The Tupelo journal., 1908-04-17
BY DUBIOUS MEANS
BUYERS OF GOODS FORCED no
PAY ExoRBITANT PRICES.
SOME COMMON CRAFTS
Alleged Wholesale Houses Growing
Rich Through Trade Secured by
Agents Who Work in the
Rural Districts.


buy something at prices SO low as will
save dealers profits" that costs many
residents of rural communities vast
amounts of money. 1t is the seduc'
tive argument held out by certain
classes of houses that seek to do bust
ness through the mails, that the local
dealers are charging too much for
their goods, and that it is fair for the
consumers to save their dealers
profits themselves, that causes many
to gain experience that is costly.
For many years past travelling
agents have been numerous in agri-
cultural sections soliciting orders for
goods among the farmers. This class
Of agents is known as box-car men.
They enter a neighborhood, and aim
to sell sufficient goods so that a car
load a be shipped to the nearest sta
ton and distributed. The ways OF
these agents are much like the heath
en- Chinee"-"ways that are dark and
tricks that are vain" But neverthe-
less, they reap rich rewards, or they
would quit the business.
1t should be known to every intelli-
gent person that all classes of goods
have a real value. These values are
based upon conditions. The law OF
supply and demand has not all to do
with fixing prices. To concisely sum
up the factors of cost of a manufac-
tured article there are three principal
elements, viz: The cost of the raw
material, the expense of manufacture
and the expense of distribution. From
the producer of the raw material to
the consumer, all interested in the
transactions are entitled to equitable
compensation. The farmer, the grow
er of oats sells his oats to the mill op-
orator. The oats is manufactured
into oat meal, or breakfast food. The
wholesale and retail dealers are en-
ployed to distribute it. The wholesale
dealer is nothing lore than a ware
houseman, and his compensation Is for
storage, and for costs of handling, and
the guaranteeing to the manufacturer
the cost of the goods sold. He receives
only a small margin Of profit. 1t may
be said that the retailer fills a place
as to the consumer Is does the whole
saler to the retailer. Now it is i'm
practical for the manufacturer to
maintain stores of his own in hun
dreds and thousands of towns. If he
could find a more economical way
of distribution than the wholesaler
and the retailer he would do so. But
if they are cut out a more costly
system of distribution must be in
augurated.
Now as to the travelling sell-direct-
to-the-consumer agent. He does his
business chiefly with the people who
give little study to commercial mat
tiers. He represents himself as agent
for a large wholesale house. He
talks continually of how the consumer
by buying from him can save the
profits that the retailer would make.
But the fact is that the expense is
not eliminated. The average traveller
who sells goods to the farmers re-
ceives a commission of from 25 to 40
per cent, or about Is to 20 per cent.
more than the retailers average on
such goods as he sells.
But this is not all. These men are
downright dishonest as a general rule.
They are a development of the
proverbial lightning rod agent. They
practice the same principles, only
Shift the kind of goods sold. In fact
the majority of them represent alleged
houses that exist only in name. In
one western city are located a number
of men who are doing business under
a half dozen different names They
even haven't a warehouse. When or.
ders are sent to them by their agents,
they go to some wholesale grocer and
buy the goods. Not alone this, but
after they purchase what they need
they adulterate the same. They buy
dried fruits in bulk, the cheapest kind,
and repack them in boxes supposed to
weigh 25 pounds each, but in reality
only weighing from 20 to % pounds,
cases included. The spices that are
bought are adulterated with ground
nut shells, starch, and other material
that makes up weight. The coffees
are of the very cheapest and the teas
the same. 1t is seldom that the articles
sent to the purchaser are the same as
the samples shown. 1t must be re
membered that the agent is under
heavy expense, four to six dollars
day for team and hotel bills, and then
he receives 25 per cent. commission
on what he sells. To this must be
added the profits for the house, which
is about another 25 per cent. All this
must be made and the buyer of the
goods is the n who must make good
Lately in the western states the box
car men have adopted dubious meth
DDS of getting trade. Knowing how
anxious the farmers are to secure the
highest prices for products, they have
been travelling around through tbs
country pretending to be buyers o.
produce. They contract with the
farmer for butter, eggs, poultry, etc.
promising about 25 to 80 per Gent
above the market price. They claim
they are shipping to Arizona, New
Mexico, or somewhere else, where
higher prices are received. Incident
ally they say that their house runs ;
number Of large stores, and also sells
to the farmers, saving them the aver
age profits of the dealer. This is sui
ficient. The farmer falls into the trap
gives a good large order for supplies
and a few weeks later he fnds /,
cheap lot of goods awaiting him C. O