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MERCHANDISE ON THE
TOBOGGAN
(Georgia)
"I don't think there is the least doubt
about a general improvement in business." Said William Anderson, who is
the head at the firm that bears his name. "There is much more money in
circulation. People are buying new automobiles, are spending more money
for pleasure and are even beginning to resume the purchase of luxuries
that have been beyond their reach for the past several years. Times are
gradually changing and money is beginning to drift through different
channels.
"And now to start at the beginning, I was born and reared in Augusta, and
obtained my elementary education at the Davidson Grammar School, which is
located on the 1200 block of Telfair Street. Then for some reason I didn't
attend High School in Augusta, but graduated at Hephzibah, Georgia. No, I
didn't go to college.
"I wanted to go to work so, after my graduation I started working for my
father, who was in business with a Mr. Brown. The firm at that time was
known as Brown and Anderson. Dad paid me $40.00 a month."
"This conversation seems to gather momentum as we go along," Anderson said
with a grin. "Suppose we repair to my little office at the rear of the
store. Its small but I think you will be very comfortable." The remainder
of our interview took place in the very tiny enclosure that served in this
capacity. There were quite a number or interruptions, for Mr. Anderson is
a busy man and his business reaches out into the trade territory adjacent
to Augusta.
"I hadn't been working very long when one day my father called me into his
office and said:
"'Son, before you settle down to steady work, I should like for you to
travel for about a year. Look around and see if one of your friends would
care to go to Europe with you.'
"This was not hard to do for almost immediately I found a boy who was
eager to go along. And to make it more interesting we decided to use
bicycles as our mode of transportation.
"In this manner we covered the ground thoroughly and we were able to come
in direct contact with the natives. We thus became familiar with their
manner of living, their habits, etc. That year in Europe was an education
in itself.
"We soon became aware that the natives, even the French people, had a more
friendly feeling for Americans than they had for Englishmen. We got our
information on this point in rather a unique manner:
"My friend and I purchased our bicycles and our suits in England.
Consequently we were taken for Englishmen. On one occasion when we were in
a French cafe, we started to converse with several Frenchmen. After quite
a while we mentioned something about our home in America. When these men
found we were really Americans they jumped up and shook hands with us,
although they had been talking to us for quite some time.
"In Europe, all Americans are supposed to possess a lot of money. One day
in Brussels, Belgium, we went into a shop to make some purchases. I saw a
beautiful lace collar and immediately wanted it for my mother. I offered
to pay for it in French currency.
"We can't handle that kind of money.' Said the shopkeeper.
"I then handed him a check on an English bank, with this result:
"'We cannot cash the check!'
"You can imagine how astounded I was after, some casual remark had
revealed the fact that I was an American, to hear him say with a complete
change of attitude:
"You can charge the collar and send me the money when you go back to
America.'
"As the man had never laid eyes on me before you can bet that I was
greatly pleased to find that my countrymen enjoyed such confidence among
foreigners.
"Well, for a whole year my friend and I toured Europe on our bicycles. We
came back to America feeling that we had experienced a very beneficial
period abroad to say nothing of the pleasure it had given us.
"After another six months my father said he was ready for me to go to
work. So I again started in with his firm and stayed there for the next
several years.
"In 1912 I opened my own wholesale grocery business, operating under the
firm name - W. M. Anderson Grocery Company. It was rather slow sledding
for the first two or three years and then sales began to increase
gradually.
"In 1917, which was my very best year, my gross sales amounted to
$860,000, with a net income of $30,000. Out of that I paid the government
for income taxes, excess profit taxes, etc. My total taxes for that year
including - State, County and City taxes - amounted to $10,000.
"The following year they were not so heavy, but four or five years later
the government called on me again for additional taxes amounting to
between $600 and $700. I had to borrow the money to pay this tax, because
just as we had made quite a nice profit on the advancing market, we almost
immediately lost it on stock depreciation and on bad accounts. We really
lost more on bad accounts than on depreciation of stock.
"Another thing that made our losses heavy when the markets declined was
that we catered to the canteen at Camp Hancock during the War. That left
us with quite a bit of merchandise on hand that was not suitable for our
regular trade. This was bulk goods such as pails of jams, and jellies, and
cocoa.
"One who has never operated a business of his own can never have any idea
of what shrinkage means when merchandise starts on the toboggan. Take
sugar, for instance. My firm was very fortunate in having a very small
stock of sugar on hand at the time of the decline and yet our loss on this
commodity alone was over $3,000.
"When sugar was advancing we were only
allowed to add 35 cents per hundred as profit. But when it started down
nobody helped us out on the declining market.
"Of course, the retail merchants would not buy sugar or anything else
until they were entirely out, anticipating cheaper prices. As I said
before, my firm was fortunate in not having a large stock of sugar on
hand. There was another jobber in Augusta who told me that he had lost
more on sugar alone than his capital stock amounted to when he went into
business in 1912.
"Conditions became so acute during that period that we would often have to
contract for merchandise at the higher figures, and then, no sooner had we
bought at the higher prices than the goods would begin to roll in with the
market broken all to pieces.
"One time we contracted for 200 coils of rope. Just after placing that
order I realized that I had probably made a big mistake. When I looked up
the order I found that the salesman had failed to leave his address and I
didn't know where to write to cancel the contract before the decline
started.
"After the rope prices had struck bottom, in rolled the shipment. Instead
of the average 35 pounds to the coil it averaged 85 pounds. I have never
seen plow line rope put up in that size either before or since.
"I immediately sent one of my representatives to the mill, which proved to
be not very far away, to try to make a settlement. We finally settled for
$700.00 and didn't use the shipment.
"After that time we struggled along for three or four years, but realizing
that our grocery business had become unprofitable, we decided to
discontinue it and concentrate all of our efforts an something more
remunerative.
"For quite some time we had carried a separate line of wrapping paper,
paper bags, notions, etc., in connection with our grocery business. A
separate corps of clerks was employed for this particular line.
"After discontinuing the grocery business we organized a company which
operated under the firm name of the W. M. Anderson Paper Company and
carried the above mentioned commodities.
"In connection with our regular line, we also buy distress stocks of
merchandise, which consists of restaurant equipment, store fixtures, and
scales, etc., for resale.
"Naturally, all during the depression conditions were very trying and it
was somewhat difficult to keep going. However, by patience and
perseverance we have managed to hold on.
"Our come-back has been anything but spectacular, as a matter of fact it
has been extremely gradual. But at least we are making a living out of
it."
"Mr. Anderson, your wife sold real estate for some time, did she not?" I
asked.
"Yes, she did." He replied. "And while the real estate business was good
she was intensely interested in her work. However, after several years as
a realtor she relinquished the business and again resumed her home and
social duties.
"As I told you in the beginning business is decidedly on the up-grade.
Folks are beginning to enjoy many things that they had begun to think
belonged to halcyon days long past.
"Well, I must say your last question changes the subject to a considerable
degree. Yes, I have been a member of the Baptist Church for quite a number
of years.
"My family is the only hobby I've ever had. I have concentrated my
interest entirely on them.
"Surely, Mr. Anderson, a man who has taken such a prominent part in the
business world must belong to several fraternal orders?" I questioned.
"No," he replied, "I guess it does seem somewhat strange to you, but I
have never joined even one. I'll have to tell you about the only club I
ever belonged to. It was just a social club and it was when I was a young
fellow. The main motive was to get "our set" together and take a long walk
in the country on Sunday afternoons. We enjoyed those little gatherings
very much for awhile, until the boys and girls began to 'pair off' then
they become engaged and finally several couples got married.
"In a short time interest in the club began to wane and later it was
broken up.
"My wife and I were married in 1906. We have four children - three girls
and a boy. All of the girls are married and have families of their own.
One of our daughters married a man from Buffalo, New York, and the other
two are married and living here in Augusta. Our son has never married.
After finishing his education at Buffalo, he decided to make his home
there. So you see we have two children in New York.
"Our daughter who lives at Buffalo is married to a man whose business
occasionally takes him to Europe. She always accompanies him on these
trips.
"At one time when their baby was six months old, he received orders to go
abroad. His mother was visiting in Chicago while enroute to California.
His wife refused to go with him on account of leaving the baby, but
finally they decided to ask his mother to defer her trip until a later
date and return home to take care of the baby for them. The baby had a
very competent white nurse but my daughter felt that he must be in his
grandmother's charge as well.
"I remember on one occasion when this girl of ours brought her family
South to visit us they brought the baby's nurse with them. We realized
immediately that she was no ordinary nursemaid. Our daughter explained
that she was a penniless Russian baroness, who had refugeed to America and
that she was forced to use this means of earning a livelihood.
"Speaking of these European trips, I recall one instance when my daughter
did quite some flying. She and her husband landed in Belgium. There was an
invitation waiting for her to visit a friend who lived in Berlin. She flew
over there and visited for a few days. Then she boarded a plane and flew
to London where she joined her husband for the journey home.
"And now, I promised before we closed to give you my personal impressions
as to the cause of the economic depression. It is my belief that inflated
prices were at the bottom of the whole thing. The high prices had to come
down and as soon as the demand lessened, prices came down in a hurry.
"As long as the United States was willing to extend credit to the European
Nations they were anxious to buy. However, as soon as credit was no longer
available they were forced to stop buying.
"Now as you know Finland is the only nation who has met her obligations to
America, and that is one reason why I feel that the United States should
show her confidence in that valiant little country and render her every
assistance in this - her time of distress.
MERCHANDISE ON THE
TOBOGGAN
A Depression Victim Story
Written by: Mrs. Daisy Thompson
Augusta, Georgia
Edited by: Mrs. Leila H. Harris
Supervising Editor
Georgia Writers' Project
Area 7
Augusta, Georgia
February, 7 1940.
J. T. Bothwell, Merchant
613 Broad Street
Augusta, Georgia
February 5, 1940
D. T.
Text from: Library of
Congress, Manuscript Division, WPA Federal Writers' Project Collection
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