lions of dollars," said Oldham. "He must be adequately safeguarded. To further develop and even to maintain the efficiency of what he has, he must operate to a large extent on borrowed capital. Borrowing depends on credit; and credit depends on confidence. If conditions are proved to be unstable, capital will prove more than cautious in risking itself. That is elementary. Surely you can see that

point."

"I can see that, all right," admitted Bob.

"Well," went on Oldham, taking heart, "think of the responsibility you are assuming in pushing forward a mere technicality, and a debatable technicality at that. You are not only jeopardizing a great and established business - I will say little of that- but you are risking the prosperity of a whole countryside. If Mr. Baker's enterprises should quit this section, the civilization of the state would receive a serious setback. Thousands of men would be thrown out of employment, not only on the company's works, but all along the lines of its holdings; electric light and power would increase in price - a heavy burden to the consumer; the country trolley lines must quit business, for only with watergenerated power can they compete with railroads at all; fertile lands would revert to desert

"I am not denying the value of Mr. Baker's enterprises," broke in Bob; "but what has a billion and a half of timber to do with all this?"

"Mr. Baker has long been searching for an available supply for use in the enterprises," said Oldham, eagerly availing himself of this opening. "You probably have a small idea of the immense lumber purchases necessary for the construction of the power plants, trolley lines, and roads projected by Mr. Baker. Heretofore the company has been forced to buy its timber in the open market."

"This would be cheaper," suggested Bob. "Much."

"That would increase net profits, of course.

I suppose

that would result in increased dividends. Or, perhaps, the public would reap the benefit in decreased cost of service." "Undoubtedly both. Certainly electricity and transportation would cheapen."

"The same open markets can still supply the necessary timber?"

"At practically prohibitive cost," Oldham reminded.

"Which the company has heretofore afforded - and still paid its dividends," said Bob calmly. "Well, Mr. Oldham, even were I inclined to take all you say at its face value; even were I willing to admit that unless Mr. Baker were given this timber his business would fail, the country would be deprived of the benefits of his enterprise, and the public seriously incommoded, I would still be unable to follow the logic of your reasoning. Mind you, I do not admit anything of the kind. I do not anticipate any more dire results than that the dividends will remain at their present per cent. But even supposing your argument to be well founded, this timber belongs to the people of the United States. It is part of John Jones's heritage, whether John Jones lives in White Oaks or New York. Why should I permit Jones of New York to be robbed in favour of Jones of White Oaksespecially since Jones of New York put me here to look after his interests for him? That's the real issue; and it's very simple."

"You look at the matter from a wrong point of view began Oldham, and stopped. The land agent was shrewd, and knew when he had come to an impasse.

"I always respect a man who does his duty," he began again, "and I can see how you're tied up in this matter. But a resignation could be arranged for very easily. Mr. Baker knows thoroughly both your ability and experience, and has long regretted that he has not been able to avail himself of them. Of course, as you realize, the great future of all this country is not along the lines even of such great industries as lumber manufacture, but in agriculture and

in waterpower engineering. Here, more than anywhere else in the world, Water is King!"

A recollection tickled Bob. He laughed outright.. Oldham glanced at him sharply.

"Oh, the Lucky Lands," said he at last; "I'd forgotten you had ever been there. Well, the saying is as true now as it was then. The great future for any young man is along those lines. I am sure - in fact, I am told to say with authority that Mr. Baker would be only too pleased to have you come in with him on this new enterprise he is opening up." 66 As how?"

But,

"As stockholder to the extent of ten thousand shares preferred, and a salaried position in the field, of course. that is a small matter compared with the future opportunities

"It's cheering to know that I'm worth so much," interrupted Bob. "Shares now worth par?"

"A fraction over."

"One hundred thousand and some odd dollars," observed Bob. "It's a nice tidy bribe; and if I were any sort of a bribe taker at all, I'd surely feel proud an'l grateful. Only I'm not. So you might just as well have made it a million, and then I'd have felt still more set up over it."

"I hope you don't think I'm a bribe giver, either," said Oldham. "I admit my offer was not well-timed; but it has been long under contemplation, and I mentioned it as it occurred to me."

Having thus glided over this false start, the land agent promptly opened another consideration.

"Perhaps we are at fatal variance on our economics," said he; "but how about the justice of the thing? When you get right down to cases, how about the rest of them? I'll venture to say there are not two private timber holdings of any size in this country that have been acquired strictly within the letter of the law. Do you favour general confiscation?"

"I believe in the law," declared Bob, "and I do not believe your statement."

Oldham rose.

"I tell you this, young man," he said coldly: "you can prosecute the Modoc Company or not, as you please — or, perhaps, I should say, you can introduce your private testimony or not, as you please. We are reasonable; and we know you cannot control government prosecutions. But the Modoc Company intends that you play no favourites."

"I do not understand you," said Bob with equal coldness. "If the Modoc Company is prosecuted, we will make it our business to see that every great land owner holding title in this Forest is brought into the courts for the same offence. If the letter of the law is to be enforced against us, we'll see that it is enforced against all others."

Bob bowed. "Suits me," said he.

"Does it?" sneered Oldham. He produced a bundle of papers bound by a thick elastic. "Well, I've saved you some trouble in your next case. Here are certified copies of the documents for it, copied at Sacramento, and subscribed to before a notary. Of course, you can verify them; but you'll find them accurate."

He handed them to Bob, who took them, completely puzzled. Oldham's next speech enlightened him.

"You'll find there," said the older man, tapping the papers in Bob's hand, "the documents in full relating to the Wolverine Company's land holdings, and how they were acquired. After looking them over, we shall expect you to bring suit. If you do not do so, we will take steps to force you to do soor, failing this, to resign!"

With these words, Oldham turned square on his heel and marched to where Saleratus Bill was stationed with the horses. Bob stared after him, the bundle of papers in his hand. When Oldham had mounted, Bob looked down on these papers.

"The second line of defence!" said he.

B

XIX

OB'S first interest was naturally to examine these documents. He found them, as Oldham had said,

copies whose accuracy was attested by the copyist before a notary. They divided themselves into two classes. The first traced the titles by which many small holdings had come into the hands of the corporation known as the Wolverine Company. The second seemed to be some sort of finding by an investigating commission. This latter was in the way of explanation of the title records, so that by referring from one to the other, Bob was able to trace out the process by which the land had been acquired. This had been by "colonizing," as it was called. According to Federal law, one man could take up but one hundred and sixty acres of government land. It had, therefore, been the practice to furnish citizens with the necessary capital so to do; after which these citizens transferred their land to the parent company. This was, of course, a direct evasion of the law; as direct an evasion as Baker's use of the mineral lands act.

For a time Bob was unable to collect his reasoning powers adequately to confront this new fact. His thoughts were in a whirl. The only thing that stood out clearly was the difference in the two cases. He knew perfectly that after Baker's effort to lift bodily from the public domain a large block of its wealth every decent citizen should cry, "Stop thief!" Instinctively he felt, though as yet he could not analyze the reasons for so feeling, that to deprive the Wolverine Company of its holdings would work a crying injustice. Yet, to all intents and purposes, apparently, the cases were on all