Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1909-1911, 1911-05-05
A Warning to the Retail
Merchants of United States.

most important question before the
American People today is that of market
ing-where and by whom the necessities
of life shall be sold, and on what terms.
1t is proper, therefore, to call attention
to a certain condition in the retail
trade Of this country, particularly in
smaller cities, towns and village, that is
practically certain to bring disaster to
our country trade if allowed to continue.
Not alone are the merchants effected,
but the existence of the towns them
selves is threatened, and the worst fea-
ture of the situation lies in the fact that
very little is being done to resist these
harmful tendencies. The matter has
been summed up in very strong and
clear way by Mr.. Thomas J. Sullivan,
Secretary of the National Business
Development Association Of Milwaukee,
who has done much TO further the in
terests of the country merchants.
"a peculiar and very dangerous con-
ditiOn cOnfrOnts the retail business in the
smaller communities Of this country"
said Mr.. Sullivan recently. "The elimi-
nation of the "middleman" is the
battle-cry of the interest that are endev-
oring to put out the existence the retail
er and everyone that stands between the
manufacturer and the consumer. The
large mail order catalog houses are
steadily forcing to the rear the retail
merchants and others who believe in the
fair methods of marketing. The situa-
ton is really desperate in some quarters
and if the retail business of the country
towns will be centralized in the larger
places, and general Wiping out Of those
towns will be we'll under way.
"The retail catalog house base their
defence on the plea that by selling for
cash they can offer lower prices and rev.
olutiOnize marketing methods. Nothing
could be further from the trnth. The
fact is that 95 per cent of the trade of
this country is done on credit basis,
for the very good reason that there is
not enough money in circulation to do
business in any other way. The founda-
ton of the entire commerce of the United
States is based on credit, and this estab-
| Used principle is recognized by every
one who is acquainted with economics.
"For the sake of argument, if the re-
tail catalog concerns were successful in
eliminating the middleman in the rural
sections, very serious state Of affairs
would present itself to the farmers
There being no local distributors, they
having been removed by the retail cata-
log houses, the farmer would be obliged
to undertake the distribution of his
produce to consumers, direct, a proceed
ing which is wholly impractical and
which would mean certain failure to
whoever tried it.
''SOme people have asked me-. contin-
ued Mr.. Sullivan, "why this condition
has recently presented itself. The an
swer is that the retail catalog system,
| like harmful weed has been allowed
to grow unmolested until it has reached
proportions where the local merchants
must do something towards self-preserv-
alton. To abundant and intelligent
| advertising must be ascribed the success
of the reail mail-Order catalOg houses.
The same means of reaching the consum-
or were always in the hands of the retail
merchants who are now suffering, but
they believe sthe mailOrder catalog
system was largely a fad, and would
gradually die out. The retail merchants
of majority of our country towns have
at last realized their mistake, and are
looking for relief. The job is a big one,
but it can be done, provided the retail
merchants are united i'd their desire for
changed conditions. AS an indication
of what has to be cOntended with, | Want
to call your attention the fact that the
retail catalog house system, though it's
heavy advertising patronage, is able to
control the editorial and advertising
policy of farm journals, monthly and
weekly magazines, etc. havinga combin-
ed monthly circulation OF forty millions.
Through this method of work they have
educated great number of consumers
to buy from them and thus the legiti-
mate trade of the country town has
been drained and will be wholly destroy
Cd unless effort is made to divert retail
trade to its proper channel"
1t is Mr.. Sullivan's firm belief that in
order to build up and restore the country
trade, the same methods used by the
retail catalog houses is tearing it down,
must employ, namely, a generous, steady
and consistent campaign of education
directed to both the consumer and the
retailers, It is perfectly logical that if
the retail catalog houses have brought
about this ruinOus condition through
| liberal ADVERTISING the same means can