Slosson, rendered inarticulate by mingled fury and fear, sat down. Armstrong's minute knowledge came as a shock; it terrorized him, appalled him. Other men about the table showed how deeply they, too, were disconcerted.
"Mr. Williams," proceeded Armstrong calmly, "I believe you are the treasurer of Food Products. I understand that you recently obtained licenses from some thirty states to market under the blue sky law an issue of preferred stock to the amount of half a million. Is this correct?"
"That—why, yes, it is!" stammered Ried Williams. "That's so, Armstrong. We've had no opportunity to market the stock, of course; arrangements haven't been made. In the present condition of industrial depression, it is very hard to market—"
"Thank you," said Armstrong incisively. "Gentlemen, I propose to find this ten thousand dollars which you need urgently, on the following terms: The assets of your company will be appraised, and within thirty days your company will be purchased upon an appraised and agreed basis, by Consolidated Securities, who will thereafter own the business. I will require, on behalf of the Armstrong Company, a contract to act as your fiscal agent and to market this stock issue of yours.
"As a preliminary to this purchase of your company, I demand the resignation of the entire management and directorate of Food Products, in favor of men to be nominated by Consolidated; this to take effect within three days. Mr. Deming will remain as president, but without power to interfere in the management of the business. None other of the present officers will remain. Should you refuse this proposal, there is no alternative."
Armstrong sat down.
A silence of dismayed consternation, of incredulity pervaded by anger, greeted his words. Deming was the only man who seemed to make no mental protest. Wearily passing a hand across his brow, Deming looked up.
"Reese, you don't know just how badly involved the company is—"
"I do—and I know something you don't know. Your books show a hundred and fifty thousand in assets which are either padded or outright false, but which Consolidated will accept. In justice to our own stockholders, we shall write off these worthless assets at once. We are prepared to face this loss without demur."
A moment's pause. This revelation struck absolute fear into some of those present. Then some one spoke up roughly: