Authors:
Historic Era: Era 7: The Emergence of Modern America (1890-1930)
Historic Theme:
Subject:
July/august 1990 | Volume 41, Issue 5
Authors:
Historic Era: Era 7: The Emergence of Modern America (1890-1930)
Historic Theme:
Subject:
July/august 1990 | Volume 41, Issue 5
People who obtain their view of the world only from movies and television know that business-men come in three varieties. They can be crooks (Wall Street), incompetents (Tucker), or both (The Solid Gold Cadillac). Those of us who live in the real world know that businessmen come in the same infinite variety as any other group of human beings. A few are even saints. One of these was named Nathan Straus.
Born in Otterberg, in Rhenish Bavaria, in 1848, Nathan Straus was the second of the four children of Lazarus Straus. In 1852 his father immigrated to America, and in 1854 he sent for his wife and children. Unlike most Jewish immigrants, Straus did not settle in a major city. Rather he opened a small store in Talbotton, Georgia, where his children attended a log-cabin schoolhouse. Being hundreds of miles from the nearest synagogue, the family went to the Baptist church. The local preachers were awed, to put it mildly, by Lazarus Straus’s ability to read the Old Testament in its original language. To them, it was like hearing the word of God directly.
During the Civil War, Lazarus Straus acquired a large stockpile of cotton, but in the disorders that followed the fall of the Confederacy, the cotton was burned, and he was wiped out. Undaunted he moved his family to Philadelphia and then to New York City. There he opened L. Straus & Son, importers of fine china and glassware from Europe, in partnership with his eldest son, Isidor. (In 1912, Isidor would refuse to enter a lifeboat while women and children remained aboard the Titanic. He was lost along with his wife, who preferred death at her husband’s side to life without him.)
Nathan joined the family business in 1866. The company began operating the R. H. Macy & Co.'s china and glassware departments under lease in 1874, and Nathan soon showed the sort of merchandising savvy that brings customers into a store and keeps them coming back. In 1888, the Strauses acquired a half interest in the company and a decade later became its sole owners. At Macy’s, Nathan came up with the idea of the depository account (an early version of the layaway plan). He provided rest rooms for customers and had emergency medical care available.
Macy’s expanded steadily as the Straus family introduced more and more innovations. The Strauses invented bargain sales and exhibitions. They introduced odd-pricing ($15.95 instead of $16.00) to give the customer the psychological sense of getting a bargain (and, by forcing floor clerks to get change from cashiers, making it more difficult for them to pocket the cash). By 1902, when Macy’s moved to its present location in Herald Square, it was the largest store in New York City. By then the family had also started the highly successful Abraham and Straus store in Brooklyn and become very, very rich.
But money making had never