The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-08-12
PROBLEMS OF MERCANTILE CORPORATION.

The tendency to cooperation in this
country is becoming more marked every
day. Not so long ago a syndicate of
country merchants was organized in
Michigan to pool their purchases, and
in this manner eliminate all middle men,
while enjoying the advantage of en-
tering the wholesale market as a capt.
talistc bidder. A single experienced
purchasing agent, operating under a di-
rectory, has accomplished the most sat
isfactory results. But in this case the
retailers are scattered.
In Chicago another interesting CO.
operative experiment Is about to be
tried Ever since the Fair" which de-
yeloped after the fashion of the Bon
Marche of Paris, proved to be success.
the department store has increased In
numbers and dimensions, until it has
come to be considered as an institution
of monopoly destructive of the indl-
vidual merchant throughout the city.
Hostility toward the department store
has become so pronounced that lately
it found expression in local politics. and
during the last session of the Illinois
legislature an attempt was made to leg
islate all multiple department stores of
the state out of existence. The bill
passed the senate but persisted in the
house.
Now the single department stores are
starting on new track. combination
effected by thirty retail merchants, or
ganized with 100000 capital. will build
a cooperative store on massive scale,
as a means of preserving each individual
enterprise.
If the plan succeeds it will be a sur
prising experience in American mer-
cnaudsng. 1t is in reality the oriental
idea of the bazaar, under incorporation.
When the magnificent granite Emporium
of San Francisco was built. is was for
the purpose of carrying out identically
the same design. Minimum rental was
charged for the experiment, yet it was
a lamentable failure. and not until the
/ individual department were concentrated
in one ownership. and therefore SINGLE
ness of management and responsibility.
was the investment profitable.
Where there are thirty retailers UNI
managements; and thirty investors ig-
uring out different and inharmonious
systems of prices. each looking to the
highest profit possible. The principle
! upon which the modern department store
| is conducted. cannot be adopted. because
| in the latter case bargains in some de-
! partments are offered at original cost
| virtually in order to invite the scrutiny
! of purchasers in other departments
where they may buy at maximum prices.
! The losses of one department are COW
cred by the gross profits Of another.
| and thus the net income of the own
ership becomes a problem that only one
capable management of all the depart
| ments can solve.
! Chicago has at least eight cooperative
stores, such as McClurgs, McVeagh' S
| and Farwells, operated on another
| plan-that of making all the employees
| down to the porters. shareholders in the
| concern.
The thirty retailers in this new depart
ment store would have displayed greater
| business sagacity had they pooled their
| investment, secured singleEess of man
agement under a directory, and issued
| minority of their stock to the employees
under conditions that would have per-
| petually continued the shares as part OF
the assets. This is the best system OF
mercantile cooperation yet devised, an6
one that could be successfully applied
to industrial enterprise.