X

Covington returned to New York several days before the Gorhams left Washington. To the casual observer, who might meet him even daily, no change would have been apparent in the smoothly working accurate human machine which found its exercise through his personality. His face never showed an emotion other than that which he wished to have seen there; the mouth, that most treacherous feature, was protected by his heavy mustache, which in turn merged its ident.i.ty in the dark Vand.y.k.e beard, into which all expression retreated at the command of its owner; his gray eyes, cold in the metallic steelness of their shade, penetrated the object upon which they fixed themselves, reading the characteristics of others, but yielding nothing in return. His forehead was high, accentuated by the thinness of his face, but suggestive of strong mental capacity; and the straightness of his nose evidenced the strength of will which had done much to give him his present reputation as a business man.

But behind this impa.s.sive exterior much was happening. It was not so great a change as it was an expansion of something which had always existed. Covington had made his mark before Gorham discovered him. The older man's attention had been attracted to him by the chain he had developed of over six hundred separate retail stores, all dealing in the same commodities and each one an individual business success. Gorham watched him post his sentries at different street corners in the city he was testing to determine the density of the traffic, finally selecting the location where the crowd pa.s.sed most steadily all day.

"I am never fooled by the noon-hour crowd," Covington confided to him; "they spend all their time eating lunch. I always keep away from streets where there are banks--after three o'clock in the afternoon you'll find as much retail business in the morgue."

Gorham saw him rent whole buildings in order to get the particular corner store he wanted, and then organize a real-estate business to handle the rental of stores and offices which he could not use. He saw him arrange his show-cases and goods in such a manner that customers easily found what they wanted, were served promptly, and departed satisfied, to return again. He studied Covington's system of turning over each new store to a chief clerk to be operated on a percentage, thus giving him all the dignity of a proprietor and stimulating him to his maximum activity. Promotions were accomplished by transferring the clerks from smaller to larger stores, which automatically raised their salaries by the increased volume of business on which to draw their percentage. Gorham listened to the instructions Covington gave them in governing their relations with customers--original, forceful, and sane--and then he witnessed in various stores the practical demonstration and the results. This same genius, he reasoned naturally, applied to a similar chain of large concerns, would enable Covington to exercise his ability almost to an unlimited extent, and Gorham succeeded in convincing him that it was worth while for him to join in the development of the Consolidated Companies, turning over the retail amalgamation to his chief subordinate. One by one the master mind brought the varied corporations into line; one by one, with equal though different skill, Covington completed the work which his chief had begun.

Between them they succeeded in filling the positions made necessary by the growth of the Companies with efficient and enthusiastic subordinates, so that each time the chain was let out to admit another link the welding was accomplished without weakening the strength of the whole.

Covington had never from the first sympathized with Gorham's altruistic policies except as a means to an end, nor did he for a moment imagine that Gorham himself had adopted them for any other reason than their intrinsic business value. The whole scheme of the Consolidated Companies, when first unfolded before him, appealed to his appreciation of business cleverness, and he instinctively recognized Gorham as his master. During the few years they had been a.s.sociated in the same corporation, Covington had seen his chief's genius demonstrated in organization and administration as well as in conception, and he had not been slow to take advantage of the lessons he was given such ample opportunity to learn. He had expected this demonstration, but, with a consummate confidence in his own ability to a.s.similate, he had also counted on gradually lessening the gap between Gorham and himself. Here it was that he had made a mistake, for during this same period the development of the older man had been far greater than his own.

Covington to-day was, perhaps, as able a business man as Gorham had been when the Consolidated Companies was born, but Gorham in the mean time, by sheer display of extraordinary genius, had become an international figure. The business relations between the two men were closer than ever, but never once was there any question as to which was the master.

Covington would not have been Covington had he not resented this; Covington would not have been Covington had he not succeeded in concealing this resentment from all the world.

With the knowledge that he could not hope to share with Gorham upon equal terms in the control of the Consolidated Companies, there came to him a realization of the necessity of strengthening himself on every possible side in order to be prepared to take advantage of the first opportunity, whatever that might be or whenever it might come, to alter the present relations. His marriage to Alice would be a step of prime importance, but this alone was not enough. As Gorham's son-in-law he would still be his subordinate, and Covington's nature demanded an opportunity to stand at least on a basis of equality with his present chief, sharing with him the arrogance of the prerogatives and the absolute autocracy now a.s.sumed alone by Gorham in dominating the policy of the business.

In Covington's opinion, Gorham was carrying the principles upon which the Consolidated Companies was based beyond all reason. The corporation had pa.s.sed the experimental stage, and now possessed ample strength to take advantage with safety of its unique position. Gorham was right, he admitted, in his idea that public necessities ought to be reduced in price when once controlled by the Companies. The public approval and general confidence which this established were of distinct value, but there was absolutely no reason for continuing to give the public so large a share of the saving. It was not so much the amount that was saved as the fact that a saving was actually accomplished which served to advertise the Consolidated Companies. Gorham's real motive could be only to strengthen his personal prestige. Several of the other directors shared this conviction with Covington, and he made it his business to discover just where each one stood against the time when this information should serve him in good stead.

The executive offices of the Consolidated Companies occupied an entire floor in one of the most s.p.a.cious buildings on Broadway, yet to a casual visitor they gave little indication of the vast power which centred there. The rooms were substantially furnished, but everything evidenced a restraint equal almost to the conservatism which is so distinguishing a mark of the old-established English houses. This was an expression of Robert Gorham's individuality, and the Companies itself reflected it in its modest exterior appearance as in all other features, emphasizing the one influence which held together and amalgamated into a composite unit the many factors which necessarily formed the integral parts.

Gorham's ideas of business management were scientific, and his first step, after absorbing a new concern, was to have the principles of science introduced. He insisted that the workman should be supplemented by close co-operation on the part of the management in laying out his work for him in advance; by showing him how to eliminate unnecessary motions; by teaching him to make every portion of his work, however simple, a scientific performance; by studying his own individuality to the extent of a.s.sisting him to correct methods which militated equally against his own highest efficiency and the obtaining of the highest efficiency of the machine he operated; by bringing him to a realization that traditional knowledge of his specialty was a lower grade of skill than that knowledge gained by modern scientific study.

On the other hand, he undertook to correct faults of administration as well as inefficient methods of execution, demonstrating to each manager the cash value to the Consolidated Companies of this close co-operation with his workmen. It was shown that greater product was to be obtained from workmen who performed their tasks under conditions which tended to make them happy and contented, which gave them opportunities to advance themselves to points marked only by their personal limitations; where they could maintain their self-respect and with his help increase it, in that they could hope to become the most skilful operatives in their particular specialties, and to earn higher wages than any employer could afford to pay under other conditions. With every machine, human or mechanical, running each day at its maximum degree of productivity, Gorham knew that the corporation could well afford to share its largely increased income with those who had co-operated to secure it; and the workmen could not begrudge their employer the augmented profits, since they not only had received their share, but because they knew that the increase was the result of the efforts of the management quite as much as their own.

Throughout the offices themselves was to be found every equipment which modern ingenuity had devised for shortening the processes of daily routine, and of eliminating or reducing to a minimum the details which so clog the wheels of any large enterprise unless properly systematized.

Every man exactly fitted the position in which he was placed, and the machine moved forward with an accuracy and a force which was irresistible. The same casual visitor would have noticed this had he been at all observant, and could not have failed to admire the precision which marked every business incident, however trivial.

Shortly after Covington's return to New York the Companies' offices were honored by a visit from Mr. Andrew Harris. The caller asked that his card be taken to Mr. Covington, and as it bore a pencilled memorandum that his business was important and confidential, he was ushered into the private office of the acting head of the Companies. Mr. Harris seemed deeply interested in studying the appearance of the man he had come to see--so much interest, in fact, that Covington resented his scrutiny and inquired the nature of his business.

"Excuse me," Harris said, quickly; "I came to talk over the proposed merger of the New York street railways."

"Then you doubtless wish to see Mr. Gorham," Covington replied. "That is a matter which is wholly in his hands. He is at present in Washington, but will be here within a week."

"Are you not at least partially familiar with the details?" Harris inquired, apparently unmoved by the news of Mr. Gorham's absence.

"I could scarcely say that I am unfamiliar with them," Covington admitted; "but the idea of the merger was Mr. Gorham's, and he is naturally in closer touch."

"Do you object to talking things over with me a little?" Harris asked.

"There may be some points that I know more about than Mr. Gorham."

Covington nodded acquiescence, though somewhat in the dark as to the object his visitor had in mind.

"In the first place," Harris began, adjusting himself in his chair, "let me say that I am a director in the New York Street Railways Company, which is the largest of the present organizations which are eventually to be consolidated into the Manhattan Traction Company. The franchise, as you doubtless know, has already been put through the Board of Aldermen, and the only question now remaining is whether it is to be turned over to certain gentlemen in New York who originally planned to complete the deal, or to the Consolidated Companies."

"Mr. Gorham has, I believe, advanced to those interested very logical arguments to show that the Consolidated Companies could engineer the amalgamation to the distinct advantage of the various roads," Covington suggested, as his visitor paused for a moment.

"He has," Harris admitted. "There is no doubt in anybody's mind that what he says is right; the roads and the stockholders would be distinctly benefited--but how about the directors? That is the question I came here to have answered."

"It is a question which Mr. Gorham must answer."

Harris subjected him to another careful scrutiny. "Perhaps so," he said, at length, "but I should like to get your opinion on the matter. You are one of the directors, I understand."

"I had an idea that Mr. Gorham had already answered that question to Mr. Brady, and that there was enough in the deal to satisfy every one."

"There is enough for every one," a.s.sented Harris, with decision; "the only question is how it is to be divided. We all supposed that we were to become stockholders in the Consolidated Companies, in which case we should have gained something at both ends; but Gorham evidently changed his mind about that, which leaves us nothing but the original rake-off."

There was something in Harris's manner which annoyed Covington, yet he did not suggest cutting short the interview.

"Who are the parties involved?" he asked, more to say something than because of any real interest.

"Well"--Harris became reflective--"there's Collins, who put the deal through the Aldermen; he can't expect any more than we've already agreed to give him. It cost him a pretty penny, but he'll double his investment--we can leave him out. Then there's Brady at Tammany Hall; nothing can be done without him. Gorham's idea seems to be to pay him his price on this job, take a receipt, and cut loose from him; but if Brady was a stockholder in the Consolidated Companies he would prove a mighty useful one. Then there are two other directors in the New York Street Railways Company who feel as I do--that we ought to see something more coming to us out of this deal than just the profit on our stock."

"Is the opportunity to become stockholders in our corporation the 'something more' you have in mind?"

"Yes," Harris a.s.sented; "but it doesn't end just there. We have a little scheme of our own in connection with this transaction which is worth money, and we could put it through easier if we were on the inside.

More than this, it would save the Consolidated Companies something in the long run."

"You have secured an option on some link in the chain and you're going to hold up whoever tries to put the deal through until you get your price," Covington stated, flatly.

"We have options on three links," Harris replied, frankly, showing no surprise at the accuracy of the other's intuition.

"Can you make more out of it if we get the franchise?"

"Naturally, since the Consolidated Companies will have unlimited capital. If we were stockholders in the Companies, we could afford to make the terms easier, because there would be less trouble and expense in putting it through."

"Does Mr. Gorham know all this ?"

Harris laughed. "Well--hardly. I haven't met Gorham, but from what Brady tells me this isn't in his line."

"Then why do you give me the information? Frankly, I don't think it will help you with Mr. Gorham."

"He isn't going to know anything about it."

Covington smiled at the a.s.surance Harris displayed. "I have not committed myself to protect you," he said.

"Quite right, quite right," a.s.sented Harris; "but I'll take my chances.

Now I'm going to tell you the rest of it. As I said, Collins got the franchise from the Board of Aldermen. Brady is a director in the New York Street Railways Company, so he keeps Tammany all straight for us.

Our company, being the largest, was to be used as the basis of the consolidation, and the original small roads were to turn themselves over to us for nine hundred and ninety-nine years, we to a.s.sume their bonded indebtedness, and, besides this, agreeing to pay from eight to eighteen per cent. dividends on their stock issues. After these payments our company was to keep the surplus earnings."

"And these surplus earnings would be enough to make it worth while?"

Harris laughed. "Sure," he replied; "the bond total of the smaller companies is about one hundred million dollars and the stock total only four million dollars. What's eight or even eighteen per cent. on four million dollars! In fact, the weak point is that even with the watering we intended to give the stock after we got it, the profits would still be so big that the public would notice."

"There should be no difficulty in fixing that," remarked Covington, sagely, amused by the frank confidence extended to him in spite of his warning.