-+ - Estimated square feet of floor space. -+ -+ -+ -+ + 2000 3000 5000 sq. ft. sq. ft. sq. ft. Class of establishment. to to and Unknown. Total. 2999 4999 over. sq. ft. sq. ft. -+ -+ -+ -+ + Barber shops 1 50 Brokers 16 Coal, wood and ice 5 19 Dressmaking and millinery 2 8 Employment agencies 2 14 Express and moving vans 4 12 Groceries 1 36 Hairdressing, etc. 3 8 Hotels and lodging houses 3 6 5 2 17 Pool and billiard rooms 2 1 10 Printers 5 Restaurants and lunch rooms 2 26 Saloons and cafes 2 1 5 Tailoring, pressing, etc. 3 24 Undertakers 2 11 Miscellaneous 1 1 9 48 -+ -+ -+ -+ + Total 4 10 8 36 309 -+ -+ -+ -+ +

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:

[66] New York Colonial Laws, p. 157.

[67] Ibid., pp. 519-21.

[68] Williams, op. cit., vol. i, p. 142.

[69] New York Colonial Laws, vol. ii, p. 310.

[70] Minutes of the Common Council of New York, vol. iv, pp. 497-98.

[71] New York State Laws, Eleventh Session, p. 675.

[72] S.R. Scottron in Colored American Magazine, Oct., 1907, and several others interviewed by the writer.

[73] Vide, pp. 68-69.

[74] The 48 miscellaneous establishments were distributed as follows: boot and shoe repairing 6, hand laundries 6, cigar, tobacco and confectionery retailers 5, boot-blacking and hat-cleaning firms 5, fruit and vegetable dealers 4, cigar manufacturers 3, house-cleaning firms 3, garages 2, upholstering and mattress-making establishments 2, watch and jewelry dealers 2, bakeries 2, and bicycle repairer, photographer, hat-cleaner and repairer, hardware and notions, painter and plasterer, tea, coffee and spices retailer, fish retailer and storage firm, one each.

[75] Cf. Part 1, Chapter III, pp. 58-59.



CHAPTER II

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.

+ Estimated valuation of plant, tools and fixtures. + + + + + + + Class of Less $50 $200 $400 $600 $800 establishment. than to to to to to $50. $199. $399. $599. $799. $999. + + + + + + + Barber shops 3 27 8 5 3 Brokers 1 5 4 Coal, wood and ice 14 Dressmaking and millinery 6 1 1 Employment agencies 5 5 2 1 Express and moving vans 1 1 3 1 1 Groceries 1 22 11 2 Hairdressers, etc. 5 2 1 Hotels and lodging houses 1 2 1 Pool and billiard rooms 1 1 1 Printers 1 1 Restaurant and lunch rooms 9 10 3 1 Saloons and cafes Tailoring, pressing, etc. 2 18 2 1 Undertakers 2 1 1 Miscellaneous 14 17 8 3 + + + + + + + Total 51 90 63 23 10 6 + + + + + + +

+ - Estimated valuation of plant, tools and fixtures. + + + + + + Class of $1000 $1200 $1500 $2000 Doubtful establishment. to to to and and $1199. $1499. $1999. over. unknown. Total. + + + + + + Barber shops 1 1 2 50 Brokers 2 4 16 Coal, wood and ice 5 19 Dressmaking and millinery 8 Employment agencies 1 14 Express and moving vans 1 4 12 Groceries 36 Hairdressers, etc. 8 Hotels and lodging houses 2 2 7 2 17 Pool and billiard rooms 4 3 10 Printers 1 2 5 Restaurant and lunch rooms 1 1 1 26 Saloons and cafes 1 3 1 5 Tailoring, pressing, etc. 1 24 Undertakers 2 1 4 11 Miscellaneous 1 5 48 + + + + + + Total 10 1 8 25 22 309 + + + + + +

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.

+ Estimated valuation of stock on hand. + + + + + + + Class of Less $50 $100 $200 $400 $600 establishment. than to to to to to $50. $99. $199. $399. $599. $799. + + + + + + + Barber shops 14 2 3 1 Brokers Coal, wood and ice 13 2 2 2 Dressmaking and millinery 1 1 Employment agencies Express and moving vans Groceries 1 4 14 8 7 Hairdressers, etc. 3 2 Hotels and lodging houses 1 1 Pool and billiard rooms[A] 3 1 Printers 1 Restaurants and lunch rooms Saloons and cafes 1 1 Tailoring, pressing, etc. 5 4 Undertakers 3 1 Miscellaneous 12 4 4 8 1 + + + + + + + Total 52 13 14 33 15 9 + + + + + + +

+ Estimated valuation of stock on hand. + + + + + -+ Class of $800 $1000 $2000 Doubtful Refused. Totals. establishment. to to and and $999. $1999. over. unknown. + + + + + + - Barber shops 30 50 Brokers Coal, wood and ice 19 Dressmaking and millinery 1 5 8 Employment agencies Express and moving vans Groceries 1 1 36 Hairdressers, etc. 2 1 8 Hotels and lodging houses 14 1 17 Pool and billiard rooms[A] 5 1 10 Printers 4 5 Restaurants and lunch rooms Saloons and cafes 3 5 Tailoring, pressing, etc. 1 14 24 Undertakers 2 1 4 11 Miscellaneous 1 18 48 + + + + + + - Total 3 4 3 62 16 241 + + + + + + - [A] Cigars and tobacco.

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 cafe 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.

KEY: A: Doubtful and unknown. B: Established since 1907.

-+ Gross receipts of Negro business enterprises. -+ -+ -+ -+ -+ -+ Less $1000 $2000 $3000 $4000 Class of than to to to to establishment. $1,000. $1,999. $2,999. $3,999. $4,999. + + + + + + + + + + + 1907 1908 1907 1908 1907 1908 1907 1908 1907 1908 -+ + + + + + + + + + + Barber shops 3 5 11 13 7 5 4 2 Brokers 2 2 4 3 1 1 3 1 1 Coal, wood and ice 6 6 2 2 Dressmaking and millinery 1 1 1 2 1 1 1 Employment agencies 1 3 3 1 1 1 Express and moving vans 2 3 1 1 1 2 1 Printers 1 1 Groceries 4 3 2 4 3 1 2 Hotels and lodging houses 2 2 1 1 1 Pool and billiard rooms 2 1 1 1 2 1 Restaurants and lunch rooms 2 3 3 2 Tailoring, pressing, etc. 5 5 4 5 1 1 Saloons and cafes Undertakers 1 1 1 Hairdressers 1 1 1 1 1 1 Miscellaneous 7 9 1 3 1 1 2 -+ + + + + + + + + + + Totals 32 38 37 38 18 9 15 15 5 6 -+ + + + + + + + + + +

-+ - Gross receipts of Negro business enterprises. -+ -+ -+ -+ -+ -+ - $5,000 $10,000 Class of to to $15,000 establishment. $9,999 $14,999. above. + + + + + + + 1907 1908 1907 1908 1907 1908 A B Totals. -+ + + + + + + -+ -+ - Barber shops 2 2 10 13 50 Brokers 1 1 1 5 16 Coal, wood and ice 7 4 19 Dressmaking and millinery 2 2 8 Employment agencies 8 1 14 Express and moving vans 1 4 2 12 Printers 2 2 5 Groceries 5 6 1 1 10 10 36 Hotels and lodging houses 2 2 1 3 8 17 Pool and billiard rooms 1 5 10 Restaurants and lunch rooms 1 1 20 26 Tailoring, pressing, etc. 1 13 24 Saloons and cafes 1 1 1 3 5 Undertakers 1 5 3 2 3 11 Hairdressers 2 3 8 Miscellaneous 1 1 1 1 10 24 48 -+ + + + + + + -+ -+ - Totals 12 17 5 3 4 2 63 118 309 -+ + + + + + + -+ -+ -

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 III

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.

+ Length of time at present address. + -+ -+ -+ -+ -+ Less 6 mos. 1 yr. 2 yrs. 4 yrs. Class of than to 11 to 1 to 3 to 5 establishment. 6 mos. mos. yr. 11 yr. 11 yr. 11 mos. mos. mos. + -+ -+ -+ -+ -+ Barber shops 5 1 13 10 5 Brokers 1 2 3 2 2 Coal, wood and ice 1 2 2 3 1 Dressmaking and millinery 1 1 2 3 Employment agencies 3 2 5 1 Express and moving vans 2 2 1 1 1 Groceries 4 6 12 7 4 Hairdressers, etc. 1 1 2 2 Hotels and lodging houses 2 3 5 1 Pool and billiard rooms 1 3 1 2 1 Printers 3 1 Restaurant and lunch rooms 5 8 3 7 2 Saloons and cafes 2 2 Tailoring, pressing, etc. 2 5 10 7 Undertakers 1 1 3 1 Miscellaneous 6 12 13 6 3 + -+ -+ -+ -+ -+ Total 30 51 70 66 22 + -+ -+ -+ -+ -+

+ - Length of time at present address. + + + -+ + 6 yrs. 8 yrs. 10 Class of to 7 to 9 yr. Total. establishment. yr. 11 yr. 11 and Unknown. mos. mos. over + + + -+ + Barber shops 3 3 5 5 50 Brokers 2 1 3 16 Coal, wood and ice 2 1 7 19 Dressmaking and millinery 1 8 Employment agencies 1 2 14 Express and moving vans 1 1 3 12 Groceries 1 2 36 Hairdressers, etc. 2 8 Hotels and lodging houses 3 2 1 17 Pool and billiard rooms 1 1 10 Printers 1 5 Restaurant and lunch rooms 1 26 Saloons and cafes 1 5 Tailoring, pressing, etc. 24 Undertakers 2 1 1 1 11 Miscellaneous 2 1 5 48 + + + -+ + Total 14 9 13 34 309 + + + -+ +

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.

+ - Means used in accounting by Negro business enterprises. + -+ -+ -+ - Class of Ledger. Journal. Cash-book. Day-book. establishment. + -+ -+ -+ -+ -+ -+ -+ - Yes. No. Yes. No. Yes. No. Yes. No. + -+ -+ -+ -+ -+ -+ -+ - Barber shops 2 43 45 23 22 7 38 Brokers 13 3 3 13 16 8 8 Coal, wood and ice 13 1 12 2 11 7 6 Dressmaking and millinery 1 7 8 5 3 1 7 Employment agencies 3 11 2 12 10 4 4 10 Express and moving vans 10 10 4 6 5 5 Groceries 10 25 3 32 12 23 21 14 Hairdressing, etc. 1 4 5 1 4 3 2 Hotels and lodging houses 4 6 10 3 7 4 6 Pool and billiard rooms 1 9 10 5 5 2 8 Printers 2 3 5 3 2 5 Restaurants and lunch rooms 2 10 12 8 4 1 11 Saloons and cafes 3 2 1 4 2 3 2 3 Tailoring, pressing, etc. 2 19 2 19 7 14 8 13 Undertakers 8 3 1 10 5 6 5 6 Miscellaneous 8 32 2 38 16 24 9 31 + -+ -+ -+ -+ -+ -+ -+ - Total 60 200 15 245 122 138 87 173 + -+ -+ -+ -+ -+ -+ -+ -

Means used in accounting by Negro business enterprises. - -+ - Mechanical Other cash-register. records. Class of + - - - establishment. Yes. No. Yes. No. Unknown Totals - - - - - Barber shops 10 35 2 43 5 50 Brokers 16 5 11 16 Coal, wood and ice 13 1 12 6 19 Dressmaking and millinery 8 1 7 8 Employment agencies 14 14 14 Express and moving vans 10 1 9 2 12 Groceries 7 28 2 33 1 36 Hairdressing, etc. 5 5 3 8 Hotels and lodging houses 10 2 8 7 17 Pool and billiard rooms 5 5 10 10 Printers 5 2 3 5 Restaurants and lunch rooms 12 12 14 26 Saloons and cafes 4 1 5 5 Tailoring, pressing, etc. 21 7 14 3 24 Undertakers 11 11 11 Miscellaneous 2 38 11 29 8 48 - - - - - Total 28 232 64 196 49 309 - - - - -

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.

-+ Estimated Proportion of Whites of Total Customers of Negro Business Enterprises. + -+ -+ -+ -+ -+ Class of establishment. None. Less 10%- 25%- 50%- than 24%. 49%. 74%. 10%. -+ -+ -+ -+ -+ -+ Barber shops 16 23 7 2 Brokers Coal, wood and ice 5 5 3 1 1 Dressmaking and millinery 1 1 1 Employment agencies Express and moving vans 1 1 1 5 Groceries 10 18 2 4 2 Hairdressers, etc. 1 5 Hotels and lodging houses 15 1 1 Pool and billiard rooms 3 3 2 2 Printers 2 2 Restaurant and lunch rooms 16 7 1 2 Saloons and cafes 1 1 1 2 Tailoring, pressing, etc. 4 9 1 5 2 Undertakers 5 6 Miscellaneous 4 12 4 2 11 -+ -+ -+ -+ -+ -+ Totals 81 92 22 20 28 -+ -+ -+ -+ -+ -+

-+ Estimated Proportion of Whites of Total Customers of Negro Business Enterprises. + -+ -+ -+ + - Class of establishment. 75%- 90%- 100%. Doubtful Total. 89%. 100%. and Unknown. -+ -+ -+ -+ + - Barber shops 2 50 Brokers Coal, wood and ice 1 3 19 Dressmaking and millinery 2 2 1 8 Employment agencies Express and moving vans 2 1 1 12 Groceries 36 Hairdressers, etc. 2 8 Hotels and lodging houses 17 Pool and billiard rooms 10 Printers 1 5 Restaurant and lunch rooms 26 Saloons and cafes 5 Tailoring, pressing, etc. 1 2 24 Undertakers 11 Miscellaneous 4 6 3 2 48 -+ -+ -+ -+ + Totals 10 14 4 8 279 -+ -+ -+ -+ +

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:

[76] This conclusion is based upon the statements of Negroes that white people have entered their stores apparently to buy, but beat a retreat upon finding a Negro in charge. Two Negro proprietors employed white workmen to call at residences, etc., in the operation of their businesses while they kept in the background. The writer traced out cases of refusals to rent places to Negro firms. Some of the incidents would be amusing if they were not tragic.



CHAPTER IV

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 cafe 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.

2. THE NEGRO CORPORATION

As was pointed out in a previous chapter, the Negro enters business either alone or with one or two partners. Small enterprises can be so financed. But for undertakings that require considerable capital those who enter them must either have large means or a number must combine their small funds.

The Negro is alert to business lines which offer chances of profit. He is slowly learning the method of "big business." The corporation, with its advantages of impersonal responsibility, facility for taking in or releasing members, and particularly its combined capital, has been adopted in a few cases. These can be treated briefly for what variations they show from the general type.

One of these was a corporation that ran a garage, furnished storage and other care for machines and operated a line of taxicabs, employing from nine to eleven men. Three of the firm members had been employed chauffeurs and thus got the idea and the money to start the firm. There was storage space for about 50 cars. One of the proprietors came from Georgia, another from North Carolina. They had a book-keeper and the usual books for a business house. Five Negro owners and about forty white owners were storing cars with them.

Another enterprise was a corporation of undertakers with a board of eight directors, who held nearly all of the stock. In size they had four employees, occupied a floor space of about 1,200 square feet at a monthly rental of $150. The investments represented about $1,500 in dead-wagon and fixtures and a stock on hand of about $1,000. The gross business was between $9,000 and $10,000 in 1907, the first year of the business; and over $20,000 in 1908. At its organization there were ten corporators who subscribed about $300 each to float the enterprise. It is interesting to note that a hotel-keeper, a minister, three men in other lines of business and the manager of the concern were among these ten.

Two other corporations were printing establishments, each with six original incorporators. One firm did job printing. The other was a publisher of popular songs and has produced several of New York's most popular airs. They had two and ten employees, occupied about 158 and 3,000 square feet of floor space, respectively. The larger firm had a plant valued at between $4,000 and $5,000, kept several hundred dollars worth of stock on hand and did a gross business of about $15,000 in 1907, and about $17,000 in 1908. The smaller firm had been organized in 1909. The larger had run more than four years. The corporators of the smaller concern included an editor, a messenger, silk-factory employee, and laundry employee; those of the larger, a liquor dealer, two actors and three composers of popular songs.

The four other corporations were real estate firms, a line of business requiring considerable capital and attracting the higher grade of business ability. In these instances, all except one firm was composed of the few original incorporators, making the arrangement only a little removed from a partnership. The one exception was a large concern with a capital stock of over $500,000. The previous occupations of the principal promoters of this company included a lawyer, a pharmacist and two real estate brokers.

The stock of this concern was held by small investors in many parts of the United States. The firm at one time employed over 200 people in and out of New York, and claimed to have done an annual business of over $200,000. At some period in its history it may have done so large a business, but this was probably only for an exceptionally prosperous year. This may have led to too sanguine attempts on the part of the promoters. Because of other poor business methods and bad attempts at investment the enterprise failed in the winter of 1910-11.

Three obvious points are shown by the facts concerning these corporations: First, they were composed of only a few members and therefore were not far removed from large partnerships. This set a large limit to command of capital for there were no large capitalists in New York among Negroes. Second, this form of combining capital and business ability has been tried in a few lines of business only—three in all, if we exclude the garage. Third, as seen in their previous occupations, the promoters were men above the average in ability and of some experience.



CONCLUSION



CONCLUSION

The significance of the foregoing facts is clearly indicated by the summaries following each set of figures. The road to the conclusions is straight. Turning to the preceding chapters, let us see what conclusions are warranted.

The urban concentration of the Negro is taking place in about the same way as that of the white population. In proportions, it varies only to a small extent from the movement of the whites, save where the conditions and influences are exceptional. The constant general causes influencing the Negro population have been similar to those moving other parts of the population to cities. The divorce from the soil in the sudden breaking down of the plantation regime just after the Civil War and the growth of industrial centers in the South, and the call of higher wages in the North, have been unusually strong influences to concentrate the Negro in the cities. It is with him largely as with other wage-earners: the desire for higher wages and the thought of larger liberty, especially in the North, together with a restlessness under hum-drum, hard rural conditions and a response to the attractions of the city, have had considerable force in bringing him to urban centers. Labor legislation in the South has played its part in the movement.

The growth of the industrial and commercial centers of the South, the larger wages in domestic and personal service in the North, and social and individual causes of concentration bid fair to continue for an indefinite period. The Negro responding to their influence will continue to come in comparatively large numbers to town to stay.

But the Negro's residence in the city offers problems of maladjustment. Although these problems are similar to those of other rural populations that become urban dwellers, it is made more acute because he has greater handicaps due to his previous condition of servitude and to the prejudiced opposition of the white world that surrounds him. His health, intelligence and morals respond to treatment similar to that of other denizens of the city, if only impartial treatment can be secured. Doubtless death-rate and crime-rate have been and are greater than the corresponding rates for the white populations of the same localities, but both crime and disease are a reflection of the urban environment and are solvable by methods similar to those used to remedy such conditions among white people, if prejudiced presuppositions, which conclude without experiment or inquiry that Negroes have innately bad tendencies, give place to open-minded trial and unbiased reason. Snap-shot opinions should be avoided in such serious questions and statesmen, philanthropists and race leaders should study the facts carefully and act accordingly.

The study of the wage-earners among the Negroes of New York City has disclosed conditions and led to conclusions in line with the foregoing inferences. The Negro population was solidly segregated into a few assembly districts, thereby confining the respectable to the same neighborhoods with the disreputable. This population is made up mainly of young persons and adults of the working period of life, attracted to the city largely from the South and the West Indies, principally by the thought of better industrial and commercial advantages. Single persons predominate and the percentage of the aged is low. High rents and low incomes force lodgers into the families to disturb normal home life.

From the early days of the Dutch Colony the Negro has had a part in the laboring life of this community. While most of the wage-earners have been engaged in domestic and personal service occupations, figures that are available warrant the inference that the Negro is slowly but surely overcoming the handicaps of inefficiency and race prejudice, and is widening the scope of employment year by year. What the individual asks and should have from the white community is a fair chance to work, and wages based upon his efficiency and not upon the social whims and prejudices of fellow-workmen, of employers, or of the community.

In domestic and personal service the Negro is poorly paid compared with the cost of living. And even in skilled occupations, where unions admit him and wages are offered equal to those of white workmen, the Negro must be above the average in speed, in quality of work done, and in reliability to secure and hold places.

In domestic and personal service, the verdict from a large body of evidence is that, judged by the testimony of employers as to the length of time employed, the capability, sobriety and honesty of the workers, Negroes furnish a reliable supply of employees that need only to be properly appraised to be appreciated. What is needed for the workers in this class of occupations and for those in the skilled trades, is that more attention be given to adequate training, that more facilities be offered and that a more sympathetic attitude be shown them in their efforts for better pay and better positions.

In reviewing the Negro's business operations judgment should be tempered by consideration of his past and of the tremendous odds of the present. There are handicaps due to the denial of the chances of getting experience, to inefficiency born of resulting inexperience, to the difficulty of securing capital and building credit and to the low purchasing power of the patronage to which a prejudiced public limits him. He is not only denied experience, sorely limited in capital and curtailed in credit, but his opportunities for securing either are very meagre. In spite of all this, there has been progress which is prophetic of the future.

From the days of slavery Negroes have tried the fortunes of the market place and under freedom their enterprises have increased in number and variety. At the present time Southern-born and West Indian Negroes form the bulk of the business men, the latter far in excess of their proportion in the Negro population. This success of West Indians is partly a result of training and initiative developed in a more favorable environment, as they had the benefit of whatever opportunities their West Indian surroundings offered.

Although they gained the meagre capital chiefly from domestic and personal service occupations, Negroes have entered and maintained a foothold in a number of lines of business unrelated to these previous occupations. One of the most important findings is that Negroes form few partnerships and that those formed are rarely of more than two persons. Co-operative or corporate business enterprises are the exceptions. This fact has its most telling effect in preventing accumulations of capital for large undertakings. But co-operation in business is largely a matter of ability born of experience and where can Negroes get this experience in well-organized firms, under experienced supervision? For it is more than a matter of school instruction in book-keeping and the like. In practically the entire metropolis, they rarely get beyond the position of porter, or some similar job. Some fair-minded white people who wish to help the Negro help himself could do great service for the economic advancement of the Negro by throwing open the doors of business positions to a number of ambitious, capable Negro youths, who would thus enter the avenues of economic independence. The writer knows of three Negroes in New York City who proved themselves so efficient in their respective lines that they were taken in as members of large firms.

Another serious matter is connected with this point. All 309 firms were retail establishments, all of them bought from wholesale suppliers who so far as could be ascertained were white firms. In some lines, there were sufficient retailers to support a wholesale house if their purchases were combined. For example, the group of 50 barber shops or of 36 grocers would each support a jobber if they pooled their patronage. But this would demand an organizing power, a business initiative, a fund of capital and a stretch of credit, which only some men experienced in the method of the modern business world could possess.

The small size and scope of Negro enterprises cannot be attributed to lack of business capacity alone. For the gross receipts of the selected years taken in connection with the valuation of tools and fixtures, and with the stock of merchandise on hand showed considerable diligence and thrift in turning these small resources to active use.

The variety of the many small establishments indicates also the initiative of the Negro in using every available opportunity for economic independence. As we have seen, some of the proprietors had early ambitions for business careers, and others had worked hard and saved carefully from small wages that they might rise from the class of the employed to that of employers. The public to which the Negro business man caters should accept his wares and his services for their face value and not discount them because of the complexion of his face. Then, too, Negroes must learn that the purchasing public desires to be pleased and is larger than the limits of their own people.

Negro wage-earners and business men have great difficulty in scaling the walls of inefficiency and of race prejudice in order to escape the discomforts and dangers of a low standard of living.



APPENDIX A

FAMILY SCHEDULE

+ + + Serial FAMILY SCHEDULE Surname: No. Investigator. No. in family: Address: Date: Source of No. earning wages: Floor: No. of rooms: Bath? Rent: information. No. depending on Location on floor: family income: front, rear, right, left. ====================================================================================== MARITAL EDUCATION AND INDUSTRIAL CONDITION TRAINING.[*] + -+ + Family Age Place of Time Reason M S W D S Chr Pol R W M S M C M I S M T T W F Members. Birth. in for a i i i e + X e r o c o o o n c o r r h o N.Y. coming r n d v p a i s h s l s d h s a a e l to . g . . . d t o . l . u o . d d r l N.Y. . . e i o e s o e e e o . n l i g i t l a . w . n e n r . t e . i d a . l + -+ + -+ +-+-+-+-+-+ -+ -+-+-+ -+ -+ -+ -+ + - 1. Man 2. Woman (Sex.) 3. 4. 5. 6. (Lodgers) 7. 8. ====================================================================================== [*] OCCUPATION. (State exact kind of work done and weekly pay.) -+ + -+ + + -+ -+ Family At Hours During D l p y During + Church Members. present Weekly per past Weekly a o a e entire affiliations. time. Pay. day. year. Pay. y s s a time B = Baptist. s t t r in N.Y. M = Methodist. . City. E = Episcopal + -+ + -+ + + -+ -+P = Presbyterian. 1. Man C = Catholic. 2. Woman MN = Moravian. (Sex) + 3. X Political 4. affiliations. 5. R = Republican. 6.(Lodgers) D = Democrat. 7. S = Socialist. 8. PB = Prohibition. 9. + 10. *See space for 11. remarks on other side (3) (4).

FAMILY SCHEDULE (REVERSE SIDE)

UNSUCCESSFUL APPLICATIONS TRADE UNION, SECRET FOR WORK.* (1) REASON FOR REFUSAL.* (1) SOCIETIES.* (2) + Family Date Place: Name Kind of Place Lack of Name of Why not Members and Address Work Filled Skill Color Other Organiz- member? ation Did you apply? + + + -+ + -+ -+ -+ + 1. Man 2. Woman (Sex.) 3. 4. 5. 6. (Lodgers) 7. 8. + + + -+ + -+ -+ -+ +

* (1) Remarks on Unsuccessful Applications:

* (2) Remarks on Trade Unions and Secret Societies:

* (3) Remarks on Occupation:

* (4) Remarks on Education, Trade Training, etc.: (Where and how was trade learned?)



APPENDIX B

FIRM EMPLOYEES SCHEDULE

(The information given will be regarded as confidential.)

Nature of business of firm———————————————-

1. Total number of employees: 2. Total number Negro employees:

3. In spaces below state exact nature of work done by your Negro employees:

+ -+ + + + -+ + Male No. Weekly Male No. Weekly WORK DONE. or F. Employed Wages. WORK DONE. or F. Employed Wages. + -+ + + + -+ + + -+ + + + -+ +

4. Are white workmen paid same wages for same kind of work?

5. Are your Negro workmen

(a) Faster, equal, or slower in speed than white workmen? (underline proper word).

(b) Better, equal, or poorer in quality of work done than white workmen? (underline proper word).

(c) More, equally, or less reliable than white workmen? (underline proper word).

6. If not now, have you ever employed Negroes? (See the other side.)

FIRM EMPLOYEES SCHEDULE (REVERSE SIDE)

7. If competent Negro workmen could be furnished, would you employ them?

8. If you would not employ them, please give reasons.

9. Remarks on attitude of your white workmen toward Negro workmen, etc.



APPENDIX C

BUSINESS SCHEDULE.

BUSINESS SCHEDULE—CONFIDENTIAL

DATE: FIRM NAME: ADDRESS:

INFORMANT: WHEN ESTABLISHED: HOW LONG AT THIS ADDRESS? ———————————————————————————————————

1. Organization (underline): individual, partnership, number of partners_, agent.

2. (underline): Manufacture, jobbing, wholesale, retail,___

3. Kind of service or goods offered (e.g., hotel, barber, groceries, real estate, etc.)_______

4. Number of employees: _ Estimated total business done past 1907: $__ 1908: $__

5. Previous occupations of owners or promoters:

6. Birthplace of owners or promoters: ______ Years in N.Y. City: _

7. Valuation of plant, tools, Fixtures, etc.: $ Of merchandise on hand: $

8. Other assets: $ Liabilities: $

9. Insurance: $ Rent per month: $ Floor space:

10. Nationality of customers: _______

11. Account books used (underline): Ledger, journal, cash-book, day-book

12. How often are books balanced?

13. Inventory taken?_________

14. For what special reasons did you enter business: ____ (How was capital secured?):_______

15. Remarks on history, etc., of firm: (Credit given occasionally? Habitually? Received?): _______

(For further remarks use back).



SELECT BIBLIOGRAPHY

Bibliography of the Negro American, Atlanta University Pub. no. 10. W.E.B. DuBois, editor, Atlanta, Ga., 1905.

Bibliography of Negroes. U.S. Congr. Lib., 324.

American Woman's Journal, July, 1895. The Story of an Old Wrong

Atlanta University Publications, W.E.B. DuBois, editor.

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INDEX

Assembly districts, Negroes in, 52-53

Back-to-the-land movement, 33

Business establishments, nature of, 98 Classified, 99 Floor space occupied by, 106 Gross receipts of, 113-114 Length of residence in New York of proprietors of, 101 Number of employees in, 105 Ownership of, 100 Permanence of location of, 118-119 Table of floor space of, 107 Table of gross receipts of, 115

City growth, causes of, 13 Foot-note on, 43-44

Colonial General Assembly, laws passed by, 94-95

Colored American (newspaper), 67, 96

Crime in cities, 39-41

Death-rates of whites and Negroes, 34-37 Changes in Richmond, Va., 37-38

Diagrams: I. Increase of whites and Negroes in cities, 16 II. Death-rates in cities, 36 III. Distribution of Negro population in Harlem, 50 IV. Distribution of Negro population in "San Juan Hill" district, 51

Freedmen, as shiphands, 66 Property escheated, 95

Health of Negroes in cities, 34-38

Industrial centers, migration of Negroes to, 19-25

Lake George, Negroes in battle of, 66

Lodgers, natural members and, 62 Consist of, 63 Natural members in families, 62-63 Number of lodgers in families, 64

Migration to cities, 15-17 Secondary causes of, 29

Nativity of Negroes, of New York State, 57 Of New York City, 58-59 Of West Indians, 58 Of business proprietors, 100

Negro population of New York, table showing growth of, 47 Distribution of 2,500 families in, 52-53 Segregation of Negro, 48-51

Negro, riot of 1712, 95 So-called plot of 1741, 67

New Amsterdam Colony, slaves as laborers in, 66 Slaves owned land in, 67

Occupations, history of, 66-69 In 1890 and 1900, 69-71 In 1905, 72 Proportion of males and females in, 73 Tables of, 71-72, 74

Reasons for Negroes coming to New York, 27-28 Tables of, 27, 31-32

Slaves, as farm laborers and stevedores, 66 Able to hold land, 67 Forbidden to trade, 94

Soil, divorce of Negro from, 18-19

United Public Waiters, 68 Becomes Beneficial Association, 69

United States, city growth in, 13

Wages, in domestic and personal service, 78-79 In hotel service, 81 Table of, 80-81 Union rates, 82

Wage-earners, sex and age, 54-55 Efficiency of male, 83 Efficiency of female, 84 Efficiency of skilled, 88 Marital condition of, 60-61 Tables of efficiency of, 85, 87

Wilcox, Professor, quoted, 14

Work, M.N., quoted, 40-41



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