by W. W. Jacobs
ENTRY NO. XX
FAT EWES AND SHARP KNIVES
At last I have the spare time in which to bring this diary up to date,but where shall I begin?
One romance is ended. It was very pretty and interesting while itlasted, but all things must have an end, especially flirtations.
Miss Olive Lawrence has left Woodvale. The season has only started, butshe confided to Miss Dangerfield that she was wearied with golf andWoodvale. So with a smile to all, and having settled in full withWallace for a dozen or more lessons she left for the south with anassortment of trunks which tested the capacity of the baggage car.
I feel rather sorry for Wallace, though I give him credit for enoughsense to have realised that her interest in him could amount to nothingmore than a desire to amuse herself. It does not speak well forfascinating qualities for our Woodvale gallants that Miss Lawrenceselected this unknown outsider even as a target on which to practiseflirtation archery, but, in common with most men, it is beyond my ken tofathom the caprices of a pretty woman.
"She left for the South"]
Wallace says nothing, but I can see that he takes it to heart. He spendsmost of his spare time at Bishop's, but attends strictly to hisbusiness. He is the best professional we have ever had, and it isfortunate for the club that he did not gain the fair prize which many ofus thought was within his grasp.
I have won the "Harding Trophy!"
Carter and I played for it last Thursday. I had absolute confidence thatI should win, and when Miss Harding smilingly told me that she was"pulling for me," I had no more doubt that I could win than I had that Iwas alive. We had the largest gallery that ever has followed a match inWoodvale. The betting was two to one against me.
I beat Carter four up and three to play, and made a medal score ofseventy-six, breaking the amateur record for the course. That statementis quite sufficient to tell the story of the game.
I gave a dinner in honour of my victory, and at its conclusion MissHarding presented the "Bronze Gent," as Chilvers calls this beautifulstatuette. She made a graceful speech and we cheered her wildly. Howcharming she looked as she stood beside the huge bulk of her proudfather! I tried to say something in reply, but the light in her eyesseemed to hypnotise me, and after a few incoherent sentences Chilverscame to my relief by striking up our club song, to the tune of afamiliar hymn:
"Oh, why can't I drive like other men do? How on earth can you drive if you don't follow through?"
CHORUS
"Hallelulia; watch that shoulder Hallelulia, my men; Hallelulia; get your wrists in! Must I tell you again?"
"Everybody come in strong on the second verse," ordered Chilvers, and weobeyed as best we could, also on the third. They run like this:
"I can't understand; understand it at all, Why I can't keep my eye on that little white ball."
CHORUS
"Hallelulia; keep a-looking; Hallelulia, my men; Hallelulia; keep a-watching! Must I tell you again?"
"Oh, why can't I hole out on each green in two? Because we all find that a hard thing to do."
CHORUS
"Hallelulia; grasp your putter Hallelulia, again, Hallelulia; hit it harder! Never up, never in!"
It was a great occasion, but I have things to narrate which are of muchmore import. The board of directors of the N.O. & G. railroad met onFriday!
Mr. Harding and I went to the city together. He was very busy lookingover papers, and noticing his preoccupation I did not attempt to engagein conversation with him.
I had plenty to think of. This was the day big with my future. This wasthe day when the conspirators proposed to pass the dividend on the stockof the N.O. & G. Would they dare to do it? What would result if theydid?
Knowing as I did that the earnings of the property had increased andthat its prospects never were more favourable, I could not believe itpossible that responsible officials would dare take so unwarranted astep for the purpose of influencing stock quotations. But while I keptmy head and appeared outwardly calm, I was nervous, and I franklyconfess it.
I was weighing the situation in its various lights when Mr. Hardingspoke to me.
"Are you good at figures, Smith?" he asked.
"I can add, subtract, multiply and divide," I said with some confidence.
"Good!" he growled. "You've got nothing else to do, so you may as wellhelp me on multiplication and addition. Multiply these by those and add'em up--right quick, won't you?"
He passed to me a piece of paper containing the following memorandum:
500................................68-1/2
1100................................67-3/4
4000................................67-1/2
300................................66-7/8
600................................66-1/2
1700................................65-1/2
200................................64
2300................................63-1/2
1000................................62-3/4
500................................61-1/4
3000................................60-1/2
1200................................59
300................................59-1/4
100................................58-7/8
400................................58-1/2
250................................59
1000....... ........................58-3/8
There were dates opposite the larger numerals, but these, of course, didnot enter into the computation.
Harding handed me a blank pad and resumed his study of other paperswhich from time to time he produced from a large black-covered folio. Ittook me some time to finish this calculation, but at last my task wasended and I gave the slip to him.
"Sure that's right, Smith?" he asked, looking at the footing.
"Your 18,450 shares of N.O. & G. stock cost you exactly $1,174,815, Mr.Harding, not including the commissions to your brokers," I said, calmlyas possible.
His big head swung quickly and he gazed at me with an expression ofabject surprise.
"Well I'll be--well--say, Smith, how in thunder did you get the ideainto your head that those figures stood for N.O. & G. stock?" hedemanded, after glancing at the slip to make sure that it contained notell-tale initials.
"Because the dates of purchase correspond with the quotations," Iresponded, enjoying his amazement and wondering to what it would lead."I am only guessing that you bought, but of course it's possible yousold or went short. Please do not imagine I'm attempting to pry intoyour affairs, Mr. Harding," I added.
He sank back into his seat and for several seconds said nothing.
"Do you mind answering a few questions, Smith?" he said.
"That depends," I smiled. "Go ahead and ask them."
"Have you been dealing in N.O. & G.?"
"Yes."
"Buying or selling?"
"Buying."
"Outright or on margin?"
"On margin."
"How many shares have you an option on?"
I hesitated.
"Mr. Harding," I said, "in answering that question I assume that theinformation is confidential and that it will not be used to mydisadvantage. Up to now it has been a secret known only to my brokers."
"You will lose nothing by telling me," Mr. Harding said, and I knew thatpromise was as good as his note at hand.
"My brokers have contracted for 45,000 shares of N.O. & G.," I said,handing him a list of my purchases with dates, amounts, and quotations.
He studied it for a while in silence.
"I thought you did nothing but play golf," he said. "Tell me; how didyou happen to go into a deal of this magnitude?"
I gave him the details of the conspiracy as I had discovered them. It isnot safe at this time to disclose them even in this diary. Mr. Har
dinglistened with growing wonder on his face.
"My boy," he said, when I had ended, "if there is anyone in the countrywho should have discovered and taken advantage of the facts you havejust told me, it is myself, but I never dreamed of them until you hadpurchased more than 30,000 shares of that stock. These dogs think I'm inEurope! They were told so. They think they have sold me out, and perhapsthey have. I did not watch it as I should have done."
For a minute the train roared on past suburban stations, under viaducts,through echoing rows of freight cars, and over clattering switches. Wewere nearing the metropolis.
"Do you mind telling me if you are alone in this transaction?" hesuddenly asked.
"I am."
"Do you wish to go in with me in this deal?"
"I do!" I replied without hesitation.
"Good!" he said, offering his hand. "We'll talk no more of this here.It's not safe. Come with me to my office."
We reached his private office half an hour before the opening of theStock Exchange. In five minutes the machinery of his wonderful systemwas in operation. Notes were dictated, messengers hurried away withthem, men called, who listened to curt orders and vanished.
An hour passed and he gave orders that no one should be admitted untilfurther notice.
"N.O. & G. is stationary around 59," he said, offering a cigar. "Thedirectors meet at noon. They will pass the dividend. They think to shakeout your 45,000 shares and a lot more in small holdings. In all I own35,000 shares, so that together we control 80,000 out of 200,000. I nowpropose to show these honourable gentlemen a trick which will give themsomething to think about for several weeks to come. I know a _gentleman_who owns outright 25,000 shares. He is one of the heads of which youterm "the conspiracy". It is not a conspiracy, Smith; it is business. Hetried to sell me out and has failed as he will learn in a few minutes.He will then sell out the men who implicitly trust him, as they wouldsell him out if they could see a chance to make money out of it. Do nottalk of conspiracies, Smith! These honourable business _gentlemen_ downhere are extremely sensitive, and you should be careful not to hurttheir feelings."
We quickly came to an agreement by which our holdings were pooled. Itwas stipulated that he should have entire control of the operations fromthat time on, and after settling important details I suggested that I goto my broker's office and await developments.
"There's nothing you can do here," he said, as I arose. "Yes, there is,too," he added. "The folks are going to drop in here at about twoo'clock. I'm going to be too busy to bother with them, and I foolishlypromised to take them to the gallery of the Stock Exchange. You'll beworth more money then than you are now," he said with a grim smile."Take them over and show them how a real sheep-killing looks when theewes are fat and the knives sharp."
I promised to call for them at two o'clock, and then went to the officeof my brokers.
Carelessly glancing at the quotation opposite the letters N.O. & G., Isaw that it had dropped to 56. The head of the firm approached me andasked me to step into his private office.
"Business is business"]
"The rumour is strong that the dividend will be passed," he said.
"Which is preparatory to saying that you would like me to put up moremargins, I presume?"
"Business is business, you know, Mr. Smith," he said, softly rubbing hishands.
"I have, anticipated your caution," I remarked. Mr. Harding had warnedme that an unwarranted demand for margins would be made, but confidentof the integrity of my brokers I had doubted it. "I presume an extraten points will satisfy you?"
He seemed surprised but said it would. I gave him a certified check for$450,000.
"Thank you, Mr. Smith. You will excuse me for requesting this, butbusiness is business."
"So I am learning," I coldly observed, and this closed our interview. Iwas convinced that "the conspirators" had gotten into communication withmy brokers, but of course I could not prove it.
As the noon hour approached, N.O. & G. sagged off to 53 on comparativelyheavy transactions. It stuck there until over the various mechanisms forsending information came this simple announcement, "The directors of theN.O. & G. have passed the regular semi-annual dividend."
The card boy of the stock board became busy. N.O. & G. dropped a pointor more between sales, until it struck 47. I had small doubt of theoutcome, but it is not pleasant to sit and watch the figures go up whichhint at a loss of $45,000 every minute or so. I tried to lookunconcerned, but doubt if I succeeded.
I knew that not far away a strong man was at the wheel, but the best ofships go down. What if his plans had miscarried? I dared not think ofit!
"Two thousand N.O. & G. at 48," called the watcher at the ticker. "Fivehundred at 47-1/2; 1,000 at 47; 2,000, 400, I,500, 3,000, at 47. Looksas if someone has pegged it at 47!"
The entire market was declining in sympathy with the disturbing newsconcerning this standard property. "Twelve hundred N.O. & G. at 47-1/4,"called the man at the ticker. "Three thousand at 48; 1,500 at 49; 5,000at 50! Someone's after that non-dividend paying stock!"
Like a man in a dream I watched that stock start on its dizzy climb. Infive minutes it had reached 55, and by leaps and bounds it soared to 70.My brokers rushed to me with their congratulations. Did I wish to placeany orders? Some strong interest undoubtedly was back of the rise?
I informed them I had purchased all I desired.
I am not indifferent in the matter of money. I am ambitious to possessit for the prestige it gives and the power it grants, but it is thesimple truth to say that in those triumphant moments and in thesubsequent hours the thought which held possession of me and which mademe superlatively happy was the consciousness that so far as materialassets were concerned I had a right to aspire to the hand of GraceHarding!
For some time the quotations vibrated nervously about the seventy mark.I was about to start for Mr. Harding's office when a man with a loudvoice read a bulletin just received.
"_One forty-five p.m._," he began. "_Robert L. Harding authorises theannouncement that in conjunction with John Henry Smith he has purchaseda majority of the stock of the N.O. & G. railroad, and that it will beoperated as a part of the system with which Mr. Harding is identified_."
"Who in thunder is John Henry Smith?" asked a veteran stock gambler.
I hurriedly left the room.
In the inner offices of Mr. Harding's headquarters I found Mrs. and MissHarding.
"We have heard the news!" exclaimed Miss Harding. "Isn't it splendid? Icongratulate you, Mr. Smith!"
Mr. Harding appeared at this moment, a broad smile on his face.
"Not so bad, eh Smith!" he said, shaking hands. The fierce light ofbattle was in his eyes. "They're headed for the tall timber, but westill have their range! Did you hear the last quotation?"
"The last figure I saw was seventy-three," I said.
"Seventy-three?" he laughed. "I just bought a thousand shares forninety-one. Take the folks over to the visitor's gallery and let themwatch the animals. I'm going to begin to feed them raw meat in abouthalf an hour."
As we walked toward the Exchange, Mrs. Harding said to me: "I think it'sperfectly wicked the way you men gamble!"
Bless her dear heart, so do I, but what could I say except to utter somecommonplace?
The huge box of marble and gold where this gambling is done already wasseething with maniacs who had reached a stage of delirium pitiful tothose who witness such scenes for the first time. It was as if athousand human rats had been hurled into a pit, with heaven and earthoffered as prizes to those who survived.
The swaying forms, the tossing arms, the frantic uplifted faces of agedmen, the football rush of impetuous youths, the shrieks, howlings andbellowings of the combatants, the tramp of feet on the paper-strewnfloor, the clatter of innumerable instruments, the tinkle of myriads ofbells; and through the opened windows God's pure sunlight illuminingthis hell on earth--such was the scene they looked down upon.
I knew the signs which told when Ha
rding threw the first bits of "rawmeat" into this gilded corral. I knew that he long since had corneredN.O. & G., and that he would whet the appetites of his victims as onlyhe knew how, but I did not know that it was his day of reckoning forother "conspirators" equally as grasping as those with whom I hadmeasured my puny sword.
As the hands of the clock slowly crawled to the hour of three the frenzyof the mob in the centre of the pit became maddening. I had no way ofknowing from where we stood whether prices were moving up or down, butit was evident that Harding was "feeding the animals."
Then the gong boomed the signal that the session was ended. The tumultrose to one resounding crash, hesitated, subsided and died away. Thestruggling groups dissolved and partial sanity resumed its sway.
I was ushered into Mr. Harding's private office immediately on ourreturn. The magnate was in his shirt sleeves. His mouth was set in sternlines and his dark hair tousled as if he had just emerged from deadlyphysical combat. As I entered the room his features relaxed and then helaughed. It was the roar of the lion who raises his head for a momentfrom his stricken quarry.
"We won this foursome, Smith, ten up and eight to play," he said. "Sitdown and I'll tell you how we stand. I put the market up to 175. Couldhave put it to a thousand if it had been necessary, but what's the use?There is a short interest of 60,000 shares. Most of them are in theouter offices waiting to come in and settle. I'm going to let 'em offeasy, Smith. Those who were extra dirty will settle at 200, and I'vemade a sliding scale down to 150, which is about what N.O. & G. isactually worth as an investment. Outside of your original 45,000 sharesyou have profits coming to you on about 20,000 shares which I bought foryou at various figures on the way up. Roughly speaking it will net yousomewhere between a million and a half and two millions, depending onhow merciful we are to your 'conspirators.' How much will it cost you totake up your 45,000 shares?"
"Ten up and eight to play"]
I consulted the statement of my account with Morse & Davis, my brokersin these transactions.
"I have paid them $1,525,000, which margined it down to 30," I said."In order to take the stock up I must pay them about $1,375,000 more,making my investment in N.O. & G. a total of $2,900,000."
"Tell you what I'll do, Smith," said Mr. Harding. "If you care to getout of this deal I'll take that block of 45,000 shares off your hands at$150 a share. That's $6,750,000," he concluded after making a rapidcalculation.
"Thank you," I said, "but I've decided to hold it as an investment andgo into the railroad business."
"Good for you, Smith!" he heartily exclaimed. "Mark my prediction; N.O.& G. will go to 200 before the first of the year. You've done fairlywell for a beginner, my boy. Your investment and the contributions ofthe wicked 'conspirators' net you between five and six millions. That'sbetter than sweating over that 'Bronze Gent,' now isn't it?"
The magnitude of my winnings nearly took my breath, and I fear that myexpression and words showed it.
"You'll have to get out of here now, Smith," said Mr. Harding, glancingat his watch. "Take the folks for a ride or something to entertain them,and come back here at 5:30. Then we'll all go to dinner somewhere andtake the nine o'clock train for Woodvale."
