"I will say, in beginning," commenced George Melville, in his smoothest,
blandest tones, "that we have talked so far, you and I, Mr. Farnum, only
in general terms. We will now come to the definite proposition under
which my friends and myself are willing to contribute the share of new
capital that you want in your business."

"That is what I most want, before we go any further," assented Mr. Farnum.
"I will say, however, that I have in mind a proposition that I would
like to submit, before we hear from your side."

"I am listening," nodded Mr. Melville, suavely.

"We have already decided," continued Mr. Farnum, "that my boat yard, with
all its equipment, and including the ownership of the 'Pollard,' may be
fairly rated at three hundred thousand dollars."

"That is quite true," nodded Mr. Melville. "That figure is in accordance
with the estimates made by our expert accountant."

"In the boat itself," continued Jacob Farnum, "my friend Pollard has a
stated amount of interest. To come quickly to the point, then, I propose
that Pollard and myself, with the aid of a necessary third party--my
superintendent, Partridge, for instance--form a stock company with a
capital stock of three hundred thousand dollars. Then the six hundred
and fifty thousand dollars that you and your associates are to advance,
Mr. Melville, may be secured by an issue of bonds, which the company
will secure authority to issue. These bonds will bear the unusually high
interest of seven per cent., and this interest, of course, will have to
be paid before any dividend can be declared on the capital stock of the
company. That will retain the control of the company in my hands, and