Mr. Reece said you're not supposed to mention this to anyone. He said that was very important. Not to anyone.
Then I won't.
Taylor glanced at her finger and went to find a Band-Aid for the paper cut.
CHAPTER TWO
On a warm morning in April of 1887, a balding, thirty-two-year-old sideburned lawyer named Frederick Phyle Hubbard walked into a small office on lower Broadway, slipped his silk hat and Prince Albert coat onto a hook and said wryly to his partner, "Good morning, Mr. White. Have you secured any clients yet?"
The life of a law firm began.
Both Hubbard and George C. T. White had graduated from Columbia Law School and had promptly come under the acutely probing eye of Walter Carter, Esquire, the senior partner at Carter, Hughes & Cravath. Carter hired them without pay for a year then turned them into professionals at the end of their probation by paying them the going salary of twenty dollars a month.
Six years later, the two men--as ambitious as Carter had pegged them to be--borrowed three thousand dollars from White's father, hired one law clerk and a male secretary and opened their own firm.
Though they dreamed of offices in the state-of-the-art Equitable Building at 120 Broadway they settled for less. Rent in the old building they chose near Trinity Church was sixty-four dollars a month, which bought the partners two dark rooms. Still, their quarters had central heat (though they kept the office's two fireplaces going throughout most of January and February) and an elevator that one operated by pulling a thick rope running through the middle of the car with pieces of tapestry carpeting Hubbard's wife had cut and stitched; the felt pads provided by the building management were, Hubbard felt, inelegant, and he feared they might "impress clients adversely."
Over lunch at Delmonico's on Fifth Avenue, where Hubbard and White sunk much of their first profits feeding existing and would-be clients, they would brag about the firm's new letterpress, which used a damp cloth to make copies of firm correspondence. The firm had a typewriter but the lawyers wrote most of their correspondence in ink with steel pens. Hubbard and White both insisted that their secretary fill the firm's ink-blotting shakers with Lake Champlain black sand. The men had looked at, though rejected, a telephone--it would have cost ten dollars a month (besides, there was no one to call but court clerks and a few government officials).
In school both men had dreamed of becoming great trial lawyers and during their clerking days at Carter, Hughes they'd spent many hours in courtrooms watching famous litigators cajole, charm and terrorize juries and witnesses alike. But in their own practice economics could not be ignored and the lucrative field of corporate law became the mainstay of their young practice. They billed at fifty-two cents an hour though they added arbitrary and generous bonuses for certain assignments.
Those were the days before income tax, before the Antitrust Division of the Justice Department, before the SEC; corporations rode like Assyrians over the landscape of American free enterprise and Messrs. Hubbard and White were their warlords. As their clients became exceedingly wealthy so did they. A third senior partner, Colonel Benjamin Willis, joined the firm in 1920. He died several years later of pneumonia related to a World War One mustard gassing but he left as a legacy to the firm one railroad, two banks and several major utilities as clients. Hubbard and White also inherited the matter of what to do with his name--appending it to theirs had been the price for both the colonel and his fat clients. Nothing of the bargain was in writing but after his death the remaining partners kept their word; the firm would forever be known as a triumvirate.
By the time the mantles passed, in the late 1920s, Hubbard, White & Willis had grown to thirty-eight attorneys and had moved into its cherished Equitable Building. Banking, corporate law, securities and litigation made up the bulk of the work, which was still performed as it had been in the nineteenth century--by gentlemen, and a certain type of gentleman only. Attorneys seeking work who were in fact or by appearance Jewish, Italian or Irish were interviewed with interest and cordiality and were never offered positions.
Women were always welcome--good stenographers being hard to find.
The firm continued to grow, occasionally spinning off satellite firms or political careers (invariably Republican). Several attorneys general issued from Hubbard, White & Willis, as did an SEC commissioner, a senator, two governors and a vice president of the United States. Yet the firm, unlike many of its size and prestige on Wall Street, wasn't a major political breeding ground. It was common knowledge that politics was power without money and the partners at Hubbard, White saw no reason to forsake one reward of Wall Street practice when they could have both.
The present-day Hubbard, White & Willis had over two hundred fifty attorneys and four hundred support employees, placing it in the medium-sized category of Manhattan firms. Of the eighty-four partners, eleven were women, seven were Jewish (including four of the women), two were Asian-American and three were black (one of whom was, to the great delight of the EEOC-conscious executive committee, Latino as well).
Hubbard, White & Willis was now big business. Overhead ran $3 million a month and the partners had upped the billing rates considerably higher than the small change charged by Frederick Hubbard. An hour of a partner's time could hit $650 and in big transactions a premium (referred to by associates as a no-fuck-up bonus) of perhaps $500,000 would be added to the client's final tab.
Twenty-five-year-old associates fresh out of law school made around $100,000 a year.
The firm had moved from sooty limestone into glass and metal and now occupied four floors in a skyscraper near the World Trade Center. An interior designer had been paid a million dollars to awe clients with dramatic understatement. The theme was lavender and burgundy and sea blue, rich stone, smoky glass, brushed metal and dark oak. Spiral marble staircases connected the floors, and the library was a three-story atrium with fifty-foot windows offering a stunning view of New York Harbor. The firm's art collection was appraised at close to fifty million dollars.
Within this combination MOMA and Interior Design centerfold, Conference Room 16-2 was the only one large enough to hold all of the partners of the firm. This Tuesday morning, though, only two men were sitting here, at the end of a U-shaped conference table surfaced with dark red marble and edged in rosewood.
Amid an aroma of baseboard heat and brewing coffee they together read a single sheet of paper, gazing at it like next of kin identifying a body.
"Lord, I can't believe this." Donald Burdick, the man pinning the sheet to the table, had been the head of the firm's executive committee for the past eight years. At sixty-seven he was lean and had sleek gray hair trimmed short by a barber who visited Burdick's office fortnightly, the old Italian brought to the firm in the partner's Rolls Royce--"fetched," as Burdick said.
People often described the partner as dapper but this was offered only by those who didn't know him well. "Dapper" suggested weakness and a lack of grit and Donald Burdick was a powerful man, more powerful than his remarkable resemblance to Laurence Olivier and his suede-glove manners suggested.
His was a power that could not be wholly quantified--it was an amalgam of old money and old friends in strategic places and old favors owed. One aspect of his power, however, did lend itself to calculation: the enigmatic formula of partnership interest in Hubbard, White & Willis. Which was not in fact so mysterious at all if you remembered that the votes you got to cast and the income you took home varied according to the number of clients you brought to the firm and how much they paid in fees.
Donald Burdick's salary was close to five million dollars a year. (And augmented--often doubled--by a complicated network of other "investments," to use his preferred euphemism.)
"My Lord," he muttered again, pushing the sheet toward William Winston Stanley. Sixty-five years old, Stanley was stout, ruddy, grim. You could easily picture him in Pilgrim garb, cheeks puffing out steam on a frigid New England morning as he read an indictment to a witch.
&nb
sp; Burdick was Dartmouth and Harvard Law; Stanley had gone to Fordham Law School at night while working in the Hubbard, White mailroom. By a crafty mix of charm, bluntness and natural brilliance for business he'd fought his way up through a firm of men with addresses (Locust Valley and Westport) as foreign to him as his (Canarsie in Brooklyn) was to them. His saving grace among the society-minded partners was membership in an Episcopalian church.
Burdick asked, "How can this be accurate?"
Stanley gazed at the list. He shrugged.
"How on earth did Clayton do it?" Burdick muttered. "How did he get this many in his camp without our hearing?"
Stanley laughed in a thick rasp. "We just have heard."
The names contained on the list had been compiled by one of Burdick's spies--a young partner who was not particularly talented at practicing law but was a whiz kid at getting supposedly secret information out of people at the firm. The list showed how many partners were planning on voting in favor of a proposed merger between Hubbard, White & Willis and a Midtown law firm, a merger that would end the life of Hubbard, White as it then existed, as well as Burdick's control of the firm--and very likely his practice of law on Wall Street altogether.
Until now Burdick and Stanley were convinced that the pro-merger faction, led by a partner named Wendall Clayton, would not have enough votes to ram the deal through. But, if this tally was accurate, it was clear that the rebels probably would succeed.
And the memo contained other information that was just as troubling. At the partnership meeting scheduled for later this morning the pro-merger side was going to try to accelerate the final merger vote to a week from today. Originally it had been planned for next January. Burdick and Stanley had been counting on the month of December to win, or bully, straying partners back into their camp. Moving the vote forward would be disastrous.
Burdick actually felt a sudden urge to break something. His narrow, dry hand snatched up the paper. For a moment it seemed he would crumple it into a tight ball but instead he folded the paper slowly and slipped it into the inside pocket of his trim-fitting suit.
"Well, he's not going to do it," Burdick announced.
"What do we do to stop him?" Stanley barked.
Burdick began to speak then shook his head, rose and, stately as ever, buttoned his suit jacket. He nodded toward the complicated telephone sitting near them on the conference table, which unlike the phones in his office was not regularly swept for microphones. "Let's not talk here. Maybe a stroll in Battery Park. I don't think it's that cold out."
CHAPTER THREE
His eyes were the first thing about him she noticed.
They were alarmingly red, testifying to a lack of sleep, but they were also troubled.
"Come on into the lion's den." Mitchell Reece nodded Taylor Lockwood into his office then swung the door shut. He sat slowly in his black leather chair, the mechanism giving a soft ring.
Lion's den ...
"I should tell you right up front," Taylor began, "I've never worked in litigation. I--"
He held up a hand to stop her. "Your experience doesn't really matter. Not for what I have in mind. Your discretion's what's important."
"I've worked on a lot of sensitive deals. I appreciate client confidentiality."
"Good. But this situation requires more than confidentiality. If we were the government I guess we'd call it top secret."
When Taylor was a little girl her favorite books were about exploration and adventure. The two at the top of her list were the Alice stories--Wonderland and Through the Looking-Glass. She liked them because the adventures didn't take the heroine to foreign lands or back through history; they were metaphoric journeys through the bizarre side of life around us.
Taylor was now intrigued. Lion's den. Top secret.
She said, "Go ahead."
"Coffee?"
"Sure. Just milk, no sugar."
Reece stood up stiffly, as if he'd been sitting in one position for hours. His office was a mess. A hundred files--bulging manila folders and Redwelds stuffed with documents--filled the floor, the credenza, his desk. Stacks of legal magazines, waiting to be read, filled the spaces between the files. She smelled food and saw the remains of a take-out Chinese dinner sitting in a greasy bag beside the door.
He stepped into the canteen across the hall and she glanced out, watched him pour two cups.
Taylor studied him: the expensive but wrinkled slacks and shirt (there was a pile of new Brooks Brothers' shirts on the credenza behind him; maybe he wore one of these to court if he didn't have time to pick up his laundry). The tousled dark hair. The lean physique. She knew that the trial lawyer, with dark straight hair a touch long to go unnoticed by the more conservative partners, was in his mid-thirties. He specialized in litigation and had a reputation of his own. The firm's clients loved him because he won cases; the firm loved him because he ran up huge tabs doing so. (Taylor had heard that he'd once billed twenty-six hours in a single day; working on a flight to L.A., he'd taken advantage of the time zones.)
Young associates idolized Reece though they burned out working for him. Partners were uncomfortable supervising him; the briefs and motion papers he wrote under their names were often way beyond the older lawyers' skills at legal drafting.
Reece also was the driving force behind the firm's pro bono program, volunteering much of his time to represent indigent clients in criminal cases.
On the personal side, Reece was the trophy of the firm, according to many women paralegals. He was single and probably straight (the proof wasn't conclusive--a divorce--but the ladies were willing to accept that circumstantial evidence as entirely credible). He'd had affairs with at least two women at the firm, or so the rumor went. On the other hand, they lamented, he was your standard Type A workaholic and thus a land mine in the relationship department. Which, nonetheless, didn't stop most of them from dreaming, if not flirting.
Reece returned to his office and closed the door with his foot, handed her the coffee. He sat down.
"Okay, here it is--our client's been robbed," he said.
She asked, "As in what they do to you on the subway or what they do at the IRS?"
"Burglary."
"Really?" Taylor again swallowed the yawn that had been trying to escape and rubbed her own stinging eyes.
"What do you know about banking law?" he asked.
"The fee for bounced checks is fifteen dollars."
"That's all?"
"I'm afraid so. But I'm a fast learner."
Reece said seriously, "I hope so. Here's your first lesson. One of the firm's clients is New Amsterdam Bank & Trust. You ever work for them?"
"No." She knew about the place, though; it was the firm's largest banking client and had been with Hubbard, White for nearly a hundred years. Taylor took a steno pad out of her purse and uncapped a pen.
"Don't write."
"I like to get the facts straight," she said.
"No, don't write," he said bluntly.
"Well, okay." The pad vanished.
Reece continued. "Last year the bank loaned two hundred fifty million dollars to a company in Midtown. Hanover & Stiver, Inc."
"What do they do?"
"They make things. I don't know. Widgets, baubles, bangles, bright, shiny beads." Reece shrugged then continued, "Now the first installments of the loan were due six months ago and the company missed the payments. They go back and forth, the bank and Hanover, but it's pretty clear that the company's never going to pay the money back. So, under the loan agreement, the whole amount comes due--a quarter-billion dollars."
"What'd they do with the money?"
"Good question. My feeling is it's still sitting somewhere--hell, they didn't have time to spend that much. But anyway, what happens at New Amsterdam--our revered client--is this: The economy melts down and the bank's reserves are shrinking. Now, the government says to all banks, Thou shalt have X amount of dollars on hand at all times. But New Amsterdam doesn't have X amount anym
ore. They need more in their reserves or the feds're going to step in. And the only way to get a big infusion of cash is to get back Hanover's loan. If they don't, the bank could go under. And that results in a couple of problems: First, Amsterdam is Donald Burdick's plum client. If the bank goes under he will not be a happy person, nor will the firm, because they pay us close to six million a year in fees. The other problem is that New Amsterdam happens to be a bank with a soul. They have the largest minority-business lending program in the country. Now, I'm not a flaming liberal, but you may have heard that one of my pet projects here--"
"The criminal pro bono program."
"Right. And I've seen firsthand that the one thing that helps improve shitty neighborhoods is to keep businesses in them. So I have a philosophical stake in the outcome of this ... situation."
"And what exactly is the situation, Mitchell?"
"Earlier in the fall we filed suit against Hanover for the two hundred fifty million plus interest. Now if we can get a judgment fast we can levy against the assets of the company before the other creditors know what hit them. But if there's a delay in enforcing that judgment the company'll go into bankruptcy, the assets'll disappear and New Amsterdam might just go into receivership."
Taylor tapped the pen on her knee. She didn't mean to be projecting the impatience she felt though she knew maybe she was. "And the burglary part?"
He replied, "I'm getting to that. To loan the money the bank made Hanover sign a promissory note--you know, a negotiable instrument that says Hanover promises to pay the money back. It's like your savings bond."
Not like one of mine, Taylor reflected, considering what theirs was worth.
"Now the trial was set for yesterday. I had the case all prepared. There was no way we'd lose." Reece sighed. "Except ... When you're going to sue to recover money on a note you have to produce the note in court. On Saturday the bank couriered the note to me. I put it in the safe there." He nodded at a big filing cabinet bolted to the floor. There were two heavy key locks on the front.