Cowperwood then signed and handed to Messrs. Greaves and Henshaw his check for £30,000 which by then was endorsed to Traffic Electrical Company. The company, through its officers, endorsed it to Cowperwood. Whereupon he wrote his check for £60,000, and for that took over from the London and County Bank its legal acknowledgment of his ownership of the consols. After this, he handed Greaves a duly attested and guaranteed one-year’s non-negotiable agreement. The meeting then closed, with an atmosphere of enthusiasm which was hardly to be explained by the business of the moment.
The explanation of this was the personality of Cowperwood and its effect on all those present. Calthorpe, the chairman of Traffic Electrical, for instance, a blond and stocky man of fifty, had come stuffed with prejudice against any American attempting to manage a London railway property. Nevertheless, it was plainly evident that he was impressed by Cowperwood’s dynamic alertness. Rider studied Cowperwood’s clothes, taking note of his beautifully set jade cuff links, his dark tan shoes, and his well-tailored sand-colored suit. Obviously, America was producing a new and distinct type. Here was a man who could, if he wished, become a great force in London’s affairs.
Johnson thought Cowperwood had handled the situation with shrewdness and even an agreeable cunning. The man was ruthless, but in a way which the jumbled interests and oppositions of life required. He was about to leave when Cowperwood came over to him.
“From what I hear, Mr. Johnson, you are personally interested in this underground situation,” he said, smiling a cordial smile.
“Yes, to some extent,” replied Johnson, civilly, and yet with caution.
“My lawyers have informed me,” continued Cowperwood, “that you are more or less of an expert in the traction franchise field here. You see, I have been trained on the other side, and this is all new ground to me. If you have no objection, I would like to talk with you further. Perhaps we could have lunch or dinner together, either at my hotel or some place where we would not be likely to be interrupted.”
They agreed upon Brown’s Hotel for Tuesday evening of the following week.
Alone with Sippens after, they had all left, Cowperwood turned to him and said:
“Well, there you are, De Sota! We’ve just bought a lot more trouble. What do you think of these Englishmen, anyway?”
“Oh, they’re all well enough where they’re dealing with each other,” said Sippens, still irritated by Johnson’s manner, “but you’ll never see the day when you won’t have to look out for them, Chief. Your surest support will be the men you yourself have trained.”
“I guess you’re right, De Sota,” said Cowperwood, sensing what was in Sippens’ mind. “But I’m not sure that I won’t have to include some of these fellows over here, to make everything smooth and right. They can’t be expected to stand for too many of us all at once. You know that.”
“True enough, Chief, but you want enough Americans to keep them from catching you napping!”
But there was revolving in Cowperwood’s mind the thought that what perhaps was needed was a loyal and enthusiastic English group, men like this Johnson and Greaves and Henshaw, and even that quiet fellow, Rider, who had studied him so carefully but said nothing. In this rapid series of developments, some of these longtime American connections might lose value. He knew only too well that out of sentiment came nothing that was sufficient in any crisis to warrant its preservation. If life had taught him anything, it had taught him that. And he was not one to turn from his most relentlessly cruel and yet constructive teacher.
Chapter 31
Although it had been agreed that no information of any kind in connection with the transfer of the Charing Cross line was at present to be furnished to the press, the news somehow leaked out, possibly due to gossip emanating from Rider, Calthorpe, and Delafield. Having been shareholders as well as officers of Traffic Electrical Company before its property was thus transferred, they feared for their future and were inclined to discuss the matter. So that it was not long before financial as well as news reporters appeared, asking Cowperwood for confirmation of the fact.
Cowperwood informed them frankly that such a transfer was now in process, and that, in due time, a certificate of registration would be filed. Also, that originally he had not come to London to buy anything, seeing that his American interests still required so much of his time, but that certain representatives of London underground ventures had called upon him to urge his managerial as well as financial consideration of routes in which they were interested. The purchase of the Charing Cross had been the result of these overtures, and there were other ventures to which he had promised to give his attention. Whether this would result in a unified system which he would care to build depended on what his coming investigations would reveal.
In Chicago, the editorial comments following this announcement were little more than snarls of rage. That such a ruthless trickster, so recently ejected from that city, should proceed to London, and there, by reason of his wealth, cunning, and general effrontery, be able to cajole the powers of that great city into looking to him for the possible solution of their transit needs, was too much! Plainly, the British had not troubled to inquire into his highly sinister record. But once that was uncovered, as it presently would be, he would be as unwelcome there as he was to this hour and for years past had been in Chicago! There were equally unfavorable comments in the newspapers of a number of other American cities, the editors and publishers of which had taken their mood from that of Chicago.
On the other hand, in the London press, and not strange to relate—since its social, financial, and political opinions were highly realistic and never likely to be based on popular complaint—the reaction toward Cowperwood was most favorable. The Daily Mail ventured the opinion that such ability as his might not disadvantageously be centered upon the laggard London underground field, which for years had toddled far behind public necessity. The Chronicle deplored the inactivity of English capital and expressed the pious hope that if an American, in so distant a place as Chicago, could discern what London needed, perhaps the traction leaders of London would now awaken and go forward themselves. There were similar comments in the Times, Express, and other journals.
These comments were, from a financial point of view, as Cowperwood saw it, unfortunate. They were likely to concentrate not only English but American financial ambition on his own purpose and awaken obstructive activity, and in this he was certainly not wrong. For no sooner were the notices of the sale of the line confirmed, and his admission as to other offers and his possible future interest in the London transit problem made public, than the chief stockholders of both the District and the Metropolitan, the two lines most impugned, were in a fury of indignation, and in so far as the future was concerned, most certain to oppose him.
“Cowperwood! Cowperwood!” sniffed Lord Colvay, shareholder and one of the twelve directors of the Metropolitan, as well as of the new City and South London. He was having his breakfast, with the Times to the right of him, for reasons of mental dignity principally, but at the moment was reading the Daily Mail, his favorite paper. “And who the devil is this Cowperwood? One of those mushroom Americans, gadding round the world, telling people what to do! I wonder who his so-called advisers are—Scarr, maybe, with that Baker Street and Waterloo scheme of his, and Wyndham Willets, with his Deptford and Bromley route. And, of course, Greaves and Henshaw, looking for contracts. And the Traffic Electrical anxious to clear out.”
Equally annoyed was Sir Hudspeth Dighton, director of the District and a shareholder in the Metropolitan. He was already seventy-five years of age, ultraconservative and not at all interested to enter upon radical railway changes, particularly when they represented large expenditures, the profit outcome of which could not definitely be foretold. He had arisen at five-thirty, and after having his tea and reading his paper, was walking among the flowers on his estate at Brentford, pondering the problem of these Americans, with their newfangled notions about everything. To be su
re, the undergrounds were not doing so well as they might, and the equipment might be modernized to advantage. But why should the Times and the Mail be pointing out the fact, and particularly in connection with the arrival of an American who certainly could do no better than any of a score of Englishmen when put to it? It was no more and no less than belittling British ability, which was nonsense. England ruled, and would continue to rule, the world. It certainly needed no outside help. And from that moment on, he was prepared to argue against any foreign interference in connection with the development of London underground transit.
So, too, with Sir Wilmington Jeems, whose residence was in the region of Wimbley Park. He was also a director of the District. He was willing to admit that modernization and extension were desirable. But why an American? When the proper time came, that could be arranged by Englishmen.
And something related to the opinions of these three men constituted the majority reaction of the directors and largest shareholders of both the Metropolitan and the District, as well as those of the other underground railways of London.
But it was Colvay, the most aggressive and dynamic of the three, who was finally roused to defensive action. That same day he proceeded to consult the other directors, Stane first of all, as to what action should be taken in the matter. But by then Stane had been sufficiently impressed by Johnson’s account of Cowperwood, and what he had read in the papers, to answer Colvay very cautiously. He stated that this proposal of Cowperwood’s was a natural development. It was something which anyone apart from the older directors of both companies could see as necessary. Certainly, the obvious thing, now that a rival system was proposed, was to call a meeting of the directors of the Metropolitan and the District, and both groups should confer as to a proper course.
Colvay next called on Sir Wilmington Jeems, and found him in a perturbed frame of mind. “It’s a hundred to one, Colvay,” he said, “if we and the Metropolitan don’t join up, this fellow is likely enough to pick off enough shareholders in both companies to do us all in. Count on me for unity against Cowperwood, as long as our individual interests are fully protected.”
With this encouragement, Colvay proceeded to call up as many of the directors as he could reach. Out of twelve, he found seven who were alive to the import of what he had to say. Accordingly, special directors’ meetings in both companies were scheduled for the following Friday, and at these meetings a request for a joint conference between the directors of the two companies was voted for the following Thursday, when there would be consideration of this new issue.
Stane and Johnson went into conference on this sudden development. It was very interesting, and most opportune, in view of the forthcoming dinner engagement between Johnson and Cowperwood.
“Depend on it!” said Johnson, “he knows everything about us through that fellow Jarkins, and he wants to sound us out.”
“Well, two pins to a steam engine,” said Stane, “neither the District nor the Metropolitan will do anything unless Cowperwood does something first. Just now, they are considerably stirred up, but our people are not likely to agree on any radical changes. They cannot bring themselves, even now, to unite the two loop lines, let alone electrify them and operate them as a unit. Unless Cowperwood goes ahead with his program, they will do nothing. My feeling is that we should play with him up to the point where we see just how comprehensive his plan is, and whether he is certain to go through with it. Then we can decide what it is going to mean to us. Unless it is perfectly clear that the Metropolitan-District people are willing and ready to do as well or better, I feel we should join with Cowperwood and compromise with our old friends later.”
“Quite sound, quite sound!” interjected Johnson at this point. “I’m with you entirely as to that. At least, in theory. But don’t forget, my position in this matter is a little different from yours. As a shareholder in both lines, I feel with you that very little is to be expected from those who are in charge of things now. But as a solicitor for both lines, I have to consider how my activities in this dual capacity are likely to turn out. As you can see for yourself, I cannot operate on both sides at once. My duty, as well as my sincere desire, is to study the matter thoroughly without taking sides, and to see if the English and American interests cannot be harmonized. As solicitor, it seems to me there could be no harm in my confessing that I have been approached by Mr. Cowperwood as to their general attitude. And as a shareholder in these companies, I should be able to decide for myself which is the best program, and, privately, at least, act accordingly. You don’t see any moral objection to that, do you?”
“None whatever,” said Stane. “It seems to me a very fair and frank position for both of us to take. If they object, all right. That shouldn’t bother us. And, of course, Mr. Cowperwood will take care of himself.”
“Well, I certainly am glad to hear you say that,” commented Johnson. “I was beginning to be a little troubled, but now I think it may work out. At least, there will be no harm in my having this consultation with Cowperwood. And then, if it looks satisfactory to you, perhaps we can go further. That is, the three of us,” he added cautiously.
“Certainly, the three of us,” replied Stane. “Whenever you have anything definite to report, let me know. At least, we can say one thing,” he added, getting up and stretching his long legs, “we have stirred up the animals a bit. Or, at any rate, Cowperwood has done it for us. And all we have to do is to sit tight and see which way they are going to jump.”
“Quite so,” said Johnson. “I’ll get in touch with you immediately after I see Cowperwood on Tuesday.”
Chapter 32
The dinner at Brown’s Hotel was fateful not only for Johnson and all he represented, but for Cowperwood and all that he desired to achieve, although neither of them fully realized this at the time.
As Cowperwood soon learned, Johnson had been deeply impressed by what had just occurred in connection with the directors and investors of the underground interests, and was, for all his previous enthusiasm, seeking to tread a middle course until he should learn exactly what Cowperwood was going to propose. Nevertheless, he was satisfied that Johnson, because of the great stake of future profits in connection with the development of the London transit field, was anxious to side with him if possible. And because of his own desire for social as well as financial rehabilitation, he was determined to make this possible. He began by asking Johnson to tell him quite frankly the difficulties which would confront any foreigner who approached this situation with the end he had in view.
Relieved by this decidedly frank inquiry, Johnson outlined the situation just as frankly. In fact, he talked to Cowperwood as he had talked to Stane about his personal position, making it perfectly clear that he believed his employers to be stubborn and even obtuse, in failing to take account of the great social and economic changes which were slowly but surely developing here. Until this hour, he admitted, there had been no common sense realization of what must be done. And the present interest was due to jealousy of a foreigner rather than to any intelligent desire to solve the problem on its merits. He was sorry to say so, but it was the truth. And however much he might agree with Cowperwood in his desire to do the wise things, if he personally, as solicitor for the Metropolitan and District lines, were suspected of furthering any outside plan of interference, and regardless of his interest as a shareholder, he would be turned on and divested of his present important connections, shorn of his power to do anything at all, which made his position very difficult.
Nevertheless, Johnson insisted, the invasion was legitimate, and, from a purely practical point of view, should be carried through. And for that reason he was anxious to help, if possible. But he must know the exact details of Cowperwood’s program, in order that they might see how far they could go together.
Cowperwood’s private plan was, in reality, much more subtle and ruthless than Johnson was ready at the moment to suspect. For one thing, having contemplated the prestige and advantage which this
single purchase of the Charing Cross rights had brought him, and considering the various other rights which had already been sanctioned by Parliament—but quite all of which appeared to lack the money with which to proceed—he was thinking of buying as many as possible of these for himself, and without a word to anyone. And later, if he were fought too stubbornly, he would combine them and offer London a rival system—a move which he felt would bring his enemies to terms. At the same time, in connection with the Charing Cross line, which was nothing more than a continuation of the old Traffic Electrical Company, he was prepared, if necessary, to share a fair percentage of its founder’s shares with such English investors as could help him get control of the District line.
While Cowperwood had indicated to Berenice that it was his intention to place this London venture on a higher plane than any other he had ever engaged in, nevertheless, experience had taught him the necessity of keeping the major profits in his own hands until such time as he was sure that he would not to be overreached in such a way as to make absolute honesty on his part ridiculous and destructive. It had been a principle with him to own and control not only at least 51 per cent of every company of which he was the head, but also at least 51 per cent of the various minor companies which he invariably organized and operated through dummies.
Thus, in regard to the electrical equipment required by the new line, he was already planning the organization of the Railway Equipment & Construction Company to take over the contract for electrifying the Charing Cross line. Other subsidiary companies would be organized to supply cars, rails, steel girders, station equipment, and the like. Naturally, the profits would be enormous. Although in Chicago, these had gone to himself alone, here in London, in order to win a battle which threatened to be difficult, he was now planning to divide a percentage of these profits with those who would be most useful to him.
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