Just now it was, of course, obvious that he was addressing the company in his capacity of secretary of Horse’s Neck.

“It goes without saying, gentlemen, that this property is pretty nearly down and out.  You will recall that most of the insiders sold out on the tail of the Goldfield Boom and waited for the market to sag until we could buy in again.  The mines are full of water, work was abandoned over four years ago, and the property is practically defunct.  The original capitalization was ten million shares at one dollar a share.  We own or control at least four million shares, for which we paid ten to fifteen cents, while we had sold our original holdings for one dollar sixty to one dollar ninety-five a share.  While Horse’s Neck represents a handsome profit—­in my opinion”—­he cleared his throat again as if deprecating the vulgarity of his phrase—­“it is good for another whirl.”

“You say it’s full of water?” inquired Hunn.

“It will cost about fifty thousand dollars to pump out the mines and a hundred thousand to repair the machinery.  Then there’s quite an indebtedness—­about seventy-five thousand; and tax liens—­another fifty.  Half a million dollars would put Horse’s Neck on the map, and if the Amphalula vein crosses the property it will be worth ten millions.  If it doesn’t, the chance that it is going to will make a market for the stock.”

Mr. Elderberry swept with a bland inquiring eye the shore of the glassy sea about which his associates were gathered.

“I’ve been over the ground,” announced Greenbaum “and it’s a good gamble.  We want Horse’s Neck for ourselves—­at any rate until we are confident that it’s a real lemon.  Half a million will do it.  I’ll personally put up a hundred thousand.”

“How are you going to get rid of the fifty thousand other stockholders?” asked Mr. Beck dubiously “We don’t want them trailing along with us.”

“I propose,” answered Mr. Elderberry brightly, in his capacity as chief conspirator for Scherer, Hunn, et al., “that we organize a new corporation to be called ‘Lallapaloosa Limited’ and capitalize it at a million dollars—­one million shares at a dollar a share.  Then we will execute a contract between Horse’s Neck and Lallapaloosa by the terms of which the old bankrupt corporation will sell to the new corporation all its assets for one hundred and twenty-five thousand dollars.  We underwrite the stock of Lallapaloosa at fifty cents a share, thus supplying the new corporation with the funds with which to purchase the properties of the old.  In a word we shall get Horse’s Neck for a hundred and twenty-five thousand and have three hundred and seventy-five thousand left out of what we subscribe to underwrite the stock to put it on its feet.”

“That’s all right,” debated Hunn.  “But how about the other stockholders in Horse’s Neck that Beck referred to?  Where do they come in?”