Edgar movement is the surprise.

important, however."

It is not

Percy started. A thought struck him with force. He exclaimed that he could explain:

"A secret in the life of Edgar came into my possession two months ago by accident,” he said. "I have the documentary proof of it. A day or two ago a lawyer, representing him, sought me to enter into negotiations for the possession of that proof. I declined to yield it, but declared that so long as Edgar did not interfere with me or mine, I should not use my knowledge to his disadvantage. He has accepted the situation and his proxy is a tender of good faith."

"Possibly and probably," said Mr. Raab, "but my young friend, beware. A club of that kind is a dangerous possession. It reacts on its holder. Do not be tempted to use it except in extreme necessity, and only then most warily. Now as to the direction. You, of course, will go on the Board. Have you other suggestions"

"I had thought of suggesting Doyle Mason?"

"Excellent. Any others?"

"Yes, one more, but it is the consequence of a request I am about to make.

I am also,

you know, the treasurer of the company.

I

wish to be relieved of that office and elect

Frank Elbert, who is now my secretary.

He holds 225 shares, and I think should be on the Board. If this is yielded me, I shall ask no more. The young man is worthy and capable strictly and scrupulously honest. Mark Pollock, of course, has always been on the Board."

Mr. Anstruthers and Mr. Raab hastened to agree to the proposition and Mr. Raab wrote down five names for themselves, including their own.

"Now," said Mr. Raab, "I think, Mr. Dunbar, you should go to Mr. Morton and offer him one name, to give him a director, if only for the purpose of observation."

Percy went away on this mission with a little regret in his heart, for he saw that Cohen-Raab would control, with the balance of power in the hands of Morton's director. But he submitted to the situation, and sought Mr. Morton and preferred the request.

"I had no intention of asking a place on the Board, though now that it is offered me I shall respond to the courtesy by giving you a name," said Mr. Morton. "He will qualify for the place before election. I am very busy to-day and am due at an important meeting now. I have, therefore, only time to say, that I am not seeking control of your company. But, in a week's time, after your elections are

over, I shall have a most important proposition to make to you. Will you hold yourself subject to a call to a conference?"

Percy gave his consent and went away with his curiosity much excited as to the proposition which so important a man as Mr. Morton called most important.

CHAPTER XXI.

DIVISIONS IN THE COUNCILS OF UNIVERSAL

THE evening of the day on which the new board of directors of the Universal had been agreed upon, Percy told Mabel, that he felt as if he had given away a priceless possession. He had had an unquestioned control of his corporation in his hand, yet had permitted Mr. Raab to take it unto himself. The CohenRaab group would have five of the ten directors, he, Percy, three, possibly four, and Mr. Morton's courtesy member would be in the position of making a majority of one against him in a division, while he, under no circumstances, could have a majority.

The next day the directors agreed upon in Mr. Raab's office were chosen. The newly elected board met after the stockholders' meeting and all were present. The courtesy director of Mr. Morton appeared in the person of that financier's private secretary, Mr. Harmon.

A surprise was in store for Percy in the

way in which Mr. Raab assumed the leadership. As the president of the old board, Percy expected to call the meeting to order, but, before he could reach the chair, Mr. Raab aggressively took possession and announced the first business in order, as that of the election of a president. Percy was not certain for a time if there was not a purpose on foot to elect some one other than himself. He recalled that he had taken his re-election for granted and that nothing had been said on the subject. But Mr. Anstruthers quickly

nominated J. Percival Dunbar. Before he was quite over his concern, he was being escorted to the chair by Doyle Mason and Frank Elbert, a committee appointed by Mr. Raab to - do so. It was all so contrary to the usual and simple mode of procedure that Mark Pollock could barely refrain from laughter. Mr. Raab retired and took the vacant seat at the right of the chair, and Percy was enthroned with a frown of displeasure on his brow.

The other officers were chosen, among them Frank Elbert, as treasurer. This done Mr. Raab moved that Samuel Anstruthers, J. Percival Dunbar, Herman Meyer, James Lawrence and Mark Pollock constitute the executive committee, the first named to be chairman.

"It has been the custom, Mr. Raab," said