Small Business

When President Coolidge remarked that "the business of America is business," most of his listeners thought at once of Big Business--U. S. Steel Corp., Standard Oil of New Jersey, General Motors, etc., etc. But for every billion-dollar corporation there are countless thousand-dollar corporations. For every Big Business that worries about the anti-trust law there are many small businesses that worry about the sheriff. And perhaps it is the little business that moves in the most mysterious ways its wonders to perform.

Consider, for example, a scene which last week took place in the offices of a concern called Standard Diamond Co., Manhattan. President of the company is one Peter B. Johnston. Manager of the company is one George E. Stillings. On the president's desk is a large brass nameplate: "P. B. Johnston."

Enters Mr. Stillings, angry. He drapes the nameplate with black crepe. He puts before it a floral wreath. He adds a placard reading: "Financially Dead." To reporters Mr. Stillings remarks: "Mr. Johnston's conduct has been extremely foolish and I intend to take severe measures with him." As one would suspect, Standard Diamond Co. deals in diamonds. Its patrons agree to pay $1 a week for 100 weeks, at the end of which period they receive a diamond worth $175. If they pay $2 a week for 100 weeks they get two diamonds, worth $350. The company reserves the right to make a cash settlement at any time after eleven installments have been paid, this settlement to consist of a refund with the generous interest of 37-3%. This repayment-with-interest appears to have overshadowed the jewelry portion of the business. Hundreds of dollar-a-week investors have had their partial payments refunded at interest up to 40%.

If, however, purchasers fail to meet their weekly payments, their interest in their diamond "lapses." and when "lapsation" takes place the money previously paid in becomes profit for the Standard Diamond Co. Mr. Johnston began to worry about what would happen to the interest payments if the "lapsations" began to fall off. Perturbed, he called the District Attorney's office and the Better Business Commission. It was at this point that Mr. Stillings reappeared, ornamented his colleague's desk.

Mr. Stillings talked volubly to the press. He said he had invented the business, "lapsation" and all. Asked how he could pay a usurer's interest rate, he said: "If I told you. you would start in the business for yourself."