Karl knew that David was not t.i.tled. He also knew that the President of Grantville was not t.i.tled. t.i.tles didn"t matter here, power mattered. If Karl played his cards right, he might well be accepted into this new informal n.o.bility, and his family with him.
He had treated her with respect. Perhaps a bit more respect than Ramona really wanted. Certainly enough respect that he had swept her off her feet. Hence the dinner invitation. She wanted to meet his family. She wanted her family to meet his family, and she wanted everything to go well. She had fussed all day.
Normally dinner at the Higgins house was informal. The "servants" ate with the family. Not this time. Liesel would have none of it, and neither would Johan. There would be guests. Liesel would serve, Johan would get the door. Liesel was quite fond of Ramona, in a subservient materialistic sort of way. They would make a good impression.
They did, actually. The servants provided the comfort of familiarity. The food was rich, and excitingly varied. Something called "Orange Jello" for desert. The house was a glory of technological innovation. These days, lamps were used in the Higgins house and light bulbs were h.o.a.rded; but for tonight, the lights were switched on. The ca.s.sette recorder provided a large selection of music in various styles. The doll collection managed to surpa.s.s its reputation. Not an easy thing to do, for it had grown in the telling.
Finally, there was the welcoming att.i.tude. The Schmidt family found them quite condescending, in the old meaning of the word. They had clearly stepped down from their position of rank to make their guests comfortable. They hadn"t, of course, but it seemed that way to the Schmidt family.
Dinner discussion started on the sewing machine company, but wandered far afield, to technology, customs, economics, schooling, fashion and culture. Ramona was somewhat successful in including the Schmidt girls in the conversation. Adolph was particularly interested in the electric lights, and as he learned of them, in the other electronic devices.
Dinner ended, as all things must, and it was time for the show. The television was turned on in time to see the hostess sitting down, but they missed the kiss. It didn"t matter much, since of his family only Karl had ever seen TV before.
Becky was a wow! For the Schmidt family, it was suddenly like they knew her. Beautiful and gracious, looking them right in the eye, explaining the circ.u.mstances within the Ring of Fire, speaking of rationing, but that no one would go hungry. Her comments about Americans needing lots of meat to cook brought an extra delight; tonight"s dinner had been rich in meat.
The Buster Keaton movie was a marvel. Made more marvelous for the Higgins clan by the Schmidt clan"s wonder. Then Rebecca came back on. She discussed briefly the production projects, not mentioning the sewing machine project. It had for the most part fallen below adult radar. Then she began to discuss the military situation.
"I am Jewish, as you know," she said. But the Schmidt family hadn"t known, except for Karl, and not even he had really thought about it. This Royal Lady, with the steady eye, and commanding presence, was a Jew. Well, no wonder she was engaged to the leader of the Americans, Jew or not. This was Uriel Abrabanel"s niece, and there was a family resemblance now that he looked for it. Karl"s prejudice took another hit that night. It was a fairly big hit, but prejudice takes a lot of chipping away.
Rebecca was still talking, still looking them in the eye. That same sense of involvement that had made Marie Schmidt warn Buster Keaton of impending doom now held Delia and her family silent. Rebecca Abrabanel was not a lady you challenged to her face. By the time the show was over the Jewish princess had more converts to her cause. Tentative converts true, uncertain of what the cause was. Even more uncertain of their place in this new world of magic and miracles, but converts none the less.
September 16, 1631: Schmidt Household
They had talked around it after they got back from the Higgins house. In fact the visit had dominated conversation for several days. They called so much into question, these Americans. They offered so much, but at a price. It was a strange price, and the Schmidt family wasn"t sure they could pay it.
Almost, it was a devil"s bargain: wealth, power, even glory of a kind, for giving up some certainties. Beliefs are a bit like the soul. They aren"t material, they can"t be pointed to, but they are part of what makes us what we are. You can"t just decide to give them up either, they stick around even when you know better. The Schmidt family didn"t think it through like that. Certainly not in those terms. Instead they had an uneasy feeling, like they were about to step off a precipice. Scared and excited. What they talked about by turns, were the marvels and the outrages.
"Music coming out of a box."
"A Jewish woman talking publicly of politics."
"Light at the flick of a switch."
"Dresses above the knee."
"Becky, seemed honest?"
"I"ve spent my life learning the trade of a smith. I know the making of tools, and little boys are to tell me how to make things."
"No, Adolph, not how to make things-just what things they will buy."
"To be paid for with pieces of paper?"
It went on, but the Schmidts were pragmatic people. So much to be gained.
September 25, 1631: Partow House
"The ceramic cases are deforming," said Trent. "We should have thought of it before. When you make ceramics, you"re heating them to the edge of melting and keeping them there for hours. They become plastic at that heat and deform from their own weight."
"Are we going to have to go to wood or cast iron then?" asked Brent.
"That will add a bunch of money per machine. Cast iron is more expensive than clay, and we"ve already spent a bundle on the ceramic casings. That"s money down the drain. Are you sure we can"t make them work? Sarah is not going to be happy."
"I don"t know enough about ceramics to be sure of anything, that"s the problem," Brent admitted. "How much vibration can they take? Will the wood separators really work? Can we redesign the molds so as to compensate for the deformation?"
October 7, 1631: Grantville High School
On the upside of the ledger, they were only one part away from having finished sewing machines. Mr. Marcantonio said he would have the machine to produce that part ready in a couple of days. On the downside, they were going to have to find somewhere for a factory and they were perilously close to broke-past broke if you included the money that Mr. Marcantonio had said they could wait a while to pay.
The Higgins Sewing Machine Company had been using three storage containers to store parts and blanks. The production machines made by Dave Marcantonio"s shop were still in his shop, so to make and finish parts using them, they went there. Final a.s.sembly had been moved to the Higgins" garage. This had saved quite a bit in rent, but was far from convenient. Now that would have to change. For one thing, Mr. Marcantonio was being crowded out of his shop. He really didn"t have room for all their production machines.
So, with regret, he had insisted that they find somewhere else to set up. He was feeling a bit guilty over throwing them out, and as he was very busy and not at all short of cash, he was willing to wait on payment for the last of the machines.
Which had led to this meeting of the "Sewing Circle." (The kids had adopted the nickname as their own.)
"Grantville is out, till we"ve sold some sewing machines or gotten more capital from somewhere," Sarah p.r.o.nounced. "The rents are too high."
"We may be able to use a couple of the storage containers for a while," said David.
"Maybe so, but what we really need is a factory," said Trent. "Over seventy-five percent of our parts are still hand-made. There are a lot of machines that we could make that would decrease the cost of production if we had the money and the room."
"Some of the subcontractors have been asking about buying into the company lately," said David. "It seems some of the other business have started offering profit-sharing and stock options. We don"t have any profits to share yet, but some of our suppliers figure we will."
David was thinking mainly of Karl Schmidt. Other suppliers had shown interest, but Mr. Schmidt seemed a bit obsessive. At first he had thought that Mr. Schmidt was cultivating him for his mother"s sake; there was probably some of that in it, but that wasn"t all of it.
"So have some of the guys from the shop cla.s.s," added Brent.
"I think we should consider incorporation." Sarah picked up her book bag and removed a notebook. Then handed David, who was closest, a typewritten sheet. "Read it and pa.s.s it on. What it is," she said to the others, "is an outline of how I think we could incorporate. We set it up with a couple of hundred thousand shares. The first hundred thousand would be for the original owners. So we would each have ten thousand except for money bags here."
She pointed to David, who buffed his fingernails on his coat and tried to look important. He managed to look silly, which was probably better for all concerned. "Who would have twelve thousand, and Mrs. Higgins would have thirty thousand and so on."
"The other hundred thousand would be owned by the corporation. Which could sell it to raise extra money. Even at a dollar a share, even if we only sell a third of the shares, that"s a lot of money."
"What about control?" asked Trent.
"We would probably keep it," said Sarah. "Probably. Let me ask you something though. Why is control important?"
"So the grownups won"t take it away from us," said Trent automatically.
"No. What are the grownups going to do? Buy up control so they can stop making sewing machines?"
"Tell us "Thanks, but we"re running things now. Go play with your toys.""
"Right, and pay us each five percent of the profit," Sarah answered. "David six percent and Mrs. Higgins fifteen percent. Altogether, with everybody, it"s fifty percent. It might be worth it to someone, but it"s not real likely. I figure we"ll probably sell half the hundred thousand shares. Which would still leave us and Mrs. Higgins with more of the stock than any other group, but even if we do lose control, we"ll probably get rich from it. So, if they want to tell us to go play with our toys, they are gonna have to buy us some really nice toys.
"There"s another reason we should incorporate, or at least, change it to a limited liability company." She continued. "The way we set it up at first we are liable for any debts or damages. What if we get sued? It wouldn"t be so bad for us, we don"t have much many a.s.sets, but what about Mrs. Higgins? One of the things a corporation does, is limit the debt to corporate a.s.sets. That would mean they couldn"t take the storage lot, or Mrs. Higgins" dolls as payment for the company"s debts."
They spent the rest of the lunch hour talking about corporate structure.