”Handicaps Skate and Screw Maker

Ralph Ware, secretary and treasurer of the Chicago Roller Skate Co., manufacturers of roller skates, and a member of the firm of Ware Brothers, makers of screw machine products, both in Chicago, testified that the “Pittsburgh Plus” practice adds to the manufacturer’s selling price of street roller skates between 2 and 3 cents per pair, and because of this, which is approximately 3 per cent of the selling price, his concern cannot do business to any extent east of the Illinois-Indiana state line.

His business, he said, is confined mainly to Illinois, Wisconsin and western Michigan, although they have a little trade in Indiana. The concern, however, does a considerable export business, he testified, due to the high quality of its product, which enabled it to compete successfully in foreign markets with eastern manufacturers whose manufacturing costs were lower.

In this case, Mr. Ware testified, the handicap of ”Pittsburgh Plus” is usually greater than $7.60 per ton, inasmuch as he buys steel largely in less than carload lots, on which the freight rate is $10.80 per ton, and this is charged by Chicago mills in such purchases.

He also suffers, he testified, from wastage, as his firm makes screw machine products. In this branch of his business, he said he is seriously handicapped in Michigan and Indiana, which are the best normal markets, although he does some business in western Michigan and a small volume in Indiana. His roller skate business, he said, had 75 per cent of its market west of Chicago and in Chicago, while only 15 per cent of it is east of this city, and 10 per cent is foreign.”

Reference Data:

The Hardware Review, Vol. 29, 1922, page 24