"No such project can be absolutely assured of success at the outset," he asserted. "It is a great venture, and the men who get in on the ground floor are certain to protect themselves from loss in any case."
Merriwell frowned, a puzzled expression on his face.
"How is that possible?" he asked. "If we are assembled here to organize and build that railroad, how is it possible for us to be protected against loss if the railroad does not prove a paying piece of property?"
A cold smile flitted across the face of Jerome.
"I knew you were inexperienced. Young man, there are several ways of doing it; but undoubtedly the simplest way is to organize a stock company and sell stock to the public. Let the public in general build the railroad, while we reap the profits, if there are any."
"But if the public owns the stock, I fail to see how we can reap the profits if the railroad is a financial success."
Jerome looked with something like pity at the questioning youth.
"It is a simple matter. I will explain it in a few words. To begin with, it is not necessary for us to invest one dollar of our own money in the scheme."
"What? And still we may hold an interest in it?"
"The controlling interest, Mr. Merriwell."