James Cash Penney, 1875-1971, was born on the family farm in Missouri. He went to work in a dry goods store after high school. Soon afterward, because he thought the mountain climate would improve his health, he moved to Denver, Colorado. By age 23, he was working for the Golden Rule Stores, a small dry goods chain with outlets in Wyoming and Colorado. His ambition and hard work caught the eyes of the owners, and he was given the opportunity to invest in the company and to open his own store in Kemmerer, Wyoming, in 1902.

At the time, stores had the habit of charging different prices to customers of different social status. In the mining community of Kemmerer, customers were used to doing business on a credit basis. Penney changed both practices, clearly marking the prices on all items and refusing to grant credit. To the surprise of many who predicted failure, Penney's store thrived and Penney was able to buy several other Golden Rule stores.

Philosophy and Religion

By 1909, Penney had consolidated the chain's accounting and buying offices at a headquarters in Salt Lake City, Utah. Penney was a deeply religious man, the name "Golden Rule" was more than a marketing ploy. It became the backbone of his business. Customers were provided with quality goods at the lowest possible prices. Penney also emphasized customer service and money-saving buying practices, and was careful to hire competent managers.

In 1913, the organization had incorporated as the J.C. Penney Company and "Golden Rule" was phased out. The next year, the corporation moved to New York City. It issued "The Penney Idea," a mission statement which emphasized ethics and purpose. It also chose "Honor, Confidence, Service, and Cooperation" as the motto of the J.C. Penney Company.

The company grew through a system in which employees -- known as "associates" -- were encouraged to save a portion of their wages so they could open their own store. When the Penney's associate had saved one third of the cost of opening a new store, the associate's current manager would then put up a third of the cost of the new store, and Penney himself would provide the money for the last third. The profits would be split into three equal parts at the end of the year.

J.C. Penney recognized that like him, many of his associates had a limited formal education. Thus, the company's Education Department set up a correspondence course that associates could take without cost. In 1921, more than 90 percent of Penney's associates took advantage of this service.

By 1915, the company was operating 86 stores in 13 states; by the start of the 1920s, it had 197 stores; by 1929, it had 1,400 stores all over the country.

Philanthropy

The J.C. Penney Foundation was established to provide money for adoption agencies, youth clubs, vocational schools, homeless shelters, libraries, family guidance centers, health clinics, missionary projects, and peace organizations. The 120,000-acre Penney Farms, an experimental farming community was set up in northern Florida in 1923. Some of the land was set up as plots where industrious, but farmers could live and work. The Memorial Home Community for retired ministers, lay church workers, and missionaries was also established in Florida in 1926. Penney also supported the National 4-H clubs.