Foreign Language Press Service

Where the Shoe Pinches (Editorial)

Illinois Staats-Zeitung, July 31, 1879

Our remarks in yesterday's editorial, "Where the Shoe Pinches," called forth several replies from small retail merchants, who fully affirmed the truth of our statements, and submitted considerable evidence to prove that the large concern is a veritable leviathan, which endeavors to crush the retail business of the middle class.

The following scheme is used to get rid of the little fellows: An article which was sold for years at a standard price is offered to the public at a great reduction, so that the large concern makes little profit on it; or it may even take a loss. As an example, one might mention Lubin's perfumes, which the retail merchant can buy for eight dollars to eight dollars and forty cents a dozen bottles, or sixty-six and two thirds to seventy cents a bottle; 2yet the large store sells this item for fifty-five cents. Of course, as soon as this becomes known, the small retail merchants' market is destroyed, as far as this article is concerned. The large concern covers its loss by selling other articles which are in style--where a large profit is made because there is no competition.

By relentless methods, this house succeeded in controlling the market for novelty and fancy goods, and now the same methods are applied to the sale of furs. After a monopoly is established, the public is expected to pay an arbitrary price. An example is given: A fur coat--the kind which is generally worn when sleighing--was originally offered for sixty dollars. When the large concern found that another store offered the same fur coat for fifty dollars, then the "leviathan" advertised the same style of coat for forty dollars, which means five dollars less than cost. But, regardless of the price, the large store was not so much interested in making a profit as in spoiling the next man's business.

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When an annual turnover amounts to nine or ten million dollars, such tricks, calculated to ruin the other fellow, can be practiced with impunity. Suppose the concern loses a quarter of a million dollars in selling shoes, leather articles, novelties, brushes, combs, soap, toys, furs, etc., but makes a million dollars in other departments--there is still a profit of three quarters of a million dollars.

The depression committee, during the last two days, listened to various crazy notions involving the revamping of the world; then saw the steers and hogs at the stock yards. Isn't it about time that the investigators consider the small merchants? They can give more facts about the depression than the bankers, unsuccessful land speculators, or the crazy chaps who advocate paper money.

Of course, the committee cannot do anything to better conditions, but it can show the cause, and call attention to the system by which trade is stifled and monopolies thrive. The diagnosis of a sickness is by no means a cure, but to 4obtain health one must first identify the ailment.

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