Show how flow I 1 J CP C chenny penny enny E has a made M e hiis i big by helping the other fellow 13 R C CRI CR if I 1 have lic ve an interest in liu humanity manity and in individuals and som e sentiment a am fiig with it I 1 want to stay in business a ini minute nute no man ou ough b to have a right to advance in th lei vo r I 1 d unless he is willin willing t to 0 tal at others hers alon along with him if we nad lad more of that sort ort of thing th the country over we would I 1 have lave biess ess 0 of f dissension we lay the in emphasis mp h asis hasis on oil man mail building in our organization for we feel that mo icy ey merely a t D product and th t it if we get the r ight 0 kind of in ii and develop them properly i e will be assured of if the financial n ten tell or twelve years ag I 1 used to tell bount people that some day da we would probably have lave aground fifty stores now low we have 0 01 v er r three hundred we have succeed led beyond our fondest hopes at ai d dreams J C penney chairman of the board of direct directs rs of the J C 1 penney company compa which operates a chain of ktores tores throughout the united stat states S sel selling linio at retail mens and clothing shoes dry goods and miscellaneous articles of merchandise lean ed back ingis cnair I 1 I 1 ask md mc anything you will vill lil 4 said there jure rare no secrets secret s about bout our lifis business int iss mr penney penne 7 1 P I declares frankly that lie made bi success by helping the other fellow ellov a success and an ail organization far beyond I 1 his most sanguine ile dreams of ten tell or fifteen years I 1 ago there are men in ill the tl 1 e penney organization benrey who ten tell years go 0 o had hardly a dollar to their i names and yet today are ra tedwell beyond the hundred chousa thousand d 1 ollar dollar I mark the best part of ofa ita it is that the J P penney org organization aritza iiii is perpetual 14 1 R oung men starring a ng in in without capital today bijl wi I 1 be the bi big 0 par parr ners in the biness b i ess a few years hence I 1 Is it any boncer won er that with an am organization sue i as this scores of men have lave bee i willing willin to give positions paying payin glinto into tile the 0 thousands of dallara to 0 start in at the bottom of the penney ladder the venney penney organization has an office in st lo 10 louis it i s which picks most of the houi men for the company f 1 work for foi future we have gen generally rally found that the young men mining arnin from the small towns of he middle west make the best allaround all a around men in our organization mr penney told me iiley itie yi have not een spoiled by the big M cities and for foi the most part tiley know how to live within t their air means tile the in harder pull a nian lias has had the better he can nake ake good food with us we look for clean qualities in the young men we pick A man in our o ion must not drink gamble orl or smoke cigarettes I 1 prefer a young man who has some reli religious ious sta stamina ina we like eollo college e me men I 1 when they are willing to start at the bottom of the ladder and work in fact we are arc willing wiling to take all I 1 the kind of men we can find provided they measure up to the ather other qualifications as well for instance I 1 have in mind a young graduate of cornell university who has been hold ing a rather lucrative e poi position tion as an instructor of latin at a preparatory school back here in the east lie ile resigned that posit position ion to come with us at 10 per month ile he is making satisfactory progress and I 1 look for forward vard to the i time alien lie he wi 1 be one of the partners in the bi siness 1 I never promise prom i ie a young 0 man mail anything when 11 starts in with us we aim iain to pa him enough 0 tu t live in fair de degree of comfort 1 1 usually prefer tol to underpay rather than overpay d a man in our organization so far as salary is concerned when a man realized that his future does biot lie in salary i but in ill something bigger he I 1 is s willell wil willing lill to work much uch harder than if fl he e simply camE came us because we paid a little elinore i more salary than john jones down the street we start a man in as a salesman behind thel counter then alien bei bei be i fore giving iii him an interest we ave i learn to irn and I 1 to know us its if I 1 lie he is made of the right stuff and ardillas an dillas has character the time will come II when lie will be placed in charge of a store as man mail ager M usually ari an offshoot off shoot of the store where li ellias I 1 been working then their the next ine lie he changes lie he gets an air interest in his first store if lie has not alic money money we are only too glad 0 a to loan it to him if lie he is a big b ig success s u ess in that store he can call establish estable I 1 other stores in which he has all ah interest then hn his material fortune begins to accumulate furthermore it will be seen that in our organization a man mall does not run ithe same risk of failure that lice he would if he had to start business on oil his own account there is no chance of his being closed out since lie he has always the backing of the corporation we pay all the bills bilks from our new york office aill and keep all the books here V mr arr penney told old me that lie he did not know how hown binany nany of the stores he has an interest in would not know without looking them up III those who know him best say that he does not lock upon money as anything t particularly desirable in I 1 itself it se if in III spite of tile the I 1 business depression tile the organization expects to do a bigger business this year than last total total sales of the stores lastly last year ear were and the company expects to pass the mark this year yea r in J july illy its business for tile the year was running about greater tha than n the year before we took our big 0 loss in december and marked everything I 1 down mr air tenney penney explained the increase in business which resulted e enabled us to get our money out oftie goods good goldsand sand and use it for buying at the lower lovei prices ve can now make more frequent turnovers turn overs some of our stor stori s turn their goods ten times in a year car we are aref not borrowing a single dollar today to carry on our business in order to keep out of debt we long ago made it a rule that no store tore could start another store inthe chain until it had tile the actual actu 1 I cash on hand A feature af the penney organization recently established is the educational department which is in charge 1 of dr francis B short one time paster of a church which mr air penney attended in salt lake city in addition to publishing a magazine this department part ment has charge of a corres pon danee dance course which is bein being taken by 2335 2385 managers and enn of tile tho penney stores it is not entirely to teach them the prin caples of the penney organization salesmanship and kindred subjects for it has been found that the employees employee 4 hundreds of miles away alvay draw much comfort and inspiration from the fact that the central office i is interested in them does sentim sentiment ent does regard for the other belloi in business pay lest there be some closefisted business men i ho think being closefisted is the only way to make a business bucce s let it be said that in the pros pres nt lit depression tile the J C penney C company is operating in without a c lit of borrowed borrowe 1 capital the fact that last year bac licud red new stores were opened ed 1 bought out partners As J C penny penn py sits back in his chair and unfolds unfolds tile great secret of his business how lie he conceived it and how a fifty million dollar business I 1 was built on the cloe doctrine trine of liel heaning ging the 0 ther other fellow it is almost like an air unbelievable lie vable ro maneg lie he was raised in humble surround surroundings ings the son of afi an impecunious baptist minister in Alis missouri in 1889 lie he was working for 50 a rn minth nth in an air evanston wyo stored store where he got the nuel nucleus ells of his idea tile the men he was vas Av working for believed in helping in the other fl fellow ilow and from time to time gave their boost in establishing storis stores with a part interest in 1902 1 9 02 he b was manager M of a store in kemmerer wyo wye his salary had been advanced from froin 5 50 to 90 and bebak also managed to save thereby gett getting iii 0 an ail interest in the store attore lie he was run nin ning the next five five years were pre years he was just getting a foothold ile he succeeded in buying bloing out his partners in the bus iness and in 1907 1 he was ready to start the operation operate on of the chain store idea which irk in the next foun teen years was to pay its own way and develop into stores the first man J ti penney start ed out was E C sams now president of the J 0 penney company sir arr sams was given the manager ship of a store at cum cumberland rland wyo sams made good a and was n given n the store s t ore at Eureka utah to manage with a orie one third interest sir mr penney holding a two thirds interest and awni owning oc outright the stores established at price utah with a sir mr thompson a as s manager 0 thompson had no interest in this his t store just as sams sami had not had an ail interest to start with sams owned one third of the price store and penney two thirds since that was the way vay they the had owned the E eureka store from froin whose profits the price store was established thompson got along pretty well with the price store and soon mr penney and sir air sams decided to give him a start on oa his own account so lie he was given ivan the management a M ement of a store at alamosa alamona colorado with a one third inter est while sams held held one third and penney one third then thompson began training a young mr clinton in in his store and soon clinton was giver given th the inana management c of a store at ardilar color ado lie ile had to wark on a salary there just as sams and thompson had bad donev managing their first stores thompson sams and penney each owned a third interest in this store but soon clinton made good and he was vas started aiu in a store at roswell new mexico this time with aone a third interest mr air penney dropped out of tile the roswell store clinton owin owing a third in the apic next net rotation sams dropped out and the next time thompson I 1 1 I 1 in other words the senior drops out each time a new store is established 1 thereby room for the next lip at fellow that must he be given an ail interest explained Mr penney if that were not loit ot buld be impossible to give man mail a start if the oldest man kept retaining his interests indefinitely it would would mean that lie he would be py rami ram iding dilg himself new men could secure only ah infinitesimal interest p the recital of tl the C development of the stores named above is the actual history of th taca early lays days of the penney or organization animation aniza tion but of course no mem kempers ers of the penney organization is limited limited to partnership in three s stores ores there are many who ow own interests interests in a dozen or gwei twant thirty or forty stores it will b seen that the stores did not pi aduce themselves in a straight lin I 1 of succession one store might amigh in the course of a few years sup y the capital for tour four or five othe stores these four or five store in the next few years might be a al ie with their pro fits to start in the aggregate 0 twenty or thirty more stores depending on how jm well all they were mana managed ged S tile the great proportion of men that entered the penney enney organization had no mone money 0 of f th their e ir own mr penney said aid when it came time to start than the out on their own hook book th the c company loaned them the ino money aey for their one third interest suppose a store started out with a A capital of the first that would I 1 nut mit a dividend to each of the three partners of 2000 the man i who had been adar advanced iced for la a third interest could then pay i I 1 back part of the money loaned him and if I 1 the business was ex cx tre amely successful he might 7 be 1 able to pay back the loan in a few years that would depend on his management I 1 where does sir air penney corn com in that is what hundreds undress of people ask me TI 1 ly forget that every man in the yenney enney Y tion is interested in 11 a s string it of stores even if he is eliminated 1 in from certain grouls groups at tibe the third round op I 1 1 I believe that without v phout my plan of giving t a ma man n a S rt in the business the success u ice e s of our company would have been comparatively small you see cc wh when n every man working for you either eit er is is a manager I 1 or expects som soma day to be 1 given alv en an interest inthe in the business he is going to forkla borka lot harder than if he is just hired t to do a days work thus the financial success of the stores i i which you are directly interests inte reste is going to be much greater bee use the me men in charge n of those f tores know that to get anywhere with their own fortunes they must mi st also work for your interests I 1 have watch eel ed other stores ahei e men were not given an lity ity to share in the interests of t ie e company and they have made much uch slower progress pro or ess no chain is is stronger than its weakest link in helping our men to make a success ii giving them equal opportunity ave we help ourselves as well corbes abes magazine |