The evening times., 1901-05-06
TAX ON DEPARTMENT STORES.
Effect of the New German Law Upon
Trade in General.

Trade in General
The state Department has received a
communication from Frank H. Mason,
the United States Consul General a Ber-
lin. giving the result Of the workings Of
the new German law taxing department.
stores Mr.. Mason says:
BY the terms of the statute. owners Of
department stores had six months in
which TO prepare for submission 70 its re-
quirements. This period they utilized by
making new contracts with manufactur-
ers Of various classes of merchandise in
which. it is credibly reported, they secur-
ed discounts and additional concessions,
which VIII Offset the added taxes which
they now have to pay on their aggregate
turnover 1t happened that the last six
months IF 1890 was an unusually propit;-
Gus time for such negotiations The long
period OF intense activity in most lines
had apparently passed it's zenith: the time
of reaction and declining demand had be
gun Manufacturers were flush with the
earnings Of previous years; their product
i've capacity was expanded to the fullest
limit, they were able and willing TO make
Iarge contracts ut prices which, although
they might Yield little or no profit would
enable them to keep their factories going
and their operatives employed until the
mOHlcntaTy cloud of depression should
blow over And so the department store
Managers merchants of high ability, hav-
ing at their command large resources
used the plea of special taxation with
potent effect and purchased their stocks
for the coming year under conditions
which have gone far to neUtraIize the ef-
feet Of the new impost, so far as the trade
Of I591 IS concerned.
fbfs &c al A.
has happened 1t viii be remembered
that under the law of June last, all or
dinary articles of trade are divided into
four groups, or categories, AID it pro
Vldes that every store, bazaar. OF ware
house which shall sell articles belonging
10 more than one Of the designated groups
and shall make sales aggregatiug more
than $4,000 in a year, shall be subject TO
the progressive tax, which increases rap
IDLY with the total amount of annual
sal
The law was framed and enacted as a
measure Of justice and protection to the
mlddle-cIass merchants, who, after Iong
years CT patient effort have recently
found themselves OvershadOwed and un-
dersold by the great baZaars. which buy
their supplies at every advantage and sell
everything needed in an ordinary house
seau. at prices with which the smaller
merchant cannot compete. But it is now
found that the new law strikes a great
many firms of the middle class. for whose
protection it was enacted. This is be-
cause many Of these firms who do d year
/ " business far exceeding the taxable
limit sell articles which under the law
are grouped in separate categories. As
an example which viii illustrate hundreds
OF similar cases, there is leading manu-
facturer Of lamps and lighting apparatus
who makes speciality Of high-ciass pc
troleum lamps for libraries and drawing
rooms In order to secure the success Of
its lamps. the firm rigged up a specially
constructed hrsprOof cellar as q depot for
the best grade of petroleum which was
sold under rigid police regulations and
distributed through the city BY uniformed
employees with handsomely painted wag-
ons and ali the paraphernalia of a seIecr
and exclusive trade But petroleum and
lamps are in separate groups under the
IA" OF June 1900; so that the house in
question mas been forced to close out and
discontinue its oil department OF TO sub
mt us WEole output of lamps, as well
as gas and electric lighting fixtures TO
the special tax. which would amount to
ABOUT per cent Of its yearly turnover
Another acute case is that of the HO-
henzollern kaufhaus. q bazaar at which
d0fneSuc art products furniture. and
many other articles are sold which be
longs to the class of establishments which
II was the intention Of the law to protect
against their larger and more powerful
competitors and the list Of such surprises
as to the actual effect Of the statute in
Berlin might be extended almost inCefi-
niJely
Meanwhile. a large and superbIy ap-
pointed new department store. CGuipped
aild managed in American style, was open
ed mere IN December last, and the oTigi-
nal and principal establishment of that
class in Berlin. against which the new
la" was especially aimed. has doubled its
capacity and put forth greatly increased
efforts and attractions during .he past
winter.
1t Is yet too soon 70 estimate accurately
and conclUSiVely the ultimate effects of
the statute. and it is but just to remember
that the present chorus OF deTisiv- com
1nent comes mainly from journals end 9th
er sources which have been from the out
set hostile to such legislation Tut from
Wiiat can De now seen, II IS impossible
not 70 admit that in so far as fhe Effects
OF the law have Vet been developed. il is
IulE-Ing the predictions OF It's enemies
Talner than the hopes IF its friends"