On the Economy of Machinery and Manufactures by Charles Babbage (english books to improve english TXT) 📕

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