6% dividends guaranteed 1,250,000
_________
Total price named 5,000,000

"Colonel Harris, before you answer, please let me outline our London
plan. Suppose I should take for Messrs. Guerney & Barring a contract, or
option of purchase on the property with payments as named, the purchase
to be conditioned upon a verification of the correctness of your
statements. Our experts can examine and report soon on your accounts for
ten years back, and on buildings, machinery, stock on hand, land, etc."

"Mr. Searles, please explain further your 'London plan' of
reorganization."

"Colonel Harris, we would modify the old firm name, so as to read--'The
Harrisville Iron & Steel Co., Limited, of London, England,' and
capitalize it at L1,400,000, or $7,000,000.

Par value of shares L20 or $100
Number of shares 70,000

"When our experts shall have verified your statements at Harrisville,
then the option of purchase is to be signed by us and forwarded to
London, where it will be signed by Messrs. Guerney & Barring, the first
payment made, and the contract underwritten or guaranteed by the
Guardian, Executor & Trust Association, Limited, of London, whose capital
is $5,000,000. The association will also underwrite the bonds and
preference shares. This will practically complete the purchase."

"But what about the last one-fourth payment in preferred shares of
$1,250,000?"

"Pardon me, Colonel Harris, that is just what I desire to explain
further. The new company will issue debentures or bonds, running 30
years, at 4%, for L800,000 or $4,000,000; preference shares L400,000 or
$2,000,000; with dividends 6% guaranteed, and a preference in
distribution of property, if company is dissolved. Ordinary shares
L1,200,000 or $6,000,000. And our London prospects will show that the
ordinary shares can earn at least 5%. For the last one-fourth we wish you
to take 12,500 preferred shares, or $1,250,000.

"London holders, of course, will elect all the officers, a managing board
of directors, with general office in London. For a time they will expect
you to advise in the management of the business at Harrisville."

After some further explanations, Harris agreed to sign a contract or
option of purchase, drawn as specified, if after investigation, he should
become satisfied with the responsibility of the London parties. On
Tuesday morning, contracts in duplicates were presented for Co