The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-13
The Legislature and Business
BY TALCOTT POWELL

such store, if there are more than 20 in any
one chain. $1,000 The tax is already $3.50.
This. we think is thoroughly vicious and
discriminatory proposition. The bill is spon-
sored by an individual who has a personal
grudge against chain stores and who wished
to use his official position to get revenge. That
is unworthy in public official.
The Indianapolis Times makes every hui
man effort to stand against injustice, no mat
ter at what class injustice may strike.
We are well aware that chain stores have
been the object Of all sorts of attacks in recent
years. Regardless Of the merits of these at
tacks there are one or two facts that stand
out.
Chain stores have developed an economical
competition has forced independent retailers
to modernize their merchandising methods,
reduce overhead and revise their procedure to
permit lowering of prices More than $4,000
independent stores have joined in 300 volun-
tary grocery chains to fight the chain stores.
The appearance of chain stores has revo-
lutionized food merchandising in the United
of the average citizen. We like that kind of
revolution.
No matter what criticism is levelled at the
chain store never forget that it HAS lowered
prices, that it HAS increased the quality of
both goods and service to the householder.
1t has accomplished this, however, by
bringing its distributing system to such fine
point of perfection that it can not further re-
duce overhead Chain stores do business on
such narrow margin of profit that any extra
burden would have to be Immediately passed
along to the consumer in increased prices.
The Indianapolis Times believes that food
prices in these times should certainly be kept
at the lowest possible level. Every legislator
who votes to increase the tax on chain stores
to $1,000, which is utterly exorbitant, will be
merely voting to increase the price of food to
his colleagues.
He will also be voting to satisfy few pure
ly personal petty grudges Of one or two of his
contemporaries.
Sincere people. fear that the chain store
may eventually develop into a vast monopoly
of food We certainly would be the first to
fight such thing. But the so-called chain
store problem is solving itself in the natural
course of events. Reports of the proportion of
business they have absorbed are grossly exag-
gerated.
In the boom year of 1929 the national and
sectional chains had altogether 92,141 stores
which in that year made total net sales of
$6,151, 337,0 900. That was a lot of money but
it was only 1852 per cent of total retail sales.
There has been a steady decrease in profits
since 1925 and 1926, the peak years for chain
operation At the same time there has since
those years been a steady increase of the net
fixed investment in individual Shops The
chains, while still extremely profitable, are
finding their normal level in our economic
life
We can not see much reason to fear
trust when the chain stores did only 10 per
cent of the retail business in boom year.
On the contrary, the chains we think, have
been a wholesome influence in modern society.
Perhaps the government itself, fumbling
with a Six-year depression, could learn great
deal from the chain store technique of quality,
efficiency and service delivered at a small unit
profit.
TINE Legislature is thus confronted with
l. two major problems regarding private
business: What shall it do about state MIRA
and shall it further burden the chain store?
The answer to the first question is that
both the legislators and business should dis
mount from their high horses and get to-
gether to formulate wise program which will
benefit ALL the people of the state.
AS for the second question the chain
stores will come under the same general regu-
lation all business. They should be treated
just as all business is treated. They should
not be victimized by the crackpot prejudices
of a few members of the Legislature.