Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-12-26
AMERCANTILE SENSATION,
Retail GrOcers Taking a Hand in the
Combine Business.

Retail Grocers Taking a Hand in the
Combine Business.
Columbus. o., JournaLi
There has for some time been a breach
between the whole sale and retail grocers In
this city, which has, by what the retailers
call arbitrary action upon the part of the
wholesalers, become so widened that a
reconciliation now seems impossible As
claimed by the retail men the wholesale
grocers have been selling goods to restau-
ranters, hotel and boarding house keepers
in job lots at little over Wholesale prices,
thereby shutting the retail merchants out
of this class of trade to which they claim
they are entitled. The retailers allege also
that the wholesalers are combining to con-
troll prices In their own favor, and that they
are declining to sell, or boycotting, popu-
lar brands of goods which, owing to their
having become standard articles, are ordi-
narily sold at small profits, in order to
force the retailers to make a market for
other brands, upon which the wholesalers
and jobbers can make larger profits or are
themselves interested as manufacturers,
This action, tine retailers claim, compels
them to go to the manufacturers direct for
many articles, and they have found that bv
combining and buying in large quantities
they can save the middlemen's profits and
besides procure at all times the brands of
goods which they want and which are the
most salable.
Several meetings of the retail grocers
have been held for the purpose of devising
some means of protection against this al
legged unfair action of the wholesalers The
result is that the retailers have decided to
organize joint stock company, each grocer
who goes into the organization to con trib-
ute 81, 600 to the capital stock, the capital
to be double the number OF subscribing
members They propose to buy their own
goods of all kinds direct from the jobbers
and manufacturers from whom the whole
salers get them. They argue that the per
cent charged them by the local wholesale
men will more than sustain the gigantic
enterprise into which they propose to en-
bark. Sixty of the leading grocers have
subscribed 81, 900 each to the capital stock,
which gives $50, 900 to start on. The capital
stock of the organization will be $3.50, 600,
and the remainder, it is expected, will be
taken by other grocers who will want the
protection which the combination will af-
ford. Subscribers will not be limited to
this city, but will embrace retailers in
every section which can economically draw
its supplies from Columbus
1t is stated that combinations of this kind
have been effected in other States and have
been Immensely successful. 1t IS not un-
usual for wholesale house, with no larger
trade than is required to supply combina-
tion of 40 retail grocers, to make profit
OF S50,0 900 to S75, 900 year. To this the re-
tailers made no objection so long as the
wholesalers supplied them with such goods
as their trade demanded, and did not at
tempt to interfere with their legitimate Gus
toners. If, however, they argue, they are
compelled to send to the manufacturers for
some brands of goods which the wholesalers
are trying to boycott, and also compete with
them for trade with the consumer, they
might as we'll enter into competition all
along the line. Those most enthusiastic In
the movement favor it as a money-making
scheme, as well as one OF protection against
all sorts of pools and combinations.
Property has been procured at the SOUTH
west corner Of Third and Main streets for
the erection of large jobbing house for
the reception and distribution of goods.
The reporter was informed that the organi-
cation would be complete in few days and
that the company would be in full opera
tion shortly thereafter, with temporary
quarters somewhere until they could erect
their own building.