Daily Arizona silver belt., 1909-10-31

v
 began MT. Durant. His manner
 was serious, and Pinckney, who
 had known him so long, realized that he was seriously put out about something. At such times there was only one way to handle the steel mag nate-that way was absolute obedience and prompt replies to his questions. Pinckuey became all attention at once.
 ''Yes. sir. What is it?" he asked.
 Durant consulted the paper in his hand.
 The royalty on this Rhinestrom gum" he asked-"am l correctly in- formed about it?''
 "How much did you think it was?" asked the manager
 According to the papers, we pay a royalty of $6000 for every gun six inches or under and $l,000 an inch ex- tra for every one over six. So for these twelve inch guns we are to forge we must pay $l2,000 each"
 That's correct. sir" said Pinckney. ' 'Tt's too much" declared the steel magnate sharply.
 His manager ventured a protesting gesture.
 ''I wrote you" he said. "and cabled you before | signed the contract It was too risky waiting until your re- turn"
 q don't see why" exclaimed Du- rant impatiently. "I think you've tnodo o p,ictalro tI,ie tipna E-dmopd n grave mistake. That royalty consider outrageous"
 { The manager had to make fight. | I'm very sorry. sir" he said apolo- getcally, "but you know I have your interest at heart. and it seemed 10 me the only thing that could be done. You have trusted my judgment. I had to exercise 1t. The government liked this gun, and 1t meant an order that will keep us busy for a year. If we con- trolled the patents they were obliged to give us the contracts. There was no competition, you see. and then our price to the government leaves us a very fair profit even after this big roy alty is paid"
 Durant shook his hoad
 Penny wise. pound foolish, think it, Edward To make profit we have to charge the government a tremen- dous price that doesn't help our future business. It will give us black eye when we want work next. time"
 "Well, I'm sorry, sir" said Pinckney apologetically. 'I was working only for the best I wanted to insure our contract with the government. As it is, you see, we do not begin work for two months, and there'll be lot of wire pulling and hauling first"
 Durant nodded.
 "Yes. if they find a gun they like better they can countermand our or der"
 Plnckney hesitated. He felt he had to go cautiously, but 1t would not do to let Mir. Durant guess his hand.
 "Yes," he said slowly. "this fellow Sommers is here to have gun forged that he's invented. He's got some pull at Washington, I'm certain of that"
 Don't see what difference that makes" replied the steel man.
 "oh," protested the manager, "sup- pose after they test the Sommers gun they give it preference over the Rhine strom gun and countermand our or- der"
 Durant nodded, pleased.
 q wish they would," he said. "We could still get the business and not gouge the government Sommers is an officer in the navy and can claim no royalty. It would reduce the cost of every twelve inch gun $12.000."
 Pinckney bowed in agreement, then suggested:
 You are partly right, Mir. Durant, but if they took his gun there would be no certainty about our getting the order. We would have to compete in the open, and some one might under bid us."