The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-12-18
rHE nEPARTMENT sToRE.

John wauamaker. the greater OF one ana
the owner of two Of the largest depart
ment stores in This country. gave testimony
before the Congressional Industrial Com
mission in Washington the other day on
the subject OF department stores. He said
the great emporium of the present day
mad It's oriein in the crossroads country
general store" where one might buy
plows, spool cot on, kerosene Oh, Calico
nails, pills saddles. and about anything
else that The average householder Of the
community might need. From this pattern
the modern department store had been
evolved; and Mr.. Wanamaker asserted
that it had a substantial economic and
moral basis for it's existence. 1T is he
continued, "a natural product resulting
from conditions tat exist as a result Of
fixed trade laws. Cheaper capital, better
transportation and mere rapid communi-
cation, make The modern retan store PCS
sible, natural and useful; therefore inevi-
table" This, it may be observed in pass
ing, is about in line with arguments that
have been advanced in justification Of
other aggregations Of CAPT al, and combi-
nations controlling large businesses.
Mr. Wanamakee commended that one ef-
feet of the operation of the department.
stores had been 10 reduce retail prices. The
retailers percentage of profit had been
considerably cut down during the past ten
or fifteen years; and this reduc ion, in
both prices and profits he said, had gone
to benefit the consumer. In turn the re-
duced prices had stimulated consumption
and increased employm n. More labor had
been REQUIRED for production, tTansporta-
ton and distribution. 1t was true that
number of small dealers had been forced
10 retire from business because they could
not meet the competition OF the depart
ment stores; still, in h opinion, the num-
Der of these was insignifeantly small
when compared with the vast army of
consumers who had been benefited through
the reduction in the prices Of the COM
modities they were obliged to purchase.
Meanwhile, many of the former proprie-
tors of small stores had become employees
of the large stores, where their condition
as employe was better than it had been
as proprietor. Many of the employees re-
ceive salaries ranging from 5000 TO 5000
a year. Wholesale stores and jobbers were
adversely affected because the large re-
tail stores dealt directly with manufacture
ers but the manufacturers and their en-
ployes were benefited. For every i'll effect
there was a preponderating good one
leaving The balance largely to the credit
of the department store.
There was nothing in the nature of a
trust in the retail business Mr. Wanna
maker said. Its ability to serve the pubic
acceptably was the sole basic condition
of the growth and prosperity of the de-
partment store. The variety of articles
dealt in was such that it was impossible
to form combinations and trusts in the re-
tail business. The department store bought
in the open market and sold in the open
market. It's advantage consisted in the
command of ample capital, and the econo-
my in the expenditure of money time and
effort. 1t was content with small percent
ages of profits, which became considera-
be sums in the aggregate.