Executive Suite Read Free

rolled his head. “Cash? Yes, cash. What else?”
    Words waited behind Bruce Pilcher’s lips until the split second when he felt the timing was right. “You may have forgotten my mentioning it when I originally suggested the possibility of this deal, but there are ten thousand shares of unissued common stock in the Tredway treasury.”
    â€œThe cash is better,” Steigel said uneasily.
    â€œI wonder.” There was an overtone of cunning in Pilcher’s voice. “Tredway stock is widely scattered. There are no big holdings. With a solid block of ten thousand shares you’d have representation on the board of directors—not too far from a practical working control of the company. You’d have Avery Bullard right under your thumb.”
    Steigel spread his hands, smiling. “Why do I want him under my thumb? My thumb is too old. This year I am seventy.”
    â€œIt wouldn’t be necessary to carry the load yourself,” Pilcher said, elaborately casual. “I’d be quite willing to take over for you—sit on the board—represent your interests.”
    The old man hunched his shoulders and his neck seemed to disappear.
    Pilcher, sensing resistance, pressed on. “A lot could be done with Tredway. Excellent production facilities but inadequate management. The real trouble, of course, is that Bullard’s running a completely one-man show.”
    â€œThat’s bad?” the old man asked blandly.
    â€œOf course. All you have to do is look at the ratio of net return to invested capital to realize that—”
    A flutter of Steigel’s pudgy hand cut him off. “My boy, you are a good lawyer—you know the law. Also you are a good financial man—you know stocks and bonds. I know something, too. I know companies. All my life I watch companies. I want to know why they are a success. Always it is the same answer. You hear, always the same answer—always one man. You remember that, Mr. Pilcher. Always when you find a good company it is what you call a one-man show.”
    â€œPerhaps during the early stages, the period of expansion and development, but when a corporation—”
    â€œYou have the right man, you have a good company. You don’t have the right man, you have nothing.”
    Pilcher hesitated. The size of his salary prompted perpetual diplomacy, yet his ambition forced him on. “Perhaps the point I want to make, Julius, is that a company needs a different management technique during different stages in its development. While it’s going through a period of major expansion, breaking into new ground, there’s no doubt that it takes a two-fisted dictator with a whip in both hands to make things go—an Avery Bullard. However, when that period is over future success depends upon efficiency of operation and maintenance of position. Then you need a different kind of management.”
    A twinkle played around Julius Steigel’s watery eyes. “Nice speech, Mr. Pilcher.”
    â€œIt’s true. Take any of the big corporations. The promoters who put them together weren’t the men who stayed on to make them operate.”
    â€œMr. Bullard don’t do so bad. Last year, four million net after taxes.”
    â€œIt should have been twice that on the volume of business they did.”
    The twinkle broadened to a grin. “Mr. Pilcher, if Tredway is such a bad company why do you say I should take stock instead of the cash? A bad company, it is a bad stock.”
    Pilcher shook his head. “It’s an excellent company—potentially. All they need down there is some modern management—sound organization. Do you realize that Bullard doesn’t even have a second in command? Fitzgerald, who was executive vice-president, died last March and Bullard still hasn’t appointed anyone else to take his place. There are five vice-presidents, all with equal authority.