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)
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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 Museumℭℭℭℭℭℭℭℭℭℭℭℭℭℭℭℭℭ
⚀ 50 miles south of Boston, from the early 1820s on it supplanted Nantucket as America’s foremost whaling port
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.
Crossbow from China’s Qin Dynasty, early 3rd century BC. Ancient Chinese crossbows were made from wood, sinew, bronze and bamboo.
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.
Crossbowman in an AD 1225–1250 English manuscript. BL Royal 12 F XIII The Rochester Bestiary (source: British Library and Manuscript Miniatures)
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)].
The Ballista: crossbow–cum–catapult
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.
Leonardo Da Vinci, design for a crossbow, ca1500 (made of wood and iron)
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].
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Genoese crossbowmen
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).
ITV television adventure series of William Tell (late 1950s)
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.
William Tell splitting the apple
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
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: Oxford Street (London) flagship store (photo: Debenhams plc)
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 ).
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Debenhams stores across the UK
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.
Debenhams’ Belfast (NI) store: closing sale (photo: news.com.au)
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
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
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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)
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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 passéBy 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)
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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 fiascoAttempts 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!
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𝕒a staggering 5,000 customers fronted up on the opening day!
𝕓Mick’s concept of a modern milk bar was later replicated overseas in various places within the Commonwealth and Europe
𝕔the nouns “café” and “milk bar” seem to be interchangeable in describing these Greek-Australian run establishments
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
Traditionally, the core role of the LCs has been to maintain standards and regulate prices in the various industries. The LCs fostered apprenticeships upon completion of which the apprentice became a “freeman” with licence to operate within the city walls (until the 18th century you couldn’t ply your trade within the city unless you were a freeman). An increasingly important auxiliary role of LCs has seen them engage in benevolent and charitable activities aimed at livery members and their families who have fallen on hard times (‘The History of London Livery Companies’, Black Taxi Tour London, 12-Feb-2020, www.blacktaxitourlondon.com).
How one becomes a Livery freemanThere 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)
With club membership comes privilegeA freeman is by definition a “Freeman of the City of London”, which carries certain privileges, one is the right to stand for election as aldermen or sheriff and if they get that far, even lord mayor. Another popular office open to freemen is ale conner, an elected official who gets to test the quality of new ales (somebody has to do it!). Another quirky privilege for freemen historically was the right to drive a flock of sheep over London Bridge without having to pay a toll. Recently some LCs—specifically the Worshipful Company of Woolmen—have revived this sheep herding exercise across the Thames. A key feature of livery activities is the ceremonial. LC membership affords an excellent opportunity to engage regularly in cosplay. All manner of Liverymen like to don ceremonial robes and march in processions like the Lord Mayor’s Show with no pomp or spectacle spared. Liverymen also indulge in other traditions such as pancake races and the Loving Cup ceremony (‘The traditions of the City of London and its Livery Companies’, CityandLivery, 27-Apr-2018, www.cityandlivery.blogspot.com).
Lord mayors from all walks of lifeThe 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 PrecedenceAs 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
The monumental changes in fashion and technology since the LC were in it’s infancy has led to many historic trades, crafts and professions withering away. Others haven’t disappeared entirely, like the Worshipful Company of Bowyers (AKA Longbowstring-makers), but their fundamental raison d’être has shifted markedly…despite the disappearance of the long-bow as a weapon used in war and hunting, the weapon retains a more limited usage today in the sport of target archery. Accordingly the Bowyers Co’s primary focus these days is on charitable workc⃞. In 2010 the LCs of London made benevolent gifts to the sum of nearly £42 million, the majority for education and welfare (‘British Institution: Livery Companies’, Matthew Engel, Financial Times, 22-Dec-2022, www.ghostarchive.org).
A lot of the LCs are still identified by their historic name…the famous black taxi cabs ubiquitous in the city fall within the purview of the quaintly named Worshipful Company of Hackney Carriage Drivers which harks back to the horse-and-cart era. Likewise, the Worshipful Company of Scriveners represents London’s qualified notaries public. Professional practitioners of calligraphy, heraldry and genealogy also come under its ambit. The Worshipful Company of Carmen once represented the drivers of produce carts (carters), now obsolete, so like many in its modern form it devotes it’s energies and finances solely to charitable and ceremonial pursuits.
Tallow Chandlers Co dining hall (Source: tallowchandlers.org)
The Livery Halls
At the present time there are some 110 livery companiesd⃞, 39 of which possess their own premises and some of these have very lucrative property portfolios. Many LCs share with others, eg, the Master Mariners Co’s “hall“, appropriately enough a historical ship HQS Wellington moored in the Thames, is also a venue used by the Scriveners Co. One of the longest functioning livery halls is that of the Worshipful Society of Apothecaries in Blackfriars, parts of its building dates to the 13th century.
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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
Stock Exchange 1.0The 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 𝕕𝕠𝕔
Raising 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].
𝔸𝕞𝕤𝕥𝕖𝕣𝕕𝕒𝕞𝕊𝕥𝕠𝕔𝕜𝔼𝕩𝕔𝕙𝕒𝕟𝕘𝕖𝕒𝕟𝕕𝕓𝕦𝕝𝕝
What 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].
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<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
In 2018 I posted up the two blogs linked below on the topic of Levittown, the postwar mass housing construction phenomena in the east of the United States.
https://www.7dayadventurer.com/2018/10/11/levittown-the-attainment-of-an-affordable-upwardly-mobile-home-and-lifestyle-for-some-part-i/
Source: dustyoldthing.com (screen shot)Lakewood, Ca. (Image:City-Data.com)
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In the late 1940s Bill Levitt’s New York company started constructing a series of new housing estates in the Atlantic seaboard states, succeeding in building affordable houses in double-quick time and on a mega-scale. Not long after Levittown showed the way, a triad of developers in California started planning their own gigantic scale home building project in Lakewood, Los Angeles County, to reap the rewards. The three ’amigos’, Ben Weingart, S Mark Taper and Lou Boyar, formed the Lakewood Park Company (LPC) and bought close on 3,500 acres from the Montana Land Co (previously sugar beet and lima bean fields adjacent to the city of Long Beach)¹. With Weingart’s extensive connexions in LA financing circles, the LPC got backing to the tune of $8.8 million from the Prudential Insurance Co, and were cleverly able to exploit a legal anomaly, leveraging a stack of federal finance to pay the large part of the private project’s expenditure [Kevin Starr, Golden Dreams: California in an Age of Abundance, 1950-1963, (2011)].
Photo: lakewoodcity.orgMoving-in day 1953 (Photo: JR Eyerman (Life mag.)
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A frenetic work schedule
The LPC utilised the same approach to construction as the Levittown developers. Every aspect was coordinated, synchronised like clockwork, the 4,000-strong work force was divided into 30 separate teams each with their own specialised task. Rapidity of construction was achieved by adopting the production efficiency methods learnt during WWII, foundations were laid post-haste (15 minutes to dig the hole by machine and not much more to fill it with concrete). Output was phenomenal, they were building around 40 to 60 new houses a day² (even managing in a single day to reach a record tally 110!).
Selling the American Dream
When Lakewood Park’s subdivision of model homes—complete with a “Tile Pullman lavatory” and a built-in ‘Pulverizer’ garbage disposal unit in the kitchen—was opened up to the public, the sales office was inundated with aspiring home-owners all seeking their piece of the “Father Knows Best’ fantasy lifestyle. One salesman sold 107 of the homes in a single hour [‘A New Kind of City…Lakewood’, Los Angeles Almanac, www.laalmanac.com]. Many were “sold off the plan” at a time before that term was in vogue. The cost for a Lakewood ‘model’ mostly ranged from $7,500 to $9,500. Like Levittown, Lakewood Park particularly appealed to WWII veterans who under the GI Bill were guaranteed advantageous terms, no down payment and 4% interest over 30 years. Lakewood’s population exploded – what was a small unincorporated village in 1950 became a ‘city’ with in excess of 70,000 inhabitants by 1953.
Source: old time magazines.com
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We’re all white thanks!: ‘Paradise’ homes for the white middle class
Again as with Levittown the ugly spectre of racism raised its head in the Fifties Lakewood Park ‘model’ lifestyle. One former sales manager for the LPC explained that his part of his role involved guided homogeneity, dissuading black (and Latino) families from buying into the estate on the grounds that the overwhelmingly white neighbours would object to their presence on the same block. This was part of a wider practice of “steering buyers into racially defined neighbourhoods” which persisted into the 1960s…the developers’ rationale being “that racially mixed communities (they believed) would not retain their resale value” [‘Suburban pioneers’, Lakewood City,www.lakewoodcity.org].
Source: smugmug.com (Pinterest)∘“The city of tomorrow today”
Like the Levittown prototype, Lakewood Park’s rapid-build assembly-line construction resulted in 17,500 houses springing up inside three years, a model planned community serviced by the construction of the Lakewood Center, at the time the largest shopping mall in the country (with parking for 10,000 vehicles)³ [‘Lakewood Community History’, LA County Library,, www.lacountylibrary.org]. Time magazine called to the largest housing development in the world, but some critics bemoaned the monotony of its grid-pattern streets and the houses’ sameness…it was however not quite Levittown Mach II, there were ‘subtle’ variations in landscaping and the use of slightly different home designs, the developers were careful to avoid Levittown’s error⁴ of having identical design homes next to each other in the same block [‘Lakewood California History’, Lakewood City,www.lakewoodcity.org].Source: Pinterest
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Developers with “laugh-lines around their pockets”
A Senate hearing in 1954 troubled by the development’s ramifications concluded that the bulk of the profits from Lakewood Park‘s land sales and retail development ended up in the pockets of the LPC syndicate…finding that Weingart, Boyar and Taper in fact risked very little of their own money on the venture (about $15,000 altogether) by being able to (legally) rely on the accessible federal financing. Against their meagre personal outlays, newspapers estimated that the triumvirate made nearly a cool $12 million each from the deal (‘Lakewood California History’).
Photo: City of Lakewood historical collection
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Footnote: The Lakewood Plan, “Contract City“
Lakewood became an incorporated city in 1954—following a divisive community campaign and an attempt by larger neighbour Long Beach to absorb it—but of a unique kind. Foundation attorney John Todd and the developers opted to contract out the new city’s essential municipal services to LA County (police force, fire brigade, sanitation services, etc), an innovation (Lakewoodisation’) later copied widely in California and in other states (‘A New Kind of City…Lakewood’). The stated reason for going the “minimal city” route was financial efficiencies, but Gary Miller argues that self-advantage was the real purpose, allowing the wealthy to “insulate (their properties) from the burden of supporting public services…(thus) zoning out service-demanding low-income and renting populations”, “fueling white flight from Los Angeles” [quoted in Mike Davis, City of Quartz: Excavating the Future in Los Angeles, 1990]
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¹ the farming enterprise was known as the “Montana Ranch”…ironically, the land Weingart, Boyar and Taper bought included village housing estates which under Montana Land’s restrictive races covenant they as Jews would be barred from living in [‘The Lakewood Plan: Homeownership, Taxes, and Diversity in Postwar Suburbia’, Ryan Reft, Kcet, 16-Jan-2015, www.kcet.org]
² a house completed every 7½ minutes!
³ enticing the retail department giant the May Company as the mall’s flagship store
⁴ which had led to Levittown residents when returning home at night mistaking other houses for theirs’
The latest buzz phrases in economic policy in PRC under Xi Jinping are “common prosperity” and “dual circulation” (see Postscript). Actually, common prosperity (Gongtong fuyu) is not new at all to communist China, there has had two previous iterations, the expression originating with Chairman Mao as far back as 1953. Then in the late 1970s leader Deng Xiaoping co-opted the term, flipping it to help spearhead an economic reorientation from the ideologically adherent socialism of Mao to an opening towards market capitalism and private enterprise. Deng proposed a different route to common prosperity, one that allowed some peasants to get rich, which would provide the catalyst to drag the others towards the stated objective.
(Source: addicted2success.com)
First generation billionaires and millionaires; social cohesion imperilled
Beijing tell us the purpose of the Xi-led common prosperity initiative is to reverse the growing trend of the wealth gap which has dramatically increased since Deng’s day. China’s rapid economic growth made it possible to lift millions of Chinese out of poverty, but has also led to a situation where the top 1% holding 30.6% of the country’s wealth. Estimates put the number of Chinese (USD) billionaires as high as 1.1 million (second to the US) (East Asia Forum 20-Sep-2021)⁼ᵃ⁼. According to Elizabeth Economy, China’s Gini coefficient ranks it in the camp of the world’s most unequal states (quoted in Andrew Collier, ’China’s ‘Common Prosperity Campaign Is Going to Be Tough’, The Diplomat, 18-Sep-2021, www.thediplomat.com). Many middle class Chinese citizens are flaunting thbeir nouvelles richesses with luxury acquisitions, which doesn’t go unnoticed by those lower down the socio-economic strata.
Xi in Mao’s shadow? (Photo: denverpost.com)
A pivot to the left?
The Asia Society’s Kevin Rudd described common prosperity as a strategy to re-establish the prominence of the state and the party over the market. Many China-watchers don’t necessarily attribute the new move by the Xi government to the communist party having suddenly rediscovered its 1949 socialist roots. With the situation calling for change, Xi is acting also with an eye to bolstering up his leadership and legitimacy to secure a third term as president next year.
Jack Ma (Source: las2orillas.co)
Cracking down on Alibaba and Tencent
Xi and the party looked round for targets, pressure has been exerted on China’s high profile business elite, mega-billionaires such as Jack Ma and Pony Ma. In genuflect-like fashion their respective companies Alibaba and Tencent quickly came forward to pledge billions of dollars to charities (‘Chinese tech giants pledge billions to support President Xi Jinping’s ‘ common prosperity goal’, Dong Xing, ABC News, 07-Sep-2021, www.abc.net.au). Others to find themselves in the cross-hairs of the new reform agenda include private tutoring, online gaming and the entertainment industry. Critics say that leaning on big tech companies and taxing high and ‘unreasonable’ incomes won’t fix China’s structural inequality in income. What is required is a fundamental change in tax structure and state system which addresses the core problem of a lack of tax revenue. China’s share of revenue is 28.% of GDP cf. 40.3% for OECD countries, its personal income taxes loiter at just 1.2% of GDP cf. the OECD’s 8.2%. PRC’s “Achilles Heel” in tax is the paucity of its compliance, the present system results in a low number of personal tax payers in China relative to workforce size (Collier).
(Source: Brunswick Group)
No “Robin Hood” scenario at work
The Chinese government has moved quickly to reassure concerned business heavyweights (and international investors) about its motives…senior economic official Han Wenxiu’s pitch: common prosperity was “not about killing the rich to help the poor”, rather, he said, it is geared to “doing a proper job of expanding the pie and dividing the pie” (‘Assessing China’s “common prosperity” campaign’, Ryan Haas, Brookings, 09-Sep-2021, www.brookings.edu).
The outcome of such a transformation as the reforms may bring about, some fear may be a “top down Utopian China” with, as K Rudd suggested earlier, even more power and control devolving to the party (‘Changing China: How Xi’s ‘common prosperity’ may impact the world’, Kaishma Vaswani, BBC News, 07-Oct-2021, www.bbc.com).
Little appetite for property and inheritance taxes
One source of redistributing wealth on a national level is taxation on property and inheritance (and a more progressive income tax). But there appears little enthusiasm to upturn this apple cart as it steps uncomfortably on the toes of communist party elites and their vested interests (Haas).
t Image: radiichina.com
Endnote: Millennial “have-nots“, in dire need of a share of the common prosperity
The effects of the free market’s dislocation of Chinese society in the early 21st century falls heaviest on the young. Young Chinese face enormous pressures on the highly competitive road to success, starting with the pressure cooker of trying to excel in the gaokao (higher education entrance exam). Even with tertiary qualifications under their belt, so many find themselves chasing the same plum jobs. with nine million-a-year university graduates, with the exception of a fortunate few “a whole generation” miss out on the Chinese good life promised by the capitalist success story (‘China’s ‘common prosperity’ goal won’t mean Robin Hood style redistribution’, Andrew Leung, South China Morning Post, 23–Sep-2021, www.scmp.com). Signs of growing millennial dissatisfaction with the uber-demanding drudgery of the “996”⁼ᵇ⁼ work culture in large Chinese companies manifest themselves—largely via Weibo the Chinese social media network—in the “lying flat” movement (píng tâng) … more twenty-somethings and thirty-somethings opting to drop-out of the competitive rat race, thus earning the state‘s opprobrium (‘The buzzwords reflecting the frustration of China’s young generation’, Fan Wang & Yitsing Wang, BBC, 14-Jun-2021, www.bbc.com). Then there’s the elusive dream of home ownership, wealthy property investors and speculators have pushed the cost of owning a home out of the reach of many millennials…squeezed out of the property market, feeling burn-out from “996”, more young Chinese are forgoing (or at least postponing) starting a family.
(Photo.thestar.com.my)
Postscript: A new economic model to narrow the income gap
“Dual circulation” dovetails neatly into the objective of common prosperity. Beijing has signalled its intent to re-gig the economic model, moving away from over-dependence on exports and capital investment favouring large enterprises, and tapping into the potential of its huge domestic market. This could lead to a refocus on services, domestic consumption and the environment, and a reliance on “indigenous innovation to fuel growth” (Leung; ‘What is China’s dual circulation economic strategy and why is it important?’, Frank Tang, South China Morning Post, 19-Nov-2020, www.scmp.com).
𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪𝄪
⁼ᵃ⁼ conversely some 600 million workers live on the equivalent of US$154 or less a month (East Asia Forum)
According to Guinness World Records the pop song that has been covered more times than any other record is the 1965 Beatles’ 1965 Paul McCartney-penned Yesterday (a staggering 1,600-plus recorded versions). Conversely The Lion Sleeps Tonight trails far behind the record-holder with a mere 160 or more covers (still a very large number of covers), but few popular songs in the modern era of music can match it’s convoluted, controversial and even tragic history.
The Evening Birds, 1939 (Solomon Linda on the far left)
Ripped off from the debut single
The story starts in the Gallo Recording Studio in Johannesburg in 1939. Migrant labourer Solomon (Ntsele) Linda and his troupe of a capella singers (the Evening Birds) cut a record in the Zulu asisicathamiya style. The tune with its spartan lyrics is called Mbube or perhaps more correctly Imbube (‘lion’ in the Zulu language). The tune they sing is not a particularly remarkable piece of music except for Solomon’s melody. As Cape Town music journalist Rian Malan, who is to play a key role in the Mbube story as it develops, puts it, “there was something terribly compelling about the underlying chant, a dense meshing of low male voices above which (soprano) Solomon yodeled and howled (“a blood-curdling falsetto”) for two exhilarating minutes” improvising as he went along…“a haunting skein of fifteen notes” (’In the Jungle: Inside the Long, Hidden Genealogy of “The Lion Sleeps Tonight”’, Rian Malan, Rolling Stone, 14-May-2000, www.rollingstone.com). Recorded, the song sells over 100,000, copies in South Africa by 1948. Linda’s cut, 10 shillings for the recording plus a menial job in the record company (in the process signing over all rights to the song to company proprietor Eric Gallo).
Pete Seeger (Source: Mother Jones) Image: the78prof (YouTube)
From a humble back room recording in Sub-Saharan Africa’s only recording company to the American Top 40
This pattern of exploitation, injustice and racism (both overt and by omission) escalates when the story moves to America. Struggling folksinger Pete Seeger hears Solly and the Original Evening Birds’ 78 record, digs the sound and records it with his group the Weavers. But Seeger misinterprets what Solomon Linda is singing, changing the Zulu refrain ‘Uyimbube’ (“You’re the Lion”) to ‘Wimoweh’ on their recording (‘Mbube’ becomes the song ‘Wimoweh’). It’s a hit in the US in 1952 and Seeger’s career receives a big boost. No credit and no royalties for composer Solomon – although later Seeger motivated by pangs of guilt sends Linda a cheque for $1,000 via TRO/Folkways, however it gets siphoned off on-route and never reaches the impoverished Linda in the slums of Soweto in Jo’burg.
“Paul Campbell” is the only writing credit on ‘Wimoweh’ (a common nom-de-plume ploy used to claim royalties on public domain songs)☥
In 1961 a new chapter in the story opens, “doo-wop” band the Tokens, like all pop music enthusiasts in the US, are familiar with the super-catchy “Wimoweh” refrain and want to record it. Their RCA producers get songwriter George David Weiss to revamp the song. Weiss adds new lyrics (“In the jungle, the mighty jungle”, etc) and shifts the focus of the song on to Linda’s chanting melody. ‘Mbube’ having previously morphed into ‘Wimoweh’ is repackaged by Weiss as ‘The Lion Sleeps Tonight’, all three versions still bearing the essential imprint of Solomon Linda (Malan). The Tokens’ single—with singer Jay Siegel’s distinctive high falsetto—reaches # 1 in the US and internationally, eventually selling more than three million copies§. Again, no credit and no moolah for Linda who dies destitute in 1962 with just $25 in his bank account, leaving a widow and a half-dozen young children behind.
The Tokens (Source: singers.com)
Spreading the largesse to TRO
While credited songwriters Weiss and RCA’s Creatore and Peretti cash in big time on ‘The Lion Sleeps Tonight’s’ soaring sales, other formidable industry figures in the US were getting in on the act from another angle – again to the exclusion of the song’s original creator. Eric Gallo in South Africa injudiciously trades his rights to Linda’s song in America to big international music publishers TRO, (The Richmond Organisation) cutting himself off from benefitting from the ongoing “gravy train” and enriching TRO founder Howie Richmond and his partner Al Brackman.
Industry eyes only on the prize
Rather than making an act of goodwill or perhaps an atonement of sorts for the wrongs done to Solomon Linda by shuffling a financially meaningful sum in the direction of Linda’s daughters, the major stakeholders, fixating on the riches they see before them, at the beginning of the Nineties dig their heels in, even resorting to wrangling among themselves. TRO and Richmond on one side and Weiss and co-writer Creatore on the other end up fighting each other in arbitration presided over by copyright law judges…”rich white Americans squabbling over ownership of the most famous melody ever to emerge from Africa” (Malan).
‘The Lion King’ jackpot
Disney’s turn to exploit the melody’s popularity
The “golden egg” of ‘The Lion Sleeps Tonight’ explodes to new astronomical heights in 1994 when the Disney Corporation releases The Lion King, a blockbuster of a a movie—using ‘The Lion Sleeps Tonight’ song—which by 2019 has raked in $1.65 Bn at the box office, plus spin-offs such as videos and merchandise. Not stopping there, Disney follows it up with a 1998 sequel Lion King II and a Broadway musical theatrical release (highest grossing Broadway production of all time – >$1 Bn). Added to all this is about another thirteen films that includes ‘The Lion Sleeps Tonight’ song, plus its use in television commercials, endless airplay on radio and so on.
The two remaining Ntsele sisters looking at the 1939 photo of their father’s band (Source: Netflix)
The long quest for justice and some light at the end
An amelioration of the unconscionable plight facing Linda’s family only emerges after Rian Malan takes up their cause in the Nineties, writing a penetrating exposé (published in 2000) which gets their predicament publicity and legal support, and also embarrasses the “fat cat” beneficiaries who make some insultingly meagre financial concessions to the family. A series of court cases ensue but untangling the complicated web of ownership of the three versions of ‘Mbube’ is not straightforward – for one thing both Linda and his two surviving daughters have already signed over their rights to ‘Mbube’ in transactions which were legal, also there are issues with expiry of copyright in both RSA and America. In 2004 the Ntsele sisters with the aid of copyright lawyers initiate a lawsuit against Disney. The 2006 ruling acknowledges that ‘The Lion Sleeps Tonight‘ was of South African origin and rooted in Zulu culture (‘Copyright in the Courts: The Return of the Lion’, Owen Dean, Wipo Magazine, April 2006. www.wipo.int). In an (undisclosed) out-of-court settlement Disney (keen to avoid a PR disaster) and Abilene Music❆ agree to make an equitable and substantial payout to Linda’s surviving daughters. (’The Lion Sleeps Tonight’, Lydia Hutchinson, Performing Songwriter, 01-May-2017, www.performingsongwriter.com; ‘In the Jungle, the Unjust Jungle, a Small Victory’, Sharon LeFraniere, New York Times, 22-Mar-2006, www.nytimes.com).
Rian Malan (Source: Writers Write)
Malan estimates (2002) that given the seeming limitless sales potential of ‘Mbube’/‘The Lion Sleeps Tonight‘ in all its versions and forms, the royalties owing to the song’s composer would lie in the region of US$15 million, a figure that Solomon’s descendants won’t ever see in their bank accounts…however through the unflagging, dogged persistence and refusal of Malan not just to grasp the nettle but to never let go of it⇼, and the stirling pro bono services of lawyers stirred to action by the injustice, the future is now secure for them, and credit for the classic song is now rightfully attributed to their father. One of those South African copyright lawyers Owen Dean expresses optimism that royalties will be secured for “the use of Mbube in all its derivatives, including ‘The Lion Sleeps Tonight‘, for the benefit of the family” (Malan), noting also that there is “some pride in having successfully championed the cause of the small creator among entertainment industry giants” (Dean).
Source: Definitely Owen on YouTube
Postscript:Remastered: The Lion’s Share, a 2019 documentary shows writer and documentarian Malan’s quest to trace the roots of the mega-successful ‘The Lion Sleeps Tonight‘ song, one of the most instantly recognisable pop melodies in American music, and his untiring efforts to help get fair compensation for the surviving daughters of the Black South African composer air-brushed from his part in music recording history.
🎶➿🎶➿🎶
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§ artists to cover ‘The Lion Sleeps Tonight’ include the Springfields, Roger Whittaker, The Tremeloes, Robert John, Glen Campbell, Brian Eno, R.E.M., They Might Be Giants and Tight Fit
☥ another go-to pseudonym—one used by Al Brackman to grab a cut of the songwriting royalty payments pie—was “Albert Stanton” (www.secondhandsongs.com)
❆ who licensed the song to Disney for the movie
⇼ The Guardian aptly summarises this irrepressible trait of the controversial RSA journalist: “Malan is at his best when he finds a story that allows him to employ the full power of (his) instinctive reluctance to take yes for an answer” (Tim Adams, 2nd March 2013).
Pyrmont on the edge of Sydney’s CBD is one of those inner-city suburbs which has undergone the dramatic effects of intensive urban renewal since the turn of this century – the traditional industries such as sugar refining, brewing, ship and boat-building, the old working class pubs, the modest workers” cottages have all given way to media and IT firms and high-rise apartments. One of the relatively few industry survivors in Pyrmont is the Sydney Fish Market on Blackwattle Bay.
Fish Market, Woolloomooloo (Photo: State Lib of NSW)
Rudimentary beginnings at Woolloomooloo
The city’s fish market has been a local Pyrmont landmark, a continuing presence since 1966, but the city fish market’s history extends back much further than that. It was originally located on the corner of Bourke and Plunkett Streets, Woolloomooloo, on the eastern fringe of the CBD…the selling of fish here in a methodical fashion of sorts commenced in 1871 (some references give the year as 1872).
Eastern Markets, Wolloomooloo: an absence of tables (Photo: SFM)
These Woolloomooloo “Eastern Markets”, according to newspaper reports of the time, show that it was much maligned for its deficiencies. The litany of complaints included its position, deemed far from central; the “barbarous nature of internal arrangements”, ie, the unsanitary practice of laying fish for sale on the uncovered market floor; logistics and transportation shortcomings, ‘transhipment’ was inordinately lengthy: hauls were transferred from catcher to small steamer to large steamer, dumped on the wharf at Botany port until carted to the market by wagon❈ and subjected to pilfering and deterioration on route; the whole process necessitating “maximum amount of handling (of) a peculiarly delicate commodity which suffered from unnecessary pulling and hauling” [‘City of Sydney Improvements’, Evening News (Sydney), 21-Nov-1891].
A developing fish market rivalry
With dissatisfaction with the Woolloomooloo markets palpable, a second fish market was established at Redfern in 1891 which came to be known as the “Southern Fish Markets”. The Redfern enterprise was a clear improvement on Woolloomooloo which had come came under the control of the City of Sydney Council circa 1907-1908. Redfern was conveniently situated adjacent to the railway station. Rail-transporting the fish eliminated the need to load and reload the goods several times, the process was more timely so the fish arrived fresher and in “marketable condition” (plus it meant lower freight charges by rail). Other advantages were new features like cool storage chambers and dedicated rooms for “smoke curing”. Redfern also had the bonus of being elevated, necessary to facilitate the draining of the seafood. Most crucially Redfern was a step up on hygienic fish presentation, placing them not on the floor but in specially constructed tables (around this time Darling Harbour was also mooted as a alternate venue for the fish markets but was considered not as good a site as Redfern)(‘Evening News’).
(Image: Dictionary of Sydney)
Redfern residents however were not enamoured of the fish market in their suburb, as a result of the uninvited 4am “wake-up calls” each morning: the approaching “rumble of fish carts and the vulgar ejaculations and rude raillery of the hawkers” [‘1872 First Sydney Fish Market’,
Australian Food Timeline, www.australianfoodtimeline.com.au].
Fish market built in Haymarket, 1910 (Source: City of Sydney Archives)
Council market v private market
Sydney Lord Mayor, Alderman Taylor, in 1909 advocated relocation from Woolloomooloo to the Belmore Fruit and Vegetable Markets (where Capitol Theatre is situated today) [‘Sydney Fish Market. its Early History’, by Mary Salmon, Evening News, 02-Jul-1909]. This subsequently came to nought, instead in 1910 a new fish market was built a short distance from there at Quay Street, Thomas Street and Thomas Lane, Haymarket (today housing the Prince Centre), and run by the City Council Fish Market in direct competition with the privately-run Redfern operation.
Woolloomooloo continued for a time after Haymarket got going but in a much reduced form with some confusion about its status, as a contemporary article in the Sydney Sun pointed out, the Woolloomooloo manager in 1915, rejecting its description as a fish market, in a piece of double-speak referred to it as a “distribution centre”, adding that it was “merely a market incidentally. If there is any surplus of fish for sale it will be sold” [‘Not a Fish Market: Woolloomooloo Depot”, The Sun, 28-May-1922. In 1926 high profile businessman John Wren purchased the “old Fish Markets” premises at Woolloomooloo (Daily Telegraph, 04-Dec-1926) which was demolished in the 1960s, making way for the Astor Apartments.
Squeezing out the private market
The Council was determined to end the fish market rivalry with Redfern. The state government did its part to assist by refusing to renew the licenses of fish agents at the Southern Markets. Despite a view that the Quay Street fish market was not a paying concern (it was claimed that it handled only 20% of the consigned fish coming to Sydney), a bill was passed in state parliament in 1922 which allowed the City Council Market to acquire the assets of the Redfern fish exchange, which forced its closure the following year [‘Fish Fight: Council v. Redfern Markets’, The Sun, 03-May-1922. Woolloomooloo continued for a time but in a much reduced form with some confusion about its status, as a contemporary article in the Sydney Sun pointed out, the Woolloomooloo manager in 1915, rejecting its description as a fish market, in a piece of double-speak referred to it as a “distribution centre”, adding that it was “merely a market incidentally. If there is any surplus of fish for sale it will be sold” [‘Not a Fish Market: Woolloomooloo Depot”, The Sun, 28-May-1922].
FMA fish monopoly
The Haymarket fish market continued as the sole conduit for fish trading in Sydney until 1945 when their monopoly was expanded…the government transfered the marketing and selling of fish to the NSW Chief Secretary’s Department (hitherto unlicensed operators could sell fish outside of Sydney) which established a regulated and centralised market for the entire state. The central fish market’s control was consolidated in 1964 with the creation of the Fish Marketing Authority, a NSW statutory authority under the jurisdiction of the Department of Agriculture¶ (‘Market History’, Sydney Fish Market, www.sydneyfishmarket.com.au]. The FMA’s role was to bring the seller’s fish and the buyer together, charging a percentage fee for this service.
(Photo: sydneyfishmarkets.com.au)
“Next up, same boat mullet!”
Relocated to Pyrmont in 1966, the fish market management employed a ‘voice’ auction system, buyers would position themselves around the selling bay and as the auctioneer’s called each lot’s sale, they would verbally bid. Disputes among buyers were not uncommon given the din of noise present and with such a capricious arrangement.
Dutch auction system (Photo: flowercompanies.com)
Dutch flower market auction
In 1989 the FMA introduced a computerised Dutch auction system used in Amsterdam to sell tulips, replacing the old manual system. It works by setting the start price approximately $3 higher than the anticipated selling price and then lowering it until a registered bidder electronically lodges a bid [‘Sydney Fish Market’, www.pyrmonthistorygroup.net.au]. This innovation has made the auction process more efficient and quicker.
Privatisation and de-regulation
The state-run markets were privatised in 1994 and renamed Sydney Fish Market P/L. In 1999 full de-regulation meant catchers in NSW could now sell directly to any buyer with a Fish Receiver’s Permit, bringing to an end the Pyrmont market’s long monopoly over the sale of seafood in Sydney (private ownership of the market made the continuation of monopoly untenable) (‘SFM’).
The SFM at Pyrmont in 2021 is the largest seafood market in the Southern Hemisphere and one of the biggest in the world. Every hour of it’s commercial operation about 1,000 crates or 20,000 km of seafood gets sold (‘SFM’).
End-note: An intriguing sidelight to the operation of the fish market at Pyrmont during the 1980s (and I suspect before then as well) was the existence of a black market. As well as bona fide fish buyers, other individuals would frequent the daily markets with a view to unloading ‘hot’ merchandise or goods of a distinctly un-piscine nature for a ‘special’ price. Such shady transactions would often occur concurrently and even alongside the auction bay itself. It was that sort of place which drew all sorts of dodgy characters looking to make a quick buck, no questions asked.
Postscript: Future plans
(Image: The Bays Precinct Sydney)
The fish markets are moving again but this time staying on Blackwattle Bay, the new site will be 15,500 sq m in size, more than two-and-half times the present market, with a scheduled finish date of 2024. The new SFM promises to make the auction area more visible and accessible (off-limits to the public since the change to the computerised system).
↬↬↬↬↬↬↬↬↬↬↬↬↬↬↬↬↬↬
❈ a long six mile-plus haul to Woolloomooloo
¶ the FMA took over the marketing of fish outside Sydney which had prior to 1964 been the purview of individual fishermen’s co-operatives in coastal regions
Eighty Druitt Street is a prominently located, heritage building in the Town Hall precinct of Sydney’s CBD. It’s colourful history owes its origins to an 1888 competition conducted by the Excelsior Land Investment and Building Company (and Bank Ltd) to design a hotel and banking premises on the corner of Druitt and York Streets (opposite the QVB – Queen Victoria Building). The contest was won by architect Ambrose Thornley and the completed commercial construction (circa 1890) adopted the name suggested by Thornley, “Central Hotel”.
(at left Central Hotel, circa 1900 – dwarfed by the massive QVB building)
Along the York Street frontage of the building was a separate “banking chamber”. In 1896 this became a branch of the City Bank of Sydney. The CBS banking company folded in 1918 and its branches were taken over by the Australian Bank of Commerce. By 1931 the ABS including York Street branch was absorbed into the Bank of NSW (original name of Westpac).
Meanwhile, the Central Hotel was bought in 1904 by a “Mr Roberts” who had apparently previous done a sterling job of value-adding and enhancing the nearby Criterion Family Hotel (The Newsletter (Sydney), 17-Dec-1904)✱. During the first decade of the 20th century the hotel was renamed the Gresham Hotel. In 1925 the hotel was bought by leading brewery Tooth and Co (‘Gresham Hotel: Sold for £47,000’, The Sun (Sydney), 20-Nov-1925).
In the 1980s the Gresham was converted into offices and in 1995 the building was purchased by the Government of Hong Kong. It has operated as the Hong Kong Economic and Trade Office in Sydney, representing China’s Special Administrative Region of Hong Kong. The building is also used to promote Hong Kong tourism under the aegis of the HK Tourism Board.
✱ located on the corner of Pitt and Park Streets, the hotel was part of the Criterion Theatre complex. The Sydney newspaper report of this reads like a glowing advertisement for the mysterious “Mr Roberts’” business
Gowings menswear store was a retail institution in Sydney’s CBD for six score and then some years. This mid city store was the place you could find—in addition to its main line of affordable casual men’s clothing and apparel—outdoor camping equipment, cricket kits, school uniforms and novelty items, among other things. Gowings also had a barber’s shop and you could hire a Year 12 school formal suit or a wedding tux.
The Gowings story starts with John Ellis Symonds (JES) Gowings who emigrated to New South Wales from England in 1857. After retail experience in David Jones’ Sydney department store—where he worked his way up to head of mercery—JES’s first venture of his own was to open a drapery shop in 1863 in Crown Street, East Sydney. He then formed a partnership with his brother Preston, in 1868 the brothers opened a Mercery and Glove Depot at 318 George Street. JES managed the store in return for £200 per annum and 50% of the profits. The iconic Sydney retailer was up and running.
The business grew, in 1870 a new mercery warehouse was opened in Edinburgh House, 344 George Street, and 20 years later a second city store at 498 George Street. The brothers’ younger sibling Charles was hired as the Gowings store’s “dog walloper”, his job was chasing dogs away from the store as a preventive measure so they didn’t foul the pavement (Kingston).
Over time the Gowings retailer evolved from specialising in ladies’ gloves and silk umbrellas to menswear, turning itself into high-class gentlemen’s outfitters. JES’ customer-centric retail philosophy involved listening to the customers, treating them like they were friends and securing the best quality goods for them (Kingston). The 1890s and the approach of Federation prompted Gowings, anticipating the modern “Buy Australian” campaign, to push the Australian product. Restyling themselves as “Austral Clothiers, Mercer’s, Hatters”, Gowings Bros launched the slogan “Australian wool for Australian people”. For the country customers Gowings offered Australian manufactured commodities via its mail order service, eg, Marrickville Tweeds from John Vicars & Co, ‘bosker’ rugs made especially for Gowings (Kingston).
After JES’ death in 1908 control of Gowings passed to the John and Preston’s sons, with the firm’s tradition for quality goods continuing. The construction of a new flagship building in 1929 on the George Street site became a landmark for Sydney (at the time it was Sydney’s highest building and the first steel construction in the CBD)✦.
A testimony to Gowings’ fame is the cult phrase that it acquired (and cultivated by the retailer) during the 20th century …”Gone to Gowings” has passed into the Australian vernacular, meaning a failure of some kind or other, or possibly a state of inebriation or dementia (Tréguer). Macquarie Dictionary lists six definitions: 1. Deteriorating financially, 2. illness especially a hangover, 3. Failing dismally (a racehorse, a football team, etc), 4. having departed hastily or without a specific destination in mind, 5. drunk, 6. Insane, idiotic. Alternately it could mean down on your luck, lost at the races, etc. The other famous catchphrase that was posted on the flagship premises” facade was “Walk Thru, No one Asked to Buy”.
The Gowings family maintained a steady as it goes, minimise risk approach to the retail business for most of its history. Attempts to modernise it’s main store came later (installing air conditioning and music in lifts, the first retailer in Sydney to do so). Another innovation was its introduction of the “Gowings Own Brand” label of merchandise.
Gowings’ CBD stores (it added a second city store at Wynyard in 1996 – nicknamed the “Blokeatorium”) retained their popularity with the public, however a move to the suburbs (Oxford Street, Darlinghurst and Hornsby) proved less successful. In 2000 the Gowings family relinquished control of the retail business to an independent listed company G Retail and concentrated on the property development game.
Gowings ad, 1909
Gowings end-game
Under G Retail a new suburban outlet at Parramatta opened in 2002 proved a disaster, and when G Retail lost money three years in a row, the writing was on the board for the veteran retailer. More financial strife followed overreach (an aggressive expansion and building renovation program), G Retail was heavily in debt and headed for administration. In the early 2000s, Gowings, like most small retailers, struggled. A hike in the petrol price in Sydney in 2005 depressed consumer spending, exacerbating its problems (Evans; Perinotto). In recent years Gowings tried to innovate, going online, discounting, etc, but the decline was irreversible by then. Competition from the city’s retail giants was too great, Gowings simply couldn’t match the depth and breadth of range and quality that big merchants such as Target could offer (Lake)◈. The Oxford Street and Hornsby stores closed in 2005 and the following January the flagship George Street store closed its doors for good after 137 years of retailing. Later that year the Wynyard store completed the round of closures.
Compared to the larger, more dynamic players in the market, Gowings had the reputation of being a “blokey store”, leading some observers to pinpoint its ultimate demise in its retail conservatism, “stay(ing) locked in the fifties or sixties and limited (in its) geography” (Lake)
The post-Gowings space
Three months after its closure the Gowings landmark building at 452 George Street was snapped up by the Rydge family’s Amalgamated Holdings goliath for $68.6 million, consolidating its property holdings in this mid-town spot — Amalgamated Holdings had previously acquired the State Theatre building next door (49-51 Market St) as well as the nearby Mick Simmons building in George Street.
Footnote: in the late Nineties Gowings enthusiastically embraced the ‘blokey’ image, its then MD, a descendent of the founder, proclaimed Gowings “the complete bloke’s outfitters”. Along with its usual clothing lines, it began pitching the “Bear Grylls in the wild” experience to men, selling goods for the great outdoor adventure (camping gear, hunting knives, zippo lighters) (Owens).
Gowings bldg (2021)
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✦ designed by architect Crawford H Mackellar and incorporating a Palazzo style
◈ Retail expert Rob Lake attributes the fact that Gowings survived longer than many of the other ‘dinosaurs’ to its evolution into a sort of quaint relic which became its “point of difference” but one that didn’t boost it’s sales (Lake)
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Works and articles consulted:
Beverley Kingston, ‘Gowing, John Ellis Symonds (1835–1908)’, Australian Dictionary of Biography, National Centre of Biography, Australian National University, https://adb.anu.edu.au/biography/gowing-john-ellis-symonds-12945/text23395, published first in hardcopy 2005, accessed online 26 April 2021.
‘”gone to Gowings”: meaning and origin of this Australian phrase’, (Pascal Tréguer), Word Histories, 2020, www.wordhistories.net
‘End of an era as Gowings finally gone’, Sydney Morning Herald, 28-Jan-2006, www.smh.com.au
‘Gowings makes it like a man’s, (Susan Owens), Australian Financial Review, 25-Sep-1999, www.afr.com
‘The sad demise of a quirky retail dinosaur’, (Rob Lake), Crikey, 08-Nov-2005, www.crikey.com.au
‘Gowings clearing out for good after 137 years’, (Michael Evans), Sydney Morning Herald, 17-Dec-2005, www.smh.com.au
‘Gowings building sold to neighbour for $69m’, (Tina Perinotto), Australian Financial Review, 28-Apr-2006, www.afr.com
For as long as most consumers in the West can remember, it’s been Coca-Cola versus Pepsi-Cola, vying for the public’s preferred carbonated soft drink. Just how long is that? Well, the Pepsi-Cola Company was established in 1902, ten years after Coca-Cola did, so the rivalry got going pretty much early on in the 20th century. It was a long gestation period however for Pepsi before it got close to being competitive with Coca-Cola✱. PepsiCo struggled so much in the early years that in 1923 the company was even declared bankrupt – basically due to WWI sugar rationing in the US. Eight years later it filed for bankruptcy again! Pepsi never actually went away though, slowly and methodically rebuilding itself as a significant player in the industry, albeit for a long time it remained as one observer put it, a “persistent gadfly” in a lake dominated by Coca-Cola (Kahn).
In its early days Coke was marketed both as a medicinal drink and as a “refreshing tonic”
While Coca-Cola powered on with innovatively marketing (using high profile sportsmen) its product to kids with Santa Claus’ help, and expanding Coke overseas, Pepsi didn’t really get its act together until the middle of the 20th Century. PepsiCo shifted its branding and marketing (moving from bottles to cans and adopting patriotic red, white and blue colours for the product). Another direction Pepsi goes in at this time is product diversification … the company’s 1965 merger with Frito-Lay Inc marks Pepsi’s foray into the snack food field. It also acquired other soft drink brands like Mountain Dew in 1964. Coca-Cola on the other hand confined itself to the beverage field with the introduction of TaB (a sugar-free diet version of Coke), then Sprite and Fresca.
Pepsi’s watershed year was 1975 when it mounted the “Pepsi Challenge”, a series of filmed blind-taste tests in which the majority of participants chose Pepsi over Coke as their preferred soda. This boosted Pepsi sales and escalated the rivalry between the two “Big Sodas”, kicking off what became known in America from the Sixties on as the “Cola Wars” or the “Soda Wars”. Until the Pepsi Challenge happened Coca-Cola had been coasting somewhat, complacently presenting itself as “the real thing” in contrast to the upstart pretender. Coca-Cola’s response to PepsiCo’s move was to promote the then most popular personality on US TV Bill Cosby as “the face of Coke”.
Pepsi embarked on a marketing campaign which depicted itself as a younger, hipper brand than its outmoded rival. Drinking Pepsi was a cool thing to do (so proclaimed the marketers), when stacked up against the tired, same old, same old Coke alternative. Integral to PepsiCo’s campaign was the recruitment of celebrities to endorse the beverage, the centrepiece of which was Michael Jackson. Other pop music icons followed the success of Jackson’s involvement with the product – David Bowie, Madonna, Lionel Ritchie, etc. Ad men heralded Pepsi as “the choice of a new generation”.
In the early Eighties, under pressure from Pepsi’s inroads into the market, Coca-Cola introduced diet Coke, a caffeine-free soda, followed by a complete redesign of Coke—given the secret codename “Project Kansas”—the outcome in 1985 was a sweeter Coke, New Coke. To counter Pepsi’s sweeter, more syrupy taste, Coca-Cola replaced sugar with corn syrup (which also reduced the production cost). New Coke however proved a disaster for the company, provoking a huge backlash from loyal consumers, some described the new taste as like “two day old Pepsi”. Southern fans of Coke, where Coca-Cola (and Pepsi) had its origins, were especially offended.
Faced with an avalanche of criticism, Coca-Cola brought back the old formula under the name “Coca-Cola Classic”. New Coke for its part got rebranded but never really took off and was eventually discontinued. Disappointment that it was, New Coke did provide one unanticipated positive – it managed to reawaken in many Coca-Cola drinkers suffering from a bout of ennui a new craving for the original taste (Little).
The feud between Pepsi and Coke has continued to the present, in contemporary times reaching social media and outer space. In 2011 the hardball rivalry saw PepsiCo target Coke’s famous, family-friendly mascots, the polar bears and even every child’s favourite stranger Santa.
Vintage 1950s ad: “Pepsi-Chic” before it went “Pepsi-Hip” (Robt Levering)
The battle between the brown carbonated sugar beverages has seen Pepsi and Coca-Cola go tit-for-tat. Coke had the contour bottle so Pepsi introduced the swirl bottle, Pepsi had Gatorade so Coke had Powerade, Coke had Fanta so Pepsi had Tropicana, and so on. Only the decision by Pepsi to branch into non-beverage fields has not seen Coca-Cola follow suit. Some industry observers attribute Pepsi’s declining market position commensurate to Coke (2008–2018: Pepsi’s market share fell from 10.3 to 8.4 per cent, while Coca-Cola’s rose from 17.3 to 17.8 per cent) to it’s preoccupation with diversification leading to the company losing its focus on its flagship product (Weiner-Bronner; Beverage Digest).
World domination through the prism of “Coca-colonisation”
Both Coke and Pepsi are deeply embedded in American culture and psyche as national icons. Coca-Cola’s brand recognition goes beyond this, embodying a universality that is global in reach. Mid-century Coca-Cola officials gleefully crowed that the drink is the “most American thing in America”. Robert W Woodruff, Coca-Cola president for over three decades, declared it to be “the essence of capitalism”. World War II enabled Coca-Cola to spread the word via US servicemen by cleverly promising (and delivering) them the sugary product in overseas theatres of war. The seemingly unstoppable postwar expansion of Coke as the company sought to extend its market to all corners of the world met with some international pushback. Certain European states like France (spurred on by agitation by the French Communist Party) staunchly resisted the drink’s introduction to their domestic markets, an attempt as they saw it to “Coca-colonise” other sovereign nations. In such countries the arrival of Coca-Cola bottles on their city shop shelves was seen as a pervasive evil, a symbol of American cultural imperialism, an all-consuming Americanisation which undermines the way of life and values of their society⍟.
Footnote: the Big Sodas rivalry had ad companies of second-half 20th century working overtime to come up with the jingle or tagline that would give their client the edge … from Coca-Cola’s early go-to “The pause that refreshes” to the TV age’s standards “Things Go Better with Coke” and “It’s the Real Thing” (the words “real” and “real thing” recur over the decades in Coca-Cola’s ad campaigns). Pepsi for its part, went from “more bounce to the ounce” in 1950 to its 1960s accent on youth, “Come Alive! You’re in the Pepsi Generation” and numerous variations over the years on this theme (“young” and “generation” are the key Pepsi words that recur through the jingles and slogans).
Photo: George Marks/Retrofile/Getty
Postscript: The taste difference!
Most people know that Coca-Cola originally used small amounts of cocaine in the famous beverage (scandalous as that may seem to modern sensibilities), but what is it that makes the two brown-coloured soft drinks taste a bit different? They both have carbonated water, sugar, colour Caramel E150d, phosphoric acid and natural flavourings. Well, according to Malcolm Gladwell (Blink, 2005), its the hints of citrus acid that is added to Pepsi that sets the drinks apart – cf. Coke’s citrus-free, sweet vanilla and raisin flavours.
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✱ Pepsi was always coming from behind in the formative period, by the time PepsiCo was founded the Big Coke was already selling about one million gallons a year
⍟ the familiar bottle of Coke is boundless as well as ubiquitous, having been carried under the North Pole and into outer space
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Articles and sites consulted:
‘Why Coke is winning the cola wars’, (Danielle Wiener-Bronner), CNN Business, 21-Feb-2018, www. money.cnn.com
‘COKE VS. PEPSI: The Amazing Story Between the Cola Wars’, (Kim Bhasin), Business Insider, 02-Nov-2011, www.businessinsider.com
‘Ever Wondered What’s The Difference Between Coca-Cola and Pepsi? It’s Literally ONE Ingredient’, (Bobbie Edsor), Delish, 03-Dec-3020, www.delish.com
‘The Universal Drink’, (E.J.Kahn Jr), The New Yorker, 06-Feb-1959, www.newyorker.com
‘The Cola Wars’, (Melissa Santore), Ranker.com, 20-Feb-2020, www.ranker.com
During the Cold War not many people outside of the USSR knew of the Russian penchant for it’s ideological rival’s second most popular cola drink. The Soviet Union’s love affair with Pepsi-Cola started with a meeting between Premier Khrushchev and US Vice-President Nixon in 1959. As part of what was a rare cultural exchange for the time, Khrushchev was introduced to the sugary, carbonated beverage, the taste apparently meeting with the Soviet premier’s approval.
⏏️ Pepsi’s role in the Nixon-Khrushchev Kitchen Debate
So began a novel bilateral trade. With Russian rubles not valued outside of the USSR, a barter system was forged. The Russian and other Soviet people got to drink Pepsi, in return vodka (in the form of the state-owned brand Stolichnaya) was made available in the US market.
Things went smoothly enough until 1980…the Soviet invasion of Afghanistan threatened the Pepsi deal. Americans boycotted Soviet goods including Stolichnaya…the popular vodka’s sales plummeted in the US. In the late 1980s the Pepsi company—mindful that seven billion Russians were drinking Pepsi each year—hit upon a new and more unorthodox US/Soviet exchange deal.
To keep the Pepsi flowing to Russian consumers, Pepsi accepted a flotilla of ageing Soviet warships in lieu. Taking possession of 17 rusty Soviet warships plus a few other auxiliary naval vessels. The fleet was far from being in A1 shipshape condition, but it enabled the soft drink giant to boast that it possessed the world 6th most powerful navy at the time – on paper if not on water!
(Source: www.naval-encylopedia.com)
Pepsi’s move earned the displeasure of the US military but the company CEO’s slightly disingenuous rejoinder to the Pentagon was that it was dismantling the Soviet fleet faster than they were!*
Pepsi didn’t hang on to the decidedly decrepit Russian fleet for long, selling the warships to a Swedish scrap-recycling business in the early 1990s. A few years later Coca-Cola usurped it’s place in the Russian market.
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* undoubtedly Pepsi’s billion-dollar stake in the USSR remained it’s primary motive
Sites/works consulted: 👁🗨👁🗨👁🗨
’When the Soviet Union Paid Pepsi in Warships’, (Anne Ewbank), Atlas Obscura, 12-Jan-2018, www.atlasobscura.com)
‘ How Pepsi became the 6th largest military in the world‘, (Tom Kirkpatrick, We Are The Mighty, 28-Jan-2019, www.wearethemighty.com
‘Pepsi Navy: When the Soviets Traded Warships for Soft Drinks’, Sandboxx, 06-Nov-2020, www.sandboxx.com
At this point in the war on COVID-19 there are over 120 separate vaccination projects—involving Big Pharma, the public sector, academe, smaller biotech firms and NGOs—all working flat out worldwide trying to invent the ‘magical’ vaccine that many people believe will be necessary to bring the current pandemic to an end. While nothing is guaranteed (there’s still no cure for the HIV/AIDS virus around since the Eighties), the sheer weight of numbers dedicated to the single task, even if say 94% of the efforts fail, there’s still a reasonable chance of success for achieving a vaccine for coronavirus✱ [“Former WHO board member warns world against coronavirus ‘vaccine nationalism’”, (Paul Karp), The Guardian, 18-May-2020, www.theguardian.com].
(Source: CEPI)
If and when the vaccine arrives, will it get to those in greatest need? The way the coronavirus crisis has been handled between nations so far doesn’t exactly give grounds for optimism. Collective cooperation on fighting the pandemic has been sadly absent from the dialogue. We’ve seen the US attack China over coronavirus’ origins with President Trump labelling it the “China virus” and the “Wuhan virus”, and China retaliating with far-fetched accusations of America importing the virus to Wuhan via a visiting military sporting team, and the whole thing becoming entwined in a looming trade war between the two economic powers❂.
(source: www.socioecomonics.net)
The advent of COVID-19 has introduced us to terms such as “contact tracing”, “social distancing”, “covidiot” and the like, but recently we‘ve been hearing a new term thrown about, one with more ominous implications – “vaccine nationalism”. As the scattered islands of scientific teams continue the hunt for the “silver bullet” that presumably will fix the disease, there is a growing sense that the country or countries who first achieve the breakthrough will adopt a “my nation first” approach to the distribution of the vaccine. There are multiple signs that this may be the reality…the US government has launched the curiously named “Operation Warp Speed”, aimed at securing the first 300 million doses of the vaccine available by January 2021 for Americans [‘Trump’s ‘Operation Warp Speed’ Aims to Rush Coronavirus Vaccine’, (Jennifer Jacobs & Drew Armstrong), Bloomberg, 30-Apr-2020, www.bloomberg.com]. In the UK Oxford University is working with biopharma company AstraZeneca to invent a vaccine that will be prioritised towards British needs.
(Source: IndiaMart)
A “vac race”
Not to be outdone, China, operating through Sinovac Biotech, is at the forefront of testing potential cures for COVID-19. The pressing need for a vaccine to safeguard its own population aside, Beijing’s rationale includes a heavy investment in national pride and the demonstration of Chinese scientific superiority (cf. Trump’s motivation). The Sino-US rivalry over finding a cure for the pandemic has been compared to the Cold War era ”Space Race” between the US and the USSR (Milne & Crow). A political war of superpower v superpower on a new battlefield…noted as bring part of a longer trend of the “securitisation of global health “ where the health objective increasingly has to share the stage with issues of national security and international diplomacy (E/Prof Stuart Blume, quoted in ibid.).
An environment of competition in lieu of collaboration
Even prior to the start of serious talk about the vaccine, the coronavirus crisis was provoking an “everyone for themselves”, non-cooperative approach. With the onset of equipment shortages needed to combat the virus outbreak, an international bunfight developed over access to PPE (personal protection equipment). 3M masks destined for Germany were intercepted by the White House and re-routed to US recipients; French president, Emmanuel Macron, seized millions of masks that were on route to Sweden; Trump purportedly tried to buy CureVac, a German biopharma company working on the vaccine [‘Why vaccine ‘nationalism’ could slow the coronavirus fight’, (Richard Milne & David Crow), Financial Times, 14-May-20320, www.ft.com/]. India (under Hindu nationalist Modi), the world’s largest supplier of hydroxychloroquine (touted as a cure for the virus), withheld it from being exported. As part of this neo-protectionism of the corona medical trove, more than 69 countries banned the export of PPE, medical devices and medicines [‘A New Front for Nationalism: The Global Battle Against a Virus’, (Peter S Goodman, Katie Thomas, Sui-Lee Wee & Jeffrey Gettleman), New York Times, 10-Apr-2020, www.nytimes.com].
Politics and economics over science and global health?
Will narrow self-interest and economic advantage prevail? Will Big Pharma sell the virus panacea to the highest bidders? A zero-sum game in which those who can’t afford the cost fall by the wayside? There are precedents…the distribution of the H1N1 vaccine for the 2009 Swine Flu was predicated on the purchasing power of the higher-income countries, not on the risk of international transmission [‘The Danger of Vaccine Nationalism’, (Rebecca Weintraub, Asaf Britton & Mark L Rosenberg), Harvard Business Review, 22-May-2020, www.hbr.org/]. The availability of the vaccine is seen as integral to restarting the global economy (Milne & Crow).
The eclipse of multinationalism?
With WHO in the eyes of some international players seemingly tarnished by its relationship with China, and by Trump’s undermining of its effectiveness by threatening to withdraw American support, multilateralism is on the back foot. There have been some attempts to stem the tide, CEPI (Coalition for Epidemic Preparedness Innovations’)▣, with a mission of promoting a collective response to emerging infectious diseases, is trying to advance both the development of coronavirus vaccines and equitable access to them (http://cepi.net/).
Getting to an “equitable distribution” of the vaccine
As CEPI recognises, and is committed to redressing, there is no formal mechanism in existence for fairly distributing vaccines for epidemics…one step being taken is to try to get an equitable distribution strategy accepted by the G20 nations. The only way forward to ensure that allocation is fair and prioritised according to needs is through a coordinated global effort (Milne & Crow; Weintraub eg al).
The fear is thus well founded that if and when a vaccine is discovered and developed, the richer nations will secure a monopoly over it and prevent it getting to poorer nations where it would be urgently needed by the elderly, the immunocompromised and the “first responder” health workers. There are many who hope fervently that a different scenario will be played out, that a more enlightened type of self-interest will prevail. This would require the wealthier countries seeing the bigger picture – the danger that if they don’t redistribute the cures, the outcome will be an adverse effect on the global supply chain and on the world‘s economies. As Gayle Smith (CEO of “One Campaign“, a Washington-based NGO fighting extreme poverty) put it: it is in the richer countries‘ own interests ”to ensure that the virus isn’t running rampant in other countries” (Milne and Crow). “If an international deal can be reached“, CEPI CEO Dr Richard Hatchett said, ”Everyone will win, if not, the race may turn into a free-for-all” with the losers in plain sight [‘Why the race for a Covid-19 vaccine is as much about politics as it is about science’, (Paul Nuki), The Telegraph (UK), 10-Apr-2020, www.telegraph.co.uk].
(Source: www.euroweeklynews.com)
PostScript: Its no done deal! – reining in the wave of vaccine optimismEven some of the scientists working on developing a vaccine are less than sanguine about the prospects. As immunologist Professor Ian Frazer (UQld) explains: there is no model of how to attack the virus. Trying to come up with a vaccine for upper respiratory tract diseases is complicated due to “the virus landing on the outside of you”, as we have seen with the common cold. What’s needed is “an immunise response which migrates out to where (the coronavirus) lands” [‘No vaccine for coronavirus a possibility’, (Candace Sutton), News, 19-Apr-2020, www.news.com.au].
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✱ a matter of getting “the maximum shots on goal” as Jane Halton, a former member of the WHO board, put it
❂ with Trump aided and abetted in this mission by Peter Navarro (who Bloomberg calls “Trump’s Trade Warrior”) enthusiastically leading the charge in the undeclared trade war with China
▣ with funding from the Bill and Melinda Gates Foundation
In the age of virtual communication and instant electronic transactions, many people see the traditional mail service as less and less relevant in our daily lives, it is fashionable these days to scornfully dismiss it as “snail mail”. It may seem passé to many but the international postal system is still an active and vital service that bridges the gaps between vast distances, and it is one that is governed by a UN world body with a continuous history back to the last quarter of the 19th century.
The Universal Postal Union (UPU), (French: Union Postale Universelle), originally the “General Postal Union”, was established in 1874 with the task of laying down regulations and bringing uniformity to the setting of tariffs (including the transit costs) for mail exchanges between countries. Prior to it’s inception, a complicated, loose bilateral system prevailed where an individual country would have to establish postal treaties separately with each other country it wished to correspond with. Sometimes this involved calculating postage for each leg of the journey and finding mail forwarders in a third country if there was no direct delivery to the country of destination [‘Universal Postal Union’, www.parcelsapp.com/].
The initial mid-19th century impetus to create such a global entity came from American frustrations at postal communication with Europe, especially with France, but the decisive thrust came from Heinrich von Stephan, a senior Prussian postal official from the North German Confederation (and later the Reichspost), whose advocacy prompted the Swiss government to host the inaugural international postal conference leading to the formation of the UPU.
According to it’s own mission statement, the UPU is “the primary forum for co-operation between postal sector players…(helping) to ensure a truly universal network of up-to-date products and services” (www.upu.int). It is also tasked with responsibility for the coordination of member nations in promoting efficient postal services including the monitoring of postal security, stamp design, etc.
UPU’s role also includes the resolving of any polemical issues that may arise between member nations. The great explosion in E-commerce trade has tended to exacerbate cost anomalies in postage tariffs. In 2018 US companies were paying twice as much to mail an item to a US customer than it cost China (and other subsidised Asian countries) to send items to the same US customer (www.parcelsapp.com/). US president, Donald Trump, threatened to pull the US out of the international body if it failed to make reforms to the system (this provocative move has been part of the outlier American president’s global trade war campaign against China). The US exit was averted in 2019 with the brokering of a deal allowing it to start setting its own postal rates from July 2020, with other high-volume mail member-countries to follow suit from 2021 [‘U.S. Avoids Postal ‘Brexit’ as Universal Postal Union Reaches a Deal’, (Abigail Abrams), Time, (26-Sep-2019), www.time.com].
This issue aside, the habitually low-profile UPU has been largely free of controversy✶, but one other minor discordant note occurred in 1964 when the Fifteenth Congress of UPU voted by a large majority to expel South Africa from membership. This was controversial because several country delegates raised the objection that the action was unconstitutional, arguing that a member could only be expelled for violating UPU’s regulations. The South African delegate initially refused to budge but did so after other African delegates demanded his expulsion [“Universal Postal Union.” International Organization, vol. 20, no. 4, 1966, pp. 834–842. JSTOR,www.jstor.org/stable/2705750. Accessed 21 May 2020].
The UPU has gone from a largely Eurocentric organisation in 1874 to a truly universal one today with about 192 countries of the world (plus territories) signed up۞. A number of other non-member states and territories get their mail routed through a third (member) country including Andorra (through France and Spain), Taiwan (through Japan and US), Kosovo (through Serbia), Northern Cyprus (through Turkey), Micronesia (through the US) and Somaliland (through Ethiopia) [‘List of members of the Universal Postal Union’, Wikipedia, http://en.m.wikipedia.org].
Berne HQ (Source: www.jurist.org/)
Footnote: UPU is said to be the world’s second-oldest intergovernmental organisation, after the International Telecommunication Union (ITU), founded 1865, which, like the UPU, is a specialised agency of the UN.
⚘ᵜ⚘ᵜ⚘ᵜ⚘ᵜ⚘ᵜ⚘ᵜ
PostScript: Addressing the problem of the unaddressed
The Postal Union engages in a number of ongoing projects, one of which is the “An Address for Everyone” global initiative – Deirdre Mask has made note of the surprising fact (at least to those in the relatively affluent First World) that even today, the majority of people in the world do not possess a street address!◙ UPU involves itself in making a contribution to remedying this situation, because of the spin-off benefits that such a simple thing as having a prescribed address brings…providing the recipients with “a legal identity, allowing them to participate in the political process, be part of the formal economy” including e-commerce, access credit, receive personal services and engage with the “information and communication age” [Deirdre Mask, The Address Book, (2020); www.upu.int/].
✶ it’s not surprising if a lot of folk have never heard of the Universal Postal Union, the UPU has traditionally followed the low-profile path of the quiet achiever. As Richard John has noted, it’s preference has been to negotiate policies well out of the limelight, gaining it something of “a reputation as a secretive Postal Illuminati“…by keeping out of politics, John contends, this allows the UPU to be so effective (‘Here’s why Trump threatened to pull out of a 144-year-old postal treaty’, Original World News, 19-Oct-2019, www.originalworldnews.com)
۞ Palestine has special observer status; post-apartheid South Africa was readmitted in 1994
◙ and not just confined exclusively to the slum and shantytown dwellers of the Third World, Mask points to the phenomena existing in parts of rural America such as West Virginia
All the travel and aviation pundits say commercial flying—when it does finally get airborne again—will never be the same again. There are so many imponderables and unknowns about the enigmatic future of airline travel, the cup of endless speculation nonetheless runneth over.
No one, inside the industry or out, knows when international flights will resume normal services. Like everything else it hinges on containing, and ultimately on subduing the pandemic (the “holy grail” of the vaccine?). When it does happen and things return to ‘normal’, we know it will be a ‘new’ normal…so let’s concern ourselves now with what it might look like?
What’s on the cards at airports in the future?
Airports will need to design or augment existing health and safety measures to stack up to the new requirements. Airlines will be trying to minimise the risk of human-to-human contagion, which’ll probably mean touchless check-ins and more utilisation of self-service E-ticketing machines, thermal scanning of body temperature, increasing use of biometrics. The imperative of social distancing will still be with us, airports will have to adhere to the safety edicts of keeping everyone 1.5m apart from everyone else. But will this be feasible, or even partly attainable? Airports are people magnets, people come en masse – to fly, to work, to farewell other people and to welcome others on return.
A pessimistic prognosis with very little “blue sky”Will we end up seeing airports despairingly throwing their hands up in the air and saying it’s all too much? If the prescribed public health measures include things like wiping down the handles of every piece of baggage and all the trays as they go through the scanner, that will add intolerable delays to an already tortuously long process for people at peak-travel times (‘Air Travel Is Going to Be Very Bad, for a Very Long Time’, (James Fallows), The Atlantic, 11-May-2020, www.theatlantic.com). The CEO of one of the world’s busiest airports, London’s Heathrow, is on record as stating that social distancing will be impossible to maintain✱ (‘COVID-19 and travel: Heathrow boss says social distancing “impossible” in airports’, (Neil Callanan), Traveller, 04-May-2020, www.traveller.com.au).
Will passengers turn up at the luggage check-in fully decked out in hazmat suits, smelling like they’ve been dipped by their heels in a vat of disinfectant? Will face masks, already in common use, gloves and even face shields, be mandatory for everyone in airports? Attaining standardised practice in these and other aspects of the changing landscape of flying, is a long way off happening.
(Source: www.theweek.in)
A Covid-19 health pass?
Strict health screening for incoming passengers at international borders in the coronavirus age is a given, but future travellers may need to present new documents along with their international passport. Flyers may need some kind of “proof of good health” to travel internationally – much like the certificate you need now to show you’ve had the required inoculations to enter certain regions prone to yellow fever, malaria, etc. Alternately, these “immunity passports” may be used to record negative coronavirus test results❅ (‘Face masks, blood tests and onboard janitors. Flying’s about to feel very different’, (Karen Gilchrist), CNBC Traveler, 17-May-2020, www.cnbc.com; ‘The era of peak travel is over’, (Sarah Khan), Vox, 22-Apr-2020, www.vox.com).
Social distancing on planes, an oxymoron?If we turn to the aircraft flights themselves, how will they work? Some of the world’s international carriers are considering removing the middle seat in jets (as a temporary move only) to enhance space between passengers⊞. Ryanair is the first carrier to outlaw toilet queues, passengers are now required to raise their hand to request a toilet visit.
Transforming seats intoanti-virus shelters
Airplane designers are exploring the possibilities of converting the present flying “sardine tins” into spaces that observe social distancing. ‘Janus’ seats are one option advocated by the Italian company Aviointeriors…a double-S shaped configuration which juxtaposes passenger seats in an opposing direction to each other. Passengers are also separated by a high transparent thermoplastic shield or screen. The company had an alternate design which retains the standard seating configuration but attaches a separating perspex screen to each seat (‘Aviointeriors proposes post-COVID-19 Janus seats’, (John Walton), Runway Girl Network, April 2020, www.runwaygirlnetwork.com). The designs are still in testing stage but one drawback is that glass dividers adds another hard surface to passenger space which may be infected by contaminated droplets. the view of Peter Harbison, CAPA Centre for Aviation chairman emeritus, is that the removal of middle seats won’t be sufficient to ensure the social distancing requirement on airplanes, that the outcome is not realistically attainable.
(Image: Aviointeriors S.p.A.)
Hermetically-sealed flying?
Clearly, the level of on-board hygiene will need to ramped up post-corona. There’s talk about having cleaners on-board during flights, to target the plane’s tactile zones such as toilet doors. One objective airlines will definitely aim for is minimalism, they’ll want to radically pare back the on-board fringe items. Touchscreen entertainment might disappear, pre-packaged meals left on seats prior to boarding to avoid contact, the end of free drinks, etc (Gilchrist).
The financial side
With all the uncertainty of what’s in store for future travel, one thing that will definitely change is the economics of travel. From the consumer side, if airlines resort to removing seats, therefore capping the passenger load of a jet, it’s hard to imagine how that will not result in a ticket price hike. IATA has estimated that with aircrafts only two-thirds full, average fares would jump up to between 43 and 54 per cent✪. Airlines have reckoned that they need to fill 77 per cent capacity of the aircraft just to break even (Gilchrist). Travel industry pundits have indicated that most leisure travellers won’t be willing to pay more if the option of affordable travel is taken away (‘Social distancing on planes during coronavirus: Middle seat won’t stay empty for long’, (Dawn Gilbertson), Traveller, 04-May-2020, www.traveller.com.au).
Some industry insiders have predicted the end of over-tourism, reasoning that for financial reasons or because of the new layers of bureaucracy required, travellers will be less inclined to travel as frequently as before the crisis, and with it will we see the demise of the jet-setting lifestyle and the addictive travel pilgrim. It may be too premature to make such a dramatic call, the 9/11 terrorist attacks put many people off international flying, but not permanently, the industry bounced back its pre-2001 level eventually, and this is an industry that employs over 10 per cent of the global workforce (Khan).
Certainly though, for the foreseeable future, tourists will probably think twice about venturing to the world’s most heavily populated destinations (Venice, Rome, Paris, New York, London, Dubrovnik, the Pyramids of Giza, the Acropolis, the Great Wall, etc.). A whole new generation of ‘agoraphobes’ may decide to avoid travelling during the peak season and seek out the less-travelled, remoter locations to holiday.
A respite from the ecological ‘footprint’ for Venezia and Plaza San Marco (Source: www.sites.middlebury.edu)
Business travel to recede?
Another matter to ponder is whether business travel will be reduced when the Covid-19 dust settles, will professionals and business folk still travel O/S to exotic locations for conferences? The lockdowns and restrictions of the last few months meant that the overwhelming majority of conferences went virtual. Administrators are no doubt discovering that they can just as meaningfully conduct business meetings by Skype or by video-conferencing, without the need for everyone to be in the same room together. If so, this may well have a negative knock-on affect for economy class tickets (which are subsidised by business and first class) (‘How Much of Airlines’ Revenue Comes From Business Travelers?’, www.investopedia.com).
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✱ we have recently witnessed that once beaches have been reopened to the public, it is virtually impossible to police distance restrictions on packed beachfronts
❅ Emirates have taken a different tact, trialling a rapid “10-minute” blood test at the departures gate (insiders have questioned whether this would be feasible to implement at high-volume times (Gilchrist)
⊞ operators already indicating they will move to vacant middle seats include Southwestern, Delta, American and Qantas – the Australian carrier later reneged on this claiming the risk of Covid infection on an aircraft was minimal (‘Qantas passengers angered after airline reintroduces the middle seat’, 20-May-2020, www.news.com.au/)
✪ that said, some airlines may, for the immediate period, offer travellers discounted fares and deals to reignite interest in overseas travel …“struggling operators (will) incentivize flyers to return to the skies” (Gilchrist)
I think most people, outside the industry, think the answer to this question would be “not a lot”. Unfortunately for the airlines, being grounded, being not able to utilise their assets to realise revenue, is only the start of the problems. In April it was estimate by the industry researcher Cirium that there were over 16,000 commercial passenger aircraft no longer flying – around 62% (the numbers would not have decreased since then) [‘Here’s What You Do With Two-Thirds of the World’s Jets When They Can’t Fly’, (Anurag Kotoky, David Stringer & Ragini Saxena), Bloomberg, 17-Apr-2020, www.bloomberg.com]. The severity of the blow to the airline industry internationally can hardly be understated, coming soon after IATA (International Air Transport Association) predicted (in December 2019) a US$29.3bn net profit for 2020 [http://airlines.iata.org].
The norm under coronavirus: flights with a handful of passengers (Photo: Jennifer Flowers / AFAR
Put simply, while the primary income from the airlines’ raison d’être, the loss of paying passengers, dries up, the fixed costs, the invariables, don’t go away for both the airports and the airlines. Let’s take the airports first, they make look deserted when you glimpse images of them on the internet or television, but they haven’t closed down altogether, they haven’t morphed into ghost towns. Airports still have infrastructure and most still run at least a limited service of domestic flights, and on the international scene, though closed for tourism, emergency flights still happen. So, with people and the coronavirus still around, the airports need upkeep. Surface cleaning with virus and bacteria killing disinfectants, hand-sanitising stations, etc.
A Californian “desert dormitory” for grounded jets (Photo: Mark Ralston / AFP via Getty Images)
The immediate problem for airlines in the Covid-19 crisis is where to put the multitude of grounded jets. The optimal place, leaving other considerations aside for a minute, is determined by climate. Aircrafts on the ground, exposed to the elements for any significant length of time, will do best in a dry climate with low humidity. This places the major airlines of Eastern Asia with their wetter, steamier climes at a disadvantage. Conversely, Australia’s great interior continental deserts are a favourable location. QANTAS and some other international airlines have accordingly parked their jets in Alice Springs (Central Australia)✫. In America [‘Parking in a pandemic: Grounded planes scramble for storage space’, (Paul Sillers), CNN, 22-Mar-2020, www.cnn.com]. Similarly, in America, US airlines have sought out long-term storage facilities in the hospitable desert environments of western USA [‘What It Takes for an Airline to Ground Its Fleet Amid Coronavirus’, (Jessica Puckett), Conte Nast Traveler, 31-Mar-2020, www.cntraveler.com].
A lot of European airlines are not so lucky, forced to use the local airports in Europe where some of the runways have been decommissioned to make way for the grounded planes. Aircraft parking in some of the European hubs can also be exorbitantly expensive, charging up to US$285 an hour (although the cost varies greatly from location to location). Sometimes the remotely located (long-term) storage facilities are referred to as aircraft ‘boneyards’❈ [‘Aircraft Boneyards, MRO & Storage Facilities in Europe’, Airplane Boneyards, www.airplaneboneyards.com].
Thwarting the nesting birds (Photo: Reuters / Elijah Nouvelage)
When happens with the planes taken out of service and parked? Although not in current use, they still have to be maintained so that they are ready when the airways open up again. Planes are subjected to regular, heavy mechanical maintenance checks, the hydraulics and the flight control system needs to be finely monitored. When the aircrafts are being stored long-term, the process followed has been described as a kind of ”aeronautical embalming” (Sillers) – fluids require to be drained (to prevent rusting of the landing gear), as the jets are housed al fresco everything needs to be covered and/or protected – the engine intakes and exhaust areas, external instruments, the tyres, the windows, the entire airframe (to prevent corrosion). Maintenance staff also have to check the planes for bird-nests and incursion from insects (grilles are sometimes affixed to keep birds outs). Every two weeks the wheels need to be rotated and the batteries reconnected (Sillers; Kotoky et al). Yes, it’s true to say that aircraft maintenance and storage firms are busy at the present time.
To try to offset, at least partly, the crippling hit from of the coronavirus crisis, the loss of multi-billion dollars by the industry, some airline companies have switched their (unused) passenger jets to become freight-carriers (in addition to using their usual freighters). Scoot, for instance, in February commenced bi-weekly hauls from Singapore to Nanjing and Guangzhou transporting air cargo only. Cathay Pacific carries freight on passenger-less flights from Hong Kong to three Chinese cities∅ [‘Airplanes Without Passengers Start Coronavirus Recovery’, (Will Horton), Forbes, 10-Mar-2020, www.forbes.com].
EndNote: In March, even after extensive international flight restrictions had come into effect, a number of airlines were still undertaking their scheduled flights with zero passengers on board. One of the reasons for such a seemingly nonsensical practice was to abide with EU regulations which require the airlines to fulfil their allotments or risk losing the flight slots [‘Why Airlines Are Flying Empty Ghost Planes’, ((Caroline Delbert), Popular Mechanics 11-Mar-2020, www.popularmechanics.com].
____________________________________________________________________ ✫ north of five billion dollars’ worth of aircraft enjoy the arid air of Alice Springs Airport (from SilkAir 737s to Singapore 380s) [‘How expensive will air travel be after the Covid-19 crisis?’, (Cynthia Drescher), CNN, (14-May-2020), www.cnn.com] ❈ quite apt for housing a lot of the older, less-efficient planes, which will be retired and either be sold-off or used for parts and then scrapyarded ∅ there’s precious little upside for the airline industry at the moment, but one positive for the jets still in the air is the record low world oil prices at the present
Hugo Boss … luxury watches, fragrances, men’s suits and fashion wear and accessories, Nazi uniforms. Wait! Run that last one past me again? Yes, it’s true. Hugo Boss AG＊, that doyen of international fashion houses with annual revenue exceeding €2.7 billion (2018) and over 1,100 stores worldwide, provided the German Nazi Party, with their uniforms during (and prior to) the Third Reich. Although you wouldn’t know so from a perusal of the Hugo Boss website which keeps a firm lid on the company’s unsavoury past❂.
The clothing company was started in Metzingen (southern Germany) in 1924 by the eponymous Hugo (Ferdinand) Boss…it commenced supplying the NSDAP (National-Socialist Workers Party) with their brown military uniforms, according to the company’s own claim, in 1924 (the year in which Hugo Boss was founded)∅. Initially Boss designed and provided the standard Nazi brown-shirted outfits including Stürmabteilung (SA) uniforms, Nazi workwear, and Hitler Youth uniforms. In the Depression Boss’s company was like many, many businesses severely hit and Boss was forced into bankruptcy in 1931. That year was momentous for another reason, HF Boss joined the Nazi Party, an event that was to turn his fortunes round dramatically. At the same time the failed businessman also joined the SS (Schutzstaffel) as a “sponsoring member”.
By appointment to the Führer
Membership of the party meant more contracts for Hugo Boss as a favoured supplier of Hitler. Under the Nazi dictatorship Boss’ sales grew from 38,260 RM in 1932 to 3,300,000 RM in 1941 (Timm). Boss’ motives for joining have been attributed to “economic opportunism” and its clear that he saw the business advantages of tying his colours to the Nazi flagship, but there’s equal little doubt that his commitment to the Nazi cause was heartfelt (a photo of him with the Führer was said to to be one of the tailor’s most prized possessions)❊ [‘Hugo Boss’ Secret Nazi History’, (Fashion and War), M2M, (video, YouTube)].
🔻A Boss ad placed in the SS newspaper
Nazi fashionistas
From 1937 on, the relationship acquired an exclusivity, Hugo Boss made clothing only for the Nazis, including the black uniforms worn by the elite Nazi force, the SS (Boss didn’t design the uniforms worn by Himmler’s SS Corps, two party members unconnected to the company designed them). Boss continued to heavily advertise his fashions in the SS newspaper, Das Schwarze Korps, and fashionably chic the uniforms were! One of the pillars of the Nazis’ ideology was the pseudo-scientific belief in Aryan superiority, this involved showing the world what the “new man” looks like. There was no finer exemplar of this than the Wehrmacht military man, and this is where Boss provided the finishing touches. The firm’s stylish, sharply cut uniforms conveyed the desired outer appearance, the SS corporate identity that Hitler and the Nazis wanted to project to the world (Fashion and War).
HB as slave-labour drivers
From 1940 Boss used slave labour at it’s Metzingen textile factory, predominantly comprising women and later supplemented by the infusion of Polish and French POWs. The company (sans it’s founder), after decades of dodging accusations, finally came clean about it’s shameful Nazi collaboration, after being pressured into issuing a mea culpa in 1997 for the gross mistreatment of the workers. Later the corporation commissioned a book on it’s dark past association❏ [‘“Hitler’s Tailor” Hugo Boss apologises for using slave labour to make Nazi uniforms’, (Lauren Paxman), Daily Mail, 24-Sep-2011, www.dailymail.co.uk].
(Source: www.militaryuniforms.net/Pinterest)
A discounted form of justice
After the war Boss was tried along with other German collaborators by a regional Denazification tribunal. The man known as “Hitler’s Tailor” claimed in his defence that he only joined the Nazi Party to save his firm. The court found Boss to have been a “beneficiary of the system” and fined him 100,000 RM, made him sever all connexions with his own firm and stripped him of the right to vote, join a political party or professional organisation. However, on appeal, the fine was reduced by 75%, the other restrictions were lightened and his culpability was downgraded to ‘follower’ of the regime. Before the findings could be ratified by the French Military Government and the punishments imposed, Boss died in 1948 (Timm).
Endnote: Supping with the 卐 devil
Hugo Boss AG was far from the only company to profitably cohabitate with Hitler and the NSDAP. The list of big corporations doing mutually advantageous business was extensive, both within Germany and outside – including Volkswagen, Bayer, Coca-Cola, Nestlé, Kodak, Ford, General Motors, IBM, Siemens, Chase National Bank and Associated Press [‘Companies with Ties to Nazi Germany’, (Debra Kelly), Grunge, (Upd.17-Dec-2019), www.grunge.com].
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＊ Aktiengesellschaft (German limited company)
❂ either that or trying to conceal or gloss over the inconvenient truth of the corporation’s history, eg, “in the 1930s it produced uniforms for various(sic) parties around the time of the world war”, www.bangandstrike.com
∅ the firm’s advertising in the 1930s stated that it was a “supplier of National Socialist uniforms since 1924”, however research suggest that this overstates by four years the length of Boss’ association with Hitler and the Nazis [Elisabeth Timm, ‘Hugo Ferdinand Boss (1885-1948) und die Firma Hugo Boss: Eine Dokumentation’, (Metzingen Zwangsarbeit – Forced Labour), MA Thesis, 1999]
❊ it was a ‘reunion’ of the two humble German corporals from World War I
❏ author Roman Koester wrote: “it’s clear that (Boss) did not just join the party out of economic calculation…he was a convinced Nazi” (Hugo Boss, 1924-1945. A Clothing Factory During the Weimar Republic and Third Reich)
No organisation has left a larger footprint on Hong Kong‘s long colonial experience under the British (1841-1997) than the hongs (see Endnote). And one British hong that has been especially significant in shaping the course of British (and beyond) Hong Kong has been Jardine, Matheson. The company under the direction of Scots William Jardine and James Matheson arrived in Hong Kong on the ground floor, securing lot No. 1 on Hong Kong Island in the initial land sale by the British colonial administrators in 1841 [‘Jardine, Matheson – company history’, www.jardines.com].
Jardine’s original business premises on Causeway Bay ⍗
Jardine, Matheson Co Hong Kong replaced the firm’s previous base in Canton (Guangzhou). From Hong Kong (which soon become Jardine, Matheson’s headquarters) and from the startup of it’s Shànghâi operation a couple of years later, the company laid the foundations of it’s fortune initially from a highly profitable trade of smuggling opium (as well as tea, silk and cotton) into mainland China from South Asia. Jardine, Matheson quickly diversified into more ethical and legal enterprises, adding steamships to their portfolio from the 1850s (China Coast Steam Navigation Co, Indo-China Steam Navigation Co, Yangtśe Steam Navigation Co) which serviced the trade routes to Japan, Singapore, Calcutta, Manila and Vladivostok [‘Jardine, Matheson & Co.SteamNav. Co / Indo-China Steam Nav. Co / Yangtse S.N. Co.’, www.theshipslist.com].
Taipan Wm Jardine ⍗
Jardine Matheson, a ubiquitous hong
Over the years Jardine, Matheson (JM Co) continued to diversify—cotton mills, property, breweries, insurance, financiers (of the first railway in China), sugar plantations, etc. All the while extending it’s trade links – Europe, Africa, Australia, America. Later JM Co got into hotels, motor vehicles, food and hygiene product wholesaling and so on. They functioned as Far East agents – for gunmakers amongst other manufacturers. JM Co even acted in a para-government capacity for consuls for foreign powers doing business in the region, as did other hongs [Jan Morris, Hong Kong: Epilogue to an Empire, (2000)].
⍗ Hong Kong Island
Butterfield and Swire
This particular British hong was something of a latecomer to Hong Kong compared to the pioneering Jardine, Matheson Co. The B&S trading house arrived on the Island in 1869. But Butterfield and Swire did not waste any time in developing into one of the most powerful players in the territory. The driving force behind the company was John Samuel Swire✱. Previously, Butterfield, Swire and his brother William, had started a shipping and trading business in Shanghai. The Swire hong’s road to riches was predicated, not on the illicit drug trade like JM Co, but on a combination of shipbuilding, sugar-refining, banking, insurance, mining, railroad building and other later entrepreneurial pursuits in the Far East, such as bottling Coca-Cola for Asia’s markets. Swire’s diverse subsidiaries have included the Taikoo Sugar Refinery, Taikoo Dockyard – which built mainly steamboats for the China Navigation Co, another Swire subsidiary. Since the 20th century another star in the business stable of the Swire Group☒ is the leading Asian airline Cathay Pacific. Early on Swire’s was also an agent for the Blue Funnel cruise ship line [Morris; ‘Butterfield and Swire’, (School of Oriental and African Studies, London University), The National Archives, http://discovery.nationalarchives.gov.uk].
Taipan JS Swire, “the Senior” ⍐(Photo: www.industrialhistoryhk.org)
JS Swire’s leadership and business style was unequivocally ruthless and uncompromising, he was very much of the “take-no-prisoners”, old school of business. Under “The Senior” Swire, the company played a telling part in driving some of the other Hong Kong frontier merchants into eventual business oblivion – as happened with two pioneering hongs, Dent and Co and Russell and Co (Morris).
Jardine, Matheson v Swire/Ewo v Taikoo☒Swire‘s great and enduring rival in Hong Kong (and in the East) has been JM Co. For both hongs in the formative years the main game was about buying and selling in China for the European market. As both firms added more business pursuits to their respective China Sea empires, they came more into competition with each other. Swire’s Quarry Bay Taikoo Dockyard and sugar refinery for instance was in stiff competition with Jardine’s Kowloon Whampoa dockyard and refinery [‘Taikoo Sugar Refinery’, Wikipedia, http://en.m.wikipedia.org].
⍗ SS Shuntien, built at Taikoo Docks
Dynastic hongs with staying powerThe Jardine presence in Honk Kong and at the helm of the company continues to this day through the Keswick family, ancestors of founder William Jardine’s sister. In a similar vein, the Swire name retains a connection with the present Swire Group (current conglomerate chairman Barnaby Swire is a descendent of John Samuel Swire and there are other ‘Swires’ in the management hierarchy).
(Photo: www.hkland.com/)
1984 and beyondAfter several years of tortuousnegotiations between the UK Thatcher government and China agreement was finally reached to hand over Hong Kong to Beijing in 1997. This left Swires and Jardines, two of the British hongs with most at stake, with the thorny issue of whether to stay in the erstwhile British colony or not under the hard-to-predict communists. Swires, who had earlier pulled its businesses out of China four year after the communist takeover (to later return), chose to keep its operational base in Hong Kong. Swires sought to work with the Chinese regime, entering into airline deals to give the PRC an interest in Cathay Pacific and secure a domestic foothold for itself. The Jardines conglomerate opted for a different strategy, choosing in 1984 to cut and run, switching its legal domicile from Hong Kong to Bermuda and delisting on the HK Stock Exchange in favour of London and Singapore. This move earned Jardines the ire of Beijing⇟. Even after the ink was dry on the hand-over decision, JM Co continue to lobby the British government hard (with Simon Keswick particularly vocal) to keep the territory out of Beijing’s clutches [Felix Patrikeeff, Mouldering Pearl: Hong Kong at the Crossroads, (1989)].
By the turn of the 21st century JM Co had regained ground from a successful drive into Southeast Asia markets and had once again firmly secured a beachhead on mainland China [‘A tale of two hongs’, The Economist, 30-Jun-2007, www.theeconomist.com ; ‘Jardine Matheson Returns to China’, The Economist, 02-Jul-2015, www.theeconomist.com].
Postscript: Tension between government and the merchant class
Officially, Hong Kong was run during the British era by a succession of governors, appointed from Whitehall. However a fundamental difference in raisond’être existed between the governors and the taipans. The governors were about the Imperial interest of Britain, in practical terms they sought to raise sufficient revenue to fund the colony’s administration. The sole concern of the plutocrats, the merchants, was self-enrichment and their natural inclination was to resist all efforts of the governor to raise taxes…this made for a generally very rocky relationship between the Crown Colony’s two power blocks with antithetical interests (Morris).
Endnote: Hongs and taipans
The term ‘hong’ (major foreign trading houses based in Hong Kong to trade with China) derives apparently from the Chinese word cohong, used to describe the guilds of Chinese merchants operating Canton’s trade with the West prior to 1842 (the “Thirteen Factories” or Canton System). In British Hong Kong each hong was headed up by a taipan (or series of taipans) who was the top boss man in the trading company. The hongs employed native (Chinese) personnel, called compradors, who acted as local “go-betweens” to facilitate business for the firms.
✱ “the Butterfield” in the partnership didn’t last long in Hong Kong with the autocratic Swire edging him into retirement within a short time
☒ both trading houses adopted Chinese business names: Ewo (JM Co) means ” State of happy harmony”; Taikoo (Swire) means “Great and ancient”
⇟ China already held a long-lingering grudge against JM Co … company principal William Jardine was one of the main advocates for Britain to take action against the Chinese Empire in retaliation for it closing down the lucrative opium trafficking trade (leading to the First Opium War)
Englishborn Fred Harvey learned the basics of good food service from a lowly station in a New York restaurant and later ran a successful cafe prior to the Civil War before entering the employ of the US railroads. Working first for the Hannibal and St Joseph Railroad and later others, Harvey was required to travel a great deal as a railroad agent. This gave him first-hand experience of how dismal railroad food and service was.
🔺 Frederick Henry Harvey (Photo: Wall Street Journal)
This was no secret to regular passengers, before Harvey came along, the railroads were serviced by local rough eateries or unscrupulous restaurant owners who would reheat the leftover dishes and serve them again as supposedly new to the next, unsuspecting train-load of hungry passengers. Some travellers wary of the dubious quality offered up, would bring their own ‘shoebox’ lunches of fried chicken and hard-boiled eggs but this didn’t prove a satisfactory alternative – after sitting in the train for a couple of days the food from home would quickly go off [‘Fred Harvey and the Harvey Girls: A Dollar, a Dream and a Dinner’, (John Koster) Historynet,www.historynet.com].
Business-savvy Harvey sensed there was a gap in the market and in 1876 he clinched a deal with the Atchison, Topeka and Santa Fe Railroad (AT&SF)ⓐ to open eating houses along the railroad. The start was modest, one small lunchroom in the Topeka (Kansas) depot of the railroad. But from these modest beginnings Harvey created a thriving railway hospitality concern and more. The prototype Harvey lunchroom has been described as “the progenitor of what (Americans) think of today as a diner” [Stephen Fried, quoted in ‘Tracing the Recipes of America’s First Restaurant Empire’, (Sara Bonisteel),Epicurious,18-Jun-2013,www.epicurious.com].
🔺 Santa Fe railroad & Harvey hotels & dining stations
The beginnings of fast food
The key to Harvey’s success was quality of food and speed of delivery. Once the network of Harvey dining-rooms were established along the Santa Fe route, the operations were streamlined to work like clockwork…and they needed to. As the trains pulled into the stations Fred Harvey staff had 20, at most 30 minutes to feed 60 to 100 passengers. This required coordination between the train conductor and Harvey staff (to give the staff advanced warning of their impending arrival). To meet the short turnaround time, the waiting staff (“Harvey Girls”) utilised a unique signalling system, the waitress taking the order would send a signal to a second waitress, a cup turned upright on the saucer meant coffee, a cup facing down, tea. The second waitress could then immediately do that part of the order without having to wait for her colleague to return with the order [‘Watch the Cup, Please’, (Jann Bommerbach),True West,04-Nov-2015,www.truewestmagazine.com].
🔻 Harvey’s El Tovar Hotel, Grand Canyon
No “mean cuisine”
Harvey Houses (as they eventually came to be known) were no “Greasy Joe’s”. From the start Harvey headhunted a star head chef from back east for his first restaurant. The chef prepared top-quality cuisine for AT&SF line passengers…the food was so good that travelling salesmen and other regular travellers chose the AT&SF on that basis over rival western railroads (Koster). They were getting quality food, fresh and affordable to the middle class traveller, served on spotless Blue China with white linen tablecloths [‘Classic Harvey House recipes’, 23-Feb-2019, CBS News, www.cbsnews.com/].
Value as well as quality for money
In 1888 Fred Harvey debuted the first Fred Harvey dining-car on the Chicago to Kansas City train service. The menu for the service illustrates what a bargain it was – for the middle class—for 75¢ passengers got a mains (choice of oysters, lobster, salmon roast beef or other meats) plus dessert—often prepared by world-class chefs (Koster).
🔺 Castãneda Hotel, Las Vegas, (the ‘other’ Las Vegas – in New Mexico): the first trackside Harvey House (Image: www.castanedahotel.com]
The Harvey dining empire
How extensive was the Harvey House network? At the onset Fred Harvey promises a depot restaurant every 100 miles between Kansas and California. At the Harvey high-point there was 25 Harvey hotels, 40 sit-down dining-rooms and 55 lunchrooms on the route (Koster), and the Harvey House concept was extended to other west-bound railroads. Harvey was a natural marketer coming up with advertising campaigns like “3,000 Miles of Hospitality” to promote tourism in the region [‘Fred Harvey—Branding the Southwest (Quality Fast Food)’,www.lib.nau.edu].
The Harvey girls’ uniform: looking a bit too similar to a WWI nurse’s outfit or something you might see in a nunnery!🔻(Photo: Grand Canyon Railway and Hotel)
The Harvey Girls: Helping to civilise the “Wild West”
Because the male waiters employed by Harvey had a tendency toward drinking on the job and causing trouble in the houses, the entrepreneur in 1883 had the inspired idea of replacing them with single women (aged 18-30) shipped out from the East. The Harvey Girls (as they became known) were attired in demure, conservative feminine uniforms and required to not marry before they had completed six months of service. The women waitresses on the job set standards for cleanliness and decorum which had “a civilizing effect on the often rough customers in the territories” [‘Fred Harvey,the Harvey Houses, and the Harvey Girls’,https://abqlibrary.org/railroads/HarveyHouses]. Many Harvey Girls stayed in the West after their employment, often marrying their bachelor customers, earning the railroad restaurants the sobriquet of “Cupid on Rails”ⓑ.
Farm-to-table: “Meals by Fred Harvey”
Fred Harvey Co (FHC) entered into contracts with local purveyors to ensure fresh ingredients for his meals.Fred Harvey Co also went into the farming business itself,running it’s own dairy and cattle farms (‘Fred Harvey—Branding the Southwest (Quality Fast Food).
(Photo: www.railroadmemories.com)
Business diversification: Whisky, chocolates, gifts, etc.
With success and fame came morediversification.FHC eventually manufactured it’s own whisky,sold it’sown brand of chocolates, candy, ice cream, salad dressings, as well as take-home gifts and souvenirs to passengers.Harvey’s knack for marketing put the brand everywhere. FHC gave away cookbooks of Fred Harvey recipes (‘Branding the Southwest’).The Harvey Co, as part of the tourism package it was promoting, also entered the postcard publishing field…through the Detroit Publishing Co it produced the very popular Fred HarveyArizona ‘Phototint’ series of cards [‘Fred Harvey (entrepreneur), The Full Wiki, www.the full wiki.org/].
🔺 Menu image from the Santa Fe dining-car (Source: www.lib.nau.edu)
Menu art of the Southwest
The railroad menus of FHC are an interesting sidelight of the company,delightfully quaint in their great diversity. Many celebrated in colourful imagery the beauty of the American Southwestor the pre-United States connexions to the region of colonial Spanish missionaries and Native American tribes(see below ‘Marketing an image of the Southwest’). The menu artwork was often of a high calibre,eg, William Deane Fausett’s humorous images. Menus like the company’sLa Posadamenu were instructional–including an US warplane ID chart for US servicemen using the AT&SF rail during WWII.Therewere menus for special occasions like Mother‘sDayand special menus for kids which doubled as clown masks (‘Branding the Southwest’).
Marketing an image of the Southwest
Fred Harvey invented a new hospitality service for railway passengers, but he also invented (and marketed) a particular image of the country’s Southwest for Americans. Harvey, together with the AT&SF Railroad, changed the perception of Americans, filling the vast unknown void of savage desert with a new, “compelling regional identity for the Great Southwest of northern New Mexico and Arizona”. The Harvey corporation “appropriated and marketed the cultures of Native Americans”ⓒ presenting them as “colourful, tamed native peoples”. Harvey to a lesser extent also did a inventive reconstruction of the cultural impact of Spanish colonial and early Anglo-Celtic settlers. Weigle suggests that FMC’s commercial innovations such as the Indian Detours program (affording railroad passengers the opportunity to visit local native communities, represented a kind of ‘Disneyfication’ of the region [Weigle, Marta. “From Desert to Disney World: The Santa Fe Railway and the Fred Harvey Company Display the Indian Southwest.” Journal of Anthropological Research, vol. 45, no. 1, 1989, pp. 115-137. JSTOR,www.jstor.org/stable/3630174. Accessed 12 Feb. 2020].
Endnote: Founder Fred died in 1901 but the business remained in the family until his grandson died in 1965. In 1968 FHC and Harvey Houses were purchased by Amfac, Inc. (an Hawaiian hospitality industry conglomerate).
🔻HarveyHouse,Seligman,Ariz.
PostScript: FH Menu dishes
Not surprisingly the FHC menus included a noticeably Latino-Mexican flavour—including Bright Angel Mexican Salisbury Steak, Guacamole Monterey, Empanadas with Vanilla Sauce, Fried Chicken Castãneda and Albondigas Soup (‘Classic Harvey House recipes’).
ⓐ the Santa Fe line ended at Needles in eastern California, where it connected with another railroad which completed the journey west to the Pacific
ⓑit is estimated that of the approximately 100,000-plus Harvey Girls in the company’s history, perhaps as much as⅕ of them stayed and settled down to married life in the West, ‘The Harvey Girls, a Slice of American History’, (updated 26-Apr-2012),www.hubpages.com
ⓒ Hopi, Navajo, Pueblo, Apache and other Southwestern tribes
A few months ago Channel Five screened a documentary on the German supermarket giant (‘Inside Aldi: Britain’s Biggest Budget Supermarket’). The doco was laced liberally with interviews of Aldi senior managers, all waxing lyrical about their ‘enlightened’ employer and the company’s “win-win” virtues for everybody, which made the program feel uncomfortably like a commercial promotional video at times. Nonetheless, the doco did unearth an interesting back story, that of the supermarket emporium’s evolution and it’s founder-brothers who emerged out of the ruins of war-time Germany to steer their fledgling company to it’s eventual lofty perch as an much envied international discount supermarket chain.
🔺 an early Albrecht store displaying Karl’s name with plenty of Spirituosen (alcohol) and Lebensmittel (food) in the display windows (Photo: www.news.com.au)
The seed of Aldi as we know it today has it’s roots in Essen, Western Germany, in 1913. Anna Albrecht, the wife of a miner, started a small grocery store in the suburb of Schonnebeck as a sideline. After serving in the German Wehrmacht in WWII, Karl and Theo Albrecht, Anna’s sons, took over their mother’s business, which they initially named Albrecht KG. During the formative first years, Karl for a time operated some stores solo (under the name “Karl Albrecht Lebensmittel”).
The Albrecht brothers concentrated on the Ruhr area of Germany at first, and then expanded rapidly across West Germany over the next 15 years. By 1960 Albrecht KG had amassed 300 shops in the Bundesrepublik and had a yearly cash flow of DM90 million. A factor contributing to the Albrecht stores’ early popularity and success was it’s novel approach to tax rebates from purchases. Instead of following the business norm of making customers collect stamps before they qualified for the 3% rebate, the brothers subtracted the tax from the price before sale, a radical idea and an ingeniously simple one which undercut their rivals’ bottom price. Aldi, as it was soon to be known, was on it’s way to revolutionising the low-cost grocery trade.
🔻 Theo (L), Karl (R)
(Source: www.broadview.tv)
Sibling rivalry: Splitting of the ‘atom’ in two
1960 was a momentous year in the history of Aldi. The two brothers fell out, apparently over whether or not to sell cigarettes in Albrecht Discounts, and decided to divide the company into two separate entities➊. With a new, shorter, snappy name, ‘Aldi’, derived from the first two letters of their family name and the ‘Di’ from Diskont (Discounts), the company split into two – Aldi Nord (North) and Aldi Süd (South). At this time, as Aldi was an intra-West Germany operation only, the division was between the north (Theo’s domain) and the south (Karl’s domain) of the country. The geographical border separating Aldi Nord and Süd is known as the Aldi-Aquator (‘equator’). Aldi, after the schism, continued to grow, the brothers’ insistence on stocking only popular items, cut down inefficiencies and proved profitable.
🔺 Aldi’s first German store (in the “North sector”)
A store displaying both names, Albrecht and Aldi 🔻(Photo: Getty)
By 1967 the first international growth steps were taken with the acquisition of Austrian grocer Hofer by Aldi South. As Aldi expanded elsewhere the arrangement between the brothers divied up the world thus (with a few later variations): Aldi South’s jurisdiction would entail Austria and the English-speaking countries, whereas Aldi North would operate in Germany and the rest of Europe. Netherlands followed in 1973, and in 1976 Aldi South made its first incursions into the US. The US became the only market penetrated by both arms of the Aldi empire when Aldi North acquired the US Trader Joe’s chain. Britain came into the Aldi South fold in 1990. Aldi South has been particularly aggressive in it’s drive for store expansion in both the US and Britain. The retailer has upward of 2,000 stores in 36 states across the US and in 2017 announced plans to add 900 more by 2022➋.
🔻 Trader Joe’s, Amherst, NY
Aldi found the highly-competitive (and crowded) UK grocery field initially hard to penetrate, coming up against well-established market leaders Tesco, Asda, Sainsbury’s and Morrisons. By the 2010s however it was making exponential inroads into the Brits’ grocery market…by October 2013 it had 300 stores and doubled that by 2016, with new stores opening at the rate of one a week! Aldi South’s stated goal is to reach the 1,000 mark by 2022. At this rate it is looming as a genuine threat to the above “Big Four” Supermarket chains.
🔻 Aldi Long Eaton store(int)in Derbyshire (Photo: www.nottinghampost.com)
Aldi global expansion intensified after the collapse of the Eastern Bloc system in 1989 and has experienced rapid growth in the 21st century. Since the 1990s Aldi has moved into Australia, Belgium, Denmark, France, Hungary, Ireland, Portugal, Slovenia, Spain and Switzerland. In 2019 it made another market quantum leap, opening two pilot stores in Shanghai, China➌.
🔺 The Albrecht brothers‘ carve-up of the world map (Theo plays black, Karl orange)
Counting the combined Aldi stores operating in Germany by both Nord and Süd (about 4,100 stores), there are over 8,000 stores in Europe as a whole (more counting the Hofer chain). All up, the reach of the Aldi retail tentacle worldwide accounts for 10,000 to 12,000 stores, with revenue (2010) of €53 billion. An international supermarket success story with nary a blot on it’s copybook – with one exception. In 2008 Aldi South invested an estimated €800 million in Greece but after only two years operating, it had to pull the plug on it’s 38 stores in the ancient land of the Olympiad. Nothing substantial divulged as to motive (par for the course for Aldi), but apparently the Aldi board of management was frightened off by the “informal business practices” prevalent in Greece (transparently code for government/business corruption)➍.
🔺 Theo in 1971, following his misadventure(Photo: Getty)
Endnote: The saga of the reclusive co-founders (“the brothers frugal”)
Theo and big brother Karl were never your stereotypical, über-rich CEOs, bobbing up everywhere, constantly in the media spotlight, being snapped for glossy mags gratuitously showing off their latest flashy, expensive car or girlfriend. That was not the brothers’ ‘bag’ – for in business and in personal lifestyles their thriftiness was legendary. But after 1971 the Albrechts’ customary muted behaviour reached a whole new level. That year, the brothers’ extraordinary wealth came back to haunt them➎. Theo was kidnapped at gunpoint and held hostage for seventeen days. The younger brother was released on the payment of a ransom – after Theo had haggled with his captors over the amount demanded! Theo later tried to claim the nearly US$3 million Aldi North had to fork out for his release as a tax deduction business expense! Theo’s ordeal profoundly affected both brothers, they became even more reclusive and secretive in their personal lives and movements (no interviews or public statements, hardly any photos of them together or separately after 1971 exist). Eternally vigilant thereafter, both brothers reportedly would drive home from work, separately, by different routes each day. The brothers Albrecht, having profoundly changed “German food culture and consumption mentality” forever, semi-retired to a remote island in the North Sea in their eighties to pursue the hobbies of golf, orchid-growing and collecting old typewriters (very old school typical of them).
🔺 Island of Föhr off the Holstein Coast, wherethe supermarket entrepreneur brothers beavered away on their personal hobbies during much of their twilight years (Photo: www.tourism.de)
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➊ although the separation wasn’t legally finalised until 1966
➋ German supermarket retail discounter Lidl—a copycat competitor to Aldi utilising the Aldi business model as a lodestar to chart it’s own course to retail riches —followed its path into the US market in 2017
➌ with concessions made for Chinese consumer buying-preferences based on online testing via Alibaba’s Tmall
➍ no doubt to Aldi’s chagrin, Lidl stores in Greece by comparison are apparently thriving
➎ they were reputed to be the richest men in Germany
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Articles and sites referred to:
‘The History of Aldi: The Tale of Two Corporations with the Same Name’, (Team S4RB), 13-Jun-2017, www.blog.s4rb.com
‘Inside ALDI’s first two pilot stores in China’, (10-Jun-2019), Shanghai’s.ist
‘Aldi founder became recluse after family kidnapping’, Albrechtobituary,
‘Aldi’, Wikipedia, http://en.m.Wikipedia.org
‘Aldi quits Greece’, German Retail Blog, 23-Jul-2010, www.german-retail-blog.com
‘Grocery chain Aldi to open another 900 stores in U.S.’, (Zlati Meyer), USA Today, 13-Jun-2017, www.usatoday.com
‘The Aldi Story – Karl and Theo Albrecht’, (2014 documentary), www.broadview.tv
‘Secrets of store success: Why Aldi is winning the retail battle’, (Alison Kirker), Sunday Post, 19-Feb-2018, www.sundaypost.com
Anyone who’s ever walked into an Aldi supermarket would notice the difference from your established, big-name chain supermarket. For a start, in your mega-‘market you would expect to see palettes lying out the back in the loading dock, NOT on the aisle floors in the middle of the store. Perched on the Aldi palettes are groceries and other goods in their original cardboard boxes. Aldi has a small shop-fit budget, it doesn’t spend money on installing fancy shelving, it’s stores typify the “no frills store format”, which simply offers, as it’s advertising spiel announces, “Everyday low prices”. Minimalism is one of the standard Aldi store’s by-words. The checkout area tells a similar story. Shoppers line up their purchases on a long counter which gets shunted down to the cashier. The area of the till itself is small, minute even, the whole thing is streamlined for speed and ease of transacting. And you won’t find a cornucopia of either choice or types of products in Aldi’s.
The key to retail success
Sticking to the basis is a large part of the Aldi formula. The supermarket stocks less than 2,000 items…compare this to your average Coles or Woolies supermarket which typically stocks upward of 40,000 items! Looking for some Foie de gras or that special Russian black caviar, no, you won’t find these here. Aldi’s product base resides on what they call Private brand items➀. Smaller concentration of staple products + purchase in high quantities = lower prices for the customers. Although that said, Aldi also offers up to the trolly-pushing punters what it calls “Weekly Special Offers”. Located in the middle aisles—what Aldi cutely calls its “Treasure Aisle” (get it?)—are a diverse range of merchandise, some of which might be in the luxury category, Alpine snow suits and hiking tents, tools for the house handy-person, electronics, European chocolates, right through to the more peculiarly exotic pet pampering products like dog sofas and cat caves➁. All of which are seriously cheap.
🔺 from “The Book of Aldi”
Aldi eschews the “nice shopping experience”, customer service is not great➂. The store’s mission, once the shoppers have made their selections, is to shuffle them through as rapidly as possible, hence the streamlined checkout. Shoppers are ‘encouraged‘ (by the scarcity of space) and the requirement to self-pack to quickly move their goods to the back bench to pack them. Aldi doesn’t have self-serve checkouts or ‘fast’ minimum-item lanes, so inevitably there are queues because of popularity…as a consequence sometimes patience and timing are supreme virtues.
When the last item has been taken from a carton on the palette, a shop assistant will simply replace it with a new carton. This is time-efficient, saving the store staff from having to constantly restock the shelves. And when it comes to personnel on the ground, Aldi certainly have leaner staffing structures than the “Coles-worths” and Tesco’s of this world. This has prompted claims that the German employer puts unrealistic time-pressures on the reduced number of store staff to move the palettes into their point-of-sale position and complete other store-related tasks. When the stores close at 8pm or whatever the local time applicable, the shop attendants and cashiers turn into cleaners and spend the next hour getting the store spotless. There have been allegations (denied by Aldi) that it makes staff in some regions arrive 15 minutes before start-time to check the stock level without being paid. And of course it’s widely known that Aldi have consistently been notoriously anti-union in its staffing management practices➃.
Aldi stores don’t include the extraneous auxiliary facilities regularly found in other larger mainstream supermarkets and hypermarkets—no in-store banking/ATM machines, cafes, photo booths, pharmacies, children’s rides, toilets, etc—Aldi’s view is these add to the store’s end-cost. Instead they concentrate on the singular task of delivering groceries and other household essentials.
Aldi’s control of it’s “own brand”—which makes up a whopping 90 to 95% of what it sells—is interesting. First there’s the design, it deliberately makes the packaging on its food items look much the same as the leading manufacturers’ equivalent brands. Next, it tries to replicate the taste of these popular brands. Then Aldi invents a brand name for the product which often sounds vaguely like the well-known brand. And it apparently works – even on luxury items. To take a UK example: Many British consumers who once shopped at the upmarket Sainsbury’s and Waitrose supermarkets have been enticed by Aldi’s “Specially-Selected” luxury items – and the reason is twofold, obviously price (much cheaper than Sainsbury’s), but also because they now feel they are getting a similar-quality product (retail expert Julie McColl, Glasgow Caledonian University). As well as a recent product expansion to include luxury treats for it’s shoppers, Aldi’s move into ‘fresh’, the fruit and veg lines, has broadened it’s appeal.
Another key to Aldi being so spectacularly successfully in the supermarket game is it’s relationship to suppliers. Because of their runaway retail success they have many primary producers and manufacturers lining up to do business with them, but Aldi is well-known for driving a hard bargain with suppliers (sort of a case of “my way or the highway”). They are also clever at judging what will be efficacious – by sourcing local suppliers and advertising in the UK they have softened the German outsider element and fostered an impression among British shoppers of the big discount ‘invader’ being home-based.
Dr McColl has also drawn attention to Aldi’s recently strategy of positioning some of its new stores in towns next door to the prestigious Marks and Spencer outlets. The appeal of this being that shoppers can easily flit between the two – and avail themselves to the best of both worlds, getting their luxury items at M&S and their basics at Aldi.
The above factors, outlined, are apparently the ‘secrets’ to Aldi’s stellar success and it’s ability to offer and maintain retail prices at rock bottom in markets across the world. In part II I will tell the story of Aldi’s rise from a single grocer’s store in provincial Germany to international retail empire, and of the two publicity-shy and increasingly reclusive brothers who spearheaded the company’s seemingly unstoppable growth and expansion.
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➀called Exclusive brands in US AldiLand
➁ pet furniture seems to be one of Aldi’s specialities
➂ or maybe I mean non-existent – staff are hard to catch, as they are usually flat out haring round the store trying to meet management’s daily schedules
➃200 Aldi store managers in the US filed charges against unfair labour practices (University of Huddersfield). Aldi operations in other countries have similarly been criticised for incidences where the store has adopted an authoritarian or heavy-handed line towards it’s staff
☤☤☤⍅⌽⍆☤☤☤
Articles, papers and sites referred to:
‘Aldi – “The No Frills Retailer”, (Peter Emsell, with contributions by Leigh Morland), Unpublished case study, University of Huddersfield (2011), www.eprints.hud.ac.uk
‘Secrets of store success: Why Aldi is winning the retail battle’, (Alison Kirker), The Sunday Post, 19-Feb-2018, www.sundaypost.com
‘Aldi’s secret for selling cheaper groceries than Wal-Mart or Trader Joe’, Business Insider, (Ashley Lutz), 09-Apr-2015, www.businessinsider.com
‘Aldi rebukes Dispatches Investigation, says it contains “selective information”‘,(Natalie Mortimer), The Drum, 10-Nov-2015, www.thedrum.com
That fashionable mag Harper’s Bazaar recently compiled a list (the sort of thing they do) of 10 of the favourite places in London that good Queen Elizabeth likes to shop at. They are, in no particular order, Smythson❅ (luxury leather goods and stationery for the Royal quill); Hunter (Wellington boots that QEII likes to drag on for traversing her Scottish estates); Launer London (the Royal handbag – apparently she has 200 of them); Barbour (her coats – there’s just one particular type of coat that Liz has been faithful to for the entire duration of a Diamond Jubilee and then some!); Anello and Davide of Kensington (shoes); Fulton (umbrellas); John Lewis (haberdashery and household goods); Rigby and Peller (suppliers of the Queen’s lingerie for 59 years); Corgi Hosiery (no, not stockings for HRM’s favourite “pampered pooches”, but socks for the Royal feet); Dubonnet (Liz stocks up on gin and Dubonnet⊞ for her favourite cocktails).
A household name in British retail trading since the time of Queen Anne
But there is another London retailer whose royal connexion for sheer staying power puts all of these businesses in the shade. Fortnum and Mason have long held sway as the Royals’ grocer of choice, starting with the family matriarch Queen Victoria in the 1860s, through to (until recently) the present ‘shopaholic‘ monarch.
F&M, 1957 [Source: Getty image]
The company’s history goes back even further—to the year 1707. In that year tenant (and latent entrepreneur) William Fortnum and his landlord Hugh Mason formed what was to become a momentous business partnership. At that time Mason was already operating a small store in St James Market for two years. The new store at 181 Piccadilly was the start of a retail innings that has now stretched 312 years and counting. Over that epoch of time Fortnum and Mason or F&M can (and has listed) a commendable catalogue of achievements, including:
🔸introduced the Scotch egg in 1738— proving to be a highly portable snack/meal, just right for long distance journeys—as were F&M’s famous hampers
🔸 functioned as an official post office as well as a retail store – from 1794 up to 1839 when Britain established the General Post Office (GPO)
🔸 Queen Victoria chose F&M as her exclusivepurveyor to despatch supplies of food to Florence Nightingale’s soldier patients in her field hospitals in the Crimean War (1856)
🔸 in a deal with the American HJ Heinz company, F&M in its role as stockists of tinned goods, introduced the humble baked bean to the British Isles (1886)
🔸 helped to bring variety to the British tea palate by introducing a range of south Asian teas (Indian and Ceylonese) to Britain for the first time including a new “Royal Blend” in honour of Edward VII (1902)
🔸 sent food hampers to imprisoned suffragettes (who had smashed the windows of the Fortnum store in protest, demonstrating apparently that F&M could turn the other cheek) (1911)
🔸 more predictably, they also sent hampers to soldiers of the British Expeditionary Force in France and Flanders during WWI (1914)
🔸 one of the things F&M is most proud about is its role as a supplier of expeditions, it supplied George Mallory’s failed attempt to climb Mt Everest in 1924, as well as other expeditions in Africa. To extend the alpine theme, F&M in 1930 added a mini sky slope for promotional value to the Third floor of the Piccadilly store
21st century Fortnum, an era of belated expansion
In 2007 F&M celebrated its tercentenary with a long-overdue refurbishment of its flagship store – a makeover costing £24 million☉.
[Photo: www.londontown.com]
Finally, during this decade F&M made the move toward a multi-store structure. In 2013 and 2014 branch stores were opened in St Pancreas International Station and Heathrow Terminal 5 respectively. This was followed by an international presence. Dubai opened an F&M store in 2014 and just this year the company made its biggest venture on the world stage yet, opening F&M Hong Kong.
The Foie grascontroversy
As a grocer F&M has pursued a market strategy of providing quality (definitely not inexpensive) groceries (“posh nosh”) and luxury (and sometimes exotic) niche food items (eg, ready-to-eat luxury meals such as fresh poultry or game in aspic jelly). This has occasionally led the retailer to become embroiled in controversy. In 2010 F&M earned the opprobrium of animal rights group PETA UK who (enlisting the support of some celebrity Britons) demonstrated against F&M‘s Foie gras product. The protestors were unhappy that the retailer did not alert consumers to the cruel method of force-feeding geese and ducks to produce the product. F&M, despite the pressure exerted on it, doggedly refused to discontinue the line.
The company has been the subject of other controversies of recent. F&M has been tangled up with the brouhaha of allegations of tax avoidance by its parent company’s subsidiaries. This resulted in a mass sit-in in F&Ms Piccadilly store by UK Uncut (a lobby group protesting publicservice cuts and tax avoidance).
Severing of ties with the Windsors and more bad publicity
In 2018 Buckingham Palace stopped providing meat from its Royal Farms at Windsor Park to F&M…it was unhappy with F&M’s practice of bullying its suppliers to squeeze prices down. However F&M did not pass this on to consumers, continuing to assert that its bacon, pork and lamb (at double thesupermarket price!) was sourced from HM’s Windsor Farms. The company had to grovel apologeticallyto Buck Palace, and with regal ill-will compounded, thus its 150-year tenure as the Royal family’s grocer was finito.
PostScript: A British institutionbut not a British-owned one
Despite its Royal association and status as a “national institution“, a part of the retailing firmament in the UK, F&M has long been foreign owned. In 1951 it was acquired by a Canadian businessman, W Garfield Weston. Today F&M is still in Canadian hands, privately owned by Wittington Investments Ltd which also owns the discount clothing store Primark.
“Fortnum & Mason: The First 312 Years”, www.fortnumandmason.com
“10 places the Queen does her shopping”, Harper’s Bazaar, 15-May-2018, www.harpersbazaar.com
“After 150 years as the royal grocery, Fortnum and Mason is ditched by the Queen and forced to apologise over Windsor meat scandal”, Sebastian Shakespeare, Daily Mail, 29-Sep-2014, www.dailymail.co.uk
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❅ Smythson’s are especially blessed by the British Crown, being the recipients of no less than four Royal warrants
⊞ a French red wine
☉ the following year F&M installed bee hives in the rooftop of the store!
Birkenhead Point Factory Outlet Centre (BPFOC), on the western side of Sydney’s Port Jackson, is a bit of a sleeper as far as shopping centres and malls go. Recently, it ‘celebrated’ (sic) it’s forty-year anniversary (opened 26 July 1979), but it was an anniversary bereft of any fanfare whatsoever! The centre has 170 stores or services including two anchor tenants but can’t attract a major department store chain. In recent times it has tried to lure more paying punters by introducing a “shopper hopper” ferry service from Circular Quay or Darling Harbour. Thursday night shopping is virtually a non-event with most of the vendors not bothering to stay open. The only shoppers you are likely to see at night are those grocery shopping at Coles and Aldi✾.
The reasons for BPFOC’s low-key status among the large retail outlets and malls of Sydney are manifold. It’s relatively small size and its distance away from the Sydney rail network are contributing factors. Likewise, the proximity of Burwood Westfield (a few kilometres away) and the Broadway Centre to name two, gives these shopping complexes a comparative advantage.
BirkenheadPoint before it was a shoppers’ haven
The area around the point was originally part of a land grant made to John Harris, the colony’s first surgeon (circa 1800). By the late 1830s Harris’ land on the point, having shifted ownership several times, was a brick-making operation. This business didn’t apparently succeed as the owner, a Mr Dutton, went bankrupt in the early 1840s. At this time Birkenhead Point went under the name of Duttons Point, then part of Five Dock Farm.
(source: Dictionary of Sydney)
“Abercrombie’s Point”
Charles Abercrombie, the next man of capital to acquire Birkenhead Point, turned it into a race track (Abercrombie’s Racecourse). The first Australian steeplechase was held here on 19 September 1844. The horse racing caper failed to produce a worthwhile dividend for Abercrombie, prompting him to transform the site into a “salting and boiling down works” in the mid 1840s. This business as well was apparently not sufficiently profitable and Abercrombie resold the land.
New industry, rubber works
In the following years the land on the point again changed hands several times. In 1885 the property was bought by the Perdriau brothers (Henry and George) who started a business to make rubber engine packing for their ferry service (With a single work shed at Birkenhead Point). In 1899 under the leadership of Henry Perdriau, the brothers established the Perdriau Rubber Company (PRC) and began manufacturing rubber products in 1904. Coinciding with the rise of the automobile, the company launched itself into the manufacture of rubber tyres, sufficiently successfully that PRC took over the whole 7.7 hectare site (by 1928 it was producing somewhere between 500,000 and 780,000 tyres annually)⍟.
DunlopRubber plant
In 1929✩ the Perdriau Company merged with the English firm Dunlop (forming Dunlop-Perdriau Rubber Co) and the new enterprise at Drummoyne became the Dunlop Rubber Company (DRC)❂. By the 1960s Dunlop’s Birkenhead Point factory employed 1,600 workers. By the 1970s the complex comprised eight brick buildings⌺ and a number of auxiliary structures (sawtooth roofed sheds). The brick buildings were substantial, being between two and four storey high.Perdriau‘s rubber hose line
From industrial to commercial
In 1977 the Birkenhead Point tyre plant closed its operation with the site being acquired by major Australian retailer/department store chain David Jones for $21M. DJs converted the brick and rust-red tyre factory into a waterfront shopping centre, retaining 40% of the original factory buildings. The shops were eventually replaced by designer brand clothing outlets (including a David Jones factory outlet and a Fletcher Jones factory outlet). In the 1990s apartments were added to the site. A long glass ceiling was installed on the top floor in 2010 and the decade saw the centre undergo a number of extensions and renovations.
Over the last thirty-plus years the Birkenhead Head complex has undergone several changes of ownership. Most prominently in 2004 it was bought by Singapore tycoon Denis Jen for $111M (later unloaded). Currently, Birkenhead Point Outlet Centre is owned and managed by the Mirvac Group.
BP Marina
The prime location of the factory outlet centre fronts on to a marina which caters for over 300 mostly pleasure watercrafts (as well NSW Marine Rescue and Divers maintain operational vessels at the marina). There are also Marine Rescue and maritime industry association offices below the shopping centre at wharf level. The Birkenhead Point complex originally planned to include a series of museums in the site (car, fishing and maritime) but these ventures have never apparently gotten off the drawing board.
Publications and websites consulted:
‘Dunlop Factory Buildings At Birkenhead Point (Former)’, www.environment.nsw.gov.au
‘Five Dock racecourse’, Dictionary of Sydney, www.dictionaryofsydney.org
Graham Spindler, Uncovering Sydney:Walks into Sydney’s Unexpected and Endangered Places (1991)
Brian & Barbara Kennedy,Sydney and Suburbs: A History and Descriptions, (1982)
‘The Names of Sydney: Suburbs D to G’, Pocket Oz Sydney, www.visitsydneyaustralia.com.au
‘Roaming Roy Goes Shopping For History – Birkenhead Point’, The Tingle Factor Box, 24-Feb-2013, www.tinglefactor.typepad.com
Josephine Tovey, ‘Resurrected shopping centre up for sale’, Sydney Morning Herald, 06-Mar-2010
▄▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▄
✾ late night shopping at Birkenhead Point in any case would be a misnomer as the centre’s closing time on Thursday is 7:30pm
✩a couple of sources give the date as 1928
⍟ shoes were the other mainstay of Perdriau Bros’ production business…in 1928 just prior to the merger they were still producing 50,000 shoes per week
❂ although some of the company’s advertising in the day referred to the business as the “Dunlin Rubber Co”
⌺architect Peter Hickey’s design of the commercial project allowed the extant brick buildings to retain their former industrial character whilst integrating the centre into the maritime setting of the waterfront…the original buildings are listed by Heritage NSW as being of Federation warehouse design
⇩ Cobb & Co coach at Scarborough, NSW(Photo: Powerhouse Museum, Sydney) ⇧
See also the preceding post The Rise and Decline of Cobb & Co – Part I
By the 1880s Cobb & Co’s coach lines had become so successful in Victoria, New South Wales and Queensland that most of its competitors had been either relegated to the ranks of commercial obscurity, gone out of business altogether or been swallowed up by the ubiquitous, dominant transport market leader (or all three!)
Overreach and eventual decline
Cobb & Co’s foray in new areas of enterprise led it, and specifically company boss James Rutherford, into more and more diverse fields – everything from gold and copper mines to horse-breeding to newspapers. The inevitable downside of over-diversification was diminishing success…moreover the failures were often the result of bad and even disastrous investments (a Lithgow iron ore mine, a 1880s railway construction project connecting Glen Innes and Tenterfield)💮and in this the blame lay squarely with Rutherford. Rutherford as GM had some glaring shortcomings – he was often impetuous in business when he should have been measured, and made important (and increasingly unwise) decisions without consulting his partners [Kathy Riley), Australian Geographic, 18-Oct-2011, www.australian geographic.com.au].
⇩ A fully loaded six-horse Cobb & Co coach
(Photo: www.visityuleba.com.au) ⇧
Other factors contributing to Cobb & Co’s downfall
In addition to the instability of taking on too muchconcurrently, the company was a victim of misfortune and circumstance. The 1890s was a decade that brought drought and a depression to the colonies. The drought hit Cobb & Co like a sledgehammer – the cost of feed for their thousands of horses sky-rocketed! During just the four years from 1898-1902, the cost was £70,000, which was nearly half of Cobb & Co’s total revenue. Compounding this was further devastation arising from the drought – losses of livestock, plummeting of the values of company’s properties [ibid.].
The introduction of commercial railways in the inland regions of Australia from the 1870s was a forewarning that the demise of coach transport was on the horizon. Cobb & Co in Victoria and NSW survived the new competition from the railroad for a time – in part because the coach line adopted the strategy of providing a complimentary service to it (joining the dots between the rail routes)✪. It also pushed its operations further westwards into NSW to service new localities and communities beyond the rail terminus [‘Coaching days in NSW’, (Cobb & Co in NSW), http://www.orange.nsw.gov.au/wp-content/uploads/2017/10/Cobb-Co-Resource.pdf].
UltimatelythoughCobb & Co was simply delaying the inevitable in the two southern colonies…Victoriaceased its company operations in 1890. The NSW operations’ decline led to itsBathurst and Bourke factories closing down not long after…all later coach-making was done through the CharlevilleCoachPlant in Queensland. By 1897 all the NSW lines ceased except those in the Bourke area [ibid.]. In 1902 Cobb & Co experienced a net loss of over £18,000 and owed considerably more than that to bankers and creditors [Riley, op.cit.]. Liquidation of the company soon followed. The following year the company was reformed but this wasn’t able to revive its flagging fortunes.
Queensland, the last outpost for Cobb & Co coaches
Only “vast and untrammelled” Queensland held out against the railways’ dominance, maintaining “a solid demand for coaching” beyond Federation and into the new century, with routes in the colony peaking at more than 7000km in 1900. Queensland Cobb & Co lines lingered on, gradually losing business to the railways, their routes shrivelling up bit by bit. The advent of motor vehicles, while still at a rudimentary stage, foreshadowed that horse coaches were dinosaurs as a long-term prospect. Cobb & Co itself dabbled in automobiles and in store-keeping, but these ventures brought it no success [ibid.].
Air mail anyone?
The embryonic development of commercial air travel was another sign of the imminent end of the road for Cobb & Co. In 1922 QANTAS (Queensland and Northern Territory Aerial Services) launched its inaugural air mail and passenger flying service (based in central west Queensland). Cobb & Co made its final trip in 1924 on the Yuleba to Surat (Qld) route. Thus the curtain was drawn for good on what had been Australia’s first ever privately-owned public transport system [ibid; Simpson, loc.cit.].
Endnote: A television series rip-off
In the late 1950s and early 1960s there was a fictionalised TV take on the Cobb & Co story…made in Australia by ITV Britain♚. A fairly unexceptional piece of television adventure and light on historical accuracy, Whiplash was marketed in Australia and the US as “an Australianised Western”, it starred the serviceable American TV actor Peter Graves as the fictional “Chris(sic) Cobb”. Some of the episodes were written by the future creator of Star Trek Gene Roddenberry [‘Whiplash’, Classic Australian Television, www.classicaustraliantv.com].
⇧ ‘Whiplash’: Peter Graves in a scene (Photo: www.nostalgiacentral.com)
Fittingly, given that Queensland was the state that maintained the Cobb & Co tradition the longest, it has a museum dedicated to the memory of the Cobb & Co pioneers. Located in country Toowoomba, the museum houses historic Cobb & Co coaches as part of an extended collection of horse-drawn vehicles – the ‘National Carriage Collection’. (Source: www.queensland.com)
⥰⤽─⤽─⤽─⤽─⤽─⤽─⤽─⤽─⤽─⤽─⤽─⤽⥰
💮 which left Cobb and Co a very sizeable £130,000 in debt
♚ filmed on location at Scone, NSW, and at Artransa ParkStudios in French’s Forest, (northern Sydney) which then contained a suitably bushy backdrop
✪ this contrasted markedly with the fate of coach transport in England – where the introduction of railways, occurring from the 1830s, killed off the coaches in quick time [‘Cobb and Co coach’, Museum of Applied Arts and Sciences, (Margaret Simpson, Curator, Transport), 12-Jun-2013, http://maas.museum]
❝Such days as when the Royal Mail was run by Cobb & Co❞ ~ Henry Lawson
🌀-🌀-🌀
Cobb and Co is a name that still has much currency within Australian and New Zealand society. In New South Wales in the rural tourist industry there is the “Cobb & Co Heritage Trail” which invites travellers to take the “historical self-drive” following the outback route from Bathurst to Bourke that the celebrated erstwhile coach service once trekked. Queensland holds a Cobb & Co festival each year to honour the historic Surat to Yuleba route. There are touring bus and coach businesses operating that have also appropriated the name…in addition there are “Cobb & Co hotels” and “Cobb and Co bottle shops” scattered around regional areas of the eastern states※.
⇓ Cobb & Co Heritage Trail
All of this is testimony to the fame of the original Cobb & Company which was once a household transport name, etching for itself a place in the folklore of Australia’s outback regions. The company’s story begins in the goldfields of Victoria in the 1850s. In 1853 the American Adams & Co coach firm despatched Freeman Cobb and three American colleagues⚀ to Melbourne with the objective of establishing a local operation which would capitalise on the hordes of fortune seekers flocking to the Victorian gold rushes. As things transpired, Cobb ended up starting his own coach service together with the other Americans🔰, thus was born Cobb & Co.
Freeman Cobb ⇑ (Photo: www.geni.com)
The first trip (January 1854) of Cobb & Co carrying passengers, goods and equipment went from Collins Street (Melbourne city) to the Forest Creek goldfields (now Castlemaine) and to Bendigo✫. Cobb & Co was a winner pretty much from the outset…by 1856 the company was worth £16,000 (in 2011 values around $2.1 million). Freeman Cobb however didn’t stick around to see the full flowering of it’s success, after three years he sold out of his eponymous company, moving on to other (less successful) ventures. Cobb & Co changed hands a couple of times, and then in 1861 it was purchased by a consortium of nine US and Canadian businessmen for £23,000 ($3.4m in 2011) [‘Cobb & Co: historical transport’, (Kathy Riley), Australian Geographic, 18-Oct-2011, www.australian geographic.com.au].
The driving force of the firm under the consortium was another American immigrant, James Rutherford. Rutherford began by organising all of the company’s lines (the different routes), making them more profitable concerns. Under his leadership Cobb & Co expanded into NSW and Queensland (the NSW operations were based at Bathurst). At the company’s peak in the 1870s, it’s coaches were covering a distance of nearly 45,000km a week with routes stretching from the very top of Queensland (the Gulf of Carpentaria and Cooktown) down to southern Victoria [ibid.; ‘In the Days of Cobb & Co’, Sydney Mail, 20-Apr-1921, www.trove.nla.gov.au]. As one one chronicler of the iconic transport company’s story observed, Cobb & Co was many things combined – “the Qantas, the Australia Post, the TNT and the Holden of its day” [Sam Everingham, Wild Ride, The Rise and Fall of Cobb and Co, (2007)].
James Rutherford⇓
(Photo source: State Library of Queensland)
What accounted for Cobb & Co’s spectacular success in the coach transportation business?
The decisive factors were manifold but basically Cobb & Co beat it’s competitors in several logistical areas. It’s coaches were faster and more efficient…while the rivals used heavy, rigid English coaches for their runs, Cobb imported American Concord coaches (made in New Hampshire and used in the American West) which were rounded and lightweight and had supple coach bodies – far more suited to the rugged Australian landscape than the cumbersome English coaches. Consequently Cobb & Co’s coaches gave a smoother, faster ride [Riley, loc.cit.] (the Concords, though superior, apparently didn’t always deliver that smooth a ride as they were known colloquially as the “red bone-shakers”).
A replica C & C Concord coach on display at Timbertown, NSW ⇓
The Concord coaches were fitted with leather braces and straps in place of the inflexible iron ones used on other horse-drawn vehicles which had a tendency to snap too easily (leather also provided greatly superior suspension for the carriage). Concord coaches were made to last the rugged journey and so contributed to a reputation for reliability that the Cobb service was able to establish [‘Days of Cobb & Co’, loc.cit.].
A master stroke by Cobb was to establish a series of changing stations every 16-32km along the routes. This gave Cobb & Co journeys the big advantage of always having fresh horses, enabling the drivers to maintain high speeds over long distances.
Cobb & Co coachmen – risky adventures, pitfalls and hazards of the job
The drivers themselves employed by the company were possessed of extraordinary skills in managing their horses and vehicles. They had to be to negotiate all the difficulties and obstacles in their paths and still keep on schedule…atrocious roads made worse by inclement weather, flooding of creeks and rivers, and unpredictable encounters with dangerous bushrangers◘, were all recurring events that challenged the mettle of the coach drivers. The dangers aside, experiencing the thrills and (near) spills and the full-on ‘wildness’ of a Cobb & Co journey through “the bush”, must have been an exhilarating experience for colonial travellers in the day.
Many of the drivers, some of which Cobb and (later) Rutherford recruited from the US, were colourful characters in addition to being accomplished horse handlers…blokes such as Dick Houston, Jim Conroy, ‘Silent’ Bob Bates, H Barnes, and not least “Cabbage Tree” Ned Devine. Devine, with his team of distinctive light grey horses, was by all accounts a particularly exceptional driver (earning himself a very good wage of £17 a week)…when the first English cricket team toured Australia (HH Stephenson’s, 1862), Devine was their driver on the Victorian leg of the tour [K. A. Austin, ‘Devine, Edward (Ned) (1833–1908)’, Australian Dictionary of Biography, National Centre of Biography, Australian National University, http://adb.anu.edu.au/biography/devine-edward-ned-3405/text5169, published first in hardcopy 1972, accessed online 31 May 2019].
Ned ‘Cabbage Tree’ Devine ⇓
(Photo source: State Library of Victoria)
Similarly, Cobb & Co’s grooms played an integral role in the highly organised operation…each groom was personally responsible for eight to ten horses and for their gear. The clockwork operation saw the drivers sound a bugle when they were one mile from the next staging post, this alerted the grooms to have the fresh team of horses primed and ready the minute the coach arrived. The pay-off for such a high level of efficiency, superior speed and dependability was that Cobb & Co scored lucrative mail contracts from the colonial governments [ibid.].
Cobb diversifies from its passenger and goods transport base
General manager Rutherford was the catalyst for Cobb & Co’s diversification into new businesses. Initially this payed dividends with its first move, appropriately enough, into coach and buggy building at Bathurst, NSW. Just four years into this activity Cobb & Co could boast that it was the largest coach-maker in Australia [ibid.].
Rutherford also acquired pastoral properties for the company, another profitably step for Cobb & Co. By 1877 they had nine sheep and cattle stations across NSW and Queensland covering an area of 11,000 square kilometres and turning a net profit of £77,500 (equivalent to $11.3M in 2011)…this was at a time that the company’s revenue from coaching – the principal business – was yielding only £11,500 ($1.7M) a year by comparison [ibid.].
By the end of the 1870s Cobb & Co had been in business for 25 years and had already established itself in the eastern mainland states as something of an institution in the “wide, brown land”. It had undergone diversification and experienced growth, but as I will show in Part II, the remarkable good fortunes of Cobb & Co was about to take a decided turn for the worse.
💫–💫–💫
PostScript: Exporting the Cobb & Co model
Unsurprisingly, the spectacular trajectory of Cobb & Co’s rise in fortune and fame drew imitators elsewhere. A number of coaching services, some using the same name (although totally unrelated to the original eastern Australian company), sprang up independently in South Australia, Western Australia, New Zealand, Japan and South Africa. This last concern was started up by Freeman Cobb himself in 1871, hoping to cash in on the discoveries of diamonds and gold in the Kimberley and the Transvaal (unfortunately Cobb couldn’t reproduce his Australian success, dying in South Africa still in his 40s) [K. A. Austin, ‘Cobb, Freeman (1830–1878)’, Australian Dictionary of Biography, National Centre of Biography, Australian National University, http://adb.anu.edu.au/biography/cobb-freeman-3237/text4883, published first in hardcopy 1969, accessed online 29 May 2019].
‘Kiwi’ Cobb & Co
The New Zealand version was begun by Charles Cole, who’d previously ran Cobb & Co’s Smyth’s Creek to Ballarat line in Australia❎. As in Victoria and NSW the impetus for the initiative in NZ was the gold rush in Otago (1861). Cole’s Otago coach proprietorship was in partnership with the Hoyts brothers (operating as Cole, Hoyt & Co., proprietors of Cobb & Co. Telegraph Line of Coaches)…later the service was extended to Christchurch and Canterbury. The legendary Ned ‘Cabbage Tree’ Devine worked at one time for the New Zealand outfit, driving the Dunedin to Palmerston and Oamaru routes [Austin, ‘Ned Devine’, loc.cit.; ‘Cobb & Co (New Zealand)’, Wikipedia, http://en.m.wikipedia.org].
⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛⏛
※ in fact there are all manner of commercial enterprises in Australasia using the “Cobb & Co” handle as a trading name – restaurants, bars, B ‘n Bs, screen printers, clockmakers, kitchen manufacturers, etc.
⚀ the others were James Swanson, Anthony Blake and John Murray Peck (who later became a successful stock and station agent in Melbourne and a vice-president of the Essendon Australian Football Club)
🔰 the average age of the four American founders was just 22 – although they did have combined experience working for Adams, Wells Fargo and other coach companies in the US
✫ Cobb charged £5 per passenger for the roughly 110 ml journey [‘Days of Cobb & Co’, loc.cit.]
◘ one of the best known bushranging incidents involving Cobb & Co was the 1863 holdup at Eugowra (in the NSW central west)…notorious bushranging gang led by Frank Gardiner and Ben Hall robbed a Ford & Co coach (the firm was takes over by Cobb & Co one week later) of £14,000 in gold and banknotes from the goldfields [‘Details of the Robbery’, (Welcome to Eugowra in the heart of bushranger country), www.eugowra.aus.net]
❎ Colebrought one of the custom built Concord coaches across the Tasman with him to Otago
First World problem – Cadbury’s or Nestlé’s?FOR children of the Fifties and Sixties growing up in the West, the preference of chocolate usually came down to a shelf choice between two, Cadbury or Nestlé. My recollection is that my own juvenile palate tended towards Nestlé, but only partly due to taste…yes I did as a kid have a fondness for Nestlé’s slim, pocket-size milk chocolate bars but Nestlé was also great for youthful card collectors. Each bar contained a different colour card (vintage cars, planes, etc.) that you could paste into your Nestlé Car Club book or Sky Club book or into their “Conquest of Space” series book. A glance at the enduring popularity of Cadbury’s chocolate is confirmation that the British confectioner did not miss my preference for their Swiss rival.
(photo courtesy of www.historyworld.co.uk)
As a child I was very aware that Cadbury’s had a chocolate factory in Tasmania (known as “the factory in the garden”)…the idyllic image of rustic Claremont was imprinted in my head courtesy of innumerable Cadbury TV ads (spectacular mountain scenery didn’t improve the taste of the chocolatier’s product but it gave it the perception of an extra lustre). What I wasn’t aware of as a young chocolate consumer was that that Cadbury’s—nay, almost all of the English pioneering chocolate manufacturing industry—was a Quaker company. Cadbury’s kicked off from a small shop in Birmingham, England, in 1824, but before Cadbury’s there was Fry’s Chocolates which opened its first shop in Bristol in 1761, and after it Rowntree’s (established 1862, in York{a}). All of these chocolatiers were founded by English Quakers and the companies business ethos imbued with the Quaker philosophy.
(photo courtesy of www.historyworld.co.uk)
In business by circumstance and conviction British Quakers in the 19th century not only cornered the chocolate market, they excelled in business in a multiplicity of fields, ranging from banking (Barclays, Lloyds) to biscuit manufacturing (Huntley and Palmers, Carrs) to footwear (Clarks’ Shoes) to match manufacturing (Bryant and May) [‘How did Quakers conquer the British sweet shop?’, (Peter Jackson), BBC News Magazine, 20-Jan-2010, www.bbc.com].
The circumstance that Quakers found themselves in guided their decision to embrace the world of business. As a Christian non-conformist group in a sea of English Anglicanism, adherents of the Quaker faith in the 1800s were subjected to the systematic discrimination befalling religious outsiders – exclusion from the universities (until the 1870s) meant the leading professions of medicine and law was barred to them. Naturally enough, this barrier to the industrious, go-ahead Quaker person, turned them towards business and commerce [ibid.].
The senior Cadbury⤋
Kings of the chocolate business{b}
The Quaker philosophy incorporates a commitment to social reform and the pursuit of justice and equality. This ethos informed their business practices, Cadbury’s and other Quaker firms established a reputation for being honest and reliable. This gave them a competitive advantage over their non-Quaker competitors. The perceived ethical nature of Quaker confectionery firms was rewarded with customer loyalty. John Cadbury and his successors were among the first to set a firm (and fair) price – this was a clear departure from the hitherto customary retail practice of point-of-sale price bartering [ibid.]{c}.
Cocoa the health drink
Founder Cadbury started off mainly selling cocoa drinks (solid chocolate came later)…this was borne out of 19th century social concerns – a Quaker (by definition teetotal) response to the “perceived misery and deprivation caused by alcohol” in British society (Helen Rowlands, Quaker historian){d}. The Cadburys marketed cocoa as a cheap available drink, one that was healthy (the process involved boiling thus removing the impurities lurking in the dubious public water supplies of the day)[ibid.]{e}.
Democratising cocoa and drinking chocolateCocoa and drinking chocolate had been around in England since the 1650s but before Cadbury’s came along it had been a luxury beverage for the elite. John Cadbury’s improvements to the product gave it more varieties and made it a more palatable drink, and after the Gladstone government reduced taxes on imported cocoa beans in the mid 1850s, the cost of cocoa became within the reach of the greater majority of Britons. Cadbury’s introduction of unadulterated “cocoa essence” in the 1870s coincided with a government crackdown on the widespread adulteration of food in the UK. The upshot was free ‘plugs’ for the purer Cadbury product and a boost in fortunes for the Quaker business [‘The Story of Cadbury. Early Days – A One Man Business’, www.cadbury.com.au].
Even ‘Lancet’ was lavish in it’s praise of Cadbury’s Cocoa⤋(photo courtesy of www.historyworld.co.uk)
Worker welfare and satisfaction a priority The Cadbury brothers, Richard and George (sons of the founder), placed an uncommon degree of emphasis on the fitness and health of their workforce (again philosophically driven by their faith). After moving their factory to a greenfields site south of Birmingham to cope with the business’ growth, George built the Bourneville village in the vicinity – this was a model village community for Cadbury’s workers – replete with schools, leisure facilities (including a lido) and parks, canteen, a carillon and its Friends meeting house. Cadbury’s employed doctors and dentists for the benefit of Bourneville employees and was among the first to pioneer pension schemes for their workforce [Jackson, loc.cit.]. The village included attractive “Arts and Crafts” style cottages in picturesque surrounds, but no pubs were permitted on the Bourneville estate{f}.The Bourneville factory ⤊
Chocolate you can eat! Cadbury Dairy Milk Richard and George’s acquisition of a new cocoa press reduced the cocoa butter content, further improving the taste of the Cadbury cocoa drink. The press also helped Cadbury’s make a breakthrough with eating chocolate in the 1890s…learning from the Swiss prototype, Nestlé, it started to create milk chocolate bars to rival those on the Continent. In 1905 Cadbury’s introduced Dairy Milk Chocolate which would go on to become its and the UK’s top selling chocolate bar (60% UK market share in 1936). DCM, together with Bourneville Cocoa, have established themselves as Cadbury’s two all-time stand-outs, iconic products in the history of the company [‘The Story of Cadbury’, loc.cit.; Deborah Cadbury, The Chocolate Wars: The 150-Year Rivalry Between the World’s Greatest Chocolate Makers, (2010)].
(photo courtesy of www.historyworld.co.uk)
Following success came expansion – in 1918 Cadbury’s opened a new factory in Tasmania (the first outside the UK). In 1910 Cadbury’s finally overtook J.S.Fry & Sons in chocolate and cocoa sales…Fry’s got the block of solid chocolate right before Cadbury’s but the legendary “glass and a half” merchants surged ahead in the end. [ibid.]. So much so that Cadbury’s acquired its biggest domestic rival in 1919 (giving it Fry’s top lines, ‘Chocolate Cream’ and ‘Turkish Delight’). In 1967 Cadbury’s added the Australian chocolate manufacturer MacRobertson(‘Freddo’, ‘Snack’){g}.
Family Fry and partnersThe Fry chocolate business was another dynastic Anglo-Quaker confectioner. The original Joseph Frystarted the company in the mid Georgian period in Britain, taking on a partner, John Vaughan. Upon Fry’s death his widow Anna Frytook over the family business and the firm name changed to Anna Fry & Son. Joseph Storrs Frysucceeded her and partnered with a Dr Hunt. Storrs Fry patented a method of grinding cocoa beans using a Watt steam engine. The company then devolved to his sons, Joseph, Francis and Richard, as joint partners. Under the next generation of Frys (Joseph Storrs Fry II), the business reached its commercial pinnacle before it got swallowed up by the vast Cadbury empire [‘J.S.Fry & Sons’, Wikipedia, http://en.m.wikipedia.org].
Shadowing Cadbury’s, the rise of Rowntree’s Rowntree’s, Cadbury’s other domestic rival in the sweets trade, was the creation of Henry Rowntree. Like Cadbury’s Rowntree applied Quaker principles to his business and always insisted on the best quality ingredients [‘Rowntree’s’, Wikipedia, http://en.m.wikipedia.org]. JosephRowntree, Henry’s brother, joined as partner in 1869, and being a staunch advocate of social reform, steered some of the firm’s profits towards his Quaker philanthropy. The company’s first big success was with ‘Fruit Pastilles’ and ‘Fruit Gums’ which allowed it to follow Cadbury’s earlier move in purchasing aVan Houten press. This enabled Rowntree’s to produce chocolate sans cocoa butter, so as to compete with Cadbury’s successful ‘Cocoa Essence’ [Robert Fitzgerald, Rowntree and the Marketing Revolution, 1862-1969, (2007)]. Rowntree’s, as their rival Cadbury’s did, created a dynasty of chocolatiers, merchants, philanthropists and social reformers – succeeding sons and brothers kept the family name at the helm of the company (Joseph Rowntree Jr, Henry Issac Rowntree, John Stephenson Rowntree).
Rowntree’s later created the consumer favourites ‘Kit Kat’, ‘Aero’ and ‘Smarties’, and went on its own expansion journey, merging with the Halifax “Toffee King” Mackintosh in 1969 (which added ‘Quality Street’ and ‘Rolo’ to its product inventory). Rowntree’s (rebranded Rowntree Mackintosh Confectionery) then acquired Australian chocolate manufacturer Hoadley’s (1972) which gave RMC Hoadley’s ‘Violet Crumble’ bar.
Rowntree’s introduced the ‘Yorkie’ bar in the Seventies which put a serious dent in Cadbury Dairy Milk’s market share and contributed to Rowntree’s reaching fourth spot in the world chocolate manufacturers’ ladder by the Eighties{h}. This was Rowntree’s apogee however as its underperforming shares saw it fall victim to a successful takeover from the Swiss giant Nestlé in 1988 [‘Rowntree’s’, op.cit.].
Nestlé’s Yorkie, a dubious sales pitch: the “NestléGoliath” was clearly tone deaf to the advantages of presenting as inclusive when they designed this, a chocolate bar which discriminates on the grounds of gender? ⤋
“Not for girls!”
A British institution undone
Cadbury’s, despite its continuing success, in 2010 suffered the same fate as Rowntree – swallowed up by another Goliath of the food business, US Kraft Foods (operating now as Mondelēz International). The loss of Cadbury’s, a household name in British manufacturing for 186 years, was highly controversial, causing an outcry in the UK. What was especially galling to many patriotic Brits was that Kraft had to borrow £7bn to seal the acquisition deal, and the banker brokering the financial transaction was itself British – the Royal Bank of Scotland [Deborah Cadbury, op.cit].
Ft-Note: Pseudo-QuakersThe runaway commercial success of Quaker food and confectionery companies did inevitably lead to imitation. A US food manufacturer in the 1870s introduced “Quaker Oats” to the cereal market…on the packets and in product advertising are images of a man dressed in Quaker garb, despite the US company having NO connexion whatsoever with the Religious Society of Friends (Quakers){i}. The company states that it chose the “Quaker Man” as its figurehead “because the Quaker faith projected the values of honesty, integrity, purity and strength”, [‘Quaker Oats website’, (FAQ 2009), www.quakeroats.com] (an early example of retail “identity theft’ to try to cash in commercially on the high regard, ethically, Quaker businessmen were held in).
تتتتتﭢ ت ﭢ تتتتتتتتتتﭢ ت ﭢ تتتتت
PostScript:Third World cocoa beans and the Quaker chocolatiers – an uncomfortable associationIn the late 19th century the Cadbury brothers and other British chocolate-makers started exporting a large proportion of their cocoa beans from the islands of São Tomé and Príncipe (Portuguese West Africa)…by the turn of the century this amounted to 55% of Cadbury’s total supply of beans. Although Portugal had abolished slavery in its colonies, the rigid labour contract system which replaced left the African labourers working the plantations in a de facto slave status. This uncomfortable connexion of an ethical Quaker business to neo-slavery prompted one of the managing grandsons, William Cadbury, to commission an investigation of worker conditions in São Tomé and Príncipe in the 1900s. Cadbury eventually found an alternative source of cocoa beans (the Gold Coast) and organised a boycott of the two Portuguese plantations, but not before he had to fend off a spate of newspaper attacks on Cadbury’s alleging that it profited from the labour of slaves [‘William Cadbury, Chocolate, and Slavery in Portuguese West Africa’, (Lindsey Flewelling), 11-May-2016, https://britishandirishhistory.wordpress.com/2016/05/11/william-cadbury-chocolate-and-slavery-in-portuguese-west-africa/].
(photo courtesy of www.historyworld.co.uk)
⍓⍓⍓⍓⍓⍓⍓⍓⍓⍓⍓⍓⍓⍓⍓⍓
{a} the non-Quaker exception to this was Terry’s (established 1767, York, UK), famous for “Terry’s Chocolate Orange” and now owned by Kraft Foods
{b} the Quaker chocolatiers’ success was remarkably out of proportion to their numbers…with Quakers just one in fourteen out of a total UK population of 21M in 1851, they comprised >0.1% of the population [Jackson, loc.cit.]
{c} descendant and family historian Deborah Cadbury states that the Cadbury founder practiced a brand of “Quaker capitalism” that valued hard work and “wealth creation for the benefit of the workers, the local community, and society at large” [Cadbury, op.cit.]
{d} John Cadbury had a long connexion with the Temperance Society
{e} later with the move into making chocolate bars, what gave the Quaker confectionery businesses an added edge over rival manufacturers was their preparedness to invest in new, state-of-the-art machinery [Jackson, loc.cit.]
{f} the Cadbury village inspired the American non-Quaker Milton Hershey(a Pennsylvanian Mennonitein fact) to create his own ‘utopian’ village for his chocolate factory workers [Cadbury, op.cit.]
{g} a 1969 merger with soft drink giant Schweppesproved less enduring with the two partners demerging in 2008
{h} behind Mars, Hershey and Cadbury’s
{i} in recent years some brethren of theQuaker movement have objected to the way the company’s advertising depicts Quakers, ‘Quaker Oats Company’, Wikipedia, http://en.m.wikipedia.org]
The Westfield business group, after its recent merger with a Franco-Dutch real estate Goliath made it the largest commercial real estate corporation in the world, has come a long way from its humble beginnings in Blacktown, NSW nearly 60 years ago.
⇡ Westfield development signage, 1960s (Source: ‘Westfield History’)
The story begins with two postwar Jewish refugees from Eastern Europe. They both arrive in Sydney in the early 1950s and both separately start up small businesses in western Sydney. Frank Lowy and John Saunders (originally Jeno Schwarcz) come into each other’s world when Lowy would regularly deliver small items to Saunders’ milk bar. The two hit it off and in 1955 they combine their skill sets and open a delicatessen together in Blacktown (outer western suburbs of Sydney).
Lowy’s road from small goods deliverer to nation-wide/international mall king
In July 1959 Saunders and Lowy, having adopted the one-stop-shopping model of US retailing and recognising the population growth potential of western Sydney, open their first shopping centre – Westfield Plaza❈ in Blacktown [‘Australia’s retail history – Westfield Parramatta’, 29-Sep-2017, www.arc.parracity.nsw.gov.au]. With 12 shops, two department stores and a supermarket, “people flocked to see the plaza which newspapers of the day described as the most modern American-type combined retail centre” [Scentre Group, (history), www.scentregroup.com].
Westfield Plaza of itself was not anything like a full-blown shopping mall on the American scale, but it did launch Westfield✥ on its skyward trajectory. In 1960 the Westfield Development Corporation was listed on the Australian Stock Exchange as a public company. According to the gurus of applied finance, such has been Westfield’s phenomenal success in the commercial property game that “anyone who had the foresight to invest $1000 in the fledgling Westfield group back in 1960 and (then) reinvested all the dividends back into stock would have a holding valued at $136 million” (as at 2004)[‘Lowy’s retail revolution’, Sydney Morning Herald, 26-Apr-2004, www.smh.com.au].
⇡Burwood Westfield Shoppingtown, 1966
Westfield Hornsby shopping centre (1961) opened two years after Blacktown…by 2018 there were about 36 Westfields in Australia, the majority in the eastern coast states of NSW, Victoria and Queensland❂. In 1977 Westfield took the plunge and moved into the American market. The first US Westfield mall was the Trumbull Shopping Park in Connecticut…by 2005 there were Westfields in 15 American states, many clustered together in particular cities (in 2018 the total number of Westfield malls in the US was given as 33). Worldwide there are over 103 Westfield shopping centres including in the UK, New Zealand, Italy, Croatia and Brazil [‘Westfield Group‘, Wikipedia, http://en.m.wikipedia.org].
⇡ Westfield Eastgardens (NSW)
The Lowy/Westfield formula for success
Locating for growth: Unlike the mall pattern in America (developments on the edges of urban sprawl) Lowy and Saunders put their retail centre developments in places that were close to railway stations, in areas that were growing or were already built-up, allowing Westfield to “dominate the prime catchment areas for retail spending” [‘Sir Frank Lowy’s Great Australian success story’, Australian Financial Review, 14-Dec-2017, www.afr.com].
Westfield’s involvement in commercial property projects did not confine itself to solely building the shopping centre, but rather it retained an ongoing role in the venture through ownership of the investment portfolio. Thus, Westfield maintained a constant cash flow while its assets ensured it would be able to secure finance for future expansion. With the growth of department store retailing from the 1960s, it was specialist developers like the Westfield Group and Lend Lease who became the dominant players over time in the Australian landscape [‘Westfield’s history tracks the rise of the Australian shopping centre and show what’s to come’, (Louise Grimmer & Matthew Bailey), The Conversation, 13-Dec-2017), www.theconversation.com].
The challenge of online shopping
Lowy’s Westfield, like all 21st century retail industry players, has had to adjust to competing with the modern worldwide phenomena of the “digital revolution”. Large retail players losing market share to online sales have adopted strategies such as moving to “smaller, more carefully curated boutique stores in affluent areas” (eg, DJs, Debenhams UK), thereby severing their reliance on being inside big shopping malls [ibid.].
The advent of pop-up storeshas also provided a challenge to established retail stores and malls in the 21st century. Uniqlo, In-N-Out Burgers, Niké, Nestlé, Coco-Cola, and numerous other businesses have established their pop-up presence in Australia over the last decade or so. The immediacy and flexibility of this retail mode have allowed them to drastically cut their overheads and take a share of the permanent entities’ market. Westfield’s response has been to rebrand its casual leasing division as the “Pop-up Department”, and thus making it easier for pop-ups to be accommodated within the Westfield shopping centre umbrella [ibid.].
⇡Westfield Geelong (Vic.), 1986
In the face of growing online competition from e-commerce giants such as Amazon, the malls and large department stores have made concerted efforts to lure back lost customers…to take Westfield as an example again, the approach has been to try to enhance the in-store services available to customers, to provide “unique services and experiences” that would value-add to their visits in a way the online businesses couldn’t offer [ibid.]. This prompted a strategy change from Lowy◙, a refocus on “developing flagship stores in prime international retail sites, (and) developing shopping experiences, not just transactions”✦ [‘Sir Frank’ (AFR), loc.cit.].
The model for the new approach, as usual, has been the overseas malls, especially the US. These shopping enterprises, to entice the buying public to desert the online mode and return to the physical store, have taken to offering punters a new mix of leisure and entertainment options inside the malls. Shopping centres in Australia have already embraced some of these innovations⊙ (like upscale dining, cinema complexes, fitness clubs) and are certain to add many of the other mall features already in place in the US (eg, concert venues, day spas, art galleries, farmers’ markets) [Grimmer & Bailey, op.cit.].
Footnote: Remarkably on song as Frank Lowy’s business antennae has been, there have one or two lapses (over a sixty year span!) where Frank DID NOT emerge out of a deal with “laugh lines around his pocket” (a “Fred Daggism” (AKA John Clarke)) … probably the lowest point was Lowy trying to buy the TEN Network in the 1980s and getting his fingers badly burnt. Within the milieu of the mall Lowy has had a reputation for being a tough landlord. At one point Westfield Group was brought before the ACCC (Australian Competition and Consumer Commission) which found that Westfield had abused its market and commercial power. Lowy was forced to formally undertake to “not engage in unconscionable conduct and intimidation” of tenants [‘Westfield promises not to bully’, (Anthony Hughes), Sydney Morning Herald, 18-Jun-2004, www.smh.com.au].
⇡Westfield’s founder & entrepreneurial driving force
PostScript: Nothwithstanding Westfield’s measures to try to counter the inroads made by the online merchandisers, Westfield, in line with the catch-all trend adversely affecting global retailing, had suffering a downturn in trade. Ultimately Lowy (and his sons) decided at the end of 2017 to sever their hold on the hitherto family business empire. Lowy meticulously and vigorously negotiated the sale of Westfield to international property giant Unibail-Rodamco, a societas Europaea (a public company set up under the auspices of the EU). The transaction netted the Lowy family a cool $32.7bn with the new merger entity taking the name Unibail-Rodamco-Westfield [‘Westfield: Lowy family sells shopping centre empire to French property giant’, (E Morgan & I Verrender), ABC News, 12-Dec-2017, www.mobile.abc.net.au].
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❈ some sources give the name as “Westfield Place”
✥ etymology: ‘West’ = the location in Sydney’s western suburbs \ ‘field’ = the first centre was located on subdivided farmland
❂ Burwood Westfield Shoppingtown (inner west Sydney) opened in 1966, was the first Westfield to carry the (now characteristic) company logo…it was also the first to contain a major department store – David Jones [1959 Westfield Place opens in Blacktown’, (Australian food history timeline), [www.australianfoodhistorytimeline.com.au]
◙ Westfield’s two-man partnership came to an end when co-founder John Saunders sold out his half of the business in 1987
✦ in 2014 the Westfield Group undertook a major organisational restructure, splitting into two entities – Scentre Group (Australasia) and Westfield Corporation (Europe and America)
⊙ the Chadstone Shopping Centre in Melbourne, for example, now has the Legoland Amusement Park within its walls
Pan American World Airways, or as it was universally known in its peak, Pan Am, is a name that is no longer displayed on the flight indicator boards of international airports across the globe. However up to the Eighties it was one of the premier names in the international airline industry. At the top of it’s game the airline was completing up to 214 flights from the US to Europe a week (1964) [‘Juan Terry Trippe, Founder of Pan Am World Airways and InterContinental Hotels’, Stanley Turkel (PDF, 2006), www.ishc.com].
From the ground up
Like quite a few young, middle class American men during the Great War, Tripp gravitated towards a future in the air, at first aspiring to be a navy pilot. After the war he transitioned from running a failed taxi service into a small regional air transport company. Trippe’s drive to succeed led him within a few years to merge his group with two other similar-sized ones to form Pan American Airways Inc.
The New Jersey-born businessman came up with a steady stream of novel ideas for innovation in the airline industry – which however required money. Prospects were bright though as new airline ventures were a good selling point. As William Stadiem explains, flying in the “Roaring 20s” was “the high-tech startup of its time!” Financiers, including members of the Rockefeller and Vanderbilt families, were all too willing to bankroll Trippe’s burgeoning airline industry ambitions [William Stadiem, Jet Set: The People, the Planes, the Glamour, and the Romance, in Aviation’s Glory Years (2014)].
By 1927 Trippe had started to assemble the rudiments of a fleet of aircrafts, initially with a brace of tri-motored Fokkers supplemented by some ageing surplus floating boats which he converted into the Pan American Flying Clippers (Trippe was a pioneer of these multi-engine seaplanes). Thus modestly began Pan Am’s first air mail service to the Caribbean (maiden flight in a 65-horsepower Seagull – Key West Florida to Havana) which paved the way for further Pan Am incursions into the region. Expansion followed innovation – from the West Indies he moved into Central and South America, and the foundations were laid for a global transport business✲.
Eschewing managerial orthodoxy
As textbook BUS101 management orthodoxy goes, Tripp was far from the desired model. His inclination was not to delegate and he was given to making unilateral decisions without consulting – much to the chagrin of his boards of directors [‘Juan Trippe and Pan Am’, (Richard Branson), Time, 07-Dec-1998, www.content.time.com]. What he was really exceptional at though, was anticipating the market in air travel, working out usually before anyone else what the next big thing was going to be…and going for it totally!
Business transparency was not part of the Trippe management style…his early inroads in the industry owed a lot to his “stealthy lobbying for U.S. mail licences”, which gave Pan Am a precious legup! [Harold Evans, Gail Buckland & David Lefer, They Made America, (2004)]. Trippe took a ruthless approach to competition and was not adverse to doing secret deals to outmanoeuvre his airline rivals [‘Juan Trippe Revolutionized Trips By Air With Pan Am’, (Scott S Smith), Investor’s Business Daily, 09-Oct-2014, www.investors.com].
Pan Am at times resorted to outright bribery to stay ahead of the pack, eg, offering several 100 thousand dollars to a Mexican president to block rival American Airlines’ bid for landing rights in the US’ southern neighbour [‘Juan Trippe’s Pan Am’, (Ann Crittenden), New York Times, (Archives),03-July 1977, www.nytimes.com].
Thoroughly innovative Juan
By continually expanding the scope of Pan Am’s operations, creating many new routes, Trippe opened up both the Atlantic and the Pacific to air travel❂. Trippe’s list of innovations in the industry are legion – including the pioneering of round-the-world commercial flights; the introduction of cockpit electronics allowing Pan Am pilots to fly in any weather; he also came up with “fly now, pay later” plans; his personnel came up with an advanced (computerised) reservations system first [Stadiem, op.cit.; ‘Dead Airlines And What Killed Them’, (Jean Folger), 25-Jun-2010, Investopedia, www.investopedia.com].
Before Laker Air there was …
Perhaps Trippe’s greatest legacy however was the pivotal role he played in making affordable air tourism a reality to everybody. When Trippe and Pan Am entered the still embryonic industry, seats were expensive and airline passengers tended to be exclusively from the well-off sectors of society. The airline ‘biz’ was run by a cartel called IATA (the International Air Transport Association) who contrived to maintain airline prices at a high level [Scott, op.cit.].
The first discount king of airlines
The Pan Am boss’ idea was to introduce a new class of passenger, “tourist class”, slashing the round-trip fare from New York to London by half (to US$275). The cartel reacted by trying to impede the US maverick’s move. British airports were closed to all Pan Am flights with tourist seats (Pan Am was forced to switch its European flights to remote Shannon Airport in Ireland). Pan Am managed eventually to get round the cartel’s net, it’s tourist class proved so popular that IATA caved in and accepted the reality of it [Branson, loc.cit. ; Smith, op.cit.]. Trippe’s actions thus brought air travel within the reach of ordinary people.
Airline entrepreneur and “friends with benefits”
Part of Trippe’s success owed a lot to influential people in high places…he benefited from a personal rapport with presidents like FDR and Truman. In fact, far from it being exclusively a triumph of free enterprise, federal government cooperation and support were integral to Pan Am’s overall success in the business [Crittenden, loc.cit.].
⍔JT Trippe & CA Lindbergh (Source: The Trippe Family)
Juan Trippe had the nous to surround himself with the right people from the start…in 1927 he ‘headhunted’ the (then) most marketable figure in world aviation, famed pilot Charles Lindbergh, to work for Pan Am (Lindbergh’s Continental survey flights helped establish the company’s early trade routes✥).
Another key figure within the company was its chief engineer Andre Priester who wrote the specifications for Pan Am’s flying boats. Priester set and maintained the airline’s meticulous safety standards [‘Pan Am Series – Part XLVIII: Skygods’, (Jpbtransportation: the Blog and Website of James Patrick Baldwin), 15-Feb-2015, www.jpbtransconsulting.com]. Staff training and airline safety were things Trippe refused to take shortcuts with – insisting on a high level of training for his pilots, flight crews, mechanics and support staff [Folger, loc.cit.].
With a little help from his (fellow capitalist) friends
Trippe in retirement freely acknowledged the help he received from United Fruit Company…the powerful US banana multinational assisted Pan Am early on to establish a presence in Latin America, thanks to United Fruit’s unique(sic) insider knowledge of the region’s states and its capacity to open doors to various governments [ibid.]. Trippe and Pan Am also prospered from cultivating a good friendship and working relationship with long-time Boeing head Bill Allen.
Enter the jet age
By the 1950s the heyday of “prop-liners” (propellor-driven aircraft) had come to an end. Jet liners were the future, trouncing ‘props’ for both aircraft speed and carrying capacity…and as ever Trippe got in at the ground floor! Trippe immediately bought up big on Boeing 707s and the first 707 Pan Am commercial flight took place in 1958 (NY-Paris)✮. He then got to work on making it more economical by figuring out how to reduce the jet’s seat-mile cost [Branson, op.cit.].
While going full-tilt into 707s Trippe was already looking beyond…to the 747, the jumbo-jet. As Evans et al observes, Trippe had “an almost clairvoyant grasp of the future (and a) determination to find aircraft to fit that vision” [Evans, Buckland & Lefer, op.cit.]. Unfortunately for Trippe, the antennae didn’t work as desired every single time and a few missteps had serious ramifications for the long-term future of Pan Am (see below).
⍔1st InterContinental: Belém (Brazil)
Pan Am ‘accommodates’ – airport to hotel…
Inevitably, the holistic approach Trippe brought to the airline industry✢ led him to capitalise on the airline ‘s success by directly entering the hospitality field… connecting the dots between passenger transportation and accommodation. With government encouragement from US president FD Roosevelt, Trippe began InterContinental Hotels & Resorts in 1946as a subsidiary of Pan Am…the first international hotel was situated in Belém, Brazil. Between 1946 and 1996 there were 222 I-C Hotels doing business worldwide (>90% of them outside the US) [Turkel, loc.cit.]※.
Changing fortunes
Pan Am – once a ‘Titan’ of the airways – is no more, what then led to its demise? Some observers trace the seeds of its eventual fall to the late 1940s – years before the company had reached the peak of its powers. Earlier in the Thirties, during Pan Am’s formative first decade, Trippe lobbied the US government, advocating his “chosen instrument” theory (by which Washington would designate a single air carrier for all foreign flights). Pan Am in fact secured this special status, initially with the awarding of a 10-year mail contract by the US Postmaster-General. Eventually though other carriers were green-lighted to enter the overseas field and started to claw back Pan Am’s advantage [Smith, loc.cit.]. Postwar, competitors such as Howard Hughes’ Trans-World Airlines (TWA), Braniff and North West Orient were allowed to enter Pan Am’s routes in South America and Asia, and contest it’s semi-official monopoly✧ over those regions [‘Pan-American World Airways: the rise and fall of a 20th century cultural icon’, (06-Jan-2017), www.seanmunger.com]. The “catch-up” had commenced.
However when Pan Am sought to establish a competitive foothold domestically in the late Forties, the US government flatly rejected its request to start a connecting domestic route network [‘Lots of Reasons Why Pan Am Failed’, (Robert J Byrne), Washington Post, 25-Jan-1992, www.washingtonpost.com]. This setback proved a critical handbreak on Pan Am’s expansion into the profitable US internal passenger market.
⍔Pan Am logo, the “blue meatballs”
In 1968 Juan Trippe stepped down as company president, however he remained active and influential in Pan Am’s executive decision-making, maintaining an office in the company’s headquarters. Pan Am still looked in solid business shape, it has 40,000 employees and was flying seven million passengers a year to some 86 countries. Trippe’s unflagging desire and capacity for change and innovation was to be a “two edged sword”, sparking Pan Am’s upward trajectory but also contributing to its ultimate decline. Not content with the revolutionary 707, Trippe cajoled the jet manufacturers to design a new “jumbo jet” capable of carrying in excess of 180 passengers⊡. The 747 answered this ‘need’, with the first commercial flight of a Pan Am 747 taking place in 1970. Trippe employed a similar stratagem with the Kennedy Administration which was reluctant (because of the exorbitant cost involved) to embrace the next level up, the SST-2707 supersonic jet. By signalling that he intended to purchase five Anglo-French Concorde planes, Trippe pressured President Kennedy into launching the American Supersonic Transport project. But this was one instance where Trippe’s ‘hunch’ was badly off target. The Boeing 2707 proved so problematic (and costly) that the project was dropped altogether in 1971.
⍔Two Pan Ams, 707 & 747 (source: Boeing)
The ill-timed expansion into 747s: Capacity overloadTrippe, always striving to be ahead of the curve, placed his order for the new 747s before they were designed, let alone off the assembly line! On this occasion the economy brought him and the company unstuck. The timing of the introduction of 747s, 1970, was not great – coinciding with a recession! Trippe didn’t foresee the 1973 oil crisis, which blew out the costs for maintaining the fleet of jumbos – fuel prices skyrocketed after the Middle East energy backlash [Folger, loc.cit.].
The state of Pan Am’s finances in the early Seventies was not propitious for taking on something of the magnitude of the 747. Commencing from 1969-70 Pan Am experienced seven straight years of losses. By 1977 the company’s long-term debt amounted to a disquieting $727 million! The financial burden on Pan Am was too much – and the problem was compounded by one of Trippe’s successors as company head (Najeeb E Halaby) who bumped the order of 747s from Trippe’s original 25 up to 33 aircrafts [Crittenden, loc.cit.].
Other developments in the world added to the company’s woes. The spate of terrorist incidents involving Pan Am, culminating in the 1988 Lockerbie tragedy, damaged the company’s reputation and precipitated a decline in travel numbers [Folger, loc.cit.].
Deregulation
Another setback for Pan Am came in the late 1970s with industry deregulation. The legislation of course brought more competition for Pan Am into the game, but this time coming from the big international airline players. Deregulation also meant that Pan Am could now at last enter the American domestic market, and it acquired National Airlines which unfortunately failed at a time Pan Am was in need of a financial “pick-me-up” [Smith, loc.cit.].
When the end came for Pan Am, it came fairly abruptly – in 1991. Pan Am offices everywhere simply closed their doors, virtually overnight. Rising costs of operation, falling market share, a trough in passenger numbers (a further blow in this respect was brought on by the 1990 Gulf War which led to a fall-off in international travellers) [Folger, loc.cit.]. There was a failure to make preparations for a smooth transition for Pan Am after the head’s departure. Trippe, having been so dominant and instrumental in the company’s success over four decades, was negligent in not planning for a long-term successor to himself [Byrne, loc.cit.]. This hurt Pan Am during the rocky days ahead when it was in desperate need of clear-headed, astute leadership.
Footnote: in the 1920s and 30s Juan Trippe was one of a handful of great US airline pioneers – the elite list also included CR Smith (American Airlines), WA Paterson (United Airlines), Eddie Rickenbacker (Eastern Airlines) and Collett E Woolman (Delta Airlines).
PostScript: Pan Am’s broader role
Under Trippe, Pan Am’s planes could be called upon when required to provide service outside it’s core commercial role. This happened in war, both hot and cold (eg, active role of Pan Am Clippers in WWII; humanitarian trips during the 1948-49 Berlin evacuation; collecting “refugees from communism” in Cuba during the early years of the Castro regime). Trippe also came to the rescue of his fellow “captain of industry” Henry Ford in 1931, by flying the Brazilian military into the remote Amazon to put down a worker revolt in the Fordlândia rubber plantation.
✲ in addition to a purely business opportunity, Trippe’s focus on this region was to help forestall the establishment of a German (and possibly also a French) airline service to the Panama Canal (in which the US held a strategic interest), [Sean Munger, op.cit.]
❂ by the 1970s the Pan Am publicity arm was able to boast that it was “the World’s Most Experienced Airline”
✥ often taking him to inassessible places in South and Meso-America where Trippe’s workers would follow, having the arduous job of hacking out landing strips from the dense jungle [Smith, loc.cit.]
✮ in very quick time BOAC, QANTAS, Air France and Lufthansa, among others, rushed to embrace 707s. In 1959 the Douglas company debuted its DC-8, virtually a copy of the 707 [Stadiem, loc.cit.]
✢ in the early years Trippe had even helped build airports in the jungles of Latin America to fit in with the new air routes planned for Pan Am
※ the hotel chain was sold to an English conglomerate, Grand Metropolitan, after Trippe’s death in 1981
✧ Pan Am’s role at that time has been described as the US’ “unofficial flag carrier”, [George C Larson, ‘Moments & Milestones: Birth of the Clippers’, Air & Space Smithsonian, Nov 2010, www.airspacemag.com]
⊡ skillfully Trippe played the big manufacturers (Boeing, Douglas and Lockheed) off against each other, manipulating them into commiting to an even larger jet before they were ready to build it! [Smith, loc.cit.]
Next year, Sainsbury’s, which has long maintained a place on the podium of Britain’s leading supermarkets will reach its sesquicentennial milestone – 150 years in the grocery retailing trade. Over the last 20-plus years the company has had to content itself with the runner-up position in the market leadership ladder of supermarket chains, trailing the seemingly ubiquitous and dynamic Tesco which has swept all before it. Nevertheless, Sainsbury’s has carved itself a distinctive and impressive notch among the titans of modern British retailing since it first opened for business in the Victorian era.
Foundation years, butter and establishing the Sainsbury styleIn 1869 the newly wed John James Sainsbury, founded Sainsbury’s in partnership with his wife, Mary Ann Sainsbury (née Staples). The two opened their first dairy goods shop at 173 Drury Lane, Holborn (London). Mrs Sainsbury played an active role in the business, in the early years she effectively managed the Drury Lane shop, making it “famous for the quality of its butter”. As Sainsbury’s built its formative business reputation largely on product quality, Mary Ann (the daughter of a dairyman) insisted on fresh milk on the shop’s shelves, as well as, that the Dutch supplier of Sainbury’s butter date-stamp every unit item it supplied [‘The History of Sainsbury’s – Trying Something New for 147 Years’, (Darren Turner, 11 Nov.), www.s4rb.com]. The freshness and purity of Sainsbury’s butter gave it a commercial edge over the competition in an era known for widespread food adulteration (eg, it was a common practice for milk to be watered down) [Judi Bevan, ‘Battle of the Supermarkets’, RSA Journal, Vol. 152, No 5517 (June 2003)].
In the 19th century Sainsbury’s rivals in the grocery game were shops like Lipton’s and Home and Colonial Stores. Early on John J Sainsbury developed a business model which made the shops stand out from the other grocers by doing things differently. Appearance was important to Sainsbury, the shops were clean and hygienic, on offer were “high-quality products and fresh provisions at prices even London’s poor could afford” (an early shop slogan was “Quality perfect, prices lower”).
A gradualist approach to growthJohn J Sainsbury, whose motto could well have been “Make haste slowly”✱, was in no hurry to expand the business. From the Drury Lane foundations he gradually added a shop in Kentish Town and then two more in the new railway suburb⊡. It wasn’t until 1882 that Sainbury made his first move outside London, establishing a shop in Croydon, one that specifically sought to cater for a middle-class clientele, selling comestibles which were in the luxury range (foreign cheeses, poultry and game birds, cooked meat delicacies, etc) [‘Sainsbury family’, (Bridget Salmon), Oxford Dictionary of National Biography, (23-IX-2004), www.odnb.com].
Even well into the 20th century century each new Sainsbury’s store was a matter of measured deliberation…the company continued “to place the highest priority on quality, taking the time to weigh each decision, whether it meant researching suppliers for a new product, assessing the reliability of a new supplier, or measuring the business potential of a new site” [‘J Sainsbury plc History’, Funding Universe, www.fundinguniverse.com].
During John J Sainsbury’s tenure in charge, the company established what was to become the Sainsbury’s “house style”, stores which were elaborately decorated in contrast with the other (typically drab) grocers of the day. The key to the company’s success was covering all of the bases…John James would price-match the competition while at the same time offering higher standards of quality, service and hygiene. Moreover, the likes of Home and Colonial and Lipton’s, while having numerically more shops, could not match Sainsbury’s range of products [ibid.].
Sainsbury’s “Own Brands”Although “own brands” are thought of as a modern phenomena in retail merchandising, Sainsbury’s first introduced the concept as early as 1882! The shop’s first own brand was its staple commodity – butter. Sainsbury’s continued this practice and by the 1950s there was a host of such offerings on the shelves: ‘Sainsbury’s Cornflakes’, ‘Sainsbury’s Snax Biscuits’, ‘Sainsbury’s Cola’, ‘Sainsbury’s Peas and Carrots’, etc, etc. [‘The History of Sainsbury’s’, loc.cit.]. By 1980 half of the products Sainsbury’s sold were under its own label [Bevan, op.cit.].
Modernising Sainsbury’sIn 1950 Sainsbury’s refitted one of its earliest shops, in West Croydon, creating what was Britain’s first supermarket proper, one of the country’s earliest to operate as fully self-service. Some customers were at first put off by the innovation, thinking it impersonal and “anti-social”, however the convenience factor of not having to wait to be served eventually won out…Advertising and Marketing magazine reviewing the new store concluded: “From the point of view of the customer the chief advantages of self-service shopping are the speed with which shopping can be done and the ease with which one is reminded of things needed…these advantages substantially outweigh the disadvantages of not getting the personal attention of the assistant.” [‘Sainsbury ‘s return to site of first self-service supermarket’, (Graham Ruddick), The Telegraph (UK), 30-Aug-2013, www.telegraph.co.uk].
Although under its founder Sainsbury’s had been reluctant to get too big too quickly, once the company passed to his successor, son John Benjamin Sainsbury✫, the number of stores grew (though still at a trademark cautious pace). Under the strong leadership of a string of postwar CEOs (such as (John) Baron Sainsbury of Preston Candover), this trend was maintained❂.
Although Sainsbury’s followed a typically cautious approach to its business model, the company couldn’t be accused of dragging its feet when it came to embracing new technology. In the early Sixties they were the first retailer in Britain to develop a computerised distribution system and their stores were among the first to turf out electronic cash registers in favour of scanners in the late Eighties [‘J Sainsbury plc’, www.company-histories.com].
In 1973 the company went public under the holding co name J Sainsbury plc after being floated on the stock market. The 1970s witnessed increasing competition from discounters and a squeezing of profit margins, prompting an escalation in diversification…non-food items started to appear on Sainsbury’s shelves. It also innovated with the advent of ‘Savacentre’ hypermarkets and ‘Homebase’ house and garden centres. Overseas expansion was concentrated in the US – Sainsbury’s acquired Shaw’s Supermarkets, Giant Food Inc and Star Markets (its holdings in Shaw’s were unloaded in 2004).
Stumble and renewalDuring the Nineties, Sainsbury’s, hitherto accustomed to being the premier supermarket chain, was relegated to second place by Tesco which became supermarket “top dog” in the UK in 1995. A change-up was required at Sainsbury’s and further diversification was sought. In 1997 the company ventured into in-store banking (in partnership with the Bank of Scotland – before going it alone in 2014). During this period the 130-year direct involvement in running the company of the Sainsbury family came to an end with the retirement of David (Lord) Sainsbury. The acquisition of Bells Stores in the early 2000s signalled a move into convenience stores, adding to the variety of its retail outlets.
Sainsbury’s – status quo in 2018 and future fortunes?In the contemporary British retail landscape, Sainsbury’s, with a healthy slab of the market, is the second largest chain in the country✥ with ≻1415 stores (2017) and ≻186,900 employees (2018). Despite having long conceded first place to Tesco, this state of play is a fluid one…no longer dominated by the Sainsbury family (though it retains 15% of shares in the company), these days the majority shareholder is the Qatar Investment Authority (note comparisons with Harrods). 2018 has seen Sainsbury’s unearth a bold attempt to unseat Tesco’s hegemony through a planned merger with ASDA which would give the merged entity around 30-31% of the UK market – as against about 27.5% for Tesco (Source: Kantar). Approval of the controversial merger is still pending but could depend upon Sainsbury’s and ASDA offloading 463 of their stores to win over the competition ‘watchdog’ (CMA) [‘Walmart’s Asda agrees to UK merger deal with Sainsbury’s’, (Silvia Amaro) 30-Apr-2018, www.cnbc.com; ‘Sainsbury’s and Asda may have to offload 460 stores to seal merger’, (Sarah Butler), The Guardian, 28-Sep-2018, www.theguardian.com].
Footnote: A “leg-up” for UK supermarketsAs the age of postwar austerity and scarcity gave way to an era of abundance and growth in the 1960s, supermarket heavyweights like Sainsbury’s and Tesco led the way. The supermarket chains on their expansionary arcs was facilitated by legislative changes affecting the retail sector. The abolition of resale price maintenance (RPM)✧ by the British Board of Trade in 1964 was a total game-changer! RPM had allowed (especially large) manufacturers to dictate terms to retailers, the law change shifted the balance in favour of Tesco, Sainsbury’s and co, who now could lord it over even the largest of manufacturers like Unilever and Procter & Gamble [James Buchan, Review of Trolley Wars by Judi Bevan, The Guardian, 30-Apr-2005].
PostScript: How Tesco outmanoeuvred and outgunned Sainsbury’sOne of the key moves made by Tesco was to take careful note of what the older retailer was doing right (eg, offering quality in goods and service) and copying it! (in “Tesco-speak” this is called ‘benchmarking’ the opposition) [Bevan, op.cit.]. As Tesco grew incrementally it benefitted from a “virtuous circle” of business⊙. The sheer, monolithic size of Tesco allows it to buy merchandise more cheaply and accordingly sell it more cheaply. Ergo, they turn over more customers and make greater sales, and so the cycle is sustains itself [Buchan loc.cit.]. Tesco has a reputation for following intuitive hunches…being less risk adverse than other major supermarkets like Sainsbury’s it happily ventured into lower class, ‘brownfield’ areas that its competitors wouldn’t touch [Bevan, op.cit.].
—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧—‧✱Festina lente – the motto of Roman emperors Augustus and Titus, et al⊡ a calculated, gradual approach to expansion suited John James who had a very hands-on management style, by temperament he was a “micro-manager”, immersing himself in the minutiae of the shops’ everyday transactions✫ known for his focus on staff welfare and remembered by one of his senior staff as a “benevolent dictator”, [‘Sainsbury family’, loc.cit.]❂ there have so many Sainsbury family members involved in the company, in British politics, in art patronage and philanthropy, to almost necessitate a scorecard✥ although it briefly conceded second place to the Walmart owned ASDA in 2003/2004✧ Resale price maintenance (or retail price maintenance) is a practice where the distributor agrees to sell at a price set by the manufacturer⊙ a business scenario the Financial Times described as “hard to create, but (also) hard to disrupt”
In the UK’s highly competitive retail world Tesco plc is the kingpin grocer, at the top of the tree of Britain’s supermarket chains. With over 3,400 stores across the UK and a presence in around a dozen countries worldwide✱, Tesco pulled in revenue in 2017 to the tune of £55.9B. The retailer’s origins though, way back at the end of the Great War, were of course much more humble. Like fellow high-flying UK retailer, Marks and Spencer, it began with one man and a market stall operation.
Jack Cohen got the business ball rolling in 1919 with a basic stall✥ in the Well Street Market, Hackney, London…for start-up capital Cohen (born ‘Jacob Kohen’) had a £30 stipend from his recent WWI service. From his barrow and stall operation, the antecedent of Tesco, the 21-year-old started off selling matzos (unleavened Jewish crisp bread) and other army surplus food he had purchased. On opening day Cohen made a princely £1 profit from a grand total of £4 in sales [‘A History of Tesco: The rise of Britain’s biggest supermarket’, by Tim Clark and Szu Ping Chan, The Telegraph, 04-Oct-2014,www.telegraph.co.uk].
Genesis of the business nameIn the early days, a big-ticket item that Cohen sold was tea from T E Stockwell (in fact the first product sold by Cohen under the Tesco brand). From the Stockwell name Cohen simply took the first three initials ‘T E S’ and added the first two letters of his own name ‘C O’ on to the end of it – thus forming the business’s famous name, ‘TESCO’ (and unsold “Stockwell Tea” got repackaged and rebranded as “Tesco Tea”).
From North London to the nationCohen opened his first shop in Burnt Oak, near Edgware, North London, in 1931. Within a short period he had built the company headquarters and a central warehouse also in North London (Edmonton). The London retailer’s strategy was twofold – to expand by gradually buying out smaller grocery stores, and to buy the unsold merchandise other grocers couldn’t sell, which he would repackage and rebrand and then on-sell it to the public cheaper than anyone else (earning himself the nickname ‘Slasher Jack’) [‘Tesco UK, brief history and overview’, www.eeph.org.uk].
Cohen’s business motto, and therefore the company’s motto, was “pile it high and sell it cheap”, a straight-forward business philosophy of “low cost and high volume”✪ along the line of the large Woolworths chain. One of Cohen’s “bargain basement” product mainstays was ‘Snowflake’, a New Zealand canned milk which accounted (together with Tesco Tea) for much of the early Tesco sales [Sarah Ryle, The Making of Tesco: A Story of British Shopping (2013)]. By 1939 there were in excess of 100 Tesco shops all round the United Kingdom. Where Cohen chose to locate a Tesco, seems according to his daughter (the future Conservative MP Dame Shirley Porter) to have been something of an intuitive hunch. As she later explained, they’d be driving around town and “he’d suddenly say ‘this looks like a good place for a shop’ and he’d leap out and chat a few people up”. This was the very hands-on way Cohen would conduct market research [Ryle, op.cit.].
First with self-serveJack Cohen’s introduction to the idea of self-service grocery outlets came on a visit to the US in 1935…Cohen was initially not impressed. The immediate postwar period in Britain was characterised by a hike in wholesale costs of goods, which could not be passed on to customers due to the burdens of postwar austerity. Cohen made a return visit to the US at this time, accompanied by his son-in-law Hymon Kreitman who was enthusiastic about the American self-serve concept as typified by the pioneering Piggly Wiggly supermarkets. Cohen, influenced by Kreitman, eventually opened Tesco’s (and Britain’s) very first self-service shop at St Albans (Herts.) in 1948 as a way of countering the rising costs of commodities. Another first for Tesco was the first supermarket in the UK, opened in 1958, located in Maldon, Essex (it featured separate counters for meat, butter and cheese) [‘Jack Cohen (businessman)’, Wikipedia, http://en.m.wikipedia.org].
Maldon supermarket (interior)⬇️
Expansionary growthThe 1950s and ’60s for Tesco was marked by unbounded expansion through the acquiring of many smaller grocery shops. Among the scalps of small retail outlets claimed by the burgeoning company were Burnards stores, Williamson’s shops, Harrow stores, Irwin’s shops, Charles Phillips’ shops and the Victor-Value chain (this last concern was unloaded by Tesco in the Eighties). Between 1955 and 1960 alone, Cohen bought over 500 new shops across the country [‘Tesco: How one supermarket came to dominate’, (Denise Winterman), BBC Magazine, 09-Sep-2013, www.bbc.com].
After Jack died in 1979 Tesco’s expansionary trajectory continued unabated…there was a hostile takeover of Hillards supermarket chain in 1987, the acquisition of William Low shops in 1994 gave them a greater market concentration in Scotland, as did the snaring of Associated British Foods three years later for Ireland and Northern Ireland. The Safeways/BP shops, and a move into convenience stores T&S Stores and Adminstore followed. The opening of Tesco’s Leicester “super-sized” store in 1961 made it, at that time, the largest grocery store in Europe. By the 1990s Tesco had overtaken Sainsbury’s as Britain’s largest food retailer. So extensive has been the spread of Tesco shops, it is thought that only one postcode in the entire UK – Harrogate in North Yorkshire – doesn’t have a Tesco in it! [Clark & Chan, op.cit.].
Diversifying TescoFrom the Sixties Tesco started to diversify in a big way! To the traditional staple of grocery lines were added clothing, books, furniture, software, internet services and in 1974 the sale of petrol. The Tesco Bank (financial services) was launched in a joint venture with the Royal Bank of Scotland, and later gained a foothold in the communications field with the advent of Tesco Mobile [‘Tesco’, Wikipedia, http://en.m.wikipedia.org].
Diversification also meant a dilution of Slasher Jack’s traditional retail philosophy of providing only the cheapest of the cheap. This change-up saw Tesco for the first time add upmarket quality items to its catalogues. The physical nature of Tesco’s retail outlets diversified during this period. To the standard supermarket format was added hypermarkets (called Tesco Extra) at one end of the spectrum, and “one stop” shops/neighbourhood convenience stores (Tesco Express) at the other. In between these polarities were Tesco Metro and Tesco Superstores. Such market manoeuvrability by Tesco has drawn praise from business analysts – Citigroup’s David McCarthy acknowledges Tesco’s capacity to “appeal to all segments of the market” [‘Tesco: Supermarket Superpower’, (Hannah Liptrot), 03-Jun-2005, www.bbc.com]. It has also been (reluctantly) commended by a critic of the grocery Goliath for its “clinical efficiency with which it carries out its business plan” [Andrew Simms, Tescopoly: How One Shop Came Out on Top and Why it Matters, (2007)].
Tesco Malaysia
Internationalising TescoInevitably, growth and profitability at home meant external expansion for Tesco, a move towards globalisation. The company acquired various overseas market footholds with majority stake holdings in established Turkish supermarket chain Kipar and in Polish Leader Price wspanialy-rynki (supermarkets), among others. The overseas results however have tended to fall well short of Tesco’s stellar domestic performance. A 2006 move into the US market with the Fresh & Easy chain was unsuccessful, resulting in a £1.2B loss and in 2013 Tesco completed their pull-out from North America [‘Wikipedia’, op.cit.].
Inverness high street
Too big, too damaging?The phenomenal retail success of Tesco ⌖ is encapsulated by the popular phrase in Britain, “£1 in every seven went into a Tesco till!” Inverness in the Scotland Highlands (known locally as ‘Tesco Town’) personifies the dominance of Tesco – 50p in every £1 spent on food, it is calculated, is derived from one of Tesco’s three shops in the northern city [Liptrot, loc.cit.; ‘The supermarket that ate a town’, (Lorna Martin), The Guardian, 01-Jan-2006, www.theguardian.com]. Other cities and towns across the UK share Inverness’ concerns of urban domination by the retailer…Seaton in Devon’s east is staring at the prospect of becoming another “Tesco Town”. Tesco has flagged plans to build a superstore, hundreds of ‘Tesco’ homes and a hotel in the small town, triggering determined local opposition to the scheme [‘This town has been sold to Tesco’, (Anna Minton), The Guardian, 05-May-2010, www.theguardian.com].
Ultimately, it is Tesco’s size that courts the company’s most strident criticism and opposition. Increasingly, the sheer size and scale of the supermarket empire gives it a disproportionate degree of bargaining power with manufacturers. Since 2000 the British authorities have sought to address the uncompetitive nature of the status quo, a code of practice was enacted in that year to try to curb Tesco’s (and other large retail players’) market dominance to the serious detriment of small traders in the UK (the National Consumer Council has described Tesco as “the Marmite of British business”). Interestingly, consumer surveys in the UK point to the consumer public’s “Janus-headed” take on Tesco, it ranks as both the “most trusted” and the “least trusted” of companies in the country! [David Gray (Analyst, Planet Retail), quoted in Winterman, op.cit.]. The recent Tesco takeover of Booker Wholesale Group (2017/18) for £3.7B, given the green light by the UK’s competition watchdog (CMA), has however provoked widespread disquiet within those in British society concerned at what they see as yet another monopolistic move for the retail behemoth [‘Tesco’s £3.7bn Booker takeover waved through by competition regular’, (A Armstrong & J Torrance), The Telegraph (UK), 20-Dec-2017,www.telegraph.co.uk].
Ripples in the Tesco oceanThe hostility of small retailers at Tesco’s strangulation of competition in the supermarket field❅ is not the only discordant note in Tesco’s recent history. Its high public profile has prompted at least two attempts at extortion using the threat of letter bombs…in 2000-2001 an individual tried to extort £5M from the supermarket giant (he was subsequently caught and jailed for 16 years); later a former tax inspector demanding £1M from Tesco, tried the same method (also apprehended and imprisoned). Tesco has tended to court controversy on occasions, eg, quantities of horsemeat were discovered in burgers and spaghetti sold by Tesco, and of course almost a by-product of runaway commercial success, there has been a slew of charges over the years that Tesco was engaging in tax avoidance schemes, tax minimisation, etc. Tesco was heavily criticised by the CEO of UNICEF UK in 2009 for appropriating the children’s charity’s slogan “Change for Good” and crassly using it for commercial advantage in company advertising [‘Unicef accuses Tesco of misusing charity slogan’, (Marie O’Halloran), The Irish Times, 25-Jul-2009, www.irishtimes.com]. As well there have been isolated incidences of individual Tesco shops discriminating against blind people (especially barring entry) [‘Tesco’, Wikipedia, op.cit.]. Tesco’s corporate response after such periodical outbreaks of bad PR has been to launch charm offensives aimed at the public (such as its “Good neighbour” policy in the 2000s) [Simms, loc,cit.].
Until very recently Tesco has experienced seemingly unstoppable success. However things troughed for the retailer during financial years 2013-14 and 2014-15, in the latter year Tesco lost £6.4B, its worse fiscal performance in 20 years! [Clark & Chan, op.cit.]. Since then the supermarket chain (boosted by acquiring the Booker cash and carry group) has to no one’s surprise bounced back, in 2018 recording its strongest growth in seven years (UK and Irish sales rose 3.5%). It has also just introduced Jack’s stores which it hopes will wrest back losses in the discount store market from front runners, German supermarket heavyweights, Aldi and Lidl [‘Tesco posts highest growth in seven years’, (Sarah Butler), The Guardian 15-Jun-2018, www.theguardian.com].
PostScript: Tesco to (super)market leaderWhat makes Tesco a cut above its rivals? Enormity of size and utter ruthlessness and aggression in business dealings has been a factor, but according to some observers, the key to its success has been its ability to read customer behaviour: going way back Tesco has been meticulous about collecting raw data on what consumers were buying, invaluable information for anticipating future patterns, staying ahead of the curve! Tesco introduced loyalty schemes, personalised discounts and rewards for its customers, above all the Tesco Clubcard (“Every little helps”) – the card was an immediate hit, within a year of its debut (1995), Clubcard holders were spending 28% more at its stores and Tesco was number 1 with a bullet in the rankings of British grocers [Winterman, loc.cit; ‘The card up their sleeve’, The Guardian 19-Jul-2003, www.theguardian.com].
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✱ including stores in Ireland, Poland, Hungary, the Czech Republic, Slovakia, Malaysia, India, South Korea, Japan, Taiwan and Thailand (and previously in the US)
✥ his bottom-of-the rung beginnings in the world of retail merchandise was as a barrow boy
✪ to which he added an internal one, actually a motivational pitch for sales staff, “YCDBSOYA” (You Can’t Do Business Sitting On Your Arse”) [‘Shirley Porter: Rich, flashy and corrupt with it. She’s nothing like a Dame’, (Sean O’Grady), The Independent, 16-Dec-2001,www.theindependent.co.uk]
⌖ fifth biggest grocery chain in the world, biggest UK retailer by sales, biggest UK employer (>330,000 staff) [Winterman, loc.cit.]
❅ for instance, the Office of Fair Trading investigated the company for allegedly forming a cartel of supermarkets (with Safeway, Asda, Morrisons and Sainsbury’s) to fix the price of dairy products
Before the principals of Marks and Spencer teamed up, the entity was singular, just the one aspiring retailer, Michael Marks, and of material necessity he started very small. A late 19th century immigrant refugee from the Russian Empire’s Byelorussian region, Marks launched his first penny bazaar stall in Central Leeds’ Kirkgate Market with start-up funding amounting to one £5 note – which he had borrowed! Marks met his future partner at this time, Thomas Spencer, and eventually went into business with him after the latter, a Yorkshire cashier, invested £300 for a half-share in what became Marks and Spencer✱.
Early days: Establishing a chain of “penny bazaars”Michael Marks kicked off with a very basic business model: his initial stall in Leeds was a “one penny stall”, hence the business’ motto, “Don’t ask the price, its a penny”⊡. The early stall commodities focused on household goods, haberdashery, toys and a sheet-music business (note the early spelling of the store name with an errant plural ‘s’ in ‘Spencer’ in the photo at left). Marks (the more dynamic and “hands-on” of the partners) immediately set about expanding the business, first up establishing a shop in Manchester. By 1894 Marks and Spencer had graduated to a permanent stall in Leeds’ covered market (in 1904 they opened their first Leeds shop) and in 1901 concentrated its open market operation in Birkenhead on Merseyside.
Forging a regional retail identityThe two partners initially focussed locally, concentrating on Yorkshire and Lancashire, a new warehouse in Manchester (1897) became the early centre of the M&S business empire which numbered 36 branches by that time…the firm accumulated stalls (later on, shops) in towns and cities across the North of England (Manchester, Liverpool, Hull, Sheffield, Middlesbrough and Sunderland) as well as further south (Birmingham, Bristol, Cardiff, Swansea, etc) [‘The History of Marks and Spencer’, (h2g2, 2008/2012), www.h2g2.com].
SpencerMarks
By the early 1900s Marks and Spencer was starting to yield a very tidy surplus, becoming a limited company in 1903. At this juncture Thomas Spencer decided to cash in and retire from the partnership with a nice “nest egg” of £15,000 (for his initial outlay of £300) [‘Thomas Spencer (Marks and Spencer)’, Wikipedia, http://en.m.wikipedia.org]. Sadly for both Spencer and Marks, neither got to enjoy their monetary success long – Spencer died in 1905, followed by Marks in 1907. Nonetheless the prestigious company name has long outlived the two founding principals, thriving into the 21st century.
The end of “British-only” and “home-brand only”In the early 20th century M&S, entering into long-term relationships with British manufacturers, emphasised a policy of selling only British-manufactured goods, clothes and food were sold under the famous “St Michael” brand (named after founder Michael Marks). The fluctuating commercial fortunes of the company in the 1990s led to M&S relenting somewhat on this policy.
Textiles and foodBy the Twenties M&S had moved into the sale of textiles in a big way (launching its own laboratories to commercially produce new fabrics for the British market). In 1931 it added food to its portfolio of products…M&S’s own food technology department (from 1948) allowed it to offer chilled poultry to customers, instead of the hitherto frozen or pre-cooked options (courtesy of a new technology it called “cold chain distribution”) [‘What 130 years of M&S history can teach us about innovation”, (Hannah Jenkinson, 2018), www.about.futurelearn.com].
By the 1960s these two commodities, textiles and food, were firmly ensconced as the staples of Marks and Spencer. M&S were forerunners in introducing retail practices that enhanced customer satisfaction, such as the “money-back, no questions asked, no time limit” policy.
Marble Arch – M&S flagship store⬆
In 1930 Marks and Spencer established itself in the United Kingdom’s financial capital, opening a mega-sized London store at 458 Oxford Street, W1. The Marble Arch store which was to become the company’s flagship store, would go on to compete with those other leading retailers of quality merchandise already with abase in Oxford Street, Selfridge’s and John Lewis’. Marble Arch wasn’t in fact M&S’s first retail outlet in London, that honour went to the one in nearby Edgware Road (which is actually closer to the Marble Arch monument than the Marble Arch M&S!). The Edgware Road store began as a penny bazaar in 1912 with additional floors added in the 1920s. During World War II the building was damaged by German incendiary bombs (as was Marble Arch tube station in an earlier Nazi air raid). In 1959 the original store at Nº228 Edgware Road was closed and replaced by a new, much bigger store at 258-264 Edgware which opened just six days later [‘The History of Marks & Spencer Edgware Road’, (Jan. 2017), www.marble-arch.london].
Nº228 Edgware (Source: M&S Co Archive) ⬇
M&S shift of strategy in an increasingly volatile retail market At the turn of the 21st century Marks and Spencer’s prospects appeared fairly sanguine…in 1998 it became the first British retailer to achieve a pre-tax profit of over £1B.
But in the first decade of this century, M&S, sensing the need to compete for more of the market, made some seismicchanges. The standard–bearer St Michael’s brand was dropped, other longtime lines were rebranded. The company moved away from its emphasis on “British quality goods”, starting to sell big-name grocery lines like Marmite, Kellogg’s Corn Flakes and KitKats in its stores [‘Marks and Spencer to start selling top brands’, (G Hiscott), The Mirror (UK), 04-Nov-2009, www.mirror.co.uk] (previously it had concentrated on ‘luxury’ food products exclusively). This marks the recognition by Marks and Spencer that the falling trend of clothing sales needed to be heavily supplemented by popular food items.
Marks and Spencer (colloquially and affectionately known on the street as “Marks and Sparks”) as at April 2017 could list a total of 959 operating stores across the UK✣, 615 of which traded in food only (the “Simply Food” label), evidence of how food products had come to prop up the other traditional areas of the business. Future prospects for the major British retailer remain somewhat nebulous after the company signalled in 2018 its intent to close around 100 M&S stores in the country by 2022. Retail finance watchers have also questioned, with such a reliance on food items, whether M&S can ultimately match it with the UK’s food and groceries powerhouse Tesco [‘M&S online food delivery service will be no piece of cake’, Robert Plummer, BBC News, 28-Apr-2017, www.bbc.com]. Still, Marks and Spencer remains in majority British hands (unlike its rival heavyweights Harrods and Selfridges).
⬆ Commemorative M&S clock in Leeds market
━━━──━━━━──━━━━──━━━━──━━━━──━━━━──━━━✱ the foundation date for the company is traditionally given as 1884, however the exact date the partnership began between Marks and Spencer seems conjectural – other candidates are from 1894 (the Leeds permanent stall) or from 1901 (the Birkenhead market)⊡ product inexpensiveness was not to stay the M&S catch cry – by the late 1920s Simon Marks (the founder’s son who had assumed the reins) placed a 5/- limit on items. Long before this M&S had made the store focus one of quality over cheapness✣ plus over 200 overseas stores in at least 40 countries
The path taken by John Lewis in scaling the heights of retail commerce was typical of many embryonic and aspiring owner-drapers in mid-Victorian Britain. Somerset born and raised, Lewis started his first modest shop in Nº132 (later re-numbered) Oxford Street, London, in 1864 (taking the sum of 16s & 4d on opening day). His first twenty years in business for himself were far from glamorous, a period dominated by hard and dreary ‘yakka’ and slow piecemeal accumulation and consolidation.
The tortoise approach – slow and steady
Lewis took a conservative, uncomplicated (“keep it simple”) approach to retailing and only slowly moved his lines from silks, woollens and cotton fabrics to dress fabrics and clothing and later to furnishing fabrics and household supplies like China and ironmongery (but never food!). His philosophy was sell cheap and no ads (for nearly a century the John Lewis company continued a practice of minimal advertising!)✱. Unsurprisingly for a man described as “a Victorian curmudgeon” [‘John Lewis (1836-1928)’, Geoffrey Tweedale, Oxford Dictionary of National Biography, 06-Jan-2011, www.oxfordnb.com], his management style was rigidly autocratic, he often had abysmally poor relations with his staff and was prone to effecting arbitrary and sometimes wholesale dismissals. In 1920 Lewis’ “pig-headedness” and anti-union stance triggered deleterious industrial conflict…in 1920 the unaddressed grievances of Lewis’ shop-girls led to a strike by 400 staff. Lewis simply sacked the strikers and replaced them, but his arbitrary action brought him discredit and caused commercial ruptures adversely affected the company’s competitiveness vis-à-vis its retailing rivals in the long-term. ‘How John Lewis was the original store wars: As the retail empire celebrates 150 years, we tell its fascinating story’, (Brian Viner), The Daily Mail (UK),, 04-Jul-2014, www.dailymail.co.uk]
ef=”http://www.7dayadventurer.com/wp-content/uploads/2018/11/image-1.jpg”> Flagship store 1939 (Source: John Lewis Memory)[/cap
Lewis adopted an habitually “penny-pinching” stance when it came to running the store’s finances. In this he was the diametrically opposite of his Selfridges contemporary, the ostentatious, big spending, big advertising Harry Gordon Selfridge. In the eyes of Lewis, Selfridge must have seemed absolutely criminally profligate! Nonetheless Lewis did earn “brownie points” with London consumers for his straight dealing and commitment to the purveyance of quality goods, and profits grew accordingly. Sales for the ‘John Lewis’ stores rose from an underwhelming £25,000 in 1870 to a commendable £921,000 in 1921.
http://www.7dayadventurer.com/wp-content/uploads/2018/11/image-2.jpg”> Peter Jones[/caption
Another instance of Lewis’s circumspect approach was his reluctance to expand the business. It was not until 1906 that he made a move in this direction, purchasing the ailing Peter Jones store in Chelsea after the death of the store’s original Welsh owner✧. During his long lifetime John Lewis made no further expansionary attempts. The company during this period was clearly hamstrung by a lack of dynamic vision under its founder – losing vital retail ground to the likes of Whiteleys and Owen Owen [Tweedale, loc.cit.].
Father v son
Lewis’s innate caution also showed itself in his hesitancy in passing even a portion of control of the firm over to his sons, especially his eldest son John Spedan Lewis. When Lewis’s sons came of age, he gave them a limited role only…Spedan (as he was universally called) was put in charge of the newly acquired Peter Jones store (presumably to keep him from interfering with the central operation of the business). Spedan increasingly clashed with Lewis Senior over their fundamentally different approaches to business, with Spedan in charge of Peter Jones and JL Senior holding sway in Oxford Street HQs, relations between father and son deteriorated alarmingly (characterised in some quarters as equating to intra-family “store wars”) [Viner, loc.cit].
After the founder’s death in 1928 Spedan was free to fully implement his more progressive management ideas – in the area of staff relations these were often light years away from his father’s outmoded views and intransigent bellicosity…once at the helm Lewis Junior started by cutting working hours and introduced tea-breaks for the staff…Spedan envisaged further, more radical, plans for modernising ‘John Lewis’ and propelling it forward in the Thirties.
Under Spedan’s watch – JLP up and away!
Spedan wasted no time in taking ‘John Lewis’ in a very different direction to his late father’s ultra-cautious, steady-as-it-goes approach. In 1929 he reformed the enterprise into a public limited company, John Lewis Partners (JLP). Staff were rebranded ‘partners’ and made shareholders in the firm. Spedan diversified and pursued an expansionary route that Lewis Senior had so long doggedly eschewed. Smaller, less profitable chains were acquired – from 1933 on Spedan widened the John Lewis Partnership dramatically, adding purchased stores for the first time outside of London – Nottingham, Weston Super-Mare, Portsmouth and Tyrrel, Southampton, etc. [‘The 1930’s; a period of growth’, (Johnathan Blanchford), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk]. One of JL Junior’s ideas was to create a chain of John Lewis hotels, and to supply these hotels he bought a chain of grocery shops, known as Waitrose, in the Thirties. Waitrose proved a spectacularly profitable acquisition for John Lewis’⊛. As of 2016 there were some 353 Waitrose supermarkets across the UK, collectively worth more than £1B (one of only five such successful food and drink brands in Britain) [‘Waitrose’, Wikipedia]http://en.m.wikipedia.org.
In the Forties John S Lewis bought up some of the failing Selfridge business concerns after the former high-flying company plummeted and Harry Selfridge was forced out to pasture and into retirement. Other (overseas) business moves into South African draperies however turned out to be unsuccessful ventures [‘John Lewis’, Wikipedia, http://en.m.wikipedia.org].
▼ Spedan Lewis
Although Spedan was less autocratic, and certainly less confrontational✣, than his father, he was no democrat when it came to running the John Lewis business empire. Some observers (including insiders), recognising an inherited family trait, saw Lewis Junior as a “my way or the highway” type of business leader. Recollections of some ex-staff and associates point at a Spedan inclination to public losses of temper and the arbitrary and unfair treatment of staff on occasions, with a suggestion of a peculiar bias against staff (including managers) with ginger hair [‘Memories of Spedan – not all sweetness and light’, (Margaret Cole), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk].
Today JLP remains an employee-owned British company (consistent with the “worker-cooperative” entity (the ‘Partnership’) as initiated by Spedan Lewis in 1929). According to the Sunday Times it is the third largest private UK company by sales – £3.78B revenue in 2017 [“The Sunday Times HSBC Top Track 100 league” (2016)]. As a retail operator JLP maintain its traditional market position as a chain of high-end✫ department stores⊡, competing with its historic, equally upscale rivals in the merchandising field, Harrods and Selfridges.
FN: the corporate colours of retailing
John Lewis’s store colours have traditionally been green and white – supposedly because Spedan Lewis wrote his memos exclusively in green ink (the auditor’s colour!) on white paper [Tweedale, loc.cit.]. Interestingly, green seems to be the preferred colour of successful London-based retailers…Selfridges’ salient business colour is also green, and both Harrod’s and Marks and Spencer’s traditional hues are green and gold.
2013: John Lewis presence in Westfield’s Shepherds Bush mall ∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸
✱ the John Lewis motto (dating from 1925) characteristically is “never knowingly undersold”
✧ the sale was the stuff of legend in London retailing – Lewis reportedly walked the distance from Oxford Street to the Sloane Square, Chelsea, Jones premises, with bank notes in his pocket to the value of £20,000 to complete the purchase in person. Today, Peter Jones is the ‘posher’ sibling of the John Lewis store
⊛ Waitrose is an upmarket grocer in line with the general emphasis of John Lewis merchandising
✣ JL Senior’s quarrelsome, confrontational nature was often fraught with consequences – a protracted turn-of-the-century legal dispute with Lord Howard, Baron de Walden, saw Lewis being sentenced to three weeks in gaol in 1903 for contempt of court [‘How John Lewis ended up in prison. A new century same old Mr Lewis’, (J Blanchford), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk]
✫ a monumental departure from the early days of JL Senior’s “sell cheap” strategy
⊡ currently around 30 JL stores in England, Scotland and Wales and concessions in the Republic of Ireland and Australia
“People will sit up and take notice of you if you will sit up and take notice of what makes them sit up and take notice.”~ HG Selfridge
⊹⊹⊹⊹⊹⊹⊹⊹⊹
Before I ever visited the UK I wasn’t at all familiar with Selfridges. I knew about Knightsbridge and Harrods and its preciously preserved pedigree all right…we’ve done that! My first time in London I was on a bus travelling (make that crawling) down Oxford Street heading towards the West End when I was enlightened as to the existence of the second-best known upmarket London department store. As the bus idled stationary I spotted a sign in front of a building that said ‘Selfridges’, my first thought, I remember, was “strange name!”…but when I think about it now I vaguely recall that I had previously heard the name Selfridges, but without inquiring further at the time I sort of formed the literal impression that it was a store as the name sounded that “sold fridges”, ie, a purveyor of domestic white goods! So when I did eventually get my beak inside the store’s doors at 400 Oxford Street I was surprised to see lines and lines of (pricey) fashion wear, shoes, accessories, skin care products, bags and more – but not one refrigerator in sight! (in its time it has apparently sold most everything!)
Even without visiting Selfridges’ flagship Oxford Street store, you may well be aware of it or of its US-born founder Harry Gordon Selfridge thanks to the recent ITV television series Mr Selfridge (first aired in 2013). The series was a period drama about the flamboyant, visionary retailer and the interactions that take place around him in his eponymous London department store✱.
A Marshall Field blueprint for LondonWisconsin-born Harry Gordon Selfridge initially earned his business ‘spurs’ working for Chicago department store Marshall Field & Company (right), this segued into him purchasing his own department store in Chicago. In hardly any time at all the mercurial Selfridge abruptly re-sold the business, making a quick profit and retired to play golf. In 1906 while holidaying in London, Selfridge sensed a new retail opening for his entrepreneurial talents in the British capital. For £400,000 he purchased land and surrounds for a novel custom-built, mega-department store in the then unfashionable, western end of Oxford Street [‘Harry Gordon Selfridge’, Wikipedia, http://en.m.wikipedia.org].
“The American Invasion of London”The London press was not initially warm to the notion of the American’s incursion into the world of London commerce. The City’s daily and drapery trade press described it as an “American Invasion of London” [Lawrence]. Selfridge’s loud in tone and bombastic approach to selling the project didn’t help in endearing him to the newspapers (described in some publications as being “aggressively big in scale”). Selfridge’s efforts to make the store a reality were driven by an unwavering vision: creating a “monumental retail emporium” was in his eyes the key to elevating “the business of a merchant to the Dignity of Science” (as he grandiosely put it). Selfridge believed to achieve that, he had to construct a gigantic “technologically advanced department store”, hence the massive amount of money, time and effort he put into the project [LAWRENCE, J. (1990). ‘Steel Frame Architecture versus the London Building Regulations: Selfridges, the Ritz, and American Technology’. Construction History, 6, 23-46. Retrieved from http://www.jstor.org/stable/41613676].A ground-breaking, landmark modern steel-framed buildingConstruction of the Selfridge store was something of an architectural coup in itself. It won praise in its day from British building journals for its innovative construction methods…built with steel frames and reinforced concrete allowing for much narrower than usual walls, the frames permitted a far greater window area, so very large plate-glass windows could be installed (12 of which were the largest sheets of plate-glass then in the world!) – making for much more interior natural light and brightness (designed by famed US architect Daniel Burnham and associates). Originally comprising a 250′ x 175′ site, Selfridge’s had nine Otis passenger and two service lifts and six staircases. 100 separate departments were spread out over eight floors. While the physical construction of the Oxford Street store took only 12 months, Selfridge had first to overcome London City Council’s raft of objections (unprecedented size of the commercial structure, fire danger, etc). Selfridge and his engineers’ lobbying of the LCC Committee eventually resulted in the passing of two local building acts – LCC (General Powers) Acts of 1908 and 1909 – necessary for the Oxford Street project to be completed [Lawrence, ibid.]☯.
Rigid building regulations weren’t Selfridge’s only impediment to making his dream store a reality. Half-way through the project funding became a pressing issue when his partner and main backer Sam Waring, frustrated by Harry’s “grandiose and reckless approach” to the venture (Selfridge had grievously underestimated the complications of the project), withdrew his financial backing. The economic downturn in London (and in the US) at the time made alternative sources of funding a very grim prospect, and disaster was only narrowly avoided when a new backer, millionaire tea tycoon John Musker stepped in to rescue Selfridge [Gayle Soucek, Mr Selfridge in Chicago: Marshall Field’s, the Windy City and the Making of a Merchant Prince, (2015)]. After the big opening Selfridge remembered to make sure the store’s product lines included everything to do with tea-making (teapots, cups and saucers, sugar bowls, etc) [‘Selfridges: 7 things you (probably) didn’t know about the department store’, (History Extra), www.historyextra.com].
Selfridge, customer-centred strategies ahead of the curveHarry’s approach to retailing was characteristically innovative on many fronts. Selfridge placed tremendous faith in advertising, the 1909 campaign leading up to the store’s opening cost a reported $500,000 in 1909 money [‘Selfridge Dies: Ripon Lad Who Jolted Empire’, The Milwaukee Sentinel, 9-May-1947 (online fiche)] (Britain’s biggest ever ad bill to that point) and he used it imaginatively together with ingenious publicity campaigns. Selfridge was the first retailer to make popular the idea of “shopping for pleasure”, rather than it being solely a functional task undertaken for necessity (as people conceived of it prior to Harry’s advent). In-store activities and arrangements often were original and novel (eg, displaying the monoplane used by aviator Louis Blériot in the first cross-English Channel flight at Selfridge’s (1909)✜). Another interest-generating feature in the store was Logie Baird’s televisionprototype shown on display in 1925.
Those specially designed wide windows were put to optimal use, Selfridge was the first to utilise window dressing where he could show off the latest fashions and utensils in open display [‘Selfridges 7 things’, loc.cit.]. The staff at Selfridge’s Oxford Street store (initially comprising 1,400 employees) were instructed to assist customers in their purchases, not to pester or use any “hard-sell” tactics on them⊟. Harry’s philosophy was “first get them in, then to keep them there. Thereafter they would buy” (Woodhead). One of Selfridge’s more forward-thinking moves was to locate the goods where they were visible and accessible to customers all around the store’s interior (a practice he devised while at Marshall Field’s in Chicago), rather than hiding them away from sight under counters (as had been the practice in most retail stores hitherto). He also introduced the concept of the “bargain basement” to retailing, a section where shoppers could find regularly discounted commodities [‘Innovation Lessons From The World’s First Customer Experience Pioneer — Infograph’, (Blake Morgan), Forbes Magazine, 26-Jun-2017, www.forbes.com ; Lindy Woodhead, Shopping, Seduction & Mr Selfridge, (2012)].
A visceral, holistic experienceSelfridge’s vision was to make the department store more than just a shop where you went to buy goods, he continued to introduce new features to Selfridges…elegant (moderately priced) restaurants, a library, reading and writing rooms and special reception rooms for French, American and ‘Colonial’ clientele. There were cookery demonstrations in the kitchenware section. All this marked a radical departure from the practices of other department stores which employed floorwalkers to ‘shoo’ people out of the store who were just hanging around and not actively engaged in buying an item! Even the store’s roof was put to productive if curious usage (a shooting range for an all-girl gun club as well as an ice rink✧) [Lawrence, loc.cit.].
The female shopper as an identified demographicSelfridge saw the role of the department store in macrocosmic terms – “the store should be a social centre, not merely a place for shopping”. Unlike the conservative establishment of the day and much of the mainstream, Selfridge endorsed the Suffragette Movement…the new store was (in part) “dedicated to woman’s service”. In a 1913 advertisement Selfridge described the store thus: Selfridge and Co: The Modern Woman’s Club-Store” [‘Suffrage Stories/Campaigning for the Vote: Selfridge’s and Suffragettes’, Woman and her Sphere, (Elizabeth Crawford), 16-May-2013,www.womanandhersphere.com; ‘Selfridge Lovers: The Secret behind our house’, www.selfridge.com]. Astute businessman that he was, Harry popularised shopping as a leisure activity specifically for women…to make it a more welcoming and conducive place for them to spend time (and money!), he displayed freshly scented floral arrangements and had open vistas in the store, he employed musicians to perform and added beauty and hair salons (Paris-inspired) and art galleries. And he introduced public restrooms for women to the store (the first time ever done!)❅[Forbes, loc.cit.].
The H.G.S. leadership style As retail magnate go, Selfridge went against the grain for his day by not being an authoritarian business leader. He was temperamentally inclined towards fairness with regard to remuneration, increasing the wages of his staff, elevating them above “wage slavery”, treating them as employees as opposed to ‘servants’ (cf. Harrods) [ibid.]…not to overstate it, Selfridges shop floor staff were still exposed to long, long hours of drudgery but they were paid a livable wage for their arduous labours. A sample of the quotes attributed to Selfridge reflect his anti-dictatorship approach to business and interpersonal relations: “The boss drives his men, the leader coaches them” ;“The boss depends on authority, the leader on good will” ; “The boss says ‘I’, the leader says ‘We'” ; “The boss inspires fear, the leader inspires enthusiasm” ; “The boss fixes the blame for the breakdown, the leader fixes the breakdown” ; etc.✥ [‘Harry Gordon Selfridge’, Wikipedia, op.cit.]
Tower follySelfridge’s thrived, prospered and grew after the Great War (the store size doubled). Things didn’t always go the Wisconsin-born retail magnate’s way however…a couple of commercial reversals suffered by Harry during the decade concerned his plans for erecting a massive tower from the building which was rejected by the LCC Committee because of excessive height, and possibly also because it would have vied with the iconic St Paul’s Cathedral for attention (a fortunate outcome perhaps as the model drawings for the tower suggest the result would have been an incongruous coupling of architectural forms and a hideous eyesore!) [Lawrence, op.cit.]. The other setback was Selfridge’s proposal for a tunnel between the store and the nearest tube station, Bond Street, the plan ultimately got kiboshed!
Harry on the downslideBy the late Twenties Selfridge & Co was at the top of its game, the name was synonym with quality merchandise and Selfridge took its place as a stellar institution on the London commercial scene. Some time after the onset of the Great Depression things started to turn badly pear-shaped for Selfridge, as for businessmen as a whole. Harry Selfridge contributed to his own decline however by persisting in his flamboyantly extravagant spending. He squandered money on his womanising ways for which he earned a certain notoriety, for instance, $4M was wasted on his dalliances and affairs such as with the Dolly Sisters (Hungarian jazz dancers) – a part of his story that the TV series was quick to focus on) [Forbes, loc.cit.. By 1940 the company owed £250,000 in taxes and Selfridge was deep in debt to the bank, forcing him to sell out and retire from the business (retaining a modest annual consultancy stipend) [‘Harry Gordon Selfridge’, Wikipedia, op.cit.; Milwaukee Sentinel, op.cit]
Selfridges’ Birmingham Bullring store ▼Selfridges post H.G.S.Selfridge & Co’s reversal of fortunes signalled a move from its circling competitors…rival department chain John Lewis & Partners acquired some of Selfridges’ provincial stores in the Forties, which was a preliminary move to John Lewis’ eventual takeover of the flagship Oxford Street store (1951). In turn John Lewis was itself acquired by the Sears Group in 1965. Its current owners, the Anglo-Canadian Galen Weston company bought Selfridges in 2003 for a reported £598M. Today the store name ‘Selfridges’ survives on the Oxford Street building, and in the three other regional branches in the counties (Trafford Centre and Exchange Square, both in Manchester, and the Bullring in Birmingham).
FN: Harry Selfridge from when he first arrived was perceived widely as a Trans-Atlantic “blow-in”, splashing his (and his wife’s) money around, vociferously determined to show the established home-grown retailers what a ‘superior’ type of modern department store looked like. Selfridge displayed a talent for polarising opinion…to his dazzled admirers he was “the Earl of Oxford Street”, the flashy Midwest American merchant was “as much a part of the sights as Big Ben” (as one columnist waxed lyrically), but to his detractors (including many of his competitors and much of the London press) he was merely a “vulgar American tradesman” or worse [Milwaukee Sentinel, loc.cit ; Woodhead, op.cit.].
PostScript: ‘Selfridges gets Sixties hipIn 1966, Selfridges, by now under Sears Holdings boss Charles Clore, recognised the youth market with a separate outlet for young women, Miss Selfridge (forming a link back to Harry Selfridge’s traditional focus on female customers). The new store in Duke Street signalled Selfridges’ wholesale embrace of the Sixties’ fashion revolution. Miss Selfridge used mannequins based on the straight line form of 1960s iconic model Twiggy and sold the latest in Mary Quant and Pierre Cardin fashions. In the early 2000s Miss Selfridge was acquired by the Arcadia Group [‘Selfridges 7 things’, op.cit.].
“The Queen of Time” AKA Ship of Commerce Statue ▼⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎⁎
✱ described as “Downton Abbey with tills” [” ‘Mr Selfridge’: It’s ‘Downton Abbey’ with tills…”, The Telegraph, (Daphne Lockyer), 15-Dec-2012, www.telegraph.co.uk]☯ the impressive Selfridge facade, personifying power and permanence, was later complimented by the addition of a decorative Art-Deco motif – the ‘Queen of Time riding her Ship of Commerce’ (clock-statue by Gilbert Bayes)✜ around 12,000 visited the store to view the displayed history making French monoplane…no doubt plenty of these visitors also made spontaneous purchases while they were in Selfridge’s premises [Forbes, op.cit.]⊟ Selfridge possibly was quite consciously also trying to make his front-line staff as unlike Harrods’ staff – who had a reputation for ‘snootiness’ and stiff formality – as he could! [Milwaukee Sentinel, loc.cit]✧ recently the roof was again used in idiosyncratic fashion, by being turned into a “boat lake” and a “putt-putt” mini-golf course for customers❅ in return, when protesting suffragettes smashed shops windows in Oxford Street, Selfridge’s was one of the few left unscathed✥ other (very famous) attributed ‘Selfridgeisms’ are “the customer is always right” and “only xx shopping days till Christmas”
If you mention the name Harrods today to any self-respecting ‘shopaholic’, don’t be surprised to see them salivate at the prospect of exploring a shoppers’ paradise which boasts 330 different outlets – names such as Adidas by Stella McCartney, Armani, Christian Lacroix, Givency, Hugo Boss, Polo Ralph Lauren, R.M. Williams and Yves Saint Laurent all on the one site! It’s an appeal that has massive international traction too, visitors to London with just a minimal amount of shopping curiosity in their DNA will ink in a trip to the Knightsbridge SW3 store on their “must do” lists (even if only to pick out the least expensive souvenir gift they can find, or failing that the green and gold Harrods carrier bag!). But Harrods is more than a high street mega-store, it is an institution with staying power and expensive tastes – its intriguing backstory reaches nearly 170 years into the past to the early days of Victorian Britain.
Harrods was the brain-child of London draper Charles Henry Harrod…from the 1820s he had small drapery and grocery businesses in the East End but the salient year for the company’s future trajectory was 1849. In this year Harrod moved his business to Brompton Road (Knightsbridge), its present and ultimate location. Harrods’ mid-19th century relocation to Knightsbridge was strategic in its timing and advantageous to the company. Knightsbridge and Western London were areas just being opened up to development at the time. Most opportune, the Great Exhibition of 1851 was held in nearby Hyde Park and Henry Harrod was able to capitalise on its drawing power to increase the store’s trade.After some formative years on Brompton Road, the Harrods business bounded ahead especially after the founder’s son Charles Digby Harrod succeeded him in the 1860s. Under the energy and drive of Digby’s leadership Harrod expanded in piecemeal manner, accumulating neighbouring properties and land through astute purchases. A fire in 1883 razed Harrods to the ground, a calamity which Digby turned into an opportunity to rebuild the department store on a larger scale. Architecturally, the new Harrods was palatial in style with a terracotta tile facade decorated with cherubs and swirling Art Nouveau windows and a Baroque-style dome [‘Harrods’, (Civitatis London),www.londonbreak.com].
Control of Harrods stayed in the Harrod family until 1894✱ when Richard Burbridge took over the running of the department store. Among Burbridge’s store innovations was the introduction of the first escalator in England in 1898. The escalator caused quite a stir among patrons, shock and horror even for some perhaps…so much so that precautionary measures were taken by staff, Harrods shopmen would perch themselves at the top of the escalator ready with brandy and smelling salts at hand for any customers who found the strange and novel experience of riding on the “moving staircase” (as it was oft called in the early days) too much! [‘Harrods’, Wikipedia, http://en.m.wikipedia.org].
It was under Burbridge’s reign that Harrods’ profitability escalated⌻and the business established its brand and retail style…high-end quality, expensive products but the best quality and value for money. And it was during this time that Harrods gained a reputation for the purveyance of goods and merchandise that was not easily obtainable elsewhere, hence the firm’s motto, Omnia Omnibus Ubique (Latin for “All things for all people, everywhere”). The other constant in the Harrods ethos and credo is service, the retailer has always prided itself on the advice and assistance given to customers, as the tag-line on Harrods’ home page seeks to stress: “Enjoy exemplary personal service and an experience that can only be found at Harrods.”
Pets are us!That penchant for providing the unusual and unexpected led Harrods to diversify into the pet supply business in 1917, but not just offering the commonplace, suburban garden-variety “moggies and mutts”. Harrods’ Pet Kingdom went for the real exotica in animals. For those exclusive customers who could afford it, Harrods acquired tigers, panthers, camels and the like. Who wanted such an exotic pet? In the main customers tended to be politicians, actors and celebrities. Noël Coward was the recipient of just such a gift, a friend purchasing an alligator for the playwright/composer/director/ actor/singer. Ronald Reagan, when running for California governor in the 1960s, contacted the store seeking a baby elephant (elephants being the symbol and mascot of the US Republican Party). Harrods’ legend has it that the staff assistant who took the call from America, replied to the future US president’s enquiry with the words, “Would that be African or Indian, sir?”✥ [‘Harrods’ pet department to shut after nearly 100 years’, (Pat Sawer), The Telegraph, 10-Jan-2014, www.telegraph.co.uk]
Pet shop boysBy far the most celebrated of Harrod pet stories is that of Christian the lion cub. Spotted by two young Australian backpackers in a cage in Harrods in 1969, the three-month-old lion ended up back in the boys’ trendy Chelsea flat. A year later through the agency of actors Virginia McKenna and Bill Travers, the rapidly growing lion was repatriated to Africa and set free by wildlife conservationist George Adamson in Kenya. Most people are aware of the story as a result of the video made documenting the two backpackers’ later reunion with Christian in Kenya (see also Footnote).
The extraordinary state of affairs that created Harrod’s zoo of wild animals could not last for ever. The passing of the Endangered Species Act in 1976 signified the end of this trade. After that, Harrods’ Pet Kingdom had to satisfy itself with selling more conventional household pets, cats, dogs, hamsters, guinea pigs and the like. In 2014 Harrods’ management pulled the plug altogether on the pet shop, the space was given over to an expansion of the store’s womenswear department [Sawer].
Harrods of Manchester and Buenos AiresAfter WWI Harrods entered an expansion period, acquiring other smaller retail outlets, most notably Kendals in (Deansgate) Manchester. After the takeover the name was changed to Harrods Manchester, but this met with strong disapproval from Mancunians, both staff and customers, and the name reverted to Kendals Milne in the 1920s [‘Kendals name dropped forever’, (David Ottewell), Manchester Evening News, 28-Oct-2005,www.manchestereveningnews.co.uk. Harrods no longer own Kendals, in 1958 ownership passed to department chain House of Fraser, and as of 2018, is owned by Sports Direct. Before the venture in Manchester, Harrods opened its one and only overseas outlet in Buenos Aires (1914). The Downtown BA store stayed in Harrods’ hands only until 1922 when it was bought by Argentinian retailers. Harrods Buenos Aires continues to operate independently under that name but a legal injunction prevents it from using the name ‘Harrods’ outside of Argentina [‘Harrods Buenos Aires’, Wikipedia, http://en.m.wikipedia.org].
Ownership passes offshoreAs the 20th century progressed, Harrods’ rising prestige and continued growth made it a desirable retail takeover target (despite a terrorist attack by the IRA outside the store in 1983 which killed six bystanders). In 1985 Egyptian shipping magnate Mohamed Al Fayed and his brothers gained control of the House of Fraser group which included Harrods (at a cost of £615M). Under Fayed Harrods’ growth proceeded and added his own personal touches to the store, nothing more personifies that than the (some would say) garishly lavish and cluttered Egyptian Hall✫. An even more personal touch is Fayed’s staircase memorial to his son Dodi and (Lady) Di (replete with a bronze statue of the couple with symbolic seagull). In 2010 Fayed sold Harrods to another foreign concern, Qatar Holdings (ie, the Qatari Royal family) for £1.5bn, citing as his reason ‘frustrations’ over government delays re a Harrods “pension scheme” [Mohamed Al Fayed reveals why he sold Harrods’, (Andy Bloxham), The Telegraph, 27-May-2010, www.telegraph.co.uk].
The Harrods dress codeIn 1989 Harrods introduced a dress code to the store (in Harrodspeak its called “Visitors’ guidelines”). The code specifies that the following are not permitted within the store – beachwear, Bermuda shorts, ripped jeans, bare mid-rifts or revealing clothing, uniforms of any description, thongs or flip-flops, cycling gear✦. In addition no visible tattoos are allowed, nor are clothing which have lettering with “objectionable language or design” (not exactly a formula to maximise Harrod’s sales potential with Gen-X’ers and Gen-Y’ers!). Backpacks must be carried in front of visitors, not worn on the shoulders⋇. Harrods a beacon of good deportment and presentation seeking to keep out the “riff-raff”? Wanting its patrons to all look like posh, debonair types? Snobbish elitism aside, management’s decision was arguably a rational response (albeit with a degree of overkill!) to the views expressed by Harrods’ core clientele (traditionally 60 per cent of Harrods customers live within three miles of the shop in the so-called Tiara Triangle of affluent Knightsbridge and Kensington). Harrods’ feedback from local clients, its rich ‘sophisticates’, was that they were increasingly unhappy shopping side-by-side with people who were dressed scruffily or in bad taste [‘Don’t come as you are: There is only Harrods dress code’, (Louise Levene), The Independent, 18-Jul-1994, www.independent.co.uk].The Chinese are comingBy 2017 the basis of Harrods’ profitability had shifted – internationally. The firm’s efforts in courting the growing Chinese Middle class over the previous decade had paid off (managing director Michael Ward has been making four trips a year to China over that period to develop the budding relationship). Chinese shoppers, with their focus firmly on high-end fashion and accessories, were now outspending British ones in this most English of department stores, Ward disclosed that the Chinese made more than £200M worth of purchases at Harrods in 2016 [‘Chinese customers heralded as Harrods’ biggest spenders’, (Bo Leung), China Daily, 28-Nov-2017, www.chinadaily.com.cn].
Safe in Harrods’ handsA less well-known service that Harrods has provided for over 120 years is located at basement level in the store. Since 1897 the mega-rich of different nationalities (foreign royals, VIPs, movie stars, etc) have entrusted Harrods with their money and their assets – works of art, antiques, collectibles and other valuables. These are held in secure safe deposit boxes and strong rooms within the Harrods building [‘What You Don’t Know About Harrods (But the Rich and Famous Do)’, (Michael Levin), Huffington Post, 22-Feb-2017, www.huffingtonpost.com].
Harrods as you see it today in 2018 is five million square feet of department store, eight levels x 330 individual departments and 5,000 staff, with additional outlets in Greater London (airport stores at Heathrow and Gatwick). As well as the Egyptian Hall, there is a Crystal Room, a large and showy Food Hall (the Arts and Crafts tilework is a standout), a Wellness Clinic, 28 separate dining and drinking establishments, interior decorators, a travel shop, Waterstone’s book shop et al, Bespoke tailoring, a Floral Couturier, a Toy Concierge (who will help you source out the world’s most expensive toys – of course!) and much, much more.
Footnote: Harrod’s Pet Exotica was in synch with a prevailing vibe in European culture, especially in the interwar period. It was a vogue for the fashionable and chic of society (actors, artists, musical performers, etc) to have (and be seen in public having) exotic animals, singer Josephine Baker had her pet cheetah, artist Frida Kahlo had a granizo (a fawn), actress June Havoc a toucan, artist Salvador Dali an ocelot. Even later, after the war, the exotic pet was a fashion accessory de jour for the famous. Sometimes the pairings were undisguisedly and unashamedly publicity-driven, eg, Salvador Dali walking an anteater on a lease in a London subway. Harrods itself has been known to resort to blatant PR stunts involving animals to promote itself, eg, the pop group ‘The Small Faces’ were photographed in the 1960s walking baby crocodiles in Belgravia borrowed from nearby Harrods! Recently, Harrods promoted its reputation for extravagance by using a live cobra to ‘guard’ a display of ruby and diamond-encrusted sandals valued at £62,000 [‘Eleven secrets of Harrods’, (Laura Reynolds – The Londonist), 12-Apr-2016, www.londonist.com]Retailer with a shady past: CH Harrod ▲
PostScript: A skeleton in the merchant’s cupboardOne aspect of the Harrods story that doesn’t get a mention whenever Harrods promotes its long tradition of luxury merchandising and commodity versatility, concerns a dark chapter in the founder’s early career. In 1836 (when the business was still at Cable Street, Whitechapel) Charles Henry Harrod was convicted of receiving stolen goods (and of trying to bribe a policeman) and sentenced to transportation to Van Dieman’s Land (Tasmania) for seven years. Fortunately for Harrod, the court defence presented by his lawyer and a raft of supporting character references got the grocer’s sentence commuted to one year in Millbank Prison. Had Harrod been transported to the Tasmanian penal colony, the illustrious retail history of Harrods would never have come to fruition [(Robin Harrod) ‘A brief history of Harrods’, BBC History Magazine, 23-Mar-2017, www.historyextra.com].
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✱ although in 1889 Harrods became a public company, and remained so until Mohamed Al Fayed’s takeover in 1985 when it reverted to being a private company
⌻ from when Burbridge became managing director in 1894 to 1916, Harrods’ profits increased from £16,000 to in excess of £200,000 [‘Richard Burbridge’, Wikipedia, http://en.m.wikipedia.org]
✥ this anecdote has a “urban myth” feel to it…and it verges on the realm of apocrypha when you take into account the similar sounding variations on it that were doing the rounds, eg, in the early days of Harrod’s Pet Kingdom it was said that a lady phoned the store asking for a camel, to which the assistant also in this case replied, “Would that be one hump or two, madam?” Slightly surprising not to hear Elton John’s name among the celebrity owners of Harrods’ exotic animals, it sounds like it would have been Reggie’s kind of thing to do in the Seventies
✫ to get the full effect of the “full-on” Egyptian motifs you are supposed to ascend the Egyptian escalator and take in the view from there – which includes faux-hieroglyphics, a sphinx with the head of Mo Fayad(?!) and a zodiac-design ‘night’ ceiling. While you are in the vicinity you can hop off the escalator on the first floor to avail yourself of the ultra-swish “luxury washrooms”, in the presence of an attentive attendant ready to pass you an unused hand towel at the appropriate time
✦ among the famous to be barred entry on dress grounds include singers Kylie Minogue and Jason Donovan. Others excluded include a young woman with a Mohican haircut and a soldier in uniform
⋇ Harrods are a bit funny also about where exactly you can and can’t take photographs within the store
The first Levittown housing development on a former potato farm on New York’s Long Island (1947-1951) was seen as a ‘godsend’ by GIs returning from the war. Two-bedroom homes in the suburbs at a cost of only $6,990 with a minimal amount of money down (zilch down if you were a GI), seemed an opportunity too good to miss. The only catch was you had to be White as well as a veteran to get one! William Levitt’s planned housing development was intended for Caucasians only, restrictive covenants were inserted into sales contracts barring African-American families from membership of these new, model suburban communities.
Building comfortable White enclaves?
With Black veterans of WWII turned away from Levittown, Bill Levitt was forced to defend his exclusivist policy. Despite avowing (rather hollowly) that “as a Jew, I have no room in my heart for racial prejudice”, Levitt sought to justify his position on the grounds that a White-only community was best for business. He argued that if he sold “to one Negro family, 90 to 95 per cent of White customers would not want to buy into the community”. Levitt was clearly not prepared to be an agent of social change if it meant a diminution of business profitability…self-interestedly and rather lamely he protested that it was unreasonable to saddle one builder with “the entire risk and burden of a vast social experiment” (even though the particular “one builder” in this case had been recognised by Time magazine as one of the 100 most influential people in America) [‘When the Niggers Moved into Levittown’: Review of David Kushner’s Levittown: Two Families, One Tycoon, and the Fight for Civil Rights in America’s Legendary Suburb, Journal of Blacks in Higher Education, 63 (Spring 2009): 80–81; Schuyler, D. (2003), ‘Reflections on Levittown at Fifty’, Pennsylvania History: A Journal of Mid-Atlantic Studies, 70(1), 101-109]. The FHA (Federal Housing Administration) was complicit with Levitt and other developers in the perpetuation of the practice of segregation, despite its clear violation of federal housing laws [‘Levittown, New York’, Wikipedia, http://en.m.Wikipedia.org]. Little wonder then that African-Americans saw the housing market as tainted, a “symbol of racial inequality”✱.
ef=”http://www.7dayadventurer.com/wp-content/uploads/2018/10/image-22.jpg”> The Myers[/cap
Levitt received a phalanx of criticism for the racially restrictive clause⍍…the NAACP (National Committee for the Advancement of Colored People) and the ACLU (American Civil Rights Union) campaigned against it, a Committee to End Discrimination for formed to specifically take on the task of fighting housing segregation. In 1957 a Black family moved into one of the homes in Levittown Pennsylvania⌖. After Daisy and William Myers (and their children) arrived in the Dogwood Hollow section of the estate, they were subjected to ongoing harassment and intimidation by White bigots nightly outside their home. Some Levittowners called in “professional supremacists”, the Ku Klux Klan to coordinate the protest (jeering crowds milling on the front lawn, cross burnings, Confederate flags, rocks thrown through the Myers’ windows, petitions to force the family out). After the local police failed to protect the family, the protesting crowds were eventually ended only after intervention by state troopers✫ [‘White Riot in Response to Arrival of First African American Family in Levittown, PA’, www.historyengine.richmond.edu; ’60 years later, the Levittown shame that still lingers’, (Jerry Jonas), Bucks County Courier Times, 12-Aug-2017, www.buckscountycouriertimes.com].
Desegregation of Levittown
Levitt resisted the criticism and made his third mass-produced settlement, Willingboro/Levittown in New Jersey, another Whites only community (no Blacks but it did permit White ‘ethnics’ – Hispanics/Latinos and Jews). By 1960 Willingboro had its first African-American family residing there (by 1970 it was 11 per cent Black). Only in 1968, after the assassination of Martin Luther King, did Levitt come out and announce that Levittown housing developments would no longer be racially segregated. Pointedly this occurred at the same time as the federal government enacted the Fair Housing Act into law [Kushner].
Over the years many sociological studies and much cultural criticism has focused on the Levittown housing model. An early take on Levittown described the housing project in aspirational working class terms as “the dream come true of the skilled mechanic in the blue dungarees” [‘Levittown U.S.A.’, A. Miller, Phylon Quarterly, 19(1), 1st Quarter 1958, 108-112]. Many observers have portrayed Levittown as a double-edged sword…”Levittown embodied the best and worst of the postwar American story”, some saw Levittown’s achievements symbolising America’s can do” spirit, its ingenuity and entrepreneurship, but for many liberals it symbolised violent prejudice, unthinking conformity and race-based exclusion [‘Levittown: The Imperfect Rise of the American Suburb’ (C Galyean), US History Scene, www.ushistoryscene.com].
Sanitised homogeneity of Levittown
From the time of Levittown’s first outing in New York in 1947, some critics were concerned than the large-scale experiments in housing may turn into mass slums of suburban sprawl. If they weren’t thought of as slums, they were characterised as bland and unoriginal. Sociologist Lewis Mumford depicted the developments as comprising a “low-grade, uniform environment from which escape is impossible” [‘Suburban Legend William Levitt’, (Richard Lacayo), Time, 07-Dec-1998, www.time.com]. A common perception of Levittown from the outside looking in that has become generic is of an over-sanitised suburb consisting largely of identical housing [‘Levittown, New York’, Wikipedia, http://en.m.wikipedia.org]. Standardised houses produce standardised people was a popular view of critics at the time. Some went further and labelled Levittown a “social failure and an environmental disaster” [Steven Conn].
From an aerial or from a panoramic view, Levittown did leave itself susceptible to satire…the clear-cut “cookie-cutter” pattern of little boxes and white picket-fence wholesomeness invited comparisons with the world of the 1950s as portrayed on American television. The neighbourhood houses and their neat configurations resembled the sets of Leave It To Beaver and Father Knows Best: images of irenic and idyllic communities of harmonious middle class suburbia…in other words, they looked like the cruel parodies of the American dream detached from realities – as depicted on the small screen [Review of Diane Harris (Ed), Second Suburb: Levittown, Pennsylvania, (2010), (DR Contosa)].
Customising a Levittowner
The view of the Levittown landscape as fixed and immutable has been rejected by some observers who point out that the owners themselves were the agents of change and non-conformity…after they settled in some of the residents altered the nature of their tract-houses to suit themselves and their lifestyle – extending a standard utilitarian Cape Cod or a Rancher to express the individuality of their homes. They also converted car ports into garages or additional rooms for new children, and the like [Schuyler]. Furthermore, Richard Lacayo argues that Levitt homes were made to be customised, the original structures were basic and over time homeowners added features such as porches, dormers and new wings [Lacayo].
Un-Americanism, McCarthyism and Levitt
The formative days of the first Levittown projects coincided with the McCarthyist period of political witch-hunts aimed at exposing supposed communists within America. By a curious convergence of mutual interests, Senator Joe McCarthy joined up with fellow illiberal Bill Levitt in promoting the virtues of Levittown (“a model of the American way” McCarthy declared). In one of his incendiary speeches McCarthy equated public housing (Levitt’s competitors) with communism [‘The Levittown Legacy’, (Ellen Leopold), Monthly Review, 01-Nov-2000, www.monthlyreview.org]. Levitt returned the favour by vilifying anyone who opposed his segregationist practices as ‘communist’, linking Levittown to the McCarthyist cause, and by endorsing the Levittown way of housing as a more American and capitalist alternative to public housing [Galyean].
In 1968 Levitt sold Levitt & Sons to telecommunications goliath ITT for a cool $92M. Subsequent attempts by Levitt to replicate the glory days of Levittown in overseas housing projects (Nigeria, Iran, Venezuela) floundered, and then a big project in Orlando, Florida, also went “belly up”, with dire personal consequences for the realty developer. Levitt misused funds belonging to customers and from his charitable trust [‘Tough Times for Mr. Levittown’, (MT Kaufman), New York Times Magazine, 24-Sep-1989, www.nytimes.com]. The once great ‘King of Suburbia’ – whose multi-multi-million dollar business at its height was constructing 12 houses a day on its construction sites – died in debt, still dreaming of pulling off one more mega-housing triumph.
FN: By the late 1980s there were high taxes imposed on individual Levittown properties due to the absence of a commercial tax base. Levitt recognised, all-too belatedly, that this was a weakness of his developments (the estates were designed without adjacent industrial/commercial complexes)… which also deprived residents of a local employment source [Kaufman]. Another ironic twist for Levitt whose marketing mantra always invoked the affordability of a Levitt home, in 1988 homes in Levittown Philadelphia had a $200,000 price tag on them! [‘It Started With Levittown in 1947: Nation’s 1st Planned Community Transformed Suburbia’, (JF Peltz), Los Angeles Times, www.latimes.com]
PostScript: “Little Boxes”
The period from the mid/late Fifties to the early Sixties saw a heightening of criticism of Levittown (and its clones) in literary and cultural forms. US novels of the period presented a downbeat, unappealing and even bleak view of life in a Levittown style environment, especially John C Keats’s The Crack in the Picture Window and Richard Yates’ Revolutionary Road. Social critic Keats wrote of the postwar suburban ‘solutions’, “find a box of your own in one of the fresh air slums”, Yates spoke of an era dominated by “a general lust for conformity”. The takeaway message of these works was that the tract-home buyer was entering a stultifying world of social alienation, the anonymity of suburbs, impersonal supermarkets, inane ‘mod’ gadgetry and mortgage servitude✜…bleak stuff indeed! To William H Whyte these were the “new package suburbs” whose residents (were) “transient, interchangeable cogs in the engine of corporate America” [Schuyler]. The critique of the Levitt house also extended to pop music of the day, Malvina Reynolds’ song ‘Little Boxes’ added a similar disparaging note to the Levittown commentary.
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✱ even after the removal of racial exclusion covenants in the 1960s, the 2000 Census revealed that Caucasian residents of Levittown, Bucks County, still comprised 98 per cent of the population
⍍ Kenneth Jackson has argued that the problem would have been avoided had Levitt simply made Levittown available to all from the start, he asserts that the demand for houses after the war was so great that White buyers wouldn’t have been put off by the prospect of having some Black neighbours [quoted in Schuyler]
⌖ it had been sold to the African-American couple by the home’s original owner (Levitt was legally powerless to prevent the re-selling of Levittown properties)
✫ the 2017 George Clooney movie Suburbicon is a fictionalised interpretation of the Myers Levittown incident
✜ the acerbic (other) Mr Keats followed up The Crack in the Picture Window with The Insolent Chariots (1958), a comparable hatchet job on the automobile and Americans’ problematic relationship with it
Postwar society – in America as elsewhere – was beset with a multitude of problems. Affordable housing was high on the agenda of priorities – servicemen returning from World War II and a new generation of Americans that would become known as the ‘Baby Boomers’ were about to come into the world. Due to preoccupation with the war and its drain on US domestic manpower, housing construction levels were well down at a time that birth-rate numbers were about to take off.
Into this scenario, at a most opportune time, walked the Levitt family, father Abraham and sons Bill and Alfred. Bill Levitt, who took over the family real estate development business from his father, saw a chance to meet the country’s pressing accommodation needs by mass producing houses at lower cost. Levitt and Sons, as the company was called, had already entered the field pre-war, initially successfully but had failed in its first foray into the high-volume sector✱. Venturing into postwar low-cost housing bore a certain irony for the Levitts – as they had began their career in property development during the Depression building and selling high-end, custom-made houses to upper middle class people (the Strathmore project in Manhasset, Long Island). Indeed, the years spent making and selling exclusive, upscale properties to the gentry of New York made the family rich[‘William Levitt Facts’, (Your Dictionary), www.biography.yourdictionary.com].
Levittown, New YorkThe first mass scale suburban project, commenced in 1947, was at Island Trees, a hamlet in the town of Hempstead (Nassau County, Long Island). 1,400 tract-homes were sold in the first three hours of the opening of the Island Trees estate sales office [‘Levittown New York’, Wikipedia Republished, http://wiki2.org], within four years the Levitts had built 17,500 homes in Hempstead. The company concentrated on small two-bedroom dwellings, predominantly ‘rancher’ or Cape Cod style, seventh-of-an-acre lots (750 square foot). These tract-houses as they are known in the trade were modest structures, for the most part pretty basic (a living room, a kitchen, but no garage, an unfinished second floor) and pressed fairly close together in rows. But they were (initially anyway) very reasonably priced as well, affordable to US veterans from the World War, Levitt’s initial target market (“the Levittown house was the reduction of the American Dream to an affordable reality” as historian Barbara Kelly described it). Each Levittown housing complex was divided into distinct sections.
A revolutionary approach to housingPrior to the advent of the Levittown model, house construction was done in a unitary fashion, a building company would work on a new home until completed and then move on to the next project (the average builder had been constructing only about four to five homes a year). William and Alfred Levitt✫, building on the mass-production experience of Californian builders, devised something radically different, a totally new division of labour to speed up the process dramatically. Construction was divided into 27 separate steps or operations, each worker or specialised team of workers would complete one step and then move to the next house to repeat the step there, and so on (for example one worker’s job would be the singular task of going from house to house bolting washing machines onto the floor all day!)[Schuyler, D. (2003), ‘Reflections on Levittown at Fifty’, Pennsylvania History: A Journal of Mid-Atlantic Studies, 70(1), 101-109. Retrieved from http://www.jstor.org/stable/27778531].
Everything on site was orchestrated to work seamlessly, the tradesmen were scheduled to arrive in a strictly planned sequence. Bill Levitt admired automobile tsar Henry Ford’s production methods and replicated them in what was an assembly line style of home construction. The comparison was widely noted, Time magazine called Bill Levitt “the Henry Ford of Housing” [Schuyler]. Others, only barely a little less grandly, styled him “the King of Suburbia”.
Vertical integrationKey to the spectacular success of Levitt & Sons (at its peak the company was constructing homes at the staggering rate of one every 16 minutes!), and its rapid prosperity, was the way it achieved a vertical integration of the industry…the company purchased its own forests in Oregon and started its own mills to provide the lumber it needed; a lot of the parts came in prefabricated; Levitt & Sons even made its own nails. It also purchased materials in mass quantities thus avoiding markups on prices paid [Schuyler]. By buying directly from the manufacturer, Levitt’s saved through cutting out the middleman in the process. Kenneth Jackson credited the Levitt brothers with “transforming a cottage industry into a major manufacturing process” [KT Jackson, Crabtree Frontier: The Suburbanization of the United States (1985)].
Integral to Bill Levitt’s cunning strategy for success was his exclusion of labour unions from his projects and his capacity to persuade lawmakers into softening industry regulations making Levittown easier to achieve [‘William Levitt Facts’]. Another huge advantage in boosting the success of Levitt’s projects was the securing of mortgage financing incentives from the federal government (veterans could buy into the estates with little or no down-payment) [‘Levittowns (Pennsylvania and New Jersey)’, (Suzanne Lashner Dayanim, The Encyclopedia of Greater Philadelphia), www.philadelphiaencyclopedia.org].
Levittown, Pa. ca.1959
Levittown, Pennsylvania
The second Levittown (commenced in 1952) was located in Bucks County, Pennsylvania, about 20 miles north of Philadelphia. The Levitt houses built had limited exterior variations – six types: the Levittowner, the Rancher, the Jubilee, the Pennsylvanian, the Colonial, the Country Clubber – but again they were moderately priced with low down-payments. At project’s end, 1958, a total of 17,311 homes had been built on the site [‘Levittown, Pennsylvania’, Wikipedia, http://en.m.wikipedia.org].
Growth and expansion of the prototypeEventually the Levittown concept of housing estates extended elsewhere – both far and wide. In Burlington County, New Jersey, Levittown Willingboro started in 1958, followed by Levittown Largo in Maryland, 1963, and two other Maryland communities, Bowie (1964) and Crofton (1970). As well, a Levittown in Puerto Rico was built in 1963, and two “Gallic Levittowns” in Northern France in the 1960s, Lésigny and Mennecy (both close to Paris)⍉.The Levitt covenantsWilliam Levitt, in the first instance at least, once he sold families a Levitt house, did not entirely leave them to their own devices. Owners had to comply with certain suburban covenants that he wrote into the contracts…the rules and regulations included no laundry to be done on Sundays and no fencing off of yards. Owners were required to keep their lawns mown and neatly hedged. Bill Levitt himself would drive around some of the communities on Saturdays to ensure that the residents complied with this edict – when he spotted properties that were non-compliant, he would despatch his own lawn-mowing team to do the job and bill the owners on the following weekday [‘Suburban Legend William Levitt’, (Richard Lacayo), Time, 07-Dec-1998, www.time.com].
There was another more controversial Levitt covenant, this one with grossly inequitable and far-reaching overtones. From the onset of the first Levittown, Bill Levitt refused outright to allow African-Americans to buy into the company’s housing estates. Levitt, a Jew, copped a lot of flak for his stance on excluding Black citizens, including Black veterans (see below FN re the dilemma of his Jewishness). I will detail this less edifying side of the Levittown phenomena in Part II of the blog.
Footnote: A “Gentlemen’s Agreement”:
‘Gentleman’s Agreement’, a lauded film of the day
William Levitt’s discrimination against Non-Whites in Levittown was preceded by a similar policy against his own race in the earlier, North Strathmore housing project. Despite being Jewish himself (and a generous benefactor of the state of Israel and an organiser of Jewish-American funding for Israel during the Six-Day War) Levitt in his business dealings would not buck the local practice of real-estate agents refusing to sell to Jews – the unspoken “Gentlemen’s Agreement” among Gentiles to discriminate against Jews [‘William Levitt Facts’].
rꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰꚰ
✱ building a 1,600-shack community in Norfolk, Virginia, which still had unsold units in 1950 [‘William Levitt’ Wikipedia, http://en.m.wikipedia.org]
✫ William was overall the boss of the business as the financier and promoter, whilst Alfred created the mass production techniques, designed the homes and the developments’ layouts. Father, Abraham, pretty much early on took a step back, ceding the running of the enterprise to oldest son Bill. This allowed the elder Levitt (a horticulturist by training) free rein to pursuit his pet interest, taking charge of the Levitt projects’ landscaping
⍉ Levitt designed tract-homes can be found also in Buffalo Grove and Vernon Hills (Illinois) and Fairfax (Virginia)
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𓇽 see also the October 2021 blog Lakewood Park, Ca Housing Development, the West Coast Answer to Levittownon www.7dayadventurer.com Lakewood Park, a mega-sized, rapidly constructed Californian housing development in the 1950s—the brainchild of three Jewish American developers—operated what was effectively a (unwritten) covenant discriminating against non-white prospective home-buyers.
Monopoly: (n.) a market situation where one producer (or group of producers acting in unison) controls supply of a good or service, and where the entry of new producers is prevented or highly restricted; “exclusive possession” of the commodity is customarily implicit in the term [www.businesssdictionary.com; www.en.oxforddictionaries.com]
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As a kid my favourite board game wasn’t Monopoly, it was an old Milton Bradley game called Pirate and Traveler✱, however I certainly did play Monopoly an awful lot of times growing up (and it seemed like every game went for an interminably long amount of time!). So, having clocked up that amount of wasted Monopoly game-time, I was more than mildly interested to revisit my youth via a recent book on the universal and ubiquitous board game, and even more intrigued that its author, Mary Pilon, presents a radically different take on the genesis and development of Monopoly to what hitherto was been the received orthodoxy.
Pilon’s book starts with two very different Americans, one an out-of-work Eastern Seaboard “average Joe” wallowing in the depths of the Depression, the other a fairly nondescript, left-leaning economics professor at a Californian public university –– Charles Darrow, the individual identified as the putative inventor of Monopoly, and Ralph Anspach, the man who almost inadvertently exposed Darrow as the faux inventor of the game. The unemployed Darrow learned the game from friends during his enforced leisure time…then with the germ of an idea in his head, got other friends to provide artwork (especially political cartoonist FO Alexander) and a written set of rules. Darrow crafted a version⊚, copyrighted it and eventually sold “his” game of Monopoly (without acknowledging or recompensing the contributions of his friends) to games manufacturers Parker Brothers who mass-produced and distributed it – and the rest is blockbuster games sales history!✥
Ralph Anspach comes into the story in 1973, six years after Darrow—made a multi-millionaire by the runaway success of Monopoly—had died. Anspach is an avowed anti-monopolist, by conviction a “trust-buster” who is mightily annoyed at the OPEC oil cartel’s stranglehold over that essential world commodity at the time (the 1973 Oil Crisis). He pursues his ideals by creating an Anti-Monopoly game in opposition to Parker Brothers’ über celebrated game. Parker Brothers sues Anspach for breach of copyright and so begins nearly ten years of legal battles with Parker Bros (in fact by this time the company was controlled by the General Mills corporation)…Anspach’s tireless research for the case leads him to the true, albeit convoluted, origins of Monopoly☸.
The Monopolists recounts Anspach’s monumental efforts and endlessly time-draining “detective work” in minute detail. Anspach traces the game back to one Elizabeth (Lizzie) Magie (long pre-dating Darrow), and here’s where the story gets really interesting! Magie, an independent-thinking, politically progressive Midwestern woman, was a staunch supporter of Henry George. George was the author of Progress and Poverty, a widely influential text which fuelled the introduction of the Progressive Era in the US (1890s-1920s). George advocated the introduction of a Single Tax on land and property (AKA Land Value Tax). Ms Magie invented and patented a board game in 1903-1904☯, called the Landlord’s Game, based on Georgist principles of wealth redistribution. Magie’s game was in her words, “a practical demonstration of the present system of land-grabbing with all the usual consequences” [Single Tax Review, 1902], the Landlord’s Game was intended to educate Americans about the dangers of unbridled capitalism (ie, ultimately resulting in the monopolisation of business, benefitting only one player)⌑.
When I played Monopoly in the 1960s the takeaway message for me always aligned with the “Gordon Gecko/Greed is Good” world view…gold standard instruction on how to win at capitalism – with ruthlessness and a certain degree of luck! Pilon points out the fundamental irony of Magie’s “thought-child” – once Parker Bros got their hands on Monopoly, the company left not a single stone unturned in the pursuit of eliminating any rival claims to “their game”⊡. Monopoly, under the aegis of Parker Bros, a game with the sole raison d’être of annihilating all business competitors, leaving a solitary victor, was the complete opposite of what the game’s prototype inventor intended it to be! Moreover, to further underscore the irony, the game became controlled by a company (Parker Bros) that “fought tooth and nail to maintain its own monopoly over it”.
Back to Ralph Anspach’s anti-monopoly crusade – as well as introducing or reintroducing Lizzie Magie to the world, the economics professor’s years of searching, digging in archives, interviewing people of interest across the United States, word-of-mouth, friend-of-a-friend, sometimes down blind alleys, etc, revealed that the games (or games) of Monopoly had been played in various forms and under various names for decades before Charles Darrow’s Pennsylvanian neighbours introduced him to the game. Pilon ties together all the threads of Monopoly’s antecedents – as unearthed by the indefatigably never-say-die Ralph Anspach. What came to light was that Magie’s game, either in its original published form (‘The Landlord’s Game’) or in derivative ‘backyard’ versions, had been played (prior to the publication of Darrow’s Monopoly) as follows:
⌲ among members of the early 20th century rural community of Arden (Delaware), an “alternative lifestyle” arts and crafts colony of “Single Taxers” (including the influential writer Upton Sinclair and the radical economist Scott Nearing who spread the word about Magie’s game to other locations)
⌲ among members of the Quaker community residing in Atlantic City in the 1920s (many Quaker families held “Monopoly nights”)
⌲ among left-wing university students and college “frat boys” on the Eastern Seaboard
⌲ among couples and families in urban Philadelphia (including those neighbours who first taught the game to Charles Darrow)Unbeknownst to Lizzie Magie, many versions of her ‘Landlord’s Game’ had sprung up in the North-East of the country, often these early, widely dispersed players made their own homemade versions of Monopoly using hand-painted oil cloths, local street names and substitute tokens. In addition George Layton created and sold his own commercial version (which he called ‘Finance’) in the early 1930s. By the thirties a version of the game had spread to Texas – Rudy Copeland’s published board game of ‘Inflation’.
Parker Brothers’ whole claim on Monopoly was based on the contention that the game had no precedents to its 1935 patent with Darrow. Anspach’s pains-taking spade work proved that the game in various guises and forms existed “in the Public Domain” years and years before the Parkers and Darrow came on the scene!
Pilon injects many diverse strands in the narrative, even Abraham Lincoln makes a brief (oblique) appearance in The Monopolists – in the late 1850s Lizzie’s father James Magie, a newspaper editor and abolitionist, was an instrumental part of Lincoln’s political campaigns for office…this digression has a very tenuous connexion with Monopoly! The various currents traversed by the author takes the story beyond the purview of being a straightforward account of plagiarised copyrights and game inventions. The book illuminates the position of women in late 19th/early 20th century American society by positing what made Magie stand out from others of her sex at the time and what she was able to achieve – taking on a number of vocations and pursuits, retaining her autonomy and avoiding the “marriage trap”, becoming an inventor (in addition to the Landlord’s Game she held patents for inventions in the realm of stenography as well).
The three Parker Brothers➚
Another strand follows the career of George S Parker, the founder of the eponymous games empire. Parker published his first board game (‘Banking’) at 17, and from the get-go was determined to establish a monopoly, systematically building up a catalog by buying up other manufacturers’ games (leading him headlong into an ongoing rivalry with fellow games giant Milton Bradley). In Parker’s zeal to totally tie down the company’s ownership and control of Monopoly, the company even went round buying up old (Pre-Parker) Monopoly sets. Eventually George Parker talked Lizzie Magie (by this time now Elizabeth Magie Phillips) into parting with her patent for the Landlord’s Game, and paying her a pittance for it with no residuals (despite inventing the archetypical business game Magie lacked business acumen and naively trusted Parker’s intentions to do the right thing by her and her invention, which he didn’t!)
The author takes the reader on another diversion, straying away from the origin controversy to surprisingly explore Monopoly’s role in World War II! The US Military purchased Monopoly sets to be sent to POWs detained in German prisons (and elsewhere in Europe). The intent behind this practice had a dual purpose: to boost morale for the imprisoned soldiers, but also a practical one –
Coda: The after-affects of Ralph Anspach’s 1983 victory over Parker Brothers in the US Supreme Court (including the ruling that the word monopoly was in fact generic) hasn’t brought any sense of closure to supporters of Elizabeth Magie Phillips. The public acknowledgement warranted her as the true and original inventor of Monopoly has not been forthcoming. Pilon points out that in the 1980s Parker Bros “quietly began to massage its Monopoly history”…a 1988 history of the company by a former Parker Bros R & D head admits that Darrow was not the game’s inventor, but neglects to mention Lizzie Magie. Similarly, on the official Monopoly website in the Nineties, Hasbro, Inc, which purchased Parker Brothers in 1991, starts the Monopoly story at 1933 with Darrow and scantly acknowledges the influence of the Landlord’s Game (again without mentioning Lizzie by name!) No plaque for Lizzie’s prototype of the Monopoly game exists anywhere (although there is one in Atlantic City recognising the contribution of that city’s Quaker players to the invention of the game!)
FN: Mary Pilon’s research for The Monopolists is nothing if not thorough. In the end-piece she includes a long, long list of acknowledgements of her sources, helpers and supporters, she even gives a hearty shout-out to coffee shops in seven different cities (I said she was thorough!)…one very notable exception missing from the author’s acknowledgement of research help is Hasbro! Hasbro denied Pilon’s request to access the Parker Brothers’ archives and outright refused to answer any of the many fact-checking queries she submitted to the world’s largest toy and games company. Zero marks to Hasbro for the cause of corporate transparency…ummm, given how much she gleaned from other sources, I wonder what else they didn’t want her to discover?
The Monopolists: Obsession, Fury, and the Scandal Behind the World’s Favorite Board Game, by Mary Pilon [Bloomsbury New York: 2016 p/b ed.]
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✱Pirate and Traveler later got relaunched with some modifications and an updated aviation theme as a game called Pan American which I played with equal relish. The idea of these two games was to spin a number or roll a dice, collect a destination card and progress from one city to another city somewhere in the world. When you completed a requisite number of destinations, you hightailed it back to a home base city (Godthab, Greenland), first one there was the winner! The games educated me on political geography and I learnt the distance (in miles in those days) between different places on the world map
⊚ with Atlantic City street names on the earliest editions of the Monopoly sets (later editions of the game utilised New York City streets and London streets on their boards)
✥ a comparison of the visuals of Magie’s original 1904 patented game and Darrow’s 1935 patented Monopoly reveals profound continuities…Darrow’s replicates essential features of Magie’s – a square board, a space “for the emblematic GO TO JAIL”, a “Public Park” space (anticipating the Parkers’ “Free Parking”), ‘chance’ cards, the use of tokens representing money, deeds and properties
☸ Parker Bros, when taking on Darrow’s game, accepted and promoted the myth that Darrow had fed them, ie, HE invented the game from his own head in the early 1930s, and that there were NO precedents for it
☯ by a remarkable happenstance of history Lizzie filed her patent claim on the same day in 1903 as the infinitely more famous Wright brothers filed their “flying machine” patent
⌑ interestingly Magie devised two versions of the Landlord’s Game – version 1, the objective was to crush all of your opponents (= the contemporary game of Monopoly produced by Parker Bros), and version 2 – the objective was to create wealth for all to share
⊡ the three Parker brothers (especially George) were evangelically zealous about this because, as the author explains, the company had been “badly burnt” twice before with two products that they had thought that they held exclusive control and ownership of – ‘Tiddlywinks’ and ‘Ping Pong’
The suburbs immediately to the south of the City of Sydney have traditionally housed much of the city’s industrial and commercial activity. But in recent decades land use in suburbs like Alexandria, Zetland and Waterloo has undergone a remarkable transformation…a lot of the old industries and factories have closed down or decentralised to Western Sydney. In their place high-density residential estates have emerged, modern housing complexes on the streets and blocks where light industry once monopolised the urban landscape. The industrial “desert wastelands” have gradually been replaced by new residential ‘precincts’… glossy property ads for these gentrified zones of inner-Sydney suburbia tend to emphasise the modern lifestyle attractions for home-seekers – “green-linked” neighbourhoods, “bike and pedestrian friendly”, “close to the city”, etc.
The suburb of Rosebery, six kilometres from the CBD, is part of the modern makeover of the once dominant industrial landscape of South Sydney. One of the suburb’s newer buildings, known as ‘The Cannery” (a former warehouse and cyclone fencing factory), gives a clue to a very different Rosebery 100 years ago. One of the building’s new tenants is a restaurant called Stanton & Co, the name references the man who was instrumental in developing the suburb in the early 20th century, Richard Stanton.
(Source: Broadsheet)
Market garden, cattle holdings and a midweek racecourse
The area of Rosebery was part of Cooper’s Estate (Daniel Cooper, 19th century property ‘baron’, owner of the Waterloo Estate amongst others), prior to 1912 had developed in a rather spasmodic fashion…’Rosebery’ comprised a “hodge-podge” of different enterprises and activities – “dairymen and gardeners” with their market gardens peopled much of the sand-soaked terrain, the occasional factory was scattered here and there interspersed with some isolated houses. The south side of Rosebery was the venue for a popular racecourse.
Stanton & Son’s slice of Rosebery
In 1912 Sydney estate agent Richard Stanton, fresh from creating his Haberfield garden suburb “model estate”, (see Planning for Suburban Bliss, a Template for the Sydney Garden Suburb: Haberfield, NSW — July 2018 blog), came to Rosebery with big plans. Stanton’s company, the Town Planning Company of Australia (TPCA), acquired for an outlay of £24,000 some 273 acres from within the greater Waterloo (Cooper’s) Estate, which he called the ‘Rosebery Workingman’s Estate’✱. The initial layout of the estate was planned by noted architect John Sulman using the land’s contours as a basis for design (once again reprising the ‘team’ of Stanton and Sulman who had done the ‘spadework’ for the earlier development of Haberfield) [‘Special Precincts’, www.cityofsydney.nsw.gov.au].
An all-purpose suburb?
Stanton’s scheme envisaged turning Rosebery into a model suburb which harmonised industrial production with space for living. The estate would entail both industrial and factory employment sites with worker housing. The work force for the new industrial enterprises would be situated close by for easy access. The scheme also allowed for the creation of shops and other commercial outlets within the estate, as well as community and recreational facilities. Stanton envisaged that workers could walk to their work place, which was intended to be separated from their homes by parks [‘Sydney City Council’, www.sydneyyoursay.com.au; Craig Vaughan, ‘Obscure 1912 covenant protects pocket of Rosebery from overdevelopment’, Southern Courier, 30-Jul-2014].
⍐ Rosebery: Arts & Crafts/Californian bungalow
Californian bungalow village
After TPCA subdivided the Rosebery Estate in 1914, the early dwellings tended to be Federation style (single-storey, face brick exterior walls, terracotta roof tiles) although there was not many houses constructed until the early Twenties because of the outbreak of the World War. Increasingly though, the domestic building of choice for the “Rosebery Model and Industrial Suburb” was the Californian bungalow (horizontal overreaching roof forms, flat verandah roofs in asymmetrical composition, decorative front gables, roughcast masonry contrasting with dark brickwork). On a visit to the USA Stanton became enamoured with the “Cali-bungalow” and introduced it into his Sydney estates, especially in Haberfield and Rosebery [‘Special Precincts’, loc.cit.].
Stanton’s Rosebery covenant
Stanton established a covenant for the estate (cf. Haberfield) which provided a framework for house construction which gave the cottages a distinctive neighbourhood pattern and character…eschewing a rigid homogeneity Stanton allowed for individual differences between houses (no two cottages in Stanton’s estate were exactly the same!) [ibid.]. The covenant bound the buyer of residential lots to its adherence (it was codified into the deed of sale) – all cottages built in the estate had to be one-storey and double-fronted. Houses were to have (back)yards and to be divided by lanes. A 1913 prospectus on the estate released by TPCA heralded the estate as “the ideal of the manufacturer and mechanic alike”, offering the best of both worlds “modern factories and model homes” [Sydney Living Museums, (Caroline Simpson Library and Research Collection), www.collection.hht.net.au].
A bulwark against overdevelopment
The detail of the covenant contains a clause inserted by Stanton which safeguards the core of the estate from being too built-up…the safety clause applies to a 121ha area bounded by Botany Rd in the west to Gardeners Rd in the south, to Dalmeny Ave and Kimberley Grove in the east, to Cressy St in the north, comprising in all some 3,353 homes. The covenant is particularly germane to the present as developers have saturated the areas surrounding the covenant’s jurisdiction with bulky, high-density apartments and units – which the covenant prohibits! [Vaughan, op.cit.].
Stanton’s 1922 ad for the new Rosebery estate – don’t spare the hyperbole! ⍗
Selling Rosebery to the punters
To drum up interest for the Rosebery Estate, the Town Planning Company of Australia launched a street-naming competition, inviting the public to come up with a name for each street planned for the model suburb. Stanton offered a first and second prize (valued at £10 and £5 respectively) for the best names – with himself to be sole arbiter of the entries. The newspaper promo was unrestrained in heralding the ‘unique’ venture in Sydney property: “Rosebery Model and Industrial Suburb – never before attempted in Australia!” Despite being a site dedicated to light industry, the advert interestingly depicted the new estate as “undulating beautiful grasslands and sand dunes” (used for) “pastoral purposes” [‘Rosebery Street-naming Competition. First Prize £10’, Sydney Morning Herald, 13-Jul-1912, www.trove.nla.gov.au].
⍐ Estate cottage in Tweedmouth Ave
(Photo: Caroline Simpson Library & Research Collection)
⍐ Sweetacres of Rosebery: “It’s moments like these…you need Minties!”
Under these arrangements the private sector was not slow in establishing plants and factories in the new estate. One of the first to set up (1917-18) was ‘Sweetacres’✱, owned by a confectionary manufacturer, James Stedman-Henderson’s Sweets Ltd (makers of the iconic ‘Minties’, ‘Jaffas’ and ‘Fantales’). The 16-acre Sweetacres complex was generously equipped with a large canteen a social hall, sports and cricket grounds, a library, band and sports clubs, to cater for 1,000-plus mainly female workforce. The factory building was designed by John Burcham Clamp [‘Sweetacres and the iconic Aussie lolly’, City of Sydney Council, www.cityofsydney,nsw.gov.au].
The old Wrigley’s Factory converted in a modern residential complex ⍗
Reviving the Garden City Movement?
Extending the local confectionary theme, Clamp also designed the Wrigley’s Gum factory in Crewe Place Rosebery (1918)…a huge Chicago-style steel-reinforced concrete structure with grid-like facade, rooftop water tower and setback landscaping. The US-owned factory made the popular chewing gum brands ‘Juicy Fruit’, ‘P.K.’ and ‘Spearmint’. With a modern fit-out and de luxe designer-gardens, the heritage protected ‘Wrigley’s building resurfaced recently as state-of-the-art accommodation (‘The Burcham’), with ads connecting it to a revival of the UK Garden City Movement [‘Built to last – an old world soul redesigned’, www.theburcham.com.au]
Other industries within the Rosebery Estate included the Commonwealth Weaving Mills (AKA Dri-Glo Towels), Dunning Ave. The premises were later acquired by Bonds Industries with part of the site becoming a warehouse in the early 1960s for Union Carbide. American multi-national chemicals and polymers giant Union Carbide also had a large plant (cnr of Rothschild St and Harcourt Ave) where it manufactured Eveready brand batteries. Other manufacturing firms operating on the Rosebery turf included the Rosella Canning Factory, Parke Davies & Co (chemicals) and Noyes Bros (makers of ‘Gypboard’) [‘City of Sydney Warehouses and Industrial Buildings. A Heritage Study Report’, www.cityofsydney.nsw.gov.au].
These days Rosebery remains quite a mixed bag architecturally. There is still light industry in the suburb but most of the old factory buildings with zero aesthetic appeal are either gone or transformed. Much of the landscape is occupied by glistening glass monolithic structures housing telecommunications and IT outlets, modern retail outlets and a seemingly inexhaustible conveyor-belt of new residential projects constantly in the process of erection.
PostScript: Beaconsfield, Rosebery writ tiny minus the green spaceBeaconsfield, less than one kilometre east of Rosebery, offers an interesting point of comparison. Beaconsfield estate was hived off from Cooper’s Estate in an 1884 subdivision and promoted as a “Working Man’s Model Township”. The suburb’s potential however failed to elicit any interest from Richard Stanton, possibly due to several factors: the tiny size of the suburb (0.1 sq. ml.) which translates into a limited number of residential properties; and its topography was dotted with numerous sand hills✥. Accordingly Beaconsfield has tended to retain its industrial complexion longer – brickworks, noxious materials, soap and candle-making factories, and more recently mechanical and engineering works, a lack of green spaces. Recently though Beaconsfield, being close to Green Square, has been caught up with the process of gentrification and urban renewal affecting most of the South Sydney district [Anne-Marie Whitaker, Pictorial History South Sydney, (2002); ‘Beaconsfield, Sydney’, Wikipedia, http://en.m.wiki.org].
Beaconsfield, NSW
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✱ ‘Sweetacres’ was later acquired by Nestlés (via Hoadley’s and Rowntree’s) and the plant was closed and replaced by high-rise housing…however a park nearby in Mentmore Street commemorates Sweetacres’ historic presence in Rosebery
✥ an observer in 1904 described the Beaconsfield estate as “among the dreariest parts of the environments of Sydney since the primitive sandhills remain”. So much sand that Sydneysiders would commute to Beaconsfield to engage in the pursuit of “sand-shifting” (ie, collecting bags of sand for free to take home)[Whitaker, ibid.]
The further I delved into my “war-ravaged” copy of Wilson’s 1922 Authentic Director of Sydney and Suburbs, the more snippets of hitherto unearthed information, little gems of Sydney’s yesterday, I stumbled upon.
Among the minutiae of miscellaneous info contained in the directory’s index, one item that got my attention was a list of the consuls and overseas government agents in Sydney in 1922. Interesting to see that at that time there were consulate offices established in Sydney for tiny international entities like Latvia, Nicaragua, Columbia, Ecuador, Honduras, Serbia and the Czechoslovak Republic, but being not yet four years after the cessation of the hostilities of WWI, no consulates for the countries deemed by the victors to be the “guilty parties”, Germany, Austria, Hungary and Turkey. So much for moving on!!!…and we all know where that path catastrophically led!
Another curio I discovered was that among the State and Commonwealth government departments listed in the index, there were several with city addresses in Richmond Tce, The Domain. The questionably named Aborigines (spelt ‘Aborogines’) Protection Board, the Pharmacy Board of NSW, the Dental Board of NSW, the Medical Board of NSW, the Metropolitan Meat Industry Board and the Inspector-General of the Insane(sic) were all located in this east side of the city street…interesting in that this street, Richmond Terrace no longer exists!
Ad for the Orient Line
A total of forty-six shipping line companies were recorded as having offices in Sydney’s CBD. These included British-India SN Co, China-Australia Mail SS Line, Nippon Yusen Kaisha, the Adelaide Steamship Company, New Guinea, New Britain and the Solomon Islands (Line), the White Star Line✲ and the more contemporarily familiar P & O Line. Only one of the 46 placed a (full-paged and quite detailed) ad in the directory, the Australia to Britain Orient Line.
Royal Autos in ‘Wilson’s’
City clubs and buildings of interest
In a section of the index Wilson’s lists the various clubs, chambers, banks and arcades that formed part of the cityscape in 1922. The more ‘highbrow’ of the clubs, predominately “Gentlemen’s” establishments, tended to congregate ‘uptown’ (the end closer to Circular Quay) considered to be the smarter and more affluent part of the city. The clubs included the Australian Club (corner of Bent and Macquarie Sts)[¹], the Automobile Club of Australia (132 Phillip St)[²], the Country Club (17 Castlereagh St), the Catholic Club (107 Castlereagh St ), Masonic Club (216 Pitt St)[³], the N.S.W. Club (Bligh St)[⁴], the Soldiers’ Club (426 George St), the Union Club (2 Bligh St)[⁵], the Warrigal Club (145 Macquarie St). Also in the city were clubs associated with the sport (and business) of horse racing – these three used to be situated in the CBD, the Australian Jockey Club (now the Australian Turf Club) (8 Bligh St), the Canterbury Park Race Club (15 Castlereagh St) and the Rosehill Racing Club (32 Elizabeth St). Another city club intricately linked to horse racing is Tattersall’s Club (202-204 Pitt St). Traditionally the haunt of old style bookmakers, “City Tatts” as it is better known, still stands and operates on its original land, 123 years after its foundation.
The 1922 city’s chambers are a predictable lot with numerous entities bearing largely homogenous Anglo-(Saxon)Celtic names scattered around Phillip Street, the traditional law hub of the city. That equally upstanding and status quo affirming pillar of society in that day, the banks, are spread over a wide radius of the CBD. The only point of note about them is discovering that in the 1920s Australia financial climate, with regulation of the sector very tight, two foreign banks had Sydney branches and were allowed to trade here at that time… the French National d’Escompté de Paris, a forerunner of Banque National de Paris? (24 Hunter St) and even more surprisingly, the Japanese Bank (Falmouth Chambers, 117 Pitt St).
The original (1907) Challis House
One of the city buildings identified in Wilson’s Director with a busy and interesting history is Challis House, N⍛ 4-10 Martin Place. Eponymously named after merchant and University of Sydney benefactor John Henry Challis, the House has a long association with the University as well as many financial tenants over the decades. During WWI it was used as the recruiting campaign headquarters for New South Wales. The office building at the time of Wilson’s publication was in its original Victorian architectural state…in the Thirties it received a new (Art Deco) facade and later in 1993 it underwent major renovations [‘Challis House’, Sydney Architecture, www.sydneyarchitecture.com]
Blue Mountains – a “Tourist’s Guide”
Although it’s a street directory whose ambit is Sydney and suburbs, the Wilson’s directory ends with an extensive section (73pp) on the Blue Mountains. The entry even encompasses the town of Lithgow (also called ‘Eskbank’ in 1922) which is 15 miles west of the Blue Mountains. The book has lots of detailed information on the BM suburbs, each suburb has an entry on accommodation and the scenic natural highlights of the Mountains with select maps indicating points of interest.
The “Half-way House” of Blue Mts
The directory gives a picture of Springwood, the largest of the Lower Mountains towns✥, that suggests a warm place in an otherwise cold region – “sheltered by its westerly walls from the cooler air of the higher altitudes…pleasant sunshine all year round…in winter the climate is so equable that many families make Springwood a permanent residence”. An opinion echoed by Springwood house and land agent R.F. Harvey’s ad extolling “The Best Winter Climate in the World”. For day visitors to Springwood, the Hotel ‘Oriental’ awaits their patronage (ad, right).
Katoomba, the “largest of the mountain tourist resorts” with its “wide choice of charming and picturesque views”. Despite being 68 miles from Sydney, “horses and vehicles are always obtainable” – as this advertisement (left) on page 706 offering trips to the famous Jenolan Caves in luxury Buicks testifies.
Nearby Leura is “celebrated for the beauty of its great showpiece – the Leura Falls…in themselves alone worth the trip to the mountains”. With unfettered enthusiasm the writer goes on to laud the town in extravagant terms: “the place has been so well laid out as a tourist resort that it offers a perfect kaleidoscope of the views”. The object of Wilson’s Director is clearly to sell the Mountains to visitors from Sydney which synergises nicely with the numerous accommodation ads (funny that!) that appear such as this one (right) for Leura’s Hotel Alexandria (still in business in 2018).
The spa town of Medlow Bath, is “a pretty little village, rising rapidly in tourist favour”. The tiny Upper Mountains town is famous for its Hydro-Majestic hotel resort where in the day the better-off citizens of Sydney would periodically retreat to benefit from its therapeutic mineral waters and clean mountain air. Built by retailer Mark Foy (Jr) as a hydropathic sanatorium, the “Hydro-Maje” in the Twenties was where the cream of Sydney’s elite flocked on the weekends to socialise.
Jenolan tourer (Blackheath)
One station further west, the mountains tourist resort of Blackheath, had the writer reaching for new superlatives! The bush trails and valleys (the “Valley of the Grose” as he calls it) lead to “world-famous Govett’s Leap (waterfall), a stream which plunges headlong over a perpendicular wall of dark-tinted rock on to a mass of boulders, some 520 feet below”. Mermaid’s Cave is “like a glimpse of a fairyland…a more picturesque scene cannot be imagined”, etc. The other attraction of Blackheath in 1922 was that “there is every probability of its having a permanent water supply in the near future”. The accommodation ad below is for Blackheath’s ‘Ivanhoe Hotel’, replaced in 1938 by the now quite old-looking ‘New Ivanhoe Hotel’.
Mt Victoria, 79 miles by paved road❂ from Sydney, the highest point of the Blue Mountains (the guide gives it at 3,424 feet above sea-level)⍍, is praised for the scenic countryside surrounding the town dotted with charmingly named spots like Fern Cave, Fairy Bower, Fern Tree Gully and Witch’s Glen, for the walker to explore.
Upper Blue Mts map (‘Wilson’s’)
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[¹] the Australian Club (still at the same address, 165 Macquarie St), is the oldest men-only club in the country, dating from 1838
[²] the Automobile Club changed both its name to the Royal Automobile Club of Australia (RACA), and its location to Castlereagh St North, in the year of the directory’s publication (1922)
[³] the Masonic Club still exists but the premises relocated to a new building at 169-171 Castlereagh St in 1927
[⁴] the N.S.W. Club House is still in existence at 25-31 Bligh St, but the Club itself amalgamated with the Australian Club in 1969 and the building has had a series of commercial tenants since (currently occupied by the Lowy Institute for International Affairs)
[⁵] still in operation (since 1857), these days at 25 Bent St and now called the Union, University and Schools Club
✲ of Titanic fame, White Star Line merged with Cunard in 1934 as White-Cunard, before eventually becoming defunct
✥ Blaxland and Glenbrook, two other Lower BM towns, get very short shrift from Wilson’s, relegated to brief, passing mentions only
❂ the Great Western Highway, which bisects the Blue Mountains, was still called Bathurst Road in 1922
⍍ although according to markers on the spot, One Tree Hill on the south side of Mt Victoria, is the highest point in the Blue Mountains at 3,654 feet
I remember getting my first street directory as if it was 55 years ago – which it was! It was a Gregory’s of course, it was 1963 and UBD hadn’t quite yet entered the road map reproduction game (they brought out their first street directory the following year!) I had just starting playing soccer (the St George and Southern Sydney’s A-League – Ankle-biters League!) and my parents bought it to get me to season games in tricky-to-find and awkward-to-get-to places across Sydney.
Soccer aside, the Gregory’s spent more time in my bedroom than it did in the glovebox of my father’s VW. I loved perusing its contents, examining the colourful maps, sometimes in piecemeal fashion, other times randomly, learning about all the different parts of Sydney that in most cases I never knew existed let alone had been to! I discovered all sorts of faraway places (to a 10-y-o!) with exotic, magical-sounding names like Avalon, Burraneer, Oyster Bay, Picnic Point and Chipping Norton.
The 1960s Sydney motorist’s Vade mecum
I used to spend long hours during my childhood pouring over the maps of Sydney, preparing me for the future career as a taxi driver that I never had (phew!)…instead I learned lots of useless stuff like the fact that there were two separate bushland places called Warrimo. The name is well-known to many as the small town in the Blue Mountains, but my 1963 Gregory’s showed me that it was then also a suburb adjoining St Ives. Later it was renamed St Ives Chase but Warrimo Oval and Warrimo Avenue in the suburb are reminders of its association.
I got a lot of mileage out of that vintage 1963 Sydney street directory, and continued to do so even after I brought a new Gregory’s when I got my driver’s licence and my first car in the early seventies.
Footnote: Not sure what my father did for road directions before the 1963 Gregory’s came into our family’s life. He certainly had cars before then, at one time I recall he had a crank-start relic of an Austin! Maybe he had one of those fold-out maps that in my hands often end up in a tangled mess.
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WAD: the ante-(now)dated street directory
I got my second street directory around the same time as we got the ’63 Gregory’s, and it was a very different animal to the current edition of the Gregory’s, it was in fact the nearest thing I have had to an antiquarian book. I have recounted in a previous post (Part 1) how I got handed down a 1922 edition of Wilson’s Authentic Director: Sydney and Suburbs and shared some insights into how the WAD depicted different parts of Sydney then and some of the idiosyncratic aspects of the maps contained in the book. I want to focus here on the advertisements contained in the directory which are legion in number and tell an interesting story about life in 1922 Sydney in themselves.
Ad-bonanza
In a book 735pp long, even if I count the pages comprising the indexes and maps there were considerably more pages with ads than without! Some ads were full-page, some pages contained two or more separate ads, some firms like Rickard’s’ (below) had multiple entries of ads in the book. The directory is so ad-rich that the advertisement sales alone were a nice little earner to Wilson & Co. And with each copy retailing to the public at 4/6p, there was obviously more than enough takers to warrant the cost to the advertisers to be in it.
▲ Webber’s “One stop shop”!
Who advertised in ‘Wilson’s Authentic Director’?
Well just about anybody who traded, who had a business in Sydney at the time! Professional men, financiers, engineers, builders, bakers, butchers, chemists, builders, undertakers, stationers, carriers, ironmongers, haberdashers, drapers, milliners, mercers and tailors, retailers of Manchester, furniture suppliers, lime and cement merchants, glass manufacturers, all manner of service or product providers. Where the business being advertised related more directly to the world of motorists or to moving people from place to place, was where you got the lion’s share of ads.
▲ Strathfield: free from “Influences of the Sea Air”
Purveyors of property
The footprints of the auctioneer, the valuator and the real estate agent are visible throughout the directory, often in prominently displayed ads. Some who could afford to, placed more lavish ads which mega-hyped the virtues of certain suburbs and their homes – such as the Orton Bros ad (left) pitching homes in the “favourite suburb” of Strathfield, pushing the (alleged) “health benefits” of the area, “away from the “Influences of the Sea Air”. Presumably if Orton Bros had been selling houses in Clovelly or Coogee Beach, they would have taken a different attitude to the “harmful effects of sea air”!
▲ The “Digger” Agents at Roseville
Another property heavyweight Arthur Rickard & Co, appearing and reappearing across the directory, specialised in sub-division and the creation of new estates, eg, selling as “the New Model Suburb” of Toongabbie✲. Rickard’s had a full-page ad offering a choice of two estates, Toongabbie Park (“a most promising estate, fertile soil and good rainfall”) – the buyer could opt for a large home or a Rickard Farmlet, 1 acre to 4½ acres from £50 10s. per acre; or the Portico Estate (“city water, proximity to consumers’ markets, building conveniences”) – “designed on the latest and most up-to-date town-planning – a wonderful scheme of beauty”. Some property agents like Hough and Barnard emphasised their WWI service credentials to help flog their homes, displaying ads (at right) which proudly announced their AIF associations⊡.
Newtown 1922: Hire-a-luxury wedding vehicle
Transport options a-plenty!
Up there with the estate agents and developers were advertisers for anything to do with the automobile. Hire car companies posted ads for vehicles available for any special purpose. Ads from proprietors of motor garages are liberally sprinkled through the directory, these business often rented out touring vehicles for people both wanting to explore the far reaches of Sydney using Wilson’s of course as their guide. The plentiful motor garage ads naturally catered for all the motorists’ touring and driving needs – ‘Bowserised’ (often Shell) fuel, Benzine oil, ‘vulcanised’ tyres, mechanical repairs, etc.
▲ Bulli Motors: cars, motorcycles, bicycles, for Bulli Pass
The reach of Wilson’s publication was not narrowly limited to the city and suburban district boundaries that encompassed Sydney in 1922… business advertisers buying space in the directory came from as far away as the Blue Mountains and from the Illawarra/South Coast, as evidenced by the ad at right from a Bulli motor garage who also specialised in automotive services for the motor(bike) cyclist.
▲ A horse-intensive removals firm!
The Removalists
Domestic carriers were also well represented in the ads in the street directory. Ads for businesses, describing themselves variously as removalists, carriers or furniture carters, filter through the book. The removal business ads signal an interesting crossover between the old and the new technologies…in 1922 motorised vehicles as a form of transport would still be numerically inferior to horse-drawn carts, the ads in Wilson’s show original horse-power still much in demand on Sydney streets, side-by-side with the new, motor-driven furniture vans and vehicles.
‘Tradie’ ads
Tradesmen were regular advertisers in Wilson’s Street Directory, keen to take advantage of Sydney’s growing numbers of home occupiers and new areas of urbanisation – carpenters, plumbers/gasfitters, electricians, tilers, slaters, painters and decorators, sign writers, metal workers, galvanised iron workers, etc. Some of the most refreshing and humorous ads were from 1920s tradies like the two in the directory reproduced here. ▼ ▶
A miscellany of ads
Most every other avenue of (legal) private endeavour that you’d expect to be plying its business in early 1920s seems to get a shout-out in the street directory. Several ads that popped up in the vicinity of the Lidcombe entry and maps were for stone and marble masons. Considering that Lidcombe was (and still is) home to Rookwood Cemetery, reputed to be the biggest cemetery in the Southern Hemisphere, it is of no surprise to find a troop of monumental masons showcasing their artisan wares here.▼
Rookwood handiwork
A trifecta of disparate WAD advertisers from north of the harbour:▼
▲ 1922: Home entertainment unit
The piano – pride of place in the living room of Sydney homes in 1922
Many of the domestic carrier ads that I have alluded to above emphasised “careful piano removal” as one of the fortes of their trade. This is a reminder that in the early twenties, before the advent of radio and television in Australian households, both of how valuable pianos were and the key role they played as principal providers of home entertainment.
Accommodation and pleasure at Sandringham by the seaside
The first ad below at left is for the ‘Prince of Wales’, a popular beachfront hotel on Botany Bay, a local institution in the St George district since the 1860s drawing crowds to its lavish luncheons, parties, picnics and recreational pursuits on its pleasure grounds. Proprietor in 1922 William Langton was just one of very many publicans who had a go at running (with wildly varying success) the ‘Prince’ since 1866 (the hotel was demolished in 1961). ▼
Footnote: the LJ Hooker of his day:
Of the myriad real estate admen in the directory, the company name recurring most throughout is Stanton & Son, Ltd. Stanton’s features in six separate ads (pp.92, 155, 430, 503, 622, 644) to advertise its offices at Pitt St City, Summer Hill, Haberfield, Edgecliff, Randwick, North Sydney and Rosebery. Proprietor Richard Stanton was one of the founders of the Real Estate Institute of NSW and an advocate of the Garden City Movement (see later blogs on Early 1900s Sydney Garden Suburbs).
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✲ developer Rickard was in fact busy selling property all over Sydney and beyond…such as the Central Coast and the Blue Mountains where he talked the rail authorities into building new stations at Warrimo and Bullaburra to service his new estates there, Peter Spearritt, ‘Rickard, Sir Arthur (1868–1948)’, Australian Dictionary of Biography, National Centre of Biography, Australian National University, http://adb.anu.edu.au/biography/rickard-sir-arthur-8206/text14357, published first in hardcopy 1988, accessed online 12 July 2018.
⊡ realty men were no means the only business advertisers who played the AIF card, tradesmen et al were similarly not slow in slipping into the pitch their record of loyal service to King and Empire during the Great War
I had lots of old books when I was a kid growing up, but maybe only one or two books that would possibly generate the curiosity of an antiquarian✲. One of these books was given to me by my mother when I was about ten or eleven…a most unwise move on her part as it transpired.
‘1922 Wilson’s Director’
The humble but rarely spotted 1922 street directory
This book was the Sydney street directory for the year 1922, to give it it’s correct and full title, Wilson’s Authentic Director, Sydney and Suburbs 1922. This small but squat little publication (5½” x 4½”, 735pp), the original owner of which was almost certainly my carpenter-builder maternal grandfather (an early owner of a motor vehicle I believe), came into my hands in something approaching pristine condition, notwithstanding that the directory was then already more than 40 years old!
Today although I still possess it, it is an almost unrecognisable shadow of its once immaculate state! As my juvenility slowly gave way to adolescence I managed to write (things entirely unrelated to Sydney street maps), scribble and doodle on its quasi-virginal pages. Equally as bad, I haphazardly tossed the book around with such careless abandon over the decades that the front cover (a orangey-brown hard cover) became separated from the spine and eventually disappeared forever. Of course if cornered I could sheet home part of the blame for my repeated if unintended acts of vandalism to my parents who showed such egregiously bad judgement in trusting such a historically valuable tome to a ten-year-old Visigoth in the first place! But ultimately mine was the hand that caused the damage…I suppose if I was scratching round to find any compensating factors, I might say that at the very least no one can accuse me of neglecting my parent’s gift. Far from it! As a “child-distractor” Wilson’s Street Director performed yeoman’s service! I certainly made extensive, if not good, use of it.
The directory maps
The maps of each area of Sydney are neatly and clearly drawn by hand, but lack the computerised preciseness and uniformity of a map today…the cartographers in an effort to make the street names stand out by using large, bold type, have the effect of some disproportionality in the maps…streets look a bit out of alignment with each other (refer also to Eastwood below). Moreover, a critical flaw of the maps is the absence of a distance guide.
Curiously there are some variances in the kinds of type-face used in different maps, some use a Gothic font in contrast to the classic style. ◀ The Redfern-Darlington map at left differs from the type used in most maps. On a few seldom occasions maps make reference to the traditional, nineteenth century British land concept of parishes (eg, the Parish of Gordon)…this seems extraneous as the maps and the book largely follow a division by municipalities.
Gordon Rd – in the days before the upgrade to a highway and renaming
Very many of the street names that were current then survive to this day, although with some surprising little twists – the Pacific Highway, the seminal road leading north from the harbour bridge out of Sydney, was then called Gordon or Lane Cove Road. After Wahroonga it becomes Peat’s Ridge Road. Church Street, Parramatta, traditional haunt of car yards, was at the time alternately called Sydney Road.
Similarly Liverpool Road, starting from Parramatta Road, bears the alternative name “Great Southern Road” on the map (now the Hume Highway). The Princes Highway, the longest road in South-east Australia, is not to be seen! Curiously some suburbs or parts of suburbs are not shown on the maps at all!
The colliery (deepest mine shaft ever sunk in Aust.) in the 1940s (still operating at that time)
The suburb descriptors
One of the most interesting parts of the directory are the brief summaries of individual suburbs. Newtown is described as “thickly populated suburb adjoining the city” (well, no change here!), but its “numerous works and factories” have made way for the suburb’s relatively recent gentrification of modern living spaces☸. St Peters, just to Newtown’s south, is noted in the directory as being “for years the chief brick-making centre for the city” (these days the remaining, redundant kilns and chimneys are a historical curio within the undulating, expansive Sydney Park). Balmain, aside from its “fine public buildings” is “noteworthy as being the location of the deepest coal shaft in the Southern World – 3000 ft” (Balmain Colliery, corner of Birchgrove Rd and Water St, Birchgrove; an exclusive residential estate, Hopetoun Quays, today sits atop the former mine).
The Glebe
The map on page 223 details inner city Darlington (which in 1922 included the locale “Golden Grove”), then as now a suburb most approximate to the University of Sydney…the map shows that the grounds of the University had not at that time encroached onto the eastern side of City Road. The directory describes Darlington as “essentially a workers’ suburb, and being in close proximity to the City, is favoured by workers, who chiefly preside therein”.
Mascot with a racecourse where the airport should be!
Botany and Mascot are old adjoining suburbs in South Sydney. Map 151 (of Botany) and Map 405 (of Mascot) both document the existence at that time of Ascot Racecourse in Mascot…it was located on land adjacent to Botany Bay that now forms part of Sydney Airport⌽. Drummoyne is “a picturesque suburb which has made rapid strides since the tram was opened in 1902”.
Killara on Sydney’s leafy North Shore earns itself a stellar wrap that would make the burghers of the suburb today glow with pride: “(Killara) may justly claim to be both attractive and select. There are many substantial residences, the homes of the well-to-do citizen, and altogether the dwellings are of a superior class” (but not entirely exclusive because prestigious Hunters Hill also had “well-to-do citizens”).
East Subs’ residential paradise
Not to be outdone by the North Shore, the Eastern Suburbs gets even more of a ringing endorsement…the directory goes overboard with Vaucluse, and especially Watson’s Bay, lavishly portrayed as a “romantic looking and historical region, (standing) perhaps highest on the list of Australian ‘beauty spots’ “. Waxing lyrical, the writer ends with a frenzy of capitalisation extolling “the FORTIFICATIONS, LIGHTHOUSES, LIFEBOAT, SIGNAL STATION, and the WORLD-FAMED GAP, near the scene of the wreck of the ill-fated Dunbar” (a disastrous shipwreck occurring off South Head in 1857).
The other side of Strathfield municipality
Strathfield, seven miles west of the GPO, was lauded for its “numerous magnificent and substantially built dwellings (today we wouldn’t hold back, we’d simply say ‘mansions’), the homes of the wealthy citizen”. Strathfield’s maps include the locale of ‘Druitt Town’, now called South Strathfield. The map on page 583 includes the less salubrious side of the municipality (the Government Abattoirs and Rookwood Necropolis), a striking contrast with the world of Strathfield’s croquet-playing set.
Eastwood map, p235: site of future MQ University just to the south of Lane Cove River
On the other side of Parramatta River, Ryde (which in 1922 encompassed present-day West Ryde, North Ryde and Macquarie Park) is described as a “famous fruit-growing district on the Parramatta River”. The present location of Macquarie University in the northern reaches of the Eastwood district (set on generous acreage between Marsfield and North Ryde) was in earlier days the site of largely Italian market gardens and (citrus) orchards, interspersed incongruously with a greyhound racing track. An interesting feature shows a preponderance of street names around the present site of the campus with a martial theme – named after overseas battles (or campaigns) including Balaclava, Waterloo, Crimea, Culloden, Agincourt, Trafalgar, Sebastopol, Khartoum. When Talavera Rd was added later, this brought the number of streets commemorating the Crimean War alone to four.
Mosman, still today a suburb whose affluence makes real estate agents salivate at the prospect of dollar symbols followed by multiple zeros, was ever thus the sought-after destination for the cashed-up aspirational denizen…”(a thriving suburb) situated on a charming arm of Port Jackson…on the abrupt sides nestle red-tiled villas in many quaint styles of architecture…but a few years since the tramway rendered its beauties easily accessible to city men”, etc.⊡
Dee Why
Freshwater (on the Northern Beaches) is depicted as being a “pleasant one-half mile walk” from the Brookvale tram stop at Curl Curl, (comprising) “permanent camps and excellent surf-bathing”. Similarly, close-by Dee Why, reflecting its use as a vacation destination in the day, is a “delightful and charmingly situated sea-side resort (with) a lot to be proud of” – one factor of which presumably is the safety of its beach of which “drowning casualties are up to now unknown”.
Manly, by 1922 already long-established as a “must go-to” day trip for Sydneysiders, is described as a “delightful (ferry) trip down the harbour”…the writer is unrestrainedly fulsome in praise of its virtues, “Few resorts offer such a diversity of attractions – bathing in surf and baths, riding, driving, cycling, and motoring; while golf, cricket, football, la crosse, rifle, rowing, sailing, tennis, croquet, bowling clubs are all in full swing. Open air entertainments and band concerts nightly, and the usual attractions of a popular watering place”.
Vying with Manly for the beachside glamour stakes (then as now) was Bondi (subsumed under Waverley in the directory). Bondi Beach, in the words of Wilson’s, was equipped with baths and municipal “surf sheds” which accommodated 4500 men and 1500 women (clear evidence that 1922 was indeed a pre-feminist era devoid of the slightest pretence to gender equality!)…the (beach) park, the writer went on, “remodelled with the construction of the sea wall” was “now a rendezvous for natural pleasure seekers”. Beach accessible suburbs are always in demand with homebuyers, as underlined in the description of Maroubra – “a favourite place for surf bathers and is advancing with lightning rapidity and they are building fast there” (no hyperbole spared!)
South Kenso & Daceyville
Page 513 illustrates how much can change over lengthy periods of time. In 1922 Sydney’s second university, the University of New South Wales, was still 27 years away, but the future UNSW site was then occupied by Kensington Racecourse✾ and Randwick Park. Nearby was Randwick Asylum, now the Prince of Wales Hospital, and the Randwick Rifle Range, further south on Avoca St, is no more. Anzac Pde runs through the present suburb of Kingsford which in 1922 was called South Kensington with a small part of this suburb forming the locale of Lilyville.
Penrith & the (“world-class”) Nepean
Even suburbs located far the city CBD were given a positive spin by Wilson’s – Penrith, 34 miles from the GPO is described as “the centre of a fertile agricultural and fruit-growing district” only one hour’s journey by rail. The township is “well lighted with electricity and excellent water supply”. Among its attractions are the Nepean River, “world famed for its championship sculling courses, which is recognised by many as the best course in the world” and beautified by its “rugged grandeur of mountain scenery (which draws in) tourists and camping parties”. It also offers short day trips to the “delightful villages” of Mulgoa, Wallacia and Luddenham for shooting and fishing.
The township of Hornsby in the north-west of Sydney is the “centre of a prosperous district”. And with its high elevation (594 ft above sea level), Wilson’s Directory talks up Hornsby as a “metropolitan sanitarium”. The country of its environs “abound with charming drives and magnificent scenery”. Galston is “seven miles north by good metal road” (the “famous Galston ZIG-ZAG”).
Hurstville is depicted as “the centre of a large and progressive district…charmingly situated nine miles south by rail from Sydney”. It includes Mortdale, a township of recent growth, most of the property owned and occupied by the working class”. Also within the Hurstville municipality, the book refers to the suburb of Dumbleton – now called Beverley Hills (conspicuous today for its plethora of restaurants favouring Cantonese Hong Kong and Guangzhou cuisines).
The cover of my edition is long gone but the 1926 edition is very approx.
Pertinent omissions
There is an arbitrariness to the scope of the 1922 directory, it doesn’t extend to most peripheral districts like Liverpool, Blacktown, Campbelltown and Windsor/Richmond, all of which are included within the perimeters of contemporary greater Sydney. This perhaps provides a pointer to the trajectory of the early development patterns and communications of Sydney. Significant population and urban infrastructure reached districts like Penrith and even to parts of the Blue Mountains before it got to Windsor for instance☉.
‘ Gregory’s’ 1st street directory of Sydney 1934
PostScript: Swallowed up by Gregory’s expanding empire of streets? ‘Gregory’s’ before there was a Gregory’s?
In 1934 Gregory’s Street Directory (of Sydney Suburbs and Streets) made its debut, it was not long after this the Wilson’s Street Directory discontinued its annual publication and went out of business. I haven’t been able to ascertain for sure but I suspect a correlation between the two…it is quite feasible that the demise of Wilson’s was linked to the rise of Gregory’s, the latter becoming a household name in metropolitan street directories (and until the advent of GPS an unwaveringly constant companion of the majority of automobile glove-boxes).
Footnote: Taking the Eastwood map (above) as an example of the deficiencies of scale of the directory’s maps, the block between Herring St and Culloden Rd bisected by Waterloo Rd, encompasses the land occupied today by the rump of the campus of Macquarie University. This is some 16 hectares in area, but due to the use of large bold fonts for streets which condenses the sizes of blocks, the area seems quite small on the map!
More nomenclature change: the maps refer to the Municipality of Prospect and Sherwood, later the council was renamed ‘Holroyd’. Prospect retains its identity as a suburb but there is no longer a ‘Sherwood’ locality.
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✲ is Wilson’s Authentic Director, Sydney and Suburbs 1922 an antiquarian book? The key words in any definition of a antiquarian book are ‘old’ and ‘rare’. The perception of ‘what is old’ is subjective and can be related to a given individual’s experience. To me (even way back when I first got hold of it) it was old then and is ancient now! The quality of ‘rareness’ though might be harder to attribute to this book, short of conducting a survey of the remaining second-hand bookshops in this city (these days an increasingly less difficult task to accomplish) I have no earthly idea of how many copies there are in existence. It is certainly the only hardcopy of the publication that I have encountered in its physical state, however I am aware that multiple copies exist online in microfiche form. I suspect then that strictly speaking it probably falls short of the standard definition of antiquarian, so I am happy to go with any variation on a theme that retains that association…quasi-antiquarian, semi-antiquarian, even pseudo-antiquarian!
⌽ Mascot’s Ascot Racecourse (named after the premier horse-racing course in Britain) was the site from where the first aeroplane flight in Sydney took place (1911), [‘Ascot Racecourse, Sydney’, Wikipedia, www.en.m.wikipedia.org]
⊡ appropriately enough to match its elite and exclusive status, Mosman, along with North Sydney, are afforded the only inset maps in “three colors” in an otherwise entirely black-and-white publication (alas these too were casualties of my cavalier treatment of the book during my juvenile years – the tricoloured inset maps of the two suburbs were torn off long ago!)
✾ the maps of the South Sydney area indicate how littered it was with racecourses in 1922…in addition to Kensington and Randwick, there were racecourses at Ascot (see below) and at Eastlakes (Rosebery Racecourse) now occupied by The Lakes Golf Course
☸ the locale of South Kingston gets a nod in the book but these days this name for part of the Newtown suburb has long fallen into disuse and is obsolete
☉ the Penrith and Windsor districts are both roughly equidistance from Sydney (moreover, Windsor was settled as early as 1791, a mere three years after the British takeover of the continent!). Blacktown’s omission is even more puzzling, being considerably closer to the GPO than Penrith!
Pneumatic tubes transit (PTT): a system that propels cylindrical containers through networks of tubes towards a chosen destination using compressed air or by partial vacuum [‘Pneumatic tubes’, Wikipedia, http://www.wikipedia.org]
PTT, “Whoosh✱ and Go!” technology, the 19th century’s version of “Tap and Go!”Jason Farman has described the application of pneumatic tubes to postal services in the 19th century as “the instant messaging systems of their day”. According to Farman, being able to use pneumatic post to communicate, gave people in the nineteenth and twentieth centuries an “instant connexion”…pneumatic post meant that they were able to “keep in touch all day long”⊡. Moreover people saw the pneumatic tubes’ facility to deliver articles rapidly as “a symbol of modernity” [‘Pneumatic tubes: the instant messaging technology that transformed the world’, James Farman, interview with ABC Australia, 13-Jun-2018].
Sketch of AE Beach’s pneumatic transit tunnel
America’s first pneumatic-powered subway
American entrepreneurs were following developments in pneumatic tube transport in Europe in the second half of the 19th century and were keen to move into the field. It fell to inventor and publisher of the magazine Scientific American Alfred Ely Beach to lead the way. Beach was less interested in the postal service than in moving people. In 1867 he trialled the first subway passenger service, later named the Beach Pneumatic Transit, in New York City. Initially the service was popular with the public, but Beach experienced opposition from Tammany Hall♉ and its notorious head ‘Boss’ Tweed, and from other vested business interests. Beach got round opposition by flagging that he would also construct a pneumatic tube to cart mail underground around NYC. Unfortunately Beach ran into both technical difficulties and funding issues (exacerbated by the financial crisis of 1873) and the project to extend the subway was stillborn.
PPT system despatch point (Washington DC, early 1940s)
Manhattan mail transfer – the eastern seaboard subway
It wasn’t until 1893 that an urban mail service in the US introduced the PTT system, and this was in Philadelphia (beating New York by four years). The New York City system linked the General Post Office with 22 other post offices covering an area of 27 miles. At its optimal level of output, five capsules each containing around 500 letters could be despatched in a minute (one every 12 seconds travelling at 30-35 mph). A government estimate in the day put the total transmitted by tube at 20,000 letters per day![‘The Pneumatic Mail Tubes: New York’s Hidden Highway And Its Development’ (Robert A Cohen, Aug 1999), www.about.usps.com]. Several other American cities followed Philadelphia and New York in establishing underground mail networks – Boston, Brooklyn (a separate entity to New York before the construction of the Brooklyn Bridge), Chicago and St. Louis.
Manhattan pneumatic mail route
Despite the clear advantage PPT had in speed of delivery over conventional mail despatch, it did not make the hand-delivered mail system redundant. At its zenith in New York PPT never accounted for more than about one-third of the Post Office’s total mail delivery. Other cities in the US were similar although Boston reached about 50 per cent at its maximum output!) [Cohen].
PPT systems, limitations and drawbacks
By the early 20th century the cost for US service providers using the pneumatic tube system had become prohibitive. By 1918 the Post Office was forking out $US17,000 per mile per year [‘Underground Mail Road: Modern Plan for All-but-forgotten Delivery System’, (Robin Pogrebin), New York Times, 07-May-2001]. In addition to cost there were other flaws in tubal delivery that made it impractical. Many mail items were too large and bulky to fit into the tube carriers, and when they did fit, the system was far from seamless. It took critical time to unload heavy items at the receiving end and sometimes the system would clog up during periods of high traffic (requiring delays in the delivery process while workers located the obstructing parcel and dug up the street to get to it) [‘Pneumatic Tubes’, Dead Media Archive, (NYU – Dept of Media, Culture and Communication), www.cultureandcommunication.org].
A maze of tubing
In addition to cost, other early 20th century factors that prompted the decline of the pneumatic post in America include the growing volume of mail, limited system capacities, and the belief that the advent of the automobile made the tubes “practically obsolete” [Annual Report of the Postmaster General, (Washington DC: Government Printing Office, 1918. pp. 19–22. Retrieved 8 June 2015, cited in ‘Pneumatic tube mail in New York City’, Wikipedia, http://www.en.m.wikipedia.org].
Pneumatic tube systems tend to work better on a smaller, more localised, scale – as evident in the type of enterprises and institutions that productively employ the pneumatic tube technology today (as outlined in the PostScript following)…they are also more effective (and more economical) over shorter distances, such as encompassing a single city only.
PostScript: Pneumatic tubes in the contemporary world
In the age of fiberoptics and the internet, it might be thought that there is no place for old technologies like PTT. But pneumatic tube systems today still play a vital function in the everyday workings of organisations and institutions including banks, hospitals, supermarkets, department stores, libraries and other public utilities♮.
Technology watchers have hinted at the possibility of a Renaissance of pneumatic technology. Jacob Aron has made the perceptive point that even in an age where online communication is paramount, there is still the physical necessity of transporting goods by road. This is where pneumatic tube networks have a competitive edge…Aron poses the question: “can tubes be (a) more efficient and greener” way of delivery❂ [‘Newmatics: antique tubular messaging returns’, (J Aron) New Scientist, 13-Aug-2013, www.newscientist.com]
Roosevelt Is: narrow stretch of land 3.2km long in NY’s East River
Many areas of society unrelated to postal systems currently use PTT…on Roosevelt Island (NYC) the locals have used pneumatic tubes to dispose of its garbage since 1975 (something similar has been proposed for Manhattan to tackle its mountains of trash) [‘Proposal maps out pneumatic tubes system to take out New York’s trash’, (Dante D’Orazio), The Verge, 24-Sep-2013, www.theverge.com].
Many hospitals rely on networks of tubes for their internal communications – the prestigious Stanford Hospital in California uses the technology to move blood, lab samples and medicine around the facility. Pneumatic tubes systems today are of course computer-driven and much more complex, Stanford Hospital’s network contains 124 stations. Future applications for PTT continue to be visualised…entrepreneur/inventor Elon Musk has proposed that his pneumatic-powered ‘Hyperloop’ will be capable of transporting passengers in a pod between cities at 800 mph [‘Underground Mail’, (2017), www.computerimages.com/musings].
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✱ the sound the pneumatically propelled mail capsules made when they went down the shute
⊡ a characterisation very familiar to today’s social media dominated world
♉ the Democratic Party political machine which had a stranglehold on NYC politics at the time
♮ such as the Library of Congress (US) and the Russian State Library in Moscow. The ongoing utility of pneumatic networks contrasts with the bad wrap pneumatic tube systems have received from writers of fiction over the years, eg, works such as 1984 and the movie Brazil have tended to equate them with “creaking, bureaucratic dystopias” [Jacob Aron]
❂ although the other x-factor player here is 3D-printing – if it realises its full commercial potential it would tick those same boxes with perhaps greater utility
In this modern world of 24/7 online global communications and instant messaging systems, it is interesting to take a look at an earlier age’s emerging technology which had the objective of fast-tracking communications between people in different parts of rapidly modernising cities. This novel way of moving mail around drew on the subterranean reaches of urban centres to create channels for transporting them.
Wm Murdoch
It started with the London Stock Exchange in the 1850s…traders trying to buy and sell at the most propitious times of the trading day relied on telegraphs to communicate quickly with their people. The problem at the time was that telegraphs were regularly subjected to delays and hold-ups. A swifter way to communicate was needed for business success, and the technology to do so already existed in Scottish engineer William Murdoch‘s invention of the pneumatic tube in the 1830s.
Enter J Latimer Clark, an electrical engineer, with a patent “for conveying letters or parcels between places by the pressure of air and vacuum”. Clark’s delivery system powered by compressed and depressed air was implemented to connect the London Stock Exchange with the HQs of the Electrical Telegraph Company through a 660-foot long pneumatic tube. By the 1860s the stock exchanges in Berlin and Paris had followed London’s lead. Postal services for both commercial and personal transmittances were a natural fit for the pneumatic tube. Liverpool, Manchester, Birmingham and Dublin got their own networks, whilst on the Continent, Berlin’s Rohrpost was introduced in 1865 and Paris went public with Poste Pneumatique in 1879. Other cities got in on pneumatic post and the practice spread to places as far away as Melbourne and Buenos Aires, and most anywhere in between.
The London pneumatic tube mail train at its formative stage!
London Pneumatic Despatch Company
In 1859 Latimer Clark with Thomas Webster Rammell put forward a proposal for an underground tube network in Central London. The city’s General Post Office was chosen as the nucleus of the network because it was “the routing hub of the whole country’s” transport system [Julian Stray]. The two engineers with cashed-up and influential backers formed the London Pneumatic Despatch Company to build a large-scale, underground pneumatic railway✱ with the purpose of transporting mail bags and small parcels on railcars through tunnels. At first LPDC’s prospects of success looked promising, but several developments and reversals (a financial crisis in 1866, logistics problems, technical drawbacks, and the Post Office getting cold feet over the project) saw the Company fold and its operations close in the 1870s [‘London’s Lost Pneumatic Railway: The World’s 2nd Oldest Underground’, (Long Branch Mike, 12-Apr-2015), Reconnections London Transport and Beyond, www.londonreconnections.com].
(Photo: Science Photo Library)
Despite its failures LPDC’s underground railway did capture the public’s imagination and inspired other imitators. There were experiments elsewhere in the 1860s to try to establish a viable pneumatic train network – at Croydon, Devon and Dublin. Ultimately though, for a variety of reasons, these came to nothing [‘London’s Victorian Hyperloop: the forgotten pneumatic railway beneath the capital’s streets’, New Statesman, 18-Dec-2013,www.newstatesman.com].
Capsule [National Postal Museum (Smithsonian)
The principles of “blow and suck”
The pneumatic post services of the day used pressure and air vacuums to transmit mail through a network of tubes. The process went like this: people wanting to expedite the delivery of an important document would take it to the post office where it would be rolled up and placed inside a metal or aluminium capsule. A postal clerk (in New York these employees were known as ‘rocketeers’) would drop the capsule into a hatch which corresponded to the marked lane for its intended destination…by pressing a button the capsule was transported by compressed air through a network of tubes beneath the pavement. Air from the transmitting end blew the capsule in a forward direction along the tubes. At the receiving end of the line a machine would suck the propelled capsule towards it (in the same way the suction of a vacuum cleaner functions!).
A cutting edge over conventional 19th century delivery modes
Using pneumatic power to transport letters (subterranean mail) and other items had readily apparent advantages in its unfettered immediacy…the reliance on horse-drawn vehicles and messengers on bicycles meant that delivery was impeded by the ever-increasingly congested streets of burgeoning cities, pneumatic post transported underground had no such obstacles and delivery was infinitely faster!
Parisian Poste Pneumatique network (Musée de La Poste)
Paris: Poste Pneumatique
Paris, as much as any modern metropolis, wholeheartedly embraced pneumatic tube transportation from the get-go! By the 1930s, when the service was at its peak, Paris had some 466 kilometres of pneumatic tubes. Cost was and remained an issue though…in 1975 the cost of sending one pneu☯ in Paris was eight-times that of having a posted letter delivered. As the 20th century rolled on patronage of the pneumatic post system dwindled, in 1984 Poste Pneumatique closed down for good! It’s inevitable demise was a combination of the service’s high cost and the superiority of newer communications technology (fax, telex) which made it obsolete [‘Pneumatic tubes and how mail was moved in Paris for more than a century’, Larry Rosenblum, (World Stamps), 02-Oct-2016, www.linns.com]
Prague PTT engine room
Bohemian Express Post: Prague’s pneumatic post system
Prague’s pneumatic post is the only surviving post system of this kind still intact in the world. It entered service in the Czech capital in 1889, the fifth in the world to be connected, after London, Vienna, Berlin and Paris. The Prague system operated from a central point, the main post office in Wenceslas Námêstí, and conveyed letters, documents and information to other post offices in the city, to government offices, to banks and to other important institutions. It started with the despatch of mainly telegrams, later telexes were sent through this medium. The city network of tubes covered a radius of 60km. Around 1970 a test was done of its speed of service vis-vís an on-road messenger delivery service. The pneumatic tubes won, delivering a capsule of 50 telegrams to Prague Castle in eight minutes✾ [‘Pneumatic Post System in Prague’ (Jakob Serÿch, June 2004), http://www.capsu.org/features/pneumatic_tube_system_in_prague.html]. In the 1990s Prague pneumatic post was despatching up to 10,000 documents a day! Unfortunately the European floods of 2002 put paid to the Czech pneumatic postal service, Telefonica decided the repairs needed to the tubes was too costly and in 2012 sold the system to Czech software entrepreneur Zsenêk Dražil, an enthusiast of old technologies. Dražil’s ultimate plans for the service are still unclear, but he has hinted at the tourism possibility of it being opened up to the public as a “national technical monument” [‘Radio Praha ❘ in English’, (Daniela Lazarová, Czech Radio, 11-Oct-2003 and Jan Richer, ‘New Owner Promises Bright Future for World’s Largest Pneumatic Post System’ Czech Radio, 08-Aug-2012)].
PostScript: A sample of anecdotal stories associated with pneumatic tube systems
Stories abound about the unauthorised and unorthodox uses of the pneumatic tube networks in different countries by postal workers. Its a trait of human nature that employees in the familiarity of their work environs are known to “push the envelope” and try to get away with things wherever they possibly can, and this sphere of work was no different. Staff of the Prague pneumatic tube system for instance (according to some of the stories told) were known to use it to send sausages and bread rolls to each other! Similarly in New York it was an open secret that post office workers on Manhattan used the system to receive their daily lunch orders from a well-known Bronx sandwich shop…the shop would dispatch the lunches via the tubes from the Bronx PO to the Manhattan PO! The pneumatic tubes were also sometimes utilised to play jokes on staff at another PO, eg, live mice sent through the tubes to get a predictable reaction from the startled female employees receiving the canisters at the other end; a live tortoise-shell cat returned in the same mail bag in which it had been sent, and so on.
Receiving point with collection trays
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✱ the world’s second underground railway after the limited line from Paddington to Farringdon opened in 1863
☯ an item sent by pneumatic post in France was known as a pneu
✾ a similar test was conducted earlier on the New York PTT system where the underground tube delivery easily eclipsed a motor vehicle delivery which had to contend with heavy Manhattan traffic
🇲🇨 Monaco: millionaires’ playground on the western Mediterranean
The tiny hereditary principality of Monaco on the French Riviera/Côte d’Azur has long-held a reputation for being a playground of the rich and famous (thanks to its high cost of living and its tax laws)✱, in addition to being a micro-state with a high-profile royal family (The Grimaldis) whose capacity to attract publicity is grotesquely way out of proportion to the entity’s minuscule size and insignificant political importance. Monaco is also famous for its industries – gambling⊞, banking and tax avoidance. It is this last area of finance that was the crux of a brief 1960s confrontational episode in the country’s historical relations with its larger regional neighbours.
Hercule Harbour, Monaco
In October 1962 the French government of Charles De Gaulle imposed a blockage of Monaco’s main port. The prospect of an advanced Western European power threatening a tiny territorial enclave – possessing a microscopic gendarmerie and no army or navy – with force must have struck outsiders as a farcical situation…in reality the blockade stayed in place ever so briefly although it was not officially lifted until Easter 1963. The Franco-Monégaseque ‘Crisis’ was completely in the shadow of the terrifyingly real crisis occurring in Cuba at the same time, the international missile crisis standoff between the global Cold Warriors, USA and the Soviet Union [Fabien Hassan, ‘Lessons from history – The Monaco crisis from 1962-1963 and the emancipation of tax havens’Finance Watch, 27-Apr-2015, www.finance-watch.org].
The royal palace on “The Rock”
The nub of the conflict
Monaco’s historical practice of not imposing any direct income tax on its residents (including those migrating to the Principality from France) and having minimal taxes on business had a deleterious outcome for France – a significant loss of revenue for the French coffers. In this regard De Gaulle had a legitimate gripe against Monaco for letting wealthy French persons evade their tax obligations to the Tricolore Republic…this was especially galling to the French President as it was France that footed the entire bill for tiny Monaco’s national defence (plus forking out some other financial outlays as part of the two nations’ special relationship). At the time the French media was stridently doing its utmost to drum up national disaffection with the Monaco situation⊛.
⍍ Grace Kelly’s 1955 Hitchcock film made on location in the French Riviera that led to that momentous meeting between America’s “patrician pure-bred” star actress and Monaco’s bachelor monarch – and a subsequent change of careers and destinies!
Too much American influence in a French ‘pond’?
De Gaulle was also apparently concerned about the growing influence of Americans over Prince Rainier’s governance of Monaco…in so doing they were stepping on the toes of France, Monaco being clearly within the French sphere of influence (it also reflected De Gaulle’s wider antipathy to the ‘Americanisation’ of Europe!), a concern he harboured even before Rainier’s marriage to US film star Grace Kelly! Prior to that, Rainier had already engaged Americans as some of his closest advisers to assist him in his day-to-day duties and personal affairs✥. The 1962 political tensions between the two countries can be traced back to events in 1959, namely the Prince’s decision to suspend the Constitution (interpreted by France as a Monégaseque move towards securing US support) [Hassan, ibid.].
1950s Sister ‘coup’: Usurping Rainier
Apparently not long after Rainier ascended the throne (1949), his older sister, the Paris-born Princess Antoinette, tried to exploit a Monégaseque economic crisis at the time due to a series of reckless state loans…the Princess’ intrigues involved trying, unsuccessfully, to convince Monaco’s oligarchs that they should replace her (then) unmarried and childless brother with her legitimated son Christian as prince (with herself as regent until he came of age) [‘Monaco’s Machiavellian Princesses’, 27-Apr-2013, www.royalfoibels.com]. In the 2014 film, Grace of Monaco, to heighten the dramatic narrative of the movie, the episode of Antoinette’s attempted coup d’être (1950) is clumsily and inaccurately interwoven into the story of the 1962-63 crisis [Alex Von Tunzelmann, ‘Grace of Monaco – historically accurate? you’ve got some de Gaulle’, The Guardian, 4-Jun-2014, www.theguardian.com].
The tourist-friendly Grimaldi palace
Crisis averted…through compromise
In the end a compromise was negotiated with France so that French citizens living in Monaco for less than five years were now to be taxed – at French rates, and Monegasque businesses doing more than 25% of their business outside the Principality had to pay corporate taxes for the first time, with all the revenues going back to the Treasury in Paris. The Franco-Monégaseque compromise, with some revisions from time to time, is still in effect today [Hassan, op.cit.]
Footnote: Historical roots and etymological nomenclature curio
The name ‘Monaco’ derives from monos (single, alone) and oikos (house), conveying the meaning, a people “living apart” or in a “single habitation”. Monaco’s origins were as a Greek colony founded in 6th century BCE although the first inhabitants were Ligurians, an ancient Indo-European tribe – Monaco was absorbed into the Roman Empire, later invading Saracens gained control of the territory. Eventually it fell under the control of the seafaring Genoese. After one of these, François Grimaldi, disguised as a Franciscan monk, established a hold over “The Rock” in 1297, the independent status of Monaco has been periodically punctuated by the intervention of outside forces – viz. taken by France for a period in the 14th century and then retaken from 1789-1814, under Spanish protection briefly in the 16th century, and then under French protection for most other intervals of time since the Middle Ages.
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Monaco Palace ‘sideshow?’
PostScript: Personal impressions … less than overwhelming
When I visited Monaco in 2009 I was taken with just how French it was…hardly surprising given that the French Republic surrounds the tiny monarchy and French residents heavily outnumber the Monégaseque!❂ We were touring the south of France in summer and staying at Cannes, just a short drive down the road from the pocket-sized Principality. We had an early dinner at a great spot overlooking the harbour before popping into Monte Carlo to do the obligatory tourist thing of visiting the Casino (boring, bereft of atmosphere…major anticlimactic letdown that turned out to be!). Then on to the Grimaldi royal palace on “The Rock”. The take-away message I took from the royal seat of power was that it was rather akin to visiting the palatial residence of a comic-opera royal family, something along the lines of the fictional Ruritania or the Grand Duchy of Fenwick. I think the Lilliputian nature of Monaco, the sheer lack of size of the Principality adds to this notion. Monaco is less than two square kilometres, which is on the slim side for an average Sydney suburb, infinitesimally minute for a national entity – only Vatican City is smaller! One other thing that struck me on arrival at the Palace entrance and whilst strolling around its grounds, was the relative lack of security in existence (like there just wasn’t anything that important to safeguard!). The incongruous presence of odd vehicles and vessels from some sort of expeditionary enterprise within the grounds, suggesting a museum-like setting, did not reinforce an impression of a serious regal residence, say, as at Buckingham Palace. But the dubious significance of the Monégasque Principality aside, aesthetically, Palais du Prince, whilst not exactly Versailles in scale or opulence, nonetheless comprised several fine, stately buildings. The big chunk of rock the Palace sits on is a good place to take in wide views of the harbour, La Condamine with its flotilla of moored millionaires’ yachts, and of Monte Carlo across the Hericule. Tour over, we headed out of the grounds, through the tunnel to the coach taking us back to our Cannes hotel, feeling as if we hadn’t really ever left France, but had just visited a uniquely peculiar part with a slightly ‘Fantasyland’ feel about it!
The Mouse That Roared – a 1959 British satire about a fictional speck of a micro-state called ‘Grand Fenwick’ which declares war on the USA
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✱ a 2014 study revealed that 30% of Monaco’s population (around 38,000) were millionaires [‘One in Three is a Millionaire in Monaco: Study’, www.ndtv.com]
⊞ associated with Monte Carlo Casino, a fame reinforced by James Bond movies, but Monacoan gambling was long controlled by Greek tycoon Aristotle Onassis before his eviction by Rainier
⊛ the French press zealously took it to extreme lengths, even calling for the AS Monaco football club to be kicked out of the French championship [Hassan, op.cit]
✥ An American clerical oblate, one Father Tucker, was front and centre in the body of royal advisers at the palace…one of his very specialised roles reportedly was to select suitable, available Catholic girls for the very eligible bachelor prince, ‘Who is Father Francis Tucker in “Grace of Monaco”? This Priest Played an Interesting Role in History, Bustle, 26-May-2015, www.bustle.com
❂ only around 22% of the Principality’s population are native Monégaseques, about 47% are French or of French descent and 18%, give or take, are Italian, [‘Countries and their Cultures Forum – Monaco, www.everyculture.com/Ma-Ni/Monaco.html]
The seeming ubiquity of Woolies?Woolworths is an internationally known name synonymous with traditional merchandising budgeted within the reach of the average consumer. When I was a kid I thought that the Woolworths variety store-cum-supermarket chain in cities and towns strewn all around Australia and New Zealand was an offshoot of the famous pioneering Woolworths “dime and nickel” company in the US. Until I actually went to South Africa I wasn’t even aware that there was Woolworths in that country as well. When I did discover its existence travelling around the RSA garden route I initially assumed that it too was a spoke in the far-reaching American F W Woolworth imperial retail wheel.
Only much, much later did I learn of the total absence of any business or corporate connection between the three ‘Woolworths’ entities (sometimes displayed in singular form, sometimes plural, sometimes with an apostrophe). Both the retail chain in Australasia and the one in South Africa got the name ‘Woolworths’ through the same legalistic loophole. When a collection of businessmen began the Australian retail enterprise they acquired the name because the original American company had not registered the name in NSW (or anywhere in Australia). Thus the first store in Sydney CBD’s Imperial Arcade in 1924 was called Woolworths Stupendous Bargain Basement. The transition to the eventual nomenclature used (simply ‘Woolworths’) was not quite that simple. Before settling on ‘Woolworths’, the first notion that came to Percy Christmas (Woolworth’s inaugural CEO) and his directors was to call it ‘Wallworths Bazaar’, a pun on the American retailer’s name[1].
Somerset Mall ‘Woolies‘
Western Cape RSA
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Similarly, the South African ‘Woolworths’ acquired the name because there was no legal trademark impediment to it using the name in South Africa. Founder Max Sonnenberg and his son Richard started the first Woolworths store in Cape Town in 1931, and like the Australian namesake it has never had any financial connection to the prior existing F W Woolworth Co business. Woolworths South Africa-style was a different sort of retail animal, modelling itself on the upmarket British Marks and Spencer rather than the F W Woolworth bargain basement store concept[2].
Woolworths ground zero: Creating the retail templateThe American phenomenon started in 1878 when Frank Winfield Woolworth, son of a poor potato farmer, started his first store in Utica, New York, the basis of his business strategy was to sell a wide selection of items at low price (initially all the merchandise was set at 5 cents each). The store was poorly located and failed abjectly but Woolworth persisted, opening a second dry goods and variety store the following year in Lancaster, Pennsylvania, and the formula eventually caught on. The entrepreneur expanded his store concept to a “five-and-dime” one (items set at 5¢ and 10¢ each).
The early F W Woolworth & Co
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Woolworth’s brother Charles (known as ‘Sum”) got in on the business, starting up his own retail stores soon after his older brother’s. Frank expanded F W Woolworth Co into a chain by mergers and partnerships with his cousin Seymour Knox I and with other relatives and friends❈. By gathering together a little club of owners Woolworth could purchase large quantities of goods directly from the manufacturers. As the US stores multiplied and prospered, Frank, remembering his own disadvantaged childhood, took pride in the fact that the “ordinary man” could afford to buy from Woolworth stores[3].
From 1890 FWW would embark on annual (sometimes biannual) large-scale buying trips to Europe, always paying the suppliers in cash on principle. Exposure to European manufacturers promoted awareness of market potentiality in other countries and may have prompted Woolworth’s eventual decision to branch out internationally. Anglophile Frank had his eye firmly on Britain as his 1890 trip diary indicates: “a good penny and sixpence store, run by a live Yankee, would be a sensation here”[4]. The chain had already extended north to Canada and subsidiaries were launched in the UK, Germany, Austria, Mexico and Cuba. The UK Woolworth sub-set itself opened stores in the Republic of Ireland, Palestine, Cyprus, the British West Indies and Southern Rhodesia (now Zimbabwe).
FW Woolworth store in Glasgow (Source: Pinterest UK)
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British F W WoolworthWoolworths came to Britain in 1909 with the first store, selling clothing, stationary and toys, opening in Liverpool in northern England (family cousin Fred Moore Woolworth was the British arm’s first managing director). The pricing strategy matched the US “five-and-dime” one with items selling at 3d and 6d. The British chain flourished from the 1920s on, becoming a household name through the UK, so much so that most consumers in Britain and Ireland believed that their ‘Woolies’ shops were a local invention, “where sixpence once went a long way”[5].
Like the parent company in America, British Woolworths proved a retail innovator. The Liverpool store introduced lunch counters (followed by Blackpool and other large UK stores)回, which were the precursor to the standard food courts which became integral to shopping malls later in the 20th century[6]. The Woolies restaurants also adhered to the 3d and 6d price formula, although by 1941 there had been some increases, eg, a split lobster salad had risen to the princely sum of one shilling (12d or 1/-)[7].
Woolworth UK’s rise and fallThe 1930s marked a high point for Woolworth in the UK … outside of the Christmas season the chain was opening a new store every five days! During the price inflation of the late 1930s the Woolworth giant kept the sixpence limit on its prices by asserting its buying power to coerce suppliers into accepting lower margins for their goods¤. By 1958 F W Woolworth Co had amassed 1,000 branches in Britain[8].
The first signs of the downturn in Woolworth UK’s fortunes can be traced from the 1960s, the parent company forced the British arm into introducing Woolco, a series of one stop shops usually located out-of-town. These did not succeed, as they had in America because the UK lacked the US’s higher car ownership which suited out-of-town shopping. This was also an unwise move away from Woolworth UK’s strength, its high street stores. The UK business’ problems continued in the 1970s – Britain’s decimalisation in 1971 caught Woolworth unprepared because unlike other retailers it had resisted the move to self-service. The upshot was costly to Woolworth (£5 million and a five-year process trying to replace their over-abundance of store cash registers. Also in the 1970s a number of Woolworth stores in Britain and Northern Ireland burned down, attributed at least in part in incompetent and short-sighted management … resulting in brand damage to the trusted F W Woolworth name from which it never entirely recovered[9].
Closing down: Bromsgrove store (Worcs.)
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British elements (principally Kingfisher plc) finally gained a controlling interest in the UK enterprise in 1982, but Woolies, this British institution on the retail landscape ultimately fell foul of intense competition from cut-price retailers … many customers defected to British supermarket giants Tesco and Sainsbury’s. Falling sales❀ and a cash-flow crisis affected its entertainment arm. The downturn was exacerbated by the adverse effects of the Global Financial Crisis of the late 2000s. In 2007 Britain’s Woolworth Co experienced its first trading loss in 95 years … and much worst was to come. Over Christmas 2008 807 stores in the UK closed. With Deloitte’s administrating, the whole Woolworth chain had a complete shutdown over a 41 day period (months short of what would have been 100 years of operation in the UK). The carve-up saw restructure specialists Hilco Capital acquire the retail business and the Shop Direct Group (owned by the Barclay brothers) taking over the online retail sector … this too however was closed down in 2015[10].
Rise and fall of the prototype organisationThe America parent Woolworth company was spectacularly successful in creating a chain of “cash-and-carry” dime stores. By 1977 there were 3,414 stores in the US, Puerto Rico and the Virgin Islands and 1,884 outside of the US[11]. The pioneering merchandising methods of F W Woolworth with the founder’s emphasis on sales and customer service, and direct purchasing, established a solid base to enable his successors as CEO to continue to sustain and grow the Woolworth retail empire. However after WWII there was shift in the nature of shopping propelled by the burgeoning car culture … retailing in America and elsewhere moved on from the high street stores which had been the mainstay of Woolworth to the new malls located in the suburbs. Woolworth tried slowly to adjust but found itself less able to adapt to this change than its major competitors.
Woolco, Canada (Photo: Reddit)
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By the 1960s the original five-and-dime stores had morphed into other commercial entities: whilst the Woolworth flagship was retained there was a move into speciality stores and the large discount retail chain Woolco, which had a measure of success. Through the eighties and into the nineties the ailing FWW giant lingered on.
La Crosse (Wisconsin) store, 1992 (Source: La Crosse Tribune)
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In 1997 F W Woolworth Co in the US folded, following years of diminishing competitiveness with its rivals (the chain in 1996 posted a crippling loss of $US37 million). The Venator Group took its place and F W Woolworth ceased to be a trading name. Venator’s retail focus fixed on the foot ware market with Foot Locker and Kinney Shoes. This was a sudden end to a gradual process by which Woolworth Five-and-Dimes were overtaken by the likes of more dynamic enterprises, Wal-Mart, Kmart (formerly Kresge), Target and other commercial players who adapted to change far better than the veteran Woolworth[12].
F W Woolworth Co ultimately suffered the same fate as the British Woolworth – an accumulated obsolescence. As Jennifer Steinhauer summarised its plight, it had “faded in the collective memory of a nation warmly nostalgic for old stores but not willing to shop in them”. The pioneering retailer had become increasingly irrelevant to American consumers … the advantage of convenience it once possessed (where shoppers could get “lipstick, diapers and a milk shake at a discount, all under the one roof”) was now all-too-easily available at the abundance of handy drugstores, supermarkets and discount stores popping up everywhere[13].
PostScript: South Africa and Australia – Higher and HigherWhilst the Woolworths brand name no longer decorates the urban commercial landscape in the US and Britain, the Woolworths name in the Southern Hemisphere is a different story. Over the last 20 years both Woolworths Holdings Limited (RSA) and Woolworths Limited (Australia) have experienced impressive growth through expansion and diversification.
Woolworths Holdings Ltd (WHL) achieved a net income of R3.12 billion in 2015 as a provider of clothing, footwear, accessories, groceries, beauty products, home wares and financial services. WHL has pursued an aggressive campaign of expansion, taking over companies in South Africa (Mimco, Trenery) and Australia (David Jones stores, Country Road, Witchery).
Woolworths Casula (NSW)
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Woolworths Limited (WL) made a net surplus of A$1.2 billion in 2016 with its variety stores (Big W), supermarkets (Countdown, Food For Less, Safeway, Flemings, etc), grocers (Thomas Dux). Part of the company’s impressive growth has come from diversification – into petrol stations (Caltex-Woolworths) and into liquor stores (taking over BWS and Dan Murphy’s), hotels and gambling (Australian Leisure and Hospitality Group)[14]. The Aussie Woolworths brand currently maintains a presence in Australia, New Zealand and India▤. Business success aside, it has not been all smooth sailing for the RSA and Australian companies … both WHL and WL have been embroiled in controversies in their home countries from time to time. In 2010 WHL removed Christian magazines from its shelves (a financial decision by Woolworths), provoking a huge outcry from the powerful Christian community in South Africa with WHL having to back down[15]. WL’s move into alcohol has been extremely profitable (together with Coles it is estimated to account for ¾ of Australian liquor sales). Allied to this is Woolworths’ impact on poker machine gambling … through its ALH arm it has in excess of 12,650 pokies in pubs. Anti-gambling campaigners have accused WL of targeting children to push up pub sales by offering loyalty reward cards to frequent gamblers (and placing “Kid’s Club” playgrounds close to the poker machine areas in its hotels)[16].
﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌❈ FWW’s mergers absorbed Knox & Co, Kirby & Co, Charlton & Co, C S Woolworth & Co and Moore & Co
回 the concept was an elaboration on F W Woolworth’s ‘Soda Fountain’ introduced in his Lancaster (US) store in 1907
¤ a similar bullying practice to that used by Woolworths Australia (and its rival Coles) this decade against local manufacturers
❀ one exception being the old Woolies favourite, the pick ‘n’ mix confectionary lines
▤ in 1989 Industrial Equity Ltd (IEL), part of the AdSteam Group (Adelaide Steamship Company), successfully took over Woolworths Australia … however the Woolworths company was subsequently publicly floated several years later
[2] after WWII the South African firm actually had a business relationship with Marks and Spencer for a number of years, ‘Woolworths (South Africa)’, Wikipedia, http://em.n.wikipedia.org
[3] One incident in particular resounded with him, being unable to afford an item in a Watertown store as a child, ‘Biography of F.W. Woolworth’, (Woolworths Museum),www.woolworthsmuseum.co.uk
[4] J Robinson, ‘Woolworths: the rise and fall of the departmental store giant’, The Guardian (London), 20-Nov-2008, www.theguardian.com
[5] ‘Christmas Past and Christmas Presents’, (Woolworths Museum),www.woolworthsmuseum.co.uk
[6] ‘The British Lunch Counter 1938-41’, (Woolworths Museum),www.woolworthsmuseum.co.uk
[7] ibid.
[8],’A potted history of F.W. Woolworth’, (Woolworths Museum),www.woolworthsmuseum.co.uk
[9] ibid.;’Preparing for decimalisation “D-Day” on 15 February 1971′, in ibid.
[10] ibid.; Robinson, op.cit.
[11] J N Ingham, Biographical Dictionary of American Business Leaders, Vol. 4
[12] F W Woolworth also tended to cling to outmoded lines, eg, in its toy department old-fashioned puzzles and no action figures, J Steinhauer, ‘Woolworth’s Give Up the Five-and-Dime, New York Times, 18-Jul-1997, www.nyt.com
[13] Woolworth Co’s competitors ultimately offered more choice of products, quicker checkouts and often lower prices,ibid
[14] Woolworths’ move into hardware stores via Masters Home Improvement was far less successful with the retail giant getting badly singed, E Stewart, ‘Masters: Five reasons Woolworths is pulling the plug on struggling hardware chain’, 18-Jan-2017, ABC News, www.mobile.abc.net.au
[15] ‘Woolworths (South Africa)’, op.cit.
[16] L Mulligan, ‘Woolworths under fire from anti-poker machine groups for introducing gambling rewards card in pubs’, ABC News, 17-Sep-2015, www.abc.net.au
The Hydro Majestic Hotel stands on the upper slopes of the Megalong Valley in the Blue Mountains, about 116 kilometres west of the Sydney CBD. Last December it re-opened for business six years after it’s resale and interim closure in 2008. The new owners, the Escarpment Group (a consortium of Sydney developers headed by Huong Nguyen and George Saad), have an ambitious vision for the Medlow Bath hotel, including an extension to its facilities and services, and a major renovation of the once great Blue Mountains landmark to restore some of its past glory. About four years passed before construction work even commenced on the site. Initially the new owners had to undertake a big clean-up job of the vacated property as a very large amount of assorted clutter was left behind by the previous occupants [‘Saving a grand old beauty’s soul’, Peter Munro, Traveller, 7 January 2013, www.traveller.com.au].
The Hydro Majestic through the agency of a renovation that cost $30 million has been transformed—from its erstwhile state of dishevelment and disrepair—to again rise seemingly phoenix-like in 2015. The new exterior makeover resulted in the complex’s buildings being painted uniformly white, clearly the developers are hoping that the anticipated returns will repay the investment (all up a reported $40.5 million including the purchase price) so that the venture doesn’t end up a ‘white elephant in all senses!’
Mark Foy’s Liverpool St store
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The Majestic’s current incarnation however is only the latest of many manifestations and reinventions that the hotel has undergone over its long, colourful history. The Hydro Majestic’s genesis lies in the overseas travel experiences of retail baron Mark Foy around the turn of the twentieth century. Foy was co-owner with his brother Francis of the large Sydney department store, Mark Foy’s (named after his father Mark Foy Sr) in Oxford Street, Sydney, later relocated to Liverpool Street in a famous piazza building. The young entrepreneur’s experience of health spas on the Continent gave him the idea for starting a hydropathic therapy operation in Australia. In 1902 Foy purchased several large blocks of land in the Blue Mountains to re-create a similar spa resort to the highly-popular sanatoriums he had visited in Europe. The site chosen at Medlow Bath was supposedly located on natural mineral springs that incorporated the earlier Belgravia Hotel [John Low, ‘Palace in a Wilderness: Hydro Majestic Medlow Bath’, www.bmcc.nsw.gov.au].Foy’s Blue Mountains ur-health resort
Upon completion in 1904 Foy opened his Medlow Bath hydropathic sanatorium (the first health resort in NSW) which he named the Hydro-Majestic. By this time whatever springs were present (if they ever existed) had dried up. Consequently Foy imported large quantities of mineral water from Germany for use in his establishment [www.hydromajestic.com.au (Wikipedia entry)]. He also introduced a German-manufactured generator to supply the Hotel and the surrounding township with electricity (purportedly four days before the city of Sydney achieved electricity!) [www.hydromajestic.com.au, ibid.].
A series of spa pools connected by springs to the hotel generator were constructed in the nearby bush for the use of guests. Foy advertised that the Hydro would provide cures for nervous, alimentary, respiratory and circulatory ailments. Foy from the establishment’s start was also intent on trying to broaden the Hydro’s appeal, advertising it as “the most enjoyable place to spend one’s holidays” [Elaine Kaldy, ‘Medlow 1883 and Now’ (1983), cited in ‘Mb002 : Hydro Majestic’, NSW Office of Environment and Heritage, www.environment.nsw.gov.au]. To coordinate the therapeutic programs Foy brought out a Dr Bauer from Switzerland to introduce guests to his “diets of weird and wonderful treatments” [www.hydromajestic.com.au].
Playboy business tycoon
Mark Foy, to all accounts, was not particularly hands-on in his business pursuits, leaving it to a host of managers and agents. The Hydro for instance was apparently leased to influential hotelier and parliamentarian James Joynton Smith in 1913 [‘K032 : Carrington Hotel’, NSW Office of Environment and Heritage, www.environment.nsw.gov.au]. Foy’s conspicuous affluence and delegation of tasks to others allowed him the leisure to pursue outdoor activities. The business baron also had a reputation of being something of a playboy-about-town in the ‘Great Gatsby’ mould, legendary for throwing lavish parties for his friends at the Hydro and at his other homes at Bellevue Hill and Bayview.
Mark Foy Jr
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The Hydro Majestic owner was a keen sportsman, yachtsman and motor-car enthusiast. He was such a car enthusiast that he would periodically have sales of bulk numbers of his vehicles on site at his Bellevue Hill property [“MARK FOY’S MOTORS” (Advertisement), Sydney Morning Herald, 3 September 1910 – an adroit coupling of business with pleasure on his part; cited in Pittwater Online News, Issue 102 (17-23 March 2013), http://www.pittwateronlinenews.com/mark-foy-history.php]. Foy used his fleet of cars to ferry guests on trips from Medlow Bath to nearby Jenolan Caves. He also kept horses on the grounds for guests to explore Megalong Valley by horseback [Office of Heritage and Environment (Hydro Majestic), www.environment.nsw.gov.au].
Majestic skyline
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Network of bush walks and sustainable agriculture
Foy had a series of bush walk tracks built on the cliffs below the Hydro Majestic. The walking tracks provided spa guests with a physical outlet that would complement Dr Bauer’s therapeutic programs. Guests were encouraged to exercise in the fresh mountain air as part of their recovery. These tracks with local physical features with names like Tucker’s Lookout, Sentinel Pass and the Colosseum offer breath-taking cliff views of the Megalong Valley, and are still explored by bush walkers today.As well as the hotel site itself Mark Foy purchased a considerable amount of land in the Megalong Valley to grow food for the Majestic hotel dinner tables. Foy built a large rural holding at Megalong which he called the Valley Farm, on it was a racecourse, stables, diary farm and a piggery. The farm grew corn, turnips and oats [‘Mark Foy – Retail Tycoon and Megalong Valley Farm’, www.megalongcc.com.au]. The produce grown in the valley was transported up to the resort by a flying fox Foy had rigged up.
The business tycoon also maintained personal properties on the Medlow Bath complex, including a cottage in the Valley known as the Sheleagh Cottage. This property with its great views of the valley, now called “Mark Foy House”, is today listed as a mountains getaway available for rental. It is unclear how much time the constantly on-the-go Foy spent at Sheleagh, or for that matter at any of his Sydney properties, as the newspapers of that day regularly reported him as embarking with his family on yet another world or European tour [cited in Pittwater Online News, op.cit.]. I can easily imagine Foy’s name cropping up constantly in the Vice-Regal column that used to appear in the Sydney Morning Herald.
‘The Lost World’
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༘༘༘Resort’s luminaries
At the height of its popularity, in the twenties, the Hydro-Majesty was THE fashionable venue to visit, “the place to be seen” by the denizens who grace Sydney’s social pages. Over the years it has had more than its fair share of VIP guests, such as Sherlock Holmes creator Sir Arthur Conan Doyle whose novel The Lost World was inspired by the vast wilderness environment that the Hydro was set in. Other guests include Indian rajahs, Australia’s first Olympic swimming gold medal winner Freddie Lane, and the Commonwealth’s inaugural Prime Minister Edmund Barton, who died whilst staying at the resort in 1920. Boxer Tommy Burns set up a training camp at the hotel where he prepared to fight Jack Johnson for the World Heavyweight Championship in the most famous bout in Australia boxing history at Sydney Stadium in 1908. The entertainment and amusements provided by Mr Foy at the Hydro Majestic took various forms. In its heyday when it was a luxury tourist resort, balls and concerts were regular events. Singers such as the soprano queens Dames Nellie Melba and Clara Butt were hired to perform at these concerts. A curious feature was the cross-dressing costume parties of well-to-do guests in which the husband and wife swapped clothing with each other for the event [‘Saving a grand old beauty’s soul’, op.cit.].
An architectural mixed bag
Taken at its broad scope the Hydro-Majestic is an impressive if a bit discordant sight, a long line of arranged buildings, albeit positioned in a somewhat higgledy-piggledy fashion stretching for some 1.1 kilometres across the Megalong escarpment. The Hotel’s architecture is hybrid in character, with buildings being added in an ad hoc fashion over time and in a novel mixture of styles: Victorian, Edwardian, Belle Époque and a blend of Art Deco and Art Nouveau interior design.
The Hydro – in its down-market days
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The Majestic’s most distinctive external feature is the Casino building with its imposing Chicago-manufactured dome (this ‘casino’ has been used as an entertainment hall or pavilion rather than as a gaming house). The changing fortunes of the Hydro Majestic as a whole over the decades was symbolised in the fate of the Casino itself: going from the scene for grand balls and concerts in the 1920s and 1930s to a repository for (how the mighty have fallen!) pinball machine entertainment in the 1980s!
A Zimmerman
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Resident artist with obsessive-compulsive tendencies
One of the most intriguing interior features of the Hydro Majestic is the so-called Cat’s Alley, a long corridor whose windows back in the day were draped with peacock feathers. Scone-and-cream afternoon tea visitors to the hotel would stroll down the corridor strewn with puff-pillowed lounge chairs and a set of bizarre panelled scenes, hunting scenes from different historical periods, the work of a Swiss artist called Arnold Zimmerman. Panel after panel comprised Prehistoric cavemen hunting wooly mammoths, Assyrian warriors slaughtering lions, British Raj mounted horsemen hunting tigers in India, Roman soldiers killing elephants, and so on and so on. The first time I ever visited the Hydro I marvelled somewhat bemused at Zimmerman’s paintings, finding them slightly disturbing in their obsession with the monumental struggle between man and beast, terrible but also engaging in a visceral way. Visitor access was blocked to the Alley for some years but it is pleasing to note that it is opened again after the refurbishment with additional seating.
The immediacy of a vast wilderness of National Park bushland has regularly posed a danger to the Hydro Majestic. In 1905 fire destroyed the Gallery building and in 1922 did the same to the original Belgravia wing. There have been several other close calls, the latest in 2002 when Medlow Bath’s “Gothic tourist pile”, as one article described it, narrowly avoided a spot fire blaze [Margaret Simons, ‘Majestic tourist icon survives ordeal by fire’, Sydney Morning Herald, 9 December 2002].
The Hydro-Majestic over the course of its century-plus existence has undergone a number of transformations. What started off as a hydropathic spa pretty soon morphed into a luxury tourist retreat after 1909 (“Mr Foy’s Private Lodge”), only to revert more modestly to a family hotel for ordinary guests and day-trippers. In WWII the Hydro was converted into the 118th US General Hospital to care for convalescing American soldiers, some of which showed their “gratitude” by inflicting damage on the hotel’s decor during their stay. After the War the Hydro reverted to a hotel and guesthouse. By the 1980s the buildings had declined alarmingly despite receiving a heritage preservation order in 1984, business had dropped off and the very visible signs of wear and age eventually necessitated a revamping in the 1990s and again in the last few years.
In keeping with the hybrid nature of the hotel, parts of the new Hydro Majestic exude a distinctly oriental flavour. The Salon Du Thé features a Shanghai chic tea room and bar and both it and the Cat’s Alley reprise many of the oriental traits of the original 1900s Medlow hotel which featured a Chinoiserie style favoured by Mark Foy. The Majestic’s original Salon Du Thé displayed ornaments and furnishings which included large Chinese vases and porcelain vessels, bamboo-look furniture and silk umbrellas [www.hydromajestic.com.au].
Footnote: Regaining its past glory? Will the refurbished Hydro Majestic rise again to the exalted heights it attained in the inter-war period? Will patrons flock to it again as they once did? Will it be able to attract the higher socio-economic clientele associated with a luxury resort? It is far too early to tell, but it should be noted that there is a lot more choice now in Sydney with high-class hotels and resorts. Nonetheless, the Hydro’s traditional high tea is back, the complex has more restaurant options than ever before, though the guest rooms are still on the small side! What also hasn’t changed to its advantage are the magnificent panoramic views of the Megalong Valley, they remain one of the Hotel’s strongest magnetic attractions.
Above: Flagship of the Mark Foy’s retail empire. The city department store opened in 1885, moving to the Liverpool Street site in 1909 where an ice skating rink was installed on the 5th floor in 1950 for “Fashion Fantasy on Ice” parades. In 1980, having been earlier acquired by Waltons, it ceased trading permanently. Today the monolithic heritage building renamed the Downing Centre functions as a local and district court
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)
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
B&W 4d Milk Bar with mechanical cow & Red Cross-like symbol
Golden Star Milk Bar, Perth (Photo source: M. Coufos)
Olympia, tea and milkshakes (Source: Daily Mail Australia)
Green plaque in limbo!
Boundary lines of the “Square Mile”
Photo: London Toolkit
Guiding the flock over the Bridge (Source: Metro UK)
Crest of Worshipful Company of Bowyers
Tallow Chandlers Co dining hall (Source: tallowchandlers.org)
𝟙𝟞𝟘𝟚 ℂ𝕙𝕒𝕣𝕥𝕖𝕣 𝕕𝕠𝕔
𝔸𝕞𝕤𝕥𝕖𝕣𝕕𝕒𝕞 𝕊𝕥𝕠𝕔𝕜 𝔼𝕩𝕔𝕙𝕒𝕟𝕘𝕖 𝕒𝕟𝕕 𝕓𝕦𝕝𝕝
Selling the American Dream
When Lakewood Park’s subdivision of model homes—complete with a “Tile Pullman lavatory” and a built-in ‘Pulverizer’ garbage disposal unit in the kitchen—was opened up to the public, the sales office was inundated with aspiring home-owners all seeking their piece of the “Father Knows Best’ fantasy lifestyle. One salesman sold 107 of the homes in a single hour [‘A New Kind of City…Lakewood’, Los Angeles Almanac, www.laalmanac.com]. Many were “sold off the plan” at a time before that term was in vogue. The cost for a Lakewood ‘model’ mostly ranged from $7,500 to $9,500. Like Levittown, Lakewood Park particularly appealed to WWII veterans who under the GI Bill were guaranteed advantageous terms, no down payment and 4% interest over 30 years. Lakewood’s population exploded – what was a small unincorporated village in 1950 became a ‘city’ with in excess of 70,000 inhabitants by 1953.
Deng prosperity (Wikiwand)
(Source: addicted2success.com)
Xi in Mao’s shadow? (Photo: denverpost.com)
Jack Ma (Source: las2orillas.co)
(Source: Brunswick Group)
The outcome of such a transformation as the reforms may bring about, some fear may be a “top down Utopian China” with, as K Rudd suggested earlier, even more power and control devolving to the party (‘Changing China: How Xi’s ‘common prosperity’ may impact the world’, Kaishma Vaswani, BBC News, 07-Oct-2021, www.bbc.com).
Image: radiichina.com
(Photo.thestar.com.my)
Pete Seeger (Source: Mother Jones)
Image: the78prof (YouTube)
“Paul Campbell” is the only writing credit on ‘Wimoweh’ (a common nom-de-plume ploy used to claim royalties on public domain songs)☥
In 1961 a new chapter in the story opens, “doo-wop” band the Tokens, like all pop music enthusiasts in the US, are familiar with the super-catchy “Wimoweh” refrain and want to record it. Their RCA producers get songwriter George David Weiss to revamp the song. Weiss adds new lyrics (“In the jungle, the mighty jungle”, etc) and shifts the focus of the song on to Linda’s chanting melody. ‘Mbube’ having previously morphed into ‘Wimoweh’ is repackaged by Weiss as ‘The Lion Sleeps Tonight’, all three versions still bearing the essential imprint of Solomon Linda (Malan). The Tokens’ single—with singer Jay Siegel’s distinctive high falsetto—reaches # 1 in the US and internationally, eventually selling more than three million copies§. Again, no credit and no moolah for Linda who dies destitute in 1962 with just $25 in his bank account, leaving a widow and a half-dozen young children behind.
The Tokens (Source: singers.com)
The two remaining Ntsele sisters looking at the 1939 photo of their father’s band (Source: Netflix)
Rian Malan (Source: Writers Write)
Source: Definitely Owen on YouTube
Fish Market, Woolloomooloo (Photo: State Lib of NSW)
Eastern Markets, Wolloomooloo: an absence of tables (Photo: SFM)
(Image: Dictionary of Sydney)
Fish market built in Haymarket, 1910 (Source: City of Sydney Archives)
FMA fish monopoly
The Haymarket fish market continued as the sole conduit for fish trading in Sydney until 1945 when their monopoly was expanded…the government transfered the marketing and selling of fish to the NSW Chief Secretary’s Department (hitherto unlicensed operators could sell fish outside of Sydney) which established a regulated and centralised market for the entire state. The central fish market’s control was consolidated in 1964 with the creation of the Fish Marketing Authority, a NSW statutory authority under the jurisdiction of the Department of Agriculture¶ (‘Market History’, Sydney Fish Market, www.sydneyfishmarket.com.au]. The FMA’s role was to bring the seller’s fish and the buyer together, charging a percentage fee for this service.
(Photo: sydneyfishmarkets.com.au)
Dutch auction system (Photo: flowercompanies.com)
Privatisation and de-regulation
The state-run markets were privatised in 1994 and renamed Sydney Fish Market P/L. In 1999 full de-regulation meant catchers in NSW could now sell directly to any buyer with a Fish Receiver’s Permit, bringing to an end the Pyrmont market’s long monopoly over the sale of seafood in Sydney (private ownership of the market made the continuation of monopoly untenable) (‘SFM’).
The SFM at Pyrmont in 2021 is the largest seafood market in the Southern Hemisphere and one of the biggest in the world. Every hour of it’s commercial operation about 1,000 crates or 20,000 km of seafood gets sold (‘SFM’).(Image: The Bays Precinct Sydney)
Eighty Druitt Street is a prominently located, heritage building in the Town Hall precinct of Sydney’s CBD. It’s colourful history owes its origins to an 1888 competition conducted by the Excelsior Land Investment and Building Company (and Bank Ltd) to design a hotel and banking premises on the corner of Druitt and York Streets (opposite the QVB – Queen Victoria Building). The contest was won by architect Ambrose Thornley and the completed commercial construction (circa 1890) adopted the name suggested by Thornley, “Central Hotel”.
(at left Central Hotel, circa 1900 – dwarfed by the massive QVB building)
Meanwhile, the Central Hotel was bought in 1904 by a “Mr Roberts” who had apparently previous done a sterling job of value-adding and enhancing the nearby Criterion Family Hotel (The Newsletter (Sydney), 17-Dec-1904)✱. During the first decade of the 20th century the hotel was renamed the Gresham Hotel. In 1925 the hotel was bought by leading brewery Tooth and Co (‘Gresham Hotel: Sold for £47,000’, The Sun (Sydney), 20-Nov-1925).
In the 1980s the Gresham was converted into offices and in 1995 the building was purchased by the Government of Hong Kong. It has operated as the Hong Kong Economic and Trade Office in Sydney, representing China’s Special Administrative Region of Hong Kong. The building is also used to promote Hong Kong tourism under the aegis of the HK Tourism Board.
(Photo credit: www.hktosydney.gov.hk)
The Gowings story starts with John Ellis Symonds (JES) Gowings who emigrated to New South Wales from England in 1857. After retail experience in David Jones’ Sydney department store—where he worked his way up to head of mercery—JES’s first venture of his own was to open a drapery shop in 1863 in Crown Street, East Sydney. He then formed a partnership with his brother Preston, in 1868 the brothers opened a Mercery and Glove Depot at 318 George Street. JES managed the store in return for £200 per annum and 50% of the profits. The iconic Sydney retailer was up and running.
The business grew, in 1870 a new mercery warehouse was opened in Edinburgh House, 344 George Street, and 20 years later a second city store at 498 George Street. The brothers’ younger sibling Charles was hired as the Gowings store’s “dog walloper”, his job was chasing dogs away from the store as a preventive measure so they didn’t foul the pavement (Kingston).
After JES’ death in 1908 control of Gowings passed to the John and Preston’s sons, with the firm’s tradition for quality goods continuing. The construction of a new flagship building in 1929 on the George Street site became a landmark for Sydney (at the time it was Sydney’s highest building and the first steel construction in the CBD)✦.
A testimony to Gowings’ fame is the cult phrase that it acquired (and cultivated by the retailer) during the 20th century …”Gone to Gowings” has passed into the Australian vernacular, meaning a failure of some kind or other, or possibly a state of inebriation or dementia (Tréguer). Macquarie Dictionary lists six definitions: 1. Deteriorating financially, 2. illness especially a hangover, 3. Failing dismally (a racehorse, a football team, etc), 4. having departed hastily or without a specific destination in mind, 5. drunk, 6. Insane, idiotic. Alternately it could mean down on your luck, lost at the races, etc. The other famous catchphrase that was posted on the flagship premises” facade was “Walk Thru, No one Asked to Buy”.
Gowings ad, 1909
The post-Gowings space
Three months after its closure the Gowings landmark building at 452 George Street was snapped up by the Rydge family’s Amalgamated Holdings goliath for $68.6 million, consolidating its property holdings in this mid-town spot — Amalgamated Holdings had previously acquired the State Theatre building next door (49-51 Market St) as well as the nearby Mick Simmons building in George Street.
Gowings bldg (2021)
In its early days Coke was marketed both as a medicinal drink and as a “refreshing tonic”
Pepsi’s watershed year was 1975 when it mounted the “Pepsi Challenge”, a series of filmed blind-taste tests in which the majority of participants chose Pepsi over Coke as their preferred soda. This boosted Pepsi sales and escalated the rivalry between the two “Big Sodas”, kicking off what became known in America from the Sixties on as the “Cola Wars” or the “Soda Wars”. Until the Pepsi Challenge happened Coca-Cola had been coasting somewhat, complacently presenting itself as “the real thing” in contrast to the upstart pretender. Coca-Cola’s response to PepsiCo’s move was to promote the then most popular personality on US TV Bill Cosby as “the face of Coke”.
Pepsi embarked on a marketing campaign which depicted itself as a younger, hipper brand than its outmoded rival. Drinking Pepsi was a cool thing to do (so proclaimed the marketers), when stacked up against the tired, same old, same old Coke alternative. Integral to PepsiCo’s campaign was the recruitment of celebrities to endorse the beverage, the centrepiece of which was Michael Jackson. Other pop music icons followed the success of Jackson’s involvement with the product – David Bowie, Madonna, Lionel Ritchie, etc. Ad men heralded Pepsi as “the choice of a new generation”.
In the early Eighties, under pressure from Pepsi’s inroads into the market, Coca-Cola introduced diet Coke, a caffeine-free soda, followed by a complete redesign of Coke—given the secret codename “Project Kansas”—the outcome in 1985 was a sweeter Coke, New Coke. To counter Pepsi’s sweeter, more syrupy taste, Coca-Cola replaced sugar with corn syrup (which also reduced the production cost). New Coke however proved a disaster for the company, provoking a huge backlash from loyal consumers, some described the new taste as like “two day old Pepsi”. Southern fans of Coke, where Coca-Cola (and Pepsi) had its origins, were especially offended.
Faced with an avalanche of criticism, Coca-Cola brought back the old formula under the name “Coca-Cola Classic”. New Coke for its part got rebranded but never really took off and was eventually discontinued. Disappointment that it was, New Coke did provide one unanticipated positive – it managed to reawaken in many Coca-Cola drinkers suffering from a bout of ennui a new craving for the original taste (Little).
Vintage 1950s ad: “Pepsi-Chic” before it went “Pepsi-Hip” (Robt Levering)
Photo: George Marks/Retrofile/Getty
⏏️ Pepsi’s role in the Nixon-Khrushchev Kitchen Debate
So began a novel bilateral trade. With Russian rubles not valued outside of the USSR, a barter system was forged. The Russian and other Soviet people got to drink Pepsi, in return vodka (in the form of the state-owned brand Stolichnaya) was made available in the US market.
(Source: www.naval-encylopedia.com)
In the age of virtual communication and instant electronic transactions, many people see the traditional mail service as less and less relevant in our daily lives, it is fashionable these days to scornfully dismiss it as “snail mail”. It may seem passé to many but the international postal system is still an active and vital service that bridges the gaps between vast distances, and it is one that is governed by a UN world body with a continuous history back to the last quarter of the 19th century.
The Universal Postal Union (UPU), (French: Union Postale Universelle), originally the “General Postal Union”, was established in 1874 with the task of laying down regulations and bringing uniformity to the setting of tariffs (including the transit costs) for mail exchanges between countries. Prior to it’s inception, a complicated, loose bilateral system prevailed where an individual country would have to establish postal treaties separately with each other country it wished to correspond with. Sometimes this involved calculating postage for each leg of the journey and finding mail forwarders in a third country if there was no direct delivery to the country of destination [‘Universal Postal Union’, www.parcelsapp.com/].
The initial mid-19th century impetus to create such a global entity came from American frustrations at postal communication with Europe, especially with France, but the decisive thrust came from Heinrich von Stephan, a senior Prussian postal official from the North German Confederation (and later the Reichspost), whose advocacy prompted the Swiss government to host the inaugural international postal conference leading to the formation of the UPU.
UPU’s role also includes the resolving of any polemical issues that may arise between member nations. The great explosion in E-commerce trade has tended to exacerbate cost anomalies in postage tariffs. In 2018 US companies were paying twice as much to mail an item to a US customer than it cost China (and other subsidised Asian countries) to send items to the same US customer (www.parcelsapp.com/). US president, Donald Trump, threatened to pull the US out of the international body if it failed to make reforms to the system (this provocative move has been part of the outlier American president’s global trade war campaign against China). The US exit was averted in 2019 with the brokering of a deal allowing it to start setting its own postal rates from July 2020, with other high-volume mail member-countries to follow suit from 2021 [‘U.S. Avoids Postal ‘Brexit’ as Universal Postal Union Reaches a Deal’, (Abigail Abrams), Time, (26-Sep-2019), www.time.com].
This issue aside, the habitually low-profile UPU has been largely free of controversy✶, but one other minor discordant note occurred in 1964 when the Fifteenth Congress of UPU voted by a large majority to expel South Africa from membership. This was controversial because several country delegates raised the objection that the action was unconstitutional, arguing that a member could only be expelled for violating UPU’s regulations. The South African delegate initially refused to budge but did so after other African delegates demanded his expulsion [“Universal Postal Union.” International Organization, vol. 20, no. 4, 1966, pp. 834–842. JSTOR, www.jstor.org/stable/2705750. Accessed 21 May 2020].
The UPU has gone from a largely Eurocentric organisation in 1874 to a truly universal one today with about 192 countries of the world (plus territories) signed up۞. A number of other non-member states and territories get their mail routed through a third (member) country including Andorra (through France and Spain), Taiwan (through Japan and US), Kosovo (through Serbia), Northern Cyprus (through Turkey), Micronesia (through the US) and Somaliland (through Ethiopia) [‘List of members of the Universal Postal Union’, Wikipedia, http://en.m.wikipedia.org].
(Image: Aviointeriors S.p.A.)
The clothing company was started in Metzingen (southern Germany) in 1924 by the eponymous Hugo (Ferdinand) Boss…it commenced supplying the NSDAP (National-Socialist Workers Party) with their brown military uniforms, according to the company’s own claim, in 1924 (the year in which Hugo Boss was founded)
Taipan JS Swire, “the Senior” ⍐ (Photo: www.industrialhistoryhk.org)
Business-savvy Harvey sensed there was a gap in the market and in 1876 he clinched a deal with the Atchison, Topeka and Santa Fe Railroad (AT&SF)ⓐ to open eating houses along the railroad. The start was modest, one small lunchroom in the Topeka (Kansas) depot of the railroad. But from these modest beginnings Harvey created a thriving railway hospitality concern and more. The prototype Harvey lunchroom has been described as “the progenitor of what (Americans) think of today as a diner” [Stephen Fried, quoted in ‘Tracing the Recipes of America’s First Restaurant Empire’, (Sara Bonisteel), Epicurious, 18-Jun-2013, www.epicurious.com].
(Photo: www.railroadmemories.com)
Aldi’s control of it’s “own brand”—which makes up a whopping 90 to 95% of what it sells—is interesting. First there’s the design, it deliberately makes the packaging on its food items look much the same as the leading manufacturers’ equivalent brands. Next, it tries to replicate the taste of these popular brands. Then Aldi invents a brand name for the product which often sounds vaguely like the well-known brand. And it apparently works – even on luxury items. To take a UK example: Many British consumers who once shopped at the upmarket Sainsbury’s and Waitrose supermarkets have been enticed by Aldi’s “Specially-Selected” luxury items – and the reason is twofold, obviously price (much cheaper than Sainsbury’s), but also because they now feel they are getting a similar-quality product (retail expert Julie McColl, Glasgow Caledonian University). As well as a recent product expansion to include luxury treats for it’s shoppers, Aldi’s move into ‘fresh’, the fruit and veg lines, has broadened it’s appeal.
Another key to Aldi being so spectacularly successfully in the supermarket game is it’s relationship to suppliers. Because of their runaway retail success they have many primary producers and manufacturers lining up to do business with them, but Aldi is well-known for driving a hard bargain with suppliers (sort of a case of “my way or the highway”). They are also clever at judging what will be efficacious – by sourcing local suppliers and advertising in the UK they have softened the German outsider element and fostered an impression among British shoppers of the big discount ‘invader’ being home-based.
The above factors, outlined, are apparently the ‘secrets’ to Aldi’s stellar success and it’s ability to offer and maintain retail prices at rock bottom in markets across the world. In part II I will tell the story of Aldi’s rise from a single grocer’s store in provincial Germany to international retail empire, and of the two publicity-shy and increasingly reclusive brothers who spearheaded the company’s seemingly unstoppable growth and expansion.
F&M, 1957 [Source: Getty image]
21st century Fortnum, an era of belated expansion
[Photo: www.londontown.com]
The company has been the subject of other controversies of recent. F&M has been tangled up with the brouhaha of allegations of tax avoidance by its parent company’s subsidiaries. This resulted in a mass sit-in in F&Ms Piccadilly store by UK Uncut (a lobby group protesting public service cuts and tax avoidance).
Birkenhead Point Factory Outlet Centre (BPFOC), on the western side of Sydney’s Port Jackson, is a bit of a sleeper as far as shopping centres and malls go. Recently, it ‘celebrated’ (sic) it’s forty-year anniversary (opened 26 July 1979), but it was an anniversary bereft of any fanfare whatsoever! The centre has 170 stores or services including two anchor tenants but can’t attract a major department store chain. In recent times it has tried to lure more paying punters by introducing a “shopper hopper” ferry service from Circular Quay or Darling Harbour. Thursday night shopping is virtually a non-event with most of the vendors not bothering to stay open. The only shoppers you are likely to see at night are those grocery shopping at Coles and Aldi✾.
The reasons for BPFOC’s low-key status among the large retail outlets and malls of Sydney are manifold. It’s relatively small size and its distance away from the Sydney rail network are contributing factors. Likewise, the proximity of Burwood Westfield (a few kilometres away) and the Broadway Centre to name two, gives these shopping complexes a comparative advantage.
(source: Dictionary of Sydney)
Perdriau‘s rubber hose line
Over the last thirty-plus years the Birkenhead Head complex has undergone several changes of ownership. Most prominently in 2004 it was bought by Singapore tycoon Denis Jen for $111M (later unloaded). Currently, Birkenhead Point Outlet Centre is owned and managed by the Mirvac Group.
(Photo: Powerhouse Museum, Sydney) ⇧
(Photo: www.visityuleba.com.au) ⇧
⇧ Vic Museums (Photo credit: https://collections.museumvictoria.com.au/items/1256058)
⇧ Cobb & Co Charleville coachworks (Qld) (Photo: www.qhatlas.com.au/) 
(Source: www.queensland.com)
Freeman Cobb ⇑ (Photo: www.geni.com)
The Concord coaches were fitted with leather braces and straps in place of the inflexible iron ones used on other horse-drawn vehicles which had a tendency to snap too easily (leather also provided greatly superior suspension for the carriage). Concord coaches were made to last the rugged journey and so contributed to a reputation for reliability that the Cobb service was able to establish [‘Days of Cobb & Co’, loc.cit.].
Many of the drivers, some of which Cobb and (later) Rutherford recruited from the US, were colourful characters in addition to being accomplished horse handlers…blokes such as Dick Houston, Jim Conroy, ‘Silent’ Bob Bates, H Barnes, and not least “Cabbage Tree” Ned Devine. Devine, with his team of distinctive light grey horses, was by all accounts a particularly exceptional driver (earning himself a very good wage of £17 a week)…when the first English cricket team toured Australia (HH Stephenson’s, 1862), Devine was their driver on the Victorian leg of the tour [K. A. Austin, ‘Devine, Edward (Ned) (1833–1908)’, Australian Dictionary of Biography, National Centre of Biography, Australian National University, http://adb.anu.edu.au/biography/devine-edward-ned-3405/text5169, published first in hardcopy 1972, accessed online 31 May 2019]. 
(Photo source: State Library of Victoria)
Kings of the chocolate business{b}
The Quaker philosophy incorporates a commitment to social reform and the pursuit of justice and equality. This ethos informed their business practices, Cadbury’s and other Quaker firms established a reputation for being honest and reliable. This gave them a competitive advantage over their non-Quaker competitors. The perceived ethical nature of Quaker confectionery firms was rewarded with customer loyalty. John Cadbury and his successors were among the first to set a firm (and fair) price – this was a clear departure from the hitherto customary retail practice of point-of-sale price bartering [ibid.]{c}.
Democratising cocoa and drinking chocolate Cocoa and drinking chocolate had been around in England since the 1650s but before Cadbury’s came along it had been a luxury beverage for the elite. John Cadbury’s improvements to the product gave it more varieties and made it a more palatable drink, and after the Gladstone government reduced taxes on imported cocoa beans in the mid 1850s, the cost of cocoa became within the reach of the greater majority of Britons. Cadbury’s introduction of unadulterated “cocoa essence” in the 1870s coincided with a government crackdown on the widespread adulteration of food in the UK. The upshot was free ‘plugs’ for the purer Cadbury product and a boost in fortunes for the Quaker business [‘The Story of Cadbury. Early Days – A One Man Business’, www.cadbury.com.au].
(photo courtesy of www.historyworld.co.uk)
The Bourneville factory ⤊
(photo courtesy of www.historyworld.co.uk)
Rowntree’s later created the consumer favourites ‘Kit Kat’, ‘Aero’ and ‘Smarties’, and went on its own expansion journey, merging with the Halifax “Toffee King” Mackintosh in 1969 (which added ‘Quality Street’ and ‘Rolo’ to its product inventory). Rowntree’s (rebranded Rowntree Mackintosh Confectionery) then acquired Australian chocolate manufacturer Hoadley’s (1972) which gave RMC Hoadley’s ‘Violet Crumble’ bar.
Ft-Note: Pseudo-Quakers The runaway commercial success of Quaker food and confectionery companies did inevitably lead to imitation. A US food manufacturer in the 1870s introduced “Quaker Oats” to the cereal market…on the packets and in product advertising are images of a man dressed in Quaker garb, despite the US company having NO connexion whatsoever with the Religious Society of Friends (Quakers){i}. The company states that it chose the “Quaker Man” as its figurehead “because the Quaker faith projected the values of honesty, integrity, purity and strength”, [‘Quaker Oats website’, (FAQ 2009), www.quakeroats.com] (an early example of retail “identity theft’ to try to cash in commercially on the high regard, ethically, Quaker businessmen were held in).
PostScript: Third World cocoa beans and the Quaker chocolatiers – an uncomfortable association In the late 19th century the Cadbury brothers and other British chocolate-makers started exporting a large proportion of their cocoa beans from the islands of São Tomé and Príncipe (Portuguese West Africa)…by the turn of the century this amounted to 55% of Cadbury’s total supply of beans. Although Portugal had abolished slavery in its colonies, the rigid labour contract system which replaced left the African labourers working the plantations in a de facto slave status. This uncomfortable connexion of an ethical Quaker business to neo-slavery prompted one of the managing grandsons, William Cadbury, to commission an investigation of worker conditions in São Tomé and Príncipe in the 1900s. Cadbury eventually found an alternative source of cocoa beans (the Gold Coast) and organised a boycott of the two Portuguese plantations, but not before he had to fend off a spate of newspaper attacks on Cadbury’s alleging that it profited from the labour of slaves [‘William Cadbury, Chocolate, and Slavery in Portuguese West Africa’, (Lindsey Flewelling), 11-May-2016, https://britishandirishhistory.wordpress.com/2016/05/11/william-cadbury-chocolate-and-slavery-in-portuguese-west-africa/].
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The challenge of online shopping
⇡ Westfield Geelong (Vic.), 1986⇡ Westfield’s founder & entrepreneurial driving force
Sainsbury’s “Own Brands”
Although “own brands” are thought of as a modern phenomena in retail merchandising, Sainsbury’s first introduced the concept as early as 1882! The shop’s first own brand was its staple commodity – butter. Sainsbury’s continued this practice and by the 1950s there was a host of such offerings on the shelves: ‘Sainsbury’s Cornflakes’, ‘Sainsbury’s Snax Biscuits’, ‘Sainsbury’s Cola’, ‘Sainsbury’s Peas and Carrots’, etc, etc. [‘The History of Sainsbury’s’, loc.cit.]. By 1980 half of the products Sainsbury’s sold were under its own label [Bevan, op.cit.].
Modernising Sainsbury’s
In 1950 Sainsbury’s refitted one of its earliest shops, in West Croydon, creating what was Britain’s first supermarket proper, one of the country’s earliest to operate as fully self-service. Some customers were at first put off by the innovation, thinking it impersonal and “anti-social”, however the convenience factor of not having to wait to be served eventually won out…Advertising and Marketing magazine reviewing the new store concluded: “From the point of view of the customer the chief advantages of self-service shopping are the speed with which shopping can be done and the ease with which one is reminded of things needed…these advantages substantially outweigh the disadvantages of not getting the personal attention of the assistant.” [‘Sainsbury ‘s return to site of first self-service supermarket’, (Graham Ruddick), The Telegraph (UK), 30-Aug-2013, www.telegraph.co.uk].
Stumble and renewal
During the Nineties, Sainsbury’s, hitherto accustomed to being the premier supermarket chain, was relegated to second place by Tesco which became supermarket “top dog” in the UK in 1995. A change-up was required at Sainsbury’s and further diversification was sought. In 1997 the company ventured into in-store banking (in partnership with the Bank of Scotland – before going it alone in 2014). During this period the 130-year direct involvement in running the company of the Sainsbury family came to an end with the retirement of David (Lord) Sainsbury. The acquisition of Bells Stores in the early 2000s signalled a move into convenience stores, adding to the variety of its retail outlets.
Sainsbury’s – status quo in 2018 and future fortunes?
In the contemporary British retail landscape, Sainsbury’s, with a healthy slab of the market, is the second largest chain in the country✥ with ≻1415 stores (2017) and ≻186,900 employees (2018). Despite having long conceded first place to Tesco, this state of play is a fluid one…no longer dominated by the Sainsbury family (though it retains 15% of shares in the company), these days the majority shareholder is the Qatar Investment Authority (note comparisons with Harrods). 2018 has seen Sainsbury’s unearth a bold attempt to unseat Tesco’s hegemony through a planned merger with ASDA which would give the merged entity around 30-31% of the UK market – as against about 27.5% for Tesco (Source: Kantar). Approval of the controversial merger is still pending but could depend upon Sainsbury’s and ASDA offloading 463 of their stores to win over the competition ‘watchdog’ (CMA) [‘Walmart’s Asda agrees to UK merger deal with Sainsbury’s’, (Silvia Amaro) 30-Apr-2018, www.cnbc.com; ‘Sainsbury’s and Asda may have to offload 460 stores to seal merger’, (Sarah Butler), The Guardian, 28-Sep-2018, www.theguardian.com].
Jack Cohen got the business ball rolling in 1919 with a basic stall✥ in the Well Street Market, Hackney, London…for start-up capital Cohen (born ‘Jacob Kohen’) had a £30 stipend from his recent WWI service. From his barrow and stall operation, the antecedent of Tesco, the 21-year-old started off selling matzos (unleavened Jewish crisp bread) and other army surplus food he had purchased. On opening day Cohen made a princely £1 profit from a grand total of £4 in sales [‘A History of Tesco: The rise of Britain’s biggest supermarket’, by Tim Clark and Szu Ping Chan, The Telegraph, 04-Oct-2014, www.telegraph.co.uk].
Cohen’s business motto, and therefore the company’s motto, was “pile it high and sell it cheap”, a straight-forward business philosophy of “low cost and high volume”✪ along the line of the large Woolworths chain. One of Cohen’s “bargain basement” product mainstays was ‘Snowflake’, a New Zealand canned milk which accounted (together with Tesco Tea) for much of the early Tesco sales [Sarah Ryle, The Making of Tesco: A Story of British Shopping (2013)]. By 1939 there were in excess of 100 Tesco shops all round the United Kingdom. Where Cohen chose to locate a Tesco, seems according to his daughter (the future Conservative MP Dame Shirley Porter) to have been something of an intuitive hunch. As she later explained, they’d be driving around town and “he’d suddenly say ‘this looks like a good place for a shop’ and he’d leap out and chat a few people up”. This was the very hands-on way Cohen would conduct market research [Ryle, op.cit.].
After Jack died in 1979 Tesco’s expansionary trajectory continued unabated…there was a hostile takeover of Hillards supermarket chain in 1987, the acquisition of William Low shops in 1994 gave them a greater market concentration in Scotland, as did the snaring of Associated British Foods three years later for Ireland and Northern Ireland. The Safeways/BP shops, and a move into convenience stores T&S Stores and Adminstore followed. The opening of Tesco’s Leicester “super-sized” store in 1961 made it, at that time, the largest grocery store in Europe. By the 1990s Tesco had overtaken Sainsbury’s as Britain’s largest food retailer. So extensive has been the spread of Tesco shops, it is thought that only one postcode in the entire UK – Harrogate in North Yorkshire – doesn’t have a Tesco in it! [Clark & Chan, op.cit.].
Diversification also meant a dilution of Slasher Jack’s traditional retail philosophy of providing only the cheapest of the cheap. This change-up saw Tesco for the first time add upmarket quality items to its catalogues. The physical nature of Tesco’s retail outlets diversified during this period. To the standard supermarket format was added hypermarkets (called Tesco Extra) at one end of the spectrum, and “one stop” shops/neighbourhood convenience stores (Tesco Express) at the other. In between these polarities were Tesco Metro and Tesco Superstores. Such market manoeuvrability by Tesco has drawn praise from business analysts – Citigroup’s David McCarthy acknowledges Tesco’s capacity to “appeal to all segments of the market” [‘Tesco: Supermarket Superpower’, (Hannah Liptrot), 03-Jun-2005, www.bbc.com]. It has also been (reluctantly) commended by a critic of the grocery Goliath for its “clinical efficiency with which it carries out its business plan” [Andrew Simms, Tescopoly: How One Shop Came Out on Top and Why it Matters, (2007)].
Ripples in the Tesco ocean
The hostility of small retailers at Tesco’s strangulation of competition in the supermarket field❅ is not the only discordant note in Tesco’s recent history. Its high public profile has prompted at least two attempts at extortion using the threat of letter bombs…in 2000-2001 an individual tried to extort £5M from the supermarket giant (he was subsequently caught and jailed for 16 years); later a former tax inspector demanding £1M from Tesco, tried the same method (also apprehended and imprisoned). Tesco has tended to court controversy on occasions, eg, quantities of horsemeat were discovered in burgers and spaghetti sold by Tesco, and of course almost a by-product of runaway commercial success, there has been a slew of charges over the years that Tesco was engaging in tax avoidance schemes, tax minimisation, etc. Tesco was heavily criticised by the CEO of UNICEF UK in 2009 for appropriating the children’s charity’s slogan “Change for Good” and crassly using it for commercial advantage in company advertising [‘Unicef accuses Tesco of misusing charity slogan’, (Marie O’Halloran), The Irish Times, 25-Jul-2009, www.irishtimes.com]. As well there have been isolated incidences of individual Tesco shops discriminating against blind people (especially barring entry) [‘Tesco’, Wikipedia, op.cit.]. Tesco’s corporate response after such periodical outbreaks of bad PR has been to launch charm offensives aimed at the public (such as its “Good neighbour” policy in the 2000s) [Simms, loc,cit.].
Before the principals of Marks and Spencer teamed up, the entity was singular, just the one aspiring retailer, Michael Marks, and of material necessity he started very small. A late 19th century immigrant refugee from the Russian Empire’s Byelorussian region, Marks launched his first penny bazaar stall in Central Leeds’ Kirkgate Market with start-up funding amounting to one £5 note – which he had borrowed! Marks met his future partner at this time, Thomas Spencer, and eventually went into business with him after the latter, a Yorkshire cashier, invested £300 for a half-share in what became Marks and Spencer✱.
Early days: Establishing a chain of “penny bazaars”
Michael Marks kicked off with a very basic business model: his initial stall in Leeds was a “one penny stall”, hence the business’ motto, “Don’t ask the price, its a penny”⊡. The early stall commodities focused on household goods, haberdashery, toys and a sheet-music business (note the early spelling of the store name with an errant plural ‘s’ in ‘Spencer’ in the photo at left). Marks (the more dynamic and “hands-on” of the partners) immediately set about expanding the business, first up establishing a shop in Manchester. By 1894 Marks and Spencer had graduated to a permanent stall in Leeds’ covered market (in 1904 they opened their first Leeds shop) and in 1901 concentrated its open market operation in Birkenhead on Merseyside.
Spencer
Marks
Textiles and food
By the Twenties M&S had moved into the sale of textiles in a big way (launching its own laboratories to commercially produce new fabrics for the British market). In 1931 it added food to its portfolio of products…M&S’s own food technology department (from 1948) allowed it to offer chilled poultry to customers, instead of the hitherto frozen or pre-cooked options (courtesy of a new technology it called “cold chain distribution”) [‘What 130 years of M&S history can teach us about innovation”, (Hannah Jenkinson, 2018), www.about.futurelearn.com]. 
By the 1960s these two commodities, textiles and food, were firmly ensconced as the staples of Marks and Spencer. M&S were forerunners in introducing retail practices that enhanced customer satisfaction, such as the “money-back, no questions asked, no time limit” policy. 
Marble Arch – M&S flagship store ⬆
Marks and Spencer (colloquially and affectionately known on the street as “Marks and Sparks”) as at April 2017 could list a total of 959 operating stores across the UK✣, 615 of which traded in food only (the “Simply Food” label), evidence of how food products had come to prop up the other traditional areas of the business. Future prospects for the major British retailer remain somewhat nebulous after the company signalled in 2018 its intent to close around 100 M&S stores in the country by 2022. Retail finance watchers have also questioned, with such a reliance on food items, whether M&S can ultimately match it with the UK’s food and groceries powerhouse Tesco [‘M&S online food delivery service will be no piece of cake’, Robert Plummer, BBC News, 28-Apr-2017, www.bbc.com]. Still, Marks and Spencer remains in majority British hands (unlike its rival heavyweights Harrods and Selfridges). 
⬆ Commemorative M&S clock in Leeds market
The tortoise approach – slow and steady
Lewis took a conservative, uncomplicated (“keep it simple”) approach to retailing and only slowly moved his lines from silks, woollens and cotton fabrics to dress fabrics and clothing and later to furnishing fabrics and household supplies like China and ironmongery (but never food!). His philosophy was sell cheap and no ads (for nearly a century the John Lewis company continued a practice of minimal advertising!)✱. Unsurprisingly for a man described as “a Victorian curmudgeon” [‘John Lewis (1836-1928)’, Geoffrey Tweedale, Oxford Dictionary of National Biography, 06-Jan-2011, www.oxfordnb.com], his management style was rigidly autocratic, he often had abysmally poor relations with his staff and was prone to effecting arbitrary and sometimes wholesale dismissals. In 1920 Lewis’ “pig-headedness” and anti-union stance triggered deleterious industrial conflict…in 1920 the unaddressed grievances of Lewis’ shop-girls led to a strike by 400 staff. Lewis simply sacked the strikers and replaced them, but his arbitrary action brought him discredit and caused commercial ruptures adversely affected the company’s competitiveness vis-à-vis its retailing rivals in the long-term. ‘How John Lewis was the original store wars: As the retail empire celebrates 150 years, we tell its fascinating story’, (Brian Viner), The Daily Mail (UK),, 04-Jul-2014, www.dailymail.co.uk]
Under Spedan’s watch – JLP up and away!
Spedan wasted no time in taking ‘John Lewis’ in a very different direction to his late father’s ultra-cautious, steady-as-it-goes approach. In 1929 he reformed the enterprise into a public limited company, John Lewis Partners (JLP). Staff were rebranded ‘partners’ and made shareholders in the firm. Spedan diversified and pursued an expansionary route that Lewis Senior had so long doggedly eschewed. Smaller, less profitable chains were acquired – from 1933 on Spedan widened the John Lewis Partnership dramatically, adding purchased stores for the first time outside of London – Nottingham, Weston Super-Mare, Portsmouth and Tyrrel, Southampton, etc. [‘The 1930’s; a period of growth’, (Johnathan Blanchford), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk]. One of JL Junior’s ideas was to create a chain of John Lewis hotels, and to supply these hotels he bought a chain of grocery shops, known as Waitrose, in the Thirties. Waitrose proved a spectacularly profitable acquisition for John Lewis’⊛. As of 2016 there were some 353 Waitrose supermarkets across the UK, collectively worth more than £1B (one of only five such successful food and drink brands in Britain) [‘Waitrose’, Wikipedia]http://en.m.wikipedia.org.
Although Spedan was less autocratic, and certainly less confrontational✣, than his father, he was no democrat when it came to running the John Lewis business empire. Some observers (including insiders), recognising an inherited family trait, saw Lewis Junior as a “my way or the highway” type of business leader. Recollections of some ex-staff and associates point at a Spedan inclination to public losses of temper and the arbitrary and unfair treatment of staff on occasions, with a suggestion of a peculiar bias against staff (including managers) with ginger hair [‘Memories of Spedan – not all sweetness and light’, (Margaret Cole), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk].
2013: John Lewis presence in Westfield’s Shepherds Bush mall ∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸
✱ the John Lewis motto (dating from 1925) characteristically is “never knowingly undersold”
✧ the sale was the stuff of legend in London retailing – Lewis reportedly walked the distance from Oxford Street to the Sloane Square, Chelsea, Jones premises, with bank notes in his pocket to the value of £20,000 to complete the purchase in person. Today, Peter Jones is the ‘posher’ sibling of the John Lewis store
⊛ Waitrose is an upmarket grocer in line with the general emphasis of John Lewis merchandising
✣ JL Senior’s quarrelsome, confrontational nature was often fraught with consequences – a protracted turn-of-the-century legal dispute with Lord Howard, Baron de Walden, saw Lewis being sentenced to three weeks in gaol in 1903 for contempt of court [‘How John Lewis ended up in prison. A new century same old Mr Lewis’, (J Blanchford), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk]
✫ a monumental departure from the early days of JL Senior’s “sell cheap” strategy
⊡ currently around 30 JL stores in England, Scotland and Wales and concessions in the Republic of Ireland and Australia
Before I ever visited the UK I wasn’t at all familiar with Selfridges. I knew about Knightsbridge and Harrods and its preciously preserved pedigree all right…we’ve done that! My first time in London I was on a bus travelling (make that crawling) down Oxford Street heading towards the West End when I was enlightened as to the existence of the second-best known upmarket London department store. As the bus idled stationary I spotted a sign in front of a building that said ‘Selfridges’, my first thought, I remember, was “strange name!”…but when I think about it now I vaguely recall that I had previously heard the name Selfridges, but without inquiring further at the time I sort of formed the literal impression that it was a store as the name sounded that “sold fridges”, ie, a purveyor of domestic white goods! So when I did eventually get my beak inside the store’s doors at 400 Oxford Street I was surprised to see lines and lines of (pricey) fashion wear, shoes, accessories, skin care products, bags and more – but not one refrigerator in sight! (in its time it has apparently sold most everything!)
Even without visiting Selfridges’ flagship Oxford Street store, you may well be aware of it or of its US-born founder Harry Gordon Selfridge thanks to the recent ITV television series Mr Selfridge (first aired in 2013). The series was a period drama about the flamboyant, visionary retailer and the interactions that take place around him in his eponymous London department store✱.
A Marshall Field blueprint for London
Wisconsin-born Harry Gordon Selfridge initially earned his business ‘spurs’ working for Chicago department store Marshall Field & Company (right), this segued into him purchasing his own department store in Chicago. In hardly any time at all the mercurial Selfridge abruptly re-sold the business, making a quick profit and retired to play golf. In 1906 while holidaying in London, Selfridge sensed a new retail opening for his entrepreneurial talents in the British capital. For £400,000 he purchased land and surrounds for a novel custom-built, mega-department store in the then unfashionable, western end of Oxford Street [‘Harry Gordon Selfridge’, Wikipedia, http://en.m.wikipedia.org].
A ground-breaking, landmark modern steel-framed building
Construction of the Selfridge store was something of an architectural coup in itself. It won praise in its day from British building journals for its innovative construction methods…built with steel frames and reinforced concrete allowing for much narrower than usual walls, the frames permitted a far greater window area, so very large plate-glass windows could be installed (12 of which were the largest sheets of plate-glass then in the world!) – making for much more interior natural light and brightness (designed by famed US architect Daniel Burnham and associates). Originally comprising a 250′ x 175′ site, Selfridge’s had nine Otis passenger and two service lifts and six staircases. 100 separate departments were spread out over eight floors. While the physical construction of the Oxford Street store took only 12 months, Selfridge had first to overcome London City Council’s raft of objections (unprecedented size of the commercial structure, fire danger, etc). Selfridge and his engineers’ lobbying of the LCC Committee eventually resulted in the passing of two local building acts – LCC (General Powers) Acts of 1908 and 1909 – necessary for the Oxford Street project to be completed [Lawrence, ibid.]☯.
Selfridge, customer-centred strategies ahead of the curve
Harry’s approach to retailing was characteristically innovative on many fronts. Selfridge placed tremendous faith in advertising, the 1909 campaign leading up to the store’s opening cost a reported $500,000 in 1909 money [‘Selfridge Dies: Ripon Lad Who Jolted Empire’, The Milwaukee Sentinel, 9-May-1947 (online fiche)] (Britain’s biggest ever ad bill to that point) and he used it imaginatively together with ingenious publicity campaigns. Selfridge was the first retailer to make popular the idea of “shopping for pleasure”, rather than it being solely a functional task undertaken for necessity (as people conceived of it prior to Harry’s advent). In-store activities and arrangements often were original and novel (eg, displaying the monoplane used by aviator Louis Blériot in the first cross-English Channel flight at Selfridge’s (1909)✜). Another interest-generating feature in the store was Logie Baird’s television prototype shown on display in 1925.
A visceral, holistic experience
Selfridge’s vision was to make the department store more than just a shop where you went to buy goods, he continued to introduce new features to Selfridges…elegant (moderately priced) restaurants, a library, reading and writing rooms and special reception rooms for French, American and ‘Colonial’ clientele. There were cookery demonstrations in the kitchenware section. All this marked a radical departure from the practices of other department stores which employed floorwalkers to ‘shoo’ people out of the store who were just hanging around and not actively engaged in buying an item! Even the store’s roof was put to productive if curious usage (a shooting range for an all-girl gun club as well as an ice rink✧) [Lawrence, loc.cit.].
The female shopper as an identified demographic
Selfridge saw the role of the department store in macrocosmic terms – “the store should be a social centre, not merely a place for shopping”. Unlike the conservative establishment of the day and much of the mainstream, Selfridge endorsed the Suffragette Movement…the new store was (in part) “dedicated to woman’s service”. In a 1913 advertisement Selfridge described the store thus: Selfridge and Co: The Modern Woman’s Club-Store” [‘Suffrage Stories/Campaigning for the Vote: Selfridge’s and Suffragettes’, Woman and her Sphere, (Elizabeth Crawford), 16-May-2013, www.womanandhersphere.com; ‘Selfridge Lovers: The Secret behind our house’, www.selfridge.com]. Astute businessman that he was, Harry popularised shopping as a leisure activity specifically for women…to make it a more welcoming and conducive place for them to spend time (and money!), he displayed freshly scented floral arrangements and had open vistas in the store, he employed musicians to perform and added beauty and hair salons (Paris-inspired) and art galleries. And he introduced public restrooms for women to the store (the first time ever done!)❅
[Forbes, loc.cit.].
The H.G.S. leadership style
As retail magnate go, Selfridge went against the grain for his day by not being an authoritarian business leader. He was temperamentally inclined towards fairness with regard to remuneration, increasing the wages of his staff, elevating them above “wage slavery”, treating them as employees as opposed to ‘servants’ (cf. Harrods) [ibid.]…not to overstate it, Selfridges shop floor staff were still exposed to long, long hours of drudgery but they were paid a livable wage for their arduous labours. A sample of the quotes attributed to Selfridge reflect his anti-dictatorship approach to business and interpersonal relations: “The boss drives his men, the leader coaches them” ; “The boss depends on authority, the leader on good will” ; “The boss says ‘I’, the leader says ‘We'” ; “The boss inspires fear, the leader inspires enthusiasm” ; “The boss fixes the blame for the breakdown, the leader fixes the breakdown” ; etc.✥ [‘Harry Gordon Selfridge’, Wikipedia, op.cit.]
Selfridges post H.G.S.
Selfridge & Co’s reversal of fortunes signalled a move from its circling competitors…rival department chain John Lewis & Partners acquired some of Selfridges’ provincial stores in the Forties, which was a preliminary move to John Lewis’ eventual takeover of the flagship Oxford Street store (1951). In turn John Lewis was itself acquired by the Sears Group in 1965. Its current owners, the Anglo-Canadian Galen Weston company bought Selfridges in 2003 for a reported £598M. Today the store name ‘Selfridges’ survives on the Oxford Street building, and in the three other regional branches in the counties (Trafford Centre and Exchange Square, both in Manchester, and the Bullring in Birmingham).PostScript: ‘Selfridges gets Sixties hip In 1966, Selfridges, by now under Sears Holdings boss Charles Clore, recognised the youth market with a separate outlet for young women, Miss Selfridge (forming a link back to Harry Selfridge’s traditional focus on female customers). The new store in Duke Street signalled Selfridges’ wholesale embrace of the Sixties’ fashion revolution. Miss Selfridge used mannequins based on the straight line form of 1960s iconic model Twiggy and sold the latest in Mary Quant and Pierre Cardin fashions. In the early 2000s Miss Selfridge was acquired by the Arcadia Group [‘Selfridges 7 things’, op.cit.].
Harrods was the brain-child of London draper Charles Henry Harrod…from the 1820s he had small drapery and grocery businesses in the East End but the salient year for the company’s future trajectory was 1849. In this year Harrod moved his business to Brompton Road (Knightsbridge), its present and ultimate location. Harrods’ mid-19th century relocation to Knightsbridge was strategic in its timing and advantageous to the company. Knightsbridge and Western London were areas just being opened up to development at the time. Most opportune, the Great Exhibition of 1851 was held in nearby Hyde Park and Henry Harrod was able to capitalise on its drawing power to increase the store’s trade.
After some formative years on Brompton Road, the Harrods business bounded ahead especially after the founder’s son Charles Digby Harrod succeeded him in the 1860s. Under the energy and drive of Digby’s leadership Harrod expanded in piecemeal manner, accumulating neighbouring properties and land through astute purchases. A fire in 1883 razed Harrods to the ground, a calamity which Digby turned into an opportunity to rebuild the department store on a larger scale. Architecturally, the new Harrods was palatial in style with a terracotta tile facade decorated with cherubs and swirling Art Nouveau windows and a Baroque-style dome [‘Harrods’, (Civitatis London), www.londonbreak.com].
It was under Burbridge’s reign that Harrods’ profitability escalated⌻ and the business established its brand and retail style…high-end quality, expensive products but the best quality and value for money. And it was during this time that Harrods gained a reputation for the purveyance of goods and merchandise that was not easily obtainable elsewhere, hence the firm’s motto, Omnia Omnibus Ubique (Latin for “All things for all people, everywhere”). The other constant in the Harrods ethos and credo is service, the retailer has always prided itself on the advice and assistance given to customers, as the tag-line on Harrods’ home page seeks to stress: “Enjoy exemplary personal service and an experience that can only be found at Harrods.”
Pets are us! That penchant for providing the unusual and unexpected led Harrods to diversify into the pet supply business in 1917, but not just offering the commonplace, suburban garden-variety “moggies and mutts”. Harrods’ Pet Kingdom went for the real exotica in animals. For those exclusive customers who could afford it, Harrods acquired tigers, panthers, camels and the like. Who wanted such an exotic pet? In the main customers tended to be politicians, actors and celebrities. Noël Coward was the recipient of just such a gift, a friend purchasing an alligator for the playwright/composer/director/ actor/singer. Ronald Reagan, when running for California governor in the 1960s, contacted the store seeking a baby elephant (elephants being the symbol and mascot of the US Republican Party). Harrods’ legend has it that the staff assistant who took the call from America, replied to the future US president’s enquiry with the words, “Would that be African or Indian, sir?”✥ [‘Harrods’ pet department to shut after nearly 100 years’, (Pat Sawer), The Telegraph, 10-Jan-2014, www.telegraph.co.uk]
Pet shop boys By far the most celebrated of Harrod pet stories is that of Christian the lion cub. Spotted by two young Australian backpackers in a cage in Harrods in 1969, the three-month-old lion ended up back in the boys’ trendy Chelsea flat. A year later through the agency of actors Virginia McKenna and Bill Travers, the rapidly growing lion was repatriated to Africa and set free by wildlife conservationist George Adamson in Kenya. Most people are aware of the story as a result of the video made documenting the two backpackers’ later reunion with Christian in Kenya (see also Footnote).
Ownership passes offshore As the 20th century progressed, Harrods’ rising prestige and continued growth made it a desirable retail takeover target (despite a terrorist attack by the IRA outside the store in 1983 which killed six bystanders). In 1985 Egyptian shipping magnate Mohamed Al Fayed and his brothers gained control of the House of Fraser group which included Harrods (at a cost of £615M). Under Fayed Harrods’ growth proceeded and added his own personal touches to the store, nothing more personifies that than the (some would say) garishly lavish and cluttered Egyptian Hall✫. An even more personal touch is Fayed’s staircase memorial to his son Dodi and (Lady) Di (replete with a bronze statue of the couple with symbolic seagull). In 2010 Fayed sold Harrods to another foreign concern, Qatar Holdings (ie, the Qatari Royal family) for £1.5bn, citing as his reason ‘frustrations’ over government delays re a Harrods “pension scheme” [Mohamed Al Fayed reveals why he sold Harrods’, (Andy Bloxham), The Telegraph, 27-May-2010, www.telegraph.co.uk].
The Chinese are coming By 2017 the basis of Harrods’ profitability had shifted – internationally. The firm’s efforts in courting the growing Chinese Middle class over the previous decade had paid off (managing director Michael Ward has been making four trips a year to China over that period to develop the budding relationship). Chinese shoppers, with their focus firmly on high-end fashion and accessories, were now outspending British ones in this most English of department stores, Ward disclosed that the Chinese made more than £200M worth of purchases at Harrods in 2016 [‘Chinese customers heralded as Harrods’ biggest spenders’, (Bo Leung), China Daily, 28-Nov-2017, www.chinadaily.com.cn].
Footnote: Harrod’s Pet Exotica was in synch with a prevailing vibe in European culture, especially in the interwar period. It was a vogue for the fashionable and chic of society (actors, artists, musical performers, etc) to have (and be seen in public having) exotic animals, singer Josephine Baker had her pet cheetah, artist Frida Kahlo had a granizo (a fawn), actress June Havoc a toucan, artist Salvador Dali an ocelot. Even later, after the war, the exotic pet was a fashion accessory de jour for the famous. Sometimes the pairings were undisguisedly and unashamedly publicity-driven, eg, Salvador Dali walking an anteater on a lease in a London subway. Harrods itself has been known to resort to blatant PR stunts involving animals to promote itself, eg, the pop group ‘The Small Faces’ were photographed in the 1960s walking baby crocodiles in Belgravia borrowed from nearby Harrods! Recently, Harrods promoted its reputation for extravagance by using a live cobra to ‘guard’ a display of ruby and diamond-encrusted sandals valued at £62,000 [‘Eleven secrets of Harrods’, (Laura Reynolds – The Londonist), 12-Apr-2016, www.londonist.com]
Retailer with a shady past: CH Harrod ▲
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Building comfortable White enclaves?
With Black veterans of WWII turned away from Levittown, Bill Levitt was forced to defend his exclusivist policy. Despite avowing (rather hollowly) that “as a Jew, I have no room in my heart for racial prejudice”, Levitt sought to justify his position on the grounds that a White-only community was best for business. He argued that if he sold “to one Negro family, 90 to 95 per cent of White customers would not want to buy into the community”. Levitt was clearly not prepared to be an agent of social change if it meant a diminution of business profitability…self-interestedly and rather lamely he protested that it was unreasonable to saddle one builder with “the entire risk and burden of a vast social experiment” (even though the particular “one builder” in this case had been recognised by Time magazine as one of the 100 most influential people in America) [‘When the Niggers Moved into Levittown’: Review of David Kushner’s Levittown: Two Families, One Tycoon, and the Fight for Civil Rights in America’s Legendary Suburb, Journal of Blacks in Higher Education, 63 (Spring 2009): 80–81; Schuyler, D. (2003), ‘Reflections on Levittown at Fifty’, Pennsylvania History: A Journal of Mid-Atlantic Studies, 70(1), 101-109]. The FHA (Federal Housing Administration) was complicit with Levitt and other developers in the perpetuation of the practice of segregation, despite its clear violation of federal housing laws [‘Levittown, New York’, Wikipedia, http://en.m.Wikipedia.org]. Little wonder then that African-Americans saw the housing market as tainted, a “symbol of racial inequality”✱.
Desegregation of Levittown
Levitt resisted the criticism and made his third mass-produced settlement, Willingboro/Levittown in New Jersey, another Whites only community (no Blacks but it did permit White ‘ethnics’ – Hispanics/Latinos and Jews). By 1960 Willingboro had its first African-American family residing there (by 1970 it was 11 per cent Black). Only in 1968, after the assassination of Martin Luther King, did Levitt come out and announce that Levittown housing developments would no longer be racially segregated. Pointedly this occurred at the same time as the federal government enacted the Fair Housing Act into law [Kushner].
Over the years many sociological studies and much cultural criticism has focused on the Levittown housing model. An early take on Levittown described the housing project in aspirational working class terms as “the dream come true of the skilled mechanic in the blue dungarees” [‘Levittown U.S.A.’, A. Miller, Phylon Quarterly, 19(1), 1st Quarter 1958, 108-112]. Many observers have portrayed Levittown as a double-edged sword…”Levittown embodied the best and worst of the postwar American story”, some saw Levittown’s achievements symbolising America’s can do” spirit, its ingenuity and entrepreneurship, but for many liberals it symbolised violent prejudice, unthinking conformity and race-based exclusion [‘Levittown: The Imperfect Rise of the American Suburb’ (C Galyean), US History Scene, www.ushistoryscene.com].
From an aerial or from a panoramic view, Levittown did leave itself susceptible to satire…the clear-cut “cookie-cutter” pattern of little boxes and white picket-fence wholesomeness invited comparisons with the world of the 1950s as portrayed on American television. The neighbourhood houses and their neat configurations resembled the sets of Leave It To Beaver and Father Knows Best: images of irenic and idyllic communities of harmonious middle class suburbia…in other words, they looked like the cruel parodies of the American dream detached from realities – as depicted on the small screen [Review of Diane Harris (Ed), Second Suburb: Levittown, Pennsylvania, (2010), (DR Contosa)].
In 1968 Levitt sold Levitt & Sons to telecommunications goliath ITT for a cool $92M. Subsequent attempts by Levitt to replicate the glory days of Levittown in overseas housing projects (Nigeria, Iran, Venezuela) floundered, and then a big project in Orlando, Florida, also went “belly up”, with dire personal consequences for the realty developer. Levitt misused funds belonging to customers and from his charitable trust [‘Tough Times for Mr. Levittown’, (MT Kaufman), New York Times Magazine, 24-Sep-1989, www.nytimes.com]. The once great ‘King of Suburbia’ – whose multi-multi-million dollar business at its height was constructing 12 houses a day on its construction sites – died in debt, still dreaming of pulling off one more mega-housing triumph.
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✱ even after the removal of racial exclusion covenants in the 1960s, the 2000 Census revealed that Caucasian residents of Levittown, Bucks County, still comprised 98 per cent of the population
Postwar society – in America as elsewhere – was beset with a multitude of problems. Affordable housing was high on the agenda of priorities – servicemen returning from World War II and a new generation of Americans that would become known as the ‘Baby Boomers’ were about to come into the world. Due to preoccupation with the war and its drain on US domestic manpower, housing construction levels were well down at a time that birth-rate numbers were about to take off.
Levittown, New York
The first mass scale suburban project, commenced in 1947, was at Island Trees, a hamlet in the town of Hempstead (Nassau County, Long Island). 1,400 tract-homes were sold in the first three hours of the opening of the Island Trees estate sales office [‘Levittown New York’, Wikipedia Republished, http://wiki2.org], within four years the Levitts had built 17,500 homes in Hempstead. The company concentrated on small two-bedroom dwellings, predominantly ‘rancher’ or Cape Cod style, seventh-of-an-acre lots (750 square foot). These tract-houses as they are known in the trade were modest structures, for the most part pretty basic (a living room, a kitchen, but no garage, an unfinished second floor) and pressed fairly close together in rows. But they were (initially anyway) very reasonably priced as well, affordable to US veterans from the World War, Levitt’s initial target market (“the Levittown house was the reduction of the American Dream to an affordable reality” as historian Barbara Kelly described it). Each Levittown housing complex was divided into distinct sections.
Everything on site was orchestrated to work seamlessly, the tradesmen were scheduled to arrive in a strictly planned sequence. Bill Levitt admired automobile tsar Henry Ford’s production methods and replicated them in what was an assembly line style of home construction. The comparison was widely noted, Time magazine called Bill Levitt “the Henry Ford of Housing” [Schuyler]. Others, only barely a little less grandly, styled him “the King of Suburbia”.
Levittown, Pa. ca.1959
The Levitt covenants
William Levitt, in the first instance at least, once he sold families a Levitt house, did not entirely leave them to their own devices. Owners had to comply with certain suburban covenants that he wrote into the contracts…the rules and regulations included no laundry to be done on Sundays and no fencing off of yards. Owners were required to keep their lawns mown and neatly hedged. Bill Levitt himself would drive around some of the communities on Saturdays to ensure that the residents complied with this edict – when he spotted properties that were non-compliant, he would despatch his own lawn-mowing team to do the job and bill the owners on the following weekday [‘Suburban Legend William Levitt’, (Richard Lacayo), Time, 07-Dec-1998, www.time.com].‘Gentleman’s Agreement’, a lauded film of the day
As a kid my favourite board game wasn’t Monopoly, it was an old Milton Bradley game called Pirate and Traveler✱, however I certainly did play Monopoly an awful lot of times growing up (and it seemed like every game went for an interminably long amount of time!). So, having clocked up that amount of wasted Monopoly game-time, I was more than mildly interested to revisit my youth via a recent book on the universal and ubiquitous board game, and even more intrigued that its author, Mary Pilon, presents a radically different take on the genesis and development of Monopoly to what hitherto was been the received orthodoxy.
Ralph Anspach comes into the story in 1973, six years after Darrow—made a multi-millionaire by the runaway success of Monopoly—had died. Anspach is an avowed anti-monopolist, by conviction a “trust-buster” who is mightily annoyed at the OPEC oil cartel’s stranglehold over that essential world commodity at the time (the 1973 Oil Crisis). He pursues his ideals by creating an Anti-Monopoly game in opposition to Parker Brothers’ über celebrated game. Parker Brothers sues Anspach for breach of copyright and so begins nearly ten years of legal battles with Parker Bros (in fact by this time the company was controlled by the General Mills corporation)…Anspach’s tireless research for the case leads him to the true, albeit convoluted, origins of Monopoly☸.
The Monopolists recounts Anspach’s monumental efforts and endlessly time-draining “detective work” in minute detail. Anspach traces the game back to one Elizabeth (Lizzie) Magie (long pre-dating Darrow), and here’s where the story gets really interesting! Magie, an independent-thinking, politically progressive Midwestern woman, was a staunch supporter of Henry George. George was the author of Progress and Poverty, a widely influential text which fuelled the introduction of the Progressive Era in the US (1890s-1920s). George advocated the introduction of a Single Tax on land and property (AKA Land Value Tax). Ms Magie invented and patented a board game in 1903-1904☯, called the Landlord’s Game, based on Georgist principles of wealth redistribution. Magie’s game was in her words, “a practical demonstration of the present system of land-grabbing with all the usual consequences” [Single Tax Review, 1902], the Landlord’s Game was intended to educate Americans about the dangers of unbridled capitalism (ie, ultimately resulting in the monopolisation of business, benefitting only one player)⌑.
When I played Monopoly in the 1960s the takeaway message for me always aligned with the “Gordon Gecko/Greed is Good” world view…gold standard instruction on how to win at capitalism – with ruthlessness and a certain degree of luck! Pilon points out the fundamental irony of Magie’s “thought-child” – once Parker Bros got their hands on Monopoly, the company left not a single stone unturned in the pursuit of eliminating any rival claims to “their game”⊡. Monopoly, under the aegis of Parker Bros, a game with the sole raison d’être of annihilating all business competitors, leaving a solitary victor, was the complete opposite of what the game’s prototype inventor intended it to be! Moreover, to further underscore the irony, the game became controlled by a company (Parker Bros) that “fought tooth and nail to maintain its own monopoly over it”.
Back to Ralph Anspach’s anti-monopoly crusade – as well as introducing or reintroducing Lizzie Magie to the world, the economics professor’s years of searching, digging in archives, interviewing people of interest across the United States, word-of-mouth, friend-of-a-friend, sometimes down blind alleys, etc, revealed that the games (or games) of Monopoly had been played in various forms and under various names for decades before Charles Darrow’s Pennsylvanian neighbours introduced him to the game. Pilon ties together all the threads of Monopoly’s antecedents – as unearthed by the indefatigably never-say-die Ralph Anspach. What came to light was that Magie’s game, either in its original published form (‘The Landlord’s Game’) or in derivative ‘backyard’ versions, had been played (prior to the publication of Darrow’s Monopoly) as follows:
Unbeknownst to Lizzie Magie, many versions of her ‘Landlord’s Game’ had sprung up in the North-East of the country, often these early, widely dispersed players made their own homemade versions of Monopoly using hand-painted oil cloths, local street names and substitute tokens. In addition George Layton created and sold his own commercial version (which he called ‘Finance’) in the early 1930s. By the thirties a version of the game had spread to Texas – Rudy Copeland’s published board game of ‘Inflation’.
Pilon injects many diverse strands in the narrative, even Abraham Lincoln makes a brief (oblique) appearance in The Monopolists – in the late 1850s Lizzie’s father James Magie, a newspaper editor and abolitionist, was an instrumental part of Lincoln’s political campaigns for office…this digression has a very tenuous connexion with Monopoly! The various currents traversed by the author takes the story beyond the purview of being a straightforward account of plagiarised copyrights and game inventions. The book illuminates the position of women in late 19th/early 20th century American society by positing what made Magie stand out from others of her sex at the time and what she was able to achieve – taking on a number of vocations and pursuits, retaining her autonomy and avoiding the “marriage trap”, becoming an inventor (in addition to the Landlord’s Game she held patents for inventions in the realm of stenography as well).
The author takes the reader on another diversion, straying away from the origin controversy to surprisingly explore Monopoly’s role in World War II! The US Military purchased Monopoly sets to be sent to POWs detained in German prisons (and elsewhere in Europe). The intent behind this practice had a dual purpose: to boost morale for the imprisoned soldiers, but also a practical one – 
Coda: The after-affects of Ralph Anspach’s 1983 victory over Parker Brothers in the US Supreme Court (including the ruling that the word monopoly was in fact generic) hasn’t brought any sense of closure to supporters of Elizabeth Magie Phillips. The public acknowledgement warranted her as the true and original inventor of Monopoly has not been forthcoming. Pilon points out that in the 1980s Parker Bros “quietly began to massage its Monopoly history”…a 1988 history of the company by a former Parker Bros R & D head admits that Darrow was not the game’s inventor, but neglects to mention Lizzie Magie. Similarly, on the official Monopoly website in the Nineties, Hasbro, Inc, which purchased Parker Brothers in 1991, starts the Monopoly story at 1933 with Darrow and scantly acknowledges the influence of the Landlord’s Game (again without mentioning Lizzie by name!) No plaque for Lizzie’s prototype of the Monopoly game exists anywhere (although there is one in Atlantic City recognising the contribution of that city’s Quaker players to the invention of the game!)
The suburb of Rosebery, six kilometres from the CBD, is part of the modern makeover of the once dominant industrial landscape of South Sydney. One of the suburb’s newer buildings, known as ‘The Cannery” (a former warehouse and cyclone fencing factory), gives a clue to a very different Rosebery 100 years ago. One of the building’s new tenants is a restaurant called Stanton & Co, the name references the man who was instrumental in developing the suburb in the early 20th century, Richard Stanton.
Beaconsfield, NSW
Among the minutiae of miscellaneous info contained in the directory’s index, one item that got my attention was a list of the consuls and overseas government agents in Sydney in 1922. Interesting to see that at that time there were consulate offices established in Sydney for tiny international entities like Latvia, Nicaragua, Columbia, Ecuador, Honduras, Serbia and the Czechoslovak Republic, but being not yet four years after the cessation of the hostilities of WWI, no consulates for the countries deemed by the victors to be the “guilty parties”, Germany, Austria, Hungary and Turkey. So much for moving on!!!…and we all know where that path catastrophically led!
Ad for the Orient Line
Royal Autos in ‘Wilson’s’
The original (1907) Challis House
The “Half-way House” of Blue Mts
Katoomba, the “largest of the mountain tourist resorts” with its “wide choice of charming and picturesque views”. Despite being 68 miles from Sydney, “horses and vehicles are always obtainable” – as this advertisement (left) on page 706 offering trips to the famous Jenolan Caves in luxury Buicks testifies.
Nearby Leura is “celebrated for the beauty of its great showpiece – the Leura Falls…in themselves alone worth the trip to the mountains”. With unfettered enthusiasm the writer goes on to laud the town in extravagant terms: “the place has been so well laid out as a tourist resort that it offers a perfect kaleidoscope of the views”. The object of Wilson’s Director is clearly to sell the Mountains to visitors from Sydney which synergises nicely with the numerous accommodation ads (funny that!) that appear such as this one (right) for Leura’s Hotel Alexandria (still in business in 2018).
The spa town of Medlow Bath, is “a pretty little village, rising rapidly in tourist favour”. The tiny Upper Mountains town is famous for its Hydro-Majestic hotel resort where in the day the better-off citizens of Sydney would periodically retreat to benefit from its therapeutic mineral waters and clean mountain air. Built by retailer Mark Foy (Jr) as a hydropathic sanatorium, the “Hydro-Maje” in the Twenties was where the cream of Sydney’s elite flocked on the weekends to socialise.
Jenolan tourer (Blackheath)
Mt Victoria, 79 miles by paved road❂ from Sydney, the highest point of the Blue Mountains (the guide gives it at 3,424 feet above sea-level)⍍, is praised for the scenic countryside surrounding the town dotted with charmingly named spots like Fern Cave, Fairy Bower, Fern Tree Gully and Witch’s Glen, for the walker to explore.
Upper Blue Mts map (‘Wilson’s’)
The 1960s Sydney motorist’s Vade mecum
▲ Webber’s “One stop shop”!
▲ Strathfield: free from “Influences of the Sea Air”
▲ The “Digger” Agents at Roseville
Newtown 1922: Hire-a-luxury wedding vehicle
▲ Bulli Motors: cars, motorcycles, bicycles, for Bulli Pass
▲ A horse-intensive removals firm!
Rookwood handiwork
▲ 1922: Home entertainment unit
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‘1922 Wilson’s Director’
Curiously there are some variances in the kinds of type-face used in different maps, some use a Gothic font in contrast to the classic style. ◀ The Redfern-Darlington map at left differs from the type used in most maps. On a few seldom occasions maps make reference to the traditional, nineteenth century British land concept of parishes (eg, the Parish of Gordon)…this seems extraneous as the maps and the book largely follow a division by municipalities.
Gordon Rd – in the days before the upgrade to a highway and renaming
The colliery (deepest mine shaft ever sunk in Aust.) in the 1940s (still operating at that time)
The Glebe
Mascot with a racecourse where the airport should be!
East Subs’ residential paradise
The other side of Strathfield municipality
Eastwood map, p235: site of future MQ University just to the south of Lane Cove River
Dee Why
South Kenso & Daceyville
Penrith & the (“world-class”) Nepean
The cover of my edition is long gone but the 1926 edition is very approx.
‘ Gregory’s’ 1st street directory of Sydney 1934
PTT, “Whoosh✱ and Go!” technology, the 19th century’s version of “Tap and Go!”
Jason Farman has described the application of pneumatic tubes to postal services in the 19th century as “the instant messaging systems of their day”. According to Farman, being able to use pneumatic post to communicate, gave people in the nineteenth and twentieth centuries an “instant connexion”…pneumatic post meant that they were able to “keep in touch all day long”⊡. Moreover people saw the pneumatic tubes’ facility to deliver articles rapidly as “a symbol of modernity” [‘Pneumatic tubes: the instant messaging technology that transformed the world’, James Farman, interview with ABC Australia, 13-Jun-2018].
Sketch of AE Beach’s pneumatic transit tunnel
PPT system despatch point (Washington DC, early 1940s)
Manhattan pneumatic mail route
A maze of tubingRoosevelt Is: narrow stretch of land 3.2km long in NY’s East River
Wm Murdoch
The London pneumatic tube mail train at its formative stage!
(Photo: Science Photo Library)
Capsule [National Postal Museum (Smithsonian)
Parisian Poste Pneumatique network (Musée de La Poste)
Prague PTT engine room
Receiving point with collection trays
⍍ Grace Kelly’s 1955 Hitchcock film made on location in the French Riviera that led to that momentous meeting between America’s “patrician pure-bred” star actress and Monaco’s bachelor monarch – and a subsequent change of careers and destinies!
The Hydro Majestic Hotel stands on the upper slopes of the Megalong Valley in the Blue Mountains, about 116 kilometres west of the Sydney CBD. Last December it re-opened for business six years after it’s resale and interim closure in 2008. The new owners, the Escarpment Group (a consortium of Sydney developers headed by Huong Nguyen and George Saad), have an ambitious vision for the Medlow Bath hotel, including an extension to its facilities and services, and a major renovation of the once great Blue Mountains landmark to restore some of its past glory. About four years passed before construction work even commenced on the site. Initially the new owners had to undertake a big clean-up job of the vacated property as a very large amount of assorted clutter was left behind by the previous occupants [‘Saving a grand old beauty’s soul’, Peter Munro, Traveller, 7 January 2013, www.traveller.com.au].
Mark Foy’s Liverpool St store
Foy’s Blue Mountains ur-health resort
Upon completion in 1904 Foy opened his Medlow Bath hydropathic sanatorium (the first health resort in NSW) which he named the Hydro-Majestic. By this time whatever springs were present (if they ever existed) had dried up. Consequently Foy imported large quantities of mineral water from Germany for use in his establishment [www.hydromajestic.com.au (Wikipedia entry)]. He also introduced a German-manufactured generator to supply the Hotel and the surrounding township with electricity (purportedly four days before the city of Sydney achieved electricity!) [www.hydromajestic.com.au, ibid.].
Mark Foy Jr
Majestic skyline
‘The Lost World’
The Hydro – in its down-market days
A Zimmerman
In keeping with the hybrid nature of the hotel, parts of the new Hydro Majestic exude a distinctly oriental flavour. The Salon Du Thé features a Shanghai chic tea room and bar and both it and the Cat’s Alley reprise many of the oriental traits of the original 1900s Medlow hotel which featured a Chinoiserie style favoured by Mark Foy. The Majestic’s original Salon Du Thé displayed ornaments and furnishings which included large Chinese vases and porcelain vessels, bamboo-look furniture and silk umbrellas [www.hydromajestic.com.au].
