"Then what? Go on, and don"t make me pump the information out of you, as if you were a well or a leaky barge."
"The fact is," Duncan spoke very seriously now, "that a little while ago I was betrayed by own emotions into declaring my love for Barbara, much sooner than I had intended--before she was prepared to hear it."
"Oh, nonsense! As if a girl ever needed preparation for a declaration of that sort from--- well, from the right sort of man. But go on, you know the carriage is waiting. Tell me. Has she accepted you?"
"No."
"Has she rejected you?"
"No."
Here Mrs. Duncan again rang the bell, and a servant appeared so promptly as to suggest that she had been listening just outside the door.
"Tell my maid to get into the carriage and go and fetch Miss Barbara Verne. Tell her to say that I am detained here, and am forced to send my maid in my stead."
The servant said, "Yes"m," and withdrew. Then Mrs. Duncan resumed her questioning with manifest eagerness, but with as much of seriousness as Duncan himself had shown. There was no touch of flippancy, or even of lightness in either her words or her tone. For Mrs. Will Hallam was a woman of deep and tender feeling, a woman to whom all holy things were sacred.
"Tell me about it all, Guilford. I do not understand, and I must know. I need not tell you that my interest is not prompted by curiosity. I hold you as my brother, and I love Barbara. Tell me."
And Duncan did. As he outlined the compact that Barbara had insisted upon, the smiles replaced solemn apprehension on Mrs. Hallam"s face, as though she foresaw all she desired as the outcome of such an arrangement.
But all that she said was:
"I am greatly relieved."
XXVIII
THE BIRTH OF A GREAT RAILROAD
Upon becoming president of a strong bank, and the close a.s.sociate of Hallam and Stafford in all their undertakings, Guilford Duncan became at once a factor to be recognized and reckoned with in all enterprises with which he had to do. He had brains, character, and indomitable energy, and these had already won for him the respect of the men of affairs. Now that he had control of money also, his power and influence were multiplied many fold.
The time was one of expansion. The flood of irredeemable and heavily depreciated paper currency which had been issued under stress of war necessities, was producing the usual effect of inflation. It gave a false seeming of value to every purchasable thing. It caused rapid and great fluctuations in all markets. It lured men everywhere into speculation. It dangerously expanded credits and prompted men to undertake enterprises far beyond their means.
Very early in his career as a banker, Guilford Duncan discovered that half the merchants in Cairo were young men of little capital and small capacity, who ought to have remained salaried clerks. These had grown ambitious, set up for themselves, and were carrying large stocks of goods almost wholly upon credit. They were staggering under loads of debt on which they were paying ruinous rates of interest.
It was easy enough for him to protect his bank by gradually reducing its loans to such men as these, but the prudence thus exercised added to the number of his enemies. He cared little for that, so long as he knew his course to be right.
Looking further afield he saw that a like condition of things existed all over the West, and was the inspiration of much greater undertakings than those of the merchants and shopkeepers.
He used often to talk of these things with Hallam.
"You"re quite right," said that sagacious financier. "The country has gone on a big financial drunk, and of course the headache will come when the spree is over. But it won"t be over for a considerable time to come, and in the meanwhile the country is getting a good deal of benefit from it.
"Fortunately, it is taking a better course than such sprees usually do.
Ordinarily the existence of an inflated, superabundant, and depreciated currency results in a wild orgy of stock gambling, grain gambling, cotton gambling, and all the rest of it. There is no more of good in that--in fact, there is far more of harm in it to the country--than there would be if everybody went to betting at roulette or faro. It makes the lucky gamblers rich and the unlucky ones poor, but it produces nothing, even incidentally. This time the gambling is taking a more productive form. Instead of betting on market fluctuations, men are putting money into factories, mines, mills, and railroads--especially railroads. They are enormously overdoing the thing, but whenever they build a railroad, even unwisely, the railroad will remain as something to show for the money when the spree is over."
"That is true enough," said Duncan, "and of course all this railroad and other building is, incidentally, giving work and wages to great mult.i.tudes of men. But are we not paying too high a price for the good we get? We are building debts about forty per cent. faster than we are building railroads. Every mile of track is constructed with borrowed money, worth only about sixty cents on the dollar. Yet every dollar of these borrowings must some day be paid off in gold. And in the meantime the roads must pay a high interest rate on a dollar for every sixty cents" worth of money borrowed. I do not see how the country can stand it."
"It can"t, permanently, and you haven"t mentioned the worst feature of the matter."
"What is that?"
"Why, in the craze for building railroads, men are projecting and building many lines that are not needed at all. In some cases two, or even three, parallel roads are being built through regions that can never support more than one. It is sheer waste, and of course it means collapse sooner or later. But there is another side to the matter. The country is growing enormously in wealth, and still more enormously in productive capacity. Nothing helps such growth like the multiplication and extension of railroads. They bring men near to their markets. They make farming profitable where before it would have been a waste of labor. They multiply farms and towns, swell the population, and in that way make a market for manufactures. If we could cut out the parallel lines and other foolishly projected roads, I firmly believe the growth of the country in consequence of railroad building would more than compensate for the extra cost entailed upon us by borrowing at a time of depreciation in the currency. But we can"t prevent fool projectors from building foolishly, and some day the country"s sound business must shoulder all that load of bad investments. When a boy eats green apples he is in for a colic, but he generally gets over the colic. It will be so with the country."
Then the talk turned into a more practical channel.
"You feel sure, then," asked Duncan, "that we are making no mistake and doing no harm in carrying out our project of a railroad that shall bring Cairo closer to New York in the matter of railroad mileage?"
"Perfectly sure. That railroad is imperatively needed. It will develop a very rich agricultural region which has been practically shut off from the world. There is traffic enough for the road already within sight to make it pay. When it is built, it will compel a cheapening of freight rates to the advantage of the whole country."
"You are right, of course," answered Duncan reflectively. "I have gone over that subject very conscientiously. I am convinced that the road can carry the debt that must be incurred in building it, and that it will pay its way. If I had any serious doubt of that, I should have nothing to do with the thing."
"As it is," responded Hallam, "you"ve got the heavy end of the log to carry, so far as work is concerned. When are you going to begin your campaign?"
"Almost immediately. I"ve got everything in the bank into satisfactory shape now, and three days hence I shall begin a speaking tour in the interior counties. I"ll make it even more a talking tour than a speaking one. For while a public speech, if it is persuasive enough, may influence many, it is the quieter talking to individuals and small groups that does most to win votes. I"ve already secured the co-operation of all the country editors, but they need stirring up, and worse still they need somebody to tell them what to say and how to say it in their newspapers. Of course you and Stafford and Tandy will take care of Cairo and Alexander county."
This proposed railroad was one clearly destined to be of the utmost consequence to Cairo and to the region through which the line must run.
The method by which it was planned to secure its construction, was the one then in general use throughout the West. It may be simply explained.
Everybody concerned was asked to subscribe to what might properly have been called an inducement fund. The subscriptions were meant to be gifts made to secure the benefit of the railroad"s construction. More important than these personal subscriptions, and vastly greater in amount, were the subscriptions of counties, cities, and towns. Under the law as it then existed each county, city, or town, if its people so voted, could "lend its credit" to an enterprise of this kind by issuing its own bonds. When a sufficient sum was raised in this way, an effort was made, usually in New York, to secure the forming of a construction company. The whole volume of the subscriptions was offered as an inducement to such a construction company to undertake the building of the road. Usually the construction company was to have in addition a considerable share of the stock of the road when completed. The city, county, and town subscriptions, of course, depended upon the results of special elections held for that sole purpose.
In this case the personal subscriptions had been satisfactory, and there was no doubt that the two terminal cities, and the counties in which they lay, would vote the bonds asked of them. But there was grave doubt as to results in the rural counties, in each of which a special election was to be held a month or two later. It was Guilford Duncan"s task to remove that doubt, to persuade the voters to favor the proposed subscriptions, and incidentally to secure rights of way, station sites, etc., by gift from the land owners.
During the next two months he toiled ceaselessly at this task, going to Cairo only once a week to keep in touch with his bank, and to pa.s.s the Sundays with Barbara.
Tandy also worked in the county towns, where he had a good deal of influence. He had been made president of the proposed railroad, and was supposed to be very earnestly interested in it. He was so--in his own way, and with purposes of his own.
Duncan"s campaign was a tireless one, and it proved successful. When the elections occurred every county and every town voted in favor of the proposed subscription, but some of them did so by majorities so narrow as to show clearly how great the need of Duncan"s work had been.
"Worse still," he said to Hallam, a few weeks later, "the smallness of the majorities in two or three counties is a threat to us and a warning.
The county authorities are putting all sorts of absurd provisions into their subscriptions, and they will give us trouble if our construction company fails in the smallest particular to meet these requirements."
"Just what are the conditions?"
"Oh, every sort of thing. In every county it is provided that we shall somewhere break ground for construction before the last of January--less than two months hence--or forfeit the subscription. That gives us too little time for organization, but we can meet that requirement by sending a gang of men at our own expense to do a day"s work somewhere on the line. In two of the counties there is a peculiarly absurd provision.
There are rival villages there, one in each county, and the authorities have stipulated that "a track shall be laid across the county line and a car shall pa.s.s over said track from one county to the other" before the fifteenth of March. Curiously enough, I learn that Tandy himself suggested that stipulation to the county authorities. I hear he is giving it out that he had to do so to save the election, but that"s nonsense, just as the provision itself is. Such a requirement will greatly embarra.s.s us in our negotiations with capitalists. For the line will not be fully surveyed by that time, and n.o.body can tell, till that is done, precisely where the road ought to cross that county line, or at what grade. I can"t imagine what Tandy meant by getting such a provision inserted."
"Neither can I," answered Hallam; "but we"ll find out some fine morning, and we must be prepared to meet whatever comes. He"s up to some trick of course."
XXIX
A Sc.r.a.p OF PAPER