Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-12-09
Mr.. John Wanamaker Discusses the
Department Store
BEFORE INDUSTRIAL COMMISSION
Says There is No Basis for Criticism
of the Big Shops.
RETAIL PRICES LOW Erred

Mr.. John Wanamaker today testified be-
fore the Industrial commission on the sub
f-ct Of department stores. He claimed that
these stores were beneficial to society. hav-
ing substantial economic and moral basis
far their existence.
1t is ne continued, "a natural product
VOWED from conditions that exist as re-
~u.. Of fixed trade laws. Cheaper capital.
better transportation. more rapid commu-
nlcation make The modern retail store pos
Sibe. natural and useful; therefore in
eyitablc. Executive capacity combined
with the command of capital finds opportu-
nifty in these conditions which are in har-
ruouy with the irresistible determination
of the producer to meet the consumer di-
J., rtly. and of merchandise to find dlstr1bu-
ZION along the lines of least resistance
Economy in the expenditure of money. time
ana effort measure department store sue
cess Just in proportion these ends are
reached is it popular. powerful and pros
porous
RetniI Prices Lowered.
He contended that the effect of the ere
alton of these stores had been to reduce
retail prices. In support of this statement
he asserted that upon American dry goods
generally the retailers percentage of prof
It's has been reduced one-half during the
last twenty years. This was also true upon
WOODEN, silk and cotton fabrics. The total
percentage OF reduction IN prices TO Inc
consumer could net be stated owing TO the
varying standards of qualities and tastes
and improvements in manufactures. but
Mr.. Wanamaker believed that the con-
suTner saves the entire reduction in the re-
tailer's profit.
saving in Household Wares.
In some articles definite comparisons Of
prices were made. as follows: Kitchen
agate ware is now retailed at less than
"ne-half the prices of 1850 Prices of some
wooden ware articles for domestic use have
fallen 80 per cent in fifteen years. Many
housekeeping articles manufactured of
metal. wood and wire have been reduced
% per cent in twenty years The causes of
tht Sc reductions in consuming costs are,
he said. various, but prominent. Among
them are the power of the large retailer to
buy cheaper and sell for reduced rates of
profit
Standard patterns of French china dinner
ware and rich cut glass ware are now re-
tailed at - per cent less than the prices
OF ten years since. This reduction was.
he thought. to be credited entirely to the
influence of the modern retail store.
1t could also be stated that the profits
of the great retail stores vary from 3 to O
per cent the dollar of business done
Thus it was manifest that the modern re-
tail merchant is giving public service a a
rate of profit SO small as to be merely a
commission
Consumption Stimulated.
Mr.. Wananaker also argued that reduced
prices stimulate consumption and increase
employment. More labor was required for
production. transportation and distribution.
The public service was the sole basic con-
dition of the growth of the retail business.
The variety of articles dealt in was such
that it was impossible to form combina-
tons and trusts in the retail business. 1t
was much the same the journalistic and
other learned professions
The only advantage of the large store
over the small to be found in the SUI
periority Of its service. 1t was also true
that generally the employee in large store
was better on than the proprietor of a
small store Some of them were paid s. 100
year. and many 5000.
Effect on small shops.
Speaking of the effect of combination
store on small shopkeepers. he said it could
not be denied that one of the effects of the
big stores had been to retire from business
small retailers. but he contended that while
this was true. the interests of these few
people were not to be compared with the
interests of the mass of the people More
over. it must be borne in mind that even
before the department stores came into ex-
istence 4 per cent of those who went into
business failed
The wholesale stores and jobbers were
also greatly affected by the fact that the
large stores deal directly with the manu-
facturer. but this on the other hand. was
great benefit to the manufacturer. He
classified the present large city store as
merely an enlargement of the general cross
reads country store, and the greatest ad-
vantage found in them was that they elm
ipated adventures and spectators from
the business
DO not the larger retailers often make a
point of buying up bankrupt stocks?" he
was asked.
No Basis for Criticism
III they do they are children merchants
or idiots" the witness replied. He went
on to say that he had been of this class
until within ten or twelve years ago, but
he lad changed his methods In recent
years. He had discovered that the people
did not want debris. such as bankrupt
stocks are- Tine great demand was for
new things. and often goods were consider
ed OLD which had not been on the shelves
f"r more than thirty days. He also argued
that the properly conducted store was a
university, educating the employe, not only
in writing. spelling, &c. but in morals
Men were often discharged for lying to
customers.
Summing up. Mr. wanamaker concluded
that there was no basis for the hue and
cry against the big stores, and that the
only basis for such criticism was found in
the misfortunes of the complainer5.
Abandoned Mannfncturing
Mr. Wauamaker said that when he had
hrst gone into business he had thought well
10 do MS own manufacturing. but he had
abandoned the idea, finding it preferable to
In this connection the witness took oc-
caston to say that the worst blow that the
carpet business OF Philadelphia had ever
received was when the high tariff was put
upon carpets. shutting out foreign goods
The result was over home production
Much Of manufactured goods was sold in
The large stores. but the loss did not fall
upon the stores. He did not believe in SELL
ing goods at less than cost as a mere bait
and expressed the opinion that the store
"hich followed this practice expected TO
make up the loss on some other article
Mhere the advance would not be suspected
referring to the advance made BY the
american manufacturers in making wool
ems. MI Wanamaker said: We don't need
the French longer in this work France
can 90 to war with England If she so de-
slres-we would not miss her."
How about England2''
would rather go 10 the Paris exposi-
uoA IMAM TO go TO with England
am 100 FOND OF Joe Chamberlain. who Is
doing So much talking these DAYS"
III the large stores the purchaser OF Isre,
qHautlueS had no advantage over the buyer