“And these surplus earnings would be enough to make it worth while?”

Harris laughed.  “Sure,” he replied; “the bond total of the smaller companies is about one hundred million dollars and the stock total only four million dollars.  What’s eight or even eighteen per cent. on four million dollars!  In fact, the weak point is that even with the watering we intended to give the stock after we got it, the profits would still be so big that the public would notice.”

“There should be no difficulty in fixing that,” remarked Covington, sagely, amused by the frank confidence extended to him in spite of his warning.

“The only difficulty is in selecting the means,” Harris continued.  “Now, Brady and two other directors and I have secured options on three short lines which are essential integral parts of the system, and it was understood, before the Consolidated Companies came into the field, that the new company would purchase these from us at a handsome profit.  In fact, we four are a majority in the Board of Directors.  When Gorham first talked about it Brady laughed at him, for the thing seemed to be as good as pulled off; but the more Brady thought it over, the better he liked the idea.  Our plan was to unload the stock on the dear public, letting the new company last as long as it would, and be satisfied with our profits; but Brady thinks that Gorham’s scheme means success for the company as well, and naturally we would prefer to have a continuing profit rather than one which ceases when we deliver the goods.  Lately Gorham has been talking more with the other directors and with some of the big stockholders, ignoring Brady; so I just called to make sure that we stood in on the profit on the short lines, as originally intended.”

“How much profit would there be in the short lines for you four directors?” asked Covington, interested to see how far he could get the man to commit himself.

“A half-million apiece.”

“H’m!” Covington soliloquized.  “It doesn’t look quite so certain to you since Gorham began to get next to the other directors and the big stockholders, does it?”

“They’ve got to have the short lines, and whoever gets them must pay our price.”

“Yes; but in one case it goes through without any public demonstration, and in the other it leaves a smudge on each one of the four which you would be glad to avoid.”

“Exactly,” assented Harris.

“Well,” Covington said, deliberately, “I don’t think you can pull it off.  As a matter of fact, since you have been so confidential, I may say that Mr. Gorham is convinced that there’s something crooked, and that is why he dropped the idea of having Brady and some of the others become stockholders.  We have to maintain a high standard in the Consolidated Companies, as you can easily understand.”

Harris looked at him sharply.  “Perhaps the standard is higher among the stockholders than on the Board of Directors,” he suggested.