The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-06-20
HARDWARE RETAILERS ARE s
FORCED OUT OF BUSINESS
: BY JOBBERS' HIGH PRICES
President Jones, of National AS
ISOLATION, Makes Bitter Com
plant Before Convention
SOMETHING MUST BE DONE
Profit as High as 62 Per Cent
Sometimes Exacted By
Middle Man"

The hardware trade OF the country
has reached critical stage in its hisc-
Tory and something will have TO be
lone In this meeting TO cut down the
PRICE which the jobber is charging the
average retail dealer for his sup
plies said one of the prominent dele
gates TO the convention of the Ma
ional Retail Hardware association, in
the Hotel Cadillac, TO The Times,
"Wednesday. AS matters stand now
he jobber is charging the retailer al
together too much for his wares, and
the result Is that many of the retail
ars are going directly TO the manulac-
,urers for their supplies. The retailer
II the small towns is also able TO get
goods from the mail order houses at
lower price than he can from the
jobber."
5. +. Jones, of Richmond, Ind, pres
dent OF the association, has for some
tbne been drawing attention TO the
high prices OF the jobber, and is con-
vinced that the trade is suffering as II
never did before, because of the CON
dltions. Replying TO a defense OF the
jobbers by ii. b. Gordon, second vice
president OF the Norvell-Shaplelgh
Hardware Co., oil st. Louis, Mo, MI.
JoBes said
Mr.. Gordon takes exception to my
statement that competition with the
iobber and mail order houses is what
cOmpels the retailer TO go TO the man
ufacturer for his goods, or prompts
he ar. 70 ,
do not understand why Mr.. Gordon
should challenge this statement 1t
is being done more or less in many
places.
Il have in mind the average retail
hardware dealer when | say that the
jobber should be in position 10 MAKE
such prices TO him that will enable
| him 10 meet the competition OF me
|unscrupulous jobber-retaier as we'll
as the catalogue house. do not
claim to get jobbers prices nor do
clam TO be the best BUYER in tire
United States.
Il do believe. however, that even
with the present unsatisfactory situa-
ton many OF the retailers are depend
en-. upon the jobbers for their exist
eIce, but IL is not all because the job
Der supplies them such goods and
such quantities as they can afford to
buy and at the right prices, but ln
MANY cases on account OF the financial
phase OF the subject
by the way, there are many who
are barely existing. There has never
teen in our history as many hardware
stocks for sale as there are today,
which is an indication of which way
the wind blows | surely realize that
the jobber is legitimate and indis-
pensable distributor for the majority
OF retail dealers. Yes, he purchases
in large quantities and dispenses In
small quantities, but when he charges
the retail dealer more for a single
article than a consumer can purchase
OF a mail order house then he Is not
fulfilling his proper function as job
Der.
When he adds CO 1-2 per cent to
his cost, how can he be benefactor
10 the retail dealer? | am aware that
the jobbers handle large quantities OF
goods at very close margins where
competition is strong, and that they
feel this must be made up on some
thing else. SO that 1t falls largely on
thu large majority the small deal
ers."
The Wednesday morning session
was taken up with welcomes, as fol-
lows: Mayor VIM. b. Thompson,
Detroit: Chas. II. Miller, Flint, pres
ident of the Michigan Retail Hard
ware association; Geo. III. Barbour,
representing the Detroit manufac-
trrers; D. c. Delamater, represent
ing the Detroit wholesalers; II. G.
Cormick. OF Centralia, ILL.,, respond
ed.
Previous to the session, Miss
Helen Abbott, OF Chicago, sang a
number of solos, displaying a pleas
Ing contralto voice.
The election of officers will take
place Friday. l.. c. Abbott. Of
Marshalltown. La, now first vice
president. will become president for
the ensuing year the association OBJ
serving the rotation system. Jack
sonvilie, Fla. is making strong
bid for the convention, next year.
Among the big men in the con-
vention are G.. r. Jantz. New York,
president OF the American Hard
ware Manufacturers association,
and F. d. Mitchell, secretary of the
organization. They are thought TO
be here to take part in the expected