an and supposed to be a competent one--possibly you can tell me how to
set about it."

"Do you mean to liquidate the Salamander--close up the company?"

"Whatever one does to extricate himself from this kind of a hole.
What's the usual method?"

"The usual method," replied O'Connor, his face somewhat flushed at the
other man's tone, "is for the stockholders to authorize an assessment
on their stock, and continue. That apparently does not appeal to you;
and if I understand you correctly, you wish to terminate operations and
wind up the company."

"Exactly so. You catch my meaning perfectly."

"There are two ways, then," the other said. "One is to let the risks
in force expire, paying the losses as they occur; that will take about
five years. The other, which is the usual way, is to pay some other
company to assume the liability on all our outstanding policies--to
reinsure us. We pay a lump sum, and the other company pays the losses
as the risks expire, instead of our doing so."

"I see the idea. But what company would do that? And wouldn't it cost
a small fortune to get any one to? And isn't this a bad time to
approach any company with such a proposition?"

"No, I don't think so. Some company might be glad to get hold of a
large amount of cash which it could use to pay its own Boston losses,
and then it could pay the losses on our outstanding business, which
would come along gradually for several years, out of its own normal
profits in that time."

Mr. Murch looked at O'Connor with more respect.

"That sounds plausible. How much would it cost--in round numbers?"

"Our reinsurance reserve is about $1,500,000. I should think a company
might be found to take it over for about two thirds of that sum. You
see, we have a valuable agency plant and a good business, and although
you want to get rid of it, it would be considered by most companies as
well worth having. The company that took over our risks wouldn't let
them expire; that company would hold on to them and secure them on
renewal."

"How can this be arranged?" Mr. Murch inquired.

It was like cutting off his right hand to reply, O'Connor reflected,
but he did so.

"Mr. Simeon Belknap usually manages such matters," he said. "Naturally
he doesn't manage them for nothing; but he does the trick, and he's
much the best man for it. He has probably engineered four fifths of
the important reinsurance deals that have gone through in this country.