This gentleman, possessed of considerable means, was a creditor of the estate to the amount of about sixteen thousand dollars. I found that he was disposed to buy the estate's interest in these properties and finally sold it to him for one hundred thousand dollars. An additional consideration was the securing through him an investment of half the amount, for a period of ten years at a guaranteed return of ten per cent per annum.
The Connecticut investment looked to me most unpromising. With extensive advertising it might be made a profitable business but there was no money for this; on the other hand, additional capital was needed at once to keep the concern alive. The note held by the Pennsylvania banker had been issued for the benefit of this business and must be paid. Unless new capital was found to keep the concern going, the ten thousand dollars guaranteed by Mr. Slater must be refunded at once. In other words, if the business was abandoned the estate would be immediately depleted to the extent of fourteen thousand seven hundred dollars.
A meeting was held at my office at which were present all the parties interested and also Mr. Wood. After a general discussion, in which Mr. Wood took part and expressed great confidence in the future success of the business, the gentleman who had invested the ten thousand dollars made a proposition that if Mr. Slater's friends would go in, for every dollar they subscribed he would subscribe two. If they would not do this, then he would call upon the estate to return him the ten thousand dollars.
Taking Mr. Wood aside, I said, "Charley, personally I don't like the investment, but to save the estate, if you will join me, I will make it." His reply was, "Walter, I cannot. If I could I would, for I believe it is a good thing, but I cannot go into any outside investment at present."
My decision as to my course was made before I had spoken to him, but I thought I would offer him a chance to share that investment with me, after telling him my poor opinion of it.
My heart was heavy with sorrow for the loss of my friend and for his family I felt the deepest sympathy. I believed then, as I believe to-day, that what I did was no more than he would have done for my loved ones under similar circumstances.
In that Connecticut concern I invested in all about five thousand dollars, which proved, as I thought very probably it would, practically a total loss. I waived my claim for nine thousand dollars on that overdrawn account and I personally paid those notes for eleven thousand dollars, one in June and the other in August following the death of my friend.
The only remaining asset to be disposed of was the recently acquired property for which stock had not been issued.
Mr. Wood was personally managing this, and he represented to me that it was in bad shape and that if anything was made out of it, it would be by his efforts and he did not want an estate for a partner.
He proposed to offset the estate's interest against the liability on the firm note held by the bank. I am not sure what that amounted to and have not the data at hand to ascertain, but think it was under five thousand dollars.