Chapter 2

"Precisely--or even a part of these economies. Now, many of our stockholders, whose names you see on that list, are in positions of trust. Our directors have endeavored to select only those whose reputations guarantee the honorable observance of their responsibilities."

"Then how can they serve the Consolidated Companies?"

"Let me explain more clearly," Gorham continued. "A franchise for a street railway expires--here in Washington, in Chicago, in London, or in Vienna. Those who are influential in awarding the new franchise are among our stockholders. It is to their self-interest, truly, to place the franchise in the hands of the Consolidated Companies, but it is also to the best interests of the public, who, after all, are most concerned, because the Companies is equipped with men and funds to give them greater efficiency or cheaper transportation than any smaller organization could possibly afford to do. In awarding us the franchise, therefore, these officials are in no way proving themselves false to their trust."

Gorham studied the half-averted face of his companion carefully before he proceeded. "Do you follow me?"

"Perfectly, although not wholly sympathetically," the Senator replied.

Gorham smiled at Kenmore's frankness. "Suppose a government requires a loan of, say, fifty million pounds sterling," he continued. "Here in this little book you will find the names of practically all the financial heads of the governments of the world. You will also find here the leading figures in the world of finance. What is more natural than that the Consolidated Companies be asked to negotiate the loan, to the distinct advantage of both parties and of the Companies itself? Incidentally I might say that we shall eventually establish an international bank which will further simplify details. If it is a matter of building bridges, we have among our stockholders the officials who will award the contracts and the engineers best fitted to execute them. Acting as a medium for both creator and producer, and in serving their mutual self-interest, the Consolidated Companies can easily become the greatest patron of the arts, both fine and mechanical, that the world has ever seen,--and all this, with profit to itself. Could anything be simpler?"

"You are prepared to build navies and also submarines to destroy them?"

"'To do all such other things as are incidental or conducive to the attainment of the above objects,'" quoted Gorham; "but our energies are always exerted in constructive directions."

The Senator became absorbed in his own thoughts and was silent for several moments.

"I don't see yet how those men were persuaded to associate themselves with your corporation," he said, more to himself than to his companion. "The vast business advantages which it already possesses are quite apparent, but I cannot reconcile the conflict which must exist between the dual capacities of your stockholders as individuals and as public officials or officers of trust. Without intending to cast reflections upon any name I have seen, I can scarcely resist asking myself if every man has his price."

"I claim he has," Gorham stated.

The Senator turned upon him sharply. "Then my first impressions of the principles of your enterprise were correct. I beg--"

"Please hear me out, Senator," Gorham urged. "I believe implicitly that what I have just said is true, yet I venture to repeat to you that I consider myself an idealist and an optimist. A man's 'price' has come to be associated with money. I know this phase--what business man does not? But beyond this, are there not far subtler influences, which in one form or another draw every man away from the course he would naturally steer for himself as surely as the iron deflects the magnet's needle? Ambition influences an honorable legislator apparently to condone acts which he knows are wrong, that he may gain a Governor's chair, from which position he can more surely crush out the evils he has always recognized and abhorred. I do not say that all our stockholders are influenced by the guarantee I have given them that a franchise or a concession awarded to the Consolidated Companies means an advantage to the people they serve, but I have at least convinced them by word and act of my own sincerity, and of the possibility of so conducting the Companies that these results can be obtained. I do not even say that every public official who co-operates with us is actuated by the highest motives in giving the Consolidated Companies special privileges, but I do say that he may properly be so actuated--and the public receives the benefits."

"But think of the power which this corporation must eventually possess, and the powerlessness of any individual or organization, business or otherwise, to oppose it."

"Why should they wish to oppose it?" Gorham continued. "As I have said, the combinations suggested can but result in economies in production and consequent reductions in the living expenses of the masses."

"Yet you would hardly suggest that the Consolidated Companies has been launched as a philanthropic enterprise?"

Gorham's smile returned. "Not primarily, yet the people have already been benefited in no small degree. It is entirely possible to conduct it along lines which will reduce the cost of all public utilities and necessities, and yet secure large financial returns to the Companies."

"I was thinking--" Kenmore began, and then stopped.

"Well?" Gorham encouraged, interrogatively.

"I was thinking what an easy thing it is to mistake a temptation for an opportunity."

"Or the reverse," Gorham remarked, significantly, flushing slightly. "Does it not all depend upon the basis on which the corporation is administered?"

As the Senator ventured no reply, Gorham continued, with more feeling than he had as yet displayed:

"You and I, Mr. Kenmore, are familiar with the contention made by our great captains of industry that they are entitled to the vast fortunes which they have amassed as a return for the benefits which the public enjoys as a result of their energy and the risks they have taken. They have opened up new sections of the country, provided transportation facilities which were previously lacking, or have increased those which already existed; they have multiplied industries which promoted increase in population and trade, and have thus largely contributed to the prosperity enjoyed by the communities themselves and by the country at large."

"All of which the Consolidated Companies claims to be doing, or about to do, upon a scale which makes similar past achievements seem insignificant," interrupted Kenmore.

"Yes," Gorham assented, "but with a fuller appreciation that these accomplishments are not the results alone of individual ability, but far more of the exercise of the corporate power placed in its hands, not for its unlimited personal gain, but intrusted to it by law for public advantage. The law confers upon a corporate organization a power far beyond that which any individual himself could obtain; it enables him to make use of capital which thousands have contributed, toward whom he stands in a relation of trust, and without whom he could not accomplish the individual triumphs which become so magnified in his own mind, and for which he demands so great a recompense. The Consolidated Companies considers itself bound to use franchise privileges and corporate organization for the equal benefit of all those who contribute of their capital, with due regard for those public interests which corporations are created to serve, and to rest content with a fair return upon its own capital and a reasonable compensation for their services, on the part of the officers of the enterprises of which it assumes the responsibility and direction."

"How long do you think the Consolidated Companies can be run upon such altruistic principles?"

"As long as Robert Gorham remains its president and as long as those men whose names you have seen there remain its directors. This is my pledge. When the Consolidated Companies, intrusted with the power, credit, and resources of the many corporations which are and will be included in it, but which are not agencies of its own creation and do not belong to it, begins to take advantage of these for personal profit beyond legitimate return upon investment and fair compensation for services rendered, it will be guilty of a gross betrayal of trust. When it issues securities in excess of the requirements of its business and manipulates them for its own profit; when it makes use of its power, its funds, or its credit in enterprises which are not for the equal benefit of all who have contributed to its capital or in the interest of the public, which gives it its power; when it employs its profits so as to affect the market value of securities and then speculates in these for its own advantage,--then it will be flagrantly abusing a power which has been given to it in trust, and its unique position in the business world will be destroyed."

There was another long silence, which this time was not broken until the Senator was quite ready to speak. When the moment came the question was asked abruptly:

"How much can you consistently tell me of any of the corporation's transactions? I know of them, of course, by hearsay, but I should be glad to receive more intimate information."

"Nothing, without assurances of your serious interest, provided I can demonstrate to your satisfaction the strength of the facts I have mentioned; everything when you care to give me these assurances."

The Senator winced. He had expected to meet a man with whose type he was perfectly familiar, to explain to him that the private affairs of the Hon. James Kenmore, business or otherwise, were always kept entirely distinct from his political life, and to dismiss him with merely the courtesy demanded by the unusually strong letters which had introduced him. But Robert Gorham did not belong to the expected type. There were no earmarks of the promoter about him, in spite of the fact that the enterprise of which he stood as the head and front was in reality the most gigantic piece of promotion engineering the world had seen. On the contrary, Gorham was the refined man of affairs, confident in himself and in the certainty of his strength. And as for dismissal, the Senator realized that his caller had already made himself the dominant power.

"You wish me to subscribe for stock in this corporation to the extent of a hundred thousand dollars?"

"I am empowered by our directors to offer you the opportunity to subscribe for that amount."

The Senator passed over the obvious correction.

"Why am I selected by your directors rather than others of my colleagues whose names I do not observe upon that list?"

"Because we consider your position in the United States Senate to be one of increasing importance, and of value to the Companies," Gorham answered, frankly.

"Why has the specific amount of my desired subscription been so carefully stipulated?"

"Because your investment in the Consolidated Companies must be heavy enough in its relation to your personal fortune to make the success of the corporation a matter of real concern to you."

"Are these amounts, then, uniform in size?"

"Not at all. A hundred thousand dollars to you may be no more than five thousand to some other stockholder, and no less, on the other hand, than half a million to a third. In every case the amount of the subscription is carefully considered."

"Your directors have made a preliminary estimate of my financial standing?"

"Certainly."

Kenmore smiled incredulously. "Would it be asking too much to inquire what the inventory, made by your experts, shows?"

"One million two hundred thousand," Gorham responded, promptly. "Except for your unfortunate investment in the Arizona oil-wells a year ago, it might have been half a million more--a loss which your fortunate connection during the past three years as a special partner in the well-known banking-house of Gilroy and Company has more than made up."

The Senator sprang excitedly to his feet. "By George! sir, by what power or authority do you make yourself aware of my private affairs down practically to the last penny?"

"I apologize, Senator, if I answered your question too literally," Gorham replied, quietly.

"But how do you know it?"

"I neglected to state that the secret-service department of the Consolidated Companies excels in efficiency that of any government. You can readily appreciate its importance."

"And you know with equal minuteness the financial condition of every man on that list?"

Gorham nodded. "Yes; and of every individual, corporation, business house, and government wherever it is of any value to us to know it."

Kenmore again relapsed into silence. He was experiencing a larger number of new sensations during his conference than he remembered ever having had aroused by any previous discussion. He was angry with himself for having permitted the interview, he was incensed by the proposition itself and the apparent unassailability of the Companies, he was annoyed by Gorham's good manners and his complete self-control. Never once had this man, who appeared to have his finger upon the pulse of the world, allowed his attitude even to approach enthusiasm. He simply presented facts, and then allowed them to tell their own story.

"You are at liberty, sir, to acquaint me with the transactions of the Consolidated Companies," the Senator finally remarked.

"Probably a few specific cases will suffice," Gorham responded, as if expecting to receive Kenmore's permission. "You will remember, perhaps, the apparently insurmountable complications which arose over the placing of the recent loan of fifty million dollars to the Chinese government, for their currency reforms and other necessary improvements. As soon as the Consolidated Companies assumed the responsibility of the negotiations, all international bickerings ceased, for the Chinese, French, German, English, and American financiers knew that the loan would be handled to the advantage of all. I could cite, perhaps, a hundred cases of similar importance, would time permit. As for the present, you are aware that England is building several great men-of-war to restore its navy to its previous supremacy. The contracts for this work have been placed in the hands of the Consolidated Companies. Our political strength was tested in a small way two years ago in causing a cessation of hostilities between Austria and her neighbors. We shall be strong enough before the war cloud gathers too heavily over England and Germany to prevent the grievous calamity which threatens these nations. Shall I give you other data?"

"But the Consolidated Companies separates the world into two parts--" the Senator began.

"Precisely--into those who are stockholders and those who are not. Both are benefited by the existence of the corporation. But is there any question as to which is the more favored class?"

"None whatever," Kenmore replied, with decision.

"Then may I call to-morrow to learn in which class you decide to place yourself?" Gorham asked, as he rose and slipped into his overcoat.

"No," the Senator replied, after a moment's thought. "I will send my secretary to you to arrange the matter of taking over stock to the amount of one hundred thousand dollars in the Consolidated Companies--Unlimited!"

III

If punctuality is a virtue presaging business success, Allen gave evidence, the following afternoon, of a brilliant future. Previously, he had made no criticism of the condition in which his motor-car was delivered to him at the garage, but this time the men found him strangely unreasonable. The brasses had to be repolished, the hood opened up, and the dust wiped from the long-neglected creases, and every detail was inspected with a carefulness which created comment.

"Goin' to sell his car," one of the men remarked, sententiously, to which sage comment his companion nodded acquiescence.

In spite of the delay thus caused, Allen shut off his power in front of the hotel entrance at exactly the appointed hour. He bounded into the lobby, and a few moments later was ushered into the elevator and guided to the Gorhams' apartment.

"Why, it's Riley!" the caller exclaimed, enthusiastically, as the door was opened for him by Mr. Gorham's aged retainer--"it's the same Riley who used to box my ears when I tramped over his flower-beds in Pittsburgh."

The old man regarded the visitor attentively. "Shure it's Misther Allen Sanford, grown out iv his short pants into a fine young man, so he has." A broad grin replaced the questioning expression on his face. "I did box ye'er ears good, didn't I, sor? but go along wid yer, th' trouble ye made me, ye an' Miss Alice a-traipsin' over me flower-beds." Then, with a sigh: "Ah, sor, I remimber it as if 'twas yisterday. Miss Alice's mother was livin' thin, God rist her soul. Thank ye, sor, f'r remimberin' me. I'll call Mrs. Gorham an' Miss Alice."

It was the girl who appeared first, greeting Allen with frank cordiality.

"Eleanor will be ready in a moment," she said. "Isn't this the greatest coincidence?" she continued. "Yesterday at this time I had no idea you were within a thousand miles, and now it seems as if we might almost be back in Pittsburgh again, living the same childish life and playing the same games."

"It was certainly a dandy coincidence for me," Allen agreed, "but I don't quite follow you back to the kid games we played."

"Why, Allen!" Alice reproached him, "have you forgotten the motor rides you and I took with wash-tubs, turned upside down, for seats, and the remnant of your express-wagon for a steering-wheel? My! how fast we used to go!"

"That's so!" he admitted. "I'd forgotten all about it. You used to look great sitting on that tub."

"Freckles and all?"

"I didn't remember the freckles, either, until you spoke of them. You were a little corker, even then."

"Even then?" Alice repeated, without intending to.

"No one has told you that you've gone backward in looks, has he?" Allen laughed, looking straight into her face. Then he continued: "There's one other game we played, which I haven't forgotten: Do you remember how we used to keep house together? You were Mrs. Allen Sanford then, and we had everything fixed up--"

Alice sobered. "I--I think I have forgotten that one," she said. "Isn't it ridiculous what games children do play?"

"But the motor-car game has come true," he insisted, "and you'll look just as good to me sitting in the real car, as you used to on top of that tub. And as for the other--"

"How long Eleanor is taking!" she interrupted; "I'll run and find her." With which she disappeared, returning almost immediately, accompanied by Mrs. Gorham.

"I shan't be asked again, if I keep you waiting so long, shall I?" Eleanor apologized.

"The appointed time always arrives at the same moment that Mrs. Gorham does," Allen replied.

"So!" Eleanor was frankly surprised by the boy's gallantry. "If this is a sample, I must agree with your father that diplomacy is your natural field. It would be a pity to waste that in a business office."

"Don't you join the opposition, Mrs. Gorham," he said, seriously. "I'm going to have a hard enough time with the pater as it is. Now, if you're ready, shall we start? It isn't going to be the most sociable arrangement in the world, with me driving the car, but we'll go slowly, which will give us a chance to visit."

With Fort Meyer as the objective point, Allen took the road through Rock Creek Park to Chevy Chase, feeling attracted, perhaps unconsciously, because it was there he had renewed this acquaintance which promised to end the _ennui_ he had experienced during the weeks he had spent in Washington. Slowing his speed down to a point requiring the least attention, he was able to converse with his guests. Alice had said little since they left the hotel, but at last she found an opportunity to free her mind.

"Eleanor wasn't serious in what she said about your going into diplomacy, Allen. Any ability a man has in that line is just as valuable in business."

Mrs. Gorham laughed as she turned to Alice. "Has that been troubling you, my dear?" Then to Allen: "You touched on a very live wire when you said what you did yesterday, Mr. Sanford. Alice thinks that a man who chooses anything but a business career is blind to what life offers him."

"You do too, don't you, Allen?" the girl asked.

"Why--yes," he answered. "I haven't exactly analyzed it, but I know I'd rather go into business than into the diplomatic service."

"But you must have some reason for it," she urged.

"I have--I don't want to spend my life in other countries. Little old New York is good enough for me. I have lots of friends there, and that's where I'd like to settle down."

"New York is a hard place for a young man to start his career," said Mrs. Gorham. "You will find there an absolute intolerance for the man in the making. New York demands the finished product."

"But you don't have to start in New York," Alice added. "You could make your success in some other city, and then come to New York if you wanted to."

Allen became unusually thoughtful as the conversation progressed.

"Gee!" he said; "I knew that I wanted to go into business, but I didn't realize how much there was to think over before doing it."

"But it's worth all the time and thought you can give to it," the girl said, enthusiastically. "I can't imagine anything grander than to stand at the threshold of the world ready to enter the battle of life, to struggle with the obstacles and to conquer them. Think, Allen--just think of what you have before you, while we girls never get any such chance at all."

"Yes." Allen hesitated, carried off his feet by the intensity of the words and the rapt expression of her face. "Yes, I guess it is grand, though it never struck me just that way before. I say!--" he continued, after a moment's pause, "you're an enthusiast on this business question, aren't you?"

"Could she be Robert Gorham's daughter and not be an enthusiast?" Mrs. Gorham asked.

"If father would only let me, I know I could make a success in business," Alice continued. "I watch him, when he least suspects it; I study the papers which he leaves around, and sometimes it seems as if I just must be a boy, and get into the thick of it."

"What a funny idea!" Allen remarked. "I never thought girls cared anything about business."

"But it's no use," she bemoaned. "I've got to be a girl whether I like it or not; but you haven't any such handicap."

"Haven't I?--you forget the pater."

"If you felt as strongly about it as I do, you could persuade him."

"Have you--met the pater?" he asked, significantly.

Alice smiled for a moment, and then became serious again. "If you have determination enough to succeed in business, Allen, the same characteristic will win out with your father."

The boy did not know quite what to answer. Stephen Sanford insisted that the only reason Allen showed a preference for business was because he knew his father had set his heart on a different career for him. It may have been merely an unconscious assertion of his budding manhood which rebelled against having his life-work laid out for him without consultation, just as his governess used to lay out his clothes. At all events, from his very nature, Allen had not considered the matter as seriously as he now saw Alice had done, and he was entirely unequal to the task of holding up his end of the discussion. So, after a few moments' silence, during which she watched him with eager expectancy, he turned his face toward her, and grinned broadly.

"I'm mighty glad you are a girl," he said, irrelevantly; "and I'm mighty glad you can't go into business."

Alice was disappointed on his account, but she chose to reply only to his reference to her.