The Lorimer Line (14 page)

‘You do not deny that you yourself thought various properties to be over-valued,' said John Junius.

‘I do not. But as well as writing down the inflated assets, you have written down the loans which were made on the strength of them. You have cut four million pounds off the
debit side to match the missing four million pounds of assets.'

‘Any prudent business must write off a bad debt,' said John Junius.

‘Any prudent shareholder may expect that by examining the accounts he may see that four million pounds have been written off,' David pointed out. ‘In this case the loss has been concealed by balancing real loans against paper securities, values which never in truth existed. The shareholders will be reassured in a situation which should not be reassuring at all.'

‘And what alternative do you suggest, Mr Gregson? The total money which we hold on behalf of our depositors - in other words, which we owe to them - is, as you have doubtless discovered in the course of your researches, in the region of five million pounds. If your prudent shareholder were to observe that the loans made by the bank are covered mainly by the amount held on deposit, your prudent depositor might be able to come to the same conclusion, especially as he is in many cases the same person. If he should seek to withdraw his deposit, and if his fellow-depositors should make the same decision at the same moment, the bank would be forced to call in its loans and overdrafts. You know as well as I do, Mr Gregson, that this would cause the ruin of several companies which are in fact likely to become highly profitable from the moment they complete their capital equipment and begin to earn with it. These are local companies and employ labour on a large scale. Their collapse would cause unemployment amongst the poorest members of the community. There would be no possibility then of full repayment of the loans, so at the same moment the collapse of the bank would cause suffering to the wealthier classes as well. We are talking about the ruin of a city, Mr Gregson.'

‘We are talking, sir, about the fraudulent concealment of the true state of affairs in this bank.'

‘I must remind you that we have had this conversation before, although then we discussed fewer details. The situation has not changed since then, except in one way. Because the unfortunate accident at Portishead is widely known, the need to maintain confidence has grown greater. It is only for a limited period of time that some subterfuge is needed. From the moment the Portishead docks open next Spring we may expect Crankshaws to pay off their debt from the profits of their berthing fees. I have already discussed with Mr Crankshaw a suggested timetable for this. His repayments will be on such a scale as to restore liquidity almost overnight. In addition to this, the new ship of the Lorimer Line is almost completed and will be ready for its sea trials in a few weeks. Mr William Lorimer has agreed that payment of interest on his loan, which was suspended during a difficult period, will be resumed from the moment the first voyage is completed. We are speaking of a period of a very few months only.'

‘A crime is no less a crime for being brief in its operation.'

‘A crime, Mr Gregson!' John Junius in anger was not an easy man to face. Only because David felt sure of himself could he stand his ground without trembling. ‘If the small people of Bristol were to lose the five million pounds they have deposited with Lorimer's Bank, would that not be a crime? If the shareholders of the bank were to be asked to pay those five million pounds out of their own pockets, would that not be a crime? I have already referred to the possibilities of bankruptcies amongst our debtors. If you were to force this state of affairs on an innocent community for the sake of your own conscience it would be my opinion that you, Mr Gregson, would be the criminal.' He paused, perhaps feeling that he had gone too far. ‘You may even consider, on reflection, that this is none of your business. You were not the accountant who prepared the annual accounts. You were not the manager who signed them. You were not a member of the board which adopted them.'

David had no answer to this. His first thought had been that he had been sent to London in order that he should not know what was going on. It was just possible, he supposed, that he had been kept out of the way in order that he should bear no responsibility for what he still regarded as a fraudulent manipulation of the figures. The chairman might have been acting in the best interests of his future son-in-law as far as this detail was concerned, just as he claimed to be acting in the interest of the whole community in the larger matter. But David's anxieties were not yet altogether allayed.

‘If the future prospects of the bank are as good as you have told me, would it not have maintained public confidence sufficiently if the board had made a full statement of the facts?'

‘The matter could certainly have been dealt with in that way. But there are always a few people who feel doubt for the first time when they hear that there is an answer to the questions they had not previously thought to ask. A far simpler way, although less direct, is to indicate the board's own confidence in the state of affairs by maintaining the dividend. The directors will be asked, in fact, to raise it to twelve per cent.'

‘And you would expect my signature on that recommendation?'

‘I hope that I have by now convinced you of the value of such a move,' said John Junius.

‘I see.' David saw perfectly. By now he had discovered all he could hope to know about the situation. The chairman had stated a case and all that David himself could do was to decide whether or not to accept it. There was no possibility of persuading John Junius to change his mind by argument. ‘I feel sure you will appreciate, Mr Lorimer, that I need a little time to consider my position.'

‘Consider your position by all means, Mr Gregson. But if, having considered it, you find that you dislike it, I trust
you will have the good sense to remove yourself both from Lorimer's and from Bristol. The information you have acquired has been made available to you on a strictly confidential basis and in anticipation of your future status as a member of my family.' Unexpectedly he smiled. ‘But if I did not trust your good sense and your financial ability, this situation would not have arisen in the first place. I feel sure that upon reflection you will consider that everything has been done for the best. I shall look forward to discussing the matter further with you on Monday.'

It was an ultimatum as well as a temporary dismissal, and not one to be taken lightly. David was thoughtful as he returned to his own desk.

But before Monday came, there was Sunday to be enjoyed. Margaret had promised to reveal her surprise on that day. She came down herself, accompanied by Ralph, to collect him in the carriage, and he noticed the excitement in her bearing at once. Perhaps her dress had a little to do with it, for instead of the demure bonnets or fur-trimmed hoods which she had worn on their previous outdoor expeditions she was wearing a jaunty hat perched on the top of her head with a cascade of feathers falling to the back. It did not precisely suit her, but it gave an impression of independence which aroused his curiosity about the purpose of their meeting.

When David found himself being driven up the long drive of the Croft House estate he assumed it was because the first beneficiaries of the Gentlewomen's Aid Fund were already in residence, and he prepared to express admiration of the speed with which the charity had acted. He was surprised, however, to be taken directly to Lower Croft, and even more startled by the style in which it had been redecorated since his last visit, and by the richness of its curtains and carpets; no other furniture had yet been installed.

‘I feel it is just as well that I am no longer your
treasurer,' he said laughingly. ‘I could hardly approve of such lavishness. Do you think that such good quality furnishings were strictly necessary?'

‘If they were for yourself, would you approve them?' asked Margaret, laughing in her turn as she hung on his arm.

‘Even for myself I would think them too luxurious,' David said. ‘Although certainly I would covet them, for they are exactly to my taste.' He noticed that even Ralph, who had embarked on his duties as a chaperon with considerable sulkiness, was smiling. David looked from one Lorimer to the other for an explanation of the joke.

‘Everything was chosen in the hope that it would be to your liking,' said Ralph. ‘Margaret has been driving us all to distraction in these past weeks. “Do you think he will like that? Will he find this too bright, or too subdued?” As though we could guess if she could not.'

‘Papa has given me the house,' said Margaret. ‘It is to be our home.'

David looked round again, seeing the room this time through different eyes. They were standing at this moment in the smallest of Lower Croft's three reception rooms. It was panelled in oak and Margaret had provided it with a red Turkey carpet and curtains of red and cream brocade. The effect was warm and comfortable; it would make a most desirable study.

‘Your father has acted very generously,' he said.

‘You should not sound as though this surprised you,' said Margaret, teasing him a little.

‘You have to remember that I know him only as a man of business, not as a father.'

‘Yes, of course. I hope that soon you will come to know him and love him as I do. He is the kindest of men, and the most generous. You should see the jewels which he has given to my mother! And his purchase of Lower Croft is a kindness in more than one way, for our charity gains by
the price. The house would not have been of direct use, but the money paid for it has helped us to furnish the larger premises completely. The first three women are already living in Croft House, and their seven children are in the old stable.'

David was less interested in the affairs of the charity than in the fact that Lower Croft was to be the home which he would share with Margaret. He asked to go all over the house again, so that he could look at it in this new light, and persuaded Ralph to explore the garden instead of accompanying them. This gave him his first opportunity to kiss Margaret since the engagement had been approved. It seemed right that this should happen in the place where he had first dared to declare his love. Lower Croft, it seemed, was destined to play a very happy part in his life.

Nevertheless, his contentment was invaded by doubt as he looked into one room after another. He found himself counting the fireplaces which would need to be supplied with coals, the stairs up which hot water would have to be carried. They would need to employ servants. Even a young maid would expect £10 a year: a cook would require £30. He found himself calculating what minimum would be required if Margaret were to live as the mistress of such a house should, and realized quickly that even on his new higher salary he could not support such an establishment himself.

John Junius would have come to that conclusion long ago. He had spoken of making a personal allowance to Margaret, and since he was the one responsible for the purchase of Lower Croft it seemed reasonable to wonder whether the allowance would be a more generous one than David had originally assumed. He frowned a little to himself. The picture of the loving and open-handed father which emerged more clearly with every day that passed did not, as Margaret had realized, square with his own impression of the chairman of Lorimer's. It was something
to be considered privately; but in the meantime Margaret had her own discovery to reveal.

‘You did not tell me that you had succeeded Mr Lynch as the manager of Lorimer's.'

‘I thought the news would come better from your father. To tell the truth, I hardly believed it could happen until I found myself sitting at Mr Lynch's desk.'

‘My father must have an extremely high opinion of your abilities. I am pleased that he has come so quickly to share my own view.'

‘I would like to think so,' said David. ‘But I suspect that he has adopted your opinion out of affection for you. It's possible that if I had been completely incapable I should have been turned away both from you and from Lorimer's, but as it is I owe my promotion far more to you than to my merits as a manager.'

He was amused to see the uncertainty on Margaret's face.

‘Is this right?' she asked. ‘I see that it is convenient, but is it right?'

‘Was it right that your brother William should be given charge of a great shipping line when he was barely out of school?' asked David in return. ‘If you accept the right of a family to own a business, you must accept also its right to value the family as highly as the business in the running of it. No one would be foolish enough to destroy his own livelihood by entrusting it to someone, even a son, who was obviously incompetent. Whether or not it is right for a place in the banking profession to be filled by nepotism, I assure you that it is entirely usual. I am the manager of Lorimer's because the daughter of its chairman has agreed to marry me. The reason for my promotion does not worry me: my concern is to fill the post as though I had acquired it only on my own merits.'

‘I am sure you will do so,' said Margaret.

‘Already you are behaving like a loyal wife,' said David,
laughing, and kissed her again. They moved to a discussion of domestic details and were decorously considering the cost of installing gas lighting - for the house was thirty years old and had not been modernized - when Ralph returned to join them.

It was the need, a little later, to choose a place for Margaret's piano which reminded David of Luisa.

‘Are you still seeing Miss Reni so frequently?' he asked Margaret.

She shook her head.

‘She has left her lodgings, as I believe you already know. I received a note from her to say that she had obtained a residential situation in which the baby would be better cared for. She did not come to say goodbye; nor did she give me her address. I was disappointed that she should break off our friendship in such a way.'