The times., 1899-12-10
BLESSING TO HUMANITY
John WanamakeF'S Idea Concern
ing the Department Store.
The Former Postmaster General Tes-
tifes Before the Industrial Com
Observation-Disclosures the Concerns as
commercial Jniversities''-Trea
mcnt and Salaries of Employees.

JOhn NanamakoT, former postmaster
General gave to the United States Indus
trial Commission yesterday his views of the
influences of great department stores. Mr..
Wanamaker is favorably disposed toward
them. and during his testimony he desig-
mated the two great establishment presided
over by himself as Commercial universi-
ties" Mr.. Wanamaker began testffying at
II o'clock, and did not conclude until 2
o'clock
Mr.. Wanamaker said his Philadelphia
store covered fourteen acres, the ware
houses six acres, and that he employed $500
persons. The value Of present stock he
estimated at $4,000, 600 the real estate at
/ $4,000 coo, and the stock in transit or in
/ factories at $1,000, 600 The store in New
/ York employs 1892 persons. Among other
! things the former Postmaster General said;
1t is assumed that the right to exist
! ence Of the modern retail store, or aggre-
| cation of businesses commonly known as
/ the department store, depends entirely upon
( its service 10 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 en-
|
The general reply to the foregoing as
| sumption is to the effect that the modern
| retail store is primarily benefit TO society
! and its success is not secured at an i'm
! proper expense 10 the community. The
/ ordinary motive of money making, 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 de-
tail Will give evidence in support Of this
statement
First What are the creative forces Of
/ the modern retail store?
1t is not the invention Of any person or
/ group Of persons. It is a natural product
! evolved from conditions that exist as a
result of fixed trade laws. Cheaper capital,
better transportation. more rapid COM
munication make the modern retail store
possible and natural; therefore, inevitable.
/ Executive capacity combined with the COM
mand of capital find opportunity in these
conditions, which are harmonious with the
I irresistible determination OF the producer
/ to meet the consumer directly, and of mer-
! chandise to find distribution along the lines
| of least resistance. Economy in the ex-
| penditure OF money, time, and effort meas
| ures department stores success. Just in pro-
! portion as these ends are reached is it
| popular, powerful, and prosperous.
| Low Prices to Consumers.
prices are reduced to the consumer very
| largely All of the reductions in prices
created by the producers or manufactur-
er's savings, plus the reduction in retail
profits consequent upon the concentration
| of large distribution al 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
/ 80 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
1 retaiied at % 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 sell
ing, handling and delivery Of merchandise
from large retail stores.
Great retailing in this country is the
product Of competition in buying and sell
/ ing There does not exist in retail busl-
| ness any known combination for the con
troll Of any merchandise, nor for the fixing
/ Of the prices in the interests either of mer-
chants or manufacturers. The entire prac-
teal influence of the modern departmele
store is powerfully against monopoly in any
branch Of manufacturing or selling.
| 1t is possible for retail merchants in
several localities TO combine purchases for
the sake Of economy, but such cooperation
! differs widely from the organizations COM
monty known as trusts. Neither would il
affect retail prices, save to reduce them.
1t is a fact admitted by all competent
to judge that more than the total number
of persons thrown out of employment in
wholesale and retail stores by modern COM
petition find employment in the large retail
stores at increased remuneration.
Wages in Big Retail stores.
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
liberality Of compensation would be more
attractive than 80 per cent of the presiden-
cies Of the banks, trusts, or insurance com
panies of the United States. It has places
that pay salaries between S., 600 and 500 GOO
year and other positions that command
between 81, 900 and s., 600 a 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-
stion 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 a great busi-
ness are in a true sense at the service
Of the employe, giving him wider scope
and greater opportunity.
1t opens new avenues of employment
for women and enlarges others, and is,
therefore. advantageous TO women. Ac-
curate reply TO the question is impossible
But it is sound opinion that the increased
employment created by the department
store goes to women without curtailing
that of men.
In reply to a question put by Mr.. Farqu-
mar Mr.. Wanamaker said that 'cheapness
is perhaps the first incentive for a person
TO go to a department store. In my bust
ness ! never use the word department.
My store is divided into sections, each a
complete store"
stock Must Not Grow Old.
One OF the things that department stores