At the mention of Berenice’s present abode, Cowperwood repressed a smile, but was prevented from making any comment by the arrival of Stane himself, who greeted them both in an easy, casual manner.
“Oh, there you are, Johnson! And, of course, this is Mr. Cowperwood.” He extended his hand, and Cowperwood, measuring him swiftly and favorably, took it and pressed it heartily.
“This is a pleasure and a privilege, I assure you,” he said.
“Not at all, not at all,” replied Stane. “Elverson has told me all about you. I think, though, we might be a little more comfortable in the library. Shall we go?”
He pulled a bell rope, telling the man to bring drinks, and led the way into a charming room with French windows looking out on a walled garden. While he moved about, acting the part of host, Cowperwood continued to study him. He found his own mood decidedly friendly toward this man. There was an easy, genial courtesy and awareness about him that bespoke value to the person who could win his confidence. But this confidence could not be won easily. He would have to be fairly and advantageously treated.
Just the same, Cowperwood now decided definitely against revealing at this time the inside workings of his proposition. At the same time, he found himself thinking of Berenice, for he and she had tacitly agreed that she might be called on to play a social role in connection with just such people as Stane. But now that he proved to be so attractive, he was not sure that he was willing to have her do this. He composed himself, however, while Johnson began outlining his ideas on the underground situation.
When Johnson had finished, Cowperwood began, softly and smoothly, expounding his plan of unification. He dwelt especially on electrification, lighting, the new method of separate motor power for each car, air brakes, and automatic signals. And at only one point did Stane interrupt to ask:
“Do you contemplate a personal or directorial control of this entire system?”
“Directorial, of course,” replied Cowperwood, who was really contemplating no such thing. “You see,” he went on, as both observed him silently, “it is my plan, if I could bring about a unified system, to form a new company and include this Charing Cross which I now own. And in order to get the present shareholders of the loop companies to come in, I would offer them three shares in this larger company for each one they now hold in these smaller ones. And since the Charing Cross is going to cost at least ?2,000,000 to build, you can see that there would be a considerable increase in the value of their holdings.” He paused to note how this affected his listeners, and saw that it did so favorably. He then proceeded.
“Would you say that the plan should be profitable, particularly when it is agreed beforehand that all of the lines of this new company are to be modernized and operated as one system, and at no additional cost to the shareholders but rather by selling shares to the public?”
“I should certainly say so,” commented Stane, to which Johnson nodded in agreement.
“Well, there you have my plan in a general way,” said Cowperwood. “Of course, there might be additional ramifications, but that would be something for the directors of the new larger system to decide on.” He was thinking of Scarr, Haddonfield, and others whose acts, if he secured control of them, would have to be bought from him.
But at this point Stane scratched his ear meditatively.
“As I see it,” he said, “this three-for-one arrangement merely covers the matter of luring such shareholders as might be interested into joining with you on that basis. But you are forgetting, I think, the matter of sentiment, which is certain to be against you. And that being true, you may be sure that offering three shares for one will not bring in enough of the present owners to permit you to do as you wish on your terms, which, as I assume, would mean general control for you. For, you see, they are set on a purely English control. Both Johnson and I, since the announcement of your purchase of the Charing Cross act, have discovered that. Besides, there has already developed quite a little opposition in both the Metropolitan and the District, even a tendency to combine against you. And heaven knows the directors of those two lines have never been too affectionate towards each other up to this time!”
Here Johnson chuckled dryly.
“So unless you move with the greatest caution and tact at every point,” continued Stane, “have the right people approached in the right way, and preferably by English rather than American factors, you are likely to find yourself blocked.”
“Quite so,” said Cowperwood, who saw very clearly what Stane had in mind. If they were to be won over to the task of helping him pull this English chestnut out of the fire, they were going to require, not additional compensation—they could scarcely ask for more than he had already offered—but more likely some form of joint control with him. Or, if that could not be effected, then they would demand security in regard to their investments and, very likely, pro rata opportunities along with himself in connection with the progressive development of this proposed system. And how was that to be arranged?
For the moment he was not a little puzzled, and to clarify his own as well as their thoughts, he now added:
“It was in connection with that that I was thinking how I might interest both of you, for I realize that you understand this situation, and assuming that you are willing to co-operate with me, can do a great deal toward furthering more favorable sentiment. Just how do you think, apart from the three shares to one arrangement, you should be compensated? What particular arrangement between the three of us would be agreeable to you?” He paused.
But the conversation as to this was much too extended and intricate to relate here. In the main, it dealt with preliminary work which would have to be done by Stane and Johnson. And this preliminary work, as they now explained to Cowperwood, related more to social introductions than to anything else, for without those his purely financial affairs were not likely to make much headway.
“In England, you see,” went on Stane, “one progresses more through favor and the friendship of financial as well as social groups than through particular individuals, however gifted they may be. And if you are not well and favorably known to certain groups and accepted by them, it may be difficult to proceed. You follow me?”
“Perfectly,” replied Cowperwood.
“And, of course, this is never at any point a mere matter of cold and practical bargaining. There must be mutual understanding and respect. And that is not achieved in a moment. It depends not only on introductions but personal endorsements in a casual as well as definite social way. You follow me?”
“Perfectly,” replied Cowperwood.
“But before that, there would have to be a very clear understanding as to what, apart from the exchange of shares would be the reward of those who made possible such an advantageous social entree for you and your undertaking.”
As Stane talked, Cowperwood sat relaxed in his chair, and although he seemed to be listening sympathetically enough, a close observer would have noticed a certain hardening of the eyes and tightening of the lips. He realized very clearly that in so instructing him Stane was condescending. For, of course, he had heard of the various scandals connected with his career and was aware of the fact that he was not admitted to the social worlds of Chicago and New York. And although he was extremely diplomatic and courteous, Cowperwood took his explanations for just what they were worth: the explanations of a man who stood well in the
When Stane finally paused, Cowperwood questioned him about the details of this understanding, but Stane said very courteously that he thought it would be best to leave that to Johnson. However, he already had in mind not only a guarantee of three for one of his present holdings in the District and Metropolitan but also some secret and inviolable agreement with Cowperwood whereby he and Johnson would be retained, protected, and financially enhanced as part of this great development.
And so, while Stane calmly drew up his monocle and adjusted it in his right eye the better wherewith to contemplate him, Cowperwood now emphasized how really grateful he was for Stane’s personal interest and kindness in clarifying the significance of the situation. He was certain it could all be arranged to their mutual satisfaction. However, there was the task of financing, for which he himself would have to arrange. It would probably be necessary for him to return to America shortly to raise this money, before talking with the various English shareholders—a point of view with which Stane agreed.
However, already Cowperwood had in his mind a 49-51 per cent control of a loaning company which might be
