Porter's vacation was not altogether wasted. As he lounged about and philosophized to the Bostonians on Western business conditions, his restless mind took hold of a new project. It was suggested to him by the inquiries of a Boston banker, who owned a considerable amount of Clarkson Traction bonds and stock which he was anxious to sell. Porter gave a discouraging account of the company, whose history he knew thoroughly. The Traction Company had been organized in the boom days and its stock had been inflated in keeping with the prevailing spirit of the time. It was first equipped with the cable system in deference to the Clarkson hills, but later the company made the introduction of the trolley an excuse for a reorganization of its finances with an even more generous inflation. The panic then descended and wrought a diminution of revenue; the company was unable to make the repairs which constantly became necessary, and the local management fell into the hands of a series of corrupt directorates.

There had been much litigation, and some of the Eastern bondholders had threatened a receivership; but the local stockholders made plausible excuses for the default of interest when approached amicably, and when menaced grew insolent and promised trouble if an attempt were made to deprive them of power. A secretary and a treasurer under one administration had connived to appropriate a large share of the daily cash receipts, and before they left the office they destroyed or concealed the books and records of the company. The effect of this was to create a mystery as to the distribution of the bonds and the stock. When Porter came home from his summer vacation, the newspapers were demanding that steps be taken to declare the Traction franchise forfeit. But the franchise had been renewed lately and had twenty years to run. This extension had been procured by the element in control, and the foreign bondholders, biding their time, were glad to avail themselves of the political skill of the local officers.

Porter had been casually asked by his Boston friend whether there was any local market for the stock or bonds; and he had answered that there was not; that the holders of shares in Clarkson kept what they had because they could no longer sell to one another and that they were only waiting for the larger outside bondholders and shareholders to assert themselves. Porter had ridden down to Boston with his brother banker and when they parted it was with an understanding that the Bostonian was to collect for Porter the Clarkson Traction securities that were held by New England banks, a considerable amount, as Porter knew; and he went home with a well-formed plan of buying the control of the company. Times were improving and he had faith in Clarkson's future; he did not believe in it so noisily as Timothy Margrave did; but he knew the resources of the tributary country, and he had, what all successful business men must have, an alert imagination.

It was not necessary for Porter to disclose the fact of his purchases to the officers of the Traction Company, whom he knew to be corrupt and vicious; the transfer of ownership on the company's books made no difference, as the original stock books had been destroyed,—a fact which had become public property through a legal effort to levy on the holdings of a shareholder in the interest of a creditor. Moreover, if he could help it, Porter never told any one about anything he did. He even had several dummies in whose names he frequently held securities and real estate. One of these was Peckham, a clerk in the office of Fenton, Porter's lawyer.

Wheaton had not long been an officer of the bank before he began to be aware that there was considerable mystery about Porter's outside transactions. Porter occasionally perused with much interest several small memorandum books which he kept carefully locked in his desk. The president often wrote letters with his own hand and copied them himself after bank hours, in a private letter-book. Wheaton was naturally curious as to what these outside interests might be. It had piqued him to find that while he was cashier of the bank he was not consulted in its larger transactions; and that of Porter's personal affairs he knew nothing.

One afternoon shortly after Porter's return from the East, Wheaton, who was waiting for some letters to sign, picked up a bundle of checks from the desk of one of the individual bookkeepers. They were Porter's personal checks which had that day been paid and were now being charged to his private account. Wheaton turned them over mechanically; it was not very long since he had been an individual bookkeeper himself; he had entered innumerable checks bearing Porter's name without giving them a thought. As the slips of paper passed through his fingers, he accounted for them in one way or another and put them back on the desk, face down, as a man always does who has been trained as a bank clerk. The last of them he held and studied. It was a check made payable to Peckham, Fenton's clerk. The amount was $9,999.00,—too large to be accounted for as a payment for services; for Peckham was an elderly failure at the law who ran errands to the courts for Fenton and sometimes took charge of small collection matters for the bank. Wheaton paid the attorney fees for the bank; this check had nothing to do with the bank, he was sure. The check, with its curious combination of figures, puzzled and fascinated him.

A few days later, in the course of business, he asked Porter what disposition he should make of an application for a loan from a country customer. Porter rang for the past correspondence with their client, and threw several letters to Wheaton for his information. Wheaton read them and called the stenographer to dictate the answer which Porter had indicated should be made. He held the client's last letter in his hand, and in concluding turned it over into the wire basket which stood on his desk. As it fell face downwards his eye caught some figures on the back, and he picked it up thinking that they might relate to the letter. The memorandum was in Porter's large uneven hand and read:

The result of the multiplication was identical with the amount of Peckham's check. Again the figures held his attention. Local securities were quoted daily in the newspapers, and he examined the list for that day. There was no quotation of thirty-three on anything; the nearest approach was Clarkson Traction Company at thirty-five. The check which had interested him had been dated three days before, and he looked back to the quotation list for that date. Traction was given at thirty-three. Wheaton was pleased by the discovery; it was a fair assumption that Porter was buying shares of Clarkson Traction; he would hardly be buying foreign securities through Peckham. The stock had advanced two points since it had been purchased, and this, too, was interesting. Clearly, Porter knew what he was about,—he had a reputation for knowing; and if Clarkson Traction was a good thing for the president to pick up quietly, why was it not a good thing for the cashier? He waited a day; Traction went to thirty-six. Then he called after banking hours at the office of a real estate dealer who also dealt in local stocks and bonds on a small scale. He chose this man because he was not a customer of the bank, and had never had any transactions with the bank or with Porter, so far as Wheaton knew. His name was Burton, and he welcomed Wheaton cordially. He was alone in his office, and after an interchange of courtesies, Wheaton came directly to the point of his errand.

"Some friends of mine in the country own a small amount of Traction stock; they've written me to find out what its prospects are. Of course in the bank we know in a general way about it, but I suppose you handle such things and I want to get good advice for my friends."

"Well, the truth is," said Burton, flattered by this appeal, "the bottom was pretty well gone out of it, but it's sprucing up a little just now. If the charter's knocked out it is only worth so much a pound as old paper; but if the right people get hold of it the newspapers will let up, and there's a big thing in it. How much do your friends own?"

"I don't know exactly," said Wheaton, evenly; "I think not a great deal. Who are buying just now? I notice that it has been advancing for several days. Some one seems to be forcing up the price."

"Nobody in particular, that is, nobody that I know of. I asked Billy Barnes, the secretary, the other day what was going on. He must know who the certificates are made out to; but he winked and gave me the laugh. You know Barnes. He don't cough up very easy; and he looks wise when he doesn't know anything."

"No; Barnes has the reputation of being pretty close-mouthed," replied Wheaton.

"If your friends want to sell, bring in the shares and I'll see what I can do with them," said Burton. "The outsiders are sure to act soon. This spurt right now may have nothing back of it. The town's full of gossip about the company and it ought to send the price down. Your friend Porter's a smooth one. He was in once, a long time ago, but he knew when to get out all right." Wheaton laughed with Burton at this tribute to Porter's sagacity, but he laughed discreetly. He did not forget that he was a bank officer and dignity was an essential in the business, as he understood it.

Within a few days two more checks from Porter to Peckham passed through the usual channels of the bank. By the simple feat of dividing the amount of each check by the current quotation on Traction, Wheaton was able to follow Porter's purchases. The price had remained pretty steady. Then suddenly it fell to thirty. He wondered what was happening, but the newspapers, which were continuing their war on the company, readily attributed it to a lack of confidence in the franchise. Wheaton met the broker, apparently by chance, but really by intention, in the club one evening, and remarked casually:

"Traction seems to be off a little?"

"Yes; there's something going on there that I can't make out. I imagine that the fellows that were buying got tired of stimulating the market, and have thrown a few bunches back to keep the outsiders guessing."

"Right now might be a good time to get in," suggested Wheaton.

"I should call it a good buy myself. I guess that franchise is all right. Better pick up a little," he said, tentatively.

"To tell the truth," said Wheaton, choosing his words carefully, "those out of town people I spoke to you about have written me that they'd like a little more, if it can be got at the right figure. You might pick up a hundred shares for me at the current price, if you can."

"How do you want to hold it?"

"Have it made to me," he answered. He had debated whether he should do this, and he had been unable to devise any method of holding the stock without letting his own name appear. Porter would not know; Porter was concealing his own purchases. Wheaton could not see that it made any difference; he was surely entitled to invest his money as he liked, and he raised the sum necessary in this case by the sale of some railroad bonds which he had been holding, and on which he could realize at once by sending them to the bank's correspondent at Chicago. He might have sold them at home; Porter would probably have taken them off his hands; but the president knew that his capital was small, and might have asked how he intended to reinvest the proceeds.

"Of course this is all confidential," said Wheaton.

"Sure," said Burton.

"And when you get it, telephone me and I'll come up and settle," said Wheaton.

A few days later Burton sent for Wheaton to come to his office. One hundred shares had been secured from a ranchman. Wheaton carried the purchase money in currency to Burton's office; he was as shrewd as William Porter, and he did not care to have the clerks in the bank speculating about his checks.

He locked his certificate, when Burton got it for him, in his private box in the vault, and waited the rebound which he firmly expected in the price of the stock. His sole idea was to make a profit by the purchase. He felt perfectly confident that Porter had bought Traction stock with a definite purpose; he still had no idea who were the principal holders of Traction stock or bonds, and he was afraid to make inquiry. A man who was as secretive as Porter probably had confidential sources of information, and it was not safe to tap Porter's wires. His conscience was easy as to the method by which he had gained his knowledge of Porter's purchases; he certainly meant no harm to Porter.