On the Economy of Machinery and Manufactures - Charles Babbage (interesting books to read in english .TXT) 📗
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combine against the imposition. This occurs when two companies
supply water or gas to consumers by means of pipes laid down
under the pavement in the street of cities: it may possibly occur
also in docks, canals, railroads, etc., and in other cases where
the capital required is very large, and the competition very
limited. If water or gas companies combine, the public
immediately loses all the advantage of competition, and it has
generally happened, that at the end of a period during which they
have undersold each other, the several companies have agreed to
divide the whole district supplied, into two or more parts, each
company then removing its pipes from all the streets except those
in its own portion. This removal causes great injury to the
pavement, and when the pressure of increased rates induces a new
company to start, the same inconvenience is again produced.
Perhaps one remedy against evils of this kind might be, when a
charter is granted to such companies, to restrict, to a certain
amount, the rate of profit on the shares, and to direct that any
profits beyond, shall accumulate for the repayment of the
original capital. This has been done in several late Acts of
Parliament establishing companies. The maximum rate of profit
allowed ought to be liberal, to compensate for the risk; the
public ought to have auditors on their part, and the accounts
should be annually published, for the purpose of preventing the
limitations from being exceeded. It must however be admitted,
that this would be an interference with capital, which, if
allowed, should, in the present state of our knowledge, be.
examined with great circumspection in each individual case, until
some general principle is established on well-admitted grounds.
378. An instrument called a gas-meter, which ascertains the
quantity of gas used by each consumer, has been introduced, and
furnishes a satisfactory mode of determining the payments to be
made by individuals to the gas companies. A contrivance somewhat
similar in its nature, might be used for the sale of water; but
in that case some public inconvenience might be apprehended, from
the diminished quantity which would then run to waste: the
streams of water running through the sewers in London, are
largely supplied from this source; and if this supply were
diminished, the drainage of the metropolis might be injuriously
affected.
379. In the north of England a powerful combination has long
existed among the coal-owners, by which the public has suffered
in the payment of increased price. The late examination of
evidence before a Committee of the House of Commons, has
explained its mode of operation, and the Committee have
recommended, that for the present the sale of coal should be left
to the competition of other districts.
380. A combination, of another kind, exists at this moment to
a great extent, and operates upon the price of the very pages
which are now communicating information respecting it. A subject
so interesting to every reader, and still more so to every
manufacturer ofthe article which the reader consumes, deserves an
attentive examination.
We have shown in Chapter XXI, p. 144, the component parts of
the expense of each copy of the present work; and we have seen
that the total amount of the cost of its production, exclusive of
any payment to the author for his labour, is 2s. 3d.(1*)
Another fact, with which the reader is more practically
familiar, is that he has paid, or is to pay, to his bookseller,
six shillings for the volume. Let us now examine into the
distribution of these six shillings, and then, having the facts
ofthe case before us, we shall be better able to judgeofthe
meritsofthe combinationjust mentioned, andtoexplainits effects.
Distribution of the profits on a six shilling book
Buys at; Sells at; Profit on capital expended
s. d.; s. d.
No. I—The publisher who accounts to the author for every copy
received; 3 10; 4 2; 10 per cent
No. II—The bookseller who retails to the public; 4 2; 6 0; 44
Or, 4 6; 6 0; 33 1/3
No. I, the publisher, is a bookseller; he is, in fact, the
author’s agent. His duties are, to receive and take charge of the
stock, for which he supplies warehouse room; to advise the author
about the times and methods of advertising; and to insert the
advertisements. As he publishes other books, he will advertise
lists of those sold by himself; and thus, by combining many in
one advertisement, diminish the expense to each of his
principals. He pays the author only for the books actually sold;
consequently, he makes no outlav of capital, except that which he
pays for advertisements: but he is answerable for any bad debts
he may contract in disposing of them. His charge is usually ten
per cent on the returns.
No. II is the bookseller who retails the work to the public.
On the publication of a new book, the publisher sends round to
the trade, to receive ‘subscriptions’ from them for any number of
copies not less than two These copies are usually charged to the
‘subscribers’, on an average, at about four or five per cent less
than the wholesale price of the book: in the present case the
subscription price is 4s. 2d. for each copy. After the day of
publication, the price charged by the publisher to the
booksellers is 4s. 6d. With some works it is the custom to
deliver twentyfive copies to those who order twenty-four, thus
allowing a reduction of about four per cent. Such was the case
with the present volume. Different publishers offer different
terms to the subscribers; and it is usual, after intervals of
about six months, for the publisher again to open a subscription
list, so that if the work be one for which there is a steady
sale, the trade avail themselves of these opportunities
ofpurchasing, at the reduced rate, enough to supply their
probable demand.(2*)
381. The volume thus purchased of the publisher at 4s. 2d. or
4s. 6d. is retailed by the bookseller to the public at 6s. In the
first case he makes a profit of forty-four, in the second of
thirty-three per cent. Even the smaller of these two rates of
profit on the capital employed, appears to be much too large. It
may sometimes happen, that when a book is enquired for, the
retail dealer sends across the street to the wholesale agent, and
receives, for this trifling service, one fourth part of the money
paid by the purchaser; and perhaps the retail dealer takes also
six months’ credit for the price which the volume actually cost
him.
382. In section 256, the price of each process in
manufacturing the present volume was stated: we shall now give an
analysis of the whole expense of conveying it into the hands of
the public.
The retail price 6s. on 3052 produces 915 12 0
1. Total expense of printing and paper 207 5 8 7/11
2. Taxes on paper and advertisements 40 0 11
3. Commission to publisher as agent between author and printer 18
14 4 4/11 4 Commission to publisher as agent for sale of the book
63 11 8
5. Profit—the difference between subscription price and trade
price, 4d. per vol. 50 17 4
6. Profit the difference between trade price and retail price,
1s. 6d. per vol. 228 18 0
362 1 4
7. Remains for authorship 306 4 0
Total 915 12 0
This account appears to disagree with that in page 146. but
it will be observed that the three first articles amount to L266
1s., the sum there stated. The apparent difference arises from a
circumstance which was not noticed in the first edition of this
work. The bill amounting to L205 18s., as there given, and as
reprinted in the present volume, included an additional charge of
ten per cent upon the real charges of the printer and
paper-maker.
383. It is usual for the publisher, when he is employed as
agent between the author and printer, to charge a commission of
ten per cent on all payments he makes. If the author is informed
of this custom previously to his commencing the work, as was the
case in the present instance, he can have no just cause of
complaint; for it is optional whether he himself employs the
printer, or communicates with him through the intervention of his
publisher.
The services rendered for this payment are, the making
arrangements with the printer, the wood-cutter, and the engraver,
if required. There is a convenience in having some intermediate
person between the author and printer, in case the former should
consider any of the charges made by the latter as too high. When
the author himself is quite unacquainted with the details of the
art of printing, he may object to charges which, on a better
acquaintance with the subject, he might be convinced were very
moderate; and in such cases he ought to depend on the judgement
of his publisher, who is generally conversant with the art. This
is particularly the case in the charge for alterations and
corrections, some of which, although apparently trivial, occupy
the compositors much time in making. It should also be observed
that the publisher, in this case, becomes responsible for the
payments to those persons.
384. It is not necessary that the author should avail himself
of this intervention, although it is the interest of the
publisher that he should; and booksellers usually maintain that
the author cannot procure his paper or printing at a cheaper rate
if he go at once to the producers. This appears from the evidence
given before the Committee of the House of Commons in the
Copyright Acts, 8 May, 1818.
Mr O. Rees, bookseller, of the house of Longman and Co.,
Paternoster Row, examined:
Q. Suppose a gentleman to publish a work on his own account,
and to incur all the various expenses; could he get the paper at
30s. a ream?
A. I presume not; I presume a stationer would not sell the
paper at the same price to an indifferent gentleman as to the
trade.
Q. The Committee asked you if a private gentleman was to
publish a work on his own account, if he would not pay more for
the paper than persons in the trade; the Committee wish to be
informed whether a printer does not charge a gentleman a higher
rate than to a publisher.
A. I conceive they generally charge a profit on the paper.
Q. Do not the printers charge a higher price also for
printing, than they do to the trade?
A. I always understood that they do.
385. There appears to be little reason for this distinction
in charging for printing a larger price to the author than to the
publisher, provided the former is able to give equal security for
the payment. With respect to the additional charge on paper, if
the author employs either publisher or printer to purchase it,
they ought to receive a moderate remuneration for the risk, since
they become responsible for the payment; but there is no reason
why, if the author deals at once with the paper-maker, he should
not purchase on the same terms as the printer; and if he choose,
by paying ready money, not to avail himself of the long credit
allowed in those trades, he ought to procure his paper
considerably cheaper.
386. It is time, however, that such conventional combinations
between different trades should be done away with. In a country
so eminently depending for its wealth on its manufacturing
industry, it is of importance that there should exist no abrupt
distinction of classes, and that the highest of the aristocracy
should feel proud of
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