CHAPTER IV
THE NEW ORDER
Cassell's was no more immune from the law of life than any other business. Progressive in youth, vigorous in maturity, it was the expression of its own epoch. That epoch was superseded by a new one with new aims, methods, needs. To survive, Cassell's had to adapt itself to changing environment, and failure to do so brought about first a check in its growth and then a decline. It attempted too long to live on its reputation. Age is respectable; reputation is valuable; but these alone are not enough for success. There was wit in the legend hung out in Cheapside by a new-comer in business: "Established Since the Flood."
When the Company was formed in 1883 the prospectus referred with becoming pride to thirty years of unexampled prosperity and to expansion of the business which made it imperative to transform it into a public company, with a capital of £500,000. The document set out that the profits for each of the previous five years would have been sufficient to pay more than 10 per cent, upon the share capital of the new Company. And the implied expectation was realized. The profit of the Company's first year was £38,415. The next year it increased to £40,852. In 1885 it was £39,651; in 1886, £40,381; in 1887, £41,154; in 1888, £39,110; and in 1889 the high-water mark of prosperity was reached with a profit of £44,616. The dividend until this year had been 10 per cent. There was now added a bonus of Is, 8d. per share, which was repeated in 1890, when the profit was slightly less at £42,911. In 1891 the profits fell to £40,048; in 1892 to £37,107. A period of depression set in, which with certain fluctuations continued till 1904, when 4 per cent, was paid with great difficulty.
85
