XIV
The merger of the New York street railways, which occurred three weeks later, was Gorham's first chance to demonstrate to the public what the Consolidated Companies could accomplish in handling a great metropolitan transportation problem. The further he got into it, however, the more serious the problem became, and he had moved slowly to prevent any possible mistake. But now he was ready to proceed without further delay to complete his previous negotiations to secure the traction franchise for which Collins had bribed the Aldermen, and for a part interest in which Brady had intimidated Collins. It had been a nauseating piece of work even to Gorham, who had become only too familiar with the particular grade of business "morality" permeating those possessed of opportunity and fortified by responsibility. Covington was never able to reconcile Gorham's willingness to do business with men of this stamp, and the apparent personal stand which he took against both their practices and their methods.
"It is all perfectly consistent," Gorham assured him on more than one occasion. "It is often necessary to walk through filth and slime in order to reach high ground. It is a serious fault in our business system that these crimes can be committed, but the Consolidated Companies is not responsible for the system. To accomplish its own high ends, the Companies must possess itself of certain properties. These properties are at present in the hands of dishonest stewards, but these same dishonest stewards are legally authorized to sell them. The Companies buys, therefore, from those who have to sell, and its moral responsibility begins only upon its acquisition."
The transaction, large as it was, proved not a lengthy one. The franchise was formally made over to the Consolidated Companies, and the controlling stock in the New York Street Railways Company changed ownership. Properly certified checks for the franchise and for the stock were duly delivered into Brady's hands, and the business of the conference seemed to be completely settled to the satisfaction of all concerned. Still, Mr. Gorham and those who had come with him showed no disposition to depart.
"There ain't anything more, is there?" asked Brady, eager to terminate the conference, "except to congratulate the Consolidated Companies on acquirin' a damned valuable property."
"Only a little more," Gorham replied, quietly. "I have asked my friends, Mr. Littleton and Mr. Graham, to be present this morning, as I found that they, like the other and smaller stockholders, had very little knowledge of how their affairs were being handled for them by their directors. They have received their dividends regularly and promptly and were satisfied."
"What in hell is this a preamble to?" Brady whispered to Harris. "My nerves ain't quiet yet, even with the cash in my jeans."
But Gorham was still talking in the same low, quiet voice.
"These gentlemen," he was saying, "have honored the Consolidated Companies by becoming stockholders, so I thought it might be illuminating for them to be present at this conference, which will serve, I believe, as well as any to demonstrate the methods which the Consolidated Companies is obliged to meet and those which it proposes to employ."
"I don't know that this interests me much," interrupted Brady, ill-humoredly. "Our business is done, ain't it?"
"Not quite," Gorham continued, scarcely heeding the break. "On behalf of the Consolidated Companies, and exercising the rights vested in me by my Board of Directors, I have just handed to you, Mr. Brady, a certified check for one hundred thousand dollars. Why it should go to you instead of to Mr. Collins you probably know better than I—it is enough that you have his authority to receive it. I happen to be aware that this check represents fifty thousand dollars more than Mr. Collins paid to get the franchise through the Board of Aldermen, so it is fair to assume that the price of twelve city fathers is the same as two private citizens."
Harris found some difficulty in restraining Brady at this point, but their joint uncertainty regarding Gorham's ultimate purpose resulted in preserving silence.
"In addition to the check for the franchise," he continued, "I have also handed to Mr. Brady other certified checks for some twenty million dollars beyond the par value of the stocks of the various companies included in the merger which has just been consummated."
"What are you kickin' about?" demanded Brady. "Ain't that the price you agreed to?"
"It is; and I consider the properties worth the price or I should not have agreed to it."
"The stockholders ought to be satisfied, hadn't they? They're gettin' good returns."
"Yes, they ought to be satisfied, and I have no doubt they are."
"Then what's the point, friend—what's all this palaver?"
"I was just coming to that. There are three short lines which are not mentioned in that contract. May I ask if there was any special reason for their omission?"
"That's our business," snarled Brady.
"I know it is," Gorham replied, sharply, "and I'm going to ask you to attend to it right now."
"We'll attend to it when we get good and ready." Brady squared himself for the issue. "If you was as smart as you think you are, you'd have thought of those three lines before you cashed up."
"I didn't overlook them," Gorham replied. "I can buy them cheaper now."
Brady was amused and showed his appreciation of the speaker's humor in his sidelong glance at Harris.
"You think so, do you?" he calmed himself enough to reply. "I presume you've settled on the price you're goin' to pay?"
"I have," answered Gorham; "but I'm not quite ready to quote it. The stockholders of these small companies understood that you were purchasing their stock to be merged with the New York Street Railways Company, didn't they?"
"It don't make a damned bit of difference what they thought. We paid 'em their price."
"And the stockholders of the New York Street Railways Company thought you were buying this stock to be merged with theirs, didn't they?"
"We used our own money to buy that stock. You can't find a thing about it that ain't straight."
"Very good. Now I'll name my price for the three lines. The Consolidated
Companies will pay you fifty thousand dollars for them."
"Fifty thousand!" gasped Brady. "Why, we paid two hundred thousand."
"Thank you. I had wondered what you did pay for them, and this information is no doubt authentic. The stockholders made a better thing out of it than you will."
"But we won't sell at anything like that figure."
"Oh, yes, you will if you sell at all," Gorham rejoined. "One method by which the Consolidated Companies has succeeded is that of taking the public into its confidence whenever there is need of it. To-morrow we shall announce the birth of the Manhattan Traction Company, explaining its inception and its intentions. We shall show that, although we have paid an enormous price for the purchase of the properties, we shall capitalize at one-half the amount originally planned by those who would have carried through the merger if our Companies had not stepped in. We shall announce an increase of transfer privileges and a reduction of fares. We shall guarantee better equipment and better service. We shall also carefully explain that one of the reasons we can do this is that the company will be run in the interests of the public and the stockholders instead of in the interests of a few individuals; and we shall quote, in proof of this, that we purchased the three lines referred to for fifty thousand dollars when it was originally planned to have them cost the Companies something over two millions."
"They will still cost the Companies 'something over two millions,'" shouted Brady, "and the public be damned."
"Our slogan is, 'The public be pleased,'" smiled Gorham. "The offer of the Consolidated Companies will hold for twenty-four hours only," he continued, rising. "The franchise, you will perhaps remember, grants full privileges for the construction of further subway connections. Under these circumstances, we do not urge you to accept our offer—we merely invite your consideration. Now, gentlemen"—Gorham placed a peculiar emphasis on the word—"I believe our business is completed. The time limit on our offer will expire at noon to-morrow."
Covington was an interested spectator throughout the conference, and Gorham's supreme command of the situation won from him his silent but profound admiration. He rejoiced that this force was directed against others rather than himself, and he realized more than ever the importance of taking no chances of coming into conflict with this man who swept everything before him. He had enjoyed watching the faces of Brady and Harris as the game progressed, but his enjoyment encouraged him to remain too long after the departure of the others. Harris was cowed and frightened and seemed almost ready to break into tears, but Brady assumed an attitude which fitted him singularly well. It was not dismay, it was not chagrin—he was angry to the point of bursting. To Brady the one sin more flagrant than all others in the category of crime was failure, and in order to relieve his own conscience from the pollution of having failed he saw fit to attribute the entire responsibility to Covington.
"You damned skunk!" he cried, "you've sold us out after promisin' not to, that's what you've done! But I'll get back at you if it costs me ten years in Sing Sing!"
Covington for a second time went directly from Brady's office to his own, but the former complacency was replaced by a vague apprehension. A threat from Brady was worthy of consideration. Among the personal mail which he found upon his desk was a plain envelope, which, for some unknown reason, attracted his attention enough to cause him to open it before the one which lay on top. The signature interested him even more, particularly at the present moment, with his thoughts filled with what had recently passed. It is a precaution of the experienced mariner to inspect his lifeboats with especial care as he passes by a dangerous reef. The letter read:
"The divorce papers prove to be shockingly irregular, and there are developments in the early life. Please call at your convenience."
Covington crushed the paper in his hand and turned toward his desk with a changed expression. He smiled as he looked forward into space—the first smile which had lighted up his face for several days. Then he brought his clenched fist down hard on the desk for no apparent reason and muttered something to himself.