“Well, Flint,” he went on at last, “it certainly seemed on the face of it to be a very useless accomplishment from the practical point of view; from the standpoint of mere cash, I mean. And yet, it still fascinated me. When I was quite a young man I determined to go to Canada and take up lumber. I was an orphan; there was nothing to keep me in this country, for I had no near relations; and I felt that it might do me good to cut loose from things here and go away into the woods for a time. I had enough capital to start in a small way; so I went. My ideas of the lumber-trade were vague at the time. If I had known what it was, I doubt if I should have touched it.
“At first sight, it looked a hopeless venture. I knew nothing of the trade; I was a youngster then; I’d had no training in financial operations. Failure seemed to be the only outcome; and the men on the spot laughed at me. I simply would not admit that I was beaten at the start; and everything drove me on against my better judgment. And I had one tremendous asset. I knew men.
“I knew men better than anyone else out there. I never made a mistake in my choice. I collected a few good men at the start to help me; and through them I gathered others almost as good. In a year I had made progress; in two years I was a success; and very soon I became somebody to reckon with. And through it all, Flint, I knew practically nothing about the actual trade. That was only a tool in my hands. What I dealt in was men and men’s minds. I could gauge a man’s capacity to a hair; and I picked my managers and foremen from the very best. They were glad to come to me, somehow. They felt I understood them; and no inefficients were comfortable with me. I never had to discharge them; they simply went of their own accord. I left everything to my staff, for I knew them thoroughly and gauged their capacities to a degree. And because I knew them I found the right place for each man; so that the work went forward with perfect smoothness and efficiency. Before I had been five years there I was on the road to being a rich man.”
His tone expressed no satisfaction. It was clear that I was not expected to admire his talents.
“Then, suddenly, came the discovery of platinum on a large scale in the neighbourhood of my district. You know what that meant; but you must remember that in those days it was a very different matter from now. It was like the Yukon gold rush in some of its aspects. The place swarmed with prospectors, mostly men of no education, whose main object was to get as much as they could in a hurry and then go elsewhere to spend the money the platinum brought them. Meanwhile, the platinum market was convulsed, and the price swayed to and fro from day to day. You must remember that in those times the thing was in the hands of a very few men; for the supply was limited. The Canadian mines overthrew the nicely-adjusted balance of the market and everything suffered in consequence; for the uses of platinum directly or indirectly spread over a very large field of human industry.”
That part of his history was more or less familiar to me, but I did not interrupt.
“One day it occurred to me that here in Canada we had a case parallel to the state of affairs in the Diamond Fields before the Kimberley amalgamation. Why not repeat Cecil Rhodes’ methods? Just as he regulated the price of diamonds, I could regulate the price of platinum if I could get control of the Canadian mines, for they were by far the most important in the world.
“Again, I knew nothing of platinum, just as I had known nothing of lumber; but I was able to pay for the best advice, to pay for secrecy as well; and to judge the experts, I had my knowledge of men to help me. I got the best men, I chose only men whom my insight enabled me to pick out; and I began to buy up claims quietly under their guidance. Here again psychology came in. I could tell at a glance when a man was a “quitter” and when a miner would refuse to sell. I could gauge almost to a sovereign the price that would prove the breaking-strain for any particular owner. I can’t tell you how it is done; it is partly inborn, perhaps, partly acquired; but I know that my knowledge is quite incommunicable.
“To make a long story short, I had acquired a very fair percentage of the valuable ground when suddenly I discovered that five other men had been struck with the same idea; and that prices were rising beyond anything I could hope to pay. It was a case for amalgamation; but I did not see my way through it quite so simply. Two of them I knew to be honest. One of them I could not trust, although he had hitherto never shown any signs of crookedness; but I knew his breaking-strain, and I knew also that the temptations to which he would be exposed under any amalgamation scheme would be too great for him. He had to be eliminated. The other two were weak men who could be dealt with easily enough. I needn’t give you the details. I approached the two honest men, combined with them, and with the joint capital of the three of us I bought out the third competitor. The other two we dealt with separately, buying out the one and taking the other in along with us. My partners trusted me with the negotiations, again because I knew men and their motives.
“And that was how I made my first million. Remember, I knew nothing about the materials I had handled in the making of it. I never took the slightest interest in the things themselves—and I took very little interest in the money either, for my tastes are simple. What did interest me was the psychology of the thing, the probing among the springs and levers of men’s minds, and the working out of all the complex strains and stresses which form the background of our reason and our emotions. The million was a mere by-product of the process.