Entrepreneurs of Shimla
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Chapter 13: New Beginning after the Fire in 1876
Chapter 14: Tumultuous 1900s
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Upper Bazaar Operation of Sud/Sood Partners Relocates
The original partners by 1876 were old men. They knew that they wouldn't be around for long. Hence they began handing over day-to-day operations to their next generations. The latter began running their independent businesses with the senior partners always keeping a watch on the operations. The original partnership after the fire had undergone a change. Their financial connection at the top was also under strain. The previous set up was unique that lasted 45 years, now it was time to split up the assets and go independent. Even the forgoing was a formality. Twenty years earlier they had taken precautions to take three additional leases at Edward Gunj in order that each partner had a separate business. Their understanding of not competing with each other lasted their lifetime and beyond. Now the newer generation would do things their own way.
The fire had destroyed Upper Mall business location, which ran the retail operations for the natives and a Master Grocer operation (Modi) for the British. Lala Nidha Mall Puran Mall, which headed the master grocer operations, relocated to the Lower Bazaar and kept one of the original leases of commission agency at Edward Gunj. The new location, which Puran Mall picked, was close to Edward Gunj. A short dirt pathway away, which later became a flight of stairs, ran between the two spots. It took a while to build the lower Bazaar location but when it was completed, it became the headquarters of Lala Puran Mall's larger operations.
Other partners did not have to relocate to Lower Bazaar as they already had their leases at the Edward Gunj. It is only the more ambitious Puran Mall, who wished to have the Lower Bazaar location too.
How the Lower Bazaar is laid out
The "Lower Bazaar" is the same length of road as "The Mall" just 500 feet above it at the highest tier, but there are marked differences. The Mall promenade was built with shops & businesses facing north, hence denying it the Sun in the daytime. The Lower Bazaar was built facing the Sun; hence sunshine graced it all day. The Mall, denied of Sun, is cool with a hilltop gentle breeze always present had earned itself the nickname of "Thandi Sarhak". The Mall has the English Tudor architecture with a façade of excellence all along. Its aristocratic shopping has a look of London's Oxford Street. Viceroy(s) and other officials shopped here. Its fame is built on quality English products it sold. It is built in such a way that the high officials and their Memsahibs never had to look at the wretched conditions under which the natives lived just couple of hundred feet below on the slopes. The Mall buildings blocked their view. That was one of the the ulterior motive behind building the Mall facing north.
On the other hand, Lower Bazaar was and is for everybody. A person could buy anything from excellent textiles to best of spices and perfumes. It was built along a narrow pathway, post 1876 fire, and was never more than 20 feet wide. Horse drawn Ekkas could ply but not permitted due to a hazard these would create with a large number of people shopping there. All along, it followed the contours of the mountain. About thirty years later it joined up with the Mall Road also running east to west. There are no landmarks on the Lower Bazaar other than a tunnel dug in 1905/6 and number of connecting stairs built in the twentieth century to reach the Mall. When the rail goods service began in 1905 then the Edward Gunj was connected to the railway station to facilitate goods movement. A new bazaar later named as Ram Bazaar (Chor Bazaar) came into existence along the mule path. Its name aside, It is mostly residential district for people working in the Edward Gunj and the Lower Bazaar.
Lala Puran Mall Opens with a Bang At the Lower Bazaar/Edward Gunj
With Lala Puran Mall's Lower Bazaar operation in full swing, it was time for him to sub-divide the operations. Both Edward Gunj operation and Lower bazaar operations were in close proximity. Only one flight of stairs separated the two. When Lala picked this spot, after the fire, he was mindful that both his locations be close to each other. The Lower Bazaar operation also solved the lingering living quarters and kitchen problem for his employees. All his employees and partners had living quarters and a common kitchen at the Lower Bazaar location. This kitchen with two cooks, cooked as many as 50 meals a day. Both the cooks came from Kangra; hence Lala and his employees never missed the homely food.
All the cousins and relatives whom he invited to join him in Shimla came with only a bag full of clothes on their back and nothing else. They had left their families behind hence three square meals a day was their first priority. Their families far away in Jaswan/Kangra had high hopes on them except they could not join them, as the family housing did not exist. To set an example, the original four partners did not bring their families to Shimla. They would return back home every year for four months during winter and continue their family life. Lala Puran Mall also did the same. The forgoing was set as a norm for every Sud/Sood who came to Shimla during the nineteenth century and during the early twentieth century.
Lala being a first rate employer would take care of anybody whom he hired. This made them comfortable and they performed their duties better. He made deserving cousins or relatives into partners offering them one "Anna" partnership (6%) in his business. By the time Lala Puran Mall's era ended in 1932 (upon his death) he had six partners, each with one Anna interest in his business. He and his family held the majority, ten Anna's interest together with controlling management of the business..
The division of responsibility of the two operations was simple i.e. Master Grocer operations for the British aristocrats and Indian princes, now building palatial houses in Shimla, was to be conducted from the Lower Bazaar location, but all the business of filling the orders, wholesaling, commission agency, money lending was conducted from the Edward Gunj location. The accountant(s) would work in the morning hours from the Edward Gunj location and later in the day transfer the accounts to the ledgers at the Lower Bazaar location. Their they handled cash and made final ledger entries etc. Lala himself would be present in the morning at the Edward Gunj and would return to the Lower Bazaar later in the day to check all the accounting entries and take stock of the day's business.
Lala Puran Mall's Unique Method of Hiring & Retaining Talent
By 1881 Lala Nidha Mall Puran Mall's enterprise was growing faster than anybody else in the business at that time. With his honesty and straight dealings he had built connections with the British Administration. They preferred to deal with him on most issues relating to the native business practices. Wherever a dishonest practice was noticed, the British would complain to him and he would straighten the matter up. To his relatives, cousins and other Sud/Sood arriving from Jaswan he would help them settle down. If they were short of cash he would lend the same on easy interest payments. This would be much lower, if they borrowed it elsewhere. In this way he had built a huge clientele of Suds/Soods who had borrowed from him. That would include not only natives but also spendthrift British gentry.
At his own locations, he was gentle and firm employer. He dealt with the employees as his brothers. To retain them on a long-term basis, he offered partnership to deserving candidates who got small percentage of the profit as wages. Considering the size of Lala's operations, one Anna share was a great amount of money (in 1899 one Anna shares was worth Rupees 50,000 in 1932 money. In today's term it would be Rupees 4,000,000). Lala and his family were worth ten times more than that, but rewards to the employees made him an enlightened employer of the day[1].
By 1890s, the Lower Bazaar as well as the Mall was undergoing a major transformation. Lord Lytton, ten years earlier had set the ball rolling to widen and improve the Mall. He also had encouraged similar improvements for the Lower Bazaar. That was a cue to the Lala to become a real estate magnate of that era (see later)
Business Expansion (1881-1900)
By 1881, Lala Puran Mall had an iron clad stranglehold on Shimla business activities in the Edward Gunj. Although there were ten other commission agents cum wholesalers, Lala Puran Mall's business was flourishing. He had the direct line to the British, who respected him; also he had made inroads into supply business for the hill states princes. The latter were establishing housing in the fashionable Shimla to be close to the power. Although the Superintendent of Hill States and Shimla Deputy Commissioner supervised them, but they wished to be as close to the Viceroy and Punjab Governor as possible. Lala being a great salesman would get supply contracts for their every need. His clients included Rajas of Jubbal, Koti, Dhami, Keonthal, Bhajji, Khanetti, and Suket etc.
Shimla population did not change very much after 1881, but temporary labour that came to build houses, commercial establishments, hotels, cottages and roads etc. stayed for the duration of the jobs. They purchased their daily needs at the retail oriented Lower Bazaar. The latter was supplied by 10 Commission agents/wholesalers from the Edward Gunj. Much of the forgoing supplies came from the shop of Lala Puran Mall.
In about that time frame Lala embarked upon real estate expansion of his own. Impetus for this came from the Lower Bazaar extension eastwards. This Bazaar had not expanded very much after its creation in 1876. There was an urgent need for expansion and it would happen only if the municipality extended the Lower Bazaar road on both sides. The Municipal Committee unable to resist temptation to collect tax money from natives extended the bazaar on the eastern end, hence building activity to build new shop cum flats began. The existing rules of two floor buildings were not to be breached, but plots along the road were sold to recover expenses Municipal Committee had incurred. During this expansion there was enough space to build 100 more shops. Lala Puran in 1880s and 1890s was the biggest show in town and he bought many of these plots and began building shops and residences. Others in the Edward Gunj as well as in Lower Bazaar also began building to expand their real estate holdings. A huge amount of money was required to undertake this construction work. Lala had some internal resources of his own to fund it; also he had to borrow some money from outside sources to finance this huge activity. Since his credit rating was high hence he had no problem borrowing from the British banks as well as from the Princes/Rajahs with whom he had financial dealings.
Others, who were building shops and residences, needed money to finish them. They did not have the credit rating good enough to borrow in the open market hence they would approach him for money. In order to help, he would himself borrow from his sources and lend it to them. In the process he would make a buck or two. So great was his popularity as a moneylender that they began to refer him as Jagat Seth - Master Banker. People would approach him when they needed money and he used his instincts to evaluate the clients and then offer them terms. His terms were easy; hence he was a preferred banker.
By early 1890s, the Lower Bazaar expansion had reached its eastern edge. All the new shops were retail oriented. Housing above the shops was rented out to improve the cash flow. Lala either built much of the new construction personally or he held a mortgage on others because the owners had borrowed from him. He himself was under heavy debt as he had borrowed to lend to them. His own debt aside, It was a win-win situation for him. But if by chance he could not collect on his debt then insolvency was definite. But his personal prestige was such that nobody would refuse to pay back to him. Also most borrowers had offered something as collateral. Hence in his lifetime there was nothing to fear. This situation dramatically changed when he passed away in 1932 and his quarrelsome successors took control.
In addition to being a grain wholesaler, commission agent, master grocer, moneylender, he was also a real estate magnate. His reputation of straight dealings had made him popular with the British businessmen too. They came to him for money when they were building to extend The Mall east as well as west. Hence, he had a foothold on the Mall also. Although the Mall was exclusive domain of the British, Lala Puran Mall was the first person to hold mortgages on property built there.
Lala's nephews join in
Among the Garlie/Pragpur crowd in Shimla, Sud/Sood were the largest grouping (about 4-500 of them by 1890s). For them family came first. The family missed them when they were away for 8-9 months of a year. First cousins, their own children always came first, when it came to getting them started in life. It was them who were apprenticed first in the art of conducting business. By late 1880s and early 1890s that Lala Puran Mall had to deal with this issue of priority. His own son Kaudoo, his nephews Biroo & Sarafa, growing up in Haroli were set to join him in next few years. They were in the same age group with Biroo & Sarafa were a few years senior. Within next few years they would arrive in Shimla and join the family business as equal partners. They all were Nidha Mall's (now deceased) grandchildren. They had equal share in the business, hence were to be given preferential treatment. Until 1900, only Biroo had joined him in Shimla. A few years later Sarafa and Kaudoo would also join the family business.
By then Buta[2], who had arrived in Shimla in 1873 and joined Lala Puran Mall at Gunj, had passed away. His death occurred under mysterious circumstances at his home village of Pirsaluhi. Blackmail between brothers was involved. The job of chief accountant at Lala's enterprise was open. Although, Buta's first son Kurha joined the business, yet he joined as an apprentice in 1895. As an honest man Lala would not cheat anybody out of his share, hence immediately after Buta's demise he visited Pirsaluhi village and brought his 18 years old son with him to take Buta's place in business.
With his expanding business empire Lala was in need of family talent to take over the job of chief accountant as well as head auctioneers. In his mind he had reserved those jobs for his son and his nephews. He was properly apprenticing them for the jobs. Biroo & Sarafa took over the challenge and became well versed in auctioning whatever arrived in the Gunj. Biroo would also act as a purchaser and would visit suppliers in Mandis in Lahore, Ambala, Abdullahpur/Jagadhari, Wazirabad, and Gadugaad etc. At Abdullahpur he ran into an operating enterprise of Hakam Mall and Tani Mall, run by Gopi Mall and his son Jodha Mall Sud Kuthiala selling timber extracted from the forests along the Jamuna River. There he struck friends with Jodha. The latter was his distant cousin also. They had known each other since Haroli days, although Biroo was a few years senior. During his many visits Jodha & Biroo became friends. It was during his trip that new idea of business expansion came into Biroo's mind. "What if their enterprise from Shimla supplies grain and other commodities to the labour working to extract timber"? Lala Puran Mall was already aware of this business opportunity but found it impractical. But he would not miss this opportunity if timber extraction took off in Shimla hills. He already had a contract for the supplies with Rajah of Jubbal, who was extracting his own timber. He would offer the same deal to other Rajahs if they began extracting timber in a big way. Lala complimented Biroo for spotting a business opportunity.
Kaudoo in five years after arrival from Haroli, around 1900, had learnt all there was to learn about business techniques and accounting practices etc. He was also in-charge of money lending business and managing Lala's vast real estate holdings. Lala personally dealt with master grocer business. This was the most sensitive part of his business activity. He was leaving no room for complaints either from the British or from the princes.
In this formative time frame of late 1890s and absence of trained family talent to take over dead Buta's responsibilities, Lala introduced four more of his employees, all of them his cousins, into one Anna partnership. This was his way of rewarding good work done and opportunity to add more responsibilities to their plate. Overnight new partners acquired more authority and responsibility. These changes had an important impact on the efficiency of the operation. Also Lala had thought it thru that his young son and nephews would take over greater responsibilities in next 5 years but in the intervening period, Lala's interest had to be well protected, hence offering minor partnership was his way of protecting his interests[3].
Circumstances are not clear, but the Master Ledger (Baahi), with detailed partnership holding entries, in and around 1895, disappeared from the Lower Bazaar location. All efforts to locate it failed. Finally it was decided that anybody found in possession of it would be discharged from the business and would be debarred from conducting any business in Shimla Gunj. A new Ledger[4] was started, this time it was not to be stored at their business locations but kept in a bank locker. A second true copy was given to Lala's personal lawyer Sir I. Pitman.
Others Great Men born in this Era (1875-1920s)
As Lala Puran Mall and other Suds/Soods were prospering in Shimla, there were others making their presence felt elsewhere. One such Hindu undivided family of Hakam Mall Tani Mall was not far behind. Five members of this family came to Shimla during the Lord Lawrence's Viceroy era. They initially conducted timber extraction business in the Shimla Hills princely states and later in United Provinces and Jammu & Kashmir. They were instrumental in providing timber needed for housing in Shimla and timber for railway sleepers when railway line was built initially from Ambala to Kalka and from Kalka to Shimla. The family diversified into textiles also. They had their presence in the Upper Bazaar when in 1875, until the Upper Bazaar burnt down. The textile business was relocated to Lower Bazaar, exactly at the spot where the Lower Bazaar end of the tunnel opens. In 1900 they were paid compensation and relocated to where they are today as a major textile retail business of M/S Hakam Mall Tani Mall.
Lala Hakam Mall Sud's son Lala Gajjan Mall and his partner Lala Gopi Mall Sud's son Lala Jodha Mall at the time of construction of Shimla-Kalka railway undertook timber extraction for the purposes of providing sleepers for this narrow gauge railway. Thousands and thousands of cubic feet of timber was extracted in the Shimla hills to make the railway reach Shimla. The British put all environmental consideration on hold and let the extraction proceed.
Jodha Mall was born in Haroli (new home of some of the Kuthiala Sud/Sood clan) in 1883. He had an older brother Valbhadra Mall. They both were industrious boys with a great in-sight, love for work, integrity and sharp business acumen. They took over from their parents the timber business and pooled their resources with their cousin Gajjan Mall and began to transform their timber extraction business into a major enterprise of Punjab, Jammu & Kashmir and United Provinces. In 1902, railway sleeper supply business gave them their major break. At that time extracting timber in Shimla hills was easy, it was the transportation, which was more difficult. In comparison timber extracted in United Provinces and Kashmir was easier as timber was floated in the rivers with greater ease. Since timber was urgently needed, they had no trouble finding forests to lease and extract timber along the Jamuna River. Watching success elsewhere, even, the princely states in the Shimla hills also volunteered. First was the State of Jubbal, from where timber was floated along the Pabbar River and then to Jamuna River. Later other states along the Sutlej River volunteered. By early 1920s, the empire of M/S Hakam Mall Tani Mall rivalled that of Lala Puran Mall in Shimla. The former enterprise had a multi-state presence; hence they had greater influence with the British Administration.
By nineteen twenties, Jodha Mall's enterprises and Lala Puran Mall's enterprises were rivals. They had business dealings with each other but also there was mutual mistrust.
Sud/Sood Major Business Houses of 1875-1920s
The above two were the business stars of late nineteenth and early twentieth century, although a multitude of other Sud/Sood businesses existed. An exhaustive list exists on Shimla Sood Sabha website. Important other businesses houses, which predate to nineteenth century, a partial list is reproduced below:
The above list (who were in business at the turn of twentieth century) is not an exhaustive list, as some businesses closed and started elsewhere, hence are difficult to trace. Each of them in a big way contributed to the Sud/Sood Diaspora in Shimla.
Other Sud Personalities (1875-1920s)
Some of the great Sud/Sood personalities of nineteenth century and early twentieth century Shimla other than Lala Puran Mall & Jodh Mall were: Mr. Justice Sir Jai Lal; Rai Bahadur Mohan Lal; Rai Sahib Thakur Dass & Ram Krishan etc.
A limiting factor for the people of Shimla to get educated and work at par with the British were the schools. That much heralded Maccaulay Minute of 1834 had done nothing for Shimla. There were several schools to educate the British boys and girls in Shimla and surrounding area, but none would admit Indian children. That Shimla Municipality's segregation policies of keeping the natives bottled up on the slopes in and around Lower Bazaar had yet given rise to a new policy of dividing the Shimla into Station Ward and Bazaar Ward. Station ward had all the schools, the Bazaar Ward had only one, that too a primary Municipal Board school. Permission to send children to schools in Station Ward was rarely granted, although there were only a few exceptions.
It was Jai Lal and Mohan Lal (see later) who faced the problem of schooling when they were of school age in Shimla in 1890s. They overcame these problems by starting in that Municipal Board School and then relocating to bigger cities to complete their education.
Sud, Sarkar & Shimla
In 1890s there were about six thousand clerks and other lower end officials who were making journey every year in April to Shimla. They would stay for eight months in a semi temporary housing and make the same journey back in November to Calcutta/Agra. By some semi official estimates they carried as much as fifteen thousand maunds of paper and office material with them. All of it came by rail to Ambala and was carried up the hills to Shimla on mules, tongas, Ekkas and backs of the people, until Lord Curzon in 1905 flagged the first train to Shimla. Their housing had always been the various tiers, which rose from the Lower Bazaar to the Middle Bazaar, until that became insufficient. Then they were housed in Kainthu and other surrounding villages. This influx of people and previously not so clean areas of the Lower Bazaar became even filthier. Shimla Municipality was seized of this problem and made several efforts to sanitize it and clean it up. These half-hearted efforts were bearing no fruit; hence they were left with one choice; that is to isolate this pocket of dirt and filth from their own upper class living. They refused to connect the Lower Bazaar to the Mall also they refused to grant permission to extend the Middle Bazaar to run parallel to the Lower Bazaar all the way. Never the less the arrival of additional six thousand people in April was good news to the wholesalers, retailer and commission agents at the Edward Gunj.
Shimla population of 13,960 in 1901[5] (except temporary arrivals) had not varied much over the previous ten years. Addition in April every year of the government clerks together with temporary construction workers had added to the demand of grain and other foodstuff. To this, the added demand from the Shimla hill states had strained the already tight food supply. But all the forgoing was good news to the grain dealers and wholesalers. It was adding more and more money to their pockets. This improved prosperity and wealth had reached significant amount and was being noticed by the British gentry, although they wished to stay aloof. The Edward Gunj was overdue for expansion, it had to be enlarged and improved to add more grain dealers to conduct more business. For the last few years, some of the dealers were coming from the plains, of Punjab but it was still Sud/Sood business bazaar.
There were ten Sud/Soods who could be counted wealthy with their wealth exceeding Rupees ten lakhs in 1901. Two of them exceeded quadruple that amount. With that kind of money and influence, which comes with it, they were in the good books of the British. The latter in their dealings with the natives in Shimla, preferred to deal with rajahs, thakurs and other landowners representing the ruling class, but now they had a rising business community of Shimla to deal with. With the emergence of Sud/Sood personalities they began dealing with this significant but previously ignored community. At times their influence was at par with the rajahs and thakurs. In not too distant future Suds/Soods would completely replace the banks as source of finance for the British as well as the natives, hence Suds, Sarkar and Shimla became synonyms.
There was one area, which could be counted under represented in the native community in 1900 that included the educated class of lawyers, engineers and doctors. There were none at that time. The very first step to become professional was to go to schools, at par with the British. No such facility existed. There was an exception that a Municipal Board school "Mayfield" began to operate in 1890s to the primary level. The origin of this school in the Bazaar Ward is a bit of a mystery. As per word of mouth of the people, it was opened to let the children of the native clerks and other specialists who worked on the railway construction to continue education. Sir Jai Lala and R.B. Mohan Lal started from this primary school. They later went to Lahore and other places to finish high school and their law degrees.
Queen Victoria Dead 1901
At the age 78 in 1901 Queen Victoria died. She had declared herself as The Queen of India in 1876. Most natives in Shimla had wondered who she was. She was a "Firangi Queen" who had crowned herself as their monarch without setting foot on their soil. Natives in Shimla always wondered about her bust on Silver Rupee they possessed. Official mourning made them realize her importance. Then the stories began to circulate about her grabbing the Koh-I-Noor diamond from the very young Sikh Maharaja Dalip Singh, it made them wonder about her sincerity to their country.
Her era in Britain was the golden period for them. The dominions of India had provided her country with money, to indulge in stiff neck ultra conservative behaviour, where anything other than English was beneath their dignity. That character was distinctly visible at all levels in India including civil servants who were arriving in India to rule. Their ladies were the worst. They looked down upon everything native.
Queen Victoria had eight children of which five were daughters. They were married to various royal houses of Europe. That was the root cause of ugly competition within the royal houses. Her grandchildren kept the competition alive which resulted in the first great war of the Europe in 1914-18.
Lord Curzon the most un-likeable person was the Viceroy of that time. He celebrated the accession of King Edward VII to the non-existent throne of India in 1903 with great fan fare. The native rajahs and other British aristocracy joined in.
Lord Curzon, the most Un-likeable Viceroy
Lord Curzon during his six years of virtual dictatorial regime in India from 1899 to 1905 made himself the most un-likeable Viceroy of India. He spent much of his time in Shimla and built himself a Golf Course at Naldera. He appropriated money to extend the Delhi-Lahore rail line to branch off to Shimla. He himself flagged off first train narrow gauge train to Shimla. He is also credited to the passage of Indian Coinage and Paper Currency Act, which brought India to the Gold Standard.
His remaining deeds were much worst - he initiated the Bengal Partition, which resulted in riots in the country, first after 1857. He followed the policy of "Divide & Rule" with vigour. The great famine of Bengal in which 6-10 million people perished happened during his stewardship. He blamed it on failure of Monsoon, although the true cause was, switching land from growing food to growing opium. The latter was sold at high profits to the Chinese. The Boxer Rebellion in China was direct result of excessive cheap opium arriving from India and corrupting the public in China. The Boxer Rebellion was comparable to India's war of Independence in 1857, except that this one the Chinese won and removed the foreigners from Peking.
Lord Curzon had a distrustful mindset and coined the word "The Great Game" against Russian influence reaching Central Asia and Afghanistan. He sent spies to check it out, who dutifully reported what he wished to hear. His game plan of thwarting Russians had support from the successive Prime Ministers in England. They were also indulging in divide and rule in Europe, hence vigorously supported Lord Curzon.
His personal life of a sexual maniac is talked about in books and papers. In Shimla, after his first wife's death, he was gracing many women's bedrooms in the area. Shimla British population had a majority of women, whose husbands were away on duties elsewhere, hence indulging in extra-marital affairs was not un-common. Other women who had come from England looking for a husband were also easy prey.
When he relinquished his job, there was an all-round sigh of relief. Six years later Bengal Partition was cancelled.
Prelude to WW1 and Business in Shimla
Viceroys, who followed Lord Curzon were a bit mallow, but never the less they were also adherent to the idea of "Divide & Rule". Lord Minto (1905 -1910) proclaimed laws to curb political unrest. He arrested leaders of that era and jailed them in Burma. Shimla was unaffected by the political developments elsewhere, although a civil servant named A O Hume founded a political party in Shimla and gave it a name - Indian National Congress (1884). Lord Minto together with his Secretary of State passed a law known as Minto-Morley Act. That was a step further in "Divide & Rule" in India. It gave birth to communalism in India. The Muslim who had lost power to the British from 1757 to 1857, suddenly got a piece of the power. Forty years later these acts would divide India into two countries.
Lord Minto was the first Viceroy who took full advantage of the newly built railway line to move 6,000 employees from Calcutta to Shimla. In previous years, movement of so many people was always subdued as moving so many people with office bag and baggage together with their personal baggage was tedious on horses, mules and Ekkas. With clerks and other lower end officials, came over a thousand British citizens as supervisors and managers. This latter influx shopped at The Mall for everything except ordered supplies thru their favourite Master Grocer Lala Puran Mall. The Mall, which had been a bit neglected on the eastern & western end suddenly, came to life as influx of the British increased. The western end near the Telegraph office was rebuilt after the second fire, into a ritzy shopping district. It was also connected to the Lower Bazaar. In early 1900s the western part of the Lower Bazaar was also in disuse. It had to wait another 20 years for Arya Samaj building to be built and the construction of the native shopping district followed. Same way the eastern end of the shopping area was built into shops and park. It was also connected to the Mall via a newly built road.
The arrival of rail line boosted business in Shimla at all levels. Now goods could be brought to Shimla with ease. Edward Gunj was front and centre of all this activity relating to food and other everyday essentials. Much of the construction supply business was previously in the hands the British businessmen, but it was being slowly taken over by Sud/Sood businessmen.
The year 1905 marked another monumental change in the fortunes of the Lower Bazaar in Shimla. The British were tired of seeing mule trains going to Sanjauli and onwards, decided to dig a tunnel to re-route the mule trains to the Longwood Loop, away from the fashionable shopping, The Mall. Location selected for this tunnel was no other than where business of Hakam Mall Tani mall (Sud Kuthiala) was flourishing for the last thirty years. They would not relocate until a suitable site in the vicinity was found and adequate compensation paid. Shimla Municipal Committee accepted both these demands and the tunnelling work started. Now the mule train could cross over to Longwood Loop without going to the Mall. But it added to huge traffic congestion to the Lower Bazaar as man and animal began to share the same road.
The tunnel 12X12 foot was built to accommodate a horse rider with ease. As soon as the tunnel work finished water began to seep thru the cracks into the tunnel. Work had to be restarted to brick the tunnel interior but water found its way from thru the cracks again. There was only one solution left to remedy the situation, which was to put corrugated steel cladding to direct water to the sides and to the drain. Since then the corrugated sheets have stayed any water dripping on the passer by. .
A Major Accident in Edward Gunj & Plans were made to refurbish it
Kurha Mall, (author's uncle), who had arrived in Shimla at the behest of Lala Puran Mall in 1897 met an unfortunate end. He was resting in-between the stacks of grain bags piled up high all over the Gunj bazaar, one of the stacks gave way fell on him and killed him. He left behind three daughters and one son. He had a fourteen-year-old brother (author's father Khushi Ram) who was invited again by Lala Puran Mall to take his place. As an honest man Lala Puran Mall would not deny any of the minority partners of their due share. He offered Khushi Ram the same share and same position at Edward Gunj, as Kurha Mall had which was duly accepted. The Junior partners usually helped the head auctioneer or did accounting under the senior accountant's watchful eye or went on money collection in the evenings as directed by the senior partners. These were all envious jobs, for those who did not have them. When Khushi Ram arrived in Shimla, he was well versed in arithmetic and Tankari script, hence within three years he was made assistant to the senior accountant.
The police inquest in the death of Kurha Mall yielded no foul play. It was recorded as an accident of unfortunate kind. Immediately the Municipality was seized of remodelling the Edward Gunj into more modern wholesale market. It took three years to draw up the plans and begin construction. All old structures were demolished and the new structure at the Edward Gunj would be two floor stone and steel construction, able to withstand huge weight on first floor with human activity on the ground floor. There was room for 20 wholesalers and commission agents and a "pucca" area, to conduct auctions was built. Also accesses to it were improved. The western end was connected to the Lower Bazaar thru a better road and permission was given to build housing and shops in front of the Sanatan Dharam Sabha Temple (built 1889) with upper-most floors of this construction reaching the Lower Bazaar. The horse/mule shooing shops were relocated to "Ghorha Hospital" area to the east on the Cart Road.
Although they made no laws to forbid sleeping quarters at the Gunj bazaar, but the businesses were advised not to use this place for residence with security personnel and daily workers excepted. That was the direct result of Kurha Mall's sad demise.
Lala Puran Mall has a Tiff with Shimla Municipality
The new Edward Gunj construction was a sturdy building, built to store everything from food grains to local produce and everything else needed by the people. The central building's architecture included a high ceiling to stack bags, a clock tower, a central square to conduct auctions. The peripheral construction of some retail stores was postponed but was part of the plan. On the western side, an area was left vacant to build a native city hall and adjoining to it area for a school. As mentioned before, the horse/mule service area was relocated elsewhere. The new Edward Gunj had a look of larger "mandis" in the plains. The British had anticipate this Gunj to serve Shimla with a population base of roughly 20,000 souls and to which another 6,000 migrant clerks in next 20 to 30 years.
Once completed, the Shimla Municipal Committee invited all the commission agents to lease and relocate to the new buildings. Lala Puran mall at the prime of his business empire, proposed an alternative. He proposed that instead of Municipality leasing individually shops, they might consider leasing the whole building to him and then he would further sub-lease portions as needed by other wholesalers. The latter were not only his clients in one form or the other also listened to his advice and counsel. It was the Municipality, which declined this proposal. They did not wish to create a monopolistic environment. Lala Puran Mall felt slighted by this rejection and approached higher authorities, who also declined. This matter was dropped and individual leasing began. To this day that arrangement continues.
Delhi Darbar and Delhi becomes India's Capital again in 1911
Lord Hardinge (1910-1911) was the Viceroy of India and he wished to hold a great big celebration to commemorate the coronation of King George V in England. He was to be proclaimed as king of India and suitable celebration was needed. King George V came to Delhi in person. All Indian princes, nobleman and high gentry attended this occasion. Lala Puran Mall also attended the Delhi Darbar as a representative of Shimla business community. Also on this occasion, Delhi became the capital of India, instead of Calcutta. Now it became easier to move 6,000 employees and their bosses to Shimla for the summer. The travel of 1200 miles was cut to 200 miles and it would take two weeks to move instead of six weeks earlier. Shimla Business community rejoiced this development as centre of gravity of the government shifted closer to home and it became easier for the government decision-making bodies to operate between Shimla & Delhi.
Prelude to WW1
By 1911war clouds had started to gather over Europe for one final conflict between Europe and Britain. Now Britain had a new enemy, the Germans. The previous centuries of enmity with France had vanished. Although German, British and Russian kings were Queen Victoria's grandchildren but they were sworn enemies. The underlying reasons being the matter of supremacy over Europe and perpetual British interference in European affairs under one pretext or the other. By then Britain with monies arriving from colonies had grown belligerent and its industrial might was second to none. Technically the more proficient Germans with years of nation building at the hands of Otto Von Bismarck (Chancellor) and Wilhelm Kaiser (King) had made them superior to the British, but they had no colonies to dump their products. The British always stood in the way of the German commercial and technical successes hence war was inevitable. Only a spark was needed. It took three years for a spark to ignite the war clouds and it began in 1914.
The Indians would be worst sufferers, although not directly involved in the war but contributed heavily to the war effort in terms of men and money. Britain denuded India of food, money and young men for a war, which was not theirs. Indian taxpayers paid £147 million (£8 billion Pounds Sterling in today's money) for the war effort and about 800,000 soldiers to fight in Europe and Middle East, of which 80,000 never came back home.
Burden on Indians 6,000 miles away from Europe war theatre was greater than ever documented by the western and west supported Indian press. The Congress President of that Era Surendernath Benarjee said "The war was not worth anything for the Indian people. There was no benefit for them, hence they should stand up and not fight"[6]. All the Indian princes, Muslim League and some section of the Congress supported by the British war effort, but got nothing in return.
Food from India was shipped to Europe, leaving already a country short of food in ruins. Taxes in India (local, provincial & federal) went up 16%, 14% & 10% respectively in 1916, 1917 & 1818. These devastated already a poor country after 75 years of continuous one billion dollars cash transfer to Britain. Price of British imported goods went up by 190%. A country where local manufacturing had been systematically closed could not bear that kind of burden hence independence from Britain movements got their much-needed oxygen for their demands. Just about that time Mahatma Gandhi returned to India from South Africa.
With above important changes happening prices of local products, grain, produce, textile went skyrocketing in Shimla. The enormous burden of food shortages was sorely felt in Shimla hill states, where previously surplus food from the plains had found a ready market. In Shimla proper, the food prices had doubled. Everybody blamed the wholesalers and commission agents, without realizing that India had been dragged into the War for nothing and is being forced to pay the price.
Real estate prices and rents skyrocketed too. Lala Puran Mall on one hand was under huge stress with rising food prices and shortage of everything. He was overjoyed to find his real estate holdings had doubled in value in just four years. He was not complaining nor was his junior partners.
Lala Jodha Mall (before he received the title of Rai Bahadur), the forest products and timber merchant was also doing great. He had made a great name for himself in three states of United Provinces, Himachal Pradesh and Kashmir. He was extracting timber and selling it at a phenomenal profit in the timber markets of Abdullahpur (Yamunanagar), Jalandhar and Jammu. His and his family wealth had begun to rival that of Lala Puran Mall, who had all his holdings in real estate and money lending businesses, besides the commission agency and wholesale business was his bread and butter.
Lala Puran Mall Granted the Title of Rai Sahib
Lala Puran Mall from 1876 till the Delhi Darbar (1911) had played his role as leading businessman of Shimla well. He had courted the British; had done everything to their bidding; had kept Shimla well supplied with foodstuff; followed the British plans about Shimla while developing real estate in and around the Lower Bazaar. As a "Jagat Seth" he had played a useful role in lending money to business community from Kangra/Jaswan on easy terms. On a rare occasion he would act nasty with his clients. Most had high praise for his dealings. His dealings with the Rajahs in the hills were a stuff of the legend. He leant them money and at times borrowed from them. On many occasion his astute business skills saved them money and prestige. Forefathers of current businessmen in Shimla owe a gratitude to him for coming to their rescue when going was difficult. The British always turned to him for local dispute resolution, which they thought should be internally resolved within the business community. With his own employees and junior partner he was a fatherly figure. None ever wished to leave his company and his employment.
Impressed with his all-round reputation, Lord Curzon while in Shimla had thought of granting him a position of rank and dignity. In other words his name was under consideration for granting him a title, which while in India the British had doing from time to time. This idea never matured during Lord Curzon's time. It was Lord Hardinge, who planned the Delhi Darbar with great eagerness that idea of granting "Peerage" to the Lala matured. Before the Delhi Darbar Lala Puran Mall name appeared in the list of people who would be granted the title of "Rai Sahib". He was duly informed and invited to Delhi Darbar, to which Shimla felt honoured, as Lala was the first one from that district to be granted such title.
Lala Puran Mall attended the Delhi Darbar in the company of two English speaking young men from Shimla who helped him wade thru the English speaking aristocracy. One of the person to accompany him was Lala Biroo Mall Chubb[7] (author's cousin and Son of deceased Lala Kurha Mall) just fifteen years old. He had been going to a school initially at Shimla and then later at Kapurthala. After the Delhi Darbar, overjoyed Shimla held a gathering to felicitate him in one his own hotel. Happy with Biroo Mall Chubb's performance at Delhi, Lala (now Rai Sahib) pulled out all the stops to get him admitted in a newly started technical school in Kapurthala (see below).
Lala's stock among the British subjects had sky rocketed. His opinion was sort after in many matters. Business proposals of joint ventures with the British began to materialize. Lala joined with Sir Pitman, a lawyer by profession and a friend, to set up a flourmill, which still exists at that very location till today. Other joint ventures included investing in hotels, boarding houses and building a whole block of housing on the western end of the Mall.
Rai Sahib Puran Mall's Assets Estimates of 1920s[8]
In 1920, Rai Sahib Puran Mall at the peak of his business success was said to be owning a third of real estate in the Lower Bazaar, British hotels/boarding houses, multiples cottages/properties in Jakhoo, property in US Club area, Chotta Shimla and other places which previously were owned by the British. These they handed over to the Rai Sahib in lieu of monies owed and other considerations.
It is estimated that Rai Sahib Puran Mall's assets in 1920 money exceeded Rupees 3.5 Crores. In present day it would be Rupees 160 Crores. If you factor in property values rising six fold in years 2000 to 2012 in Shimla, Rai Sahib's wealth would exceed Rupees one thousand Crores. Rai Sahib Puran Mall/Kaudoo Ram and his two nephews Biroo Mall and Sarafa Mall would approximately own a third each and six junior partners own about Rupees one lakhs each in 1920 monies. Rai Sahib as an honest man always advised his junior partners, not to withdraw any of their money from the business unless urgently needed. He argued that they were being paid market interest on their earnings; hence money should be left there.
Rai Sahib's monetary obligations were also huge. That did not bother him as long as he had a successful business. His business obligations, as a master banker included, monies he had borrowed to lend to others at higher interest as well as working capital needed to continue the business. In this type of business working capital requirements was high as money recovery was a bit slow and the suppliers in the plains demanded cash on goods delivery. But these were least of Rai Sahib's problem. He had confidence in his clients and they all paid.
He owed monies to a number of banks in Shimla included Alliance Bank, Shimla Bank etc. and number of wealthy individuals like Rajah of Jubbal with whom business dealings have been going on for half a century. His fast paced family had also recommended borrowing from the other rising star Lala (Later Rai Bahadur) Jodha Mall. He resisted mostly except Biroo Mall favoured borrowing from him as opposed to from the British Banks. There are no good estimates of Rai Sahib's obligations but conventional wisdom says that in roaring 1920s, heading a business like the one Rai Sahib was heading, his upper borrowing limit could be as high as forty percent of assets. It must be understood that the Banks, private lenders had always demanded a collateral, hence a bulk of his real estate assets were hypothecated to the lenders.
This above assets/Obligation structure is typical of any trading business. The Lloyds of London as well as the Bank of England recommended to the banks in the "Empire" in 1900s to cut-off of lending if borrowing exceeded forty percent of fixed assets. For extra cash, if needed, businesses were forced to turn to private individuals. That is where Rajah of Jubbal and Lala (Later Rai Bahadur) Jodha Mall came into the picture. They always demanded specific properties to be mortgaged for specific sum of money being borrowed.
Four Other Suds/Soods Stalwarts in Shimla in Early 1900s
The other rising star, Lala Jodha Mall (soon to be Rai Bahadur) and his associates in 1920s would be a close match, but not exceeded Rai Sahib Puran Mall until his death in 1932. Both Rai Sahib Puran Mall and Lala Jodha Mall were super stars of Shimla Sud/Sood community. Although they both were in different lines of business and Lala Jodha Mall about 25 years younger, they were business rivals. They were distant cousins but pursued the same goal to be number one in Shimla. Although Lala Jodha Mall's empire spread over three states of United Provinces, Punjab (Shimla) and Kashmir yet rivalry to be number one was played out in Shimla.
(See Part C for additional write up)
Rai Bahadur Sir Jai Lal a few years senior of R.B. Jodha Mall was born in Pragpur and was educated in Shimla Municipal Board School, later DAV School Lahore and Government College Lahore. He joined the Law College and graduated in 1900 with honours. After his law degree, he came back to Shimla and started his law practice. As a well- known pleader and lawyer, he also got himself involved in philanthropy work as president of Araya Samaj. His work was duly recognized and the title of Rai Bahadur was given to him 1915. In 1921 he was appointed as a Judge in Lahore High Court, a position he held till 1939.
(See Part C for additional write up)
Another Lawyer as well humanitarian, politician and a stalwart of freedom struggle was beginning his law practice in Shimla in early twentieth century. Lawyer later Rai Bahadur Mohan Lal of Garlie was a lawyer as well as Member Legislative Council (Punjab). His practice in Shimla flourished, as he would take up difficult cases which other lawyer would not touch especially taking on the British Government. Being from a well to do background and independently wealthy with business investments outside of Shimla, he could afford to take cases of down trodden and poor for justice. The famous case of "Coolie Murder Case" made him well known. For his philanthropy work both at Araya Samaj, opening a School in Garlie, (his native village) and elsewhere got him the title of Rai Bahadur. His contribution for the freedom struggle included his acting as a host to Mahatma Gandhi during latter's several trips to Shimla in thirties.
(See Part C for additional write up)
All the four above personalities were in Shimla in early twentieth century. Soon another business luminary Thakur Dass & Ram Krishan, who hailed from the village of Pirsaluhi in Kangra/Jaswan, joined their ranks. In 1931, they built the only hospital in the vicinity at Pirsaluhi and received a title of Rai Sahib from the British. The brothers were hugely popular in their native village for helping to straighten up a longstanding land dispute between Hindu Rajputs and Muslim migrants. The brothers also built roads to connect the hilltop village of Pirsaluhi to the main road.
(See Part C for additional write up)
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Chapter 13: New Beginning after the Fire in 1876
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Chapter
13
New
Beginning After the Fire of 1876
Upper Bazaar Operation of Sud/Sood Partners Relocates
The original partners by 1876 were old men. They knew that they wouldn't be around for long. Hence they began handing over day-to-day operations to their next generations. The latter began running their independent businesses with the senior partners always keeping a watch on the operations. The original partnership after the fire had undergone a change. Their financial connection at the top was also under strain. The previous set up was unique that lasted 45 years, now it was time to split up the assets and go independent. Even the forgoing was a formality. Twenty years earlier they had taken precautions to take three additional leases at Edward Gunj in order that each partner had a separate business. Their understanding of not competing with each other lasted their lifetime and beyond. Now the newer generation would do things their own way.
The fire had destroyed Upper Mall business location, which ran the retail operations for the natives and a Master Grocer operation (Modi) for the British. Lala Nidha Mall Puran Mall, which headed the master grocer operations, relocated to the Lower Bazaar and kept one of the original leases of commission agency at Edward Gunj. The new location, which Puran Mall picked, was close to Edward Gunj. A short dirt pathway away, which later became a flight of stairs, ran between the two spots. It took a while to build the lower Bazaar location but when it was completed, it became the headquarters of Lala Puran Mall's larger operations.
Other partners did not have to relocate to Lower Bazaar as they already had their leases at the Edward Gunj. It is only the more ambitious Puran Mall, who wished to have the Lower Bazaar location too.
How the Lower Bazaar is laid out
The "Lower Bazaar" is the same length of road as "The Mall" just 500 feet above it at the highest tier, but there are marked differences. The Mall promenade was built with shops & businesses facing north, hence denying it the Sun in the daytime. The Lower Bazaar was built facing the Sun; hence sunshine graced it all day. The Mall, denied of Sun, is cool with a hilltop gentle breeze always present had earned itself the nickname of "Thandi Sarhak". The Mall has the English Tudor architecture with a façade of excellence all along. Its aristocratic shopping has a look of London's Oxford Street. Viceroy(s) and other officials shopped here. Its fame is built on quality English products it sold. It is built in such a way that the high officials and their Memsahibs never had to look at the wretched conditions under which the natives lived just couple of hundred feet below on the slopes. The Mall buildings blocked their view. That was one of the the ulterior motive behind building the Mall facing north.
On the other hand, Lower Bazaar was and is for everybody. A person could buy anything from excellent textiles to best of spices and perfumes. It was built along a narrow pathway, post 1876 fire, and was never more than 20 feet wide. Horse drawn Ekkas could ply but not permitted due to a hazard these would create with a large number of people shopping there. All along, it followed the contours of the mountain. About thirty years later it joined up with the Mall Road also running east to west. There are no landmarks on the Lower Bazaar other than a tunnel dug in 1905/6 and number of connecting stairs built in the twentieth century to reach the Mall. When the rail goods service began in 1905 then the Edward Gunj was connected to the railway station to facilitate goods movement. A new bazaar later named as Ram Bazaar (Chor Bazaar) came into existence along the mule path. Its name aside, It is mostly residential district for people working in the Edward Gunj and the Lower Bazaar.
Lala Puran Mall Opens with a Bang At the Lower Bazaar/Edward Gunj
With Lala Puran Mall's Lower Bazaar operation in full swing, it was time for him to sub-divide the operations. Both Edward Gunj operation and Lower bazaar operations were in close proximity. Only one flight of stairs separated the two. When Lala picked this spot, after the fire, he was mindful that both his locations be close to each other. The Lower Bazaar operation also solved the lingering living quarters and kitchen problem for his employees. All his employees and partners had living quarters and a common kitchen at the Lower Bazaar location. This kitchen with two cooks, cooked as many as 50 meals a day. Both the cooks came from Kangra; hence Lala and his employees never missed the homely food.
All the cousins and relatives whom he invited to join him in Shimla came with only a bag full of clothes on their back and nothing else. They had left their families behind hence three square meals a day was their first priority. Their families far away in Jaswan/Kangra had high hopes on them except they could not join them, as the family housing did not exist. To set an example, the original four partners did not bring their families to Shimla. They would return back home every year for four months during winter and continue their family life. Lala Puran Mall also did the same. The forgoing was set as a norm for every Sud/Sood who came to Shimla during the nineteenth century and during the early twentieth century.
Lala being a first rate employer would take care of anybody whom he hired. This made them comfortable and they performed their duties better. He made deserving cousins or relatives into partners offering them one "Anna" partnership (6%) in his business. By the time Lala Puran Mall's era ended in 1932 (upon his death) he had six partners, each with one Anna interest in his business. He and his family held the majority, ten Anna's interest together with controlling management of the business..
The division of responsibility of the two operations was simple i.e. Master Grocer operations for the British aristocrats and Indian princes, now building palatial houses in Shimla, was to be conducted from the Lower Bazaar location, but all the business of filling the orders, wholesaling, commission agency, money lending was conducted from the Edward Gunj location. The accountant(s) would work in the morning hours from the Edward Gunj location and later in the day transfer the accounts to the ledgers at the Lower Bazaar location. Their they handled cash and made final ledger entries etc. Lala himself would be present in the morning at the Edward Gunj and would return to the Lower Bazaar later in the day to check all the accounting entries and take stock of the day's business.
Lala Puran Mall's Unique Method of Hiring & Retaining Talent
By 1881 Lala Nidha Mall Puran Mall's enterprise was growing faster than anybody else in the business at that time. With his honesty and straight dealings he had built connections with the British Administration. They preferred to deal with him on most issues relating to the native business practices. Wherever a dishonest practice was noticed, the British would complain to him and he would straighten the matter up. To his relatives, cousins and other Sud/Sood arriving from Jaswan he would help them settle down. If they were short of cash he would lend the same on easy interest payments. This would be much lower, if they borrowed it elsewhere. In this way he had built a huge clientele of Suds/Soods who had borrowed from him. That would include not only natives but also spendthrift British gentry.
At his own locations, he was gentle and firm employer. He dealt with the employees as his brothers. To retain them on a long-term basis, he offered partnership to deserving candidates who got small percentage of the profit as wages. Considering the size of Lala's operations, one Anna share was a great amount of money (in 1899 one Anna shares was worth Rupees 50,000 in 1932 money. In today's term it would be Rupees 4,000,000). Lala and his family were worth ten times more than that, but rewards to the employees made him an enlightened employer of the day[1].
By 1890s, the Lower Bazaar as well as the Mall was undergoing a major transformation. Lord Lytton, ten years earlier had set the ball rolling to widen and improve the Mall. He also had encouraged similar improvements for the Lower Bazaar. That was a cue to the Lala to become a real estate magnate of that era (see later)
Business Expansion (1881-1900)
By 1881, Lala Puran Mall had an iron clad stranglehold on Shimla business activities in the Edward Gunj. Although there were ten other commission agents cum wholesalers, Lala Puran Mall's business was flourishing. He had the direct line to the British, who respected him; also he had made inroads into supply business for the hill states princes. The latter were establishing housing in the fashionable Shimla to be close to the power. Although the Superintendent of Hill States and Shimla Deputy Commissioner supervised them, but they wished to be as close to the Viceroy and Punjab Governor as possible. Lala being a great salesman would get supply contracts for their every need. His clients included Rajas of Jubbal, Koti, Dhami, Keonthal, Bhajji, Khanetti, and Suket etc.
Shimla population did not change very much after 1881, but temporary labour that came to build houses, commercial establishments, hotels, cottages and roads etc. stayed for the duration of the jobs. They purchased their daily needs at the retail oriented Lower Bazaar. The latter was supplied by 10 Commission agents/wholesalers from the Edward Gunj. Much of the forgoing supplies came from the shop of Lala Puran Mall.
In about that time frame Lala embarked upon real estate expansion of his own. Impetus for this came from the Lower Bazaar extension eastwards. This Bazaar had not expanded very much after its creation in 1876. There was an urgent need for expansion and it would happen only if the municipality extended the Lower Bazaar road on both sides. The Municipal Committee unable to resist temptation to collect tax money from natives extended the bazaar on the eastern end, hence building activity to build new shop cum flats began. The existing rules of two floor buildings were not to be breached, but plots along the road were sold to recover expenses Municipal Committee had incurred. During this expansion there was enough space to build 100 more shops. Lala Puran in 1880s and 1890s was the biggest show in town and he bought many of these plots and began building shops and residences. Others in the Edward Gunj as well as in Lower Bazaar also began building to expand their real estate holdings. A huge amount of money was required to undertake this construction work. Lala had some internal resources of his own to fund it; also he had to borrow some money from outside sources to finance this huge activity. Since his credit rating was high hence he had no problem borrowing from the British banks as well as from the Princes/Rajahs with whom he had financial dealings.
Others, who were building shops and residences, needed money to finish them. They did not have the credit rating good enough to borrow in the open market hence they would approach him for money. In order to help, he would himself borrow from his sources and lend it to them. In the process he would make a buck or two. So great was his popularity as a moneylender that they began to refer him as Jagat Seth - Master Banker. People would approach him when they needed money and he used his instincts to evaluate the clients and then offer them terms. His terms were easy; hence he was a preferred banker.
By early 1890s, the Lower Bazaar expansion had reached its eastern edge. All the new shops were retail oriented. Housing above the shops was rented out to improve the cash flow. Lala either built much of the new construction personally or he held a mortgage on others because the owners had borrowed from him. He himself was under heavy debt as he had borrowed to lend to them. His own debt aside, It was a win-win situation for him. But if by chance he could not collect on his debt then insolvency was definite. But his personal prestige was such that nobody would refuse to pay back to him. Also most borrowers had offered something as collateral. Hence in his lifetime there was nothing to fear. This situation dramatically changed when he passed away in 1932 and his quarrelsome successors took control.
In addition to being a grain wholesaler, commission agent, master grocer, moneylender, he was also a real estate magnate. His reputation of straight dealings had made him popular with the British businessmen too. They came to him for money when they were building to extend The Mall east as well as west. Hence, he had a foothold on the Mall also. Although the Mall was exclusive domain of the British, Lala Puran Mall was the first person to hold mortgages on property built there.
Lala's nephews join in
Among the Garlie/Pragpur crowd in Shimla, Sud/Sood were the largest grouping (about 4-500 of them by 1890s). For them family came first. The family missed them when they were away for 8-9 months of a year. First cousins, their own children always came first, when it came to getting them started in life. It was them who were apprenticed first in the art of conducting business. By late 1880s and early 1890s that Lala Puran Mall had to deal with this issue of priority. His own son Kaudoo, his nephews Biroo & Sarafa, growing up in Haroli were set to join him in next few years. They were in the same age group with Biroo & Sarafa were a few years senior. Within next few years they would arrive in Shimla and join the family business as equal partners. They all were Nidha Mall's (now deceased) grandchildren. They had equal share in the business, hence were to be given preferential treatment. Until 1900, only Biroo had joined him in Shimla. A few years later Sarafa and Kaudoo would also join the family business.
By then Buta[2], who had arrived in Shimla in 1873 and joined Lala Puran Mall at Gunj, had passed away. His death occurred under mysterious circumstances at his home village of Pirsaluhi. Blackmail between brothers was involved. The job of chief accountant at Lala's enterprise was open. Although, Buta's first son Kurha joined the business, yet he joined as an apprentice in 1895. As an honest man Lala would not cheat anybody out of his share, hence immediately after Buta's demise he visited Pirsaluhi village and brought his 18 years old son with him to take Buta's place in business.
With his expanding business empire Lala was in need of family talent to take over the job of chief accountant as well as head auctioneers. In his mind he had reserved those jobs for his son and his nephews. He was properly apprenticing them for the jobs. Biroo & Sarafa took over the challenge and became well versed in auctioning whatever arrived in the Gunj. Biroo would also act as a purchaser and would visit suppliers in Mandis in Lahore, Ambala, Abdullahpur/Jagadhari, Wazirabad, and Gadugaad etc. At Abdullahpur he ran into an operating enterprise of Hakam Mall and Tani Mall, run by Gopi Mall and his son Jodha Mall Sud Kuthiala selling timber extracted from the forests along the Jamuna River. There he struck friends with Jodha. The latter was his distant cousin also. They had known each other since Haroli days, although Biroo was a few years senior. During his many visits Jodha & Biroo became friends. It was during his trip that new idea of business expansion came into Biroo's mind. "What if their enterprise from Shimla supplies grain and other commodities to the labour working to extract timber"? Lala Puran Mall was already aware of this business opportunity but found it impractical. But he would not miss this opportunity if timber extraction took off in Shimla hills. He already had a contract for the supplies with Rajah of Jubbal, who was extracting his own timber. He would offer the same deal to other Rajahs if they began extracting timber in a big way. Lala complimented Biroo for spotting a business opportunity.
Kaudoo in five years after arrival from Haroli, around 1900, had learnt all there was to learn about business techniques and accounting practices etc. He was also in-charge of money lending business and managing Lala's vast real estate holdings. Lala personally dealt with master grocer business. This was the most sensitive part of his business activity. He was leaving no room for complaints either from the British or from the princes.
In this formative time frame of late 1890s and absence of trained family talent to take over dead Buta's responsibilities, Lala introduced four more of his employees, all of them his cousins, into one Anna partnership. This was his way of rewarding good work done and opportunity to add more responsibilities to their plate. Overnight new partners acquired more authority and responsibility. These changes had an important impact on the efficiency of the operation. Also Lala had thought it thru that his young son and nephews would take over greater responsibilities in next 5 years but in the intervening period, Lala's interest had to be well protected, hence offering minor partnership was his way of protecting his interests[3].
Circumstances are not clear, but the Master Ledger (Baahi), with detailed partnership holding entries, in and around 1895, disappeared from the Lower Bazaar location. All efforts to locate it failed. Finally it was decided that anybody found in possession of it would be discharged from the business and would be debarred from conducting any business in Shimla Gunj. A new Ledger[4] was started, this time it was not to be stored at their business locations but kept in a bank locker. A second true copy was given to Lala's personal lawyer Sir I. Pitman.
Others Great Men born in this Era (1875-1920s)
As Lala Puran Mall and other Suds/Soods were prospering in Shimla, there were others making their presence felt elsewhere. One such Hindu undivided family of Hakam Mall Tani Mall was not far behind. Five members of this family came to Shimla during the Lord Lawrence's Viceroy era. They initially conducted timber extraction business in the Shimla Hills princely states and later in United Provinces and Jammu & Kashmir. They were instrumental in providing timber needed for housing in Shimla and timber for railway sleepers when railway line was built initially from Ambala to Kalka and from Kalka to Shimla. The family diversified into textiles also. They had their presence in the Upper Bazaar when in 1875, until the Upper Bazaar burnt down. The textile business was relocated to Lower Bazaar, exactly at the spot where the Lower Bazaar end of the tunnel opens. In 1900 they were paid compensation and relocated to where they are today as a major textile retail business of M/S Hakam Mall Tani Mall.
Lala Hakam Mall Sud's son Lala Gajjan Mall and his partner Lala Gopi Mall Sud's son Lala Jodha Mall at the time of construction of Shimla-Kalka railway undertook timber extraction for the purposes of providing sleepers for this narrow gauge railway. Thousands and thousands of cubic feet of timber was extracted in the Shimla hills to make the railway reach Shimla. The British put all environmental consideration on hold and let the extraction proceed.
Jodha Mall was born in Haroli (new home of some of the Kuthiala Sud/Sood clan) in 1883. He had an older brother Valbhadra Mall. They both were industrious boys with a great in-sight, love for work, integrity and sharp business acumen. They took over from their parents the timber business and pooled their resources with their cousin Gajjan Mall and began to transform their timber extraction business into a major enterprise of Punjab, Jammu & Kashmir and United Provinces. In 1902, railway sleeper supply business gave them their major break. At that time extracting timber in Shimla hills was easy, it was the transportation, which was more difficult. In comparison timber extracted in United Provinces and Kashmir was easier as timber was floated in the rivers with greater ease. Since timber was urgently needed, they had no trouble finding forests to lease and extract timber along the Jamuna River. Watching success elsewhere, even, the princely states in the Shimla hills also volunteered. First was the State of Jubbal, from where timber was floated along the Pabbar River and then to Jamuna River. Later other states along the Sutlej River volunteered. By early 1920s, the empire of M/S Hakam Mall Tani Mall rivalled that of Lala Puran Mall in Shimla. The former enterprise had a multi-state presence; hence they had greater influence with the British Administration.
By nineteen twenties, Jodha Mall's enterprises and Lala Puran Mall's enterprises were rivals. They had business dealings with each other but also there was mutual mistrust.
Sud/Sood Major Business Houses of 1875-1920s
The above two were the business stars of late nineteenth and early twentieth century, although a multitude of other Sud/Sood businesses existed. An exhaustive list exists on Shimla Sood Sabha website. Important other businesses houses, which predate to nineteenth century, a partial list is reproduced below:
·
Rairoo
Mall Sarafa Mall
·
Sunder
Lal Chaudhari Mall
·
Butails
in Shimla & Palampur
·
Mauja
Mall Sant Ram
·
Thunia
Mall Ghuggar Mall
·
Nihala
Mall enterprises
·
Chuha
Mall Gobind Ram
·
Nathu
Mall Lachman Dass
·
Hakam
Mall Tani Mall
·
Ram
Sukh Dass - Iron & Steel
·
Jalla
Mal Jawahar Mall
·
Ajudhya
Dass Parma Anand
·
Lehnu
Mall Thakur Dass (1909)
·
Ludhar
Mal Jai Bhan
·
Kiru
Mal Nawal Kishor
·
Devi
Saran Hans Raj
·
Changan
Mall
·
Durga
Dass Piare Lal
·
Hazari
Mall, Mangat Ram & Kirori Mall
·
Mela
Ram Mitthoo
·
Ayudhya
Dass Parmanand
·
Narain
Dass Bhagharha & family of Dharamsala Mahantan
·
Sunder
Mall Chaudhary Mall
·
RamSukh
Dass -Iron & Steel dealer and more
The above list (who were in business at the turn of twentieth century) is not an exhaustive list, as some businesses closed and started elsewhere, hence are difficult to trace. Each of them in a big way contributed to the Sud/Sood Diaspora in Shimla.
Other Sud Personalities (1875-1920s)
Some of the great Sud/Sood personalities of nineteenth century and early twentieth century Shimla other than Lala Puran Mall & Jodh Mall were: Mr. Justice Sir Jai Lal; Rai Bahadur Mohan Lal; Rai Sahib Thakur Dass & Ram Krishan etc.
A limiting factor for the people of Shimla to get educated and work at par with the British were the schools. That much heralded Maccaulay Minute of 1834 had done nothing for Shimla. There were several schools to educate the British boys and girls in Shimla and surrounding area, but none would admit Indian children. That Shimla Municipality's segregation policies of keeping the natives bottled up on the slopes in and around Lower Bazaar had yet given rise to a new policy of dividing the Shimla into Station Ward and Bazaar Ward. Station ward had all the schools, the Bazaar Ward had only one, that too a primary Municipal Board school. Permission to send children to schools in Station Ward was rarely granted, although there were only a few exceptions.
It was Jai Lal and Mohan Lal (see later) who faced the problem of schooling when they were of school age in Shimla in 1890s. They overcame these problems by starting in that Municipal Board School and then relocating to bigger cities to complete their education.
Chapter 14
Tumultuous 1900s in Shimla
Sud, Sarkar & Shimla
In 1890s there were about six thousand clerks and other lower end officials who were making journey every year in April to Shimla. They would stay for eight months in a semi temporary housing and make the same journey back in November to Calcutta/Agra. By some semi official estimates they carried as much as fifteen thousand maunds of paper and office material with them. All of it came by rail to Ambala and was carried up the hills to Shimla on mules, tongas, Ekkas and backs of the people, until Lord Curzon in 1905 flagged the first train to Shimla. Their housing had always been the various tiers, which rose from the Lower Bazaar to the Middle Bazaar, until that became insufficient. Then they were housed in Kainthu and other surrounding villages. This influx of people and previously not so clean areas of the Lower Bazaar became even filthier. Shimla Municipality was seized of this problem and made several efforts to sanitize it and clean it up. These half-hearted efforts were bearing no fruit; hence they were left with one choice; that is to isolate this pocket of dirt and filth from their own upper class living. They refused to connect the Lower Bazaar to the Mall also they refused to grant permission to extend the Middle Bazaar to run parallel to the Lower Bazaar all the way. Never the less the arrival of additional six thousand people in April was good news to the wholesalers, retailer and commission agents at the Edward Gunj.
Shimla population of 13,960 in 1901[5] (except temporary arrivals) had not varied much over the previous ten years. Addition in April every year of the government clerks together with temporary construction workers had added to the demand of grain and other foodstuff. To this, the added demand from the Shimla hill states had strained the already tight food supply. But all the forgoing was good news to the grain dealers and wholesalers. It was adding more and more money to their pockets. This improved prosperity and wealth had reached significant amount and was being noticed by the British gentry, although they wished to stay aloof. The Edward Gunj was overdue for expansion, it had to be enlarged and improved to add more grain dealers to conduct more business. For the last few years, some of the dealers were coming from the plains, of Punjab but it was still Sud/Sood business bazaar.
There were ten Sud/Soods who could be counted wealthy with their wealth exceeding Rupees ten lakhs in 1901. Two of them exceeded quadruple that amount. With that kind of money and influence, which comes with it, they were in the good books of the British. The latter in their dealings with the natives in Shimla, preferred to deal with rajahs, thakurs and other landowners representing the ruling class, but now they had a rising business community of Shimla to deal with. With the emergence of Sud/Sood personalities they began dealing with this significant but previously ignored community. At times their influence was at par with the rajahs and thakurs. In not too distant future Suds/Soods would completely replace the banks as source of finance for the British as well as the natives, hence Suds, Sarkar and Shimla became synonyms.
There was one area, which could be counted under represented in the native community in 1900 that included the educated class of lawyers, engineers and doctors. There were none at that time. The very first step to become professional was to go to schools, at par with the British. No such facility existed. There was an exception that a Municipal Board school "Mayfield" began to operate in 1890s to the primary level. The origin of this school in the Bazaar Ward is a bit of a mystery. As per word of mouth of the people, it was opened to let the children of the native clerks and other specialists who worked on the railway construction to continue education. Sir Jai Lala and R.B. Mohan Lal started from this primary school. They later went to Lahore and other places to finish high school and their law degrees.
Queen Victoria Dead 1901
At the age 78 in 1901 Queen Victoria died. She had declared herself as The Queen of India in 1876. Most natives in Shimla had wondered who she was. She was a "Firangi Queen" who had crowned herself as their monarch without setting foot on their soil. Natives in Shimla always wondered about her bust on Silver Rupee they possessed. Official mourning made them realize her importance. Then the stories began to circulate about her grabbing the Koh-I-Noor diamond from the very young Sikh Maharaja Dalip Singh, it made them wonder about her sincerity to their country.
Her era in Britain was the golden period for them. The dominions of India had provided her country with money, to indulge in stiff neck ultra conservative behaviour, where anything other than English was beneath their dignity. That character was distinctly visible at all levels in India including civil servants who were arriving in India to rule. Their ladies were the worst. They looked down upon everything native.
Queen Victoria had eight children of which five were daughters. They were married to various royal houses of Europe. That was the root cause of ugly competition within the royal houses. Her grandchildren kept the competition alive which resulted in the first great war of the Europe in 1914-18.
Lord Curzon the most un-likeable person was the Viceroy of that time. He celebrated the accession of King Edward VII to the non-existent throne of India in 1903 with great fan fare. The native rajahs and other British aristocracy joined in.
Lord Curzon, the most Un-likeable Viceroy
Lord Curzon during his six years of virtual dictatorial regime in India from 1899 to 1905 made himself the most un-likeable Viceroy of India. He spent much of his time in Shimla and built himself a Golf Course at Naldera. He appropriated money to extend the Delhi-Lahore rail line to branch off to Shimla. He himself flagged off first train narrow gauge train to Shimla. He is also credited to the passage of Indian Coinage and Paper Currency Act, which brought India to the Gold Standard.
His remaining deeds were much worst - he initiated the Bengal Partition, which resulted in riots in the country, first after 1857. He followed the policy of "Divide & Rule" with vigour. The great famine of Bengal in which 6-10 million people perished happened during his stewardship. He blamed it on failure of Monsoon, although the true cause was, switching land from growing food to growing opium. The latter was sold at high profits to the Chinese. The Boxer Rebellion in China was direct result of excessive cheap opium arriving from India and corrupting the public in China. The Boxer Rebellion was comparable to India's war of Independence in 1857, except that this one the Chinese won and removed the foreigners from Peking.
Lord Curzon had a distrustful mindset and coined the word "The Great Game" against Russian influence reaching Central Asia and Afghanistan. He sent spies to check it out, who dutifully reported what he wished to hear. His game plan of thwarting Russians had support from the successive Prime Ministers in England. They were also indulging in divide and rule in Europe, hence vigorously supported Lord Curzon.
His personal life of a sexual maniac is talked about in books and papers. In Shimla, after his first wife's death, he was gracing many women's bedrooms in the area. Shimla British population had a majority of women, whose husbands were away on duties elsewhere, hence indulging in extra-marital affairs was not un-common. Other women who had come from England looking for a husband were also easy prey.
When he relinquished his job, there was an all-round sigh of relief. Six years later Bengal Partition was cancelled.
Prelude to WW1 and Business in Shimla
Viceroys, who followed Lord Curzon were a bit mallow, but never the less they were also adherent to the idea of "Divide & Rule". Lord Minto (1905 -1910) proclaimed laws to curb political unrest. He arrested leaders of that era and jailed them in Burma. Shimla was unaffected by the political developments elsewhere, although a civil servant named A O Hume founded a political party in Shimla and gave it a name - Indian National Congress (1884). Lord Minto together with his Secretary of State passed a law known as Minto-Morley Act. That was a step further in "Divide & Rule" in India. It gave birth to communalism in India. The Muslim who had lost power to the British from 1757 to 1857, suddenly got a piece of the power. Forty years later these acts would divide India into two countries.
Lord Minto was the first Viceroy who took full advantage of the newly built railway line to move 6,000 employees from Calcutta to Shimla. In previous years, movement of so many people was always subdued as moving so many people with office bag and baggage together with their personal baggage was tedious on horses, mules and Ekkas. With clerks and other lower end officials, came over a thousand British citizens as supervisors and managers. This latter influx shopped at The Mall for everything except ordered supplies thru their favourite Master Grocer Lala Puran Mall. The Mall, which had been a bit neglected on the eastern & western end suddenly, came to life as influx of the British increased. The western end near the Telegraph office was rebuilt after the second fire, into a ritzy shopping district. It was also connected to the Lower Bazaar. In early 1900s the western part of the Lower Bazaar was also in disuse. It had to wait another 20 years for Arya Samaj building to be built and the construction of the native shopping district followed. Same way the eastern end of the shopping area was built into shops and park. It was also connected to the Mall via a newly built road.
The arrival of rail line boosted business in Shimla at all levels. Now goods could be brought to Shimla with ease. Edward Gunj was front and centre of all this activity relating to food and other everyday essentials. Much of the construction supply business was previously in the hands the British businessmen, but it was being slowly taken over by Sud/Sood businessmen.
The year 1905 marked another monumental change in the fortunes of the Lower Bazaar in Shimla. The British were tired of seeing mule trains going to Sanjauli and onwards, decided to dig a tunnel to re-route the mule trains to the Longwood Loop, away from the fashionable shopping, The Mall. Location selected for this tunnel was no other than where business of Hakam Mall Tani mall (Sud Kuthiala) was flourishing for the last thirty years. They would not relocate until a suitable site in the vicinity was found and adequate compensation paid. Shimla Municipal Committee accepted both these demands and the tunnelling work started. Now the mule train could cross over to Longwood Loop without going to the Mall. But it added to huge traffic congestion to the Lower Bazaar as man and animal began to share the same road.
The tunnel 12X12 foot was built to accommodate a horse rider with ease. As soon as the tunnel work finished water began to seep thru the cracks into the tunnel. Work had to be restarted to brick the tunnel interior but water found its way from thru the cracks again. There was only one solution left to remedy the situation, which was to put corrugated steel cladding to direct water to the sides and to the drain. Since then the corrugated sheets have stayed any water dripping on the passer by. .
A Major Accident in Edward Gunj & Plans were made to refurbish it
Kurha Mall, (author's uncle), who had arrived in Shimla at the behest of Lala Puran Mall in 1897 met an unfortunate end. He was resting in-between the stacks of grain bags piled up high all over the Gunj bazaar, one of the stacks gave way fell on him and killed him. He left behind three daughters and one son. He had a fourteen-year-old brother (author's father Khushi Ram) who was invited again by Lala Puran Mall to take his place. As an honest man Lala Puran Mall would not deny any of the minority partners of their due share. He offered Khushi Ram the same share and same position at Edward Gunj, as Kurha Mall had which was duly accepted. The Junior partners usually helped the head auctioneer or did accounting under the senior accountant's watchful eye or went on money collection in the evenings as directed by the senior partners. These were all envious jobs, for those who did not have them. When Khushi Ram arrived in Shimla, he was well versed in arithmetic and Tankari script, hence within three years he was made assistant to the senior accountant.
The police inquest in the death of Kurha Mall yielded no foul play. It was recorded as an accident of unfortunate kind. Immediately the Municipality was seized of remodelling the Edward Gunj into more modern wholesale market. It took three years to draw up the plans and begin construction. All old structures were demolished and the new structure at the Edward Gunj would be two floor stone and steel construction, able to withstand huge weight on first floor with human activity on the ground floor. There was room for 20 wholesalers and commission agents and a "pucca" area, to conduct auctions was built. Also accesses to it were improved. The western end was connected to the Lower Bazaar thru a better road and permission was given to build housing and shops in front of the Sanatan Dharam Sabha Temple (built 1889) with upper-most floors of this construction reaching the Lower Bazaar. The horse/mule shooing shops were relocated to "Ghorha Hospital" area to the east on the Cart Road.
Although they made no laws to forbid sleeping quarters at the Gunj bazaar, but the businesses were advised not to use this place for residence with security personnel and daily workers excepted. That was the direct result of Kurha Mall's sad demise.
Lala Puran Mall has a Tiff with Shimla Municipality
The new Edward Gunj construction was a sturdy building, built to store everything from food grains to local produce and everything else needed by the people. The central building's architecture included a high ceiling to stack bags, a clock tower, a central square to conduct auctions. The peripheral construction of some retail stores was postponed but was part of the plan. On the western side, an area was left vacant to build a native city hall and adjoining to it area for a school. As mentioned before, the horse/mule service area was relocated elsewhere. The new Edward Gunj had a look of larger "mandis" in the plains. The British had anticipate this Gunj to serve Shimla with a population base of roughly 20,000 souls and to which another 6,000 migrant clerks in next 20 to 30 years.
Once completed, the Shimla Municipal Committee invited all the commission agents to lease and relocate to the new buildings. Lala Puran mall at the prime of his business empire, proposed an alternative. He proposed that instead of Municipality leasing individually shops, they might consider leasing the whole building to him and then he would further sub-lease portions as needed by other wholesalers. The latter were not only his clients in one form or the other also listened to his advice and counsel. It was the Municipality, which declined this proposal. They did not wish to create a monopolistic environment. Lala Puran Mall felt slighted by this rejection and approached higher authorities, who also declined. This matter was dropped and individual leasing began. To this day that arrangement continues.
Delhi Darbar and Delhi becomes India's Capital again in 1911
Lord Hardinge (1910-1911) was the Viceroy of India and he wished to hold a great big celebration to commemorate the coronation of King George V in England. He was to be proclaimed as king of India and suitable celebration was needed. King George V came to Delhi in person. All Indian princes, nobleman and high gentry attended this occasion. Lala Puran Mall also attended the Delhi Darbar as a representative of Shimla business community. Also on this occasion, Delhi became the capital of India, instead of Calcutta. Now it became easier to move 6,000 employees and their bosses to Shimla for the summer. The travel of 1200 miles was cut to 200 miles and it would take two weeks to move instead of six weeks earlier. Shimla Business community rejoiced this development as centre of gravity of the government shifted closer to home and it became easier for the government decision-making bodies to operate between Shimla & Delhi.
Prelude to WW1
By 1911war clouds had started to gather over Europe for one final conflict between Europe and Britain. Now Britain had a new enemy, the Germans. The previous centuries of enmity with France had vanished. Although German, British and Russian kings were Queen Victoria's grandchildren but they were sworn enemies. The underlying reasons being the matter of supremacy over Europe and perpetual British interference in European affairs under one pretext or the other. By then Britain with monies arriving from colonies had grown belligerent and its industrial might was second to none. Technically the more proficient Germans with years of nation building at the hands of Otto Von Bismarck (Chancellor) and Wilhelm Kaiser (King) had made them superior to the British, but they had no colonies to dump their products. The British always stood in the way of the German commercial and technical successes hence war was inevitable. Only a spark was needed. It took three years for a spark to ignite the war clouds and it began in 1914.
The Indians would be worst sufferers, although not directly involved in the war but contributed heavily to the war effort in terms of men and money. Britain denuded India of food, money and young men for a war, which was not theirs. Indian taxpayers paid £147 million (£8 billion Pounds Sterling in today's money) for the war effort and about 800,000 soldiers to fight in Europe and Middle East, of which 80,000 never came back home.
Burden on Indians 6,000 miles away from Europe war theatre was greater than ever documented by the western and west supported Indian press. The Congress President of that Era Surendernath Benarjee said "The war was not worth anything for the Indian people. There was no benefit for them, hence they should stand up and not fight"[6]. All the Indian princes, Muslim League and some section of the Congress supported by the British war effort, but got nothing in return.
Food from India was shipped to Europe, leaving already a country short of food in ruins. Taxes in India (local, provincial & federal) went up 16%, 14% & 10% respectively in 1916, 1917 & 1818. These devastated already a poor country after 75 years of continuous one billion dollars cash transfer to Britain. Price of British imported goods went up by 190%. A country where local manufacturing had been systematically closed could not bear that kind of burden hence independence from Britain movements got their much-needed oxygen for their demands. Just about that time Mahatma Gandhi returned to India from South Africa.
With above important changes happening prices of local products, grain, produce, textile went skyrocketing in Shimla. The enormous burden of food shortages was sorely felt in Shimla hill states, where previously surplus food from the plains had found a ready market. In Shimla proper, the food prices had doubled. Everybody blamed the wholesalers and commission agents, without realizing that India had been dragged into the War for nothing and is being forced to pay the price.
Real estate prices and rents skyrocketed too. Lala Puran Mall on one hand was under huge stress with rising food prices and shortage of everything. He was overjoyed to find his real estate holdings had doubled in value in just four years. He was not complaining nor was his junior partners.
Lala Jodha Mall (before he received the title of Rai Bahadur), the forest products and timber merchant was also doing great. He had made a great name for himself in three states of United Provinces, Himachal Pradesh and Kashmir. He was extracting timber and selling it at a phenomenal profit in the timber markets of Abdullahpur (Yamunanagar), Jalandhar and Jammu. His and his family wealth had begun to rival that of Lala Puran Mall, who had all his holdings in real estate and money lending businesses, besides the commission agency and wholesale business was his bread and butter.
Lala Puran Mall Granted the Title of Rai Sahib
Lala Puran Mall from 1876 till the Delhi Darbar (1911) had played his role as leading businessman of Shimla well. He had courted the British; had done everything to their bidding; had kept Shimla well supplied with foodstuff; followed the British plans about Shimla while developing real estate in and around the Lower Bazaar. As a "Jagat Seth" he had played a useful role in lending money to business community from Kangra/Jaswan on easy terms. On a rare occasion he would act nasty with his clients. Most had high praise for his dealings. His dealings with the Rajahs in the hills were a stuff of the legend. He leant them money and at times borrowed from them. On many occasion his astute business skills saved them money and prestige. Forefathers of current businessmen in Shimla owe a gratitude to him for coming to their rescue when going was difficult. The British always turned to him for local dispute resolution, which they thought should be internally resolved within the business community. With his own employees and junior partner he was a fatherly figure. None ever wished to leave his company and his employment.
Impressed with his all-round reputation, Lord Curzon while in Shimla had thought of granting him a position of rank and dignity. In other words his name was under consideration for granting him a title, which while in India the British had doing from time to time. This idea never matured during Lord Curzon's time. It was Lord Hardinge, who planned the Delhi Darbar with great eagerness that idea of granting "Peerage" to the Lala matured. Before the Delhi Darbar Lala Puran Mall name appeared in the list of people who would be granted the title of "Rai Sahib". He was duly informed and invited to Delhi Darbar, to which Shimla felt honoured, as Lala was the first one from that district to be granted such title.
Lala Puran Mall attended the Delhi Darbar in the company of two English speaking young men from Shimla who helped him wade thru the English speaking aristocracy. One of the person to accompany him was Lala Biroo Mall Chubb[7] (author's cousin and Son of deceased Lala Kurha Mall) just fifteen years old. He had been going to a school initially at Shimla and then later at Kapurthala. After the Delhi Darbar, overjoyed Shimla held a gathering to felicitate him in one his own hotel. Happy with Biroo Mall Chubb's performance at Delhi, Lala (now Rai Sahib) pulled out all the stops to get him admitted in a newly started technical school in Kapurthala (see below).
Lala's stock among the British subjects had sky rocketed. His opinion was sort after in many matters. Business proposals of joint ventures with the British began to materialize. Lala joined with Sir Pitman, a lawyer by profession and a friend, to set up a flourmill, which still exists at that very location till today. Other joint ventures included investing in hotels, boarding houses and building a whole block of housing on the western end of the Mall.
Rai Sahib Puran Mall's Assets Estimates of 1920s[8]
In 1920, Rai Sahib Puran Mall at the peak of his business success was said to be owning a third of real estate in the Lower Bazaar, British hotels/boarding houses, multiples cottages/properties in Jakhoo, property in US Club area, Chotta Shimla and other places which previously were owned by the British. These they handed over to the Rai Sahib in lieu of monies owed and other considerations.
It is estimated that Rai Sahib Puran Mall's assets in 1920 money exceeded Rupees 3.5 Crores. In present day it would be Rupees 160 Crores. If you factor in property values rising six fold in years 2000 to 2012 in Shimla, Rai Sahib's wealth would exceed Rupees one thousand Crores. Rai Sahib Puran Mall/Kaudoo Ram and his two nephews Biroo Mall and Sarafa Mall would approximately own a third each and six junior partners own about Rupees one lakhs each in 1920 monies. Rai Sahib as an honest man always advised his junior partners, not to withdraw any of their money from the business unless urgently needed. He argued that they were being paid market interest on their earnings; hence money should be left there.
Rai Sahib's monetary obligations were also huge. That did not bother him as long as he had a successful business. His business obligations, as a master banker included, monies he had borrowed to lend to others at higher interest as well as working capital needed to continue the business. In this type of business working capital requirements was high as money recovery was a bit slow and the suppliers in the plains demanded cash on goods delivery. But these were least of Rai Sahib's problem. He had confidence in his clients and they all paid.
He owed monies to a number of banks in Shimla included Alliance Bank, Shimla Bank etc. and number of wealthy individuals like Rajah of Jubbal with whom business dealings have been going on for half a century. His fast paced family had also recommended borrowing from the other rising star Lala (Later Rai Bahadur) Jodha Mall. He resisted mostly except Biroo Mall favoured borrowing from him as opposed to from the British Banks. There are no good estimates of Rai Sahib's obligations but conventional wisdom says that in roaring 1920s, heading a business like the one Rai Sahib was heading, his upper borrowing limit could be as high as forty percent of assets. It must be understood that the Banks, private lenders had always demanded a collateral, hence a bulk of his real estate assets were hypothecated to the lenders.
This above assets/Obligation structure is typical of any trading business. The Lloyds of London as well as the Bank of England recommended to the banks in the "Empire" in 1900s to cut-off of lending if borrowing exceeded forty percent of fixed assets. For extra cash, if needed, businesses were forced to turn to private individuals. That is where Rajah of Jubbal and Lala (Later Rai Bahadur) Jodha Mall came into the picture. They always demanded specific properties to be mortgaged for specific sum of money being borrowed.
Four Other Suds/Soods Stalwarts in Shimla in Early 1900s
Rai Bahadur Jodha Mall
The other rising star, Lala Jodha Mall (soon to be Rai Bahadur) and his associates in 1920s would be a close match, but not exceeded Rai Sahib Puran Mall until his death in 1932. Both Rai Sahib Puran Mall and Lala Jodha Mall were super stars of Shimla Sud/Sood community. Although they both were in different lines of business and Lala Jodha Mall about 25 years younger, they were business rivals. They were distant cousins but pursued the same goal to be number one in Shimla. Although Lala Jodha Mall's empire spread over three states of United Provinces, Punjab (Shimla) and Kashmir yet rivalry to be number one was played out in Shimla.
(See Part C for additional write up)
Rai Bahadur Sir Jai Lal
Rai Bahadur Sir Jai Lal a few years senior of R.B. Jodha Mall was born in Pragpur and was educated in Shimla Municipal Board School, later DAV School Lahore and Government College Lahore. He joined the Law College and graduated in 1900 with honours. After his law degree, he came back to Shimla and started his law practice. As a well- known pleader and lawyer, he also got himself involved in philanthropy work as president of Araya Samaj. His work was duly recognized and the title of Rai Bahadur was given to him 1915. In 1921 he was appointed as a Judge in Lahore High Court, a position he held till 1939.
(See Part C for additional write up)
Rai Bahadur Mohan Lal
Another Lawyer as well humanitarian, politician and a stalwart of freedom struggle was beginning his law practice in Shimla in early twentieth century. Lawyer later Rai Bahadur Mohan Lal of Garlie was a lawyer as well as Member Legislative Council (Punjab). His practice in Shimla flourished, as he would take up difficult cases which other lawyer would not touch especially taking on the British Government. Being from a well to do background and independently wealthy with business investments outside of Shimla, he could afford to take cases of down trodden and poor for justice. The famous case of "Coolie Murder Case" made him well known. For his philanthropy work both at Araya Samaj, opening a School in Garlie, (his native village) and elsewhere got him the title of Rai Bahadur. His contribution for the freedom struggle included his acting as a host to Mahatma Gandhi during latter's several trips to Shimla in thirties.
(See Part C for additional write up)
Rai Sahib Thakur Dass Ram Krishan
All the four above personalities were in Shimla in early twentieth century. Soon another business luminary Thakur Dass & Ram Krishan, who hailed from the village of Pirsaluhi in Kangra/Jaswan, joined their ranks. In 1931, they built the only hospital in the vicinity at Pirsaluhi and received a title of Rai Sahib from the British. The brothers were hugely popular in their native village for helping to straighten up a longstanding land dispute between Hindu Rajputs and Muslim migrants. The brothers also built roads to connect the hilltop village of Pirsaluhi to the main road.
(See Part C for additional write up)
[1] If one
consider the skyrocketing property prices in Shimla, Lala Puran could worth
rupees several hundred crores today.
[2] His younger
brother accused him of stealing important family papers, after their father's
death. This blackmailed worked and forced him into committing suicide.
[3] There are
other reasons given, one amongst was that Lala Puran Mall did not wish
important employees of his business leave and start their own business in
competition to him. He was preventing that from happening.
[4] Post Lala Puran
Mall's death both these Ledgers disappeared again. When the junior partners
asked for their share as per the details in the Ledger, there was no ledger to
prove it. All the six partners, my family including, lost their 60 years of
earnings in 1934. The enterprise did not survive either. All the partners left.
There was no capable and trustworthy person left to run the business. The
debtors refused to pay and creditors came to collect resulting in chaos and
surrender. They lost bulk of their real estate holdings to rivals, banks and
other moneylenders. People who would run their businesses became their enemies.
[5] Gazetteer of
Simla 1904
[6] World War 1
and India, http//prezi.com/gs2adv5hfim1/world-war-1-and-india/
[7] Lala Biroo
Mall Chubb graduated as a civil engineer from Jagjeet Birdwood Technical
College at Kapurthala in 1917 and became a Sanitary Engineer of the Shimla
Municipal Committee. He did not like job and at the behest of Rai Sahib Puran
Mall, quit it and joined his business empire as his English speaking secretary
to deal with the British on his behalf.
[8] There are no
verifiable account books available. These are verbal accounts of junior
partners, who were present when yearly accounting was done from 1920 till Rai
Sahib's death in 1932
