Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-28
Both Sides Claim Eagerness for a
Battle Over the Prices of
Proprietary Medicines.
A DRIVE AT DEPARTMENT STORES.
Wholesale Druggists Faycr the Plan by
Which Cutters Cannot Pur-
chase the Goods.
RETAILERS TO INDORSE TIE SCHEME.
Flsrtnan Co. Gay They Will not Be ssrisusly
Affected BY Its Adoption.

National Wholesale Druggists Association
for the purpose OF forcing up the prices of
proprietary articles, caused great excite
ment in local drug circles. 1t is admitted
that there is great struggle just ahead
between retail druggists and department
stores, as the latter will persist il cutting
prices on patent" medicines, the proprie-
tors of which medicines have been appealed
to for protection by those who desire to
maintain the fixed price.
1t is stated that no trust or combination
is intended, further than to enter into an
agreement not to sell goods below certain
figure. Retail dealers have for several years
been complaining against the cutting OF
prices, claiming that the bottom had been
knocked out OF their profits, and that unless
some relief could be offered they would be
T compelled to suspend business. The COM
plants became so general, coming from all
parts of the country, that the proprietors
felt compelled to consider the matter. The
Campion plan was adopted, and, after a
wears trial, failed. The latest scheme is
that described in yesterdays DISPATCH.
A reporter yesterday procured from
local wholesale druggist more complete de-
tails of the plan, which will, without doubt,
be adopted by the proprietors and manu-
facturers 1t was agreed at a recent meeting
held in New York that if 20 proprietors
would agree to adopt the coupon plan it
would be submitted to the retailers and if
so per cent of the latter would sign an
agreement not to sell goods at less than the
standard price the scheme would go through.
Expect to Make the Scheme Go.
Up to date II of the desired number of
proprietors have sigpifed their willingness
to try the scheme, and, as these have been
secured within the last two weeks, 1t is fully
expected that by April the plan can be
submitted to the retail dealers for their ap-
proyal.
A committee consisting of three memberse
each from the association of manufacturers
and dealers in proprietary articles. the Ma
tional Wholesale Druggists Association,
and three representatives of the retail drug
gists of the United States, met few days
ago in New York. George A Kelly, of this
CITY, was present All the plans for stop
ping the cutting of prices that have been
suggested from time to time were brought
up and discussed, with view of picking
out the weak points of each. There was no
difference of opinion on the advisability of
giving the retailers protection, and the re-
suit of the meeting was the Endorsement of
the coupon plan" Mr.. Kelly, when seen
yesterday in regard to the matter, said:
''The department stores are largely re-
sponsible for this great cutting of prices
that mas been going on for so long. In the
first place, patent medicines do not belong
to their business, and they are only handled
as bait. They have compelled the drug
stores to follow, until the retail trade is
handling medicines without profit, and is
asking the proprietors and wholesalers to
provide some general relief bv which they
can get legitimate profit on the goods.
Not Entirely to Blame for the Cut
''Of course, the department stores are not
the only ones to blame. In New York,
Philadelphia, and even in Pittsburg,
there are a few retail drug dealers
who are still cutting to draw trade
The Retail Druggists Association is a very
large body. There are between 80, 900 and
10000 druggists in the country, and because
there were too many difficulties to contend
with, the 'Campion plan had to be aban-
doned. As consequences the cutting goes
on, and is gradually growing worse. The
majority of the retail dealers were in favor of
the Campion plan, but there were too many
who were opposed to having their liberty to
sell at any price restricted. All these
things, coupled with the large membership
and the extensive territory to be covered,
made it an exceedingly difficult matter to
handle.
UTn a nurhar of ,d;striots thera is mn ont
ting of prices, they being maintained by a
mutual agreement But in all the large
cities the profit on all these goods has
dwindIed to nothing, This is no trust or
combination. 1t is simply an arrangement
to protect the retail druggists and insure
them legitimate profit on class of goods
that is the life of the trade of great num-
Der who are engaged in the drug business"
A call was also made upon E. Holden, of
Z. Holden & Co., Federal street Allegheny.
at one time one of the dealers who cut
prices. Mr.. Holden is not of the opinion
that the new scheme, as proposed, will be
adopted. He said: "ThIs thing started some
years ago, when the Western retail dealers
made a complaint that they were losing
per cent on all the goods they sold. The
competition between the dealers in st.
Louis, Cincinnati and Chicago, where the
cutting began, was responsible for all the
into by Ayers, Jayne and Pierce, who
agreed to give 10 per cent discount on
large amounts 10 peoDle who would agree
not to sell at less than IS dozen.
One Man Who Can Hold His Own.
"The only manner in which the coupon
plan can be made q success is by every pro-
prietor and wholesale dealer entering into
the agreement, and they will never
be able to effect that combination. There is
one man-John D. Park in Cincinnati-who
has always refused to have anything to do
with the concern. He sells 500, 600 worth
of goods every year, and although proprie.
tors even now re use to sell him any OF their
goods be has always been able to supply
anything that dealers have ordered from
him. There is no secret about that The
wholesalers knew this, but they could do
nothing. When cut prices 1 did it openly,
and could always get all the goods in the
market and any amount wanted.
"Under the present arrangement cutters |
can buy in quantities at Sc 75 dozen, or Sc |
cents bottle. Retail druggists pay 81 60 a |
dozen, or 60 cents. So, you see, department |
stores can afford to sell at price less than |
the goods cost the retail druggists and still |
have a respectable margin. Hoods plan is |
to charge all SO dozen, and if they sell all |
goods at not less than SO cents bottle they |
get rebate of S. While believe this is |
the best plan yet proposed, even it can be |
evaded. John d. Park can and would buy
goods in large quantities, get the benefit Of a
10 per cent discount for cash, and sell to the |
cutters at a 8 per cent discount Thus,
while those in the combination would be