"Whatever you're paying now is all right with us," McCoy responded promptly. "And we'll guarantee you a liberal increase in premiums the first year."

The heart of the Guardian's Vice-President swelled in his breast when he antic.i.p.ated O'Connor's chagrin over this development.

"The Spokane's man is in town," Bloom said, as if by an afterthought.

"Put it in the form of a contract, Mr. Gunterson, and I'll notify him to-day that we're holding his supplies subject to his order."

The contract was promptly drawn, signed, and witnessed, each party retaining a copy, and Samuel Gunterson, with the sting of defeat removed by this brilliant achievement, and with his self-esteem and confidence wholly restored, turned blithely toward the South Station on his way to New York.

CHAPTER XV

Contemporary historians point out that in Egypt, more than four thousand years ago, those who bore bad tidings to the reigning monarch were in the habit of meeting death so swiftly that they could scarcely have been incommoded by the circ.u.mstance. In fact, they had all the satisfaction of inevitable demise with none of the discomforts necessarily attendant on lingering annihilation.

Mr. Samuel Gunterson, returning from Boston with the signed contract of Sternberg, Bloom, and McCoy, presently found himself in the position of sensing all the restlessness and unhappiness of an expiring frame with no hope of an early eas.e.m.e.nt by carefree and cheerful decease. For the news of his first important agency appointment was received by William Street in a manner not at all calculated to flatter the man who had made it. Of the numerous opinions expressed or unexpressed, ranging from polite incredulity to unholy joy or open contempt, the only quality which all these opinions held in common was their invidiousness.

The appointment received perhaps its most kindly treatment from those most directly concerned. Mr. Wintermuth did not know anything about Sternberg, Bloom, and McCoy--in fact, he had never heard of them. And so, when Mr. Gunterson, in his most convincing rhetoric; explained the merits of the new agents and the increased income which he felt confident the Guardian would receive, the President gave his a.s.sent, merely expressing his deep regret at concluding his business relations with Silas Osgood.

"But Mr. Osgood is retiring from the firm, anyway," said Mr. Gunterson.

"Indeed? I am glad to hear it," said Mr. Wintermuth.

With which comment the matter came to its discussion's end between them. Nor did the President learn for a long time the real truth regarding his Boston appointees, for with increasing years he had grown increasingly difficult of access and intolerant of ideas conceived on the outside and not in accord with his own. The men who once could have come to him and frankly told him that the Guardian's Boston appointment was a colossal blunder were, like himself, grown insensibly out of the true current of underwriting affairs, while those who knew the truth lacked either the purpose or the opportunity to lay before him the exact state of affairs.

Among those who could not carry out their inclinations was Smith, for he saw very little of Mr. Wintermuth in these early days of the premiership of Gunterson; and he felt, moreover, that the President, knowing his opinion of Mr. Gunterson, would be inclined to discount his criticism on matters connected with the administration of the Vice-President. So Mr. Wintermuth lived in ignorance until the results began to show on the surface--which was not a far day.

From William Street, however, the busy and irreverent Street, soon came the slings and arrows which pierced even Mr. Gunterson's almost impregnable self-esteem. Only a few days after his return he overheard a conversation between Mr. Cuyler and a placer, in the Guardian's own office, which showed how the Street regarded the Boston appointment.

"Sorry, but I can't take that, Eddy; we don't write the shoe polish manufacturers at all--there's too much naphtha used, and they all burn eventually," were the words that caught his attention, and in the shadow of the door he waited for the reply.

"Ah, come off, now--loosen up! I know the Guardian does write the cla.s.s, for this same concern's got a factory in Boston and I got a Guardian policy on it only yesterday. That's why I'm giving you this.

Your Boston agents, Sternberg, Bloom, and McCoy, place the Boston end for us. What's the matter--don't your agents have any prohibited list, or do you let them do things you can't do in your own office?"

"Eddy," said Mr. Cuyler, sternly, "you're talking nonsense. I tell you we don't write the cla.s.s in my department, and I don't believe the agency department does. The Boston firm you mention has just been appointed, and probably they don't know our underwriting policy yet."

He handed back the binder.

The placer, realizing that the decision was final, and irritated at the declination of a risk which he had found impossible to place elsewhere, laughed loudly.

"Don't know your underwriting policy, hey? Well, they don't need to--they've got an underwriting policy of their own. Do you know what it is? It's to take a line on anything that's not actually on fire.

They're the slop bucket of Boston, the standard lemon of Kilby Street; they've got a loss ratio of three thousand per cent, and they've burnt the hide off every company that's ever touched them. You make me tired. You're a fine, consistent bunch, you are--to pose as a conservative company in New York and write every skate in Boston through Sternberg, Bloom, and McCoy! All right--good-by."

And in his exit his coat sleeve almost brushed against the man in the hall who in his haste and folly had appointed Sternberg, Bloom, and McCoy to represent the Guardian in the good city of Boston.

This was but the beginning. After this overture the stings and slurs came thick and fast. It seemed to the dismayed Vice-President that every one in New York took delight in recalling to publicity some detail discreditable to his Bostonian discovery. From all over the East he began to receive applications for agencies from men whom even he knew to be unworthy of trust; and he realized that he had encouraged their approach like vultures on the unhappy Guardian. Within a fortnight of making the Boston appointment he had seriously considered revoking it; but this would have necessitated the admission of his initial error, and he lacked the courage to carry out his better judgment. So, with a shrug of his mental shoulders and a cynical reflection that good luck might perhaps avert the results of his imprudence, he let the matter stand.

But good luck failed to materialize, and it was not long before the expected began to happen. Sternberg, Bloom, and McCoy's business appeared outwardly pa.s.sable, but curiously enough it almost always seemed--after the loss--that the risk was one on which the company should never have been committed. And there were two unpleasant incidents where the Guardian was "caught on a binder"--where the loss occurred before the agents could issue the policy or report the acceptance of the risk to the New York office; and though Smith investigated these, and in each case was obliged to hold the agents blameless, the experience left an unfortunate impression. However, Sternberg, Bloom, and McCoy undoubtedly controlled an unusually large volume of business. If losses were heavy, so were premiums, and the relatively small losses which naturally attend a growing business where no policy has been in force more than a month or two, postponed, for a time at least, the worst of the evil days. But long before they came the heavens had grown dark with trouble in numerous other quarters.

The general ruling of the Conference, providing that, except under almost impossible qualifications and with reduced compensation, no agent could continue to represent both Conference and non-Conference companies, was now in effect. And it seemed as though never before had there been such precision and unanimity in Conference methods; and Smith, gloomily regarding the grim spectacle of the Guardian's decline, could only curse under his breath the act of O'Connor that had brought about this state of affairs.

Certainly there was no hesitancy about the Conference campaign, and the results became at once apparent in the non-Conference offices. Hardly a day pa.s.sed which failed to bring to the Guardian the resignation of one or more of its agents, with none to take their places except the vultures, many of whom Mr. Gunterson remembered to have a.s.sisted in accelerating the downfall of some of the other underwriting inst.i.tutions with which he had been connected. With a chill of dismay he read of what a splendid opening awaited the Guardian in the general agency of Henry Trafalgar and Company of Memphis, or Bates and Newsome of Atlanta.

From the Guardian's own agents the letters of resignation were very much alike, for the company was popular in a modest way, and most of the writers had represented it for many years.

"We are notified by the committee in charge of this district," they wrote, "that in order to secure the customary graded commission scale we must resign our non-Conference companies. We are extremely sorry to let the Guardian go, but the difference to us financially is such that we would not feel justified in declining the Conference offer."

And so, one after one, they went. Many an agent wrote bitterly attacking the Conference procedure and asking whether the Guardian could not arrange to take care of his entire business, and stating that if this could be done he would retain the Guardian and let the others go. This, however, in nearly every case was out of the question, and eventually all these agencies went with their fellows. During the first month of the new year almost one hundred agents, some of them among the most satisfactory and profitable of the Guardian's plant, had been compelled to resign. The income from these agencies reached to the neighborhood of one hundred thousand dollars annually, and Mr.

Wintermuth began to take decided notice of his strategic position.

Of course, whenever an agency was lost, there was the possibility of replacing the company in some non-Conference office; but this was not so easy a matter. The non-Conference agents were princ.i.p.ally lower grade, cut-rate concerns, and not of the standard either professionally or financially to which the Guardian was accustomed. The company's field men, continually confronted by the discouraging task of finding in a town a satisfactory agent, when none existed save in Conference offices, became disheartened. Their letters to the home office indicated their demoralization and Mr. Gunterson could not think how to direct their campaigns for them.

At this juncture the hand on the reins needed to be both delicate and firm, and the hand of Mr. Gunterson, while it may have had its moments of inflexibility, was never delicate. And it was firm with less and less frequency as the days went by. Never any too well convinced, at the bottom of his heart, of the soundness of any course he elected to pursue, the apparent necessity of sitting helplessly in his office and watching his agency plant disintegrate before his eyes robbed him of much of the a.s.surance that had always been one of his predominant factors. Outwardly his manner remained as impressive as ever, but it was retained with an ever increasing difficulty.

In this dark hour his only sustaining reflection was that this rule, which was working such havoc among the Guardian's smaller agencies, did not apply to the larger cities whence came a large proportion of the company's premium income. Boston, of course, with a local rule even more radical than that of the field generally, had gone the way of the small towns; but in New York separation was out of the question since most of the important companies maintained their own local departments, dispensing with agents altogether; in Philadelphia the local underwriters had never been able to agree among themselves on any drastic measures and there seemed no likelihood of a change; while in Buffalo, Pittsburgh, and Baltimore soothingly sepulchral silence and calm reigned.

As the month of January gave place to the briefest of his brothers, a temporary lull in hostilities appeared to have arrived. Mr. Gunterson, drawing a long breath, was wondering if it could be possible that the worst of the tempest had pa.s.sed, when eruptions from three craters burst forth almost simultaneously, and by the light of their flames it was seen that all which had gone before was of minor moment compared to that which was now to come.

It was about the third week in February that a Conference war was declared in Philadelphia, Buffalo, and Baltimore. In the ears of Mr.

Gunterson the triple detonation rang terribly, like the very voice of doom, and it was with the desperation of hopelessness that he addressed himself to the solution of this new problem.

He no longer trusted himself as direct mediator; his Boston experience had cured him of all personal meddlesomeness; it was much more dignified to remain quietly in New York directing the efforts of his subordinates and criticizing them when they failed to accomplish the impossible. He did not care to expose himself to another Sternberg, Bloom, and McCoy triumvirate. So he sat in his office, dictating letters and giving endless pieces of impracticable advice to special agents who inwardly cursed; and to Mr. Wintermuth he bore weirdly distorted versions of situations and crises beyond any power of his to unravel or even to explain.

Even on matters of fact he was pleasingly vague.

"How many agencies have we lost?" the President demanded on one occasion.

"Really, I could hardly say exactly," Mr. Gunterson responded. "You see, some that haven't actually resigned have stopped sending us business--to any extent. But," he added, "we can more than make up such losses in income when our new appointments show the full results of their business."

"How long do you calculate that's going to take?" abruptly inquired the usually courteous Mr. Wintermuth.

Mr. Gunterson did not know, but he was decidedly of the opinion that it could not be very long before the tide was stemmed.

But as the days went by the tide continued to run in the same direction. Baltimore, threatening dire things, hung trembling in the balance; Buffalo had already gone over to the enemy; Philadelphia was as yet hesitating before the final irrevocable leap. So February wore away, and March entered.

James Wintermuth was more disturbed than he had been at any time covered by what was now a good and had once been a miraculous memory.

His company had so long been his pride, his reliance, his solace, and almost his gospel that he had grown to think of it as a sort of fixed star, whose light perhaps might be exceeded by some larger and more pretentious luminary, but which would nevertheless shine steadily on, beyond the fear of any cosmic upheaval.

Now he beheld it not only overclouded, but even menaced--beheld its light in danger of being dimmed if not utterly extinguished. It was absurd, it was tragic, it was unbelievable--yet it was so. And when he was confronted with the fact, there crept back into the old gentleman's heart something of his old fire, as well as a slow, brooding sense of angry injury against the men or forces responsible for his present difficulties. His elder resentment was of course against O'Connor, who was taking advantage in every way of the Guardian's misfortunes; but as the palpably weakening hold of the company brought him more closely in touch with its underwriting affairs, as the questionable losses from Boston and other similar agencies began to arrive in faster and faster succession, and he clearly perceived the weakness and incapability of Gunterson's management, his irritation rightly directed itself more and more against the luckless Vice-President.

One other thing of recent occurrence had shaken--perhaps out of proportion to its consequences--what little confidence he still felt in the judgment of his underwriting manager. That related to the attempt of Mr. Gunterson to inject his advice into the Guardian's affairs financial. Early in February he had suggested to Mr. Wintermuth the advisability of purchasing for the Guardian some bonds of an embryonic steel company then erecting a plant in Alabama. Mr. Gunterson knew personally some of the people back of this, the bonds seemed remarkably cheap, and the bonus in common stock made the proposition in his opinion decidedly attractive. Mr. Wintermuth's investigation of the concern and its prospectus had quickly convinced him that its officers were of far more capability in the industry of disposing of what, by a polite extension of the term, might be called securities than in manufacturing steel, and a skeptical investing public evidently reached the same conclusion, for within a month after Mr. Gunterson's friendly suggestion, the Birmingham Bessemer Steel Corporation was in the hands of a receiver, who, after some hesitation, issued a statement to the effect that the bondholders might eventually realize fifteen cents on every dollar they had paid in.

On the second day of March an unusual thing happened. Mr. Cuyler entered the elevator and mounted to the top floor of the Guardian building, crossing the floor toward Mr. Wintermuth's office.

"h.e.l.lo! What are you doing up here?" Smith inquired, knowing the stars must be strangely out of their courses to attract Mr. Cuyler to this unaccustomed alt.i.tude. A true local department man is always uncomfortable, never at home, above the grade floor. "Has the Sub-Treasury or the Aquarium made a total loss, or what's the matter?"

he cheerfully proceeded.

"No," said Cuyler, sourly. And without further answer he pa.s.sed on into the President's room.

"Good-afternoon, Mr. Cuyler," said the President, amiably, but the local secretary with a glum face stopped him.