Page 60 - Past Presidents' Club Book 1

First .Annual Convention

M r* Drl rv : W e tried to get these people to define what
their re-sale prices were, and they came back and stated that they
would maintain that price,
1 might say once more in regard to set and cap screws, I feel
the change in price of this is due entirely to the agitation by this
Association—the letters sent out bv the various members and the
various solicitations made through their representatives. I came
to this conclusion for the reason that one of the gentlemen inter­
ested in set and cap screws called upon Mr. Strong and me. After
we explained what we expected to do, he said he came across
our letter fixing this meeting at Fort Monroe, and he expected to
fix it up, and we told him that we had put it into the hands of
the Grievance Committee. He said he was going to do it anyway,
and we told him he might, but we did not believe he was. At any
rate, I think it will come to some good. 1 can give you letters
referring to any one of the items on this list.

M r. McI ntosh : I simply think we are making a mistake
in these re-sale prices. The establishment of re-sale prices, and
promising the manufacturers you are going to hold them, and not
having re-sale prices on the premium plan is going to operate
against us. You will have members of this Association who will cut
them. What are you going to do with those outside? If some of
the members will cut, what about those on the outside ? I am not in
favor of entering into an arrangement with any manufacturer on
the re-sale price who will not retain that rebate until the end of
a certain period, and then only pay it to those dealers who have
not undersold the price. The manufacturers say “Well, we have
given you a price, hut you do not hold it.” Ninety-five per cent
of the members of this Association will hold it, and from one to
five will not hold it, to say nothing of those on the outside.
It seems we should take action, and if the manufacturer will
not establish his price in that way, then leave the market open and
let it get in worse shape. The establishment of this price is to
the interest oi the manufacturer. Every time we can go to him
and ask him to increase his profit; in every case we can show
that the manufacturer is the one who is benefited largely, hut if
we leave them open, as we do with sandpaper, it will revert
against you just as sure as the world.