After Florentyna had driven back to the Baron, she tore open the envelope and studied the contents: a check for $24,300 made out to cash.
She told Bill Pearson the whole story the following morning and handed over the envelope. ‘This,’ he said, waving the check, ‘is going to open a whole can of worms.’ He smiled and locked the $24,300 away in his desk.
Florentyna left the city for the weekend, feeling she had carried out her part of the exercise rather well. Even Richard congratulated her. ‘Although we could have done with the cash ourselves,’ he said.
‘What do you mean?’ said Florentyna.
‘I think the Baron’s profits are going to take a big drop this year.’
‘Good heavens, why?’
‘A series of financial decisions implemented by President Carter which are harming the hotels while ironically helping the bank — we have inflation running at fifteen percent while the prime rate is at sixteen. I fear the expense account business trip is the first cutback for most companies that have discovered the telephone is cheaper. So we’re not filling all our rooms and we end up having to raise the prices — which only gives the business community even more reason to cut back on business travel. Into the bargain, food prices have rocketed while wages are trying to keep up with inflation.’
‘Every other hotel group must be faced with the same problem.’
‘Yes, but the decision to move the corporate offices out of the New York Baron last year turned out to be far more expensive than I budgeted for. Four fifty Park Avenue may be a good address, but we could have built two hotels in the South in exchange for having that address on our letterhead.’
‘But your decision released three floors in the New York hotel which allowed us to operate the new banquet rooms.’
‘And still the hotel only made a profit of two million while sitting on real estate worth forty million.’
‘But there has to be a Baron in the center of New York. You couldn’t think of selling our most prestigious hotel.’
‘Until it loses money.’
‘But our reputation—’
‘Your father was never sentimental about reputation when measured against profits.’
‘So what are we doing about it?’
‘I’m going to commission McKinsey and Company to carry out a detailed assessment of the whole Group. They’ll give us an interim report in three months and complete the study in one year if we still want it.’
‘But they’re the top management consultants in New York. Using them can only add to our cost.’
‘Yes, they’ll be expensive. But I wouldn’t be surprised if it saved us a considerable amount in the long run. We have to remember that modern hotels all around the world are serving different customers from those your father built the Barons for. I want to be sure we’re not missing something that’s staring us in the face.’
‘But can’t our senior executives give us that sort of advice?’
‘When McKinsey moved into Bloomingdale’s,’ said Richard, ‘they recommended that the store should change the location of seventeen of its counters from their traditional positions. Simple, you might say, but the profits were up twenty-one percent the following year and none of the executive staff had considered any changes necessary. Perhaps we face the same problem without realizing it.’
‘Hell, I feel so out of touch.’
‘Don’t worry, Jessie darling, nothing is going to be acted on that doesn’t meet with your full approval.’
‘And how is the bank surviving?’
‘Ironically, Lester’s is making more money on loans and overdrafts than at any time since the Depression. My decision to move into gold when Carter won the election has paid off handsomely. If Carter is re-elected I’ll buy more gold. If Reagan captures the White House, I’ll sell the next day. But don’t you worry. As long as you keep earning your fifty-seven five as a congresswoman, I’ll sleep easy knowing we have something to fall back on in bad times... Have you told Edward about Don Short and the twenty-four thousand?’
‘Twenty-four thousand three hundred. No, I haven’t spoken to him in days, and when I do, all he wants to talk about is how to run a hotel group.’
‘I’m inviting him to join Lester’s board at the annual meeting. So it could be the bank next.’
‘He’ll soon be running the whole show,’ said Florentyna.
‘That’s exactly what I’m planning for when I become the First Gentleman.’
When Florentyna arrived back in Washington, she was surprised to find that there was no message awaiting her from Bill Pearson. His secretary told her he was in California campaigning, which reminded her how close the election was. Janet was quick to point out that the legislature was sleeping on its feet again, waiting for the new session, and that perhaps it might be wise for Florentyna to spend more time in Chicago.
On Thursday, Bill Pearson phoned from California to tell Florentyna that he had spoken with the ranking Republican and the chairman of the Defense Subcommittee and they both felt it would cause more trouble than it was worth to raise the issue before the election. He asked her not to declare the donation, because his investigation would be hampered.
Florentyna strongly disagreed with his advice and even considered raising the whole issue with the ranking committee members herself, but when she phoned Edward he counseled against such a move on the ground that the whip’s office undoubtedly knew more about bribery than she did and it might look as if she had been working behind their backs. Florentyna reluctantly agreed to wait until after the election.
Somehow Florentyna — with continual reminders from Janet — managed to push her voting record up to over eighty percent by the end of the session, but only at the cost of turning down every invitation outside Washington that appeared on her desk and she suspected there had been a whole lot more that Janet had not passed on to her. When Congress adjourned, Florentyna returned to Chicago to prepare for another election.
She was surprised to find, during the campaign, that she spent a considerable part of her time sitting in the Cook County Democratic headquarters on Randolph Street. Although Carter’s first two years had not lived up to the expectations of the American voters, it was well known that the local Republicans were finding it hard to convince anyone to run against Florentyna. To keep her occupied, her staff sent her off to speak on behalf of other Democratic candidates in the state as often as possible.
In the end, Stewart Lyle agreed to run again but only after he had made it clear to his committee that he was not going to stomp around the district night and day or waste any more of his money. The GOP was not pleased with Lyle when he said in a private conversation — forgetting that nothing was private during an election campaign — ‘There is only one difference between Kane and the late Mayor Daley: Kane is honest.’
The Ninth District of Illinois agreed with Stewart Lyle and sent Florentyna back to Congress with a slightly increased majority, but she noted the loss of fifteen of her colleagues from the House and three from the Senate. Among the casualties was Bill Pearson.
Florentyna called Bill at his home in California several times to commiserate, but he was always out. Each time she left a message on the answering machine, but he did not return her calls. She discussed the problem with Richard and Edward, who both advised her to see the Majority Leader immediately.
When Mark Chadwick heard the story he was horrified and said he would be in touch with Bill Pearson at once and speak to her later that day. Mark was as good as his word and phoned Florentyna to report something that chilled her: Bill Pearson had denied any knowledge of the $24,300 and was claiming that he had never discussed a bribe case with Florentyna. Pearson had reminded Chadwick that if Florentyna had received $24,300 from any source, she was bound by law to report it either as a campaign contribution or as income. No mention of the money had been made on her campaign forms and, under House rules, she was not entitled to receive an honorarium of over $750 from anyone. Florentyna explained to the Majority Leader that Bill Pearson had asked her not to declare the money. Mark assured Florentyna that he believed her but was not quite clear how she was going to prove that Pearson was lying. It was common knowledge, he added, that Pearson had been in financial trouble since his second divorce. Two alimonies when you’re out of work would flatten most good men, he pointed out.