The weekly times-record. (Valley City, N.D.) 1912-1922, 1913-10-30
THE COUNTRY MERCHANT AND
HIS BIG COMPETITOR.

That the mail order houses are do
ine annually 20 per cent. Of the ag'
ssrerate business of all the country
stores of the United States Is one fea-
ture of striking report recently sub
saaitted to the American Fair Trade
lAague by its Research Bureau. Ac-
Sording to this report the country
stores do total yearly business of
about $2,5Oo,OoO,OOO. while the bust
ness of the mail order houses Is esti-
mated at $5O0,000,000. In a careful
analysis of the causes leading to this
state of American trade conditions, 1t
Il pointed out that the small town Is
st.sing ground everywhere, more es-
socially in the Middle West.
The constant and persistent exploit
tation of branded and trade.marked
merchandise Is assigned as one OF the
>usst powerful levers used by the cata-
eoe concerns to curry favor with the
consumer. In numberless cases these
nationally advertised goods are Of
1ared FOR sale at prices known to be
ea1ow the jobbers cost.
Almost invariably, it is reported,
these standardized goods are fea-
sared in prominent type on the first
sages of the catalogs, the inference or
attempted implication being that these
bargains" are typical of other "bar-
GAINS" enumerated in all other pages
II the volume.
The point is made therefore that
sAese concerns, by sacrificing their
ssofts on well-known goods, have
been able to convince a great part of
che population, especially in rural dis
esicts that order UNKNOWN goods
are available in their stocks at an
equally great saving to the consumer.
1t is predicted that this merchan-
1ising development will constitute one
Il the points to be urged in Wash
layton at the coming session Of Con-
eress in the course of discussions re-
sating to proposed legislation bearing
IN the right of manufacturers of
standardized goods to set uniform
~etail price for their wares.
The report continues:
.While the large concerns referred
TO- obtain every possible concession
ard reduction in price, it must not be
supposed that these gains, so costly
il the long run to the manufacturers
i, ,stfe. passed on to the consumer who
satronizes these big establishments.
erice-cutting is resorted to only for
eno purpose of attracting trade away
from other stores. Every effort has
been to make the net profit for the
concern as high as possible. The
Grade of other stores is attacked in
ito most vulnerable points Standard
4: Well-known prices, is the field in
which price cutting has the strongest
effect as trade puller. The extrava-
giant. dishonest statements published
concerning price reductions on I'M
Known goods fail to have the effect
~ drawing trade. because people are
beginning to suspect the truth of such
statements. But if such items are
sweetened' with few reductions on
@sther items that are we'll known and
whose values are fixed in the minds
II all then the advertisement becomes
powerful trade-drawing magnet.
Therein lies the purpose of price cut
eng, to make people believe what is
Not true regarding values offered, and
what would not otherwise be believed
4 dishonesty in advertising could be
made punishable, if Misrepresentation
concerning goods offered for sale
souid be stopped easily and thor
eaghly. price cutting of the kind that
has just been described would cease
Where would then be no object in cut
hug prices. The large store would
chen have to sell on its merits, and II
n certain that it would then not Gel
ate proportion OF trade that it nov
Makes away from the small stores. Thu
small store, efficiently managed, woult
te beyond danger and the buyin,
tGbllc would be better served"