Sotheby's Former Chairman Guilty of Price Fixing - Gets Jail Term
Alfred Taubman was found guilty last December of conspiring with its major rival, Christie's, of fixing commissions the auction houses charged sellers. In America this is a violation of antitrust laws and embroiled the world's two leading auction houses in fine art and antiques in a huge, expensive scandal.

Aggrieved sellers both demanded and received in a big civil action suit the return of some USD $512 million which both auction houses agreed to split down the middle. Such a huge payout, along with the recession, has caused major layoffs of staff.

The most damaging testimony against Mr. Taubman came from Christie's former CEO Christopher Davidge whose memos and diaries recorded twelve secret meetings between Taubman and the former head of Christie's, Sir Anthoney Tennant. Other major testimony came from former Sotheby's CEO Diana Brooks who, like Taubman, faces fines/prison term. They will know their fate this spring.

Interestingly, it is Christie's personnel who have come out of this relatively unscathed. Mr. Davidge was paid an USD $8 million severance fee by Christie's and Sir Anthony stayed in England thus avoiding testifying. Apparently there are no extradition laws for this type of offence in Britain.

Spurred by the success of collectors in the USA, British collectors too are getting in on the act of suing both auction houses for around US $150 - 300 million for the same offence of price fixing commissions. It is no surprise to learn that the rumour mill has both companies listed up for sale.

Mr. Taubman was sentenced to a year in jail and fined $ 12 million (Cdn), we learned at press time.

The first shock for us (literally) was the Seattle earthquake in Februrary which rattled us and our inventory and largely set the tone for the rest of the year. People were rattled and made nervous by a series of events.

The four month transit strike in Vancouver was a disaster for almost everyone. Visitors complained of not being able to get taxis such was the demand for summer transportation with the result that people couldn't get to us resulting in a sharp drop in business on the street and elsewhere.

In the midst of the bus strike the high-tech dot.com market collapsed which further eroded confidence. We then didn't have to be told that we were in recession for we had known it since the beginning of the year. The last straw was 9-11 which created necessary and un-necessary panic. This anxiety lifted somewhat by Christmas and rare items were desirable as they've ever been.

The bright ray of sunshine last year was the drop in interest rates. Money was the cheapest it had been in most of our lifetimes and created a fabulous opportunity to borrow and buy. With all the negativity going around, this fact seemed lost on many people but in terms of most individuals own financial futures it was almost as momentous as two planets colliding. We took full advantage of it and I can truthfully say that 2001 was our best buying year since 1989. This was the happy story of the year.

Staff Changes
Michelle who has been with us since 1998 is taking a year's leave of absence to attend to studies. June, who has been helping us with computer services will expand her repertoire into sales and replace Michelle.

Old Mill Antiques Centre
A huge new antiques mall has just opened in Vancouver at 55 East Cordova Street in Gastown. This mall is 25 times the size of our store and when it is fully stocked I suspect that it will have quite an affect on business throughout the city. It is an English operation with a mix of imported antiques and local dealers renting space. We already have two flourishing antique malls in our block - our neighbour the Shaughnessy Antiques Gallery and our other neighbour just across the street the Mulberry House Antiques Gallery and a third one downtown can only raise the profile for antiques collecting in the city.

We are so confident that it will do well that we have rented space in it and have already a substantial sale.

*note: The Old Mill Antiques closed in June.

South Granville Rents Rise
Despite an ailing local economy, chain stores are arriving in South Granville. The Subsequent increase in overhead is putting pressure on existing retailers.

Our long established neighbour, Minaret Carpets, has moved on because of higher rents now commanded and our new neighbour is La Vie en Rose. The fact of their arrival has pushed up our rent considerable - it was bad timing for us that our lease expired at the end of March. (We are however getting air conditioning included in our new rent structure which will be wonderful to have in the summertime).

What is happening on South Granville is really part of a world wide trend. In London, art and antiques shops are being squeezed off their traditional thoroughfares like New Bond St. by Ralph Lauren etc. because the chain's margins are such that they can afford very high overhead and still post big profits.

There is grave concern locally amongst small shop owners that per square foot rates will rise enough to make their operations untenable.

Indeed, the character of South Granville is under siege. Hopefully, we will all weather the storm and the character of the street will remain essentially the same because that is what draws in our customers - Robson Street we don't want to be!