The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-26
THE MERCANTILE MERGER;
CAN It BE A SUCCESS?
Watching
the Of SUCH
Combination Unless Sources Of Supply Controlled

the goods and his travelling man could
get his share of the business.
The grocery trade is surrounded by
peculiar conditions On one side 1t buys
goods of numerous trusts which prac-
tically control the staple lines. On the
other side it sells goods against the hard
est competition Of any Of the jobbing
lines. In the central northwest territory
covered by the twin city houses. there are
about ten wholesale hardware houses and
five dry goods houses. In the same terri
tory there are about forty houses whole
sailing groceries. Leading grocery job
bers are anxious to effect any saving pos
sible in the cost of doing business. Two
of the leading twin city grocers3 believe
| that a consolidation on cOnservat lines
is practical Others insist that the con-
ditions surrounding the trade and the re-
lation Of the grocer to the manufactures
are such that it is impossible This view
is explained by the head OF a big twin city
house as follows: IS
ITO make national consolidation in
the wholesale grocery trade a success, It
would of course include only the big CEN
tiers of distribution. Some arrangement
would be necessary with the manufac-
| turer in order to keep the competition Of
the cross roads iobber. at a reasonable
point. The nature of the grocery busi-
ness is such that the cross roads jobber
| will always be with us. We can beat him
on the big trade and in most features of
the busiress but he will always be an
element. In my relations with these
various combines / have not found that
4 the buyer of large quantities is given
much Of an advantage over the small
buyer.
..The trusts have shown desire to
i keep their goods in the hands of as
n any. wholesalers as possible and com
1 sequently the man WHO buys fifty boxes
/ Is given about as good a price as the
.Ebuyer who takes carload. The trust
reasons that to- give the big jobber
/ lower price on a big order would discour-
age the snail dealer, and in time make
/ the big jobber too powerful an element
i in the distribution of their goods. There
4 is no question but that the grocery trade
i offers an opportunity for economy in op-
! Grating expenses through consolidation.
Supposing two thirds of the houses In
i Minneapolis and Duluth should enter
/ consolidation along with other big CEN
tiers in the country. Say that We reduce
i our travelling forces to, ha It the usual
i number If the big comb tons refuse
1 to recognize us, other houses are; given
8 an opportunity to come IN. Ihey put
4 out their travelling men, and you can be
4 sure that every man will get h':s trsess.
q The travelling men oftentfmes gauge the
q business more than. tho nous s4.s.
4 combine would simply lose i'll volume OF
j business which is quite essential IN the
8! grocery trade. Then It must be reaissn-
8 bered Il at Of The big groeeFgsaou Sc
II soff the country are now councillors Of the
q trusts They manufacture ali kinds OF
food products s4s
The Salesman a Factor.
The traveling men and their relation to
! the consolidation movement is discussed
by the head of a twin city " nolesale
& paper house as follows: s s5s
s ..It is my experience that the number
of travelling men covering territory is
:. big factor in the division of the business
: coming from that territory The per-
: sonal equation cuts big figure In the
!. ionbinp trade Organize a combine OF
; paper jobbers and I will ask nothing pet
i ter than to be on the outside with force
Z OF good statesmen, if 1 can get the goods
4 | ia Sell. When it comes to selling goods
/ vou cannot Judge any feature of the game
1 by rule There are hundreds Of statesmen
e in the country to day who are holding
. big trade against all Corners and at bet
e. ter prices than their competitors. sup
], pose a paper combine should be in opera
! tion now and all of the paper houses IN
5 this territory with few exceptions were
e Included Granting that it could buy goods
e at less money than the independent, n
k spite of all that the independent Woulo
v do a good business. The personality o.
Y the travelling man would do great deal
e Sentiment among retail dealers must no.
n be forgotten. They are no friends OF tne
n combine or trust. The only way In wnlcI
S the combine could keep competition at
ri satisfactory point would be to deprive the
IS iobbers of goods That may be possible
n in some lines, but the prospects for 1t ART
poor in the paper trade. The jobbers II
: other lines will watch the progress OF tn
it first iohbing combine with interest. / be
[e lteye that the assault which will be made
is on the idea by the entire body Of travel
d, ing statesmen will make all sorts o
l. trouble for it unless it is powerful enough
lie to keep down competition by cutting OF
Z the supply of goods. A combine Will saw
lel money. in the cost Of selling and In othe
,e directions but much of this must b
70 realized through reducing travelin
le forces. That, in my opinion, invites /
IS reduction in the volume OF business.
& II the combination plan can be apple,
s. successfully to merchandise sjobbing, tn
o. leading iobbers point out as a direc
lie effect the reduced number. OF houses, AM
es people employed In the distribution q
a. merchandise in the various jobbing cen
al tiers. Consolidation means the loss OF IN
Id diyiduality of the various firms and TIL
3 will operate in the direction Of less com
petition among various centers, and slo1
r. development of the jobbing trade Of vari
IS. Gus western cities which, under the pres
he ent system, are assured OF bright futur
re in wholesaling. - w. ~. laws.
Il