When James Cash Penney moved his dry goods business here in 1904, the building also housed a saloon, offices, and apartments. Over the next few years, young Penney worked on surrounding farms, raising pigs, trading horses, and growing watermelons. "At that time something happened to me which I cannot explain," he said later. He cut off the whiskey, lost the customer, and the butcher shop failed, Jim losing all his savings in the process. Callahan, the owner of the Golden Rule Mercantile Company Chaina company Penney would later buy-out and make into his own. It was there that she encountered prosperous, well-educated African Americans, and as a result, she began to consider how to improve her appearance. The company continued to grow by incentivizing store managers, and later employees, with stock. Within the Cite this article tool, pick a style to see how all available information looks when formatted according to that style. We are at home here. Today they are unsurpassed. 4. Our growth has not been chance. Much of the building served as the headquarters of the Madam C. J. Walker Manufacturing Company, a business which employed some 3,000 African-American women and men to manufacture and sell hair products and cosmetics. The following selections show both their determination and their dedication to meet those goals. He worked hard, learning the inventory and doing whatever tasks needed to be done, no matter how humbling. They believed that part of their mission was to help others to succeed as they had done. Before profit sharing and employee ownership became heralded management techniques, James Cash Penney used them to build the first nationwide chain of department stores. 3) To consider the role advertising played in the business success of Walker and Penney. We will supply you with durable and comfortable wearing apparel cheaper than ever before. 4. Do unto others as you would have them do unto you. 20 cents per large bar. Business was brisk on opening day, and Penney brought in an impressive $466.59. . By 1904 the Golden Rule Store (no longer standing) had outgrown its one-room frame building off the main business district of the town. By 1906, C. J. Walker moved to Denver and the two soon married. Shortly after his son's birth, the elder Penney, who combined occupations of stock farmer, Primitive Baptist preacher, and politician, moved his family to town so that his children could attend school. We have a good future for a man who is capable and not afraid of work.. Do you think it would have been effective? He said he saved $30 and it only cost him a postage stamp. C.J. The stores net worth had risen from $500 to $50,000 in the ten years since its 1889 founding. In a 25-by-140 foot section of the first floor, Penney developed and refined the merchandising ideas that led to the growth of his successful chain of stores. Why would the railway system in Indianapolis have been important to Madam Walker's business? Virtually overnight, the company dropped the frequent price promotions of prior leadership. The city was served by eight major railway systems and was home to a substantial African-American community. However, the date of retrieval is often important. Where was the first JCPenney? Company sales dropped precipitously, down about 30%, and profits became huge losses. The business, called "The Golden Rule Store," gave him an exciting new commercial concept. First days sales were a gratifying $466.59. But things would turn out all right, he was told, if he just followed the Golden Rule, treating others with fairness and respect. It is part of the J.C. Penney Historic District, which also includes Penney's first house. What similarities and differences can you list about how they conducted their enterprises? This is the first building constructed in Indianapolis to house the manufacturing operations of the Madam C.J. Kemmerer, Wyoming, United States. Each had well-defined philosophies about their goals in life. Despite Penney opening the companys books and sharing everything, and despite enthusiasm on the part of the other companies owners, the Penney company ultimately decided it could best preserve its unique sharing culture by remaining independent. A comparison of values is all we ask. Questions for Document 1 3) two advertisements for Madam Walker beauty preparations and Penney's Golden Rule Store; Another aspect of J. C. Penney himself was his ability to trust men, and to delegate. 25. My talk to you this evening is to be very brief and very much to the point. Ask them whether any buildings associated with these businesses remain. Penney remained chairman of the board until 1946, and after that, as honorary chairman until his death in 1971. U.S.A. It is a fitting tribute to a woman who once proclaimed, "Perseverance is my motto!" James Cash Penney Began as a store clerk after graduating high school. Bonhoeffer Transferred to Buchenwald Concentration Camp. (prolonged applause.)1. This faith and his financial arrangements with store managers worked profoundly well. She began selling her homemade products door-to-door in 1905 in Denver, Colorado. I am a woman who started in business seven years ago with only $1.50. Reverend Penney worked hard to instill ethics in his son. He developed one of the nations top herds of Guernsey dairy cattle in Florida and at Emmandine Farm in Dutchess County, New York. Penney's father was a Baptist preacher and farmer whose strict discipline included making his son pay for his own clothing once he reached his late pre-teens. What do they have in common? At age 8, young Jim was told he would have to start buying his own clothes and earning his own money. To serve the public, as nearly as we can, to its complete satisfaction. Even the Great Depression did little to halt the Penney expansion program. Create new beauty for yourself by using Madam C. J. Walker's famous beauty preparations. When to Buy. 3. But again, fate befell him: she died suddenly in 1923. The rest and medical attention did him good, but there was another event that restored him spiritually. 4. It was no longer about his own efforts, but God's. Fax: (501) 376-591, Galeries Lafayette S.A. . How did their efforts affect life today? Obtainable in rose-flesh and white. James Cash Penney was born September 16, 1875, to Mary Paxton and James Cash Penney, Sr., on a farm near Hamilton, Missouri. Jim wasnt happy, but went along with his fathers wishes. J.C. Penney: Merchant Prince. Walker Building" (with photographs) and "J.C. Penney Historic District" (with photographs), as well as other sources related to Madam Walker and J.C. Penney. Callahan advertised constantly, and included pictures of items in his ads, a rarity then. His stores were all located in inexpensive locations in small communities. Questions for Reading 1 Additionally, he married and found living in a healthier environment stimulated his goals, ambitions, and imagination. Why do you think Penney's first store was so successful? Report of the Fourteenth Annual Convention of the National Negro Business League, Philadelphia, PA, August 20-22, 1913, William H. Davis, Official Stenographer, Washington, D.C., 210-212. Before her death, Madam Walker planned an ambitious new building for her headquarters. Topics: The lesson could be used in American History courses in units on early 20thcentury business development. The manager agreed to train someone to take his place at the existing store. The cities marked in all capital letters indicate places where Madam Walker established or headquartered her business. ", The Daily Digest for Entrepreneurs and Business Leaders. If we follow the admonition to love God, and our neighbors as ourselves, it will lead us to understand that, first of all, success is a matter of the spirit. For your own sake we should have your business. The young man worked hard as a clerk and learned all he could about the business. Some of the remedy was grown in Africa, but I sent for it, mixed it, put it on my scalp, and in a few weeks my hair was coming in faster than it had ever fallen out. Standard 1A- The student understands the connections among industrialization, the advent of the modern corporation, and material well-being. The activity would be enhanced if you could invite a member of the Chamber of Commerce or a similar organization to visit the class and comment on the practicality of the students' ideas. The man who sold him the butcher shop said he could hold onto this key customer as long as he bought the hotel manager a bottle of whiskey each week. For your own sake we should have your business. His faith would remain a personal thing most of his life. In the midst of the Great Depression, one of America's leading businessmen sank into a personal depression of his own. As a result of the stores success, the Callahans lived in one of the nicest homes in town. Does the artist's conception of the first store seem idealized? Have them first develop a research plan and divide up tasks among class members. Walker, one of America's most successful African-American businesswoman of the early 20th century. The strength of each member is the team." Phil Jackson. 3. This issue was based largely on the book The Spiritual Journey of J. C. Penney, by Dr. Orlando L. Tibbetts, published by Rutledge Books (1-800-278-8533 or www.rutledgebooks.com). wife and our children were estranged from me. More than a thousand stores were launched in the Roaring Twenties, and the growth even continued during the Depression. National Negro Business League Ransom, her attorney and general manager, and Alice Kelly, the factory forewoman. Beasley, Norman. To improve constantly the human factor in our business. Prosperity and Thrift: The Coolidge Era and the Consumer Economy, 1921-1929. Offering a wide variety of relatively inexpensive general merchandise, J.C. Penney stores appeared in every state in the United States. By the end of the year, he had sold $28,898.11 worth of goods and showed a substantial profit. When one of his store managers had saved enough money, Penney would help him open a new store as part owner. J. C. Penney personally interviewed five thousand men in one year. 1. But when the economy caved in during the 1930s, Penney lost nearly everything--including his health. Incorporated: 1923 In your answer, compare and contrast their achievements. Jims big chance was a store 25-feet wide and 45-feet deep. She built a factory there that employed local African-American men and women. "2 In 1913, her daughter, who would later change her name to A'Lelia, persuaded Madam Walker to buy a house in Harlem as the New York base of the business. "3 She later divorced Walker, putting the 21-year-old Lelia in charge of the mail-order branch of the business while she traveled around the country promoting the products. Each store became a mother store to others. Make sure to address the following questions: What did each person do? The business ultimately helped thousands of African-American women achieve financial success. Although seven stores had to be closed in 1933, the company's total profits were almost double those of 1932. Gale Encyclopedia of U.S. Economic History. (501) 376-5200 Thrift Drug celebrated its 50th anniversary in 1985; JCPenney's total year-end sales hit $13.6 billion. Walker Web page, owned and maintained by the great-great-granddaughter and biographer of Madam C.J. Employ, American Stores Company His rise to fame and fortune crashed with the stock market crash of 1929at age 56 he was $7 million in debt. In 1902, owners Guy Johnson and Thomas Callahan, impressed by his work ethic and salesmanship, offered him a one-third partnership in a new store he would open. Perhaps most importantly, he carried merchandise that his customers wanted, ensuring a rapid inventory turnover. We will supply you with durable and comfortable wearing apparel cheaper than ever before. . James Cash Penney. His father was a less-than-prosperous Baptist preacher who also farmed. He turned down higher offers from competitors. The address is 6l7 Indiana Avenue, Indianapolis, Indiana 46202. The building served as a center for the African-American community. Water was drawn from a nearby well and hauled up to their rooms by bucket and rope. 1. I have made it possible for many colored women to abandon the wash-tub for more pleasant and profitable occupation. Walker Perhaps you envy the girl with irresistible beauty, whose skin is flawless and velvety, whose hair has a beautiful silky sheen, the girl who receives glances of undoubted admiration. That business failed, however, reportedly because Penney refused to furnish free liquor to the chef of the local hotel, his largest client. Because of this profit-sharing arrangement with his store managers, J.C. Penney was called "the Man with a Thousand Partners," a phrase Penney used in his autobiography. Where to Buy. By 1903 Jim was also participating in buying trips, introduced by his partners to their many Eastern suppliers. It also began to enter Midwestern and Eastern markets. 5. This lesson is part of the National Park Services Teaching with Historic Places (TwHP) program. [CDATA[ That's what his bosses had done for him, and now he returned the favor to others. At the age of twenty-nine, J. C. Penney was well on to his way to becoming a wealthy man. Business is therefore as much religious as it is secular." His intentions . As the mall became a cultural phenomenon in the 1950s, the company was well positioned to cater to the needs of middle-income suburban America. One morning he awoke too early for breakfast and was wandering the corridors when he heard a hymn he remembered from childhood. His name lives on on over eight hundred stores across the United States. It shifted from its small-town Western base into a major national retailer as an anchor in malls from coast to coast. 3. Legends about him abound: that he would not hire someone who salted his food before trying it, because that meant he was pessimistic; that his executives had to leave tips when they lunched together, as he did not believe in tipping. That spring, his father died; among his last words were, Jim will make it. The house is open for tours by appointment at other times. . Penney opened the Kemmerer store on April 14, 1902. At the Fourteenth Annual Convention, Madam Walker was on the schedule, explaining to the audience how she had succeeded in the business world: In the first place I found, by experience, that it pays to be honest and straightforward in all your dealings. Johnson, Callahan, and Penney opened a store in another mining town, Cumberland, Wyoming, around the first of 1905. Other books about him includeJ.C. Penney: The Man with a Thousand Partners, by Penney as told to Robert Bruere;The Spiritual Journey of J.C. Penney, by Orlando Tibbetts, and the more recentJ.C. Penney: The Man, The Store, and American Agriculture, by David Kruger. Penney again found love, marrying Mary Kimball in 1919. In turn, the new manager would train others until they started up their own stores as one-third partners. He brought in good men willing to work from all over the United States, and funded everything. Locate Monument Circle, the historic center of the city of Indianapolis. Wilmington, Delaware 19801 He occupied a 25-by-140 foot section. The company store (and the 21 saloons in town) offered credit, but Penney's store was cash-only. Over time he recovered, more energized than before. . Study the advertisement and then refer to the partial transcript to answer the following questions. HCSC became the key letters: Honor, Confidence, Service, and Cooperation. "4 These employed women now were able to educate their children, buy homes, and support various charitable organizations. It already had a company store, but Penney came in with a cash-only policy, despite a warning from a local bank employee that three previous businesses had failed to compete against the credit offered by the mining company. Penney's childhood and early adult life appeared quite ordinary. Why or why not? A Chain of Good Men Penney stocked quality products at fair prices for mining and farm families. Reading 3 was compiled from materials provided by A'Lelia P. Bundles and the J.C. Penney Archives, Dallas, TX. Penney, who had borrowed against his stock and sold some to younger partners, saw the price drop from over $100 to $13. A bargain at 10 cents a bar. Over the next several years, the company first converted to a stock ownership system, but it was just as complicated: each store partner received a class of stock that only related to their store, and got dividends on that stock in proportion to their stores profits. As that happened, he renewed his support of various charities, putting millions of dollars into the Penney Retirement Community in Penney Farms, Florida, Christian Herald magazine, and more than 100 other organizations ministering in the United States and around the world.