Impresario

“ ALTHOUGH an operatic impresario cannot reasonably count on making his own fortune, it is often a source of satisfaction to him to reflect that he in his lavish expenditure makes the fortune of singers, officials, and various people in his service. At the time when I was in my greatest trouble through the disappointments I had to put up with from some of my leading singers, I heard that an enterprising Italian who had been employed by me for many years had taken the New York Academy of Music for a brief season, and that he was actually performing the duties of manager. ”

“ Young Peal managed to raise enough money to enable him to go abroad. There he learned singing according to all the rules of the art, and in a few years’ time he was a very great singer indeed. He earned much money and travelled with his own impresario.
Peal was prospering now and found no difficulty in saying “I will,” or even “I command.” His “I” grew to gigantic proportions, and he suffered no other “I’s” near him. ”

“ At home, as everybody knows, in their own country they receive in about a year as much as they are paid in a month in America, the streets of which the average Italian singer imagines to be paved with gold coins. As to the success or failure of the venture of the impresario they are supremely indifferent, but pertinaciously continue to demand the utmost farthing, no matter how badly things may be going. Lyric artists are, as a rule, the most grossly ignorant people on all subjects, except their own special art, and money. ”

“ But his business ability was of a broader type than was needed for such services only, and in the process of evolution, through which the old-fashioned broker was practically eliminated, his place being taken by a new type of dealer, who although not always or even usually trading for his own account, yet makes most of his transactions in his own name, and is chiefly differentiated from the jobber only from the fact that he buys and sells in round parcels and does not break them up to shop out into smaller lots. ”

“ The railroad, the theatre, the inn-keeper, are as fairly in trade, as fairly merchants, as the ship-master, the banker, or the broker. A mercantile contract is not necessarily for the payment of money. A bill of lading is for the delivery of goods; yet it is admitted that the custom governs. ”

“ The general retail merchant is compelled to transact business with a great number of wholesale dealers, to whom he pays cash in hand, or agrees to pay it at some future period, say, in four, six, nine, or twelve months. ”

“ This warehouse-keeper, or wholesale-man, sells the goods which he buys of the merchant—I say, he sells them to the retailers, and it is for that reason I place it first there. Now, as they buy in smaller quantities than he did of the merchant, so he deals with more of them in number, and he goes about among them the same Saturday, to get in money that he may pay his merchant, and he receives his bag full of promises, too, every where instead of money, and is put off from week to week, perhaps by fifty shopkeepers in a day ”

“ Retail dealers, selling the merchandise of others at prices prevailing at particular localities and times shall hand over to the wholesale dealers as much of the sale proceeds and profit as is realised by them. ”

“ The company were to be enabled to purchase lands, &c., and to exercise all the usual powers of bodies corporate; but were not to trade in the buying or selling of any goods or merchandise, except that they might deal in bills of exchange, and in buying and selling of bullion, gold, or silver, and in selling of any goods or merchandise which should be pledged to them for money lent thereon, and might also sell the produce of their own lands. ”

“ I was vexed at this; but the chief of the brokers said to me, ‘O my lord, I will tell thee how thou mayst make a profit of thy goods. Thou shouldst do as the other merchants do and sell thy goods on credit, for a fixed period, on a contract drawn up by a scrivener, and duly witnessed, and employ a money-changer and take thy money every Monday and Thursday. So shalt thou profit two dirhems for every one; and besides this, thou canst amuse thyself meanwhile at leisure in viewing Cairo and the Nile.’ Quoth I, ‘This advice is good;’ and carried the brokers to the Khan. ”

“ The factor often provides a store, together with a complete selling and office force, and every facility for receiving, storing, selling, and shipping the goods, and for financing the business. The salesmen of the house travel throughout the country, reaching all the important markets, and the managers of the different departments, who thus understand the needs of the market, are in a position to advise the mill with intelligence and exactness as to the kind of goods which should be made to meet the requirements of the trade. ”

“ The wholesale dealer, by affording a ready market to the manufacturer, by taking his goods off his hand as fast as he can make them, and by sometimes even advancing their price to him before he has made them, enables him to keep his whole capital, and sometimes even more than his whole capital, constantly employed in manufacturing, and consequently to manufacture a much greater quantity of goods than if he was obliged to dispose of them himself to the immediate consumers, or even to the retailers. ”

“ This is the constant multiplication of intervening agents—middle-men, factors, brokers, speculators, contractors, and distributors of every sort—between the producer and the consumer, or between the primary owner and the ultimate owner of almost everything which is the subject of ownership and trade. Those two, who are the actual persons brought chiefly into relationship by the thing in question, are put quite out of sight of one another in most of the transactions of modern industry and commerce ”

“ The manufacturer supplies the wholesale dealer; the wholesale dealer provides the retail tradesman; and the retail tradesman carries on his business with his customers upon the sure foundation of credit. Not a coin is seen in the hands of either party from one year’s end to the other; and a man’s wealth is known not by the mere exchangeable property he possesses, but by the extent of the credit he is allowed. Political economy is a wonderful science, sir; and the ancients were entirely ignorant of its true principles. ”

“ He acts “as a middleman, bringing people together to trade, or trading for them in the private purchase or sale of any kind of property, which property, ordinarily, is not in his possession.” The charge for his service is usually in the form of a commission, sometimes called brokerage. There are several classes of brokers, named according to the kind of commodity they deal in; for instance, there is the exchange broker, the note broker, the insurance broker, the stock broker, the real estate broker, the merchandise broker, etc. ”

“ This especially respects those people, who deal in heavy goods, as wholesale grocers, salters, brasiers, iron-merchants, wine-merchants, and the like; but does not exclude the dealers in woollen manufactures, and especially in mercery goods of all sorts, the dealers in which generally manage their business in this manner. ”

“ Most wholesale merchants are content to confine themselves to one branch of trade: lumber, iron, wool, leather, grain, etc. Most of these merchants, moreover, rely further on specialists to help them with certain parts of their business. They depend constantly on the banker, the speculator, the broker, the forwarder, the warehouseman, the commission merchant, and agents of many different kinds. It is impossible, in this book, to do more than suggest the complex commercial organization which has grown up in the course of the century. ”

“ He has capital invested also in the raw material which he intends to convert into some article of utility. He works up his raw material; he makes advances for the labour required in working it up. The article is at length ready for the market. The wholesale dealer, who purchases of the manufacturer, sells to a retailer, who is in the habit of buying upon credit, long or short, because the article remains a certain time in his hands before it reaches the consumer, who ultimately pays for it. ”

“ Third Case.—The third case shows the firm in a position to demand something more than book values as the basis for admission of the new partner. The presumption is that the old firm is favorably known, has an established trade and patronage, built by fair dealing and judicious advertising, by its favorable location, and the numerous other ways in which a substantial business may be developed. Its standing in the community is a factor of value to the firm because it brings trade to its doors. ”

“ These persons, in ordinary times, act as salesmen or agents, and make up assortments of goods at the market price, for the use of the home or foreign dealer. They possess large warehouses in which to make up their orders, or keep in store articles purchased during periods of depression ”

“ The wholesale trade is conducted by three classes of persons: dealers or merchants, commission men, and brokers. The dealer is one who buys the goods outright and takes his own risk on making a favorable sale to the retailer. The commission man is one who receives the goods, sells them at such price as he may be able to obtain and remits to the seller the amount obtained less expenses and his commission. The broker is a man who effects a sale without coming in contact in any way with the materials sold. ”

“ Those brutes of keepers who beat you told me that at the first touch of the lash you gave a terrible jump the length of your chain. But, you see, friend Bull, if I offer you to the purchasers with the dangerous account which you give, I shall find few customers. An honest merchant should not boast his merchandise too much, no more should he underestimate it. ”

“ By this method a shopkeeper is able to stock his shop, or warehouses, with two or three times as much goods in value, as he has stock of his own to begin the world with, and by that means is able to trust out his goods to others, and give them time, and so under one another—nay, I may say, many a tradesman begins the world with borrowed stocks, or with no stock at all, but that of credit, and yet carries on a trade for several hundreds, nay, for several thousands, of pounds a-year. ”

“ The absent entrepreneur would be, in the eye of the law, the purchaser of all the elements which go into the product, since all the purchases are made in his name. The managers are only his agents, and when they buy raw materials or supplies for the mill, they buy them for him and by his authority, and he is under the obligation to pay for them. ”

“ The producers almost frantically competed for favor with the jobbers and for the dealers' trade—and took readily, perhaps necessarily, to competing in terms which would most immediately satisfy the jobbers and dealers, that is, in terms of direct profit to the dealers. ”

“ Some, with more enterprise or capital than others, buy by wholesale, and sell to others with less capital. A few, standing on the street corners, have regular customers who pay or not, as the case may be, each night; and as the business men pass, one after another, the papers are handed to them almost as rapidly as tickets at a crowded concert-room. ”

“ To protect ourselves from loss in our sales for London account we had to take from time to time an interest in the market and this made us dealers. To complete our sales we were compelled to import the material and thus became importers.
With the opening of the year 1889 we found ourselves possessed of fairly large capital and a firmly established credit with bankers. These facts, combined with the best facilities for doing the business, decided us to eliminate the brokerage phase entirely, except in our transactions with our speculative clients. ”

“ The said salesman shall, subject to the control of the said firm, keep proper books of account, and make due and correct entries of the price of all goods sold, and of all transactions and dealings of and in relation to the said business, and shall serve the said firm diligently and according to his best abilities in all respects. ”

“ The bucket shop proprietor is ready to make all deals offered in any commodity that fluctuates in price. He may call himself [Pg 474] banker and broker, or commission merchant, or disguise his business under the form of an incorporated enterprise or exchange. But he is still a common gambler. The interest of the proprietor of a bucket shop is at all times opposed to that of his patrons, as the profits of the shop are measured by the losses of the patrons. ”

“ There are various grades of merchants. They might be classed and symbolized according as they use a basket, a wheelbarrow, a cart, a stall, a booth, a shop, a warehouse, counting-room, or bank. Still all are the same thing—men who live by buying and selling. A ship is only a large basket, a warehouse, a costly stall. Your peddler is a small merchant going round from house to house with his basket to mediate between persons; your merchant only a great peddler sending round from land to land with his ships to mediate between nations. ”

“ The merchant or manufacturer protects himself against his risk of loss by making another addition to the price of the goods he sells. Usually the goods pass through several hands; those of the jobber, the Western or Southern wholesale dealer, and the retailer, before they reach the consumer. ”

“ Each merchant could ship on his own a certain number of cloths each year, the number depending on the length of his membership in the company. He could sell them himself or by his factor at the place where the company had privileges of market. Strict rules governed the conduct of each member. He was to make sales only at certain hours on specified days. All disagreements were to be settled by the company's governor, or his deputy in residence, and those officials dealt with such disputes as arose between members of the company and continental officials and buyers. ”