by Drew McGunn
Will sat down in front of the desk, in the chair offered to him. As he was about to speak, he noticed the boy was hanging back, toward the door. Samuel Williams said, “General, if you’ll indulge my son, Austin for a moment, he has positively been bouncing off the walls when he found out who our visitor would be. I believe he has a question for you.”
As the boy approached Will’s chair, he asked, “General, sir, is it true that you and President Crockett whipped Santa Anna’s army single-handedly. My friend, Josh, he said it was just you swinging your sword and President Crockett swinging his rifle at the Mexicans until they retreated in fear.”
Will hid his laughter in a realistic sounding cough until he could respond. “Ah, Austin, I’m afraid your friend, Josh has been telling tales out of school. The truth is far less glamorous. The president and I were only two of more than six hundred men who defeated the Mexican army that day. Had it only been the two of us, well, let’s just say you and your friend might have been having your conversation in Spanish.”
Williams pulled a pocket watch from his waist coat and said, “It’s time to stop bothering the General, Austin. Close the door on your way out.”
As Williams shooed the boy out and closed the door, he said, “General, I confess my surprise at receiving your letter requesting a meeting between me, my partner and yourself. I’m afraid, your arrival interrupted our speculation as to why you wish to meet with us.”
Will allowed a moment of suspense to build as he watched the two men. Williams was dressed in a fine, but ruffled jacket. His waistcoat and pants were black, but his shirt was white. His prematurely graying hair appeared to defy familiarity with a comb and Will would have been forgiven for thinking the merchant cum banker was not concerned with his presentation. In appearance, McKinney was William’s opposite. His black hair was slicked down, as though no hair would dare be out of place. His Jacket and pants were dark blue, tailored from expensive wools, and he wore his clothing in a careful manner.
The suspense was enough, Will gaged as he said, “The Banco de Commercia y Agricultura.”
As he spoke, Will carefully watched their expressions. Dapper McKinney spoke first. “Had it not been for what came from it, that particular enterprise would have been more trouble than it was worth, General. The only thing keeping that carcass of an idea alive is it holds more than one-hundred-fifty thousand dollars in government bonds. Had it not been for that, Sam and I would have dissolved it.”
Williams nodded his agreement. “We started with some grand ideas before the revolution, but our other commercial interests, here in Galveston and on the mainland, have actually turned out better for us, than a bank that Jacksonian politics has soured our fellow Texians on. If I may, what is your interest in it?”
Will weighed how much to share with the two men regarding the sizable loan he had received from the mysterious Merrill Taylor. Better to reveal a little to test the waters.
He leaned in and without realizing he had done so, spoke in a hushed tone, “What I am about to share with you, I share in the strictest of confidences, gentlemen.” Will waited until both had acknowledged him with their assent. “As you may be aware, I own a sizable stake in the Gulf Farms Corporation in West Liberty. Recently, I have received a sizable personal investment which I intend to use to make an additional purchase of stock in the company. Because of several factors, I wish to have the money invested through a bank and have the bank hold any additional stock. I worry what some politicians might say if they were to learn the general of the army was a money grubbing mercantilist. Personally, I don’t think they like the competition.”
Williams laughed. “No fear of that here, General. The grubbier the money the better. But, how much of your loan are you interested in passing though such a bank?”
As Will looked between the two men, he decided to reveal his hand slowly. He said, “What is the current value of your bank, gentlemen. Before I talk about numbers, knowing the solvency of the financial institution would be helpful to me.”
Both Williams and McKinney were silent for a moment, as Will watched the two men trade looks of concern. Will added, “As I mentioned, this conversation is held in the strictest of confidence, nothing you share with me will leave this room.”
Eventually, McKinney said, “While it’s been a few months since either of us have worked on the commercial bank’s books, as I last recall, the bank’s assets are one-hundred-fifty thousand dollars in Texas bonds. Our liabilities are the debt instruments from other banks totaling more than one-hundred-sixty-five thousand dollars.”
Williams nodded and added, “Nearly all of the bank’s liabilities were added during the revolution, when we acted as its officers and used our lines of credit to outfit ships for the navy back in ’36 as well as to secure gunpowder and other munitions.”
Will nodded sagaciously as he listened to the men. This was information he had obtained over the previous month. He frowned, as though taking in the information. Then he said, “I’m concerned as things now stand, your bank lacks the solvency to act for my interests, but let me ask, what would it cost to buy your interests in the bank, gentlemen?” There, he had done it. He asked the question which had brought him to Galveston.
Both men rocked back in their chairs, absorbing the new development. This wasn’t what they had expected to hear. McKinney was the first to break the silence. “I might be of a mind to part with my interest in the bank. Austin is now the nation’s capital and there is a lot of growth going on there. I have a league of land near there and my instincts tell me there’s a future to be had ranching in the hill country to the west now that the Comanche are no longer a threat. It might be a good time to not have my interests divided, provided the right set of circumstances presented itself.”
Williams smiled at his partner, “I’m probably more optimistic than Thomas is. I have no interest in selling my ownership in the bank. I’d like to think its future could be bright.”
Will was pleased at what he was hearing. “For a company with liabilities at least fifteen thousand more than assets, what would you consider to be a fair price for your part in the bank, Mr. McKinney?”
After a long, thoughtful pause, McKinney said, “I would consider my half of the enterprise worth twenty-five thousand dollars, provided you assume my portion of the liabilities.”
“My ass,” Will thought.
Over the past few years, Will had learned more about business than he could have imagined before the transference had happened. He saw McKinney’s bluff and decided to call it.
“Mr. McKinney, I thought Sam was the optimist,” Will said, indicating toward Williams. “I’m not sure how a company with fifteen thousand dollars in liabilities in excess of its assets could possibly be worth twenty-five thousand between both of you, let alone yourself. I readily concede the two of you have expended your effort and expense during the revolution and such a sacrifice merits recompense. Now correct me if I am wrong, but aren’t some of those liabilities held by the bank actually debt instruments to the two of you?”
McKinney shrugged and said, “A debt is a debt, regardless of who it is to, General. You asked me what I thought it was worth. We obviously have different ideas, but it would be churlish of me to not consider a reasonable offer.”
Will decided if McKinney could demand the moon, he would low-ball his own offer. “I’m prepared to offer the fair price of ten thousand dollars to you for your share of the bank.”
McKinney wore a studied frown as he considered Wil’s offer. “That would hardly compensate me for the past five years’ worth of effort. Given my contribution to the war effort, my half of the business can scarcely be worth less than twenty-five thousand dollars, but as I am eager to see to new opportunities in Austin, I would accept an offer of twenty thousand.”
A thin smile creased Will’s face as he said, “I happily acknowledge your significant contribution to our recent revolution, Mr. McKinney. Where it not for the powder and balls that you and
Mr. Williams shipped to Texas, our victory on the Rio Grande and the Nueces might not have been possible.”
At the less than subtle reminder of Will’s own contribution to the revolution, Williams gave a knowing smile at McKinney before saying, “Tom, why don’t you accept the general’s offer? Everyone in the room knows that as it stands today, the stock’s nearly worthless.”
McKinney glowered at his partner and then relented. “Fine, I accept your offer, General. Ten thousand dollars it is. Somehow, I strongly suspect, you’re getting a much better deal than that which is apparent.” He reached out his hand and Will took it, sealing the deal.
Will gave his best impression of a Teddy Roosevelt smile and said, “Mr. Williams, it looks to me like we’re now business partners. Would you do the honors of drafting the document for Mr. McKinney’s stock sale?”
Williams agreed. “I’ll have the contract ready tomorrow afternoon, if that’s acceptable to you both?”
After another round of handshakes, McKinney took his leave and left with a spring in his step, as Will imagined the other man mentally spending his money on anything of value between Galveston and Austin. He caught the thought, and reminded himself that neither McKinney nor Williams were spendthrifts. Both men had robust business acumen and he would do well to remember that.
After McKinney’s departure, Williams asked Will to join him and his family for lunch. Will recognized the repeated looks Sam traded with his wife, Sarah, as it was the same look Will traded with Becky. Williams’ family was young, there were four children, all below the age of twelve. Organized chaos was the word which came to Will’s mind, as he saw Williams’ three sons clowning around and being silly. The tired smile of an apology from Sarah was one Will recognized from his own childhood, having frequently seen it on his own mother’s face.
With lunch behind them, Sam Williams and Will were alone in the room and the other man asked, “General, after reading about Señor Garza’s success with the Gulf Farms Corporation, my own sources have told me you are an instrumental member of the board. After watching you and Tom haggle over the bank, I’m inclined to think my sources were right. What are your plans here?”
Will said, “Sam, my friends call me Buck. Don’t discount Señor Garza’s own business skills. Much of the growth and success of the corporation belong to him. Let’s talk about the bank. My goal is to add an infusion of capital into the bank, and as mentioned earlier, make a sizable capital and land acquisition loan or stock buy to Gulf Farms.”
Intrigued, Williams asked, “Just how much of a capital infusion do you have in mind, ah, Buck?”
Will stared at Williams, thinking about how much he would be able to trust his new partner. His thoughts drifted back to the old slave he had seen earlier, and he asked, “A question for you, Sam. I noticed when I arrived, you have a slave working for you. I had heard you were a Rhode Island man. I’m curious about how you found yourself owning a slave.”
Williams raised a curious eyebrow. “That’s an odd question, General. Nevertheless, the short answer is that after my wife and I married, I guess it’s been thirteen years ago now, our family grew as nature has a way of doing, and my wife wanted help around the house. Around that time, I found Billy, who you saw out there. He was for sale by his master, who had let him get grievously injured in a farming accident. If I recall correctly, I paid around a hundred dollars. You haven’t seen her, but we also have another slave, Chastity. I guess it was after Austin was born. One of our neighbors had this young slave woman who was barren. We inquired about it and bought her.”
Williams paused as he looked quizzically at Will. “I have heard, General, you have particularly strong views on slavery. It has been twenty-five years since I left Rhode Island. I’ve been in Texas now for nearly twenty of them. My view on that particular institution has evolved, living as I have, among my Southern born wife and neighbors. There is something you should consider, General. I may not be a savior for Chastity or Billy. No matter how bad you may consider their plight as slaves under my roof, consider how much worse their lot would be if they had to toil away in the cotton fields all day.”
Will tried to reconcile the image of the loving husband and father, against the image of a slave owner. “Be that as it may, Sam, I imagine their lot would be considerably better if they were free.”
Will was surprised by Williams’ response. “Would it, General? I wonder. If Chastity had her freedom, who would protect her? She is unable to have children. I’d like to think she’d find a husband to care for her and provide for her, like I do my Sarah. But do you really think it likely? You saw Billy. He’s an old man now. Hell, General, he was born during the American Revolution. I think the reason he was injured was that he was getting past his prime to work in the fields. Rather than admit to his own mistake, his former owner cut his losses and sold him. I really do understand your position, but if I manumitted him, where would he go, what would he do?”
Will was bewildered by William’s logic. “If they were free, they could freely remain and work for you for a wage.”
Williams nodded, “Perhaps. But two things to consider, General. First, is that if they were free they wouldn’t have to. The second is that if they are free, my obligation to care for them also is over. As ugly as it may seem to you, General, to me, cutting them loose runs the risk of being just as bad.”
Will shook his head. “I respectfully disagree, Sam. I believe the black race has the capacity to be just as capable as we are, if they are given the same opportunities as we have. Ultimately we owe it to them to not hold them back in chains.”
Williams considered Will’s words before thoughtfully responding, “May your vision of the world come true before the lion and the lamb lie down next to each other, General. It would be a better world than the one in which we live. I admit, Texas would be a better place if every child born here were born free and we were to let slavery die of old age.
Will found what he had been hoping for, in Williams. To Will there were a mess of contradictions in his newfound business partner. He was a New England born man who made peace with slavery, yet saw his role as much protector as master. He was a man who was demonstrative in his love to his wife and children and was a hardnosed man of commerce. And as Will was discovering, he seemed a man who saw a better future would come by changing the present.
Will said, “Sam, I know we see the world through different eyes, but, by God, man, I do believe I can work with you.”
Williams smiled sheepishly. “I have to admit, I thought you’d storm off when you asked about slaves.”
“If I limit my dealings with men who see the world exactly as I do, it would be a very lonely place,” Will replied.
Williams drew up the agreement which would govern their arrangement for managing the bank’s operation. Will had him include a provision in which both men could add capital to the bank, in exchange for new shares.
As he read the details of the agreement, Will said, “As we breathe new life into this bank, it’s important to me that we not extend loans to plantations or to accept slaves as collateral.”
Williams conceded the point and noted it in the contract.
As the afternoon grew late, Will said, “There are a couple of more points, partner. First, I want you to run the day to day operations of the bank. It serves my interests to be a silent partner.”
Williams said, “That suits my interests just fine, General. What’s the other point?”
“If you’re in agreement, I would like for our first act to be the issuance of bank stock to me for the value of the loan, which would provide the bank’s seed capital?”
“You’ve played your cards close to the vest, General, up until now,” Williams said, “that was something I had meant to ask, just how much capital do you bring to the table?”
Will’s face lit up as he took out the letter of credit from the Lloyds Bank and set it before Williams, “At current exchange rate, around one million dollars in US speci
e.”
Williams’ jaw dropped, and a smile slowly spread across his face. “I do believe that this is the beginning of a beautiful partnership.”
Chapter 23
As he stepped down from the stagecoach, Will brushed off some of the dust from his uniform. The trip from San Antonio to Austin still took the better part of two days, but the grade of the road was noticeably smoother, and the coach found fewer chuckholes than before. That wasn’t the only surprise he’d noticed as the stagecoach rolled along the prairie between the two towns. As the coach had forded the Guadeloupe River, he had looked out the window and saw a surveying team. It appeared to Will, they were surveying the right-of-way for railroad tracks.
Will recalled an article from the Telegraph and Texas Register a few years earlier in which the writer had written about a railroad company, chartered by Congress in 1836, but it had never taken off, squandering its investors’ money before closing its doors a few months later. A second one had received a charter in 1838. Will was passingly familiar with it, as Don Garza, the president of Gulf Farms Corporation, had heavily invested the company’s money into the railroad. By the beginning of 1841, a few months earlier, it opened a short, thirty-mile line between Anahuac and West Liberty. Garza had confided the project nearly floundered when they began construction of the bridge over the Trinity River. Their first design had to be scrapped, and they were forced to bring in engineers from New York to design and lead the construction of the bridge. The project finished six months behind schedule and several thousands of dollars over budget. But it allowed the corporation to transport their cotton by rail to the port at Anahuac.
Will wondered who was behind the enterprise between San Antonio and Austin. Between his own personal financial dealings and the heavy demands on his time as military commander, Will was only able to follow a fraction of the financial schemes working their way through the economy of the Republic.
As he left the stagecoach office, he ran into Ben McCulloch. “General Travis, just the man I had hoped to find.”