The Speculations of Jack Steele/Chapter 3

HERE now projects across these pages the sinister shadow of a man. He was one seldom seen except by his immediate business associates, and yet seldom has a newspaper been issued that did not contain his name. This was Peter Berrington, the greatest financial brain the world had hitherto produced—the modern embodiment of Mammon. In early life there had occurred to him the obvious proposition that if any one man could control the manufacture and sale of some simple article in universal use, he would secure a fortune greater than that of all the monarchs on earth put together. Peter Berrington chose soap as his medium, and the world-renowned trust called Amalgamated Soap had been the outcome. His methods were as simple as his products. He offered what he considered a fair price to a rival for his business,and if that rival refused, Peter crushed him by a competition the other could not withstand. Berrington seemed to act on one fixed rule in life, which was to avoid the law courts wherever possible; yet, nevertheless, he was haled to the bar on more than one occasion, but invariably he escaped unscathed, without a stain on his character, as if the soap he supplied to the universe had removed even the suspicion of dishonesty from himself. It pleases the world to buy soap under different titles, but it is all manufactured by the same company. Berrington's air-tight monopoly finally produced an annual income in excess of the fortune any man on earth possessed twenty-five years ago. With this ever-increasing income he bought banks, first in New York, then in each other great city, and finally in the larger towns. He purchased trust companies and insurance associations. He bought railways and steamship lines, also city councils and State legislators, judges, juries, and senators. He was now the guardian and manipulator of the people's savings, and his banks had the handling of all the money the United States Government possessed. Magazines printed vivid articles exhibiting the dark points of his career. Peter never entered a protest. Powerful newspapers hurled vigorous denunciations against him, but Peter never replied. The few who knew him in private life described him as a quiet, timorous man, apparently without opinions of his own, who was withal deeply religious. Yet all the histories printed of him never contained the record of any man who had defeated him.

It was but natural, then, that the Chicago papers should make much of Jack Steele's encounter with this giant of the financial world. Jack had met him on the battle-ground of the Chicago wheat-pit, and had routed him, horse, foot, and dragoons. Steele's exposure of the real wheat situation of the country had been so sudden that the barrels of money which Peter Berrington kept in readiness to buy the whole crop, when he had hammered the price low enough, remained unopened and unexpended.

Berrington would have made billions at one fell swoop had not this man Steele blindly, quite unwittingly, stumbled across his path and tripped him up. The newspapers exaggeratingly credited Steele with making many more millions than he had actually secured, and it was only when the anxious three days of panic had ended that Steele himself realised what a tremendous fortune had been within his grasp, if he had only had the money to manipulate the situation, or even if he had risked all he actually possessed. Indeed, Steele perceived when too late that he had blundered into the biggest deal ever projected upon this earth, and while he undoubtedly spoiled the game for its inaugurators, he did not himself profit nearly as much as might have been the case. He began to doubt his own judgment, and the uneasy thought came to him that if he had made terms that night with Nicholson in the office of the Press Alliance, he might have made from ten to twenty millions instead of three or four. Yet he was consoled by the belief that Peter would have been true to no bargain he might have made, and in the end would have robbed him of the agreed share. In spite of his religious reputation, Peter was accredited with no qualms of conscience in a business deal.

The newspapers re-recited Steele's brief besting of Rockervelt, which was now utterly eclipsed by his victory over Berrington, and they jocularly advised New York rustics to stay at home and not venture into a real city like Chicago. In face of all this ridicule, and in spite of accusations and denunciations levelled against him for his efforts to mislead a free and incorruptible Press, Peter Berrington made no sign, and New York silently swallowed up the mysterious Nicholson. A few wiseacres in Chicago shook their heads as they read the laudations of Mr. John Steele, saying the young man was not yet done with Peter Berrington; and later events proved the correctness of their surmise.

Steele himself was not particularly frightened at the outlook, but neither was he extremely pleased. He was sorry that Fate had brought him into opposition with Peter Berrington, but he had learned that fact too late to withdraw. When he met Nicholson, and learned for the first time that the Great Bear was Amalgamated Soap, he was already committed too deeply for half measures to aid him. He had acted at once, decisively and successfully, and would have been relieved had he merely got out even. It was his usual luck that he came away with large profits, and for that he thanked Fate, because he knew his enemy was ruthless. Success did not turn his head in the least. He was a cool thinker and detested all this newspaper notoriety. He knew fortunes were not made by the beating of drums, and he kept very quiet until the hubbub was over, refusing to see reporters or say anything about the matter, save to his most intimate friends. He hoped that some fresh sensation would speedily drive his name from the columns of the Press, and until that time came he sought shelter, doing nothing. He comforted himself with the thought that Peter Berrington, while merciless to an opponent, was merciless merely to acquire that opponent's business. He believed the great man to be entirely without sentiment, and therefore surmised he would not seek revenge when a deal was once completed and done with. Nevertheless, he resolved to keep his weather eye open, which was wise.

The new celebrity he had attained brought all sorts and conditions of men to his offices. He began to think that all the wild-cat schemes in the country were placed before him. Letters poured in from almost every part of the world, and he was offered gold-mines, patents, railways, steamship lines, industrial enterprises, and what not. He took larger offices and protected himself from intrusion. He became a much more difficult man to see than even the President of the United States—or perhaps it would be more fitting to say than Mr. Peter Berrington, for Peter allowed no outsider to penetrate to his den.

There was one man, however, who succeeded in reaching the inner room of Jack Steele, and his card bore the name of William Metcalfe. This card had been preceded, however, by some excellent letters of introduction, and so John Steele made an appointment with him. He was favourably impressed with the appearance of Mr. Metcalfe, who did not look like a city man, but rather a cross between a bluff farmer and a shrewd manufacturer—which, indeed, he turned out to be. After seating himself, William Metcalfe plunged directly into the heart of his business, without preliminary, which also pleased John Steele.

"I know your time is valuable," he said; "so is mine. I have undertaken an operation that proves too big for me, and I want you to help me carry it out."

"I have three rules, Mr. Metcalfe, which I rarely break. In the first place, I never finance anything. If, for instance, you wish to build a factory, or to exploit a patent, it is useless coming to me expecting help."

"I have no factory to build and no patent to exploit," said Metcalfe.

"My second rule is that the man with whom I go in, must be prepared to put up dollar for dollar with me in hard cash, and not in future prospects."

"I am prepared to do that," rejoined Metcalfe.

"My third rule is that I must see for myself and understand the business offered. I do not give a hang for the opinions of experts. If the proposal is complicated beyond my comprehension, I don't go in."

"Quite right," commended Metcalfe. "None of your three rules will be in the least infringed by me. Do you know anything of the beet-sugar business?"

"I do not."

"Did you ever hear of Bradley, of Bay City?"

"I did not,"

"Well, what Bradley accomplished may be understood by a ten-year-old boy. He went over to Germany, and came back with some seeds in his handbag, which seeds he planted. From those seeds have grown the beetroot industry of Michigan. There are now factories in that State capitalised at ten millions of dollars. There are nearly a hundred thousand acres of Michigan land in beets. Ten years ago I hadn't a penny; to-day I think I could put as much money on the table as yon, and all on account of those seeds Bradley brought from Germany. I own three big factories in Michigan, and four others in States further west. You hinted that you didn't wish to deal in possibilities; but, if you will forgive me for saying it, there is no industry in this country at the present moment which offers greater promise that the manufacture of sugar out of beetroot."

"I daresay," said Steele indifferently. "I am quite willing to applaud the excellent Bradley, who made millions of beets grow where none had grown before. I admire such a man exceedingly, even though unprepared to follow in his steps. You see, Mr. Metcalfe, I am not a useful citizen like yourself and Mr. Bradley. I simply make a raid at some project, filch what I can, and get back into my den. As I told you, I am not building factories, not even those that squeeze the succulent beet. My motto is large profits and quick returns."

"I am here to offer you immense profits and immediate returns. I understand the sugar business down to the ground, and have realised its possibilities for several years past. Therefore I determined to combine all the big sugar factories at present existing in the United States. Rapidly as I myself have acquired wealth, the sugar business has been growing too quickly for me, and at the beginning of this year I saw I had to put my project into action, or else interest a body of financiers, which I did not wish to do, for my ambition is to control the sugar-beet industry of the United States, and ultimately of the world."

"Ah, you hope to become a sort of sweetened Peter Berrington," said Steele, with a smile, and he thought of this remark somewhat grimly later on.

"Exactly," said Metcalfe seriously, without duplicating the other's smile. "As I told you, I own outright seven factories. I secured options on all the rest, and in each case have paid down a forfeit, for I shall be compelled to buy outright within the next month if I am to hold them. Now, the total cost of all the factories in the States at present, built or building, comes to almost double the capital I possess. If you will put up dollar for dollar with me, we will purchase these factories outright. Then we will form the whole into a gigantic company. When this is done, you can withdraw your money, and probably as much more as you put in. If the public do not subscribe the full amount we demand, I will guarantee to relieve you at par of all the shares that may fall to your portion."

"How can you guarantee to do that when at the present moment you have not got more than half the necessary capital for forming the company?"

"I can guarantee it because I am certain the public will subscribe; but even if they do not, the moment the company is formed there is a bank in this city willing to advance me cash to the amount of three-quarters of our capital. Therefore I can guarantee that you will double your money within a month—that is, within a month of your putting it in. You say you care nothing for the opinions of experts; neither do I, therefore I propose that you become my guest for two weeks, and visit most of the factories now under my control. You can see the books and balance-sheets of my own concerns, and from what you learn under my tuition you will be able to form a very good estimate of how the other factories are placed."

"I understand very little about company promoting," said Steele dubiously.

"I understood just as little a short time since, but it was necessary that I should learn, and I have learnt. Besides, I got letters of introduction to Farwell Brothers, the most substantial and honest firm connected with that business in Chicago. The same people introduced me to them that introduced me to you. Suppose, for instance, the combined factories were to cost us ten million dollars. With such prospects as there are ahead, we would be quite justified in forming a company for twenty millions. If the public subscribed only half of what we demanded, we would have our factories for nothing, and still control the combination."

"How about your working capital?"

"We don't need working capital. Every factory is making money."

"Well, candidly, Mr. Metcalfe, that project seems too easy and simple to be entirely feasible. There must be something lying in wait to wreck it."

"Nothing so far as I can see," said Metcalfe confidently. "What if the public do not subscribe a penny?"

"Oh, I've looked out for that. When I got the options, there was, of course, no longer any need for keeping the affair secret, and I have already been promised subscriptions to the new company to the extent of one-third the proposed capital of twenty millions. That one-third will be subscribed in Michigan and Wisconsin alone, without touching the State of Illinois or the capitalists of Chicago."

"Very well, Mr. Metcalfe, you appear to have thought of everything. I'll accept your invitation, so long as it binds me to nothing, and will go wherever you lead me, beginning, let us say, with one of your own factories. I understand figures, and I shall want to see the books and make a somewhat thorough search into the income of at least the principal factories. You have no objection to that, I suppose?"

"No, not in the least. Big as our capitalisation will be, this is a thoroughly sound industrial proposition, and before five years are over I am certain that we will be justified in doubling our normal capital if we wish to do so, and paying a mighty good percentage on the same. Of course, I stand by the business. I suppose you wish to pull out as quickly as possible."

"Yes, that's the idea. I hope you have not offered extravagant prices for these factories?"

"That's just the point. I have not. You see, as I told you, I am thoroughly acquainted with the business. A capitalist from New York or Chicago might have been deluded, but they cannot delude a practical man like myself. Indeed, to convince you of the confidence that others show in the proposed company, I may tell you that the capital promised comes largely from the present owners of those factories, who appreciate the economies to be inaugurated by combination, and who in some instances are putting back into the new company the entire amount I shall pay them."

"Do they know you intend to capitalise for double what the property has cost?"

"Naturally not, Mr. Steele. Of course they understand I am not in this business entirely for my health; but apart from that, anyone conversant with the progress the beet industry has made during the last four or five years is well aware that the developments of the next five or six will be something enormous."

"All right, Mr. Metcalfe. I'm ready to go with you to-morrow, if that is not too soon for you."

John Steele's visits to the beet-sugar district more than corroborated all that Mr. Metcalfe had told him. Quietly he studied his host and guide during the excursion, and the more he saw of him the better he liked him. If there was an honest man in the country, that man appeared to be William Metcalfe, in spite of his determination to capitalise the properties for double what he paid for them. John's own conscience was not supersensitive on this point, and his private opinion would have been that a man was a fool not to take all he could get. So, before they returned to Chicago, he had quite made up his mind to become a partner with William Metcalfe in forming the Consolidated Beet Sugar Company. Metcalfe having no domicile in Chicago, the headquarters of the new trust was the private office of John Steele and the apartments adjoining. These adjoining apartments were occupied by Mr. William Metcalfe, upon whose shoulders naturally fell the bulk of the work. It was he who saw the lawyers to whom he had been introduced; who negotiated with the bank and made such outside arrangements as were necessary in the launching of so gigantic a scheme. Steele was more and more impressed with the business capacity of his new partner as the days went on, and he congratulated himself on being in conjunction with so capable a man. Notwithstanding his increasing confidence, he never for a moment relaxed his vigilance, nor was anything done without his sanction and approval, and he allowed no obscure point to pass without thoroughly mastering it. Towards the conclusion of preliminary arrangements, he saw with some apprehension that this project would involve every penny of capital he possessed, and this, of course, was cause for anxiety, though not for alarm, because all the omens were favourable. Yet his vigilance might have been of little avail had not Chance played into his hands. Steele was constantly in the office; Metcalfe was frequently called elsewhere, and in one of his absences a telegraph-boy brought in a message.

"Any answer?" asked the lad.

Steele tore open the envelope and gazed at the telegram for a moment, uncomprehending. It was in cipher. Then he looked at the envelope and saw it was addressed to his partner.

"No answer," said Steele to the boy; "but look here, my lad, do you want to earn fifty cents?"

"Sure," replied the messenger.

"Very well, get me another envelope from the nearest telegraph-office. I see this is for my partner, not for me."

He threw half-a-dollar on the table, which the boy grasped and left.

"Be as quick as you can," cried Steele, before he reached the door.

The cipher telegram was a long one, but speedily Steele wrote it out on a sheet of paper. When the boy returned with the envelope, Steele placed the telegram within it, sealed it, and addressed it in imitation of the telegraphic clerk. Then he walked into the adjoining office and placed the resealed telegram on Mr. Metcalfe's desk.

"Now, why does honest William Metcalfe receive a long telegram in cipher from New York," said Steele to himself, knitting his brows. "He has never even mentioned New York to me, yet he is in secret communication with someone there. Lord! one can never tell when the biggest sort of crank will not suddenly loom up as the most useful man in the world!" cried Steele, as he suddenly bethought himself of Billy Brooks, a jocular person who bored all Chicago with his knowledge of cipher, claiming there was nothing he couldn't unravel except the Knock Alphabet cipher of the Russian Nihilists. And Billy had his office in the fifteenth storey of the adjoining block. Steele shoved the copy of the telegram in his trousers pocket, put on his silk hat, went down one elevator, and up another, in almost less time than it takes to tell about it.

"Say, Billy, I've got a cipher here that you can't decode, and I've got twenty dollars to bet on it."

"Let's see your cipher," cried Billy, his eyes sparkling, "All ciphers fall into seven distinct classes. These classes are then sub-divided into"

"Yes, I know, I know!" cried Steele impatiently. "Here's the message."

Billy glanced at it.

"Hand over your twenty dollars, Steele."

"What! you haven't solved it already?"

"No, but I see at a glance it falls into division three and into sub-division nineteen. I'll decode it within an hour. Shall I bring it over to your office?"

"No, Billy, I'll sit right down here, even if you are six hours at it. I herewith place two ten-dollar bills on your desk, and if this proves important, which it may or may not, I'll multiply those bills by ten; and for that number of days, at least, I shall require the utmost secrecy."

"All right, John, sit down and keep quiet, and there's the latest evening paper."

There was silence in the room as Billy opened a bookcase and took down one bulky tome, two medium-sized books, and a number of smaller volumes that looked like dictionaries. Turning to his desk, he wrote the message in a variety of different ways, on as many sheets of paper. For nearly three-quarters of an hour no sound was heard but the scratching of a pen now and then, and the rustle of leaves. Then the stillness was broken by a war-whoop.

"Here you are, Jack, my boy; and I'll take my Bible oath on its accuracy. Couldn't be such a series of coincidences as to run so smoothly otherwise.

Billy jubilantly grasped the currency and shoved it into his pocket, handing the sheet of paper to Steele, who read—

"I shall occupy room one hundred and fifty at the Grand Pacific Hotel on Thursday, the twenty-seventh, at eleven a.m. Do not ask for me at the office, nor take the elevator, but come up the stair, and rap twice. Wait two minutes, and rap a third time. Bring all documents with you."

There was no signature.

"Billy," said Steele rather seriously, "we will now burn all your figuring, if you don't mind, and then I wish you to obliterate this from your memory. I cannot tell until after Thursday whether it is important or not. I think, however, if you keep mum, this will be worth an extra two hundred dollars to you."

"You can depend on me, Jack. We're not all making money as fast as you are. Of course, I know that financial ciphers are usually important. Here's the débris; burn it on the oilcloth, near the register."

Steele's investigation of the Grand Pacific Hotel floor occupied by room one hundred and fifty showed him that this apartment was well chosen, for neither of the rooms on either side had a communicating door. However, he engaged room one hundred and forty-nine, on the opposite side of the hall, and before ten o'clock on the twenty-seventh he took up his position inside that apartment. When eleven o'clock approached, he locked his door, shoved the table against it, stood thereon, and looked through the transom into the hall. He darkened his own window so that he could not be observed by anyone glancing up outside. He heard the first knock, then cautiously peered down and recognised William Metcalfe standing there, facing the opposite door, with a bundle under his arm. After the third knock, Metcalfe entered, but opened the door so slightly that Steele could see nothing within, nor did he hear any greeting voice. A full hour passed with not a sound from the closed room, then Metcalfe came out again, with the bundle still under his arm, and walked quietly away, leaving his partner on watch at the transom. Time goes slowly for a man on tip-toe with eyes strained, but at last his patience was rewarded. The door opposite opened, and the head of Nicholson appeared. He glanced quickly up and down the hall, and as the way was apparently clear, stepped out and vanished. John Steele came down from the table, drew aside the curtains, and let the light into the darkened room. He poured a glass of water from the carafe into a tumbler, swallowed the liquid at a gulp, then sank into the armchair beside the bed. He gave utterance to an uneasy laugh, then muttered a sentence which might be called unexpected—

"Billy Brooks, my boy, you'll get your two hundred dollars!"

Drawing a deep breath, he then concentrated his mind on the crisis with which he was confronted. Metcalfe was undoubtedly the owner of the sugar factories, and was, as he had said, a well-known business man in Michigan; but, nevertheless, here was undoubted proof that he was a minion of Amalgamated Soap, a mere pawn in the hands of Peter Berrington and his strong colleague, Nicholson. Every penny John Steele possessed was sunk in Consolidated Sugar, and that these men meant to ruin him he had not the slightest doubt. The question was: How could they do it? Even if Metcalfe's books had been false, even if a hundred per cent. too much had been paid for the factories, there would still be something left for him out of the wreck. Yet from the moment he saw the face of Nicholson at that door, he knew Amalgamated Soap had determined to strip him of every sou he possessed. The first obvious suggestion that occurred to him was that here was the occasion for consulting a first-class lawyer; yet what could a lawyer do for him? He had no money to fight. The more he thought of the situation, the worse it appeared. No doubt Farwell Brothers were employés of Amalgamated Soap. No doubt the bank in which their funds were deposited belonged to the same all-embracing combination. There were a hundred perfectly legal methods by which the amount lodged there could be tied up, while, if he appealed to the law, the expense would be tremendous, and he might be dragged from court to court; new trial could follow new trial, and appeal tread on the heels of appeal until his millions had vanished into thin air. He was as entirely in the hands of Amalgamated Soap as if he had been tied in a bundle and presented to that celebrated company. Terror was imported into the situation by his uncertainty as to what method these financial buccaneers would adopt. Yet at that distressful moment his mind wandered to the comic opera of the "Mikado," and a smile came to his lips. Would it be long and lingering, with boiling oil at the end of it, or would it be the short, sharp shock of the executioner's stroke? His resentment turned more against the apparently honest Metcalfe than towards even Nicholson or Peter Berrington. He would have liked to throttle that man, but he knew that, whatever the outcome, he must retain his grip on himself and present an impassive exterior to his colleague and the world.

Next morning, John Steele met his partner as usual with a smile on his face.

"Well, Metcalfe, how's things going?"

"Oh, everything's coming our way," said Metcalfe. "This thing will be done so easy you will wonder you ever doubted its success."

"Well, I hope so, I hope so," replied Steele, the possible double meaning of his partner's phrase striking him like a blow in the face; but the smile never wavered.

The company had already been technically formed—that is to say, a number of clerks in Steele's office, together with the brothers Farwell, had constituted themselves the Consolidated Beet Sugar Company, with various powers duly set forth, organised under the laws of the State of New Jersey; and when officers were selected, the beet sugar factories were bought by this company at just double the price Steele and Metcalfe had paid for them. Then the officials resigned in a body, when cheques had been passed and everything done with beautiful legality, while Steele and Metcalfe and their nominees took their places at the board. It was arranged that there should be seven directors. Steele was to nominate two, and Metcalfe was to nominate two, while they were to agree mutually on the chairman. Metcalfe had proposed that the elder Farwell should be chairman, and he nominated the younger as his colleague on the board. Farwell, who knew every intricacy of company law, was accepted by Steele, and there was still one nomination open to Metcalfe, which name he excused himself at this time from proposing, as he was not well enough acquainted with business men in Chicago to fill the place at the moment. He even intimated that he was willing to accept a nominee of Steele's, and this seemingly friendly suggestion had prevented any suspicion of the board being packed against him arising in Jack Steele's mind. He remembered this now with bitterness, when it was too late for remedy. Steele and his two colleagues could tie the vote of Metcalfe and his colleagues, but the chairman would have the casting voice. Since he had seen the determined face of Nicholson in the corridor of the Grand Pacific, he had no doubt that the Farwell brothers were the mere minions of Peter Berrington.

At last the trap laid for the public was sprung, and the public, as usual, was nipped. The success of the flotation was immediate, although applications did not come within a million of the sum asked for. After the flotation, Metcalfe's manner changed perceptibly. Steele watched him as a cat watches a mouse, and saw that he was now perturbed and apparently dissatisfied.

"Why!" cried Steele to him, the morning after the figures were known to them, "you don't seem nearly so happy as I expected. You surely did not look for the shares to be subscribed twice over?"

"No," said Metcalfe gloomily, "but the amount that has been subscribed shows what vitality there was in the scheme."

"Vitality!" cried Steele. "Why, bless my soul! you never doubted it, did you?"

"Oh, no, no," said Metcalfe hastily. "No. I told you we were dead sure of a third, and the actual subscriptions have more than justified my forecast."

"They have, indeed!" cried Steele enthusiastically. "I tell you what it is, Metcalfe, you're one of the first financiers of this country."

"Oh, nonsense!" cried Metcalfe, in no way cheered by the compliment.

"It isn't nonsense," said the genial Steele. "You've taken lessons from a first-rate master, for I look on Nicholson as one of the best men in the business."

When John Steele had plumped a similar pointed remark at Nicholson, not the slightest change of expression had disturbed that individual's calm visage. William Metcalfe kept his countenance under less perfect self-command. Steele's smile was gentle and friendly, but his keen eyes missed no note of the other's face. He watched a ruddy flush mount into his partner's cheeks. He noticed the embarrassed hesitation that accompanied his utterance.

"Mr. Nicholson! Ah, yes, certainly, certainly. He's not a friend of mine, of course, only a slight and recent acquaintance. Not the sort of man, Nicholson, to form friendships easily."

"Really?" asked Steele. "I met him only once, but he seemed rather genial."

"A great business man, a great business man," hurriedly muttered Metcalfe, obviously trying to get himself under control once more, playing for time, and not quite knowing what he was saying.

"So I have been informed," remarked Steele with easy carelessness. "One of the Amalgamated Soap group, I understand."

"Quite so," rejoined Metcalfe, his own man once more. "You see, Mr. Steele, I thought it would strengthen us tremendously if I could get a man like Nicholson to become interested in our project. The mere rumour that Amalgamated Soap was behind us would have been worth millions to us at the present juncture."

"I quite agree with you, Metcalfe. Amalgamated Soap is a name to conjure with. The public worship success, and there you have success in its most highly developed form. Why didn't you let me know? I might have been of some assistance to you."

"Well, in the first place, I did not wish to mention so important a matter until I was sure of carrying it through. Ne use of giving promises that you cannot make good. In the second place, I was not aware that you knew Nicholson."

"Oh, you were quite right; it was just a casual meeting, when we were introduced by a mutual friend. I don't flatter myself that my views would have any influence upon a man of Nicholson's standing in the financial world. But there is another part I don't quite understand. I admit the value of Nicholson's name to us, but why wasn't his connection divulged in time to influence subscriptions?"

"Well, you see, it was like this," hesitated Metcalfe, for a liar must be a most agile person, and Steele's questions had a fashion of touching the spot. "It was like this. I did not really conclude my arrangement with Nicholson until this morning. He's a very difficult man to handle, and he knows as well as anyone his own value. I imagine he wished to see which way the cat was going to jump before he committed himself."

"Well, Metcalfe, the cat has jumped entirely our way, even if the leap did not reach the furthest mark we staked out. The success of the subscriptions, then, induced Nicholson to join us?"

"Quite so, quite so, with the proviso that he is to have the vacant seat at the board, unless you have any objection."

"Objection? Certainly not. I am highly delighted with our acquisition. Besides, the seat at the board is entirely in your gift. I have no right to object, even if I wished to do so."

This was said with such an air of childlike simplicity that the perturbed Metcalfe, who seemingly still retained some remnants of conscience, showed confusion.

"True enough," he murmured. "Still, I should not like to nominate anyone who might be personally distasteful to you."

"I cannot imagine, Metcalfe, why you should suppose Nicholson could be distasteful to anyone. He is a tower of strength. I am delighted that you have induced him to join us."

"I am very much relieved to hear you say so," rejoined Metcalfe, who seemed bewildered at the turn things had taken.

The preliminary meetings of the company had all been held in Steele's offices. This afternoon, however, the directors were to forgather at the board-room of the bank in which the deposits of the subscribers were lodged. Steele was thus to beard the lion in the lion's own den, for he now no longer doubted that this bank was owned by Peter Berrington, Nicholson, and their colleagues. The appointed hour was three o'clock, and John Steele arrived on the stroke, the last man to appear. Nicholson stood in the centre of the group. Metcalfe, who had quite recovered his composure, said with a fine air of good comradeship—

"I think you two gentlemen have met before, so a formal introduction is not necessary between Mr. Steele and Mr. Nicholson."

"I had the somewhat chastened satisfaction of encountering Mr. Steele once under conditions I am not likely to forget," said Nicholson quietly, with impressive geniality. "I count myself one of Mr. Steele's numerous admirers."

"It is kind of you to say that, Mr. Nicholson," replied Jack, extending his hand, while that winning smile of his played about his lips. "On the occasion to which you refer, I was so unhappy as to be placed in opposition to Amalgamated Soap. I am the more gratified, therefore, to find myself in some measure a colleague of so distinguished a coterie, even if I am admitted into but an outer temple, as it were."

"Your gratification, Mr. Steele, is as nothing compared to my own at seeing you here amongst us."

Jack Steele bowed his acknowledgment. It was if the lion had begun by complimenting Daniel.

"Gentlemen, I think the hour has struck," said the grave Farwell senior, taking his seat at the head of the long table.

The directors ranged themselves on either side, Nicholson at the right hand of the chairman, Metcalfe next him, and the younger Farwell the third on that side. Opposite Nicholson sat John Steele, and beside him his two nominees. Thus quietly the lines of battle were formed, and to all outward appearance the meeting might have been supposed to be a love-feast. Bunches of papers were heaped before the chairman, while writing-pads, pens, and ink were placed in front of each director. Steele, assuming a negligent, unconcerned air that was admirably put on, wondered what particular battery Nicholson would unmask. The latter's eyes were bent on his writing-pad, and he tried one nib after another, as if to find a pen to his satisfaction. The chairman, in droning voice, recited the history of the company up to its going before the public, read documents, and gave various figures which it might be supposed were familiar to all there assembled. There was silence around the table. Nicholson never looked up until the chairman announced the amount of public subscription.

"What's that, Mr. Farwell?" he said quietly, raising his head. "What are the figures?"

Farwell repeated them.

"And how much do you say is the authorised capital of the company?"

Farwell named the sum.

"Then we are a million short?"

"Nearly so, Mr. Nicholson."

Nicholson's face became set and stern. Slowly he turned towards Metcalfe on his right hand, whose eyes shifted uneasily from one to another without ever resting on John Steele.

"I understood, sir," said Nicholson very slowly, as if weighing his words, "that all the money was in the bank?" "I told you, sir," replied the hesitating Metcalfe, "that there was in the bank all the capital we thought necessary."

"Necessary?" echoed Nicholson, in cold, even tones. "We make a demand upon the public. We state that the value of our property is so much. The public responds by offering us a million less. Necessary? I have never yet had anything to do with a company whose capital was not over-subscribed. I have never yet sanctioned the sending out of letters of allotment unaccompanied by letters of regret."

John Steele had difficulty in keeping the smile from his lips. The tones of righteous indignation were not in the least overdone. The expression of virtuous disapproval at being tricked, on the splendidly chiselled, clear-cut face, was marvellous in its reserve; in its hint of unlimited power behind. Jack felt, rather than saw, the uneasiness of the two colleagues by his side, who realised, without exactly understanding why, that things were going desperately wrong, like an engineer who finds an open bridge in front of him, and finds the brakes will not act.

"Admirably acted," said Jack Steele to himself. "We pay good money to go to the theatre, and yet there is such histrionic talent as this in the business world!"

Then aloud, in a voice mildly protesting, he said—

"Nevertheless, Mr. Nicholson, the million shares left on our hands are quite marketable. We have ample capital to go on with, and Mr. Metcalfe will assure you that the factories themselves are all on a paying basis. You cannot surely mean that having arrived at this stage, we are not to proceed to allotment, Mr. Nicholson?"

"That is exactly what I do mean," replied Nicholson, speaking as mildly as his opponent had done. "My colleagues would never consent to admit connection with a company formed in the circumstances now before us. Our duty to the public"

"Mr. Nicholson, I quite appreciate your position, and that of your colleagues, Mr. Peter Berrington and the rest. The public would indeed be shocked to learn that Peter, one of our religious pillars, could be guilty of anything in the least oblique. As cleanliness in next to godliness, we are all aware that Amalgamated Soap stands close to the Pearly Gates, and the only thing we fear about Peter is that when he gets to heaven he shall find another saint of the same name there before him, which may lead to confusion of identity. I take it for granted, Mr. Nicholson, that you are about to propose a motion requiring all this money to be returned to the subscribers. If you will put that motion, I shall be very happy to second it."

An electric silence fell on the group, the kind of silence which on a hot summer's night precedes a clap of thunder. Nicholson drew a long breath and squared his shoulders. Metcalfe gazed in fascinated dismay at Jack Steele. Even the Farwells showed traces of human interest. Nicholson did not put his motion. After a few moments of this embarrassing stillness, he said gently—

"Perhaps Mr. John Steele has something else to propose?"

"No, I have not," said Jack; "but with the chairman's permission, there being no motion before the house, I should like to make you a personal explanation which may save future trouble."

The chairman nodded permission, and Nicholson said—

"We shall be interested to hear anything you say, Mr. Steele."

"To return the money is, of course, to wreck the company. Hitherto this company has been associated with the names of John Steele and William Metcalfe. To-morrow the sensation of the daily journals all over the country will be the collapse of the big scheme which those two men undertook to float. Mr. William Metcalfe is unknown in Chicago, is but a stool-pigeon well paid for the part he has enacted, and he disappears from the scene. John Steele stands the brunt. All the funds he possesses are in Amalgamated Soap's bank. His affairs are in the hands of Amalgamated Soap lawyers. One legal difficulty after another comes up; there is a long fight over the remains, and at last Amalgamated Soap steps in and sweeps up the débris. They are in possession of valuable property scattered throughout the west in the beet-sugar line, they announce their possession and the reconstruction of the company, and everything is beautiful, but John Steele is mangled in the collision, with no insurance, even for his relatives.

"When I learned the other week that Mr. Nicholson was interested in this company, I felt like the man who had gone down into a cave and unexpectedly clutched a huge bear at the black bottom of it. That man did not stop to question the intentions of the bear: he simply got out. I followed the example. In the wheat deal Mr. Nicholson knows of, I made several millions, and ever since then certain capitalists in this city have begged me if I fell in with a similar good thing, not to hug it all to myself, but allow them to come in on the ground floor, and I promised to do so. The moment I learnt Mr. Nicholson was to have anything to do with the beet-sugar project, I went directly to these capitalists, pledged them to secrecy, guaranteed that Amalgamated Soap was head and shoulders in this deal, and that no less a person than Mr Nicholson himself would assume charge of the company. Gentlemen, they bit instantly. I sold out my share to them for the money it had cost me, and fifty per cent. additional; and, furthermore, I got the cash. Now I shall read you a letter which will appear in the Chicago newspapers to-morrow morning.

"‘,

"‘,—The Consolidated Beet Sugar Company, with which my name has hitherto been associated, and which has been so splendidly supported by western capital, as indicated by the subscriptions now in the bank, will hereafter be in charge of the eminent financiers associated with Amalgamated Soap. I am pleased to state that this will be almost entirely a Chicago enterprise, and that some of the best men in this city have bought out my interests therein. I have only to add that Mr. Nicholson himself is now a member of the board of directors, and nothing further need be said to assure all concerned of the immense prosperity which awaits this company, and the far-reaching advantages it will offer both to agriculture and manufacture in the west. "‘Yours sincerely, "‘.'

"And now, gentlemen," said Jack Steele, as he folded up the copy of this letter and placed it in his inside pocket, "nothing remains for me to do but to resign my seat on the board, as I am no longer interested in the least in this company. But before handing in my formal resignation, I shall be pleased to second any motion Mr. Nicholson cares to propose."

"Mr. Chairman," said Nicholson, quite unruffled, "I move we now proceed to allotment."

"I have pleasure in seconding the motion," said John Steele, rising, bowing to the company, and leaving the room.