ONE day, a month or so later, Montague, to his great surprise, received a letter from Stanley Ryder. “Could you make it convenient to call at my office sometime this afternoon?” it read. “I wish to talk over with you a business proposition which I believe you will find of great advantage to yourself.”
“I suppose he wants to buy my Northern Mississippi stock,” he said to himself, as he called up Ryder on the 'phone, and made an appointment.
It was the first time that he had ever been inside the building of the Gotham Trust Company, and he gazed about him at the overwhelming magnificence—huge gates of bronze and walls of exquisite marble. Ryder's own office was elaborate and splendid, and he himself a picture of aristocratic elegance.
He greeted Montague cordially, and talked for a few minutes about the state of the market, and the business situation, in the meantime twirling a pencil in his hand and watching his visitor narrowly. At last he began, “Mr. Montague, I have for some time been working over a plan which I think will interest you.”
“I shall be very pleased to hear of it,” said Montague.
“Of course, you know,” said Ryder, “that I bought from Mrs. Taylor her holdings in the Northern Mississippi Railroad. I bought them because I was of the opinion that the road ought to be developed, and I believed that I could induce someone to take the matter up. I have found the right parties, I think, and the plans are now being worked out.”
“Indeed,” said the other, with interest.
“The idea, Mr. Montague, is to extend the railroad according to the old plan, with which you are familiar. Before we took the matter up, we approached the holders of the remainder of the stock, most of whom, I suppose, are known to you. We made them, through our agents, a proposition to buy their stock at what we considered a fair price; and we have purchased about five thousand shares additional. The prices quoted on the balance were more than we cared to pay, in consideration of the very great cost of the improvements we proposed to undertake. Our idea is now to make a new proposition to these other shareholders. The annual stockholders' meeting takes place next month. At this meeting will be brought up the project for the issue of twenty thousand additional shares, with the understanding that as much of this new stock as is not taken by the present shareholders is to go to us. As I assume that few of them will take their allotments, that will give us control of the road; you can understand, of course, that our syndicate would not undertake the venture unless it could obtain control.”
Montague nodded his assent to this.
“At this meeting,” said Ryder, “we shall propose a ticket of our own for the new board of directors. We are in hopes that as our proposition will be in the interest of every stockholder, this ticket will be elected. We believe that the road needs a new policy, and a new management entirely; if a majority of the stockholders can be brought to our point of view, we shall take control, and put in a new president.”
Ryder paused for a moment, to let this information sink into his auditor's mind; then, fixing his gaze upon him narrowly, he continued: “What I wished to see you about, Mr. Montague, was to make you a proposal to assist us in putting through this project. We should like you, in the first place, to act as our representative, in consultation with our regular attorneys. We should like you to interview privately the stockholders of the road, and explain to them our projects, and vouch for our good intentions. If you can see your way to undertake this work for us, we should be glad to place you upon the proposed board of directors; and as soon as we have matters in our hands, we should ask you to become president of the road.”
Montague gave an inward start; but practice had taught him to keep from letting his surprise manifest itself very much. He sat for a minute in thought.
“Mr. Ryder,” he said, “I am a little surprised at such a proposition from you, seeing that you know so little about me—”
“I know more than you suppose, Mr. Montague,” said the other, with a smile. “You may rest assured that I have not broached such a matter to you without making inquiries, and satisfying myself that you were the proper person.”
“It is very pleasant to be told that,” said Montague. “But I must remind you, also, that I am not a railroad man, and have had no experience whatever in such matters—”
“It is not necessary that you should be a railroad man,” was the answer. “One can hire talent of that kind at market prices. What we wish is a man of careful and conservative temper, and, above all, a man of thorough-going honesty; someone who will be capable of winning the confidence of the stockholders, and of keeping it. It seemed to us that you possessed these qualifications. Also, of course, you have the advantage of being familiar with the neighbourhood, and of knowing thoroughly the local conditions.”
Montague thought for a while longer. “The offer is a very flattering one,” he said, “and I need hardly tell you that it interests me. But before I could properly consider the matter, there is one thing I should have to know—that is, who are the members of this syndicate.”
“Why would it be necessary to know that?” asked the other.
“Because I am to lend my reputation to their project, and I should have to know the character of the men that I was dealing with.” Montague was gazing straight into the other's eyes.
“You will understand, of course,” replied Ryder, “that in a matter of this sort it is necessary to proceed with caution. We cannot afford to talk about what we are going to do. We have enemies who will do what they can to check us at every step.”
“Whatever you tell me will, of course, be confidential,” said Montague.
“I understand that perfectly well,” was the reply. “But I wished first to get some idea of your attitude toward the project—whether or not you would be at liberty to take up this work and to devote yourself to it.”
“I can see no reason why I should not,” Montague answered.
“It seems to me,” said Ryder, “that the proposition can be judged largely upon its own merits. It is a proposition to put through an important public improvement; a road which is in a broken-down and practically bankrupt condition is to be taken up, and thoroughly reorganised, and put upon its feet. It is to have a vigorous and honest administration, a new and adequate equipment, and a new source of traffic. The business of the Mississippi Steel Company, as you doubtless know, is growing with extraordinary rapidity. All this, it seems to me, is a work about the advisability of which there can be no question.”
“That is very true,” said Montague, “and I will meet the persons who are interested and talk out matters with them; and if their plans are such as I can approve, I should be very glad to join with them, and to do everything in my power to make a success of the enterprise. As you doubtless know, I have five hundred shares of the stock myself, and I should be glad to become a member of the syndicate.”
“That is what I had in mind to propose to you,” said the other. “I anticipate no difficulty in satisfying you—the project is largely of my own originating, and my own reputation will be behind it. The Gotham Trust Company will lend its credit to the enterprise so far as possible.”
Ryder said this with just a trifle of hauteur, and Montague felt that perhaps he had spoken too strenuously. No one could sit in Ryder's office and not be impressed by its atmosphere of magnificence; after all, it was here, and its seventy or eighty million dollars of deposits were real, and this serene and aristocratic gentleman was the master of them. And what reason had Montague for his hesitation, except the gossip of idle and cynical Society people?
Whatever doubts he himself might have, he needed to reflect but a moment to realise that his friends in Mississippi would not share them. If he went back home with the name of Stanley Ryder and the Gotham Trust Company to back him, he would come as a conqueror with tidings of triumph, and all the old friends of the family would rush to follow his suggestions.
Ryder waited awhile, perhaps to let these reflections sink in. Finally he continued: “I presume, Mr. Montague, that you know something about the Mississippi Steel Company. The steel situation is a peculiar one. Prices are kept at an altogether artificial level, and there is room for large profits to competitors of the Trust. But those who go into the business commonly find themselves unexpectedly handicapped. They cannot get the credit they want; orders overwhelm them in floods, but Wall Street will not put up money to help them. They find all kinds of powerful interests arrayed against them; there are raids upon their securities in the market, and mysterious rumours begin to circulate. They find suits brought against them which tend to injure their credit. And ............