"I'm sailing for Europe in a few days, Mr. Cowperwood," he remarked, genially, "and I thought I'd drop round to see if you and I could reach some agreement in regard to this gas situation. The officers of the old companies naturally feel that they do not care to have a rival in the field, and I'm sure that you are not interested in carrying on a useless rate war that won't leave anybody any profit.
I recall that you were willing to compromise on a half-and-half basis with me before, and I was wondering whether you were still of that mind."
"Sit down, sit down, Mr. Schryhart," remarked Cowperwood, cheerfully, waving the new-comer to a chair. "I'm pleased to see you again.
No, I'm no more anxious for a rate war than you are. As a matter of fact, I hope to avoid it; but, as you see, things have changed somewhat since I saw you. The gentlemen who have organized and invested their money in this new city gas company are perfectly willing--rather anxious, in fact--to go on and establish a legitimate business. They feel all the confidence in the world that they can do this, and I agree with them. A compromise might be effected between the old and the new companies, but not on the basis on which I was willing to settle some time ago. A new company has been organized since then, stock issued, and a great deal of money expended." (This was not true.) "That stock will have to figure in any new agreement. I think a general union of all the companies is desirable, but it will have to be on a basis of one, two, three, or four shares--whatever is decided--at par for all stock involved."
Mr. Schryhart pulled a long face. "Don't you think that's rather steep?" he said, solemnly.
"Not at all, not at all!" replied Cowperwood. "You know these new expenditures were not undertaken voluntarily." (The irony of this did not escape Mr. Schryhart, but he said nothing.)
"I admit all that, but don't you think, since your shares are worth practically nothing at present, that you ought to be satisfied if they were accepted at par?"
"I can't see why," replied Cowperwood. "Our future prospects are splendid. There must be an even adjustment here or nothing. What I want to know is how much treasury stock you would expect to have in the safe for the promotion of this new organization after all the old stockholders have been satisfied?"
"Well, as I thought before, from thirty to forty per cent. of the total issue," replied Schryhart, still hopeful of a profitable adjustment. "I should think it could be worked on that basis."
"And who gets that?"
"Why, the organizer," said Schryhart, evasively. "Yourself, perhaps, and myself."
"And how would you divide it? Half and half, as before?"
"I should think that would be fair."
"It isn't enough," returned Cowperwood, incisively. "Since I talked to you last I have been compelled to shoulder obligations and make agreements which I did not anticipate then. The best I can do now is to accept three-fourths."
Schryhart straightened up determinedly and offensively. This was outrageous, he thought, impossible! The effrontery of it!
"It can never be done, Mr. Cowperwood," he replied, forcefully.
"You are trying to unload too much worthless stock on the company as it is. The old companies' stock is selling right now, as you know, for from one-fifty to two-ten. Your stock is worth nothing.
If you are to be given two or three for one for that, and three-fourths of the remainder in the treasury, I for one want nothing to do with the deal. You would be in control of the company, and it will be water-logged, at that. Talk about getting something for nothing! The best I would suggest to the stockholders of the old companies would be half and half. And I may say to you frankly, although you may not believe it, that the old companies will not join in with you in any scheme that gives you control.
They are too much incensed. Feeling is running too high. It will mean a long, expensive fight, and they will never compromise.
Now, if you have anything really reasonable to offer I would be glad to hear it. Otherwise I am afraid these negotiations are not going to come to anything."
"Share and share alike, and three-fourths of the remainder," repeated Cowperwood, grimly. "I do not want to control. If they want to raise the money and buy me out on that basis I am willing to sell. I want a decent return for investments I have made, and I am going to have it. I cannot speak for the others behind me, but as long as they deal through me that is what they will expect."
Mr. Schryhart went angrily away. He was exceedingly wroth. This proposition as Cowperwood now outlined it was bucaneering at its best. He proposed for himself to withdraw from the old companies if necessary, to close out his holdings and let the old companies deal with Cowperwood as best they could. So long as he had anything to do with it, Cowperwood should never gain control of the gas situation. Better to take him at his suggestion, raise the money and buy him out, even at an exorbitant figure. Then the old gas companies could go along and do business in their old-fashioned way without being disturbed. This bucaneer! This upstart! What a shrewd, quick, forceful move he had made! It irritated Mr. Schryhart greatly.
The end of all this was a compromise in which Cowperwood accepted one-half of the surplus stock of the new general issue, and two for one of every share of stock for which his new companies had been organized, at the same time selling out to the old companies --clearing out completely. It was a most profitable deal, and he was enabled to provide handsomely not only for Mr. McKenty and Addison, but for all the others connected with him. It was a splendid coup, as McKenty and Addison assured him. Having now done so much, he began to turn his eyes elsewhere for other fields to conquer.
