The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-12-29

A Greater Merger.
In addition to the merger OF those two
retail drug store corporations the year
1911 will become traditional, so far as
combinations are concerned, because OF
the creation of one of the great corpora
lions having a capital of sixty-five mil
lion dollars whose business it will be to
own and operate five and ten cent re-
tails stores which are identified by the
name of F. H. WoolWorth- This plan Is
world encircling. To some extent it m
wolves competition with various small
dealers, as for instance hardware deal
ers, and it has already been asserted by
Independent retail dealers in Pittsburg
that this corporation has maintained
competition with them which has brought
them to disaster.
Mr. WooIworth recently said in speak
ing Of the financing of this great PROPOSE
ton, which IS now under way, that the
corporation would under no temptation or
circumstances buy out and merge any
rival corporations. That determination
had been reached because the Woolworth
corporation was anxious to escape the
slightest suspicion that it has been organ
lied and is to be operated in violation of
the. Sherman antitrust law It Is, on
the other hand, with new capital, sixty
five millions in all, to expand the bust
ness which it at present controls, and so
to expand it that, like Puck, it Will girdle
the world.
The Secret of Success.
But if this great corporation and COM
bination is to succeed SO that it may
earn a fair percentage upon the invest
expenses which will be enormous, its
business must be carried on along COM
petitive lines. This competition, of course,
will be directed at the small individual!
storekeeper. In various ways, some OF
them indirect. some direct but above
board. these shops will tempt to their
counters buyers many OF Whom would would;
but for these shops, patronize the small
dealers. Herein, therefore, is the funda-
mental principle of competition to be
illustrated.
Recently President Taft, in informal
discussion with a friend whose home is in
New York city. was told that if the gov
eminent should now permit the organ
ization of this great corporation, one OIL
whose purposes undoubtedly is to over
come the competition of small individual
dealers, then action should be taken be-
fore the corporation is organized, for it
would be unfair to permit an organization
with sixty-five millions of capital, or even
fifteen millions, like the drug corporation,
to be perfected and the business be begun
and afterward well established, and
then there come intination by the govern
ment alleging that the corporation was
organized and operated in violation Of
the Sherman antitrust law.
One of the largest of the combinations
recently perfected carries on exclusively a
cheap eating house business. It's stores
are numbered by hundreds in New York
and are gradually being extended
throughout the United States The
stores have maintained successful cam
petition against others who in the past.
made at least a sufficient living income
as restaurant keepers The organization
is of such magnitude and has compelled
such a high degree of organizing and df-
recting capacity that it is beneVed TO
have appealed strongly to John D.
Rockefeller and to other men conspicuous
for great wealth. These have made IN
vestment in what is really chain OF
cheap eating houses, and with most sat
isfactory experience. Yet these restau-
other restaurants which in the past did
living business. HOLLAND-