The Washington times., 1928-02-10


by manufacturers to ask for
particular trade names the re-
taller fears he is threatened
with a changed status in which
he will be only a routine instru-
ment for passing along branded
merchandise.
Lew Hahn, managing director
of the National Retail Dry Goods
Association, now in convention IN
New York, has closely drawn the
new lines of battle for consumer
loyalty.
EITHER the retailer" says
Hahn, sis the sales agent OF
the manufacturer or he is the
purchasing agent of the COM
munity. If he falls in line
with the type Of distribution
which has been so successfully
developed by many great manu-.
facturers who are advertising ma
tionally, il he simply takes the
merchandise and says in his at
titude toward the public, / don't
know what this thing is, but, II
you want it, since you have asked
for it, here it is he becomes
simply the selling agent OF the
manufacturer and his Importance
to the community inevitably must
be dwarfed.
Specialized Resources
"On the other hand, IL he
chooses to continue regarding
himself as the purchasing agent
of the community, then he must
buy his merchandise with a spe-
cialized knowledge Of the needs
of his community and with q
knowledge Of merchandise.
In view of the growing com.
plexity OF business, 1t takes spe.
ciaIized resources for retailers to
Judge the qualities of articles for
sale. Some of the larger stores
have already set up testing lab
oratories, but smaller institutions
cannot afford the expense. Ac-
cordingly, Hahn has proposed
that the association set up a mer-
chandise testing bureau for all re-
tailers. This proposition resembles
the suggestion recently made by
Stuart Chase and +. j. Schlink
in their recent plea in behalf OF
the ultimate consumer entitled
Your Moneys Worth" These
authors proposed that the prec-
edent Of the Bureau of Standards
at Washington, a governmental
body, be used to extend fact find
ing agencies in behalf OF con-
sumers.
The retailers are fighting to re-
tain their position in the esteem
of customers. feeling that manu-
facturers of branded articles are
breaking down the barrier Of the
middleman between maker and
user
Internationally. genuine retail
ing success is to be found Al
taking the viewpoint Of the Gus.
toner The retailer should stand
sponsor for the merchandise which
he sells, and, before being in POI
sition to indorse merchandise. he
must himself examine its quail
ties. The intelligent retailer
should have no prejudice against
branded merchandise as such.
The fact that the manufactures
has sufficient confidence in his
product to make a huge invest
ment in national advertising
should be presumption in its
favor.
If the retailer acts as an i'm
partial testing station and con-
sultant to consumers, he heigh-
tens his economic functions. On
the other hand. il he merely
passes out branded packages. he
is in danger of ultimately being
replaced by automatic slot ma
chimes.
Consumption Is Key
Paul M. Mazur, of Lehman
Brothers, who is an authority on
retailing, in discussing this s4tua-
ton with me, said: II am out of
sympathy with much of the crIui-
cism of so-called wasteful distri-
button.
IT think we are reaching the
end of the period of placing en-
phasis on mass production as
the chief aim of business. Con-
sumption gives the key to bust
ness prosperity. Accordingly sell
ing and advertising constitute
the real motive force of business
WITHOUT WHICH Inc pIOuuClANC Ulc~
chine would be cold and life
less thing"
Senator Smith, of South Caro-
lima, has introduced resolution
asking for investigation of the
cotton ex h a n g e $. Strangely
enough, political economists in
Congress become fretful concern
ing the theoretical merits Of the
futures market only after prices
have fallen.
Why do no Senators or Rep
resentatives challenge the eco
Monies of the cotton exchanges
when prices are rising? IT
manipulation exists. 1t works both
ways. 1t sometimes unduly
boosts prices, but Southern Con-
gressmen are seemingly uncon-
cerned with the price that con-
sumers must pay to clothe them
selves with cotton fabrics.