Chapter 14: Risk and Reward

Authors Note: There is/was no such company as Ronco Scientific. It is a figment of my imagination.

Sooner or later, I had to tell Belle and my parents what I was up to. I thought it would be easier to tell Belle, because it was all about our future, while with my parents, I would probably be spending a lot of time trying to explain where all the money came from. I had assessed the situation correctly.

"Oh, Lee. That's wonderful. I'm so proud of you. You're going to own your own place and you're still so young. Everyone will be so envious of you," Belle said enthusiastically when I told her about the deposit. She didn't say so, but when she wanted to see the floor plan and the drawings, I was pretty sure she was doing a little planning of her own.

She never once asked about where the money came from. She knew I was saving everything I could to finance my school year and invest in the stock market. She also knew I took every day of work that Tommie French offered. She just assumed I had saved my money and I could afford it. Smart girl!

It wasn't so easy with my parents, although I caught a hint of admiration from my father when I explained the sources of the funds. I suggested, if he was still doubtful, that he call Tommie French and ask him what I had earned in the past three years. There was no need of course. He and Tommie saw each other every Saturday morning at the golf club and I'm sure Tommie had given him chapter and verse about my progress.

When I showed him my stock portfolio though, I saw his eyes widen. I told him what I had bought originally, and how I had reinvested several times on the profits and my surplus income from the brewery. He began to see how I had accumulated enough to put the down payment on the apartment and still have the cash to complete the transaction if that's what I decided.

Mortgage rates were at very low levels, hovering about 2.25%, so I wasn't worrying about using some of the cash to cut the mortgage size or term. My memory of the late seventies and early eighties and the soaring interest rates convinced me to be locked into whatever loan I might decide on. I might be better off financing the balance over a ten year period if the payments made sense. That was a decision for another day.

My first semester courses were the most demanding, and I continued to concentrate on maintaining my grades. I wasn't looking to be top of the class, but I was looking to learn and absorb the important things from each course. The result was a nicely grouped set of marks that hovered around eighty, while my psychology course was scoring in the nineties. I had a feel for the subject that didn't escape the notice of my professor, Samuel Caldwell.

"What do you plan to do with all this knowledge you've absorbed, Mr. North?" he asked as he handed back my first semester paper. "You show a notable ability to understand some fairly complex ideas."

I wasn't sure just how to answer him, so I trotted out my stock reply when asked this or similar questions.

"I find the study of human behaviour very interesting. Understanding it can be very useful in a variety of situations. My part-time job is supervising a number of men who are more than twice my age. Understanding what they want from their jobs and how they want to be treated seems to work for me. I credit what I've learned in these courses for that success."

It was, as I said, a pat answer I used often, but Professor Caldwell seemed to accept it. His only comment was, "Remarkable."

My last four-and-a-half months were in front of me. There was no doubt now that I would get my Bachelor of Arts degree. The final semester would be fairly light and allow me time to think about what career I might embark upon. I had talked to Tommie French during the Christmas break and he made it clear that I had a job waiting for me if I wanted it. It would be an administrative position, paying roughly what I was earning as a line supervisor. Looking around, I couldn't think of too many entry-level positions that would pay anywhere near that, so I had to seriously consider it.

In February, however, something happened that somewhat changed my outlook. I had taken a flyer on an American company who were immersed in developing electronics. True, this was the primitive beginnings of what would become the age of technology, but something about the name, Ronco Scientific, struck a familiar note. They had a patent on an integrated circuit, which was being contested by another American corporation, Fairchild Semiconductor.

The British had done some pioneering in the technology, but it was Fairchild that made the product practical. In early 1962, the two companies came to a compromise agreement, and Ronco became a design supplier to Fairchild. I had invested $300 when the stock first came on the market at $3.00 per share. It sank to around a dollar for a few months, then in February, Ronco signed the technology exchange contract with Fairchild, and the stock took off. It took off in such rapid form that it frightened a lot of early investors. Soon enough though, there were plenty more passengers wanting to board the gravy train.

The stock eventually levelled out near $20.00, after having twice split. I had watched the meteoric climb and sold half my shares when it reached the $20.00 mark the first time, leaving the rest as total risk. Tony Alardyce had also bought the same amount, but hung on through all the splits. I had taken a $300 dollar investment and turned it into $7000 in cash and stock. I now owned 200 shares of Ronco, and used the cash to buy 100 shares of Fairchild. It would prove to be another good move.

I bought Tony and Dave Meehan a nice dinner at The Sands restaurant as a thank you for their support and to celebrate our windfall. I had invited Dave since it was he that gave me the encouragement to get involved in the emerging electronics field. He was fascinated by the potential of semiconductors and thought they were the future in a number of fields. He had also bought a hundred shares of Ronco, using some of his grandparent's inheritance to do it at $7.00 a share. His risk paid him back handsomely, just as it had for Tony and me.

Of course, I knew what it was going to lead to. The little transistor radio I bought in the late 1950's would be the pioneer of dozens of different consumer products that would feature solid state electronics. Neither Tony nor Dave could possibly imagine how many new products that one invention would lead to. If I was patient, I could ride the technology wave into wealth. If I was patient.

I continued to invest over the spring and my investments continued to prosper. I couldn't lose with Kodak, General Foods, and Boeing, at least not at that stage of their development. They wouldn't take off and fly like Ronco, but they would produce steady earnings and dividends. They were the foundation of my portfolio.

Belle and I were as close as we could be. We spent every moment we could with each other. I'm sure our parents were now convinced we would marry in the not-too-distant future. Both my family and Belle's attended the convocation ceremonies in May. I had not only been granted my degree, but had received first prize from the Psychology Department for consistently outstanding marks. That was a surprise.

A Bachelor of Arts is nothing particularly special, but it was important to me. It repaired a mistake I had made in my previous life and gave me the opportunity to meet and make friends with people I thought I would want to remain friends with throughout my life. My parents were proud of my accomplishment, the first in the family to obtain a college degree. My father was amazed and particularly proud of my psychology prize.

Vac and Charlie also graduated in the same class. Charlie had agreed to join in Vac's father's rental business, giving up, or at least putting on hold, his plan for an engineering degree. They would do well together. We had celebrated on the previous Friday afternoon at my expense. I was feeling pretty flush with the prize money that came with the award, not to mention my investment earnings. I was now having to hire a tax accountant to look after my responsibilities, but it seemed a small price to pay for success.

Just before graduation, I learned that my bid for an apartment in building three had been accepted, subject to my confirmation and, of course, the balance of the payment. I sat down with my banker and took out a ten year mortgage at 2.5% interest after discussing the option of paying for the unit in cash, or some portion of the balance before mortgaging the rest. I paid an additional $4000 toward the purchase price and mortgaged the remaining $9000. I was now the proud owner of a ninth floor two bedroom apartment with a view of the harbour and English Bay.

When I took my parents and Belle to see the place just before I was permitted occupancy, they were awestruck. Not just because of the view, but also because it was new, modern, and perfect for my needs. I think my mother was gasping for breath when she was finished inspecting the place. She and Belle were busy deciding on colours and curtains without so much as a nod to me. I had my own ideas, but it wasn't the time to argue. It was the time to celebrate.

My father was now following my investment lead. He had bought into Ronco after the first split and had made out very nicely. I promised to let him know what I was doing and why, and I think he was going to piggyback my investments as much as he was able to financially.

Both my grandparents on my father's side had passed away and had left all their worldly possessions to my father, their only child. Those possessions included property in east end Toronto and some very old C.P.R. stock that they had bought before WWII. The stock stayed in his portfolio, but the property was sold and allowed Dad to retire his mortgage. The C.P.R. stock would secure their retirement.

I never knew my mother's parents. Her father had abandoned the family shortly after her mother had died, apparently during an influenza epidemic in the early 1920's. She, her three sisters, and her brother were separated and taken into foster care. Somehow, three of the sisters had remained in contact and now were close, even though they lived thousands of miles apart; the eldest sister in England, and the youngest in northern Ontario.

I was on a self-imposed vacation for the rest of the month of May. I needed it, and I had, in my opinion, earned it. I called Tommie French and let him know I would confirm in two weeks whether I would take the permanent position he offered starting in September. In the meantime, I would continue as a line supervisor for the summer as previously agreed.

It had been four years since I had been shoved into this new life. Four years of having to relive and remake my youth in the manner I wished I had the first time. It seemed, after all this time, that I was destined to live my life all over again. Not such a bad thing, I suppose. It had its advantages. I could correct mistakes I made now knowing the outcome.

I'd made up my mind to propose to Belle. I loved her, I knew, and I couldn't see myself with anyone else. With any luck, we'd have the two sons we so successfully raised, and even though it wouldn't be the same life, it would be a good one with her and the boys. In our later years, I would have plenty of time to prepare myself if Belle's depression reoccurred.

We wouldn't be going through the financial struggles we endured for the first ten years or so. I could offer us a better life now, one that would provide a home of our own, living in the community we grew up in. Everything seemed to fit.

"This was lovely, Lee. What made you think of coming here? Is this a special occasion?" Belle bubbled as we shared a dessert.

I had brought her to the rooftop restaurant on English Bay and the gods were with me that evening. The sky was clear and the sun would be setting over Vancouver Island soon. It was a very romantic setting for what I wanted to be a very romantic moment.

"Belle ... if I've never said it properly ... I love you," I stammered, holding her hand as I began my heavily rehearsed proposal. "I want to marry you. Will you marry me?"

I don't know how long I held my breath, waiting for her response. She looked surprised, but not shocked. I had pulled out the dark blue velvet box from my jacket pocket, opened it, and placed it in front of her. Her eyes were flicking back and forth between me and the ring that now shone in front of her.

"I ... I ... love you too, Lee. I think I have from that May Day dance when we first met. I'm just not sure... ," she halted, looking at me with an indecipherable expression. "I'm not sure I'm ready to marry."

I let the air out of my lungs, and I don't think I'd ever been quite so deflated as I was at that moment. All that practice about what I wanted to say to her presumed she would say yes. It seemed a foregone conclusion. Now ... now I was mute. I had no idea what to say.

"Please don't be upset, Lee. I do love you ... and when I'm ready, it will be you that I want. But, I have a career now, and a different future than I imagined a couple of years ago. You made that happen, Lee. You convinced me that I could be more than a bank teller.

"Anne Prosser and I have decided to go into business together. We're going to open our own dress shop in the Village. We have a place all picked out and we've contacted some suppliers about consignment. I'm going to do the sewing and design, while Anne looks after the sales, purchasing, and helps me with the books."

"Who's Anne Prosser?" I asked, finally finding my voice.

"She's another employee at Maurice's. She and I have been talking about this for some time. You planted the seed, and Anne's the perfect partner for the way we want to run the business."

"What about finances? How are you going to fund this store? We talked before about what it took to run a business. How are you going to manage that?"

"We both have savings we can contribute, and we're going to get a bank loan for the rest. It's just the start-up money to get us through the first six months that's the challenge."

I looked down at the ring box and shook my head. "This wasn't the way I had hoped this would go." I reached for the small box, but before I could pick it up, Belle closed her hand over mine.

"I didn't say no, Lee. But I'm not ready right now to commit myself. Starting a business and a marriage at the same time would be too much for me. For both of us." She looked up at me with a forlorn expression. "Do you think you could wait through a longer engagement?" she asked timidly.

"How long is longer?" I wasn't holding out much hope, but at least we were still talking about it.

She hesitated before answering. "A year ... maybe a bit more." She didn't look very confident or hopeful.

I sat back in the chair and closed my eyes. What was important to me? She wasn't saying no, she was saying not now. "Can I think about it for a day?" I asked.

"Of course. I understand. I'm sorry I've disappointed you, but this has become important to me. I need to prove to myself and my family that I can do this. I think I need to prove it to you too, Lee."

"You don't have to prove anything to me, Belle. I'm happy with you just the way you are."

I paid the bill, left a healthy tip and walked with Belle to the elevators. I don't remember much of the ride home. I was lost in my thoughts and I don't suppose Belle was interested in small talk anyway. I stopped at her house and walked her to the door.

"Will I hear from you tomorrow, Lee?" she asked, clearly unsure of my answer.

"Yes. Tomorrow. I'll see you tomorrow evening."

I leaned in and gave her a soft, warm kiss, attempting a smile as I withdrew. I'm sure it wasn't a very big one, and I knew it wasn't a sincere one. I didn't feel much like smiling right at that moment.

I was fingering the ring box in my pocket as I walked back to the car. I had a lot of thinking to do between now and tomorrow evening. Luckily, tomorrow was Saturday. I could lose myself in cutting the lawn and other chores while I pondered what I wanted to say to Belle.