“I will say, in beginning,” commenced George Melville, in his smoothest, blandest tones, “that we have talked so far, you and I, Mr. Farnum, only in general terms.  We will now come to the definite proposition under which my friends and myself are willing to contribute the share of new capital that you want in your business.”

“That is what I most want, before we go any further,” assented Mr. Farnum.  “I will say, however, that I have in mind a proposition that I would like to submit, before we hear from your side.”

“I am listening,” nodded Mr. Melville, suavely.

“We have already decided,” continued Mr. Farnum, “that my boat yard, with all its equipment, and including the ownership of the ‘Pollard,’ may be fairly rated at three hundred thousand dollars.”

“That is quite true,” nodded Mr. Melville.  “That figure is in accordance with the estimates made by our expert accountant.”

“In the boat itself,” continued Jacob Farnum, “my friend Pollard has a stated amount of interest.  To come quickly to the point, then, I propose that Pollard and myself, with the aid of a necessary third party—­my superintendent, Partridge, for instance—­form a stock company with a capital stock of three hundred thousand dollars.  Then the six hundred and fifty thousand dollars that you and your associates are to advance, Mr. Melville, may be secured by an issue of bonds, which the company will secure authority to issue.  These bonds will bear the unusually high interest of seven per cent., and this interest, of course, will have to be paid before any dividend can be declared on the capital stock of the company.  That will retain the control of the company in my hands, and in Pollard’s, and that is what we want.”

“Yet do you expect that it will be easy to secure such an understanding with capital?” inquired Mr. Melville, easily.  “The proposition amounts to this:  That you put in the smaller amount of capital, and yet expect to reap the greater profits.”

“By no means,” replied Jacob Farnum, seriously.  “We have demonstrated the value of our type of boat, and we have some valuable knowledge and ideas that cannot be appraised in dollars.  So, though our amount of material capital is less than you and your associates would contribute, we feel that we are bringing to the enterprise the larger share.”

“I see your point,” nodded Mr. Melville, pleasantly.  “Yet there is much to be discussed from our side.”

So the contest was on—­the quiet, polite battle that is as old as capital itself.  The men who contribute the money expect the control of the business; the men who contribute the ideas and knowledge expect, capital to be satisfied with a good return on its money.

Both sides were silent for awhile.  The lawyer, tapping a pencil against his lips, knew that George Melville did not intend to go into the enterprise on any arrangement that did not allow him to gain business control swiftly and surely.