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Chart III and table III both show that here in America the bulk of our retail stores are small stores. In 1933, out of a total of a million and a half stores that were reported in the Census of American Business, 64 percent were stores that had sales of less than $10,000 a year. Many, many stores have sales totaling only & few thousand dollars a year. When you see the big department stores, you may think they dominate retailing, but in 1933 we had only 765 stores in this country, each reporting sales of a million dollars or over. In that year we had almost a million stores in the country each reporting sales of less than $10,000. Table III gives a summary of the data given in full in table V.

1. Small retail stores are a very large proportion of all stores.

TABLE III.- Retail stores and sales, by size of store, 1929 and 1933 (Data from Census of American Business-Retail Distribution, Vol. I, United States Aummary, 1933)

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1 These figures and percentages are cumulative, each including the preceding.
2. Very small stores make only a small proportion of total annual sales.

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i These figures and percentages are cumulative, each including the preceding.

3. Changes in number of retail stores indicate rapid turn-over; 9 percent disappear each year.

4. New stores and businesses disappear soon. Of 539 new businesses in Colorado in 1929, 41 percent disappeared within 1 year, 55 percent disappeared within 2 years, and 80 percent disappeared within 7 years.

5. Major causes of failures and bankruptcies can be much reduced by vocational education.

Mr. FITZPATRICK. Were they on a profit-paying basis?

Mr. BARNHART. A large proportion of them were not. For example the Colorado survey of mortality of retail stores, which we received the other day, showed that 41 percent of the 539 new stores that opened in 1929 in Colorado, outside of Denver, closed within the first year; 55 percent closed within 2 years; and 80 percent within 7 years. Mr. FITZPATRICK. Individual stores? Mr. BARNHART. Individual stores. Mr. FITZPATRICK. Not part of a chain? Mr. BARNHART. No. These stores were not part of any chain. They were independent stores throughout the State outside of Denver.

Mr. Rich. You spoke about stores that had a business of a million dollars. Mighty few stores have that much business?

Mr. BARNHART. Seven hundred and sixty-five in the whole country in 1933.

Mr. Rich. In the country stores and the small stores get down around $10,000 or $30,000 or $50,000?

Mr. BARNHART. That is what I am trying to emphasize. The bulk of the distributors in this country, from the point of view of the number of workers, are in the small-store group. But they do not do a proportionate amount of the business. In 1929 the total sales of the retail stores in this country were $49,000,000,000, and the big milliondollar stores got over one-eighth of all the business. In 1933 the million-dollar stores made 10 percent of the sales, while the 980,000 small stores, each selling less than $10,000 a year, made only 14 percent of all the retail sales.

Mr. FITZPATRICK. What percentage did they have of the people working in the stores?

Mr. BARNHART. In 1933 the million-dollar stores reported 13 percent of all the retail-store employees, the very small stores reported the same percentage; but 69 percent of all the retail store proprietors owned small stores selling less than $10,000 a year. Chart III shows you that. This chart shows the number of people employed in stores of different sizes.

Mr. Rich. Will you take those figures and present them to us?

Mr. BARNHART. Table IV will show these figures and the percentages. The stores having a million-dollar business and over, reported a total of 345,000 workers, while the very small stores, selling less than $10,000, reported about a million and a half workers. All the stores selling less than $50,000 a year reported 76 percent of all the retail-store workers in this country.

TABLE IV.--Relail store proprietors and employees in 1993 according to total annua

sales of stores [Data from Census of American Business, Retail Distribution, vol. I. United States Summary, 1933]

1. NEARLY ALL RETAIL STORE PROPRIETORS OWN SMALL STORES

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Note.-Vocational education classes for retail store managers will benefit store owners most.

2. EMPLOYEES OF RETAIL STORES ARE FAIRLY EVENLY DISTRIBUTED

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TABLE IV.- Retail store proprietors and employees in 1933 according to total annual

sales of stores-Continued
3. MOST RETAIL STORE WORKERS ARE IN SMALL STORES

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NOTE.-Vocational education for workers in retail stores will benefit more workers in the small stores than the large stores.

1 These figures and percentages are cumulative, each including the preceding.

Mr. FITZPATRICK. What proportion was sold in the large stores and the small stores?

Mr. BARNHART. Table V shows the percentage of retail sales by store size in both 1929 and 1933.

Table V.-Number of stores and sales by size of stores

[Sales are expressed in thousands of dollars]

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$1,000,000 or more..
$500,000 to $999,999..
$300,000 to $499,999
$200,000 to $299,999...
$100,000 to $199,999.
$50,000 to $99,999...
$30,000 to $49,999...
$20,000 to $29,999.
$10,000 to $19,999....
Less than $10,000.

20, 209 55, 625 89, 175 108, 619 260. 590 982, 193

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2, 426, 450

934, 186 1, 114, 500 1,082, 853 2, 680, 627 3, 743, 971 3,341, 418 2, 604, 287 3,635, 055 3, 466, 797

9. 69 3. 74 4. 45 4.33 10.70 14. 96 13. 35 10. 41 14. 52 13. 85

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3.21 8.35 11.45 11. 24 20. 27 43.66

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Data from Census of American Business, Retail Distribution, vol. I. United States Summary: 1933

Mr. Rich. Do you have the rate of pay of the clerks in the big stores and that in the little stores? Mr. BARNHART. No, sir.

Mr. Rich. I wish I could get that. I think you will find that the clerks in the little stores in the country get more money than the clerks in the big stores.

Mr. FITZPATRICK. Is that the reason why there isn't such a profit?

[graphic]

COMPARISON OF SALARIES PAID IN SMALL STORES WITH THOSE OF LARGE

CORPORATIONS

Mr. Rich. They take care of their own people in the little stores better than these large corporations in the big stores.

I want to tell you right here, and I want to say this for the record, that if we don't do something to protect the little fellow in the little store, these big fellows are just going to clean them up.

Mr. FITZPATRICK. I am glad to hear you talking that way.

Mr. Rich. I am opposed to the big fellows in business when they don't do the right thing.

Mr. FITZPATRICK. They have no interest in the community whatever,

Mr. Rich. Absolutely.

Mr. BARNHART. The program that is proposed by section 2 of the George-Deen Act is mainly a program for helping the workers' especially the managers in the stores with less than $50,000 sales.

Mr. Rich. I wish you could collect information as to what these big fellows are paying their clerks. I am not speaking of the managers, but what they are paying their clerks in the stores as compared to what they are paying the clerks in the little stores. I am sure that you will find that the little fellows take care of their people a whole lot better than the big ones do.

Mr. BARNHART. According to a Federal Trade Commission report on chain stores covering 1 week of January 10, 1931, independent grocery stores reported an average weekly wage of employes of $18.57, whereas chains in the same field reported an average weekly wage of $15.51. In the case of grocery and meat stores the independents paid $21.22 while the chains paid $18.11, and for drugs independents paid $23.88 and chain stores paid $20.91. Independents include department stores.

We are unable to get specific data, in the manner in which you request it, for stores of $50,000 and less.

The program that we envisoned under this new authorization of section 2 of the George-Deen Act is a program to be primarily for the salespeople in all kinds of stores and the managers in the small stores, those with sales less than $50,000 a year. It is mostly the small-store employees who are going to be reached. The program will help all these small-store distributive workers to do their jobs better and will provide part-time classes in the high schools to prepare more youth for distributive occupations. Some of the classes can be organized on an apprenticeship basis to prepare youth for the time when they open up small stores of their own. That is all I have to say about this subject unless there are some questions.

COOPERATIVE VOCATIONAL REHABILITATION OF PERSONS DISABLED IN

INDI'STRY

Mr. Rich. The next item is that dealing with cooperative vocational rehabilitation of persons disabled in industry. You are asking for $1,800,000, which is $91,000 less than the current appropriation.

Dr. STIDEBAKER. The justification for that is as follows:

COOPERATIVE VOCATIONAL REHABILITATION OF PERSONS DISABLED IN

INDUSTRY

The act of June 2, 1920, as amended, provides for the promotion of vocational rehabilitation of persons disabled in industry, or otherwise, and for their return to civil employment, section 531 (a) of the Social Security Act provided additional funds for the fiscal year 1936-37, and authorized an annual appropriation of $1,938,000 thereafter.

The amount appropriated for 1937 was $1,891,000. The estimate for 1938 in the amount of $1,800,000 represents a reduction of $91,000, with the provision that the apportionment to the States shall be computed on the basis of the total amount authorized. This provision is necessary, in view of what is known as the Couzens' amendment, which provides "that such portions of the sums allotted that will not be used in any fiscal year may be allotted in that year proportionately to the States which are prepared through available State funds to use the additional Federal funds." The unexpended balances in any year remain in the State treasuries and the respective amounts are deducted from the allotments for the ensuing year. On the basis of the unexpended balance reported by the States during the fiscal year 1936, it is estimated that $1,800,000 will be sufficient to meet the allotments for 1938.

Dr. STUDEBAKER. We have not discussed vocational rehabilitation. I don't know whether you have any questions that you wish to ask about that program?

The appropriation is the same as it was last year. The program is the same. That is the program of taking those who are crippled and handicapped and helping them to fit themselves for suitable vocations and assisting them in securing satisfactory employment. .

Mr. FITZPATRICK. That is a very important part of this vocational training.

Dr. STUDEBAKER. It is. But there is nothing radically changed in the whole program.

SALARIES AND EXPENSES, VOCATIONAL EDUCATION Mr. Rich. For vocational education, salaries, and expenses, the appropriation was $192,000 last year, and your estimate for this year is $264,060. That is an increase of $72,060; but you have consolidated under salaries and expenses in the further development of vocational education for much of the amount of the last year, $73,000; so that would still be a reduction in your overhead. That would be satisfactory.

PROMOTION OF VOCATIONAL REHABILITATION IN HAWAII Mr. Rich. We will take up this item for extending to the Territory of Hawaii the benefits of vocational education, $30,000.

Dr. STUDEBAKER. Our justification for that is as follows:

This appropriation provides for cooperation with the Territory of Hawaii in the promotion of vocational rehabilitation of persons disabled in industry or otherwise and their return to civil employment.

Although the act authorizing this appropriation was approved on March 10, 1924, the Territory did not accept the provisions of the act until 1936. The program was inaugurated during that year, but the Office of Education was not notified of the acceptance in sufficient time to include an amount in the regular estimates. A supplemental estimate which was included in the deficiency appropriation bill provided $833 for a portion of the year but was not available until June 22, 1936. The appropriation was made too late to permit the Territory to plan an expenditure, and the Federal funds were not used.

The total amount authorized, $5,000, was appropriated for the current year, and the estimate for 1938 is in the same amount.

Mr. Rich. In Hawaii the amount is $30,000, which is the same as last year.

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