Publicized Business

During the past four weeks the investing public has had more opportunities of buying into great family businesses. The trend described by Paul M. Mazur of Lehman Bros.* and by more subtle economists, goes on.

Draper. In 1849, when Zachary Taylor became president, Joseph Home began a store which as Joseph Home & Co. was to be Pittsburgh's oldest department store. Shortly he took on as partners C. B. Shea and A. P. Burchfield. Their business grew. Their children went into the business. Burchfields married Homes. Grandchildren of the first partners received their schooling and joined their parents in the Joseph Home Co. Joseph B. Shea, son of Joseph Home's partner, C. B. Shea, is now president of the company.

The continuity of progeny in the management meant continuity of operation policy. Said President Joseph Bernard Shea recently: "The store's merchandising, policy demands complete stocks of medium and better grade merchandise, and places importance on style leadership. Seconds and substandard or imperfect merchandise are not bought, sold or advertised. The store is a regular and consistent advertiser, combining style and price appeal with greater emphasis on regular year-round business than upon special sales. The present trend away from sale stores and sensational price appeal and toward businesses with established standards of quality and value greatly favors the growth of the Joseph Home Company business, which has been outstanding and consistent in these policies."

No empty blowing through a conch was this statement. In 1901 the company's business totaled $4,294,062; last year it was $20,697,731. Last year's profits were $1,226,396.97.

The concern was in good condition for refinancing, for letting the investing public share in it. Lehman Bros, of Manhattan took the initiative; Field Glore & Co. of Manhattan and J. H. Holmes of Pittsburgh joined them in the underwriting. Joseph Horne Co. was incorporated for $7,500,000 preferred stock and 240,000 shares of no par common stock. But, although Home's department store was thus a quasi-public institution, no preferred stock was sold, and only 40,000 of the common. That common already is listed on the Pittsburgh stock exchange, but is closely held. Homes, Sheas and Burchfields still own as well as operate what in most respects is Pittsburgh's finest department store--just as the Gimbels own and operate their six "publicly owned" stores--in Manhattan (3 stores), Philadelphia, Milwaukee and Pittsburgh.

*In his book, American Prosperity: Its Causes and Consequences (TIME, April 16).