THE RESPONSIBILITY FASTENED
Life's alternatives are seldom labelled. Right is not always white, nor
wrong, black. The parting of the ways is oftentimes to the eye no more
than the forking of main-travelled roads, and good intentions are no
sure guide to the straight path. This, however, was one of those rare
crossings at which Fate's red light swung full in view, and in its
warning glow I seemed to read the sign:
"Settle Right or Forever Regret."
Well it was for me and for those thousands who were victimized and
robbed later that I heeded the monition, for if in the interests of
peace I had allowed myself to be overwhelmed by the imperious will of
Henry H. Rogers, I should to-day be as helpless as those others who,
coming forward to accuse, are met with "Standard Oil's" crushing
rejoinder, "It's a lie--you can't prove it." I have wondered since if
the master of "Standard Oil" also saw the red signal or interpreted its
prophetic message. His eyes still met mine in the same deadly, intense
stare, but the anger had passed out. Then in an instant the battle was
mine. Henry H. Rogers came out of the clouds and with a gesture of his
hand waved away all that had passed, and said:
"D--n it, Lawson, you are a most impractical man to do business with,
but I suppose you must have your way. Now just tell me--and put it in
few and plain words--what is it you intend to do to get this affair
through, for we must carry it to a finish at once, although it does seem
hard that I must do things I don't want to and which may put me in a bad
hole; but let us hope the future will only show that all these
precautions were a waste of energies. Bear in mind, though, that
whatever is done, must be so arranged that no one but me will know the
real condition, for though I have given way, William Rockefeller and
Stillman, to say nothing of the others, would throw up the whole affair
rather than incur the danger of future litigation and trouble."
At that moment Mr. Rogers had, I believe, made up his mind to play so
fair with the public that there should never arise dissatisfaction with
the course of Amalgamated, that is, he had determined to be content with
a half brick of gold without retribution or restitution in place of the
whole fraught with penalties of exposure and reprobation. At that period
his cupidity had not flared into the towers of fire it afterward became,
in the smoke and flame of which all undefined dangers were obscured.
"As you will, Mr. Rogers," I assented; "that part is not my hunt. I
should prefer that our associates knew things as _we_ do, but as it
seems that is impossible, I must be satisfied with knowing that you
thoroughly understand the conditions I am going ahead on. Here they are:
First, all public notices must bear the names not only of the
Amalgamated Company and the City Bank, but of the individuals,
Rockefeller, Rogers, and Stillman. As the real story is to be told by me
alone, these names will prevent any suspicion the public, particularly
Wall Street, would have that there was any lukewarmness or dodging. This
means that you and Mr. Rockefeller must be known as officers of the
company as well as directors."
"Now, Lawson, right there, that is impossible--absolutely out of the
question. William Rockefeller will under no circumstances take on
additional duties of this kind, and whatever the consequences, I cannot
persuade him to."
I saw he meant this, and that we must get around it.
"Let us begin at the beginning, then--the president. You should be
president--over the flotation, at least."
"That is impossible, too, for you know it is settled that Marcus Daly is
president. I promised the position to him as a part of the trade. It
would be ridiculous for me, who it is known am not a copper expert, to
be president of a new copper company in which Marcus Daly is a large
owner and is supposed to have a prominent hand. Besides, in certain
parts of the country his name will stand much better than mine, and it
means much to all miners the world over."
"All right for president," I answered. "That settles, then, where you
would naturally come in--vice-president; and as vice-president it will
be proper to print your name in the advertisement below that of the
president."
He demurred at first, but finally acquiesced, for he had now made up his
mind to play out the string. For treasurer and secretary he suggested a
brother of Governor Flower's, but I knew that this was now the only
place left where the magic name of Rockefeller could be used and I drew
his attention to the fact.
"How can we do it, Lawson, when I have told you it is impossible?"
"William Rockefeller has a son, William G. Rockefeller. He's our man for
treasurer and secretary. Not one in ten thousand but will think William
G. is the senior Rockefeller, so the name is as good for the country as
his father's, and in State and Wall streets it is better, for among
financiers it is known that William Rockefeller would hesitate longer
about putting his son out in the open in an enterprise he did not
approve than about getting in himself. So William G. Rockefeller it must
be."
Mr. Rogers did not take kindly to the idea, and I could see it would be
quite a task for him to arrange the matter. However, it was necessary,
and he undertook the contract. I went on:
"That covers the company. Second, we will print three advertisements--a
plain notice of the City Bank, which must be signed not only with the
usual 'National City Bank,' but 'James Stillman, President.' This will
immediately follow the company's advertisement, which I shall so word
that the enormous properties composing the consolidation will be set
forth, yet without details of the extent of our holdings in any of them.
In its own advertisement offering the stock the City Bank will refer to
the advertisement of the Amalgamated as though all particulars had there
been given, and I will see that it reads openly and frankly and yet
contains nothing that need scare Stillman. Then there will be a third
advertisement, signed by myself, in which, in the plainest and strongest
terms at my command, I shall tell just what the company is and what it
proposes to do."
"So far all right," assented Mr. Rogers.
"There is one more thing," I went on. "It cannot openly be put forward
that I am the authorized agent of the Amalgamated Company and the City
Bank--well, I must have the equivalent of this. It must be shown by
inference. If I insert these three advertisements in the papers and pay
for them, and the company pays me for them, it will be proof positive
for all time that I acted as the authorized agent of not only the
company and the City Bank, but of Marcus Daly, yourself, William
Rockefeller's son, and James Stillman, and therefore that whatever my
advertisement says is binding upon them. Remember, though, it will be
your affair whether you tell them of it or not."
"You persist, Lawson, that this is necessary?" Mr. Rogers interrogated.
"You seem to lose sight of the position I shall be in should anything
happen later to reveal to these men with whom I am so closely associated
in business that they were binding themselves without their knowledge,
and that I was fully aware of the fact."
[Illustration: LAWSON'S ADVERTISEMENT WHICH APPEARED IN CONJUNCTION WITH
AMALGAMATED'S.
=COPPERS.=
=Amalgamated Subscription.=
Owing to the very large number of inquiries (over 3,000 the
first day), received and anticipated, as to the best means
of securing an allotment of the first issue of the
consolidated stock, it is necessary to reply collectively by
this advertisement. I advise the purchase of Amalgamated by
subscription, because it is, in my opinion, the best
opportunity ever offered the public for safe and profitable
investment. It is probably the first time in the history of
public subscriptions that a stock is worth and can be sold
for 50 to 75 per cent. more than the subscription price, and
yet will be allotted to each and every subscriber in
proportion to his application. This means that every one who
makes a bona-fide subscription, large or small, will receive
shares at one hundred dollars each that can be sold at once
at a large profit.
In my opinion the entire $75,000,000 is worth and can be
sold to-day for from 30 to 60 per cent. more than the
subscription price.
First--Because the assets now owned by the Amalgamated
Company are worth from $100,000,000 to $125,000,000.
Second--Because the Amalgamated Company is now earning at
the rate of 12 to 16 per cent. per annum.
Third--Because it will, from the start and always after, pay
8 per cent. dividends annually.
Fourth--Because the interests actively engaged in its
management will make and keep it one of the most
conservative and sought-for investments.
Fifth--Because there will be rights attaching to it almost
at its beginning that will give to it large profits
independent of those accruing from its dividends.
The fact that the above values are now known to some, and
will be in the next few days recognized by all, will cause
the stock to be largely oversubscribed, but this should
deter no one from subscribing, for the reason that,
notwithstanding this certainty, those who are engaged in
perfecting this great enterprise have decided that instead
of a favored few being allotted the entire amount, all shall
be treated alike. Captious critics of "Coppers" will
probably again cry their sarcastic "philanthropy," but to
the legion of broad-minded investors who have followed and
profited by this great industrial revolution, the policy of
this liberal treatment will be obvious--the consolidated
company is to be many times larger than its present capital
indicates; it, in my opinion, will from time to time offer
to the investing public large amounts of increased stock for
the purpose of obtaining hundreds of millions of cash with
which to pay for all the producing copper mines, as it is
now obvious to students of affairs financial that this
company must in time become the owner of all good mines,
because all such mines can be run to better advantage to the
consumer of copper, the investor in copper stocks and the
present owners, by the Amalgamated Company than by others.
This being so it requires no supernaturally bright mind to
see the wisdom of a policy that insures a constantly
increasing premium for every new issue of stock.
I advise all intending subscribers to send their
subscriptions personally or through their banking or
brokerage house direct to the National City Bank of New
York. While my firm will, for the convenience of its
clients, forward subscriptions, I would have it understood
that such subscribers will receive the same treatment if
they send their applications direct.
My firm will also furnish subscription blanks to those who,
through lack of time or otherwise, cannot secure them
elsewhere.
All subscribers should bear in mind, if on receiving their
allotment they are disappointed with the amount, that their
subscription is only reduced in the same ratio as all
others, and that they have the pledge from a Board of
Directors whose personnel means good faith.
In again advising the purchase of "Amalgamated" I call
attention to the names of the men who are to conduct it to a
future, and to the fact that from its inception it will
surely give a return of over 8 per cent. per annum on its
par.
THOMAS W. LAWSON.]
"Absolutely necessary, Mr. Rogers," I returned without an instant's
hesitation. "Now let us run over the situation finally, for I want to
relieve your mind of the idea that I am doing anything selfish in
insisting on these conditions. When the public subscription is offered,
there must be a story of facts to go with it. Some one must make it. The
men who should, will not, although they are prepared to reap all the
benefits of what the man who will, says. It seems I am that man, and
what I say must be what I understand is the exact truth about the
enterprise. Well and good. It is essential for the one who assumes this
responsibility to do it in such a way that he can for all time show that
the men who benefited and upon whose say-so he acted were in every way
responsible for what he did. All this is undeniable. There are only two
possible considerations that enter into the problem: first, that the
facts I am to state are not true; second, that it devolves on me to
accept a risk those associated with me will not take. If the first can
be maintained, farewell to our enterprise, and get ready for the worst
financial scandal Wall Street ever faced. If it's the last--Mr. Rogers,
the 'Standard Oil' people are all very strong, but I don't believe any
of them would have the nerve to ask me to accept a risk they dared not
themselves undertake."
There was no escaping my conclusion, and unwelcome as the fact was, he
saw no further talk would avail, so he snapped:
"Draw up the advertisements you think proper. Have them ready in an
hour, and I will in the meantime see William Rockefeller and Stillman
and do what is necessary."
I noted the set of Henry H. Rogers' jaw and the down slant of his eyelid
as he uttered these words, and I had no doubt of the compliance of James
Stillman and William Rockefeller with whatever demands he chose to
propose that day. "Cyclones and thunderbolts! Heaven help these or any
others who venture to resist him in this mood," I inwardly commented,
"especially if they are of those with whom he has travelled the
'Standard Oil' blood-trail." My imagination showed me a picture of 26
Broadway and the National City Bank swaying and shaking like full-blown
hollyhocks in a gale.
I had my advertisements ready and was waiting when he returned.
"Lawson," said he peremptorily, "if your work will pass me you may go
ahead with it."
"You mean you have obtained all the consents necessary?"
[Illustration: INITIAL ADVERTISEMENT OF AMALGAMATED COPPER COMPANY.
=Amalgamated Copper Co.=
=Capital................$75,000,000=
This company is organized under the laws of the State of New
Jersey for the purpose of purchasing and operating
copper-producing properties. Its capital is $75,000,000,
divided into 750,000 shares of common stock, of the par
value of $100 each. It has no bonds or mortgage debt.
This company has already purchased large interests in
Anaconda Copper Company, Parrott Silver and Copper Company,
Washoe Copper Company, Colorado Smelting and Mining Company,
and other companies and properties.
MARCUS DALY, Pres.,
H. H. ROGERS, Vice-Pres.,
WM. G. ROCKEFELLER, Sec'y and Treas.
NEW YORK, April 28, 1899.
=OFFER FOR PUBLIC SUBSCRIPTIONS.=
Referring to the foregoing statement of the Amalgamated
Copper Company of New Jersey, notice is hereby given that
offers for subscription to 750,000 shares of the par value
of $100 each of the stock of the said copper company will be
received at the National City Bank of New York, until 12
o'clock noon, Thursday, May 4, 1899, at the rate of $100 per
share.
Subscriptions must be addressed to the said bank and
accompanied by a certified check to its order for 5 per
cent. of the amount of such subscription, the balance to be
payable within 10 days after date of notice of allotment.
Temporary negotiable receipts on payment of sums due on
allotment will be issued exchangeable for certificates of
stock, as soon as same can be engraved.
In case of oversubscription, allotment will be made pro
rata. The right is reserved, however, to reject any
subscription.
NEW YORK, April 28, 1899.
NATIONAL CITY BANK OF NEW YORK,
JAMES STILLMAN, President.
=52 WALL STREET, NEW YORK.=]
"I mean that we will waste no more words on this matter. The
advertisements you can convince me are right you may have inserted in
the papers, and no one will say a word publicly or otherwise. Neither
William Rockefeller, his son, Stillman, the Bank nor any officer or
director of the Amalgamated Company will talk until after the
subscriptions have been closed and the allotments made; not one word
but what you say or print will be uttered. Can you ask anything more
than that?"
"Not a thing more."
I then laid out the rough copies of what afterward appeared in the
papers throughout the country (reproduced on pages 336 and 338).