oonshine."

"I think you will admit, sir, that Watson Scott is not a man to be
dazzled or deceived by moonshine. He is actively concerned in this
business."

"Mr. Scott seldom makes mistakes," admitted Jerome.

"Besides," added the youth, "I object to the word 'promoter' as you
applied it to me. I am not a promoter. I propose to put a good, round
sum of hard cash into the combined fund of the syndicate."

"Oh, you do?"

"Yes, sir."

"Which goes to prove that what I have just said is correct--youth lacks
experience and judgment."

Frank was surprised.

"I fail to see how you make that out. If the plan is a promising one,
and I am satisfied that the railroad will be a paying venture, why
should I not invest my money in it? If I were not confident that it
would pay, I'd not be advocating it."

Jerome made a slight gesture.

"No such project can be absolutely assured of success at the outset," he
asserted. "It is a great venture, and the men who get in on the ground
floor are certain to protect themselves from loss in any case."

Merriwell frowned, a puzzled expression on his face.

"How is that possible?" he asked. "If we are assembled here to organize
and build that railroad, how is it possible for us to be protected
against loss if the railroad does not prove a paying piece of property?"

A cold smile flitted across the face of Jerome.

"I knew you were inexperienced. Young man, there are several ways of
doing it; but undoubtedly the simplest way is to organize a stock
company and sell stock to the public. Let the public in general build
the railroad, while we reap the profits, if there are any."

"But if the public owns the stock, I fail to see how we can reap the
profits if the railroad is a financial success."

Jerome looked with something like pity at the questioning youth.

"It is a simple matter. I will explain it in a few words. To begin with,
it is not necessary for us to invest one dollar of our own money in the
scheme."

"What? And still we may hold an interest in it?"

"The controlling interest, Mr. Merriwell."

"Go on, sir."

"We will suppose at the start that we organize the Central Sonora
Railroad Company and capitalize it for--well, just as an example, let's
say ten millions of dollars. Before deciding on this we will have made
surveys and estimates that have convinced us beyond question that the
road may be built and placed in operation for four millions of
dollars."

"Then w