5. Nay, to sum up all, one partner may commit acts of bankruptcy without the knowledge of the other, and thereby subject the united stock, and both or all the partners, to the danger of a commission, when they may themselves know nothing of it till the blow is given, and given so as to be too late to be retrieved.
All these, and many more, being the ill consequences and dangers of partnership in trade, I cannot but seriously warn the honest industrious tradesman, if possible, to stand upon his own legs, and go on upon his own bottom; to pursue his business diligently, but cautiously, and what we call fair and softly; not eagerly pushing to drive a vast trade, and enjoy but half of it, rather carry on a middling business, and let it be his own.
There may be cases, indeed, which may have their exceptions to this general head of advice; partnerships may sometimes prove successful, and in some particular business they are more necessary than in others, and in some they tell us that they are absolutely necessary, though the last I can by no means grant; but be that as it will, there are so many cases more in number, and of great consequence too, which miscarry by the several perplexed circumstances, differing tempers, and open knavery of partners, that I cannot but give it as a friendly advice to all tradesmen—if possible, to avoid partnerships of all kinds.
But if the circumstances of trade require partnerships, and the risk must be run, I would recommend to the tradesman not to enter into partnerships, but under the following circumstances:—
1. Not to take in any partner who should be allowed to carry on any separate business, in which the partnership is not concerned. Depend upon it, whatever other business your partner carries on, you run the risk of it as much as you do of your own; and you run the risk with this particular circumstance too, that you have the hazard without the profit or success: that is, without a share in the profit or success, which is very unequal and unfair. I know cunning men will tell you, that there may be provision made so effectually in the articles of partnership, that the stock in partnership should be concerned in no other interest or engagements but its own; but let such cunning gentlemen tell me, if the partner meets with a disappointment in his other undertakings, which wounds him so deep as to break him, will it not affect the partnership thus far? 1. That it may cause his stock to be drawn hastily out, and perhaps violently too. 2. That it touches and taints the credit of the partner to be concerned with such a man; and though a man's bottom may support him, if it be very good, yet it is a blow to him, touches his credit, and makes the world stand a little at a stay about him, if it be no more, for a while, till they see that he shows himself upon the Exchange, or at his shop-door again, in spite of all the apprehensions and doubts that have been handed about concerning him. Either of these are so essential to the tradesman, whose partner thus sinks by his own private breaches, in which the parnership is not concerned, that it is worth while to caution the tradesman against venturing. And I must add, too, that many a tradesman has fallen under the disaster by the partner's affairs thus affecting him, though the immediate losses which the partner had suffered have not been charged upon him; and yet I believe it is not so easy to avoid being fallen upon for those debts also.
It is certain, as I formerly noted, rumour will break a tradesman almost at any time. It matters not, at first, whether the rumour be true or false. What rumour can sit closer to a man in business—his own personal misfortunes excepted—than such as this-that his partner is broke? That his partner has met with a loss, suppose an insurance, suppose a fall of stocks, suppose a bubble or a cheat, or we know not what, the partner is sunk, no man knows whether the partnership be concerned in it or no; and while it is not known, every man will suppose it, for mankind always think the worst of every thing.
What can be a closer stroke at the poor tradesman? He knows not what his partner has done; he has reason to fear the worst; he even knows not himself, for a while, whether he can steer clear of the rocks or no; but soon recovers, knows his own circumstances, and struggles hard with the world, pays out his partner's stock, and gets happily over it. And it is well he does so, for that he is at the brink of ruin must be granted; and where one stands and keeps up his reputation and his business, there are twenty would be undone in the same circumstance.
Who, then, would run the venture of a partner, if it were possible to avoid it? And who, if they must have a partner, would have one that was concerned in separate business, in which the partnership was not engaged?
2. If you must have a partner, always choose to have the partner rather under than over you; by this I mean, take him in for a fifth, a fourth, or at most a third, never for a half. There are many reasons to be given for this, besides that of having the greater share of profits, for that I do not give as a reason here at all; but the principal reasons are these:—First, in case of any disaster in any of the particular supposed accidents which I have mentioned, and that you should be obliged to pay out your partner's stock, it will not be so heavy, or be so much a blow to you: and, secondly, you preserve to yourself the governing influence in your own business; you cannot be overruled, overawed, or dogmatically told, it shall, or shall not, be thus, or thus. He that takes in a partner for a third, has a partner servant; he that takes him in for a half, has a partner master—that is to say, a director, or preceptor: let your partner have always a lesser interest in the business than yourself, and be rather less acquainted with the business than yourself, at least not better. You should rather have a partner to be instructed, than a partner to instruct you; for he that teaches you, will always taunt you.
3. If you must have a partner, let him always be your junior, rather than your senior; by this I mean, your junior in business, whether he is so in years or not. There are many reasons why the tradesman should choose this, and particularly the same as the other of taking him in for a junior or inferior part of the trade—that is to say, to maintain the superiority of the business in his own hands; and this I mention, not at all upon account of the pride or vanity of the superiority, for that is a trifle compared to the rest; but that he may have the more authority to inspect the conduct of his partner, in which he is so much and so essentially concerned; and to inquire whether he is doing any thing, or taking any measures, dangerous or prejudicial to the stock, or to the credit of the partnership, that so if he finds any thing, he may restrain him, and prevent in time the mischief which would otherwise be inevitable to them both.