THE AFTERMATH
It was just past the midnight of May 4th. The last newspaper-man had
taken his departure, my friends had all retired, and I was alone for the
first moment since the news had come from the City Bank. I had not then
stopped to analyze its character, for there had been only time to
announce it. Now, however, I sat down at my desk and with a pencil and a
piece of paper began to cipher out what the "412 millions" meant. As I
figured, cold sweat began to gather on my forehead, and the further I
figured the colder the sweat, until at last in an agony of perplexity I
again called up Mr. Rogers. My agitation must have betrayed itself in my
voice, though I tried to assume a tone of calm inquiry.
"Mr. Rogers," I said, "I've been vainly trying to figure out the meaning
of the subscription figures you gave me and I cannot make head or tail
of them. You said '400 to 425 millions'; of course that means you have
put in our dummy subscription, but what was the real subscription? It is
absolutely essential that I know to-night, for in the morning I shall be
besieged for information, and ignorance on my part may get all hands
into trouble."
"Lawson," he replied, "you must not talk such things over the wire--you
don't know who is listening. You must not."
"I can't help it," I replied determinedly. "I positively must have the
real figures, for even you and Mr. Stillman may have made a slip-up and
I want to work the thing out so that I may have it clear in my head for
the morning. It is essential."
He realized that it was useless to try to escape my insistence, and he
snapped out:
"All I can say now is, it is between 125 and 150 millions real, solid
subscriptions, backed with actual money. We haven't got it figured out
within some millions, and won't before to-morrow, when we will put in
our subscription for the right amount, but we know it is surely between
these two figures, and that each subscriber will have about one share in
five, so we shall have a good, strong twenty-five per cent. margin. That
is all I will or can say to-night."
I heard the sharp click as he hung up the receiver.
I went back to my pencil and pad and began again the interminable
figuring. My head throbbed and my senses reeled. In those still, dark
hours of the early morning I covered sheet after sheet with figures, all
of which had for a basis 125 to 150 millions, 400 to 425 millions, one
in five, and twenty-five per cent. margin, and these figures I turned
and twisted in a vain, vain effort to bring out something with fifteen
millions for an answer.
"No, it will not come," I said to myself at last in hopeless despair.
Numb and dull, I leaned back in my chair with half-closed eyes, while
night, that master phantom maker, played upon my harried nerves and
distraught mind. Stealthily out of his murky caldron the ghosts and
goblins crept. I saw the spectres of all my dearest dreams trail
slouching by, jostled and driven by sneering bullies. I saw a great
company of scowling men, wailing women, and little children, with drawn,
pinched faces, and they seemed to point at me as they plodded past,
muttering, "But for you." Then, to the clanking of chains, hoarse
curses, and the sharp whip-snap, lines upon lines of men in striped
suits, with cropped heads, and faces branded by despair, filed up.
Faintly a mutter of sobs and groans echoed, "But for you." The clanking
ceased; there came the slow shuffling of many feet, and a procession of
men, bearing stretchers on which lay shrouded figures, advanced into
view. Like a solemn knell upon my ear smote the reproach, "Suicides
because of you." And now out of the caldron sprang a mob of goblin
dollar-signs compounded of blood-red snakes and copper bars, that
danced a mad saraband around my chair to a weird chorus of, "But for
you." Transfixed and aghast I stared at the train of awful forms. So
real were they, they seemed almost to touch me as they swept onward. At
last, with a convulsive effort, I threw off the spell, banished the
phantasms of my frightened brain, and shook myself together with a: "You
have work ahead and dreaming will not do it for you."
Back into my mind trooped the unanswerable, cold realities. There could
be no doubt that the announcements in the morning papers would surprise
those who had been led to expect an allotment of one share in twenty or
thirty and had subscribed accordingly, and likewise those who had
expected to get all, or at least one out of two. There might be murmurs
of foul play and a general suspicion that trickery had been practised.
Looking at the situation, I saw that upon me the chief blame must fall,
and that it behooved me to think soundly and quickly over what had best
be done to protect from the impending massacre those whom I had lured
into the ambush. The smoke-wreaths had all gone out of my brain now, and
as the known factors began to group themselves symmetrically before my
mind I forced myself to face certain all-too-evident facts: Rogers and
Stillman had plainly hoisted the black flag; they had broken all their
promises to me and assuredly had no intention of carrying out to the
public the pledges I had made on their behalf; they would handle this
affair as they had others I knew about--only to extract the greatest
number of dollars from it--and in the course of their operations I and
my friends would probably be sent through the crusher with the rest. All
this being true, I could do little by denunciation or exposure, for
these men, caring nothing for the sufferings of others, would not fear
the consequences of their own acts; my only hope was to meet them on
their own ground and outplay them at their own game. Then and there I
determined on my course--to compel them to undo the wrongs they had
committed and, if so great an achievement were possible, put the people
in position to do to them what they had done to the people. An almost
hopeless resolution at that juncture, it would seem, but, as results
have shown, by no means out of the power of man's accomplishment.
This is what I reasoned out before I retired to bed: If the actual
subscription were 125 to 150 millions, then six to eight millions of
real cash had been paid into the National City Bank. On an allotment of
one share in five, these six to eight millions represented a margin of
about twenty-five per cent.--big enough to cover any ordinary drop in
the price of the stock, and big enough also to lead those to whom shares
had been assigned to make good the balance. But to meet this allotment,
a very large bogus subscription had been necessary, and therein I saw
the weakness of Rogers and Rockefeller and the weapon that Providence
had intrusted to my hands.
Mr. Rogers' uncertainty as to the totals of the subscription made it
evident that the bogus subscription was not in the bank even yet, and as
it must be for a definite amount and backed up by a five-per-cent.
check, it could not be put in until James Stillman's clerks had computed
to the last cent the public's applications, and that enormous piece of
work would not be completed on the next day nor even the day following.
This bogus subscription was already outlawed--its insertion even at the
present moment would have been criminal; how much worse the criminality
if days were allowed to elapse between the legally fixed last moment for
bids and the actual time at which this outlawed subscription was
admitted. And as the transaction involved the making of a large check
and other formalities, it was obvious it was not one that could be
easily concealed. It must be a part of the bank's records. If I but
played aright the cards Dame Fate had put into my hands, I might yet
redeem myself and save the public I had led into the trap. But as clear
as the new moon against a November sky stood forth the warning that if I
attempted to cut into a "Standard Oil" game, I must play cards their
way--dispassionately, scientifically, with no sentiment nor
consideration for adversary or partner. With this conviction I went to
bed.
It was quite early on the following morning that I met Mr. Rogers, and
without giving him time to begin the conversation, for I was determined
he should have no provocation for the break with me that I guessed he
had on his programme, I started in:
"I have been figuring this thing out, Mr. Rogers, and I think I see
things as they are, and although I might not have handled it as you and
Stillman did, it is done, and the only thing to do now is to make some
arrangements to keep the subscribers feeling good until the stock gets
to a round premium. Of course it would not do to have any slump below
par until after the receipts are issued and the whole amount of the
subscriptions paid up."
Mr. Rogers looked me over, very suspiciously at first, then brightened
up, and it did not require an extra eye to see he was agreeably
surprised at my cheerful attitude. Doubtless he explained to himself the
change on the ground that "He at last sees the dollars he is to have."
"What suggestion have you, Lawson, as to what should be done this
morning?"
"Only that all hands look happy, talk big, and do all possible to keep a
good premium on the stock to be delivered when issued. By the way, have
you and Stillman changed the scheme about putting all the cash received
behind the stock?"
This I asked in as mild a tone as possible, and tried to convey by my
voice the suggestion, "Because you may have had good reason to, and if
you have I will not kick over the traces." It took every ounce of
will-power in my armament to keep from grating my teeth as I so spoke.
Again his eyes bored piercingly into mine, and I felt as though all the
man's mental faculties were ranged to assail me, but I guess I ran the
gauntlet.
"Yes," he said slowly, "we have changed it some. The fact is, Lawson, I
have agreed to leave that part wholly to Flower and Stillman, while I
run out of town for a few days." I had steeled myself to play the game
and said not a word, but silence was a mighty effort. "And," he went on,
"if I were you, Lawson, I should just dig out too for a while."
"What a heartless rascal!" was on my lips, but I gripped myself hard
and pushed the insult clear way back, and made never a protest by word
or look.
"I am afraid that won't be best," I said in an every-day, pondering
tone. "There are lots of sharp chaps on 'the Street' who will insist on
asking questions, questions Flower cannot possibly answer, and in a jiff
they might start in to offer the subscriptions down, and before one
could whistle a bar from 'Wait Till the Clouds Roll By' the air might be
full of falling stars."
This seemed to strike home.
"Well, what have you to propose?" he asked.
"Some one should be ready in the market to take any amount of stock--" I
argued.
He interrupted in his old aggressive way before the sentence was half
out of my mouth:
"Cut that line out, Lawson; I told you Flower has that end of the affair
entirely in his hands."
And at this point my resolution to keep quiet and play the game did
almost go by the board. For a second I literally boiled. Then there
flashed before my mind's mirror the dreadful procession of the night
before, and I once more held tight and, oh, so deferentially and
politely, like a chastened school-boy, went on:
"Oh, that will be all right. I was not going to suggest that you let me
interfere with Flower's plans, for I can gather, Mr. Rogers, that you
and the others have decided on doing things your own way, and you can
rest easy I shall not interfere."
"That's something like, Lawson," he said, with a heartiness I could see
was from the lower hold. "That's the way to look at a big thing of this
kind, and if we all just pull together for a while we shall have your
old plans going like oil again."
Yes, Mr. Rogers was plainly pleased at my complaisance and the prospect
of using me to gather in another harvest of dollars later. Playing my
game, I pursued:
"Is it fair, Mr. Rogers, to ask what arrangements Stillman has made for
loaning money to those who may want to borrow on their subscriptions?
You know we gave out before the subscription was opened that the City
Bank would loan on the stock?"
"That is one of the things I was going to tell you, Lawson. Flower is
going to let it be known that any one and every one who cares to, can
borrow the remaining seventy-five per cent. at the City at going rates,
so there will be no excuse for any one selling."
There it was as plain as a haystack: it was the old trap, the old
ambush; within were the victims lured there by the cupidity which I had
played upon; the bars were up now and "Standard Oil" was ready to begin
its familiar trick of going through their clothes.
Already "Standard Oil" had laid its hands on the amount each subscriber
had paid in, which represented twenty-five per cent. of the total value
of the shares allotted. The National City Bank would generously loan the
balance. A little later an accomplice would cause a flurry in the
market. The loans would be called and, automatically, the stock,
together with the money that had been paid for it, would fall into the
greedy maws of Rockefeller and Rogers. No fluttering fly was ever so
surely enmeshed and at the mercy of weaving spider as the unfortunates
whom I had so decoyed to the "Standard Oil" web. With the most valiant
assumption of indifference, I continued:
"That being the case, it cannot possibly interfere with Flower's set-out
for me to spread the news, too, that any one who wants to borrow the
balance of his subscription can get it from Stillman's Bank?"
"You can do better than that, Lawson," said Mr. Rogers with an air of
real cordiality. "You can let it be known to the brokers and the Wall
Street men that any good house can borrow all it wants on Amalgamated to
the extent of ninety cents on the dollar. Of course, this won't be for
irresponsible outsiders, for the stock might break below ninety, but
give the word that any responsible broker can always borrow as high as
ninety dollars a share for those who want the stock on margin."
"That will help things," I answered. "Now, Mr. Rogers, let me tell you
what I have decided to do on my own hook. Don't misunderstand me; it
has nothing to do with you or the rest, and, of course, none of you will
object to my doing all I care to on my own account. As you said
yesterday, one portion of our job is finished, and we have thirty-six
millions' profit. This means either cash or its equivalent, stock, which
at par or over is as good as cash, at least as good as ninety, which I
can have my brokers borrow at the City. I calculate that my share is
nine millions less whatever you have given away in the handling of the
enterprise."
I paused as I saw a black cloud gathering on his face at my mention of
nine millions of dollars, but before he could object I went on:
"I understand, of course, that the expense and the shares you have had
to give to others represent a huge total. At the same time there have
been huge profits on the side. There is no necessity to enter upon what
is coming to me just now, but what I intended to say was this: I have
millions with you and Mr. Rockefeller--millions more than I owe you on
account of Butte and other Boston stocks of the second section. Now, I
propose to take a million or two of that and start in on my account to
support the market right from this morning; independent of Flower or
your other operations, I will see if I cannot get up a good feeling."
At once the frown relaxed and his set features broke into a smile of
gratification.
"That's something like it, Lawson," he said. "When you get down to real
business we never have differences. It is only when you start up that
confounded croaking about what we must do for the people, that I get
angry."
"All right, Mr. Rogers," I answered. "Let those things drop and, as you
say, we'll keep down to business. How much can I depend upon drawing
from my account this morning, provided I want it?"
"How will two millions do?" he answered cheerily.
"Plenty," I said.
"All right; I will notify Stillman that you or your brokers may want to
borrow up to that, and if you need the Amalgamated stock, you can have
it at any time. I will leave word to that effect with Curtis."
Curtis was William Rockefeller's secretary and right-hand man, who then
handled the details of all their financial matters.
Before leaving I indicated to Mr. Rogers the details of my proposed
actions, and explained that I had sent for my principal Boston brokers
who would be with me on Wall Street to help steer the craft. Evidently
my plans met his personal approval. Indeed, from the change that had
come over his manner I realized that he felt he had been spared a
disagreeable task and that my shift had been a pleasant surprise to him.
It was plain that he and Stillman had decided that I must be thrown to
the sharks if I kept on my old tack, and were therefore gratified to
find that I was not only ready to assist in steering the ship their way,
but also willing to feed the engines coal at my own expense to keep up
her speed. In spite of Mr. Rogers' confidence in Governor Flower's
ability to take care of the market, it was a great relief to his mind to
know that I should be there, for he realized that no one, however able
and popular--and Governor Flower was both to an unusual degree--could
possibly take up such an intricate bunch of lines as those with which we
had been driving, without a lot of feeling-out practice.
There was another aspect of the situation that had been suggested to me
by a certain passing twitch of his lip that I had noted when I had said
I proposed putting some of my own millions behind the market. It was as
though the tongue had involuntarily started to lap the chops for blood,
and I scribbled a memo on my mind's black-board, "Think over whether he
does not intend to set traps for your share of the spoils."