Document zdo5J3dXX3pxY2RyqD6b60DOm

any years cf.effort on the rert of the HaticCs! Lesc Coavny in the production end 8 La of White Lesd--In--Ofl have resulted in our "Dutch Bey White Lead" becoming a standard product In the painting trade. Extensive national advertising has aede it well known to practically every peinter in the United States. Without restrictions of any sort it has been aarketed through all Jobbers end dealers who desire to sell it. The `trade in every locality is funiliar with the dealers' resale price, as is natesral with any article so universally acceptable and so generally used* *Dutoh Bey White Lead* has all the neeensary qualifier.tlons of what is called a *aalea leader", nd has been used n% such in sons sections of the country b s far back as aost of us can remember. The price has been cut by one dealer then another to the ooint that lead is soee times sold r-vec below the ainiSKK cost to any dealer* During the peat few years this practice has spread to so many metropolltan centers that it can be s*id to exist in almost all communities There any considerable volume- of busineaa is cone. It has become so prevalent that it is well known to all sellers of White Lead* Qbdcr such conditions every dealer is forced to meet the cut price or allow his competitor to take away mot only his business an lead but also on other materials that usually accompany its sale* It makes no difference how anxious he may bs to market his goods on & basis th t will provide a recsonable return for his effort end his investment. Bow to correct this situation has bean a problem that has given our company serious concern for years* Kony suggestions have been made by our customers and all thrt held any hope of success have been tried* Bone of these Ha. : -pXean to sell through sgeaciea, ' - which was introduced in a Limited territory at tbs beginning of this year. Under this plan cur land is plseed in tbs hands of our agents on a consignment basis, remaining our property mtil it is sold* This permits us to control the irices at which duelers* sales are mads* The terms of our agency agreement require that our price; sohedule be observed* Dealers operat ing under it;have been practically unanimous in anthnsiastically approving the change ivcm|ths ccadlHens which formerly prevailed, Thsdr margin of profit : taring the past few months nasrly tse hundred letters have beta re- ceivad at of our eliminating gjgai^lfron tbw td.* The^ letter. tell their own stosy far better eo copies of a few of them are attached* N LI 117694 Omr emparlance with tbs agency plan In the lew York srwe since January __ . * . * < . ^ * .. .. _ . . . 1st, and in ------------1, Baltimore and Washington over e slightly shorter period, has 9ii%hpt it would bs desirable to extend:1, it, to. other territories. . With this in cn we notified our branch aanagsrs early in Se^teadmr to make ;ihtc1[iflfeet,'ah: October 1st; in the ssetions' About SeptiUbor 20th representatives of the ocsBBittM. which dree up the code fortbenanafseturars of paint, varnish ' a*3il lf-1* * ad lacquer advised ua thr t they would consider such an extension of this eethod of selling s l s sl violation of the elauee^ln their code which prohibits the establl absent of ooueignaeut aocounte hot In aadatance at the tine the code beconcs affective* Bntil this see called to our attention we had not given spy particular thought to their eode* We took no part in the discussions which were held while it was being nade up because our sales of ready-for-uae paint are ecnparetively snail and we shall be very glad to eonfecs to the practices referring to such products agresd upon by those whose interests are nuch greater than ours* As soon as the Sstional Industry Recovery Act was passed we started work ing on a code fox* the leed industry with the rtaere, snelters, refiners and nana* lecturers of all lead prodnets of any laportasee* Our nestings were held taadsr the supervision af| the Leed Industries- laseoi atlcn en organisation functioning for the easbcrs of the leed lxkhwbxy for several years in the sane wanner as the Jnerisaa Paint and Tsrnls^Assoolation does for its nanbers* Our eode covering wages axrt hours of labor was filed sons tine age and we have alaost oonpleted the aiminiiil masirt.tln rj eode covering fair praetiess In the various branches of our industry* Regulations for the eels of White Lesd-in-Oil have bean included with the other lead prodnets whore In our belief it properly belongs* Ve are eonvlnoed that the ecneignnent of White Lead-in-Oil differs fron tbs eonsdLgnnent of nixed paint both in purpose and in affect. Zt has bean intro duced to give the dealers an opportunity to sell at a reasonable eargin over cost* (fader our agency agreesgot they are not restricted to handling our lead but eay easry as aaay brands as they afaoose* lo ether nanufseturer's products are excluded* laterally we do not want to take any stop that will be injurious to any branch of the paint industry, for that reason we have postponed further extension of our plan until we have had tine to give eareful consideration to the objections expressed by the eode cosskLttee of the paint9 varnish and lacquer nanufacturers* Zt is our desire to get all the inforaation ve can to help us decide whether or not the benefits of the agency plan to the trade as a whole are greater than the diedvantagaathatmyeoeanipaaylt* Ve shcnM lifas to bans a flank expression of frost the dealers thsnsslwssy 'and- the purpose of this letter is to ask you -to get sueh an expression ftnen several representative jobbers and dsalers in your territory. All types of bnrari* large and snail, should be included, as ve are anxious to neks theeny as sonplete as possible* Anything they wish to tall us will be of interest but it is particularly important that *hay learnt Cl) ths offset of our agenoy eethod of sail lag White Load in its aviation to ths general problan of Merchandising, that la, is it a real influence In sbueee that tend to veakan and destroy sound praetiess In [the conduct ef baaincest (t) ths opinion of ths trade as to whether the , of -Vhl^: |!l^l9 '[through aceneiss not exoluslve9 has resulted In ert ia likely to brine abaul^[libcOaueo of the !;<nri si rnnsnt feature. a further snrtsnalop~ of '.'the usdeirixable-which the nixed paint eaaufaoturers tell us aceonpany the ; . "iiriil tiiininff :~'jflin^ ;Tajlir1;riifih plams: tTiqj i|rtqj .; NLI 117695