CHAPTER III
A BAD SEND-OFF
It was almost eight o'clock when the dinner party assembled in thereception-room of the Waldorf. Leo was first to arrive, and Lucille wasthere to receive him. At ten minutes of eight, solicitor Hugh Searlescame; then entered Colonel Harris and his daughters, Alfonso followingwith his mother. Mrs. Harris wore a black satin dress with jet trimmingsand Van Dyke lace. Lucille's dress of light blue faille silk, garnishedwith pearls and guipure lace, was very becoming. Leo so told Lucille, andshe thanked him but hid behind her lips the thought that Leo never beforeseemed half so manly. Mr. Searles evidently admired Leo, and he talked tohim of Italy's greatness in literature and art. He sat at ColonelHarris's right, opposite Mrs. Harris. Leo and Lucille occupied seats atthe end of the table, and at their right and left sat Alfonso andGertrude.
Guests of the hotel and their friends chatted in low conversation at themany tables of the model dining-room. Electric lights shone soft in theceiling, and under pretty shades at each table, which added much to thegeneral effect.
Long before the sweets and fruits were reached, the conversation haddrifted from one conventional topic to another, until Mrs. Harris askedHugh Searles what he thought of higher education for women.
"Yes, yes, Mr. Searles," said Gertrude, "please tell us all about theEnglish girl."
"Does she go to college, and does she ride a bicycle!" queried Lucille.
Mrs. Harris was eager to listen to the Englishman's reply for often shehad earnestly talked the matter over in her home. Mr. Searles was veryfrank in his views, and surprisingly liberal for an Englishman, and wellhe might be, for his own mother was a power, and his sisters were strongmental forces in Lincolnshire. Aided by tutors and their scholarlymother, they had pursued at home, under difficulties, about the samecourse of studies, that Hugh, their brother, had followed in theuniversity.
Searles believed that absolute freedom should be given to women to doanything they wished to do in the world, provided they could do it aswell as men, and that nobody had any right to assert they should not.
Colonel Harris, even for a business man, was also advanced in his ideas.He had advocated for his daughters that they should possess healthybodies and minds, and be able to observe closely and reason soundly.
Lucille said that she favored an education which would best conserve andenlarge woman's graces, her delicate feeling and thought, and her lovefor the beautiful.
Then Leo and Alfonso both declared that Lucille had expressed fully theirown opinions.
Colonel Harris added, "Come, Gertrude, tell us what you think."
Her face flushed a little as she replied, for she felt all that she said,"Father, I like what Mr. Searles has told us. I think higher educationfor women should develop purity of heart, self-forgetfulness, andenlarged and enriched minds."
"Well spoken, daughter," said Colonel Harris. "Now, dear, what have youto say?"
Mrs. Harris had listened well, as she had been a slave in the interestsof her children, especially of her daughters. She thought that the lasttwenty-five years had proved that women in physical and intellectualcapacity were able to receive and profit by a college education. Oftenshe had longed for the same training of mind that men of her acquaintanceenjoyed. The subject was thus discussed with profit, till the Turkishcoffee was served. Closing the discussion, Searles thought that Americaled England in offering better education to woman, but that England hadgiven her more freedom in politics; the English woman voted for nearlyall the elective officers, except members of Parliament. He believed thatthe principle of education of woman belonged to her as a part ofhumanity; that it gave to her a self-centered poise, that it made her acompetent head of the home, where the family is trained as a unit ofcivilization.
He felt that woman possessed the finest and highest qualities, and thatit was her mission to project and incorporate these elevating qualitiesinto society. He thought man had nothing to fear or lose, but much togain; that to multiply woman's colleges everywhere, was to furnish thetwentieth century, or "Woman's Century" as Victor Hugo called it, witha dynamic force, that would beget more blessings for humanity than allprevious centuries.
Gertrude thanked Mr. Searles for what he had said, and the party withdrewto the Winter Garden Cafe, pretty with palms, where Lucille, Leo, andAlfonso talked of society matters, of art and music.
Gertrude read to her mother, while Hugh Searles and Colonel Harrisstepped outside into the gentlemen's cafe for a smoke, as both were fondof a cigar. There the conversation naturally drifted upon the tariffquestion.
Mr. Searles asserted that he favored free trade, and that he was sorryAmerica was not as far advanced and willing as Great Britain to recognizethe universal and fundamental principle of the brotherhood of mankind,and the inborn right of everybody to trade as he liked in the world'scheapest markets. He added that he sometimes felt that Americans weretoo selfish, too much in love with the vulgar dollar.
Colonel Harris, wounded in his patriotism, now showed that he was alittle disturbed. He thanked Searles for his deep interest in Americans,adding, "We are glad you have come to study Americans and America." Thenlooking the Englishman full in the face he said, "Mr. Searles, you willfind human nature much the same wherever you travel. Nations usuallystrive to legislate, each for its own interest. You say, 'Americans workfor the almighty dollar.' So they do, and earnestly too, but our kith andkin across the sea worship with equal enthusiasm the golden sovereign.Look at the monuments to protection in your own city."
"What monuments?" asked Searles.
"Monuments to protection on all your streets, built under British tarifflaws. Every stone in costly St. Paul's Church, or cathedral, was laid bya duty of a shilling a ton on all coal coming into London. A shilling aton profit on coal, mined in America, would create for us fabulousfortunes. Selfishness, Mr. Searles, and not brotherly love, drove yourcountry to adopt free trade."
"I do not agree with you," said Mr. Searles.
"'Tis true, and I can prove it," answered Harris. By this time severalpatrons of the hotel stood about enjoying the tilt between tariff andfree trade.
"Give us the proof then," replied Searles.
"To begin with," said Harris, "I must reply to your first assertion, forI deem your first statement a false doctrine that 'everybody has a rightto trade in the world's cheapest markets.' Nobody has a right to trade inthe world's cheapest markets, unless the necessary and just laws of hisown country, or the country he dwells in, permits it. Now as to the muchabused 'brotherhood argument' let me assert that, like England, anynation may adopt free trade, when it can command at least four importantthings: cheap labor, cheap capital, and cheap raw material. Now Mr.Searles, what is the fourth requisite?"
Searles did not answer. Clearly, he was interested in Harris's novel lineof argument for free trade.
"Well," said Harris, "England is inhabited by a virile people, whoevidently believe in God's command to 'Be fruitful, and multiply, andreplenish the earth, and subdue it.' England, with her centuries ofrising civilization, her charm of landscape, and her command of theworld's affairs, offers at home magnificent attractions for her sonsand daughters, that make them loyal and law-abiding citizens.
"It is true that annually many thousands seek fame and fortune in newcountries, but most of her citizens prefer poverty even, and, if need be,poverty in the gutters of her thriving cities, to a home of promise indistant lands. Hence, a rapidly increasing and dense population obtainsin all the British Isles, and labor becomes abundant and cheap, and oftena drug in the market. The repeal of the Corn Laws first became anecessity, then a fact, and the cheaper food made cheaper labor possible.Lynx-eyed capital, in the financial metropolis of the world, was quick todiscover surplus labor.
"Already English inventors had made valuable inventions in machinery forthe manufacture of iron, cotton, woolen and other goods, which furthercheapened labor and the product of labor.
"England with cheap capital and cheap labor, now had tw
o of the fourthings needed to enable her to go forward to larger trade with the world.The third requisite, cheap and abundant raw material, she also secured.Material, not furnished from her own mines and soils, was brought inplentiful supply at nominal freights, or as ballast, by her vessels,whose sails are spread on every sea.
"For three centuries Great Britain has vigorously and profitably pursuedSir Walter Raleigh's wise policy: 'Whosoever commands the sea, commandsthe trade, whosoever commands the trade, commands the riches of theworld, and consequently the world itself.'
"On the ceiling of the reading-room of the Liverpool Cotton Exchange ispainted the pregnant words:--'O Lord, how manifold are thy works, inwisdom hast thou made them all; the earth is full of thy riches.' Underdivine inspiration, therefore, English capital seeks investmenteverywhere, and with cheap capital, cheap labor, and cheap raw materials,she finds herself able to compete successfully with the world. It ispossibly pardonable then that the British manufacturer and politicianshould seek earnestly the fourth requisite, viz., a large market abroad.Hence the necessity of free trade.
"To advocate publicly that other nations should adopt free trade, thatEngland might have an increased number of buyers, and consequentlygreater profit on her products, perhaps would not be judicious; so theprinciple of free trade for the world at large must be sugar-coated, tobe acceptable. Therefore your philanthropic and alert Richard Cobden, andJohn Bright, and your skilled writers, both talked and wrote much aboutthe 'brotherhood of mankind,' hoping that the markets of the world mightwillingly open wide their doors to British traders. Of course, advocatesof free trade reason that the larger the number of buyers the larger theprices.
"Mr. Searles, whenever America can command, as Great Britain doesto-day, cheap capital, cheap labor, and cheap raw materials, she toomay vociferously advocate free trade, and that other nations shall openwide their markets for the sale of American products.
"Don't you see, Mr. Searles, that protection and free trade are equallyselfish and not philanthropic principles?"
"Mr. Harris you are right," shouted several of the by-standers.
But Hugh Searles did not reply. Possibly because it was late or, it maybe, he did not wish to further antagonize Colonel Harris with whom hehoped in the morning to drive a good bargain, and it may be that he hopedsome time in America to operate mills himself and make money under aprotective tariff.
Both Searles and Harris retired for the night with an agreement to meetat nine o'clock in the morning and talk over business. Searles rose withthe sun, and after eggs, bacon, and tea, he walked to the Battery andback, before nine, the appointed hour for his first business conferencewith Reuben Harris.
A good sleep had refreshed Colonel Harris and at breakfast he appeared ina joking mood. While he smoked, he glanced at the _Tribune_ and againexamined Searles's letter of introduction from Messrs. Guerney & Barring.At nine o'clock promptly, Mr. Searles came and Colonel Harris exhibitedto him a brief statement of the business of the Harrisville Iron & SteelCo., extending over the last ten years, and showing the company's annualprofits.
"A very good business your company did, and you made large profits,Colonel Harris," said Searles. "And am I to understand that you have madein your statement a proper allowance for depreciation of values inbuildings and machinery, also for all losses and cost of insurance, andthat after these deductions are made the company's net profits annuallyamounted to an average of over one hundred thousand pounds, or a halfmillion dollars?"
"Yes," replied the colonel.
And Mr. Searles remarked, "Colonel Harris, if your arguments last eveningdid not fully convert me to the decided advantage which Americans gain byprotection, this statement of the Harrisville Iron & Steel Co. does. Ayear ago, some Americans in London called our attention to yourprofitable plant, hence our first letter of inquiries. Your repliesconfirmed the report and so we cabled for this initial meeting betweenus.
"Messrs. Guerney & Barring have been most successful in financiering someof the largest business interests in the world, and thus they haveachieved a splendid reputation. It was their wish that I should securefor them your most favorable terms with an option of purchase of yourplant, the same to hold good for two months, or for a sufficient lengthof time to allow them to organize a syndicate, and float necessarydebentures to buy the stock, or a controlling interest in your company,and so continue the business."
"Mr. Searles, we Americans are not anxious to sell, especially toforeigners, our best paying concerns. We ought to keep them under our owncontrol. However, of late, I have been inclined to indulge my family in alittle foreign travel, and myself in more leisure for books, and possiblyfor politics, believing that not enough of our good citizens enterCongress. I might, on certain conditions, name a price for all the stockof 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 nowas large as it should be.
Total Capital Stock $2,000,000Par value of shares 100Present 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 lessmoney. He hesitated, as if in deep study, but not long, for he believedthat, if the Harrisville Iron & Steel Co. for ten successive years couldpay $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 neatadvance, say for L1,400,000 or $7,000,000, in London, where even sound3% 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 paymentsfor the balance."
"Well, Colonel Harris, how would the following terms please you?
One-eighth cash $625,000One-eighth 30 days 625,000One-fourth 60 days 1,250,000One-fourth 90 days 1,250,000One-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 Londonplan. Suppose I should take for Messrs. Guerney & Barring a contract, oroption of purchase on the property with payments as named, the purchaseto be conditioned upon a verification of the correctness of yourstatements. Our experts can examine and report soon on your accounts forten years back, and on buildings, machinery, stock on hand, land, etc."
"Mr. Searles, please explain further your 'London plan' ofreorganization."
"Colonel Harris, we would modify the old firm name, so as to read--'TheHarrisville Iron & Steel Co., Limited, of London, England,' andcapitalize it at L1,400,000, or $7,000,000.
Par value of shares L20 or $100Number 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 toLondon, where it will be signed by Messrs. Guerney & Barring, the firstpayment made, and the contract underwritten or guaranteed by theGuardian, Executor & Trust Association, Limited, of London, whose capitalis $5,000,000. The association will also underwrite the bonds andpreference shares. This will practically complete the purchase."
"But what about the last one-fourth payment in preferred shares of$1,250,000?"
"Pardon me, Colonel Harris, that is just what I desire to explainfurther. The new company will issue debentures or bonds, running 30years, at 4%, for L800,000 or $4,000,000; preference shares L400,000 or$2,000,000; with dividends 6% guaranteed, and a preference indistribution of property, if company is dissolved. Ordinary sharesL1,200,000 or $6,000,000. And our London prospects will show that theordinary shares can earn at least 5%. For the last one-fourth we wish youto take 12,500 preferred shares, or $1,250,000.
"London holders, of course, will elect all the office
rs, a managing boardof directors, with general office in London. For a time they will expectyou to advise in the management of the business at Harrisville."
After some further explanations, Harris agreed to sign a contract oroption of purchase, drawn as specified, if after investigation, he shouldbecome satisfied with the responsibility of the London parties. OnTuesday morning, contracts in duplicates were presented for ColonelHarris's inspection. After twice carefully reading the contract, he gavehis approval and wrote Mr. Searles a letter of introduction to Mr. B.C.Wilson, his manager at Harrisville, requesting the latter to permit Mr.Searles and his experts to examine all property and accounts of theHarrisville Iron & Steel Co. for ten years back.
It was also arranged that on Wednesday, at 12 o'clock noon, Mr. Searlesshould see the Harrises off to Europe, then Mr. Searles and his expertswere to go to Harrisville in Colonel Harris's private car. Later Mr.Searles and Colonel Harris were to meet in London, and then, ifeverything was mutually satisfactory, all parties were to affix theirsignatures to the agreement, and the cash payment was to be made at theLondon office of Guerney & Barring.
Wednesday, Colonel Harris rose early as had been his habit fromchildhood. He was exacting in his family, and also as a manager of labor.Every morning at six o'clock all the family had to be at the breakfasttable. Colonel Harris always asked the blessing. Its merit was itsbrevity: sometimes he only said--"Dear Lord, make us grateful and goodto-day. Amen." Thirty minutes later, summer and winter, his horses andcarriage stood at his door, and punctually at fifteen minutes of seveno'clock he would reach his great mills. His first duty was to walkthrough his works, as his skilled laborers with dinner pails entered thebroad gates and began the day's work. Devotion like this usually bringssuccess.
After breakfast, Mrs. Harris and her daughters walked down Fifth Avenueto make a few purchases. Alfonso and Leo hurried off to get their baggageto the "Majestic," while Jean busied himself in seeing that a transferwas made to the steamer of all the trunks, valises, etc., left at thedepot and hotel.
At ten o'clock Jean called at the dock to learn if the half-dozen steamerchairs and as many warm blankets had arrived, and he found everything inreadiness. It was 10:30 o'clock when the Waldorf bill was paid, and thegood-bye given. The young people were jubilant, as the long hoped-forpleasure trip to Europe was about to be realized.
The carriages for the steamer could not go fast enough to satisfy theold, or the young people. Several schoolmates, artists, business andsociety friends met them on the dock. Many fashionable people had alreadyarrived to say "_Bon Voyage_" to the Harrises and to Leo. Hundreds ofothers had come to see their own friends off. It was all excitement amongthe passengers, and carriages kept coming and going.
Not so with the English officers and sailors of the "Majestic." They werecalm and ready for the homeward passage.
The last mail bag had been put aboard, and the receipts to the governmenthurriedly signed. Mr. Searles had said good-bye, and last of all toColonel Harris. As the colonel went up the gangway, the bell rang and thecries "All aboard" were given. For once, Colonel Harris felt a sense ofgreat relief to thus cut loose from his business, and take his first longvacation, in twenty-five years from hard work.
"Now, I shall have a good time, and a much needed rest," he said. Butjust as he stepped into the steamer's dining-saloon, Mr. Searles, who hadhastily followed, touched him on the shoulder and said. "Here, ColonelHarris, is a telegram for you."
Harris quickly tore it open. It was from Wilson, his manager, and it readas follows:--
Harrisville, June 9, 18--. _Colonel Reuben Harris, Steamer Majestic, New York_.
Our four thousand men struck this morning for higher wages. What shall we do?
B.C. Wilson.
Harris was almost paralyzed. His wife and daughters ran to him. Thesteamer's big whistle was sounding. All was now confusion. There was onlya moment to decide, but Harris proved equal to the situation. He steppedto the purser, surrendered his passage ticket, kissed his wife and twodaughters, saying to his son, "Alfonso, take charge of the party as I goback to Harrisville."
Gertrude, insisting, accompanied her father, and remained ashore. On thedock stood Colonel Harris, Gertrude, and Mr. Searles, all three wavingtheir white handkerchiefs to Mrs. Harris, Lucille, Alfonso, and Leo. Whata bad send-off!
The best laid schemes o' mice an' men, Gang aft a-gley, And leave us nought but grief and pain, For promised joy.
The Harrises on the steamer, and the Harrises on the pier had heavyhearts, especially Colonel Harris and Gertrude so suddenly disappointed.It was soon agreed that the three should start that evening forHarrisville.
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