Part 1, Chapter 4, Section 5

The annual meeting is held of the National Alliance of Railroads, an alliance of railroad presidents to “protect the welfare of the railroad industry” with each member having “pledged” and “committed” to “subordinate his own interests to those of the industry as a whole” (p 74 s 145). Up for vote is the Anti-dog-eat-dog Rule, which “they did not like” and hoped “would never be brought up.” Regarding the Anti-dog-eat-dog Rule,

The speeches preceding the vote “dealt only with the public welfare” and “no railroad was mentioned by name” (p 74 s 145). During the vote itself “every one of them had hoped that someone would save them from it” (p 75 s 145). Regardless, the Anti-dog-eat-dog Rule passes. After the meeting adjourns “nobody spoke to or looked at Dan Conway.” He remains sitting “alone among rows of empty seats” until hastened to leave by the charwoman. Meanwhile, as James Taggart leaves, he runs into Orren Boyle who waited in the lobby “just for the fun of it” and states, “I’ve delivered. It’s your turn now, Jimmie.”

James Taggart rushes to Dagny’s office — “the first time he had ever entered in such manner” — after not seeking Dagny since the San Sebastián Line was nationalized (p 75 s 145). She had been “contemptuously amused” by “being proved right so eloquently” (p 76 s 145). She felt that “in all reason and justice, there was but one conclusion he could draw.” Perhaps this is why Dagny leaps to her feet so suddenly that a glass ashtray crashes to the floor when James yells,

“You rotten bastards!” is her only response. Dagny is “shaking, open to him, without defense” until James smiles “– and suddenly the blinding anger vanished. She felt nothing. She studied that smile with a cold, impersonal curiosity” (p 76 s 145). James was “gloating” and “the event meant something to him much beyond the destruction of a competitor.” This was not James’ victory over the Phoenix-Durango, but over Dagny Taggart — “and she felt certain that he knew.” Dagny feels for an instant that what that what “made him smile” was an unexpected secret that was “crucially important” she understand. Yet this instant “flashed and vanished” and without saying another word she rushes out of the office, leaving James “disappointed and faintly worried” (p 76-77 s 145).