The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-02-27
TO DOT COUNTRY
WITH BIG HOUSES
Big Scheme to Establish Whole
sale Grocery Houses Turnout 8
the U. S. Is Afloat.
Manufacturers Of the Country's
Staples Are Back of the
Movement.
Some Sections Already Organized
on Paper-Northwest Not
Entered as Yet.

According to the Commercial Bulle-
tin and Northwest Trade, big eastern
financial interests are preparing to
finance a corporation which will es-
tablish chain of wholesale grocery
houses turnout the United States. A
house will be established in each inn
portant distributing point, thus cover
ing every section thoroly.
AS near as can be learned this
scheme is supported and encouraged
by men who are deeply interested in
the success of the big combinations
which manufacture grocery products
and it is understood that Standard Oil
money and men will play an import
ant part in the deal.
This plan has been forming since
last December when a prominent job
Der of the middle west was called into
consultation at New York, and found
the plans then we'll advanced. 1t is
said that this man was made the
agent of the promoters in one Of the
important middle. states. and that he
had already contracted for several
houses In that state. It is also said
that agents have been appointed in
other states to survey the ground and
report ON prospects.
The plan differs from previous plans
in that it is not a stock jobbing
scheme nor a syndicate buying ar
rangenent. The men purpose, to
erect big distributing machine with
out the help Of any watered stock
| whatever. In all purchases of, job
bling plants it is said that the element
Of good will is to cut little figure, The
combine offers to buy the stocks and
in some cases the buildings at their
cash values. If the jobber to whom
| the proposal Is made, refuses to sell OF
If it is impossible to buy plants at any
| particular point the new company viii
erect building and stock it. Most OF
| the middle west jobbers, to whom the
proposal has been made so far have
been willing to sell.
An Ally of Manufacturers.
| The information that has SO ia,
| leaked out indicates that this big dis
| tributing machine is to be a close ally
! Of the big corporations which manu-
! facture large part of the country
staple grocery output. New York ant
other eastern men who have become
heavily interested in the securities O
these various enterprises desire t
guard against a too rapid increase II
independent competition. In some in
stances the position of trusts in thu
outside concerns, which, of course, arr
not unwelcome to the wholesalers
taking the country over, who hav'
tseen their. profits in some of these line
materially reduced in the past fv
years. The Standard Oil company
success in maintaining its position
; thru control of the distribution as wei
as Of the production Of oil, is an in
SEPARATION to the interests who want t.
see no losse in the price of trus
stocks and bonds.
/ Not In n. w. Yet.
} So far nothing has been heard o
this scheme by the wholesalers of tn
northwest but the promoters plan t
move rapidly and will probably have
) representative in Minnesota early i
the spring The middle west repre-
sentative spoken Of says he will hav
the plans in his section working be
| fore summer. ..as