Without preamble Oliver said: "The Santamaria issue was underwritten--the contract says so." He held the document out to Hugh with a trembling hand.
Hugh said: "The partners agreed that these bonds were to be sold on a commission basis."
"Mr. Edward told me to draw up an underwriting contract."
"Can you prove it?"
"Yes!" He gave Hugh another sheet of paper. This was a contract brief, a short note of the terms of an agreement, given by a partner to the clerk who was to draw up the full contract. It was in Edward's handwriting and it quite clearly said that the loan was to be underwritten.
That settled it. Edward was responsible. There had been no fraud, and there was no way the money could be got back. The whole transaction was perfectly legitimate. Hugh was dismayed and enraged.
"All right, Oliver, you can go," he said.
Oliver stood his ground. "I hope I may take it that no suspicion attaches to me, Mr. Hugh."
Hugh was not convinced that Oliver was totally innocent, but he was obliged to say: "You are not to be blamed for anything you did under Mr. Edward's orders."
"Thank you, sir." Oliver went out.
Hugh looked at his partners. "Edward went against our collective decision," he said bitterly. "He changed the terms of the issue behind our backs. And it has cost us one million, four hundred thousand pounds."
Samuel sat down heavily. "How dreadful," he said.
Sir Harry and Major Hartshorn just looked bewildered.
William said: "Are we bankrupt?"
Hugh realized the question was addressed to him. Well, were they bankrupt? It was unthinkable. He reflected for a moment. "Technically, no," he said. "Although our cash reserve has gone down by one million four hundred thousand pounds, the bonds appear on the other side of our balance sheet, valued at nearly their purchase price. So our assets match our liabilities, and we're solvent."
Samuel added: "As long as the price doesn't collapse."
"Indeed. If something happened to cause a fall in South American bonds we would be in deep trouble." To think that the mighty Pilasters Bank was so weak made him feel sick with rage at Edward.
Sir Harry said: "Can we keep this quiet?"
"I doubt it," Hugh replied. "I'm afraid I made no attempt to hide it up in the senior clerks' room. It's gone around the building by now and it will be all over the City by the end of the lunch hour."
