The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-09
KNOCKOUT OF The TRUSTS
WHOLESALERS SAY THEY ARE
SUFFERERS by THE CALVIN
LAW.

Tho Manufacturer and Consumer Not
Affected by 1.-THE Manufactures
VIII Sell just aF Mnny Goods at
the Same Prices and the Consumer
VIII Pay the sumo as BefOre--TLe
Wholesaler VIII Suffer by COmpe-
titiOn and the Retailer VIII Get
the BENEFIT of II.
The Calvin antitrust bill has apparently
knocked out the trusts in the very begin
ming of the fight. Nearly all of the lead
ing trusts and combinations have notified
their customers in Georgia, and many of
them in Florida and Alabama as We'll that
all rebate contracts are off.
The American Sugar Refining Company
has not been heard FROM but the whole
salers here say they consider the contracts
Of no effect, as they could not be enforced
under the law. They consider themselves
at liberty to sell sugar at cost or below
though none of them are very anxious to
sell below present prices, the trust allow
ing only 3-16 of a cent per pound profit.
The trusts are knocked out so far as
ability to control the merchants in this
state is concerned, and yet the merchants
are not happy. They are now at liberty to
to go into the territory of their neghbors
in South Carolina and Florida, who are
still under the system of limited contracts,
but they do not want TO do this They are
entirely too generous and considerate of
their neighbors' interests.
AS a matter of fact, the merchants hold
that the enforcement of the antitrust law
viii be an injury to them. BY their con-
tracts with the trusts they were assured
OF a certain profit on each article sold,
and though the profit was small, it was
sure thing. With the trusts agreement off
they say that competing merchants are
certain to slash prices, and as most of the
trust articles are those in which there is
sharp competition, instead Of making small
profits they will now make no profits at
all. The removal of the contracts will not
enable them to enVade the territory OF
other states to any extent for the reason
that the same exemption from contracts
is being extended to merchants in those
states, who would be affected by the COM
petition.
1.-The wholesaler is the only one who
will be injured" said prominent grocery
man yesterday. THE law will not AFFECT
either the manufacturer or the consumer.
The manufacturer will sell just as much
of his goods and at the same prices and
the consumer will pay just as much. The
retailer or middle man will get the ben
eft. For instance, If / sell a gross of
snuff to a country merchant, making I'M
der present prices a profit of, say 90 cents.
and competition with another merchant
forces me to sell the box for % cents less,
does this make any difference to the con-
sumner? The retailer will sell the snuH
at 5 cents a box Just as heretofore. The re-
tail merchant who is selling graduated
sugar at twenty pounds for dollar, Will
continue to sell at that price, whether he
has to pay an eighth of a cent pound
more for his suger or an eighth less. The
consumer will not be. affected unless the
price rises sufficiently to cause the mer-
chant to decrease the number of pounds
sold for a dollar. 1t simply means cut
throat competition in staple articles among
the wholesale merchants with the retailer
getting the benefit. There has been lit
tie enough profit in the business during the
last five years. as every wholesale mer-
chant knows, and the prospect is not
bright one"
The Lorillard company has sent out cir
culars, canceling all contracts with mer-
chants in Georgia, Florida and Alabama,
but continuing the rebate business at the
same time In such a way as to make the
merchant simply the agent and to leave
the entire control of the business in the
hands Of the company. After announc-
ing the cancelling of rebates the circular
says:
Herewith find price list of our Mac
coboy, Sweet Scotch, Fresh scotch and
Honey Bee brands of snuff. From the
prices quoted thereon we will allow you
a discount of 10 per cent on purchases of
not less than 225 pounds, one or assorted
styles, billed and shipped at one time,
freight prepaid by us.
Until further notice we will also allow
you a rebate of per cent, on the net
amount of your sales of 100 pound lots and
10 per cent. on the net amount of your
sales of 225 pond lots of one or assorted
styles if billed and shipped at one time
Shipments Of such 100 and 225 pound lots
may be made direct from our factory to
the buyer for your account or from your
stock, freight at our expense.
when shipments as above are made
from your stock, in order to receive credit
for the rebate and freight charges there
on. It will be necessary for you to furnish
us with a duplicate invoice and freight bill,
or bill of lading, covering each of such
shipments, or where such sales are made
to parties in the same town or place, with
a proper receipt from the party receiving
the goods.
1--WE will allow no discount or rebate on
goods taken back into stock by you.
Mote that rebates covering sales of 100
pounds and upwards, as also freight allow
ances, will be settled by us quarterly"
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