St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-10-07
ANOTHER new TRUST
An Ubiquitous Scheme APP
parently Only to Rob the
Public.
Gas and Electric Light Fixt-
upe Manufacturers Join
Hands
To Control Trade and Hoist
Prices by Dietation to
Dealers.
A Barefaeed SWindle That a
Few Honest Dealers Will
Resist.

y
has such combine been made. but that
it is an Ubiquitous concern, without an
excuse for its existence other than de-
liberate and bare-faced determination
to advance and maintain prices at the
expense of a world of consumers.
Though formed less than four months
ago, this great trust has reached
out its BriaIOuS arms until 1t
has includ ed all of the retail dealers in
the large cities, even extending 10 st.
Paul and Minneapolis to such degree
that dealer can distinguish himself as
alone and singular by announcing he is
not a member of the trust. Though
competition was not grinding and prices
were not low, this trust was formed. and
every manufacturer, with one single
exception, became a member, bound by
a money deposit and held by an iron
clad oath in the shape of a formal
agreement. At first the local dealers
were driven into the snare by the an
nOuncement of a larger rebate Oh list
prices. Then the subtle trust wound
its tentacles about them by Sc
curing local organizations, and
the dealer who refused TO join
was practically boycotted and could buy
no fixtures from the trust. When all
=
safely secured, the trust showed the
cloven hoof. The rebate was reduced
and the cost of goods increased to the
dealer. The natural result ensued: the
dealer could not shoulder the loss, and
up went the price to the consumer. upon
whom must always fall the burden of
every trust. The great machinery of
the combine was expensive, and the
manufacturers made the dealers pay it,
the dealers in turn Saddling it upon the
consumers. As a consequence the prices
of all gas and electric light fixtures
have advanced 35 to 45 per cent since
the formation of the trust. which calls
itself an association.
The combination was formed at
meeting held at Philadelphia, June q
and Is. After an examination of the
plans of the other great combines, the
association agreed upon system which
would effectually rob the people by
prices" 1t provided complicated sys
TEN by which every manufacturer was
to enter on a basis of the trade of 1888,
made by sworn statement. Each month
a sworn statement is to be made. and
if the sales exceed the basis agreed
upon. the manufacturer is to pay 20 per
cent of the excess into the treasury of
the combine: if there Is deficit of
sales, the association pays 20 per cent OF
the amount to the manufacturer. The
, receipts of the combine, together with a
system of fines, accumuiates a fund
which, when $4,000 is reached, is to be
redistributed in dividends. The strict
est rules are laid down to maintain
prices, and every member of the conf
bine is compelled to deposit a guarantee
fo.E - sA,I EInfn,a
bine in case of a breach of agreement.
Several high-salaried officers are ap-
pointed, and the books of all members
are at all times open to their inspection.
When the trust was duly formed, and
the agreements signed and fOrfeits de-
posted, circulars were sent out to the
trade in all directions, and the first and
main Object-the election Of officers
was accomplished.
The formation of the trust of course
leaked out, though It has not gained
general circulation. One Philadelphia
firm declined to join the trust, and in
the fight which ensued the inner work
ingS of the combine were made public.
IL was shown that the combine had
| sent out confidential circular to the
trade containing the following:
"Our goods are a luxury as we'll as
| lost sight of by both makers and deal
ers-in that both have given away the
| goods without profit. The reason for
this has been that our trade has had no
| fixed laws or rules. 1t was with the OBJ
| iect of fixing prices so that the public
could not take advantage of the dealers
or manufacturers that we came together
| to devise ways and means how best to
do this, protecting your interests and
our own. We have spent a great deal
of time, and we believe that when you
fully examine the circular you will be
convinced that it will be a solution of
the whole matter, and very much to
your advantage.
I'VE will make to you. with very
few other large dealers who may pur-
! chase from us $4,000 in the six months,
a special confidential rebate of 20 per
cent, instead of any rebates named on
circular issued to the trade"
The publication of this circular
| caused considerable CONSERVATION in
! the ranks of the trust manufacturers.
\ 1t was shown to dealers that in case of
| decreased sales. as was possible, an as
| SeSSment, instead of a dividend. would
| be ordered; and following upon the
| heels of this warning came second
circular. reducing the rebate, and, con-
| seQuently, increasing the price
of goods, to offset which an
/ increased price to the con-
| sumer was necessary. The retailers
found themselves at the mercy of the
trust, supplemented by their local asSO-
/ Citations, and a strong effort is now being
| made in certain quarters TO break the
power of the combine. Some of the
| trade journals are using their power to
] fla aD6 anJ fba frusf iS haino d.
| nounced in round and unglOyed terms.
Practical Electricity, in an editorial arti-
Gle, SAYS;
cit is impossible todIscOyer why such
! a combination as this should endure for
| any great length of time. If it were a
trust 10 control the manufacture of
| fixtures by freezing out the poverty
| famished and small manufacturers, it
| might succeed. But it is only
| a combination to dictate to re-
| tail dealers, and it says TO them:
You must purchase your goods only
| from manufacturers who are in the trust
and at our prices. If you patrOniZe out
side manufacturers we shall boycott
| you.' Such is the doctrine of tins greed
| grasping monopoly. The poor dealers
are frightened by these fearful admoni-
| tions. and many feel they must either
| submit to this wholesale robbery
or go out of business. Mean
while the public, ignorant of this
secret plot, is called upon to pay the
| Increased tax upon necessities as well
| as 'luXuries.' Thank heaven there are
not few retail dealers in this country
who have strennously refused to fall IN
line with this scheme. AdYer-
tiSe that fact, for in no other way can
the public be made to comprehend the
iniquity of this shameful swindle."
| BROWNS CLEVER WORK.
The Mind Reader Gives a Marvel
Gus Exhibition of His Powers.