Page 28 - Past Presidents' Club Book 1

First .innuiil Convention 31

burg. Mr. Henry Prentiss, of Xew York, and Mr. A. T. Babcock,
of Chicago, whose duty was to take up the various questions which
have caused trouble in the machine dealers' end of the trade.
“Mr. J. H. Drury, our Secretary, sent a number of letters to
the leading' dealers who are members of our association, as well
as addressing similar letters to other dealers not members. The
replies to these letters all play on one string, viz., exclusive ter­
ritory. absolute protection and larger profits. The first two points
can be easily handled, but the last offers difficulties.
“Its necessity is apparent. In five years we have all seen a
steady advance in the cost of doing business covered by increased
rents, insurance, traveling expenses, salesmen’s salaries, telephone,
drayage and other items. W e send salesmen out after inquiries
which, five years ago, we would not have thought of. Some­
times three, four or even five trips are made, with a result of one
small sale, the profit on which is entirely eaten up. W’e realize
that this is a serious problem, but feel the manufacturer can de­
vise some way in which a larger profit can be secured.
“We know the manufacturer fears a larger discount would
be divided up with the dealer's customer in his eagerness for
trade, but we fed the sentiment is so strong and the assurances
so positive from all the dealers who are members of this asso­
ciation that this element will not cut much figure. W’e also feel
that the manufacturer should take positive steps to prevent price
cutting, W’e know it can be done, as is witnessed by the stand
some of the manufacturers have taken in this particular matter.
“W’e realize that the manufacturers are anxious that the
dealer secure an adequate profit for handling their product, and.
as the principle of this association is to work in harmony with
the manufacturers, we feel by presenting this matter for your
consideration it will receive proper attention."
The questions outlined in this address were referred to a
committee of manufacturers consisting of F. A. Gcier, Murray
Shipley and A. E. Newton, who met your committee the morn­
ing of October 17th and discussed thequestionof larger discounts,
without making much progress. They were advised, however,
that the first two propositions submitted bv your committee, i. e..
exclusive territory and absolute protection, were presented to the
Manufacturers’ Association and unanimously adopted.