“Yes, I know the line. It runs down from Paradise to Total Wreck. But I didn’t know it had anything to do with S. & W. capital stock.”
“Didn’t, eh?” chuckled Tiffany. “Mr. De Reamer and Mr. Chambers own it, you know, and they’re directors in both lines. The old game was for them, as P. S. directors, to lease the short line to themselves as S. & W. directors. Then the S.& W. directors pay the P. S. directors—only they’re it both ways—in S. & W. stock. Don’t you see? And it’s only one of a dozen schemes. The old gentleman’s always ready for S. & W. buyers.”
Carhart smiled. The car lurched and shivered. Such air as came in through the open door and windows was tainted with the gases of the locomotive, and with the mingled odors of the densely packed laborers in the cars ahead.
“That’s really the only reason they’ve kept up the Paradise Southern—for there isn’t any business on the line. Well, as I was saying, the Commodore knew that the first thing he had to do was corner Mr. De Reamer, and keep him from creating stock. So he came down on him all at once, with a heap of injunctions and court orders. He did it thorough: restrained the S. & W. board from issuing any more stock, or from completing any of the transactions on hand, and temporarily suspended the old gentleman and Mr. Chambers, pending an investigation of their accounts, and ordered ’em to return to the treasury of the company the seventy thousand shares they created last year. There was a lot more, but that’s the gist of it. He did it through Waring and his other minority directors on the board. And right at the start, you see, when he began to buy, he made S. & W. stock so scarce that the price shot up.”
“Seems as if he had sewed up the S. & W. pretty tight,” observed Carhart.
“Didn’t it, though? But the Commodore didn’t know the old gentleman as well as he thought. Mr. De Reamer and Mr. Chambers got another judge to issue orders for them to do everything the Commodore’s judge forbid—tangled it all up so that everything they did or didn’t do, they’d be disobeying somebody, and leaving it for the judges to settle among themselves. Then they issued ten million dollars in convertible bonds to a dummy, representing themselves, turned ’em right into stock,—and tangled that transaction up so nobody in earth or heaven will ever know just exactly what was done,—and sold ‘most seventy thousand shares of it to Commodore Durfee before he had a glimmer of where it was coming from. And then it was too late for him to stop buying, so he had to take in the whole hundred thousand shares. I heard Mr. Chambers say that when the Commodore found ’em out, he was so mad he couldn’t talk,—stormed stormed around his office trying to curse Daniel De Reamer, but he couldn’t even swear intelligent.”
“So Mr. De Reamer beat him,” said Carhart.
“Beat him?—I wonder—”
“But that’s not all, surely. Commodore Durfee isn’t the man to swallow that.”
“He had to swallow it.—Oh, he did kick up some fuss, but it didn’t do him any good. His judge tried to jerk up our people for contempt, but they were warned and got out of Mr. De Reamer’s Broad Street office, and over into New Jersey with all the documents and money.” Tiffany’s good-humored eyes lighted up as his mind dwelt on the fight. Never was there a more loyal railroad man than this one. Daniel De Reamer was his king, and his king could do no wrong. “Not that they didn’t have some excitement getting away,” he continued. “They say,—mind, I don’t know this, but they say that Mr. De Reamer’s secretary, young Crittenden, crossed the ferry in a cab with four million five hundred thousand dollars in bills—just tied up rough in bundles so they could be thrown around. And there you are,—Commodore Durfee is paying for this extension that’s going to cut him out of the C. & S. C. through business. The money and papers are out of his reach. The judges are fighting among themselves, and will be doing well if they ever come to a settlement. And now if that ain’t pretty slick business, I’d like to know what the word ‘slick’ means.”