Get-Rich-Quick Wallingford

"Well, yes, sir," admitted Mr. Christopher.

"Very well, then; I am the only client you know in this case, and I say – get a patent! After all, a patent isn't worth as much as a dollar at the Waldorf, except to form the basis of a lawsuit," whereat Mr. Christopher saw a great white light and his conscience ceased to bother him.

Meanwhile the majestic wheels of state revolved, and at the second meeting of the board of directors the secretary was able to lay before them the august permission of the Commonwealth to issue one hundred thousand dollars of stock in the new corporation. In fact, the secretary was able to show them a book of especially printed stock certificates, and a corporate seal had been made. Their own seal! Each man tried it with awe and pride. This also was a cheerful board meeting, wherein the directors, as one man, knowing beforehand what they were to do, voted to Mr. Wallingford and Mr. Lamb sixty thousand dollars in stock, for all patents relating to covered carpet tacks or devices for making the same that should be obtained by them for a period of five years to come. The three remaining members of the board of directors and the one stockholder who was allowed to be present by courtesy then took up five thousand dollars' worth of stock each and guaranteed to bring in, by the end of the week, four more like subscriptions, two of which they secured; and, thirty thousand dollars of cash having been put into the treasury, a special stockholders' meeting was immediately called. When this met it was agreed that they should incorporate another company under the name of the Universal Covered Tack Company, dropping the word "Carpet," with an authorized capital of three hundred thousand dollars, two hundred thousand of which was already subscribed.

It took but a little over a month to organize this new company, which bought out the old company for the consideration of two hundred thousand dollars, payable in stock of the new company. With great glee the new stockholders bought from themselves, as old stockholders, the old company at this valuation, each man receiving two shares of one hundred dollars face value for each one hundred dollars' worth of stock that he had held before. It was their very first transaction in water, and the delight that it gave them one and all knew no bounds; they had doubled their money in one day! But their elation was not half the elation of J. Rufus Wallingford, for in his possession he had ninety thousand dollars' worth, par value, of stock, the legitimacy of which no one could question, and the market price of which could be to himself whatever his glib tongue had the opportunity to make it. In addition to the nine hundred shares of stock, he had a ten-thousand-dollar house, a five-thousand-dollar automobile and unlimited credit; and this was the man who had landed in the city but two brief months before, with no credit in any known spot upon the globe, and with less than one hundred dollars in his pocket!

It is a singular commentary upon the honesty of American business methods that so much is done on pure faith. The standing of J. Rufus Wallingford was established beyond question. Aside from the perfunctory inquiries that Edward Lamb had made, no one ever took the trouble to question into the promoter's past record. So far as local merchants were concerned, these did not care; for did not J. Rufus own a finely appointed new house in Gildendale, and did he not appear before them daily in a fine new automobile? This, added to the fact that he established credit with one merchant and referred the next one to him, referred the third to the second, and the fourth to the third, was ample. If merchant number four took the trouble to inquire of merchant number three, he was told: "Yes, we have Mr. Wallingford on our books, and consider him good." Consequently, Mrs. Wallingford was able to go to any establishment, in her own little runabout that J. Rufus got her presently, and order what she would; and she took ample advantage of the opportunity. She, like J. Rufus, was one of those rare beings of earth for whom earth's most prized treasures are delved, and wrought, and woven, and sewed; for transcendent beauty demands ever more beauty for its adornment. In all the city there was nothing too good for either of them, and they got it without money and without price. The provider of all this made no move toward paying even a retainer upon his automobile, for instance; but, when the subtle intuition within him warned that the dealer would presently make a demand, he calmly went in and selected the neat little runabout for his wife, and had it added to his bill. After he had seen the runabout glide away, the dealer was a little aghast at himself. He had firmly intended, the next time he saw Mr. Wallingford, to insist upon a payment. In place of that, he had only jeopardized two thousand dollars more, and all that he had to show for it were half a dozen covered tacks which J. Rufus had left him to ponder upon. In the meantime, Lamb's loan of one thousand had been increased, upon plausible pretext, to two thousand.

There began, now, busy days at the factory. In the third floor of their building a machine shop was installed. Three thousand dollars went there. Outside, in a large experimental shop, work was being rapidly pushed on machinery which would make tacks with cross-corrugated heads. Genius Wallingford had secretly secured drawings of tack machinery, and devised slight changes which would evade the patents, adding dies that would make the roughened tops. A final day came when, set up in their shop, the first faulty machine pounded out tacks ready for later covering, and every stockholder who had been called in to witness the working of the miracle went away profoundly convinced that fortune was just within his reach. They had their first patent granted now, and the sight of it, on stiff parchment with its bit of bright ribbon, was like a glimpse at dividends. It was right at this time, however, that one cat was let out of the bag. The information came first to Edward Lamb, through the inquiries of a commercial rating company, that their Boston capitalist was a whited sepulcher, so far as capital went. He had not a cent. The secretary, in the privacy of their office, put the matter to him squarely, and he admitted it cheerfully. He was glad that the exposé had come – it suited his present course, and he would have brought it about himself before long.

"Who said I had money?" he demanded. "I never said so."

"Well, but the way you live," objected Lamb.

"I have always lived that way, and I always shall. Not only is it a fact that I have no money, but I must have some right away."

"I haven't any more to lend."

"No, Eddy; I'm not saying that you have. I am merely stating that I have to have some. I am being bothered by people who want it, and I cannot work on the covering machine until I get it," and Mr. Wallingford coolly telephoned for his big automobile to be brought around.

They sat silently in the office for the next five minutes, while Lamb slowly appreciated the position they were in. If J. Rufus should "lay down on them" before the covering machine was perfected, they were in a bad case. They had already spent over twenty thousand dollars in equipping their office, their machine shop, and perfecting their stamping machine, and time was flying.

"You might sell a little of your stock," suggested Lamb.

"We have an agreement between us to hold control."

"But you can still sell a little of yours, and stay within that amount. I'm not selling any of mine."

Mr. Wallingford drew from his pocket a hundred-share stock certificate.

"I have already sold some. Make out fifty shares of this to L. W. Ramsay, twenty-five to E. H. Wyman, and the other twenty-five to C. D. Wyman."

Ramsay and the Wyman Brothers! Ramsay was the automobile dealer; Wyman Brothers were Wallingford's tailors.

"So much? Why didn't you sell them at least part from our extra treasury stock? There is twenty thousand there, replacing the ten thousand of the old company."

"Why didn't I? I needed the money. I got twenty-five hundred cash from Ramsay, and let him put twenty-five on account. I agreed to take one thousand in trade from Wyman Brothers, and got four thousand cash there."

The younger man looked at him angrily.

"Look here, Wallingford; you're hitting it up rather strong, ain't you? This makes six thousand five hundred, besides two thousand you borrowed from me, that you have spent in three months. You have squandered money since you came here at the rate of three thousand a month, besides all the bills I know you owe, and still you are broke. How is it possible?"

"That's my business," retorted Wallingford, and his face reddened with assumed anger. "We are not going to discuss it. The point is that I need money and must have it."

The automobile drew up at the door, and J. Rufus, who was in his automobile suit, put on his cap and riding coat.

"Where are you going?"

"Over to Rayling."

Lamb frowned. Rayling was sixty miles away.

"And you will not be back until midnight, I suppose."

"Hardly."

"Why, confound it, man, you can't go!" exclaimed Lamb. "They're waiting for you now over at the machine shop, for further instructions on the covering device."

"They'll have to wait!" announced J. Rufus, and stalked out of the door.

The thing had been deliberately followed up. Mr. Wallingford had come to the point where he wished his flock to know that he had no financial resources whatever, and that they would have to support him. It was the first time that he had departed from his suavity, and he left Lamb in a panic. He had been gone scarcely more than an hour when David Jasper came in.

"Where is Wallingford?" he asked.

"Gone out for an automobile trip."

"When will he be back?"

"Not to-day."

Jasper's face was white, but the flush of slow anger was creeping upon his cheeks.

"Well, he ought to be; his note is due."

"What note?" inquired Lamb, startled.

"His note for a thousand dollars that I went security on."

"You might just as well renew it, or pay it. I had to renew mine," said Lamb. "Dave, the man is a four-flusher, without a cent to fall back on. I just found it out this morning. Why didn't you tell me that he was borrowing money of you?"

"Why didn't you tell me he was borrowing money of you?" retorted his friend.

They looked at each other hotly for a moment, and then both laughed. The big man was too much for them to comprehend.

"We are both cutting our eye teeth," Lamb decided. "I wonder how many more he's borrowed money from."

"Lewis, for one. He got fifteen hundred from him. Lewis told me this morning, up at Kriegler's."

Lamb began figuring. To the eight thousand five hundred of which he already knew, here was twenty-five hundred more to be added – eleven thousand dollars that the man had spent in three months! Some bills, of course, he had paid, but the rest of it had gone as the wind blew. It seemed impossible that a man could spend money at the rate of one hundred and twenty-five dollars a day, but this one had done it, and that at first was the point which held them aghast, to the forgetting of their own share in it. They could not begin to understand it until Lamb recalled one incident that had impressed him. Wallingford had taken his wife and two friends to the opera one night. They had engaged a private dining room at the hotel, indulging in a dinner that, with flowers and wines, had cost over a hundred dollars. Their seats had cost fifty. There had been a supper afterward where the wine flowed until long past midnight. Altogether, that evening alone had cost not less than three hundred dollars – and the man lived at that gait all the time! In his home, even when himself and wife were alone, seven-course dinners were served. Huge fowls were carved for but the choicest slices, were sent away from the table and never came back again in any form. Expensive wines were opened and left uncorked after two glasses, because some whim had led the man to prefer some other brand.

Lamb looked up from his figuring with an expression so troubled that his older friend, groping as men will do for cheering words, hit upon the idea that restored them both to their equilibrium.

"After all," suggested Jasper, "it's none of our business. The company is all right."

"That's so," agreed Lamb, recovering his enthusiasm in a bound. "The tack itself can't be beat, and we are making progress toward getting on the market. Suppose the man were to sell all his stock. It wouldn't make any difference, so long as he finishes that one machine for covering the tack."

"He's a liar!" suddenly burst out David Jasper. "I wish he had his machinery done and was away from us. I can't sleep well when I do business with a liar."

"We don't want to get rid of him yet," Lamb reminded him, "and, in the meantime, I suppose he will have to have money in order to keep him at work. You'd better get him to give you stock to cover your note and tell Lewis to do the same. We'll all go after him on that point, and get protected."

David looked troubled in his turn.

"I can't afford it. When I took up that five thousand dollars' worth of stock I only had fifteen hundred in the building loan, and I put a mortgage on one of my houses to make up the amount. If I have to stand this thousand I'll have to give another mortgage, and I swore I'd never put a plaster on my property."

"The tack's good for it," urged Lamb, with conviction.

"Yes, the tack's good," admitted Jasper.

That was the thing which held them all in line – the tack! Wallingford himself might be a spendthrift and a ne'er-do-well, but their faith in the tack that was to make them all rich was supreme. Lamb picked up one from his desk and handed it to his friend. The very sight of it, with its silken covered top, imagination carrying it to its place in a carpet where it would not show, was most reassuring, and behind it, looming up like the immense open cornucopia of Fortune herself, was the Eureka Company, the concern that would buy them out at any time for a million dollars if they were foolish enough to sell. After all, they had nothing to worry them.

David Jasper went up to the bank and had them hold the note until the next day, which they did without comment. David was "good" for anything he wanted. The next day he got hold of Wallingford to get him to renew the note and to give him stock as security for it. When J. Rufus came out of that transaction, in which David had intended to be severe with him, he had four thousand dollars in his pocket, for he had transferred to his indorser five thousand dollars of his stock and Jasper had placed another mortgage on his property. The single tack in his vest pocket had assumed proportions far larger than his six cottages and his home. It was the same with Lewis and one of the others, and, for a week, the inventor struggled with the covering machine.

No one seemed to appreciate the fact that here their genius was confronting a problem that was most difficult of solution. To them it meant a mere bit of mechanical juggling, as certain to be accomplished as the simple process of multiplication; but to glue a piece of cloth to so minute and irregular a thing as the head of a tack, to put it on firmly and leave it trimmed properly at the edges, to do this trick by machinery and at a rate rapid enough to insure profitable operation, was a Herculean task, and the stockholders would have been aghast had they known that J. Rufus was in no hurry to solve this last perplexity. He knew better than to begin actual manufacture. The interference report on the first patent led him to make secret inquiries, the result of which convinced him that the day they went on the market would be the day that they would be disrupted by vigorous suits, backed by millions of capital. He had been right in stating that a patent is of no value except as a basis for lawsuits.

There was only one thing which offset his shrewdness in realizing these conditions, and that was his own folly. Had he been content to devote himself earnestly to the accomplishment even of his own ends, the many difficulties into which he had floundered would never have existed. Always there was the pressing need for money. He was a colossal example of the fact that easily gotten pelf is of no value. His wife was shrewder than he. She had no social aspirations whatever at this time. They were both of them too bohemian of taste and habit to conform to the strict rules which society imposes in certain directions, even had they been able to enter the charmed circle. She cared only to dress as well as the best and to go to such places of public entertainment as the best frequented, to show herself in jewels that would attract attention and in gowns that would excite envy; but she did tire of continuous suspense – and she was not without keenness of perception.

"Jim," she asked, one night, "how is your business going?"

"You see me have money every day, don't you? There's nothing you want, is there?" was the evasive reply.

"Not a thing, except this: I want a vacation. I don't want to be wondering all my life when the crash is to come. So far as I have seen, this looks like a clean business arrangement that you are in now; but, even if it is, it can't stand the bleeding that you are giving it. If you are going to get out of this thing, as you have left everything else you were ever in, get out right away. Realize every dollar you can at once, and let us take a trip abroad."

"I can't let go just yet," he replied.

She looked up, startled.

"Nothing wrong in this, is there, Jim?"

"Wrong!" he exclaimed. "Fanny, I never did anything in my life that the law could get me for. The law is a friend of mine. It was framed up especially for the protection of J. Rufus Wallingford. I can shove ordinary policemen off the sidewalk and make the chief stand up and salute when I go past. The only way I could break into a jail would be to buy one."

She shook her head.

"You're too smart a man to stay out of jail, Jim. The penitentiary is full of men who were too clever to go there. You're a queer case, anyhow. If you had buckled down to straight business, with your ability you'd be worth ten million dollars to-day."

He chuckled.

"Look at the fun I'd have missed, though."

But for once she would not joke about their position.

"No," she insisted, "you're looking at it wrong, Jim. You had to leave Boston; you had to leave Baltimore; you had to leave Philadelphia and Washington; you will have to leave this town."

"Never mind, Fanny," he admonished her. "There are fifty towns in the United States as good as this, and they've got coin in every one of them. They're waiting for me to come and get it, and when I have been clear through the list I'll start all over again. There's always a fresh crop of bait-nibblers, and money is being turned out at the mint every day."

"Have it your own way," responded Mrs. Wallingford; "but you will be wise if you take my advice to accumulate some money while you can this time, so that we do not have to take a night train out in the suburbs, as we did when we left Boston."

Mr. Wallingford returned no answer. He opened the cellar door and touched the button that flooded his wine cellar with light, going down himself to hunt among his bottles for the one that would tempt him most. Nevertheless, he did some serious thinking, and, at the next board-of-directors' meeting, he announced that the covering machine was well under way, showing them drawings of a patent application he was about to send off.

It was a hopeful sign – one that restored confidence. He must now organize a selling department and must have a Chicago branch. They listened with respect, even with elation. After all, while this man had deceived them as to his financial standing when he first came among them, he was well posted, for their benefit, upon matters about which they knew nothing. Moreover, there was the great tack! He went to Chicago and appointed a Western sales agent. When he came back he had sold fifteen thousand dollars' worth of his stock through the introductions gained him by this man.

J. Rufus Wallingford was "cleaning up."