The age-herald., 1899-12-17
John Wanamaker's sIdea Concern-
 ing the Department Store.
GREAT MERCHANTS VIEWS
Former Postmaster General Testihes Before Industrial CommissionADe scribes Concerns as "Commer-
 cial Universities"
From the Washington Times.

eral gave to the United States Industrial Commission yesterday his views of the in- fiuences of great department stores. MT. Wanamaker is favorably disposed toward them, and during his testimony he desig- mated the two great establishments presid- ed over by himself as commercial universi- ties" MT. Wanamaker began testifying at Il o'clock, and did not conclude until o'clock.
 MT. Wanamaker said his Philadelphia store covered fourteen acres, the ware houses six acres, and that he employed 5,66O persons. The value of present stock he es- timated at S6,000000, the real estate at SlO,- GOO GOO, and the stock in transit or in facto- ries at $1 100000 The store in New York employs 3,S92 persons. Among other things the former postmaster general said:
 "Tt is assumed that the right to existence of the modern retail store, or aggregation of businesses commonly known as the de- partment store, depends entirely upon it's service to society. Also that the right of the individual, as owner or capitalist, to profit by such business is subordinate to the interests of the community These tests are implied in the topical plan of enquiry is- sued by the industrial commission.
 'rhe general reply to the foregoing as- sumption is to the effect that the modern retail store is primarily a benefit to so- cety, and it's success is not secured at an improper expense to the community The ordinary motive of moneymaking, of course, inspires the owners of such enter prises, but that purpose is not inconsistent with the advantages thereby secured to the public. Answers to several questions of detail will give evidence in support of this sta tement.
 First What are the creative forces of tine modern retail store?
 Ut is not the invention of any person or nf ( tC ,pal ltTnf evolved from conditions that exist as re- suit of fixed trade laws. Cheaper capital, better transportation more rapid communi- cation make the modern retail store possl- ble and natural; therefore, inevitable. Executive capacity combined with the command of capital find opportunity in these conditions, which are harmonious with the Irresistible determination of the producer to meet the consumer directly, and of merchandise to find distribution along the lines of least resistance. Econ- omy in the expenditure of money, time. and effort masures department stores success Just in proportion as these ends are reached is it popular, powerful and pros- porous.
 Low Prices to Consumers
 Prices are reduced to the consumer very largely. All of the reductions in prices ere ated by the producers or manufacturer savings, plus the reduction in retail profits consequent upon the concentration of large distribution at a single point, should go to the consumer. That this is the practical result is shown in the low retail prices that generally prevail.
 Upon American dry goods generally the retailers percentage of profits has been re- duced one-half during the last twenty years. This is true upon woolen silk and cotton fabrics.
 "Kitchen utensils of stamped metal enameled finish, commonly known as agate ware, are now retailed at less than one half the price of 1880. Prices of some woodenware articles for domestic use have fallen 80 per cent. in fifteen years. Many housekeeping articles manufactured of metal, wood and wire have been reduced 90 per cent in twenty years. The causes of these reductions in consuming costs are 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 din- ner-ware and rich cut glassware are now retailed at 25 per cent. less than the prices of ten years since This reduction is to be credited entirely to the influence of the modern retail store.
 .'Reduced prices stimulate consumption and increase employment. More labor is required for production, transportation and distribution. The last element is highly important. especially in the selling, hand ling and delivery of merchandise from re- tail stores.
 Great retailing in this country Is the pro- duct of competition in buying and selling. There does not exist in retail business any known combination for the control of any merchandise nor for the fixing of the prices in the interests of either the merchant or manufacturer. The entire practical infu- ence of the modern department store is powerfully against monopoly in any branch of manufacturing or selling.
 "It is possible for retail merchants in sev- eral localities to combine for the sake of economy. but such cooperation differs widely from the organizations commonly known as trusts. Neither would it effect retail prices save to reduce them.
 "It is fact admitted by all competent to judge that more than the total number of persons thrown out of employment in the wholesale and retail stores by modern com petition find employment in the large retail stores at increased remuneration.
 Wages in Big Retail Stores
 Comparative testimony upon this point is found in the fact of what one retail store has now upon its pay roll. Within its or ganization are numerous places that for lib- erality of compensation would be more att tractive than 90 per cent. of the presidencies of the banks trusts, or insurance compan- ies of the United States. It has places that pay salaries between 5000 and $2OOO0 year, and other positions that command be- tween S2,000 and 5000 year. This line of analysis could be carried to the lower classes of employment and the resulting facts would be in harmony with the propo- sition that the employees of the store in question are better off than they could be possibly if engaged in small retail store keeping. The field of employment is en- larged by the great store and the capital, enterprise, and executive ability concen- trated in the management of great busi- ness are in true sense at the service of the employe, giving him wider scope and greater opportunity.
 Ut opens new avenues of employment for women and enlarges others, and is, there- fore, advantageous women. Accurate re- ply to the question is impossible. But 1t is sound opinion that the increased employ ment created by the department store goes to women without curtaNing that of men.
 In reply to a question put by MT. Far uuhar, Mir. Wanamaker said that "cheap- ness Is perhaps the first incentive for a person to go to a department store. In my business never use the word department. My store is divided into two sections, each