These testimonials furnish a body of evidence contrary to the current opinion of criticism and blame, and direct attention to other causes for whatever unsatisfactory part that Negroes are playing in this line of service in the City. These causes may be looked for in the increasing number of European immigrants; in the growing ambition and effort of Negro wage-earners, sharing the feeling of all native-born Americans, to get away from personal and domestic service and to enter fields of work with better wages, shorter hours, and more independence.[64] To this may be added the increasing custom, indicating prejudice of well-to-do Americans, of giving preference to European servants.[65]

The efficiency of Negro skilled workmen is indicated in the replies of 37 employers, summarized in Chapter IV. (See p. 77, supra.) If they had ever employed Negroes, they were asked whether in comparison with white workmen Negro workmen were:

The consensus of opinion expressed was that the Negro workmen whom they had employed measured up to the white, and there was a general belief that Negroes usually had to be well above the average to secure and hold a place in the skilled trades.

To make a summary of the wages and efficiency: In comparison with the cost of living, Negro men receive very inadequate wages in domestic and personal service except three or four occupations that afford "tips." The small number of skilled artisans who are equal to or above the average white workman and can get into the unions, receive the union wages.

Women for the most part are in the poorly paid employments of domestic and personal service. The small wages of the men and the number of women engaged in gainful occupations (See Chapter IV) show that the women must help earn the daily bread for the family. Their low income power forces these families to the necessity of completing the rent by means of lodgers, deprives children of mothers' care, keeps the standard of living at a minimum, and thus makes the family unable to protect itself from both physical and moral disease.

Although popular opinion may be to the contrary, testimonials signed by former employers show that the large majority of Negroes in domestic and personal service are capable, temperate, and honest, and remain with one employer a reasonable time, considering the shifting condition of city life, the mobility of such wage-earners and the weak tenure of domestic and personal service in a modern city.

FOOTNOTES:

PART II

THE NEGRO IN BUSINESS
IN NEW YORK CITY

CHAPTER IToC

The Character of Negro Business Enterprises

1. THE BUSINESS PROMISE

It is a far cry from satisfying an employer to pleasing the public. The one requires the obeying of the orders of a boss, the other calls for initiative and self-direction. Business enterprise involves judgments of the whims, wishes and wants of prospective customers and skill in buying goods or supplying services to satisfy their demands. The wage-earner needs his labor only. The business promoter must secure capital and establish credit. The employee has only the stake of a present place, and has little hindrance from going to another job in case of disappointment. The business man risks name, time, labor and money in the commercial current and has only his experience left, if he loses his venture.

Therefore, the Negro two and a half centuries under the complete control of a master could hardly be expected in one generation to acquire the experience, develop the initiative, accumulate the capital, establish the credit and secure the good-will demanded to-day in carrying on great and extensive business enterprises, such as find their headquarters in New York City, the commercial heart of the continent. Besides, the handicaps of the social environment, due to the prejudices and differences of the white group by which he is surrounded, and to previous condition of servitude, have had their commercial and industrial consequences. Again, speaking for New York City, many of the Negroes who were leaders in whatever business was carried on up to about 1884 were the prominent workers in activities for race liberation and manhood privileges, thus subtracting energy and time from business pursuit. The movement may be likened in a rough way to that of English workingmen before and after about 1848; the first period being a struggle for the liberty of labor and the second period aiming to fill that liberty with manhood and economic content.

This study, then, of what the Negro is doing along business lines in New York City does not show a number of large operations when compared with what goes on in America's greatest commercial Metropolis. But the findings are highly significant for what they disclose of business capacity and possibility. There has been a business development among Negroes in such a competitive community that is both substantial and prophetic.

2. A HISTORY OF THE NEGRO IN BUSINESS

The economic propensity to higgle and barter appeared early among the Negroes of the New Amsterdam Colony. As early as 1684 the Colonial General Assembly passed a law that "no servant or slave, either male or female, shall either give, sell or truck any commodity whatsoever during the term of their service." Any servant or slave who violated the law was to be given corporal punishment at the discretion of two justices and any person trading with such servant or slave should return the commodity and forfeit five pounds for each offense.[66] And further action was taken in 1702 which rendered all bargains or contracts with slaves void and prevented any person from trading in any way with a slave, without the consent of the owner of such slave.[67] The penalty for violation was to forfeit treble the value of the commodity and payment of five pounds to the owner of the slave. In 1712, probably after the terror of the Negro riot of that year, it was decreed that no Negro, Indian or mulatto who should be set free, should hold any land or real estate, but it should be escheated.[68] The provisions of the two acts of 1684 and 1702 about trading with slaves were revised and re-enacted in 1726.[69]

The character of much of this trade is shown by city regulations which forbade the sale of great quantities of "boiled corn, peaches, pears, apples, and other kinds of fruit." These wares were bought and sold not only in houses and outhouses but in the public streets. The Common Council in 1740 declared the same to be a nuisance and prohibited it with a penalty of public whipping. The Council gave as one of its reasons that it was productive of "many dangerous fevers and other distempers and diseases in the inhabitants in the same city," but those coming to market by order of their masters were excepted from the prohibition. The effect of the latter traffic upon the health of the city was purposely not discerned.[70] The act of 1726 was again re-enacted in 1788.[71] From time to time faithful slaves of the West India Company were set free. These usually began tilling the soil for themselves and probably marketed their products in the town.

Slaves, therefore, had little or no opportunity to share in the trading operations of the Colony. State emancipation by the acts of 1799, 1817, and 1827, however, was finally secured, and with the coming of this boon there was liberty to engage in the traffic of the growing metropolis. There is conclusive evidence that considerable numbers of Negroes did embrace the opportunity.

The volumes of the Colored American from 1838 to 1841 contain a number of advertisements and references to business enterprises run by Negroes. The newspaper itself was a considerable undertaking and job printing was also "executed with dispatch." In 1837, George Pell and John Alexander opened a restaurant in the one-hundred block in Church Street.

In 1838, there were two boarding houses in this same block, and two boarding houses in Leonard Street and one each in Spruce and Franklin and Lispenard Streets. The next year two other boarding houses were started, one on South Pearl Street and the other near the beginning of Cross Street, and in 1840 two more entered the list, on Sullivan and Church Streets. The drug store of Dr. Samuel McCune Smith and the cleaning and dyeing establishment of Bennet Johnson, both in the one-hundred block on Broadway, were well known and successful enterprises of the day.

B. Bowen and James Green both had small stores for dry goods and notions in 1838, the former on Walker Street and the latter on Anthony. While the same year a hair-dressing establishment on Leonard Street, a coal-yard on Duane Street, a pleasure garden on Thomas Street and three tailors, whose location could not be ascertained, were enterprises of promise.

In 1839 and 1840, there were a pleasure garden and saloon in Anthony Street and a similar establishment on King Street, with an "Amusement House" on Spring Street, and near it Brown and Wood ran a confectionary and fruit store. Richard Carroll ran a bathing establishment in Church Street. A coal-yard in Pearl Street, a watch and clock maker, three private schools, and a "dry-goods store of the female Trading Association," complete the list of firms that was contained in the record of the period.

A number of these enterprises are known to have continued for a number of years after 1840. Testimony of witnesses[72] as late as the time of the Civil War shows that a number of the above-named enterprises were in existence as late as 1860.

Also that second-hand clothing shops were frequently run by Negroes, and barber-shops and restaurants of excellent equipment were evidences of activity comparable with the earlier period. Thomas Downing kept a restaurant at the corner of Wall and Broad Streets and from it amassed considerable wealth bequeathed to his children.

In 1869, the Negro caterers had such a large share of this business that the dozen leading ones came together and formed the Corporation of Caterers which was a sort of pool to control the conduct of the business and which was so enlarged after three years under the name of the United Public Waiters Mutual Beneficial Association, that the original purpose was largely sidetracked.[73]

There is little direct evidence available for the period from about 1875 to 1909. The census of 1900 gave a return of Negroes in occupations which may indicate proprietors of establishments, but there is no way of ascertaining whether they owned, operated or were employed in such lines of business. There were in all 488 distributed as follows: Among the males, boarding and lodging-house keepers 10, hotel-keepers 23, restaurant keepers 116, saloon keepers 27, bankers and brokers 5, livery-stable keepers 9, merchants and dealers 162 (retail 155, wholesale 7), undertakers 15, clock and watchmakers and repairers 2, manufacturers and officials 36, and photographers 22. The females included boarding and lodging-house keepers 50, milliners 9, and photographers 2. A goodly number of Negro enterprises are very probably represented in this list. That this is true is evident from the large number of enterprises in the various lines of business that were found by the canvass of 1909. We may safely infer that the period was one of considerable growth in both the number and variety of business establishments. We shall, therefore, turn our attention to the result of the canvass of the last-named year.

3. THE NATURE OF THE ESTABLISHMENTS IN 1909

The first question which naturally arises is how many Negro business enterprises were in Manhattan in 1909. At the meeting of the National Negro Business League in New York City in 1908, a paper was read on "The Negro Business Interests of Greater New York and Vicinity." This paper gave a total of 565 enterprises. But as this included 100 dressmaking and 14 stenography and typewriting, this estimate doubtless included some cases that upon closer analysis could not have been designated as business establishments.

A Negro business directory of New York City in 1909 gave names and addresses of 567 establishments. Upon investigation some of these could not be found at addresses given. From his own canvass, the writer estimates the number of bona-fide business enterprises in Manhattan to have been about 475. Of this number, records of 332 were secured and the remainder were either visited or certified by reliable testimony. Of the 332 records, 15 have been excluded either because the firm has ceased to do business or the records were too incomplete for use in this monograph; eight of the remainder were corporations and will be treated below separately. This left 309 establishments upon which to base conclusions. These establishments were so distributed as to be fully representative of the whole. According to the kind of service or goods offered to the public, these 309 establishments were as follows:

Two facts are evident. The largest number of the enterprises are the outgrowth of the domestic and personal service occupations and they are mainly enterprises that call for small amounts of capital.

4. OWNERSHIP OF ESTABLISHMENTS

The Negro goes into business mainly as an independent dealer. In the large majority of cases he does not enter into a partnership and even when he does, there are rarely more than two partners. Out of the 309 enterprises in 1909, there were only 49 partnerships and 44 of these were firms of two partners only. There were only three firms with three partners each, one firm with four members and one with five members. To these may be added the eight corporations mentioned above.

Some light is thrown upon the Negro's business enterprises by knowing the birth-place of proprietors, the length of time they had resided in New York City and the occupations in which the proprietors were engaged previously to going into business.

The birth-place of proprietors should be considered in connection with the length of their residence in New York City, because the two facts point to the same conclusion concerning the economic and other stimuli of the environment. So far as birth-place is concerned, the most striking fact is that out of 330 proprietors whose birth-places were ascertained, 220, or 66.66 per cent, were born in Southern states and the District of Columbia, and 65, or 19.7 per cent, in the West Indies. The following Southern states furnished the specified 220 proprietors: Virginia 96, South Carolina 31, Georgia 27, North Carolina 25, Maryland 15, Florida 12, the District of Columbia 5, Delaware 3, Kentucky 2, and Alabama, Arkansas, Mississippi, and Texas 1 each. Besides the Southern and West Indian-born Negro business men, other sections were represented as follows: South America 7, New Jersey 7, New York State 7, Pennsylvania 5, New York City 8, Illinois 2, Bermuda 2, Canada 2, Africa, Indiana, Kansas, Maine, and Massachusetts 1 each.

This proportion of Southern-born proprietors is 0.84 of one per cent less than the proportion of Southern-born in the total Negro population.[75] The 19.7 per cent West Indian is about 10.3 per cent larger than the West Indian proportion in the total Negro population. If the 7 natives of South America be added, the proportion would be 12.4 per cent larger. This condition can hardly be explained on the ground that West Indian Negroes reach New York with more capital, nor is it because West Indians secure employment that is better paid, for they, like the native-born Negroes, are confined to domestic and personal service. It is due both to the better general education of the average West Indian and to the fact that he has been reared in an environment of larger liberty which has developed in him an independence and initiative that respond more readily to the new surroundings. Conversation with numbers of them elicited the information that they had come to this country with the idea of saving money and entering business for themselves.

Facts about the length of residence before January 1st, 1910, of 363 proprietors are no less illuminating than their birth-places. Both show the influence of environment, for we do not find that the majority entered business immediately after taking up their residence in the Metropolis. Exclusive of 50 doubtful and unknown and 11 who were born in New York City, only 11 of the 363 had been in the city less than 2 years, 18 had resided in the city between 2 years and 3 years 11 months, and 33 between 4 years and 5 years eleven months—in all, only 62 had entered business after a residence of less than six years. Of course this is partly due to the time it took to save or secure the necessary capital but that this is not the only reason for long residence previous to entering business is shown by the fact that of the 62 who began after less than six years residence, 14 ran barber-shops and 11 had grocery stores, enterprises which require at least a small outlay of capital.

In harmony with this view of the matter the inquiry showed further that 161 proprietors had lived in New York City between 6 years and 9 years 11 months; 108 had been in the city between 10 years and 19 years 11 months; 43 had resided there between 20 years and 29 years 11 months; while 28 had lived in the city 30 years or more.

Considerable weight must then be given to the opinion that is in line with the showing of the West Indian—that Negroes entering business in New York City need to live some time in the atmosphere of such a progressive, liberal community to catch the spirit of its initiative and enterprise.

In support of the conclusion the full table showing length of residence of proprietors of the several classes of enterprises is given (p. 103).

Besides the birth-place of proprietors and the length of their residence in New York City, their occupations previously to their entering upon their present lines of business throw considerable light upon the character of ownership. The natural expectation would be to find connection between the previous occupation of the proprietor and the present business in which he is engaged. In a number of cases this cannot be clearly made out as is the case of 16 brokers and 11 undertakers. Very probably this expectation would not be fulfilled in the cases of many Negroes, because domestic and personal service has been largely the opportunity of employment and the source of savings through which the prospective business venture could be launched. For example, 11 proprietors have been waiters or waitresses; of these one hotel and lodging-house proprietor, and one restaurant keeper were in enterprises closely connected with their previous occupations; there were three grocers and one coal, wood and ice dealer: enterprises less closely connected. Two pool and billiard-room proprietors, one conductor of a tailoring establishment, one employment agent and one establishment in the miscellaneous class completed the list of those formerly employed as waiters and waitresses. This makes a striking comparison with three hotel and lodging-house keepers and with five restaurant and lunch-room proprietors who formerly were cooks. That many did follow such a natural line of advance from employee to employer is shown in that 80 out of the 309 were previously connected with the same line of business in which they were engaged in 1909 either on a smaller scale or as an employed promoter. A few had tried one line of business before and had changed to that in which they were found. Such was the case with nine who had previously been restaurant keepers, and six who had been in the grocery business. In no case did a proprietor report that he had been an inheritor of independent means or a gentleman of leisure, and had thus found the road which had led him into business.

Table XXI. Length of Residence in New York City, Before January, 1910, of Proprietors of 309 Negro Business Enterprises, Manhattan, 1909.

5. SIZE OF BUSINESS ENTERPRISES

The size of business enterprises was measured in three ways: (1) the number of employees besides proprietors; (2) the floor space occupied and (3) the rental paid for the place in which the business was carried on. Obviously all the enterprises could not be measured by all three tests. For example, the amount of floor space occupied and monthly rental paid by a brokerage firm might not bear so close a relation to size as the number of employees, nor would rental alone be an index of size of a coal, wood and ice business, since cellars, which call for smaller rental than other space, are used. But each enterprise was covered by more than one of the measurements, so that a fair estimate is given of its size.

In ascertaining the number of employees, the attempt was made to include only those who had no part in the ownership, but who gave a large part or all of their time to some work connected with the enterprise. As far as possible this was confined to paid employees, but in a few cases the question of wages of those employed could not be successfully ascertained on account of reticence of the employer. No record was made of whether or not the time of the proprietor was also put into the business since in this respect there was great variation among establishments.

Only a small proportion, 77 out of 309 establishments, were without employees. Yet very few, 21 in all, employed five or more persons. The largest number, 87, had only one regular employee, 65 establishments had two employees, 29 had three and 16 had four persons regularly employed. The number of employees of 14 firms was not ascertained.

Floor space occupied by many establishments is a good index of size, especially in New York City. Of course, in the case of such establishments as brokers, employment agencies and express and moving-van firms that require an office only, this is not a criterion. But for many other establishments in a city where square feet of floor space is carefully figured upon in the cost of the product, such a measure has considerable value in estimating business enterprises. In securing the measurement of floor space in the different establishments it was not possible to make an actual measurement in many instances. In some cases the proprietors knew accurately the length and breadth of the place they occupied; in other cases where measurements could not be taken estimates of length and breadth were made, taking a rough view of the frontage and depth of the building or apartment occupied.

A goodly number of enterprises, such as dressmakers, milliners, shoemakers and tailoring "bushelers" carried on their business in the front room of a ground-floor flat and lived, often with families, in the rear rooms. In those cases, only the floor space of the room used for business purposes was included in the estimate.

Establishments to the number of 17 were estimated as having less than 150 square feet of floor space; six of these were offices of brokers and express and moving-van firms. The greatest number of establishments, 186 in all, were estimated to occupy between 150 and 499 square feet of floor space. Thirty-one establishments occupied between 500 and 999 square feet of floor space; 17 between 1,000 and 1,999 square feet; 4 between 2,000 and 2,999 square feet; 10 between 3,000 and 4,999 square feet; 8 occupied 5,000 or more square feet; 36 were not known—a total of 309 establishments.

Thus, it is seen that the typical Negro business enterprise occupies small floor space, since 234, or 75.7 per cent, of the 309 establishments occupied 999 square feet or less. Table XXII (p. 107) is included to show the details as to floor space in square feet occupied by each class of establishment.

Monthly rental is also a fair indication of the size of a business establishment. In a few cases in which the proprietor said he was owner of the building, a rental was estimated for the portion of the building used for the particular enterprise; in the cases, mentioned above, where the proprietor lived in the rear rooms only a part of the whole rental was estimated as a charge upon the business establishment. So that the figures here given are good measurements of their kind. The facts about 86 establishmentscould not be secured. With the remaining 223, we meet again the evidence of small size of typical establishments, for 180 establishments, or 80.7 per cent, had a monthly rental of $39 or less, and 30 others had a monthly rental between $40 and $79; 16 out of the 223 establishments had a rental of $80 or more per month, and of these 7 paid $150 or more per month.

Table XXII. Estimated Square Feet of Floor Space of 309 Negro Business Enterprises, Manhattan, 1909.

Judging, then, by the number of employees, by the square feet of floor space occupied and by the monthly rental paid, the typical Negro enterprise is a small retail establishment.

To summarize this chapter: Negroes have had to begin business on a small scale because large capital was lacking and extended experience is yet to be gained. They have, however, even from the days of the Colony, when they were held as slaves, shown a decided propensity for trade, and since state emancipation this has been increased by a desire for economic independence and has expressed itself in enterprises in several lines of business. The variety and number of enterprises have increased with the years. In 1909, Southern born and West Indian Negroes comprised nearly all who had entered business, the latter far in excess of their proportion in the Negro population. This is probably due to initiative developed in an atmosphere freer than that from which the Southern Negro comes. Although confined largely to domestic and personal service occupations, Negroes have had the thrift and initiative to enter many lines of business into which neither the experience nor the capital derived from such employment would be expected to lead. In size, the typical Negro business enterprise has from one to two paid employees, has a floor space of less than one thousand square feet, and pays a rental of between fifteen and forty dollars per month.

FOOTNOTES:

CHAPTER IIToC

The Volume of Business

Indications of the volume of business are in accord with the conclusions from the size of Negro business enterprises. Volume of business was measured (1) by the valuation of tools, fixtures, etc., used in the conduct of the business, (2) by the amount of merchandise kept on hand, if the business was such as required a stock of goods, and (3) by the total gross receipts of the business during the two years, 1907 and 1908.

I. VALUATION OF TOOLS AND FIXTURES

Wood and ice dealers need to invest very little in tools and fixtures. Fourteen out of 19 coal, wood and ice dealers had less than ten dollars so invested. They needed only shovels, baskets and push-carts. The estimated valuation of tools and fixtures of the largest number of establishments fell between $50 and $399; 90 were estimated to be between $50 and $199, and 63 were estimated to be between $200 and $399. Besides these, 37 establishments—1 broker, 5 employment agencies, 1 grocery, 5 hairdressers, 9 restaurants and lunch rooms, 2 "busheling" tailors and 14 miscellaneous had tools and fixtures estimated, with allowance for depreciation, to be worth more than $10 and less than $50. It is important to note, however, that while the numbers with estimated valuation of tools and fixtures between $400 and $1,499 is only 50, those estimated at $1,500 and over number 33.

Table XXIII. Estimated Valuation of Plant, Tools and Fixtures of 309 Negro Business Enterprises, Manhattan, 1909.

Judged, then, from the valuation of tools and fixtures, the magnitude of Negro business enterprises is considerable and falls into three classes: one of comparatively small valuation, 184 estimated below $400; one class of medium valuation, 50 estimated between $400 and $1,499; and one of comparatively large valuation, 33 at $1,500 and over.

The details of these valuations of tools and fixtures are given in full in Table XXIII (p. 110).

2. THE AMOUNT OF MERCHANDISE ON HAND

Next to valuation of tools and fixtures, the amount of merchandise kept in stock is a good index of the magnitude of the business done by many enterprises. Of course, the business of brokers, express and moving-van firms, employment agencies, and some miscellaneous enterprises could not be measured by the amount of stock kept on hand. Also barber shops and pool and billiard rooms sometimes keep a small stock of cigars, tobacco, etc. So these firms can not be so measured. The statements about merchandise on hand were accurately estimated either from figures on the books of the firm or from rough inventories of the stock on hand made with the assistance of the proprietor.

Negro business enterprises for the most part are small retail enterprises and do business on the scale of establishments of this type. They have not yet accumulated the capital nor gained the credit to engage in wholesale trade or to carry a stock of merchandise large in quantity or variety such as an extensive patronage demands. But they do handle a considerable amount of business with the small capital they have to invest. When this is compared with the gross receipts for 1907 and 1908 the showing is very creditable.

Table XXIV. Estimated Valuation of Merchandise on Hand in 241 Negro Business Enterprises, Manhattan, 1909.

For, of the 302 enterprises for which estimates of stock on hand were obtained 159 firms, including 46 barber-shops and 9 pool and billiard rooms that kept small stocks of cigars and tobacco, had a stock of merchandise on hand estimated at less than $50; 20 others ranged between $50 and $99; 38 others had stock on hand in amounts between $100 and $299, while 23 fell between $300 and $599. Thirteen enterprises kept a stock estimated between $600 and $1,000; six ran from $1,000 up, while seven were unknown. In a word, classified by amount of merchandise kept on hand, the firms fell into three classes, the largest class was composed of those having a stock valued at less than $50, the next class grouped those between $50 and $600, and the third and smallest class contained those with stock on hand valued at $600 and above. It will be of help to see in detail how enterprises in each class were grouped according to estimated valuation of merchandise on hand, so Table XXIV showing this is given (p. 112).

3. GROSS RECEIPTS IN 1907 AND 1908

The final and concluding item in measuring the magnitude of Negro business enterprises is the amount of gross receipts of the firms covering a given period of time. For this purpose the years 1907 and 1908 were selected, the first because the greater part of it was before the panic of 1907, the second instead of 1909 because a completed year at the time this canvass was made. A close study of the accompanying table shows that the panic had considerable effect upon the gross receipts of these firms. For example, in 1907, 32 firms had gross receipts less than $1,000; in 1908, 38 firms were in the same group; in 1907, 37 firms did a business of between $1,000 and $1,999; in 1908, 38 firms had the same fortune. And even this does not always show the falling off in gross receipts of the individual firm unless the decrease was sufficient to carry it into a lower group.

Of the total 309 Negro enterprises, 118 were established too recently to have gross receipts in 1907 and 1908, and 63 did not furnish sufficient evidence, so they are classed as doubtful and unknown. This leaves, therefore, 128 enterprises about which sufficient statements of gross receipts were secured to justify discussion. The figures for these, however, were carefully ascertained. For 115 establishments the exact figures were taken from records kept by the firms for the years 1907 and 1908, or the larger part of those years, while the other 13 are estimates based upon careful statements from proprietors and employees of their receipts for months or weeks at different seasons of the two years.

Compared with the general retail lines in New York City the magnitude of Negro business is creditable when judged by gross receipts. Of the 128 establishments, 87 in 1907 and 85 in 1908 handled a gross business of $2,999 or less; 32 firms in 1907 and 38 firms in 1908 had gross receipts between $3,000 and $10,000; and 9 firms in 1907 and 5 firms in 1908 carried on business operations which ranged in gross receipts above $10,000, four of these in 1907 and two in 1908 being $15,000 or more. Considering the amount of merchandise kept on hand and the valuation of tools and fixtures, this business showing indicates that the small amount of capital invested is handled with considerable energy and ability to carry on such an amount of gross business.

It should be noted also that out of 69 establishments in 1907, which had gross receipts less than $2,000, 14 were barber shops, 8 were coal, wood and ice dealers, 4 were employment agencies, 3 were express and moving-vans, 9 were tailors, pressers, etc., and 8 were miscellaneous—a total of 46. And in 1908, out of 76 establishments with gross receipts under $2,000, 18 were barber-shops, 8 were ice, coal and wood dealers, 4 were employment agencies, 3 were express and moving-vans, 10 were tailors and pressers, and 9 were miscellaneous—making a total of 52. The majority of the more important classes of business firms such as brokers, barber shops, grocers, printers, hotel and lodging-house keepers, restaurant and lunch-room proprietors, saloon and café firms and undertakers have gross receipts from $2,000 a year and over.

Table XXV. Gross Receipts for 1907 and 1908 of 309 Negro Business Enterprises in Manhattan.

The full showing of classified gross receipts of the 309 establishments is given in Table XXV (p. 115).

Measured, then, by valuation of tools, fixtures, etc., by merchandise on hand, and by gross receipts in 1907 and 1908, Negro enterprises with a small command of capital and credit do a comparatively large gross amount of retail business.

CHAPTER IIIToC

Dealing with the Community

The severest test of a business enterprise is its relation to the community, both the commercial houses with which it deals and the consuming public to whom it sells. With the former a firm must establish credit, with the latter it must build up confidence. Credit is established by the prompt payment of bills, the length of time a firm has been in operation allowing time to make a good reputation and its business methods in dealing with its suppliers. The confidence of customers is secured by the care and accuracy with which orders are filled, the length of time the firm has been in a certain locality and patrons have dealt with it and by the whims and prejudices of the community or locality.

It was out of the question to get data which would cover all of these points, but sufficient material was gathered to throw considerable light on (1) the length of time the firms had been established, (2) the length of time they had been situated at the particular address where they were found, (3) the means used in keeping the accounts of sales, expenditures, etc., (4) whether they gave credit to customers and whether they received credit from suppliers, and (5) what proportion of their customers were white and what proportion were colored.

I. AGE OF ESTABLISHMENTS

Negroes are often said to be able to start but unable to continue in undertakings which require determination, persistence, tact, and which involve strenuous competition. This opinion is certainly not borne out by the age of their business enterprises in New York. For, in the face of conditions they had met in beginning business in New York City, only 51 out of the known 309 enterprises had been established less than one year; 67 between one and two years; 114 between two years and six years, and 33 between six years and ten years. Twenty-two had been established between ten and fifteen years, and twenty were fifteen or more years old, nine of them having been established twenty years or more; the age of two was unknown. When it is remembered that during the first decades after emancipation the larger number of the most energetic Negroes was absorbed in professional occupations, principally teaching, because of the great need in race uplift, and that business pursuits have had until within the last few years minor consideration, to say nothing of trials and failures in the effort to gain business experience, the age of these enterprises must be counted a creditable showing. And it is a good recommendation to the commercial world that the Negro has not made a reputation for bankruptcy assignments. When one reflects that nearly all of these proprietors and promoters have migrated to New York City from less progressive communities and that the chances to get experience in a well-established business before they attempt to start an enterprise for themselves is, except in very rare cases, denied Negroes, the permanency of the ventures in the commercial current deserve commendation.

2. PERMANENCE OF LOCATION

No less interesting than the length of time a firm had been established was the length of time it had been located at the address where it was found by the canvasser in 1909. The exact causes which induce the Negro firms to change addresses could not be ascertained, but 81 out of 275 had been at the address where they were found less than one year, although, as shown above, only 51 were less than one year old; 72 had been at their present address between one year and two years, which leaves a smaller margin between that number and the 67 shown to have been established that length of time. There was a similar small margin of comparison in the groupings of two to four and four to six years between the time the firms were established and the length of time they had remained at the one address. This shifting is due probably to the movements of the Negro population upon which the firms depend for patronage, but partly to inexperience.

Table XXVI. Showing Length of Time 309 Business Enterprises had been at Addresses where Found, Manhattan, 1909.

The first of these facts would have effect on the question of a firm's getting credit on purchases of supplies and both facts mean a great deal in securing and holding a retail trade.

That a detailed comparison may be made, Table XXVI, showing length of time firms had been at addresses where they were found, is added (p. 119).

3. BUSINESS METHODS

The age and permanence of a firm does not influence its success so much as its business methods. And an index of its efficiency in this respect is its methods of accounting. These are shown in the means used for keeping accounts Negro business men were asked whether or not they used ledger, journal, cash-book, day-book, or other records. Some enterprises such as grocery stores, would have need of a mechanical register. If a firm had one, it was inspected. Facts about 49 establishments were not available. Of these, 35 firms had no means of keeping accounts, other than the memories of those running the place. These were, however, very small enterprises. Of the 260 remaining, 60, or 23 per cent, kept a ledger, 122, or 46.9 per cent, kept a cash-book, and 33.5 per cent had day-books. Thus showing that 37 more firms kept day-books than kept ledgers, and 62 more firms kept cash-books than ledgers. Of the 260, 28 had mechanical cash registers and 64 had some form of record in addition to or other than those named. In a phrase, the Negro business man is learning the methods of the business world in keeping track of his business affairs, though in most cases they are small. Table XXVII gives the details on this point. (See p. 121.)

Table XXVII. Means for Keeping Accounts used by 309 Negro Business Enterprises, Manhattan, 1909.

4. CREDIT RELATIONSHIPS

The manner and care with which a firm keeps record of the business it transacts is closely connected with its credit relations with the buying and selling community. And both these determine to a large extent its business operations. Considerable light was thrown upon the credit relations of Negro enterprises by finding out, wherever possible, whether a firm gave credit occasionally or habitually to customers and whether it received credit from suppliers. Naturally, many proprietors would not give any reply to such an inquiry, and especially about their credit standing with wholesale firms. On such a delicate point, however, information about the giving of credit was secured from 205 firms, and about the receiving of credit from 94 firms. Of the 205 that furnished statements on the matter of giving credit, 87, or 42.4 per cent, occasionally, and 69, or 33.6 per cent, habitually had given credit to customers, while 49, or 23.9 per cent, did not allow credit. When asked about their credit relations with suppliers, 47 replied that they did receive credit, and 47 that they did not receive any; and 215 gave no reply on this point.

5. THE PURCHASING PUBLIC

Length of time established, length of location at an address, methods of accounting and the credit relations play no more important a part in the efforts of Negroes to build up their business enterprises than do the subtle whims and prejudices of the community. This is shown first by the location of nearly all the enterprises in Negro neighborhoods. Of all the 309 enterprises, 288 were located either within or upon the border of the Negro districts. It may be expected, of course, that Negroes will look to their own people first for their patronage, but they should be allowed to cater to the public at large, especially in a cosmopolitan commercial center like New York. In the case of real estate brokers, this is partly true and has grown partly out of the Negro broker's ability to handle more successfully than others properties tenanted by Negroes. It is not generally the case in other lines of business, however, as the testimony of many Negro business men shows.

It was difficult to get statements that would be a basis for a percentage estimate of how liberally white people traded with these Negro firms. Brokers gave no statements that could be so used because nearly all of the 16 brokers had many transactions which involved white owners and colored tenants, white or colored sellers and white or colored buyers. Employment agencies faced a similar situation. Of the other 279 firms, 81, or 29.7 per cent, reported no white customers; 92, or 33.3 per cent, reported that less than 10 per cent of their customers were white. Thus 63 per cent of the Negro business firms have to depend upon the small purchasing power of their own people for the trade with which to build up their enterprises. This is partly due to the feeling of the Negroes in business that they are to cater mainly to Negroes and partly to their inexperienced way of handling customers. But the main reasons are the difficulties they have in renting places in desirable localities and in the refusal of white people to patronize Negroes in many lines of trade.[76] Of the remaining firms 42, or 15 per cent, reported between 10 and 49 per cent white customers. The numbers above were small and only one firm, in the class of dressmaking and millinery, and three in the miscellaneous class, reported an exclusive white trade.

What a battle the Negro business man has to fight can be surmised when to the fact of a narrow patronage from his own people, who have the small purchasing power of their low-paid occupations, is added the severe competition of white firms with larger capital, with more extended credit and larger business experience, that vie with him for even this limited field. Table XXVIII (p. 125), which follows, was compiled on the basis of proprietors' statements of the probable number of white and colored customers over a given number of months. It is about as accurate as such an estimate can be and is far more reliable and definite than general impressions. The percentages of white customers are given, it being understood that the remainder were Negroes. This small amount of information is very significant in showing how the attitude of the white public affects the economic advancement of the Negroes.

In the foregoing chapter we have reviewed some very definite facts concerning the Negro business man's dealing with the community. We have seen that his enterprises are permanently established although against great odds, but that permanence of address is not so well secured. Nearly all, 260 out of 309, were known to have some of the usual methods of keeping accounts, and of the 205 from whom information on the matter was obtained about three-fourths gave credit either occasionally or habitually; while of the 94 who answered as to their receiving credit, about half did and the other half did not receive credit.

Table XXVIII. Estimated Proportions of White Customers of 279 Negro Business Enterprises, Manhattan, 1909.

The attitude of the white purchasing public has had a tremendous effect on Negro business, because it has failed to forget color in its business dealings. In many lines of business white people will not patronize Negroes at all and about two-thirds of all enterprises depend upon the low purchasing power of the Negro group. The idea that white people will not trade with them to any considerable extent and that they must depend upon their own people is so steeped into the mind of the Negro that he often does not perceive that he is catering to the whole public, white and black.

FOOTNOTES:

CHAPTER IVToC

Some Sample Enterprises

In the first chapters on Negro business enterprises, the several classes of establishments were described in order to present a picture of business among Negroes as a whole. A more concrete idea of the organization and operation of these enterprises, as well as of the proprietors who own and operate them, may be gained from detailed descriptions of selected establishments of each kind. These have been chosen as representing a fair type of the classes to which they belong. On some points there may be wide variations, but each class as a whole is fairly represented by those detailed.

1. INDIVIDUALS AND PARTNERSHIPS

Establishment No. 1 was a barber shop started in 1898, and moved once to the present address eleven years before. The proprietor was born in Savannah, Georgia, had resided in New York City for about twenty years, and was a journeyman barber before starting his own shop. He employed four barbers besides himself, paying each barber between forty and fifty per cent of his receipts. This shop was about 12 feet by 40 feet, and the rental was $30.00 per month. The estimated value of his tools and fixtures was about $700.00, and the estimated gross receipts of his business were $3,500.00 in 1907 and $4,000.00 in 1908. The proprietor kept a cash-book which he balanced once a week. He started his enterprise with one chair, bought with savings from his earnings as a barber. He did a strictly cash business. His customers were Negroes only, although he kept a first-class, cleanly place, was in a district where there were a large number of small white business establishments and some white tenants, and bought his supplies from a white firm.

No. 2. This was a barber shop established in 1890, had moved twice, and had been located at the last address four years. The proprietor called himself "the pioneer" as he visited New York City in 1856-7 and had been living here 32 years in 1909, coming from Calvert County, Maryland. He had worked as a barber in a shop run for white customers, and by this means saved money to set up for himself in Mott Haven some years before opening in New York. He employed one additional barber, had a shop about 12 feet by 28 feet, for which he was paying $35.00 rent. His tools and fixtures were worth about $200.00, and his gross receipts amounted to about $900.00 in 1907 and about $850.00 in 1908. He used a cash-book and occasionally credited customers, although he paid cash for supplies from a white firm. His shop was located in a distinctly Negro neighborhood and all his customers were Negroes.

No. 3. This establishment was a grocery store started by a West Indian at the address where it was found, who took a partner at the beginning of the second year. The junior partner, a Virginian by birth, was brought to New York by his mother 12 years previously, while the other had resided here ten years. The senior partner had a very small grocery business during one year in the West Indies and worked as an elevator boy and saved capital after coming to New York, as his change of residence had absorbed his limited resources. The Virginian was peddling tea and coffee before entering the firm. He had been a porter in a department store, but preferred "to be independent, as it seemed too hard to work for another man." They employed one helper and both put in their time; they occupied a floor space 20 feet by 40 feet, at a rental of $35.00 per month. The tools and fixtures were estimated at $350.00; these included a safe and a large national cash register. The careful inventory of stock showed $450.00 worth on hand, and the gross receipts from May, 1908, to May, 1909, was estimated at $6,000.00. The large national cash register and bank book were sufficient means of keeping accounts for the strictly cash conduct of the business. Only a few whites, about all of whom were Jews, live in the blocks adjoining the Negro neighborhood. They found this store most convenient and traded with the firm, but more than five-sixths of its customers were Negroes. The firm sent out hand-bills weekly, and used other forms of advertisement.

No. 4 was a grocery, started in September, 1906, at the same address where it was found by the investigator. The proprietor came from the West Indies to New York City about 12 years previously and engaged in hotel work by means of which he saved his capital. He was still so employed, while his brother conducted the store. The store room was about 14 feet by 40 feet, at a rental of $35.00 per month. The tools and fixtures were valued at $100.00, and the merchandise on hand at about $300.00. The estimated gross receipts were between $2,500 and $3,000 in 1907, and about $2,700 in 1908. Only a cash-book was used in keeping accounts. This was balanced once a week, and an inventory of the stock was taken once a quarter. Credit was habitually allowed to customers, all of whom were Negroes. No whites lived in the neighborhood.

No. 5. This was a real-estate and insurance agent, who began business in July, 1907, and had moved once since. He was born in Virginia and had been in New York City twelve years. This man's business career started as soon as he left college, as his father had given him an education and arranged affairs to that end. He entered his father's barber shop in Virginia and remained three years, then came to New York and started a club and saloon business with capital brought from his native home. This was carried on four years and sold out. After several intervening years, the present enterprise was started on some of the capital derived from the sale of the previous establishment. He employed two collectors, had an office space of about 12 by 40 feet in one of the tenements of which he had charge. His gross receipts from commissions, etc., were about $2,300.00 in 1908. Ledger, cash-book and day-book were used in accounting. The landlords of the properties he handled were all white, but all tenants were Negroes. The real estate sales and exchanges he has handled have been of a similar kind.

No. 6. This was a real estate broker who began business in November, 1903, in Nassau street and moved to his present address two years later. He was born in New York and has always made his home there. Before he finished his high school course, he worked during spare hours and vacations for a real estate firm. After graduation from high school, he started to work with the same firm on a commission basis until he began business for himself as a regular broker. He employed two assistants in his business and had an office in one of the large buildings in the Wall Street district. His office was modestly but adequately furnished, the fixtures, typewriter, etc., estimated at $200.00. In 1907 his gross receipts from commissions, fees, etc., were over $2,500, and in 1908 over $3,000. His capital was accumulated from the business; he used ledger and cash-book in his accounting and both gave and received credit in his transactions. He was a member of the New York Fire Insurance Exchange, and has done considerable study in evening courses on insurance, banking, etc. About 95 per cent of his business dealings were with white people.

No. 7. This enterprise in dressmaking and ladies tailoring was started in August, 1906, at the address where found. The proprietress came from her native city, Pittsburgh, Pa., to New York three years previously, and set up her establishment with money she had saved from sewing in Pittsburgh. She employed three helpers and used for business purposes the front room of her apartment, which rented for $25.00 per month. Her tools and fixtures were valued at about $175.00, and she kept less than $100.00 worth of stock on hand, as all work was to order. Gross receipts were about $2,300 in 1907, and about $3,000 in 1908. A cash-book only was used in keeping accounts. About three-fourths of the customers were white.

No. 8. This is an employment agency started about 1889 by the proprietor who came from Delaware the year preceding. In the flourishing days when Negro help was in large demand he made money and formerly employed two or three helpers. When seen, he alone did not find full employment. His fixtures were worth less than $50. He used two front rooms of his living apartment for business purposes. His gross receipts in 1907 were $1,316, and in 1908, $1,076. He used a cash-book and the two record books required by the employment license law. He supplied colored help for white families almost entirely; business was running low because white help was "displacing the colored help of years past."

No. 9. This was a restaurant, established in September, 1904, and moved to the present address two years later. The proprietor was born in Jacksonville, Florida, and had resided in New York six years when interviewed. He was a cook and head-waiter before beginning business for himself. He had two employees, his place occupied a 14 feet by 40 feet basement, for which he paid about $18.00 rental. His fixtures, etc., were valued at about $150, and his gross receipts were about $3,500 in 1907, and $3,000 in 1908. He had saved money for the enterprise while engaged in hotel service in Jacksonville. All his customers were Negroes, except one white regular customer. He admitted occasionally giving credit to customers, although a sign on the wall said, "Positively, no trust."

No. 10. This firm sold coal, wood and ice. It was established in September, 1907, at the address where found, by a native Virginian who had lived in New York seventeen years, and had previously worked as a porter in a jewelry house. No help was employed and the small amount of stock on hand, between $40 and $50, was kept in a cellar about 12 feet by 18 feet. For this a rental of about $8.00 per month was paid. The gross receipts amounted to about $800 in 1908. The proprietor had saved some money from his previous occupation on which to begin; he was located in a Negro neighborhood, so depended entirely on their patronage. He habitually gave credit to customers but received none from his white suppliers.

No. 11. This tailoring establishment was started in September, 1907, by a West Indian, who had lived in New York eighteen years and had worked as journeyman tailor in St. Christopher, W.I. He had moved five times since the business was begun. He did mostly cutting and fitting, but some "busheling." He did not employ any help, and lived in two rooms in the rear of his business place, paying $25 per month for all. The tools and fixtures were worth about $150, and the stock on hand about $50, while gross receipts had amounted to $1,200 in 1907 and about $1,100 in 1908. He kept a cash-book; gave credit occasionally, but received none.

This proprietor said he came to New York leaving paying work behind, because of tales of high wages in his trade; that at first he answered advertisements for journeymen but was turned away when they saw he was a Negro. Finally, he worked as waiter to get money to start for himself. His first "stand" was in a white neighborhood with white trade, but when a considerable number of Negro customers began to frequent his place the neighbors made objections to the landlord, who would no longer rent him the place. At the time of the interview he was in a Negro neighborhood and had only four or five white customers.

No. 12. This also was a tailoring firm, started in 1907, which did mainly cleaning, pressing and repairing ("busheling"). The proprietor was a Georgian by birth, came to New York six years previously, and worked as a valet, and as elevator man in an apartment. He employed one part-time assistant, used for his business the front room, about 12 feet by 14 feet, of an apartment which rented for $25 per month. His tools and fixtures were valued at $140, and he carried about $75 worth of second-hand clothing in stock. His gross receipts in 1908 were about $800. He kept lists of work done for customers. He had been in the same line of business for seven years in his native state, and both times had saved wages to carry out his "desire from a lad up to do business." About two-thirds of his customers were white, and he gave credit habitually.

No. 13. This firm for express and moving service was established in September, 1902, in the same block where found, by a Virginian, who had lived in New York City fifteen years and who worked as a Pullman porter before beginning in this line of business. He usually employed from five to seven men, according to the seasonal trade. He had an express wagon and two vans, which with the horses were valued at $1,200. His gross receipts amounted to about $3,100 in 1907, and about $3,600 in 1908. In keeping accounts both ledger and day-book were used. The proprietor had run a small grocery in Virginia before coming to New York, and some of the capital from its sale had been saved and put into this enterprise. He depended upon white customers for about two-thirds of his patronage.

No. 14 was a manicurist and hair-dressing firm started by the proprietress in May, 1903, who had been in New York eleven years in 1909 and who worked at a pocket-book factory before starting into this venture. She was a native of Virginia. The enterprise was not large enough for any employees; tools and fixtures were worth about $60, and hair goods, etc., on hand were valued at $75; the front room, about 12 by 14 feet, of the living apartment was used for business purposes. In 1907 and 1908 the gross receipts averaged about $1,000, which was mainly fees for manicure and hair-dressing services. This enterprise was started that the proprietress might "be at home," and a cash trade almost solely among white people was being developed.

No. 15. This was an undertakers establishment started in 1897 by a minister, who came to New York from Virginia about twenty-five years ago. The firm had been located at the address where found about nine years, and had a branch in another part of Manhattan. Two helpers were employed, the floor space was about 20 by 40 feet, for which a rental of $35 per month was paid. Tools and fixtures, including dead-wagon, were valued at $1,200, and about $300 of stock was kept on hand. The gross receipts of the business were about $9,000 in 1907, and about $8,000 in 1908. Ledger, cash-book, day-book, and funeral register were used in keeping accounts. The proprietor started on a small saving from his salary as a minister, having to run the business a year before he had the additional $200 in cash for deposit for registration in the Casket Makers Association, thus securing credit on supplies. He habitually allows credit to customers, all of whom, with very rare exceptions, are Negroes.

No. 16 was a hotel on the European plan, established in 1899 by a Georgian who had been in New York five years previously and had saved his wages in several kinds of hotel work to get his start. He usually employed six helpers; the place occupied a four-floor building about 25 by 60 feet, for which a rental of $1,800 per year is paid. Fixtures, furniture, etc., were valued at $2,000. The gross receipts of the hotel were a little over $10,000 in 1907, and between $9,000 and $10,000 in 1908. Both ledger and cash-book were used in keeping accounts. Nearly all customers were Negroes, and whites were not especially sought because those who did come were usually looking for a colored dive and did not act in an orderly way. Credit was occasionally allowed customers and the firm had such standing that it could get such amounts from suppliers as it wished.

No. 17 was a pool-room with a club arrangement in connection. It was started in 1901 by a native of Virginia, who had been living in New York eleven years. The firm had moved once since its establishment. The proprietor was a waiter before beginning this enterprise; he employed two helpers, his place occupied three floors about 25 by 40 feet, and he paid a rental of $75 per month. His fixtures, tables, etc., were valued at between $1,800 and $2,000, and he said they were all paid for. In 1907 the gross receipts were about $3,400, and in 1908 about $3,700, the "best year." A cash-book was kept and balanced twice a year. Negroes "almost altogether" were customers. This proprietor had an ambition from boyhood to run a business and at one time had a second-hand furniture store in Long Branch, N.J.

No. 18 was a job-printing house, started in June, 1908, run since that time at the same place by two partners, one of whom was born in Washington, D.C., the other in the West Indies. The West Indian had been in New York fifteen years in 1909, and had been in the same business once before; the other had been in New York twenty-five years; both had saved money as they worked as journeymen printers before entering business for themselves. At the time of the interview they did not employ any helpers, but their tools, fixtures, etc., were valued at about $900, and the floor space occupied was about 14 by 25 feet. The gross receipts during the six months of 1908 were about $900, and the monthly average for the first month of 1909 was somewhat higher. A cash-book was used in keeping accounts, and about one-third of their customers were white people. They did a strictly cash business.

No. 19 was a saloon and café which was opened in November, 1908, at the place where found. The proprietor came from Kentucky to New York about ten years previously and worked in a cigar store. He employed from seven to nine helpers, and his place occupied about 20 by 60 feet floor space, with a rathskeller in the basement; he paid $100 per month rental. Fixtures, etc., were valued at about $2,200, and stock was kept on hand to the amount of between $700 and $800. Sufficient data for an estimate of gross receipts were not forthcoming. Ledger and cash-book, with cash-register, kept record of business transacted. Customers were "Negroes, almost exclusively" with a "white person now and then." At one time the proprietor ran a cigar store, growing out of his work in such an establishment.