The next time he would try to fight fire with fire.
But for the present, shrewd man that he was, he was prepared to compromise.
Thereafter, dissembling his chagrin as best he could, he kept on the lookout for Cowperwood at both of the clubs of which he was a member; but Cowperwood had avoided them during this period of excitement, and Mahomet would have to go to the mountain.
So one drowsy June afternoon Mr. Schryhart called at Cowperwood’s office. He had on a bright, new, steel-gray suit and a straw hat.
From his pocket, according to the fashion of the time, protruded a neat, blue-bordered silk handkerchief, and his feet were immaculate in new, shining Oxford ties.
“I’m sailing for Europe in a few days, Mr. Cowperwood,” he remarked, genially, “and I thought I’d drop round to see if you and I could reach some agreement in regard to this gas situation.
The officers of the old companies naturally feel that they do not care to have a rival in the field, and I’m sure that you are not interested in carrying on a useless rate war that won’t leave anybody any profit.
I recall that you were willing to compromise on a half-and-half basis with me before, and I was wondering whether you were still of that mind.”
“Sit down, sit down, Mr. Schryhart,” remarked Cowperwood, cheerfully, waving the new-comer to a chair.
“I’m pleased to see you again.
No, I’m no more anxious for a rate war than you are.
As a matter of fact, I hope to avoid it; but, as you see, things have changed somewhat since I saw you.
The gentlemen who have organized and invested their money in this new city gas company are perfectly willing—rather anxious, in fact—to go on and establish a legitimate business.
They feel all the confidence in the world that they can do this, and I agree with them.
A compromise might be effected between the old and the new companies, but not on the basis on which I was willing to settle some time ago.
A new company has been organized since then, stock issued, and a great deal of money expended.” (This was not true.) “That stock will have to figure in any new agreement.
I think a general union of all the companies is desirable, but it will have to be on a basis of one, two, three, or four shares—whatever is decided—at par for all stock involved.”
Mr. Schryhart pulled a long face.
“Don’t you think that’s rather steep?” he said, solemnly.
“Not at all, not at all!” replied Cowperwood.
“You know these new expenditures were not undertaken voluntarily.” (The irony of this did not escape Mr. Schryhart, but he said nothing.)
“I admit all that, but don’t you think, since your shares are worth practically nothing at present, that you ought to be satisfied if they were accepted at par?”
“I can’t see why,” replied Cowperwood.
“Our future prospects are splendid.
There must be an even adjustment here or nothing.
What I want to know is how much treasury stock you would expect to have in the safe for the promotion of this new organization after all the old stockholders have been satisfied?”
“Well, as I thought before, from thirty to forty per cent. of the total issue,” replied Schryhart, still hopeful of a profitable adjustment.
“I should think it could be worked on that basis.”
“And who gets that?”
“Why, the organizer,” said Schryhart, evasively.
“Yourself, perhaps, and myself.”
“And how would you divide it?
Half and half, as before?”
“I should think that would be fair.”
“It isn’t enough,” returned Cowperwood, incisively.
“Since I talked to you last I have been compelled to shoulder obligations and make agreements which I did not anticipate then.
The best I can do now is to accept three-fourths.”
Schryhart straightened up determinedly and offensively.
This was outrageous, he thought, impossible!
The effrontery of it!
“It can never be done, Mr. Cowperwood,” he replied, forcefully.
“You are trying to unload too much worthless stock on the company as it is.
The old companies’ stock is selling right now, as you know, for from one-fifty to two-ten.
Your stock is worth nothing.
If you are to be given two or three for one for that, and three-fourths of the remainder in the treasury, I for one want nothing to do with the deal.
You would be in control of the company, and it will be water-logged, at that.
Talk about getting something for nothing!
The best I would suggest to the stockholders of the old companies would be half and half.
And I may say to you frankly, although you may not believe it, that the old companies will not join in with you in any scheme that gives you control. They are too much incensed.
Feeling is running too high.