Chapter 262 Allies
"Due to the last cooperation, both parties have a certain understanding of each other. Personal guarantees are very weak here. Please tell the British government that I will provide as much help as possible to Prime Minister Mr. Salisbury." Morgan took out a cigar, put it in front of his nose and sniffed it, and said slowly.
This was not the first time that Morgan had taken over Britain's debt problem. In fact, during the first Boer War, Morgan financed the war through financial institutions. Initially, the amount was 15 million, and then he repeatedly increased the amount to nearly 200 million. Of course, this move also made him a lot of money and he became a guest of honor in many countries.
Morgan was already familiar with the Boer War, and he did it with ease. However, Morgan still put forward his own additional conditions, "I have a friend's company, which is currently in financial difficulties. If a part of the share of the Boer War can be produced through his company, it will be able to get out of the current predicament."
"I wonder what industry Mr. Morgan's friend is in!" Edward asked in confusion.
Morgan smiled and finally uttered a word clearly, "Dynamite!"
"This matter needs to be evaluated by London. I can only convey this opinion to London." Edward frowned slightly, indicating that this matter was beyond his scope of decision. It was related to the outcome of the war. It was not so simple to incorporate a foreign company into the military supply system.
"Please convey it to me!" Morgan was very calm and seemed to be very confident about the matter.
The news that Morgan was about to take over the issuance of British government bonds quickly spread in the financial industry. It was Morgan himself who released the news. He was not the taciturn old Rockefeller. He had a clear understanding of his career. The most important thing for a banker is to give confidence to others.
It was also a series of successes over the years that led many speculators to have an almost superstitious trust in Morgan, which allowed him to build his own financial empire and be successful in the financial industry. In Morgan's eyes, let alone competitors, even the sign of such a thing was best avoided.
Now Morgan needed the news of the British coming to his door to show that he was still the king of the financial industry. The name Morgan represented wealth and would not be affected by some minor setbacks.
First, there was the Panama Canal project, and then Morgan took over the British debt. These two things were the topic of conversation among citizens at the beginning of the new century. It seemed that the American century, which had been discussed by people for a long time, had really arrived this time.
"Frick told me that Carnegie is no longer enthusiastic about the steel company." Sheffield, who was preparing for the Panama Canal project at Oak Manor, was once again blocked at the door.
Sheffield was holding a cup of coffee and was about to drink it. He was stunned for a moment when he heard Rockefeller's words. He asked calmly, "Who is Frick?"
"Frick is the president of Carnegie Steel Company and has a good relationship with our family!" Rockefeller Jr. said, "Didn't we work together to prevent Morgan from entering the steel industry?"
"But I don't have much liquidity right now!" Sheffield spread his hands and said, "Carnegie's huge steel empire, how much is it worth? Who can give an accurate price? As you know, I'm working on the Panama Canal project."
"Do you think Morgan is very rich?" Rockefeller Jr. said calmly, "Do you really think all his money is his own? When he needs it, it seems that all the money in the United States belongs to him, but he himself does not have much assets."
"I really want to know, what does the Standard Oil boss mean by 'not a lot'? How much is it exactly?" Sheffield chuckled. The definition of assets in this era is actually very clear. Stocks are not actually considered one's wealth, and the same goes for invested fixed assets such as mines. Therefore, the wealth of many wealthy people is underestimated.
"I estimate that his assets are definitely less than 100 million!" Rockefeller Jr. gave his own answer, "However, as a banker and financier, Morgan can control assets far exceeding his actual assets. In other words, not all the money he spends is his. The Morgan Alliance and the Morgan Family are collectively referred to as the Morgan Alliance. In the Morgan Alliance, the Morgan Company is the axis for chain leadership of the board of directors, and it is interconnected with more than 10,000 major financial institutions below the big financial capital. This constitutes a huge and tightly organized Morgan system. The assets of the Morgan system are indeed amazing, but most of the companies invested by Morgan are not fully controlled, and they are not Morgan's personal investments. The shares are also held by Morgan Bank, not Morgan."
"That is to say, Morgan, with his personal wealth of less than 100 million, managed Morgan Bank, which was several times larger, and controlled the Morgan Alliance system, which was worth billions of dollars!" Sheffield stared at Rockefeller Jr. "Now I know why the antitrust law always targets your Rockefeller family and doesn't bother Morgan."
These two companies are equally famous, one is the United States and the other is the Soviet Union! Most of the Rockefeller family's money is their own, but the system is the same as Eastern European countries. Morgan is not only rich, but also has other supporters in the Morgan system. Obviously, the Five Eyes Alliance plus NATO have increased Morgan's power to an unparalleled level.
So once Morgan started to take action, it was often a big and surprising move, such as taking over government bonds and spending money like water.
Although the Rockefeller family did not have such a powerful system, their wealth was still greater than Morgan's, which established their position as the richest man in the United States. This also led to the promulgation of the Antitrust Act, which was aimed at the Rockefeller family from the beginning.
It was unknown how much money the Rockefeller family had cashed out from oil over the years. Sheffield could not help but sigh, "First of all, the United Company does not have enough funds. It will take some time to arrange it. The money that should be invested has been invested. We have to wait. I think there is still time for the steel industry. Can't you pretend to negotiate and try to hook Carnegie?"
"Opportunities don't come by waiting. If it weren't for the antitrust law, I would have taken action myself." Rockefeller Jr. said with a smile, "Why are you not in a hurry at all? If it really doesn't work, can Standard Oil lend to United?"
"Are you sure you don't want to swallow up the United Company? You big alligators, you'd better be on guard. Of course, maybe you want to revise the contract for the Texas oil field?" Sheffield said dryly, "Anyway, there's no rush. We can wait a little longer."
Sheffield is not asking whether or not to take a breath, but must take a breath, gather the current industries, and see if there are any omissions. Or choose an industry to cash out, but the oil field cannot be used for cashing out. The Texas oil field will be very important to the United States in a hundred years. It would be foolish to use this industry to cash out.
"John, you have to know that Morgan didn't spend his own money. You and I both spent our own money. If the premium of Carnegie Steel Company exceeds this range, what should we do? I think even if Rockefeller and Carnegie are not in conflict as rumored by the outside world, they can't withstand Morgan's real money bidding. Even if your father once let Carnegie go, how much can this friendship be discounted today? Can it be worth 10 million US dollars?" Sheffield drank the coffee bit by bit, pursed his lips and said, "In the end, this acquisition still depends on how much money can be taken out."
Sheffield thought it was not worthwhile to fight Morgan over the steel industry, but if Morgan did not let go, then this was the only way out.
The steel industry is not an industry that can be cut corners. For example, in the chemical industry, Sheffield can find Germans for help. But the level of the steel industry is similar all over the world, and there is no saying that it can beat others without introducing high-tech.
"Think about your allies. It's not impossible to use the power of the alliance." Rockefeller Jr. thought for a moment and said, "There are more than a hundred companies in the South that have received help from the United Company. Didn't your family establish prestige during the reconstruction of the South?"
"Speaking of this, it's really thanks to you Yankees' looting that the United Company would not have had such a position in the southern states. The loss of four million black workers is not a big deal. Many plantation owners were forced to flee by you, and their industries were swallowed up. But fortunately, we are a country with elections, so you didn't stay in the South for too long." Sheffield snorted and laughed, "Don't be angry, thanks to you for helping the United Company eliminate many southern competitors. I am sincerely grateful now."
"You're welcome. In fact, for many years, many farmers in the South did not want to transform. It's just that they didn't have such an opportunity! Isn't Carnegie's steel empire attractive enough? I believe that if you make the first appeal, many small and medium-sized enterprises in the South will definitely respond." Rockefeller Jr. waved his hand to indicate that he didn't care. "If in another ten or twenty years, the generation that experienced the Civil War has died, then the United Company's words will not be so effective."
"I'll try to buy you a year!" Rockefeller Jr. calculated the time and said, "For such a large-scale merger, a year of negotiation is normal. If it's longer, I can't help you."
Make good use of the power of the alliance? Sheffield certainly understood what Rockefeller said, but the South was full of small and medium-sized enterprises, and it was still unknown whether they could raise enough funds for mergers and acquisitions. You can't find a hundred millionaires and lend one million to each of them, right?
Unless Rockefeller Jr. and myself merged our own steel companies into Carnegie Steel Company, not a merger and acquisition, but an investment in shares, this would be possible.
(End of this chapter)
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