Shirley, I bought those Cardigan bonds for you
because I thought old Cardigan knew his business and would make the
bonds valuable--make them worth par. Instead, the Cardigan Redwood
Lumber Company is tottering on the verge of bankruptcy; the bonds I
purchased for you are now worth less than I paid for them, and by
next year the Cardigans will default on the interest.
"So I'm going to sit tight and decline to have any more business
dealings with the Cardigans. When their hauling contract expires, I
shall not renew it under any circumstances; that will prevent them
from getting logs, and so they will automatically go out of the
lumber business and into the hands of a receiver; and since you are
the largest individual stockholder, I, representing you and a number
of minor bondholders, will dominate the executive committee of the
bondholders when they meet to consider what shall be done when the
Cardigans default on their interest and the payment due the sinking
fund. I shall then have myself appointed receiver for the Cardigan
Redwood Lumber Company, investigate its affairs thoroughly, and see
for myself whether or no there is a possibility of working it out of
the jam it is in and saving you a loss on your bonds.
"I MUST pursue this course, my dear, in justice to you and the other
bondholders.
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