The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-10-21
Says IL Is n Consolidation Of Completes
Stores for Purposes OF Econ
omy and Convenience.
OF BENEFIT TO THE PUBLIC
INTERESTING ACCOUNT OF MODERN
BUSINESS METHODS.
MfddIemen Done Away with and Mer-
chants Deal with Manufacturers,
Thus Lowering Retail Prices

The first general store started about 1850
I'm New York city. The country store was
the necessity of locality where people
found the source of supply for their needs
through the agency OF a mar who went
TO the city. gathered things together,
brought them home and put them within
easy access. The country store. as have
said. was necessity. The first city stores
on the order OF country stores were like
them in that they did not attempt TO pro-
vide complete assortments OF all kinds or
goods, but Simply a fair representation
OF different classes OF goods 10 satisfy
the ordinary range OF customers. The
modern store / do not call department.
store. 1 call II a united store or a con-
solidated store. IL is an aggregation OF
complete stores for the purpose of economy
and convenience.
In my store in Philadelphia 1 employ
$500 men and women. In my New York
store nearly 1900 The value OF my stock
ia Philadelphia is ss.oOoOco. and in New
York nearly s4.O00OOO. The value OF the
ground upon which my Philadelphia store
stands is not less than 100000. The
value Of the goods in stock and the build
ing does not represent the whole invested
capital Of a great consolidated store. There
are the goods I'm transit and sometimes the
goods going through the mill for which a
great store is responsible viii aggregate
sl,0Oo.000.
AS MANY STORES AS EVER.
With all this great aggregation OF busi-
ness in one concern IT is not true that the
number OF stores has been lessened. There
are to-day six other large stores In Phila-
delphia which were not there when this
large store came, and there are just
many small retail stores as there ever were
1t is impossible TO create any kind of a
patent on a retail business The patent Ia
executive ability. capital and hard work
OF course there have been failures. esti-
mate that 80 per cent. of those who are In
business for themselves fail OF success. A.
T. Stewart estimated that only per cent.
were successful The great mass OF peo-
pie who must naturally charge misfortune
on some one attribute 1t 10 what they call
the department store. They conveniently
forget that the old style of bookkeeping
In cities always included many claszes>cf :
goods, but I'm a small way. In such good
stores as Bailey, Banks & Biddle you will
find ten branches of trade under one roof
Tiffany, of New York carries watches.
jewelry, optical goods, silver and leather
goods. pocketbooks, toilet goods, statuarys
glass and bric-a-brac.
IL has been proposed 10 tax the general
stores or the store which deals I'm more
thar one exclusive class OF goods. In other
words, IL is intended 10 make IL unprcft-
able for man TO handle more than one
class of goods, though that class may be
active only three four months in the
year. To accomplish this IL will be neces-
sary to keep up an organization of clerks
and maintenance OF property, heat, light
fuel and so on for nine Improbable months
The cost OF these must be distributed over
the other three months and the purchasing
public must foot the bill for the whole year.
OF GENERAL BENEFIT.
1 hold that the modern retail store Is
primarily benefit to society. The modern
retail store is not the invention Of any per-
son or group of persons. 1t is natural
product, evolved from conditions that exist
as a result OF fixed trade laws. Cheaper
capital, better transportation. more rapid
communication makes the modern retail
store possible and natural, therefore ineyi-
table. Executive capacity. combined With
the command CT 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
management measure departmcnt-st0fe
success. Just in proportion as these ends
are reached, it is popular, powerful ana
prosperous.
What is the effect OF modern methods IN
retailing upon prices? The producers prices
should be reduced IN proportion to tho de-
creased expense Of handling the business.
Concentration OF distribution Increases
greatly the volume OF single transactions
The producer sells and the distributor buys
81 very largo lots, thus risks OF losses ara
| decreased, cost OF selling IL reduced oc
saved entirely. and administration simpli-
fed and economical. Therefore prices
should be reduced without sacrifice. as the
reduction represents saying.
Prices are reduced to the consumer very
| largely. All OF the reductions in prices
created By the producer or manufacturer
savings. plus the reduction in retail profits
consequent upon the concentration of large
distribution at a single point, should so 10
the consumer That this is the practical
result is shown IN the low retail prices that
generally prevail
PRACTICAL ILLUSTRATIONS.
The foregoing statements are 10 soma
degree confirmed by the following facts.
Upon American dry goods generally the
retailers percentage OF profit has been
duced one-half during the last twenty
years This is true upon wooIen. silk and
cotton fabrics. The total per cent. OF re-
auction in prices TO the consumer cannot
be stated owing 10 the varying standards
OF qualities and taste and improvements
IN manufacture. But the consumer saves
the entire reduction. whatever IL a.. in the
retailers profit. In some articles definite
comparisons OF prices can be made. 40
| follows:
Kitchen utensils of stamped petal. enaTa-
eled finish. commonly known as agate
ware, are now retailed at less than one
half the prices OF 1Sso. Prices Of some
wooden-ware articles for domestic use have
fallen 50 per cent In fifteen years. MANY
4 oslsekeeDlng articles manufactured az