Milford chronicle., 1961-03-17
j. c. Penney Opening
Was Well Attended
Last Thursday

continued from page ,one)
he founded. now one of the largest
corporations in the U. s.. bears the
indelible mark of his personality.
The son Of James Cash and Mary
Frances Penney, he was born near
Hamilton. Missouri. on September
16. 1875. He was one of twelve
children, six of whom lived to
adulthOOd. His father, a farmer on
weekdays, preached on Sundays at
Log Creek Baptist Church, Is miles
distant
The family was poor and Mr.
Penney had TO earn his own way
beginning at age eight After
school he ran errands. farmed, and
showed precOcious trading talent
in various ventures of his own de-
vising.
He was graduated from Hamil-
ton High School, and in February.
1859. became an apprentice clerk
in the drygoods store of J. NJ. Hale
and Brother. His entire salary for
the year was $25.
Next year il jumped to 5000. But
in the previous year his father had
died, leaving the farm and home
heavily mortgaged. Redoubling his
efforts. Penney soon undermined
his health. On doctors orders, he
went West TO Denver. Colorado.
After elerking briefly in several
Denver stores. he used his entire
savings to buy a butcher shop in
the small town of Longmont, 40
miles away When Penney refused
TO hribe the chef of the local hotel
with a bottle of whiskey as re-
quested. he lost the hotels busi-
ness and failed.
Penniless. he sought a clerks
job i'm the local dry goods store of
r. NJ. Callahan and Company. He
got the job. and it led To fame and
fortune.
Penney is often credited with
originating the idea of a store
chain in which each manager has
the practical autonomy of part
ner Mr. Penney gives the credit to
Johnson and Callahan. who plan
ned to create a number of stores in
small towns OF the Rockies, each
managed by a partner rather than
an employee.
Ambitious and tireless, Penney
worked first for Callahan in Long
mont. then for Johnson and Gala
han in the partners store in Evan
ston. Wyoming. In 1902 he opened
the Golden Rule" store in Kam-
mere as the firms third partner
The local bank advised him a
gainst the move, since three pre-
vious efforts TO compete with the
company store operated by min
ing firm had failed. The company
store offered advance credit against
wages. The miners were usually
in debt TO the store. and often re-
ceived little or no cash on payday.
Despite these handicaps Mr.. PEN
ney did a brisk business from the
day he opened. He offered many
small items and emphasized maxi
mum service. Although he adhered
TO a strict cash policy he was soon
outseIling the company store.
He supervised the establishment
of two more stores in Rock Springs
and Cumberland. then was offered
the chance to buy all three when
Johnson and Callahan dissolved
partnership liz 1907 The j. G. Pen
ney store chain was launched.
By 1910 he had fourteen stores;
by 1920. 297. Today there are near
ly 1900 ]. c. Penney stores. The
firm employees more than 10000 and
ranks among the so largest U. S.
corporations.
Many features of the early days
still characterize the chain. Most
Penney stores are in small COM
munities and have strong local
roots. All employees are called "as-
sociates". Store managers enjoy
virtual autonomy. No Penney ex-
ecutive receives more than $4,000
year in salary; additional earn
ings are received as a percentage
of business volume.
Until recently no Penney store
sold for credit. Penney stores now
offer credit. but the founders s
frank preference for straight cash
dealings remains unaltered. prices
TO cash customers will not be rails
ed to carry the credit load" he
stated. Those who want the pri-
vilege of buying on credit must pay
for il"
For many years ]. c. Penney
would not hire any person who
drank or smoked.
He was president Of the firm un-
til 1917. when he became chairman
of the board. In April, 1858, at 81,
he stepped down as chairman but
continued as a board member.
The failure of his butcher shop
in Longmont was not his only set
back. In the 20's, with money he
borrowed on his personal secur-
tiles, he established foundation,
sponsored various charitable en-
terprises and established a home
in Florida for retired Christian
workers as a memorial to his par
ents. When the depression struck
and the banks demanded more col
lateral to cover the loans, he was
unable to produce it and in 1882
lost an estimated fortune of $40
million. He Immediately began to
build again with the help of friends
and business associates, buh has
never accumulated the fortune he
ouca had