{\rtf1\ansi \deflang1033\deff0{\fonttbl {\f0\froman \fcharset0 \fprq2 Times New Roman;}{\f1\froman \fcharset0 \fprq2 CentSchbook BT;}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255; \red0\green0\blue0;} {\stylesheet{\fs20 \snext0 Normal;} {\*\ds1 Ward's book;} {\*\cs2 \additive\ul\cf2 SYS_HYPERTEXT;} }{\info{\title Cliff 2}{\author Bill Morgan}{\operator Bill Morgan} } \notabind\margl1440\margr1440\widowctrl\hyphhotz936\ftnbj\fet2\ftnrstpg\aftnnar\hyphauto1\viewkind1\subfontbysize \sectd \ds1\sbknone\pgnstarts92\pgnrestart\pgndec\headery1440\footery1440\endnhere\endnhere\titlepg {\header { \posxr\nowrap \plain \fs24 {\field{\*\fldinst { PAGE }}}\par} \par} {\*\pnseclvl1\pndec\pnstart1{\pntxta .}} {\*\pnseclvl2\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl3\pnlcrm\pnstart1{\pntxta .}} {\*\pnseclvl4\pndec\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl5\pnlcltr\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl6\pnlcrm\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl7\pndec\pnstart1{\pntxta .}} {\*\pnseclvl8\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl9\pnlcrm\pnstart1} {\field{\*\fldinst {\lang4105 SEQ CHAPTER \\h \\r 1}}{\fldrslt }}\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs16 \fs16 }{\plain \fs24 \f1 }{\plain \fs28 \b\f1\fs28 Chapter 8}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab On the following Monday, Sandy came into Cliff\'92s office carrying a stack of papers \softline and looking puzzled. \'93Cliff, there\'92s something wrong here. I need help. I\'92ve been going \softline over the Stores Division local-store accounts and I can\'92t figure it out.\'94\par }{\plain \fs24 \f1 \tab \'93Let me guess,\'94 Cliff replied. \'93We\'92ve got too much money in the store accounts?\'94 \softline She looked at him, amazed. He just grinned and continued, \'93We\'92ve got about \softline seventy-five stores around the country, each with its own account. They\'92re run on an \softline imprest basis at amounts ranging from $2,000 to $5,000. That means they run like \softline petty-cash accounts. The balance we carry on our books is fixed, and we balance it \softline against deposits and payments. I guess the large majority are around the $2,000 level, \softline so our total book balance on the accounts is around $200,000 or so. Am I close?\'94\par }{\plain \fs24 \f1 \tab \'93It\'92s $225,000,\'94 Sandy said, still puzzled.\par }{\plain \fs24 \f1 \tab \'93Okay,\'94 he continued, \'93Each store deposits its receipts into its account each day. \softline We clean out the accounts from here. So I guess you\'92re puzzled because you found about \softline $25 million or so in accounts that are supposed to have about one-tenth of that?\'94\par }{\plain \fs24 \f1 \tab Sandy looked stunned. \'93It was over $30 million! Didn\'92t I do something wrong?\'94\par }{\plain \fs24 \f1 \tab \'93Not at all. You just found the money to pay for recon\-dition\-ing our production \softline equipment and then some.\'94 His smile widened into a grin. \'93Now what do I get for \softline solving your problem? Something nice, I hope?\par }{\plain \fs24 \f1 \tab \'93Sandy, I\'92ve been teasing you. I did a little checking awhile ago and expected about \softline what you found. It works this way: First, the $2,000 level is fixed. The people in \softline accounting who balance our bank statements never look at the absolute numbers, they \softline just recon\-cile them. Our typical store does about $50,000 a week in volume but we only \softline clean out the accounts and bring the money in once a month. Assuming four-week \softline months \'97 and there are 4.3 weeks, actual\-ly \'97 an account with a nominal $2,000 has \softline about $200,000 at the end of the month.\par }{\plain \fs24 \f1 \tab \'93Then with the usual accounting delays, it\'92s probably mid-month in the following \softline month before a check is written to bring the account back to its imprest level. But by \softline that time, there\'92s another two week\'92s deposits, or $100,000. Keep in mind, I\'92m rounding \softline low. First, there are 4.3 weeks, not four, and I\'92m not allowing for clearing times. We \softline could easily be three weeks into the new month before the check hits the bank. So, when \softline our accounting says an account is back to $2,000 it is really still greater than $150,000. \softline How does that sound?\'94\par }{\plain \fs24 \f1 \tab \'93It sounds like I hope our children get their brains from their father, not their \softline mother!\'94 Suddenly, Sandy glared at him. \'93Clifford Fitzpatrick, you are a beast! You \softline can access all my data on your computer screen and probably did. You knew I was going \softline over and over these numbers, and you never said anything! You just wanted to see me \softline suffer. I hate you!\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93Golly!\'94 Cliff said with a grin, \'93You didn\'92t hate me last night. In fact, I would have \softline to say you were... quite affec\-tionate.\'94\par }{\plain \fs24 \f1 \tab She put her nose in the air. \'93That was different. I was so frustrated, I needed some \softline affection. You lured me to your bed under false pretenses! It doesn\'92t count.\'94\par }{\plain \fs24 \f1 \tab He tried to look puzzled but his grin kept breaking through. \'93Lured? Gee, I sort of \softline remember being attacked by a slim young woman who wasn\'92t wearing many clothes... \softline any clothes at all, as a matter of fact. I guess it must have been someone else.\'94\par }{\plain \fs24 \f1 \tab She gave him a light kiss. \'93It had better have been me! Anyway, Clifford \softline Fitzpatrick, back to the mundane. Given the glint I saw in your eye, there\'92s an easy way \softline to handle the problem. What is it, so I don\'92t have to reinvent the wheel?\'94\par }{\plain \fs24 \f1 \tab \'93There are a couple of things we need to do first. Number one: How are we coming \softline on the proposals from the big banks? Number two: I\'92ve got to check with Steve Muller \softline on that West Coast store chain that\'92s interested in buying our units.\'94\par }{\plain \fs24 \f1 \tab \'93As far as the banks are concerned, I\'92ve received proposals from all except one,\'94 she \softline replied. \'93As it stands now, the best offer by far is from Bank of Chicago. They\'92re \softline committing to a $50 million line of credit, as well as being prepared to work with us on \softline our cash management program.\'94\par }{\plain \fs24 \f1 \tab \'93Okay, here\'92s what we\'92re going to do,\'94 Cliff said. \'93We\'92ll get depository transfer \softline checks and shift the store accounts to deposit only. When the store manager makes his \softline deposit, the form he uses combines a deposit slip with a no-signature transfer check. \softline There\'92s a postage-paid envelope he uses to mail the check to a regional clearing bank. \softline The regional bank wires each day\'92s collections to our principal bank. This way the full \softline amount of the deposit is taken out each day. We could even fine-tune it after it\'92s up and \softline running, by running a negative book balance with the deposit banks depending on how \softline good or bad the mail service is. But that comes later.\par }{\plain \fs24 \f1 \tab \'93Miss Treasurer, it sounds like you just picked up about $30 million. There\'92s one \softline more thing. For any local payments the store manger writes checks on a zero-balance \softline account at Bank of Chicago; for payroll, we\'92ll do some\-thing similar, although we\'92ll need \softline local paying banks to cash the paychecks. Several states don\'92t look kindly on what they \softline see as playing games with their voters\'92 paychecks.\'94 He looked at her and smiled. \'93How \softline does it sound to you?\'94\par }{\plain \fs24 \f1 \tab \'93It sounds like we\'92re in some money,\'94 she replied.\par }{\plain \fs24 \f1 \tab Just then there was a knock on the door. Bill Stevens came in with a load of papers. \softline \'93Cliff, I got the information you ask\-ed for. The machine tool company\'92s estimate just \softline came in. It came to just under $6 million! Now where in hell are we going to get that \softline kind of money?\'94\par }{\plain \fs24 \f1 \tab \'93Our esteemed treasurer has already taken care of your problem. The key question \softline now, Bill, is how long is it going to take for repairs, particularly for the five operating \softline machines?\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93Cliff, you\'92re serious about the money, aren\'92t you?\'94 Bill said. Sandy and Cliff both \softline nodded in unison. \'93What do I need to do to get the authority to move ahead? I\'92ve got \softline a couple of my guys working on an investment proposal, but as financial writers, they\'92re \softline pretty good operating people.\'94\par }{\plain \fs24 \f1 \tab \'93What investment proposal?\'94 Cliff asked. \'93Those guys will take more time writing \softline the proposal than it will take to overhaul the equipment! Have you combed through the \softline estimate? Do you have other quotes?\'94\par }{\plain \fs24 \f1 \tab \'93Yes, sir! The estimate is complete. The one we want to accept is from the people \softline who built the machines. We got four other prices, three of which were higher. The \softline fourth is a little lower but we\'92re not satisfied the company knows how to handle the \softline equipment we have. It\'92s at least semi-custom stuff, and I don\'92t think this is a time to \softline learn-while-you-earn, particularly when they would be learning on us.\'94\par }{\plain \fs24 \f1 \tab \'93What do you say, Sandy? Go for it?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab She put her thumb up. \'93Let\'92s do it. Bill, could you get me the name of Micronics \softline financial type? That\'92s the company isn\'92t it? I may be able to save a few more dollars on \softline payment terms. I understand they\'92re about three times our size and very highly rated \softline for credit. You wouldn\'92t have any problem with at least a partial prepayment, would \softline you?\'94\par }{\plain \fs24 \f1 \tab \'93Not at all! Anything that moves the project along faster has to help. I\'92ll be right \softline back.\'94 Bill went back to his office, made a phone call and came back with a slip of paper \softline which he gave to Sandy. She looked at it and went to her office. Thirty minutes later \softline she came back with a big grin on her face. Bill and Cliff were reviewing the staffing \softline proposals: Neither was happy with the picture that emerged. They both looked up when \softline Sandy return\-ed.\par }{\plain \fs24 \f1 \tab \'93I think I just saved between $120,000 and $150,000,\'94 Sandy said proudly. \'93I agreed \softline to a $2 million payment up front, in return for a four-percent credit. Then we\'92re getting \softline 2 percent for cash on the balance. I agreed to pay invoices within ten days by Federal \softline Reserve wire. And I was invited to join the Association of Corporate Treasurers. Bill, \softline the slip you gave me said M. A. Kahn. It turns out the M is for Marcia.\'94\par }{\plain \fs24 \f1 \tab She glared at Cliff and added, \'93And as for you, you have been holding out on us \softline again. It seems Marcia is a fan of yours, having read several cash management articles \softline you wrote... which, of course, you neglected to mention.\'94\par }{\plain \fs24 \f1 \tab The glare changed to a grin. \'93She asked me to give you her very best wishes for a \softline great success at Murphy, and she\'92s delighted we\'92re working with her company again. \softline Incidentally, Bill, she\'92s going to get her people on this right away. It seems there\'92s \softline nothing like a chunk of cash up front to stimulate a supplier\'92s interest. A crew could be \softline here as early as this afternoon. Are you ready for them?\'94\par }{\plain \fs24 \f1 \tab \'93I\'92ll call my guys who are sweating on that investment propos\-al and liberate them. \softline We should be all set. Sandy, I think you ought to know what we\'92ve been talking about. \softline There are going to have to be major work realignments on the shop floor. Over the last few days a junk dealer has been taking away that dead inventory. It\'92ll mean an asset \softline write-down on the balance sheet, but actually, we\'92re way ahead. Incidentally, you\'92ll be \softline getting a big check from the scrap company. We don\'92t have the final numbers, but \softline they\'92ve been hauling it out as fast as they can load trailers. We\'92re getting about 30 tons \softline to a trail\-er, and I suspect we\'92re already over 500 tons. The price per ton isn\'92t bad at all.\par }{\plain \fs24 \f1 \tab \'93The problem, though, is all the quality checkers. Believe it or not, it turns out we \softline really do have two people checking for every person making! It is far worse than anyone \softline thought. Cliff and I agree there will have to be a major layoff. There\'92s just no way \softline normal attrition will take the work force down to where it needs to be.\par }{\plain \fs24 \f1 \tab \'93Cliff, how about if Sandy calls a meeting of the Grievance Committee? Normally, \softline we only have the regular meetings plus any the union asks for. But we have the right \softline to call for one ourselves, although I don\'92t think we ever have.\'94\par }{\plain \fs24 \f1 \tab \'93It makes a lot of sense to me, Bill,\'94 Cliff replied. \'93Sandy, why don\'92t you check with \softline Max and explain what we want to talk about. He may want to bring a somewhat \softline different group of people with him.\'94\par }{\plain \fs24 \f1 \tab Sandy agreed and went off in the direction of the shop floor.\par }{\plain \fs24 \f1 \tab When she returned, Cliff was alone in his office reviewing customer reports and \softline planning on a trip to visit key customers starting with Magna Motors. He didn\'92t like \softline what he was seeing. A major change from the Flood days was that the sales reports read \softline very differently now. It was clear Flood didn\'92t like to receive bad news. As a result, the \softline sales reports used to read as if Pollyan\-na had written them: \'93Every day, in every way, \softline things are getting better and better!\'94 Following the planning meeting, it was clear the \softline sales force had taken the need for accurate market intelli\-gence to heart.\par }{\plain \fs24 \f1 \tab There had been a sudden and dramatic change in the tone of the reports. The one \softline on Magna, particular\-ly, scared him. The list of product complaints was too long, \softline particularly coupled with Murphy\'92s prices, which, while a bit lower than Ajax\'92s, were not \softline low.\par }{\plain \fs24 \f1 \tab Before turning to Sandy and the union, he called Bill Stevens again. \'93Bill, it\'92s Cliff. \softline I\'92m going to visit Magna Motors in the next couple of days. What can I tell them about \softline product quality? How soon will we be able to make promises?\'94\par }{\plain \fs24 \f1 \tab \'93I\'92m not sure, Cliff.\'94 Bill replied thoughtfully. \'93What does Sandy say about meeting \softline with the union? It\'92s largely up to the workers... and I\'92m not confi\-dent about their \softline morale at all!\'94\par }{\plain \fs24 \f1 \tab \'93Last question,\'94 Cliff continued. \'93When will the revamped cafeteria be ready? With \softline the upcoming layoff, it\'92s more impor\-tant than ever.\'94\par }{\plain \fs24 \f1 \tab \'93With a little overtime, we can be all set on Monday. How\'92s that?\'94\par }{\plain \fs24 \f1 \tab \'93That\'92s great, and do it. I\'92ll get back to you after Sandy and I talk.\'94\par }{\plain \fs24 \f1 \tab Sandy was seated in a chair waiting for him to get off the phone. When he hung up, \softline she said, \'93Cliff, they can meet at four this afternoon, and I set it up. I heard you ask about the cafeteria. Could we hold the meeting there? I\'92d like to get the workers as \softline comfortable as possible, because the subject matter is going to be rough.\'94\par }{\plain \fs24 \f1 \tab Cliff called Bill again. \'93Can the cafeteria be in shape for a union meeting at four? \softline We could start with a little show-and-tell. If we can reopen formally on Monday, we \softline ought to be in pretty good shape now.\'94\par }{\plain \fs24 \f1 \tab \'93Can do, Cliff. You might pass the word to the union folks though, so they don\'92t \softline bother to dress up.\'94\par }{\plain \fs24 \f1 \tab Sandy made the call and was back quickly. \'93What are we going to tell them, Cliff? \softline There are some people who are going to be very upset.\'94\par }{\plain \fs24 \f1 \tab \'93I wish I knew.\'94 He smiled at her. \'93Trust me? I don\'92t have the faintest idea what \softline either of us is going to say. I }{\plain \fs24 \i\f1 do}{\plain \fs24 \f1 know the situation we\'92re looking at is real. We\'92re not \softline trying to pull a fast one on anybody. Care to wing it with me?\'94\par }{\plain \fs24 \f1 \tab Instead of answering, she climbed on his lap, put her arms around his neck and gave \softline him a long, lingering kiss.\par }\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 * * *\par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab They were waiting in the cafeteria when the union represen\-tatives came in. \softline Clarence Budd was obviously nervous, not knowing what to expect from the meeting. \softline Bill and Janet Simmons gave a tour of the revamped facility. Since it had been in \softline operation while the renovation was in progress, Janet focused on the be\-hind-the-scenes \softline changes that they were less likely to be aware of. Kaufman liked what he saw and said \softline so. Janet\'92s people had set up a table for them in the back of the room, and they all sat \softline down while Janet went in back to rejoin her staff.\par }{\plain \fs24 \f1 \tab Sandy opened the meeting. After the formal segment, she turned her notes face \softline down on the table. \'93Max, we\'92ve got a problem. Its dimensions just became clear this \softline morning and we wanted you and your people to hear it from us as soon as pos\-sible. This \softline is the Grievance Committee, and I\'92m not even sure it\'92s the right forum. That\'92s why I \softline talked with you this morning about the subject matter.\'94\par }{\plain \fs24 \f1 \tab Sandy had already noticed that the union group had five more people than it had had \softline the previous time. \'93It\'92s not a grievance, it\'92s a layoff. Bill will explain it to you.\'94\par }{\plain \fs24 \f1 \tab Stevens reviewed for the union people the findings of the planning session. They \softline had all seen the stale product being trucked out and a crew from Micronics was already \softline busy dismant\-ling one of the good machines. This brought Bill to individual responsibility and inspections. \'93Guys, believe it or not, we really do have twice as many people \softline inspecting as we have making. There are some companies that brag about things like \softline that. We are no longer among them. What we want to do is make each person \softline responsible for his own quality. We\'92re building up the maintenance staff so we\'92re not \softline going to have the equipment problems we have all been living with for so long. Things \softline should be a lot better for all of us.\'94\par }{\plain \fs24 \f1 \ul0 \tab Then he explained how the statistically-based quality con\-trol system would work, \softline and finally came to the layoffs: \'93What it means is nearly half the work force is looking \softline at a layoff. We can\'92t figure out a productive way to use them. What we\'92ve been doing \softline is living with poor raw-materials utiliza\-tion and terrible scrap rates, combined with lousy \softline delivered quality. The company can\'92t survive that way.\'94\par }{\plain \fs24 \f1 \tab Bill looked very unhappy as he said, \'93How do you want to proceed now?\'94\par }{\plain \fs24 \f1 \tab Kaufman looked around the table at his people. They were visibly upset by the news \softline they had just received. He asked if they could meet alone at the table for a few minutes.\par }{\plain \fs24 \f1 \tab Cliff rose to his feet, followed by the other management participants. \'93Max, we\'92re \softline going to get some coffee and take it out on the floor. Why don\'92t you ask one of your \softline people to come and get us whenever you\'92re ready? There\'92s no rush: Take as much time \softline as you want. Come on folks.\'94\par }{\plain \fs24 \f1 \tab He got a cup of coffee in a paper cup and left followed by the others. He was amused \softline to see Budd scurry off in the direc\-tion of his office. \'93I wonder who he\'92s going to call,\'94 \softline he said. \'93I\'92ll bet it\'92s the estate trustee, Ezra Stiles. Sandy, what about Stiles? We\'92ve \softline still got about five months to go.\'94\par }{\plain \fs24 \f1 \tab \'93I don\'92t know, Cliff. I don\'92t think he\'92s going to like what he hears, but I think your \softline contract is solid. I don\'92t think there\'92s anything he can do.\'94\par }{\plain \fs24 \f1 \tab They walked around the plant and spent some time watching the technicians from \softline Micronics working on a machine tool. Bill talked with the crew chief and came back to \softline report they had found the machine in better shape than they expected so the price would \softline be adjusted downward, at least on the first unit.\par }{\plain \fs24 \f1 \tab Then they just continued to walk around the floor. At one point they were near the \softline cafeteria and could hear the sound of angry voices coming from inside. \'93I don\'92t like the \softline sound of that,\'94 Bill said.\par }{\plain \fs24 \f1 \tab Cliff shrugged his shoulders. He didn\'92t, either, but there was nothing he could do.\par }{\plain \fs24 \f1 \tab Sandy was looking very worried. \'93I\'92m scared,\'94 she said finally. \'93It\'92s taking much \softline too long. They\'92ve been going at it for over an hour.\'94 They walked out to the parking lot \softline in time to see Clarence Budd scurrying towards his car. Cliff noted it was well back in \softline the line indicating he hadn\'92t arrived very early that day.\par }{\plain \fs24 \f1 \tab \'93I don\'92t like to see that, either,\'94 Sandy said. \'93And he doesn\'92t look like he\'92s going \softline home.\'94 She turned to Cliff, \'93I hope your agreement with Stiles is as solid as I think it \softline is!\'94\par }{\plain \fs24 \f1 \tab Suddenly, she grinned at Cliff and added, \'93Just because I own this joint is no reason \softline you need to pay any attention to me, but I think Mr. Budd is about to be numbered \softline among the missing, too.\'94\par }{\plain \fs24 \f1 \tab Bill Stevens had looked at her in astonishment when she referred to her ownership. \softline He knew it, of course, but didn\'92t know Cliff did. \'93How long has this young man known \softline about you, Sandy?\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93Since he was here about a week,\'94 she replied with a smile. \'93Jane spilled the beans, \softline and frankly, I\'92m delighted she did.\'94 She took Cliff\'92s arm in hers and squeezed. \'93I\'92ve \softline developed a close working relationship with my new chief executive officer!\'94\par }{\plain \fs24 \f1 \tab Bill kissed her on the cheek. \'93I noticed the way your eyes glow whenever Cliff\'92s in \softline range. And I always assumed the way he looked at you was a function of a weak mind. \softline But I guess love is like that sometimes.\'94\par }{\plain \fs24 \f1 \tab He looked at the couple standing arm in arm. \'93You know, the Murphys would be \softline very proud. The two of you are going to be taking this company places... very good \softline places.\'94 He put out his hand to Cliff. \'93Congratulations. I assume this is your secret, so \softline of course I\'92ll maintain it. Nevertheless, I think you\'92re a very lucky guy. She\'92s a very \softline special girl. But looking at you, I think you already know that.\'94\par }{\plain \fs24 \f1 \tab \'93Thanks, Bill. I appreciate it. As far as being lucky, I certainly know that, too.\'94\par }{\plain \fs24 \f1 \tab He looked around, saw they were alone, and kissed her soundly. She ignored Bill \softline and wrapped her arms around Cliff\'92s neck and melted into his arms.\par }{\plain \fs24 \f1 \tab Bill tapped them on the shoulder. \'93Someone\'92s coming.\'94\par }{\plain \fs24 \f1 \tab Cliff checked his watch. It was five-thirty; the union people had been meeting for \softline nearly an hour and a half. He saw it was Max, coming alone. The union leader looked \softline like he had been through a fight, and from the sounds they had heard, he had.\par }{\plain \fs24 \f1 \tab He joined the three of them. \'93Can we find a place to sit for a few minutes? I want \softline to rest, brief you and let my guys cool off.\'94\par }{\plain \fs24 \f1 \tab They found a couple of small stacks of lumber to sit on, and Cliff noticed that Sandy \softline didn\'92t even bother to look before she sat down. Obviously she felt this was no time to \softline be dainty.\par }{\plain \fs24 \f1 \tab Max wiped his forehead with his handkerchief and looked at the three of them. \softline \'93Where\'92s Budd? Is he going to be in the next meeting?\'94\par }{\plain \fs24 \f1 \tab Sandy said, \'93No, Max. And \'97 for you, alone \'97 I think he\'92ll soon be numbered \softline among the missing. Does that bother you?\'94\par }{\plain \fs24 \f1 \tab The union leader smiled for the first time. \'93Not at all! It makes it sim\-pler, in fact. \softline I\'92m going to level with you. The people trust Bill and they trust Sandy. Cliff, you\'92re the \softline new kid: We don\'92t know you. On the other hand \'97 and I said this to you at the time \'97 \softline you sure started off right. They\'92re pre\-pared to give you the benefit of the doubt. But \softline they don\'92t trust Budd nearly as far as they can throw him... and at about 250 pounds, \softline that\'92s not very far.\par }{\plain \fs24 \f1 \tab \'93I\'92ve got a deal to offer. It\'92s not a very good deal, but it\'92s the best I could do. I guess \softline you know we had a war in there. It was the old-timers like me against the kids. You \softline know unions: They are political organizations. I\'92m kind of proud of our local. We are \softline pretty democratic. But there are times \'97 like right now \'97 when I wish we weren\'92t. I \softline trust you people. I\'92m convinced we are on the same team.\par }{\plain \fs24 \f1 \ul0 \tab \'93The problem is talking to my people. With seniority rules, they say it\'92s easy for me \softline to trust you. I\'92ve got more than enough seniority to keep my job. The kids don\'92t. They \softline want to hit the bricks. We said the only thing that would get them is the prospect of \softline being the highest-paid people in the unemploy\-ment line.\par }{\plain \fs24 \f1 \tab \'93Mr. Fitzpatrick, there are some of us who have learned to read financial statements, \softline too. We also see the conditions: the lousy product we ship, the machines that are so \softline worn out they can\'92t maintain tolerances. Yes, and the absur\-dity of two people inspecting \softline a single person\'92s work. We know we can\'92t survive that way.\par }{\plain \fs24 \f1 \tab \'93We heard a lot about what went on in the planning meetings. It wasn\'92t supposed \softline to be a secret was it?\'94 Cliff shook his head, no. \'93Everything we heard made sense. If \softline this can be made to work, this company is going to survive and then prosper. It will be \softline a much better place for us to work, and for the next genera\-tion, too. I don\'92t disagree \softline with a single damned thing you\'92re doing. I only wish it had been done years ago.\par }{\plain \fs24 \f1 \tab \'93The kids don\'92t understand, though. Some of them don\'92t know the difference \softline between a real job and make-work. Worse, many of them are economic illiterates. If \softline they see a number on a balance sheet in seven digits or more, it\'92s more money than the \softline Mint. They don\'92t realize how fast it can blow away in a big company. Anyway, you know \softline there\'92s been a fight in there.\par }{\plain \fs24 \f1 \tab \'93The best I could come up with is this: We will allow you to address a general \softline meeting of the membership, any way you want. Give a speech, make a presen\-tation, \softline answer questions, whatever. It\'92s up to you. Then we put it to a vote and see what hap\- pens. What do you think?\'94\par }{\plain \fs24 \f1 \tab Bill Stevens was the first to speak. \'93I guess that\'92s what we\'92ll do then. Max, I\'92m \softline going to impose on you one more time. Who do you think should speak?\'94\par }{\plain \fs24 \f1 \tab \'93Bill, I think you all should. Look, I know there are only a few of us who know who \softline Sandy really is. I\'92m going on what you\'92ve told me. The company\'92s back is to the wall. \softline I believe you. The kids think this is an impersonal big corporation like Magna Motors \softline and Ajax Indus\-tries. I think we just have to let it all hang out. Let them know there is \softline a Murphy that owns this com\-pany. Let me ask you, what are the risks of doing it?\'94\par }{\plain \fs24 \f1 \tab Sandy swallowed hard. \'93Max, when is the meeting? You\'92re putting me on the spot, \softline you know? This is for your ears only: The problem is, I don\'92t control the Murphy stock \softline formally until October 1, and that\'92s almost four months away. Right now, Ezra Stiles \softline votes it as trustee. While you were meeting, Budd scurried out to his car and went off... \softline somewhere. We\'92re pretty sure it wasn\'92t home, and our guess is it was to see Stiles. I \softline know Charles Purcell was a Stiles informant in the company. He and Budd were as thick \softline as thieves, so I wouldn\'92t be surprised if he is, too.\par }{\plain \fs24 \f1 \tab \'93The problem is, we don\'92t know what Stiles }{\plain \fs24 \i\f1 could}{\plain \fs24 \f1 do! Frankly, the answer could be \softline noth\-ing, but it could be a lot. I had my personal lawyer review Cliff\'92s contract. He con\- siders it unbreakable. However, it }{\plain \fs24 \i\f1 can}{\plain \fs24 \f1 be litigated, and that could be just as bad, or \softline possibly worse. If Stiles got some friendly judge to issue a restraining order, even if we ultimate\-ly win in court we\'92re tied up in the meantime. And we can\'92t afford to be \softline distracted right now, let alone tied up. Max, it\'92s the company I\'92m worried about, not me. \softline Can I think about it and talk it over with these guys first?\'94\par }{\plain \fs24 \f1 \tab \'93When is the meeting, Max?\'94 Cliff asked. \'93I would like to get it over with as soon \softline as we can.\'94\par }{\plain \fs24 \f1 \tab \'93How about Thursday evening? I think that\'92s about as soon as we could schedule \softline it. Sandy, please think about what I said. Everyone knows and trusts you. I understand \softline your problem. I just hope you\'92ll be able to find a way.\'94\par }{\plain \fs24 \f1 \tab The group went back to the cafeteria. It was obvious to the three management \softline people that tempers on the union side had not com\-pletely cooled down. They had a very \softline brief meeting with Max formally presenting the union offer of a meeting which was \softline accepted for Thursday evening.\par }{\plain \fs24 \f1 \tab The meeting adjourned, and the three went back to Cliff\'92s office. \'93May I ask Janet \softline to join this seance?\'94 Bill said. \'93It seems to me there are two things to think about: The \softline first is how important Sandy\'92s participation will be to the workers. I think Janet could \softline be a big help. She has a good feel for things like this. The second is Stiles, and neither \softline of us can comment on that one.\'94\par }{\plain \fs24 \f1 \tab \'93It makes sense to me, Bill,\'94 Cliff replied. \'93What do you think?\'94 he asked Sandy.\par }{\plain \fs24 \f1 \tab She nodded agreement and Bill went off to get Janet.\par }{\plain \fs24 \f1 \tab Then Sandy picked up the phone and called Ezra Stiles. As she guessed, he was still \softline in his office. \'93Hi, Uncle Ezra!\'94 she said. Although her voice was bright, she made a face \softline to Cliff. \'93We had an interesting meeting with the union today.\'94\par }{\plain \fs24 \f1 \tab She listened for a few moments. \'93My, you get your information quickly! I\'92m \softline impressed.\'94 She made a thumbs down sign to Cliff as Stiles continued to talk. Finally \softline he stopped speaking and she continued, \'93The reason for the call concerns my \softline inheritance. I haven\'92t said anything, but you know quite a few people know that the \softline Murphy family is only me. Is it supposed to be a secret? I can\'92t recall ever asking you \softline before?\'94\par }{\plain \fs24 \f1 \tab She had earlier motioned to Cliff who had picked up the phone on her desk. When \softline Bill returned with Janet, on impulse he turned on the speaker feature on the phone so \softline all three could listen. The speaker was on as Sandy asked her last question.\par }{\plain \fs24 \f1 \tab \'93No, Sandy,\'94 Stiles replied. \'93There\'92s absolutely nothing in the will or anything else \softline I know of regarding maintaining your inheri\-tance as a secret. It\'92s just something we\'92ve \softline done going back to when you went to work for MacDougal. If I remember correctly, it \softline was your idea, wasn\'92t it?\'94\par }{\plain \fs24 \f1 \tab \'93I think so, Uncle Ezra. As a matter of fact, I\'92m sure of it now. I only wanted to \softline check to see if there was a more compel\-ling reason, and you say there\'92s none at all, \softline right?\'94\par }{\plain \fs24 \f1 \tab \'93That\'92s right, Sandy. There\'92s none at all.\'94\par }{\plain \fs24 \f1 \ul0 \tab She concluded the conversation and hung up as the others came into the room. \'93I\'92m \softline glad you were listening. Did you all hear his reply?\'94 she asked. They all had and said \softline so. \'93I don\'92t know why, but I have a feeling it\'92s important that you all heard it. \softline Particularly Bill and Janet: you\'92re impartial.\par }{\plain \fs24 \f1 \tab \'93That\'92s one thing out of the way, though. I can talk. Now should I? Cliff, I\'92m most \softline concerned about you. I would rather cut off my arm than do anything that would be \softline seen as undermining your author\-ity. What do you think?\'94\par }{\plain \fs24 \f1 \tab \'93None of us have had a chance to talk about what Max said, but personally, I agree \softline with him. I would like you to speak. You\'92re a real person: the owner. I\'92m the boss: \softline hired help. I think they\'92ll listen to me, but I think you can swing them. My vote is for \softline you to speak. Janet, Bill had the excellent idea of asking you to join us. What do you \softline think?\'94\par }{\plain \fs24 \f1 \tab \'93Sandy, I agree with Cliff. Bill told me some of what Max told you earlier. You can\'92t \softline believe how economically ignorant some of these kids are! If an amount is more money \softline than they ever carry in their }{\plain \fs24 \i\f1 pocket,}{\plain \fs24 \f1 for heaven\'92s sake, it\'92s more money than the Mint. \softline \'91The union will take care of me. We have a contract!\'92 As if the contract will magically \softline produce the money to fund it. I think you should.\'94 Janet continued, \'93I have a question, \softline though. What\'92s the risk? Aside from Stiles, I mean. Maybe I\'92m missing something.\'94\par }{\plain \fs24 \f1 \tab Bill spoke up: \'93I think Janet has said it all, and raised the real question: Why not?\'94\par }{\plain \fs24 \f1 \tab Sandy looked at Cliff speculatively. \'93I don\'92t think it will change the way you feel \softline about me. I guess there is no reason. I just had this idea of playing secretary to try to \softline learn how a company works. I guess I ought to see about joining the Junior League or \softline something. Okay, I\'92ll do it.\'94 As she spoke the words she looked very dejected.\par }{\plain \fs24 \f1 \tab Cliff thought the time had come to let the cat out of the bag a little more. \'93Darling, \softline I hope you\'92ll stay. You are not just Assistant to the President, you\'92re the assis\-tant \softline general manager. Everyone sees it. I\'92ve heard it said that we seem to be two people \softline sharing a single brain. I\'92ve had the eerie experience of starting a sentence and having \softline you finish it... in the same words I would have used. Do we have to cripple the company? \softline Can\'92t the Junior League wait awhile?\'94\par }{\plain \fs24 \f1 \tab She had been looking at him as he spoke. By the time he finished, she was beaming. \softline Instead of answering, she put her arms around his neck and kissed him slowly and \softline lovingly. When they finally broke, Janet gave Cliff a kiss and then kissed Sandy.\par }{\plain \fs24 \f1 \tab Cliff was surprised to see tears in the older woman\'92s eyes. She had her arm around \softline Sandy\'92s waist as she looked at Cliff and said, \'93I\'92ve been a widow a long time, Cliff. I \softline remember when Sandy\'92s parents were killed. My God! That was nearly fourteen years \softline ago.\par }{\plain \fs24 \f1 \tab \'93You probably gathered that Sandy grew up at the plant. I tried to be a mother to \softline her, and I still think of her as my little girl. She even used to bring her report cards to \softline me. I\'92ve been waiting so long for the right guy to come along. Cliff, she\'92s really a one-man woman, and I think you\'92re the lucky man. I think of her as my daughter, and I\'92m \softline so proud of her... of both of you.\'94\par }{\plain \fs24 \f1 \tab \'93Mom,\'94 Sandy said after kissing the woman, \'93when are you going to let Bill Stevens \softline make an honest woman out of you? Will you do it if I tell you Cliff and I are going to be \softline married? We are.\'94\par }{\plain \fs24 \f1 \tab \'93Looking at the two of you together, that\'92s certainly no surprise! Cliff, please take \softline care of my little girl.\'94\par }{\plain \fs24 \f1 \tab \'93Little girl, indeed!\'94 Sandy said, feigning indignation. \'93I\'92m a five-foot eight-inch \softline woman!\'94\par }{\plain \fs24 \f1 \tab \'93I certainly will,\'94 Cliff replied to Janet. \'93I guess we\'92re agreed, then. Sandy will give \softline her talk. Now the question is what kind of talk do we give? My thought is we keep it \softline simple. I think anything elaborate \'97 a slide show, for ex\-ample \'97 will make the \softline suspicious ones think we\'92re trying to put some\-thing over on them. I think we do it best \softline by keeping it as simple as possible. What do the rest of you think?\'94\par }{\plain \fs24 \f1 \tab \'93Let\'92s do it!\'94 Bill and Sandy said in unison. Everyone laughed at that point.\par }{\plain \fs24 \f1 \tab Cliff and Sandy went home to Sandy\'92s apartment. Cliff had moved in, but had \softline installed an unlisted phone number of his own. The phone in his apartment used the \softline call-forwarding feature to divert any calls for him to his phone in Sandy\'92s apartment. \softline He used to tease Sandy about \'93his and hers\'94 telephone answering ma\-chines.\par }{\plain \fs24 \f1 \tab In bed that night he noticed Sandy was more relaxed. He asked her about it. \'93I \softline guess it\'92s the fact that more things are coming out into the open, Cliff. I\'92m beginning \softline to understand that, deep down, it\'92s bothered me to have to play a r\'f4le.\'94\par }{\plain \fs24 \f1 \tab \'93Does that extend to playing wife?\'94 Cliff teased.\par }{\plain \fs24 \f1 \tab She ran her hands over his body, and snuggled closer. \'93I can live with that,\'94 he \softline heard her murmur, \'93And I plan to, for a long, long time!\'94\par }\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 * * *\par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Thursday morning there was more news from Max Kaufman. The meeting was \softline scheduled for eight in the evening. And in spite of their differences, the union people \softline had united in keeping the subject quiet. They didn\'92t want the press to hear of it. It was \softline scheduled at a nearby hall the union often used for membership meetings.\par }{\plain \fs24 \f1 \tab Bill, Sandy and Cliff went over to the hall together. Sandy had given a lot of thought \softline to her clothing for the evening, and finally wore a simple beige dress that looked very \softline good on her. Max called the meeting to order. They had agreed that Bill would speak \softline first, followed by Cliff, and ending with Sandy.\par }{\plain \fs24 \f1 \tab Bill explained the situation in the plant quickly and suc\-cinctly. Then Cliff got up \softline and spoke about the layoffs. He finished his speech by saying, \'93I\'92m sorry about this. It\'92s \softline certainly not your fault, but it isn\'92t mine, either. I came in and found the mess. We just \softline can\'92t survive if we try to have one person producing and two people inspecting what he\'92s \softline produced.\par }{\plain \fs24 \f1 \ul0 \tab \'93We\'92re going back to the way things used to be. You people are crafts\-men! You\'92re \softline good. You know how to do it right, and we\'92re up\-grading the equipment to make it \softline possible. Why in hell do we need }{\plain \fs24 \i\f1 two}{\plain \fs24 \f1 people looking over your shoulders? It wasn\'92t that \softline way when John Murphy, Sr., founded this company. And it\'92s not going to be that way \softline when his grand\-daughter, Sandra Donnell, gets control of her stock.\par }{\plain \fs24 \f1 \tab \'93Ladies and gentlemen, I think you all know Sandy. Not many of you know she \softline }{\plain \fs24 \i\f1 owns}{\plain \fs24 \f1 this company! Or at least, two-thirds of it. Sandy?\'94\par }{\plain \fs24 \f1 \tab Sandy got up and went to the podium. Cheers, particularly from the old timers, rang \softline out in the hall. She had no prepared speech, so she just waited for the hall to quiet \softline down. Finally, it did.\par }{\plain \fs24 \f1 \tab \'93Ladies and gentlemen, I\'92m here tonight for two reasons. First, to say that I\'92ve been \softline involved every inch of the way in the decisions Bill and Cliff reviewed with you. I don\'92t \softline like it any more than you do.\par }{\plain \fs24 \f1 \tab \'93But my job is to save this company! We are in tough shape right now. If our \softline competitors had the slightest hint of how bad things are, I would fear for }{\plain \fs24 \i\f1 all}{\plain \fs24 \f1 your jobs. \softline Some of you think owning a company is easy: All the owner does is cash the dividend \softline checks. It\'92s never that easy. I started to work in this plant ten years ago when I was \softline only sixteen. I have a union card. I operated machine tools... although not even Cliff \softline knows that. I\'92ve personally performed just about every job there is in this plant, \softline certainly all the grubby ones. There are a lot of familiar faces here who can tell you that \softline what I just said is true.\par }{\plain \fs24 \f1 \tab \'93Well, what I\'92m telling you now is true, too: We have to have these layoffs. It\'92s why \softline managers get paid what they do. It\'92s not to make the easy decisions. It\'92s to make the \softline tough ones. This is a tough one, believe me. It\'92s got to be. For those of you directly \softline affected, I\'92m sorry. With luck, we\'92ll build this company back to where it ought to be and \softline you\'92ll all be rehired. That will be one of the happiest days of my life.\par }{\plain \fs24 \f1 \tab \'93Until then, let\'92s hope. Let\'92s work to make it happen! Let\'92s work to re-create all \softline those jobs!\'94 There were tears visibly running down her cheeks as she finished.\par }{\plain \fs24 \f1 \tab She stood up straight looking out over the hall as some men rose and started to \softline applaud. The applause spread. Soon, the entire hall was on its feet applauding the \softline young owner. There were no cheers, no whistles. They were applauding someone they \softline felt was on their side.\par }{\plain \fs24 \f1 \tab They had been prepared to spend most of the time fielding questions. Max joined \softline Sandy at the podium and waited as the applause wound down. \'93Are there any \softline questions?\'94 he shouted. There was silence in the hall. \'93This meeting is adjourned!\'94 he \softline declared.\par }{\plain \fs24 \f1 \tab As he held Sandy\'92s arm to guide her back to the others, he could see the tears still \softline rolling down her cheeks. She went into Max\'92s arms and he held her. \'93Sandy, thank you. \softline No one else could have done what you just did. It worked because there are too many \softline guys out there who know you and know it\'92s true. I had forgotten, but now I remember you on your hands and knees scrubbing wash rooms. You did do all the grubby jobs. Did \softline you ever wash dishes in the cafeteria, though?\'94\par }{\plain \fs24 \f1 \tab Sandy smiled through her tears and held up her hands, \'93How do you think they got \softline this awful?\'94\par }{\plain \fs24 \f1 \tab Max took them in his. \'93They look awfully good to me. I guess you recovered.\'94\par }{\plain \fs24 \f1 \tab He looked at the others. \'93We scheduled a vote for tomorrow but I think you won it \softline tonight. Sandy, let\'92s get those jobs back. Okay?\'94\par }{\plain \fs24 \f1 \tab Cliff had loaned her a handkerchief, and she was drying her eyes. She gave him back \softline his handkerchief and put her hand out to Max. \'93It\'92s a deal! Let\'92s make it happen \softline quick.\'94\par }{\plain \fs24 \f1 \tab The vote the next day was a formality. The strike vote was heavily defeated. \softline Subsequently, Sandy got a call from Ezra Stiles. He pointed out to her that she had \softline revealed herself as the Murphy heir, and that was contrary to the spirit, if not the letter, \softline of the will.\par }{\plain \fs24 \f1 \tab Again, Cliff was listening as she responded, \'93Mr. Stiles, that\'92s interesting. I asked \softline you that very question a few days ago. You said there was no problem. It\'92s curious, too, \softline Ezra. There were three other people who heard you tell me that, so I would suggest you \softline not try to make an issue of it.\par }{\plain \fs24 \f1 \tab \'93Incidentally, it has become necessary to terminate Mr. Budd as personnel director. \softline We were planning on giving him six-months pay in lieu of notice. Do you think that\'92s \softline fair enough?\'94\par }{\plain \fs24 \f1 \tab Stiles agreed that it was. He hung up, obviously miffed that his plan had been \softline circumvented.\par }{\plain \fs24 \f1 \tab Cliff pretended to be stern. \'93Miss Donnell, hiring and firing are the prerogatives of \softline the chief executive. Are you presuming to encroach?\'94\par }{\plain \fs24 \f1 \tab Before she could say anything, he had her in his arms, and kissed her. She could feel \softline her knees buckle as she clung to him. When they separated, her eyes were glazed. \softline Although Cliff tried teasing her again, all he got from her was a loving murmur.\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Chapter 9}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Cliff was visiting Jack Crowther, vice-president of purchas\-ing at Magna Motors in \softline Troy, Michigan. The meeting was not going well. Crowther had reviewed the business \softline Magna had given to Murphy and the reasons for it. Then he dropped the bomb: \'93Cliff, \softline I\'92m sorry you came over today. You would have received the word in Milwaukee \softline tomorrow. We\'92re cutting off Murphy as a supplier, effective at the end of your current \softline order. I guess that\'92s in about three or four weeks. I\'92m sorry, Cliff, but your quality is \softline not nearly good enough.\par }{\plain \fs24 \f1 \tab \'93Until now your prices were lower than Ajax, so we still gave you some business. \softline But Ajax has just informed us they will meet your prices and deliver their quality. I \softline can\'92t fight that. Their quality is substantially super\-ior to yours. I appreciate what you \softline told me about the upgrading you have in process, but I\'92m afraid it\'92s too late. Ajax \softline quality is here now. It\'92s a known quantity.\par }{\plain \fs24 \f1 \tab \'93You hope to get there, and frankly, I hope you do, too. We like to have at least two \softline suppliers for important pro\-ducts like those you supply. But I can\'92t live with the level of \softline rejects you\'92ve been shipping me over the last few years.\'94\par }{\plain \fs24 \f1 \tab The two men were alone in Jack\'92s office. Nevertheless, Crowther looked around and \softline then continued in a confidential tone, \'93Cliff, we have done business with Murphy since \softline your company got started. We feel we owe you, so I\'92m going to tell you something that \softline could get me fired. We\'92re alone, so if you even hint at it, I\'92ll flatly deny anything was \softline ever said.\par }{\plain \fs24 \f1 \tab \'93Cliff, did you have something going with George Simpson\'92s daugh\-ter?\'94 Cliff \softline admitted that he did. Crowther nodded and said, \'93Simpson hates you with a passion! \softline We were told that price was not an issue. Ajax would match your price at }{\plain \fs24 \i\f1 any}{\plain \fs24 \f1 level. \softline Then the son of a bitch starts yelling that no one could say goodbye to his daughter.\'94 \softline He looked at Cliff thoughtfully, \'93Did you?\'94\par }{\plain \fs24 \f1 \tab Cliff didn\'92t know what to say. He found Jack to be a very straightforward guy, a guy \softline he would like to work with. Since he knew much of the story anyway, Cliff saw no harm \softline in telling him the rest. \'93Jack, she referred to me as her fianc\'e9. I }{\plain \fs24 \i\f1 never}{\plain \fs24 \f1 pro\-posed \softline marriage \'97 or anything else \'97 to her. Then I met Sandra Donnell. Jack, I\'92m madly in \softline love with her. She\'92s... Well, she\'92s going to marry me.\'94\par }{\plain \fs24 \f1 \tab Then commenting on the cancellation, he added, \'93Jack, I can say just one thing. \softline We\'92re going to beat Ajax on price }{\plain \fs24 \i\f1 and}{\plain \fs24 \f1 on quality. I\'92ve been at Murphy for less than two \softline months. My people know you\'92re right... unfortunately. I\'92m sorry this has happened, but \softline I understand. I hope you\'92ll see me when I come back in a few weeks with guaran\-teed \softline higher quality. Will you?\'94\par }{\plain \fs24 \f1 \tab \'93I sure will, Cliff. Just between us, George Simpson is an insufferable son of a bitch. \softline I don\'92t like him, but more impor\-tant, }{\plain \fs24 \i\f1 we}{\plain \fs24 \f1 don\'92t like him. He does deliver reliable quality, \softline though. But do you hear what I\'92m saying?\'94\par }{\plain \fs24 \f1 \ul0 \tab Cliff nodded, left the office and went to a pay phone. He called Sandy back in \softline Milwaukee. \'93Hon, the roof just fell in. We just lost the Magna Motors business. I don\'92t \softline have to tell you where that leaves us.\'94\par }{\plain \fs24 \f1 \tab There was silence for a few moments. Then Sandy said, \'93Cliff, I\'92ll tell Steve \softline immediately. I guess we\'92ll just have to hustle for business to try to make it up. Darling, \softline I love you and miss you. Please, may I pick you up at the airport tonight?\'94\par }{\plain \fs24 \f1 \tab \'93Honey,\'94 he replied, \'93I would love it. You have the flight information. I\'92ll call you \softline at the office or at home if anything changes.\'94\par }{\plain \fs24 \f1 \tab When Cliff hung up, Sandy called Steve Muller. \'93Could you come in here right \softline away?\'94 He said he\'92d be right there, and moments later was. Meanwhile Sandy was on \softline the phone to the Bank of Chi\-cago, and Charley Adams. \'93Charley, this is Sandy Donnell. \softline I\'92m calling to alert you that we\'92re going to be drawing into our line next Monday. The \softline first take-down will be $25 million. Does that cause you any problems?\'94\par }{\plain \fs24 \f1 \tab \'93Of course not, Sandy. And since you called, I want to thank you again for your \softline business. You and Cliff told me what you would do, and you\'92re doing it precisely as you \softline laid it out. I appreciate it and so does the bank\'92s top management. I also appreciate the \softline courtesy of the phone call. You\'92ll have the $25 million in your account on Mon\-day \softline morning.\'94\par }{\plain \fs24 \f1 \tab She went into Cliff\'92s office and went behind his desk with Steve following. She felt \softline it was time to act like the alter ego Cliff had said she was. \'93Steve, I\'92ve just had terrible \softline news from Cliff: Magna has canceled it\'92s order. The business we ship on the present \softline contract is the end. You know as well as I do that it\'92s over 50 percent of our volume.\par }{\plain \fs24 \f1 \tab \'93Fortunately, we\'92re in an excellent cash position. I just picked up another $25 \softline million from the bank. Along with the savings from the layoffs, the cash management \softline pick up, and the money from the sale of our stores, we\'92re in good shape that way. But, \softline Steve, we\'92ve got to get some new business.\'94 She avoided a grim facial expression as she \softline spoke to him. \'93I wanted to tell you alone. Now what do you want to do? My inclination \softline is to have a council of war in the board room with whichever senior people you have in \softline the office today. Do you agree?\'94\par }{\plain \fs24 \f1 \tab As Steve looked at her, he realized three things. First, she wasn\'92t panicking. \softline Second, she was doing exactly what he figured Cliff would do if he were here. Finally, \softline she owned the place, but most importantly, she }{\plain \fs24 \i\f1 knew}{\plain \fs24 \f1 it. \'93Let me get the guys together, \softline Sandy. Could we meet in thirty minutes? I may be able to reach some more people who \softline aren\'92t in the office right now. And thanks for telling me alone. I appreciate it.\'94\par }{\plain \fs24 \f1 \tab Thirty minutes later Sandy was standing in the board room with an easel pad set up. \softline Steve and Jane came in. Jane told her how sorry she was. Looking into Sandy\'92s eyes she \softline saw that her ex-roommate was quite calm. Jane gave her hand a warm squeeze and took \softline a seat. In a few minutes there were seven senior sales and marketing people in the \softline room.\par }{\plain \fs24 \f1 \ul0 \tab Sandy began with her voice grim, \'93I just received very bad news \'97 the worst \softline possible news. Magna Motors has canceled its con\-tract with us. With the cancellation \softline goes over half our volume. I\'92m sorry to tell you so baldly but there\'92s no way I know to \softline sugarcoat news like this. All we can do is pull up our socks... or our stockings,\'94 she said, \softline smiling at Jane, \'93and get more business. But where are we going to get it?\'94\par }{\plain \fs24 \f1 \tab Jane was the first to speak. \'93Sandy, I have an idea but it\'92s so far out, I need some \softline help. Could we get Bill Stevens and Max Kaufman in here, quick?\'94\par }{\plain \fs24 \f1 \tab Sandy didn\'92t ask questions. She called the shift superin\-tendent and said she needed \softline to see Max Kaufman in the board room immediately. She then called Bill\'92s office. In \softline moments the two men arrived in the room. Sandy quickly briefed them on Cliff\'92s \softline message. Then she turned back to Jane and said, \'93Okay, roomy. You have your \softline audience. What now?\'94\par }{\plain \fs24 \f1 \tab Jane plunged right in. \'93Last week I met with Kenichi Saito, the general manager \softline of the Kaga Motors plant in Michigan, along with his top people. It was a fascinating \softline meeting. At the beginning, I didn\'92t know whether to bow or shake hands, and neither \softline did they. It was odd. As you know, we\'92ve never called on them before. It turns out no \softline other American parts supplier has, either. The result was I didn\'92t see the junior \softline purchasing guy I had an appointment with. Instead, I saw Mr. Saito himself and his \softline entire executive staff!\par }{\plain \fs24 \f1 \tab \'93They were surprisingly pleased to see me. It seems they have two major problems: \softline The first is the distance from their suppli\-ers in Japan. The lead times for ocean \softline transport are murderous. The result is there are a lot of parts shipments that come by \softline air: JAL to Anchorage and then on to Detroit. I don\'92t have to tell you what that costs! \softline The second problem is the very strong Japanese yen. They are producing cars here to \softline avoid getting killed by incur\-ring yen costs and selling in dol\-lars. Net, they\'92re very \softline interested in working with us.\par }{\plain \fs24 \f1 \tab \'93But there\'92s a very big \'91but\'92. They are used to zero defects and just-in-time ship\- ments. The way it\'92s supposed to work is that when they\'92re down to the rings and valves \softline to assemble about two more engines, a truck drives up with more rings and valves. I\'92m \softline exaggerating obvious\-ly, but not by very much.\par }{\plain \fs24 \f1 \tab \'93Frankly, the service and quality they\'92re used to is what Cliff is trying to gear the \softline company to provide to all our cus\-tomers. The question is, Mr. Stevens and Mr. \softline Kaufman, dare we try for it now? I can virtually guarantee us an order. }{\plain \fs24 \i\f1 One! }{\plain \fs24 \f1 Can we \softline produce against it? It\'92s scary. I didn\'92t even tell this to the father of my future children.\'94\par }{\plain \fs24 \f1 \tab She looked at Steve and said plaintively, \'93I\'92m sorry, honey. I was scared. I thought \softline I would put it on the back burn\-er and save it for when we were really doing what we all \softline know we can and should do.\par }{\plain \fs24 \f1 \tab \'93Dare we go for it now? Remember, this is all or nothing. I don\'92t see us getting two \softline trips to the plate. We get a hit or we forget it.\'94\par }{\plain \fs24 \f1 \ul0 \tab Sandy\'92s face had been impassive throughout Jane\'92s recital. When Jane finished, she \softline looked at Bill Stevens. \'93Bill, you heard our key accounts manager. We have a shot at \softline a major new account. What\'92s the status of our production equipment right now?\'94\par }{\plain \fs24 \f1 \tab Bill swallowed hard and said, \'93We\'92ve got six machines in A-1 condi\-tion: better than \softline new. I\'92ll have a seventh next week and could have the eighth the week after. Whether \softline we\'92ll need all ten, I don\'92t know. But Sandy, we have an important friend at Micronics. \softline If we or\-der\-ed new machines, I think we could get two brand new ones in one hell of a \softline hurry. Our statistical quality control is in place \'97 on paper. We\'92ve done it for practice, \softline but I\'92ve been waiting for Cliff before we shift over. I guess that\'92s about it.\'94\par }{\plain \fs24 \f1 \tab \'93Thanks, Bill. Make the move to the full-bore statistical control effective with the \softline next shift. Now, Max, it comes down to the people. It\'92s up to the machine operators. \softline They\'92ve got to do what we all know they can do. They\'92ll be making different valves and \softline rings, but they still power inter\-nal-combustion en\-gines,\'94 she said with a grin, \'93so they \softline can\'92t be }{\plain \fs24 \i\f1 that}{\plain \fs24 \f1 different.\par }{\plain \fs24 \f1 \tab \'93You know, Max, there\'92s a lesson here for all of us. Sales has teed up the ball. The \softline company has upgraded the tools to a produce at a level of precision we haven\'92t had in \softline years. I guess I\'92m saying management has done all it can. Now the question is do the \softline workers want their jobs? If they do what they\'92re capable of doing, I think we\'92ll make it. \softline If they don\'92t, we\'92re in deep trouble. We may fold. We\'92ve just lost over half our sales \softline volume. What do you say, Max?\'94\par }{\plain \fs24 \f1 \tab Max smiled at her. \'93I say what I said a few weeks ago. All the Murphys would be \softline proud... real proud. Would you like to talk to the men, Sandy?\'94\par }{\plain \fs24 \f1 \tab \'93No, Max. Thank you. There are two reasons: First, if anyone from management \softline talks to the people, it has to be Cliff. Second, I don\'92t think it should come from us at all. \softline It isn\'92t an order. It can\'92t be. I think it should come from you and your people in the \softline local.\'94\par }{\plain \fs24 \f1 \tab Max was initially stunned by her reaction. Then he realized the significance of what \softline she was saying. He looked at her with deep respect in his eyes. \'93Thank you, Miss \softline Donnell. You\'92re saying the union represents the workers. It\'92s our job to make them see \softline where their own interests lie \'97 their personal inter\-ests. I like that, Miss Donnell. I \softline sincerely hope we make it. This is becoming a very interesting and a very good company \softline to work for.\par }{\plain \fs24 \f1 \tab \'93Bill, could we have a special break so I can talk to the people right now? I assume \softline Miss Miller is waiting to call Kaga, pending the outcome, right?\'94\par }{\plain \fs24 \f1 \tab Sandy nodded, and Bill called the superintendent. Moments later, the plant whistle \softline blew signaling stop work. Max went down to the shop floor followed by the rest of the \softline people who had been in the meeting. While a portable PA system was being set up, Max \softline hurriedly briefed the other officers of the local before he went to the podium and started \softline speaking.\par }{\plain \fs24 \f1 \ul0 \tab \'93Brothers and Sisters! A few weeks ago we had a meeting. We talked abut the \softline changes that were coming. We heard that under the new arrangement the workers \softline would be responsible for quality, not a bunch of inspec\-tors. We heard the owner, and we \softline believed her.\par }{\plain \fs24 \f1 \tab \'93Today, the company received terrible news. Our contract to supply Magna Motors \softline has been canceled. That\'92s over 50 percent of the company\'92s sales. It was canceled \softline because of very poor quality, by the way \'97 the very thing the new program is designed \softline to address.\par }{\plain \fs24 \f1 \tab \'93We can\'92t blame management. Mr. Fitzpatrick iden\-tified the problems and moved \softline to solve them faster than anyone would have thought possible. He was unlucky. Magna \softline didn\'92t give him the time to get our quality back to where it should be. He\'92s doing all the \softline right things, but he didn\'92t come in here last year or the year before. He only came here \softline a couple of months ago. Nevertheless, he has done what he said he would do: Our \softline produc\-tion equipment is better than it\'92s ever been. Our floor layout makes sense for the \softline first time in years. Now it\'92s up to us. It\'92s }{\plain \fs24 \i\f1 really}{\plain \fs24 \f1 up to us!\par }{\plain \fs24 \f1 \tab \'93We have one of the finest industrial sales organizations in American industry. The \softline company\'92s top salesman... saleswoman, Jane Miller, has developed an opportunity for \softline us. I\'92ve heard you all bitching about the damned Japanese. How they work for coolie \softline wages... even when we know it\'92s not true. The fact of the matter is we\'92re jealous! They \softline build first-rate automobiles. The fit and finish are beautiful. They don\'92t rattle or fall \softline apart. They are very well made is why. We wish we could do as well, and we know \softline damned well we don\'92t.\par }{\plain \fs24 \f1 \tab \'93Jane Miller has provided us with a new opportunity. We have the opportunity to \softline supply rings and valves to Kaga Motors at its plant in Michigan. Now the question is, \softline can we? Are we good enough craftsmen to build precisely to specification every damned \softline time? Are we? The equipment Miss Donnell has given us to work with can. But are we \softline good enough? There\'92s a big risk. I can\'92t stress this too much. We have only one chance! \softline If we blow it, it\'92s gone for good. If we make it, we\'92ve saved the company, saved our jobs, \softline and started on the road to more jobs to rehire our brothers and sisters who were laid off.\par }{\plain \fs24 \f1 \tab \'93Today, I asked Miss Donnell to address you people. She refused. She said the \softline union speaks for the workers. That\'92s what we\'92re here for. It\'92s clear that management \softline has done everything it can. Are we going to work to save our own jobs? Are we going \softline to accept the challenge? Can we perform as well as Japanese workers? Well, }{\plain \fs24 \i\f1 can we? }{\plain \fs24 \f1 \softline What do you say?\'94\par }{\plain \fs24 \f1 \tab There was a moment of quiet as the amplified sound of Max\'92s voice reverberated \softline around the plant. Then a cheer began. It built as more workers picked it up and made \softline it louder. In moments the roof was shaking from the roar of noise.\par }{\plain \fs24 \f1 \tab At that point, Sandy went up to the podium. She took Max\'92s hand and raised it up \softline with hers. She hit the PA\'92s volume control and yelled into the mike, \'93That\'92s the answer \softline I wanted to hear! We\'92re going for it!\'94\par }{\plain \fs24 \f1 \ul0 \tab Max took her around a corner where they could be heard. The cheering continued \softline unabated. \'93Sandy, you are a piece of work. I don\'92t know what to say, except I\'92m very \softline proud to be working for you.\'94 She gave him a quick kiss on the cheek and went back up \softline to the office and the board room.\par }{\plain \fs24 \f1 \tab Everyone was present except Jane who came in a few minutes later and said, \softline \'93Sandy, you\'92re going to have good news for Cliff. I\'92m going over first thing in the \softline morning to work out the details of the first order. Incidentally, they didn\'92t even ask \softline about price. Their concerns are quality and shipment reliability. It\'92s not Magna\'92s \softline volume, but it\'92s a start.\'94\par }{\plain \fs24 \f1 \tab They spent the rest of the afternoon reviewing their posi\-tion customer by customer. \softline By the end of the day, including an estimate of Kaga\'92s initial volume, they had recovered \softline about half the lost Magna volume from other customers. The sales people were set to \softline move the next morning to convert the potential to actual orders.\par }\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 * * *\par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Sandy was waiting at the security barrier when Cliff came up the concourse. Her \softline heart fell as she saw how defeated he looked. She spoke softly, \'93Hi! Looking for a hot \softline date for the evening, mister?\'94\par }{\plain \fs24 \f1 \tab Cliff heard her and immediately perked up. \'93I might be interested. Are you giving \softline samples?\'94\par }{\plain \fs24 \f1 \tab She went into his arms and melted him with her kiss. Passers-by turned and gaped \softline at the tall couple locked in a passionate embrace. Cliff gently eased her away to catch \softline his breath. \'93The sample was okay \'97 no, to be fair, it was better than okay. It was... It \softline was almost good.\'94\par }{\plain \fs24 \f1 \tab He smiled tiredly, \'93It was great! I must have looked about knee-high to a snake\'92s \softline belly coming up the con\-course. At least, that\'92s how I felt. How did you make out after \softline my call?\'94\par }{\plain \fs24 \f1 \tab \'93Make out how? I only make out with you, Clifford, and you weren\'92t even here,\'94 she \softline replied with a grin.\par }{\plain \fs24 \f1 \tab \'93Sandra Donnell, I think I shall strangle you. But I will give you one more chance. \softline I can tell you what you did. You called Steve and told him. Then you had a meeting in \softline the board room with all the sales and marketing people. Then what hap\-pened?\'94\par }{\plain \fs24 \f1 \tab \'93How did you know?\'94 she asked.\par }{\plain \fs24 \f1 \tab \'93Because it\'92s what I would have done if I had been there, so I know it\'92s what you did. \softline Now quit screwing around and tell me what happened.\'94\par }{\plain \fs24 \f1 \tab \'93Can we stop in the bar so I can tell you in a more private setting?\'94\par }{\plain \fs24 \f1 \tab They found a quiet table in the cocktail lounge that was very quiet now that the \softline evening peak for flights had passed and they ordered beers. Sandy told him about Jane\'92s \softline meeting with Kaga and its requirements. Then she told about the meeting with Bill and Max, and finally Max\'92s meeting with the membership. Finally, she told him about the \softline Kaga order and the others that she thought looked pretty good.\par }{\plain \fs24 \f1 \tab Cliff nodded and shook his head. \'93I think it\'92s a good thing you told me here at the \softline airport. This way I can stay and get the next connection to Hawaii. You sure don\'92t need \softline me around the office. Honey, you were brilliant. I love you dearly, but I don\'92t need a \softline beer, I need you... badly! Let\'92s just go home, okay?\'94\par }{\plain \fs24 \f1 \tab Sandy looked worried. \'93Cliff, you\'92re not too mad, are you? All I did was what I \softline thought you would want me to do. Was it all right?\'94\par }{\plain \fs24 \f1 \tab \'93Honey, it was perfect! You know, I just had a thought. Neither you nor Jane are \softline bra-burning women\'92s libbers, although neither of you needs the bras you wear. \softline Neverthe\-less, you are sure advancing the cause of women in business. I\'92m particularly \softline impressed with what Jane did with Kaga. That was absolutely brilliant. Can we go \softline home and go to bed now? Please? Otherwise, I\'92ll check around the airport and see if I \softline can get some better of\-fers.\'94\par }{\plain \fs24 \f1 \tab Sandy had to pull Cliff out of bed the next morning to get ready to go to work. \softline Neither had gotten any sleep to speak of. Whenev\-er one had been about to fall asleep, \softline the other would initiate another round of lovemaking. It had been a wonderful, if \softline sleepless, night.\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Chapter 10}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Early the next week, Cliff had a rare staff meeting to review the company\'92s condition \softline subsequent to the Magna cancella\-tion. He was surprised to find that things were as good \softline as they were. The sale of stores had progressed far faster than he had expected. They \softline had concluded the sale of the western stores and a surprising number of buyers \'97 three \softline \'97 were interested in all or parts of their northeastern properties.\par }{\plain \fs24 \f1 \tab The search for new business had gone remarkably well. They had made up almost \softline half the lost volume. But Cliff realized their success was highly dependent on the \softline success of the Kaga work. With the hoped-for Kaga volume added to the other new \softline business, they would have made up all of the lost Magna volume. Everyone had his \softline fingers crossed on that one.\par }{\plain \fs24 \f1 \tab He turned to Jeff Stover. \'93How do things look to you, Jeff?\'94\par }{\plain \fs24 \f1 \tab \'93Very good!\'94 was the reply. \'93We seem to be cutting raw material waste to the bone. \softline Of course, we\'92re saving big money on personnel due to the staff reduction in production. \softline We hope to cut sales allowances, too. Then we\'92ve done a pretty good job on below-the-line costs, as well. We\'92ve shed some fairly high-priced executive payroll. Finally, \softline Sandy\'92s cash management program has succeeded far beyond anything I would have \softline believed possible. Between the sale of property and the cash freed up there, we may even \softline be cash ahead.\par }{\plain \fs24 \f1 \tab \'93Cliff, the key to this whole thing is the effect it\'92s having on our cost position. When \softline we looked at the business in the planning session we were cost disadvan\-taged against \softline Ajax and had inferior quality. I think we may now be the low-cost produc\-er. I\'92m sure \softline we\'92re lower-cost than Ajax, at any rate. Now the question is product quality.\'94\par }{\plain \fs24 \f1 \tab \'93Yeah,\'94 Cliff said, \'93Product quality. Bill, what about it? How are we doing?\'94\par }{\plain \fs24 \f1 \tab \'93Cliff, we\'92re doing better than I could possibly have hoped. My people have their \softline fingers crossed. We think the statistical system for quality assurance is working, but we \softline can\'92t really tell until the customers use the stuff. But we couldn\'92t have a better attitude \softline on the floor than we do now. What we can\'92t be sure about is whether we can maintain \softline it. There\'92s still a sense of euphoria from the meeting Max ran. The people still seem all \softline charged up.\par }{\plain \fs24 \f1 \tab \'93What we\'92re hoping is that as the euphoria wears off \'97 and it has to \'97 it will be \softline replaced by a sense of accomplish\-ment as they see what they really can do on their own, \softline without a battalion of inspectors looking over their shoulders. If a sense of accom\- plishment comes, that }{\plain \fs24 \i\f1 can}{\plain \fs24 \f1 be maintained. Let\'92s hope!\'94\par }{\plain \fs24 \f1 \tab Bill continued, \'93Cliff, I have a question. You\'92re the one guy around here who doesn\'92t \softline seem to be surprised at our accom\-plishments. We always worked on a basis of \softline redoubling our inspection efforts and clearly that wasn\'92t the way to go: We had the \softline wonderful combination of sky-high costs and lousy deliv\-ered quality. Why did you think \softline this approach would work?\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93First, Bill \'97 your choice of words is apt: \'91You think\'92. I would have used the word \softline \'91hope\'92 myself. However, there are two parts to the answer: First it works elsewhere, \softline and in places requiring less skill than we require. Second, but related to it, is the idea \softline people }{\plain \fs24 \i\f1 want}{\plain \fs24 \f1 to do a good job. We spend a lot of our time working. We do a hell of a lot \softline better if we do something we like, something that gives us satisfaction. I\'92m relying on \softline these people to derive personal satisfaction from a job well done.\par }{\plain \fs24 \f1 \tab \'93You can see that having bunches of people looking over your shoulder can be \softline counter\-productive. You feel that you aren\'92t being trusted. And you know what? You \softline aren\'92t! It\'92s easy for a person to get the feeling that it doesn\'92t matter whether his work \softline is good or bad. Then it gets bad because he doesn\'92t care any\-more. Let\'92s keep our fingers \softline crossed and hope the experiment works.\'94\par }{\plain \fs24 \f1 \tab Then he turned to Sandy and asked, \'93Do you want to summa\-rize? How does the \softline position of the company look to you?\'94\par }{\plain \fs24 \f1 \tab \'93I think it looks about as good as it possibly could under the circumstances. In fact, \softline based on what Jeff says, I\'92m going to pay down the $25 million we borrowed from the \softline bank. Strangely enough, Charley Adams will love us. There\'92s nothing quite like having \softline a customer paying interest on a loan when the money never even left the bank. From \softline the sound of it we lost revenue but reduced our expenses even more. Is that right, Jeff? \softline Do you think profits may be ahead of where they were?\'94\par }{\plain \fs24 \f1 \tab Jeff nodded and smiled. \'93That\'92s exactly the way I see it, Sandy. I didn\'92t really say \softline it very clearly because I know what a shock the loss of the Magna business was. And I \softline also know how tenuous our position is with Kaga. But the fact is right now I believe our \softline profits are up. If we lose out on the Kaga order, though, things could change for the \softline worse in a hell of a hurry.\par }{\plain \fs24 \f1 \tab \'93Also important is how well we do with our stores in Southern Region. We\'92re \softline spending a lot of money on warehousing, new inventory and store upgrading. Basi\-cally, \softline that\'92s marketing spending. As Cliff stressed in the meeting, the reason Market \softline Penetration as a strategy is con\-sid\-ered very high risk is the activities have little or no \softline salvage value. If we can\'92t build volume through the stores as a result of improving their \softline physical appearance, the money is essentially down the drain.\'94\par }{\plain \fs24 \f1 \tab \'93Good point, Jeff,\'94 Cliff said. \'93Steve, with your permis\-sion and Jane\'92s, I would like \softline to visit Kaga Motors. What\'92s the general manager\'92s name? Saito?\'94\par }{\plain \fs24 \f1 \tab \'93That\'92s right,\'94 Jane responded. \'93I\'92m sure he would be very pleased to see you. I\'92ll \softline set it up. When would you like to go?\'94\par }{\plain \fs24 \f1 \tab \'93When is the first trial order scheduled to be shipped?\'94\par }{\plain \fs24 \f1 \tab \'93Tomorrow night to arrive at ten o\'92clock Thursday morning. You\'92re not thinking...\'94\par }{\plain \fs24 \f1 \tab \'93I sure am thinking,\'94 Cliff smiled. \'93What do you think about the idea of being at \softline their plant to welcome the first shipment of Murphy Manufacturing\'92s parts? Would Mr. \softline Saito allow it?\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93I\'92m almost certain he would,\'94 Jane replied. \'93In fact, I think he would consider it \softline an honor. You know how so many Japan\-ese in the States feel that they aren\'92t really \softline welcome? I think he would be very pleased. Can I call him now?\'94\par }{\plain \fs24 \f1 \tab \'93Please do! Let\'92s see if we can make this work.\'94\par }{\plain \fs24 \f1 \tab Minutes later Jane returned to the room grinning from ear to ear. \'93Mr. Saito asked \softline me to say that he would be most honored if the president of a major United States auto \softline parts supplier condescended to visit his humble facility. And Cliff, that\'92s more or less \softline a direct quote. He was so excited, he referred to welcoming Fitzpatrick-san to his plant. \softline Boss, you started me thinking. Would it be overkill if we tried to get a banner made or \softline something. You know, \'91First Shipment of Murphy Manufacturing Company Parts to \softline Kaga Motors, USA\'92. Something like that?\'94\par }{\plain \fs24 \f1 \tab Bill Stevens jumped on the idea. \'93I think it\'92s great. And I have an idea I want to \softline bounce off Max Kaufman if you approve the banner idea.\'94 Cliff grinned at his colleagues \softline and was delighted at their enthusiasm. Plans went forward, although Bill never told him \softline what he wanted to see Max about.\par }{\plain \fs24 \f1 \tab It was about six-thirty in the evening when Cliff and Sandy walked through the plant \softline on their way to his car. Sandy had decided that everyone knew where they were sleeping \softline and no one seemed to care, so her contribution to the economy drive was her gas money. \softline They both felt good about the way the whole facility was starting to look. Not only were \softline the production machines spark\-ling after their overhaul, but getting rid of dead inventory \softline had freed up a lot of space. They had noticed that a lot more attention was being spent \softline on housekeeping to make the place look like the precision manufacturing facility it was.\par }{\plain \fs24 \f1 \tab Then Cliff was sur\-prised to see working lights still on in the area of one of the \softline produc\-tion machines. They walked over and found Bill Stevens with a machine \softline operator.\par }{\plain \fs24 \f1 \tab Bill was looking at a bright set of rings he was holding carefully in his hand. \'93Cliff, \softline I don\'92t think you\'92ve ever met Jim Wozlowski. He\'92s one of our machinists producing \softline rings. He talked to his supervisor, and I\'92m really glad he did. Jim has been working on \softline the Kaga order. He has the idea that they could get better engine performance if they \softline used a different metallur\-gical formulation for the ring metal. This is another benefit of \softline your talk, Sandy. Everyone took it to heart, and the communication both ways has never \softline been better.\par }{\plain \fs24 \f1 \tab \'93At any rate, Jim has been working on his own time to machine a set of rings to \softline Kaga specs, but using the different metal. Our tech people agree with Jim, by the way. \softline Of course, we don\'92t know nearly enough about the internal arrangement of their pistons, \softline operating temperatures, pressures and so forth. We produce to a specification, but we \softline seldom know how the speci\-fication was derived. But what do you think?\'94\par }{\plain \fs24 \f1 \tab Cliff looked at Sandy and winked, then looked back at Bill and Jim. \'93I think it\'92s \softline great. Jim, you probably know I\'92m going over to meet the first shipment when it arrives \softline at Kaga. Do you suppose we could get a fancy box \'97 you know, like a jewelry box? \'97 and put a set of rings in it? I would like to present it to Mr. Saito. And Jim, let\'92s enclose \softline a card. I would like you person\-ally to sign it. Sandy, could you help with the wording?\'94\par }{\plain \fs24 \f1 \tab As they continued their walk to the car, he said, \'93It\'92s working. Damn it! It\'92s \softline working! Let\'92s pray it\'92s good enough.\'94\par }\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 * * *\par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Jane and Cliff drove up to the entrance of Kaga Motors in a rental car at nine-thirty \softline Thursday morning. He didn\'92t know what to expect except he knew they were most \softline welcome. When they arrived at the main entrance to the plant office, they found Mr. \softline Saito and all his senior plant staff waiting outside to greet them. There followed the \softline usual East-meets-West fumbling. Neither group was quite sure whether to bow or shake \softline hands so they ended by doing a bit of both. The one constant was the very rapid dealing \softline of business cards among the people.\par }{\plain \fs24 \f1 \tab When they finished, Mr. Saito led them up to his office. Cliff had done business in \softline Japan, and it was easier when there were only three of them in Saito\'92s office. He bowed \softline gravely to Mr. Saito and presented him with a box wrapped in gay floral paper.\par }{\plain \fs24 \f1 \tab At the same time one of the general manager\'92s senior assistants appeared with two \softline boxes which he placed on his boss\'92s desk. Saito \'97 he informed Cliff his name was \softline Kenichi, so please call him Ken \'97 opened the box and saw the set of beautifully \softline machined rings. Neatly folded on top was the letter Jim Woz\-lowski and Sandy had \softline prepared. He unfolded it, care\-fully read it through, and then read it again. Then he \softline carefully studied the rings without touching them. Finally, he presented gifts to Jane \softline and Cliff \'93as a small remembrance of your visit.\'94\par }{\plain \fs24 \f1 \tab After they took seats Saito looked thoughtful and said, \'93Mr. Fitzpatrick, I am very \softline impressed with this gift. Would it be possible to get eleven more sets for testing? They \softline would be ship\-ped by air to our research center in Japan. As you may know, we work \softline differently with our suppliers than your auto companies do here. We look for \softline commitment. We look for ideas. It never occurred to me that your people could possibly \softline care enough about us to think seriously about our requirements.\par }{\plain \fs24 \f1 \tab \'93I was wrong. Mr. Woz... Wozel... Jim... thought a great deal. He is apologetic that \softline he doesn\'92t know our pressures, tempera\-tures, and so forth. I will make sure you have \softline a full set of our technical data to bring back with you to Milwaukee. This counts for a \softline very great deal with us. Thank you very much, and please thank him.\'94\par }{\plain \fs24 \f1 \tab Just then they heard the loud squawk of a diesel truck\'92s air horn. Cliff glanced at \softline his watch, and noticed Saito did, too. They both smiled. It was exactly ten o\'92clock as the \softline truck with the big red Murphy banner rolled into the yard.\par }{\plain \fs24 \f1 \tab Saito smiled and said, \'93Score another for your company, Mr. Fitzpat\-rick. It\'92s clear \softline you understand the way we work. Ten o\'92clock is ten: not eleven, but not nine-thirty, \softline either.\'94\par }{\plain \fs24 \f1 \tab \'93Ken, I would appreciate it if you would call me Cliff. Everyone does. Now shall we \softline go and inspect the shipment?\'94\par }{\plain \fs24 \f1 \ul0 \tab It was obvious to Jane and Cliff that things were going as well as they possibly could \softline for them at Kaga. Clearly, the things the Murphy people had done were being received \softline in the spirit in\-tended. When they reached the truck, Cliff was amazed to see Max \softline Kaufman standing with the driver.\par }{\plain \fs24 \f1 \tab He presented him to Saito. \'93Mr. Saito, it\'92s my pleasure to introduce you to Mr. Max \softline Kaufman. Mr. Kaufman is president of the union at Murphy Manu\-facturing. Frankly, \softline I have no idea what brings him over today. Max, this is Mr. Kenichi Saito, general \softline manager of the Kaga Motors plant.\'94\par }{\plain \fs24 \f1 \tab Cliff and Jane watched in amazement as Max made a deep bow to Mr. Saito who \softline gravely returned it. Max then took a large scroll and presented it to Saito who untied \softline the ribbon securing it and unrolled it. Cliff was in a position to see it over Saito\'92s \softline shoulder. It was a handsomely prepared scroll that said the workers at Murphy \softline Manufacturing believed they were as dedi\-cated to quality as they knew the people at \softline Kaga were. Accord\-ingly, each of the production workers involved in the trial order from \softline Kaga had signed below, indicating his personal dedica\-tion to producing the quality he \softline knew Kaga expected and needed.\par }{\plain \fs24 \f1 \tab Meanwhile, the truck had backed up to the receiving dock and the unloading had \softline begun. Cliff saw quality control inspectors selecting random boxes to be opened for \softline checking. This was the moment of truth. Ken asked Max to join them and asked if he \softline could give them a tour of the plant, an invitation they gladly accepted. First, Cliff was \softline interested, and second, it beat sitting and chewing his nails while waiting for the \softline inspection report.\par }{\plain \fs24 \f1 \tab The facility was as clean, neat and organized as Cliff had expected it would be. \softline Finally, they went back to Saito\'92s office. There was a piece of paper in the center of his \softline desk: the verdict. Saito studied it carefully. \'93The shipment meets our specifications. \softline Thank you very much.\'94\par }{\plain \fs24 \f1 \tab He then reviewed the report with Cliff and Max. It met spec... but just. They talked \softline about ways to improve, and Cliff was pleased to see Max was taking very careful notes. \softline Afterward, they went to the cafeteria to eat. As at Murphy, everyone in the facility ate \softline in the same place.\par }{\plain \fs24 \f1 \tab They returned to Ken\'92s office and prepared to leave. Then Saito asked if Murphy \softline had a fax machine, and Cliff said they did and gave him its number. He said it was the \softline preferred method of communication in his company.\par }{\plain \fs24 \f1 \tab Finally he said, \'93Thank you, Cliff, and you, Max, for coming over. It is premature, \softline perhaps, but not by much, for me to tell you that I sent a fax to Japan recom\-mending \softline that Murphy Manufacturing be accepted as a regular supplier. Jim\'92s rings are now on \softline their way by air to Japan. I will file a full report with my head\-quarters. I will tell you, \softline though, they will be very impressed. The new metallurgy, whether it works or not, \softline counts for a great deal. It demonstrates you are very interested in us.\par }{\plain \fs24 \f1 \ul0 \tab \'93I gather, Cliff, you did not know Max was coming or that the workers prepared the \softline lovely scroll for us. That, too, says something very important to me and to Kaga Motors. \softline It says that your people care about us as customers. It says they care deeply about \softline Murphy, as well. It is a tribute to you and your management.\par }{\plain \fs24 \f1 \tab \'93Finally, may I congratulate you on being represented by Miss Miller? She has done \softline the best job of any salesperson calling on us in terms of taking the time to understand \softline our requirements and the reasons for them, and, in turn communicating these require\- ments in Milwaukee. We hope she will continue to call on us. Thank you so much for \softline coming. May I visit you, someday, in Milwaukee?\'94\par }{\plain \fs24 \f1 \tab Cliff assured him he would be welcome at any time, and they went back to the car. \softline When they were driving toward the airport, he was the first to speak. \'93Are you taking \softline the plane? If the wind weren\'92t in the wrong direction, the way I feel I could just float \softline back to Milwaukee. Jane and Max, you\'92ve just saved the company. That\'92s all I can say.\'94\par }{\plain \fs24 \f1 \tab Jane smiled at them both. \'93Max, do me a favor? Give me a big whack on the back \softline to start me breathing again? Cliff, that has to go down as the best day of my business \softline career, bar none, and at the same time, the most nerve wracking. I feel like laughing and \softline crying at the same time... and if either of you even }{\plain \fs24 \i\f1 thinks}{\plain \fs24 \f1 \'91emotional woman,\'92 I\'92ll kick \softline you in the shins!\'94\par }{\plain \fs24 \f1 \tab \'93I know just how you both feel,\'94 Max said. \'93You know, what came to my mind was \softline when my wife had our first child. It was great when it happened, but it was agonizing \softline right before!\par }{\plain \fs24 \f1 \tab \'93I want to say something else: Cliff, I was right about you... more right than I knew. \softline You came into Murphy and did all the right things from the very begin\-ning. Even some \softline things, like chopping the product line, that scared hell out of me. The boys and me... \softline Well, we know about your contract. We know it has per\-formance requirements in it, \softline although we don\'92t know what they are.\par }{\plain \fs24 \f1 \tab \'93Frankly, we don\'92t give a shit. I also know you and Sandy have been coming and \softline going in the same car, and I don\'92t think it\'92s a car pool. We do care about that. We love \softline it! With you two together, we really feel good about Murphy. Damn, it feels good to win \softline one once in a while!\'94\par }{\plain \fs24 \f1 \tab \'93Max,\'94 Cliff said, \'93Let\'92s drink to that! I\'92m buying when we get to the airport.\'94\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Chapter 11}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Three weeks had passed, and they were good ones for Murphy Manufacturing. As \softline expected, two days after the visit to Kaga, Cliff received a firm order for production \softline quantities. Quality of production was even better as the crew got used to the new \softline system. Finally, the previous Friday they had heard that the preliminary tests on the \softline new piston rings were very promising.\par }{\plain \fs24 \f1 \tab Cliff had asked for the PA system to be set up as it had been when the Kaga order \softline was first discussed. He addressed the workers this time. \'93Folks, I have a letter I want \softline you all to hear. It\'92s from the managing director of Kaga Motors in Japan. He is writing \softline to inform me we have been selected as the first American auto parts supplier to be \softline designated a preferred provider for their company. He continues by saying this selection \softline is based on a number of criteria:\par }{\plain \fs24 \f1 \tab \'93The first is product quality. The trial quantity met their specifications. The first \softline production shipment }{\plain \fs24 \i\f1 exceeded them}{\plain \fs24 \f1 ... substantially. The second is timely delivery. He \softline says they do not get as good service from their long-term suppliers in Japan. But the \softline final criterion is attitude. Mr. Saito, general manager in Michigan, sent to company \softline head\-quarters near Tokyo the scroll you people signed and sent with the first shipment. \softline That\'92s dedication, the very best possible attitude. He wants me to tell you that he and \softline his fellow directors in Japan are most impressed.\par }{\plain \fs24 \f1 \tab \'93Finally, and this is the real reason for calling you all togeth\-er. I am now quoting \softline from his letter: \'91Please extend our deepest appreciation to Mr. Jim Wozlowski of your \softline company. Preliminary tests indicate the rings Mr. Wozlowski fashioned may be signif\- icantly superior to the ones we are now using. My technical people express their \softline astonishment that Murphy Manufac\-turing could possibly have workers who are so good \softline and so dedi\-cated that they can improve on our design without even knowing the \softline technical specifications of our engine. Nevertheless, he seems to have done so.\par }{\plain \fs24 \f1 \tab \'93\'91Mr. Fitzpatrick, this indicates dedication to your company\'92s interests and to ours. \softline This is the finest possible attitude. Needless to say, if Mr. Wozlowski\'92s ring is adopted, \softline Murphy Manufacturing will be the preferred worldwide supplier for them. In addition, \softline we will, of course, pay you a royalty on all rings we use made from that design produced \softline by any other manufacturer.\'92\par }{\plain \fs24 \f1 \tab \'93Folks, all Miss Donnell and I can say is, thank you. You are doing what you set out \softline to do. Incidentally, where\'92s Jim Wozlow\-ski?\'94 Jim waved his hand. \'93What are you \softline standing there for, for chrissakes? Your plane for Orlando leaves in only three hours, \softline and I hope to hell you\'92re not going to go looking like that. As a very small expression of \softline the company\'92s apprecia\-tion, we have first-class tickets for you and your entire family to \softline Florida and an all-expense paid trip to Disney World. And Jim, you\'92ll get a signifi\-cant \softline piece of any royalties the company receives. Now get the hell out of here!\'94\par }{\plain \fs24 \f1 \tab There was a great cheer as Jim ran out to his car.\par }{\plain \fs24 \f1 \ul0 \tab \'93Before you all go, there\'92s just one more thing I wanted to say. Miss Donnell and I \softline recognize that dedication is a two-way street. Jim demonstrated it, and we\'92re trying to \softline reward him for it. The same thing applies to all of you. Once again, thank you all. \softline You\'92re really doing the job I knew you would!\'94\par }{\plain \fs24 \f1 \tab Sandy was sitting in his office and they were drinking their coffee. \'93I guess the \softline honeymoon\'92s really over,\'94 Cliff sad sadly, \'93when a guy has to subsist on company coffee \softline instead of a hearty breakfast.\'94\par }{\plain \fs24 \f1 \tab Sandy glared at him while trying to hide a grin. \'93If you were closer I would kick you, \softline and you know where. First, it takes a damned crane to get you out of bed, and then you \softline sexually assault me in the kitchen while the eggs burn. Then you have the gall to \softline complain about no break\-fast. The nerve!\'94\par }{\plain \fs24 \f1 \tab Cliff tried to look innocent. \'93Now wait a minute! The reason it takes a crane is you \softline sexually attack me all night long! And maybe I wouldn\'92t assault you in the kitchen if \softline you had more clothes on... if you had }{\plain \fs24 \i\f1 any}{\plain \fs24 \f1 clothes on!\'94\par }{\plain \fs24 \f1 \tab They both grinned and Sandy stuck out her tongue at him. He changed the subject. \softline \'93How do you feel about coming down to Charlotte with me? There are some bankers \softline down there to see, and I know JL and his boys would love to see you, too. This is the \softline second big bet. What do you think about the prospects for our renovated auto parts \softline business?\'94\par }{\plain \fs24 \f1 \tab \'93I have my fingers crossed,\'94 she replied. \'93But I would love to, even though Char\-lotte \softline can get pretty hot this time of year. Do you want me to make plans to come with you?\'94\par }{\plain \fs24 \f1 \tab \'93I sure do! We might as well both be hot. Sandy, this is a stupid question, I know, \softline but do you play golf?\'94\par }{\plain \fs24 \f1 \tab \'93I thought you would never ask! Yes, I play golf. And God knows, it took you long \softline enough to get around to it.\'94 She grinned and added, \'93Are you thinking of taking up an \softline }{\plain \fs24 \i\f1 outdoor}{\plain \fs24 \f1 sport? I thought you were... Never mind what I thought you were. But why do \softline you ask?\'94\par }{\plain \fs24 \f1 \tab \'93Because they take their golf seriously down there, and JL asked me to bring my \softline clubs. Do you have any to bring? If not, we can always rent you some.\'94\par }{\plain \fs24 \f1 \tab \'93Yes, smarty, I have clubs. I also have a handicap. I will also beat the pants off you. \softline Want to bet?\'94\par }{\plain \fs24 \f1 \tab \'93Sure, I\'92ll bet. What\'92s your handicap, by the way?\'94\par }{\plain \fs24 \f1 \tab \'93I\'92ll tell you when we play. I don\'92t want to frighten you off too soon.\'94\par }{\plain \fs24 \f1 \tab They caught a United flight to Charlotte and were met by JL at the airport. Jeff \softline Stover was right. This was a big risk. In the planning session JL Wilson and his people \softline sounded like they knew the business and knew their market. Everyone would soon \softline know if they really did. With the Kaga business, Murphy was out of the tank. But if the \softline Southern Stores project really bombed, they would be right back in it again. They went \softline to claim their baggage and JL was surprised that there were two golf bags.\par }{\plain \fs24 \f1 \ul0 \tab \'93Sandy Donnell, you\'92ve been holding out on me again!\'94 JL said, \'93I never knew you \softline played golf.\'94\par }{\plain \fs24 \f1 \tab \'93Come on, JL!\'94 she replied with a grin. \'93A girl\'92s got to have }{\plain \fs24 \i\f1 some}{\plain \fs24 \f1 secrets.\'94\par }{\plain \fs24 \f1 \tab They went to the hotel, checked in, and then went out to one of the renovated auto \softline parts stores. It was a unit Cliff had seen on his first visit but now he didn\'92t recognize it. \softline The lighting had been vastly improved, and was very effective after dark, giving the store \softline a bright, attractive appearance. JL told them they had extended the hours of operation \softline and were using numbers of permanent part-time people to handle it. They walked in \softline and were surprised at the weekday evening activity.\par }{\plain \fs24 \f1 \tab \'93How long has this place been reopened?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab \'93We re-opened ten days ago,\'94 JL replied. \'93It sure looks good to me. How does it \softline look to you?\'94\par }{\plain \fs24 \f1 \tab \'93It looks like you\'92re doing a land-office business. Sandy, what do you think?\'94\par }{\plain \fs24 \f1 \tab \'93Hell,\'94 she said, \'93I\'92m only the treasurer. What do I know? JL, how are the \softline numbers? Or do you know yet?\'94\par }{\plain \fs24 \f1 \tab \'93Ma\'92am, they are just great! One of Kevin O\'92Rourke\'92s guys was down and set up our \softline accounting system on one of those per\-sonal computers. It works great! We\'92re running \softline 300 percent of last year. How does that sound?\'94\par }{\plain \fs24 \f1 \tab \'93That sounds great to me,\'94 Sandy replied, \'93but as I said, I\'92m only the treasurer. \softline What do you think, Cliff?\'94\par }{\plain \fs24 \f1 \tab \'93Any time sales increase by a factor of three, I\'92m in favor.\'94 he replied. \'93What do we \softline do now?\'94\par }{\plain \fs24 \f1 \tab \'93How would you like some real Carolina barbecue? It\'92s not like anything you ever \softline get up North. Care to try?\'94 JL asked.\par }{\plain \fs24 \f1 \tab They both agreed, and JL took them to a family barbecue restaurant. JL ordered for \softline the table. What they received was barbecued pork, not the spare ribs they had expected. \softline There were a bunch of other dishes with it. JL was a little concerned, with Sandy \softline present, that the place only served beer and soft drinks.\par }{\plain \fs24 \f1 \tab Before she had a chance to answer, Cliff spoke for her, \'93Sandy is a beer drinker from \softline way back. Remember, she\'92s from Milwaukee, the home of a whole bunch of beers and \softline a lot of beer drinkers.\'94\par }{\plain \fs24 \f1 \tab They had a very pleasant evening together. JL dropped them off at the hotel, and \softline they went up to their rooms. Then Sandy took a coin from her purse and looked at Cliff. \softline \'93Heads or tails?\'94\par }{\plain \fs24 \f1 \tab \'93Heads,\'94 he said.\par }{\plain \fs24 \f1 \tab She flipped the coin, caught it, and placed it on the back of her left hand. Making \softline sure Cliff was looking, she removed her right hand covering the coin. \'93It\'92s tails. You \softline lose.\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93What did I lose?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab \'93We sleep in my bed, not yours,\'94 she answered dryly. \'93Get your razor, and let\'92s get \softline to bed.\'94 Once in bed, Sandy molded herself to his body and fell asleep.\par }{\plain \fs24 \f1 \tab They spent the next day visiting other stores in varying stages of renovation. Two \softline were complete, although they had not yet had their official \'93Grand Re-Opening\'94 \softline celebrations. Sales in all the units were going very well. When they returned to JL\'92s \softline office, Cliff asked him what he thought the cause was. \'93Well, sir, I\'92ll tell you. I think \softline about 40 percent is the new merchandise assortment, 40 percent is the store renovation \softline and improved layout, and the last 20 percent is better employee morale. They feel like \softline they belong, not like they\'92re a bunch of step-children. I\'92ll tell you, it hasn\'92t been like this \softline in a long, long time.\'94\par }{\plain \fs24 \f1 \tab They went over the sales reports for the entire Southern Division, store by store. \softline Finally, Cliff looked at the other two and said, \'93Damn! I think it\'92s going to work. It\'92s \softline really going to work! Congratulations, JL, this is even better than we hoped for. You \softline and your people are doing a great job!\'94\par }{\plain \fs24 \f1 \tab That evening JL and his wife, Marlene, took them to a fine place for dinner and \softline dancing. During the evening, Sandy learned that Marlene was an avid golfer. \'93Hey, \softline guys!\'94 Sandy said. \'93Marlene and I are taking you on in golf tomorrow. Full handicaps, \softline of course. JL, Cliff and I have a little side bet, but Marlene and I will play you two in a \softline $20 Nassau, okay?\'94\par }{\plain \fs24 \f1 \tab \'93You\'92re on, little ladies,\'94 JL answered. He looked at his wife affectionately. \'93But \softline damn! Marlene and I were counting on trim\-ming the damnyankees again, too!\'94\par }{\plain \fs24 \f1 \tab The next morning, JL picked them up at the hotel and drove them out to his club. \softline They had a nine o\'92clock tee time, and arrived at the club early. Sandy and Cliff went to \softline the practice tee to warm up. Cliff hadn\'92t swung a club in over a year, and was pretty \softline sure Sandy hadn\'92t played in months, at least. He did some limbering exercises and then \softline started hitting balls, beginning with his very short irons.\par }{\plain \fs24 \f1 \tab Meanwhile, Sandy had gone to the opposite end of the tee. Cliff could have been a \softline very good golfer if he played more. After taking a few shots with various clubs, he got \softline up to his driver. He started pounding out shots that appeared to be carrying 250 yards \softline or more. His notorious slice seemed to have disappeared.\par }{\plain \fs24 \f1 \tab Then he looked up and watched Sandy. It came as no surprise to him that she had \softline a very graceful, fluid swing. At 5 feet 8 inches, she was a tall girl, and she used her \softline height effect\-ively. She was not as long as he was, but was far longer than any woman \softline he had ever played with.\par }{\plain \fs24 \f1 \tab They went to the first tee. Cliff played to a USGA handi\-cap of sixteen. On this \softline course, it became a playing handicap of eighteen. He asked Sandy what her handicap \softline was and was told it was a twelve on the course. He was getting six strokes, but was \softline giving her the dis\-tance between the men\'92s and women\'92s tees.\par }{\plain \fs24 \f1 \tab \'93What\'92s our bet?\'94 he asked Sandy.\par }{\plain \fs24 \f1 \ul0 \tab \'93I\'92ll tell you when we\'92re done,\'94 she replied with a grin.\par }{\plain \fs24 \f1 \tab The men teed off from the white tees. Cliff\'92s layoff of nearly a year showed on his \softline first drive. The slice that had disappeared on the practice tee came back with a \softline vengeance on his first tee shot. Although he sliced it into the woods, it seemed to be \softline close enough to the fairway to still be in play. JL obviously played a great deal. He \softline wasn\'92t as long as Cliff, but a lot straighter. Marlene hit her tee shot off the forward tee \softline short and straight.\par }{\plain \fs24 \f1 \tab Then Sandy addressed her ball and swung with the very fluid, graceful swing Cliff \softline had seen on the practice tee. She hit the ball beautifully. It landed just to the right of \softline the fairway centerline with a slight draw on it. The draw \'97 really top-spin \'97 caused the \softline ball to roll, adding to its distance. She was almost 200 yards out in the middle of the \softline fairway. Cliff had been watching the women tee off. After Sandy hit, he turned to JL \softline and said wryly, \'93Why is it I think this is going to be a very long and expensive morning?\'94\par }{\plain \fs24 \f1 \tab The front nine became a match between Sandy and JL. The man was sweating. He \softline was far more practiced than she was, and it was his home course which gave him another \softline advantage. For her part, she was nearly as long off the tee as he was, and was deadly \softline inside 125 yards. Her short game and putting were devas\-tating. As they made the turn, \softline the women were up by two holes.\par }{\plain \fs24 \f1 \tab \'93Cliff, do you feel rich and foolish?\'94 JL asked. \'93How about pressing them on the \softline back side?\'94\par }{\plain \fs24 \f1 \tab \'93Let\'92s do it,\'94 Cliff replied. \'93It doesn\'92t matter if I don\'92t have any money to live on for \softline the next six months. There\'92s a lesson here somewhere I need to learn.\'94\par }{\plain \fs24 \f1 \tab The match had evened by the time they reached the 18th hole. On a par three, Cliff \softline had put his tee shot just a few feet from the pin and won the hole with a birdie. On the \softline top handicap hole on the back nine, Cliff and Sandy both had pars, but he won it because \softline of the stroke she gave him. If the men won the last hole, they would be the winners.\par }{\plain \fs24 \f1 \tab Although they had lost the front nine, the back nine was worth twice as much \softline because of the press, and they would win the match. If the hole was even, they would \softline be even on the nine, even on the match, and down $20 for the front nine. The way the \softline day had gone, losing only $20 would be a moral victory.\par }{\plain \fs24 \f1 \tab The last hole was 475 yards for men, but only 400 for the women, played to an \softline elevated green. The hole was a par-5, and the 8th handicap hole for men. Cliff didn\'92t \softline get a stroke. During the round Cliff had finally controlled his slice. His tee shot was his \softline best of the day. He got his full power into the ball and powered it over 250 yards. JL hit \softline his usual straight ball but not nearly as far. Marlene hit, and finally Sandy.\par }{\plain \fs24 \f1 \tab She, too, had her best drive of the day. The ball traveled over 225 yards. Playing \softline from the forward tee, her ball was ahead of Cliff\'92s on the fairway. As they walked down \softline the fair\-way, JL was shaking his head. \'93I used to say my mommy didn\'92t raise any dumb \softline children, but now I just don\'92t know. Why is it I feel this young lady is sandbagging us? You know, Cliff, she is good \'97 I mean }{\plain \fs24 \i\f1 real}{\plain \fs24 \f1 good! You mean to say she hasn\'92t been \softline practicing all summer?\'94\par }{\plain \fs24 \f1 \tab Cliff grinned at the older man. \'93JL, I can assure you she hasn\'92t had a club in her \softline hand since I joined the company on April 1. I wouldn\'92t say it to her, but it\'92s fun \softline watching her swing. I agree. She is very good and beautiful to watch.\'94\par }{\plain \fs24 \f1 \tab JL grinned back. \'93And that\'92s not limited to her swing, either!\'94\par }{\plain \fs24 \f1 \tab It was a very warm day in July, with the tempera\-ture in the nineties. Because they \softline had chosen to take caddies not carts, all four were feeling the heat. JL and Marlene hit \softline their second shots well, but it didn\'92t look like they would be in contention on the hole.\par }{\plain \fs24 \f1 \tab It was Cliff\'92s turn to hit. He looked at his partner and said, \'93How about if I go for \softline it? I don\'92t think we\'92re going to win if we play it safe.\'94\par }{\plain \fs24 \f1 \tab JL gave a rebel yell that startled some golfers on an ad\-ja\-cent hole. \'93That\'92s what I \softline like to hear! Go for it!\'94\par }{\plain \fs24 \f1 \tab Cliff forced himself to relax as he addressed his ball with a 3-wood. He caught it \softline beautifully. The ball hit just in front of the green and bounced up moving to the right \softline of the pin. Sandy had watched him and then went to her ball. She also took a wood, \softline grinned at Marlene, and hit her ball. It, too, hit just at the crest of the hill and bounced \softline over, going straight for the pin. Cliff and JL looked at each other and shook their heads.\par }{\plain \fs24 \f1 \tab \'93Damn!\'94 JL said. \'93This is the last time I play against a treasurer. They just can\'92t \softline stand to give up any money!\'94\par }{\plain \fs24 \f1 \tab By the time they reached the green, JL had to sink a very long putt for a par, and \softline Marlene was playing for a six. Cliff was just past the pin in distance, but on the right \softline edge of the green. He had a very long putt \'97 60 feet or so. He lined it up and stroked \softline it. It was long and very difficult because the green sloped down back-to-front. He had \softline a good line but not quite good enough. The green broke more than he had estimated and \softline his ball rolled below the cup, leaving him a four-footer coming back.\par }{\plain \fs24 \f1 \tab Sandy\'92s ball had rolled past the cup and was about twenty feet away with a downhill \softline putt. She didn\'92t hesitate. She looked at the line for a moment, stood over the ball and \softline stroked it. Her putt was perfect, rolling right for the center of the cup and dropping in \softline for an eagle three. She and Marlene hugged each other, and then went to shake hands \softline with the men.\par }{\plain \fs24 \f1 \tab Cliff ignored Sandy\'92s hand. He gathered her in his arms and kissed her sound\-ly. \softline Then he released her, took his putter and sank his own putt for a birdie four, even \softline though the match was over.\par }{\plain \fs24 \f1 \tab \'93I just had to do that,\'94 he said. \'93It\'92s the first time in my life I ever had two birdies \softline in a single round!\'94 They walked back to the clubhouse and went to the terrace for lunch.\par }{\plain \fs24 \f1 \tab \'93Gee, guys,\'94 Sandy said after they were seated, \'93I hate to bring it up, you \softline understand, but that\'92s $100 you owe each of us. The way I count, it was $20 on the \softline front, $40 on the back, and $40 for the match. Then there\'92s Cliff\'92s side bet with me.\'94\par }{\plain \fs24 \f1 \ul0 \tab Marlene was laughing while Sandy was speaking. JL asked her, \'93What\'92s so funny?\'94\par }{\plain \fs24 \f1 \tab \'93Before I answer, JL, I want to ask Sandy something. Sandy, JL subscribes to a lot \softline of golf magazines including one that reports on all kinds of tournaments. Watching you \softline today bothered me. There\'92s something in the back of my mind I just can\'92t reach. Tell \softline me, did you play tournament golf?\'94 Sandy nodded. \'93Of course! I seem to recall some \softline mentions of amateur tour\-naments in the Midwest. College, too, maybe?\'94 Again Sandy \softline nodded.\par }{\plain \fs24 \f1 \tab Cliff watched in amazement. \'93Sandra Donnell! You promised me: no secrets!\'94 he \softline said accusingly.\par }{\plain \fs24 \f1 \tab Sandy grinned sheepishly. \'93We were talking about the company and about us. We \softline never spoke about golf. This doesn\'92t count.\'94\par }{\plain \fs24 \f1 \tab \'93Sandy!\'94 he exclaimed.\par }{\plain \fs24 \f1 \tab \'93Well, I played a little golf when I was younger,\'94 she admit\-ted.\par }{\plain \fs24 \f1 \tab \'93And what\'92s \'91a little golf\'92?\'94 Cliff persisted.\par }{\plain \fs24 \f1 \tab \'93I was captain of the Wisconsin women\'92s golf team and runner up in the Wisconsin \softline and Midwest women\'92s amateur champion\-ships,\'94 she said in a very small voice.\par }{\plain \fs24 \f1 \tab \'93And your handicap? Is that real?\'94\par }{\plain \fs24 \f1 \tab \'93It sure is!\'94 she said. \'93I didn\'92t play much at all for the last couple of years. You \softline can\'92t keep a handicap in single digits unless you play a lot.\'94\par }{\plain \fs24 \f1 \tab Cliff spoke to JL. \'93We were had! Remember the strategy discussions in Milwaukee? \softline I feel like a damn fool. I broke the very first rule in the strategy book: Know the \softline competition. JL, I feel I ought to pay your share, too. It was my blunder.\'94\par }{\plain \fs24 \f1 \tab \'93No, sir!\'94 JL replied emphatically. \'93It\'92s my fault more than yours. I\'92ve known this \softline girl a lot longer than you have. And I hope you noticed my wife knew. And she knew \softline from reading maga\-zines with }{\plain \fs24 \i\f1 my}{\plain \fs24 \f1 name on them! No sir! There\'92s more than enough \softline blame to go around!\'94\par }{\plain \fs24 \f1 \tab They ate lunch, and JL asked if they would like to go swimming in the club pool. \softline Everyone was in favor, but Sandy said she hadn\'92t brought a bathing suit.\par }{\plain \fs24 \f1 \tab JL grinned. \'93This is my lucky day! We hate to let that money get out of state. As \softline it happens, the pro shop sells bathing suits, too. Now why don\'92t you just take some of \softline that money and buy one? I know Marlene would love to help you pick one out.\'94\par }{\plain \fs24 \f1 \tab The girls went off to the shop, while JL and Cliff went to the locker room to change. \softline \'93I wouldn\'92t say it with the girls around,\'94 JL said, \'93but that was the best damned match \softline I\'92ve played in years. And you know what else? There\'92s no way I mind losing if the \softline opponent shoots an eagle to win. Cliff, we didn\'92t lose. They won. There\'92s a difference.\'94\par }{\plain \fs24 \f1 \tab They went out to the pool deck and sat in the sun. Cliff closed his eyes. He opened \softline them again when he heard a sound, like a collective indrawn breath, from the people on \softline the deck. He turned and saw Sandy and Marlene. Marlene had insisted that Sandy buy a white bikini which was spectacular on her. With her auburn hair, green eyes, and light \softline tan, coupled with her perfect figure, she was breathtaking.\par }{\plain \fs24 \f1 \tab Cliff just said, \'93Wow!\'94\par }{\plain \fs24 \f1 \tab Marlene grinned, while Sandy looked like she wanted to hide. The older woman said, \softline \'93What do you two think? There\'92s a funny side to this bathing suit. It\'92s been in the shop \softline for months. Everyone has been looking at it, but no one had the nerve to buy it. I think \softline it\'92s perfect on Sandy, don\'92t you?\'94\par }{\plain \fs24 \f1 \tab JL said appreciatively, \'93I think Sandy would look perfect in a potato sack, but it sure \softline does look great.\'94\par }{\plain \fs24 \f1 \tab They swam, soaked up the sun, had a snack, and finally JL took them back to the \softline airport to get a late flight home. When they were seated on the plane, she looked at Cliff, \softline \'93Are you mad at me?\'94\par }{\plain \fs24 \f1 \tab \'93Why, in hell, should I be mad at you?\'94 he asked, puzzled.\par }{\plain \fs24 \f1 \tab \'93Because I cheated you in the match and embarrassed you with the bathing suit, is \softline why,\'94 she whispered.\par }{\plain \fs24 \f1 \tab \'93You did not cheat! You just won. As far as the bikini is concerned, you don\'92t know \softline much about men. You looked spec\-tacular, honey. All I could think of was all those poor \softline guys eating their hearts out \'92cause you\'92re mine. You are, aren\'92t you?\'94\par }{\plain \fs24 \f1 \tab \'93Sure am!\'94 she whispered, and kissed him softly.\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Chapter 12}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab It was late July and a very hot summer day in Milwaukee when Cliff got a call from \softline Steve Muller. Steve sounded excited and asked if he could come over to see him. Cliff \softline told him to come anytime and a few moments later he came into the office followed by \softline Sandy Donnell and Carlos Murphy.\par }{\plain \fs24 \f1 \tab Carlos was their find of the year. He was a third-genera\-tion Argentinean, educated \softline in the States. Despite its spelling, his last name was pronounced Mur-pee; Carlos told \softline of his grand\-mother, a native-born Argentine, who never spoke a word of Spanish in her \softline life. And, he claimed, never understood what she called \'93that heathen tongue,\'94 \softline referring, of course, to Spanish. Carlos was from a town in Argentina named Murphy, \softline as well.\par }{\plain \fs24 \f1 \tab Steve was never sure if they found Carlos or he found them. He was only twenty-six \softline years old and had earned his MBA from Babson College. He had joined the company to \softline lead its drive to increase export sales, and had just returned from his first sales trip to \softline South America.\par }{\plain \fs24 \f1 \tab One look at their faces told Cliff the trip had been a suc\-cess. He whispered \softline something to Sandy who grinned and left the office. \'93Carlos, how did it go?\'94\par }{\plain \fs24 \f1 \tab \'93Well, Boss, they loved our special Latin American program!\'94\par }{\plain \fs24 \f1 \tab The young man grinned broadly as he said it. The special Latin American program \softline consisted of the most elementary things: trans\-lating the packaging materials and in\- structions into Span\-ish, preparing normal export documenta\-tion, and accepting export \softline letter-of-credit financing. Murphy Manu\-factur\-ing had never done any of those things \softline before. More\-over, as far as anyone in the company knew, Carlos\'92s trip was the first time \softline anyone from Murphy had ever visited Latin America on business.\par }{\plain \fs24 \f1 \tab \'93I only went to Mexico and Venezuela on this trip. It was the funniest thing I have \softline ever seen. My first stop was Mexico City. I had a couple of names and tele\-phone \softline numbers of companies that had bought from us in the past on our usual export terms. \softline I called the first name on the list.\'94\par }{\plain \fs24 \f1 \tab The \'93customary terms\'94 had been cash in advance, with buyer taking delivery at the \softline Murphy ship\-ping dock. Any special export arrangements were the buyer\'92s problem. The \softline only thing Murphy did was provide heavier-than-normal crating, and even that had been \softline provided with great reluc\-tance.\par }{\plain \fs24 \f1 \tab \'93At any rate, I introduced myself and asked for an appoint\-ment. I thought the guy \softline was going to faint when I said I was down from Milwaukee and actually spoke Spanish. \softline Anyway, he wouldn\'92t hear of me coming out to see him. He came dashing down to meet \softline me at my hotel. I guess he made a call or two before he left his office, though.\par }{\plain \fs24 \f1 \tab \'93I wasn\'92t off the phone five minutes when it started to ring. Other auto supply \softline people heard I was in town. Anyway, the first guy, Sr. Gonzalez, arrives at the hotel, and \softline I meet him in the bar.\par }{\plain \fs24 \f1 \ul0 \tab \'93Cliff, I never got out of the damned bar. And I didn\'92t even pay for a drink. \softline Incidental\-ly, you know what impressed them the most? The fact that Murphy \softline Manufacturing had an export sales manager, and was actually interested in supplying \softline them on a consistent basis. Their history with us \'97 and a bunch of other American auto \softline parts companies, apparently \'97 is we only sell them if, as and when we have a little extra \softline capacity. They\'92re typically turned off more than they\'92re on.\par }{\plain \fs24 \f1 \tab \'93Anyway, here\'92s what I got.\'94 He took a stack of signed orders out of his briefcase.\par }{\plain \fs24 \f1 \tab Sandy noted that every one had a letter of credit attached. She said, \'93These are \softline prepaid orders, if I understand this stuff. Moreover, every one of the LC\'92s is on an \softline American bank. As I understand it, we ship the stuff. When it\'92s received in Mexico, the \softline LC is released and we have our cash. Right?\'94\par }{\plain \fs24 \f1 \tab \'93Right! Then I went to Caracas, and the same thing hap\-pened, only more so. They \softline have more money and more big US-built cars. We haven\'92t totaled it all, but it could total \softline almost as much as the first Kaga order!\'94\par }{\plain \fs24 \f1 \tab Just then there was a knock at the door, and Sandy got up. She returned to Cliff\'92s \softline desk with a brown paper bag that had been handed to her. Then she took out a cold six-pack of beer and opened cans for everyone. \'93This calls for a celebration! It\'92s hot, this \softline is a manufacturing company \'97 we get our hands dirty \'97 so beer\'92s in order. Cheers, \softline Carlos, and congratula\-tions!\'94\par }{\plain \fs24 \f1 \tab That afternoon, Sandy buzzed to say there was a Kelly Cameron to see them from \softline Snyder Securities in Chicago.\par }{\plain \fs24 \f1 \tab \'93Oh, shit!\'94 Cliff said. \'93I completely forgot, and the tone of your voice says I never \softline men\-tioned it to you, either. Cameron is a securities analyst. I think he\'92s the only one \softline who follows Murphy. I was supposed to see him in April but I ducked. I guess we have \softline to see him. Do you have time to put on your treasurer\'92s suit?\'94\par }{\plain \fs24 \f1 \tab \'93Sure. I\'92ll ask Betty to go bring up Cameron, and I\'92ll join you in a few minutes.\'94\par }{\plain \fs24 \f1 \tab Betty Ames was looking beautiful when she showed Kelly Cameron into the office. \softline Cliff was surprised to find that Kelly was a girl, and his surprise showed on his face. The \softline young woman appeared to be under thirty and was very attractive. She was five feet \softline four, with short, dark hair.\par }{\plain \fs24 \f1 \tab She smiled and introduced herself. \'93I apologize for the misrepresentation, although \softline it really isn\'92t. My name really is Kelly. My interest is manufacturing companies, \softline particularly automotive-related ones. A lot of your colleagues in the industry don\'92t like \softline dealing with women, so I guess I go out of my way not to mention that I\'92m female.\'94\par }{\plain \fs24 \f1 \tab When Sandy entered the office and introduced herself, Kelly looked at her closely. \softline \'93Miss Donnell, you\'92re the Murphy family of Murphy Manufacturing, aren\'92t you?\'94\par }{\plain \fs24 \f1 \tab Sandy was startled, but decided the meeting was essentially on the record. Lying to \softline an analyst wasn\'92t smart and could possi\-bly cause problems with the SEC. \'93Yes, I guess \softline I am, if you mean the family stock is mine. It is... or will be in a couple of months.\'94\par }{\plain \fs24 \f1 \ul0 \tab Cameron took a seat and started right in. \'93Mr. Fitzpatrick, Murphy hasn\'92t been \softline going anywhere to speak of. I estimate your current sales are in the range of $500 to \softline $600 million. For the last few years \'97 too many years \'97 the com\-pany has been earning \softline about 1 percent on sales, net. That generates five to six dollars in earnings per share on \softline the one million shares outstanding. With no growth and uninspired profits the market \softline has been giving you a multiple of about five. The trading range for the last few years has \softline been $20 to $30 per share.\par }{\plain \fs24 \f1 \tab \'93I recently received a tip there are major problems here and came to find out about \softline it. First, I will tell you what I have heard, and then you can comment. Number one: \softline You have been cut off as a supplier to Magna Motors. That was reported on the broad \softline tape. It\'92s about half your valve and ring business, maybe more. I would estimate the \softline loss at about $200 million a year in sales. Number two: You have sold off a whole bunch \softline of your auto parts stores. I would guess maybe two-thirds of them. That\'92s another drop \softline in sales of about $65 million or so.\par }{\plain \fs24 \f1 \tab \'93Add those together, Mr. Fitzpatrick, and Murphy has lost about 50 percent of its \softline sales give or take a bit. I\'92m looking for your profits to drop like a stone. How am I \softline doing? Oops! One more thing: the word around is George Simpson of Ajax hates your \softline guts and wants to destroy you. Comment?\'94\par }{\plain \fs24 \f1 \tab \'93With no flattery intended, I\'92m impressed. You obviously know the businesses you \softline follow and not all of your colleagues do. Let me take your comments in order. First, the \softline history is ob\-viously correct: the level of sales, profits, number of shares, and so forth. \softline With respect to Magna, you are also unfortunately correct. We lost the business because \softline of poor quality.\'94\par }{\plain \fs24 \f1 \tab Kelly\'92s eyebrows rose on his admission. \'93However, I have a letter I would like to \softline show you. We have been named the first mainline American sup\-plier to Kaga Motors\'92 \softline plant in Michigan. I have a letter here from the manag\-ing director in Tokyo I will share \softline with you. In fact, I\'92ll give you a copy if you promise not to show it to anyone until I can \softline get express permission from Japan to give it to you.\'94 He took out the letter from his file \softline and gave it to her.\par }{\plain \fs24 \f1 \tab She read it and let out a low whistle. \'93Mr. Fitzpatrick...\'94\par }{\plain \fs24 \f1 \tab Cliff interrupted. \'93Please call me Cliff. We\'92re very infor\-mal here, and I tend to do \softline a double-take and look for my father when someone says, \'91Mister Fitz\-patrick.\'92 Will \softline you?\'94\par }{\plain \fs24 \f1 \tab \'93Sure, and please call me Kelly. I don\'92t think I\'92m letting down the bars too much. \softline Anyway Cliff, if I understand this letter correctly, although you lost the Magna business \softline on quality, that\'92s the very basis on which you got the Kaga business. And with all due \softline respect to our friends in Troy, Kaga would throw out what Magna terms \'91commercially-acceptable quality\'92 as totally unaccept\-able. What hap\-pened?\'94\par }{\plain \fs24 \f1 \tab Sandy entered the conversation. \'93Cliff Fitzpatrick hap\-pened. He junked a ton of \softline old, unsalable product. There\'92s a signifi\-cant asset write-down I guess you didn\'92t hear about, also. It\'92s a write-off of finished goods inventory. He found that two of our ten \softline production machines were incapa\-ble of producing parts within required tolerances and \softline three others weren\'92t a whole lot better. We had far more people inspecting than we had \softline making. We don\'92t any longer. We have had a huge employee layoff and almost took a \softline strike that would have buried the company. Cliff persuaded the workers they could \softline produce product every bit as good as the Japanese. The rest of the letter speaks for \softline itself.\'94\par }{\plain \fs24 \f1 \tab Cliff smiled at the two young women. \'93As usual, Sandy fails to mention her critical \softline r\'f4le in all of this. She is the one who spoke to the workers. The union president was \softline certain the people were going to walk out. Sandy spoke to them as the owner, and they \softline believed her. They voted to stay. I think the letter from Kaga speaks for itself.\par }{\plain \fs24 \f1 \tab \'93Incidentally, that\'92s half of the lost Magna volume now and growing. The latest \softline word is the new ring our guy made is going to become Kaga\'92s standard, so there will also \softline be royalty income we have never seen before.\'94\par }{\plain \fs24 \f1 \tab \'93Could I go down to the factory floor?\'94 Kelly asked. \'93When I visited several years \softline ago, I was strongly discouraged from doing so.\'94\par }{\plain \fs24 \f1 \tab \'93Of course! We would be delighted. I hope you don\'92t mind wearing a hard hat? \softline Oh... there\'92s something else. We\'92ve got coats for visitors, too.\'94 He looked at Sandy who \softline went out and came back with a white coat with MURPHY in red capital letters across \softline the back, and a neatly stitched badge saying }{\plain \fs24 \scaps\f1 Visitor}{\plain \fs24 \f1 on the breast. The hard hat was \softline adjus\-table and from the way Kelly went to work to size it, this was a familiar process to \softline her.\par }{\plain \fs24 \f1 \tab She noticed that Cliff and Sandy had their own coats with }{\plain \fs24 \scaps\f1 Fitz\-patrick}{\plain \fs24 \f1 and \softline }{\plain \fs24 \scaps\f1 Donnell}{\plain \fs24 \f1 lettered on them. Kelly decided that Sandy looked very good in her coat with \softline the red hat that matched the lettering. She was impressed with the coats, both in terms \softline of Sandy\'92s appearance and because it suggested they often visited the shop floor. When \softline they reached the floor, she was dazzled. Every worker was also wearing a MURPHY \softline coat. Obviously there were three colors \'97 workers, supervisors, and managers.\par }{\plain \fs24 \f1 \tab It was as smooth running as any manufactur\-ing facility she had ever visited. The \softline production machines looked brand new, and she could see where two new ones were \softline being installed. There appeared to be substantial room for expansion.\par }{\plain \fs24 \f1 \tab Cliff pointed out a small quantity of Spanish-language packing materials, and then \softline took her to the cafeteria. When they closed the door, the room was silent. Kelly noted \softline that both Sandy and Cliff were greeted by first name by everyone. No one seemed at all \softline impressed by the fact they were on the floor. Clearly, it was routine. They got coffee and \softline took a table in the rear.\par }{\plain \fs24 \f1 \tab \'93We closed our dining room, so everyone eats here, now,\'94 Cliff told her.\par }{\plain \fs24 \f1 \tab \'93This is the nicest looking plant cafeteria I\'92ve ever seen!\'94 Kelly said.\par }{\plain \fs24 \f1 \ul0 \tab Sandy noticed that the girl looked hungry. \'93Kelly,\'94 she said, \'93Do I detect skip-lunch-diet hunger pangs? If we don\'92t feed you, you look like you\'92ll eat the table, and I\'92m \softline not sure it\'92s paid for yet.\'94\par }{\plain \fs24 \f1 \tab The girl grinned and accepted the invitation. They went through the line again, \softline because Sandy and Cliff hadn\'92t eaten either. When they returned to their table, Kelly \softline was even more impressed. \'93Who runs this place for you?\'94 she asked.\par }{\plain \fs24 \f1 \tab \'93We do it ourselves,\'94 Cliff said. \'93We have an outstanding manager, Janet Simmons, \softline who\'92s been with us for years.\par }{\plain \fs24 \f1 \tab \'93Inciden\-tally, I showed you the Spanish-language packaging. I\'92m going to tell you \softline a competitive confidence. We have a new export sales manager who just returned from \softline South America. He only returned this morning, and we\'92re still totaling the orders he \softline brought back with him. It appears, however, that we have enough business \'97 paid in \softline full, with accompanying irrevo\-cable letters of credit \'97 to increase our total sales volume \softline signifi\-cantly in spite of the loss of Magna. I mentioned it\'92s in confidence. The \softline confidence doesn\'92t extend to the income effects, but I would just as soon not advertise \softline to our competition how good Latin American business can be.\'94\par }{\plain \fs24 \f1 \tab When they returned to the office, Kelly said, \'93Cliff, I\'92m impressed. What you\'92re \softline telling me is you have more than covered the loss of the Magna business, and, I infer, \softline although neither of you said anything, at substantially higher margins. There\'92s been an \softline asset write-down, but that was junk, anyway.\par }{\plain \fs24 \f1 \tab \'93Would I be way off base if I guessed your costs are way down, too? For example, I \softline don\'92t see the normal piles of scrap lying around. I would guess your raw-material \softline utilization is very high, and your rejects are very low. I would estimate you may be \softline looking at a 10 percent pretax profit now. Would that be close?\'94\par }{\plain \fs24 \f1 \tab Sandy and Cliff looked at each other. Cliff shrugged and Sandy said, \'93If we think in \softline terms of a reasonable range, I think you\'92re in the ball park.\'94 Sandy continued, \'93Now, \softline you men\-tioned our Stores Division. You\'92re right, we did get rid of over two-thirds of our \softline units. We got an excellent price for them, by and large. It seems they\'92re worth a lot \softline more to some other people than they were to us.\par }{\plain \fs24 \f1 \tab \'93The result is we plowed some of the money back into our Southern Division which \softline is all we have left. We moved the buying function down to Charlotte for the Division, \softline changed our merchandise assortment, extended hours, and renova\-ted all the stores. \softline Within sixty days, our sales per unit have tripled with profits up much more. The result \softline is, Kelly, we haven\'92t lost any sales from Stores to speak of, and are looking for \softline substantially higher numbers next year. Our profits are... very pleasant.\'94 Sandy \softline finished her comments with a grin.\par }{\plain \fs24 \f1 \tab Kelly was listening carefully and was now wide-eyed. \'93What I\'92m hearing is that \softline miracles have occurred here at Murphy. You will have sales roughly even with last year \softline or better, but with much higher profits. If nothing at all happens next year, sales will \softline be up substantially. Moreover, I saw the new machines being put in place. That looks like a 20 percent capacity increase to me. By the way, you mentioned worn-out \softline production equipment. That\'92s the most un-worn-out stuff I have ever seen!\'94\par }{\plain \fs24 \f1 \tab Sandy grinned. \'93The folks at Micronics who built it just finished reconditioning the \softline last machines. They tell us they\'92re better than brand-new and our machinists agree. \softline That\'92s where some of the money went.\'94\par }{\plain \fs24 \f1 \tab Cliff picked up the narrative. \'93Then, of course, we have the confidential activities \softline of our brilliant treasurer, Sandy, who installed a new cash management system. I think \softline it\'92s all in now. She picked up about $75 million so we\'92re in better shape on the balance \softline sheet than we\'92ve been in years. There\'92s essen\-tially no debt. The cash pickup paid for \softline the moderniza\-tion.\'94\par }{\plain \fs24 \f1 \tab \'93One last question,\'94 Kelly said. \'93Where do you stand with Magna Motors right now? \softline I will make an observation, and I\'92m not asking for comment. I think you are the low-cost producer in this industry right now. Based on the Kaga letter, I have to believe you \softline couple that with the highest quality. When I was in business school, lowest costs and \softline highest quality were a very tough combination to beat. That\'92s my observation. Now \softline back to the question. What about Magna? Do you think you\'92ll get back in?\'94\par }{\plain \fs24 \f1 \tab Cliff answered. \'93Yes, Kelly, I do. But you know them far better than we do. They \softline are very slow to move... in any direc\-tion. I believe we will get back in, but I couldn\'92t \softline guess when it will happen. Fair?\'94\par }{\plain \fs24 \f1 \tab \'93More than fair. Now one more question, completely off the record. When are you \softline two going to get married?\'94\par }{\plain \fs24 \f1 \tab Sandy and Cliff both started to laugh. She answered, \'93Does it really show that \softline much? Of course, I }{\plain \fs24 \i\f1 do}{\plain \fs24 \f1 worship the ground he walks on, but I didn\'92t think it was so \softline obvious. The answer is we haven\'92t set a date. And this whole thing is very much off the \softline record, please?\'94\par }{\plain \fs24 \f1 \tab Kelly grinned and nodded. \'93It certainly is. I\'92ll be honest, though. I intend to send \softline you a very nice wedding gift when you do because I am going to make an awful lot of \softline money on Murphy stock. There\'92s something else, though. I wasn\'92t just being nosy. To \softline a person like me who tries to figure out what makes a company tick, it\'92s very important \softline because I know you are }{\plain \fs24 \i\f1 both}{\plain \fs24 \f1 vital to the company. You are also great people. This has \softline been the most enjoyable visit I have had in years, and it\'92s going to be the most profit\-able \softline one as well.\par }{\plain \fs24 \f1 \tab \'93Cliff and Sandy, do you follow the market closely?\'94 They both shook their heads. \softline Kelly grinned. \'93That\'92s great, because if you did that, too, I would be in trouble.\'94\par }{\plain \fs24 \f1 \tab Her face became ser\-ious. \'93The reason I asked is because something strange is going \softline on. It was the reason for my comments at the beginning. I\'92m here because of an \softline anonymous tip. You both know what the short interest is, don\'92t you? The extent to \softline which shares of a company are being sold short?\'94 They both nodded.\par }{\plain \fs24 \f1 \tab \'93Well, the short interest in Murphy is big and getting bigger. I thought I had it all \softline figured out, and was toying with the idea of joining the bears \'97 the folks selling the stock short expecting its price to drop like a stone. You know, I think we\'92re seeing a bear \softline raid.\'94\par }{\plain \fs24 \f1 \tab \'93I\'92ve heard of them,\'94 Sandy said, \'93but I never knew exactly how they worked. \softline Money is made when a stock\'92s price drops, but it never seemed like a lot of money. After \softline all, if a stock trades at 50 and then the price falls to 40, all the short seller made was ten \softline points. There\'92s a lot more room on the upside.\'94\par }{\plain \fs24 \f1 \tab Kelly smiled at the question and explained, \'93Your numbers are correct, Sandy, but \softline you\'92re overlooking something. Big money is made because the deal involves massive \softline leverage. Let\'92s take a guy with $1,000 and your example. If the guy bought the stock \softline at 50 he would have 20 shares. Selling at 40, he loses $10 a share, or $200. To keep it \softline simple, I\'92m ignoring transaction costs.\par }{\plain \fs24 \f1 \tab \'93Now take a short seller. What does he do? First, he sells 1,000 shares at 50. But \softline he doesn\'92t have 1,000 shares; he has none in the classic situation. What he does do is \softline borrow the 1,000 shares to deliver against his sale, paying interest on the borrowed \softline shares. Now the stock price drops to 40. He buys 1,000 shares at 40 using the $40,000 \softline of the $50,000 he got when he sold the 1,000 shares. After returning the 1,000 shares \softline he\'92s just purchased to the owner of the borrowed shares, he\'92s made $10,000 less the \softline interest expense that he paid to borrow the shares in the first place. He\'92s made a profit \softline of nearly $10,000 on virtually no investment. His ROI is enormous.\'94 Looking at Sandy \softline she asked, \'93Did you follow that?\'94\par }{\plain \fs24 \f1 \tab \'93I sure did,\'94 Sandy replied. \'93But what\'92s a bear raid?\'94\par }{\plain \fs24 \f1 \tab \'93That occurs when an individual or a group starts selling lots of shares in a company \softline short, betting the price will fall. First of all, the mere act of selling lots of shares serves \softline to drive the price down, other things being equal. But couple that with the expectation \softline of bad news about the company, and the share price can drop like a stone. Clearly, that\'92s \softline what the bears expect,\'94 Kelly explained. \'93But guess what? Based on what I just learned \softline from you and Cliff, the raid is almost certain to fail. And you know some\-thing else? I\'92m \softline buying. Could I use a phone outside, quick? Then I\'92ll tell you more.\'94\par }{\plain \fs24 \f1 \tab Kelly left the room, and Sandy looked at Cliff thoughtfully. \'93Now who do you \softline suppose would be doing that?\'94 she said. \'93It bothers me \'97 although not for the usual \softline reasons of ego. One of the finance depar\-tment classics is a bit of doggerel, \'91He who sells \softline what isn\'92t his\'92n pays the price or goes to prison.\'92 It refers to short sellers.\par }{\plain \fs24 \f1 \tab \'93The bothersome thing is there is so little float in the stock. There are only one \softline million shares out, and the family has more than 65 percent. It\'92s a prescrip\-tion for a \softline classic squeeze on the shorts. They borrow the shares they sell against the prospect of \softline a price decline. When the price drops, they buy the shares in to replace the shares they \softline borrowed from the original owners at a lower price.\par }{\plain \fs24 \f1 \tab \'93However, what happens if the price rises \'97 sharply? The short-sellers get killed: \softline They have to buy the shares at a higher price, and lose their shirts! And I think that\'92s what\'92s about to happen as a result of Kelly\'92s report. Honey, would you humor me if I \softline do something dumb? Like losing a ton of money? It is mine, though.\'94\par }{\plain \fs24 \f1 \tab He grinned at her and said, \'93Darling, I never mentioned it, but I bought 10,000 \softline shares of Murphy Manufacturing before I even started work here at prices that average \softline about $22 a share. It represents just about every dollar I have been able to beg, borrow, \softline or steal. We\'92ve never talked about money, but you must get a pretty nice income from \softline your stock. Do you, or does it go somewhere else?\'94\par }{\plain \fs24 \f1 \tab \'93Mostly it comes to me. You can see I don\'92t spend a lot. And we\'92ve been saving on \softline entertainment by mostly spending week\-ends in bed! No, I\'92m okay. Cliff, one thing. \softline Would you please humor me and ask Bill to beef-up security? I\'92m thinking of getting a \softline big agency like Pinkerton to send some plainclothes people in. What do you think?\'94\par }{\plain \fs24 \f1 \tab Before she even finished, as soon as she mentioned the word secur\-ity, Cliff was on \softline the phone. \'93Bill, it\'92s Cliff. Here\'92s the story: Someone is selling our stock short, and it\'92s \softline about to start moving up strongly. It\'92s a classic situation for industrial sabotage. See \softline about getting a big security team in for the next eight weeks. No, make it ten weeks. \softline I want to be sure the extra coverage extends past Octo\-ber\~1.\par }{\plain \fs24 \f1 \tab \'93And Bill, I want it to start right now! They may want a short-notice premium for \softline a few days, but I don\'92t care.\'94 He hung up the phone and said to Sandy, \'93Is that enough \softline humoring for you? I think you\'92re absolutely right.\'94\par }{\plain \fs24 \f1 \tab Kelly returned to the office with a big grin on her face. \'93I have a question. Has \softline either of you sold any stock?\'94 They both shook their heads. \'93How about buying?\'94\par }{\plain \fs24 \f1 \tab Sandy said, \'93Cliff bought 10,000 shares before he joined, and I have been buying off \softline and on for years. I don\'92t remember when the last transaction was. Is it important?\'94\par }{\plain \fs24 \f1 \tab \'93Not really. I just sent out a bulletin on the company, and on to Dow-Jones for the \softline broad tape. My prediction is for earn\-ings higher than last year\'92s. Cliff, I took the liberty \softline of using your name. I said you had announced today that Murphy had been designated \softline the first American pre\-ferred supplier to Kaga Motors. The selec\-tion had been made on \softline the basis of quality of pro\-duct. I know you didn\'92t announce it before, but technically you \softline should have.\par }{\plain \fs24 \f1 \tab \'93Did you buy any stock, or did anyone else in the company buy between the Kaga \softline letter and today? Actually, I don\'92t think it matters because the price has been slowly \softline drifting down. If they bought, they sure in hell didn\'92t tell their fri\-ends. Or else their \softline friends are as financially na\'efve as you two!\'94\par }{\plain \fs24 \f1 \tab She grinned broadly as she said the last words, but Cliff and Sandy were both \softline chagrined. They knew about insider trading, but it had never occurred to them to make \softline an announce\-ment. Yet they both knew they should have.\par }{\plain \fs24 \f1 \tab \'93I\'92m sorry, Kelly, and thanks a lot. For that matter, I guess we should have \softline announced the loss of the Magna business, too. That was certainly material.\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93It was, but don\'92t worry. Ajax did that for you. Anyway, there\'92s no harm done. \softline Incidental\-ly, I\'92m liquidating everything I own to go against the short sellers. I can see \softline a classic squeeze coming. There won\'92t be any shares to buy to cover their short position.\par }{\plain \fs24 \f1 \tab \'93I remember reading a case in Financial Markets on a floor\-ing company. In fact, I \softline think it was quite similar. Like Murphy, most of the stock was held by the family. I \softline think it started with the shares trading around $10. When the squeeze hit, trading was \softline suspended at about $25. When it reopened, it jumped to about $60 in thirty minutes or \softline so and was suspended again. At that point, I think the two sides negotiated surrender \softline terms. The shorts were wiped out.\'94\par }{\plain \fs24 \f1 \tab She smiled and added, \'93I have always remembered that story. It always seem\-ed like \softline a great way to make big money, so I\'92m going to try it with you. Do you mind?\'94\par }{\plain \fs24 \f1 \tab Sandy looked at Kelly thoughtfully. \'93You are a registered rep, aren\'92t you? You can \softline handle customer\'92s accounts directly?\'94\par }{\plain \fs24 \f1 \tab Kelly nodded. \'93I sure am. I don\'92t have many, though, but I am trying.\'94\par }{\plain \fs24 \f1 \tab Sandy avoided Cliff\'92s eyes. \'93Kelly, do me a favor? I propose to call my bank and ask \softline them to send you $2 million to open an account in my name. Could you do that?\'94\par }{\plain \fs24 \f1 \tab Kelly\'92s jaw dropped. \'93Sandy, you\'92re saying you want to open an account with me at \softline Snyder Securities for }{\plain \fs24 \i\f1 $2 million! }{\plain \fs24 \f1 Cash?\'94\par }{\plain \fs24 \f1 \tab Sandy grinned. \'93My, you\'92re a fast learner! That\'92s exactly what I said. Is that \softline enough for an account with Snyder?\'94\par }{\plain \fs24 \f1 \tab \'93Enough? You\'92re joking! Just a minute.\'94 She picked up the phone on Cliff\'92s desk \softline and called her office and asked to speak to her manager. She told him she was being \softline given $2 million to open an account for Sandra M. Donnell, the Murphy Machinery \softline heiress. There was silence from Kelly for a few minutes. Then she essen\-tially repeated \softline the story for someone else. Finally, she spoke again, \'93I\'92ll ask her, sir. I don\'92t think \softline there\'92s a problem. Just a minute.\'94 She turned to Sandy, \'93This is Jack Snyder, the \softline managing partner of Snyder Securities. He would like to speak to you, if he may.\'94\par }{\plain \fs24 \f1 \tab Kelly appeared very nervous as Sandy took the phone. \'93Hello, Mr. Snyder, this is \softline Sandra Donnell.\'94 She listened with a smile on her face for a few moments, then said, \'93I \softline only met Miss Cameron this afternoon, and I\'92m absolutely delighted to have had the \softline opportunity. I invest money from time to time, and was most impressed with her knowl\- edge of our indus\-try and my company.\'94\par }{\plain \fs24 \f1 \tab Kelly and Cliff laughed at the face she made when she said \'93my company.\'94 She \softline continued, \'93Miss Cameron makes a great deal of sense to me. I was prepared to wire \softline money to you now, but I will be happy to give her a check to bring back.\'94\par }{\plain \fs24 \f1 \tab There was a period of silence while Snyder was talking. She ended by saying, \softline \'93Thank you, Jack. I look forward to meeting you in Chicago, soon.\'94\par }{\plain \fs24 \f1 \ul0 \tab She hung up the phone and looked at the others. \'93He wel\-comed me as a customer \softline of the firm.\'94 She rummaged through her purse, took out her checkbook, wrote a check, \softline and gave it to Kelly.\par }{\plain \fs24 \f1 \tab The girl looked at it in awe. \'93My God! Two million dollars! I sweat more than that \softline writing a check at the super\-market! Sandy, thank you! Now, who do I have to kill?\'94\par }{\plain \fs24 \f1 \tab \'93Kelly, there are only two strings: First, for now it\'92s a treasury for you to use to buy \softline into the bears\'92 selling. The market is still open. Can we start right now? I don\'92t want \softline to move the price a lot. I just want to keep it from going down. The buying will come \softline from others, and we may push it up to... What do you think? Thirty? Maybe thirty-five?\'94\par }{\plain \fs24 \f1 \tab Kelly just grinned and picked up the phone again. This time she asked for the \softline trading desk. \'93Bill, it\'92s Kelly. I have a good one for you. Buy Murphy Manufacturing \softline on the Amex. We have two and a quarter million dollars to use. At today\'92s prices that\'92s \softline about 90,000 shares. Just push, Bill. I don\'92t want to see a down-tick. Regardless of the \softline money you have placed, stop buying at thirty-two if it gets that high. If it does, put a buy \softline in with the specialist for the balance of the money at thirty-two coming down. Okay? \softline I think we\'92re going to have some fun.\par }{\plain \fs24 \f1 \tab \'93And Bill, this is most important: Time-stamp the order right now! For you pri\- vately, this is insider money. An announcement went out about thirty minutes ago on \softline the broad tape. It\'92s essential that we are all covered on this. Buying came }{\plain \fs24 \i\f1 after}{\plain \fs24 \f1 the \softline public an\-nouncement. Bill, I\'92m in Milwaukee imposing on some folks. Call me at this \softline number if it starts to move, or if anything interesting seems to be happening. In any \softline event, call me after the close and let me know what happened.\'94 She hung up the phone.\par }{\plain \fs24 \f1 \tab \'93Kelly,\'94 Sandy asked, \'93are you a beer drinker?\'94\par }{\plain \fs24 \f1 \tab \'93I sure am, but don\'92t you have a bar?\'94 She looked around. \'93No,\'94 she answered her \softline own question, \'93not in this place. This is the home of precision parts, and alcohol doesn\'92t \softline mix well with precision.\'94\par }{\plain \fs24 \f1 \tab Sandy left the office, and Kelly followed her out. \'93Sandy, I have a favor to ask? \softline Could your secretary make a hotel reservation for me here in Milwaukee for tonight?\'94\par }{\plain \fs24 \f1 \tab Sandy laughed, and picked up the phone. She made a reserva\-tion for that night and \softline guaranteed it to Murphy for late arrival. \'93Kelly, since you know everything else, you \softline ought to know I am Cliff\'92s executive assistant, otherwise known as his secretary. I \softline would invite you to stay with me but Cliff and I, but... Well, things get a little rowdy \softline once in a while.\'94\par }{\plain \fs24 \f1 \tab \'93You\'92re a very lucky girl, Sandra Donnell. I think you caught one of the live ones.\'94 \softline Kelly looked at Sandy carefully, then grimaced. \'93What a stinking shame. I couldn\'92t \softline even give you a fight. My God! To have your looks and money on top! It\'92s just not fair.\'94\par }{\plain \fs24 \f1 \tab Then she grinned and added, \'93On the other hand, maybe it\'92s a good thing. You\'92re \softline a one-man woman, and it\'92s obvious he\'92s a one-woman man. So he\'92s out of action, but \softline so are you. I guess that\'92s some consolation for a working girl. And besides, you two are going to make me rich!\'94 The two girls shook hands, and went back to the office after \softline Sandy made another call.\par }{\plain \fs24 \f1 \tab When they reentered the office and sat down, Cliff told Kelly about the increased \softline security. He grinned at her. \'93I might as well tell you about it, since you\'92re one of the \softline family now. By the way, Sandy said two million, and I heard you tell Bill two and a \softline quarter. Where\'92s the rest of the money come from?\'94\par }{\plain \fs24 \f1 \tab Kelly blushed prettily. \'93That\'92s mine. All I can say is that\'92s every dime I\'92ve got... and \softline then a few. You two have a hell of a business going here. There aren\'92t too many oppor\- tunities in the Rust Belt.\'94\par }{\plain \fs24 \f1 \tab A few minutes later there was a knock on the door. Sandy brought back another \softline brown paper bag and opened three cans of beer. \'93Cheers!\'94 she said. \'93Kelly, this is twice \softline today. The first time was just before you came when we found out about the South \softline American orders.\'94\par }{\plain \fs24 \f1 \tab \'93Damn!\'94 Kelly exclaimed, \'93I forgot to mention it earlier. I also added in the \softline announcement that \'91other full-price orders\'92 had been received fully covering the lost \softline Magna Motors business. Anyway \'97 even though us investment types aren\'92t supposed \softline to drink beer \'97 cheers! You know,\'94 she said with a grin, \'93I much prefer pizza and beer \softline to white wine and Brie.\'94\par }{\plain \fs24 \f1 \tab Sandy and Cliff looked at each other, made a thumbs up sign, and laughed. They \softline were still chatting when Cliff\'92s private line rang. It was the number Kelly had given her \softline trader.\par }{\plain \fs24 \f1 \tab Cliff answered the phone and passed it to her. \'93Hi, Bill, what\'92s up?\'94 She listened \softline intent\-ly and nodded her head. She took out a pad and started writing down numbers as \softline a big grin started spreading across her face. Finally she said, \'93Thanks, Bill. Keep me \softline posted.\'94\par }{\plain \fs24 \f1 \tab She hung up the phone and exclaimed, \'93Damn! It\'92s moving. There\'92s heavy action, \softline with a lot of selling. Bill thinks it\'92s more short selling. It\'92s trading at twenty-seven now, \softline up a point and a half. The important thing is, other people are starting to buy, too. \softline We\'92re going to win this one. I can feel it.\'94\par }{\plain \fs24 \f1 \tab \'93What do we do now? Just wait?\'94 Sandy asked.\par }{\plain \fs24 \f1 \tab \'93I guess so. Incidentally, you have invested about $200,000 at this point, Sandy. \softline Why don\'92t we fill out these dumb forms I need to open an account while we wait for the \softline closing?\'94\par }{\plain \fs24 \f1 \tab She took forms from her attach\'e9 case, and Cliff went down the hall to Steve Muller\'92s \softline office.\par }{\plain \fs24 \f1 \tab Betty Ames gave him a big smile as he walked in. Cliff noticed how beautiful and \softline happy the woman was now that John Flood was gone. Steve was on the phone. He \softline waved and gave Cliff a big grin. \'93Yes, sir, I\'92m sure he\'92d be happy to talk to you. In fact, \softline he just walked into my office.\'94\par }{\plain \fs24 \f1 \ul0 \tab He put the phone on hold and said, \'93It\'92s Jack Crowther of Magna. He said he just \softline received a report on the broad tape \'97 what\'92s a broad tape? \'97 of our contract with Kaga. \softline I told him it was true. He wants to talk to you. Do you want to take it? But since I blew \softline it by telling him you\'92re here, I guess you have to.\'94\par }{\plain \fs24 \f1 \tab Cliff took the instrument, and Steve punched the line button. \'93Hi, Jack! This is \softline Cliff Fitzpatrick. What can we do for you?\'94\par }{\plain \fs24 \f1 \tab \'93I just saw on the Dow-Jones broad tape an announcement of your selection as the \softline first American prime supplier to Kaga USA in Michigan. Is that true?\'94\par }{\plain \fs24 \f1 \tab \'93Yes, it is, Jack, I\'92m proud to say. We also developed a ring for them that seems to \softline be on its way to becoming their new world standard. Of course, we get all the business \softline on that we want and a royalty on the rest.\'94\par }{\plain \fs24 \f1 \tab \'93But, Cliff!\'94 Jack said, \'93I shouldn\'92t say this, but their quality standards are light-years ahead of ours! And you }{\plain \fs24 \i\f1 meet}{\plain \fs24 \f1 them!?\'94\par }{\plain \fs24 \f1 \tab \'93No, Jack. We don\'92t meet them, we exceed them. Based on information faxed to us \softline today, we are now the top-quality sup\-plier to Kaga USA. That, of course, is a field made \softline up almost entirely of Japanese suppli\-ers. I am delighted to tell you we are entering \softline discus\-sions at long distance about our ability to supply their domestic production. I \softline don\'92t expect much, honestly, but it\'92s an honor to be considered. Then, of course, there \softline is the very strong yen...\'94\par }{\plain \fs24 \f1 \tab Crowther had obviously been doing some fast thinking as Cliff spoke. When Cliff \softline finished he said, \'93How soon could you ship trial quantities of rings and valves? I\'92m sure \softline you still have the specs and everything.\'94\par }{\plain \fs24 \f1 \tab \'93I\'92ll have to check with our production people, Jack. How fast would you like to \softline have them, when, and where?\'94\par }{\plain \fs24 \f1 \tab Crowther responded quickly, \'93Cliff, could you call me tomor\-row with availability? \softline I\'92ll have the rest of the informa\-tion for you then. And of course, I will need a price \softline quote.\'94\par }{\plain \fs24 \f1 \tab \'93We will be happy to quote, Jack. What quantities?\'94 Crowther told him the \softline quantities, and Steve saw Cliff\'92s eyebrows raise. \'93Thanks, Jack. I\'92ll call you in the \softline morning.\'94\par }{\plain \fs24 \f1 \tab Cliff hung up the phone. \'93Steve, the }{\plain \fs24 \i\f1 low}{\plain \fs24 \f1 number he quoted for quantities was our \softline old production number. The high number is }{\plain \fs24 \i\f1 triple!\'94\par }{\plain \fs24 \i\f1 \tab }{\plain \fs24 \f1 The two men cheered and started dancing around the office. Betty came in to find \softline out what had happened. When they told her, she joined the dance. Bill picked up the \softline phone to call Bill Stevens. He asked Bill to get Max and join him in Steve\'92s office. \softline Moments later the two men arrived. As Cliff told him what had happened, Bill\'92s eyes \softline widened. When he told them the quantities, they both cheered.\par }{\plain \fs24 \f1 \ul0 \tab Cliff said to Max, \'93I would like you to use our handy portable PA system, Max, and \softline tell the guys what\'92s happened. It\'92s strictly your show. Without the quality those guys \softline have been turning out, it couldn\'92t have happened. Do you mind?\'94\par }{\plain \fs24 \f1 \tab }{\plain \fs24 \i\f1 \'93Mind? }{\plain \fs24 \f1 My God, this is the best news in weeks, and you want }{\plain \fs24 \i\f1 me}{\plain \fs24 \f1 to announce it? \softline Not you or Sandy?\'94\par }{\plain \fs24 \f1 \tab \'93No, Max. This is yours. Bill, how soon could we add ma\-chines to double our \softline capacity? And Max, I don\'92t have to tell you this is a quality sell. Our quality can\'92t slip... \softline not the tiniest bit. What about people?\'94\par }{\plain \fs24 \f1 \tab Max beamed. \'93That\'92s not a problem. Guaranteed. When can the machines be in?\'94\par }{\plain \fs24 \f1 \tab \'93Bill?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab \'93I\'92ll have to check with Micronics, but largely due to the way Sandy has been \softline handling things, they honest-to-God love us! I don\'92t know how long it will take, but I \softline double-your-money-back guarantee you, no one \'97 }{\plain \fs24 \i\f1 no one}{\plain \fs24 \f1 \'97 could get them faster. What \softline about the trial order? How soon, and how much?\'94\par }{\plain \fs24 \f1 \tab \'93I\'92ll know tomorrow for sure, Bill. But you know Magna\'92s trial quantities. What do \softline you think?\'94\par }{\plain \fs24 \f1 \tab Bill looked at Max and held up five fingers. Max nodded. \'93I can have normal trial \softline quantities in five days. The quality will blow them away. They have never seen stuff as \softline good as they will be getting.\'94\par }{\plain \fs24 \f1 \tab \'93Okay, guys. It\'92s a deal. Bill, did you speak to Max about security? He and all the \softline people need to know. Why don\'92t you brief him, and he can add it to his speech?\'94\par }{\plain \fs24 \f1 \tab Bill quickly reviewed the short selling of Murphy stock and the fear that someone \softline \'97 about to lose a fortune \'97 might stoop to industrial sabotage to prevent Murphy from \softline performing on its contracts. He ended by saying, \'93Max, I think we have a real family \softline here. The nice thing is everyone pretty well knows everyone else. You and your people \softline will be alerted to the Pinkertons. You will know who they are. If anybody sees }{\plain \fs24 \i\f1 anyone}{\plain \fs24 \f1 \softline he doesn\'92t recognize \'97 whether he\'92s acting suspicious or not \'97 we want the Pinkertons \softline alerted.\'94\par }{\plain \fs24 \f1 \tab Max laughed loudly. \'93What\'92s that saying, \'91Things that go around, come around?\'92 \softline The irony is wonderful. Pinkerton really grew as a company of strikebreakers one-hundred years ago or so. Now they are on our side. I think it\'92s great! But you know \softline what? I\'92m afraid it is one only a few of us old-timers will appreciate. Cliff, I\'92ll do it! \softline And, I don\'92t need to tell you this, but I will anyway. It\'92s our company, too.\'94\par }{\plain \fs24 \f1 \tab Cliff went back to his office. Checking his watch he found it was nearly quitting \softline time. Then he told the girls it was time to pack it in but didn\'92t tell them about the talk \softline with Crowther at Magna.\par }\sect \sectd \ds1\sbknone\margbsxn1260\pgndec\headery1440\footery1440\endnhere\endnhere {\header { \posxr\nowrap \plain \fs24 {\field{\*\fldinst { PAGE }}}\par} \par} {\*\pnseclvl1\pndec\pnstart1{\pntxta .}} {\*\pnseclvl2\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl3\pnlcrm\pnstart1{\pntxta .}} {\*\pnseclvl4\pndec\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl5\pnlcltr\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl6\pnlcrm\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl7\pndec\pnstart1{\pntxta .}} {\*\pnseclvl8\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl9\pnlcrm\pnstart1} \pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab As usual, they went out through the plant. His timing was per\-fect. Max was just \softline about to start his speech, and Sandy stopped to listen. They heard Max tell about the \softline test order from Magna. \'93We got it, folks! We really got it! Now all we have to do is give them our usual product. Those turkeys will freak out when they see the quality we \softline routinely ship to Kaga.\'94 He went on and ended by telling the workers about the chance \softline of sabotage. He finished by saying, \'93Remember, those clowns are out to destroy }{\plain \fs24 \i\f1 our jobs! \softline }{\plain \fs24 \f1 We know one another. You\'92ll know the Pinker\-tons. Anyone else \'97 and I mean }{\plain \fs24 \i\f1 anyone \softline else}{\plain \fs24 \f1 \'97 tell the Pinks. Any questions?\'94\par }{\plain \fs24 \f1 \tab There were a few, but the thing Cliff noticed immediately was they understood the \softline threat to their jobs. The noises he heard were ugly. He wouldn\'92t want to be a person \softline found trying to tamper with the machines.\par }{\plain \fs24 \f1 \tab They walked on out to the car, leaving Kelly\'92s rental in the lot. \'93Cliff,\'94 Sandy said \softline sweetly, \'93you are a bastard. We hear we\'92re back in at Magna \'97 at up to triple the old \softline volume \'97 from our union president, for chrissakes! Just for that, you get the check \softline tonight. We are celebrating with dinner and danc\-ing. Kevin O\'92Rourke is joining us. I \softline may \'97 or may not \'97 be speaking to you!\'94\par }{\plain \fs24 \f1 \tab Cliff just grinned and said nothing. They went to Kelly\'92s hotel, and she checked in. \softline He smiled at Sandy while they waited for her to wash up. Sandy tried to glare at him, \softline but without great success. When Kelly returned to the car, Sandy was in his arms.\par }{\plain \fs24 \f1 \tab \'93Golly, folks,\'94 Kelly said. \'93I hope I\'92m not interrupting anything.\'94\par }{\plain \fs24 \f1 \tab Sandy stretched broadly and gave Cliff another kiss. \'93Nope. He wasn\'92t very nice, \softline so it\'92s too early to go to bed with him. Are you all set? And are we corrupting your \softline morals?\'94\par }{\plain \fs24 \f1 \tab \'93Corrupting, no. Jealous, yes. Let\'92s go. Who is Kevin, by the way?\'94\par }{\plain \fs24 \f1 \tab \'93Kevin O\'92Rourke is a delightful guy. Of course, you\'92ll have to talk to him in \softline equations or hexadecimal language. I think that\'92s what computers speak, isn\'92t it Cliff?\'94 \softline Sandy asked. \'93Any\-way, it\'92s something like that. Maybe you can baffle him with some \softline interesting regression equations on earnings growth or something,\'94 she finished airily.\par }{\plain \fs24 \f1 \tab \'93Sandra Donnell, I thought I liked you, but now the real you comes out. You are \softline hateful! Just because you have captured a girl\'92s dream is no reason to rub it in. I\'92ll have \softline to think about it for a while, but I\'92m pretty sure I am not speaking to you ever again. \softline Or at least tonight. Or at least until we get to where we\'92re going,\'94 Kelly said with the \softline grin audible in her voice.\par }{\plain \fs24 \f1 \tab When they arrived at another hotel, Kelly was surprised. \'93Why am I not staying \softline here?\'94 she asked.\par }{\plain \fs24 \f1 \tab \'93Because I thought as a young professional woman you would be interested in \softline getting your rest. This place has rooms that are reputed to be noisy: the guests running \softline from room to room and that sort of thing,\'94 Sandy replied.\par }{\plain \fs24 \f1 \tab \'93Now I }{\plain \fs24 \i\f1 know}{\plain \fs24 \f1 I hate you,\'94 Kelly said in a very flat voice. \'93You didn\'92t mention that \softline my hotel serves tea to maiden ladies at four-thirty every day. I missed it, by the way.\'94\par }{\plain \fs24 \f1 \tab \'93Kelly, dear, I just wanted you to feel secure,\'94 Sandy re\-plied.\par }{\plain \fs24 \f1 \ul0 \tab Cliff was finding it was all he could do to try to keep a straight face as they went to \softline the main dining room where a combo was playing. From the girls\'92 banter, it was obvious \softline they liked each other a great deal. Kevin was sitting at the table waiting for them, and \softline he rose as they approached.\par }{\plain \fs24 \f1 \tab Cliff heard Kelly say in a whisper to Sandy, \'93I don\'92t care if he only speaks Gaelic! \softline My God, where has he been all my life?\'94 It hadn\'92t occurred to Cliff that Kevin was also \softline six feet three with brilliant blue eyes and very dark hair.\par }{\plain \fs24 \f1 \tab Kevin was introduced to Kelly and it was obvious he liked her immediately. \'93With \softline a name like Kelly, there\'92s got to be some Irish in the family, Miss Cameron,\'94 he said.\par }{\plain \fs24 \f1 \tab Kelly smiled at him warmly. \'93My mother\'92s maiden name was Kelly. Indeed there \softline is. I must get my interest in finance from my father who is a Scot, as I am sure you \softline guessed.\'94\par }{\plain \fs24 \f1 \tab The combo was playing, and Sandy and Cliff got up to allow the other two to become \softline acquainted. Every time he held her in his arms on a dance floor, Cliff was dazzled. She \softline just seemed to float. He whispered in her ear, \'93A penny for your thoughts?\'94\par }{\plain \fs24 \f1 \tab \'93Darling, I am so happy, it\'92s sinful. This was such a wonder\-ful day! First, the South \softline American orders, then Kelly, then Magna, and finally getting her together with Kevin. \softline Would you care to bet they spend the night together? Unless Kevin\'92s fifty times dumber \softline than I think he is, of course. That girl is in love!\'94\par }{\plain \fs24 \f1 \tab As she said it, she saw Kevin and Kelly on the dance floor together. Because of the \softline height difference, even with high heels she scarcely reached above his chin. But the look \softline on her face was one of rapture. \'93Mr. Fitzpatrick, you didn\'92t respond. Do you care to lose \softline some money? Ten dollars, perhaps?\'94 She whispered up to his ear as she felt herself \softline floating around the dance floor.\par }{\plain \fs24 \f1 \tab \'93Sandra Donnell, you are impossible! My meager fortune is tied up in this company, \softline but you insist on having everything. If I end up working nights as a gigolo, just \softline remember it\'92s all your fault!\'94 he replied.\par }{\plain \fs24 \f1 \tab They went back to the table and their drinks. Kelly and Kevin joined them a few \softline minutes later. Even Cliff, who was normally impervious to such things, could see the \softline stars in both of their eyes. Without saying anything, he took out his wallet, folded up a \softline ten-dollar bill and passed in under the table to Sandy.\par }{\plain \fs24 \f1 \tab She took it and quietly smiled at him. \'93Thank you, dear,\'94 she whispered.\par }{\plain \fs24 \f1 \tab It was obvious Kelly had explained the short sale and its implications to Kevin. Cliff \softline looked at the young analyst and said, \'93I assume that news of the Magna work will really \softline cause problems for the short sellers. Am I right?\'94\par }{\plain \fs24 \f1 \tab \'93You certainly are,\'94 Kelly replied. \'93In the vernacular, they\'92re in deep shit! As usual, \softline the rule of the day is \'91bulls make money, and bears make money, and pigs get slaughtered!\'92 Never\-theless, I\'92m sorry we didn\'92t buy even more than we did. By the way, \softline Sandy, with all that garbage we were fooling with this afternoon, I forgot a basic question. I have been assuming you want the stock you buy in street name, that is, the \softline register\-ed owner will be Snyder Securities?\'94\par }{\plain \fs24 \f1 \tab Sandy let out a little yelp. \'93Good grief, yes! Absolutely! I have a feeling... Cliff, if \softline I had to bet money, I would bet it\'92s Ezra Stiles who\'92s behind all this. Incidentally, Kelly, \softline I will make arrangements to transfer all my holdings at the other broker to you \softline tomorrow. There\'92s just one thing: On September 30, I\'92ll need something very official \softline from Snyder Securities saying I am the beneficial owner of X\'96thousand shares of Murphy \softline Manufac\-turing.\'94\par }{\plain \fs24 \f1 \tab \'93Sandy, I have a question,\'94 Kevin asked. \'93How big a percent\-age of the company are \softline you going to inherit?\'94\par }{\plain \fs24 \f1 \tab \'93About 66 percent. Why?\'94 she answered.\par }{\plain \fs24 \f1 \tab \'93What\'92s the percentage to change the bylaws of the corpora\-tion? To call a special \softline election, or to change the term of directors?\'94 Kevin continued.\par }{\plain \fs24 \f1 \tab \'93I can answer that,\'94 Cliff interjected. \'93Before I became... familiar... with Sandy I \softline read that stuff. It\'92s two-thirds.\'94\par }{\plain \fs24 \f1 \tab \'93That\'92s sixty-six and two-thirds,\'94 Kelly said, excited now. \'93Sandy, you said you \softline bought stock off and on in the past. How much do you have?\'94\par }{\plain \fs24 \f1 \tab \'93I\'92m not sure. About seventy- or eighty-thousand shares. Something between \softline seventy and eighty, I\'92m sure. Why?\'94\par }{\plain \fs24 \f1 \tab \'93Bingo! We\'92ve won already,\'94 Kelly said elatedly, \'93and those turkeys don\'92t know it. \softline Your other shares are in street name, Sandy?\'94 she asked.\par }{\plain \fs24 \f1 \tab \'93Yes, but I don\'92t understand... Oh, yes I do! If it\'92s only 70,000 shares \'97 and I\'92m \softline sure it\'92s more \'97 that\'92s seven percent\-age points! Along with the family\'92s sixty-six, that\'92s \softline 73 percent! My God! Cliff, you will support me, won\'92t you?\'94\par }{\plain \fs24 \f1 \tab \'93Only if you give me my ten bucks back,\'94 he replied loftily.\par }{\plain \fs24 \f1 \tab She reached in her purse and took out his ten-dollar bill and handed it to him. It \softline was all she could do to keep from laughing. Nevertheless, Cliff kept a straight face. \softline \'93Since you asked so nicely, the answer is yes.\'94\par }{\plain \fs24 \f1 \tab Kelly looked puzzled. \'93What is the ten dollars for?\'94 she asked.\par }{\plain \fs24 \f1 \tab \'93Oh... nothing!\'94 they replied together.\par }{\plain \fs24 \f1 \tab Then they started laughing. Their laughter grew in intensity to the point they ended \softline hugging each other to keep from falling off their chairs. Kelly and Kevin looked at each \softline other and then looked at the other two. They didn\'92t understand a thing.\par }{\plain \fs24 \f1 \tab Sandy regained control and said, \'93So it\'92s over?\'94\par }{\plain \fs24 \f1 \tab \'93I really think so,\'94 Kelly replied. \'93What I heard from Cliff is your attorney, Stiles, \softline may be trying to pull a fast one. Didn\'92t I hear something about Cliff having performance \softline targets to reach?\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93You sure did... or at least, you could have. They exist, and it doesn\'92t look like there \softline is a snowball\'92s chance in hell of reaching them. Although the way things are going, we \softline might reach them a couple of months after the deadline. But why did you ask?\'94\par }{\plain \fs24 \f1 \tab \'93Cliff, as a schemer, you\'92re a great business strategist,\'94 Kelly replied. \'93Let\'92s say I\'92m \softline shorting the stock. It starts to rise on the basis of a complete operations turnaround. \softline Then the word gets out that the guy who made it all happen is out and some of the \softline turkeys who caused the problems in the first place are back in. What does the stock do?\'94\par }{\plain \fs24 \f1 \tab \'93Yeah, I know: three guesses, and the first two don\'92t count. It goes in the tank. But \softline what can we do?\'94 he asked.\par }{\plain \fs24 \f1 \tab Kelly smiled at Cliff affectionately. \'93It\'92s a damn good thing you are going to have \softline a very smart wife. Just remember to do what she tells you. Cliff, with 70 percent of the \softline stock, you can do anything! For example, you can call a special meeting of stock\-holders \softline to elect all the directors. Does Murphy have staggered terms for directors, by the way?\'94\par }{\plain \fs24 \f1 \tab \'93Yes,\'94 Cliff answered, \'93it does. As a matter of fact, it\'92s over a four-year span. Only \softline 25 percent of the board is up for election each year. In fact, the numbers are two, one, \softline two, and two.\'94\par }{\plain \fs24 \f1 \tab \'93We\'92re there! That\'92s it, I\'92m sure. Sandy, even if you want\-ed to use the family shares \softline to throw out the Board, it would take four years to do it, and three years to get a simple \softline majori\-ty. }{\plain \fs24 \i\f1 But}{\plain \fs24 \f1 with 70 percent, you\'92re there!\'94\par }{\plain \fs24 \f1 \tab \'93Of course!\'94 Sandy picked up. \'93I can call a special meeting of the Board to consider \softline bylaw revisions, and use my 70 percent to waive notice of the meeting. I then use it to \softline amend the bylaws to have all directors serve one-year terms. Then I call for a special \softline election of directors, and replace them all!\'94\par }{\plain \fs24 \f1 \tab Kelly stuck out her hand. \'93I love a smart woman! Damn it, Sandy, this smells right! \softline One more thing: Do you know how a corner on a stock works? Or should?\'94\par }{\plain \fs24 \f1 \tab Sandy\'92s face fell. \'93I have no idea. How does it work?\'94\par }{\plain \fs24 \f1 \tab \'93Let\'92s look at the Murphy situation because the numbers are so easy: First, let\'92s say \softline you own 78 percent of the stock \'97 that\'92s 780,000 shares. Now, there are two kinds of \softline shorts: The first are the ones who sold Murphy, rented stock from an owner \'97 usually \softline an institution or a brokerage firm \'97 and delivered the rented stock to the buyer. He \softline must replace the borrowed stock.\par }{\plain \fs24 \f1 \tab \'93The second type is what it looks like we\'92re seeing now. These are people who put \softline in sell orders assuming they can borrow shares to deliver. But we are already pretty sure \softline that the total number of shares sold exceeds the total number of shares outside the \softline family holdings. Murphy will almost certainly be in that position in a day or so if things \softline don\'92t change. They can\'92t deliver. It\'92s numeri\-cally impossible!\par }{\plain \fs24 \f1 \tab \'93Now here\'92s where the fun begins. It\'92s really the same in both cases. The short \softline seller must deliver shares to the buyer or to the owner from whom they were borrowed \softline }{\plain \fs24 \i\f1 or the value of the shares}{\plain \fs24 \f1 . We have some free shares \'97 more than you need for your \softline control positions. We can sell those shares }{\plain \fs24 \i\f1 at any price}{\plain \fs24 \f1 . And the price at which we sell becomes the market. We have the only shares available to anyone at any price. The \softline price we set becomes the settlement price for those who need to settle their positions in \softline cash.\par }{\plain \fs24 \f1 \tab \'93Sandy, you }{\plain \fs24 \i\f1 never}{\plain \fs24 \f1 sell your stock to the shorts. You ransom their position. In other \softline words, instead of selling them enough stock to cover their position, you get a huge price \softline from them to repay their lenders. The important thing is to }{\plain \fs24 \i\f1 never}{\plain \fs24 \f1 let the shorts actually \softline get their hands on the shares. They must go from you to the lender: the one who loaned \softline shares to the short to deliver against his original sale. Understand?\'94\par }{\plain \fs24 \f1 \tab \'93Of course! If the short has the shares, for even a couple of hours, he can use them \softline for their votes. And what you\'92re saying, Kelly, is a burned lender is unlikely to make the \softline shares avail\-able to the same person again. Right?\'94\par }{\plain \fs24 \f1 \tab \'93Absolutely!\'94\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Chapter 13}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab The next morning Cliff and Sandy were having their usual morning coffee when \softline Kelly arrived. They looked at her carefully. Cliff reached into his wallet and extracted \softline the still-folded ten-dollar bill and gave it to Sandy. \'93You won it fair and square,\'94 he said.\par }{\plain \fs24 \f1 \tab Kelly was bleary-eyed, but her eyes glowed. \'93What is that bill you two keep passing \softline back and forth? You were doing it all last night, too.\'94\par }{\plain \fs24 \f1 \tab Cliff looked at her and said, \'93You obviously need coffee badly. How do you drink it, \softline Kelly?\'94\par }{\plain \fs24 \f1 \tab \'93Just black this morning, please,\'94 she replied.\par }{\plain \fs24 \f1 \tab Cliff was already on his feet and headed for the coffee pot, leaving the girls alone.\par }{\plain \fs24 \f1 \tab \'93Kelly Cameron, how does Kevin look this morning? Better than you do, I hope.\'94\par }{\plain \fs24 \f1 \tab \'93He\'92s worse! He couldn\'92t... Sandra Donnell, what are you saying?\'94\par }{\plain \fs24 \f1 \tab \'93Oh, nothing,\'94 she said blithely. \'93You asked about the ten dollars, though, and I \softline was just answering you. It was a small wager I made with Cliff. I just said you two \softline would spend the night together and obviously you did. That\'92s all.\'94\par }{\plain \fs24 \f1 \tab Kelly tried to glare at Sandy, but ended up grinning. \'93San\-dra Donnell, I would like \softline to hate you but it\'92s very hard. Yester\-day was absolutely the greatest day of my life! It \softline started off well with you and Cliff and just got better. And the way it ended... Wow! \softline Professionally, financially, and personal\-ly!\par }{\plain \fs24 \f1 \tab \'93Sandy, Kevin has a real brain! And he\'92s not frightened of me. I have spent my \softline entire social life on the sidelines, just watching. I have always been so jealous of the \softline airheads who go gaga over any guy who just opens his mouth. I\'92ve even tried it, but \softline can\'92t make it work. Sooner or later I\'92ll say something \'97 or show I know something \'97 \softline that\'92s out of character, and I\'92m dead. But not last night.\'94\par }{\plain \fs24 \f1 \tab Sandy got up and shook hands with the other girl. \'93I know just what you mean. \softline With me it\'92s the same result but for a different reason. I was always a tomboy, so I \softline ended up every guy\'92s best friend\'92s little sister. It\'92s a great prescription for romance! \softline The guys pat me on the head and ask me if I want to throw a foot\-ball around.\'94\par }{\plain \fs24 \f1 \tab \'93Oh, I see!\'94 Kelly said brightly. \'93That\'92s what you and Cliff do all night! Throw a \softline football around? Of course. Sandy, I sent your check down to Chicago, Federal Express, \softline last night. Now I\'92m going to call the office and put out the word on the broad tape about \softline Murphy getting a trial order from Magna. I hope you don\'92t mind me cluttering up your \softline office, though.\'94\par }{\plain \fs24 \f1 \tab \'93Not in the least! You have done a tremendous amount for the company in the last \softline twenty-four hours. Kelly, I\'92m not sure either of us said anything but we certainly \softline recognize that the call from Magna came as a direct result of your broad-tape release. \softline Thank you.\'94\par }\sect \sectd \ds1\sbknone\pgndec\headery1440\footery1440\endnhere\endnhere {\header { \posxr\nowrap \plain \fs24 {\field{\*\fldinst { PAGE }}}\par} \par} {\*\pnseclvl1\pndec\pnstart1{\pntxta .}} {\*\pnseclvl2\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl3\pnlcrm\pnstart1{\pntxta .}} {\*\pnseclvl4\pndec\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl5\pnlcltr\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl6\pnlcrm\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl7\pndec\pnstart1{\pntxta .}} {\*\pnseclvl8\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl9\pnlcrm\pnstart1} \pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Cliff returned with the coffee, and the girls took theirs. Kelly got on the phone and \softline called her office. She spoke to several different people, one after the other, and finally hung up. \'93That was funny. I sent your check to Jack Snyder, and FedEx did its thing. \softline He was still staring at it when I called. His reaction was identical to mine: He\'92s never \softline seen a personal check for two million dollars. I gave them your fax number so they can \softline send us a copy of the broad tape piece on Murphy and Magna when it runs.\par }{\plain \fs24 \f1 \tab \'93Then I talked to Bill. Trading has just opened in New York, and it\'92s looking very \softline interesting.\'94 She changed the subject. \'93Sandy, were you at Michigan in the MBA \softline program?\'94\par }{\plain \fs24 \f1 \tab \'93Yes, why?\'94\par }{\plain \fs24 \f1 \tab \'93Because I think I remember seeing some reference to you in the alumni bulletin. \softline I guess I must have been ahead of you by a couple of years. This is what I always \softline dreamed of. Secur\-ities can be pretty dull sometimes, but now you can feel a real \softline dynamic at work. You can feel the market. And Murphy is small enough, and the stock \softline float is small enough... Wait a minute!\'94\par }{\plain \fs24 \f1 \tab She picked up the phone again and called Bill on the trading desk. \'93Bill, I forgot \softline something. No one knows this, but watch the Murphy volume! Because of the family \softline control of the company, they never paid much attention to the stock or the stock price. \softline They never traded it. But Bill, there are only one million shares, and \'97 this is the secret \softline \'97 Sandra Donnell already owns or controls about 75 percent of it.\par }{\plain \fs24 \f1 \tab \'93There are only about 250,000 shares out of the family\'92s hands. What happens if a \softline panicked short sells and }{\plain \fs24 \i\f1 can\'92t}{\plain \fs24 \f1 deliver? If there just aren\'92t any shares to be had? Let\'92s \softline face it, you guys don\'92t normally think about the total number of shares outstanding.\'94 \softline She listened for a few minutes and grinned. \'93Thanks, Bill. Keep in touch.\'94\par }{\plain \fs24 \f1 \tab She hung up the phone. \'93Bill thinks it may have started already. He\'92s started \softline pushing, and the stock is at thirty-two. He thinks volume has already been as much as \softline 100,000 shares this morning! He can\'92t be sure, of course because it\'92s hard to get the \softline total shares by issue until the exchange closes. But guys, there were 60,000 shares \softline traded yesterday. And that\'92s the offi\-cial number. \'93If Bill is anywhere near right, all but \softline about 90,000 shares of tradable stock have changed hands }{\plain \fs24 \i\f1 in less than twenty-four hours! \softline }{\plain \fs24 \f1 He asked me to thank you, too.\'94\par }{\plain \fs24 \f1 \tab \'93What do we do now, Kelly?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab \'93We wait and keep the pressure on. If I\'92m right, Murphy Manufacturing will be \softline suspended from trading within a couple of days. There are five days to settlement, the \softline day the seller has to deliver the stock he sold. If he doesn\'92t have it, he has to get it... at \softline any price! Do you follow me?\'94\par }{\plain \fs24 \f1 \tab \'93I sure do!\'94 Sandy said. \'93The next few days are absolutely critical. Let\'92s just enjoy \softline the coffee, shall we?\'94\par }{\plain \fs24 \f1 \tab She grinned and took the cups for refills. She came back later and dashed back out \softline again. When she returned the second time she had papers in her hand. \'93I think this is \softline what we\'92ve been waiting for,\'94 she said as she gave copies to the other two. She had \softline made copies of the faxed Dow-Jones news wire and they all read the release.\par }{\plain \fs24 \f1 \ul0 \tab A moment later Cliff cheered. \'93I think this is going to do it! I just wonder... Kelly, \softline do you know George Simpson of Ajax Industries?\'94 he asked.\par }{\plain \fs24 \f1 \tab \'93Sure do,\'94 she said, making a face. \'93Why?\'94\par }{\plain \fs24 \f1 \tab Cliff explained his former relationship with Stephanie and the circumstances \softline surrounding the loss of the Magna business: Ajax breaking its pattern and cutting price \softline to meet Murphy with the private understanding they would meet any Murphy price.\par }{\plain \fs24 \f1 \tab \'93Kelly, let\'92s say you\'92re George Simpson. You see on the broad tape that Magna is \softline receiving test quantities from Murphy. What do you do, if anything?\'94\par }{\plain \fs24 \f1 \tab \'93I just might go berserk! I just might call Magna and tell them they can\'92t buy from \softline Murphy.\'94 Kelly replied looking very thoughtful. \'93Excuse me again. Do I have to leave \softline quarters with the treasurer for all of these phone calls? I\'92m really sorry. I should be \softline using my credit card.\'94\par }{\plain \fs24 \f1 \tab \'93You do, and I\'92ll kill you!\'94 Sandy said quickly. \'93You\'92re making money for us in big \softline bunches.\'94\par }{\plain \fs24 \f1 \tab Kelly looked in her notebook and dialed a number in Chicago. The phone was \softline answered moments later. \'93Hi, Bill. It\'92s Kelly Cameron from Snyder Securities. I just \softline saw a piece on the broad tape that Murphy Manufacturing is shipping test quantities of \softline valves and rings to Magna. I thought you folks at Ajax had all that business, or at least \softline all of yours plus what used to be Murphy\'92s. Do you have a comment?\'94 She listened for \softline a few moments and then spoke again. \'93Thanks, Bill, but I\'92m not in my office. I just \softline called in, and they told me. Can I call you back in... say, an hour? Thanks a lot. I\'92ll do \softline that.\'94 She hung up the phone.\par }{\plain \fs24 \f1 \tab \'93I think I just waved the red cape in front of the bull. Bill is in financial public \softline relations at Ajax. George Simpson can\'92t react to what he doesn\'92t know. He\'92ll know in \softline a matter of minutes. Do you mind if I take a walk so you people can get some work \softline done?\'94\par }{\plain \fs24 \f1 \tab Sandy grinned at her friend and said with a wink, \'93Kevin\'92s office is down the hall \softline on the right. I hear his couch is very comfortable.\'94\par }{\plain \fs24 \f1 \tab \'93Sandra Donnell, you are terrible!\'94 Kelly said. But she went down the hall looking \softline at offices on the right.\par }{\plain \fs24 \f1 \tab Forty minutes later Cliff\'92s phone rang. It was Jack Crow\-ther calling from Magna. \softline \'93Hi, Jack, how are you? I\'92ve got the answers for you, I think. My people tell me if you \softline want normal trial quantities we can ship in five days. Is that good enough?\'94\par }{\plain \fs24 \f1 \tab \'93That\'92s great, Cliff.\'94 He gave Cliff the plant location to which the test quantities \softline were to be shipped. \'93There\'92s something else, though. I guess I stuck my neck out to my \softline top management a few minutes ago. I\'92m taking your personal assurance on the Kaga \softline quality thing.\'94\par }{\plain \fs24 \f1 \tab \'93I\'92m glad you reminded me, Jack. What\'92s your fax number? I received the \softline permission from Japan I expected, and will be happy to fax you a copy of the managing director\'92s letter to me. You can have it in seconds.\'94 Cliff jotted down the number, and \softline Sandy went to the fax machine. \'93It\'92s on its way. Now what\'92s this business about \softline sticking your neck out?\'94\par }{\plain \fs24 \f1 \tab \'93Cliff, this is all in confidence, okay? I\'92ll tell you what you can use later. Apparently \softline George Simpson at Ajax just went berserk. I gather there was a broad-tape announce\- ment that you had been asked to submit test quantities of rings and val\-ves.\'94\par }{\plain \fs24 \f1 \tab \'93I hope that wasn\'92t premature?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab \'93According to our general counsel, you had to make the an\-nouncement. Obviously, \softline it doesn\'92t amount to much at our end, but it certainly does at yours. No, he says what \softline you did was not only correct, it was legally required. That\'92s not the problem.\'94\par }{\plain \fs24 \f1 \tab Crowther paused for a moment to collect his thoughts and then continued, \'93Cliff, in \softline some ways we\'92re a strange company. People think we\'92re slow moving, and I guess it\'92s \softline generally a fair comment. However, we don\'92t like to be pushed around. Simpson went \softline right to our Chairman. He told him if we bought ten cents worth of product from \softline Murphy, Ajax would cut us off across the board. It\'92s fair to say our Chairman was not \softline pleased. I gather he told Simpson some unpleasant places he could go and said we buy \softline from the most qualified supplier. Period!\par }{\plain \fs24 \f1 \tab \'93Just a minute, Cliff. I just got the Kaga letter, and I want to read it.\'94 There was \softline silence on the phone for a few minutes. Then Cliff heard Jack yell \'93That\'92s it!\'94 and tell \softline his secretary to make a copy of the fax and hand-carry it to the Chairman immed\-iately.\par }{\plain \fs24 \f1 \tab \'93Thanks, Cliff. My neck\'92s off the block. That letter says exactly what you told me \softline and a lot more. I just asked my secretary to take it to the Chairman personally. Here\'92s \softline the deal. I told him you were now a fully-qualified supplier of top-quality components... \softline based on the letter I hadn\'92t seen until just this minute. He instructed me to set up a \softline phase-in schedule for Murphy parts, scaling up to a volume that would be your old \softline volume plus all of Ajax\'92s. As a purchasing officer, I feel like a fool, but can you do it for \softline approxi\-mately your old price? Let\'92s say the old price, plus 5 percent?\'94\par }{\plain \fs24 \f1 \tab \'93That\'92s a fair price, Jack. Yes, we can handle the work. I\'92ll get you the timing as \softline soon as possible. Obviously, the key consideration is availability of machine tools from \softline Micronics. Now, Jack, what announcement can I make? Your counsel said it: It may \softline not be material to you, but it sure as hell is to us. What you\'92re talking about will triple \softline Murphy\'92s gross sales. Hell, we\'92ll be over a billion in sales! Now what am I authorized \softline to say?\'94\par }{\plain \fs24 \f1 \tab \'93You can say you have received a letter of intent from Magna Motors to purchase \softline parts at a volume equal to triple your former level. You\'92ll have the letter in less than five \softline minutes on your fax. The order is guaranteed for twenty-four months from the date of \softline achieving full-scale production. In other words, Cliff, the time it takes you to scale up \softline to our production requirements doesn\'92t count against the contract term. Murphy is \softline price-protec\-ted with prices scaled to the Department of Commerce Producer Price Index. \softline Is that fair?\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93That\'92s more than fair, Jack. It\'92s a deal, and you\'92re going to be amazed at the \softline quality you get. Our people tell me you have never seen product as good as we\'92ll be \softline shipping. Thanks for the confidence. I\'92ll be back to you as soon as we know about the \softline production scaling.\'94\par }{\plain \fs24 \f1 \tab He looked up at Sandy. \'93Did you get the drift of the call? We\'92re back in with Magna \softline at a scale triple our old volume at a five-percent price increase, with price protection, }{\plain \fs24 \i\f1 and}{\plain \fs24 \f1 \softline a twenty-four month supply contract! It\'92s abso\-lutely unheard of. It\'92s just never done!\'94\par }{\plain \fs24 \f1 \tab Kelly had returned to the office to call Ajax back. Cliff briefed her on his call from \softline Crowther at Magna. \'93Do you know what you have done young lady? In less than \softline twenty-four hours \'97 on your initiatives \'97 we\'92ve gone from no place to Magna\'92s top \softline supplier. And Kelly, in confidence I\'92ll tell you our costs have come down to such an \softline extent, we will absolutely mint money on this contract!\'94\par }{\plain \fs24 \f1 \tab Sandy had left the office. When she returned, she again had papers in her hand. \softline They were copies of the Magna letter that had just been received. Kelly read it and then \softline read it again. \'93This is unreal! Letters like this are just not sent in the automotive \softline industry. Orders are forward rolling with some leads, but they are almost never long \softline term. Well, it\'92s back to the tele\-phone.\'94\par }{\plain \fs24 \f1 \tab Again she called her office in Chicago.\par }{\plain \fs24 \f1 \tab While she did, Cliff and Sandy talked. Finally, Sandy grinned and nodded. She \softline tapped Kelly on the shoulder and asked to speak to Jack Snyder before she hung up. \softline Kelly nodded and continued to dictate an announce\-ment of the Magna contract. She \softline asked for Jack Snyder and passed the phone to Sandy.\par }{\plain \fs24 \f1 \tab \'93Jack, this is Sandy Donnell again. Kelly tells me you got my check this morning. \softline Jack, I have a request to make. Kelly doesn\'92t know anything about this. You have two \softline million dollars of my money. I don\'92t know if you\'92re aware of the fact she put in $250,000 \softline of her own. I know a broker is always supposed to execute a client\'92s order ahead of his \softline own. I want to change that: On the Murphy purchases, I\'92m going fifty-fifty with Kelly \softline until she runs out of money. Of course, anything beyond that is obviously mine. I want \softline that to be effective with the first orders yesterday. If you need something in writing, just \softline fax me up what you want me to say, and I\'92ll sign it.\par }{\plain \fs24 \f1 \tab \'93Jack, I can\'92t tell you how important Kelly has become to me. She\'92s certainly worth \softline a lot more than the commission she\'92ll get on my trades. Understand? Incidentally, she\'92s \softline handling my entire portfolio which is in process of being transferred to you. Okay? \softline Thanks so much.\'94 She hung up and laughed at Kelly whose jaw had dropped.\par }{\plain \fs24 \f1 \tab \'93Sandy, that\'92s too much. I mean... things just don\'92t happen like this. You\'92re in a \softline rough, tough, dirty-fingernails kind of business. You\'92re not supposed to behave this \softline way!\'94\par }{\plain \fs24 \f1 \tab \'93Kelly,\'94 Cliff said, \'93let me tell you something about Sandy. The company means \softline everything to her. Money doesn\'92t. I really think she sweats Monopoly money in the \softline board game more than her own. We\'92ve been living together for months now. I can tell you she lives on her pay as a secretary, for God\'92s sake. Believe it or not, I never thought \softline of her dividend income until you men\-tioned it yesterday. I suspect the only time she \softline does, either, is at tax time. Strange, perhaps, but very true.\par }{\plain \fs24 \f1 \tab \'93Of course the real reason she did it is when Murphy stock goes in the tank, you two \softline go together. Sandy\'92s a cautious investor. She likes her broker to be in it with her.\'94 He \softline grinned with the last words.\par }{\plain \fs24 \f1 \tab Kelly just shook her head and picked up the phone and called Ajax. \'93Bill, it\'92s Kelly \softline again. Any reaction? By the way there is something that just came to our office from \softline Murphy. They announced a two-year supply contract from Magna Motors. Appar\-ently \softline it\'92s all of their old volume plus all of yours.\'94 She lis\-tened for a few moments. \'93I\'92m sure \softline it will be on the broad tape.\'94\par }{\plain \fs24 \f1 \tab She continued listening and then said, \'93I understand, Bill. Look, I\'92m not going to \softline use what you just said. Why don\'92t you go back to Simpson... No, wait a minute. I like \softline you, and I don\'92t want you to get fired. Give me your fax number and I\'92ll have the off\-ice \softline fax you a copy of the broad-tape announcement when it comes over. I\'92ll call you late this \softline afternoon. Thanks.\'94\par }{\plain \fs24 \f1 \tab She leaned back in Cliff\'92s chair, then sat bolt upright. \'93My God, I\'92m dumb!\'94\par }{\plain \fs24 \f1 \tab Sandy and Cliff looked at her in bewilderment as she grabbed her attach\'e9 case and \softline took out her financial cal\-cu\-la\-tor along with a pad of paper. She started going over her \softline numbers, checked them again, and picked up the phone. \'93Kathy, it\'92s Kelly. Get out a \softline flash to all our customers and put it on the broad tape if Dow-Jones will take it.\par }{\plain \fs24 \f1 \tab \'93I am pre\-dicting earnings for Murphy Manufacturing of at least $30 per share pretax \softline for next year, rising to $100 pretax the year fol\-low\-\-ing. The basis is estimated sales well \softline above $1 billion within two years, coupled with substantially improved operating \softline margins. I think 10 percent pretax on sales is possible. And for God\'92s sake, bury \softline anything at all negative on Murphy I ever wrote. I\'92m a raging bull! Okay? Thanks.\'94\par }{\plain \fs24 \f1 \tab She hung up the phone and grinned. \'93My God, what a jackass! It hadn\'92t even \softline occurred to me, and that\'92s what they pay me for! You people are about to mint money! \softline The present stock price is ridiculously low against your earnings prospects. Sandra Don\- nell, your damned stock will be trading around five-hundred in a year or so! My God, \softline that\'92s a value to you of over three-hundred million dol\-lars!\'94\par }{\plain \fs24 \f1 \tab Sandy looked very thoughtful. \'93Cliff, could you loan me twenty dollars? Kelly says \softline I\'92m rich, so we ought to eat steak tonight.\'94 She looked at Kelly quizzically. \'93How about \softline if we go shopping? I don\'92t think you want to wear those same clothes all week.\'94\par }{\plain \fs24 \f1 \tab The girls left and Cliff immediately called a staff meeting. He was chagrined to \softline realize how much had happened this morning, and no one knew it but himself, Sandy, \softline Kelly, and the rest of the financial world via the broad tape, but not his own people.\par }{\plain \fs24 \f1 \tab They assembled in the board room. Again, he had asked Max to join them. Only this \softline time he had asked him to bring his execu\-tive committee or whomever else he might \softline want. With all the people present, the room was crowded. Cliff was amused to see Kevin looking much the worse for wear, but with a very different look in his eyes. He rapidly \softline brought them up to date. When he concluded the update, he grinned at the group.\par }{\plain \fs24 \f1 \tab \'93Guys, I think we\'92re out of the woods, but we\'92ve got a lot of work to do. First, Max, \softline how do you want to handle the announcement. It\'92s up to you, but I was thinking about \softline the speech Sandy gave when she said it would be our objective to provide new jobs for \softline all the people who were laid off. I think we may be in a position to do that and maybe \softline go beyond. All I can say is if you and your people hadn\'92t done the job they did, this could \softline not have happened.\par }{\plain \fs24 \f1 \tab \'93I want you to know we know it, appreciate it, and want to do something about it. \softline Specifically, we\'92re thinking of a profit-sharing program for the whole company. With the \softline results we\'92re expecting, beginning next year, there should be some real profits to share. \softline At any rate, Sandy made the first speech. Do you think she might be the one to \softline announce the rehiring?\'94\par }{\plain \fs24 \f1 \tab Max looked at his people and saw grins and nodding heads. \'93Yes, sir, I certainly do. \softline Inciden\-tally, Peter Schmidt has something he\'92d like to say. Could he?\'94\par }{\plain \fs24 \f1 \tab \'93Of course, Max. What\'92s on your mind, Peter?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab \'93Mr. Fitzpatrick, I just wanted to say publicly that you and Max were right, and I \softline was wrong. I was one of the guys who said we should go out on strike. Max said it would \softline bury the company. There is no question Miss Donnell\'92s talk turned things around. We \softline were going out until she spoke, and I still voted to walk. That was probably the dumbest \softline thing I ever did in my life. You know something? You and Miss Donnell had more con\- fidence in us and our ability to produce than we did ourselves. Thank you, and thank \softline you for giving us the tools to work with. I agree completely with Max. She should talk \softline to the workers.\'94\par }{\plain \fs24 \f1 \tab The discussion moved on to scheduling and new equipment. Cliff was amazed at the \softline scale-up speed Bill and his people had in mind. He looked at Steve Muller who had been \softline shaking his head, and said, \'93Cliff, I have been wondering what I\'92m doing for a living. I \softline feel like the guy sitting on top of Old Faithful, just getting shot up in the air. I feel like \softline I\'92m just along for the ride!\'94\par }{\plain \fs24 \f1 \tab \'93Don\'92t worry about it, Steve. That\'92s the way I feel all the time. There\'92s just one \softline more thing, guys,\'94 Cliff said.\par }{\plain \fs24 \f1 \tab He then briefed them very quickly on the possible corner in the market for Murphy \softline stock. \'93We believe there are people who have sold shares who will not be able to get the \softline shares to deliver against their sales. Don\'92t ever forget the rat! It\'92s most dangerous when \softline it\'92s in a corner with no place to run. I think our rats are in a corner, and like the four-footed ones, are very dangerous. I\'92m very serious. People will do desperate things if \softline they\'92re facing financial ruin... and I think some people are.\'94\par }{\plain \fs24 \f1 \tab Cliff\'92s talk sobered up the people in the room who had been euphoric at the \softline company\'92s prospects. \'93Guys, let\'92s make damned sure the prospects become reality. \softline Okay?\'94\par }{\plain \fs24 \f1 \ul0 \tab When the two girls returned in time for lunch, Kelly was wearing a new dress. She \softline had obviously come back by way of her hotel to clean up. He briefed Sandy while Kelly \softline went off to lunch with Kevin.\par }\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 * * *\par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab When they all returned to his office after lunch, Cliff\'92s private line was ringing. It \softline was Kelly\'92s trader, Bill, for her. She listened on the phone for a few minutes, then said, \softline \'93Are you absolutely sure? You are? My God! We did it! Thanks Bill, that\'92s great news. \softline Keep buying if there\'92s anyone selling, okay? Great!\'94 She hung up the phone.\par }{\plain \fs24 \f1 \tab \'93Obviously, that was Bill. He\'92s confident that trading over the last two days has hit \softline 300,000 shares \'97 the price just hit forty! There aren\'92t 300,000 shares to trade! It\'92s a \softline damned corner, and I think we\'92re the only ones who know it!\'94\par }{\plain \fs24 \f1 \tab Sandy was thoughtful for a moment and then spoke to her friend. \'93I just want to be \softline sure I understand something: There have now been more shares sold than there are to \softline be sold. It\'92s possible someone sold today what he bought yesterday \'97 some canceling \softline trades \'97 but let\'92s say there are just a few. What exactly happens?\'94\par }{\plain \fs24 \f1 \tab Cliff quietly left the office before Kelly replied.\par }{\plain \fs24 \f1 \tab The broker said, \'93In the vernacular, the shit hits the fan. Remember the doggerel! \softline Within a matter of hours, the sellers are going to find there are no shares to deliver. It\'92s \softline not a matter of price, either. The shares simply do not exist! God! I almost feel like \softline flying to New York just to see what happens on the floor. I would, too, except this is so \softline arcane, no one would know what he was seeing!\par }{\plain \fs24 \f1 \tab \'93Sandy, do you and Cliff mind if I stay around for another day or so? Needless to say \softline \'97 al\-though maybe I should have said it \'97 Jack Snyder wants me to do anything \'97 \softline every\-thing! \'97 to keep you happy. In case you didn\'92t know it, you are our firm\'92s largest \softline account by far. Incidental\-ly, we\'92ve received your securities portfolio. Again, thank you \softline for your business.\'94\par }{\plain \fs24 \f1 \tab \'93Kelly, would you like an office? An apartment? I have already provided a lover, so \softline that\'92s taken care of. By the way, that glow in your face doesn\'92t look like the gleam of \softline avarice. It predates the invention of money by quite a few millennia! That wouldn\'92t be \softline in your thinking about staying over, would it?\'94\par }{\plain \fs24 \f1 \tab \'93Would it matter?\'94 Kelly asked in a small voice.\par }{\plain \fs24 \f1 \tab \'93Of course not! I think you\'92re going to find out something, if you haven\'92t already. \softline When you\'92re loved \'97 and I mean really loved \'97 it\'92s so damned great, you want everyone \softline to know it and feel it themselves. And I\'92m so desperately in love with Cliff I can\'92t stand \softline it sometimes. I just want to hold him and be held. Do you understand?\'94\par }{\plain \fs24 \f1 \tab \'93I don\'92t think I would have twenty-four hours ago, but I certainly do now! Sandy, \softline is it always this good? I mean... Kevin and I... It was }{\plain \fs24 \i\f1 all night,}{\plain \fs24 \f1 for God\'92s sake. I didn\'92t \softline think it was physically possible for a man...\'94 She had reddened, but still grinned. Sandy \softline grinned back.\par }{\plain \fs24 \f1 \ul0 \tab \'93I guess sometimes it is. Of course, with Cliff and me, since we\'92ve been together so \softline long... I mean we don\'92t do an all-nighter more than three or four nights a week \softline anymore. I don\'92t want you to get the wrong idea, though. We try, but just col\-lapse.\par }{\plain \fs24 \f1 \tab \'93By the way, you\'92re invited for dinner with Kevin if you would like to come and if \softline he\'92s available. Would you care to?\'94 Kelly accepted and went off to ask Kevin.\par }{\plain \fs24 \f1 \tab Just then Cliff re\-turned with a tall young man Sandy didn\'92t recall ever seeing before. \softline \'93Sandy, this is Sam Johnson. Sam, I would like to introduce you to Sandra Donnell who \softline owns the company. Sandy, Sam is the director in charge of the Pinkerton detail, and I \softline wanted to be sure he and his people are fully briefed. Where\'92s Kelly?\'94 Just then Kelly \softline returned, beaming. She was introduced to Johnson. Cliff asked her to brief him about \softline the market.\par }{\plain \fs24 \f1 \tab \'93Sam, have you ever heard of a corner in the stock mar\-ket?\'94\par }{\plain \fs24 \f1 \tab \'93Vaguely,\'94 he replied. \'93I thought it was something involving the robber barons that \softline went out at the turn of the century or something.\'94\par }{\plain \fs24 \f1 \tab Kelly grinned and said, \'93It sort of did. The only way it can happen is the way it\'92s \softline happening now. Not many shares of stock, and the bulk of it in a single pair of hands. \softline But it needs something else: There must be short sellers. There can\'92t be a corner if \softline people are buying and selling what they own. If they do, and there are a lot more people \softline who want to buy than want to sell, then the price just goes up fast.\par }{\plain \fs24 \f1 \tab \'93This appears to be a classic corner. As of two days ago, there was a very large short \softline interest. These were people who had sold short, borrowed stock to deliver, and are \softline waiting for the price to drop to cover their positions. Within the last twenty-four hours, \softline though, there have been more shares sold than there are shares. Now, there can always \softline be some day trading: someone buys at ten o\'92clock, say, and sells at two. There can be \softline some of that contained in the numbers.\par }{\plain \fs24 \f1 \tab \'93Nevertheless, there\'92s a devastating pattern for some\-one. First, it appears shares \softline have been sold that cannot be delivered. Second, there are the shorts from two days ago \softline who delivered borrowed stock they will have to replace. There just aren\'92t enough shares \softline in existence. Do you see the problem?\'94\par }{\plain \fs24 \f1 \tab Johnson had been listening intently. \'93I sure do! Am I correct in assuming these \softline people benefit if something bad happens to Murphy Manufacturing? Something that \softline would cause a lot of shareholders to want to sell?\'94\par }{\plain \fs24 \f1 \tab \'93Absolutely right!\'94 Kelly replied.\par }{\plain \fs24 \f1 \tab \'93And conversely, anything good that\'92s announced just pulls the noose tighter around \softline their necks, right?\'94 he continued. She nodded. \'93Then am I correct in assuming the time \softline of peak danger to the company is the next seven days? After that it\'92s probably too late \softline to help the shorts.\'94\par }{\plain \fs24 \f1 \tab \'93You\'92re there, Sam,\'94 Cliff said. \'93That\'92s why we\'92re meeting right now. I wanted to \softline be sure you fully understand the problem. The other thing is we want to do every\-thing possible to protect ourselves. Bill Stevens made the arrangements with your people. He \softline couldn\'92t have explained this to them because we didn\'92t know it ourselves until a few \softline minutes ago. Now, do you have all the manpower and equipment you can use, and, if \softline not, what more do you need and how fast can you get it?\'94\par }{\plain \fs24 \f1 \tab \'93May I use your phone, please, sir? I want to talk to my regional director.\'94\par }{\plain \fs24 \f1 \tab \'93Of course!\'94 Cliff replied.\par }{\plain \fs24 \f1 \tab Johnson picked up the phone and dialed a number. He asked for a name Cliff didn\'92t \softline pick up and then started speaking. \'93Boss, it\'92s Sam. I\'92m at Murphy Manufacturing, and \softline they have a very dangerous situation over here.\'94 He quickly explained the reasons for \softline the danger. Then he listened intently and started taking notes. Finally he said, \softline \'93Thanks, Boss. That sounds like it ought to do it.\'94 and hung up.\par }{\plain \fs24 \f1 \tab Turning back to Cliff he said, \'93I don\'92t want to pat myself on the back, sir, but I think \softline it\'92s lucky you called us. We\'92re big, and have a lot of resources we can deploy on short \softline notice. I should warn you, though, this isn\'92t going to be cheap. What we\'92re proposing \softline is this: First, we would like to put an armed guard in every truck leaving Murphy and \softline have it trailed to its destination with an unmarked car to cover against hijacking. Next, \softline we\'92re going to get some teams here and put them on the roof tonight. We have special \softline infrared equipment that can light up the surrounding area so it\'92s like daylight if you \softline have the right glasses. Finally, we propose to double the plain-clothes detail in the plant \softline during working hours, and put attack dogs in the plant at night.\'94\par }{\plain \fs24 \f1 \tab He grinned, and continued, \'93All I can say is I wouldn\'92t care }{\plain \fs24 \i\f1 ever}{\plain \fs24 \f1 to meet one of those \softline damned dogs in a dark plant. Only you don\'92t meet just one. They run in packs. I went \softline in one night after the dogs trapped an intruder. They\'92re trained to hold a person who\'92s \softline still. They don\'92t attack, then, they just hold. This poor clown was scared stiff. Even \softline with the dogs gone, he liter\-ally could not move. He was taken to jail on a stretcher. \softline Anyway, how does the program sound? We\'92ll plan on seven days and see what happens.\'94\par }{\plain \fs24 \f1 \tab Sandy nodded, and Cliff said, \'93It\'92s fine. When do you start?\'94\par }{\plain \fs24 \f1 \tab Johnson smiled again. \'93Before I hung up the phone. By now, your place is going to \softline be crawling with our people. I better dash and get them all deployed. It\'92s been \softline delightful meeting you all. Let\'92s keep our fingers crossed!\'94 He shook hands all around \softline and left.\par }{\plain \fs24 \f1 \tab It was time for Sandy to give her speech so they went down to the plant. Cliff was \softline very pleased to see faces he didn\'92t recog\-nize spotted around the plant pushing brooms, \softline and apparently handling boxes, but in all cases being very alert. A broom-pusher \softline stopped near by and spoke to Cliff without looking at him. It was Sam. \'93I just heard \softline about the speech to the workers. Ob\-vious\-ly, my people are on the alert, because this \softline would be the perfect time for someone to move. All the workers are in one place with the \softline machine tools uncovered.\'94\par }{\plain \fs24 \f1 \tab Sandy was introduced and started speaking: \'93Ladies and gentle\-men, we may be out \softline of the woods. This morning we received an order from Magna Motors. It is for three times the volume we used to have! As soon as equipment can be installed, we\'92ll be \softline expand\-ing production and rehiring. A few months ago I stood here and said I recognized \softline an obligation to the people we were forced to lay off. We have the obligation, and we \softline have not forgotten: With luck, they will all be back at work within ninety days. I want \softline you to know it was }{\plain \fs24 \i\f1 your work}{\plain \fs24 \f1 that created these jobs. The quality of product we\'92re \softline shipping now is the best it has ever been in the company\'92s history. We\'92re rebuilding this \softline company on quality: the quality you\'92re producing. I can only say, please don\'92t stop. \softline Personally, I don\'92t think you will. I learned something from Cliff Fitzpatrick. He said \softline workers want to do a good job. I hoped he was right, but I wasn\'92t sure. Now I }{\plain \fs24 \i\f1 am}{\plain \fs24 \f1 sure! \softline You\'92re doing it. Thank you for your sup\-port.\'94\par }{\plain \fs24 \f1 \tab The workers cheered. She waved, and they cheered louder. Then she brought Max \softline and Cliff to the podium, and they cheered even louder.\par }{\plain \fs24 \f1 \tab Finally, Max waved for quiet. \'93Thanks, Sandy! Brothers and Sisters, that is all I can \softline say or need to say. Management \'97 ownership \'97 kept it\'92s word. Sandy said if we did the \softline job, we would have the jobs back. She was dead right. I\'92m proud as hell, and I know you \softline are, too.\par }{\plain \fs24 \f1 \tab \'93There\'92s just one more thing: I can\'92t go into the details, but you must be on your \softline guard for the next seven days. You know the Pinkertons are here. There are people who \softline we are almost certain will try to sabotage our opera\-tions here within the next five days. \softline If you see anyone \'97 and I mean }{\plain \fs24 \i\f1 anyone}{\plain \fs24 \f1 \'97 you don\'92t recognize, notify a Pinkerton \softline immediately. They know their jobs, but they don\'92t know our people. You do. You point \softline them to the stranger, and they\'92ll do the rest.\par }{\plain \fs24 \f1 \tab \'93The owner took care of us as she promised she would. I promised her we would \softline take care of her plant. That\'92s }{\plain \fs24 \i\f1 my}{\plain \fs24 \f1 promise and the union\'92s promise to her. Make damn \softline sure we deliver on that promise! Now let\'92s all get back to work!\'94\par }{\plain \fs24 \f1 \tab They went back to Cliff\'92s office and Sandy took off her white coat that she wore for \softline the speech. Kelly said, \'93I wish I could have heard your previous speech to the workers, \softline Sandy. My God! I have never seen anything like it. You could have heard a pin drop \softline while you were speaking. They believe in you! They really do, and it\'92s so great to see.\'94\par }{\plain \fs24 \f1 \tab There was a message waiting for her to call her trader which she did immediately. \softline \'93Bill, it\'92s Kelly. What\'92s up?\'94 she said. She listened and quickly made a thumbs-up sign \softline for the others to see. \'93My God! you\'92re kidding! It\'92s at forty!\'94 She continued to listen, \softline and then thanked him and hung up.\par }{\plain \fs24 \f1 \tab \'93Murphy closed at forty. Bill\'92s certain there\'92s a corner. It jumped beginning thirty \softline minutes before the close. He doesn\'92t think they\'92ll be able to open trading in the \softline morning.\'94\par }{\plain \fs24 \f1 \tab Then she dialed another number. It was the financial public re\-la\-tions man at Ajax. \softline \'93Hi, Bill. It\'92s Kelly again. Do you have any word for me?\'94 She listened intently, and \softline finally said, \'93Thanks, Bill. I know it\'92s not for publication, but let me know as soon as \softline you have anything official. You know how to reach me.\'94 She hung up and leaned back in the chair. \'93Folks, the cham\-pagne is on me tonight. Where can I get some Dom \softline P\'e9rignon?\par }{\plain \fs24 \f1 \tab \'93Sandy, based on your instructions, Bill got us another $300,000 in Murphy \softline averaging about thirty-five. I guess our shares have an average cost of about thirty over \softline the two days, so that\'92s a total of 1,600 or 1,700 shares. I\'92m out of money, but the damn \softline stock is now at forty! I have made eight thousand dollars in one day!\'94\par }{\plain \fs24 \f1 \tab They went back to the apartment, and Cliff helped Sandy with preparations for the \softline dinner. He continued to be impressed at how organized she was. At seven-thirty, the \softline doorbell rang. It was Kevin and Kelly with two bottles of champagne. He put one in a \softline wine cooler and put the other in the refrigerator. Then Kevin started opening a bottle \softline which was already chilled. Sandy came in with hors d\'92oeuvres as Kevin poured the \softline cham\-pagne.\par }{\plain \fs24 \f1 \tab Cliff looked at his glass and then looked at Kelly. \'93I don\'92t know which is bubbling \softline more, Kelly, you or the cham\-pagne. I think you are.\'94\par }{\plain \fs24 \f1 \tab The dinner was a smashing success with Sandy serving a roast sirloin of beef. After \softline coffee and cognac, Kevin and Kelly excused themselves, mumbling something about it \softline being a very long day. Sandy didn\'92t even kid them about the longer night to follow.\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Chapter 14}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab It was Tuesday morning following a very eventful week. Kelly\'92s estimate from a \softline week earlier proved to be correct. First the financial papers, then the business sections \softline of the daily press, and finally the general-interest press including TV and the news \softline weeklies, discovered Murphy Manufactur\-ing Company and the first corner on a \softline securities market since the Hunt brothers tried to corner silver. But unlike the Hunt \softline situation, which even experts argued over, Murphy was easy to understand.\par }{\plain \fs24 \f1 \tab As one anchorwoman said, \'93It\'92s nice of them to have an even one million shares. It \softline makes the percentages so easy to calculate.\'94 And it sure did. It now appeared that there \softline were nearly 100,000 shares sold which couldn\'92t be delivered \'97 nearly 10 percent of the \softline company\'92s stock. One thing had not happened: The sel\-lers of the shares had not yet \softline surfaced. Today was the settle\-ment day for Tuesday\'92s trades, so it was only a matter of \softline hours.\par }{\plain \fs24 \f1 \tab As Bill had predicted, they had tried to open the stock the previous Wednesday, but \softline ultimately could not. The specialist on the floor reported to the exchange governors that \softline he had bids in his book as high as sixty, but there were no sellers. He had sold out his \softline own posi\-tion the previous day. When he was criticized for his failure to make an orderly \softline market in the stock, he pointed out how thin the market for the stock was and how few \softline shares were normally traded. The inventory of shares he had would have lasted two to \softline four weeks at any time over the prev\-ious three years. Now they went out in a matter of \softline a couple of hours as he tried to make a market.\par }{\plain \fs24 \f1 \tab The governors asked around but could not find any shares for sale even at a \softline hypothetical $100 a share. They gave up and formally suspended the stock from trading. \softline Now they watched and waited.\par }{\plain \fs24 \f1 \tab So far the company security was holding solidly. Too sol\-idly for a couple of kids who \softline were taking a shortcut through a previously unnoticed hole in a fence, and too solidly for \softline a poor pizza delivery man who sheepishly showed the guards sur\-rounding him a large \softline pepperoni pizza he was delivering.\par }{\plain \fs24 \f1 \tab Sandy was sitting across from Cliff with her coffee, giggl\-ing to herself. He looked at \softline her strangely. \'93What\'92s got into you? I didn\'92t think you were the giggling type.\'94\par }{\plain \fs24 \f1 \tab \'93I was just thinking about yesterday in the cafeteria. You missed the funniest scene \softline in years. I didn\'92t want to embarrass the other two by telling you yesterday afternoon \softline while they were around, and last night we had other things to do. Anyway, you know \softline how in a crowded place, every once in a while there\'92s a moment of quiet?\par }{\plain \fs24 \f1 \tab \'93Well just as one occurred, everyone in the place saw Kelly standing against Kevin\'92s \softline chest and heard her screaming up at him, \'91I can\'92t marry you! I refuse to be Kelly \softline O\'92Rourke!\'92 The whole place just broke up. It\'92s been the talk of the plant. They all think \softline it\'92s great. They were wonder\-ing who that beautiful dark-haired girl is. Now they \softline know.\'94\par }{\plain \fs24 \f1 \tab She looked up just as Kelly came in. \'93And speak of the devil! Here she is!\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93Would you two please do something about this... this Irish wolfhound who keeps \softline following me around!\'94 She came in followed by Kevin, who grinned at the two of them \softline and winked at them over Kelly\'92s head. \'93Sandy, do something! You own this joint. Can\'92t \softline you get him to do some work or molest a secretary or something?\'94\par }{\plain \fs24 \f1 \tab \'93Kelly, you must be thinking of two other people. All I do is get the coffee. No one \softline reports to me. I don\'92t even get to share a secretary. Wait until I address the Midwest \softline Women Finan\-cial Executives meeting in Chicago in November! (I didn\'92t tell you, Cliff, \softline but they invited me down as the featured speaker.) Wait until I tell them that I do your \softline correspondence, get your coffee, and perform... other personal services. Boy, are they \softline going to hear about it!\'94\par }{\plain \fs24 \f1 \tab \'93But what about your treasury duties?\'94 Kelly asked. \'93Who does those?\'94\par }{\plain \fs24 \f1 \tab \'93I do those, too. Cliff says that once a good cash manage\-ment system is up and \softline running, all you have to do is watch the wheels turn.\'94\par }{\plain \fs24 \f1 \tab \'93So what do you do?\'94 Kelly persisted.\par }{\plain \fs24 \f1 \tab Sandy shrugged. \'93I watch the wheels turn,\'94 she replied with a grin. \'93You\'92ll have \softline to ask Cliff about Kevin. He\'92s the CEO.\'94\par }{\plain \fs24 \f1 \tab \'93Okay, Cliff, you do it!\'94 Kelly demanded.\par }{\plain \fs24 \f1 \tab Cliff pretended to look puzzled. \'93Do what?\'94\par }{\plain \fs24 \f1 \tab \'93Damn it! Tell this big lug to get to work and quit bother\-ing me. That\'92s what!\'94\par }{\plain \fs24 \f1 \tab \'93Oh, dear!\'94 Cliff said plaintively. \'93I can\'92t do that. Kelly, I guess you don\'92t know \softline much about systems people, do you?\'94\par }{\plain \fs24 \f1 \tab \'93I guess not, Cliff,\'94 she replied sarcastically, \'93but I sure know when I\'92m being \softline conned! But please continue.\'94\par }{\plain \fs24 \f1 \tab \'93Kelly, they\'92re very scarce. Good ones are nearly impos\-sible to get, and unfortunately, Kevin\'92s one of the very best. Hell, I can\'92t tell him to do any\-thing. Ask Sandy. \softline She\'92ll tell you that it takes at least an hour of discussion to try to figure out what sort \softline of mood he\'92s in. We have to wait for just the right time, or he\'92ll get mad and sulk... or \softline something worse.\'94\par }{\plain \fs24 \f1 \tab He smiled at her. \'93Actually, Kelly, I want to thank you. His mood has been so much \softline better since you have been around. He hasn\'92t smashed a computer since you have been \softline here and that\'92s almost a full week now!\'94\par }{\plain \fs24 \f1 \tab By this time everyone in the room including Kelly was laugh\-ing. She and Kevin \softline collapsed in the sofa. \'93Okay then, both of you. Just tell Kevin I can\'92t possibly marry \softline him because the name, Kelly O\'92Rourke, sounds absolutely ridiculous. It\'92s really a stupid \softline name, isn\'92t it?\'94\par }{\plain \fs24 \f1 \tab \'93I don\'92t know. I think it sounds very nice... a bit ethnic, but nice,\'94 Cliff said with a \softline straight face.\par }{\plain \fs24 \f1 \ul0 \tab \'93A bit ethnic, my ass! Kevin O\'92Rourke, if you persist, so help me I\'92ll have the map \softline of Ireland tattooed on my chest, right over my boobs. What do you think about that?\'94\par }{\plain \fs24 \f1 \tab Kevin looked thoughtful, and then visibly brightened. \'93I think it\'92s a fine idea. A bit \softline dramatic and not really neces\-sary, but a fine idea. What do you two think?\'94\par }{\plain \fs24 \f1 \tab By this time, Sandy was laughing too hard to do anything except slowly shake her \softline head. Cliff just held up his hands in a sign of surrender. \'93You keep us out of this! I \softline have one ques\-tion, though. Kevin, you\'92re Catholic, aren\'92t you? How about you, Kelly?\'94\par }{\plain \fs24 \f1 \tab \'93My father is Presbyterian. Only my mother is Catholic,\'94 she said.\par }{\plain \fs24 \f1 \tab \'93What about you?\'94 Cliff persisted.\par }{\plain \fs24 \f1 \tab \'93I\'92m Catholic,\'94 she replied reluctantly.\par }{\plain \fs24 \f1 \tab \'93Great! When is the wedding?\'94\par }{\plain \fs24 \f1 \tab \'93I\'92ll think about it,\'94 she mumbled.\par }{\plain \fs24 \f1 \tab Then she turned on the sofa, grabbed Kevin, and melted into his arms. Awhile later \softline she came up for air. They heard her whisper, \'93Of course I\'92ll marry you, you big lug. I \softline feel sorry for you. And I love you so damned much. But Kelly O\'92Rourke, indeed!\'94 She \softline went back into his arms.\par }{\plain \fs24 \f1 \tab Just then Cliff\'92s phone rang. Again, it was Bill from the Snyder trading room for \softline Kelly. She reluctantly pulled away from Kevin, straightened her clothes ostentatiously, \softline and took the phone.\par }{\plain \fs24 \f1 \tab \'93What\'92s up, Bill?\'94 She listened for a while, while she was looking at Sandy. \'93Bill, \softline exactly how many shares do we have now? Okay, but you know the drill: Placed back \softline with the origi\-nal owners, with the voting rights retained by us until October 15. If they \softline don\'92t like it, tough. It\'92s a condition of the sale.\'94\par }{\plain \fs24 \f1 \tab She hung up the phone and looked at the others. \'93The pot is starting to boil. Bill \softline says he\'92s never had so much fun \'97 or so many phone calls. Suddenly, Snyder Securities \softline is famous as the only place in the country with a known holding of Murphy Manufacturing shares outside of the family. The phone is ringing off the hook, and we\'92re about to \softline ransom some posi\-tions. Sandy, we bought 16,000 shares Monday and Tuesday. So far \softline we\'92ve only received 7,000. I propose to do this: We will ransom the 7,000 shares back \softline to known lenders. They must establish prior ownership. You heard me tell Bill we \softline retain voting rights until October 15. The price is $1,000 a share.\'94\par }{\plain \fs24 \f1 \tab Sandy was aghast. \'93You did say $1,000 dollars... per share!... didn\'92t you?\'94\par }{\plain \fs24 \f1 \tab Now it was Kelly\'92s turn to tease. Her face fell and she looked as if she was going to \softline cry. \'93It\'92s not enough? You\'92re convinced I\'92m leaving money on the table. Well, Sandra \softline Donnell, I have to live with myself. Any more than... $2,000 a share?... would be cruel! \softline Don\'92t you agree, Cliff? Cliff?\'94\par }{\plain \fs24 \f1 \tab \'93Don\'92t bother me, Kelly. I\'92m too busy dreaming. I own ten thousand shares, \softline remember. Cameron, that\'92s ten million dollars! Would you like to sell one thousand shares for me? Then I can get out of hock to the bankers, and maybe have enough left \softline to buy my future bride an engagement ring. A pretty one.\'94\par }{\plain \fs24 \f1 \tab \'93Are you serious, Cliff?\'94 Kelly asked.\par }{\plain \fs24 \f1 \tab \'93I sure am!\'94 he replied, \'93But it\'92s on the same basis as you\'92re doing it. Kelly, it\'92s time \softline for me to join the crowd. Where are the forms for me to sign to make you my broker, \softline too? I\'92ll arrange for my shares to be transferred to Snyder. One thing more: What \softline about the eight thousand shares you haven\'92t received?\'94\par }{\plain \fs24 \f1 \tab Kelly grinned again. \'93It\'92s simple. The seller buys out of the contract at the present \softline market price for Murphy shares \'97 $1,000 \'97 unless, of course, Bill\'92s greed gets the \softline better of him and he pushes the price up higher. He is greedy, too. I think $1,000 is just \softline a start. But do you see what\'92s happening? These little deals }{\plain \fs24 \i\f1 are}{\plain \fs24 \f1 the market. The fact \softline that the stock\'92s listed on the AMEX has nothing to do with nothing. These sales will be \softline duly reported to the Exchange and go out on the tape. We }{\plain \fs24 \i\f1 are}{\plain \fs24 \f1 the market! We have the \softline only shares avail\-able at any price.\par }{\plain \fs24 \f1 \tab \'93Whoops, I nearly forgot. I have to call my friend at Ajax Industries. He\'92s been \softline trying to reach me.\'94 She picked up the phone and dialed the number. \'93Hi, Bill. It\'92s \softline Kelly Cameron. I was told you\'92ve been trying to reach me.\'94\par }{\plain \fs24 \f1 \tab She listened, and made noncommittal noises of comprehension on the phone, but it \softline was obvious she was extremely excited. She was jumping in her chair although her voice \softline remained impassive. Finally she said, \'93Thanks Bill. When will this be on the wire?\'94 \softline She nodded, and said \'93Thanks for the confidence. I appreciate it! Stay in touch.\'94\par }{\plain \fs24 \f1 \tab She hung up and exclaimed, \'93George Simpson is out at Ajax! The Board demanded \softline his resignation. Apparently, some Board members were advised by Magna of what \softline Simpson had done. They confronted him and he admitted telling the Chairman of \softline Magna that Ajax would cut them off if they bought from Murphy. That\'92s an antitrust \softline felony, and Magna threatened to sue for treble damages in an antitrust action. The \softline Board had no choice, so Simpson is history.\'94\par }{\plain \fs24 \f1 \tab Sandy excused herself to make a phone call while the others considered the effect of \softline the action. Cliff said, \'93I think that makes it easier for us. We have reason to believe \softline Ajax has rather high total costs. They carry a corporate overhead charge that won\'92t quit, \softline including a whole fleet of corporate aircraft. I don\'92t think they can come after us on \softline price, and I don\'92t believe they can do it on quality either. My God! I think, we\'92re home \softline free!\'94\par }{\plain \fs24 \f1 \tab Just then the plant\'92s emergency whistle screamed. Cliff and Kevin raced for the \softline door with Cliff grabbing his hard hat on the way out. They raced down to the plant floor. \softline As they reached it, they heard screaming police sirens coming their way. At one of the \softline production machines a man they didn\'92t recognize was lying face-down on the floor \softline covered by Pinkerton guns.\par }{\plain \fs24 \f1 \tab He recognized Sam Johnson quickly securing the man\'92s hands behind him with \softline handcuffs. \'93What happened, Sam?\'94 Cliff asked. He could see other Pinker\-tons roping off a clear area for the police, while others went back on patrol. A few minutes later, \softline police started to arrive on the scene.\par }{\plain \fs24 \f1 \tab \'93We caught this guy starting to tamper with the machine. Look.\'94 An inspection \softline port was nearly off the machine. Sitting nearby was a bag of what appeared to be very \softline fine-grain sand. The police were about to help the man up when Johnson\'92s walkie-talkie \softline squawked. He had an earpiece so others couldn\'92t hear. Suddenly his face became grave.\par }{\plain \fs24 \f1 \tab He turned to a police sergeant who was obviously in charge of the detail. \'93Sergeant, \softline you better take a couple of men along the back fence. You\'92ll see a couple of my men \softline about halfway along. This is now a murder investigation: One of my guards is dead!\'94\par }{\plain \fs24 \f1 \tab Sandy and Kelly had just come up to them and overheard what Johnson had said. \softline Cliff saw them both go pale. Sam spoke quietly into his microphone, obviously giving out \softline the news and new orders. Cliff realized that things had taken a sudden, very deadly turn \softline as he saw the Pinkertons loading their weapons and checking them.\par }{\plain \fs24 \f1 \tab The sergeant returned and went to his radio car where he called for homicide \softline detectives and the morgue wagon. When he rejoined Sam, he extended his hand. \'93I\'92m \softline terribly sorry,\'94 he said. \'93I knew your man when he was on the force. He was a damned \softline good cop. I think we ought to let our friend lie there until the detectives arrive. From \softline the looks of Jack\'92s head back there, I think we\'92re going to find a black\-jack or something \softline similar on this joker. And you know what? Our lab is going to send him to the chair \softline with the forensics.\'94\par }{\plain \fs24 \f1 \tab The detectives arrived and searched the man. As the ser\-geant had predicted, there \softline was a sap filled with lead shot in his pocket. It was wet with blood on one side. The \softline police crime lab people were soon on the scene.\par }{\plain \fs24 \f1 \tab Bill asked if he could have a small sample of what was in the bag. The material \softline looked like fine-grain sand, and they gave him some in a small plastic bag. As the techni\- cian did so, he suddenly became interested in the material himself. He warned Bill to \softline be careful with it. \'93I don\'92t know exactly what this stuff is,\'94 he said, \'93But I have a hunch \softline it\'92s not just sand.\'94\par }{\plain \fs24 \f1 \tab A now-somber group went back up to Cliff\'92s office, accom\-panied by Sam Johnson. \softline Sam was the first to speak. \'93I just talked with my office, Mr. Fitzpatrick. This changes \softline things for us... dramatically. We tend to take it very personal\-ly when one of our men \softline gets killed in line of duty. It\'92s not you and them any more, sir. It\'92s them and }{\plain \fs24 \i\f1 us! }{\plain \fs24 \f1 I have \softline been asked to advise you of a proposed change in arrangements. The Pinkerton Detec\- tive Agency proposes to work at our cost until this is cleared up. Clearly, it isn\'92t yet. Is \softline our proposal satisfac\-tory?\'94\par }{\plain \fs24 \f1 \tab Cliff looked at Sandy who was nodding her head. \'93It\'92s very satisfactory. There\'92s \softline only one thing, Sam. We\'92re called Sandy and Cliff around here. I\'92m sure you noticed, \softline and we\'92d ap\-preci\-ate it if you would call us that, too.\'94\par }{\plain \fs24 \f1 \tab Sam smiled and said, \'93Sure, Cliff. One thing I should mention to you: This is the \softline finest, most cooperative groups of workers it\'92s ever been our good fortune to work with. We couldn\'92t ask for better cooperation. And your people know our histo\-ry. They kid us \softline about it, in fact. Anyway, I want you to know we appreci\-ate it.\par }{\plain \fs24 \f1 \tab \'93There\'92s one more thing: It may sound personal, but it\'92s professional. Sandy, what \softline happens to the Murphy stock if some\-thing happens to you? What if you\'92re hit by a \softline truck? Who inherits?\'94\par }{\plain \fs24 \f1 \tab \'93Sam, I don\'92t know for sure. After October 1, it\'92s Cliff. Between now and then, I \softline really don\'92t know. Specifically, I don\'92t know if the shares are mine to bequeath now. If \softline they are, the answer is Cliff again. If not, I don\'92t have a clue.\par }{\plain \fs24 \f1 \tab \'93While we\'92re all being so forthcoming, there\'92s something else you should know, too. \softline Cliff and I suspect the trustee of the estate, Ezra Stiles, may be behind this. We don\'92t \softline have one tiny shred of evidence, though, but it\'92s the only thing that seems to match up \softline with behavior we\'92ve observed.\'94 She went on and explained the theory of the corner on \softline the market and the two-thirds voting at the meeting October first. Sam grinned when \softline he heard Sandy already owned over 74 percent of the stock, so any such plan was already \softline doomed to defeat.\par }{\plain \fs24 \f1 \tab He picked up the phone and called a number. He explained what he had just learned \softline and hung up. \'93I\'92m sorry,\'94 he said. \'93We don\'92t like playing target. This gives us a place \softline to start looking, and we\'92re really very good at looking.\par }{\plain \fs24 \f1 \tab \'93The answer to the question I asked about the stock is you don\'92t know and believe \softline you can\'92t ask. I agree. Under the circumstances, we propose to cover you with \softline bodyguards. I know it sounds melodramatic, but they work sometimes. Will you allow \softline us to do it, please, Sandy?\'94\par }{\plain \fs24 \f1 \tab \'93My God! I guess so. But it sounds so... so creepy!\'94\par }{\plain \fs24 \f1 \tab \'93Okay, then. I\'92ll be running the bodyguard detail because we know one another, \softline assuming that\'92s all right with you?\'94 Sandy instantly agreed and Sam said, \'93Well, I\'92m \softline off.\'94\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Chapter 15}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab It was a Monday evening in late August. Cliff was trying to watch a preseason \softline Monday Night Football game while Sandy was trying to distract him. They were both \softline having fun when Sandy\'92s phone rang. It was Sam Johnson calling from his car out front. \softline There was trouble at the plant, and he wanted them to return with him to the plant at \softline once. He offered to take them in his car. Sandy put her clothes back on with some \softline reluctance, and Cliff rearranged his. \par }{\plain \fs24 \f1 \tab As they drove towards the plant Sam explained what had happened. One of his \softline rooftop teams had seen two men cutting through the wire in the rear of the plant. They \softline were allowed to come through the fence and move well away from the wire before the \softline floodlights were turned on. The men were told to stand still while guards were called. \softline Instead, they drew guns and started shooting.\par }{\plain \fs24 \f1 \tab Sam said, \'93It wasn\'92t their brightest idea. The guys I have on the roof are all veteran \softline snipers from Vietnam days. As one of them told me one time, he\'92s heard enough \softline incoming rounds to last him. Anyway, my men smoked them. I think one is dead and \softline the other was hit pretty hard. We\'92ll see.\'94\par }{\plain \fs24 \f1 \tab When they reached the plant, there seemed to be dozens of police cars with their \softline emergency lights casting blue and red beams of light all around. As they reached the \softline location where police cars were con\-cen\-trated, they found the patrol sergeant calling for \softline the bomb squad. The lawmen knew each other. The sergeant greeted Sam and \softline introduced himself to Cliff and Sandy.\par }{\plain \fs24 \f1 \tab Smiling at Sandy he said, \'93You look even better in person than you do on TV. I saw \softline you inter\-viewed about that stock corner thing. I\'92m very pleased to meet you. The guys \softline who are down apparently have enough explosives with them to level this place. Miss \softline Donnell, someone doesn\'92t like you very much.\'94\par }{\plain \fs24 \f1 \tab Meanwhile, Sam checked his men. They were all in position and very alert. Sam \softline looked on while his men gave their statements to the police. When they finished up, Sam \softline took one more look around and then drove them back to the apartment. Sandy asked \softline him if he could join them for a beer. He grinned and accepted.\par }{\plain \fs24 \f1 \tab They entered the apartment and saw the football game was still on. Sandy said, \'93I \softline know when I\'92m not wanted!\'94 She brought out beer and pretzels, and went back for \softline cheese and crackers.\par }{\plain \fs24 \f1 \tab Green Bay was playing the Jets in a preseason game at the Meadowlands and the \softline Packers were actually winning. In spite of what she said, Sandy was an avid football fan. \softline All three were watching the game closely right to the end which came about eleven. The \softline Packers had hung on to win.\par }{\plain \fs24 \f1 \tab Sandy produced more beers, and the three relaxed. Cliff was the first to speak. \softline \'93Sam, it never occurred to me to ask. Were those guys you picked up tonight identified?\'94\par }{\plain \fs24 \f1 \ul0 \tab \'93I didn\'92t make them,\'94 Sam replied. \'93And that reminds me: As far as I know, there\'92s \softline no make on that killer from last month, either. This whole deal bothers me. For that \softline matter, I haven\'92t heard of an identification of that substance he had. Last I heard, it was \softline being sent to the FBI crime lab. One thing is for damn sure: somebody doesn\'92t like you \softline a whole lot!\par }{\plain \fs24 \f1 \tab \'93But there\'92s something in our favor: There have been two attempts in thirty days. \softline Both attempts left bodies on the ground. It sounds weird, I know, but it makes it a hell \softline of a lot easier to keep my men on their toes. There\'92s nothing quite like shots being fired \softline to maintain a guy\'92s concentration.\'94\par }{\plain \fs24 \f1 \tab He got out of his chair. \'93I had better get back to the car. Thanks very much for the \softline beer, Sandy. I enjoyed it. Good night, folks.\'94\par }\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 * * *\par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab On Saturday morning, Sandy had an early appointment at the beauty parlor. She \softline was going to sneak out but decided it would get the detectives on duty in trouble. She \softline had learned that Sam was an ex-major in the Marine Corps. She decided he could strip \softline flesh from bones with his voice, and she didn\'92t want to be the cause of it so she called the \softline number she had been given.\par }{\plain \fs24 \f1 \tab The voice at the other end said very pleasant\-ly, \'93Please wait, Miss Donnell.\'94 A \softline moment later, the voice came back and said, \'93You will be taking your car from the \softline garage, ma\'92am?\'94 Sandy said she would be, and the voice said it was clear to proceed.\par }{\plain \fs24 \f1 \tab Sandy thought it was a lot of cloak-and-dagger nonsense, but she played the game. \softline Her beauty parlor was located in a shopping mall. After parking in the large parking \softline area she walked towards the en\-trance.\par }{\plain \fs24 \f1 \tab Suddenly, an arm grabbed her around the neck from behind, and she felt something \softline sharp at her back. Then she heard the word she had been told to expect: \'93Drop!\'94\par }{\plain \fs24 \f1 \tab She did exactly what she had been told. Letting her body go limp she dropped \softline straight to the ground while ignoring the sharp object. Instantly, shots rang out and a \softline heavy body fell on top of her. Even covered as she was by the body on top, she could still \softline hear more shots fired, then the squeal of tires followed by the sound of a car crash. \softline Seconds later, the body lying on top of her was pulled off.\par }{\plain \fs24 \f1 \tab Again it was Sam Johnson. Although she was starting to shake, she managed a grin. \softline \'93For Heaven\'92s sake, Johnson, don\'92t you ever go home? And what did I do this time?\'94\par }{\plain \fs24 \f1 \tab He looked her over and whis\-tled softly. \'93Sandy, I\'92m afraid you\'92re going to need a \softline new blouse. And maybe we better get you to a hospital. I think he nicked your back \softline with his blade.\'94\par }{\plain \fs24 \f1 \tab Sandy glanced at the body lying on the ground and quickly turned her head away. \softline Magnum bullets had torn the assailant to shreds. \'93Sam Johnson, we will do no such \softline thing! I\'92m fine, and... Holy cow! I\'92m late for my appointment. They\'92ll cancel me.\'94\par }{\plain \fs24 \f1 \ul0 \tab Sandy sprinted off. Sam waved and two Pinkertons, one of them a woman, ran after \softline her. Sam was both concerned and amused. Sandy had done it perfect\-ly even though he \softline had been unable to get her to rehearse. He smiled as he thought about the police \softline reaction. He could hear sirens already racing to the scene.\par }{\plain \fs24 \f1 \tab The man who had grabbed Sandy was dead. Three Pinkertons had been shooting, \softline including himself. Sam knew he and at least one of the others used .357 Magnums so \softline the assail\-ant was in pieces. }{\plain \fs24 \i\f1 My God}{\plain \fs24 \f1 ! he thought, }{\plain \fs24 \i\f1 She didn\'92t even blink. This is a girl \softline worth guarding!}{\plain \fs24 \f1 \par }{\plain \fs24 \f1 \tab When the police arrived, they took the two men in the get\-away car into custody \softline while the morgue wagon was on its way to retrieve the assailant. On this investigation, \softline the patrol sergeant quick\-ly gave way to a lieutenant of homicide, Lemuel Collins. \softline Clearly, the Milwaukee Police Department was getting tired of the attacks involving \softline Murphy Manufacturing.\par }{\plain \fs24 \f1 \tab Sam ex\-plained what had happened. He said he was in charge of a bodyguard detail \softline covering Miss Donnell and told how she had been grabbed from behind. \'93Lieutenant, \softline it looked like a kidnaping. It\'92s the only reason I can think of for two guys in the getaway \softline car. We yelled at Sandy to drop, and she did. I think her back was cut by his knife on \softline the way down. As soon as she was out of our firing line, three of us cut loose. I think we \softline may have overdone it a bit. The guy is shot to rags. Anyway, we have the other two. \softline Now I would love to know where they intended to take her.\'94\par }{\plain \fs24 \f1 \tab \'93Where is Miss Donnell now? At the hospital?\'94 Collins asked.\par }{\plain \fs24 \f1 \tab Johnson grinned and shook his head. \'93No, sir. At the beauty parlor over there. \softline That\'92s why she\'92s here. She ran in, afraid she would lose her appointment.\'94\par }{\plain \fs24 \f1 \tab Collins looked at him strangely. Finally, he decided Johnson wasn\'92t kidding. \'93Shall \softline we have a talk with the intended victim?\'94\par }{\plain \fs24 \f1 \tab They walked over to the beauty parlor and waited while the operator finished with \softline Sandy. Finally she emerged from the shop. As they walked over, the female Pinkerton \softline was assuring her that Cliff would love her hair.\par }{\plain \fs24 \f1 \tab Sam introduced her to Lieutenant Collins who walked around her looking and then \softline said, \'93Tell me I\'92m seeing things. Miss Don\-nell, is your blouse being held together with \softline Scotch tape?\'94\par }{\plain \fs24 \f1 \tab Sandy smiled at him, \'93I\'92m sorry, Lieutenant, but it\'92s the best we could do. Does it \softline really look that bad? It\'92s not bleeding through the fabric, is it?\'94\par }{\plain \fs24 \f1 \tab Collins started to laugh. \'93Miss Donnell, you absolutely take the cake! You\'92re the \softline victim of an attempted kidnap. The assail\-ant is shot to pieces right on top of you. And \softline then you use Scotch tape... and Band-Aids?\'94 Sandy nodded as Collins contin\-ued, \'93...to \softline fix the damage.\'94\par }{\plain \fs24 \f1 \ul0 \tab Sandy looked at Sam. \'93Would it be an awful lot of trouble to swing by a hospital on \softline the way back? I think Cliff would kill me if I didn\'92t at least go through the motions of \softline being checked.\'94\par }{\plain \fs24 \f1 \tab Collins asked, \'93Miss Donnell, would you mind if I joined you? This whole thing is \softline becoming a major-league embarrassment to our department, and we don\'92t like being \softline embarrassed.\'94\par }{\plain \fs24 \f1 \tab Sandy agreed and a caravan, led by Lieutenant Collins with his flasher on, drove up \softline to the emergency room of a nearby hospital. In addition to Collins there was a patrol car \softline and two cars of Pinkertons. Collins escorted Sandy in, explained the situa\-tion and \softline turned Sandy over to a nurse. The female Pinker\-ton, Sally Ellsworth, accompanied \softline Sandy into the examining room. A doctor came into the room and told Sally that \softline relatives had to wait out front.\par }{\plain \fs24 \f1 \tab Sally said, \'93I am not a relative. I\'92m police, and I\'92m staying here!\'94\par }{\plain \fs24 \f1 \tab The doctor was startled, but acquiesced. Sandy carefully took off the remains of her \softline blouse and then the doctor looked at the long scratch. \'93What did you scratch yourself \softline on?\'94 he asked.\par }{\plain \fs24 \f1 \tab Sally answered, \'93She didn\'92t scratch herself. An assailant, now very dead, did it to \softline her this morning. It was a knife or an ice pick. I didn\'92t stick around to find out which.\'94\par }{\plain \fs24 \f1 \tab The doctor visibly paled but regained his composure. He asked Sandy about tetanus \softline shots and, when she couldn\'92t recall when she last had one, gave her another. He put \softline some antiseptic on the scratch and smiled. \'93Young lady, I gather you were very lucky. \softline There shouldn\'92t be any mark at all, and you probably you won\'92t even get a scab. The \softline only possible risk is tetanus, and we\'92ve taken care of that.\'94\par }{\plain \fs24 \f1 \tab Sandy put her bra back on and carefully put on her shredded blouse. She thanked \softline the doctor, and she and Sally went back outside. When the whole crew went back to the \softline apartment, Sandy asked if they would give her a few minutes alone with Cliff. She told \softline Sam she would call him on his car phone.\par }{\plain \fs24 \f1 \tab When she let herself in, Cliff was still sleeping so she shook him awake. He peered \softline up at her, bleary-eyed. Suddenly, the events of the morning hit her, and she started to \softline cry.\par }{\plain \fs24 \f1 \tab Instantly Cliff was wide awake. \'93Honey, what happened? What\'92s the trouble?\'94 She \softline went into his arms and continued to cry. As he held her, he felt the Scotch tape holding \softline her blouse together.\par }{\plain \fs24 \f1 \tab Finally, she regained control and told him about the events of the morn\-ing. \'93Cliff, \softline Sam and the police are outside waiting. Would you mind letting them in while I clean \softline up a little?\'94\par }{\plain \fs24 \f1 \tab He got dressed quickly and let the others in while she went to the bathroom to clean \softline up. Cliff called Sam, and a few minutes later he arrived and introduced Lem Collins. Cliff had made coffee for the group when Sandy joined them after washing her face and \softline putting on a new blouse.\par }{\plain \fs24 \f1 \tab Collins started off: \'93Mr. Fitzpatrick, frankly, we\'92re baffled. I have never seen a case \softline with more people in custody and less knowledge on our part. We have the guy who killed \softline the Pinkerton man and tried to sabotage your machine. We have the survivor of the two \softline who tried to blow up your place. We have two guys from the getaway car today. In \softline addition, we have two fresh bodies in the morgue. But we haven\'92t identi\-fied anyone! \softline They\'92re }{\plain \fs24 \i\f1 all}{\plain \fs24 \f1 still carried as John Does.\par }{\plain \fs24 \f1 \tab \'93I have been on the force for over twenty years, and this has never happened before. \softline More to the point, I can\'92t find any indication of it ever happen\-ing }{\plain \fs24 \i\f1 anywhere}{\plain \fs24 \f1 before. Not \softline even the FBI has been able to get a make on these clowns yet! Do you or Miss Donnell \softline have any ideas? Any place to start?\'94\par }{\plain \fs24 \f1 \tab \'93We have a suspicion, that\'92s all. We don\'92t have a shred of evidence,\'94 Sandy said. \softline \'93We suspect Ezra Stiles, the attorney who is trustee of my estate until the first of \softline October. As I said, there is no evidence. However, Cliff and I and some of our friends \softline came to the conclusion by working backward from a motive. He\'92s the one we came to. \softline He knows the company.\'94\par }{\plain \fs24 \f1 \tab She ex\-plained the Board meeting on October first and the corner in Murphy stock. \softline She finished by saying, \'93Lieutenant, let\'92s be honest: Murphy Manu\-facturing is a small \softline company. We\'92ve been listed on the exchange for a lot more years than I\'92ve been alive. \softline Similarly, there have been one million shares outstanding since before I was born. Why \softline the movement now? What\'92s different? The only thing different is Cliff Fitzpatrick.\'94\par }{\plain \fs24 \f1 \tab She then explained the loss of the Magna business, the Kaga contract, and Kelly\'92s \softline input. \'93So you see, a short sale was a pretty good move... if you didn\'92t know about the \softline Kaga contract, our export plans, and the Stores Southern Division. Finally, we have \softline reason to believe Stiles was blinded when we fired the treasur\-er, Pur\-cell, and then the \softline personnel director, Budd. Worst of all, from his position, the loss of his eyes couldn\'92t \softline have come at a worse time. He had knowledge of the losses, but he didn\'92t know about \softline the offsetting gains.\'94 She looked at the two detec\-tives and asked, \'93Does that make any \softline sense to you?\'94\par }{\plain \fs24 \f1 \tab \'93Miss Donnell, it\'92s scary. Have you mentioned your suspi\-cions to anyone else?\'94 \softline Collins asked.\par }{\plain \fs24 \f1 \tab \'93Yes, Lieutenant. To Sam Johnson. Sam, have your people found anything yet?\'94\par }{\plain \fs24 \f1 \tab \'93Sandy, I\'92m embarrassed. My people keep running into blind alleys. I agree with \softline the Lieutenant: We\'92ve never encountered anything like this before. And we\'92re not \softline alone. Lieutenant, you might as well know that the FBI is on the case, too. The SEC \softline brought them in because of possible Federal securities law violations. The last I heard, \softline there is still no word on who is caught in the corner on Murphy stock.\par }{\plain \fs24 \f1 \tab \'93I understand they tracked a huge chunk of the short sales to a bank in the Cayman \softline Is\-lands. All anyone could get is it is acting as the agent for a Cayman Islands Trust and cannot reveal the names of the principals because of the country\'92s bank secrecy laws. \softline In some cases they\'92re tougher than the Swiss, and this is apparently one of those cases. \softline The Swiss will give the govern\-ment a hard time on tax cases, but they are murderous on \softline securi\-ties fraud. In fact the Swiss are a hell of a lot tougher than we are. Over there, \softline you go to jail and they throw away the key.\par }{\plain \fs24 \f1 \tab \'93Lem,\'94 Sam said, \'93What about the guys you\'92ve got in custody? It\'92s utterly \softline inconceivable there are no records \'97 not even a traffic ticket, for chrissakes. Those guys \softline aren\'92t ama\-teurs, I guarantee it. Why, in hell, can\'92t we get a make?\'94\par }{\plain \fs24 \f1 \tab The phone rang and Sandy answered it. \'93Lieutenant, it\'92s for you.\'94 She gave him \softline the phone and he identified himself. Then he listened and a smile started to appear for \softline the first time. He thanked the caller and hung up.\par }{\plain \fs24 \f1 \tab \'93This may be the break. Remember that material the first guy had? The stuff that \softline looked like very fine-grain sand but wasn\'92t? My God,\'94 he reflected, \'93it\'92s been like \softline everything else in this case... in our hands but we don\'92t know what we have. Anyway, \softline that was the lab. They just heard from the FBI. Inci\-dentally, the Feds must be taking \softline this case seriously, too, if they\'92re working Saturdays. It seems that is very nasty stuff. \softline It comes from a very small company in Minnesota. Mr. Fitzpat\-rick, do you have a Bill \softline Stevens working for you?\'94\par }{\plain \fs24 \f1 \tab Cliff was immediately concerned, \'93Yes, of course. Why?\'94\par }{\plain \fs24 \f1 \tab \'93No trouble, sir. The lab says they gave him a small quantity of the stuff, and they \softline need it back. The Feds want it, and they want it all! Apparently it\'92s a very rare \softline material: There\'92s only one company in the world known to make it. For purposes of \softline sabotage, it couldn\'92t be better. It is gritty and will chew up machinery like sand. But \softline it can become explo\-sive. In the spot where the guy was going to put it there\'92s apparently \softline an oil sump. This stuff \'97 and they didn\'92t even tell us its name \'97 blends with the oil and \softline starts wearing at the bearings and such. But then, when the machine is going flat out \softline and heating up \'97 high produc\-tion volumes \'97 the stuff, mixed with oil, becomes explo\- sive. Very nasty stuff.\par }{\plain \fs24 \f1 \tab \'93There are two points here: First, there is only one known producer. Second, this \softline is }{\plain \fs24 \i\f1 very}{\plain \fs24 \f1 sophisti\-cated stuff. For securi\-ty reasons \'97 and I\'92m damned if I know what it\'92s \softline made for \'97 no mention has ever appeared in a general interest magazine or any\-where \softline else. In other words, some joker didn\'92t just happen to find out about it. He had to look \softline and look very hard. We just may have a break. Sam, one final question: How hard are \softline you folks riding Stiles? This is absolutely off the record, but you private investi\-gators \softline have been known to do things that get us civil servants cut off at the knees.\par }{\plain \fs24 \f1 \tab Sam smiled. \'93We\'92re riding him hard, and about to ride him even harder. Lem, my \softline people \'97 the top management of the agency \'97 are taking this case very personally. We \softline come out of a long tradi\-tion, too. We were President Lincoln\'92s intelligence ser\-vice, \softline remember. But let\'92s put it this way: We\'92ll be able to tell you the brand of cigarettes he smokes, if he ever smokes. Last question for you, Lem. When do you think someone will \softline have something on the stuff? And who\'92s chasing it? The FBI?\'94\par }{\plain \fs24 \f1 \tab \'93I guess so. Hell, I hope so. I don\'92t really know. Sam, let\'92s get out of these people\'92s \softline hair. Thanks very much for your time, and Miss Donnell, that was a remarkable bit of \softline work this morning. Sam told me about it. It is absolute\-ly the correct procedure, but it \softline almost never works in real life. I\'92m sure glad it did this time!\'94\par }{\plain \fs24 \f1 \tab \'93Lieutenant,\'94 Cliff said, \'93Before you leave, I have one more question. In your \softline opinion \'97 and in yours, too, Sam \'97 was this a kidnaping or a murder attempt? Your \softline answer is important.\'94\par }{\plain \fs24 \f1 \tab \'93Sir, I think it was a kidnaping. How about you, Sam?\'94\par }{\plain \fs24 \f1 \tab \'93I agree. Why, Cliff?\'94\par }{\plain \fs24 \f1 \tab \'93It may relate to the voting rights question with the stock. We suspect Ezra Stiles, \softline and we told you why. As a result, we haven\'92t asked him about the will provisions. \softline Lieutenant, wills are on file at the courthouse. Could you find out what the will \softline provisions are with respect to ownership \'97 and most particularly voting rights \'97 on the \softline Murphy stock? Let\'92s face it: The stock has got to be the key.\'94\par }{\plain \fs24 \f1 \tab \'93I understand. I\'92ll see what I can do. Let\'92s go, Sam.\'94\par }{\plain \fs24 \f1 \tab \'93Are you in a rush?\'94 Sandy asked. \'93I have a brainstorm I would like to try out on \softline you. And since it\'92s probably nothing but a waste of time, I\'92ll even throw in lunch. Can \softline you stay awhile?\'94\par }{\plain \fs24 \f1 \tab Lem shrugged and said, \'93This is my only case. They\'92re very serious about it \softline downtown. I have time. How about you Sam?\'94\par }{\plain \fs24 \f1 \tab Sam chuckled, \'93I\'92m the bodyguard detail. This keeps me closer to the body I\'92m \softline supposed to be guarding. What\'92s your idea, Sandy?\'94\par }{\plain \fs24 \f1 \tab \'93First, let me review a few things you guys have said or inferred: Sam, your people \softline are on Ezra like a blanket but you haven\'92t found anything to link him to the crime. Has \softline there been anything at all suspicious?\'94\par }{\plain \fs24 \f1 \tab \'93Not really, Sandy. No.\'94\par }{\plain \fs24 \f1 \tab \'93What do you mean by \'91not really\'92? It sounds like some\-thing isn\'92t quite right,\'94 she \softline persisted.\par }{\plain \fs24 \f1 \tab \'93Well there are a few strange-sounding phone calls, but they\'92re all to other directors. \softline It could be we just don\'92t know your business as well as we should.\'94\par }\sect \sectd \ds1\sbknone\margbsxn720\pgndec\headery1440\footery1440\endnhere\endnhere {\header { \posxr\nowrap \plain \fs24 {\field{\*\fldinst { PAGE }}}\par} \par} {\*\pnseclvl1\pndec\pnstart1{\pntxta .}} {\*\pnseclvl2\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl3\pnlcrm\pnstart1{\pntxta .}} {\*\pnseclvl4\pndec\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl5\pnlcltr\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl6\pnlcrm\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl7\pndec\pnstart1{\pntxta .}} {\*\pnseclvl8\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl9\pnlcrm\pnstart1} \pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Sandy beamed. \'93Perfect! Now listen: What if Stiles plays the r\'f4le with others that \softline Purcell and Budd were playing for him? An information source... a go-between? What \softline if it\'92s a group of directors? Murphy has a small board. There are only seven members. \softline Now, in the years Stiles has been running things, there have been three new directors \softline elected: Homer Cartwright, Palmer Metcalf, and Luke Foster. They\'92re all from out of \softline town. Foster is in Chicago, and Metcalf is in Minneapolis. When Sam men\-tioned Minnesota as the location of the company that makes the stuff, it started me thinking. \softline Finally, Cartwright is in Miami. What if there\'92s a real cabal rather than a single \softline mastermind? Does any of this make sense?\'94 She had an additional idea. \'93One more \softline thing: The car this morning. Where did it come from?\'94\par }{\plain \fs24 \f1 \tab She smiled at Cliff and said, \'93Honey, could you lend me twenty dollars?\'94\par }{\plain \fs24 \f1 \tab Cliff grinned and gave her two tens. \'93Now you guys see why she\'92s so rich and I\'92m \softline so poor! She only spends my money!\'94\par }{\plain \fs24 \f1 \tab Sandy ignored his jibe. \'93I\'92ll bet you each ten dollars that the car was stolen \'97 \softline probably from some suburban driveway \'97 this morning. Further, if your guys look, \softline Lieutenant, they\'92ll find a rental car parked less than a block away. Remember, you have \softline to have some kind of identification to rent a car. All their ID will be in the rental car, \softline probably in the glove box. If my guess is correct no one had any ID, right? None of the \softline others did.\'94 Sam and Lem looked at each other and shook their heads. Each reached \softline into a pocket and took out his shield case and handed it to Sandy.\par }{\plain \fs24 \f1 \tab \'93What\'92s this all about?\'94 she asked.\par }{\plain \fs24 \f1 \tab Lem spoke for both of them. \'93Since you\'92re the only one using a brain around here, \softline you ought to have the badges, too. Just a second. I want to show my people how smart \softline their lieuten\-ant is!\'94\par }{\plain \fs24 \f1 \tab He picked up the phone and made his call. \'93Sergeant, it\'92s Collins. Did you get a \softline trace on the car used this morning? Fine. Send a cruiser out to that area. Have the \softline boys start at the house and just go around the block. I\'92ll bet there will be a rental car \softline \'97 they\'92re all marked \'97 within less than a block. It will probably be up the block on the \softline next cross street. When they find it, tell them not to do anything except radio their \softline report. You can call me at this number. Thanks.\'94\par }{\plain \fs24 \f1 \tab Collins hung up the phone and turned to Sandy. \'93You asked if your idea makes \softline sense? Make sense! Sandy... may I call you Sandy?... it\'92s absolutely bril\-liant! Now let\'92s \softline see what hap\-pens.\'94\par }{\plain \fs24 \f1 \tab In the meantime Sam was on the phone requesting that the three men be checked \softline out. \'93Jack, pay particular attention to Metcalf. That strange stuff came from a very \softline small place in Minnesota. See if there\'92s any connection.\'94\par }{\plain \fs24 \f1 \tab Sandy prepared soup and sandwiches for lunch. While the foursome were eating, \softline Sandy\'92s phone rang. \'93Lieutenant, it\'92s for you.\'94\par }{\plain \fs24 \f1 \tab The officer took the phone and identified himself. As the person on the other end \softline spoke, he started smiling and reached for his wallet. Finally he said, \'93Great work, \softline Sergeant. Now, fax all the ID material we have on our John Does to Miami P.D. See if \softline they know these guys. You can reach me at the same number for a while longer. I\'92ll call \softline or radio when I leave.\'94\par }{\plain \fs24 \f1 \tab Lem had taken a ten-dollar bill from his wallet and given it to Sandy. Sam did the \softline same. Sandy took the money she had borrowed from Cliff and returned it. \'93Thank you, \softline dear. Now I want you both to see I pay my loans back, so you won\'92t pay attention when \softline he bleats about it again.\'94\par }{\plain \fs24 \f1 \ul0 \tab She grinned at Cliff and thanked the officers. \'93Now tell us what happened,\'94 she \softline said.\par }{\plain \fs24 \f1 \tab \'93You called it, Sandy. The car was stolen this morning from a suburban driveway. \softline You did everything except give us the damned street address. The cruiser found a rental \softline half-a-block away. And guess what? It was rented early this morning at the airport. \softline There aren\'92t many flights at that time because of noise rules. The only flight \'97 and the \softline one named on the car-rental reser\-va\-tion \'97 came in from Miami. I have some guys out \softline there now. They\'92re waiting for a guy from the rental company with another set of keys. \softline I\'92m sure you\'92ve heard Miami has become something of a crime capital. I\'92ll bet we get a \softline make on most of the guys from the Miami police. Give us a chance to get our money \softline back, Sandy?\'94\par }{\plain \fs24 \f1 \tab \'93Of course, Lem. Are you in, too, Sam?\'94 He nodded.\par }{\plain \fs24 \f1 \tab Minutes later the phone rang again. Collins took the call. \'93Bingo! It\'92s all there in \softline the glove compartment. ID on all three guys. We don\'92t know if it\'92s real, but we will in \softline a very short time. There\'92s something a little odd, though. The car was rented for a week \softline on a prepaid basis. The week isn\'92t odd, but the prepay is. It came from a travel agency \softline in Chica\-go, of all places.\par }{\plain \fs24 \f1 \tab \'93What if we find our friend...\'94 Lem checked his notebook and continued, \'93...Foster... \softline made the reservations? It\'92s possible that all the care was taken at this end. In other \softline words, very careful about Milwaukee contacts \'97 code communication between Stiles and \softline the others, for example \'97 but no particular care beyond that.\par }{\plain \fs24 \f1 \tab \'93Sam, did your people tape the calls?\'94\par }{\plain \fs24 \f1 \tab \'93They sure did! Just give me a minute.\'94 Sam picked up the phone and called his \softline office. He asked for the technical center, spoke to the supervisor, and explained what \softline he wanted.\par }{\plain \fs24 \f1 \tab Then he hung up and returned to the table. \'93They\'92re going to sift over the tapes and \softline put all the strange-sounding calls on a single tape. I sus\-pect they\'92re going to make a hell \softline of a lot more sense now that we know what we\'92re listening for. Incidentally, you\'92ll be \softline happy about one thing, Lem: We didn\'92t use phone taps. Instead, we used ultra-sensitive \softline noninvasive listening devices... all very legal.\'94\par }{\plain \fs24 \f1 \tab Lem picked up the phone and called another number. He identi\-fied himself and \softline waited. He finally spoke to someone named Bill and asked if he would care to join them. \softline He gave the address and hung up.\par }{\plain \fs24 \f1 \tab \'93Who was that?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab \'93That\'92s Bill Owen in the local FBI office. He\'92s on the case from the Federal side. \softline They are now }{\plain \fs24 \i\f1 very}{\plain \fs24 \f1 interested. There\'92s something about the stuff that has their interest, \softline there\'92s the securities angle and now there\'92s attempted kidnaping. Ever since Lindbergh, \softline they\'92ve been death on kidnaping. He\'92s coming right over. I hope you two don\'92t mind?\'94\par }{\plain \fs24 \f1 \tab A short time later the FBI agent arrived. They briefed him on the progress they had \softline made, with Lem stressing it all came from Sandy\'92s idea.\par }{\plain \fs24 \f1 \tab \'93Do you folks have any plans for today?\'94 Owen asked Cliff and Sandy.\par }{\plain \fs24 \f1 \ul0 \tab \'93I have taken care of my only date this morning, Bill. I had my hair done,\'94 Sandy \softline said with a grin.\par }{\plain \fs24 \f1 \tab \'93Sam, I hate to impose, but I would really like to hit the ground running on \softline Monday,\'94 the FBI agent said. \'93The other thing is the possibility of getting a break by \softline locating the place they intend\-ed to take Sandy. My guess is it\'92s in or near Chicago. That \softline makes our participation very official.\par }{\plain \fs24 \f1 \tab \'93At any rate, Sam, could all of us go to your place and listen to the tapes? I think we \softline have to have Cliff and Sandy. You said your people weren\'92t sure what they were hearing. \softline With these two listening we can drop obvious business calls and concentrate on what \softline can\'92t be more than a few others. They probably have a pretty simple code, if there\'92s any \softline at all. And my folks in Washington love to break codes! Cliff, are you willing?\'94\par }{\plain \fs24 \f1 \tab \'93Are you kidding? We\'92re the targets! Of course we\'92re will\-ing! By the way, Sam, I \softline didn\'92t have a chance to thank you for taking care of Sandy this morning. From what \softline Lem said, it must have been pretty hairy.\'94\par }{\plain \fs24 \f1 \tab \'93It was all Sandy. She did it just right. Bill, I yelled, \'91Drop!\'92 and she just dropped \softline like a stone. The guy just stood there like a silhouette target on the pistol range... and \softline that\'92s how he ended up. I\'92m going to call our lab and see how they\'92re coming.\'94\par }{\plain \fs24 \f1 \tab He picked up the phone and made the call. \'93They\'92ll be ready for us in less than an \softline hour. That\'92s about the time it will take to get there. Shall we go?\'94\par }{\plain \fs24 \f1 \tab The group was set up in a conference room at the Pinkerton office with a technician \softline present to handle the special high-speed tape recorder. He put on the first tape and \softline explained what they were going to hear. \'93We have Stiles\'92 office covered like a blanket. \softline You\'92ll hear sound shifts and changes in back\-ground sounds depending on which sound \softline source we used for a sound bite. We have at least three to choose from on each. There\'92s \softline one thing more: The voice on the other end is going to sound strange. We use a special \softline mike and a computer to reconstruct sounds. You can hear the words okay, but it does \softline sound a little weird.\'94\par }{\plain \fs24 \f1 \tab The first tape was made on the morning before trading was sus\-pended in Murphy \softline stock. They heard him talk to Miami. Cliff was the first to speak. He motioned to the \softline technician to stop the tape. \'93My God, Sandy, you are brilliant! He\'92s talking to Cart\- wright in Miami, and I think that\'92s a reference to the Cayman Islands trust. I\'92ll bet \softline Cartwright is the contact!\'94\par }{\plain \fs24 \f1 \tab As the afternoon wore on, they heard veiled references to all of the things they were \softline concerned with most particularly includ\-ing the sabotage, the attempted bombing, and \softline the kidnap attempt. Although Cliff and Sandy recognized them, it was easy to see why \softline the Pinkerton agents had missed the connections.\par }{\plain \fs24 \f1 \tab Owen was quickly on the phone, ordering an FBI raid on the suburban Chicago \softline Northside location where they planned on holding Sandy. He then called the office and \softline was connected to the Special Agent In Charge, the SAIC in the FBI\'92s lexicon. He asked \softline for the U.S. Attorney to request court permission to put taps on the phones of the four \softline men as soon as possible.\par }{\plain \fs24 \f1 \ul0 \tab Because of security laws, interstate kidnaping, and the mysterious stuff, there was \softline no lack of Federal jurisdiction. Based on the tapes, there was strong evidence of a \softline federal criminal conspiracy. When it was all over, they leaned back in their chairs. The \softline law enforcement officers were all smiles.\par }{\plain \fs24 \f1 \tab \'93Sam,\'94 Owen said, \'93your people have been doing an absolutely outstanding job on \softline this case. Between the Pinkertons and the Murphys, the paid law-enforcement agencies \softline have been getting a free ride. By the way, that fact is not lost on my SAIC. He\'92s more \softline than a little chagrined. As a result, he\'92s on the horn to Washington to make damn sure \softline we get into this act in a big way and fast!\'94\par }\page \sect \sectd \ds1\sbknone\pgndec\headery1440\footery1440\endnhere\endnhere {\header { \posxr\nowrap \plain \fs24 {\field{\*\fldinst { PAGE }}}\par} \par} {\*\pnseclvl1\pndec\pnstart1{\pntxta .}} {\*\pnseclvl2\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl3\pnlcrm\pnstart1{\pntxta .}} {\*\pnseclvl4\pndec\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl5\pnlcltr\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl6\pnlcrm\pnstart1{\pntxtb (}{\pntxta )}} {\*\pnseclvl7\pndec\pnstart1{\pntxta .}} {\*\pnseclvl8\pnlcltr\pnstart1{\pntxta .}} {\*\pnseclvl9\pnlcrm\pnstart1} \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 }{\plain \fs28 \b\f1\fs28 Chapter 16}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Several weeks later, all of the pieces were fitting into place. There was a conference \softline in progress in Cliff\'92s office. Sandy had made some changes in the executive office layout. \softline In just a couple of weeks she would be elected Chairman of the company and an office \softline was being built for her next to Cliff\'92s.\par }{\plain \fs24 \f1 \tab Cliff had teased her because her furnishings were quite modern. He pretended to \softline grump, \'93It\'92s going to cost us a fortune to redecorate the entire executive floor. No one \softline cared as long as everything was 1950\'92s business traditional, but now you\'92ve started \softline something.\'94\par }{\plain \fs24 \f1 \tab They also had a new secretary. Sandy had hired Stacey Evans who had formerly \softline worked for Stephanie Simpson. Sandy had called the girl as soon as she heard about \softline George Simpson\'92s termination at Ajax. It turned out the girl was married to a graduate \softline student and lived in Kenosha, Wisconsin, closer to Milwaukee than Chicago. She was \softline delighted to leave Stephanie. With Simpson out at Ajax, they doubted if Stephanie was \softline still with the public relations firm but no one cared enough to find out.\par }{\plain \fs24 \f1 \tab Stacey brought in a tray with coffee for the group which included Sandy, Sam \softline Johnson, and Kelly. Sam was briefing them on results. \'93It looks like the turkeys are \softline ready for roasting. It\'92s remarkable what a little knowledge can do to get people to talk. \softline It\'92s also clear, Sandy, that your theory of the cabal was accurate. There was great care \softline taken in Milwaukee, but apparent\-ly nowhere else. When the FBI raided the house near \softline Chicago where they were intending to take Sandy, the people there were cooperative.\par }{\plain \fs24 \f1 \tab \'93It turns out Metcalf was the link to the stuff as we suspected. He\'92s a friend of the \softline president of the little company. In fact, we understand he had been invited to join its \softline board. Cartwright has the Cayman Islands contacts. Apparently he\'92s been shuttling \softline back and forth, and there are dozens of telephone calls from his office to the Cayman \softline Islands bank that\'92s the source of so many of the uncovered short sales. He also has the \softline Miami underworld contacts that provided the manpow\-er.\par }{\plain \fs24 \f1 \tab \'93We\'92re not certain about that, and it doesn\'92t matter a whole lot, but the contacts for \softline the people could have been initiated in the Cayman Islands. There\'92s a lot of drug money \softline down there. Foster in Chicago seems to be the guy with most of the money. He doesn\'92t \softline seem to have taken as active a r\'f4le as the others, although he was pulled in because they \softline needed a place within reach to keep Sandy. That still puzzles us a bit. We have been \softline unable to figure out what they were intending do with her. They still haven\'92t covered \softline their short position, so they are financially destroyed, or soon will be.\par }{\plain \fs24 \f1 \tab \'93This brings me to the reason for our visit: The police and FBI are ready to move \softline on the gang now. However, they recog\-nize the case would still be open if it weren\'92t for \softline your coopera\-tion and your idea about the cabal. Actually, they did an excellent job of \softline screening themselves here in Milwaukee. If it hadn\'92t been for Sandy, I don\'92t know \softline where we would be. On the other hand, they did next to nothing out of town to cover \softline their tracks, so we worked the case from the outside in.\par }{\plain \fs24 \f1 \ul0 \tab \'93Anyway, they\'92re ready to move. When would you like us to? Our thought is to wait \softline until the voting rights are signed over to you and then arrest them. We would hate to \softline see the company tied up in knots because the voting trustee is in jail leaving no one with \softline the power to act. We\'92re willing to wait until October 1 to make the ar\-rests. How does \softline that sound?\'94\par }{\plain \fs24 \f1 \tab Cliff looked at Sandy, who shrugged. \'93Why don\'92t you do it then,\'94 Cliff said. Sam got \softline up to go.\par }{\plain \fs24 \f1 \tab Stacey saw the meeting was breaking up and brought in the mail. There was a very \softline large Federal Express mailing tube for Cliff, marked \'93Personal & Confidential\'94. He \softline opened it, curious about its contents and found that it was a large calendar. Along with \softline it was a rather lengthy letter from JL Wilson. Cliff glanced at the letter, then unrolled \softline the calendar. He asked Sam if he had a minute, and asked Kelly and Stacey to come and \softline look also.\par }{\plain \fs24 \f1 \tab \'93Sandy, this is a secret... at least for a few more minutes. I want these people to look \softline first.\'94\par }{\plain \fs24 \f1 \tab The three gathered behind Cliff\'92s chair and looked over his shoulder. Auto parts \softline suppliers specialize in cheesecake calendars they distribute to garages, service stations, \softline and service departments of car dealerships. This calendar, JL\'92s letter said, was }{\plain \fs24 \i\f1 not}{\plain \fs24 \f1 for \softline distribution. There had been a very limited run, just enough for the stores. It showed \softline Sandy wearing the white bikini she bought in Charlotte and lying on her back resting \softline on her elbows. With her back arched, her breasts were prominent, and her auburn hair \softline was hanging down loose. Cliff recalled the pose because she was looking at him when \softline it was taken. She looked gorgeous. In large letters below the pic\-ture were the words, \softline \'93Our Owner.\'94 Below the picture, in very small type, was the identification, \'93Sandra M. \softline Donnell, majority stockholder, Murphy Manufacturing Company, the owner of Southern \softline Auto Parts.\'94\par }{\plain \fs24 \f1 \tab The girls pretended to study it carefully. Kelly was the first to speak. \'93Stace, don\'92t \softline you think it\'92s a little too... conservative?\'94\par }{\plain \fs24 \f1 \tab Stacey cocked her head. \'93Well... a little, maybe.\'94\par }{\plain \fs24 \f1 \tab Then Sandy came over, her curiosity getting the better of her desire not to give Cliff \softline the satisfaction of seeing her acting curious. As she came toward the desk, Cliff laid the \softline calendar out flat and turned it around to face her. After placing some weights on the \softline corners to keep it flat, he began to read JL\'92s letter carefully.\par }{\plain \fs24 \f1 \tab \'93My God!\'94 Sandy exclaimed. \'93This is awful! Where did it come from? It had to \softline have been taken when we were in Charlotte, but I don\'92t remember any cameras. I know \softline we didn\'92t have one, and the Wilsons didn\'92t, either. Cliff, I feel awful!\'94\par }{\plain \fs24 \f1 \tab \'93Maybe this will make you feel better,\'94 he said. \'93JL writes that a member of his \softline club had a camera with a long lens and took it. He gave the picture to JL who later got \softline the nega\-tive.\'94 Cliff glanced at the calendar itself and continued. \'93You can see the calendar itself is different. The dates begin with August of this year and run through \softline December next.\par }{\plain \fs24 \f1 \tab \'93JL got the idea because he heard how effective your speech to the workers was here \softline in Milwaukee. He felt it was even more important to his people because they\'92re \softline scattered all over the South and aren\'92t in parts manufacturing at all. Furthermore, he \softline feels that his people tend to be a lot more motivated by personal loyalty than by loyalty \softline to some big company.\par }{\plain \fs24 \f1 \tab \'93He kept the whole thing a secret from us and apologizes to you, Sandy. However, \softline he wanted to see what would happen. What happened was sales in the units nearly \softline }{\plain \fs24 \i\f1 doubled.}{\plain \fs24 \f1 He sent this Federal Express because he said sometime this morning Kevin \softline O\'92Rourke or Jeff Stover will be running in with the sales results.\'94\par }{\plain \fs24 \f1 \tab There was a knock on the door. \'93Speak of the devil! Stace, you want to see who\'92s \softline there?\'94 Kevin and Jeff were at the door. Jeff was holding a stack of papers. As they \softline walked in, Cliff removed the paperweights and allowed the calendar to re-roll. The two \softline were obviously agitated.\par }{\plain \fs24 \f1 \tab \'93What\'92s the problem, guys?\'94 Cliff asked.\par }{\plain \fs24 \f1 \tab Jeff replied, \'93Our computers have gone crazy. It\'92s Southern Stores. Jamie \softline Carothers is beside himself! He\'92s afraid you\'92re going to fire him because he didn\'92t insist \softline on using the mainframe here in Milwaukee.\'94\par }{\plain \fs24 \f1 \tab \'93You still haven\'92t told us what happened. What did?\'94 Cliff persisted.\par }{\plain \fs24 \f1 \tab \'93Cliff, you know how our sales through the stores nearly tripled because of the \softline upgrades, and the rest? Well last month they almost doubled again off the higher base! \softline At least that\'92s what the numbers say. The puzzling thing is, though, they actually add \softline up. There are signifi\-cant out-of-stocks for the first time, and there are also major \softline increases in warehouse movement.\par }{\plain \fs24 \f1 \tab \'93What should we do?\'94 Jeff asked.\par }{\plain \fs24 \f1 \tab Sandy\'92s face was impassive as she said, \'93Why don\'92t you send them a fax for \softline retransmission to all the stores saying something like, \'93Last month\'92s results were the \softline best in history. Thanks guys, and keep up the good work! Sign it Sandy Donnell, \softline Owner.\'94\par }{\plain \fs24 \f1 \tab Kevin and Jeff looked at each other, utterly baffled. Cliff unrolled the calendar for \softline them. \'93Here\'92s the secret weapon. It\'92s called motivation! He picked up his phone and \softline called JL in Charlotte. When JL came on the line, he activated his speaker phone. \'93JL, \softline it\'92s Cliff. Sandy\'92s here with me. While she was trying to recover from a galloping case \softline of embarrassment, Kevin and Jeff came in with the sales results. They\'92re here, too. I \softline got the letter, obviously, but we wanted to hear it from you. What\'92s the story?\'94\par }{\plain \fs24 \f1 \tab JL laughed. \'93Folks, in the South, we call it motiv\-ation. I don\'92t know what you \softline Yankees call it. Sandy, I surely hope it wasn\'92t too embarrassing for you. But what it\'92s \softline done for my people! Wowee! I don\'92t know how much you know about our busi\-ness, but the big traffic location is the parts counter. Well, folks, the fairly typical arrange\-ment \softline is to have that calendar right behind the parts counter protected by acetate, and in at \softline least one store, by Plexiglas. When we sent it out... Well, I have never seen anything \softline like it.\par }{\plain \fs24 \f1 \tab \'93Sandy, it was a good thing you came down with Cliff and visited some stores. There \softline were a lot of our people who got to meet you. Well, their phones were ringing off the \softline hook. The guys who hadn\'92t ever met you were calling their friends who had. They got \softline the same answer, every time: \'91Yes, sir. That\'92s our owner, Miss Donnell! Ain\'92t she a \softline beauty?\'92\par }{\plain \fs24 \f1 \tab \'93I don\'92t know if you noticed, but our guys did. There\'92s a tiny line that says \softline \'91unretouched photograph,\'92 and by God, it surely is. Well, folks, that calendar has been \softline the biggest sales motiva\-tor I could possibly imagine. And it\'92s given me another idea: \softline We\'92re going to have a convention in Hilton Head in late February. We\'92ve never had one \softline before, so it would be wonderful if you all could come down. After the way things are \softline going, Sandy, I }{\plain \fs24 \i\f1 know}{\plain \fs24 \f1 those boys would just love to meet you in person. Do you think you \softline could make it?\'94\par }{\plain \fs24 \f1 \tab \'93JL,\'94 Sandy said, \'93If I possibly can, I will. Could we maybe bring some other \softline Milwaukee people down with us? I think it would be a good idea if our people got to \softline know one another. And there are a lot fewer of us than there are of you. Besides, JL, \softline there\'92s something you should know: One of my ancestors fought for the South in the \softline Civil War. I guess they didn\'92t get up to Milwaukee till after the turn of the century. If \softline anyone\'92s interested, I\'92ll try to find out his name and unit. It was my great-great \softline grandfather, plus or minus a great. Any interest?\'94\par }{\plain \fs24 \f1 \tab \'93Of course I\'92m interested,\'94 JL replied. \'93But I\'92m just a little concerned. Sandy, my \softline boys would go to hell and back for you right now! If I told \'92em you\'92re a daughter of the \softline Con\-federacy, I\'92m not so damn sure they might not start marching on Washington! But \softline I would sure love to see it.\'94\par }{\plain \fs24 \f1 \tab Cliff said, \'93JL, I need to talk to the people here for a bit. Are you going to be in your \softline office for a while?\'94 JL said that he would. \'93Good. I\'92ll try to get back to you later \softline today.\'94\par }{\plain \fs24 \f1 \tab Cliff hung up. \'93Sandy,\'94 he said, \'93something just occurred to me. Would you have \softline a big problem if we restructured the Southern operation? I\'92m thinking we ought to \softline make it a subsidiary of Murphy, rather than a division. We could incorporate it as \softline Southern Auto Parts, Inc. My idea is we retain 80 percent or so of the stock. We let JL \softline and his key people buy the other 20 percent. Furthermore, we structure the stores in \softline the same way as subsidiaries of Southern.\par }{\plain \fs24 \f1 \tab \'93Then the local manager and his key people have an equity interest in their unit. \softline If they do a good job, they share in the profits, regard\-less of how well any of the other \softline units do. This has been used very effectively elsewhere. There\'92s a baking company in the South that runs this way. The real motiva\-tion comes from the minority interest. \softline What do you think? How would you like to be Chair\-man of Southern Auto Parts, Inc.?\'94\par }{\plain \fs24 \f1 \tab \'93Cliff, I think it\'92s super! Kelly, you\'92re our financial advisor. What do you think?\'94\par }{\plain \fs24 \f1 \tab \'93Sandy,\'94 the girl replied, \'93it makes all kinds of sense to me.\'94 She smiled at Sandy, \softline \'93That photograph of you \'97 it\'92s really gorgeous, by the way \'97 proves the power of \softline motivation. I\'92m all for Cliff\'92s idea.\'94\par }{\plain \fs24 \f1 \tab \'93Does anyone object? Kevin? Jeff? No? Okay, it\'92s a done deal. Hang on a minute, \softline and I\'92ll call him and see what he thinks.\'94 Cliff placed the call again and talked with JL.\par }{\plain \fs24 \f1 \tab At first, JL was speechless. Finally, he found his voice. \'93Do you mean to say we \softline would be partners? Me and my boys would be owners? Cliff, I\'92ll tell you what I think. \softline I think me and my people are so damn sure it would work, we would give you a profit \softline guarantee. If we don\'92t make more money for you, we won\'92t take any. How\'92s that for \softline sure?\'94\par }{\plain \fs24 \f1 \tab \'93JL, keep it under your hat for now. We have to do it after the October Board \softline meeting. But consider it done, okay? I guarantee it will happen. And you know \softline something else? Sandy will announce it \'97 with your permis\-sion, of course \'97 at the \softline meeting in February. Fair?\'94\par }{\plain \fs24 \f1 \tab \'93Fair isn\'92t the word,\'94 JL responded. And you say Sandy\'92s going to be Chairman and \softline I\'92m president. What are you going to be? We need you, Cliff. Will you be a director?\'94\par }{\plain \fs24 \f1 \tab \'93Sure will, JL. And we\'92re counting on a golf game when we\'92re down there. Is it a \softline deal?\'94\par }{\plain \fs24 \f1 \tab \'93It sure is. Folks, you\'92ll never regret this. I absolutely guarantee it!\'94\par }{\plain \fs24 \f1 \tab Cliff hung up the phone, and the group went down to the cafe\-teria for lunch. Sandy \softline was still a little embarrassed think\-ing of herself as a pin-up in auto parts stores \softline throughout the South, but finally decided that the men seemed to love it, and it was sure \softline helping sales.\par }{\plain \fs24 \f1 \tab After lunch, Kelly joined them in Cliff\'92s office. They still had not fully settled the \softline personal financial impact of the corner on Murphy stock. However, Cliff had re\-ceived \softline a check for over $1 million, and Sandy and Kelly had divided over $10 million between \softline them.\par }{\plain \fs24 \f1 \tab Steve and Jane Muller joined them, having recently returned from their honeymoon. \softline Jane had just returned from a visit to Kaga, and Steve had been over to Troy to see Jack \softline Crowther at Magna. Together, they went over the present position and near-term \softline prospects for Murphy. The present situation was excellent and prospects were even \softline better. There were now twenty-five production units including seventeen brand-new \softline ones.\par }{\plain \fs24 \f1 \tab Steve reported on something Crowther had told him during his visit: \'93He told me \softline he had visited one of the Magna plants the day before and saw a forklift operator moving \softline a flat of parts out to the production line. A supervisor asked him if they had been checked by quality assurance. His response was, \'91They\'92re Murphy parts.\'92 Clearly, that \softline was all the supervi\-sor needed to hear. Cliff, they have never seen the quality we\'92re \softline giving them. They have all kinds of ideas for other machined parts they would like us \softline to consider making for them. We\'92re the geniuses of pre\-cision parts as far as they\'92re \softline concerned. The situation for us couldn\'92t be better!\'94\par }{\plain \fs24 \f1 \tab Jane reported that the Wozlowski ring was about to become the Kaga Motors\'92 world \softline standard. \'93Cliff, they want to know how much of the world production we would like. \softline I never thought I would see the day. This is tough selling! I admire my tan, mentally \softline calculate commissions, and try to figure how much of their busi\-ness we want. It\'92s \softline absolutely ridiculous! What should I tell them? It\'92s all open to us, up to 100 percent of \softline }{\plain \fs24 \i\f1 world}{\plain \fs24 \f1 require\-ments. Whatever we don\'92t take, we get a royalty on. Sandy, have I told \softline you lately what a hell it is trying to make a living in sales?\'94\par }{\plain \fs24 \f1 \tab Bill Stevens came in, and they spent the rest of the day trying to work out the \softline production schedules and plant expansion requirements. At the end of the day Jeff \softline Stover came in with the latest forecast numbers for the end of September. Cliff and \softline Sandy laughed at how close to his financial commitments the company was going to be. \softline Jeff said, \'93Actually, we are so damned close I could make them come out! And you know \softline what else? Sales and profits are growing so damned fast, by the end of October, no one \softline could know the numbers had ever been fudged.\'94\par }{\plain \fs24 \f1 \tab As they left the building, Sandy asked Kelly a question. \'93Kelly, I would like you to \softline serve on my reconstituted board of directors. Will you?\'94\par }{\plain \fs24 \f1 \tab Kelly was delighted. \'93Sandy, thank you. It\'92s a real honor. I\'92ll try to advise you on \softline the market, but for the life of me, I don\'92t think you need it. Never\-theless, I consider it \softline a very special privilege. Thank you.\'94\par }\pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 * * *\par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab October 1 was a brilliantly clear day in Milwaukee. The Board was scheduled to \softline meet at ten o\'92clock. Everyone was pres\-ent including Bill Owen with a couple of FBI \softline agents, as well as Lem Collins with a plain-clothes group of three Milwaukee police \softline officers. Sandy, Cliff, and Sam were in position at the table when the directors started \softline to arrive.\par }{\plain \fs24 \f1 \tab Stiles took his usual seat at the head of the table and called the meeting to order. \softline There was no old business. There were only two items on the agenda, the first of which \softline was Cliff\'92s report to the Board. He passed out copies and reviewed it. He stressed that \softline while the objectives had not been met because of the need to sacrifice some volume \softline before moving the company sales ahead, the com\-pany\'92s present growth track was far \softline steeper than had been origi\-nally projected.\par }{\plain \fs24 \f1 \tab Stiles looked at him sourly. \'93Thank you, Mr. Fitzpatrick. I assume you have your \softline letter of resignation prepared?\'94 Cliff passed it to him. \'93Thank you.\'94\par }{\plain \fs24 \f1 \tab \'93The next order of business is to elect a new chairman,\'94 Stiles continued. \'93Sandra \softline Donnell is the nominee, succeeding Mary Small who has resigned as a director. Are there any other nominees for the position of chairman? Hearing none, all in favor say \softline \'91Aye\'92.\'94\par }{\plain \fs24 \f1 \tab Sandy was elected unanimously. Stiles started to rise to give her the seat at the head \softline of the table, but she waved him back and just took the gavel. \'93Mr. Stiles, I assume I \softline receive the voting rights to the Murphy shares today. You have the papers with you?\'94\par }{\plain \fs24 \f1 \tab Sandy had been in touch with Stiles ahead of the meeting about the voting rights. \softline Stiles produced the papers from his briefcase, and she looked them over carefully, \softline putting them under a file she had in front of her.\par }{\plain \fs24 \f1 \tab Sandy took the gavel and said, \'93The next order of business is to request the \softline resignation of Messrs. Stiles, Cartwright, Met\-calf, and Foster from the board of directors. \softline Gentlemen, it has come to our attention that the Federal Govern\-ment and the State of \softline Wisconsin are having a dispute over where you\'92ll be spending the next twenty to forty \softline years. Gentlemen?\'94\par }{\plain \fs24 \f1 \tab Sandy spoke the last words loudly enough to reach the law enforcement officials \softline waiting outside. Moments later FBI agents and Milwaukee police took the four men into \softline custody. They were in a state of shock as they were led away. The remaining directors \softline also resigned on the spot. Within less than thirty minutes, things had re\-turned to \softline normal. Sam Johnson shook hands and excused himself to organize the departure of the \softline Pinkerton task force.\par }{\plain \fs24 \f1 \tab Sandy sat at the end of the board table now feeling suddenly drained of energy. She \softline hadn\'92t realized the extent to which she had been keyed up until now that the excitement \softline was over. When she glanced at Cliff, he looked the way she felt. Finally, she spoke to \softline her lawyer, Tony Doyle, who was present and serving as a new director and corporate \softline secretary.\par }{\plain \fs24 \f1 \tab Tony had prepared the legal script for the special elec\-tion of directors, and so forth. \softline She said to him, \'93Tony, could you just prepare the Board minutes with all of this garbage \softline in them. We promise we\'92ll swear it all happened, but frankly I just don\'92t have the energy \softline even to go through the motions. Whoops!\'94 she amended. \'93There\'92s just one thing. Add \softline that Cliff Fitzpatrick\'92s letter of resignation has been rejected. He\'92s stuck with us.\'94\par }{\plain \fs24 \f1 \tab Tony grinned, nodded, and gathered up his papers. The other new directors were \softline Kelly, Cliff, and Bill Stevens, and there were two Board vacancies. Stacey Evans \softline knocked on the door. \'93There are some people here, Cliff. Can they come in?\'94\par }{\plain \fs24 \f1 \tab Cliff grinned and told her to ask the Chairman. Sandy, still relaxed at the end of the \softline table said, \'93Sure, Stace. Just leave the door open and come in yourself. I think it\'92s fair \softline to say the Executive Offices of Murphy Manufacturing are closed for the day. As a \softline matter of fact, before you come back in, tell the rest of the people they can go home.\'94\par }{\plain \fs24 \f1 \tab Steve and Jane Muller came in. They were soon followed by Janet Simmons and \softline then Max Kaufman. When Max came in, Sandy got up and went to him. She gave him \softline a kiss and teased him about being away from the floor. \'93Max, we\'92re not doing a damn thing, but someone\'92s got to work to support us in the style to which we would like to \softline become accustomed!\'94\par }{\plain \fs24 \f1 \tab Suddenly, Kelly Cameron said loudly, \'93Damn!\'94\par }{\plain \fs24 \f1 \tab The others were startled. Cliff said, \'93What\'92s the trouble, Kelly? Did we forget \softline something?\'94\par }{\plain \fs24 \f1 \tab The girl grinned broadly. \'93No, I\'92m afraid not. I just thought how dull things are \softline going to be. This has been the most excit\-ing and eventful few months of my life. You \softline folks have done such a spectacular job about all that\'92s left for me to do is count the \softline money.\par }{\plain \fs24 \f1 \tab \'93Cliff, I do have one question, though. Does planning al\-ways work out this way? It \softline seems like its being done with mir\-rors. In business school I always thought a strategic \softline plan was full of high-sounding words and brilliantly innovative strate\-gies. With all due \softline respect, friends, this is just plain vanil\-la.\'94\par }{\plain \fs24 \f1 \tab Cliff laughed. \'93Just remember, Kelly, for all the attention given to zingy flavors like \softline pistachio and butter walnut, over 65 percent of all ice cream sold is just plain vanilla. \softline That\'92s where the money is. You\'92re right, though. Our strategy }{\plain \fs24 \i\f1 is}{\plain \fs24 \f1 plain vanilla. And \softline because it is, it\'92s easy to understand for the folks who have to make it work.\par }{\plain \fs24 \f1 \tab \'93The secret is simplicity. The problem with the super-sophisticat\-ed strategies isn\'92t \softline that they\'92re wrong. Often they\'92re very good. The problem is the only person who really \softline understands it is the guy who wrote it, and unless it\'92s an awfully small company, he \softline can\'92t execute it all by himself. If the guys who have to make it work don\'92t understand \softline it, it won\'92t work. It can\'92t work! Remember the Army training axiom, KISS: \'91Keep it \softline simple, stupid!\'92 That\'92s what we did. Satis\-fied?\'94\par }{\plain \fs24 \f1 \tab Kelly grinned, \'93I guess so. But it still sounds too easy!\'94\par }{\plain \fs24 \f1 \tab Sandy sat down again next to Cliff who reached into his pocket and took something \softline out. \'93Sandy, am I correct in assuming we\'92re not in session? We\'92re trying to gather \softline enough energy to get out of our chairs and go home?\'94 She nodded, yes. Suddenly, she \softline felt totally exhausted. \'93Sandy, will you marry me?\'94 he asked.\par }{\plain \fs24 \f1 \tab Her eyes popped open. \'93Of course, darling. Now it can be anytime you want. But \softline why did you ask me now? Isn\'92t it a little... public?\'94\par }{\plain \fs24 \f1 \tab \'93Sort of, I guess. But Sandy, not only are these the people who are putting Murphy \softline on the map, but I happen to know they\'92re also your very best and oldest friends. So I \softline think it\'92s approp\-riate. Besides, I have something for you. Can I borrow the third finger \softline of your left hand?\'94 he asked. Sandy held out her finger, and Cliff took the ring he was \softline holding and slipped it on.\par }{\plain \fs24 \f1 \tab She looked at it, dazzled. Suddenly everyone in the room was gathered around. \softline Stacey quickly left and returned moments later.\par }{\plain \fs24 \f1 \ul0 \tab Kelly was the first to speak, \'93My God, what a stone! Sandy, he sold some stock and \softline said it was to pay off the bank and buy you a ring. I thought he was kidding, but looking \softline at that diamond I don\'92t think he was. It\'92s the most magnificent diamond I\'92ve ever seen!\'94\par }{\plain \fs24 \f1 \tab Sandy pushed her way through the group to Cliff who was standing by this time. \softline She kissed him and held him in her arms. \'93I have just one question, darling. When?\'94\par }{\plain \fs24 \f1 \tab By this time a caterer had entered and set up champagne and food for the \softline impromptu engagement party that followed.\par }{\plain \fs24 \f1 }\page \pard \fs24\qc\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs28 \b\f1\fs28 Epilogue}{\plain \fs24 \f1 \par }\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Cliff and Sandy returned from their honeymoon just in time to go down to Hilton \softline Head for the Southern Auto Parts meeting. It was planned as a three-day affair. The \softline first day was devoted to meetings on elements of store operations while the second day \softline began with JL explaining the new corporate structure of Southern Auto Parts. The \softline general meeting was followed by indivi\-dual meetings to review the business implications \softline of the local subsidiary structure and indicate specific steps for each unit and its manager \softline to take.\par }{\plain \fs24 \f1 \tab The big dinner was scheduled for that second evening. A whole contingent of people \softline came down from Milwaukee including Bill and Janet Stevens, who, along with Kelly and \softline Kevin O\'92Rourke, had been married in the meantime. Jane and Steve Muller completed \softline the contingent along with Sandy and Cliff Fitzpatrick.\par }{\plain \fs24 \f1 \tab Before their wedding Cliff teased Sandy about all the time she was spending on \softline arrangements for the convention with JL. She replied that since she was no longer \softline working her fingers to the bone as his secretary, all she had to do was watch the cash \softline manage\-ment wheels turn. \'93Besides, Cliff,\'94 she conclud\-ed, \'93you warned me months ago \softline of the temptation to over-engineer a good cash system. This keeps me out of trouble.\'94\par }{\plain \fs24 \f1 \tab When they went in for dinner, Cliff, who had now been filled in on Sandy\'92s plans, \softline and Sandy were wearing their Milwaukee coats. When they returned from their \softline honeymoon, there were two brand-new ones. The lettering on the breast now read S \softline FITZPAT\-RICK and C FITZPATRICK.\par }{\plain \fs24 \f1 \tab Dinner was served early, with JL mumbling something to his people that the bar \softline would be open afterwards. \'93There\'92s something about clearing the room or something,\'94 \softline he said.\par }{\plain \fs24 \f1 \tab When the people walked in, there were assigned seats and tables. The seating was \softline by state, with an appropriate state flag in the middle of each group. All were states of \softline the Con\-federacy. During dinner, a glee club from a South Carolina college sang songs \softline of the South from the Civil War period. At the end of dinner, JL introduced Sandy as the \softline featured speaker.\par }{\plain \fs24 \f1 \tab \'93Gentlemen,\'94 he concluded, \'93it gives me great pride and pleasure to introduce to you \softline a true daugh\-ter of the Confederacy. Her great-great granddad fought with Stonewall \softline Jackson and was wounded at Chancellorsville where General Jackson was killed. \softline Gentlemen, the Chairman of the Board of Murphy Manufacturing Company, the owner \softline and our boss, the Chairman of Southern Auto Parts, Sandy Fitzpat\-rick!\'94\par }{\plain \fs24 \f1 \tab The men in the room stood instantly and cheered their boss. The applause \softline reverberated from the ceiling while she waved to the crowd. When they quieted and \softline were seated again, she began her speech. She thanked them for the brilliant performance of the previous six months. Sales were almost triple the best full year the \softline company had ever had. She talked about the reasons for the new organization, and how \softline it was thought that additional motivation would make things better still. Cliff was amused because, in addition to wear\-ing her plant coat, Sandy had her auburn hair up \softline in a bun and was wearing horn-rimmed glasses that he knew had clear lenses. She \softline didn\'92t wear glasses.\par }{\plain \fs24 \f1 \tab As she got to the end of her speech, she commented on her attire. \'93In Milwaukee, \softline everyone in the plant recognizes me in this coat. It\'92s like the one everyone else in the \softline plant wears. It\'92s come to my attention, though, that I\'92m recognized somewhat different\- ly down here.\'94\par }{\plain \fs24 \f1 \tab With that, she stepped out from behind the podium, took off the glasses and the lab \softline coat and yanked out a pin that had been holding up her hair. Her auburn hair flowed \softline free and she was standing there, tanned from her honey\-moon, wearing her now-famous \softline white bikini. There was a stunned silence in the room for a few moments and then a \softline thunderous roar. The men were standing on their chairs cheering. Sandy stood with her \softline arms up, waving for quiet. Finally, the group quieted down.\par }{\plain \fs24 \f1 \tab She turned to JL who had been leading the cheers and who was now grinning \softline broadly. \'93JL, you were right. They do recognize me quicker this way!\'94 Again there \softline were cheers from the floor. \'93Guys, I have something for each of you.\par }{\plain \fs24 \f1 \tab At that point, large envelopes were delivered to each table. There was an envelope \softline for each person. Inside was a new pin-up picture of Sandy with a personalized \softline inscription to the man and his store.\par }{\plain \fs24 \f1 \tab Before there could be more cheering, JL went to the microphone. \'93There are three \softline people who don\'92t have envelopes, GC Mit\-chell, Tom Casey, and Billy Joe Jenkins. The \softline reason is we have some\-thing different for you all. These men had the largest per\-centage \softline sales increases in the company last year. We have some\-thing special if you all will please \softline come up. In addition to the special award, there\'92s one more thing: Tomorrow, we\'92re \softline having a golf tournament. These three are playing with our Chair\-man, Sandy \softline Fitzpatrick. Now Sandy was captain of the University of Wisconsin golf team and did \softline very well in regional tournaments. I happen to know she played a lot of golf on her \softline honeymoon. She has some\-thing else to say while we\'92re waiting for the boys to join us.\'94\par }{\plain \fs24 \f1 \tab \'93Guys,\'94 Sandy said, \'93there\'92s so{\*\bkmkstart BM_1_}{\*\bkmkend BM_1_}meone else I want you to meet. He\'92s the love of my \softline life, and the man whose ideas permitted the success Southern Auto Parts is now \softline enjoying. I want you to meet the president and chief execu\-tive officer of Murphy \softline Manufacturing, and a director of Southern Auto Parts, my husband, Cliff Fitzpatrick!\'94\par }{\plain \fs24 \f1 \tab Cliff came over and joined Sandy, who gave him a kiss to further cheers. He \softline whispered in her ear, \'93Darling, you are brilliant. Do you have any more?\'94\par }{\plain \fs24 \f1 \tab She winked and showed him crossed fingers. Cliff spoke a few words of congratulations. By this time the three top-perfor\-ming manag\-ers were on the stage. Sandy greeted \softline each of them and gave them very large tubes. Each was about three feet long. JL took \softline Mitchell\'92s and opened it. He withdrew a roll of paper and gave one end to Mitchell while \softline he unrolled the other. It was over six feet long and nearly three feet high. When it was \softline fully unrolled, they flipped it so it could be seen by the whole room. It was a true life-sized pic\-ture of Sandy lying down still wearing the white bikini. It was autographed to \softline GC Mitchell and all the people in Batesville who set the record for the greatest increase \softline in sales in company history and it was signed, Sandy Fitzpatrick.\par }{\plain \fs24 \f1 \tab JL went to the microphone. \'93There are no promises, but Sandy says she may do this \softline again for the top three stores this year. But if you want one for your store, you\'92re really \softline going to have to work! Do you want one?\'94\par }{\plain \fs24 \f1 \tab Again the cheers thundered out. While she waited for the room to quiet down a band \softline had entered, and the members arranged themselves in the back of the room. Finally, the \softline room was quiet as they waited for her to speak again.\par }{\plain \fs24 \f1 \tab Instead, she sang }{\plain \fs24 \i\f1 a capella}{\plain \fs24 \f1 in a very clear voice, \'93Oh I wish I was in the land of \softline cotton, old times there are not forgotten, look away... look away... look away, Dixie \softline land...\'94 There was a momentary silence in the room as the band came in on the next \softline bars, \'93for I wish I was in Dixie, away, away...\'94 The room exploded as everyone in it was \softline on his feet and joining the singing.\par }{\plain \fs24 \f1 \tab The room rocked as men removed the state flags from their rests and waved them \softline in the air. When they finished, the band started over. When it ended, there were \softline thunderous cheers.\par }{\plain \fs24 \f1 \tab JL came up to Sandy as the room started to quiet a bit. \'93By God, Sandy, you were \softline right! If we don\'92t beat last year\'92s numbers by the end of next month, some people here \softline are dead! And I sure don\'92t think they are!\'94\par }{\plain \fs24 \f1 \tab Cliff came up and gave his bride a big hug. \'93Honey, that was marvelous! I didn\'92t \softline know you could sing.\'94\par }{\plain \fs24 \f1 \tab She hugged him tight and whispered in his ear, \'93I didn\'92t think I could. That\'92s why \softline my fingers were crossed. Did it sound all right?\'94\par }{\plain \fs24 \f1 \tab \'93All right? Honey, those men worship the ground you walk on. But what caused the \softline change? I knew what was going to happen, but you stood there in the bikini looking so \softline happy and proud, when you used to be so down on yourself and your appear\-ance. What \softline caused the change?\'94\par }{\plain \fs24 \f1 \tab \'93You did. I guess I finally decided I glow with love for you so much, maybe I am \softline pretty. And you\'92ve been brainwashing me, besides. Darling, maybe I am pretty good at \softline motivating people to do the things you figured out they can do. How\'92s that for a division \softline of labor?\'94\par }\pard \fs24\qc\sa84\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 }{\plain \fs28 \b\f1\fs28 The End}{\plain \fs24 \f1 \par }\fs24\pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 {\plain \fs24 \f1 \tab Let me hear from you. }{\field{\*\fldinst { HYPERLINK "mailto:morg105829@aol.com" }}{\fldrslt{{\*\cs2\ul\cf2\f1 morg105829@aol.com}}}}{\plain \fs24 \f1 \pard \fs24\qj\sa72\tx0\tx432\tx864\tx1296\tx1728\tx4680 }}