Chapter 41 Mortgages
“Where is the money coming from to buy the company Lori?” asked Arthur.
“My Dad and my uncles will get mortgages on their houses and they are going to lend it to me.”
“Have their mortgages been approved?”
“No. Not yet. All this has been so sudden. They only decided to do it Tuesday night.”
“Do they already have mortgages?”
“My Dad doesn’t. I don’t know about the others.”
“Then I don’t think you should sign the contract until you know they can get the money,” Arthur told Ken and Bob. “You could be making a big mistake if you do that.”
“Oh, no. This is terrible,” cried Lori. “What can we do?”
“First, ask your Dad and your uncles to find out if they can get mortgages. Tell me, what is each one hoping to get?”
“My uncles and my Dad each said they’d ask for seventy five thousand pounds when we talked about shares in the company. My Dad said he’d ask for more if he could get it.”
“Do you think each of their houses are worth a hundred thousand pounds or more?”
“I suppose so but I don’t know. They’re all doing rather well and have big houses in nice districts.”
“Well you may be all right. Provided they don’t already have big mortgages on their houses.”
“I don’t think they could have otherwise they wouldn’t have offered to loan that amount of money.”
“Why did they decide to offer so much money to you Lori?”
“Well,” and she looked at Bob and Ken, “I told them how much money the company was making each month. I had to do that to make them interested. They were eager to lend us, Craig and myself, the money after I told them that. We told them for seventy five thousand we’d give them five percent of the company. They all said they’d try and get more money for me if they could own more of the company but I said we won’t sell more than twenty percent of it to anyone unless we have to. That’s right, isn’t it Craig?”
“I hope we don’t ever sell more than twenty percent,” said Craig, “but we might have to if sales drop badly.”
“Then what I suggest is that they all go to their banks and apply for a mortgage,” said Arthur. “Once you know how much you can get from everybody discuss it with Ken and Bob. If they think you have enough money then you can sign the contract.”
“That’ll take a week,” said Bob, “at least that’s how long it took for my bank to approve my mortgage. Well, I guess that’s what we should do. We’ll call and let you know what’s happening Arthur.”
They didn’t have much to say to each other on the way back to Small End. Each was busy thinking what they’d do if the sale didn’t materialise. They stopped at the workshop to find out how many sets Dave wanted. Bob pressed the answering machine button and they all heard Dave’s voice say, “Hello. I hope you’re all right. This is my second call. Can you deliver 1,500 farms, 1,500 villages and 500 trains today? But they must be here before one o’clock otherwise you can bring them in next week. Phone me and let me know what’s happening.”
Bob phoned and told Dave he was sorry they weren’t there to take his call and that he’d get the sets there on time. He didn’t say what they had been doing. Everyone helped him load the van and before he left Lori showed him another cheque.
“It’s for £18,750. I’ll put it in the safe with the others.”
“Okay, I’ll take them to the bank tomorrow. I hope your Dad and uncles can get their mortgages.”
“I can put the cheques in the bank Bob,” said Ken, “I’m driving Lori and Craig home.”
“Okay, thanks.”
“I’ll take the overalls as well. It’s our turn to wash them.”
“Thanks. See you Monday then. ‘Bye everyone.”
The weekend was a miserable one as far as Bob was concerned. It drizzled both days and the forecast for the next week was more rain. The thought that they hadn’t sold the company depressed him. On Saturday he did his house work, trudged down to the grocery and shopped. He fell asleep after lunch and almost decided not to go to the Crown for supper but guessed that talking to Joe and his friends might cheer him somewhat, not that he was going to say anything about the sale of the company. He wouldn’t say anything to anybody until the contract had been signed. Too many people already knew about it and he hoped the employees didn’t spread the word. He had a bath and put on a thick sweater as it was cold as well as rainy.
The rain and cold kept many people away from the Crown. The only village news was that there would not be a show this Christmas.
“No one seems to have the energy to give one. We don’t have any plays or skits, and the schools want to do their own thing this year,” explained Jane, “And you, Jack, and most of the other helpers are so busy we’ll find it hard to get enough people to make sets. So we’ve decided not to have a show this Christmas but we’ll have an extra big Spring show. We’re trying to get a fun fair to come at the same time. Mr. Dunfield said we could put it in the field on the opposite side of the road from the Centre.”
“So there won’t be any tourist buses and my sales will be down,” said Rose. “That’s not good news.”
“Ne’r mind,” Jack said. “We’ll be okay nex’ year wiv all t’new people.”
“There’ll still be Christmas-Light’s tours. They’ll probably have supper at the Crown and some might call at the shop,” said Jane.
Bob thought it would be a very noisy time for him in his house if they had a fun fair and if he was still living there because they couldn’t sell the company but said nothing.
“Is anyone going to the dance with us?” asked Jane.
“Not me,” Bob said, “I don’t feel like it tonight.”
“We’re going,” said Rose. “Come on Jack, finish your beer, it’s almost eight.”
Sunday afternoon he walked. His mackintosh, hat and an umbrella kept him mostly dry. He spent much of the time thinking about what he would say to the kids about Christmas but couldn’t think of a comfortable way to say that he’d rather be with Maria than with them.
He called Regina first and asked about how she and everyone else were.
“We’re all fine Dad. How about you? You don’t sound too cheerful.”
“It’s the rain, I guess, Regina,” and he bulldozed right into what he most wanted to talk about. “I’ve something to ask you. Do you mind if I don’t come to stay over Christmas?”
“You don’t want to visit us? Why ever not Dad?”
“I want to see all of you but a friend has asked me if I’d like to go to Paris between Christmas and the New Year. I’d like to say yes. Would you mind if I do?”
“A friend? What friend? And go to Paris? This is very unusual Dad. Are you sure you’re all right?”
“Yes. Regina. I’m okay. My friend is Maria. We’ve been together several times over the last few months. She lives in Lagos, Portugal. She’s a tourist agent. I met her there when I had my holiday with Joe and Jane in February.”
“She’s your girl friend?”
“Lady friend. Yes, Regina. She is. And I want to be with her as often as I can. I hope you don’t mind.”
“No Dad, of course I don’t mind. I’ve told Sam you should find someone nice several times. No, I’m glad. Mum would have wanted this for you. No, no, you go. Well, this is news. Have you told Sam yet?”
“No. I’ll phone him next. So you don’t mind if I’m not with you then? I can visit before or after Christmas, whenever you like.”
“Oh we’ll set that up nearer the time Dad. You know, I’ll have to send you the brochures we collected when we were in Paris, but if Maria is a tourist agent then she probably doesn’t need anything like that.”
“You can send them to me; I’d like to look at them. Well, thanks, Regina. I’ll phone Sam now and tell him about it. Will he mind if I tell him I’ve decided to go without talking to him about it first?”
“No he won?
??t. Especially when you tell him you’re going to be with your lady friend. And tell him to call me when you’ve finished. We’ll have to plan a celebration!”
“No, don’t do anything like that. But I’d like you both to meet her. I’ll bring her to you when she’s in next in England. ‘Bye then Regina.”
“‘Bye Dad. Love you.”
“I love you too.”
Calling Sam was easy after that.
“That’s good news Dad, about Maria, I mean. Yes, you can come any time. It’s good to vary our routines I think.”
“Thanks Sam. Well we’ll talk next month. Regina wants you to call her when we’ve finished talking. She’s talking about a celebration. Don’t let her do that!”
“All right Dad. ‘Bye then.”
“‘Bye Sam. Love you.”
“Love you too Dad.”
He wrote to Maria and told her to book the room. ‘Regina and Sam think it’s nice that I have a lady friend and they want to meet you. I’ve said I’d take you to see them the next time you’re in England. I hope you don’t mind me saying that. All my love, Bob.’ He didn’t mention the possible sale of the company, there wasn’t much he could say until the money problem was clarified.
Lori asked Ken and Bob to stay in the office as everyone moved to the workshop Monday morning and told them that only one of her uncles had a mortgage.
“He owes about ten thousand pounds on it. But he has a big house, so it must be worth quite a bit. I’m sure he’ll be able to increase his mortgage and get enough money.”
“Has he been to the bank yet?”
“Yes, they all have. They should know if they can have the mortgage this week or next, at the latest.”
When Lori left to check how much wood they had in stock Bob said, “You know Ken, I won’t be able to buy your house if Lori doesn’t get the money to buy the company. Do you want to list it with an estate agent?”
“No. Not yet. I’ll give Lori a week. If she can’t get the money I’ll have to list. You know, you could use the money we’ll make from our sales to buy the house. You can give me whatever you like and I’ll take a mortgage for the rest.”
“I couldn’t do that Ken. I’d be worrying all the time about not having enough money.”
Lori returned, put her notepad on the desk and opened the mail.
“There’s another cheque from We-Have-It. £15,450.
“What was the date of that sale Lori?” asked Ken.
“August 2nd.”
“So that’s the first cheque from last month’s sales. What did we get from them in July?”
“Umm, just a moment.” She picked up the accounts book and read “£63,262.50. And from our own sales to retailers we got £27,950. Total is £91,212.50. Our expenses were £23,362.67. Net profit is £67,849.83. It’s these figures that made me interested in buying the company and excited my Dad and uncles.”
“Yes, we guessed that. How about all our sales for August. What will they add up to?”
‘I know that, Ken. The net profit’s £140,527.65. All of that should arrive before the end of October.”
“See what I mean Bob? You can buy my house even if Lori can’t come up with the money to buy the company. You’d have well over £100,000 by November 1st. And you’ll have enough from the September and October sales to pay the rest of the money before Christmas. In the spring, or before, you could sell your house. If the Community Centre is going to hire a caretaker he’s certainly going to be looking for a house and yours is right there.”
“Yes, I guess you’re right. Then I’ll try to stop worrying about everything and I’ll buy your place,” and Bob stood up, crossed the floor to Ken’s desk and shook his hands. Lori smiled at Bob. “You’re buying a lovely house. One day we’ll buy a house like that I hope.”
The rest of the week was uneventful. Lori added up the September expenses on Friday and told them they amounted to £20,553.96. “Our September income was £97,750 so our net is £77,196.04.”
“That’s just about half of our August net,” said Bob.
“We knew it would be like that Bob,” Ken said. “Does it worry you Lori?”
“No. I know it varies a lot during the year. That’s one of the reasons we want to make and sell other items. The gross is easily enough to pay our debts, that’s why I don’t worry.”
“It’ll increase as we get closer to Christmas,” said Ken.
“Yes, I know.”
Lori was very cheerful when she came in on Friday morning, exclaiming that two of her uncles had now been pre-approved for mortgages.
“They’re not going to take them until they know if my Dad and Uncle Fred can get a mortgage.”
“That’s great news Lori!” said Bob.
“They’ll likely find out early next week the banks said.”
“I’ll keep my fingers crossed,” said Bob.
“So will I,” she replied.
Dave called shortly afterwards and asked for 1,000 farms, 1,000 villages and 400 trains. The van was packed and Bob delivered them, again not calling in to see him; he feared the conversation would move to discuss Wooden Toys and he didn’t want to discuss its future until everything was settled. Ken told him that another cheque had arrived when he returned.
“I’ll deposit all the cheques tomorrow and deposit my £15,000 cheque as well.”
“Okay. What’s our inventory now?”
“About 6,800 farms, 6,000 villages and 2,800 trains.”
“You know, with that number and the amount we’ll build by Christmas we could close the factory for two weeks and have nothing to worry about. If Lori and Craig don’t buy it I think that’s what I’ll do.”
“Yes. It’d be safe enough. Unless there’s lots of demand before then.”
Maria’s letter arrived that day and included a small brochure on Paris. ‘I thought you might like to look at this. I’ve circled a few places I’d like to visit. Could you do the same so we can plan our days. And YES, the hotel has been booked. From December 22nd to Dec 29th. do you want to arrange your flight or should I do it? Tons of love, Maria.’ Bob decided he would make his own arrangements. It was time he learned how to do some of these things himself. He would tell Maria that and ask her what time she was arriving and at what airport. Perhaps they could meet there.