
statement at its true value. He admits extravagances, but"—Darring's tone eased as his eyes moved about
the silenced group—"he also states a fact when he declares that the heavy expenditures would have been
absorbed by the completion of the project.
"In a nut-shell, gentlemen, Mr. Warlock is free from condemnation. His were errors of omission, not of
commission. He believed—he still believes— that his expenditures would have been justified. We can not
take issue on that point."
Warlock smiled gratefully as he heard these statements. Antagonism faded as the stockholders were
swung by Darring's persuasion. Though their faces remained glum, they gradually began to coincide with
Darring's assertions.
"The real failure of Centralized Power," resumed the executive secretary, "lies in the matter of riparian
rights. As I said a moment ago, Mr. Warlock's error was one of omission. He neglected to obtain full
information on a subject that was vital to the success of Centralized Power.
"A few months ago, certain directors of this company became alarmed by the high expenditures that Mr.
Warlock had instituted. They urged my appointment to the position of executive secretary. I went into all
matters in detail I must say, gentlemen, that Mr. Warlock spared no effort to aid me in my investigation,
even though it was a reflection upon his handling of the company management."
Warlock nodded approvingly. Stockholders, toned down by Darring, looked sympathetically toward the
president. They recalled that Warlock, himself, was a heavy stockholder in the company. He, too, was
losing a fortune.
"Thanks to Mr. Warlock's cooperation," declared Darring, "I was able to make a thorough study of
matters as they stood. Aided by my experience as receiver for certain defunct power companies, I went
deeply into the entire affair. In fact, I started from the beginning. I wanted to learn about the water supply
that the great Centralized dam was to hold.
"Every one else—Mr. Warlock included—had taken the riparian rights for granted. I took nothing for
granted. Almost at the start of my survey, I uncovered the astounding fact that all the streams from which
Centralized Power expected to store up water were controlled by other interests.
"There we had it. A huge dam, half built. Contracts calling for equipment. New property options to be
exercised. All for a project that was doomed to failure because the one needed element, water, was not
obtainable. There was but one course to take. Empowered as executive secretary, I suspended further
construction of the dam.
"Since then, I have been actively engaged in my investigation. I find that we are confronted by an absolute
dilemma. We must either abandon our entire enterprise, calling it a complete loss, or we must buy out all
the companies that hold riparian rights. That would mean a cost that could never be absorbed."
THE truth of Darring's statements seemed obvious. Haggard-faced, the stockholders looked from one to
another and shook their heads.
There was only one who seemed unperturbed by the situation. This was a tall, silent personage who was
seated midway at the table. Turning toward Darring, he spoke.
"Let me introduce myself," he said, in a quiet tone. "My name is Lamont Cranston. I have but recently
returned from abroad, to find that my broker had purchased shares of Centralized Power securities.
Though my holdings are not proportionately large, I am as interested as any one present regarding the
ultimate fate of this corporation. What do you propose, Mr. Darring, as the best solution?"