Page 118 - Past Presidents' Club Book 1

First Annual Cvwrcntwn
Association, Mr. President, to devise some way to hold that re­
sale price. You cannot expect the manufacturer to do it unless
the people who handle the chuck do the same thing. We can t
give a margin of twenty per cent and let you sell at ten per cent
when we could possibly get twenty per cent of the user ourselves
if he could not be satisfied with buying of the dealer.
P r e s id e n t S t r o n g : In reply to that question which Mr.
Bailey suggests, Mr. Fernley, the Secretary of the National
Hardware Association, has had a good deal of experience, and I
suggest that he answer that question how to hold it.

M r. F e r n l e y : I will make it individual with Mr. Bailey.
You sav it is up to this Association to maintain your price?
M r. B a i l e y : Certainly, to help us.
M r. F e r n l e y : W e will come back to you as an Association
and ask you to confine the sale of your chucks to the members
of this Association. Are you prepared to enter into an arrange­
ment of that kind, and sell none but members of this Association ?
(Pause). I will answer it for you— hardly. ('Laughter).

M r. B a i l e y : Hardly at the present time. It may work
up to that when it comes to the proper time to do that.
M r. F e r n l e y : W e agree with you that it is not the proper
time, and you are not requested to do it, but in the meantime, as
long as you are recognizing customers who are not identified with
this Association, and in some instances not identified with any
Association, do you not think it is quite proper for your Asso­
ciation of chuck manufacturers to regulate the price to the extent
of withholding the profit for a given length of time (say three or
six months), and then paying it to such customers as have
respected your prices and terms?

M r. B a i l e y : I do not see any objection to that. That is a
question put to me suddenly, and T could hardly answer it off

hand without considering it a little. 1 think, not speaking for
our Association, but only for myself, I should certainly favor
those who were members of your Association and kept the re-sale
price tip, and should do all in my power to co-operate and get the
other dealers into line if I had any influence in any w av: and if
by withholding some profit from them in any wav I could give the