on taking hold of things in such an energetic and
business-like way. We shall of course ratify the action Mr. Smith has
taken on these matters; and now I want to ask Mr. Smith what he thinks
our prospects are and what he has in mind for the immediate future."

There were two things Smith wanted, neither of which could he get alone
and unaided; and accordingly he went to the point with the utmost
directness.

"I believe that we have passed a kind of crisis and that things are
fairly well started, gentlemen," he said. "I see no reason why the
Guardian should not go on and continue to be the successful
underwriting institution it has always been, and certainly I shall try
my hardest to make it so. I am very much obliged to Mr. Whitehill for
his expression of confidence in me. Now, there are two things which
you gentlemen can give me and for which I ask you to-day. One is
authority to double our liability on Manhattan Island, and the other is
an uptown branch manager."

Smith stopped, glancing at Mr. Wintermuth and rather apprehensive of
the reply he might receive. But all that gentleman answered was:--

"We've always tried to keep down our liability in Manhattan--especially
in the lower end, between Chambers and Twenty-third Street."

"Yes," said Smith; "and I believe, sir, we've kept it down too far. In
the last ten years the construction has been greatly improved, a high
pressure water supply has been introduced, the fire department is
bigger and more efficient, and yet our liability is very little greater
in the dry goods district, for example, than it was ten years ago."

"That's true," the President agreed. He turned to the other directors.
"I think perhaps that in our city business we may have been a little
too conservative, but I have always preferred to err on that side, if I
erred at all. I should not oppose a rather more liberal policy in New
York."

"Thank you," Smith replied. "Mr. Cuyler and I will take care that the
company does not get involved for dangerous amounts in any well defined
district, and I hope that the larger part of our increased business
will be uptown. And it will, if we can secure the right branch
manager."

"But how can we help you there?" another director asked. "None of us
is familiar with insurance conditions."

"I thought," the other said, "that some of you might have influence
with some of the better uptown agencies. The competition for that
class of business is