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The financial report for the year is as follows:

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J. W. Hacker, holder of fellowship

.$

500.00

L. C. Nodell, one-half junior fellowship ....
D. L. Chamberlain, one-half junior fellowship
Operation and maintenance

I 50.00

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For the coming year Mr. Robert B. Rowley has been appointed holder of the fellowship. The plant will need considerable repairing this summer. The condensers are rusted out and will have to be replaced; we estimate this will cost about $75.00. We should also like to take out the tar washer and scrubber, which have proved themselves far too large for our plant. It will add considerably to the accuracy of the work if we can replace this apparatus with new pieces of such small volume that we can readily draw off all the contained liquor at the end of each test. Heretofore we have been compelled to estimate our ammonias by aspirating a measured portion of gas through standard acid before it entered the tar washer. We are satisfied that this method is not accurate. These changes may cost $100.00.

There comes then the question as to the installation of equipment for the study of electrical tar separation. We have up to this time used exclusively university apparatus for this work. It is quite possible we may be able to arrange terms of co-operation with the Research Corporation.

For the coming year we will continue the study of weathering coals. We should also like to continue the work on electrical tar separation and try to determine the effects of removing

tar at a high temperature.

W. S. BLAUVELT, Chairman.

SAMUEL BALL,

J. W. BATTEN,

HENRY W. DOUGLAS.

Mr. President: Gentlemen, you have heard the report of the Scholarship Committee. Is there any discussion on it?

Mr Blauvelt: Mr. President, there is just one thing I should like to say in amplification of that report. Professor White found that he was somewhat handicapped in getting men for the fellowship because of the fact that there is only one year with $500, and the one year's work does not result in a postgraduate degree. He was also somewhat handicapped owing to the fact that so large a portion of the man's time was spent in getting acquainted with the work. For the first three months any gas house terrier could do better work than the university graduate who has never been in a gas works. He therefore suggested last year, that we have two fellowships, but the expense seemed prohibitive, so for the coming year there is to be but one fellowship, but it may be necessary for us to have some additional paid labor for carrying on the tests, so I hope that all of the members who have through companies been contributing to the fellowship will not feel inclined to reduce their contributions. The value of the work that can be done depends very largely upon the liberality with which the gas manufacturing companies in the state contribute to this work. Much good work has been done, which led to practical results, and we hope that this will be continued in the future.

Secretary Chamberlain: I would like to ask Mr. Blauvelt in connection with the fellowship work if he thinks the two fellows are quite essential to the proper carrying on of the fellowship work. If so and it is only a matter of money we can raise it, although it is difficult to raise from the Gas Companies of the State more than $900 each year. The general treasury of the Association is in pretty good financial shape and we can take care of $100 more a year from that source. The question however arises as to whether the second man coming on to the work would pledge himself to stay with us two years. I should think that would be necessary in order to accomplish anything with two fellows and in line with the thought that prompted the appointment of two men instead of one.

Mr. Blauvelt: I can only say as Professor White says for this coming year he has only appointed one man, and it very much of a question whether we could at the present time get a man for a second year. In a period of hard times it would be very easy to get a man, but in times when jobs are looking for men rather than men looking for jobs, it is not so easy to get a man after he has taken his baccalaureate degree, to accept for a year a fellowship with an income of but $300.

Mr. Hewitt: Mr. President, I would just like to ask one question. I am not familiar with your proceedings in this matter. Do I understand from this report that after trying the question of storing coal that you find no depreciation from it in storing?

Mr. Blauvelt: That is the result up to date, that one year's storing did not cause enough depreciation to detect it in the tests that have been made.

Mr. Hewitt: I should say if your experience of the past year hadn't given you any other information that it is well worth while for your companies, because they have always been afraid to store too much coal for fear they would have to turn it over because of depreciation.

Mr. Eaton: I move that the report of the Scholarship Committee be accepted. Motion seconded and carried.

The President: Gentlemen, we are somewhat handicapped at this meeting owing to the short time in which we can have our metings, just three or four hours in the two evenings, and we want to cut our preliminary proceedings as short as possible in order to get through with the very excellent papers that we have. The President has not prepared an address to be delivered at this meeting partly for that reason. The matters that are most important at the present time in Michigan are taxation and the new employers' liability law, with which you are all familiar; and while they are very important matters they seem to me to be rather beyond my scope, as the employers' liability law is the law and the tax assessor seems to be taking care of the tax matter. So we will proceed with the reading of the papers.

The first paper is by Mr. Richard C. Fowler on the "A. B. C. of Gas Company Advertising."

Mr Fowler: Every one has distinct opinions about advertising, and whether you, yourself are advertising or not, if this paper provokes questions or runs counter to your opinions, I invite you to take part in the discussion, and, so far as our experience in Detroit goes, I shall be pleased to attempt to answer any question you may ask.

Mr. Fowler then read his paper as follows:

THE A-B-C OF GAS COMPANY ADVERTISING.

Richard C. Fowler.

Why does a gas company advertise? It is true that advertising is a powerful factor in business, perhaps the most potent of all business forces, but it only becomes useful when it is part of a well defined plan.

Advertising is not a panacea for all selling problems, nor a solution of all the ills of the gas business, and any company that spends money for advertising without having a very definite idea of what advertising can do, or at least what they expect it to accomplish, had much better save their money.

By advertising, a gas company can accomplish certain things better, quicker, and cheaper than in any other way, but it does not follow that all one has to do is to spend a certain amount of money to get a certain result. It is by no means true that "all advertising is good advertising." Only that advertising is good which accomplishes a definite purpose, and which can be judged by its results to be a profitable investment rather than a more or less necessary expense.

Any advertising that does not more than pay for itself out of the profits in the new business which it creates, is in no sense good advertising.

To advertise just because some smooth solicitor gets you to take a quarter or a half page in his paper is almost as silly as to buy space just because the other fellow does, or because you have the habit.

No gas company that is established needs to advertise merely to keep its name before the people, or to take space just to be a good fellow. Just to see your name in every paper, programme

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