The Republican. [volume] (Oakland, Md.) 1877-current, 1929-05-02

is to depress prices of the product
over the whole United States, for the
market is very sensitive Here again
the farmer is the shock absorber in
the end, for Gamers protect them
selves best by paying farmers less.
"This type of merchandising, offer
ing bait to lure customers, is not dig
nified merchandising" says Prof.
Boyle. at is harly worthy of an hon
orable merchant. Our merchant
princes, our Filenes, our Wanamakers,
our Marshall Fields, our Jevnes-have
not resorted to such lodges. May the
chain stores see the error of their
ways! Genuine clearance sales have
nothing in common with the bait sys-
tenn now used by some chains"
Famous For Depressing Prices
"The buyers of the chain Stores"
continues Prof. Boyle, "are famous
for their power in pushing for lower
prices. They consider themselves
frankly as the consumers agents and
representatives. The economies in
mass buying they claim to pass on to
the consumer. This is their main
claim to patronage. When the farm
ers, through their co-operatives, sell
to the chain store, there is direct con-
Hio+ Of iptoract tho M oooro five ROY,
resenting the producer and the chain
the consumer.
about one half of the co-operatives
in the United States that have done
business with the chains have found
the business satisfactory, about half
of them found the business unsatis-
factory. Thus, a New England egg
cooperative tied up with chain store
as it's sole outlet. Then the chain be-
gan to beat down the price. In the
end the cooperative was put COM
pletely out of business. On the other
hand, large cooperative in the mid
die west was asked to sign up with a
chain for its total output. 1t declined,
with thanks, and built up outlets
through several different channels.
Now it is a prosperous and powerful
cooperative.
While Prof. Boyle criticises the
methods of the chains, he gives the
devil his due and points out as one
of the better aspects of chain mer-
chandising, the fact that they are
forcing standardization on some far
mers' co-operatives. He points out
that the chain can buy to advantage
only we'll standardized products. And
greater standardization, he declares,
is one of the most fundamental needs
of cooperative marketing today.
Farmers Must Change Methods
Another claim in favor of the chain,
he finds, is that by its process of low
ering prices and promoting standard
ization and quality, it is hereby in
creasing consumption of these same
food products But" he asks, chow
get your increasing production along
with lower prices? This question
brings US to the final effect the chain
stores will likely have on farmers"
This, he finds, will be to cause the
farmers to change their marketing
methods and adjust their production
to the demand.
Chain stores, as buyers, may be
compared with an army facing mob.
The farmers who have stuff to sell to
the chain need to be modified as one
cooperative manager puts it, "the only
successful way to cope with the sit
uation is for producers to combine in
strong, we'll financed, and ably man
aged co-operatives, the management
of which has the CUTS to initiate a
strong sales policy and stay with it in
spite of hell and high water"
"The chains" concludes Prof. Boyle,
twill put prices down as low as the
traffic will bear, that is, to the point
where the efficient farmer will get all
his stuff is worth but no more"
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