Kane & Abel (1979) Read online

  ‘I’m not the assistant manager any longer. Get out, Mr Pacey, before I throw you out.’

  ‘You fucking bastard,’ said the ex-manager, realizing his last card had been trumped. ‘You better keep your eyes wide open, Polack, because I’m going to cut you down to size.’ He slammed the door as he left.

  By lunchtime, Pacey had been joined on the street by the headwaiter, head chef, senior housekeeper, chief desk clerk, head porter and seventeen other members of the Richmond staff who Abel felt were past redemption. In the afternoon he called a meeting of the remainder of the employees, explained to them in detail what he had done, and assured them that their jobs were not in any danger.

  ‘But if I find one dollar,’ said Abel, ‘I repeat, one dollar misplaced, the person involved will be fired on the spot, without references. Do I make myself clear?’

  No one spoke.

  Several other members of staff left during the next few weeks, once they realized that Abel Rosnovski did not intend to continue Desmond Pacey’s system on his own behalf. They were quickly replaced.

  William started work as a junior director of Kane and Cabot in September 1928. He began his banking career in a small office next to Tony Simmons, the bank’s Investment Director. From the day William arrived he knew, even though nothing was said, either discreetly or indiscreetly, that Simmons was hoping to succeed Alan Lloyd as chairman of the bank.

  The bank’s entire investment programme was Simmons’s responsibility. He delegated some part of his portfolio to William, in particular private investment in small businesses, land and any other outside entrepreneurial activities. Among William’s duties was the compilation of a monthly report for the board on any investments he wished to recommend. The seventeen board members met once a month in a larger oak-panelled room, dominated at both ends by portraits, one of William’s father, the other of his grandfather. William had never known his grandfather, but had always suspected he must have been one hell of a man to have married Grandmother Kane. There was ample room left on the walls for his own portrait.

  William conducted himself with caution during his early months at the bank, and his fellow board members soon came to respect his judgement, and almost invariably accepted his investment recommendations. On the rare occasions when they didn’t follow his advice, they lived to regret it. On the first occasion, a Mr Mayer sought a loan from the bank to invest in ‘talking pictures’, but the board refused to believe that the concept had any merit or future. Another time, a Mr Paley came to William with an ambitious plan for a radio network. Alan Lloyd, who had about as much respect for telegraphy as for telepathy, would have nothing to do with the scheme. The board supported his view. Louis B. Mayer later founded MGM, and William Paley became Chief Executive of CBS. William backed his own judgement and supported both men with his own money, without informing either the bank or the recipients. It was a personal matter.

  One of the more unpleasant aspects of William’s day-to-day duties was handling the liquidations and bankruptcies of clients who had borrowed large sums from the bank and had subsequently found themselves unable to repay their loans. William was not by nature a soft man, as Henry Osborne had learned to his cost, but insisting that old and respected clients liquidate their stocks, and even sell their homes, was always a disagreeable experience. He soon learned that these clients fell into two distinct categories - those who looked upon bankruptcy as an excuse to avoid their responsibilities, and those who were appalled by the very thought of it, and would spend the rest of their lives trying to repay every penny they had borrowed. William found it easy to be tough with the first category, but was far more lenient with the second, often with the grudging support of Tony Simmons.

  The customer who had requested to see him that morning clearly fell into the second category. Max Brookes, had borrowed more than a million dollars from Kane and Cabot to invest in the Florida land boom of 1925, an investment William would never have supported had he been advising the bank at that time. Max Brookes was however celebrated in Massachusetts as one of the intrepid breed of balloonists and flyers, and a close friend of Charles Lindbergh. His tragic death, when the small plane he was piloting crashed into a tree only a hundred yards after take-off, was reported in the press across the length and breadth of America, making him a national hero.

  William, acting for the bank, immediately took over the Brookes estate, which was already insolvent. He closed the account, and tried to cut the bank’s losses by selling off the land Brookes owned in Florida, except for two acres on which the family home stood. The bank’s loss still turned out to be over $300,000.

  Once William had liquidated everything the bank held in Max Brookes’s name, he turned his attention to Mrs Brookes, who had signed a personal guarantee for her late husband’s debts. Although William always tried to secure such a guarantee on any loans granted by the bank, he never recommended undertaking such an obligation to his friends, however confident they might feel about a venture, as failure invariably caused great distress to the guarantor and, more importantly, to his or her family.

  William wrote a formal letter to Mrs Brookes, suggesting she make an appointment to discuss her position. He knew from the Brookes file that she was only twenty-two years old, and a member of an old and distinguished Boston family - daughter of Andrew Higginson and great-niece of Henry Lee Higginson, founder of the Boston Symphony. He also noted that she had substantial assets of her own. He did not relish the thought of requiring her to make them over to the bank, so he steeled himself for an unpleasant encounter.

  The morning had begun badly, after a heated disagreement with Simmons about a substantial investment in copper and tin that he wished to recommend to the board. Industrial demand for the two metals was rising steadily, and William was convinced that a world shortage was certain to follow, which would guarantee the bank a handsome profit. Simmons did not agree with William’s judgement, feeling the bank should invest more heavily in the stock market, and the matter was still uppermost in William’s mind when his secretary ushered Mrs Brookes into his office.

  With one tentative smile, she removed copper, tin and all other world shortages from his mind. Before she could sit down, he jumped up and walked around from the other side of his desk and settled her into a chair, simply to assure himself that she would not vanish like a mirage on closer inspection. William had never come across a woman he considered half as beautiful as Katherine Brookes. Her long fair hair fell in loose and wayward curls onto her shoulders, and little wisps escaped enchantingly from her hat and clung around her temples. The fact that she was in mourning in no way detracted from the beauty of her slim figure, and her fine bone structure ensured that she was someone whose beauty would turn to elegance over the years. Her brown eyes were enormous. They were also clearly apprehensive about what he had planned for her.

  William strove for a businesslike tone of voice. ‘Mrs Brookes, may I say how sorry I was to learn of your husband’s death - a man we all admired - and how much I regret the necessity of asking you to come here today.’

  Two lies in a single sentence, both of which would have been true five minutes before. He waited to hear her speak.

  ‘Thank you, Mr Kane. I am well aware of my obligations to your bank,’ she said, in a soft, gentle voice, ‘and I can assure you I will do everything in my power to meet them.’

  William said nothing, hoping she would go on speaking. When she did not, he outlined the disposition of Max Brookes’s estate - very slowly. She listened with downcast eyes.

  ‘Now, Mrs Brookes, you acted as guarantor for your late husband’s loan, and that brings us to the question of your personal assets.’ He consulted his file. ‘You have eighty thousand dollars in investments - your family money, I believe - and seventeen thousand four hundred and fifty-six dollars in your checking account.’

  She looked up. ‘Your knowledge of my financial position is more detailed than mine, Mr Kane. You should, however, add Buckhurst Park, our ho