uld. For
instance, you would pay back your loan at the end of four years,
wouldn't you, Mr. Wright?"

Mr. Wright was hastily sure of it, though he became thoughtful
immediately thereafter.

"So would a large majority of the others," Wallingford went on.
"Honesty is more prevalent than you would imagine, sir. However, all
our losses from this source will be made up by lapsation.
_Lapsation!_"

Mr. Wallingford laid emphatic stress upon this vital principle and
fixed Mr. Wright's mild blue eyes with his own glittering ones.

"A man who drops a payment on his bond gets nothing back--that is a
part of his contract--and the steady investor reaps the benefit, as he
should. Suppose you hold bond number ten; suppose at the time of
maturity, bonds number three, five, six, eight and nine have lapsed,
after having paid in from one-fourth to three-fourths of their money;
that leaves only bonds one, two, four, seven and ten to be paid from
the redemption fund. I don't suppose you understand how large a
percentage of lapsation there is. Let me show you."

From his pocket Mr. Wallingford produced a little red book, showing
how in industrial and fraternal insurance the percentage of lapsation
amounts to a staggering percentage, thus reducing by forfeited
capital the cost of insurance in those organizations.

"So you see, Mr. Wright," concluded Wallingford, snapping shut the
book and putting it in his pocket, "this, in the end, is only a
splendid device for saving money and for using it while you are saving
it."

On this ground, after much persuasion, he sold a bond to the careful
Mr. Wright, and quit work for the day, well satisfied with his two
dollars' commission. At a fifteen-dollar dinner that evening Mr.
Merrill found him a good fellow, and, being interested not only in
Wallingford's "lottery" but in Wallingford himself, gave him the names
of a dozen likely members. Later he even went so far as to see some of
them himself on behalf of the company.

Two days after that Mr. Wallingford called again on his careful
carpenter, and from that gentleman secured a personal recommendation
to a few friends of Mr. Wright's particular kind.

CHAPTER XI

WHEREIN BLACKIE DAW PLAYS A BRIEF CHARACTER
BIT

Andy Grout came into Doc Turner's office in a troubled mood, every
down-drooping line in his acid countenance absolutely vertical.

"We've made a mistake," he squeaked. "This young Wallingford is a
hustler, and he's doi