hence our first letter of inquiries. Your replies
confirmed the report and so we cabled for this initial meeting between
us.

"Messrs. Guerney & Barring have been most successful in financiering some
of the largest business interests in the world, and thus they have
achieved a splendid reputation. It was their wish that I should secure
for them your most favorable terms with an option of purchase of your
plant, the same to hold good for two months, or for a sufficient length
of time to allow them to organize a syndicate, and float necessary
debentures to buy the stock, or a controlling interest in your company,
and so continue the business."

"Mr. Searles, we Americans are not anxious to sell, especially to
foreigners, our best paying concerns. We ought to keep them under our own
control. However, of late, I have been inclined to indulge my family in a
little foreign travel, and myself in more leisure for books, and possibly
for politics, believing that not enough of our good citizens enter
Congress. I might, on certain conditions, name a price for all the stock
of the Harrisville Iron & Steel Co."

"Please state the price and the conditions."

"Well, let me think a moment. The capital stock of the company is not now
as large as it should be.

Total Capital Stock $2,000,000
Par value of shares 100
Present Value per Share, 300

"The entire property and good-will of the Company is worth at least
$6,000,000, and my "fixed price," as the English say, is $5,000,000."

Mr. Searles looked puzzled, for he had hoped to get the stock for less
money. He hesitated, as if in deep study, but not long, for he believed
that, if the Harrisville Iron & Steel Co. for ten successive years could
pay $500,000 or an average annual dividend of 25% on its stock of
$2,000,000, the plant re-organized could easily be marketed at a neat
advance, say for L1,400,000 or $7,000,000, in London, where even sound
3% investments are eagerly sought; so Mr. Searles inquired again:
"Colonel Harris, you omitted to state your conditions." Harris answered,
"I must have cash enough to guarantee the sale, and short time payments
for the balance."

"Well, Colonel Harris, how would the following terms please you?

One-eighth cash $625,000
One-eighth 30 days 625,000
One-fourth 60 days 1,250,000
One-fourth 90 days 1,250,000
One-fourth, Preferred Shares,