_ By eight o'clock, at which hour the conference was set, the principal
financial personages of Chicago were truly in a great turmoil.
Messrs. Hand, Schryhart, Merrill, and Arneel were personally
interested! What would you? As early as seven-thirty there was a
pattering of horses' hoofs and a jingle of harness, as splendid
open carriages were drawn up in front of various exclusive mansions
and a bank president, or a director at least, issued forth at the
call of one of the big quadrumvirate to journey to the home of Mr.
Arneel. Such interesting figures as Samuel Blackman, once president
of the old Chicago Gas Company, and now a director of the Prairie
National; Hudson Baker, once president of the West Chicago Gas
Company, and now a director of the Chicago Central National; Ormonde
Ricketts, publisher of the Chronicle and director of the Third
National; Norrie Simms, president of the Douglas Trust Company;
Walter Rysam Cotton, once an active wholesale coffee-broker, but
now a director principally of various institutions, were all en
route. It was a procession of solemn, superior, thoughtful
gentlemen, and all desirous of giving the right appearance and of
making the correct impression. For, be it known, of all men none
are so proud or vainglorious over the minor trappings of materialism
as those who have but newly achieved them. It is so essential
apparently to fulfil in manner and air, if not in fact, the principle
of "presence" which befits the role of conservator of society and
leader of wealth. Every one of those named and many more--to the
number of thirty--rode thus loftily forth in the hot, dry evening
air and were soon at the door of the large and comfortable home
of Mr. Timothy Arneel.
That important personage was not as yet present to receive his
guests, and neither were Messrs. Schryhart, Hand, nor Merrill.
It would not be fitting for such eminent potentates to receive
their underlings in person on such an occasion. At the hour
appointed these four were still in their respective offices,
perfecting separately the details of the plan upon which they had
agreed and which, with a show of informality and of momentary
inspiration, they would later present. For the time being their
guests had to make the best of their absence. Drinks and liquors
were served, but these were of small comfort. A rack provided for
straw hats was for some reason not used, every one preferring to
retain his own head-gear. Against the background of wood panneling
and the chairs covered with summer linen the company presented a
galleryesque variety and interest. Messrs. Hull and Stackpole, the
corpses or victims over which this serious gathering were about
to sit in state, were not actually present within the room, though
they were within call in another part of the house, where, if
necessary, they could be reached and their advice or explanations
heard. This presumably brilliant assemblage of the financial
weight and intelligence of the city appeared as solemn as owls
under the pressure of a rumored impending financial crisis. Before
Arneel's appearance there was a perfect buzz of minor financial
gossip, such as:
"You don't say?"
"Is it as serious as that ?"
"I knew things were pretty shaky, but I was by no means certain
how shaky."
"Fortunately, we are not carrying much of that stock." (This from
one of the few really happy bankers.)
"This is a rather serious occasion, isn't it?"
"You don't tell me!"
"Dear, dear!"
Never a word in criticism from any source of either Hand or Schryhart
or Arneel or Merrill, though the fact that they were back of the
pool was well known. Somehow they were looked upon as benefactors
who were calling this conference with a view of saving others from
disaster rather than for the purpose of assisting themselves.
Such phrases as, "Oh, Mr. Hand! Marvelous man! Marvelous!" or,
"Mr. Schryhart--very able--very able indeed!" or, "You may depend
on it these men are not going to allow anything serious to overtake
the affairs of the city at this time," were heard on every hand.
The fact that immense quantities of cash or paper were involved
in behalf of one or other of these four was secretly admitted by
one banker to another. No rumor that Cowperwood or his friends
had been profiting or were in any way involved had come to any one
present--not as yet.
At eight-thirty exactly Mr. Arneel first ambled in quite informally,
Hand, Schryhart, and Merrill appearing separately very shortly
after. Rubbing their hands and mopping their faces with their
handkerchiefs, they looked about them, making an attempt to appear
as nonchalant and cheerful as possible under such trying circumstances.
There were many old acquaintances and friends to greet, inquiries
to be made as to the health of wives and children. Mr. Arneel,
clad in yellowish linen, with a white silk shirt of lavender stripe,
and carrying a palm-leaf fan, seemed quite refreshed; his fine
expanse of neck and bosom looked most paternal, and even Abrahamesque.
His round, glistening pate exuded beads of moisture. Mr. Schryhart,
on the contrary, for all the heat, appeared quite hard and solid,
as though he might be carved out of some dark wood. Mr. Hand,
much of Mr. Arneel's type, but more solid and apparently more
vigorous, had donned for the occasion a blue serge coat with
trousers of an almost gaudy, bright stripe. His ruddy, archaic
face was at once encouraging and serious, as though he were saying,
"My dear children, this is very trying, but we will do the best
we can." Mr. Merrill was as cool and ornate and lazy as it was
possible for a great merchant to be. To one person and another
he extended a cool, soft hand, nodding and smiling half the time
in silence. To Mr. Arneel as the foremost citizen and the one of
largest wealth fell the duty (by all agreed as most appropriate)
of assuming the chair--which in this case was an especially large
one at the head of the table.
There was a slight stir as he finally, at the suggestion of
Schryhart, went forward and sat down. The other great men found
seats.
"Well, gentlemen," began Mr. Arneel, dryly (he had a low, husky
voice), "I'll be as brief as I can. This is a very unusual occasion
which brings us together. I suppose you all know how it is with
Mr. Hull and Mr. Stackpole. American Match is likely to come down
with a crash in the morning if something very radical isn't done
to-night. It is at the suggestion of a number of men and banks
that this meeting is called."
Mr. Arneel had an informal, tete-a-tete way of speaking as if he
were sitting on a chaise-longue with one other person.
"The failure," he went on, firmly, "if it comes, as I hope it
won't, will make a lot of trouble for a number of banks and private
individuals which we would like to avoid, I am sure. The principal
creditors of American Match are our local banks and some private
individuals who have loaned money on the stock. I have a list of
them here, along with the amounts for which they are responsible.
It is in the neighborhood of ten millions of dollars."
Mr. Arneel, with the unconscious arrogance of wealth and power,
did not trouble to explain how he got the list, neither did he
show the slightest perturbation. He merely fished down in one
pocket in a heavy way and produced it, spreading it out on the
table before him. The company wondered whose names and what amounts
were down, and whether it was his intention to read it.
"Now," resumed Mr. Arneel, seriously, "I want to say here that Mr.
Stackpole, Mr. Merrill, Mr. Hand, and myself have been to a certain
extent investors in this stock, and up to this afternoon we felt
it to be our duty, not so much to ourselves as to the various banks
which have accepted this stock as collateral and to the city at
large, to sustain it as much as possible. We believed in Mr. Hull
and Mr. Stackpole. We might have gone still further if there had
been any hope that a number of others could carry the stock without
seriously injuring themselves; but in view of recent developments
we know that this can't be done. For some time Mr. Hull and Mr.
Stackpole and the various bank officers have had reason to think
that some one has been cutting the ground from under them, and now
they know it. It is because of this, and because only concerted
action on the part of banks and individuals can save the financial
credit of the city at this time, that this meeting is called.
Stocks are going to continue to be thrown on the market. It is
possible that Hull & Stackpole may have to liquidate in some way.
One thing is certain: unless a large sum of money is gathered to
meet the claim against them in the morning, they will fail. The
trouble is due indirectly, of course, to this silver agitation;
but it is due a great deal more, we believe, to a piece of local
sharp dealing which has just come to light, and which has really
been the cause of putting the financial community in the tight place
where it stands to-night. I might as well speak plainly as to
this matter. It is the work of one man--Mr. Cowperwood. American
Match might have pulled through and the city been have spared
the danger which now confronts it if Mr. Hull and Mr. Stackpole
had not made the mistake of going to this man."
Mr. Arneel paused, and Mr. Norrie Simms, more excitable than most
by temperament, chose to exclaim, bitterly: "The wrecker!" A stir
of interest passed over the others accompanied by murmurs of
disapproval.
"The moment he got the stock in his hands as collateral," continued
Mr. Arneel, solemnly, "and in the face of an agreement not to throw
a share on the market, he has been unloading steadily. That is
what has been happening yesterday and to-day. Over fifteen thousand
shares of this stock, which cannot very well be traced to outside
sources, have been thrown on the market, and we have every reason
to believe that all of it comes from the same place. The result
is that American Match, and Mr. Hull and Mr. Stackpole, are on the
verge of collapse."
"The scoundrel!" repeated Mr. Norrie Simms, bitterly, almost rising
to his feet. The Douglas Trust Company was heavily interested in
American Match.
"What an outrage!" commented Mr. Lawrence, of the Prairie National,
which stood to lose at least three hundred thousand dollars in
shrinkage of values on hypothecated stock alone. To this bank
that Cowperwood owed at least three hundred thousand dollars on
call.
"Depend on it to find his devil's hoof in it somewhere," observed
Jordan Jules, who had never been able to make any satisfactory
progress in his fight on Cowperwood in connection with the city
council and the development of the Chicago General Company. The
Chicago Central, of which he was now a director, was one of the
banks from which Cowperwood had judiciously borrowed.
"It's a pity he should be allowed to go on bedeviling the town in
this fashion," observed Mr. Sunderland Sledd to his neighbor, Mr.
Duane Kingsland, who was a director in a bank controlled by Mr.
Hand.
The latter, as well as Schryhart, observed with satisfaction the
effect of Mr. Arneel's words on the company.
Mr. Arneel now again fished in his pocket laboriously, and drew
forth a second slip of paper which he spread out before him. "This
is a time when frankness must prevail," he went on, solemnly, "if
anything is to be done, and I am in hopes that we can do something.
I have here a memorandum of some of the loans which the local
banks have made to Mr. Cowperwood and which are still standing on
their books. I want to know if there are any further loans of
which any of you happen to know and which you are willing to mention
at this time."
He looked solemnly around.
Immediately several loans were mentioned by Mr. Cotton and Mr.
Osgood which had not been heard of previously. The company was
now very well aware, in a general way, of what was coming.
"Well, gentlemen," continued Mr. Arneel, "I have, previous to this
meeting, consulted with a number of our leading men. They agree
with me that, since so many banks are in need of funds to carry
this situation, and since there is no particular obligation on
anybody's part to look after the interests of Mr. Cowperwood, it
might be just as well if these loans of his, which are outstanding,
were called and the money used to aid the banks and the men who
have been behind Mr. Hull and Mr. Stackpole. I have no personal
feeling against Mr. Cowperwood--that is, he has never done me any
direct injury--but naturally I cannot approve of the course he has
seen fit to take in this case. Now, if there isn't money available
from some source to enable you gentlemen to turn around, there
will be a number of other failures. Runs may be started on a
half-dozen banks. Time is the essence of a situation like this,
and we haven't any time."
Mr. Arneel paused and looked around. A slight buzz of conversation
sprang up, mostly bitter and destructive criticism of Cowperwood.
"It would be only just if he could be made to pay for this,"
commented Mr. Blackman to Mr. Sledd. "He has been allowed to play
fast and loose long enough. It is time some one called a halt on
him."
"Well, it looks to me as though it would be done tonight," Mr.
Sledd returned.
Meanwhile Mr. Schryhart was again rising to his feet. "I think,"
he was saying, "if there is no objection on any one's part, Mr.
Arneel, as chairman, might call for a formal expression of opinion
from the different gentlemen present which will be on record as
the sense of this meeting."
At this point Mr. Kingsland, a tall, whiskered gentleman, arose
to inquire exactly how it came that Cowperwood had secured these
stocks, and whether those present were absolutely sure that the
stock has been coming from him or from his friends. "I would not
like to think we were doing any man an injustice," he concluded.
In reply to this Mr. Schryhart called in Mr. Stackpole to corroborate
him. Some of the stocks had been positively identified. Stackpole
related the full story, which somehow seemed to electrify the
company, so intense was the feeling against Cowperwood.
"It is amazing that men should be permitted to do things like this
and still hold up their heads in the business world," said one,
Mr. Vasto, president of the Third National, to his neighbor.
"I should think there would be no difficulty in securing united
action in a case of this kind," said Mr. Lawrence, president of
the Prairie National, who was very much beholden to Hand for past
and present favors.
"Here is a case," put in Schryhart, who was merely waiting for an
opportunity to explain further, "in which an unexpected political
situation develops an unexpected crisis, and this man uses it for
his personal aggrandizement and to the detriment of every other
person. The welfare of the city is nothing to him. The stability
of the very banks he borrows from is nothing. He is a pariah, and
if this opportunity to show him what we think of him and his
methods is not used we will be doing less than our duty to the
city and to one another."
"Gentlemen," said Mr. Arneel, finally, after Cowperwood's different
loans had been carefully tabulated, "don't you think it would be
wise to send for Mr. Cowperwood and state to him directly the
decision we have reached and the reasons for it? I presume all of
us would agree that he should be notified."
"I think he should be notified," said Mr. Merrill, who saw behind
this smooth talk the iron club that was being brandished.
Both Hand and Schryhart looked at each other and Arneel while they
politely waited for some one else to make a suggestion. When no
one ventured, Hand, who was hoping this would prove a ripping blow
to Cowperwood, remarked, viciously:
"He might as well be told--if we can reach him. It's sufficient
notice, in my judgment. He might as well understand that this is
the united action of the leading financial forces of the city."
"Quite so," added Mr. Schryhart. "It is time he understood, I
think, what the moneyed men of this community think of him and his
crooked ways.
A murmur of approval ran around the room.
"Very well," said Mr. Arneel. "Anson, you know him better than
some of the rest of us. Perhaps you had better see if you can get
him on the telephone and ask him to call. Tell him that we are
here in executive session."
"I think he might take it more seriously if you spoke to him,
Timothy," replied Merrill.
Arneel, being always a man of action, arose and left the room,
seeking a telephone which was located in a small workroom or office
den on the same floor, where he could talk without fear of being
overheard.
Sitting in his library on this particular evening, and studying
the details of half a dozen art-catalogues which had accumulated
during the week, Cowperwood was decidedly conscious of the probable
collapse of American Match on the morrow. Through his brokers and
agents he was well aware that a conference was on at this hour at
the house of Arneel. More than once during the day he had seen
bankers and brokers who were anxious about possible shrinkage in
connection with various hypothecated securities, and to-night his
valet had called him to the 'phone half a dozen times to talk with
Addison, with Kaffrath, with a broker by the name of Prosser who
had succeeded Laughlin in active control of his private speculations,
and also, be it said, with several of the banks whose presidents
were at this particular conference. If Cowperwood was hated,
mistrusted, or feared by the overlords of these institutions, such
was by no means the case with the underlings, some of whom, through
being merely civil, were hopeful of securing material benefits
from him at some future time. With a feeling of amused satisfaction
he was meditating upon how heavily and neatly he had countered on
his enemies. Whereas they were speculating as to how to offset
their heavy losses on the morrow, he was congratulating himself
on corresponding gains. When all his deals should be closed up
he would clear within the neighborhood of a million dollars. He
did not feel that he had worked Messrs. Hull and Stackpole any
great injustice. They were at their wit's end. If he had not
seized this opportunity to undercut them Schryhart or Arneel would
have done so, anyhow.
Mingled with thoughts of a forthcoming financial triumph were
others of Berenice Fleming. There are such things as figments of
the brain, even in the heads of colossi. He thought of Berenice
early and late; he even dreamed of her. He laughed at himself at
times for thus being taken in the toils of a mere girl--the strands
of her ruddy hair--but working in Chicago these days he was always
conscious of her, of what she was doing, of where she was going
in the East, of how happy he would be if they were only together,
happily mated.
It had so happened, unfortunately, that in the course of this
summer's stay at Narragansett Berenice, among other diversions,
had assumed a certain interest in one Lieutenant Lawrence Braxmar,
U.S.N., whom she found loitering there, and who was then connected
with the naval station at Portsmouth, New Hampshire. Cowperwood,
coming East at this time for a few days' stay in order to catch
another glimpse of his ideal, had been keenly disturbed by the
sight of Braxmar and by what his presence might signify. Up to
this time he had not given much thought to younger men in connection
with her. Engrossed in her personality, he could think of nothing
as being able to stand long between him and the fulfilment of his
dreams. Berenice must be his. That radiant spirit, enwrapt in
so fair an outward seeming, must come to see and rejoice in him.
Yet she was so young and airy in her mood that he sometimes
wondered. How was he to draw near? What say exactly? What do?
Berenice was in no way hypnotized by either his wealth or fame.
She was accustomed (she little knew to what extent by his courtesy)
to a world more resplendent in its social security than his own.
Surveying Braxmar keenly upon their first meeting, Cowperwood had
liked his face and intelligence, had judged him to be able, but
had wondered instantly how he could get rid of him. Viewing
Berenice and the Lieutenant as they strolled off together along a
summery seaside veranda, he had been for once lonely, and had
sighed. These uncertain phases of affection could become very
trying at times. He wished he were young again, single.
To-night, therefore, this thought was haunting him like a gloomy
undertone, when at half past eleven the telephone rang once more,
and he heard a low, even voice which said:
"Mr. Cowperwood? This is Mr. Arneel."
"Yes."
"A number of the principal financial men of the city are gathered
here at my house this evening. The question of ways and means of
preventing a panic to-morrow is up for discussion. As you probably
know, Hull & Stackpole are in trouble. Unless something is done
for them tonight they will certainly fail to-morrow for twenty
million dollars. It isn't so much their failure that we are
considering as it is the effect on stocks in general, and on the
banks. As I understand it, a number of your loans are involved.
The gentlemen here have suggested that I call you up and ask you
to come here, if you will, to help us decide what ought to be done.
Something very drastic will have to be decided on before morning."
During this speech Cowperwood's brain had been reciprocating like
a well-oiled machine.
"My loans?" he inquired, suavely. "What have they to do with the
situation? I don't owe Hull & Stackpole anything."
"Very true. But a number of the banks are carrying securities for
you. The idea is that a number of these will have to be called
--the majority of them--unless some other way can be devised
to-night. We thought you might possibly wish to come and talk it
over, and that you might be able to suggest some other way out."
"I see," replied Cowperwood, caustically. "The idea is to sacrifice
me in order to save Hull & Stackpole. Is that it?"
His eyes, quite as though Arneel were before him, emitted malicious
sparks.
"Well, not precisely that," replied Arneel, conservatively; "but
something will have to be done. Don't you think you had better
come over?"
"Very good. I'll come," was the cheerful reply. "It isn't anything
that can be discussed over the 'phone, anyhow."
He hung up the receiver and called for his runabout. On the way
over he thanked the prevision which had caused him, in anticipation
of some such attack as this, to set aside in the safety vaults of
the Chicago Trust Company several millions in low-interest-bearing
government bonds. Now, if worst came to worst, these could be
drawn on and hypothecated. These men should see at last how
powerful he was and how secure.
As he entered the home of Arneel he was a picturesque and truly
representative figure of his day. In a light summer suit of cream
and gray twill, with a straw hat ornamented by a blue-and-white
band, and wearing yellow quarter-shoes of the softest leather, he
appeared a very model of trig, well-groomed self-sufficiency. As
he was ushered into the room he gazed about him in a brave, leonine
way.
"A fine night for a conference, gentlemen," he said, walking toward
a chair indicated by Mr. Arneel. "I must say I never saw so many
straw hats at a funeral before. I understand that my obsequies
are contemplated. What can I do?"
He beamed in a genial, sufficient way, which in any one else would
have brought a smile to the faces of the company. In him it was
an implication of basic power which secretly enraged and envenomed
nearly all those present. They merely stirred in a nervous and
wholly antagonistic way. A number of those who knew him personally
nodded--Merrill, Lawrence, Simms; but there was no friendly light
in their eyes.
"Well, gentlemen?" he inquired, after a moment or two of ominous
silence, observing Hand's averted face and Schryhart's eyes, which
were lifted ceilingward.
"Mr. Cowperwood," began Mr. Arneel, quietly, in no way disturbed
by Cowperwood's jaunty air, "as I told you over the 'phone, this
meeting is called to avert, if possible, what is likely to be a
very serious panic in the morning. Hull & Stackpole are on the
verge of failure. The outstanding loans are considerable--in the
neighborhood of seven or eight million here in Chicago. On the
other hand, there are assets in the shape of American Match stocks
and other properties sufficient to carry them for a while longer
if the banks can only continue their loans. As you know, we are
all facing a falling market, and the banks are short of ready
money. Something has to be done. We have canvassed the situation
here to-night as thoroughly as possible, and the general conclusion
is that your loans are among the most available assets which can
be reached quickly. Mr. Schryhart, Mr. Merrill, Mr. Hand, and
myself have done all we can thus far to avert a calamity, but we
find that some one with whom Hull & Stackpole have been hypothecating
stocks has been feeding them out in order to break the market.
We shall know how to avoid that in the future" (and he looked hard
at Cowperwood), "but the thing at present is immediate cash, and
your loans are the largest and the most available. Do you think
you can find the means to pay them back in the morning?"
Arneel blinked his keen, blue eyes solemnly, while the rest, like
a pack of genial but hungry wolves, sat and surveyed this apparently
whole but now condemned scapegoat and victim. Cowperwood, who was
keenly alive to the spirit of the company, looked blandly and
fearlessly around. On his knee he held his blue--banded straw hat
neatly balanced on one edge. His full mustache curled upward in
a jaunty, arrogant way.
"I can meet my loans," he replied, easily. "But I would not advise
you or any of the gentlemen present to call them." His voice, for
all its lightness, had an ominous ring.
"Why not?" inquired Hand, grimly and heavily, turning squarely
about and facing him. "It doesn't appear that you have extended
any particular courtesy to Hull or Stackpole." His face was red
and scowling.
"Because," replied Cowperwood, smiling, and ignoring the reference
to his trick, "I know why this meeting was called. I know that
these gentlemen here, who are not saying a word, are mere catspaws
and rubber stamps for you and Mr. Schryhart and Mr. Arneel and Mr.
Merrill. I know how you four gentlemen have been gambling in this
stock, and what your probable losses are, and that it is to save
yourselves from further loss that you have decided to make me the
scapegoat. I want to tell you here"--and he got up, so that in
his full stature he loomed over the room--"you can't do it. You
can't make me your catspaw to pull your chestnuts out of the fire,
and no rubber-stamp conference can make any such attempt successful.
If you want to know what to do, I'll tell you--close the Chicago
Stock Exchange to-morrow morning and keep it closed. Then let
Hull & Stackpole fail, or if not you four put up the money to carry
them. If you can't, let your banks do it. If you open the day
by calling a single one of my loans before I am ready to pay it,
I'll gut every bank from here to the river. You'll have panic,
all the panic you want. Good evening, gentlemen."
He drew out his watch, glanced at it, and quickly walked to the
door, putting on his hat as he went. As he bustled jauntily down
the wide interior staircase, preceded by a footman to open the
door, a murmur of dissatisfaction arose in the room he had just
left.
"The wrecker!" re-exclaimed Norrie Simms, angrily, astounded at
this demonstration of defiance.
"The scoundrel!" declared Mr. Blackman. "Where does he get the
wealth to talk like that?"
"Gentlemen," said Mr. Arneel, stung to the quick by this amazing
effrontery, and yet made cautious by the blazing wrath of Cowperwood,
"it is useless to debate this question in anger. Mr. Cowperwood
evidently refers to loans which can be controlled in his favor,
and of which I for one know nothing. I do not see what can be
done until we do know. Perhaps some of you can tell us what they
are.
But no one could, and after due calculation advice was borrowed
of caution. The loans of Frank Algernon Cowperwood were not
called. _