Complete Works of Emile Zola (1110 page)

In this wise, then, they reached the date of the first general meeting of shareholders. April 25 had been chosen for this meeting, and on the 20th Hamelin, hastily recalled by Saccard, who was stifling in his narrow sphere, arrived from the East expressly to preside over it. He brought excellent news with him; the agreements for the formation of the United Steam Navigation Company were concluded, and he, moreover, had in his pocket the firmans granting the working of the Carmel silver mines to a French company; to say nothing of the National Turkish Bank, the foundations of which he had just laid at Constantinople, and which would become a branch of the Universal. As for the big question of the Asia Minor Railway, this was not yet ripe and must be kept in reserve. Besides, he meant to return to the East directly after the meeting, in order to continue his studies. Saccard, who was delighted, had a long conversation with him, at which Madame Caroline was present, and he easily persuaded them that an increase of capital would be absolutely necessary if they wished to provide for all these enterprises. The large shareholders, Daigremont, Huret, Sédille, and Kolb, who had been consulted, had already approved of an increase, so that a couple of days sufficed to mature the suggestion and lay it before the board on the very eve of the meeting of shareholders.

This special board-meeting was a solemn affair. All the directors attended in that large severe-looking room on the first floor, where the light acquired a greenish tinge through the proximity of the lofty trees in the garden of the Beauvilliers mansion. As a rule, there were two board-meetings every month: the petty, but more important meeting on or about the 15th, when only the real leaders, the true managers, of the enterprise would attend; and the full meeting on the 30th, when the silent and purely ornamental directors came to signify their approval of all that had been prearranged and to give the signatures required of them. On this occasion the Marquis de Bohain arrived one of the first, testifying with an aristocratic weary air to the approval of the entire French nobility. And the Viscount de Robin-Chagot, the penurious, gentle vice-chairman, who had been selected to school those of the directors to whom the position of affairs had not been communicated, drew them aside, and in a few words informed them of the orders of the general manager, the real master of one and all. It was an understood thing, and with a nod they all promised compliance.

At last the proceedings commenced. Hamelin acquainted the board with the report which he was to read at the shareholders’ meeting. This was the big task on which Saccard had long been at work, and which he had at last drafted in a couple of days, supplementing it with information which Hamelin had furnished on his arrival. Yet, while the engineer read it aloud, he listened modestly, with an air of keen interest, as though he had not previously been acquainted with a single word of it.

The report began by recapitulating the business done by the Universal Bank since its foundation. Its transactions were good ones, but they were mainly little every-day matters in which money was promptly turned over — all the usual routine, in fact, of financial houses. Still, some rather large profits had been made in the matter of the Mexican loan which had been floated during the preceding month, after the Emperor Maximilian’s departure for Mexico. A queer affair was this, disgracefully mismanaged, with plenty of pickings in the way of premiums for enterprising speculators; and Saccard greatly regretted that lack of money had kept him from wading yet more deeply in these troubled waters. However, if the bank’s transactions had simply been commonplace ones, at least it had managed to live. Since its foundation on October 5, until December 31, it had realised profits amounting to rather more than four hundred thousand francs. This had enabled the management to pay off one-fourth of the preliminary expenses, to give the shareholders five per cent., and to carry ten per cent, to a reserve fund. Moreover, the directors had received the ten per cent, guaranteed to them by the articles of association, and there remained about sixty-eight thousand francs, which it was proposed to carry forward until the next distribution of profits. Nothing could have been more strictly commonplace and honourable than all this. It was the same with regard to the price at which Universal shares were quoted at the Bourse; they had risen from five hundred to six hundred francs, not suddenly, but in a slow normal fashion, just like the shares of any respectable banking house. And for two months now the price had remained stationary, there being no reason for any increase, given the humdrum daily round in which the newly-born concern seemed to be falling asleep.

But the report passed on to the future, and here everything suddenly expanded; a vast horizon of a series of great enterprises was spread before the view. Especial attention was called to the United Steam Navigation Company, whose shares were to be issued by the Universal Bank. This company, with a capital of fifty millions of francs, was to monopolise the entire transport service of the Mediterranean. It would amalgamate those two great rival concerns, the Phocaean Company, with its service to Constantinople, Smyrna, and Trebizond by way of the Piraeus and the Dardanelles, and the Maritime Company, with its service to Alexandria by way of Messina and Syria; to say nothing of the various minor houses which would be absorbed in the enterprise — Combarel and Co., with their service to Algeria and Tunis; Veuve Henri Liétard, who ran another service to Algeria, but by way of Spain and Morocco; and, finally, Messrs. Féraud-Giraud Brothers, whose vessels plied along the coasts of Italy to Naples, Grata Vecchia, and the ports of the Adriatic. By making one company of all these rival concerns, which were killing one another, the entire Mediterranean would be conquered. By the centralization of capital they would be able to build superior vessels, of unsurpassed speed and comfort; and they would further be able to increase the frequency of the services and the number of the ports of call, so that the East would soon become a mere suburb of Marseilles. And to what importance would the company not attain when the Suez Canal was finished and it became possible for it to organise services to India, Tonquin, China, and Japan! Never had a greater and a safer enterprise been conceived.

Then came the question of supporting the National Turkish Bank, concerning which the report supplied an abundance of technical particulars, fully demonstrating what a secure and substantial enterprise this would be. And the recital of the contemplated operations concluded with the announcement that the Universal would also give its patronage to the Carmel Silver Mining Company, which was to be established with a capital of twenty millions of francs. Specimens of ore, which chemists had analysed, had been found to contain a large proportion of silver. But, more even than science, the antique poesy clinging to the Holy Places summoned up a vision of silver pouring forth in a miraculous stream — a divine, dazzling vision which Saccard had alluded to at the end of a sentence with which he was very pleased.

Finally, after all these promises of a glorious future, the report concluded by recommending an increase of capital. It should be doubled, raised from five and twenty to fifty millions of francs. The suggested system of issue was of extreme simplicity, in order that everybody might understand it. Fifty thousand new shares would be created, and reserved share by share for the holders of the original stock, so that there would not even be any public subscription. Only these new shares were to be issued at five hundred and twenty francs apiece, inclusive of a premium of twenty francs. This would yield a million, which could be carried to the reserve fund. It was reasonable and prudent that this little tax should be levied on the shareholders, since they would be favoured by the new issue. Moreover, only a fourth part of the value of the shares, plus the premium, was payable on allotment.

A hum of approval arose when Hamelin ceased reading. It was perfect; not the faintest objection could be raised. Throughout the perusal Daigremont, to all appearance very much interested in his finger-nails, had smiled at sundry vague thoughts that occurred to him; whilst deputy Huret, leaning back in his arm-chair with closed eyes, almost fell asleep under the impression that he was at the Chamber of Deputies. And meantime Kolb, the banker, quietly and openly devoted himself to making a long calculation on some of the sheets of paper which, like every director, he had before him.

However, Sédille, who was always anxious and distrustful, made up his mind to ask a few questions. What would become of those new shares which the shareholders, relinquishing their right, might not choose to take up? Would the bank keep them on its own account, and, if so, would this not be illegal, as the declaration of increase of capital, required by law, could not be made at the notary’s until the entire additional capital had been subscribed? On the other hand, if the Bank meant to get rid of these shares, to whom and how did it expect to sell them? However, at the first words spoken by the silk manufacturer, the Marquis de Bohain, observing Saccard’s impatience, intervened, and declared, with his grand aristocratic air, that the board left these matters of detail to its chairman and manager, who were both so devoted and so competent. And after this only congratulations were heard, and the meeting broke up with everybody in rapturous delight.

The shareholders’ meeting on the morrow supplied occasion for some really touching demonstrations. It was again held in that hall in the Rue Blanche where the proprietor of a public ball had gone bankrupt; and prior to the chairman’s arrival the most favourable reports began to circulate among the crowd of shareholders. One rumour in particular was transmitted in whispers from ear to ear: Rougon, the minister, the manager’s brother, whom the growing Opposition was now virulently attacking, was disposed to favour the Universal if the Bank’s newspaper ‘L’Espérance,’ a former organ of the Catholic party, would only defend the Government. One of the deputies of the Left had lately raised that terrible cry ‘The second of December’1 is a crime!’ which had resounded from one to the other end of France like an awakening of the public conscience. And it was necessary to answer it by great deeds — such as the launching of the approaching Universal Exhibition, which, it was expected, would increase business tenfold. Besides, people would make piles of money in Mexico and elsewhere now that the triumph of the Empire was at its zenith.

In one little group of shareholders, whom Jantrou and Sabatani were schooling, a good deal of laughter was indulged in at the expense of another deputy of the Left who, during the discussion of the army budget, had let his fancy run riot to the point of suggesting that the Prussian recruiting system should be adopted in France. The Chamber had been much amused by this. How the terror of Prussia had been troubling certain brains since that Denmark affair, under the influence of the secret resentment that Italy had harboured against France since Solferino! However, all the hubbub of private conversation, all the loud buzzing that prevailed in the hall, was suddenly hushed when Hamelin and the other officials entered. Displaying even more modesty than at the board meeting, Saccard had withdrawn from all prominence, hidden himself away among the throng; and he contented himself with giving the signal for applauding the report, which embodied the first balance-sheet, duly checked and approved by Lavignière and Rousseau, the auditors, and finally proposed the doubling of the Bank’s capital. The meeting alone bad power to authorise this increase, upon which it decided with enthusiasm, quite intoxicated as it was by the millions of the United Steam Navigation Company and the National Turkish Bank, and realising, moreover, that it was necessary to place the capital on a par with the importance which the Universal was now about to acquire. As for the Carmel silver mines, the announcement concerning them was greeted with a religious thrill. And when votes of thanks had been accorded to the chairman, directors, and manager, and the shareholders separated, they all began dreaming of Carmel and of that miraculous rain of silver which would pour down from the Holy Places amidst a halo of glory.

A couple of days later Hamelin and Saccard, on this occasion accompanied by the Viscount de Robin-Chagot, the vice-chairman, returned to Maitre Lelorrain’s offices in the Rue Ste. Anne to make the needful declaration of the increase of capital, which, they alleged, had been entirely subscribed. But the truth was that some three thousand shares, declined by the original shareholders to whom by right they belonged, had been left on the Bank’s hands and turned over to the Sabatani account by some jugglery in the book-keeping. It was the original irregular device, repeated and aggravated — the system of concealing a certain number of Universal shares in the Bank’s own coffers, as a kind of reserve, which would enable it to speculate and throw itself into the thick of the fight at the Bourse so as to keep up prices should any coalition of ‘bears’ be formed to beat them down.

Hamelin, though he disapproved of these illegal tactics, had ended by completely trusting the management of financial operations to Saccard. There was a conversation between them and Madame Caroline on this subject, but in reference only to the shares which Saccard had compelled the Hamelins to take for themselves. Five hundred of the first issue and five hundred of the second had been allotted to them, a thousand shares in all, one-fourth of the value of which was demandable, together with the premium of twenty francs per share on the last five hundred. The brother and sister insisted on paying the amount in question, one hundred and thirty-five thousand francs, out of an unexpected legacy of three hundred thousand francs which had come to them from an aunt, who had recently died, ten days after her only son, the same fever carrying them both off. Saccard allowed his friends to pay as they desired to do so; however, he did not explain in what manner he expected to release his own shares.

‘Ah, this inheritance!’ said Madame Caroline, laughing. ‘It is the first piece of luck that has come to us. I really believe that you bring us luck. Why, what with my brother’s salary of thirty thousand francs, his liberal allowance for travelling expenses, and all this gold that has just rained down upon us — probably because we no longer needed it — we are now quite rich!’