Purchasing Principles and Management

9th Edition Peter Baily

Visit to download the full and correct content document:
https://ebookmass.com/product/purchasing-principles-and-management-9th-edition-p
eter-baily/
Baily_ppr 9/26/07 8:23 AM Page 1

Purchasing Principles and Management

“Essential reading for the practitioner or student of the
subject - this book remains the standard text.”
Professor Peter Hines, Cardiff University
Peter Baily
“Nobody reading this text will be in any doubt that purchasing
and supply are core to the business strategy of an organisation.
This is an excellent text that should be required reading for
David Farmer
students and managers alike”
Steve Brown Professor of Operations Management,
David Jessop
University of Exeter
David Jones

Purchasing Principles and Management

provides comprehensive coverage of this
dynamic subject area in a single book. A clear
and easy to read guide based on current good
practice, it also explores the latest developments
in ideas and approach.
‘Practice Notes’ throughout the text help the
reader apply the concepts to commercial and
industrial practice across all sectors and this
ninth edition includes improved coverage of
Supply Chain Management and addresses
international issues throughout.
The four sections cover every
aspect of purchasing:
 Objectives and organisation -
focuses on strategic themes and
the scope of purchasing activity
 Key considerations - covers
essential tactical issues, including
quality and price
 Specialised aspects - deals with
activities and applications, including

Peter Baily, former Chief Examiner for CIPS

the latest developments in new
technology and e-commerce
 Systems and Control - highlights
personnel and performance, and
ninth
Purchasing Principles
David Farmer, Henley Management College
David Jessop, formerly University of Glamorgan
David Jones, Blackburn College
explores the future direction of
purchasing. edition
and Management
Purchasing Principles and Management is Baily, ninth edition
published in association with the Chartered Farmer,
Institute of Purchasing and Supply (CIPS),
which is the central reference point for the Jessop
purchasing and supply profession. and
Details about courses, conferences and Jones
other services are available at ISBN 0-273-64689-3
www.cips.org

9 780273 646891
www.pearson-books.com
An imprint of
PPA_A01.qxd 9/26/07 7:49 AM Page i

Purchasing Principles
and Management

..
PPA_A01.qxd 9/26/07 7:49 AM Page ii

We work with leading authors to develop the

strongest educational materials in management,
bringing cutting-edge thinking and best learning
practice to a global market.

Under a range of well-known imprints, including

Financial Times/Prentice Hall, we craft high quality print and
electronic publications which help readers to understand
and apply their content, whether studying or at work.

To find out more about the complete range of our

publishing, please visit us on the World Wide Web at:
www.pearsoned.co.uk

..
PPA_A01.qxd 9/26/07 7:49 AM Page iii

Purchasing Principles
and Management

Ninth Edition

Peter Baily BSc (Econ), ACIS, FCIPS

David Farmer MSc, PhD, FCIPS, Dip. Man. Studies, Dip. Mktg.
David Jessop BA, FCIPS, FILog, ICSA, Cert. Ed.
David Jones PhD, MSc, BSc (Econ), MCInstM, MBIM, Cert. Ed.

..
PPA_A01.qxd 9/26/07 7:49 AM Page iv

Pearson Education Limited

Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world

Visit us on the World Wide Web at:

www.pearsoned.co.uk

First published 1968

Ninth edition published 2005

© Institute of Purchasing and Supply, 1968, 1974

© Peter Baily and David Farmer, 1977, 1981, 1985, 1990
© Peter Baily, David Farmer, David Jessop, David Jones, 1994, 1998, 2005

All rights reserved. No part of this publication may be reproduced, stored

in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without either the prior
written permission of the publisher or a licence permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd,
90 Tottenham Court Road, London W1T 4LP.

ISBN 0273 64689 3

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library

10 9 8 7 6 5 4 3 2 1
09 08 07 06 05

Typeset in 9.5/13pt stone by 35

Printed and bound in Great Britain by Ashford Colour Press, Hampshire

The publisher’s policy is to use paper manufactured from sustainable forests.

..
PPA_A01.qxd 9/26/07 7:49 AM Page v

Contents

Preface xii

Part 1 OBJECTIVES AND ORGANISATIONS 1

1 Purchasing scope and development 3

Introduction 3
Objectives of this chapter 3
The scope of purchasing 3
The changing role of purchasing and supply 6
Proactive purchasing 11
Procurement positioning 13
Total acquisition cost (and total cost of ownership) 14
Non-manufacturing organisations 19
The supply chain concept 20
Purchasing development 21
Best practice in strategic supply management 28
Summary 29
References and further reading 29

2 Strategic aspects of purchasing 31

Introduction 31
Objectives of this chapter 31
Growth in the strategic role of purchasing and supply 32
Problems associated with activities and value 33
The concept of strategy 34
The mission statement 36
Levels of strategy 39
Strategic management 40
Strategic analysis 42
Strategic development 49
Strategy implementation 52
Objectives for purchasing 52
Strategies and their scope 52
Selecting a strategy 55
Effective supply-market strategies 59

..
PPA_A01.qxd 9/26/07 7:50 AM Page vi

Contents

Softer approach to planning 64

Summary 65
References and further reading 65

3 Purchasing structure and organisation 67

Introduction 67
Objectives of this chapter 67
Strategy and structure 67
Purchasing and supply in different types of organisation 74
Organisation of the activity 76
Purchasing in the organisation structure 83
Purchasing devolution 85
Conclusion 86
Summary 86
References and further reading 87

4 Management aspects 88
Introduction 88
Objectives of this chapter 88
The supply chain 88
Improving the efficiency of the supply chain 95
Types of supply chain 95
Strategic development of purchasing 96
Summary 103
References and further reading 104

Part 2 KEY PURCHASING VARIABLES 105

5 Quality 107
Introduction 107
Objectives of this chapter 107
What is quality? 108
Statistical process control 110
Taguchi methods for the ‘off-line’ control of quality 112
Failure mode and effect analysis 115
Specification 116
Producing a specification 117
Early supplier involvement 119
Concurrent engineering 121
Standardisation 122
Supplier assessment 126
Economics of quality 130
Quality circles 131
The seven wastes 131

vi

..
PPA_A01.qxd 9/26/07 7:50 AM Page vii

Contents

Value analysis/value engineering 132

Summary 134
References and further reading 135

6 The right quantity 136

Introduction 136
Objectives of this chapter 136
Provisioning systems 136
Order quantities and stock control 137
Order quantities for production 145
Distribution resource planning (DRP) 150
Enterprise resource planning (ERP) 151
Just-in-time (JIT) 151
Vendor managed inventory (VMI) 154
Late customisation 156
Summary 158
References and further reading 158

7 Time 160
Introduction 160
Objectives of this chapter 160
Time and competitive advantage 160
On-time delivery 161
Expediting 164
Network analysis 166
Liquidated damages 170
Shortages 173
Summary 175
References and further reading 176

8 Source decision-making 177

Introduction 177
Objectives of this chapter 177
The nature of the sourcing decision 177
Attributes of a good supplier 179
Different types of sourcing 179
Sourcing decisions 180
The sourcing process 183
Source location 183
Sources of information on potential suppliers 184
Supplier evaluation 185
The right relationship 190
Other aspects of sourcing 192
Partnering 200

vii

..
PPA_A01.qxd 9/26/07 7:50 AM Page viii

Contents

Tiering of suppliers 202

Summary 204
References and further reading 205

9 Price and cost 206

Introduction 206
Objectives of this chapter 206
Factors affecting pricing decisions 206
How buyers obtain prices 214
Auctions 215
Discounts 215
Price analysis and cost analysis 217
Pricing major contracts 220
Investment appraisal 225
Learning curves and experience curves 226
Conclusion 227
Summary 228
References and further reading 228

10 Purchasing negotiations 229

Introduction 229
Objectives of this chapter 229
Negotiation 229
Negotiation skills 232
Preparation 233
The introductory stage 241
Discussion stage 242
Agreement stage 244
The post-negotiation stage 244
Competition and co-operation in negotiation 245
Body language 248
Negotiation strategies 249
Negotiation mix 250
Conclusion 250
Summary 251
References and further reading 252

Part 3 APPLICATIONS 253

11 Make-or-buy decisions and subcontracting 255

Introduction 255
Objectives of this chapter 255
The level at which make-or-buy decisions are taken 255
Buying or ‘doing’ – subcontracting services 261

viii

..
PPA_A01.qxd 9/26/07 7:50 AM Page ix

Contents

Purchasing – a candidate for outsourcing? 262

Subcontracting 263
Conclusion 269
Summary 269
References and further reading 270

12 Buying commodities 271

Introduction 271
Objectives of this chapter 271
The principal commodities 272
Why do commodity prices fluctuate? 274
Price stabilisation schemes 275
The role of the speculator 276
Hedging with futures contracts 277
Some buying techniques 279
Indifference prices 281
Traded options 284
Glossary 285
Summary 285
References and further reading 286

13 Buying internationally 287

Introduction 287
Objectives of this chapter 287
Why buy from abroad? 287
Problems with foreign sourcing 288
Incoterms 2000 293
Arbitration 295
Transport 296
Customs 296
Countertrade 297
The European Union (EU) 298
Summary 298
References and further reading 299

14 Capital goods 300

Introduction 300
Objectives of this chapter 300
The acquisition of capital equipment 300
What are capital items? 302
Leasing and hiring of capital equipment 303
Capital requisitions 304
Specification of capital equipment 305
The project approach 308

ix

..
PPA_A01.qxd 9/26/07 7:50 AM Page x

Contents

Lifetime costs 309

Investment appraisal 309
Investment appraisal criteria 311
Conclusion 316
Summary 317
References and further reading 317

15 Purchasing for resale 318

Introduction 318
Objectives of this chapter 318
Retailing 319
Retailing research 320
Supply chains in retailing 320
Electronic point of sale (EPOS) 321
Merchandise planning 322
Stock analysis and sales analysis 324
Brands 326
Supplier selection 327
Developments in the retail sector 327
Conclusion 328
Summary 328
References and further reading 329

16 Buying services 330

Introduction 330
Objectives of this chapter 330
What is meant by ‘services’? 331
Special factors 331
Outsourcing 334
Service level agreements 336
European Union Public Contracts Directive 338
Management in service provision 339
Summary 340
References and further reading 341

17 Government and public sector procurement 342

Introduction 342
Objectives of this chapter 342
Part A 343
Context of public sector procurement 343
Background 343
The last public sector ‘bastion’ 346
Part B 353
The EU and procurement 353

..
PPA_A01.qxd 9/26/07 7:50 AM Page xi

Contents

EU competition procurement cycle for goods and services 353

EU procurement directives 354
The main provisions of the directives in relation to contracts 357
Contract pricing mechanisms 364
Future developments 364
Summary 364
References and further reading 365

Part 4 SYSTEMS AND CONTROLS 367

18 Purchasing systems 369

Introduction 369
Objectives of this chapter 369
The transaction sequence or procurement cycle 369
Electronic systems 378
Non-standard purchases 383
Development of systems 388
Summary 389
References and further reading 389

19 Controlling performance, efficiency and effectiveness 391

Introduction 391
Objectives of this chapter 391
Measuring purchasing performance 393
Purchasing as the intelligent customer 398
Benchmarking in purchasing and supply 399
Other indicators of performance 400
Reporting to management 401
Budgets 403
Disposing of redundant stock, scrap or waste 407
Summary 409
References and further reading 410

Index 411

xi

..
PPA_A01.qxd 9/26/07 7:50 AM Page xii

Preface

As we said in our preface to the last edition, the original text was written
almost 30 years ago by Peter Baily and David Farmer and was in its day one of
a very small (probably single figure) number of specialised texts relating to
the field of purchasing and supply. We commented then that there were
many excellent books on the subject, that purchasing and supply chain
management had become recognised as a crucial strategic activity by those
concerned with organisational management and as a recognised academic
discipline with a growing number of university professors dedicated to the
subject area. It is reassuring to note that the literature on the subject con-
tinues to expand, as does the amount of academic and practitioner interest
in the subject, reflected in the now substantial number of university degrees
available at both under- and postgraduate level. As we also said, the visionary
and pioneering work that Peter and David took part in, probably to some
extent as a gesture of faith, is now fully justified.
The book could not have survived for this length of time without continu-
ous change, and of course the idea behind this new edition is to continue
that process. It should be pointed out that the change process is evolutionary,
and that we have taken care to balance the newer philosophies emerging in
our profession with the proven and established thinking and practice. This
book is not of the ‘read this and it will change your life’ genre; rather it is, we
hope, a reflection of sound mainstream practice, accompanied by comment
on the way things seem to be going, and by insights into developing ideas
and approaches.
The revisions for the ninth edition include the substantial rewriting of sev-
eral chapters, and the inclusion of much new material. We are very grateful
for the contribution by Alexis Brooks CIMA and David Moore of Cranfield
University for the revised Chapter 17 on the subject of buying for govern-
ment and public services. We also thank Neil Fuller, a chief examiner for the
Chartered Institute of Purchasing and Supply, for his help and advice, and for
his contribution of material included in our treatment of the ‘quality’ theme.
Readers will notice a feature not found in previous editions: the inclusion of
‘practice notes’ embedded into the text, showing the way in which some of
the themes of the text are reflected in actual supply management.
The book is, as before, organised into four parts. The first, on the theme
of objectives and organisations and covering Chapters 1–4, deals with the
scope of purchasing activity and its evolution, relevant strategic issues and

xii

..
PPA_A01.qxd 9/26/07 7:50 AM Page xiii

Preface

considerations, the structure and organisation of purchasing, and manage-

ment aspects of the activity. The second part, Chapters 5–10, looks at the key
purchasing variables of quality, quantity, time, source, price and negotiation.
Part 3, Chapters 11–17, concerns itself with important purchasing activities
and applications, dealing with processes associated with buying in particular
markets or economic sectors. The final part, covering Chapters 18 and 19,
deals with systems and controls and includes an appreciation of the direction
which research in purchasing is taking.
We continue to hope that the book will appeal to those in the practitioner
and academic communities. We have attempted to strike a balance between
the demands of a pure academic text and the sometimes simplistic treatment
of ideas encountered in the literature aimed at managers.
We are grateful for the help and support of many colleagues and friends
who have contributed in a great variety of ways to the book, and to the copy-
right holders of some of the included material. Specific acknowledgements
are, of course, made at the appropriate points in the text.

David Jessop
David Jones

xiii

..
PPA_A01.qxd 9/26/07 7:50 AM Page xiv

Acknowledgements

We are grateful to the following for permission to reproduce copyright

material:
Figure 1.6 courtesy of British Airways; Figure 2.3 adapted from Exploring
Corporate Strategy by Johnson and Scholes, with permission of Pearson
Education; Figure 2.6 adapted from Corporate Strategy by Richard Lynch, with
permission of Pearson Education, © Richard Lynch 2003; Figure 2.9 adapted
with the permission of The Free Press, a Division of Simon & Schuster Adult
Publishing Group, from COMPETITIVE STRATEGY: Techniques for Analyzing
Industries and Competitors by Michael Porter. Copyright © 1980, 1998 by The
Free Press. All rights reserved. Figure 5.1 courtesy of Nestlé; Figure 5.6 courtesy
of Kodak; Figure 8.3 courtesy of Partnership Sourcing; Table 10.3 from Getting
to Yes, Century Business Publishing, (Fisher and Ury, 1991) Figure 17.2
adapted from Smart Procurement in the MOD, Hawksmere (Boyce, T., 2000).
In some instances we have been unable to trace the owners of the copy-
right material, and we would appreciate any information that would enable
us to do so.

xiv

..
PPA_C01.qxd 9/26/07 7:05 AM Page 1

Part 1
Objectives and organisations

Chapter 1 Purchasing scope and development

Chapter 2 Strategic aspects of purchasing
Chapter 3 Purchasing structure and organisation
Chapter 4 Management aspects

..
PPA_C01.qxd 9/26/07 7:05 AM Page 2

..
PPA_C01.qxd 9/26/07 7:05 AM Page 3

1
Purchasing scope and
development

Introduction
All organisations need inputs of goods and services from external suppliers or
providers. In this chapter we examine the developing role of the purchasing and
supply function in managing these inputs, and comment upon the ways in which
the activity can contribute to the efficiency of the organisation. We will identify
ways of measuring the stage of development reached by an organisation and
demonstrate how the development stage reached can affect performance of the
purchasing activity.

Objectives of this chapter

n To discuss the scope of purchasing
n To identify the purchasing cycle concept
n To discuss purchasing and supply as a service activity
n To discuss the changing role of purchasing and supply
n To explain how purchasing might develop from an independent function to an
integrated activity
n To identify the internal and external influences which have affected the evolution
of purchasing
n To examine the ‘total acquisition cost’ concept
n To consider the adoption of relationships based on mutual benefits as an altern-
ative to the traditional transactional, adversarial approach
n To highlight the evolution of concepts relating to purchasing development
n To identify key practices encountered in developed strategic purchasing.

The scope of purchasing

A well-known statement of the objectives of purchasing is: to acquire the
right quality of material, at the right time, in the right quantity, from the right
source, at the right price. This somewhat hackneyed statement is criticised by

..
PPA_C01.qxd 9/26/07 7:05 AM Page 4

Chapter 1 • Purchasing scope and development

some as being rather superficial and simplistic. This is undoubtedly valid

comment, though the definition does provide a practical starting point for
discussion, and has been useful to the authors in organising this textbook.
However, a good objective should be measurable in some way, but who is to
say, for example, what price is right? For present purposes, remembering the
need to work as an effective function in the management team, the following
broad statement of objectives is suggested:

n To supply the organisation with a flow of materials and services to meet its
needs.
n To ensure continuity of supply by maintaining effective relationships with
existing sources and by developing other sources of supply either as altern-
atives or to meet emerging or planned needs.
n To buy efficiently and wisely, obtaining by an ethical means the best value
for every pound spent.
n To maintain sound co-operative relationships with other departments,
providing information and advice as necessary to ensure the effective
operation of the organisation as a whole.
n To develop staff, policies, procedures and organisation to ensure the
achievement of these objectives.

In addition, we might add some more specific objectives such as:

n To select the best suppliers in the market.

n To help generate the effective development of new products.
n To protect the company’s cost structure.
n To maintain the correct quality/value balance.
n To monitor supply market trends.
n To negotiate effectively in order to work with suppliers who will seek
mutual benefit through economically superior performance.
n To adopt environmentally responsible supply management.

n The purchasing cycle

The main stages in the purchasing process may be summarised as follows:

n Recognition of need
n Specification
n Make or buy decision
n Source identification
n Source selection
n Contracting
n Contract management
n Receipt, possibly inspection
n Payment
n Fulfilment of need

..
PPA_C01.qxd 9/26/07 7:05 AM Page 5

The scope of purchasing

The idea of the purchasing cycle is often employed to indicate the main
activities in which purchasing might be involved. The activities included in
the cycle do not include all of those that a purchasing staff might be involved
with; there are many activities such as, for example, negotiation, vendor rating
and source development that are not specifically included. It will be noticed
that the early and late stages in the cycle may not necessarily involve spe-
cialist purchasing staff, the core purchasing contribution to the cycle being
the items included in the central part of the list.
A limitation of the cycle concept is that it does not recognise the strategic
contribution made by modern purchasing. We shall discuss this contribution
within this chapter and elsewhere in the text.

n Is purchasing a service activity?

The thinking prevalent at the time of the first edition of this book was that
purchasing was a service function, often subordinated to production or
engineering in the manufacturing sector, or to finance in the service or public
sectors. The idea was that specialist supplies staff could do the bidding of
the more strategic elements of the organisation, and employ their skills at a
secondary ‘support’ level. Thinking moved on, and there came a more general
realisation that purchasing might contribute more effectively at a strategic as
well as an operational level. The idea that purchasing and supply was merely
a support activity has been somewhat discredited, with a developing recogni-
tion that purchasing involvement in issues such as the ‘make or buy’ decision,
or strategic commercial relationship gave the function a central and strategic
role in the competitive organisation.
Paradoxically, the now widespread recognition of the strategic nature of
much of the work of the purchasing staff has led to a kind of reversion. It
is now widely thought, and practice reflects this thinking, that high level
purchasing expertise is best employed in determining supply strategy in line
with that of the corporation, and assisting those concerned with day-to-day
operations in reflecting this strategy in managing their own acquisition and
use of externally sourced products and services. In many concerns purchasing
is again seen as a service or support activity, but by no means a servile func-
tion. In much the same way top management is often depicted these days as
supporting the organisation, inverting the traditional view that the organisa-
tion supports its management. We discuss the development of purchasing
later in the book, but we offer at this stage the idea that in many cases pur-
chasing has moved through evolution of its role to devolution of much of the
more straightforward buying activity, whilst retaining and developing its
strategic contribution.

..
PPA_C01.qxd 9/26/07 7:05 AM Page 6

Chapter 1 • Purchasing scope and development

The changing role of purchasing and supply

As we have indicated, purchasing is seen by many of today’s successful organ-
isations as an activity of considerable strategic importance. However, not all
businesses see purchasing as a function best undertaken by a specialised
department. There are those who perceive the activity as being more appro-
priately performed close to the point of need of the goods or services being
acquired. It is probably true to say, though, that a majority of organisations
employ the services of a dedicated team of purchasing and supply specialists.
This book is concerned with that specialised role.
The fact that the strategic role and contribution of purchasing and supply
is well recognised in many leading commercial concerns has meant that the
strategic purchasing decisions may be taken by purchasing involvement at
board level, rather than by a departmental manager.
The role and contribution of purchasing has increased steadily over the
past 50 years, with a dramatic upsurge in interest in the activity taking place
relatively recently. There are a number of reasons for this shift in importance
and recognition, and the main ones can be summarised as follows:

n External organisational factors

Leading-edge Organisations employing leading-edge approaches to the management of

concepts materials are putting into practice integrative ideas, which are, at least in part,
based on a strategic and integrated role for purchasing. The demonstrated
success of these organisations is stimulating great interest, and as other
organisations attempt to replicate their success, so purchasing is brought to
the fore.
Approaches and concepts which might be considered under this heading are:

n best practice benchmarking

n total quality management
n just-in-time philosophies and lean production
n supply chain concepts
n tiering and empowerment of suppliers
n relationship management
n customer focus

The expression ‘world class concepts’ is sometimes employed to describe

these and similar ideas, meaning something like ‘world’s best’ or ‘as used by
the world’s leading organisations’. In order to achieve such concepts, how-
ever, purchasing needs to be well developed and proactive.

Fewer but larger Concentration in the supply market has had a profound effect in recent years.
suppliers For example, the number of iron foundries in the UK has been decimated; the
production of pharmaceutical products is almost entirely in the hands of a

..
Another random document with
no related content on Scribd:
see such a living proof. She is my little Jane as she was when a child
—my little Jane—my darling! Mrs. Lanier, will you excuse me!—the
sight of her has quite unnerved me”; and suddenly sinking into a
chair he pressed the child to his heart and hid his face on her bright
golden head.
What passed between Lady Jane and her grandfather, Mr. and
Mrs. Lanier never knew, for they slipped quietly out of the room, and
left the cold, stern man alone with the last of his family—the child of
that idolized but disobedient daughter, who had caused him untold
sorrow, and whom he had never forgiven until that moment, when he
held in his arms, close to his heart, the child, her living image.
It was some time before Mr. Chetwynd appeared, and when he did
he was as cold and self-possessed as if he had never felt a throb of
emotion, or shed a tear of sorrow on the pretty head of the child, who
held his hand, and prattled as freely and confidingly as though she
had known him always.
“What will Mother Margaret say,” she exclaimed, looking at Mrs.
Lanier with wide, glistening eyes, “when I tell her that I’ve found Tony
and my grandpapa both in one Christmas? I never saw a grandpapa
before. Pepsie read to me about one in a book, and he was very
cross; but this one isn’t. I think he’s very good, because he says that
he will give me everything I wish, and I know I shall love him a great
deal.”
“Now, Lady Jane, confess to me, and I’ll never tell,” whispered
Arthur with an air of great secrecy. “Which do you love best, Tony or
your new grandpapa?”
She raised her clear eyes to the roguish face of the boy with a little
perplexed smile, and then replied unhesitatingly: “Well, I’ve known
Tony longer, but I think I’ll love my grandpapa as well by and by,
because, you know, he’s my grandpapa.”
Arthur laughed heartily at the clever way in which she evaded the
question, and remarked to Mrs. Lanier that Lady Jane would wind
her grandfather around her little finger before a month was over.
Which prediction was likely to prove true, for Mr. Chetwynd did not
seem to have any other interest in life than to gratify every wish the
child expressed.
“She has taken complete possession of me,” he said to Mrs.
Lanier, “and now my greatest happiness will be to make her happy.
She is all I have, and I shall try to find in her the comfort her mother
deprived me of.”
In spite of his affection for the child, his feelings did not soften
toward the mother; he could not forget that she had disappointed him
and preferred a stranger to him; that she had given up wealth and
position to bury herself in obscurity with a man he hated. It was a
bitter thought, yet he would spare no pains to solve the mystery that
hung over her last days.
Money and influence together soon put the machinery of the law in
motion; therefore it was not a month after Mr. Chetwynd’s arrival in
New Orleans before everything was as clear as day. The young
widow was traced to Madame Jozain’s; there were many who
remembered her death and funeral. The physician’s certificate at the
Board of Health bore the name of Dr. Debrot, who was found, and
interviewed during one of his lucid moments; he described the young
mother and child, and even remembered the blue heron; and his
testimony, sad though it was, was still a comfort to Jane Chetwynd’s
friends. She had died of the same fever that killed her husband, and
she had been carefully nursed and decently buried. Afterward, the
Bergeron tomb was opened, the remains identified, and then sent to
New York to rest with her mother, in the stately Chetwynd tomb, in
Greenwood cemetery.
Then a careful search was made for her personal effects, but
nothing was recovered except the watch that Paichoux was fortunate
enough to secure. Mr. Chetwynd handed Paichoux a large check in
exchange for it, but the honest man refused to take any more than
he had paid Raste Jozain in order to get possession of it. However,
the millionaire proved that he was not ungrateful nor lacking in
appreciation, when he presented him with a rich, plain watch suitably
inscribed, from the donor to a most worthy friend. And when the
pretty Marie was married, she received from the same jeweler who
made the watch an exquisite silver tea-service, which was the pride
of her life, and which was cherished not only for its value, but
because it was a gift from Lady Jane’s grandpapa.
Mr. Chetwynd made a number of visits to Good Children Street in
company with Mrs. Lanier and Lady Jane, and there were a great
many long conversations between Mam’selle Diane, the millionaire,
and the banker’s wife, while Lady Jane played with her jolly little
friend, the canary, among the branches of the rose-bush. During
these conversations there was a great deal of argument and anxious
urging on the part of the visitors, and a great many excuses and
much self-depreciation on the part of the gentle, faded lady.
“I have been buried so long,” she would say pathetically, “that the
great world will appal and confuse me. I shall be like a blind person
suddenly made sensible of the light.”
“But you will soon become accustomed to the light,” urged Mrs.
Lanier.
“And I might long for seclusion again; at my age one cannot easily
change one’s habits.”
“You shall have all the seclusion you wish for,” said Mr. Chetwynd
kindly.
“Besides I am so old-fashioned,” murmured Mam’selle Diane,
blushing deeply.
“A quality which I greatly admire,” returned Mr. Chetwynd, with a
courtly bow.
“And think how Lady Jane loves you,” said Mrs. Lanier, as if to
clinch the argument.
“Yes; my love for her and hers for me are the strongest points in
the situation,” replied Mam’selle Diane reflectively; “when I think of
that I can hardly refuse to comply with your wishes.”
At that time it seem as if Lady Jane acted the part of fairy
godmother to those who had been her friends in her days of
adversity; for each one had only to express a wish and it was
gratified.
 Pepsie’s cottage in the country was about to become a reality. In
one of the charming shady lanes of Carrollton they found just such a
bowery little spot as the girl wished for, with a fine strip of land for a
garden. One day Mr. Chetwynd and Lady Jane went down to Good
Children Street and gave the deed of it to Mademoiselle Madelon
Modeste Ferri, which was Pepsie’s baptismal name, although she
had never been called by it in all her life. The little cripple was so
astonished and delighted that she could find no words of thanks; but
after a few moments of very expressive silence she exclaimed: “After
all, my cards were right, for they told me over and over that I should
go to live in the country; and now I’m going, thanks to Lady Jane.”
When little Gex was asked what he most wished for in the world,
he hesitated for a long time, and finally confessed that the desire of
his life was to go back to Paris.
“Well, you shall go, Mr. Gex,” said Lady Jane confidently, “and I
shall see you there, because I’m going to Paris with grandpapa very
soon.”
It is needless to say that Gex went, and the little shop in Good
Children Street saw him no more forever.
And Margaret—the good Margaret. What could Lady Jane do for
her? Only the noble woman and the destitute orphans could testify to
the generous aid that came yearly in the shape of a check for a large
amount from Lady Jane for dear Mother Margaret’s home.
“And Mam’selle Diane,—dear Mam’selle! what can I give her?”
asked Lady Jane eagerly.
“We have our plans for Mam’selle Diane, my dear,” said Mrs.
Lanier. “There is only one thing to do for her, and that is to take her
with you. Your grandpapa has begged her to take charge of your
education. Poor, lonely woman; she loves you dearly, and in spite of
her reluctance to leave her seclusion, I think she would go to the
world’s end with you.”
And so it was arranged that when Mr. Chetwynd and Lady Jane
left New Orleans, Mam’selle Diane d’Hautreve went with them, and
the little house and tiny garden were left to solitude, while the jolly
canary was sent to keep Tony company in Mrs. Lanier’s
conservatory.
 CHAPTER XXXIII
AS IT IS NOW

A LL this happened years ago, some ten or twelve, more or less,

and there have been many changes in that time.
In front of the iron railing where Lady Jane clung on that cold
Christmas eve, peering into the warmth and light of the Orphans’
Home, there is now a beautiful little park, with magnolias, oaks,
fragrant white jasmine, and pink flowering crape-myrtle. The grass is
green, and the trees make shadows on the pretty little pond, the tiled
bridge and shelled walks, the cactus and palmetto. Flowers bloom
there luxuriantly, the birds sing merrily, and it is a spot beloved of
children. Always their joyous laugh can be heard mingled with the
songs of birds and the distant hum of many little voices in the
Orphans’ Home a few paces away.
In the center of that square on a green mound, bordered with
flowers, stands a marble pedestal, and on that pedestal is a statue. It
is the figure of a woman, seated and holding a little orphan to her
heart. The woman has a plain, homely face, the thin hair is combed
back austerely from the broad forehead, the eyes are deep-set, the
features coarse, the mouth wide. She is no high-born dame of
delicate mold, but a woman of the people—untaught, honest, simple,
industrious. Her plain gown falls around her in scanty lines; over her
shoulders is modestly folded a little shawl; her hands, that caress the
orphan at her side, are large and rough with honest toil; but her face,
and her whole plain figure, is beautiful with purity and goodness. It is
Margaret, the orphans’ friend, who, though a destitute orphan
herself, by her own virtue and industry earned the wealth to found
homes and asylums, to feed and clothe the indigent, to save the
wretched and forsaken, and to merit the title of Mother to the
Motherless.
 And there sits her marble image, through summer’s heat and
winter’s cold, serene and gentle, under the shadow of the home she
founded, and in sound of the little voices that she loved so well; and
there she will sit when those voices are silent and those active little
forms are dust, as a monument of honest, simple virtue and charity,
as well as an enduring testimony to the nobility of the women who
erected this statue in respectful recognition of true greatness under
the homely guise of honest toil.
If one of my young readers should happen near this spot just at
the right moment on some fine evening in early spring, he or she
might chance to notice an elegant carriage drawn by two fine horses,
and driven by a sleek darky in plain livery, make the circuit of the
place and then draw up near the statue of Margaret, while its
occupants, an elderly woman of gentle and distinguished
appearance, and a beautiful young girl, study the homely, serene
face of the orphans’ friend.
Presently the girl says reverently, “Dear Mother Margaret! She was
a saint, if earth ever knew one.”
“Yes; she was a noble woman, and she came from the poor and
lowly. My dear, she is an example of a great truth, which may be
worthy of consideration. It is, that virtue and purity do not disdain to
dwell in the meanest shrine, and that all the titles and wealth of earth
could not ennoble her as her own saintly character has done.”
The occupants of the carriage are Lady Jane and Mam’selle Diane
d’Hautreve.
The beautiful child is now a beautiful girl of seventeen. Her
education is finished, and she has not disappointed the expectations
of her friends. At home and abroad she is not only known as the
Chetwynd heiress, but also for her many accomplishments, as well
as for her beauty and charitableness. And her wonderful voice, which
time has enriched and strengthened, is a constant delight to those
who hear it, although it is never heard in public, save in the service
of God, or for some work of charity. The poor and the lowly, the sick
and the dying have often been carried to the very gates of heaven on
its melodious strains, and the good sisters and grateful little orphans
in Margaret’s Home count it a day long to be remembered when
Lady Jane sits down among them and sings some of the hymns that
she loved so well in those old days when she herself was a
homeless little orphan.
Mr. Chetwynd still likes to spend part of the year in Paris; but he
has purchased a beautiful winter home in one of the lovely streets in
the garden district, not far from Mrs. Lanier, and Lady Jane and
Mam’selle Diane spend several months every spring in its delightful
seclusion.
And here Madelon comes to bring her delicious cakes, which she
now sells to private customers instead of having a stand on the Rue
Bourbon; and Tante Modeste often rattles up in her milk cart, a little
older, a little stouter, but with the same bright face; and on the same
seat where Lady Jane used to sit is one of Marie’s little ones, instead
of one of her own. “Only think, my dear,” she says proudly, “Tiburce
has graduated, and now he is studying law with Marie’s husband,
who is rising fast in his profession.”
But among all her happy hours there are none pleasanter than
those she spends with Pepsie in the pretty cottage at Carrollton,
when the bright-faced little cripple, who seems hardly a day older,
spreads out her beautiful needlework and expatiates eloquently on
the fine results she obtains from the Paris patterns and exquisite
material with which she is constantly supplied. She is a natural little
artist with the needle, her dainty work sells readily and profitably, and
she is in a fair way to become rich. “Just think,” she says with one of
her broad smiles, “I could buy a piano now myself, if I wanted to, and
perhaps I shall, so that you can play to me when you come.”
During sunny mornings, on a certain lawn in the garden district,
there is nearly always a merry party playing tennis, while a gentle-
faced woman sits near holding a book, which she seldom reads, so
interested is she in watching a golden-haired girl and a handsome
young man, who frequently interrupt the game to point out the grave
antics of a stately blue heron, that stalks majestically about the lawn
or poses picturesquely on one leg under a glossy palm.
 But we must not approach the border-land of romance. Lady Jane
is no longer a child, and Arthur Maynard is years older than the boy
who gave her the blue heron.

THE END
 Transcriber’s Notes

pg 14 Changed: if you thing it’s right

to: if you think it’s right
pg 133 Changed: LADY JANE FINDS A MUSIC-TEACHFR
to: LADY JANE FINDS A MUSIC-TEACHER
pg 152 Changed: You didn’t wear a handkerchef over your ears
to: You didn’t wear a handkerchief over your ears
pg 168 Changed: annoyed at Pespie’s air of secrecy
to: annoyed at Pepsie’s air of secrecy
*** END OF THE PROJECT GUTENBERG EBOOK LADY JANE ***

Updated editions will replace the previous one—the old editions will
be renamed.

Creating the works from print editions not protected by U.S.

copyright law means that no one owns a United States copyright in
these works, so the Foundation (and you!) can copy and distribute it
in the United States without permission and without paying copyright
royalties. Special rules, set forth in the General Terms of Use part of
this license, apply to copying and distributing Project Gutenberg™
electronic works to protect the PROJECT GUTENBERG™ concept
and trademark. Project Gutenberg is a registered trademark, and
may not be used if you charge for an eBook, except by following the
terms of the trademark license, including paying royalties for use of
the Project Gutenberg trademark. If you do not charge anything for
copies of this eBook, complying with the trademark license is very
easy. You may use this eBook for nearly any purpose such as
creation of derivative works, reports, performances and research.
Project Gutenberg eBooks may be modified and printed and given
away—you may do practically ANYTHING in the United States with
eBooks not protected by U.S. copyright law. Redistribution is subject
to the trademark license, especially commercial redistribution.

START: FULL LICENSE

THE FULL PROJECT GUTENBERG LICENSE
 PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK

To protect the Project Gutenberg™ mission of promoting the free

distribution of electronic works, by using or distributing this work (or
any other work associated in any way with the phrase “Project
Gutenberg”), you agree to comply with all the terms of the Full
Project Gutenberg™ License available with this file or online at
www.gutenberg.org/license.

Section 1. General Terms of Use and

Redistributing Project Gutenberg™
electronic works
1.A. By reading or using any part of this Project Gutenberg™
electronic work, you indicate that you have read, understand, agree
to and accept all the terms of this license and intellectual property
(trademark/copyright) agreement. If you do not agree to abide by all
the terms of this agreement, you must cease using and return or
destroy all copies of Project Gutenberg™ electronic works in your
possession. If you paid a fee for obtaining a copy of or access to a
Project Gutenberg™ electronic work and you do not agree to be
bound by the terms of this agreement, you may obtain a refund from
the person or entity to whom you paid the fee as set forth in
paragraph 1.E.8.

1.B. “Project Gutenberg” is a registered trademark. It may only be

used on or associated in any way with an electronic work by people
who agree to be bound by the terms of this agreement. There are a
few things that you can do with most Project Gutenberg™ electronic
works even without complying with the full terms of this agreement.
See paragraph 1.C below. There are a lot of things you can do with
Project Gutenberg™ electronic works if you follow the terms of this
agreement and help preserve free future access to Project
Gutenberg™ electronic works. See paragraph 1.E below.
1.C. The Project Gutenberg Literary Archive Foundation (“the
Foundation” or PGLAF), owns a compilation copyright in the
collection of Project Gutenberg™ electronic works. Nearly all the
individual works in the collection are in the public domain in the
United States. If an individual work is unprotected by copyright law in
the United States and you are located in the United States, we do
not claim a right to prevent you from copying, distributing,
performing, displaying or creating derivative works based on the
work as long as all references to Project Gutenberg are removed. Of
course, we hope that you will support the Project Gutenberg™
mission of promoting free access to electronic works by freely
sharing Project Gutenberg™ works in compliance with the terms of
this agreement for keeping the Project Gutenberg™ name
associated with the work. You can easily comply with the terms of
this agreement by keeping this work in the same format with its
attached full Project Gutenberg™ License when you share it without
charge with others.

1.D. The copyright laws of the place where you are located also
govern what you can do with this work. Copyright laws in most
countries are in a constant state of change. If you are outside the
United States, check the laws of your country in addition to the terms
of this agreement before downloading, copying, displaying,
performing, distributing or creating derivative works based on this
work or any other Project Gutenberg™ work. The Foundation makes
no representations concerning the copyright status of any work in
any country other than the United States.

1.E. Unless you have removed all references to Project Gutenberg:

1.E.1. The following sentence, with active links to, or other

immediate access to, the full Project Gutenberg™ License must
appear prominently whenever any copy of a Project Gutenberg™
work (any work on which the phrase “Project Gutenberg” appears, or
with which the phrase “Project Gutenberg” is associated) is
accessed, displayed, performed, viewed, copied or distributed:
 This eBook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this eBook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.

1.E.2. If an individual Project Gutenberg™ electronic work is derived

from texts not protected by U.S. copyright law (does not contain a
notice indicating that it is posted with permission of the copyright
holder), the work can be copied and distributed to anyone in the
United States without paying any fees or charges. If you are
redistributing or providing access to a work with the phrase “Project
Gutenberg” associated with or appearing on the work, you must
comply either with the requirements of paragraphs 1.E.1 through
1.E.7 or obtain permission for the use of the work and the Project
Gutenberg™ trademark as set forth in paragraphs 1.E.8 or 1.E.9.

1.E.3. If an individual Project Gutenberg™ electronic work is posted

with the permission of the copyright holder, your use and distribution
must comply with both paragraphs 1.E.1 through 1.E.7 and any
additional terms imposed by the copyright holder. Additional terms
will be linked to the Project Gutenberg™ License for all works posted
with the permission of the copyright holder found at the beginning of
this work.

1.E.4. Do not unlink or detach or remove the full Project

Gutenberg™ License terms from this work, or any files containing a
part of this work or any other work associated with Project
Gutenberg™.

1.E.5. Do not copy, display, perform, distribute or redistribute this

electronic work, or any part of this electronic work, without
prominently displaying the sentence set forth in paragraph 1.E.1 with
active links or immediate access to the full terms of the Project
Gutenberg™ License.
1.E.6. You may convert to and distribute this work in any binary,
compressed, marked up, nonproprietary or proprietary form,
including any word processing or hypertext form. However, if you
provide access to or distribute copies of a Project Gutenberg™ work
in a format other than “Plain Vanilla ASCII” or other format used in
the official version posted on the official Project Gutenberg™ website
(www.gutenberg.org), you must, at no additional cost, fee or expense
to the user, provide a copy, a means of exporting a copy, or a means
of obtaining a copy upon request, of the work in its original “Plain
Vanilla ASCII” or other form. Any alternate format must include the
full Project Gutenberg™ License as specified in paragraph 1.E.1.

1.E.7. Do not charge a fee for access to, viewing, displaying,

performing, copying or distributing any Project Gutenberg™ works
unless you comply with paragraph 1.E.8 or 1.E.9.

1.E.8. You may charge a reasonable fee for copies of or providing

access to or distributing Project Gutenberg™ electronic works
provided that:

• You pay a royalty fee of 20% of the gross profits you derive from
the use of Project Gutenberg™ works calculated using the
method you already use to calculate your applicable taxes. The
fee is owed to the owner of the Project Gutenberg™ trademark,
but he has agreed to donate royalties under this paragraph to
the Project Gutenberg Literary Archive Foundation. Royalty
payments must be paid within 60 days following each date on
which you prepare (or are legally required to prepare) your
periodic tax returns. Royalty payments should be clearly marked
as such and sent to the Project Gutenberg Literary Archive
Foundation at the address specified in Section 4, “Information
about donations to the Project Gutenberg Literary Archive
Foundation.”

• You provide a full refund of any money paid by a user who

notifies you in writing (or by e-mail) within 30 days of receipt that
s/he does not agree to the terms of the full Project Gutenberg™
License. You must require such a user to return or destroy all
 copies of the works possessed in a physical medium and
discontinue all use of and all access to other copies of Project
Gutenberg™ works.

• You provide, in accordance with paragraph 1.F.3, a full refund of

any money paid for a work or a replacement copy, if a defect in
the electronic work is discovered and reported to you within 90
days of receipt of the work.

• You comply with all other terms of this agreement for free
distribution of Project Gutenberg™ works.

1.E.9. If you wish to charge a fee or distribute a Project Gutenberg™

electronic work or group of works on different terms than are set
forth in this agreement, you must obtain permission in writing from
the Project Gutenberg Literary Archive Foundation, the manager of
the Project Gutenberg™ trademark. Contact the Foundation as set
forth in Section 3 below.

1.F.

1.F.1. Project Gutenberg volunteers and employees expend

considerable effort to identify, do copyright research on, transcribe
and proofread works not protected by U.S. copyright law in creating
the Project Gutenberg™ collection. Despite these efforts, Project
Gutenberg™ electronic works, and the medium on which they may
be stored, may contain “Defects,” such as, but not limited to,
incomplete, inaccurate or corrupt data, transcription errors, a
copyright or other intellectual property infringement, a defective or
damaged disk or other medium, a computer virus, or computer
codes that damage or cannot be read by your equipment.

1.F.2. LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except

for the “Right of Replacement or Refund” described in paragraph
1.F.3, the Project Gutenberg Literary Archive Foundation, the owner
of the Project Gutenberg™ trademark, and any other party
distributing a Project Gutenberg™ electronic work under this
agreement, disclaim all liability to you for damages, costs and
expenses, including legal fees. YOU AGREE THAT YOU HAVE NO
REMEDIES FOR NEGLIGENCE, STRICT LIABILITY, BREACH OF
WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
PROVIDED IN PARAGRAPH 1.F.3. YOU AGREE THAT THE
FOUNDATION, THE TRADEMARK OWNER, AND ANY
DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE LIABLE
TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL,
PUNITIVE OR INCIDENTAL DAMAGES EVEN IF YOU GIVE
NOTICE OF THE POSSIBILITY OF SUCH DAMAGE.

1.F.3. LIMITED RIGHT OF REPLACEMENT OR REFUND - If you

discover a defect in this electronic work within 90 days of receiving it,
you can receive a refund of the money (if any) you paid for it by
sending a written explanation to the person you received the work
from. If you received the work on a physical medium, you must
return the medium with your written explanation. The person or entity
that provided you with the defective work may elect to provide a
replacement copy in lieu of a refund. If you received the work
electronically, the person or entity providing it to you may choose to
give you a second opportunity to receive the work electronically in
lieu of a refund. If the second copy is also defective, you may
demand a refund in writing without further opportunities to fix the
problem.

1.F.4. Except for the limited right of replacement or refund set forth in
paragraph 1.F.3, this work is provided to you ‘AS-IS’, WITH NO
OTHER WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.

1.F.5. Some states do not allow disclaimers of certain implied

warranties or the exclusion or limitation of certain types of damages.
If any disclaimer or limitation set forth in this agreement violates the
law of the state applicable to this agreement, the agreement shall be
interpreted to make the maximum disclaimer or limitation permitted
by the applicable state law. The invalidity or unenforceability of any
provision of this agreement shall not void the remaining provisions.
1.F.6. INDEMNITY - You agree to indemnify and hold the
Foundation, the trademark owner, any agent or employee of the
Foundation, anyone providing copies of Project Gutenberg™
electronic works in accordance with this agreement, and any
volunteers associated with the production, promotion and distribution
of Project Gutenberg™ electronic works, harmless from all liability,
costs and expenses, including legal fees, that arise directly or
indirectly from any of the following which you do or cause to occur:
(a) distribution of this or any Project Gutenberg™ work, (b)
alteration, modification, or additions or deletions to any Project
Gutenberg™ work, and (c) any Defect you cause.

Section 2. Information about the Mission of

Project Gutenberg™
Project Gutenberg™ is synonymous with the free distribution of
electronic works in formats readable by the widest variety of
computers including obsolete, old, middle-aged and new computers.
It exists because of the efforts of hundreds of volunteers and
donations from people in all walks of life.

Volunteers and financial support to provide volunteers with the

assistance they need are critical to reaching Project Gutenberg™’s
goals and ensuring that the Project Gutenberg™ collection will
remain freely available for generations to come. In 2001, the Project
Gutenberg Literary Archive Foundation was created to provide a
secure and permanent future for Project Gutenberg™ and future
generations. To learn more about the Project Gutenberg Literary
Archive Foundation and how your efforts and donations can help,
see Sections 3 and 4 and the Foundation information page at
www.gutenberg.org.

Section 3. Information about the Project

Gutenberg Literary Archive Foundation