Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-04-28
L. n. BECK WRITES OF
HARDWARE COMBINE

To the Editor of The Atlanta Journal:
In your issue of the 18th you publish
quite an extensive article on THE Hard
ware Trust If there was such thing.
or even one contemplated we would deem
your editorial a very timely one. If you
based your article on the information Civ
en- by the writer TO your reporter on the
18th you fall sadly in error Had you done
so it would have appeared in quite a dif-
ferent form, as we told him plainly the
proposed National hardware and Metal
company was by no means trust, but an
association of hardware houses in various
trade centers of the country. whose pur-
pose was to gain benefits both in the pur-
chase and distribution of their wares.
A union of hardware houses is in no
sense a trust unless all the hardware
houses were so combined that they could
control the trade in their lines, and make
prices and terms arbitrary. Now. when
we tell you there are twice as many hard
ware houses outside of the proposed as
ISOLATION as those in 1t. you will readily
see that prices and terms will e regulat-
ed by competition.
At this time merchants are not
combining themselves to a territory
that is geographic or legitimate, but
are seeking business in sections that
prove Improbable and are creating
competition that leads to decentralization
and death to the trade. This unfortunate
condition is making the business very
much more expensive to transact than is
healthy, or than it naturally should be.
The whole theory of the association is to
have distribution where it naturally be-
longs-believing that all things being equal
the merchants WI buy near home, be-
cause II will require less capital for their
business, and get far better accommoda-
tions than we can render them as an in
dividual house.
To our mind this association will also
be quite helpful to Atlanta. perhaps as
much as to any city in the union, and for
the reason a larger amount of capital will
be paid for wages; more taxes will be paid
to the city, county and state; more mer-
chants wal trade here. and Atlanta will
surely prosper to the extent Of these BEN
efits.
This organization does not in the slight
est degree attempt to embrace all the
hardware houses or eliminate competition
we fully believe that competition is nee
essary to good, healthy business condi-
tions. Provided, as we expect to be with
abundant capital we will be able to pay
spot cash for all our purchases, thereby
saving cash discounts that individual
houses cannot do all seasons Of the year.
Furthermore, 1t is estimated that the saw
ing in this line will pay the entire divi-
dend on the whole issue of preferred
stock. to say nothing of the profits that
may accrue from the legitimate operations
Of the business. You are sadly in error
when you say the purchase of hardware
will supply the 'illegitlmate profits to the
entire combination How can this be
when we tell you there are two houses
outside OF the association to one in II?
Will not they regulate competition and
give that protection due to the buyers of
Hardware. agricultural implements,
household utensils, ETC." which seems so
much a matter of concern? 1t is an easy
matter to count twenty houses in Geor-
gia doing a wholesale hardware trade, will
not they see to 1T that the four houses
in the state associated with the National
Hardware and Metal company get only
what is due them in a competitive race?
Now, Mr. Editor, let US state in conclus-
ion, no changes in prices win be made ex-
cept as are incumbent to make adjust
ment to those made by the manufacture
ers. Respectfully submitted,
BECK & GREGG HARDWARE o.,
L. H. Beck, Presiden..