assurance of long
life an economical service, a good
build between now and nex> May at
thers to build more cars; to build
looking,
easy
riding
high
grade
car.
the .aie of six hundred twenty-five a
more factorin',; Io lure more nu n; to
at
a
low
price.
There
v
as
not
such
da. ,
d tlikt pig iron cost us twenty
do moi- business. The records <.f
a
car
as:
that
in
the
market
at
that
nine dollars a ton. The market has
that nmeii.iv will show you that I
time.
Dodge
Brother.-
undertook
to
-
gc’ to break from forty- two dollars
told you then that it would be Dodge
and did build that kind of a car.
to .twenty-nine dollars before the
Brothers policy never to expand in a
price of Dodge Brothers car will be
spectacular fashion, but Dodge Bro I will give you a few illustrations to
show you how they cat. ied out their
affected.
Coal, thousands of tons,
thers expansion would be gradual,
plans. We will take for example,
co
us six dollars forty- eight cent:
sane, sound and safe, both for Dodge
the radiator.
All radiators up to
a ton at our plant because we bought
Brothers and their dealcis.
that time had been made of bra s.
it long ago, paid for it, and had It
We have that expansion program
All the type of radiators in the mar delivered before the freight rates id-
on the way
It may seem si ai.ge to
ket at that time were tried out. The
vi need. The same way with sand,
the public al lart.e, that I’ dge Bro
tubular type of radiator was found
limestone, lumber, all kinds of met
thers are now employing more than
to be tlie most efficient; it
was
al. .. Acics and acres we have, cover
twelve hundred hands dally, doing
made of brass, Mr. John F. Dodge
ed with those materials, and paid for
nothing but constructing new, lar a r
inquired how much more efficient one, two, three years ago.
quarters, in Hie form of new j .uu..c-
would that radiator be if its >
core
The price of Dodge Brothers car
tive buildings, which, when equip was made of copper. On test» it
today, is based upon those costs. The
; roved to be six percent more effi pt ice of Dodge Brothers cars today,
ped, v.:!’. repr
,t a value of ap
cient thaif the same radiator male
proximately eight
million dollars.
is not a replacement price. I am
of brass. Mr. Dodge then said, “Onr sure you know what I mean by re
Dodge Brothers did no: discon nue
radiators will be made of copper.”
those building operations, did rol
placement price.
To illustrate: a
He did not ask, how much more will
discontinue that expansion program,
friend walked ir.to a shoe store dur
it cost if made of copper; lie askeT ing the war period to buy a pair of
just because cotton happens to lie,
how much more efficient will it be shoes fo. hi; little daughter. The
for the moment or for the hour, at
if made of copper. He did not care
the lowest price in its history, or
’S,
price given him was six dollars.
He
what the cost was, because
that,
nearly so; because cotton can not
bought the shoes, then on looking
cost would be figured in the selling
stay there for ever. History is full
them over found a price tag on the'
price.
and overflowing with evidence that
bottom of one shoe, marked four dol
reaction equals and always follows
lars fifty cents. Through that price
Another illustration i: that of the
action, and I told you in the same
had been drawn a line, and over the
starter generator. Dodge Brothers
words last January, that we wanted
line «a. ill:- kid six dollar:. Why?
t ied our the leading starter gener
you to prepare for this very time.
Because, to replace that pair of shoes
ators. There were many well-known
I told you then that time, were ab
on tlie day they weie sold would cost
hi, i-g.ade starter generators in the
normal; very much so; I told you
more money than the original pro e
of
market, the name of any one
then that it would be wise for ev
at which the shoes were bought ini
which, in the specifications of
a
ery dealer to be sure that he enjoy
the sale price made. A four dollar
new car, would have carried with it
ed Hie friendly interest of every
and fifty cent price would have
a feeling of confidence. When I first
Dodge Brothers car owner, because
given the merchant a legitimate pro
read
the specifications of Dodge
he ¿lever could toll when the time
fit. based on what the shoes actually
Brothers car and found the North
would come that ho would
need
cost him at the time, but he told
east Starter Generator specified it
that friendship in his business,
them at the replacement price, be
meant nothing to me, or to you or to
That day has conic.
You do nt ed
cause to replace them the shoe would
he public. Dodge Brokers did not
the friendship of every man to
have cost him more money. H--
care anything about that. They
whom you have sold a car; we be-
therefore made a double profit on
knew what the Northeast Starter
lieve you have it; we believe you
the shoes. In other words, lie pro
Generator would do In the hands of
deserve it.
fiteered
to that extent.
Dodge
the car owners. ' On receiving
the
Brothers have not done that. The
report of their engineers, they de
Dodge Brother, will never do any-
price of their car today, is based up
cided to buy the Northeast Starter
thing or permit anything to be done
on pig iron at twenty-nine dollars
Generator. It cost more than any
to jeopardize the standing of their
per ton, coal at six dollars forty
other starter generator in the mar-
cars i n their family of dealers, or
eight cents, etc., and the same down
ket by a large margin, but it was
Those
with the American public,
through hundreds of items. Were
procured because it was the best.
words were given you by Mr. John
Dodge Brothers forced to go into the
You know the result.
F. Dodge, five years ago. You know
open market and buy at today’s
Take the body. There never had
how faithfully that promise has
prices, the materials which they em
been an ail-metal body commercially
four
been kept. In a family of
ploy in building their car, the higiier
marketed. All bodies had been made
thousand dealers to whom we must
materlal costs at today’s market
of wood and sheet metal screwed and
distribute our product of six hun-
prices would force them to increase
riveted together, squeaking,
short
dred twenty five cars a day. fifteen
their present selling prices.
Some
lived. Dodge Brothers conceived the
thousand a month, we are bound to
materials can not be bought one,
idea of building a body practically
make some mistakes; we niay, now
two, and three years in advance; we
without joints, in that all joints were
and then, ship an extra car, or an
can only get certain materia! from
electrically welded, w'ilhout rivets,
extra carload to some dealer, who,
quarter to quarter. It is the advance
without wood; a body that would
perhaps has not the funds to meet
in cost of these materials and the
WOUld
carry
a
permanent
finish,
that
the shipment and who may be em
Constant advance in cost of labor
would
not
squeak,
would
not
rattle:
barrassed to meet that shipment.
which caused us to advance the
last, and at 'lie tame time, would be
We may find, and we have found
price of our car in six years from
conspicuously
handsome.
The
dies
some few, only, of our dealers
in
,be ven hundred eighty-five< dollars
from which these bodies were built
the same predicament that the dudo
to twelve hundred enghty-five dol
cost a quarter million dollars! — a
was in, that Mr. Cameron
tells
lars, 61 per cent grand total. What
heavy investment, especially when
about: A dude and a tramp met on
every one said it is not possible tef other commodities can you name that
the highway; the tramp was after
show only that advance since the
build that^design of body. This body
the dude’s money, so he proceeded
year 1914?
cost
more
mo_ey,
but
it
is
a
better
to get it; the dude put up an aw
Now, I want to say something for
body. And so. throughout the scoies
ful fight, way beyond anything the
the
Information of the bankers who
and
scores
of
items
entering
into
the
tramp contemplated.
They rolled
are present and for the information
construction of the car, Dodge Broth
around over the ground;
finally,
ers strove to build into that car bet of the newspaper men also, and I
the tramp won out and got the man’s
hope all of you dealers will tell your
ter quality. They did not know
money.
He was looking at it in
bankers
when
you return. Your
what they would sell the car for;
the palm of his hand, and counte-l
bankers are your best friends. We
they didn’t fix any price on it, but
only thirty cents. “Why,” he said,
ask you to cultivate your bankers,
when they built enough of the cars
“I never knew a man to put up such
to know them better, and let them
to determine the actual cost to build
a fight like that for thirty cents.”
know you better. To those of you
that kind of a car, they added to that
"Well,” said the dude, “it wasn’t
who haven’t a proper bookkeeping
cost a moderate profit, a smaller
the thirty cents that I was fighting
-vstent, we urge that you procure
margin of profit than motor c
for, but I was reluctant to reveal
: early as possible. Dodge Brothers
manufacturers had been accustomed
my financial condition.” (Laughter.)
Uniform Accounting System, which
to adding; and to that, they added a
will enable you to carry in your
We find that applies, not only t«
selling cost, a smaller selling cost
pocket every day a statement of your
our deniers, but it applies to some
than anyone in the industry produc
affairs, so that when your banker
of our (.i. ;ic ’ bankers. Some deal
ing in a large way had been ac
asks you how you stand, you can iell
ers have wired us to stop a ship
customed to add; To that, they added
him exactly and he will know you
ment which we were asked to for a dealer’s profit, a smaller per cent-
You place
are telling him facts,
ward, explaining that, after arrang
age of profit than other motor par
your banker in a very difficult posi-
ing with their banks they would be
makers had figured. That total coin-
tion to help you when you don’t
informed later that the banks did
pi i.sed the selling price. There Was
know exactly the affairs of your
not have the money. There ire
nothing added
for
service
that
business; when you don’t know ex
some bankers in the room, whom. I
might or might not be required, be
actly how you stand, and it is sur
am glad, are here. There are soma cause Dodge Bi others determined to
prising as we make the rounds of our
newspapermen in the room, whom
build a car so good that it would
dealers to find how many do not
I am very glad, are here; because
need the minimum of service, unless
know the actual condition of their
we -have no secrets with the public
neglected or abused, and such service
business. Those are the dealers who
in the same sense that we have
no
should be paid for. as and when
secrets with our dealer organization.
are the first to complain of their
needed, the same as you would buy
bankers not giving them hearty co
We want them all to know the story
oil, fuel and »tires as and when
just as it is, beuuse it is an inspir
operation, The bankei wants to go
needed.
Dodge Brothers were da
ing story. If ell industrial n u ir. ass
the limit with every man who de-
te, mined that the selling price of
was on the same Oasis as Dodge
serves credit, It is a hardship on •
that car would establish a new and
Brothers business, today,
there
any banker to turn down a patron.
acceptable standard
of motor car
would be no panic.
The reason
I believe that Dodge Brothers dealer
value.
people do not buy good» is beenuse
have been able to get from their
I will jump quickly the interven-
banker
generally. throughout the
they’ do not understand values, the
Ing to change for the better just in
proportion to your efforts to chan,.-
them in your respective districts, in
your line of business.
Dodge
Brothers built
for the
three months’ period ending July,
August and September, forty-thrci
thousand three hundred sixty-one
; the greatest production of iiu-
tor cai
of passenger cars—- with
one ex
tion, for thut period of
time in the history of the Industr’-.
There are in the hand: : of our deal-
ers today, or enroute (? to de le.■-. a
les r number of Bulge Brothers
ca
than "we have built i” our fac-
tory and ' shipped
’ ’
' s since the first day
of Octoger, which t means, that every
car that we shipped fix
for the three month ■’ period ei.di..;.
September 30, is today in the hands
of their users.
Now, I will attempt to tell you
briefly what our plan is
We a re
building today, as we sit in this
room, six hundred twenty-live < ca rs
daily production. We will build I *o-
morrow six hundred twenty-flve
cars. We will continue to build six
hundred twenty-five cars every day,
if you dealers can show us that you
can deliver them if you and your
fellow dealers throughout the coun
try can deliver them, Just as soon
as the time comes, if it does come
that our dealer organization cannot
absorb six hundred twenty-five cars
a day. Dodge Brothers will not build
Why have no Dodge Brothers deal
six hundred twenty-flve cars a day.
ers failed in business? Because,
We have stocked you, some ten per
Dodge Brothers policy will not let
per
cent, some fifteen to twenty
them fail in business. In the first
cent, what we have believed
you
place. Dodge Brothers do not select
could absorb. The average for the
their dealers at random. I was New whole country is about ten per cent.
Y rk District Representative in my
We will curtail or we will .
yend
first association with Dodge Broth
production before we will overload
ers. It was my duty then to select
our dealers or force our dealers
to
the first dealers who were chosen in
suffer losses. Some dealers have in
New York and Philadelphia districts.
dicated that they fear that Dodge
My instructions were to select the
Brothers would force them to take
best dealer in each city, and in
so
so many cars they would “get in
doing, to be governed by the rule of
wrong” with their banks.
Dodge
the three C’s- -Character, Capability • Brothers will never do that; do not
and Capital; Capital last; Character
be afraid. We can not be one htin-
first. We had applications from
dred per cent perfect in our judg
nearly all dealers then in business.
ment, anil we
>ve may have made nus-
1 would take those applications
in
takes in ov •r shipping some dealers,
to the Lan’:. The bank was tile first
but if we have, gentleirien, it is be
place I would go. I would explain
cause we have been encouraged by
the object of u:y call and would,ask
other dealers to do so; because we
the banker to kindly indicate the
have dealers in our organization
best dealers in that city in the order
who, fortunately, are taking as high
of their imporance. When I got that
as two hundred per cent of their al-
banker's opinion. I would go to an
lottments one hundred seventy-two
other b ..ik and request the same in
per cent for the entire San Francis-
formation. Invariably, the judgment
co District; one hundred fifty per
of the bankers agreed in one, two
cent for the New York District. We
three, four order. Was there then
are shipping to those dealers in the
any uncertainty in my mind as to
San Francisco District seventeen cars
what dealer I would choose in that
for every ten that their agreement
town? Not a particle. And that
allotments call for. They are mak
gentlemen, is the way you have bee.n
ing a lot of money. We under-esti
chosen; and that is one reason w hy
mated
tliqir requirements when
we know that your bankers are will
writing
tlielr agreements. Some
help
to
the
proper
limit
to
Ing to go
dealers are receiving more cars than
you.
they can absorb. Oftimes it is be
dls-
We do not want you to be
cause the dealer has not tried
or
nrayed by the present emergency be-
worked as hard as he could.
cause no matter how many days
We have a very strong
feeling
the sun may shine during the year
that you realize the seriousness of
there are certainly days in which
the present crisis and that you will
the sky will be tilled with the black-
do everything humanly possible to
of clouds. Sometimes,
est
kind
do, to help us over. We have come
these clouds last for days before they
to you as members of our business
Sometimes they pass
pass away,
family and to tell you frankly, we
quickly—but they are sure to come
need your help, and we expect and
sooner or later and unless you are
now that we are going to get it. We
not
prepared for them you
have
need your fullest confidence, and we
been as wise and forehanded as vou
will never abuse it. We never have,
should have been.
and I am sure that everyone of you
This nation is too rich—the Amer
feel that we never will.
ican people are too progressive- the
We consider it good business for
fundamental principles
underlying
a dealer to lay aside one motor car
your business and ours, and the bus
for every order he has for future de
livery, provided that order is a bona
iness of the nation are too sound for
tide, signed, cash deposit order. l>o
any national calamity at this time,
not fool yourselves with verbal or
Times have been too abnormal to
Prices have ders, or with orders without
cash
continue unchanged,
A
deposits. Fome of you have done it
been too abnormal to continue.
in the past, but do not make that
change for the better is about due.
mistake in the future; it is not good
The pendulum has swung too far in
the opposite direction, it cannot con business. We have dealers who now
have accumulated over three hun
tinue to swing in that direction
longer, because the world needs our dred orders against spring deliveries.
We believe that, as we go into the
crops and needs our manufactured
winter months, selling will grow
products. All statistics show that.
easier, and you will get more and
The Government reports show that.
I read something in the Dallas more oiders for spring or future de
liveries.
News this morning, that I would like
Some flew have asked why we
to repeat:
will not guarantee the price until
“A large potential demand
has
May first, or some other future date.
been created and there is every indi It has taken six years of time
to
cation that the vacuum will be fill educate
the public that Dodge
ed by eager buying when
retail
Brothers have no models or series of
prices approximate those hitherto re cars. Those of you who were in the
garded as normal. All Americans
automobile business six years ago
are not thriftless and extravagant
well remember the hardship it was
fools. There are many who have
for you several months prior to »ho
worn old clothes and refrained from
automobile show time to do business.
buying new bouse linen and oth -r
Everyone was waiting to see the new
necessities for the last three or four
models: to learn the new prices,
years. They are able to buy and
Dodge Brothers took the position
will buy largely just us soon as
that they would not burden their
reasonable prices reward their pa- dealers with that hardship; that we
tience and self-restraint, and while
would place a price on our cars
the luxury trades may suffer by da that would be right; we would make
flat ion, there is every reason to ex changes in the car from month to
pect that those who deal in staple
month during the year, at any time
and necessary commodities at reason
we found it possible or necessary to
able profit will soon be as busy
as
do so, in order that you could do a
ever.”
twelve months’, year round business
in Dodge Brothers cars. That prin
We do not want to say anything
that may cause any of you gentle ciple has been adhered to steadfa 1 -
ly, and you know to what great
men to Infer that we believe
.hat
benefit to you.
the times are going to change for
It is far better to state the fact
the better over night. They are go-
United States, the limit which their
bunks legitniately, fairly and rea.O'l-
ably extend. Now, on the othe
hand, I want you to remind your
banket- that there is a difference be
tween Dodge Brothers motor car val
ues mid tlie value- of other com
me it Its.
”’h:-;n ho questions th
value ot Dodge Brothers car as si
for a loan to warehouse tlr
k him if he can name any COll
r, any stock or bond, even bank
or government bonds that
little
fluctuated in value
Dodge Brothers cars, In six
there has not been a fluct ua-
I one one-hundredth ot o'ie per
i the value of a Dodge B ythers
’ security to a loan, A bank
or bn ker loaning money on a Dodge
Brothers car knows that he is loan-
mg money on something that is
worth very much more than the
Dodge Brothers
(.mount he loans,
car p: ices have not fluctuated; the
only change has been a char ge up
ward, not downward. To our know
ledge no banker has ever lost a dollar
-or. a Dodge Brothers dealer in the
history of Dodge Brothers institu
tion. No Dodge Brother dealer has
ever failed in business, to our know
ledge. Is that not a record (hat
should inspire your bankers’ con-
fidence? That is the kind of ' mor-
tality record on which banks, bar k-
ers and insurance companie would
like to base their rates.
THE SUNSET GARAGE
that the reason why Dodge Brothel
cur price cannot be reduced, Is
cause there never w is any ex
profit added to the price of
ear, t and therefore, there, is none io
take off.
I you!: J like to remind you of a
few parai graphs in an advertisement
that appe. .... d iu your papers Sunday,
“Dodge Brothers’ great works ar.®
operating at full capacity every day.
It is gl 'd to be able to say that
Dodge Bi in , s' in illicit faith in the
tnat g ■ vs out of good
value
being vindicated by eve.y-
thing hat is going on in th.-It
plant.- today.
v • il that Dodge Bro-
ii<: -< ives, from the
vary U.S-, io n._ p.. duction of a car
which would rfe- -uperior to all ex-
ternal conditions und be, in effect,
and in fact, a la.. uuio itself.
They were supremely satisfied, to
begin witii, that good motor cars
supplied a great and permanent hu
man need.
They were sure that no
matter
what happened, there would always
be an inexhaustible market for the
particular kind of a car they hoped
and planned to build.
They were convinced that they
could produce a car so sound
in
value, so saving, and so satisfactory
to the individual owner, that no out
side influence could shake its hold
upon the public.
The simple facts, as they exist at.
this moment, are so inspiring that
you are prompted io shaie them with
everyone who shares with Dodge
Brothers their faith in sound bus
iness principles.
Dodge Brothers are more strongly
and soundly entrenched in the good
will of the public at this moment
than ever in their history.
Every good result which John
and HoikCe Dodge counted
upon
when they committed themselves to
the principles of building good will
by building good value, has come to
puss.
will
Their certainty that people
always discover a meritorious pro
duct, set it apart, prefer it, and re-
ward it, is continuing to come true
with each and every succeeding bus-
iness day.
Dodge Bi others Motor Car is til
demand because Dodge Brothers Mo
tor car meets a definite economic
need and satisfies a human craving
for honest and substantial value.*
its market will continue to grow,
and the production continue to in
crease to meet that mark t, as long
as merit continues to be the deter
mining factor in motor car and in
all other manufactured products.”
I have received a telegram tro’n
our Director of Distribution, Mr. J.
E. French, this morning, in which
he says, “We are all going one hull-
died per cent. Ti ll the Texas deal
ers assembled that they are all di
rectors of distribution. Twenty-two
thousand employees on the job this
morning for them, and we need their
help. Mr. Jennings wants to know
if dealers realize that they are ac
tually Dodge Brothers salesmen and
if the realize the value of service
and owners good will in promoting
growth of business.
The fundamental principle
of
business on which Dodge Brothers
built their dealer organization was
that the dealer must make money.
Every policy we have is built around
the dealer’s success, because if he
does not succeed, we can not suc-
cecd, so we wutch his success and
build to the end thut he ahull sue-
ceed.
Gentlemen, you don’t care if you
don’t make any money this year.
We don’t care if we don’t make any
money this year. It is not for this
year we are building; we are build
ing for the future. You have made
money In the past five and six years.
What if you do have bad year, so
long as in the end you average up
a good profit? That is what we
aim to do, and that is what we are
going to do.
In closing, I want to just set your
minds at rest on one other thing:
In our dealers’ meetings we
have
been having in Detroit, we have
been asked if there was any truth
to the rumor that Dodge Brothers
are going to be sold to Wall Street
interests, or ineiged with the Gen
eral Motors. I was very happy to
be able to tell them that, at our dis-
trict representatives' convention last
the
May, Mr. H. E. Dodge made
statement which he (reiterated to
me only a few days ago, that Dodge
Brthers business is not for sale, in
whole or in part, to anybody at any
price, no matter what the offer may
be or who makes it.
I tell you that, in closing, gentle
men, so that you may know definite
ly, that the policies with which you
are so familiar and under which you
have worked so happily and success-
fully these past six years, will con
tinue to be the policies of Dod re
Brothers, and they really heve only
one policy, and that is the policy of
the equate deal to everyone.
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