The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-02-23
SQUEEZED BY TRUST
Kansas Wholesale Grocery
Men Met Here Yesterday.
r1OTEST WILL BE MADE
Continental Tobacco Comp any
Is Shaving Down Prices

Representatives of the different Kan sa
wholesale grocery institutions met in Il IL
city yesterday to take steps to foresta
the action of the Continental Tobacco
company, or tobacco trust, in cutting
down their profits. This squeezing pro
cess has been going on for some time, ana
every new bulletin issued by the company
shaves off a triae of the profit in handling
Its goods.
For long time the Continental people
allowed all wholesalers a discount Of 2
per cent on the face Of the bill for cash
and then a further discount of 10 per cent
for handling the goods. This was salts
factory to the wholesalers, and they had
no complaint to make.
Last December, however, the trust ap-
pointed H. D. Lee of Salina as its selling
agent and notified all wholesalers that
they must purchase their goods through
him. The company went on to say that
they would allow a discount Of per cent
and then the usual 2 per cent off for
cash. Provided the sales exceeded 1900, 600
pounds per month, then an additional l
per cent for each 100000 pounds exceed
ing this amount but in no instance would
a greater discount than y per cent be al
lowed. This looked fair on the face, but
as a matter of fact the sales rarely
reached 100000 pounds a month, and it
was simply taking away 2 per cent profit
and giving it to Lee This action met
with such vigorous opposition in all parts
of the country that it was abolished after
trial of about six weeks.
Instead of replacing the old agreement,
the Continental people proceeded to put
on the screws a little tighter. A bulletin
was issued Announcing that in the future
the company would allow a discount Of 8
per cent off the face and per cent for
cash off the net amount. BY this action
the company continued its 2 per cent cut
and then made a considerable profit by
making the discount for cash off the net
and not the gross price.
In addition to this, in order to push new
or unstable brands the trust offered an
other rebate OF per cent off certain sta
pie products # the wholesalers would
purchase given amounts of other goods in
connection with them. This would force
the wholesalers to take these goods to get
the cut on the staple products.
The wholesale merchants of Kansas
want the old rate of 10 and per cent off
restored. and yesterday decided to formu-
late a vigorous protest. 1t is altogether
likely that they will be joined in this by
the wholesale grocery organizations Of
other states, and it is hoped that the
trusts hand may be forced and is COM
PEELED TO restore the old rates.
Besides this subject the wholesalers
talked about freight rates and other top
ics of interest to the business. It is pos
sible some decided action will be taken
in the near future to obtain better freight
rates. but nothing was done in this direc-
ton at the meeting yesterday.
The meeting afterwards resolved into a
social gathering, and the members of the
association attended the clambake at the
Commercial club last night. The whole
salers report business good and say that
the credit business is in especially ssatis-
factory shape. Country merchants are
paying up their bills promptly and credit
men are having no trouble at all
The Modern Way
Comments itself to the well-informed. to
do pleasantly and effectually what was
formerly done in the crudest manner and
disagreeably as well. To. cleanse the sys-
TEN and break up colds, headaches and
fevers without unpleasant after effects,
use the delightful liquid laxative remedy.
Syrup Of Figs. Made by California Fig