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.

For instance, it was his intention, if necessary, to acquaint Stane and Johnson with this equipment company plan, and if they were truly harmonious, to show them how, in case he, or he and they jointly, should come into possession of the Metropolitan and the District, their earliest and surest profits would come from this business of construction and equipment. Furthermore, he intended to emphasize that with the building and equipment of each additional extension of this general system, the profits from this equipment and construction company would go on and on, constituting a lever which, from experience, he knew to be immense.

Cowperwood’s bearing before Johnson in this friendly conference was that of one who had nothing whatever to conceal. At the same time, he was thinking it would not be easy to outwit such a man. In fact, he was the sort of person who might be a good replacement for Sippens, if it were ever possible to arrange it. In consequence, after sounding out Johnson as to his various potentialities and finding him receptive, though reserved, he asked him whether he would be willing to act as chief counsel and fiscal agent in connection with the very necessary series of overtures which would precede the uniting of all of the lines and rights necessary for a complete London tube system. As he now assured Johnson, his purchase of the Charing Cross line was not really significant or important save as it could be used as an entering wedge for other lines.

“The truth is, Mr. Johnson, ” he went on, in his most effective manner, “some time before coming here I had this entire situation investigated. And I know as well as you do that this central loop system is the key to the entire business. I also know that you and Lord Stane are among the largest minority stockholders of the District. Now I want to know if there is not some way through you that I can effect a combination with the Metropolitan and the District as well as the other lines.”

“It’s not going to be easy, ” said Johnson, solemnly. “We are confronted by tradition, and England stands by her own. However, if I understand you, you are aiming to bring about a combination between yourself and these lines, particularly the loop system, with yourself in charge, of course.”

“Precisely, ” said Cowperwood, “and I can make it worth your while, I assure you.”

“You do not need to tell me that, ” said Johnson. “But I shall have to take some time to think about this, Mr. Cowperwood, do a little underground work of my own. And when I have thought it all out, we can go over the whole matter again.”

“Of course, ” said Cowperwood. “I understand that. Besides, I want to leave London for a little while. Suppose you call me within the next ten or twelve days.”

They then shook hands warmly, Johnson thrilled by a dream of activity and possession. It was a little late for him to be triumphing in this field, to which his entire life had been devoted. Yet it now seemed possible.

As for Cowperwood, he was left to meditate upon the practical financial course which he must pursue. In the last analysis, the open sesame to the solution of this problem was simple: to offer enough in pounds sterling. Dangle enough cash before the eyes of the quarreling investors, and, whatever their objections, it was more than likely that they would take the cash and let the quarrel go. Supposing he did have to pay these recalcitrant directors and investors two or three or four pounds for every pound they now controlled? The profit that would flow from his construction corporation plan and the growth of traffic itself in a great and growing city like London would actually cover not only the extraordinary price which he was now prepared to offer, but eventually would yield more in interest than these people had the wit to envision. The thing to do was to secure control, and then later unite these lines, at whatever seemingly fabulous cost. Time, and the current financial growth of the world, would take care of it all.

Of course, since he did not wish to reach down into his own hoardings for the preliminary cost of all this, he would probably have to return to the United States in the near future, and, by cannily outlining the possibilities of the situation, secure from certain banks, trust companies, and individual financiers with whose methods and cupidity he was thoroughly acquainted, subscriptions to an underlying holding company. And this in turn would take over these London properties and then later prorate these acquired holdings to the various subscribers on a basis of two or three dollars for every dollar invested.

But the thing to do now was to refresh himself by a vacation with Berenice. When that was over, he would consult with Johnson and arrange for a meeting with Lord Stane, for upon the attitude of these two, much depended.