Colonel Carter of Cartersville | Page 9

said the colonel, reaching for the document.
I complimented the eminent financier on his skill, and was about to ask him what it all meant, when the colonel, who had been studying it carefully, broke in with:--
"Fitz, there is one thing you left out."
"Yes, I know, the name of the banker; I haven't found him yet."
"No, Fitz; but the words, '_Subscriptions opened Simultaneously in New York, London, Richmond_,' and"--
"Cartersville?" suggested Fitz.
"Certainly, suh."
"Any money in Cartersville?"
"No, suh, not much; but we can subscribe, can't we? The name and influence of our leadin' citizens would give tone and dignity to any subscription list. Think of this, suh!" and the colonel traced imaginary inscriptions on the back of Fitz's prospectus with his forefinger, voicing them as he went on:--
The Hon. JOHN PAGE LOWNES, Member of the State Legislature.. 1,000 shares The Hon. I.B. KERFOOT, Jedge of the District Court of Fairfax County....... 1,000 shares Major THOMAS C. YANCEY, Late of the Confederate Army... 500 shares
"These gentlemen are my friends, suh, and would do anythin' to oblige me."
Fitz sharpened a lead pencil and without a word inserted the desired amendment.
The colonel studied the document for another brief moment and struck another snag.
"And, Fitz, what do you mean, by 'full protection guaranteed'?"
"To the bondholder, of course,--the man who pays the money."
"What kind of protection?"
"Why, the right to foreclose the mortgage when the interest is not paid, of course," said Fitz, with a surprised look.
"Put yo' pencil through that line, quick--none of that for me. This fo'closure business has ruined haalf the gentlemen in our county, suh. But for that foolishness two thirds of our fust families would still be livin' in their homes. No, suh, strike it out!"
"But, my dear Colonel, without that protecting clause you couldn't get a banker to touch your bonds with a pair of tongs. What recourse have they?"
"What reco'se? Reorganization, suh! A boilin'-down process which will make the stock--which we practically give away at fifty cents on the dollar--twice as valuable. I appreciate, my dear Fitz, the effo'ts which you are makin' to dispose of these secu'ities, but you must remember that this plan is mine.
"Now Major," locking his arm in mine, "listen; for I want you both to understand exactly the way in which I propose to forward this enterprise. Chad, bring me three wine-glasses and put that Madeira on the table--don't disturb that railroad!--so.
"My idea, gentlemen," continued the colonel, filling the glasses himself, "is to start this scheme honestly in the beginnin', and avoid all dissatisfaction on the part of these vehy bondholders thereafter.
"Now, suh, in my experience I have always discovered that a vehy general dissatisfaction is sure to manifest itself if the coupons on secu'ities of this class are not paid when they become due. As a gen'ral rule this interest money is never earned for the fust two years, and the money to pay it with is inva'ably stolen from the principal. All this dishonesty I avoid, suh, by the issue of my Deferred Debenture Bonds."
"How?" I asked, seeing the colonel pause for a reply.
"By cuttin' off the fust fo' coupons. Then everybody knows exactly where they stand. They don't expect anythin' and they never get it."
Fitz gave one of his characteristic roars and asked if the fifth would ever be paid.
"I can't at this moment answer, but we hope it will."
"It is immaterial," said Fitz, wiping his eyes. "This class of purchasers are all speculators, and like excitement. The very uncertainty as to this fifth coupon gives interest to the investment, if not to the investor."
"None of yo' Irish impudence, suh. No, gentlemen, the plan is not only fair, but reasonable. Two years is not a long period of time in which to foster a great enterprise like the C.& W.A.L.R.R., and it is for this purpose that I issue the Deferred Debentures. Deferred--put off; Debenture--owed. What we owe we put off. Simple, easily understood, and honest.
"Now, suh," turning to Fitz, "if after this frank statement any graspin' banker seeks to trammel this enterprise by any fo'closure clauses, he sha'n't have a bond, suh. I'll take them all myself fust."
Fitz agreed to the striking out of all such harassing clauses, and the colonel continued his inspection.
"One mo' and I am done, Fitz. What do you mean by Founders' shares?" "Shares for the promoters and the first subscribers. They cost one tenth of the ordinary shares and draw five times as much dividend. It is quite a popular form of investment. They, of course, are not sold until all the bonds are disposed of."
"How many of these Founders' shares are there?"
"Fifty thousand at ten dollars each."
The colonel paused a moment and communed inwardly with himself.
"Put me down for twenty-five thousand, Fitz. Part cash, and the balance in such po'tion of my estate as will be required