Harris laughed. "Well—hardly. I haven't met Gorham, but from what Brady tells me this isn't in his line."
"Then why do you give me the information? Frankly, I don't think it will help you with Mr. Gorham."
"He isn't going to know anything about it."
Covington smiled at the assurance Harris displayed. "I have not committed myself to protect you," he said.
"Quite right, quite right," assented Harris; "but I'll take my chances. Now I'm going to tell you the rest of it. As I said, Collins got the franchise from the Board of Aldermen. Brady is a director in the New York Street Railways Company, so he keeps Tammany all straight for us. Our company, being the largest, was to be used as the basis of the consolidation, and the original small roads were to turn themselves over to us for nine hundred and ninety-nine years, we to assume their bonded indebtedness, and, besides this, agreeing to pay from eight to eighteen per cent. dividends on their stock issues. After these payments our company was to keep the surplus earnings."
"And these surplus earnings would be enough to make it worth while?"
Harris laughed. "Sure," he replied; "the bond total of the smaller companies is about one hundred million dollars and the stock total only four million dollars. What's eight or even eighteen per cent. on four million dollars! In fact, the weak point is that even with the watering we intended to give the stock after we got it, the profits would still be so big that the public would notice."
"There should be no difficulty in fixing that," remarked Covington, sagely, amused by the frank confidence extended to him in spite of his warning.
"The only difficulty is in selecting the means," Harris continued. "Now, Brady and two other directors and I have secured options on three short lines which are essential integral parts of the system, and it was understood, before the Consolidated Companies came into the field, that the new company would purchase these from us at a handsome profit. In fact, we four are a majority in the Board of Directors. When Gorham first talked about it Brady laughed at him, for the thing seemed to be as good as pulled off; but the more Brady thought it over, the better he liked the idea. Our plan was to unload the stock on the dear public, letting the new company last as long as it would, and be satisfied with our profits; but Brady thinks that Gorham's scheme means success for the company as well, and naturally we would prefer to have a continuing profit rather than one which ceases when we deliver the goods. Lately Gorham has been talking more with the other directors and with some of the big stockholders, ignoring Brady; so I just called to make sure that we stood in on the profit on the short lines, as originally intended."
"How much profit would there be in the short lines for you four directors?" asked Covington, interested to see how far he could get the man to commit himself.