The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1925-11-27
The Origin and Oper-
alton of Skaggs
Stores

Uncle Ebeu, mythical darby philpa.
opher. Is quoted az having said
When a man says he amt got no
enemies hos either an awful liar or
else he amt never done nothln' wuth
nolcin." On another occasion the
same ebony age is supposed 10 have
remarked that ANY time 80 sticks
20 haid above dc tall grass some.
body'a gwine bounce a rock often t."
Both OF which observations whether
or not they Hrc authentic are literal,
" and flsurutyoly true
Frequently the psrlccsly obvious 4
The most difficult thing To sec and II
= human nature 20 like tn weave =
web 81 mystery about outstanding
successes despite the fact that Il few
simple, properly directed questions
might dispei the mystery ne any time.
Particularly in tho case OF unusually
successful commercial enterprises
there are always those whose concept
OF their own self-intorest prompts
them TO create and circulate rurnors
and whispers that are lesN than hnlf.
truths or who'll, FALSE. No large con.
Germ Is Immune from such attacks
and the question OF who owns
skoggs StnycsE'' has been tho subject
Of much Idle speculation and false re-.
port
SknEgs stores arc owned SOLELY b.
TIE men who are actively engaged in
their opefntion-four Sknggs broth.
eFA. and the executive heads among
the employees who have reached Gers
tain positions and met certain re.
quiremeuts. Not a dollar earned out.
side IS or ever has bean invested IN
tins concern since ia Incorporation.
nor are there any outstanding bonds
notes or preferred stock (which is but
another way Of borrowing money!
ana not single share Of common
stock has ever been sold TO anyone
outside this organization.
AS the second skakRa store wna
financed from the earnings Of the
| first store, so have succeeding stores
Deen financed from the profits Of the
stores that preceded them No stool.
~ SkaEEs stores has ever been Of.
tered the public or listed on any stock
exchange for the reason that the
heads of this firm regard all chain
store stocks as highly speculative
| and dependent for their earnings en-
trely upon the ability and spirit OF
me management and organization
back OF them. To build a closely knit
organization such as ours. ONE in
MIND, purpose, and effort. requires
considerable time and mors-thnn-
ordinary understanding Of the vari
able and human elements involved.
Ana yet. without such an organlza.
tlon. the ultimate success of any
chain stores venture is Mt least cues
tlonable, therefore. In the beginning
we did not invite or permit the pub
nc 70 risk its money with us. and
later, on the principle that a true
servant Is worthy Of his hire profits
nave gone TO the producers thereof
and IN direct ratio to their efforts and
ability.
Some years after the opening Of
the first Skaggs store certain OF tho
older personnel had accumulated
various amounts OF money which rep.
resented their savings since coming
with the organization. This money
they desired 10 invest I'm the com.
pany. and, since the heads Of tho
concern had always believed that
each man was entitled TO participate
~ the profits 90 the full extent OF his
personal efforts, and the firm was
then we'll established and on It's yyav
10 SUGGEST arrangements were made
10 permit these men 10 buy such
amounts OF stock in the corporation
as could be paid for strictly out or
, funds accumulated while In tho en-.
ploy Of the company. No money from
outside sources was permitted 10 be
used In the purchase OF stock. and
only amounts in excess Of annual
earnings Of 81 10000 were accepted
since u was considered that 81 500 90
year was the minimum amount on
| winch q mnn with family could live
decently
The money thus Invested by en-.
ployes was used for further expan.
SION. TO Increase earnings. and rnre
| Tor the incoming personnel who were
fapldly developing 10 managerial en-.
paclty. Since that time. once each
year, the various executives who can
meet the other requirements arc OF.
terch tho privilege Of purchasing
Took ON Tho above busis-a privilege
OF Which they can avail Themselves
or not, as they sce m, since the pur.
chhse OF stock IN the company iq in
no way condition Of their employ
| lives thereof. ~ Vs''
For THIS reason. whenever you
meet and deal with one of tbo n,on'
ugers OF tho more than 900 wldolv
scattered SkngRs stores. Won have
almost invariably como into contact
with ono Of the owners whose ner,
sonal and financial intoresig nro
Vilally concerned with tho Kind ~
service ana satisfaction yoti rccoI,,a
In that store. '' 'Vo''Ee
Next Week where Do tbo
Profits Corr