Chapter 3

Monday, September 5, 1892

Malik, Beatrice, Juanita Garcia, Juniper Tsosie, Stone Raven, and Fu-Chun Li were gathered at the front of the new Old Courthouse Inn, which was nearing completion. They were looking at a crew of Chinese construction workers digging a trench where once had been the cobblestone sidewalk fronting Jackson Street.

Stone Raven said, “This is the major problem of the construction, this disruption to foot and wheeled traffic, along with the expense of replacing the paving.

“In this instance, we recommend replacement with a concrete walkway. The advantages are that it will provide a more stable, flat walking surface, and it is easier, faster, and less expensive to lay, compared to cobblestone paving. The disadvantage is that it has a more utilitarian, less decorative appearance, though some like the look, calling it ‘modern.’”

Garcia asked, “How far will this trench run?”

Juniper said, “At any given time, about fifty yards. We’ll be filling it in as we lay the pipe. The pipeline, if that’s what you are asking, will emerge a mile and a quarter southeast of town, about a half mile beyond the end of the switchyard’s wye track.”

“And you’re going to make sewage lakes there?” Juanita asked, plainly distressed at the thought.

“No, not lakes,” Stone Raven explained. “They’re called ‘ponds,’ but you need to picture them as being more like a rimmed baking sheet and less like a mixing bowl. The purpose is to spread a very shallow amount of effluent. Some of the fluid will be absorbed by the ground and the sun will dry out the solids and begin to disinfect it.

“Then it can be collected and sold as fertilizer for non-food crops, such as cotton or hemp. Or, even better, it can be mixed with harvest waste, such as corn husks or wheat straw, or even sawdust, and then composted. That compost will carry not only fertilizing properties, but fibrous plant matter which can actually improve the soil. Composted properly, it will be sterilized and can even be applied to fields where food crops are grown.”

Several others had joined the group, passers-by and some local merchants and shopkeepers, including Jacob Baylor.

Juanita persisted, “Will each business have to have their own pipe to the sewage ponds?”

“No,” Juniper said. “This is just a demonstration project, but we’re using pipe big enough to allow other pipelines to tie into it. So the bank would only need a pipe to its front sidewalk.

“What about my store?” Baylor asked.

Juniper said, “In your case, Mister Baylor, you would tie into a pipe running under the back alley. That pipe would tie into this one.”

“Oh. No wonder it’s so big.”

(Monday, September 5, 1892)

Monday, October 17, 1892

“Mister Malik,” said the voice on the telephone receiver, “Mister Gerald MacNish with the Associated Railroad Workers Mutual Investment Fund is in the reception lobby and asking to see you.”

With a quiet, yet resigned sigh, Malik said, “Have him sent up, please, Mister Glenn. And see if he wants coffee or whatever, if you’d be so kind.”

An elevator had been installed, over the summer, replacing the central stairwell. Most employees still used the west or east stairs, as the elevator tended to be slower than personal locomotion. MacNish, the General Manager of the Associated Railroad Workers Mutual Investment Fund, preferred the elevator.

That lift’s mechanisms were operated by Guo Luoyang, a clean-shaven, older man, a widower whose only child, a daughter, had died before marrying. He wore traditional Mandarin shirt and trousers, belying his status as a K&ASR security officer, one competent in a form of Shaolin Wushu, a Chinese style of hand-to-hand combat. He gave MacNish a gimlet eye as the elevator car made it’s slow progress to the third floor.

“What are you looking at, old man?” MacNish demanded, after several long seconds under Guo’s scrutiny.

“So solly, Xiansheng (Mister, simplified Chinese pronunciation), so solly,” Guo said, dropping his eyes and exaggerating his accented English. Unseen by MacNish was Guo’s amused smile, hidden by the abject tilt of the Chinese policeman’s head and upper body. Among members of the headquarters security section staff, Guo’s groveling performances had earned him the nickname, “Solly.”

Two minutes later, escorted by Malik’s secretary, William Glenn, MacNish, his usual picture of annoyed disdain, was shown to Malik’s office.

Malik immediately stood and came around his desk, offering his hand. “Gerald, good to see you. You’re looking well,” Malik said, during the brief hand shake. “Can we get you some coffee or tea?” Glenn, still in the door behind MacNish, gave a brief shake of his head, having already had the visitor’s refusal.

MacNish growled, “I didn’t come here for a tea party, Malik. What my members want to know is when can they expect some new investors?”

“Gerald, please, have a seat,” Malik said, and then he returned to his own chair, behind the desk.

MacNish dropped into a chair and said, “I’m sitting -- and waiting for an answer.”

Malik scratched his chin, thoughtfully, using the rounded, articulated hook on his left arm. Seeing the display, MacNish made a sour face. Malik said, “Remind me, if you would, Gerald, how is it the K and ASR’s responsibility to find new members for your investors’ club?”

“You responsibility is to keep up the morale of your employees so they do good work. Your early retirement buyouts and the hiring delays means fewer employees doing more work -- fewer employees, but more disgruntled employees.”

Malik’s tone lost its air of forbearance. “You’ll recall that we told you that was the plan when the Board approved it, last year. Did you think we weren’t serious? We also laid out, in some detail, why we are doing it. So I’m not at all sure why you are here telling me that we have done the very things we set out to do.”

“I’m here because your plan isn’t working, Malik. Fewer employees means fewer investors. Fewer investors means lower yields, lower yields means unhappy employees.”

“Lower yields? Your quarterly report shows an annualized rate a half percentage point above last year. Your members are enjoying the highest yields ever. I think what you mean is that, with an overall smaller fund, your personal earnings are lower,” Malik suggested.

Then Malik changed the topic. “Be that as it may, we think you should take some portion of the fund’s earnings and purchase gold.”

“Bah! Gold prices have been stable for decades.”

“Yes, but interest rates are not.”

“Interest rates? What has that to do with gold?”

“Consider, for instance, if one were to lend gold to a depleted federal treasury.”

MacNish was silent in contemplation, as there was, already, an acknowledged pressure on the federal gold reserves. Then his expression soured. “Bah!” he objected, again. “That’s two in the bush. I need the bird in hand,” he insisted, thumping his right index finger into his left palm.

“Sorry, Gerald. All of our birds are in the bush, at present. We do expect them to come home to roost, presently, but that won’t be a happy day.”

MacNish leaned forward in his seat. “Are your competitors aware of your gloomy business outlook, Malik?”

“They may very well be, we’ve made no secret of it. It’s been mentioned regularly in our employee newsletter. We’ve discussed it with dozens of bankers. Why do you ask? Has the price of our stock fallen off?”

MacNish stared accusingly at Malik, though he remained silent. He knew that there was a continuing upward climb in the price of privately-traded K&ASR stock, rare though those trades were.

Finally, MacNish stood suddenly and, shaking his index finger toward Malik, said, “I’m warning you, Malik. There will be consequences to this absurd course you’ve chosen.”

Malik rose in a deliberate manner and said, “Gerald, I thank you for that warning. Please be assured that I am fully committed to maintaining the health of our stock, in which your group is so heavily invested. Thank you again for your advice. My door is open to you at any time.”

With a final “Humph!” MacNish turned and walked quickly from the room. He tried to slam Malik’s door as he exited, but Malik had fastened a small India rubber ball on a short string at the top outer corner of the door. When the door was closed quickly, the centrifugal force made the ball swing outward, and it provided a cushion between the door and the frame. Once the door stopped moving, the ball swung back down and out of the way, allowing the door to close gently. Malik had installed the homely device after the wind had gusted through his open windows and had slammed the door hard enough to rattle the glazing.

A few minutes after MacNish left, Malik walked from his office into the Board Conference Room, then walked the length of the conference room to the door to Castillo’s office. He listened for a few seconds at the door, then tapped with his fingertips. Castillo’s “Come on in, Emil,” was easily heard. Malik opened the door and entered Castillo’s office, closing the door behind him.

As Malik eased himself into a chair, Castillo said, “You look like you’re up to something.”

Malik froze in place, looked at Castillo, and said, “Did I just hear you use a contraction?”

“What? Me? A contraction? Don’t be absurd.”

“There! You did it again. You used ‘don’t.’ And when I came in, you said, ‘You look like you’re up to something.’ Your mother must be rolling over in her grave.”

“Yes, since my mother is still alive, I could readily understand why she might be upset to find herself in a grave. If you remember, you met her at Easter, when you and your family came to dinner.”

“I remember. Nice lady. She didn’t use contractions, either. She’s going to be so disappointed in you.”

“She will understand. She thinks you have a bad influence on me. She told me that, should I have met you when we were children, she would have forbade me to play with you.”

“Maybe she’s not as nice as I remember.”

“So, what are you up to?”

“Remember that ball that I tacked to my door, to keep it from slamming from wind gusts? Turns out it keeps it from being slammed by gas bags, too.”

“MacNish? I saw him come in. I was going to greet him but decided to hide in my office, instead. Did he have anything constructive to contribute?”

“Nope. Just the same old song, sung in sour notes. But he got me to thinking: we should use ‘The Kanzona’ as a business name.”

“MacNish suggested that?”

“No. It just occurred to me as I watched my door, um, not slam.”

“This came to you as you watched the door close? That seems odd.”

“Is that really the important issue, right now? I mean, considering that I’m suggesting we change the name of our railroad, do you really want to talk about what I was doing when I first thought of it?” Malik was shaking his head, while wearing a feigned expression of exasperated disbelief.

Then he said, “What I’m thinking is that we put ‘The Kanzona’ in large blue lettering above the blue stripe where it says ‘Kansas and Arizona Southern Railroad. In other words, the same signage with the saguaro and wheat stalks logogram, just add ‘The Kanzona’ in big letters.”

“Why?”

“I don’t know. It’s just ... Well, you know, it’s like a nickname. It makes things more familiar, more approachable. Like when the staff refers to you as Beau Brummel.”

“They do?”

“No,” Malik chortled.

“My mother was right about you.”

“Your mother is a very perceptive woman. So, ‘Kanzona’? What do you think?”

Castillo looked off toward the ceiling for a few seconds, then looked back at Malik. “It would take some getting used to, but you make a valid point. Moreover, Kanzona is already being used, informally. This is worth pursuing. Why not see what Arnie thinks? Then we should discuss it at the executive committee meeting.”

(Monday, October 17, 1892)

Thursday, November 17, 1892

“The only thing we are unable to manufacture is money,” Castillo said. “Everything else we are likely to need we can build, or make, or grow, ourselves. Moreover, during a financial depression, the money supply dwindles, even beyond that reduction caused by decreasing business activity. As for banks, If banks have cash, they hold on to it. Banks become cash sumps.

“Conversely, prices decrease, so a dollar will go farther. There are bargains to be had for those with the cash. Ergo, because of both the reduction in the money supply and because of the opportunities of which money can take advantage, it behooves us to have as much cash on hand as possible in the coming year -- or years.”

Castillo was giving a recap of the K&ASR’s preparations for the anticipated economic difficulties.

“Money. Cash. The only thing we cannot create ourselves. Hence the recent sale of substantial portions of our right-of-way. Hence our reduction in stock dividend payments. Hence the lower amounts in the year-end employee bonuses. Hence our early retirement incentives. Hence the requirements to hold positions vacant before rehiring.”

“How’s that going, Raul?” Arnie Yeats asked.

“Beginning December first, the hiring delay will increase from the current sixty days to ninety days. We’ll hold there, pending further developments.

“We’ve kept the employees informed through articles in the newsletter, so they know why we’re doing it. I will not suggest that they have embraced the program, but there does seem to be a grudging acceptance.”

“And what about the bonuses? Do they know Saint Nicholas will be somewhat parsimonious this year?”

It was customary to distribute employee bonuses on December sixth, each year. December sixth was the feast day of Saint Nicholas. In many European countries, that date was observed with family celebrations and gift-giving, rather than at Christmas. In some countries, it was customary for children, before they went to bed, to place their shoes outside the door in the hope that Saint Nicholas would leave treats and trinkets, rather than the lumps of coal reserved for disobedient youngsters. The K&ASR policy was to distribute the bonuses, usually equivalent to about two weeks wages, so that the money would be available to families during the holiday season. Chen Ming-teh had suggested December sixth as a further reason to celebrate the day for many of the immigrant employees.

Bonuses this year would be roughly half the usual amount.

“Again, no one is happy about it,” Castillo replied, “but they understand it is money for a rainy day. They received notice of the reduced amounts in the October newsletter, so it will not come as a surprise to anyone.”

With no further questions, Castillo said, “Emil, your turn.”

Malik began his narrative.

“Despite our best efforts at preparation, it is highly likely that there will be a drop in demand for our services well beyond our ability to maintain full employment, so staff reductions are virtually inevitable. Our plan is to divert as many of those employees as we can to other, non-railroad labor, and to reduce everyone’s wages while supplementing them with food, clothing, and shelter. Those details are in the Board-approved plan, so I won’t enumerate them here.

“I will note, though, that work proceeds apace.

“Site preparations for the various mills in Arenoso, specifically along the Fort Birney Division in Jackson, Franklin, Mesa, and Independence Counties, have all but been completed. We anticipate they will be finished by the end of the year.

“We have laid in seed stock for ten different cereal grains, seven varieties of root vegetables, five of legumes, five types of berries, and numerous annuals, both fruits and vegetables.

“We also have contracts for supplies of root stock and graft cuttings for apple, pear, plum, and peach trees, and for table and wine grapes. The orchard and vineyard stock will take several years to become fruit-bearing at commercial levels, which will likely coincide, hopefully only briefly, with the reduced demand brought on during an economic slump.