Brookings register. (Brookings, S.D.) 1890-1894, 1891-09-18
TOUCH THE BUTTON.
More Middle Men-A Combine to Help e?)
the Farmers.

More Middle Men-A Combine to Help e?)
the Farmers.
Alexandra Herald, Aug. q.
John r. Lowe, of Huron, q paid
third party lecturer, collector OF the
Alliance Hail association, formerly
agent for the rotten Fidelity insurance
company, has branched out In q new
line.
He is agent for q so-calied alliance
supply company which has it's head.
quarters in New York. This COM
pany has q well laid scheme for
absorbing the business OF the mer.
chants and its agents will visit every
town and hamlet In South Dakota.
The plan is simple enough and
would, for a time, be successful
wherever the business obtained q
foothold.
Mr.. Lowe tried to work one of our
business firms and from them we OBJ
tanned the details, which are substan-
italy as follows:
An agent of the company ap.
proaches O. merchant in each town
and endeavors to purchase his entire
stock of goods. The goods are to be
invoiced at cost price and the mer-
chant is to receive as payment for
them q bond of this company, and
thus becomes a stockholder, for that
amount, In the company.
These bonds are to bear interest at
the rate of eight per cent. per annum.
AS soon as the purchase is made
the company ships in q complete
stock in every line of merchandise,
such as drugs, groceries, clothing,
fancy articles, and also machinery,
coal and probably lumber.
The company is to buy these goods
direct of the manufacturer in each
line and to control the entire output
OF the factories.
The former proprietor OF the store
is to be hired as overseer and receive
for his services salary and per cent
age OF the profits. The clerks under
him receive q salary.
Mr.. Lowe wisely declined to state
the per cent. OF profits and salary to
be paid the overseer for the privilege
of selling his own goods.
In q town the size OF Alexandria,
the company would put in q $4,000
stock of goods. 1t would take mil
lion. OF dollars to supply the state of
South Dakota alone.
Suppose the overseer tires OF this
arrangement and wants to realize on
his bonds. Simple enough. The
company MAY pay him cash; but 1t
AGREES to return to him the exact
amount OF goods formerly bought.
There you are. His individual
trade, which took go many years to
build up. is lost. He can take his
goods, rent building and rustic for
business which was formerly his, or
sell his goods out at auction or ship
them to a new place. 1t won't make
any difference to the company.
Now who is to be benefited by this
schemei The farmers, you sayf Well
let's see.
The manufacturer will have the
same profit as now, perhaps more.
The company, which acts as mid
dlemen, will be under vast expense.
One OF the expenses will be for such
organizers as J. r. Lowe. This COM
pany will demand at least per cent.
profit for the use OF the capital. This
comes out OF the patrons OF the store.
The overseer receives per cent. of
the profits, reasonably 8 per cent,
the same as he is given for his own
goods. This comes out Of the patr ons
of the store.
The overseer receives 8 per cent.
interest on his bonds. This comes
out Of the patrons OF the store.
There you have the store in this
town paying the middle men from
to 5 per cent. profit-more than the
Wholesale jobbers ask. You see the
overseer getting 16 per cent. profit
above all expenses.
The salary would pay the overseer's
personal expenses. The goods must
pay store expenses. Very few mer-
chants are making clear 16 per cent.
profit above all personal and store
expenses.
Who pays these profits and expen.
ses? The patrons OF the store.
Do you think you would buy goods
any cheaper than now?
II it was possible to run out all
competition. what would be the
result?
Would you know whether goods
were cheaper or dearer, except as the
trust was q mind to tell you.
You who are 80 dead set against
trusts, what do you think Of this one.
It employs . prominent independent
lecturer as it's agent.