Filene Feud

Nationally famed is Edward Albert Filene, originator of the Bargain Basement, president of Boston's William Filene's Sons Co., prolific publicist. Not so well known is his brother, Abraham Lincoln Filene, Board Chairman and General Manager of the Filene company. Last week, however, the brothers disagreed and Brother Abraham emerged.

Unkind were the public words said about Brother Edward by Brother Abraham. It appeared also that Brother Abraham, backed by Vice President Louis Frost, represents the majority interest in the department store stock.

The fraternal quarrel arose from Filene expansion plans. Having last winter acquired Boston's R. H. White Co. (TIME, Dec. 10), the Filene management next discussed merger arrangements with Abraham & Straus, Inc., of Brooklyn and with F. & R. Lazarus & Co., of Columbus, Ohio. Feeling that the proposed consolidation would submerge individual prominence and kudos, Brother Edward Filene secured a temporary injunction prohibiting transfer of Filene stock to the holding company which was being planned to operate the three stores. He maintained that he had been disregarded in the merger plans, that no merger should be permitted without his having the opportunity to examine and approve it. Said the Brother Abraham faction in reply:

"For several years the plaintiff [Brother Edward] has arbitrarily and unreasonably opposed . . . well chosen plans . . . approved unanimously by other directors, who repeatedly indulged the plaintiff in many ways because of his past relationship to the business and to one of the defendants." The defendants said that merger plans had been discussed, but had not been finally completed, and did not violate an agreement which Brother Edward said was made with him last July.

The best merchandising idea of Edward Albert Filene was probably the Bargain Basement, which, first known as Filene's Folly, has since been widely copied. Basement merchandise was sold on the plan of reducing the price for every week that the goods remained unpurchased. Thus a dress might have a first price of $25, and, if not sold at this figure, go down to $22, to $20. to $18 until someone finally bought it. Many a thrifty Boston housewife, eyeing some Basement article, would stand torn with indecision, balancing her chance of waiting another week and getting a lower price. Forward-looking Brother Edward also secured for Filene's site a strategic corner where Boston's rapid transit trunk lines (Washington Street subway and Dorchester-Cambridge subway) meet. Generous, impulsive, Brother Edward Albert Filene stored up much Filene goodwill through his habit of giving away merchandise, particularly to children.

Aside from being a quiet, unpublicizing executive who has run a big store well, Brother Abraham's chief claim to fame is the Retail Research Association which he organized in Manhattan to effect interchange of operating ideas between big department stores. Like Brother Edward he, normally Republican, was a Smith Democrat. When Prohibition came, he sold his cellar.