Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-16

| lishments are carried on and the conserva-
tive methods which prevail in them. 1t is
not an isolated or exceptional instance. but
a sample of nearly all the great mercantile
houses Of London. This particular store Is
| owned by corporation and the stock Is
widely scattered. The directors, who rep
resent the shareholders, are bankers, cap
italists, solicitors and business agents who
are In the habit of looking after invest
ments, but have never had any experience
in the dry goods business. Nevertheless
they hold board meetings every week to re-
ceive the reports of the manager and his
assistants, who are practical dry goods
men. Then, having heard the reports, they
act according to their own judgment. As a
rule, however, although they accept his
recommendations, they do not permit the
manager to act on the initiative or do any
thing whatever out Of the ordinary routine
without consulting them. One day not long
ago the manager of this particular store
asked for a second telephone as absolutely
| necessary to carry on the, business. and
submitted an estimate showing that 1t
would cost $50 a year. After discussing the
subject entire afternoon the board of
bankers, lawyers and capitalists decided by
a majority vote that the second telephone
was not necessary.
This same conservative spirit was recent
ly illustrated in an establishment where it
wash the windows with stepladders.
sponges, hand cloths and buckets of water.
A brilliant intellect showed them how one
man could do the work with rubber
tenn could not be changed without permits
sion of the board of directors
Same Old Methods.
There is comparatively little change in
the methods Of doing business nowadays
from those of half q century ago Most of
the large shops have elevators now, and
still advertise them as novelty. But in
stores in town the other day we were told
that the elevator did not start until IL
o'clock.
The retail merchants do very little news
paper advertising in London. Only one or
two Of the big establishments ever adver.
tise at ALL One Of the largest stores in
London. was told the other day, has not
had an advertisement in any newspaper
since last spring. In the summer months
they do not try to sell goods. and even in
the winter the merchants do not use the
newspapers, and they give the extraordi-
nary excuse that it would increase their
business so largely that they couldn't ham
die it. Advertising solicitors tell the most
remarkable tales Of the explanations they
receive from people of whom they solicit
business and concerning the arguments
that are advanced against advertising.
A solicitor who undertakes to canvass
street in the retail quarter will be told by
almost every MERCHANT he approaches that
the latter does not care to advertise be-
cause he does not wish to increase his bust
ness: that he now has a very good line of
customers; that it requires all Of his capt.
TAI anu time anu uetp u uduulG tIclT ITdQt
If he worked up new trade he would have
to get new place, Increase his capital and
hire more men, and it would not pay to
do 1t.
The system of collections is also extraor-
binary. Nearly all the established mer-
chants have hereditary patrons-families
that have dealt with them generation after
generation, and always buy everything on
credit Bills are rendered only once year.
II they were sent oftener without explana-
ton 1t would be considered an insult. Some
times they are not paid then. 1t is a com
mon thing for merchants to trust men OF
property an entire lifetime and then settle
with the executor Of the estate They know
the account is good and that they Will get
their money eventually and they make
on credit in England must expect to pay
very much higher prices than those who
pay in cash. Whenever you buy bill of
goods that amounts to anything and offer
money In payment the clerk will haad you
a receipt showing a discount "for cash. Of
s. or even 10 per cent.
Site for a Big Store Obtained.
These conditions make London a pecul-
lar city to trade in and invite a modern and
progressive establishment Hence Mr.. Self
ridge decided last June that he would come
here He organized a company with paid
in capital of 100000. He secured a site
at the west end Of Oxford street, in the
heart of the most fashionable shopping sec
ton of the city, with an area of $1,000 feet.
portion of the land was purchased out
right. The remainder was leased, some of
it for 100 years: and in other cases exist
ing leases were purchased. Mr.. Selfridge
says that the prices of real estate are very
low in London compared with those in Chi
cago and New York. But that is largely
due to the fact that city real estate 10
seldom sold. 1t Is usually leased on long
time.
Having secured the site Mr.. Selfridge
sent to Chicago for Ernest R. Graham Of
Burnham & Co., the architects. to come
over and make the plans. Before un-
dertaking that work, Mr.. Graham visited
the principal commercial cities of Europe
to pick up new ideas. He didn't get many.
The plans are now practically completed.
and Mr.. Seifridge and his partners are
studying them. In the meantime con-
tract has been entered into with the war
ing White Building Company to erect
seven-story structure of stone and steer,
which is unusually high for london, where
most of the buildings in the shopp ppm o,s-
trict are only four or FIVE stories. Inc wolh
Of tearing down the ancient structures thar
now occupy the site is going on and MI.