Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-07-07
BUSINESSMEN OPPOSE
TTINERANT MERCHANTS,
+! UNFAIR COMPETITION
The "Schlag," They Say,
Pays No Mercantile Tax
and Obtains Quarters at
Unusually Low Rates.
Methods Criticised.

Have you heard Of the battle OF the
eschlaFs". Well, It's still raging.
Hundreds Of Philadelphia business men
ana business associations. including the
Chestnut Street Business Mems Asso-
ciation the Market Street Merchants As
aociatfon the United Business Mems As
rociation and the Walnut Street Business
Association, are 'up In arms against
the "ny-by-nighr' merchants, commonly
referred to as "schiags,' who establish
places OF business in vacant store build
Ings sell seasonable articles at reduced
prices and then move to another street
or town without paying even so much as
a mercantile tax.
The grievances Of the ong-established
Philadelphia merchants against the
'schlag'' are many. In discussing the
situation today, Erskine Bains, trunk
dealer, at 1928 Chestnut street and former
president OF the Chestnut Street Business
Mems Association. said
"sCHLAG's" BUSINESS DESCRIBED
"Philadelphlans may not know the
schlag' under that name, but he, or at
least his place Of business, Is familiar
sight to them. The schlag' has no credit
but he mananges to get little ready
cash, buys up a stock of goods at some
receivers sale and then rents store
for a month or two and then fills his
show window with his many so-called
bargains.
HE buys only reasonable goods.
mean that he sells, according TO the sea-
son. iow-priced straw hats, raincoats,
shirts. trunks and leather goods, and per-
haps cheap furs. The 'schlag" is in no
way responsible. His whole storeful of
goods he can cart away to another loca-
tion in perhaps an hours notice. He gets
rid OF his stock of goods as fast as he
can and then moves to another street
or city. and he virtually Invariably
escapes paying the mercantile tax. In
fact II he gets in trouble with the mer-
camille appraiser the 'schlag just packs
and moves over night and often changes
his name When you buy from n 'schlag
you never know from whom you are
buying.
''The 'schlag makes money. There is
no question about that In the first place,
he gets his rental at a very low hEure.
i know of one store that am sure rented
for several thousand a year and
'schlag' occupies II now, probably paying
not more than $50 month The reason
for that is that he sees a store vacant
and rents II. say for a month. He man
ages to convince the landlord that 1t Is
better TO accept n paltry sum than to
have the place vacant, and the schlag'
is willing to move at days notice In
case a more suitable or permanent ten
ant should come along.
LAW HELPS "SCHLAG."
Mr. Bains explained that the laws in
this State give the travelling or temporary
storekeeper an opportunity TO open his
place Of business. sell goods, and leave
without paying the mercantile tax. Here
the mercantile tax year begins on May 1,
and mercantile appraisers cannot compel
merchants TO pay the tax before June %
and cannot sue the delinquents until after
July ]. Even in case OF suit" Mr.. Balns
said. there is n delay, think, of nearly
50 days. 1 mean I think 1t takes about
that time to get the delinquent into court.
Needless to say, by that time the 'fy-by-
night merchant has flown. indeed.
"PhIladeiphla business men are not
only opposed to the 'schlag because he
escapes the tax, but also on account of
the kind of goods he sells. His so-caIled
bargains generally are dear at any price.
"As an example. take the established
hat dealer. He has two seasons of per-
haps two months each. making in all four
months during the year. During the other
eight months he keeps up his place and
his help and has all the expense OF run
ming an up-to-date place. He has per-
haps been established for years.
well. what happens? On the first day
OF the straw hat season n 'schlag' will
open next door or across the street and
show all shapes and sizes of hats regard
less of styles or shapes at reduced prices
The 'schlag' as have said. has prac-
tically no responsibility and little expense
and the competition is not fair. I do not
mean TO imply that the established dealer
loses much trade, but he no doubt misses
some. and why should Philadelphia busl-
ness men lose even a few thousand dol
lars only to have It go into the pockets Of
these travelling storekeepers. who don't
even pay the mercantile tax.
THE Chestnut Street Business Mems
Association has proposed that every busI-
ness man should secure business license
before opening a place of business"
Malcolm Dyer. OF Dyer Brothers, hat
ters. at 10i1 Chestnut street. said that the
leasing OF place of business to 'sehlag'
acted as a boomerang and would eventu-
ally come back on the owners. "rhe
landlord perhaps does not realize, Mr..
Dyer said, that men are not going to
rent stores when they see them invaded
by -sehlags. Then again. the 'schlag' sells
4 cheap line OF goods. Like every other
fair-minded business man feel that
aachIanaf mean unfair romnAffffOn "