Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-12
Premiums Are Rebates.

tailers and consumers. Food packages
contain coupons which may be exchanged
for premiums Or for cash.
1T is rebating. But again the Sherman
law Is evaded. because the same rebate
is given to everybody, and there is no
discrimination.
1.-The statement that many manufactur-
ers make contracts with the wholesalers,
stipulating the price the wholesaler pays
the manufacturer and the price at which
he must sell to the retailer, Is perfectly
true. In my business l deal with about
500 manufacturers. and / can recall but
three who do not set the price at which
I must sell to the retailers.
I'm many instances these contracts are
carried on to the retailer. who Is not al
lowed to sell below a certain price. The
reason for this is simple.
Suppose a retailer pays cents a pack
age for cereal or other food product
he is expected to sell at IL cents pack
age. If he cuts the price to cents, it
lowers his own profits and he is not apt
to push the article.
He will stick it under his counter and
sell 1t only when 1t is called for. In the
meantime he will push rival product
for which he can make, say q three-cent
profit.
Experience in such matters has taught
the manufacturers to protect their
articles by fixing a minimum price at
which they may be sold.
"In connection with the alleged combi-
nation among the cereal manufac turers
I recall the case Of a firm whose product
has no real competitor among the wheat
cereals. Yet this concern always fixes
the retail selling price Of its product.
Salt Trust Methods.
But aside from the cereals, there are
several food products in which absolute
monopoly prevails. OF course. everybody
knows about the sugar trust. but few
know there Is salt trust. There is no
direct combination. but one company in
Pennsylvania is in absolute control of
the salt market.
There are any number Of Independent
salt manufacturing firms, but they don't
dare lower their prices. Wherever you
buy salt the price Is the same.
Should one Of the independent manu-
facturers cut his price the big Pennsyl-
vania concern would light on him in a
minute, and put him out Of business.
The result is that there is a tacit agree
ment among the salt people.
For all I know they may divide terri
whatever arrangement there is, if there
is any, is so skillfully made that 1t would
be extremely difficult to uncover it.
Another trust one hears little about is
the starch trust: This product Is con-
trolled by Chicago concern. which is
believed to be controlled, in turn. by the
Standard Oil Company. Glucose, starch,
corn sirups and similar products all come
under the same head, and their prices are
fixed by this concern.
LAS for the match trust, that Is another
absolute monopoly. One concern controls
it entirely in this country. and the same
concern is now getting it's grip on the
match factories of England and Sweden.
Beside these combinations, the cereal
manufacturers look small, and yet we
know they are reaping a harvest.
THE retailers of Washington are not
responsible for the high prices the con-
sumner has to pay. Neither are the whole
salers. who work on a fixed percentage
of profit in most cases. The wholesalers
profit is about 10 per cent; never higher.
The profit Of the retailer runs a little
higher. How great the manufacturers
profits are nobody knows. and yet manu-
facturer has the right. so long as he does
not form illegal combinations. to charge
what he pleases for his products"