THE FIRST MOVE

The Chicago and London Packing Company—Bidding for bonds—A man named Lokes—A consideration for services performed—Bribery—A sheriff's sale—We take the trick—The tail of a snake—Not a gospel game

Slocum had been after the bondholders' protective committee of the London and Chicago Company. There were only a million and a half of bonds out, which, before their smash, could be picked up for less than twenty. Lately, on the rumor that one of the strong Chicago houses was bidding for them, their price had risen somewhat. The hand of Carmichael working through one of the smaller corporations controlled by Strauss was plain enough to one who watched, and I resolved as the first step in my campaign to outwit my old boss in this little deal. From the price of the bonds it was evident that Carmichael was offering the bondholders about twenty-five for the control. I told Slocum to give forty and then arrange to bid the property in at the sheriff's sale.

The lawyer reported that two of the bondholders' committee were favorable to our terms: they hated the Strauss crowd, and they were afraid to wait for better terms, as money was hardening all the time. But the third man, who had been the treasurer of the defunct corporation, held out for a higher figure. Slocum thought that this man, whose name was Lokes, might be dickering with Carmichael secretly to secure some favors for himself in the deal. This Lokes was not unknown to me, and I considered Slocum's suspicions well founded. He had left behind him in Kansas City a bad name, and here in Chicago he ran with a set of small politicians, serving as a middleman between them and the financial powers who used them. In short, I knew of but one way to deal with a gentleman like Mr. Lokes, and I had made up my mind to use that way.

Slocum made an appointment with Lokes in his office, and I went there to meet him and arrange to get the London and Chicago outfit with as little delay as possible. Lokes was a small, smooth-shaven fellow, very well dressed, with something the air of a horsy gentleman. First he gave us a lot of talk about the value of the London and Chicago properties, and the duty of his committee to the bondholders. He and his associates had no mind to let the property go for a song. I made up my mind just what inducement would reach him, while he and Slocum argued about the price of the bonds. When Lokes began to throw out Carmichael at us, I broke in:—

"Mr. Lokes, you know there isn't much in this deal for that crowd. But I don't mind telling you frankly that it is of prime importance to the interests we represent."

Slocum looked up at me, mystified, but I went on:—

"We propose to form a large packing company, into which we shall take a number of concerns on which we have options. We want this property first. When our company is formed we might make it very well worth your while having been friendly to us in this transaction."

Lokes didn't move a muscle: this was the talk he had been waiting for, but he wanted to hear the figures. I told him enough of our plans to let him see that we had good backing and to whet his appetite.

"Now we have offered your committee forty cents on the dollar for your bonds, which is fifteen more than the other crowd will give you. If you will induce your associates to take bonds in our corporation, we will give you fifty, instead of forty—and," I concluded slowly, "there will be fifty thousand dollars of preferred stock for your services."

At the word "services" Slocum jumped up from the table where he had been seated and walked over to the window, then came back to the table, and tried to attract my attention. But I kept my eyes on Lokes.

"What will you do for the others?" Lokes asked significantly, meaning his two associates on the committee.

"Nothing!" I said shortly. "You will look after them. They will do what you say. That is what we pay for."

It was plain enough that I was offering him a good-sized bribe for his services in turning over to us the assets of the London and Chicago concern rather than to our rivals, and for bonds in the prospective company instead of cash. That did not trouble him: he was aware that he had not been asked to meet me to talk of the health of the bankrupt company of which he had been the treasurer. Lokes thought awhile, asked some more questions about our company, and finally hinted at his preference for cash for his services.

"Either forty cash with no bonus for your services, or fifty in bonds with the preferred stock for you," I answered shortly.

Pretty soon he took his hat and said he was going to see his associates on the committee, and would be back in the course of the afternoon.

"He's gone over to Carmichael," I remarked to Slocum, when he had closed the office door behind Mr. Lokes. "But John won't touch him—he won't believe his story. He doesn't think I've got the cash or the nerve to play this game. We'll see him back in an hour or two."

"Do you know, Van, what you are doing?" Slocum asked sombrely, instead of replying to my remark. "You have bribed that man to betray his trust."

"I guess that was what he came here for, Sloco. But we are offering them a good price for their goods. This man Lokes happens to be a rascal. If he had been straight, we could have saved that preferred stock. That's all there is to it."

But Slocum still shook his head.

"It's a bad business."

"Well, it costs money. But I mean to put this thing through, and you know at the best I may lose every cent I have made in twelve years. It's no time to be squeamish, Slocum."

"I wish—" he began, and paused.

"You wish, if there is any more of this kind of thing, I would get some one else to do my business? But I can't! I must have a man I can rely upon."

It meant a good reward for him, too, if we carried through my great plan. But Slocum was not the one to be reached in that way. He needed the money, and wanted it badly, but money alone wouldn't make him stick by me. I knew that.

"We'll hope this is the last," I said, after a time. "And, besides, I take the risk. I want you, and you won't go back on me. I need you, Slo!"

He made no reply.

Sure enough, late that afternoon Slocum telephoned me that Lokes had come back and signified his consent and that of his associates to our terms. The bondholders would take notes, to be converted later into bonds of the new company at fifty cents on the dollar. Lokes asked for some kind of agreement about the stock he was to get for his "services," which I refused to give him, on Slocum's advice. He had to content himself with Slocum's statement that he was dealing with gentlemen.

That comedy took place on the court-house steps according to law.