Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-22
TAX PROVES A FAILURE
Department Store Problem
in Germany.
ACTION OF REL dSTAG
PROTECTION ASKED AGAINST AC-
CALCULATIONS OF CAPITAL.
Canning Horse Meat for the French
Market-First Patent Issued by the
Chinese Government.
BY VIM. e. CURTIS.

department store problem is again veXing
the people of Germany, and that the reich
stag, after two days debate, has adopted
a resolution asking the government to sub
nit bill for the protection of the middle
classes against great accommodations of
capital in the retail trade, and also against
the cooperative stores conducted by officers
of the army and navy. 1t also urges law
to prohibit and punish retail sales upon
the installment plan, bogus "closing-out
sales" and bargain counters, and misrep-
reservations in advertising.
The German cities have been struggling
with the department store problem for
several years. The same tendency toward
commercial Capitalization has prevailed
there as in the United States, much to the
disadvantage of small shopkeepers. who
have not been able to meet the competition
offered by the large establishments with
enormous capital quick sales and small
profits. A great majority of the small re-
tail shops in Germany are kept by women
who sell a variety of articles and depend
entirely upon the neighborhood trade. EX-
tensive retail establishments are of recent
date and are limitations of those in Ameri-
can cities. One of the largest department
stores in Germany Is owned by an Amerl-
can firm. In Berlin, Frankfort, Dresden,
Hamburg and other cities the idea has
spread rapidly and the result has been
disastrous to petty tradesmen
Special Tax on Merchants.
A cry for protection and relief went up
about six years ago which caused the pas
sage of a law by the Prussian parliament
providing for a system of special taxation,
which was the only method that could be
devised to restrict the tendency toward the
Capitalization of trade All retail establish
ments handling a variety of goods were
REQUIRED to make returns of their gross
sales. and were divided into classes. accord
ing to the volume of business done.
graduated tax beginning with l per cent
upon gross sales. was imposed upon mer-
chants with small capital and it was IN
creased gradually until establishments do
ing a business of $4,000 year paid per
cent. those doing a business of $500,O00
year per cent, $50 900 a year 4 per cent,
81 100000 per cent, and so on. The law
has not been satisfactory. but has proved
ID be very unpopular with all concerned.
The large merchants, against whom it was
directed. have made the least complaint,
and none of the big department stores has
been deferred from extending its business.
The small merchants. for whose benefit 1t
intended seem to have suffered the
worst. but probably the greatest burden mas
rested upon the middle class of merchants.
who do business of from $4,000 to $4,000
a year.
The classification has been considered a
great injustice. For example, a merchant
who sells nothing but silk, ribbons and 9TH
er dress goods pays no taxes. but If he
adds millinery or furS or brings in dress
makers. his establishment becomes a de-
partment store in the eyes of the law and
he Is required to pay the tax. An old wom-
an who sells groceries in the basement on
one of the outside streets Is exempt until
she adds a few kitchen utensils, or sta
tionery, or confectionery, or cigars and to-
bacco to her stock. when she comes within
the law. A man who sells gentlemenS fur
|, DIr TO,
and caps tailoring department In
small towns. as can be readily understood
and in the outlying districts of large cities,
a petty shopkeeper is compelled to keep
a general variety of articles in order to
meet the demands of his customers and
make a living. But the moment he at
tempts to increase that variety he is COM
PEELED to pay a tax of / per cent, not upon
his income his profits. but upon his
gross sales. Therefore the law has become
very unpopular, and the petty merchants,
who originally demanded its passage are
begging for its repeal.
Lost Faith in the Party.
An eminent democratic wheelnorse, who
usually comes to Washington to get his
bearings and to exchange views with the
brethren at the beginning of each legisla-
tive session. sat on one of the settees at the
National Hotel the other night when a re-
porter approached him cheerfully and
asked:
''How's politics. judge? How are things
looking down your way"
Don't know responded the veteran, in
a detected tone. I've dropped out"
Dropped out?' repeated the reporter in
surprise. How did that happen?"
WAL. I've just done quit; that's all
said the judge. Il use'ter have faith in
divine Providence and the democratic party.
| was raised to believe that they We're
pretty much the same thing, or, leastwise
that they was so intermixed that what one
didn't do the other looked after. But I've
lost my grip. Seems to me the democratic
party is reduced to the niger as a political
issue, and that don't go in morn half a
dozen states. Since election I've lost faith
in everything, and henceforth l take no in
terest in either politics or religion