"It's very possible," one of the others agreed. "A two-per-cent dividend is disappointing and we are paying this by cutting down the reserve fund. Then people know we have lost the use of our best boat for six months and may lose her for good. When we reduced our insurance, I urged that we were rash."
"We saved a good sum and economy was needful," Cartwright rejoined. "Insurance is expensive for our type of boats."
"The balance sheet looks bad. I'll admit I'd sooner not be accountable for a state of things like this," another remarked.
Cartwright smiled. The balance sheet looked better than it was, but Jordan had given him a useful lead. He knew his colleagues' weaknesses and how they might be worked upon.
"We are all accountable. I have consulted you frankly and you approved my plans."
Jordan gave him a rather doubtful look. "Anyhow, we must front an awkward situation. Suppose the shareholders ask for an investigation committee?"
"We must refuse," said Cartwright, with quiet firmness. "A frightened committee would probably urge a drastic re-construction scheme, the writing off much of our capital, and perhaps winding up the line. When rates are bad and cargo's scarce, one must take a low price for ships; our liabilities are large, and I imagine selling off would leave us much in debt—"
Cartwright paused. He saw his remarks carried weight and knew his co-directors. He would give them a few moments for thought before he finished his argument.
"Very well," he resumed. "Jordan declares he does not like to be accountable for an unsatisfactory balance sheet. I take it he would much less like to be made accountable for a bad bankruptcy! No doubt you sympathize with him?"
It was obvious that they did so and one said, "If I thought my occupying a seat on the Board would lead to this, I would sooner have given my shares away!"