“Everything is merged, now,” said Harry.
“Not quite everything. I’ll tell you about a cunning little merger that I have in mind. These electric cabs that have increased so fast the last two or three years. You see them everywhere now. There are five small companies operating them. The damn things are so expensive, and they break down so often, the companies are all bankrupt, and only keep going by selling more stock all the time. You can always stick the public with a new thing like that. How about merging all the New York cab companies?”
“But if they’re all bankrupt . . . ?”
Joe wagged his hand. “What do I care about that? Think of the publicity! Everybody is interested in cabs. Cabs are romantic. Cabs are always associated with going on the loose. And horseless cabs have news value. Look here! First you go round to the different companies and make an agreement with each one. Oh, it ain’t much of an agreement. They simply agree to come in if the others do, see? Anybody will agree to that. But the five agreements make a good-looking bunch of documents to shake in a sucker’s face, see? He won’t read ’em. Then you incorporate. There’s regular men you can get for incorporators. I’m going to call it the Consolidated Cab Co. Con. Cab ’ll look good on the ticker. . . .”
“It’s a con, all right,” said Harry.
“By God! that’s right!” said Joe pulled up short. “A cheap josh might ruin us. Well, call it the Manhattan Cab Company, then. Man. Cab on the ticker. . . . Soon as you’re incorporated, you let loose your publicity. ‘Big Corporation formed to take over all New York cabs!’ That’s news, see? You don’t have to pay for it. It’s good for a front page spread. Then you place an order for a thousand new cabs. That’s another news story. Then you get an option on an abandoned car-barn, and announce a super-garage, see? And so on. You tell how wonderful the new service is going to be, and quote the reduced rates. The papers will eat it up.
“When you get the public appetite sharpened, you begin to put out your stock on the curb in a small way. You must have real nice engraved certificates; none of your filled-in stuff. Of course the wise guys know there is nothing behind it but hot air, but some of them will take a chance on it. They always do. Hundred dollar shares will sell for four or five or six on the curb. That’s enough when you can issue all you want. It’ll pay expenses. You hire a nice office—nothing showy; and engage a polite old geezer with white hair to take in the visitors’ cards. And so on. Then I’ll have Amasa Gore approached. . . .”
“Do you think for a moment you’re going to sting him?” said Harry.
“Nothing like it! He’ll be invited to share in the profits! . . . Suppose the stock is selling on the curb at six, see? He’ll be offered a thousand shares out of the treasury, or as much as he wants, at three, see? Then it will be announced that Amasa Gore is taking an active interest in Manhattan Cab, and will be elected as vice-president at the next directors’ meeting. The stock will jump to ten or twelve then, and he’ll sell out on the q.t. You know he does that all the time. He told me so himself.”
“And when it becomes known that he has sold?” said Harry.