“Mr. Searles, we Americans are not anxious to sell, especially to foreigners, our best paying concerns.  We ought to keep them under our own control.  However, of late, I have been inclined to indulge my family in a little foreign travel, and myself in more leisure for books, and possibly for politics, believing that not enough of our good citizens enter Congress.  I might, on certain conditions, name a price for all the stock of the Harrisville Iron & Steel Co.”

“Please state the price and the conditions.”

“Well, let me think a moment.  The capital stock of the company is not now as large as it should be.

Total Capital Stock $2,000,000
Par value of shares 100
Present Value per Share, 300

“The entire property and good-will of the Company is worth at least $6,000,000, and my “fixed price,” as the English say, is $5,000,000.”

Mr. Searles looked puzzled, for he had hoped to get the stock for less money.  He hesitated, as if in deep study, but not long, for he believed that, if the Harrisville Iron & Steel Co. for ten successive years could pay $500,000 or an average annual dividend of 25% on its stock of $2,000,000, the plant re-organized could easily be marketed at a neat advance, say for L1,400,000 or $7,000,000, in London, where even sound 3% investments are eagerly sought; so Mr. Searles inquired again:  “Colonel Harris, you omitted to state your conditions.”  Harris answered, “I must have cash enough to guarantee the sale, and short time payments for the balance.”

“Well, Colonel Harris, how would the following terms please you?

One-eighth cash $625,000
One-eighth 30 days 625,000
One-fourth 60 days 1,250,000
One-fourth 90 days 1,250,000
One-fourth, Preferred Shares,
    6% dividends guaranteed 1,250,000
                               _________
Total price named 5,000,000

“Colonel Harris, before you answer, please let me outline our London plan.  Suppose I should take for Messrs. Guerney & Barring a contract, or option of purchase on the property with payments as named, the purchase to be conditioned upon a verification of the correctness of your statements.  Our experts can examine and report soon on your accounts for ten years back, and on buildings, machinery, stock on hand, land, etc.”

“Mr. Searles, please explain further your ‘London plan’ of reorganization.”

“Colonel Harris, we would modify the old firm name, so as to read—­’The Harrisville Iron & Steel Co., Limited, of London, England,’ and capitalize it at L1,400,000, or $7,000,000.

Par value of shares L20 or $100
Number of shares 70,000

“When our experts shall have verified your statements at Harrisville, then the option of purchase is to be signed by us and forwarded to London, where it will be signed by Messrs. Guerney & Barring, the first payment made, and the contract underwritten or guaranteed by the Guardian, Executor & Trust Association, Limited, of London, whose capital is $5,000,000.  The association will also underwrite the bonds and preference shares.  This will practically complete the purchase.”