"But it makes no allowance for rate-cutting by the big men on the present routes. Further, if the Canadian Government are not with you on this scheme, they'll be against you. There are a dozen ways in which you might be frozen out. In that case the Hudson Bay Route will be the biggest fiasco that ever happened."
"Nothing I've yet touched has been a fiasco," answered Lars Larssen with a grim tightening of jaw. "Leave that end to me.... Now your end is to get the money."
"From the English and Canadian public."
"Naturally."
"You came to me because the English and Canadian public are prejudiced against 'Yankee propositions.' You yourself couldn't float it in England. On the other hand, I'm Canadian-born, and my name carries weight both in England and in Canada."
"With the public," added Larssen, and there was a subtle emphasis on the word "public," which carried a world of hidden meaning. Matheson had been associated with other schemes which had a bad odour in the nostrils of City men.
"With the public who provide the capital," answered the financier, and his emphasis was on the word "capital." He continued. "With myself and Sir Francis Letchmere and a few titled dummies on the Board—which is what you want from me—the public will tumble over one another to take up stock."
"Agreed."
"The capitalization you propose is £5,000,000 in Ordinary £1 Shares, which the public will mostly take up. Also £200,000 in Deferred Shares of the nominal value of one shilling each, which are to be allotted to yourself as vendor. That gives you four million votes out of a total of nine million, and for practical purposes means control."
"The Deferred Shares are not to get a cent of dividend until a fifteen per cent. dividend is paid on the Ordinary Shares. That's the squarest deal for the public that ever was," retorted Larssen.