The Grantville Gazette - Volume 1 Part 13

The Schmidt girls were entranced. Had they had their way, Higgins sewing machine model A serial number One would have been sold then and there. They did not have their way, however. Higgins A1 would never be sold-though in future years, some collectors would offer truly exorbitant sums trying to buy it.

Karl was, in his staid stolid way, rather entranced himself. He had seen the Singer work. He had known this was coming, but he had not seen the look on his youngest daughter's face when something that would have taken her hours and would still not be done to her sisters' satisfaction was done neatly and evenly, in less than a minute.

There was definitely a market, but how were the tailors going to react? There were none present today.

There were guild rules and there were laws about who could make clothes, but no rules about using machines to make clothing. Not yet, anyway. Karl got to meet several people he had wanted to meet for some time. The Wendells, and Dave Marcantonio especially. He needed to know things before he decided what to do.

Food had been cooked, and brought by guests. There was not nearly enough Coca-Cola for all the guests, so it stayed in the fridge. Beer and Kool-Aid were available though. Conversation flowed.

Problems were brought up. The cost of the sewing machines was still very high. The value of the company had jumped sharply from what it had been just the day before. Legal questions about children running a company, that had seemed less important when it was a hobby in all but name, were asked.

Where would sewing machines be sold? How would they be sold? Sarah Wendell held forth on the subjects of dealerships and "rent with an option to buy."

David Bartley wandered around the party, getting more and more worried as time went on. Aside from Mr. and Mrs. Wendell, there were some other members of the finance committee, and they were busy questioning whether children should be allowed to manage such a potentially valuable export. Mr.

Schmidt was asking about the possibility of buying production machines from Mr. Marcantonio. Was he planning on going into compet.i.tion with them? With the completion of the first working sewing machine, they had reappeared on adult radar, and were in real danger of being shot out of the sky. For their own good, of course.

David didn't trust the motives of those that expressed doubts children could run a company. It seemed to him that many of them were searching for ways to jump onto the gravy train now it looked like it was going to pull out of the station and actually go somewhere. Others appeared to resent their success in the face of adult wisdom.

October 12, 1631: Grantville High School Sarah had bad news. "I've been checking into the laws regarding corporations. It is illegal in West Virginia for minors to be on the board of a corporation."

"But we're not in West Virginia," insisted Brent. "We're in Germany." He knew better, he was just upset.

"It doesn't matter." Sarah shook her head. "Grantville corporate law is West Virginia corporate law without so much as a period changed. Maybe we should forget about incorporating."

"Maybe not," said David. That moved everyone's stares from Sarah to him. "I was listening to some of the people at the party yesterday. They were worried about leaving the Higgins Sewing Machine Company in our hands. When we actually built a sewing machine, some of the grownups that were never too keen on the kids running a company started paying attention again. Incorporation may be a way to satisfy them, without having them take over. Sarah, are there any other jobs in a corporation that a minor can't hold, like say Chief Engineer, CEO, CFO, any of that stuff?"

"I don't think so. In fact there almost can't be. What jobs there are in a corporation changes from corporation to corporation. How could they make it illegal when all the corporation had to do to get around the law is change the name of the job?"

"Is there a law against a minor owning stock or voting stock?"

"Not owning, I'm pretty sure. Voting I don't know. I think it would be like other stuff kids own. Their parents could probably veto their selling it, and vote the stock for them, or maybe not. It could be something determined in the corporation's bylaws. I can probably find out."

"We can incorporate and select the people on the board of directors, and the people that don't like the idea of kids running a company can look and see that the board of directors is made up of responsible grownups. 'We ain't running things, just doing our jobs the way the board tells us to'." David grinned. "Of course, since the four of us and Grandma hold the biggest chunk of stock, we elect the board. Which will be Grandma, and a few other people. Maybe Mr. Marcantonio, and maybe your parents?"

"I don't know," mused Trent, a bit dubiously. "Mom and Dad are all right, but they take their responsibilities really seriously. So far, they have looked at this as your Grandma's company, with us helping out. We get the occasional lecture about listening to Mrs. Higgins, and the great opportunity she is giving us. I think they have sort of a.s.sumed she has been making the decisions right along."

"It's the same with my parents," said Sarah. "There may even be some truth to it. She lets us make the decisions, but she is sorta there. You do the same thing, David. When we get into a fight, you start bringing up stuff that we've forgotten then. I don't know, we're agreeing again, and we have a plan."

This came as a revelation to David. He hadn't realized the others knew what he was doing, and he hadn't realized that Grandma was doing the same thing. He wasn't sure he liked it.

Brent looked at David and started laughing. Then Trent and Sarah joined him. All this time, David had thought he was getting away with something, and all the time, the others had been letting him do it.

"Anyway," David said as much to change the subject as anything, "now that we have a sewing machine, what do we do with it? And the next one, and the one after that. How do we sell them?"

"Rent with an option to buy," said Sarah. "Layaway, and in-store credit, first in nearby towns, then through dealerships. If someone wants to pay cash up front we'll take it, but I don't expect that to happen often. They are just too expensive. I figure we're gonna have to charge about four months wages for a journeyman tailor for each machine, or more. I don't think we'll sell many in Grantville. The big plus for our sewing machines is they don't need electricity, that's no big deal here."

"What about the laws restricting who can sew what?" asked Trent.

"Not our problem. If someone wants to buy or rent one, we a.s.sume that they are only going to use it to sew in legal ways. Stupid laws anyway."

"I don't know," said David. Then, seeing Sarah's look, he held up his hands before him; fingers in the sign of the Cross, as if to ward off a vampire. "Not about the 'stupid law' part. About the 'not our problem' part. I figure the tailors' guilds will do everything they can to make it our problem. Making clothing is big business. It employs a lot of people. Some of them are going to lose their jobs. A lot of them, actually. As best as I can tell, it seems to take about a man-week to make one set of clothing.

Most of that six-day week is spent just sewing the seams. That is one tailor fully employed for every fifty-two men. For one suit of clothes per-year per-man. It's less than that, but that's because most people don't get a new set of clothing every year. More like every two or three years. I've been talking to some of the German girls."

That announcement brought "Woo Hoos" from the guys and a haughty sniff from Sarah.

"About their hope chests," corrected David, which only made it worse. "About the sewing in their hope chests."

David tried again to get the conversation back on track. "That's mostly what's in them, you know.

Clothing, blankets, bed linen, sewn stuff that they take years making, and it's not because cloth is so expensive. Well, not mostly. Mostly, it's because it takes years to sew the stuff. The women will love the sewing machines, but the tailors won't. Have any of you guys had a run-in with Hans Jorgensen?"

That bought the guffaws to a halt.

They had indeed had run-ins with Hans. In most ways, Hans was a standard down-timer kid trying his best to a.s.similate, but Hans hated sewing machines and sewing machine makers. It was a fairly convenient hate. He had no direct contact with sewing machines and there were only four sewing machine makers in Grantville, all teenagers. His father was a master tailor who was now reduced to working in the labor gangs because there was not enough work in the tailor shops. Why wasn't there enough work in the tailor shops? Because the Americans had sewing machines, and aside from fitting and finishing, they didn't need tailors. Clothing, for the moment, cost less in Grantville than it did anywhere else in Europe. The difference between the cost of the fabric in a suit of clothing and the price a tailor could get for a finished suit of clothing was not enough to pay for the labor of the tailor-not without a sewing machine, and Hans' father didn't have one. Also, as the cost of sewing had gone down, the demand for new cloth had gone up and so had its price.

"I know, Hans is an A-Hole," David continued, "but I feel a bit sorry for him. He was an apprentice tailor before his village got trashed, worked for his father. They get to the haven of Grantville, and find out that all the sewing machines are rented, and no one is hiring tailors. His dad is in a general labor gang, and Hans goes to school, and what is everyone in school talking about? A bunch of kids making sure that he will never be able to do the work his dad had taught him to do.

"Now that we're up and running, housewives all over Germany will bless the name of Higgins, but tailors will hate our guts. I figure that there is about one tailor for every two hundred people in Germany, and right now, every one of them is needed. Once the sewing machine becomes common, it will be one tailor for every thousand or less. So, in towns where the tailors' guild is strong, we're liable to see laws against sewing machines."

October 13, 1631: Delia Higgins' House Delia had talked to Dave Marcantonio and Fletcher Wendell, and been lectured by Quinton Underwood. The storage lot was a real waste of resources. Ray had insisted on shed-sized steel containers instead of sheds when they had set up the storage lot. They were more expensive, but with the thick enamel paint they were a maintenance dream. They were also made of great big corrugated steel plates an eighth-inch thick. Grantville needed the steel.

No one was going to just seize them, true. Quinton Underwood gave the impression he'd like to, but that was just Quinton being his usual bossy self. Delia would be paid, and paid a fair price-more than they had originally paid for them. Plenty to put in wooden sheds and make up for the lost rent. They wouldn't force her to sell if she didn't want to. But they were right, Grantville needed the metal.

They were right about something else, too. Grantville didn't really need rows of little sheds for people to store their excess junk. What was really needed was industrial warehousing, big buildings, where raw materials could be stored for later use, and finished products for later sale. The amount of s.p.a.ce that Dave and Fletcher were talking about would cost more than storage sheds to build, a lot more, but it would be worth more too. To her and to Grantville.

It meant the rest of the dolls, or at least most of them, and maybe a bank loan to cover the difference.

Fletcher said she could probably get a bank loan to cover the whole thing, but the monthly payment would be a killer. She would be much more likely to go broke if anything went wrong. Besides, Dan Frost had talked to her about the danger of keeping her dolls in the house when everyone knew she had the collection.

Delia knew it was the best course, but the dolls were committed. She had promised them to the kids if they were needed, and they might be yet, in spite of the fact that they were in production now. She almost dropped the idea without mentioning it. But Fletcher Wendell would probably tell Sarah and Dave would tell Kent, who would tell Brent and Trent. She hadn't asked anyone to keep the discussions secret. If she didn't bring it up, the kids would worry about it.

"You've all heard about the storage containers?"

The kids nodded. Delia told them about the possible warehouse, and what it would cost to build.

Significantly more than had been invested in the sewing machine company. How long it would take. The rest of the winter and most of the spring. Even if she got use of some of the construction equipment. She told them that she could probably get a loan to cover the whole amount, but the more she could put in up front, the better it would work. "But don't worry, I won't use the dolls, they are promised to you."

Brent, Trent and David looked at Sarah. Sarah was the CFO, and incorporating was her plan.

"Dad likes to quote 'If' by Rudyard Kipling," Sarah said, "The line that goes: 'If you can make one heap of all your winnings and risk it on one turn of pitch and toss.' Then Mom says: 'If you do that I'll divorce you. Even if you win. Diversify!'"

Sarah shook her head. "We all have to gamble now. Since the Ring of Fire, everything we do, every decision we make is a gamble. Maybe they always were and we just didn't notice it before. But we don't have to gamble dumb. Risking it all on one turn of pitch and toss may be very manly. But it's not real smart. We women," she continued with a haughty look at the boys, "say things like 'never put all your eggs in one basket.' The sewing machine company is one basket. It's a good one, I think, but it's only one. The warehouse is another. You've already put some of your dolls in Higgins Sewing Machine Co.

Now it's time to put some in Higgins Warehousing Co."

Sarah gave Delia an almost pleading look. "But Mrs. Higgins, please keep some for you. Besides," she continued in a much more practical tone, "the way things worked out, it will be very hard for us to go bankrupt. If we had gotten the loan, then defaulted, the bank could have taken everything we had, but since we didn't get the loan, the sewing machine parts, the production machines we have so far, and one down-time made sewing machine are ours. We have no outstanding debt. Well, except for the money we owe Mr. Marcantonio for the last production machine. We have a plan for that though, and for some other stuff that has come up.

"We think we should turn the company into a corporation. If we convert to a public corporation, with say two hundred thousand shares, we'd take a hundred thousand of them to represent present ownership, and then gradually sell off some of the other hundred thousand as needed. Even at just a dollar or two a share, we should raise enough to handle any problems that come up. Also, I am pretty sure Mr. Marcantonio will be happy to take payment in shares for the last production machine he made.

"Every new part and every new production machine is that much more value the company itself has. So we can use the work we have already done, and the equipment we already have, to get more financing through a corporate loan secured with stock or the sale of stock. We're in a much better position to do that now than we were when we started. Now we can show people working machines, and an inventory of parts."

"What about the possibility of losing control?" Delia wanted to know.

"We've talked about that," said David. "Early on, the thought of losing control really bothered us. We figured that if we showed it to an adult, they would pat us on the head and then ignore us. Or treat it like it wasn't real. Like it was a school project or something. Part of it was, we weren't really sure that it was anything more than a pipe dream. We were afraid that even if it could work, we couldn't get anyone to believe that it would work."

"But you believed in us," said Brent, "and now it's not a pipe dream."

Sarah chimed in. "Between your shares, Johan's, and ours, we would have seventy-seven thousand shares. Even if everyone else that owns a part of the company now voted for the takeover, which they won't, they would still need to buy fifty-four thousand shares. That is a lot of money, and if they spend that much, they will still be leaving us"-Sarah waved to indicate that us include Delia-"and Johan thirty eight point five percent of the net profit on the business, while they would be doing all the work."

"But if eventually someone is willing to put up that much money to take control," said Trent, "Let them have it. With our shares, we'll be able to raise the money to start another company making something else."

What Trent didn't say, but everyone understood, was that, having started one successful company, the kids would be listened to when and if they decided they wanted to start another.

"Besides there are people that want to buy stock," said David. "Suppliers from the towns around Grantville and kids at school."

October 14, 1631: Badenburg There were four tailor shops left in Badenburg. There had been eight before the Ring of Fire, and they had employed sixty-seven people between them, including apprentices. The four that were left were the best and most prosperous, and now, including apprentices, they only employed twenty-three people. It was ridiculously easy for people from Badenburg and the other towns within a day's walk of the Ring of Fire to go to Grantville to buy cheaper clothing. Which is precisely what they had been doing. Several of the tailors from the surrounding towns had moved into Grantville seeking other work. Others had moved away, with a less than glowing view of Grantville.

The tailors' guild in Badenburg heard of the completion of the first locally made sewing machine the day of its completion. They hadn't been at the party, but others had, and they had been told. They called a meeting of guild members, but they could not decide what to do. If they outlawed sewing machines, all it would do was encourage people to go to Grantville to get their clothing. a.s.suming they could get the town council to agree to it at all, which was not likely. Badenburg's security was now dependent on the Americans in Grantville.

Sewing machines would come into Badenburg, they would do much of the tailor's work, so most of the tailors would be out of jobs. A few would actually do better, the ones who owned the shops that got sewing machines. They would make more profit on their clothing than they ever had. For the rest, it was move away, or find another job. In the middle of a war, where could they go? They couldn't afford to move when they had nowhere to go. There was work in Grantville, but it wouldn't be in the craft they had worked in for years.

Not all members of the tailors' guild were willing to accept that. There was talk of direct action. Of destroying any sewing machine sold in Badenburg and the shop of the buyer. Only talk, however; offending Grantville by destroying its products wouldn't do any good and might well do tremendous harm. No one had forgotten the Battle of the c.r.a.pper, nor had they forgotten what Ernst Hoffman and his soldiers had done to Badenburg before the Americans had stopped them. What would the Americans do if offended?

After the meeting had ended, Bruno Schroeder, Guild Master for the tailors' guild in Badenburg, visited Karl Schmidt. Karl had been a long time friend. At the same time, Bruno knew that Karl was providing parts for the sewing machine company. They had discussed it casually a couple of months ago. Karl had mentioned that the company attempting to make the sewing machines was run by children. Bruno had a.s.sumed that they were unlikely to succeed. At the time, Karl had not been all that confident in their success either. Bruno wanted to know what Karl thought now that the first sewing machine had been completed. Would they get better at it? Would they eventually be able to turn out a sewing machine a month?

Bruno was a tailor, and a high-end tailor at that, not a manufacturer. He realized that the sewing machine makers had had some set up work to do on the first sewing machine, but Bruno was an artist. Making the second set of clothing was not all that much faster than the first. The same pattern could be used, and you now had experience on the individual's fit, but the time savings were minimal. More important than that, Bruno Schroeder did not realize how quickly the Higgins Sewing Machine Company could make sewing machines because he did not want to. He had closed his eyes and put his hands over his ears. He had come to Karl hoping desperately that he could continue to do so. He couldn't.

When he explained his question, Karl looked at him as if he were an imbecile. Not for long, it took Karl only a moment to get his face back under control, but that look was a shock. Bruno was politically and economically astute, the master of his guild and a political power in his town. It had been a good twenty years since anyone had looked at him that way.

"They will have another sewing machine complete in less than a week," said Karl, as gently as he could.

"Then it will get faster. There will be occasional slowdowns, especially at first, but over all it will get faster. Till there is a sewing machine for everyone who wants one, and can afford one."

For Bruno it did not mean that he had to go out of business. A lot of tailors would, but not necessarily Bruno. He had the money to buy a sewing machine; he could remain in business. What it did mean, was that the basis for his political power was dying. His guild was dying. There would be fewer tailors in the future, fewer guild members. As its numbers decreased, so too would its power. Much of the time-consuming work of tailoring would be done by the new machines. People who had worked all their lives to learn a trade would have to start over, and to the best of Bruno's knowledge, no one was taking on fifty-year-old apprentices. Nor was his concern just for the political power, he also cared about the members of his guild.

October 20, 1631: Rudolstadt Bruno Schroeder had heard that a sewing machine had been sold to the last of the tailor shops in Rudolstadt. There was not much he could do about it and he understood the reasons. With Rudolstadt even closer to Grantville, and a smaller town, it had been hit harder by the new compet.i.tion. Warner Rudolen had to be hurting. Still, Bruno wanted to see how it was working out. What Warner thought.

What Warner thought, was that he might just stay in business after all. Grantville was becoming a very crowded town. Not everyone wanted to go there. Now he could sell clothing for as little and sometimes less than they sold for in Grantville, and some of his customers had come back. He was saving on cloth because, with sewing so cheap, he cut using up-time patterns. He showed Bruno what he meant.

Generally a pair of pants was cut in two sections, one for each leg, which meant you only had to sew the inner seam. But that meant the sections were shaped in such a way that more of the cloth was wasted.

The up-timers cut the cloth in four sections, two for each leg, which saved on cloth, but meant more sewing. With the sewing machine he could do it the up-timer way and get an extra pair of pants out of a bolt of cloth.

He didn't have enough work, though. Not nearly enough. He could take a customer's measurements and have a full set of clothing for them the same day. He could do that by himself, and he didn't get a customer a day. He was encouraging his younger apprentices and journeyman to look for work in other trades. Without the sewing machine he would be looking for another trade.

That was when Bruno Schroeder really realized that he could not win a fight against the sewing machine.

Tailors would buy them no matter what he did.

October 22, 1631: Grantville Bruno discussed it with the rest of the Tailors' Guild. They agreed they didn't have much choice. He then asked Karl to provide him with an introduction to the sewing machine makers. When he met Delia Higgins, he knew that even the last bit he had been hoping for would not be forthcoming. They would not agree to limit their sales to members of the tailors' guild. All that was left was to be first in line to buy one.

The Higgins Sewing Machine Company got five orders that day. More than they had the machines in stock to fill. After Bruno left, they wondered why he had given in so easily.

Suddenly it occurred to David that they had been looking at it from the wrong angle. They had all read about the riot that had ruined Barthelemy Thimmonier, the Frenchman who had built the first recorded sewing machine. They had a.s.sumed that the rioting tailors who had burned him out and almost killed him had objected to sewing machines. But he now realized that things were more complicated than that.

Barthelemy Thimmonier hadn't been a sewing machine manufacturer, he had been a tailor. Well, a clothing manufacturer. When he built sewing machines, he didn't sell them, he used them. Suddenly other tailors were losing work to Barthelemy Thimmonier, and when he wouldn't sell them the means to compete, of course they were mad. They weren't mad at him for making the machines, they were mad at him forhogging the machines. That was the difference between him and Singer. Anyone who wanted one and could pony up the cash could buy a Singer sewing machine, but only Thimmonier could have a Thimmonier. If there was one business that the Higgins Sewing Machine Corporation must never enter into, it was the manufacturing of clothing. That way, if the tailors rioted, it would be against someone's tailor shop. Sweatshop more likely.

They had been worrying about Barthelemy Thimmonier from the beginning, afraid of ending up the victims of an ignorant mob. But Thimmonier wasn't the victim of an ignorant mob, he was the victim of an informed mob. A mob he had made himself because of the way he chose to make his money. If he had sold sewing machines he would have gotten rich; instead he was burned out, nearly killed, and finally died a pauper.

October 26, 1631: Grantville The papers of incorporation had been filed and approved. The production of the first few sewing machines had made it a reasonable move, and apparently no one had looked real closely at the by-laws.

At least, no one had commented on the clause that allowed minor children twelve or older to vote their own shares.

The first stockholders' meeting of the new Higgins Sewing Machine Corporation was held in the Higgins'

living room. Delia Higgins was voted chairwoman of the board. Dave Marcantonio accepted two thousand shares of stock as payment for the last production machine and was promptly voted onto the board. So was Johan Kipper.

Sarah presented her plans for selling sewing machines. Brent, the plans for several new machines which would decrease the per-unit cost of production, with several interruptions from Trent. David was mostly silent, until the end.

Then he brought up the problem. No money. After they had built the first working sewing machine they had averaged two a week. They had now made five including A1, but they were going to have to stop a.s.sembling them for a while to make room in the garage to make new parts. They had sold one sewing machine to a tailor shop in Rudolstadt that had been trying to get someone to convert an up-time machine to treadle power for more than a month. They had had to use Sarah's "rent with an option to buy" plan because the shop could simply not afford to buy it outright. It would be paid off over the next year. It was probable that Mr. Schmidt would buy one for his family sometime soon. But he would probably not pay cash either. The sewing machines were just too expensive for that. Count Guenther of Rudolstadt looked to be interested in buying one and he would probably pay cash.

They had started out looking at storefront property, way too expensive. They had gradually lowered their expectations. They were now looking for a barn somewhere they could rent. As their machines didn't use electricity, the motors adding too much to the cost for the company to afford them, they had considered renting some place in one of the surrounding towns. Their problem was the complex laws about who could and couldn't do what in towns in central Germany looked likely to defeat them.

They were going to sell some stock, but how much? Mr. Marcantonio's two thousand shares had cleared HSMC's only debt but didn't put any money in the kitty. Sarah's little sister Judy the Younger wanted in and was prepared to pay for the privilege. She had six Barbie dolls and was willing to part with five of them. They were still arguing over how many shares that would buy. Judy the Younger wanted it to be based on the price in Venice. Sarah was pushing for the price paid by Master Vespucci.

October 26, 1631: Fortney House Judy the Younger had a plan. Judy did not have her sister's economic talent, nor did she know nearly so much about business. In most measurable ways, Judy was not so bright as her studious elder sister.

But Judy was persuasive. While Sarah had focused on, well, money, Judy had focused on people skills.

She had loads of friends and somehow, magically, people often ended up doing precisely what she wanted, even her parents and sister. No one, not even Judy, was sure how it happened. She genuinely liked people, even her older sister. She laughed when she was supposed to laugh and even whined when she was supposed to whine. There are times when you're supposed to, since it makes people think they've gotten away with something. You just have to be careful not to keep it up too long. There were times when Sarah made that part difficult.

Judy's plan was amorphous, not really thought out yet. It just seemed to her that it would be great for everyone if the kids at school were stockholders in the Higgins Sewing Machine Corporation. After all, that's what Sarah said corporations were for. To let people that didn't have enough money to start a company get a piece of someone else's, and to let the corporation get enough money to expand.

Everybody wins, everybody's happy, and Judy is the one who arranged it. So everybody is happy with Judy. When Sarah had first mentioned the possibility, Judy had talked about it with some friends. There were a few select eighth graders in Grantville's middle school who had known about the incorporation before even Trent, Brent or David. They called themselves the "Barbie Consortium," but only among themselves. They weren't totally sure what consortium meant, but it sure sounded cool. There were only seven of them, but they were the most popular girls in the eighth grade. It was really quite convenient that just at the age when they were ready to give up their dolls, the dolls had suddenly become very valuable.

Judy had told them of their dolls' increased value back in June.

Most of them had hidden their dolls away to escape parental embargoes on sales. All but Vicky Emerson, that is. She had sold hers. That had almost killed the "Barbie Consortium", since it had taken all Judy's persuasiveness to keep the other girls from following Vicky's example, but she had prevailed.

When Mrs. Higgins had sold her dolls for so much, Judy had been vindicated. She had full control of the consortium.