II

"The proposition is too gigantic for me even to comprehend."

The Hon. Mr. Kenmore, member of the United States Senate, laid down the

bulky prospectus of the "Consolidated Companies," and looked up into his

caller's genial face.

Gorham flicked the ash from his cigar and smiled good-naturedly. "That

is, perhaps, a natural statement, Mr. Kenmore," he replied,

deliberately. "I am not surprised that you find it difficult to

comprehend the vast possibilities of our enterprise; yet its success,

already established, must convince you that no good argument can be

advanced against its practicability."

"But see what it contemplates!" The Senator again took the prospectus in

his hand and opened the pages. "You propose to control the building and

the manufacturing of the world," he continued, reading aloud from the

prospectus, "and all the allied trades, to construct and deal in all

kinds of machinery, to carry on any other kinds of businesses, to

acquire patents and concessions, to erect and maintain gas and electric

works, to enter into any arrangement with any government, to promote

companies, to lend money--"

"It is summed up in that last clause," Gorham interrupted, quietly; "'to

do all such other things as are incidental or conducive to the

attainment of the above objects.' You see, I know the articles by heart.

May I ask you to glance over the names of the present stockholders?"

Gorham handed a leather-covered record-book to his companion and then

walked to the window, where he quietly smoked his cigar, looking out on

the broad avenue while the Senator scanned the names written in the

small volume. He appeared indifferent to the smothered exclamations

which escaped involuntarily from Kenmore's lips as the latter's eye

passed on from page to page, and for the time being he seemed more

deeply interested in the people passing below on the street. His

calmness was in striking contrast to the Senator's growing excitement.

"By George!" Kenmore exclaimed at length, rising and advancing toward

the window. "This list of names is even more extraordinary than your

stupendous plans."

"Does not each one explain the other?" asked Gorham.

"But how did you ever persuade such men as these to lend themselves to

any enterprise--no matter how attractive? Why, there is hardly an

omission--the leaders of the world in finance, politics, diplomacy,

literature, art, and science."

"There are many omissions, as you would discover if you examined the

list more carefully," Gorham answered; "not the least of which is the

name of the Hon. Mr. Kenmore!"

"I know, I know," the Senator replied, impatiently; "but how did you get

them?"

Gorham looked at his questioner attentively for a moment before he

answered. "The proposition itself appeals to that human instinct which

is more or less developed in us all--self-interest--"

"But that, my dear sir, is nothing more or less than--"

Gorham held up a protesting hand. "Let me save you from using so ugly a

word as you have in mind, Senator. You are fully justified in having

this thought suggest itself to you--such is the business code of morals

of to-day. Yet I consider myself an idealist, and the whole plan on

which the Consolidated Companies is based a moral one. I must have

succeeded in convincing these men, whose characters are admittedly above

reproach, or they could not have been persuaded to become associated

with our corporation."

"Idealism, monopoly, and self-interest seem ill-mated partners, Mr.

Gorham."

"Must monopoly and self-interest always be translated into selfishness

and oppression?"

"As far as I have observed they always have been," Kenmore asserted.

"Perhaps so; but must they necessarily be so exercised? Is it not

possible to control these human instincts to the extent of producing

beneficent results?"

The Senator considered. "I cannot conceive it to be even within the

bounds of possibility."

"Then, unless I can convince you to the contrary, I shall cheerfully

withdraw my proposition," Gorham replied, with decision. "You will

admit, I feel sure, that were I to eliminate self-interest the great

consolidation which we are discussing could not exist."

"Absolutely."

"Will you also admit the possibility--I do not yet say probability--of

conducting an organization such as the Consolidated Companies along

lines which might be for the public good?"

"Provided the public received the benefits of such economies as your

consolidations effected."

"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!"