The daily star-mirror. (Moscow, Idaho) 1911-1939, 1914-05-16

are no charge accounts. In every
store the cash counted up at the enc
of the day represents the total sales
No credit is given and none is asked
The Golden Rule stores buy for cash
and sell for cash. The buyers get
lrock bottom prices because the whole
sale people know that every order is
followed by quick payment.
After eliminating credit Mr.. Penney
cut out delivery. If a man buys a
double bed or dining room table it
stays right there in the store until
he carts it away. In big city de-
livery system is necessary, but the
Golden Rule chain does not enter big
cities.
Elaborate displays are another nom
essential that has been eliminated
The Golden Rule stores are very plain
affairs. They boast no window trims
and they give no cabaret shows, but
they keep their stock up to date, turn
ing 1t as often as six times a year.
The net results of this system of
elimination are: no complicated cleri-
cal work; no need of large loans to
bolster up the business when charge
customers do not pay; no doubt as to
the exact amount of money that every
line of goods is making; no big over
head expenses; no unnecessary risks,
due to changing styles and seaons.
The cost of doing business in 1918,
due to this system, was kept down to
between ten and eleven per cent.
However, the spread of the stores
over so many states is due to something
more than this efficiency, even some
thing more than satisfied customers.
New links are always being added to
the chain by definite method of ex-
tension that works automatically. 1t
has been said that the secret of the
organizations success. Is contained in
the word MEN. Right here is where
the human factor enters the PROPOSE
ton.
Every clerk can become store
manager and part owner if he makes
good. A manager has the privilege of |
taking an assistant as a one-third |
owner In his store. In this way the |
the assistant and the ]. C. |
Penney Company, which has it's main |
office in Salt Lake City, Utah, each
own third Of the store. Thus the
endless chain movement is carried on.
The assistant in time picks out field
hat looks good to him. and to his
superiors. There he starts a new
store, still retaining his third interest
n the original business. His former
manager has the privilege of backing
he new venture by taking a third in
crest in it himself. This arrange
nent is, of course, subject to the ap-
'roval Of the company, which takes
he remaining third.
1--WE do not back any man whom
We do not know personally" said Mr..
'enney to an interviewer. Outsiders
With money are constantly trying to
inter- our organization, but we prefer to
evelOp our own men and back them
urselves. Ours Is an organization
friends-men who have worked side :
y side for years, men who can be
rusted and who trust each other"
No managers activities are curbed Z
l any way. Each is permitted to re-
west his surplus in a new store and ,
/ turn to sell a third interest in it
, some bright assistant who wants to
NY In. 1t the assistant hasn't the
lOney with which to buy in, it is
1vanced to him on a personal basis.
Mr.. Penny declares that they have
1t to pick man who has not made
bod the faith placed in him. The as
slant who buys third interest in =
e store started by his superior, may, =
hen his finances warrant it, start an y
her store, and sell a third interest q
it to some bright young man who .
Is assisted him. And so it grows, L
ID grows. Some managers are inter- I
ted in as many as eighteen stores.
at is an inspiration to see the spirit n
cooperation that dominates the
'eration of the stores" said Mr.. Pen II
". every man is ready to help n
8 brother manager at any time, and II
e mans idea or plan for the better II
emit Of the business is the property II
every other manager in the chain 81
lat is efficiency of the highest sort, 81
hink, and the part that it has played 81
the success of the stores we own is OF
estimable. 81
We have an annual meeting of the y
,ckholders at Salt Lake City in the !"
ddle Of January, at which various
ms and suggestions for improving
, business are made. Our stores are LII
W located in the west because they III
re started there and have made on
ID. Some day we may extend our III
,rat;ona ooo+wora hu. ~ 10 too for on
tant to even hazard a guess as to ~
en- it will be-" R95 as
CO..
NEW YORK'S FINEST. 'n'