Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-26
FRIDAY EVENING, JUNE 20, 1914
LESSONS FROM THE cLAFLIN FAILURE.

There are various points from which to view the
failure of the great mercantile house of H. B. Clafin
nCompany and from all may be drawn the conclu-
sion that big industres-and the reasoning applies
with particular stress to the dry-goods lne-under-
take task almost impossible of permanent success
ful achievement when they seek to control and direct
operations in numerous sections of the country. The
firm of H. B. Claain & Company of today is far diff
ierent in character and endeavor than the house of
that name which hourlshed under other forms of
management twenty years ago 1t would seem by
The conditions that brought embarrassment to the
rm or corporation that the advantages of autonomy
in the conduct of any enterprise emphasized.
Take for instance, the local firm of Hahne q
Company Operated and managed by local people,
il grew and hourished into a mammoth emporium.
its owners knew the people. knew the trade, knew
the requirements of the city and surrounding COM
nunities. and always prepared to shape ends
20 meet prices provide commodities and, in fact to
always be abreast of times and conditions. The re-
suits were widespread and gratifying, and Newark
and Newarkers profted through the enterprise of
the up-to-date merchants.
This could never be if the controlling lever of the
big concern was operated from New York, Phila-
Gelphia or Chicago, for it would be manfesty i'm
possible for persons in a distant place to know and
understand the changing conditions and needs Of
Newark.
When change took place in the makeup of the
arm, foresight and keen judgment prevailed. BY
good fortune the men who had made and built up
she house of Hahne & Company remained at the
helm of management. framed its policies and super
Used operations. Success has been the outcome.
And this is the policy that must eventually be
adopted in all industries it is the only policy that
N reason, can be expected TO prevail and endure.
The firm of Clahin Company sought to be
recognized clearinghouse for the dry-goods bust
of the country, and found that it was too diff
cult an ambition be realized.
A too liberal extension of credit and sharp COM
petition with jobbers and middlemen proved its un
doing While the assets announced about
-sIA.000 0Do in excess of liabilities and all may yet
be we'll, there matters to be considered apart
from the Clahin affair
Merchants, manufacturers bankers and the peo-
pie generally should cooperate for the good of all.
Let the manufacturers. bankers and merchants work
TO bring about improved conditions and the public
viii assuredy do its share
The middleman must be eliminated his profits
cut out, the interest Of the producer and the re-
taller and for the ultimate benefit of the consumer
More care should be exercised in the extension of
credit for to this custom the Cafin people attribute
most of their trouble.
President Wilson has predicted prosperity in bust
ness and better times with the passage of his anti
trust laws. He breatbes hope and encouragement,
and if his antitrust laws to effect increase of
prosperity by all means let have the laws and the
prosperity Let all hope and pray that the Presi
dents prophecy will be speedily fulfilled.
There is no real cause for alarm the embar-
rassment of the big New York Matters will
right themselves, and under circumstances the
people suffer.
From seeming chaos may come revolution in
methods that will to the advantages of trade
and to the common good The jobber and the middle
may have to take back seat; the retail dealer
ralV n nd
experience as to where he will buy his goods and how
and for what be shall sell his goods He will be
master of his mind and his own business, and he
will retain his autonomy tradesman. This is
it should be
There should never be oyerconfdence in anything,
however, but confidence should never be looked at
from the minimum viewpoint. Hope should ever be
permitted to spring eternal in the human breast.