| Friday, June 27, 2008 |
| Famous financier Russell Sage sees the value in free money in 1905 |
 I ran across this January 8, 1905 article featuring the famous money lender Russell Sage and found this quote interesting: A Four-Cent Check
Not long ago Russell Sage cashed a check for 4 cents and as he did so it is said he remarked: "It was just like finding money, just like picking it up from the sidewalk." The check came in a letter. It was from a theatrical firm, calling his attention to their new play then running at the theater and inclosing the check to pay for the time used in reading the letter. This was the note:
"Assuming that your income is $15,000 a year, and that you appreciate the fact that time is money, we inclose check for 4 cents in payment of two minutes of your time at that rate, to be employed in carefully reading a brief and honest statement of the novel, applause-winning features in our new muscial farce"
Such letters were sent to many wealthy New Yorkers, but it is said that Mr. Sage was about the only one who cashed the check. The sender had, however, no idea of his actual income, or the check would have had to be enormously larger. Mr. Sage's income is probably somewhere between $5,000,000 and $10,000,000 a year, and according to the same calculations, two minutes of it would be worth between $25 and $30. I mean that Mr. Sage's income probably amounts to at least $12 a minute, every hour of every day and every night year in and year out. At any rate, Mr. Sage endorsed the check, and it went with others of many times its value to the deposit clerk of the bank. Yet another reason I should not feel weird about getting excited by little $1 survey checks that arrive in my mailbox! |
| posted by Boston Gal @ 12:13 PM *
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| 6 Comments: |
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That's a fun story. How did you find it? (I'm a research nut, myself.)
Thanks!
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I came across your blog because I have a Google search set up for 1905 Boston, and this tripped it.
I recently started a blog on 1905 Boston, as part of research for a future book.
But what really surprised me was that having spent almost 20 years in the direct marketing industry, I had no idea that direct marketing with incentives was being done as early as 1905. Amazing!
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I get a 7 or 9 cent check every quarter for being a 1-share shareholder of Wendy's. I find it amusing they waste more money sending me this check than it's actually worth. I'd much rather them just reinvest it (but that's not an option).
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This fits with some of the lore about Russell Sage that was passed during campus tours at Rensselaer Polytechnic Institute. While there are several buildings and even an all female college in downtown Troy, NY which bear his name, but he himself was not a philanthropist and not necessarily a proponent of higher education. These were the result of his widow and may have been done to spite him (or his memory).
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Hi Amanda,
My local library (Boston Public Library) has a large number of periodicals available to members online. You just need a library card to access and an interest in wading through the material :)
Hi SantaFeKate,
I know! I was struck by how clever that theater company was - I wonder if that was the first time this tactic was ever used? The other interesting thing was the reporter doing the calculation of how much per minute Sage was worth - this reminds me of current articles that have disected Bill Gates worth or Michael Jordan, etc.
Hi Mike,
It is a shame they don't allow that reinvestment - you could be a dollaraire by now!
Hi JTC,
The article is quite long and does mention that Sage's wife is active in charity - but that he focuses on his business. But it implies that he gives his wife free rein with his money to give it away as she will. So I don't think he was stingy - the couple just seemed to have defined roles, he made the money and she gave it away.
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Re: survey cheques - hey, it all adds up ;-) I know what you mean though - I've sent away for mail in rebates that have been pretty small. I always do it though (as long as the rebate is larger than the cost of a stamp, lol)
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That's a fun story. How did you find it? (I'm a research nut, myself.)
Thanks!