Showing posts from category: Commerce & Business
Moby-Dick and the Peculiar Pecuniary System of 19th Century Whaling
ONE of the many memorable paragraphs of Herman Melville’s classic allegorical work of American fiction, Moby-Dick, is when the narrator/character Ismael speculates on what remuneration he might receive for signing on to the voyage of the whaler Pequod:
❝ I was already aware that in the whaling business they pay no wages; but all hands, including the captain, receive certain shares of the profits called lays, and that these lays were proportioned to the degree of importance pertaining to the respective duties of the ship’s company… I made no doubt that from all I had heard I should be offered at least the 275th lay—that is, the 275th part of the clear net proceeds of the voyage…what they call a rather long lay, yet it was better than nothing ❞.
As Elmo P Hofman elaborated in a 1926 essay, “the whaleman was not paid by day, week or month, nor was he allowed a certain sum of every barrel of oil or for every pound of bone captured” …his earnings came from a “specified fractional share” (a lay) of the net profits of the trip (cited in ‘How Profit Sharing Sent Captain Ahab in Search of Moby Dick, Joseph Thorndike, Forbes, 15-Dec-2015, www.forbes.com). Rather than being wage-earners the entire crew including the skipper were sort of joint shareholders in the commercial venture.
The 1956 film (with Gregory Peck as Ahab)
༘ ༘ ༘
The experiences of real-life whaling boats of the era of Melville’s novel offers insights into the synchronic system of divvying up the profits – if we look at the profits of the 1843 whaling voyage of the Abigail of New Bedford⚀, it reveals a 70/30 split of the dividends, 70% to the owners and partners and 30% sub-divided between the captain and crew (Lance E. Davis, Robert E. Gallman, Karen Gleiter, In Pursuit of Leviathan (1997)). This was pretty typical for the period of what has been described as “an oddly denominated profit-sharing scheme” (‘The Whaleman’s Lay’, Ahab Beckons, 04-Feb-2018, www.ahab-beckons.blogspot.com). A captain might score a lay of ⅛th whereas a ‘green’ hand might only net a ¹⁄₃₅₀th lay or worse, so the novice sea-hand Ismael was perhaps over-optimistic about his likely share (in the novel Ismael is offered an exceptionally long lay which after haggling hard he manages to have reduced to a more acceptable lay of ¹⁄₃₀₀th). So, like the unknowables or “known unknowns” of the stock exchange, a crew member of a whaling vessel engaging in this pelagic industrial arena, even if he knows what lay he had scored, still won’t have any idea of how much he’ll earn for his months and months of hard ship work. Everything hinged on the voyage’s profitability.
Then on top of all this there were deductions from a crew member’s lay when he did finally get the money… anything an ordinary whaleman purchased from the ship’s store during the voyage—tobacco, boots, clothes, etc—was subtracted from his lay. The same if he was given an advance to send to his family. A crew member, especially one with a very long lay, could easily end up in debt to the ship’s owners at voyage’s end (‘Life Aboard’, New Bedford Whaling Museum, www.whalingmuseum.org).
New Bedford Whaling Museum
ℭℭℭℭℭℭℭℭℭℭℭℭℭℭℭℭℭ
⚀ 50 miles south of Boston, from the early 1820s on it supplanted Nantucket as America’s foremost whaling port
Give it Your Best William Tell: The Crossbow through History
Obscure origins: Like so many things pertaining to the dark realms of antiquity it can’t be said definitively when the crossbow came into existence…at some point between the 7th to 5th centuries BC, the consensus of opinion says. What is pretty much settled is that it first appeared as a combat weapon in China. The Chinese employed it to good effect during the Warring States period (c.475 – 221 BC). Crossbowmen of this period comprised between 30 to 50 per cent of standing Chinese armies. The weapon was still popular during the Han Dynasty (late 3rd century BC to AD 220) but it’s popularity diminished after the Hans lost power, possibly due to the introduction of more resilient heavy cavalry under the succeeding Six Dynasties.
The crossbow in Europe, decline and reemergence: From ancient China the crossbow spread to Europe’s early civilisations. Its use was recorded in a battle at Syracuse (Sicily) as early as 397BC. The ancient Greeks were responsible for several early iterations of the crossbow namely the gastraphetes, a hand-held crossbow invented before 400BC, and the ballista, a small assault weapon capable of firing both stones and bolts, which the Romans copied and modified as a composite catapult-crossbow called a scorpio. The scorpio was lethally effective, offering marksman-like precision of its projectiles. The cheiroballistra or maniballista was another Roman variant on the crossbow with specific application as a siege engine. After the fall of Rome the crossbow fell out of use in the West until the 10th to 11th centuries AD when it was revived. The French used crossbows in siege warfare and they were in use during the epochal Battle of Hastings in England in 1066. France’s iconic heroine Joan of Arc was wounded by an English crossbowman in an attempted siege and the famous Plantagenet warrior-king of England, Richard the Lionheart, was killed by a bolt from a crossbow. The crossbow attached considerable prestige especially in England, so much so that only knights were permitted to own and use the weapon in war.
Crossbow or siege engine? As iron-based crossbows were improved and made more powerful and elaborate, the concept of the crossbow starts to merge with that of the torsion-powered siege engine (the former requiring only one man to work it while the latter needed several men). Certainly medieval sources seem to have conflated the two…different authors writing on the Crusader wars for instance have described the ballista alternately as a crossbow or a siege engine [Stuart Ellis-Gorman, The Medieval Crossbow: A Weapon Fit to Kill a King (2022)].
Evolution of medieval crossbows: In the Middle Ages the arbalest was popular in Europe. This was a decided technical advance in crossbows, improved by having a special mechanism for drawing back and releasing the string. Arbalests were larger and heavier weapons with metal-tipped bolts replacing the earlier wood-bolted crossbows, thus achieving devastating impact against the armour of the enemy. By the 13th century further technological improvements in the use of crossbows came with the advent of winches and various spanning mechanisms such as winch pulleys, cord pulleys, gaffles, cranequins, and screws [‘Medieval Crossbow’, Medieval Britain, http://medievalbritain.com]. The crossbow increasingly evolved into a defensive weapon, a composite crossbow–catapult of sorts, used to defend castles during sieges and favoured for its longer range capacity.
Crossbow versus longbow? Which weapon was more effective in medieval warfare situations? There is not a straightforward answer to this question because the two lethal projectiles had different strengths and advantages over each other. The (English) longbow had a flexibility and portability edge over the more clunky crossbow which need time (and sometimes assistance) to load. The crossbow however was more accurate including at distances in honing in on the intended target (with a range of up to 300m). The longbow having simpler parts was cheaper to manufacture and where it had clear advantage over the crossbow was in its frequency of shots. In the time it took the crossbowman to launch two or at most three bolts at the enemy, the longbowman could propel 10 to 12 arrows. The crossbow though perceptibly slower to load and much heavier to carry, required appreciably less strength to operate…it’s locking mechanism allowed the crossbowman to handle stronger draw weight so able to hold the bolt for longer with significantly less physical strain, which translated into better precision (‘Medieval Crossbow’). Another plus for the crossbow was ease of use, it required minimal training cf. the traditional bow which took years of training to master. The downside for the longbow in battle was that it couldn’t penetrate medieval armour as the heavier bolts could do. This didn’t seem to be a problem in the two most famous battles of the 100 Years War—Crecy and Agincourt—where the English bowmen triumphed completely over the numerically superior French and mercenary crossbowmen (and cavalry) [‘A quick history of the English longbow’, Notes from the U.K., 17-Jan-2025, www.notesfromtheuk.com].
.
The crossbow reaches its obsolescence point: By the 16th century the crossbow had seen its best days and was being supplanted by gunpowder weaponry – muskets, cannons, guns. Firearms had greater range, faster reload times and an overall firepower that crossbows could not begin to match. The final fling for the crossbow as a weapon of choice in war occurred in 1644 at the Battle of Tippermuir in Scotland (English Civil War).
Endnote: Crossbow sellers’ greatest marketeer: Hovering at the intersection of history, myth and popular culture is the heroic legendary figure most popularly associated with deadeye expertise in the crossbow caper and a talent for shooting apples off his own son’s head, William Tell. Elevated by Swiss folklore as a symbol of the struggle for liberation from the tyrannical Austrians, baby boomers—opera buffs aside—will associate the mythical hero William Tell with the 1958–59 British television series The Adventures of William Tell in which Tell (played by Conrad Phillips) is portrayed as a sort of Robin Hood clone but with a different kind of bow and the Swiss Alps rather than Sherwood Forest for backdrop𖤓.
𖤓 a nexus not coincidental, ‘William Tell’ was created to exploit the success of another highly popular ITV show of the Fifties The Adventures of Robin Hood. ‘Tell’ followed the earlier series’ familiar formula: a brave citizen turned outsider valiantly leading the resistance on behalf of the oppressed masses against a unredeemable evil tyrant
Debenhams plc: The Rise and Fall of a High-end Draper
The lethal force of the Covid-19 outbreak unleashed on the world in 2020 has killed to date in excess of seven million people globally (worldometers.info). In addition to this great toll of human life the pandemic and the ensuing commercial lockdown had a deadly effect on struggling businesses. One such victim is Debenhams plc, a retailing national institution with a continuous history centuries old. The British high street retailer went into liquidation and irrevocably out of business in May 2021, drawing the curtains on a trading lifespan extending back nearly 243 years.
Debenhams, the world’s oldest department store, was an iconic brand with a trusted reputation, a staple for household goods, beauty brands and clothing. The department store titan was bought out of administration by online fashion retailer Boohoo for £55m with the purpose of its famous brand being reinvented as an online bazaar – which is an ironic outcome given that Debenhams’ reluctance to refocus its sales strategies around the online platform (see below ).
.
Debenhams was founded by William Clark in 1778 as a drapers’ store in Wigmore Street, London. In 1813 Clark partnered with investor William Debenham, trading as Clark and Debenham in London and Cheltenham. After Clark retired Debenham partnered with Clement Freebody in 1851 (under the name Debenham and Freebody). Into the 20th century the company was still in the hands of William Debenham’s descendants and in 1920 acquired upmarket Knightsbridge department store Harvey Nichols. Debenhams experienced a business crisis in the late 1920s involving its subsidiary Drapery Trust, the fallout of which forced then owner Ernest Debenham to sever his family’s connections with the retail chain that still bears his name…as a result the company went public.
Era of expansion: The 1930s and 40s saw considerable expansion for Debenhams, becoming the biggest department store chain in the UK by 1948, with takeovers in several British cities (in 1950 there were 110 stores in the UK). In the 1970s Debenhams found itself in more volatile waters, having to fight off takeover attempts, culminating in it being acquired by the Burton Group in 1985 (subsequently the two demerged in 1998). From the 1990s the retail company took on an international profile with stores opening in 18 countries. Debenhams stores spread to Ireland as well as acquiring the Danish department store chain Magasin du Nord, plus a raft of widespread franchises encompassing the Middle East, Asia, Malta, Russia, Australia and elsewhere.
Profits decline while debts inflate: The Covid pandemic put the shutters on Debenhams’ retail existence but the decline of the household name in British retailing can be traced to business failures and wrong strategies over the preceding two decades. The decline had been precipitous, in 2016 the 166–store strong chain had been worth £900m, just three years on, this had plummeted to £20m. Retail analysts attribute Debenhams’ demise in part to its failure to read the future, to embrace change in consumer preferences resulting from the advent of the iPhone and online shopping. Simon Reynolds, a branding consultant, skewers management for neglect of the company’s historic brand – missing in Debenhams was a “clear brand proposition for its customers…it couldn’t demonstrate what made it different to its competitors and it lacked relevance to younger customers”. Debenhams’ expansion plans in 2006, its stated intention to double the then 120 stores it operated𖤓, added an additional cost burden§ which failed to be offset by a sales revenue boost (sales remained static in fact). This down-spiralling trend, according to retail consultant Richard Hyman, demonstrated that Debenhams had lost its relevance in the competitive retail environment (‘Debenhams: Three things that went wrong’, Rebecca Marston, BBC News, 09-April-2019, www.bbc.com). The end was nigh.
𖤓 in 2017 when it should have been closing underperforming stores, and just one year before a record loss toppled Debenhams into administration, the company inexplicably was still opening new stores! Poor store placement was a negating factor as well, opening new stores in small population areas like Stevenage or too close to existing Debenham stores was symptomatic of the injudicious path taken by the retailer (‘One ‘reckless’ decision that killed UK retail giant Debenhams’, Benedict Brook, News.com.au, 21-May-2021, www.news.com.au)
§ a combination of prime-site large properties, big rents and long leases, high rates and large staffing needs
The Rise and Fall of the Greek-Australian Milk Bar: American Dreams with an Hellenic Touch
🇬🇷 🇦🇺🥤🇬🇷 🇦🇺
Anyone who grew up in the golden age of milk bars in Australia, from the 1940s to the 1960s, will have a memory of or an association with these erstwhile hubs of suburban and small town social life…for many of that vintage it’d be hanging out inside with friends, indulging in their favourite flavoured milkshake, ice cream or other sweet tooth delight. My own fond recollection is of salivating over chocolate malt sundaes with nuts and taking turns at playing (or tilting) the pinball machine in the back corner of the shop. This treat was an exhilarating antidote to the aftertaste of having spent the preceding six hours toiling away in school confinement.
B&W 4d Milk Bar with mechanical cow & Red Cross-like symbol
⊹
They were such an integral institution during my salad days that I was under the assumption that milk bars had been around forever. In fact they only surfaced in Australia for the first time in the early years of the Depression. The first bonifidé milk bar is generally considered to be the Black and White 4d. Milk Bar which opened its doors at 24 Martin Place, Sydney, in 1932𝕒, it’s conception was the idea of a Greek migrant to the Antipodes, Joachim Tavlaridis, who had Anglicised his name to Mick Adams. Mick had visited the US and had drew on the American diner/soda parlour concept that was flourishing in the US for his inspiration (including American menus, ice creams and chocolate). The distinguishing feature of the Black and White Milk Bar was its singular purpose, it exclusively sold just sodas and milkshakes (in the iconic silver-coloured metal milkshake cups with actual fruit in the shake). Mick was an early entrepreneur in the field, later adding Wollongong, Adelaide, Melbourne and Brisbane shops to his milk bar “empire”. (‘1932: Australia’s first milk bar’, Australian Food Timeline, www.australianfoodtimeline.com). Mick Adams and other Greek-Australian small businessmen like him were the pioneers of the milk bar trade in Australia…typically the shops operating as open-all-hours family businesses, cf. postwar migrant Italians in the vanguard of delicatessen culture in Australia𝕓.
Golden Star Milk Bar, Perth (Photo source: M. Coufos)⊹
Greek cafes with a large dollop of Hollywood glitz The Greek owner-operators in Australia added glamour to their milk bars by infusing the decor with an vibrant American feel…gleaming chrome, neon illumination, plush leather chairs, mirrors, curvilinear Art Deco interiors, soda fountain pumps, snazzy uniforms, American jukeboxes. These early Greek milk bars (and cafés)𝕔 were purveyors of American dreams along with confectionery and sugary flavoured chilled beverages. Macquarie University history academic Leonard Janiszewski describes the agency of the early milk bars as “a kind of Trojan horse for the Americanisation of Australian culture” (‘The story of Australia’s Greek cafes and milk bars’, ABC Radio, Conversations (broadcast 02 May 2016). The milk bar caught on like wildfire—by 1937 there were around 4,000 in Australia, with names like “Olympia”, “The Orion” and “The Paragon”—as they did across the Tasman in New Zealand where the milk bar is known as “the Dairy”.
Milk bars passé By the 1970s the heyday of the Australian milk bar was well and truly past its use-by-date. Faced with an inability to compete with supermarket chains and multinational-owned petrol stations plus high rents, milk bar closures (together with that of the community corner store) became an increasingly common sight. 7-Eleven-style convenience stores started to pop up everywhere across suburbia to fill the void (‘Remembering the Milk Bar, Australia’s Vanishing Neighbourhood Staple’, Matthew Sedacca, Saveur, 18 January 2018, www.saveur.com).
Olympia, tea and milkshakes (Source: Daily Mail Australia)⊹
One Greek milk bar that did manage to defy extinction for much longer than most was the Olympia Milk Bar in the inner-Sydney suburb of Stanmore. Taken over by the Fotiou brothers in 1959, the Olympia under surviving brother Nick achieved a kind of local iconic status in recent years for its anachronistic novelty…open late, and always dimly lit, ancient chocolate bar wrappers plastered all over, a yesteryear-looking shop locked in a time warp. The Olympia somehow survived to 2018, until the Council decided to close down the dilapidated milk bar.
Postscript: Green plaque fiasco Attempts since 2017 to commemorate the Black and White Milk Bar as “the world’s first modern milk bar” with a green plaque have met with a roadblock. The plan had been to place the plaque on the original site of the proto-milk bar in Martin Place, Sydney, now the ANZ Tower. The spanner in the works has been the overseas corporate owner of the building who has steadfastly refused to allow the plaque to be mounted on the structure. The matter remains deadlocked with the City of Sydney Council unable to find an alternate, close-by location acceptable to Mr Adams’ relatives (“‘Disrespect’: Frustration grows over plaque for world’s first modern milk bar in Sydney”, Adriana Simos, Greek Herald, 05-Oct-22, www.greekherald.com.au).
Green plaque in limbo!۵۵۵۵۵۵۵۵۵۵۵۵۵۵
𝕒 a staggering 5,000 customers fronted up on the opening day! 𝕓 Mick’s concept of a modern milk bar was later replicated overseas in various places within the Commonwealth and Europe 𝕔 the nouns “café” and “milk bar” seem to be interchangeable in describing these Greek-Australian run establishments
London’s Worshipful World of Liverymen
One of London’s most colourful traditions which continues to the present day is the veritable institution of livery companies, the city’s ancient and modern trade associations. The liverya⃞ companies (LC) are Medieval in origin, established in the 12th century by groups of tradesmen, craftsmen and merchants with similar skills and interests. Like the guilds before them they functioned as kinds of trade unions in an embryonic state before the establishment of unionised labour associations.
Boundary lines of the “Square Mile” Photo: London Toolkit
How one becomes a Livery freeman There are two pathways to LC membership: serving a term of seven-plus years as an apprentice to a LC “master”; and patrimony, membership passed down from a parent who holds the status of freeman at the time of the child’s birth. There is in addition the entity of honorary freeman, mostly granted to celebrities and politicians by LCs…honorary Company members include Winston Churchill, Nelson Mandela, Margaret Thatcher and Stephen Fry.
Guiding the flock over the Bridge (Source: Metro UK)
Lord mayors from all walks of life The office of Lord Mayorb⃞, the annually elected administrative boss of the fabled “Square Mile”, the City of London, has been filled by freemen from the broadest cross-section of vocational backgrounds. Recent lord mayors have been merchant tailors, solicitors, haberdashers, shipwrights, grocers and musicians.
Order of Precedence
As the number of LCs grew a hierarchy of companies evolved with each company designated the prefix “Worshipful Company of ________” and an “Order of Precedence“ established, headed by the Great Twelve Livery Companies – they are in order, Mercers, Grocers, Drapers, Fishmongers, Goldsmiths, Merchant Taylors, Skinners, Haberdashers, Salters and Ironmongers (due to a historic disputation over their place in the seniority, #6 and #7 swap places in the pecking order every 12 months!). The Great Twelve were determined on the basis that they were “the most powerful and influential companies controlling all sorts of aspects of daily life and trade” in the city at the time the sequence was settled (Inspiring City, 27-Jul-2013, www.inspiringcity.co).
Crest of Worshipful Company of Bowyers Tallow Chandlers Co dining hall (Source: tallowchandlers.org)
a⃞ the word livery originally described the form of dress worn by retainers of noblemen and by extension was attributed to the specific attire for different trades or crafts b⃞ not to be confused with the political office of mayor of London (Boris Johnson’s previous gig before Westminster beckoned) whose jurisdiction, Greater London (GLA), is much larger c⃞ in 1371 London’s arrow-makers split off from the Bow-makers to establish their own distinct LC, the Worshipful Company of Fletchers
d⃞ with several other groups awaiting approval of their LC membership
420 Years Ago, VOC Makes the World’s First IPO
Stock Exchange 1.0
The world’s first known stock exchange is thought to be a market established in Bruges, Belgium, around 1309. This operation was a family concern conducted in the home of textile merchant Robert Van der Burse (or Van “ter Buerse/Buerze”). This type of early market which primarily deals with the exchange of commodities, ie, various agricultural products—and in its modern connotation, also with gas, oil, coal, etc—acquired the name ‘bourse’ from its founder. A bourse (typically European in location) is “a market organised for the purpose of buying and selling securities, commodities, options and other investments” [‘Bourse’, Investopedia, www.investopedia.com]. Another early bourse was located in Antwerp<a̷>.
𝕍𝕒𝕟 𝕕𝕖𝕣 𝔹𝕦𝕣𝕤𝕖: 𝕥𝕙𝕖 𝕠𝕣𝕚𝕘𝕚𝕟𝕒𝕝 𝕓𝕠𝕦𝕣𝕤𝕖
The Van der Burse exchange was the first organised market, before this landmark development such transaction processes were unorganised and informal – sellers and buyers would meet up one-to-one at specific meeting places such as town squares to conduct their trade <b̷> [‘Creation of the first stock exchange’, www.citeco.fr].
The Dutch, pioneers of capitalism
For the first ‘modern’ securities market we need to look to Belgium’s neighbours, the Dutch. The Amsterdam Stock Exchange is the oldest such market, founded in 1602 with the establishment of the Dutch East India Company (Verenigde Oostindische Compagnie or VOC). Amsterdam was the first bourse to deal in securities <c̷>. The VOC was empowered with quasi-government and monopoly status by the States General of the Netherlands, granted a 21-year charter to conduct all Dutch trade in Asia. In so doing, financial history was made…the VOC was a world first, a public company founded by a state government. Hitherto the Dutch trading environment comprised a number of competing private companies known as voorcompagnieën or “pre-companies”. By the 1602 Charter, the government merged those small, private companies into one “nationalistic Goliath”, VOC, creating a proto-megacorporation.
𝟙𝟞𝟘𝟚 ℂ𝕙𝕒𝕣𝕥𝕖𝕣 𝕕𝕠𝕔Raising capital At VOC’s commencement of business it held an unprecedented initial public offering (IPO). The company’s directors opened up share-holding to all Dutchmen by subscription (while investing 12,000 guilders of their own money up front). The public nature of the share issue was its revolutionary feature, hitherto predecessor companies (like the Oude Compagnie) had raised capital from a small circle of private investors. Some investors balked at the opportunity offered by VOC, wary of tying up their precious savings for such a long period (ten years). Concessions made by the VOC eased these concerns – in a subsequent amendment to the charter, investors were permitted to on-sell their shares to a third party prior to ten years [‘The world’s first IPO’, Lodewijk Petram, The World’s First Stock Exchange’, 15 October 2020, www.worldsfirststockexchange.com].
𝔸𝕞𝕤𝕥𝕖𝕣𝕕𝕒𝕞 𝕊𝕥𝕠𝕔𝕜 𝔼𝕩𝕔𝕙𝕒𝕟𝕘𝕖 𝕒𝕟𝕕 𝕓𝕦𝕝𝕝What would NOT have seemed novel to financial market investors of the day was the ‘office’ for doing business…initially lacking a business premises the VOC—after the fashion of the Bourses’ 14th century Bruges exchange—issued an open invitation for would-be investors to come to the private home of the company co-founder Dirck van Os to do the paperwork and deposit their money. Ultimately, by the time subscriptions closed, some 1,143 individuals <d̷> had invested a total of 3,674,945 guilders in the Verenigde Oostindische Compagnie (including Dirck van Os’ own maid!) [Petram].
ℕ𝔸𝕊𝔻𝔸ℚ (ℙ𝕙𝕠𝕥𝕠: 𝕄𝕒𝕣𝕜𝕖𝕥𝕤𝕎𝕚𝕜𝕚)
Footnote: the VOC’s IPO had profound ramifications, fundamentally altering the nature of investing. Originally intended to facilitate the financing of risky capital-intensive ventures, it “inadvertently created an alternative for investor beyond fixed income investments, marking the beginning of retail investing in equities” [‘World’s First IPO: Dutch East India Co’, Suede Investing, www.suedeinvesting.com].
•°¯`••••´¯°• •°¯`••••´¯°•
<a̷> the most famous bourse today is that of the Paris Stock Exchange
<b̷> including the square in front of the Van der Burse residence
<c̷> printed stocks and bonds, debt and other interests in companies, government and private businesses
<d̷> in addition to the six directors