The Hanover House

"He's a very rough cut man like the Chief was when I first met him. You could be a positive influence in his transformation out of the streets. I sense he likes you but is not sure who or what you are. It's hard to tell how he'll react when he finds out, if he finds out. He very likely could be fun and entertaining because he's so different. He's not a particularly nice man but he's not a bad man, either."

"What about you, Max? See any fatal flaws?"

"No I don't. I agree in principle with the Chief and Mi. My greatest concern is that he comes to know too much about our patrons and us. Oh, I'm sure he knows a great many of them already and probably more than they would care to have known. Regardless, their relationship with us should remain private. Under no circumstances would I release names or their files to him."

With that Sophie thanked them for their time and help. She would follow up with Mi for a more private conversation. While her training had taught her to become immune to social conventions she also knew that Mi would have more to say when there was just the two of them, preferably while they were in bed.

After receiving the evening security briefing from the on-duty watch commander Sophie went to her apartment to consider what had happened. As everyone had concluded, Frank was interesting and could be very entertaining. Was their relationship to be platonic or more? The only way to know the answer to that question was to have a more forthright conversation and perhaps a bout of sex. If the latter, where should it take place? Sophie concluded that she should take a room at a downtown hotel, just in case.

-------------------------------------------------In the intervening days Sophie continued her training while assuming some operational control of Hanover House. The Concierge turned over all functions not immediately associated with performance and security, in other words, all housekeeping, grounds, maintenance, finance and clerical staff. These functions were the same she worked in her first six months at the House. All were familiar with her and knew they had an advocate in her.

The Concierge had planned this assignment carefully. While not giving her control of the Hanover House's moneymaking operations he did give her control of its performance measurement, the money. Assuming control of finance gave Sophie access to all the House's operations. In politics and gaining leverage the old adage of follow the money applied to the Hanover House, as well. Within six weeks of assuming responsibility for House finances Sophie knew where every bone was buried. She reconciled budget responsibilities with the informal pecking order among department heads and masters. Once she understood the budget system and processes used to manage it she set about making changes and reforms to streamline, make it less capricious and more immune to internal politics. Her first task was to set up annual, and 2- and 5-year budgets for operations and capital investments. She instituted standardized estimating and reporting protocols. She set about laying the foundation for the Hanover House to be run as a business.

"Thank you for seeing me this morning, Concierge. I wanted to bring you up-to-date on the House's finances and review the changes I'm making. I had Susan (the Concierge's secretary and only non-operational staff member not under Sophie's control) block out the rest of the morning so we could have as much time as needed to answer all your questions." They spent the next two hours reviewing the House's finances and budgets. At its conclusion the Concierge told Sophie it was the first time he ever had a complete grasp of the House's financial underpinnings, and thanked her for giving it to him. He asked if there was anything else.

"Well, yes there is. It became clear to me early on and as revealed by our review this morning, the Hanover House is not a going concern. We spend far more money than we take in. The obvious question becomes: How do we remain viable, a going concern? A bank draft is wired to our bank every month to cover all un-recouped expenses and investments. I have no insight or knowledge of these funds, their source or reliability."

The Concierge leaned back and asked Sophie to order in lunch. While waiting for it he asked at what point in her investigation had she concluded there was a revenue shortfall. After telling him it was almost the first thing she noticed he nodded his head approvingly. He took the conversation to inconsequential areas until lunch arrived. After the door closed he told Susan not to interrupt until Sophie and he were done.

"Sophie, it should be clear that your purpose here is to be my replacement. That happy event is arriving sooner rather than later. It's my health, you see. I've made sure you were aware of its status with every visit to the doctor and hospital. At this point you probably know more about me than I do. As with everything else, I have kept you fully informed of everything you've needed to complete your training and perform your duties. That said, there are a few things of which you are not aware because there was never a need. As of today, that changes. Yes, I'm fully aware of our revenue shortfall and have been all along.

"The Hanover House started long ago, under a different name and guided by my predecessor. It wasn't a going concern then, either. The first Concierge established it as a hobby, an indulgence, if you will. A vain man, he ran it to satisfy his ego and sexual appetites. Over time he came to take great pride in the House and concluded that it served a need that transcended his own. Knowing he would eventually lack the ability to operate it himself he did two things that give us the House we know today. He funded an endowment, a very substantial one, and he began training his successor, me.

"Over the years the House has given me unimaginable pleasure and pride. I returned its blessings by growing the original endowment with my own monies and through some good investment decisions. As of the most recent quarter, the endowment's value is just over $2B, $2.128B to be exact. I use a board of trustees to manage the portfolio. Yes. Yes, that is a lot of money and thank God for it. It let's the House remain true to its intended purpose without outside interference.

"Before I say more about the House let's spend a few moments on you. Perhaps you don't know that I commissioned a dossier prepared on you and your husband before your birthday celebration six years ago. That's right. That meant I knew quite a lot about you before we ever met. I kept both current. Would you like to see them? Of course, you may take them with you when we're done. In the beginning I had hopes you might succeed me. Thank God things have turned out as they have. You will have the same problem, soon enough.

"As time and circumstances bore out you demonstrated the requisite skills, personality and drive to make an outstanding Concierge. I do not overstate when I tell you that you are the greatest accomplishment of my life. Were I to leave today the House would be in better hands than it has ever been. That part, the greater part of my life is settled and in good hands. That leaves my personal life. I came here a dilettante from an old family loaded with old money. My personal fortune has faired as well as the House's and when combined they now substantially exceed $5B. More than just a Concierge, I'm an investor and a good one. And therein lies the problem: What to do with it?

"I have a solution. Actually, it's more of an old man's prerogative. I don't plan to do anything with it. If you will, it's your problem. When you leave I'll have Susan bring our attorney's in and we'll sign all the paperwork to complete the legal transition. You will be the Concierge in all matters, save name.

"You may use the money as you see fit. I place no restrictions on you. I am confident the Sophie I know and have come to respect will do the right thing regardless of the direction she chooses.

"So, there you have it. The endowment covers the shortfall every month. It grows at a rate faster than those disbursements, a substantially faster rate, so you don't have to look down the road to a point where the goose can no longer lay golden eggs.

"I know I've just dropped a bombshell in your lap and don't expect you to respond until you've had a chance to think it over a bit. Oh, there is something else. My colleagues in the other Houses know of our situation and my intent. None have expressed any reservations with your assumption of my role and becoming their peer. So, you see, my dear, the stage is set for your greatest performance. We can hardly wait to see it."

Sophie was in shock. When she first came to the Hanover House Doug and her net worth was around $1.6M. After their separation her half and its growth put her around $1M. This time tomorrow (or whenever the lawyers prepared the paperwork) she would be worth more than $5B!!! She knew exactly what she wanted to do with the money. She also knew what she wanted to do with her life.

"Thank you, Concierge. I'm not sure I can express what I'm feeling or think. I only hope I can meet your expectations. You're placing me in an extraordinary situation that calls for extraordinary performance. If you'll allow me, I'd like to put a schedule together to prepare me to succeed you. It's not meant to be presumptuous but merely to identify milestones I must hit before taking over remaining operations of the House. That way you can judge if it is ambitious enough to suit your purposes. If you don't mind, I'd like to digest what you just told me to give you a more structured response. Thank you. Thank you, again."

-------------------------------------------------"Doug. Doug. Are you there? It's Sophie. If you are, please pick up. I have extraordinary news. I plan to visit this weekend to tell you about it. I'll send an email to make sure this gets to you. Let me know if that's okay. If it is I'll take the redeye Friday night and see you Saturday morning. Maybe we could do a late breakfast."

Sophie received an email a few days later telling her he was out of town and wouldn't be back or able see her until the following weekend. Disappointed at not being able to share her news with him she resigned herself to wait the extra week.

-------------------------------------------------Sophie stepped out of the cab and looked around. Seeing Doug is the only time she used cabs since joining the Hanover House. She didn't want to start gossip and speculation by arriving in a limousine. It was a minor concession to make to keep the peace between Doug and his neighbors. Subtle changes made the neighborhood look slightly different. Landscaping and trees were more mature giving Doug's home (she no longer thought of it as her home) a more formal and more comfortable look at the same time. She knew he didn't have enough time to make it look this good and assumed he had it maintained by someone. Even if he did have the time he didn't have the skills or knowledge. His talents lay elsewhere. He is an attorney and after fifteen years in private practice he was hitting his stride. Established and having earned a solid reputation in his field he was becoming a force in the community. If she was to have her way she knew she would have to overcome all this. The more she reflected on her hopes the more she became disheartened. Her feelings for him and hopes for the rest of her life made it necessary she give it a try, there could be no holding back.

"Hi, Doug. Can I come in? Thanks. Oh, we're eating in? Great! You're making western omelets. Oh, you sly dog, you. You know it's my favorite. I have them several times a week." (Well, that certainly was the wrong thing to say; drawing attention to how far our lives have drifted apart.) They spent the next hour talking about nothing. Sophie had left her bag in the front hall. Depending upon how things went she was either staying for a few days or calling a cab.

The kitchen was a scene of domesticity. Sophie was clearing the dishes and wiping the table down as Doug cleaned the pans and plates, and loaded the dishwasher. Their conversation drifted and trailed off leaving an uncomfortable silence. After a pregnant silence Doug poured fresh cups of coffee and went into the family room. Following, they curled up in opposing couches and made distracted motions to delay the inevitable. "So, what's the big news?"

Knowing that Doug disliked the Concierge it would be difficult to share her news without mentioning him. Sophie had signed all the necessary paperwork the preceding week and was now worth the $5B the Concierge had told her about. She sincerely hoped it would not change her. She hoped it would change Doug. She explained her current and future circumstances but left her net worth out of it. She didn't want to get too specific unless and until Doug agreed to help manage it.

She explained the Hanover House's history, the Concierge's role in it and how that shaped her and her opportunity. He asked several legal questions to test her story and was satisfied her situation was as described. After congratulating her and wishing her well on her new responsibilities he hesitated to make further comments until the other shoe dropped. If the news was all she had to share she could have done that over the phone. She only visited him under unusual circumstances. While her promotion and status changes were profound they weren't unusual. In fact, they were predictable. So, why had she traveled halfway across the country to sit down with him?

"Doug, I see a place for both of us in this. The current Hanover House is essentially a wholly owned enterprise of the Concierge's creation. He has been using me the past few years as if I was his daughter or niece, his heir, if you will. In other words, it's a family owned business. When he becomes emeritus it will be just me. While I'm sure I can do it and over time do it as well as he the investment part of it is not where my interests or abilities lie. Quite frankly, I'm not qualified to manage a portfolio, especially one that so many people and traditions rely on. Here's my proposal, help me manage the portfolio and keep my investments sound. I've started the steps needed to put the Hanover House on a business-like footing but there's still a lot of work to be done. You are the ideal person to take up the reigns and work with me to take it to the next level. In perhaps overly simplistic terms, I would function as chairman and you as the CEO.

"Of course, I have an ulterior motive in getting you onboard. I want to re-establish our marriage and think this might be a way of doing that. What if it doesn't work out for us? I don't want to think about that but of course I have. Joining the Hanover House would require we both sign a partnership agreement spelling out governance issues with provisions for dissolution in the event either of us wishes to return to status quo ante. Being legally separated we can own and run the business as partners. If we get to the point where we dissolve the separation, and I want that with all my heart, we can own and run it as a sole proprietorship. At some point we may want to sell equity positions in it but that's looking very far down the road. I mention it as an example, one among many possibilities of where we could take the business. There's more than enough there to challenge your legal and management skills. What do you think?

"No, I haven't discussed this with the Concierge nor do I need to. I am joint owner with him and our partnership agreement specifically allows me to take the Hanover House in any direction I choose. This is my call. So, what do you think?"

"How many dollars are we talking here? What is the balance sheet's assets and what is the owner's equity?"

"For obvious reasons I'm reluctant to give up that information until we have a non-disclosure agreement in-place but let me just say that upon the Concierge's death I'll be one of the wealthiest women in America, in the world, even. In dollars, this is a huge enterprise. I do not overstate it. Let your imagination run wild and then double or triple it and you might be in the ballpark."

"What about your performance work? Would you continue as you have in the past? What about existing and past relationships? I'm assuming there are some. Why don't you bring me up-to-date on your sex life? I'll start by updating you on mine.

"Over the years I've had relationships with several women, everything from one-night stands to some a little longer but nothing more than a few months. (Of course, Sophie's and the Concierge's dossiers already made that plain but Doug didn't know that.) It's not that I haven't met women that I could easily have fallen in love with it's just that I'm not what I used to be. By that I mean I'm damaged goods. Psychologically, I'm so scarred from our relationship dissembling that it becomes an issue with every woman I meet. I'm fucked up and you made me this way. This is a problem that will haunt any relationship we have or have yet to forge.

"If that sounds ominous, it is. Sophie, if it wasn't for my having been totally and completely in love with you I could have put that part, our part of my life behind me. I want to move forward and will do anything, agree to anything that lets that happen. I'm living life now by going through the motions without any purpose. You used to be that purpose. You are what has been missing in my life. How do I get you back without all the baggage we've accumulated? I don't know if I can. If it were to happen I would have to rehabilitate myself. I'm not sure I have the strength to do that."

Halfway through Doug's explanation Sophie started avoiding looking at him and began weeping. The longer he went on the more uncontrollable her reaction became. By the time he finished she was curled up on the couch putting distance and her legs between them. She was just starting to feel his pain and recoiled from it. Doug got up from his couch and poured another cup of coffee but laced it this time with Irish whiskey to fortify himself for the rest of the conversation that was to come.

"Tell me about your life since joining Hanover House. Sure, I know we've talked about bits and pieces over the years but I'd like you to put it all together for me. In particular I'd like you to address your relationships."

Sophie knew he was drawing her onto a minefield. The only way she could hope to rebuild their marriage was to disclose more of her life, all of her life since joining the Hanover House. The only question was how fast. She gave a brief overview of her development at the Hanover House. Then she explained that she occasionally had sex as part of performances and that it was meaningless apart from giving her sexual release. Instead of masturbating she was able to achieve release through the help of another performer or patron.

Then she explained her relationship with Brian, how it flourished after her first month and lasted for almost a year. By that time Brian had achieved 'gold button' status making their relationship awkward for him in the Hanover House hierarchy. Similarly, as Sophie's development and status increased beyond Novice having a relationship with someone so highly placed became awkward for her. Potential conflicts of interest could arise that could be perceived as Sophie receiving preferential treatment at his hands. In response to a question from Doug, their relationship dissolved because of social pressures within the Hanover House community, not because their feelings for each other had diminished. And, yes, she still had warm feelings for Brian that could be rekindled should she choose now that her status had transcended his. Would she? No, she didn't think so. Why would she if Doug was back in her life as husband and lover?