A Diamond in the Rough
Page 18
Paul returned. “Phil will be here in a few minutes. Have you found a place to stay?”
“No, I haven’t. I came here straightaway from the dock. The Hotel Metropole was recommended to me; in fact, I passed it on the way here, and thought it rather nice. I’ll stop by when I leave here.”
“Excellent. There are others, but I would say that it’s the best. The Metropole has been in Cape Town for thirty years and only seems to get better as time passes. If for any reason there are no rooms available, the Carnival Court is another longtime hotel that’s good; it too is on Long Street a little further down.”
When Phil finally arrived at the store, they made plans for the evening. “Ben, I would like to suggest that you get your room squared away, and you might want to freshen up. Please have dinner with us, where we can discuss our offer in a more relaxed atmosphere.
“How about meeting back here at 6:00 p.m. when the shop closes? We will have dinner at my house. My wife Lena is an excellent cook, who loves having company, I might add, especially since our girls are away at school in England. Paul and his wife Rene live nearby and will join us.”
Ben felt truly welcomed by the Zeller brothers. They were complete strangers, yet he felt he had known them for a lifetime. “You are too gracious, and I can’t thank you enough. I will be back by the time you close, and I look forward to a delightful evening.”
Hotel Metropole opened in 1895 in Cape Town, South Africa and quickly became one of the City’s Landmarks. Five stories high, it was a tower at the corner of Long and Castle streets, rising over 90 feet above street level. Its very imposing and grand appearance was designed in the old German Renaissance style that featured red pointed brickwork and artificial stone facings, an upper story veranda, quaint dormer windows, pediments, and a cupola on the Mansard roof.
Ben entered the hotel and approached the desk. After paying for and securing the room for a week, he was given the key and apprised of various eating establishments in the area—they were numerous.
His room was located on the third floor on the front side of the building, and had a balcony overlooking Long Street. He unpacked, checked the time, and lay down for a brief rest before bathing and heading back to the store by 6:00 p.m.
Ben arrived at the store to find Paul and Phil waiting for him. They set off for Brooklyn where both brothers lived. It was a short drive of 7 kilometers. While Paul drove, Phil pointed out various retail and eating establishments in the immediate area of the store to give Ben an idea of the neighborhood.
As they neared their destination in the Good Hope Model Village in Brooklyn, Ben saw a synagogue and several newly built cottages where the Zeller brothers lived on the same street.
In his small village in Russia, there were only one or two room dwellings with dirt floors, meager furnishings at best, and certainly no table set as fine as the one before him—even on the Sabbath. The china and crystal sparkled on the beautiful cloth that covered the table. And the aroma coming from the kitchen was heavenly.
Introductions aside, they sat down to a fine meal and an evening like no other Ben had ever experienced.
After the meal, the men retired to the sitting room to discuss business.
Paul began by asking Ben about himself. “I grew up in Minsk, Russia—life was very hard. My brothers and I watched our family and friends abused and killed by the pogroms and other catastrophes over and over again. My father’s family goes back generations in the gem cutting business; my grandfather taught my father, and they both taught my brothers and me. We also learned to be jewelers working with gold and silver.
My brother Harry left Minsk a year ago and with his wife settled in London. When our parents passed away several months after their departure, my brother Sydney and I also decided to leave Russia. He sailed for America while I sailed here to South Africa.”
He removed a small bag from his pocket. “I have brought a few samples of my work; not only stones that I have cut, but rings that I have crafted as well. I am also quite accurate at rating stones. In addition, I have come up with a device that allows me to measure the size of a stone more precisely.”
Paul took the samples from Ben. He began by telling him the history of Zeller Jewelers. “Now, twenty years later, we have added gem cutting and polishing to our endeavors. We have dealt with cutters in Antwerp, and we have tried dealing with others in India. Quality has never been an issue; it’s been all about time.
“We purchased an old warehouse, refurbished and subdivided it into three separate spaces; we leased two of them. The third space, we fashioned into a workshop, fully equipped with the latest tools, benches, lighting, and the myriad of items needed to produce a finished product—cut and polished diamonds for our customers—right here in Cape Town.
“Everything went according to plan, that is almost everything. The one thing we didn’t anticipate was the difficulty finding cutters willing to relocate and come to work for us. We searched first in South Africa and then started contacting people out of the country; no one seemed anxious to join us.
“We convinced Saul Davis from our synagogue to come out of retirement to help us out. He agreed but stated emphatically that he was only willing to do so on a temporary basis.
“Phil and I are not looking to make the cutting center into any type of massive production entity; we envision three to four cutters at most. But one never knows. If time proves the facility can do more, then we will deal with it when that day comes.
“We came up with the idea of the center exclusively for Zeller’s; cutting and polishing the rough stones that we purchase from various sources—all in South Africa. If we build a team of cutters that allows us to offer these services to others, we are open to that; but to offering our services only—we do not want to purchase rough stones for anyone but Zeller’s. They would have to supply the stones to be finished.
“We realize that once the workshop is manned and running at full capacity, our options are limitless—we can provide these services to other jewelers in Cape Town, as well as all of South Africa and beyond.
“Tell me Ben, does this sound like something you might be interested in?”
Without hesitating, he replied. “It actually sounds better than I anticipated. The part I like best is the growth potential. To me it says, the harder you work, the more successful you’ll be. In Russia, there was no growth, no potential, and no future.”
Phil rose, excused himself, and left the room. When he returned, he turned to Ben. “Please come to the dining room where you can enjoy a second cup of coffee and dessert with Lena and Rene. Not only are they going to feed you, but perhaps bore you a bit with family pictures and the like. Phil and I need a few minutes.”
Paul and Phil smiled as they heard laughter coming from the other room. At last Paul asked Ben to join them again.
“We discussed your compensation at great length. Coming up with a fair offer proved to be more difficult than we expected. Should we pay you by the piece? Should we pay you for your time? Should we just offer you a flat salary?
“After learning that you have so much more to offer, it was necessary for us to go back and look at hiring you in a different manner.
“As we tried to come up with an offer that would be beneficial to both you and Zeller’s, we took into consideration the fact that you came here to relocate, and we realize this makes your needs greater at the onset.
“So Ben Lyons, we reached the decision to offer you a percentage in Zeller’s Annex—the official name of the diamond cutting center. We are hereby offering you a salary and a 25% interest in the net profits of the Annex. We own the property outright so there will be no rent involved. Net profits will be figured and payable at the end of each calendar year.
“Zeller Jewelers will be the first Annex client and will pay the same rate for services as any future clients. Of course, we will look to you for guidance at sett
ing prices based on what is involved in each particular case.
“To begin with, we will sit down with you to come up with fair compensation—enough to cover your living expenses, etc. We anticipate increasing your salary as business increases.
“There is no title for the position, at least there wasn’t before this evening. Learning that you have abundantly more to offer than we were seeking has required us to take a different approach. We are still searching for additional cutters. When they come on board, yours will be the lead position. At that time, your title will become Manager.
“To be fair to all of us, if you accept our offer, we are proposing a probation period of ninety days where either party can change their mind. In the meantime, we will help you secure a place to live, introduce you to our community, and show you that a life in Cape Town can be good.”
Ben sat silently. The Zeller brothers had given him a lot to think about. He came to South Africa for a job; they were offering him a life—a life far beyond his wildest imagination.
CHAPTER TWENTY-ONE
When ninety days had come and gone, neither the Zeller brothers nor Ben chose to cancel their agreement. Ben found an apartment on Long Street that was ideally located. As promised, he returned to The General Store and struck up a friendship with Franz Schiller. They attended services at the synagogue and learned about each other’s pasts, and their reasons for leaving home. As Franz had stated that very first day at their very first meeting, “We all come seeking a better way of life.”
Ben fell in love with the Annex. It was a far cry from the makeshift area his grandfather and father taught him and his brothers the art of diamond cutting and polishing. The newness, the cleanliness, the brightness—he actually loved getting up each morning, stopping at the corner café for a quick breakfast, and briskly walking to the Annex two blocks up from the harbor.
He quickly proved to the Zeller brothers that they had made a good choice in hiring him. Originally, the brothers felt offering him a percentage of the business would be incentive, but they quickly learned that Ben’s incentive was inherent. He would never deliver less than his very best.
Six months after Ben’s arrival, the Annex hired two brothers from Johannesburg, and Saul Davis returned to retirement. Ben, Jonah, and Nathan were a good team. They worked well together, and as each day passed, the Annex came into it’s own. Their reputation grew, and the Annex began acquiring additional clients.
For the most part, Jonah and Nathan Kahn were loners. They were good workers, never late, eager to please, and willing to learn. They even managed to teach Ben a thing or two about the new brilliant cut they had first seen in Johannesburg. Once they felt their jobs at the Annex were secure, they moved their families to Cape Town.
Ben assigned their work and helped them if needed. Nothing makes time pass faster than being occupied. With the additional clients, the Annex was consistently busy, and the months turned quickly into years.
Although several attempts were made to introduce Ben to widows at the synagogue, no one caught his eye. His business life was phenomenal; he had even purchased a small cottage of his own, yet he yearned for family.
One evening, as Ben sat relaxing with Franz after they had met for dinner, he commented. “We’ve been inundated with orders; trying to keep up gets harder by the day. I’ve been thinking of speaking with Paul and Phil about hiring one or two more men. If we don’t, we will have to stop accepting new orders at the rate we have been.”
“What about your brother Sidney? He’s still in Cuba, is he not? Is he still hoping to get to America?”
Suddenly, Ben was all smiles. “Why Franz that’s an excellent thought. I had given up on asking him to join me here; he turned me down many times. Now that years have passed, and he remains waiting to get to America—you might say, so close and yet so far—he might be more open to coming to Cape Town. I’ll send him a wire in the morning.”
Three months later, Ben met Sidney at the dock. The Annex now had a staff of four cutters. Business was good; business was about to get even better.
Extensive new diamond discoveries were made in South Africa in 1926 and 1927, first in Lichtenburg and then in Alexander Bay. By 1929, Oppenheimer secured controlling interest in both; however, the markets were flooded by these massive discoveries, and De Beers suffered considerably just as he took the helm at the onset of the Great Depression. Stagnant sales in the early 1930s—poor to nonexistent—resulted in mining coming to a complete halt in 1932.
For the next decade, Oppenheimer instituted important structural changes to De Beers and the diamond sales pipeline as he moved forward with his vision—a single organization that would be an exclusive marketing channel for world rough diamond production through a single central selling entity—the Diamond Corporation, Ltd., which was founded in 1930.
With rumors of war rampant; Nazism on the rise and spreading; and the world heading towards chaos, De Beers continued to increase its stockpile in London; the mines remained closed; and with each new discovery of diamonds, moved quickly to gain control of these new finds and shut them down.
For De Beers, it was business as usual with one goal in mind—control.
The looming war was about to add a new dimension to the diamond industry causing Oppenheim to shift focus to industrial diamonds.
The 1930s brought many changes to the diamond industry and to diamonds in South Africa, mostly due to the events leading up to and the eventual outbreak of World War II. Cape Town continued to prosper and grow; immigrants continued to arrive, but not as much to seek their fortunes in diamonds and gold as to escape the rise of Nazi tyranny all across Europe.
As Jews fled Nazi Germany during the mid-1930s, large numbers relocated to Cape Town. These new immigrants were mainly shopkeepers seeking to open their own establishments and carry on their trades from whence they came.
A number of groups sympathetic to Nazism emerged in South Africa. Perhaps the best known was the South African Nazi Party or more aptly known as the Gryshemde (Grey Shirts in Africa) because their paramilitary Sturmabteilung-like uniforms.
Its platform was the basic Nazi anti-Semitic rhetoric that extreme rightwing groups favored. The Grey Shirts were active in organizing large and sometimes violent street protests that for the most part were staged for show.
Headquartered in Cape Town, they opened a branch office in Pretoria and published a newsletter called The Bulletin where they attempted to justify the actions of the national socialists both in Germany and South Africa. Although the government closely monitored any and all of the Grey Shirts’ activities, they were largely left alone.
The General Store had been open for business since diamonds were discovered in Kimberley. Simon Abel opened the store when his parents died, leaving their farm on the Orange River that had ceased being a working farm years prior.
Realizing Cape Town was the port of entry for a majority of the prospectors who came seeking their fortune in diamonds and gold, he equipped the store with the myriad of items including provisions that they needed to embark on their quests.
His store’s location so close to the harbor was generally their first stop; and they came with cash in hand eager for advice and equipment. This worked out quite well for Simon, and he prospered.
Once De Beers gained control of the mines and closed them down, it became an ongoing problem for Franz to stay ahead of the game and continually shift his inventory to items he thought would appeal to his customers. The store’s location had proven excellent for a general store, but others saw it as a prime location for other types of businesses.
Through the years, he had received offers from time to time to purchase the property for these other types of establishments, but he wasn’t interested. If he gave up the store, what would he do? How would he spend his time? In addition, in the back of his mind loomed the diamonds hidden beneath the floor of his living quarters.
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He had become good friends with Ben Lyons when he arrived in Cape Town, and since Sidney’s arrival, considered him a good friend too. He decided to seek their advice about The General Store and what he could possibly do to increase business. On several occasions, the thought crossed his mind to seek advice from the brothers about the diamonds, but he wasn’t quite ready for that decision, as yet.
Asking Ben and Sidney to meet him at his store one evening after closing, was the first step, and he awaited them.
They entered the store, and Ben called out, “Hello, are you here Franz?”
Coming into the store from the back, he greeted them warmly. “I asked you here tonight my good friends for a little advice, a little business advice. I’m hoping you can help me make a few changes to The General Store.”
He gave them a brief overview of how and why Simon Abel opened it over sixty years before. “Now, all these years later, times have changed and continue to change and business has fallen off. I do not want to sell; nor do I want to go out of business. I really don’t know what I want to do. What I do know is that the store is in an excellent location, and I’m trying to come up with a new entity to put in its place.”
Sidney looked at Ben. “What did I tell you when I first arrived in town? If you remember, I said this would make a fantastic smoke shop featuring the best in Cuban Cigars. There is no such shop around here—this would be the first.”
Ben nodded. “You did say exactly that, and I thought you were just missing your Cuba experience.”
When Sidney arrived in Cuba, the only job he could find was working in a cigar factory. At first, he wasn’t too happy, but after learning all aspects of the business from the owner himself, began to enjoy it immensely. Except for the fact that he had the distinct feeling that the owner was looking at him as a possible husband for his not too attractive daughter, he remained in the position his entire stay. The factory not only produced the best and most popular cigars in all of Cuba, but also several varieties of cigarettes.