Omaha daily bee., 1899-11-03
WAR AMONG THE DRUGGISTS
Movement on Foot to Force the Cut Rate
Stores Into Line on Prices,
DEALERS AND MANUFACTURERS COMBINE
Proposed Agreement Will Prevent
Mnnufacturers from selling Di-
rect to the Dealers md the
Wholesalers to Consumers.

There is a movement on foot among
Omaha standard drug dealers to force out
OF business or into line with them all the
so-called cut rate stores, which have been
serious factor in reducing profits ever
since they have been in the business. The
retail dealers opposed to rate cutting have
taken the matter up with the wholesalers
and manufacturers and tripartite agree
ment has been proposed among all these
which they hope will restore prices to the
uniform schedule now prevailing among
stores that do not cut prices.
Despite the efforts of the conservatives
the cut rate dealers have heretofore been
able to get their goods without much trouble
and to buy them lower than the regular
trade has been able to do. Various means
OF doing this have been resorted to, chief
among which is direct buying from the
manufacturers, by which the wholesalers
profit is cut off Especially is this the case
regarding patent medicines the manufac
turers Of which have always been quite
ready to sell direct to retailers, although In
doing so they initiated directly against the
interests of their other patrons, the whole
| salers.
According to the proposed agreement the
manufacturers are to refuse to sell to re-
tailers and the wholesalers are to sell only
to the regular retail trade leaving out the
cut rate stores and discontinuing any retail
departments they may have. II this agree
ment is generally entered into and is strictly
observed by its signers 1t will come very
| near stopping the sources Of supply to the
| cut-rate stores. There is always a question,
| however, whether an agreement Of this kind
Will effect its purpose, for the reason that
| 1t Is difficult to get enough OF the manufac-
turers into a common agreement and to COM
pei them to keep their word after they have
done SO.
The cut-rate men look at the movement
as species of trust, more far-reaching in
it's intentions than most of the trusts which
| have been formed up to this time. They are
apprehensive, too, that 1t will be a success,
| for Omaha is only one Of many cities in
which the agreement is being circulated and
finds support. In Kansas City the fight has
been carried so far that the officers of an
association formed there were arrested and
prosecuted under the antitrust law and the
matter is still in the courts. If the move
| ment Is successful the cut-rate stores can
not expect to control as large a share OF the
| retail trade as they have in the past and
| their profits will probably be reduced in
consequence Some of them admit that the
prices which the conservatives are seeking
to establish are not excessive and that the
druggists are fairly entitled to the profits
which such prices would make possible.
This trouble has not been confined to the
drug trade, but is similar to the experience
gone through with at one time or another BY
a great many other lines Of trade. Man,
movements have been made to do away witt
the middleman and his profit and some o
them have succeeded.