Henderson daily dispatch., 1937-09-10

eating so many established enter
prises is the major cause of the bit
ter criticism and political agitation
against them. In spite of the fact that
the new type of store provides ire
tages, the cry continues that the
chains are menace to the prosperity
of America. Before commenting on
such criticism let us look for mo-
ment at the position these merchant
izing outlets now hold.
One-Quarter Trade BY Chains.
In spite of the mushroom growth of
the chains, the independent retailers
of the country still out-num. er them
ten to one. There are about 1,475,-
900 free-lancers as compared with
100000 multiple stores. The multi
units are doing only about one-quar-
ter of our $33 100000 total annual
retail trade. But in certain lines as
high as 40 per cent of the business is
done by the chains. 1t is my belief,
however, that the multi-store move
ment has about reached the top of
it's steep upward growth curve and
that it's future sales trend will. follow
a more level line. This will be good
for all concerned.
During their growth period the
chains have stepped on many toes.
Hence, they have become a target of
the professional agitators. I am OPP
posed to the punitive taxation which
has been legislated in 81 states to
handicap the chains. However, when
q lo% nit 40 =,
chain store, the tax is not paid by
the chain, but by you readers. While
a direct sales tax is fundamentally
sound, it should be passed as. a sales
tax and not camouflaged by the poll
icians as q chain store halter. Aside
from efficiency and economy, the
chief advantage of a chain over an in
dependent lies in it's sales volume.
Hence, the attempt to tax turnover
is an attempt to tax out Of existence
one of the big advantages the multi
units have introduced.
Where Your Dollar Goes.
This antagonism against the chains
IS Ky no means new reaction. A hue
and cry has always been raised a.
gainst any revolutionary method of
merchandising. At one time or an
other the feeling toward the depart
nent store, mail-order house, and
loor-to-door salesman has been equal
" as bitter. The charges directed a.
,ainst the new type of stores are nu-
nervous, but the principal ones are:
1. They draw everything" out of
he community.
2. They drive independents out of
business.
3. They fail to build UP the local
community,
4. They do not pay their share of
local taxes.
In answer to these charges, the
chains have produced evidence to
;how what becomes of the money you
spend in their stores. Out of every one
hundred cents you give them, they say
hat:
70 goes to manufacturers and pro-
ducers who in turn pay most of it
out in wages and taxes.
13 goes to pay the wages of local
citizens employed by chain stores.
SIS goes to cover taxes and inciden-
tai expenses. Most of this is paid to
local citizens. *
4 goes to United States property
OWNERSHIP pay the rent of the 100000
chain stores.
is goes to pay the cost of chain
store advertising in local newspapers.
This is a total of 81 cents. The
chains use the remaining three cents
of the consumers dollar to cover in
terest on their investment and depre-
citation, and to provide profit for
their stockholders.
Have Spruced UP Independents.
Fair-minded consumers are aware
of the, fact that chain stores leave
money in the community. Landlords
know that as tenants they are OK
tremely valuable. Local farmers and
producers often benefit. Paradoxical-
ly, chain competition has helped many
an independent. Alert, unaffiliated re-
tailers have modernized their stores.
They are now using the same meth
DDS by which the chains have sue
ceeded. Many have banded together
to get the advantages of large-scale
central purchasing.
Despite some of the unfair and
AuIA1lCoS Rl dCL1CSS VI tAS C4lcI1LlS
(Which now have been pretty gen
orally corrected), believe that they
have brought far more Benefits than
they have injury. There remains, how
ever, one question which bothers me
To what extent are the chains and
their managers now going &c contri-
butte to the civic, religious, and Social
life of the community2 A generation
ago the retail merchants were the
backbone of every town and city. We
looked to them to support all worth
vhile causes that would help build
up the community. We owe much t.
them.
The Latest "Vanishing American"
So I ask: Who will take the place
of Americas vanishing Indepen-
dent? The present-day chain store
manager can scarcely be compared to
the old-time retailer He is more a
smart clerk than a responsible bust
ness man. Frankly, I do not know the
answer to the question. I, however, dc
know that men with a financial stake
in the community are far more i'm
portant than the price which we pay
for canned soup or peaches. Surely
| using chain stores as subterfuge for
SaleS-tax collectors does not solve this