Waterbury Democrat., 1901-04-18
THE DRY GOODS TRUST.

The proposal in New York to organ lze a company with a capital of $20,- COG, 900 to open and conduct chain of department stores'' in different cities Is so natural, not to say inevitable, that the only surprise must be that 1t has not been earlier attempted. In England nearly every great busi- ness went from ten to hirty years ago into the Joint stock stage Tn the past decade three companies have been con solidated exactly as in this country, though on a Smaller scale. Yet there are number of corporations in Eng land which manage group of hotels OF a linked series of s.stores, z while, practically all the newsstands of the Kingdom and all the railroad restaur- ants are in the hands one of great firm and the other of single great company which employs barnaids by the thousands.
 The same development was certain in this country and it was sure not to be long delayed in the field of depart ment stores. Such stores under the same management in Chicago and in New York, New York and PhiIadel- phia and Milwaukee and Philadelphia already exist. The step to a single corporation covering the leading cities with related stores is in the natural order Of the evolution of the business. The growth of the individual depart ment store has doubtless brought this earlier than 1t would otherwise have come The mills and the department stores are all the time coming closer to- gether. The middleman and jobber tend to disappear. This is true not only of dry goods but of boots and shoes, furniture, books, ready-made clothing and the entire range of ar ticles sold in these vast shops. The manufacturer has been turning to di- rect sales, as well as the store to direct purchases. The capital of the jobber and the. credits which he gave and the interest on which formed no small part of his profits have been reduced Banks, which once bought this paper on large scale, feel this change and no small share in the increase in the credits available for speculation of the demand for bank accommodations in various commercial lines due to the consolidation Of transactions, the re- taller and the manufacturer coming closer together.
 This tendency has been stimulated because the lavish but wise advertising of the department sore has trained the vast purchasing public to quick and rapid purchases. When any one of many reasons which bring goods on the market have brought a particular line to the consumer the steady and skilful advertising of the department store attracts purchasers with a rapid ity which is . great economIzsr of credits, because it saves the time for which goods must be carried.
 These various causes hay. r.,,Aas-d large amount of capital once emnlov- ed in jobbing in New York and else where, which is seeking other invest ments. The most natural is the new trust proposed for the creation of de partment stores. In such an enter prise much money may be made-and lost; but if the new trust, is to avoid the last fate and win the first good fortune it will only be because 1t is wise enough to build up it's local con- stituency of buyers by lavish adYer- Using.
 One reason why the big jobber is be ing squeezed out and forced to use his capital to seek the consumer directly is because, hitherto, he has not made himself known directly to the consum- CT. In a democratic country of, vast masses of consumers no business is go- ing to last which does not keep itself before the public eye. No business is big enough to advertise itself. Pub liclty is essential if any business is to grow and the shift Of capital from the jobbing trade to department stores ap- parent in the. new proposed trust Is really I shift from a trade which did not advertise to one which must advertise toliye.--P Philadelphia Press.