Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-05-17
MIR. S. W. Woodward Before the In
dustrial Commission.
NOW A PERMANENT INSTITUTION
Methods of Doing Business Are
Fully Explained.
PRESENT CONDITIONS GOOD

States industrial commission this morning
Mr.. S. w. Woodward. Senior member OF the
firm of Woodward & LOthrop of this city.
was an interesting witness. MIR. woodward
was questioned regarding all the details OF
the conduct of the modern department store
and made the statement that the main
profit in such establishments is not in staple
and necessary articles of dry goods, nor in
the widely advertised classes of merchan-
disc. but i'll novelties exclusively secured
or in which there prevails particular fad
In answer to the usual preliminary ques-
lions. Mr.. Woodward stated he had been in
business for twenty years. and that the vol
ume of trade of his firm amounts to So.
0oo,G0o per annum. Speaking of the growth
of the department store idea of late years.
he said there had been no increase in single
line stores for the past twenty years Each
department of his business. he said. was
made Independent as far as practicabie MIR.
Woodward also stated that his firm made
no runs on one class of goods as a bait for
trade generally. special run Is made
sometimes but only when conditions make
it necessary: In his own business he in
Stanced foreign perfumery. which has been
sold at cost for years. 1t is an exception to
the rule that merchants make a profit out
of pure luXuries. The New York merchants.
he said however. have now determined that
a profit must be made from these goods.
Seil1n& nj lost or Below.
Mr.. Woodward was asked If he thought it
fair to the retail druggists that department
stores should sell proprietary articles at or
below cost, when this class of merchandise
formed the main stock in trade of the phar-
macy.
The number of articles any good mer-
chant can sell for cost or less answered
Mr.. Woodward. must necessarily be limit
ed. On 80 to % per cent of his goods he
must clear something hence the effect can
not be so large. There are a great many
people doing business today who do not
know what it costs them to do business;
that is, they do not grasp the details suffi-
GENTLY to enable them to tell just where
they stand
rs there any reason why one class of
goods should be sold at cost or below in
preference to another class?' the witness
was asked.
THE fact of some articles being so well
known through magazine advertising. etc.
makes 1t impossible for the merchant to
get any good profit from them. In a gen.
eral way it is true that the merchants
only opportunity for good profit is in a
new novelty or fad"
Then the merchants act as public bene-
factors in distributing staple and neces-
Sary articleS?' suggested Mr.. Clarke of the
commission.
From necessity, yes" the witness re-
piled
Speaking in a general way of the depart
Nent store business. Mr.. W OOQWard said
the idea originated with the Bon Marche of
Paris in 1869. and was taken up by a firm
in Boston in the early T0s. He thought it
was a mistake for any merchant. no mat
ter how small his establishment. to ask
more than the current price. These cur
rent prices are made of necessity nova
days by the department stores. If the pro-
pretors Of a department store choose to
sell a certain article without profit they
compel others to do the same.
They could not do this long II 1t were
not for the support from the other depart
mentS."
A Matter of Necessity.
Mr.. Woodward. do you see any eco
nomical advantage or sound business sense
in selling without a profit"
Sometimes as matter Of necessity
rs not this undervalue selling the great
est evil of the consolidation of merchan-
disc in department store?"
Il cannot consider 1t an evil, replied
Mr.. Woodward, when 30 out of every 100
of our population get the advantage of it,
Suppose, Mr.. Woodward, We might sup
ply the people at low price with slave or
convict made goods, would that be an
economical advantage?' suggested Mr.
Clarke
Il believe in the employment of convicts
on roads, but not in textile industries"
Mr. Woodward said it was unqualifedly
an advantage to the people to buy goods at
no profit to the dealer. Under-value selling.
or actual value selling, will not destroy any
business, for the good merchant knows
where to stop in a competitive effort with
his neighbors. He stops before he sacri-
fees profits on all classes of goods.
The department stores are not responsible
for the decrease of the single line estab-
lishments the witness declared. The change
from the single-liners to the department
emporium was due to the fall in prices and
the difficulty of getting any profit from a
single class of articles. This compelled the
men who were able to extend their lines.
Many men did not know how to conduct
their business on a falling market. They
were not quick sellers. Their money was
tied up in a stock rapidly depreciating in
value. Finally the bottom was reached and
IL was too late for them to then dispose OF
it. Nowadays stocks are converted into
cash UNNECESSARILY quicker than Few
years ago. This permits of the acceptance
of smaller profits, with yet sufficient
margin to do well.
Mr. Woodward said credit was still given
in department stores although Baltimore
is the only one of the larger cities holdlng
on to the old six months system. In other
cities the credit is extended for thirty days
This is practically a cash basis. for the
merchant does not have to pay for his goods
until the 10th Of the following month, ana
he makes provision that his accounts shall
be settled by that time. Speaking or MS
own business, he said one-third was done In
monthly accounts carried for the conVen-
fence of customers, but considered as cash.
while two-thirds was done in spot cash In
the account system there Is SnSht per
centage of loss.
Business Conditions Better.
The witness said he thought the employ
ment of labor and full volume Of currency
important factors In business success. Bus
mess, he declared. is unquestionably better
today in all lines than four or i've years
ago.
Are conditions in Washington the same
as in other citieS?"
Mr. Woodward said there was differ
ence of ~ per cent in the business OF
Washington merchants when the depart
ments are running ful-handed as at pres
ent and when several thousands clerks
were dropped from the rolls, as was the
case some years ago. He considered 1t
necessary that the government should be
doing a good business well outside
interests to have complete prosperity. Mr.
Woodward knew of no changes in existing
laws that could better business conditions.
and said he was perfectly satisfied with all
matters as they now stand.
I'VE can't have good times anywhere.
he said, unless the laboring man is en-
ployed at good pay.
The witness was asked If the department
store had an effect upon individual effort
in commercial enterprise He replied:
ANY man who understands his business
can remain in business as long as he de-
sires."
Denartment stores require trained help