“We are mortgaged now to the limit, and our floating indebtedness is very large; on the face of things and according to the Colonel's very correct inside information, we're helpless; and unless the lumber-market stiffens very materially this year, by the time our hauling-contract with Pennington's road expires, we'll be back where we were yesterday before we sold the Giants. Pennington regards that hundred thousand as get-away money for us. So, all things considered, the Colonel, will be slow to suspect us of having an ace in the hole; but by jinks we have it, and we're going to play it.”
“No,” said Bryce, “we're going to let somebody else play it for us. The point you make—to wit, that we must remain absolutely in the background—is well taken.”
“Very well,” agreed the old man. “Now let us proceed to the next point. You must engage some reliable engineer to look over the proposed route of the road and give us an estimate of the cost of construction.”
“For the sake of argument we will consider that done, and that the estimate comes within the scope of the sum Gregory is willing to advance us.”
“Your third step, then, will be to incorporate a railroad company under the laws of the State of California.”
“I think I'll favour the fair State of New Jersey with our trade,” Bryce suggested dryly. “I notice that when Pennington bought out the Henderson interests and reorganized that property, he incorporated the Laguna Grande Lumber Company under the laws of the State of New Jersey, home of the trusts. There must be some advantage connected with such a course.”
“Have it your own way, boy. What's good enough for the Colonel is good enough for us. Now, then, you are going to incorporate a company to build a road twelve miles long—and a private road, at that. That would be a fatal step. Pennington would know somebody was going to build a logging-road, and regardless of who the builders were, he would have to fight them in self-protection. How are you going to cover your trail, my son?”
Bryce pondered. “I will, to begin, have a dummy board of directors. Also, my road cannot be private; it must be a common carrier, and that's where the shoe pinches. Common carriers are subject to the rules and regulations of the Railroad Commission.”
“They are wise and just rules,” commented the old man, “expensive to obey at times, but quite necessary. We can obey and still be happy. Objection overruled.”
“Well, then, since we must be a common carrier, we might as well carry our deception still further and incorporate for the purpose of building a road from Sequoia to Grant's Pass, Oregon, there to connect with the Southern Pacific.”