"Any advantage? Major, I am surprised at you! A place settled mo" than one hundred years ago, belongin" to one of the vehy fust fam"lies of Virginia, not to be of any advantage to a new enterprise like this!
Why, suh, it will give an air of respectability to the whole thing that nothin" else could ever do. Leave out Caarter Hall, suh, and you pa"alize the whole scheme. Am I not right, Fitz?"
"Unquestionably, Colonel. It is really all the life it has," replied Fitz, solemn as a graven image, blowing a cloud of smoke through his nose.
"And then, suh," continued the colonel with increasing enthusiasm, oblivious to the point of Fitz"s remark, "see the improvements. Right here to the eastward of this cheese we shall build a round-house marked by this napkin-ring, which will accommodate twelve locomotives, construct extensive shops for repairs, and erect large foundries and caar-shops. Altogether, suh, we shall expend at this point mo" than--mo"
than--one million of dollars;" and the colonel threw back his head and gazed at the ceiling, his lips computing imaginary sums.
"Befo" these improvements are complete it will be necessary, of course, to take care of the enormous crowds that will flock in for a restin"-place. So to the left of this napkin-ring, on a slightly risin"
ground,--just here where I raise the cloth,--is where the homes of the people will be erected. I have the refusal"--here the colonel lowered his voice--"of two thousand acres of the best private-residence land in the county, contiguous to this very spot, which I can buy for fo" dollars an acre. It is worth fo" dollars a square foot if it is worth a penny. But, suh, it would be little short of highway rob"ry to take this property at that figger, and I shall arrange with Fitz to include in his prospectus the payment of one hundred dollars an acre for this land, payable either in the common stock of our road or in the notes of the company, as the owners may elect."
"But, Colonel," said I, with a sincere desire to get at the facts, "where is the Golconda--the gold mine? Where do I come in?"
"Patience, my dear Major; I am coming to that.
"Fitz, read that prospectus."
"I have," said Fitz, turning to the colonel, "somewhat modified your rough draft, to meet the requirements of our market; but not materially.
Of course I cannot commit myself to any fixed earning capacity until I go over the ground, which we will do together shortly. But"--raising the candle to the level of his nose--"this is as near as I can come to your ideas with any hopes of putting the loan through here. I have, as you will see, left the t.i.tle of the bond as you wished, although the issue is a novel one to our Exchange." Then turning to me: "This of course is only a preliminary announcement."
THE CARTERSVILLE AND WARRENTOWN AIR LINE RAILROAD.
THE GARDEN SPOT OF VIRGINIA SEEKS AN OUTLET TO THE SEA.
CAPITAL ONE MILLION OF DOLLARS, DIVIDED INTO
50,000 Founders" shares at .... $1000. each 5,000 Ordinary " " .... 100.00 "
BONDED DEBT FOR PURPOSES OF CONSTRUCTION ONLY.
ONE MILLION OF DOLLARS IN 1,000 FIRST MORTGAGE BONDS OF $1000.00 EACH.
FULL PROTECTION GUARANTEED.
The undersigned, Messrs. . . . . offer for sale $500,000.00 of the 6% Deferred Debenture Bonds of the C.& W. Air Line Railroad at par and accrued interest, together with a limited amount of the ordinary shares at 50%.
Subscription books close. . . . . Promoters reserve the right to advance prices without further notice.
"There, Major, is a prospectus that caarries conviction on its vehy face," said the colonel, reaching for the doc.u.ment.
I complimented the eminent financier on his skill, and was about to ask him what it all meant, when the colonel, who had been studying it carefully, broke in with:--
"Fitz, there is one thing you left out."
"Yes, I know, the name of the banker; I haven"t found him yet."
"No, Fitz; but the words, "_Subscriptions opened Simultaneously in New York, London, Richmond_," and"--
"Cartersville?" suggested Fitz.
"Certainly, suh."
"Any money in Cartersville?"
"No, suh, not much; but we can _subscribe_, can"t we? The name and influence of our leadin" citizens would give tone and dignity to any subscription list. Think of this, suh!" and the colonel traced imaginary inscriptions on the back of Fitz"s prospectus with his forefinger, voicing them as he went on:--
The Hon. JOHN PAGE LOWNES, Member of the State Legislature..
1,000 shares The Hon. I.B. KERFOOT, Jedge of the District Court of Fairfax County....... 1,000 shares Major THOMAS C. YANCEY, Late of the Confederate Army... 500 shares
"These gentlemen are my friends, suh, and would do anythin" to oblige me."
Fitz sharpened a lead pencil and without a word inserted the desired amendment.
The colonel studied the doc.u.ment for another brief moment and struck another snag.
"And, Fitz, what do you mean, by "full protection guaranteed"?"
"To the bondholder, of course,--the man who pays the money."
"What kind of protection?"
"Why, the right to foreclose the mortgage when the interest is not paid, of course," said Fitz, with a surprised look.
"Put yo" pencil through that line, quick--none of that for me. This fo"closure business has ruined haalf the gentlemen in our county, suh.
But for that foolishness two thirds of our fust families would still be livin" in their homes. No, suh, strike it out!"
"But, my dear Colonel, without that protecting clause you couldn"t get a banker to touch your bonds with a pair of tongs. What recourse have they?"
"What reco"se? Reorganization, suh! A boilin"-down process which will make the stock--which we practically give away at fifty cents on the dollar--twice as valuable. I appreciate, my dear Fitz, the effo"ts which you are makin" to dispose of these secu"ities, but you must remember that this plan is _mine_.
"Now Major," locking his arm in mine, "listen; for I want you both to understand exactly the way in which I propose to forward this enterprise. Chad, bring me three wine-gla.s.ses and put that Madeira on the table--don"t disturb that railroad!--so.
"My idea, gentlemen," continued the colonel, filling the gla.s.ses himself, "is to start this scheme honestly in the beginnin", and avoid all dissatisfaction on the part of these vehy bondholders thereafter.
"Now, suh, in my experience I have always discovered that a vehy general dissatisfaction is sure to manifest itself if the coupons on secu"ities of this cla.s.s are not paid when they become due. As a gen"ral rule this interest money is never earned for the fust two years, and the money to pay it with is inva"ably stolen from the princ.i.p.al. All this dishonesty I avoid, suh, by the issue of my Deferred Debenture Bonds."
"How?" I asked, seeing the colonel pause for a reply.
"By cuttin" off the fust fo" coupons. Then everybody knows exactly where they stand. They don"t expect anythin" and they never get it."
Fitz gave one of his characteristic roars and asked if the fifth would ever be paid.
"I can"t at this moment answer, but we hope it will."
"It is immaterial," said Fitz, wiping his eyes. "This cla.s.s of purchasers are all speculators, and like excitement. The very uncertainty as to this fifth coupon gives interest to the investment, if not to the investor."
"None of yo" Irish impudence, suh. No, gentlemen, the plan is not only fair, but reasonable. Two years is not a long period of time in which to foster a great enterprise like the C.& W.A.L.R.R., and it is for this purpose that I issue the Deferred Debentures. Deferred--put off; Debenture--owed. What we owe we put off. Simple, easily understood, and honest.
"Now, suh," turning to Fitz, "if after this frank statement any graspin"
banker seeks to trammel this enterprise by any fo"closure clauses, he sha"n"t have a bond, suh. I"ll take them all myself fust."