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But this second burden, interesting enough as it was, meant that he had to be doubly watchful.
Once the stock was sold at a high price, the money borrowed from the city treasurer could be
returned; his own holdings created out of foresight, by capitalizing the future, by writing the
shrewd prospectuses and reports, would be worth their face value, or little less. He would have
money to invest in other lines. He might obtain the financial direction of the whole, in which case
he would be worth millions. One shrewd thing he did, which indicated the foresight and subtlety
of the man, was to make a separate organization or company of any extension or addition which
he made to his line. Thus, if he had two or three miles of track on a street, and he wanted to
extend it two or three miles farther on the same street, instead of including this extension in the
existing corporation, he would make a second corporation to control the additional two or three
miles of right of way. This corporation he would capitalize at so much, and issue stocks and
bonds for its construction, equipment, and manipulation. Having done this he would then take
the sub-corporation over into the parent concern, issuing more stocks and bonds of the parent
company wherewith to do it, and, of course, selling these bonds to the public. Even his brothers
who worked for him did not know the various ramifications of his numerous deals, and executed
his orders blindly. Sometimes Joseph said to Edward, in a puzzled way, "Well, Frank knows
what he is about, I guess."
On the other hand, he was most careful to see that every current obligation was instantly met,
and even anticipated, for he wanted to make a great show of regularity. Nothing was so
precious as reputation and standing. His forethought, caution, and promptness pleased the
bankers. They thought he was one of the sanest, shrewdest men they had ever met.
However, by the spring and summer of 1871, Cowperwood had actually, without being in any
conceivable danger from any source, spread himself out very thin. Because of his great success
he had grown more liberal--easier--in his financial ventures. By degrees, and largely because of
his own confidence in himself, he had induced his father to enter upon his street-car
speculations, to use the resources of the Third National to carry a part of his loans and to
furnish capital at such times as quick resources were necessary. In the beginning the old
gentleman had been a little nervous and skeptical, but as time had worn on and nothing but
profit eventuated, he grew bolder and more confident.
"Frank," he would say, looking up over his spectacles, "aren't you afraid you're going a little too
fast in these matters? You're carrying a lot of loans these days."
"No more than I ever did, father, considering my resources. You can't turn large deals without
large loans. You know that as well as I do."
"Yes, I know, but--now that Green and Coates--aren't you going pretty strong there?"
"Not at all. I know the inside conditions there. The stock is bound to go up eventually. I'll bull it
up. I'll combine it with my other lines, if necessary."
Cowperwood stared at his boy. Never was there such a defiant, daring manipulator.
"You needn't worry about me, father. If you are going to do that, call my loans. Other banks will
loan on my stocks. I'd like to see your bank have the interest."
So Cowperwood, Sr., was convinced. There was no gainsaying this argument. His bank was
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