Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1913-07-25
MINIMUM WAGE AND THE
HIGH COST OF LIVING
Senior Member Of Firm of Bloomingdale Brothers Favors
Economist Readers With His Views on Conditions
Surrounding Some of Our Present Day Problems.

New York, Specialization of
the Dry Goods Economist. Dear Sir:
deavoring to find out how the minimum
wage can be worked out, may it no
be we'll to consider whether. in the first
place, a minimum wage liked by law
will be Of sufficient : benefit to the
working class affected thereby. and
and conditions in department stores at
the present time are such as>to war
rant n justify the passage of such
laws?
From interviews with representative
department store managers, printed in
the Dry Goods Economist. it has been
shown that The consensus of opinion
is that any increase in salaries will
ultimately be borne by the consumer.
AS department stores cater to the
personal wants of all classes, any in
crease in the prices Of the merchandise
they sell will naturally increase the
cost of living and but partially benefit
the comparatively few to work in de-
partment stores. To say age are
higher today than ever before. and the
working person is no better off, must
appear but tiresome repetition.
Today's Higher Expenses.
Let us see how much more. on an
average, must be paid today for per-
sonal requirements than formerly,
age we're generally lower. For
example, if a merchant formerly pur-
where from $1.25 to $1.50. Take an
average Inc say $1.39. He could prob
ably conduct his business on a total ex-
penditure of from 20 to Is per cent OF
his sales. Again. take an average and
allow him 22h per cent. for expenses;
This would show he spent 81 cents OF
his profit for running his business. and
cleared an average OF about 6 per cent.
Any department store at present which
does a large volume of business and
clears that much is doing a good and
profitable business.
How is the same transaction handled
by the merchant today. n how much
must h pay for the identi-
cal article?
That same article costs The merchant
today anywhere from $1.25 to $3.50.
Let us take an average OF $1.4O: that
day as 1t formerly did at retail. Bust
ness a no longer be conducted or
q 20 or 90 per e n basis. Most stores
will average from 25 to 30~per cent,
and as all expenses must be paid out
Of the gross profits, that same article
Is cheap today at So.
Cause Of the Increase.
You will ask the causes of this in
creased cost of doing business. To
DeglN WIN, We get elaOoTale ueuies
of the increased assessed valuation of
real estate. This, together with the
increased cost Of building and equip
ment. means higher rent. The cost of
Goa has one up. This means higher
cost of light, heat and power. Adver-
creased. Never In my experience do
ing rates for any extended period.
The cost of delivery is considerably
higher. Ask anyone what a horse could
be kept for in former years and what
it costs today. besides which the cost
OF maintaining delivery stations IN
suburbs, such as all large department
stores are required to keep at present,
must be taken into consideration. Most
merchants today have, at least, a few
and some a all auto trucks in their
delivery service. Although n may
give better and quicker service, which
is wanted by the exacting public to-
day. they nevertheless further increase
the cost of delivery. All incidental ex-
penses, such as packing materials, sta
tionery supplies. ETC.. have also gone
expense Of any Observation-Disclosures.
This can be passed over without COM
ment. 1t increased and increased
materially.
The high cost Of living is comment
ed on by everyone, and n wonders
WIldk4 lCQ- uD W IL dxlo Willy a 1CoA 00I
ment should not take place once in a
while.
I offer no remdy here, but apropos
Of the minimum wage conceded by all
merchants to W. a tendency of fur
ther increasing the cost of living. 1
think it advisable and beneficial to
discourage, rather than encourage
anything that would have a tenden-
CIV to increase the cost of living.
Tho Public,s Responsibility.
A word may he said as to how the
demands of the shopping public in
crease the cost of doing business. I'm
less a store is kept up-to-date in fix
lures equipment and service. and keeps
a full ard complete up-to-daty stock,
it cannot long compete. The public
wishes to see a fuller assortment of
merchandise thar formerly. 1t asks
that more goods be sent through the
stores delivery service and to still
farther points. Better and. more in
telligcl.t service is demanded.
Requests arc made daily to ~cheerfully
made exchanges and SEND goods on APP
prevail. Elaborate and comfortable rest
rooms and other expensive accom-
Nmcdations are at the disposal of Gus
toners.
These conditions have come to stay
progressive department stores OF today.
They. however. all cost money. In
yestigation may disclose the fac that
while these things appear insignificant,
though necessary. they nevertheless
have some bearing on the cost of liv-
ing.
rh> n>.~-~.A o.. E-.e.