Chapter 8: Chapter 8
The new estate agency of Pryor and Fox started well. Mr. Kimpton came round the
next morning, soon after opening time, and following some face-saving bargaining
and lectures on the virtue of Yorkshire thrift and hard work he capitulated and
bought the draper's shop for the full price.
As soon as the deposit cheque was safely buttoned up inside Mr. Pryor's breast pocket
and their very first client was gone, with his receipt, he darted off to deposit the
cheque in the bank. He had no preferences one way or another, and no bank account,
so he too went to the Occidental and Civic Bank as his partner had done and grandly
called on the head teller to draw his attention to the new account in the name of Pryor
and Fox.
His appearance and manner were so impressive that the head teller, in spite of the
youth of this customer, called the manager out of his office to be introduced to their
new client.
They were astonished to think that both he and Fox had made substantial deposits on
following days. At the same time he opened an account for himself into which he
deposited Gabriel's cheque for his half of the partnership.
He received his cheques and a deposit book from the hands of the manager himself.
These preliminaries completed, and the firm now well launched, he hurried back to
the agency to see what else had happened.
Gabriel was talking to a customer. He had some brochures spread out on the counter
for the benefit of this man, a speculative builder who wanted a block of land so that he
could erect a house for resale. The man was doing most of the talking so Fox was able
to conceal his ignorance of Melbourne and its environs, nevertheless he looked up
with relief when his partner bustled into the office.
Pryor rubbed his hands together and moved briskly behind the counter. "One block of
land, fifty or a thousand, my dear sir," he said. "If you want land you've certainly come
to the right agency. We have selections of prime land here that no other agency in
Melbourne could even think of matching. Brighton, Prahran, Windsor, Emerald Hill,
Hotham Hill, Williamstown; opportunities everywhere, just waiting for a man of drive
and decision to come along and take advantage of them."
"It'll have to be cheap," said the builder. "I don't know why I bother considering the
price of land nowadays. There's no money in spec building anymore. Things are
crook; there are too many people out of work; they can't pay rent and they can't pay
the deposit on a house."
Mr. Pryor gave him a knowing, look. "Ah, that's where you're wrong. There was never
a better time or better place to make a fortune, and there'll be nothing better than
land and houses. If we can get rid of Berry as Premier and get some business men in
charge there'll be no stopping you or me or the colony of Victoria," he said.
"Look at this!" he smoothed an estate plan out on the counter with his hand and
pointed to a particular street. "There you are; one whole street. The road is to be
made soon. You're lucky you came to us, no other estate agency in Melbourne has got
this particular subdivision."
"I've seen it twice already this morning," retorted the man. "The first agency
said the road should be done in about five years and the second said, about three, but
they didn't think it would be done in much under."
"Ah, yes!" said Mr. Pryor, abruptly shifting his ground, "But can these other
agencies offer finance? We can arrange very favourable rates through our connection
with the Occidental and Civic Bank. I can take you round this morning if you wish, and
arrange a loan on your behalf with the manager. There is no problem. If Mr. Fox and I
recommend you the bank will have no hesitation in advancing all the money you
need. Nevertheless, if you prefer to do business with a finance company my partner
has access to unlimited capital. You let us take care of the financing and selling. The
whole affair can be arranged this week and you can start hiring workmen on
Monday.''
''Mr. Fox is a well known financier; put your case to him. We will have to have full
details, of course. We know the land, we can view the plans and estimates and we can
advise you about the prices of the completed houses. If you're game we can be in and
out of this deal inside six months. Don't you worry about unemployment; people are
hungry for houses. We'll sell them for £10 deposit and ten shillings a week. There
won't be one left unsold inside three months."
Fox and the builder both listened with growing apprehension to this expansive sales
talk. The builder was accustomed to building one house at a time and obtaining bank
finance to pay for both the land and the building costs. It was a small business that
depended on a steady demand for medium priced houses. Pryor's vision of him
running up whole rows of workmen's cottages for sale on low deposits was more than
he was prepared for.
Gabriel was equally concerned. He did not believe that the manager of the bank would
extend credit to the builder on the recommendation of two clients whom he had
never met before that day. As for his own money; what he had left was a substantial
sum but he could not see how it could purchase thirty or forty blocks of land and then
finance the building of houses on them.
His partner continued oblivious, or unheeding, of the consternation he was causing in
his listeners. "Finance is the least of our worries," he said. "I don't think we need
approach the bank at all. Mr. Fox has come to Victoria to represent a very large
building society. I sent a cable to the directors some time ago pointing out the
magnificent opportunities there are in Australia, particularly Melbourne. There are
over two hundred and eighty thousand people living in this city now, and more
coming every week, so they sent Mr. Fox out by steamer to assess the market."
The builder looked dubiously at Gabriel who tried to assume a nonchalant air.
Pryor went on relentlessly, "Ten percent interest is reasonable under the
circumstances and we will have credits made available for you to draw on so that you
can go straight through without any breaks or difficulties."
"That's more than the Building Societies charge." Said the builder suspiciously, "and
you both look too young to me to be in the finance business. Anyway, all I want is to
buy a block of land."
Pryor gestured to him to move further along the counter while Gabriel appeared to
busy himself with some papers. The young estate agent leaned across and put his
hand up to the side of his mouth. "It's alright," he muttered. "Mr. Fox's father is
Managing Director and founder of the Melbourne and London Amicable Building
Society, one of the biggest in Britain! Millions in capital. They've got offices all over
the place and now they want to start operations in Australia, but naturally they have
to be cautious. The old man sent out his favourite son to test the market and what
better place to do it than in a busy office like this." He shrugged and spread his
hands out in an eloquent gesture. "Getting capital like that into the colony will be one
of the biggest things that has ever happened to Victoria; and I might say," he put a
finger to his lips to imply confidentiality, "Mr. Fox is most pleased with what he has
seen. He has been working on his report to his father for some time. I haven't seen it,
naturally, but I have great hopes that it will clinch our position as the premier colony.
I can guarantee that any money they care to invest here will be doubled inside five
years."
The builder was impressed but not yet willing to be drawn into the web that Pryor
was creating around him. "Ten percent is a lot when I can go to the society and pay
eight."
"Of course, but can they offer a complete service? They lend you money on a house
and if you can't find a buyer and pay back the loan they foreclose and you lose
everything."
The builder looked pained. Obviously such a thing had happened to him.
"But with us," said Pryor, "You are offered a complete service. Not only can we give
you continuing credit as you need it, but we will also guarantee to sell the houses for
you. You leave it to us, we're experienced in this sort of transaction and we can offer
a continuous return. The way to fortune, Sir is to use other people's money in your
business enterprises."
Eavesdropping from his corner Fox could only agree silently but fervently with this
observation from his stimulating but uncomfortable partner.
Eventually the builder, against his better judgment, promised to go out, with a copy of
the estate plan in his pocket, and tentatively pick out some suitable streets in order to
assess better the propositions that had been put to him. Pryor was to meet him on
the land at ten o'clock the following morning to assist with the choice.
As soon as he had gone Fox rounded on his partner and demanded to know what
game he thought he was playing. "What's all this rubbish about a building society?
What happens when he finds out there isn't any building society and the bank
wouldn't lend five shillings on our say so?"
Mr. Pryor was unworried. "Forget the bank, by the time he's ready to start there will
be a building society. I think I'll go up and register one this afternoon. That name I
dreamed up is a beauty; we'll call it the Melbourne and London Amicable Building
society; how does that sound? It's going to be the biggest thing that ever hit Victoria.
When I get back from the registrar we'll work up some ads for the paper asking
people to subscribe. Ten pounds deposit, then ten bob a week paid into the office, and
after twelve months you can borrow enough to build your own house."
"That's £36," said Gabriel after a moment's mental calculation. "We'll end up in jail.
We can't go lending people hundreds of pounds on a deposit of thirty six; and what's
the idea of telling that cove that I'm going to pay for streets full of houses. All I've got
is less than two hundred and fifty pounds," And it'll be even less when you pay my
cheque into your account.''
"Don't forget your share of the profit on Kimpton's shop, and you get your twenty
sovs back, besides," was Pryor's retort. "It's easy. We're going to make that money
work so hard you won't believe it. First we'll buy four blocks of land - that's forty
quid. We'll show him the deeds made out in the name of the society and tell him we've
got an option on the rest, then we advance some money. It’ll be just enough to get
him going - besides he'll get ninety days credit from all his suppliers. By the time the
bills start to roll in we'll be getting deposits and payments from the buyers, as well as
the people who are putting in for their own twelve months loan."
"What if we can't sell the houses? What do we do about money then?"
Pryor slapped him on the back. "They'll sell! Trust me Gabby! We'll sell 'em on deposit
and we'll give a good discount for cash, too. In twelve months, two years, people'll be
pointing you out in the street when you drive past in your chaise and they'll say,
'there's that wealthy Mr. Fox, he's a director of the Melbourne and London Amicable
Building Society, the richest in Australia.' And you will be Gabby, you will be! All you
have to do is trust me. In a few years Pryor and Fox are going to be the biggest men in
this town. Another thing; if we're going to be the biggest we've got to be the quickest.
As soon as this fellow signs up we start selling the houses. If we sell off the plans we
can offer them their own choice of paint colours, or something or other; we can talk
that over later." "How much money are you putting in?"
"Ah, said the young man, "I put in the brain power. I was going to make a fortune
anyway, but this money of yours will speed things up considerably. You'll get in to the
way of it, Gabby. Don't leave your money lying around; make it work like billy-oh."
He went off presently to register the name of the proposed Building Society. He was a
jaunty figure of confidence wearing a silk hat perched on the back of his ead. He had
discarded his overcoat because of the warmth but was impeccably dressed with a
handsome black suit and grey waistcoat, a silver watch chain, a diamond tie pin, and a
silver banded walking stick which he had inherited from his father, along with the
watch and chain.
In spite of his youth no one could doubt the probity and financial acumen of such a
man; by appearance he was born to be an estate agent, auctioneer, or stock-broker.
He strode off along Swanston Street raising his hat now and then to matrons or
gentlemen whom he might or might not know on the theory that to become a
prominent and well known figure around the city was a good way to succeed.
Gabriel was sorry to see him go. It was sometimes embarrassing to be in charge of an
estate agency in the middle of a city of which he was almost totally ignorant. Apart
from that the young man's bursting self confidence kept him from worrying about the
possible consequences of launching into grandiose building and financial schemes.
Even though he was responsible for Gabriel's fears of losing his newly acquired cash,
at least he could convey assurance that all would be well.
Half hopeful, half fearful of a client coming into the agency and wanting to buy or sell
something Gabriel settled down to read the morning papers and study the classified
advertisements.