CHAPTER VII
THE SHAREHOLDERS' MEETING
The afternoon was dark and electric lights burned along the cornice ofthe room engaged for the shareholders' meeting. The room was big andcold, and as Gavin moved about the table on the platform his stepsechoed hollowly. He was the company's secretary and was putting downpapers by the blotting pads. A group of gentlemen, engaged in thoughtfultalk, stood by the fire. They were directors of the line and did notlook happy. Nominally, by the company's constitution, the shareholderselected the Board; in practice, Cartwright had, so far, appointed thedirectors, and meant, if possible, to do so again. The gentlemen by thefire were eligible for reelection, and Cartwright was satisfied,although he had not chosen them for their business talent. Their nameswere good in Liverpool and their honesty was known. Cartwright did notwant clever men. He was head of the house and knew it would totter to adisastrous fall unless he kept his firm control.
Now and then Gavin gave his employer a keen glance. Cartwright's lipswere rather blue and the lines round his eyes were sharply drawn. Hiswhite mustache stuck out, and one got a hint of stubbornness, but exceptfor this his face was inscrutable. Although Gavin thought Cartwrightwould score again, he was anxious. Nobody but Cartwright could persuadethe dissatisfied shareholders to accept _that_ balance sheet.
Cartwright himself felt in rather good form. He had curtailed his lunchand been satisfied with a single glass of liquor that generally bracedhim up. He imagined he would need all his skill and coolness before themeeting was over. The trouble was, he might not get much support. Thedirectors did not know all he knew, but they knew something, and he sawone or two hesitated. Then Mrs. Cartwright was ill, and although she hadgiven her husband her proxy votes, had sent Mortimer. Mortimer wasentitled to come because he had some shares, but Cartwright did not knowthe line he meant to take. The pup did not like him and was cunning.Presently Cartwright looked at his watch.
"They won't be long. I imagine we are going to have some opposition."
"It's very possible," one of the others agreed. "A two-per-cent dividendis disappointing and we are paying this by cutting down the reservefund. Then people know we have lost the use of our best boat for sixmonths and may lose her for good. When we reduced our insurance, I urgedthat we were rash."
"We saved a good sum and economy was needful," Cartwright rejoined."Insurance is expensive for our type of boats."
"The balance sheet looks bad. I'll admit I'd sooner not be accountablefor a state of things like this," another remarked.
Cartwright smiled. The balance sheet looked better than it was, butJordan had given him a useful lead. He knew his colleagues' weaknessesand how they might be worked upon.
"We are all accountable. I have consulted you frankly and you approvedmy plans."
Jordan gave him a rather doubtful look. "Anyhow, we must front anawkward situation. Suppose the shareholders ask for an investigationcommittee?"
"We must refuse," said Cartwright, with quiet firmness. "A frightenedcommittee would probably urge a drastic re-construction scheme, thewriting off much of our capital, and perhaps winding up the line. Whenrates are bad and cargo's scarce, one must take a low price for ships;our liabilities are large, and I imagine selling off would leave us muchin debt--"
Cartwright paused. He saw his remarks carried weight and knew hisco-directors. He would give them a few moments for thought before hefinished his argument.
"Very well," he resumed. "Jordan declares he does not like to beaccountable for an unsatisfactory balance sheet. I take it he would muchless like to be made accountable for a bad bankruptcy! No doubt yousympathize with him?"
It was obvious that they did so and one said, "If I thought my occupyinga seat on the Board would lead to this, I would sooner have given myshares away!"
"I have not talked about my feelings," Cartwright went on. "All thesame, I am head of the old house; you can imagine I do not want to seeit fall. But rates are not always low, and if I'm not embarrassed byrash meddlers, my persuasion is, I can keep the fleet running untilbetter times arrive."
He saw he had won them. The number of shares they owned was not verylarge: for the most part, the men were rich and not disturbed abouttheir money. They valued a high place in business and social circles andtheir good name. To be entangled by a bankruptcy was unthinkable.
"Then, I feel we ought to support you," Jordan replied. "For all that,our power's not very great. We are going to meet some opposition and ifthe dissatisfied people are resolute they can turn us out."
"So long as I know the Board will back me, I'm not afraid of theshareholders," Cartwright declared.
"You imagine you can save the situation?" a red-faced gentlemanremarked.
"It's possible," said Cartwright dryly.
"Very well," said the other. "We must try to see you out."
They went to the table soon afterwards and the shareholders began toarrive. They were not numerous, and the scattered groups emphasized thebareness of the big echoing room. Cartwright studied the people as theycame in. Some looked gloomy and some stubborn; a few looked franklybored. There were five or six women and two whispered, while the othersglanced about with jerky movements. Cartwright's face hardened when hesaw Mrs. Seaton, and then he noted Hyslop in a back row. He thoughtHyslop looked languidly amused.
When all was quiet, he took the notes Gavin handed him, glanced at thepaper, and put it down. Then, speaking in a steady voice, he gave thereport of the year's work and talked about the balance sheet. He wasfrank but not apologetic, and claimed, in view of the difficulties, thatthe directors had well guarded the company's interests. When he stoppedthere were murmurs of approval, as if some of the despondent had begunto hope; the cautious admitted that Cartwright had made a bad situationlook better.
One or two asked questions, which he answered candidly, and then therewas a pause and somebody moved the adoption of the chairman's report andbalance sheet. His seconder made a short nervous speech, and Mrs. Seatongot up at the end of the room. She pushed back her veil, took out herhandkerchief, put her hand on a chair in front, and gave the directorsan apologetic smile.
"I don't know if it is usual for a woman to speak at a business meeting,but I have a number of shares in the line and it's long since I got agood dividend," she said. "Two per cent is ridiculous and my lawyertells me I could get four per cent, where the security is really good."She paused and added naively: "To have twice as much to spend would bevery nice."
Somebody laughed and Cartwright braced himself. Ellen Seaton wascleverer than she looked, and he thought her dangerous, but in themeantime he durst not stop her.
"One feels that security's important and it's plain ours is notfirst-class," she resumed. "Well, I suppose if we accept the report, itmeans we are satisfied to let the company's business be managed on theold plan?"
"It does mean something like that," a man agreed.
"Then I'm _not_ satisfied. For one thing, I want a proper dividend."
"We all want a proper dividend," somebody remarked.
Mrs. Seaton smiled, as if she were encouraged. "To go without isdisappointing, but perhaps the dividend is not most important. I'd liketo feel my shares were worth the money they cost, and find out they arenot. We have drawn on the reserves and I expect this implies we arelosing money. You can't go on losing money very long, and we ought tostop while we have some capital left."
A number of the others applauded and she continued: "Our directors haveworked very hard. To manage ships that don't pay must be tiring andperhaps we oughtn't to ask them to bear the heavy strain. Could we notchoose somebody with fresh ideas to help?"
"That's what we want!" said one. "The Board needs new blood!"
Then the storm broke and for a time Cartwright lost control of themeeting. Mrs. Seaton had loosed passions he might have restrained andthe shareholders were frankly moved by fear, distrust, and greed. Mengot up, asking angry questions and shouting implications, but for a fewminutes Cartwright sat like a rock an
d let them rage. When they stoppedand there was an awkward pause, Mortimer Hyslop got up. He lookedlanguid and his voice was soft, but Cartwright admitted his speech wasclever.
He and Mrs. Cartwright, whom he represented, owned shares in the line,and he had not risen before because the chairman was his relation. Now,when attacks, perhaps not altogether justified, had been made on theBoard, he was forced to state his conviction that nobody else could havesteered the company past the dangers that threatened. One must admit thesituation was bad; and for a minute or two Mortimer cleverly indicatedits drawbacks. For all that, he argued, it was rash to change pilot andofficers in the middle of a storm. The officers they knew and hadtrusted must be left control until the gale blew over.
Mortimer sat down and Cartwright knitted his brows. On the surface, hisstep-son had taken the proper line. Mortimer meant to support the Board,but he had indicated that he did so because it was his duty. His remarksabout the dangers by which the company was surrounded had made thingslook worse. All the same, he had calmed the meeting, but Cartwright didnot know if this was an advantage. Criticism was harder to meet when thecritics were cool.
Another man got up and began to talk in a quiet voice.
"Mr. Hyslop has an object for trusting the chairman that we have notgot. We won't grumble about his staunchness, but we are entitled toweigh his arguments, which are not altogether sound. He owns thesituation is awkward and the outlook dark, but he urges us to trust theofficers who got the ship in danger. One feels this is not remarkablylogical. Then he declares nobody else could have kept the fleet running.I think the claim is rash. In this city we are conservative and nameslong known in business circles carry an exaggerated weight; we expect aman to work wonders because his father started a prosperous line, andanother because he long since made a lucky plunge. Men like these areoften satisfied with former triumphs while times and methods change. Wewant fresh thought and modern methods. It's obvious the old have broughtus near the rocks!"
Cartwright saw the shareholders were moved and the time for him to speakhad come. He got up and fronted a doubting and antagonistic audience.His face was inscrutable, but he looked dignified.
"We have heard angry criticism and hints about slackness," he began."Some of you have suggested rejecting the report, a committee ofinquiry, and new members for the Board, but no substantive motion hasbeen put. Well, before this is done, I claim your patience for a fewminutes. If you are not satisfied, I and your directors are jointlyaccountable. We stand together; if you get rid of one, you get rid ofall. This is a drastic but risky cure--"
He paused and one or two of the gentlemen at the table looked surprised.It was plain they felt the chairman had gone farther than he ought. Thered-faced man, however, smiled as if he approved and Cartwright resumed:
"Times are bad, the markets are flat, and goods are not moved about theworld. I venture to state no steamship company is free fromembarrassments. You can, no doubt, find men with business talent equalto ours and give them control; but you cannot give them the knowledge,gained by long experience, one needs to grapple with the particulardifficulties the Cartwright line must meet. The personal touch isneeded; your manager must be known by the company's friends, and itsantagonists, who would not hesitate to snatch our trade from a stranger.They know me and the others, and are cautious about attacking us. In allthat's important, until times get better, _I am the company_--"
Cartwright stopped and drank some water. He saw he had struck the rightnote and began again:
"I will not labor the argument; the thing is obvious! If I go, the linewill stop running before the new men learn their job. Well, I'm old andtired, but it would hurt to see the house-flag hauled down; it wascarried by famous oak clippers in my grandfather's time. You hesitate torisk your money? I risk mine and much that money cannot buy; the honorof a house whose ships have sailed from Liverpool for a hundred years!"
The shareholders were moved and one heard murmurs of sympathy. Boldnesspaid, and Cartwright saw he was recovering his shaken power, but it wasnot all good acting. To some extent, he was sincere. He got his breathand resumed:
"I don't urge you with a selfish object to let me keep my post; I'd berelieved to let it go. Counted in money, the reward for my labor is notlarge. I want to save the Cartwright line, to pilot it into port, and,if there is no rash meddling, I believe I can. But I warn you the thingis in no other's power. Well, I have finished. You must choose whetheryour directors go or not."
There was an awkward silence, and then somebody asked: "Will thechairman state if he has a plan for meeting a situation he admits isdifficult?"
Cartwright smiled rather grimly. "I will not make a public statementthat might be useful to our antagonists! So long as I am chairman, youmust trust me. My proposition is, give us six months, and then, ifthings are no better, we will welcome a committee of inquiry. In themeantime, a motion is before the meeting--"
"It is proposed and seconded that the directors' report and balancesheet be accepted," Gavin remarked.
The resolution was carried, the directors were reelected, and themeeting broke up. Cartwright sat down rather limply and wiped his face.
"I pulled it off, but they pushed me hard," he said. "At one time, itlooked as if our defenses would go down."
"You have put off the reckoning; I think that's all," one of thedirectors remarked.
"We have six months," said Cartwright. "This is something. If they calla meeting then, I imagine I can meet them."
He signed to Gavin, who helped him with his big coat, and went off tothe underground restaurant, where he presently fell asleep in a chair bythe fire.
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