Watling was now to produce results。。。。 The reputations had already been
made of some of that remarkable group of financial geniuses who were
chiefly instrumental in bringing about the industrial evolution begun
after the Civil War： at the same time； as is well known； a political
leadership developed that gave proof of a deplorable blindness to the
logical necessity of combinations in business。 The lawyer with
initiative and brains became an indispensable factor；〃 etc。； etc。
The biography might have gone on to relate my association with and
important services to Adolf Scherer in connection with his constructive
dream。 Shortly after my return from abroad； in answer to his summons； I
found him at Heinrich's； his napkin tucked into his shirt front； and a
dish of his favourite sausages before him。
〃So； the honeymoon is over！〃 he said； and pressed my hand。 〃You are
right to come back to business； and after awhile you can have another
honeymoon； eh？ I have had many since I married。 And how long do you
think was my first？ A day！ I was a foreman then； and the wedding was at
six o'clock in the morning。 We went into the country； the wife and I。〃
He laid down his knife and fork； possessed by the memory。 〃I have grown
rich since； and we've been to Europe and back to Germany； and travelled
on the best ships and stayed at the best hotels； but I never enjoyed a
holiday more than that day。 It wasn't long afterwards I went to Mr。
Durrett and told him how he could save much money。 He was always ready
to listen； Mr。 Durrett； when an employee had anything to say。 He was a
big man；an iron…master。 Ah； he would be astonished if only he could
wake up now！〃
〃He would not only have to be an iron…master；〃 I agreed； 〃but a financier
and a railroad man to boot。〃
〃A jack of all trades；〃 laughed Mr。 Scherer。 〃That's what we aremen in
my position。 Well； it was comparatively simple then； when we had no
Sherman law and crazy statutes； such as some of the states are passing；
to bother us。 What has got into the politicians； that they are indulging
in such foolishness？〃 he exclaimed； more warmly。 〃We try to build up a
trade for this country； and they're doing their best to tie our hands and
tear it down。 When I was in Washington the other day I was talking with
one of those Western senators whose state has passed those laws。 He said
to me； ‘Mr。 Scherer； I've been making a study of the Boyne Iron Works。
You are clever men； but you are building up monopolies which we propose
to stop。' ‘By what means？'〃 I asked。 〃‘Rebates； for one；' said he； ‘you
get preferential rates from your railroad which give you advantages over
your competitors。' Foolishness！〃 Mr。 Scherer exclaimed。 〃I tell him the
railroad is a private concern； built up by private enterprise； and it has
a right to make special rates for large shippers。 No；railroads are
public carriers with no right to make special rates。 I ask him what else
he objects to； and he says patented processes。 As if we don't have a
right to our own patents！ We buy them。 I buy them； when other steel
companies won't touch 'em。 What is that but enterprise； and business
foresight； and taking risks？ And then he begins to talk about the tariff
taking money out of the pockets of American consumers and making men like
me rich。 I have come to Washington to get the tariff raised on steel rails；
and Watling and other senators we send down there are raising it for us。
We are building up monopolies！ Well； suppose we are。 We can't help it；
even if we want to。 Has he ever made a study of the other side of the
questionthe competition side？ Of course he hasn't。〃
He brought down his beer mug heavily on the table。 In times of
excitement his speech suggested the German idiom。 Abruptly his air grew
mysterious； he glanced around the room； now becoming empty； and lowered
his voice。
〃I have been thinking a long time； I have a little scheme；〃 he said；
〃and I have been to Washington to see Watling； to talk over it。 Well； he
thinks much of you。 Fowndes and Ripon are good lawyers； but they are not
smart like you。 See Paret； he says； and he can come down and talk to me。
So I ask you to come here。 That is why I say you are wise to get home。
Honeymoons can waiteh？〃
I smiled appreciatively。
〃They talk about monopoly； those Populist senators； but I ask you what is
a man in my place to do？ If you don't eat； somebody eats youis it not
so？ Like the boa…constrictorsthat is modern business。 Look at the
Keystone Plate people； over there at Morris。 For years we sold them
steel billets from which to make their plates； and three months ago they
serve notice on us that they are getting ready to make their own billets；
they buy mines north of the lakes and are building their plant。 Here is
a big customer gone。 Next year； maybe； the Empire Tube Company goes into
the business of making crude steel； and many more thousands of tons go
from us。 What is left for us； Paret？〃
〃Obviously you've got to go into the tube and plate business yourselves；〃
I said。
〃So！〃 cried Mr。 Scherer； triumphantly； 〃or it is close up。 We are not
fools； no； we will not lie down and be eaten like lambs for any law。
Dickinson can put his hand on the capital； and II have already bought a
tract on the lakes； at Bolivar； I have already got a plant designed with
the latest modern machinery。 I can put the ore right there； I can send
the coke back from here in cars which would otherwise be empty； and
manufacture tubes at eight dollars a ton less than they are selling。 If
we can make tubes we can make plates； and if we can make plates we can
make boilers； and beams and girders and bridges。。。。 It is not like it
was but where is it all leading； my friend？ The time will comeis right
on us now； in respect to many productswhen the market will be flooded
with tubes and plates and girders； and then we'll have to find a way to
limit production。 And the inefficient mills will all be forced to shut
down。〃
The logic seemed unanswerable； even had I cared to answer it。。。。 He
unfolded his campaign。 The Boyne Iron Works was to become the Boyne Iron
Works； Ltd。； owner of various subsidiary companies； some of which were as
yet blissfully ignorant of their fate。 All had been thought out as
calmly as the partition of Polandonly； lawyers were required； and
ultimately； after the process of acquisition should have been completed；
a delicate document was to be drawn up which would pass through the
meshes of that annoying statutory net； the Sherman Anti…trust Law。 New
mines were to be purchased； extending over a certain large area； wide
coal deposits； little strips of railroad to tap them。 The competition of
the Keystone Plate people was to be met by acquiring and bringing up to
date the plate mills of King and Son； over the borders of a sister state；
the Somersworth Bridge and Construction Company and the Gring Steel and
Wire Company were to be absorbed。 When all of this should have been
accomplished； there would be scarcely a process in the steel industry；
from the smelting of the ore to the completion of a bridge； which the
Boyne Iron Works could not undertake。 Such was the beginning of the
〃lateral extension〃 period。
〃Two can play at that game；〃 Mr。 Scherer said。 〃And if those fellows
could only be content to let well enough alone； to continue buying their
crude steel from us； there wouldn't be any trouble。〃。。。
It was evident； however； that he really welcomed the 〃trouble；〃 that he
was going into battle with enthusiasm。 He had already picked out his
points of attack and was marching on them。 Life； for him； would have
been a poor thing without new conflicts to absorb his energy； and he had
already made of the Boyne Iron Works； with its open…hearth furnaces； a
marvel of modern efficiency that had opened the eyes of the Steel world；
and had drawn the attention of a Personality in New York；a Personality
who was one of the new and dominant type that had developed with such
amazing rapidity； the banker…dinosaur； preying upon and superseding the
industrial…dinosaur； conquering type of the preceding age； builder of the
railroads； mills and manufactories。 The banker…dinosaurs； the gigantic
ones； were in Wall Street； and strove among themselves for the industrial
spoils accumulated by their predecessors。 It was characteristic of these
monsters that they never fought in the open unless they were forced to。
Then the earth rocked； huge economic structures tottered and fell； and
much dust arose to obscure the vision of smaller creatures； who were
bewildered and terrified。 Such disturbances were called 〃panics；〃 and
were blamed by the newspapers on the Democratic party； or on the
reformers who had wantonly assailed established institutions。 These
dominant bankers had contrived to gain control of the savings of
thousands and thousands of fellow…citizens who had deposited them in
banks or paid them into insurance companies； and with the power thus
accumulated had sallied forth to capture railroads and industries。 The
railroads were the strategic links。 With these in hand； certain favoured
industrial concerns could be fed； and others