Holding himself very still, Peregrine willed them to finish their business quickly and leave. A sneeze was tickling at his nostrils.
“And of course we expect to add several more distinguished names to the Advisory Board after Maitland finishes regaling the audience here today with his scientific genius.”
“Hmmph.” The Smoker inhaled and blew out a perfect ring before continuing. “I’ve heard that Henry Maudslay is also working on a marine steam engine. Given his astounding successes in technical innovation, I would think he would be a serious competitor to your consortium. So tell me why I should invest with you.”
“Maudslay has suffered a serious setback,” answered Baritone Voice. “Word is, the unfortunate attack on his laboratory damaged his lathes and a number of milled pieces for his prototype engine.” A pause. “Even more importantly, it also seems that his technical drawings, which recorded all the precision specifications, went up in smoke. Which essentially means he will have to start over.”
More rustling, and then a moment of silence. “You think Maitland has invented a system that will actually conquer the oceans?” asked The Smoker.
“He has been working for the last five years in New York, where the American geniuses in engineering are far ahead of the rest of the world in this area of innovation,” answered Baritone Voice. “Indeed, Maitland was part of Robert Fulton’s team that launched the first successful steamboat service on the North River. Then he moved to work with Stephen Vail in the state of New Jersey, where his Speedwell Ironworks was doing experimental work with creating stronger iron for steam engines. With the help of Samuel Carson, who had trained at the legendary Boulton & Watt steam engine factory, they also developed new designs for condensers, boilers, pistons, rods, and pumps, all of which allowed them to design a far more powerful type of steam engine.”
His boots shifted on the soft carpet. “He then moved on to work with the leaders in paddle wheel and hull design.”
“Impressive credentials,” said The Smoker. He paused to exhale another silvery ring of smoke. “But—”
“But the truth is, as a businessman you’re asking the wrong question,” interjected Baritone Voice in a silky tone.
Peregrine inched a little closer to the end of the sofa, straining to catch the gentleman’s next words.
“Let us look at the potential for making money that this initial offering gives to our small circle of charter investors. We are buying our shares at a very favorable price—an insider deal, if you will. Once the company succeeds, the value of our shares shall shoot up in value.”
Baritone Voice paused. “And even before then, as word spreads of the company’s potential, there will be an immediate clamoring among the beau monde to buy into the consortium. We will issue a set number of new shares to help meet the demand, but so as not to dilute the value of the company, we will also allow charter investors to sell some of their shares at the new, higher prices—resulting in immediate profit before the company is a proven venture.”
“But these supposedly innovative ventures are still very risky,” pointed out The Smoker. “If this one fails, we as shareholders are liable for all the debts of the bankrupt company.”
“Ah, but that is where it gets even more interesting,” replied Baritone Voice. “You are familiar with the Bubble Act?”
“I’m somewhat aware of the basics,” said The Smoker. “It’s the Act that Parliament passed in reaction to the South Seas fiasco some years ago, when the highly speculative venture collapsed, leaving the company penniless and the stockholders liable for its huge debts.”
“Yes,” agreed Baritone Voice. “They passed that Act in 1720. Now, as gentlemen, you and I need not fuss with all the boring legalities, but the point is that the Act prohibited companies from being formed in such a way as to limit the liability of shareholders toonlytheir original investment and protected them from any responsibility for the company’s full debts.”
“Which is exactly why I am concerned—” began The Smoker.
“Hear me out,” interrupted Baritone Voice. “I happen to know that Lady Kirkwall has been having some very substantive private talks with prominent members of Parliament, and she assures me that the Bubble Act will soon be repealed. Our company will thus be organized with that limited liability for shareholders as soon as the repeal is in place.”
He lowered his voice. “We charter investors will have all the potential of great profit as well as protection from any debts accrued by the company should it fail.”
“That’s very useful to know,” murmured The Smoker.
“But of course,” Baritone Voice added, “I am supremely confident that we are on the cusp of conquering the oceans. Furthermore, Maitland will soon be making an announcement on a remarkable new development, one that will have people clamoring to be part of the consortium.”
The papers crackled.
“So if I were you, I would make up my mind quickly. The chance to be one of the chosen few will soon be sold out.”
“You’re very persuasive.” The Smoker exhaled one last puff and stubbed out his cigar. “I’ll let you know my decision by nightfall.”
They moved to the door. The latch opened and shut with a muted click.
Peregrine slowly counted to one hundred before creeping out from his hiding place and hurrying to quit the reading room. But to his dismay, as he approached Hedley’s laboratory he saw that the inventor was standing in the corridor chatting with two gentlemen.
Flattening himself against the dark wood wainscoting, he froze and held his breath.
“. . . innovative engineering and bold new bold thinking are the catalyst for Progress!” It was Hedley speaking. “By Jove, we live in exciting times, Lord Taviot.”
“Indeed, we do.” It was Baritone Voice.
“I’ve heard that you are soon to make a grand announcement,” continued Hedley. “I am very much looking forward to it.”
