Evening star., 1939-06-07
Chain Store Spends
Sc Per Cent For
New Merchandise
Novel Report Shows
Breakdown of Each
Dollar Taken in
Srecial Dispatch to The Star.


NEW YORK, June IA chain
store organization which started
with very small capital back in the
horse and buggy days of 1907 man.
aged to do gross business of more
than $97 100000 in 1898, and is now
sending out what it calls "a mes
sage" to its family"
This interesting statement, which
contains about 20 pen and ink
sketches illustrating various seq
ments Of the company's sales dollar,
and what they cover, takes the place
OF the customary annual report to
the stockholders for last year. In
an Introductory comment. the mes
sage says, these are difficult times
for the successful operation of any
business. and We feel if We under
stand something of each others
problems that We can work together
with better chances of success"
The various stores of the corpora
ton, numbering close to 500, sold
to be exact, S97 Sol ,4l8 worth of gen.
eral merchandise in 1888. This to-
tai represented the best IL months
period in the history of the 31-year-
old organization, aside from a slight
ly higher gross in 1887. The re-
port states that the equivalent of
more than 68 cents out of each
sales dollar went for merchandise.
Opened IA New Stores.
The company opened IA new stores
last year. And it installed air-con-
dltioning in 10 of the Establishments
at cost OF more than s250,OOO. Ap-
proximately $4,000 persons were en-
ployed in the various company
stores, and they drew wage total
of more than s12 1884, 900. This item
was equivalent to slightly over IL
cents of each sales dollar. In ad-
dition, the company is frank to
acknowledge that it regards itself
as responsible for the employment
of many other thousands in fac
tories, railroads, etc.
Something like II cents out of
each sales dollar also went for
rent, light, heat, etc. In addition,
10 of the company stores were en-
larged or remodeled at cost of
more than Sl.OOO00O.
The item for taxes alone took
about s3,000000. This meant an
other slice of about three cents out
of the sales dollar. And the COM
pany had to pay out more than
S540, 900 for social security taxes, en-
ploye benefits, organized charities,
etc. Furthermore, bonuses at Christ
mas amounted to $l8,500 for sales
Women's 20-year employment awards
and dinners. Then came q final
charge for depreciation OF rn-out
fixtures and other store properties,
equivalent to another cut of nearly
ia cents from the sales dollar.
Profit Over Two Cents.
I'VE have left" the message goes
on to say, approximately 224 cents
for profit. Out of this, dividends
were paid to stockholders. and the
balance was added to our surplus,
and will be used to open new stores
and improve the old ones"
In conclusion. the stockholders are
asked can we do a better iob?"
And the chairman of the board of
directors, in statement of only 100
words, says, Il know every execu-
tive is trying hard to make this COM
pany useful and friendly to its en-
ployes, useful and friendly to it's
customers and everyone with whom
it comes in contact. The executives
went your help in meeting the tre-
mendous problems which are facing
business today. And 1 ask you to
give them every suggestion that you
believe will help keep the company
a useful, friendly, successful organ
iZation."