"What has he to do with it, Lady Pat?"
"He took Alice"s money and made a whole lot more with it, and I"m going to tell you how to do it, too."
Patricia danced before him on the hall rug, clapping her hands together with joy and excitement. Suddenly she paused in her gyrations, and, placing her mouth close to his ear, she whispered:
"Buy some storks from the New York Railroad."
Allen jumped to his feet as if he had been struck. "What did you say?"
he demanded, seizing the child almost roughly by the wrist; but Patricia attributed his action to excitement and joy equal to her own, so accepted it cheerfully.
"That is it," she repeated, firmly. "I"m sure, for I wrote it down just as soon as I heard it. I knew I should need it some time. Storks must be very valuable birds, because Mr. Covington told Alice not to tell; and he made thirty--thousand--dollars for her. Now, you"re smarter than Mr.
Covington, and you can make a hundred thousand. Will you?"
"I"ll start right out and see what I can do." Allen tried to keep the child from seeing his excitement. "I haven"t time to stop to tell you how naughty it is to listen. If I don"t go right now the storks may all be gone, and then of course we couldn"t make any money. Good-bye, Lady Pat--I"ll try hard, but don"t be disappointed if there aren"t any left--good-bye."
Allen rushed from the house and, hailing a pa.s.sing taxi, ordered the chauffeur to drive to the office, although it was now nearly six o"clock.
XXI
With characteristic energy Gorham made good the promise given to Allen to investigate matters at the office, and not many days after his return to his desk he issued a call for a special meeting of the Executive Committee. He looked upon it almost as a weakness to have permitted this boy"s unsupported statements to influence him even to this extent, but he justified himself by the knowledge that a confirmation of the loyalty of his a.s.sociates would give him renewed strength.
The day of the meeting found every member of the committee present--a fact which interested Gorham as an evidence of the devotion of these men to the responsibilities which rested upon them. But the routine business had no sooner been completed than the president became aware that the harmony which had existed from the beginning was in danger of being disturbed. Inquiries were made which were too significant to be overlooked, and veiled criticism came from quarters where previously he had believed existed absolute confidence in himself and full approval of his methods.
"It is well to have this come to a head," Gorham remarked after several had expressed their views. "This corporation is so gigantic that it must fall of its own weight unless every part of its structure be sound and effective in bearing its share of the load. There is no stability where there is lack of harmony, and what you gentlemen have said to-day shows beyond question that radical and immediate action is imperative to preserve to our stockholders what we have already gained for them, and to secure the future benefits which are a.s.sured, provided the Companies itself can act as a unit. Now, in order that we may clearly understand the situation, will not Mr. Litchfield state specifically the criticism implied in his remarks?"
Litchfield rose deliberately from his seat. He was the head of certain large gas-works which the corporation had acquired in connection with its consolidation of the lighting interests in Philadelphia.
"Before complying with Mr. Gorham"s request," he began, "I wish to say that nothing is further from my intentions than to cast aspersions either upon our president or his motives. During the time I have served on this committee I have been amazed by the increasing realization which has come to me of the marvellous success he has achieved in developing the Consolidated Companies to the point it has reached to-day. Many of us have contributed in a smaller or greater degree to its success, but it has been his master mind which has antic.i.p.ated the conditions and provided the means to make the most of them. But it is also true that in doing this Mr. Gorham has, in my opinion, deliberately neglected to secure for the Companies as large returns as might have been gained. In the Philadelphia Lighting Company, for example, with which I am naturally more familiar than with any of the other ramifications of the Consolidated Companies, Mr. Gorham has voluntarily reduced the rates when the consumers had expressed no general discontent with the former prices. It is true that the consolidation effected great economies in the production, but it is entirely obvious that the profits to the company would be greater if we were receiving the full advantage of the economies by still selling our product at the old rates. And this case which I have cited is, I understand, a fair sample of Mr. Gorham"s policy in all other directions. I can appreciate the desirability in the past of giving the people the advantage in a few transactions in order to create public confidence; but to continue to make a practice of so doing appears to me to be unnecessary and, I may say, unbusinesslike."
After Litchfield sat down Gorham called upon several others, some of whom expressed themselves, with more or less frankness, along the same line.
"Then it all sums itself up in this," he said at length, after having invited remarks from those who cared to take part in the discussion: "Your president has been guilty of not making the most of the opportunities which he himself has created."
This seemed to be the sense of the meeting.
"Then let me ask a few questions," continued Gorham. "Mr. Litchfield has told us of the reduced cost of production in his plants as a result of our consolidation. Will he not further state how great that economy is?"
"Thirty-three and one-third per cent.," was the prompt reply.
"And we have reduced the rate how much?"
"Fifteen per cent."
"How much has the business increased during the past year?"
"About twenty per cent."
"And the balance-sheet shows what as to profits?"
"About twenty-five per cent. larger than any previous year."
"In spite of the reduced rates," Gorham added, significantly.
"But they would have been larger still if the old rates had prevailed,"
Litchfield insisted.
"I cannot agree with you," Gorham said, firmly. "Your concern had been standing still for six years when we took hold of it--the business had even gone backward the last year--yet in two years" time, under our administration, it shows a gross gain of thirty-three and one-third per cent. and a net gain of twenty-five. I am enlarging on Mr. Litchfield"s case because, in a measure, it is an answer to you all, and a full justification of the basis upon which I have rested and shall continue to rest the operations of the Companies. It has been my pride that it was possible to administer the affairs of this corporation in such a way that not only could we boast that during the five years of our business existence we had lived up to the principles on which we originally built, but also that we have proved it a sound financial proposition.
Never before in the history of the world has any body of men a.s.sociated themselves in business with the avowed purpose of making their organization an advantage to the people, without either failing signally in their undertaking or proving themselves false to their responsibilities. We have reached a point where failure is impossible; we find ourselves receiving greater returns upon our investment than is yielded by any other organization in existence. Can it be possible that there is one man among us who wishes to take away from the Companies the unique position which it has now gained?"
It was evident that Litchfield had been appointed the spokesman for the committee, as he immediately a.s.sumed the responsibility of replying to Gorham"s remarks.
"May I not ask our president if he does not overestimate the importance of standing up so straight that there is danger of falling over backward? There is no difference of opinion as to the commercial value of the great a.s.set which he has established for the Companies, in so completely winning the confidence of the people at large as well as those who hold high positions of trust. We should stultify ourselves were we to take any such stand, for the profits of the Companies are an irrefutable argument. The question before us, then, is not one of fact, but rather of degree. Why should we spend these further millions to gain that which we have already secured? We should still so administer the affairs of the Companies as to hold this great advantage, but I maintain that we should pay no more to hold it than is absolutely necessary."
Gorham glanced around to see if any one else was disposed to add to what Litchfield had said, but the silence which prevailed indicated more clearly than words that the speaker had expressed the consensus of opinion.
"I am waiting for some one to remind Mr. Litchfield that he has overlooked, in his statement, a fact which possesses vital significance," Gorham said at length. "The Consolidated Companies has received from the people concessions which it has succeeded in making immensely valuable. It has accepted these concessions in trust upon the distinct understanding that those who gave them should receive equal benefit. So far, this trust has been religiously observed. Every dollar of profit which the stockholders have divided represents a like amount paid back to those to whom it belongs. To pay them less would be not only a breach of faith, but would be to retain that which does not belong to us. It is not for Mr. Litchfield or for me to determine the amount--the proportion has already been settled by our original covenant."
Litchfield moved uneasily in his chair as Gorham ceased speaking.
"You put it in rather a disagreeable form, Mr. Gorham. Perhaps the fact that you have been talking this side of the enterprise for so long has made you a.s.similate more of your own theories than is ordinarily the case. Of course, in the beginning, it was necessary to make the statements strong in order to be convincing, but there was no "covenant," as you call it, and the people are not in a position to exact an equal division unless we choose to give it to them."
"Can it be that I understand you correctly?" Gorham demanded, with mingled indignation and amazement. "Do you mean to imply that I have not been sincere in stating to the public the original basis upon which we incorporated? Do you suggest that when one party to the agreement has lived fairly up to his end of it we, the other party, should neglect to do the same, simply because he has no access to our books and no power to demand an accounting?"
"You are far too literal in your interpretation of my remarks,"
Litchfield protested, with some warmth. "This parallel you have drawn is absurd on the face of it. There has been no legal agreement that we should treat the dear public as if it were in actual partnership with us. You have held out certain inducements which have secured for us the concessions, and we have made good the promise you gave that our success meant advantage to the people. But all this was a means to an end. For five years the public has shared equally with those of us who have put money and brains into the Consolidated Companies. No one suggests that the people should not still continue to receive benefits, but those of us here present are unanimous in our conviction that the time has now come to conduct the Companies upon a strictly business basis. This is not the age for quixotic sentimentality, and the Consolidated Companies not only possesses the right, but the power to maintain its position upon the same basis as other smaller and less powerful organizations.
Speaking for myself alone, I am amazed that Robert Gorham, with his exceptional and acknowledged business ac.u.men, should take a position with his Executive Committee which is as disadvantageous to his own interests as it is to the stockholders"."
No one but Gorham himself saw the mist which momentarily rose before his eyes, yet, when it pa.s.sed, his vision was clearer than it had ever been.
The men sitting around him represented the flower of the business world, each one of whom stood before his fellow-men as a tangible expression of honor and integrity. Yet not one was able to comprehend Gorham"s viewpoint, not one could be anything but incredulous that he stood sincere in the position he had taken. This was what hurt him most. The applause which his a.s.sociates had awarded him had been as that won by a clever actor rather than, as he had believed, the responsive echo forced from their souls by the battle notes of a new cause. Their acceptance of his doctrines had been because his arguments had persuaded them of the material side of the enterprise. The very magnetism which they had felt exercised by him upon themselves they had capitalized as an a.s.set to be a.s.sayed when once the ore was stopped. All the high-sounding claims were turned at this moment into empty plat.i.tudes. All his promises were valueless beyond his personal strength to make them good. To this extent Allen had been right, but it was not too late to recognize the danger and to meet it. His a.s.sociates saw the Robert Gorham they thought they had known for five years sitting in repose before them while this realization of the situation surged through his brain--they saw the real Robert Gorham when he rose to his feet, and faced them with a force they felt before a word was spoken.
"I could not have believed it possible," he said, "for a moment such as this ever to arrive. I have lived in this business Utopia for five years, blind to the fact that those who labored with me failed utterly to comprehend or to appreciate the sincerity of my motives or the integrity of my purpose. I admit that I question my ability to make clear to you by words what my acts have not conveyed. During these years, and until to-day, you have accepted my judgment as supreme, and for the first time I realize that this was not because you believed in it, but because you saw in it advantage to yourselves. The gratification which I have enjoyed from this supposed tribute has vanished, like the empty bubble that it was. It has been said that the Consolidated Companies was a one-man corporation, which I have denied, believing that my labors were rather those of the pioneer, showing the way to those a.s.sociated with me who would naturally follow my footsteps. Again, I was wrong: this has been a one-man corporation, and it is so to-day. Not only has the creation of it been mine and mine alone, but also the successful putting into execution of those principles which I alone devised. The credit for this, which I have until now proudly conceded to you, I a.s.sume wholly for myself, and I also give myself the further credit of having, unknown to myself, been the single force which has compelled you to live up to the high standard I established.
"Now, as the parent of this child which I have seen develop to this point under my guidance and protection, I stand here prepared to fight for its honor against you who threaten its destruction--and I warn you that the parent love dares much. As the Roman Virginius stood with his sword p.r.i.c.king the flesh over the heart of his beloved daughter, so do I stand ready to destroy my offspring rather than suffer its dishonor at the hands of any Appius Claudius. Gentlemen, the Consolidated Companies has been a one-man corporation in the past through your sufferance; from to-day, if it exist at all, it shall be a one-man corporation because of my will. You know that these are no idle words. You know what would be the result of a single statement from me that the Companies repudiates its a.s.sumed responsibilities. I do not ask--I demand that you gentlemen, as the Executive Committee of the corporation, pa.s.s such resolutions as will place the authority absolutely in my hands. I ask Mr. Litchfield to take the chair, while I retire to give you ample opportunity for discussion. However hard it may be for your personal pride, you will have to do this--you have too much at stake to gratify your resentment of my autocracy. But if you can gain any consolation in the knowledge that you have dealt your president a blow from which it will take long for him to recover, I beg of you to make the most of it. I believed that power was the supreme lever with which to move the world, and that money was but the fulcrum upon which that lever should rest. You gentlemen have shattered this belief, and have shown me that sordid gold is the controlling object of man"s life. Still, I prefer to remain in my Utopia, alone if need be, but with your unwilling company so long as my present strength shall last."
Gorham closed his eyes involuntarily as he ceased speaking, still standing before his a.s.sociates. A single tremor pa.s.sed over his face, and then it was as impa.s.sive as before. With a bow as courteous as it was impressive, he left the room.
XXII
When Covington entered Gorham"s office an hour later he found his chief bowed forward on his desk, his head resting upon his hands. As the door closed the older man raised his eyes, and the change in his face caused Covington to stop in surprise. The usual color was replaced by a dull, ashen gray, the lines had deepened, and the general aspect was that of a man ten years older.
"Everything is all right, Mr. Gorham," Covington remarked, encouragingly. "They pa.s.sed the resolutions you demanded."