"Mr. Kemble is the person, of all others, who must naturally be desirous of both situations. He is at the head of his profession, without a rival; he is attached to it, and desirous of elevating its character. He may be assured of proper respect, &c., while I have the theatre; but I do not think he could brook his situation were the property to pass into vulgar and illiberal hands,—an event which he knows contingencies might produce. Laying aside then all affectation of indifference, so common in making bargains, let us set out with acknowledging that it is mutually our interest to agree, if we can. At the same time, let it be avowed, that I must be considered as trying to get as good a price as I can, and Mr. Kemble to buy as cheap as he can. In parting with theatrical property, there is no standard, or measure, to direct the price: the whole question is, what are the probable profits, and what is such a proportion of them worth?
"I bought of Mr. Garrick at the rate of 70,000_l_. for the whole theatre. I bought of Mr. Lacey at the rate of 94,000_l_. ditto. I bought of Dr. Ford at the rate of 86,OOO_l_. ditto. In all these cases there was a perishable patent, and an expiring lease, each having to run, at the different periods of the purchases, from ten to twenty years only.
"All these purchases have undoubtedly answered well; but in the chance of a Third Theatre consisted the risk; and the want of size and accommodation must have produced it, had the theatres continued as they were. But the great and important feature in the present property, and which is never for a moment to be lost sight of, is, that the Monopoly is, morally speaking, established for ever, at least as well as the Monarchy, Constitution, Public Funds, &c.,—as appears by No. 1. being the copy of' The Final Arrangement' signed by the Lord Chamberlain, by authority of His Majesty, the Prince of Wales, the Duke of Bedford, &c.; and the dormant patent of Covent-Garden, that former terror of Drury-Lane, is perpetually annexed to the latter. So that the value of Drury-Lane at present, and in the former sales, is out of all comparison,—independently of the new building, superior size, raised prices, &c., &c. But the incumbrances on the theatre, whose annual charge must be paid before there can be any surplus profit, are much greater than in Mr. Garrick's time, or on the old theatre afterwards. Undoubtedly they are, and very considerably greater; but what is the proportion of the receipts? Mr. Garrick realized and left a fortune, of 140,OOO_l_. (having lived, certainly, at no mean expense,) acquired in —— years, on an average annual receipt of 25,000_l_. (qu. this?) Our receipts cannot be stated at less than 60,000_l_. per ann.; and it is demonstrable that preventing the most palpable frauds and abuses, with even a tolerable system of exertion in the management, must bring it, at the least, to 75,000_l_.; and this estimate does not include the advantages to be derived from the new tavern, passages, Chinese hall, &c.,—an aid to the receipt, respecting the amount of which I am very sanguine. What then, is the probable profit, and what is a quarter of it worth? No. 3. is the amount of three seasons' receipts, the only ones on which an attempt at an average could be justifiable. No. 4. is the future estimate, on a system of exertion and good management. No. 5. the actual annual incumbrauces. No. 6. the nightly expenses. No. 7. the estimated profits. Calculating on which, I demand for a quarter of the property, * * * *, reserving to myself the existing private boxes, but no more to be created, and the fruit-offices and houses not part of the theatre.
"I assume that Mr. Kemble and I agree as to the price, annexing the following conditions to our agreement:—Mr. Kemble shall have his engagement as an actor for any rational time he pleases. Mr. Kemble shall be manager, with a clear salary of 500 guineas per annum, and * * per cent. on the clear profits. Mr. Sheridan engages to procure from Messrs. Hammersleys a loan to Mr. Kemble of ten thousand pounds, part of the purchase-money for four years, for which loan he is content to become collateral security, and also to leave his other securities, now in their hands, in mortgage for the same. And for the payment of the rest of the money, Mr. Sheridan is ready to give Mr. Kemble every facility his circumstances will admit of. It is not to be overlooked, that if a private box is also made over to Mr. Kemble, for the whole term of the theatre lease, its value cannot be stated at less than 3,500_l_. Indeed, it might at any time produce to Mr. Kemble, or his assigns, 300_l_ per annum. Vide No. 8. This is a material deduction from the purchase-money to be paid.
"Supposing all this arrangement made, I conceive Mr. Kemble's income would stand thus:
£ s. d. Salary as an actor, 1050 0 0 In lieu of benefit, 315 0 0 As manager, 525 0 0 Percentage on clear profit, 300 0 0 Dividend on quarter-share, [Footnote: "I put this on the very lowest speculation">[ 2500 0 0 ______________
£4690 0 0 ______________
I need not say how soon this would clear the whole of the purchase. With regard to the title, &c. Mr. Crews and Mr. Pigott are to decide. As to debts, the share must be made over to Mr. Kemble free from a claim even; and for this purpose all demands shall be called in, by public advertisement, to be sent to Mr. Kemble's own solicitor. In short, Mr. Crews shall be satisfied that there does not exist an unsatisfied demand on the theatre, or a possibility of Mr. Kemble being involved in the risk of a shilling. Mr. Hammersley, or such person as Mr. Kemble and Mr. Sheridan shall agree on, to be Treasurer, and receive and account for the whole receipts, pay the charges, trusts, &c.; and, at the close of the season, the surplus profits to the proprietors. A clause in case of death, or sale, to give the refusal to each other."
The following letter from Sheridan to Kemble in answer, as it appears, to some complaint or remonstrance from the latter, in his capacity of Manager, is too curiously characteristic of the writer to be omitted:—