Evening star., 1928-06-18
RETA|LER-OWNER
PLAN IS PRAISED
Tobacco Company's Project
Opens New Field of Partic-
ipating in Profits
BY J. c. ROYLE.
Special DISPATCH to The Star.

Special Dispatch to The Star.
NEW YORK, June ia half dozen
industries are arguing today over the
question of who originated the consumer
ownership idea and policy. The credit
is claimed for some of the power and
light corporations of California. At any
rate. the retail trade of the United
States is watching with the keenest
interest the development of the plan for
extending the policy of consumer own
ership to retail trade inauguated by
one of the great tobacco manufacturers
but few days ago.
Opponents of the plan, which pro-
poses to distribute stock in the COM
pany to the jobbers and retailers, who
buy the products of the company. say
that it is merely minor adaptation
OF the cigar coupon plan, which has
been practiced for many years.
Unlimited Expansion.
whereas the cigar coupon plan enabled
the recipient Of cigar coupons to ac-
qulre definite object or commodity
with fixed value, such as vase,
razor or a camera, the present plan
goes further in that it enables the re-
taller and wholesaler, by his own pur-
chases, to increase the value of the
premium which is given to him.
In discussing the effect of this novel
policy David A. Schultz, who is one of
the leaders of the retail tobacco indus
try, said: THE limits to which this
idea may be expanded are bounded only
by ones imagination. Here is a plan
which makes the jobber and the retail
er closely linked up to the manufac-
turer, so far as profits are concerned.
t,n
pany from which they buy their goods
1t makes them eager to help that COM
pany to succeed.
Participation of Jobbers.
Stock distribution so far has been
developed from the standpoint of con-
sumer-ownership in the case of the
American Telephone & Telegraph Co..
for example. It has developed from the
the case of the United States Steel Cor
poration. Proctor g. Gamble and others.
But here is plan which rounds out
the picture, in that it gives stock par
ticipation to the men-retailers and job
bers upon whom a company is de-
pendent for its success In merchandiS-
ing its product
Undoubtedly it will be most impor-
tant in bringing the products of the
concern In question to the fore. And
undoubtedly it will receive the serious
attention and consideration Of other
fields in industry and commerce.
THE interest in this policy has been
augmented by the difficulties which
have attended the operations of whole
sale and jobbing houses in the last
three years. These houses have been
forced to face an entirely new set of
conditions owing to the development of
the great chain store systems, which
bought direct from manufacturers in
stead of through the wholesale and
jobbing trades. Some of the jobbers
entered the retail field in part to give
an outlet for the goods that they
handled Still others adapted their
programs to a cash and carry basis
Others in turn developed themselves
into chains covering wide sections OF
territory.
Improbable Territories.
general survey of the sales and
credit prospect of the country as
whole indicates beyond question that
the unfavorable territories have in
creased decidedly in the last month
These centerS which seem unlikely to
be especially profitable fields for the
retailer are located mainly in the South
and throughout the Midwestern section
This is decidedly an agricultural dis
trict. and, Of course, 1t largely dependent
on weather conditions. improvements
have been shown throughout New Eng
land and the Middle Atlantic States.
the North Central States and the
Southwest.
The general sales quota throughout
the country. with the exception of the
South Atlantic States and the Mid
western States mentioned, may be safe
ly predicted at to 10 per cent. higher
than for the corresponding period of
1927.