This $70,000 he proposed to borrow personally, giving his
note due in 1885 and putting up the same collateral as Orde had--
that is to say, his stock in the Boom Company. To this Orde could
hardly in reason oppose an objection, as it nearly duplicated his
own transaction of 1878. Newmark therefore, through Heinzman, lent
this sum to himself.
It may now be permitted to forecast events in the line of Newmark's
reasoning.
If his plans should work out, this is what would happen: in 1883 the
firm's note for $75,000 would come due. Orde would be unable to pay
it. Therefore at once his stock in the Boom Company would become
the property of Newmark and Orde. Newmark would profess himself
unable to raise enough from the firm to pay the mortgage. The
second mortgage from which he had drawn his personal loan would
render it impossible for the firm to raise more money on the land.
A foreclosure would follow. Through Heinzman, Newmark would buy in.
As he had himself loaned the money to himself--again through
Heinzman--on the second mortgage, the latter would occasion him no
loss.
The net results of the whole transaction would be: first, that
Newmark would have acquired personally the 300,000,000 feet of
northern peninsula timber; and, second, that Orde's personal share
in the stock company would flow be held in partnership by the two.
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