The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-10-04
LIGHTER THAN AIR
so HARDWARE JOBBERs REGARD
CONSOLIDATION SCHEME.
SOME NORTHERN GENIUS.
WANTED TO COMBINE JoBBING BUS
MESS OF THE ENTIRE, COUNTRY.

Savannah Jobbers Visited by This
Advance Agent of Prosperity, but
They Took No Stock in His scheme.
For Many Reasons They Regard 1t
as Impracticable - Mr.. BigeIow
Was Feeling the Pulse of the
Trade-It Is said 1t Would Require
Two Billions to Consolidate the
Hardware Jobbers of the Country.
The Iron Age Laughs at the Pro-
ject.
Savannah. in common with other
cities throughout the country, has
been visited by one of the advance
agents of prosperity, who has a scheme
for the consolidation of all the hard
ware jobbers In the United States.
Savannah, like other centers of the
hardware business, did not take to the
scheme with the avidity its pro-
motors seemed to expect.
1t is said that to consolidate the
hardware jobbers in this country, by
the purchase of their stock and good
will, would require an expenditure of
at least two billion dollars. There are
1S6 members of the National Hardware
Association alone. There are other
firms in the country whose capital is
so large and whose business is so ex-
tensive that they do not feel the neces-
sity of joining with others in the bust
ness, and that are not members of the
association. There are, perhaps, 400
other jobbing houses, whose business
is not large enough to permit them to
become members.
Some time ago the Savannah job
bers were visited by Mr.. Bigelow of
New York, who asked for an option on
their businesses. 1t is not believed that
he secured a single option in the city,
all the jobbers believing then, as they
believe now, that the scheme is too
chimerical to permit of successful con-
summation. OF course, If the money to
buy the businesses is forthcoming they
could probably be bought, but it would
be at such an allowance for good with
th~t the stock of the buying corpor-
alton would have to be drowned almost
before operations by the trust could
be begun.
Several of the Savannah jobbers
were seen on the subject, and they all
said they did not believe that anything
would follow the agitation that has
been begun in the North. The scheme,
in their opinion, condemns itself.
The views of the local jobbers on the
subject, which correspondence with
their friends in the business in other
cities leads them to conclude are gen.
eral are endorsed by a leading article
in a recent number of The Iron Age,
the organ of the hardware jobbers in
the United States and one of the most
conservative and carefully edited trade
journals in the country. The Iron Age,
1icOrtSSfror "a nd Of in
quiring when building castles in the
air, why should imagination be re-
strained by the teaching of experience
or the dictates of common sense?"
says:
1T is unnecessary to point out the
difficulties which lie in the way of the
successful carrying out of such an en-
terprise. Even supposing that there is
to be found the financial backing for
the project, and that the stock would
either be accepted by the houses who
thus desire to get out of business, or
be taken by a credulous public, this
would only be the beginning of the OBJ
stacles in the way of the consolidation.
The enterprise would certainly be
weighed down by a liberal allowance
for the good will purchased. The job
bling business may be far from satisfac-
tory, but few houses whose identifica-
its strength would be willing to sell out
without something of a fancy valua-
ton.
Perhaps even a graver obstacle
would be found in the unpopularity
with the trade at large of anything
that might, justly or unjustly, be des-
ignated as a trust. The marketing of
goods by jobbing houses outside of the
consolidation or by manufacturers in
trAn If.,r~ t.@ l.
would thus be materially facilitated,
and any advantage that might be
gained in the purchase of goods or in
economies in their distribution would
be counterbalanced.
THE advantages of such a consolida-
ton, on an exaggerated estimate of
which the arguments in favor of the
project are based, would certainly be
more than offset by the disadvantages.
There is, however. no need to consider
the matter seriously. While there is a
possibility of local consolidation or for
a few jobbing houses to unite their
interests, the manner in which the
matter is presented in current discus
sions is fantastic and impracticable
Were serious attempt made to carry
it out on anything like the lines indi-
Gated II would be consolidation gone
mad
1t is only necessary to add that the
possibility of consolidation by the local
jobbers has not been considered and
will not be. 1t is believed here that
the tour of Mr.. Bigelow, through the
country was designed merely to feel
the pulse of the jobbers, and that he
has learned enough from their attitude
in the matter to convince himself that
the scheme is a vagary unworthy Of
serious consideration.