Chapter 292 Sounds Like a Threat
The issue of the relationship between Carnegie and the Morgan or Rockefeller family has come to an end. In fact, this issue may be very important. The complicated relationship between these industry giants is difficult to sort out at the moment. They have helped each other, but if there is any hatred, they have also had hatred.
Relationships like that between United Corporation and DuPont Consortium are extremely rare, but it depends on the specific circumstances. The key is who knows what the steel tycoon is thinking now. Is he simply trying to use the steel company as a cake and watch a group of vicious dogs fight for it, or does he have other purposes?
From a historical perspective, Sheffield knew that Carnegie did eventually withdraw, but before leaving, he did take a heavy toll on Morgan. Nearly 500 million dollars in funds was not an easy task even for the Morgan Alliance, a powerful financial group.
"I don't know what Morgan Jr.'s psychological bottom line is. If he is determined to raise the price, it will be difficult for me to get away with it." Before arriving at the headquarters of Carnegie Steel Company, Sheffield was still analyzing the matter while sitting in the car.
"It's really difficult. It seems that it's difficult to deal with this matter simply." Rockefeller Jr. was also not very optimistic, but he still comforted him, "Isn't it like this when there are competitors? Otherwise, why do you and I pursue monopoly? Only with monopoly can we make money freely."
"But this is not easy, is it?" Sheffield asked calmly. He believed that Rockefeller Jr. understood what he meant. From the past few elections, it can be seen that voters have become increasingly unacceptable to the expansion of trusts. Candidates from both parties have been talking about the drawbacks of trusts. It's okay once, it's okay twice, but who can guarantee that it will always be okay?
The reason why William Bryan was opposed by many large companies was because he used opposing trusts as his campaign slogan. However, the person who really put it into action was the incoming Vice President Roosevelt. The economy had evolved to this point, and it actually had nothing to do with William Bryan and Roosevelt. There must be some politicians who would come out to do this.
Although Sheffield is familiar with history, he cannot judge what the bigwigs in the two parties are thinking today. Whether the trusts can be preserved, and what the final outcome of trusts and anti-trust will be, who knows?
"If one day the White House can no longer tolerate the trusts, don't worry, you are not an ally in vain. Even if we have to compete with the federal government, I will stand on the side of Standard Oil."
The car stopped in front of the Carnegie Steel Company headquarters building. Sheffield pushed the door open and made a promise to Rockefeller Jr., which stunned Rockefeller Jr. who was following closely behind him. He comforted him, "It's not that serious. I noticed that you seem to be much more pessimistic this year than before."
It's more serious than what I said! Sheffield remained calm, nodded to the manager who greeted him, and walked shoulder to shoulder with Rockefeller Jr. into the headquarters of Carnegie Steel Company. There is no good wine without good wine, and there is no good banquet without good banquet. In Sheffield's eyes, this dinner at Carnegie has been equated with the Hongmen Banquet. As for whether it is really the Hongmen Banquet, we will have to observe it.
Maybe it was just a routine tactic, to give a warning to Morgan Jr. who had just arrived by entertaining the two of them. Similarly, to place Morgan Jr.'s team in the hotel where the two of them were staying was also a warning.
"Oil tycoon? Automobile tycoon? Welcome to the leaders of the two industries. What do you think of Pittsburgh? The location here is very good, with river transportation and railways, but the air is a little worse, and it can't be compared with the idyllic scenery in the south!" Carnegie glanced at Sheffield when he said this. "Compared to the Rockefeller family, I have never had contact with the United Company. I am a new friend. Let's talk while we eat."
This dinner was not sumptuous, but it was not a problem for Sheffield. In his previous life, he preferred vegetarian food, and in this life he also ate a lot of Texas steaks. He just felt that the portion was a little small.
"It's great to be young. William seems to have a good appetite?" Carnegie saw that Sheffield was not at all nervous and said with a smile, "If you have any other requests, you can make them. I can't afford a meal yet."
"Mr. Andrew, you don't have to worry about William's food. He can eat anything, even grass." Rockefeller Jr. was not surprised at all. He shocked the steel tycoon as soon as he opened his mouth.
"That's called leek!" Sheffield raised his head and wiped his mouth, then said, "Don't be offended, Mr. Andrew. John doesn't know much about this, so I'm sorry. He said it's a vegetable that looks like grass and is an oriental food. If it's cooked properly, it tastes good. Eating more vegetarian food is good for your health."
Didn't Rockefeller see him eating leek buns? Don't be embarrassed if you are not familiar with them. In this era, some vegetables in the United States are more expensive than meat. As for leeks, which are foreign species, they are just grass in the eyes of ordinary citizens. When Rockefeller saw Sheffield eating grass, he looked like he saw God coming. Sheffield still remembers that expression clearly today.
Rockefeller Jr.'s interference helped to ease the atmosphere, allowing the two parties, who didn't know how to start the conversation, to talk freely in a relaxed atmosphere. Sheffield understood that under the premise of competition between the two companies, Carnegie would definitely have certain advantages, but this did not mean that the discussion was completely off the table. Any transaction must have a psychological price. A premium is acceptable, but if the premium is too high, the transaction will not be successful.
"I personally think that Mr. Carnegie should not completely leave the steel industry. It would be a very hasty move to withdraw completely, which would cause great shock in the industry. So William and I are thinking of jointly assuming the majority of Carnegie Steel's shares through mergers and acquisitions, rather than buying out the entire company. This way, the new steel giant will also have your great influence, Mr. Carnegie, instead of establishing a huge cartel alliance like Morgan did." Rockefeller Jr. said slowly, "As far as I know, Mr. Carnegie has hated the cartel model for a long time."
"To be honest, the United Company is not very eager for the steel industry at present. This is not to say that the steel industry is not important. It is very important, especially for a country. But we really can't spare the energy to manage steel. Among the related industries, automobiles are related to steel, and of course engineering is also related." Sheffield waited until Rockefeller Jr. finished speaking, and then told the truth, "The reason why I agreed to complete this with John is to prevent the financial industry from infiltrating the real industry. It is not impossible to profit from the economic panic, but Morgan's actions are too big. He swallowed up the railway industry during the last economic crisis, and this time he got involved in steel. He started rounds of acquisitions like this, and sooner or later other companies will be unable to resist."
"The most annoying thing is that physical companies like us are more or less threatened by antitrust laws, but he has avoided antitrust laws through indirect control. This is so unfair. It is like we in the industry are still subject to legal constraints, but bankers can continue to conquer cities and control us, but they open a channel for another group of people."
Carnegie did not comment on Sheffield's words. Although he also hated the behavior of those bankers who took advantage of others, this was not a factor in his decision. He slowly said, "I can only accept a 1.5 times premium. After all, Carnegie Steel Company is the result of my life's hard work."
"For Mr. Carnegie's shares, if it is a full acquisition, it would be around 500 million." Sheffield said, "To be honest, this alone is enough to stump almost all the rich people. There is definitely no such person in Chicago, and there are only two in New York. Now the heirs of the two people in New York are now in Pittsburgh. From this point of view, Mr. Carnegie has successfully caused an unimaginable storm. Now the giants of various industries are watching the final result of this matter. I wonder if Mr. Carnegie is very fulfilled now?"
Carnegie cut the steak bit by bit and chewed the meat gently. After a while, he said, "I do have some sense of accomplishment. Especially when I think of Rockefeller and Morgan, two people who are looked up to by all companies, spending time on my steel company, I feel extremely satisfied."
"If United and Standard Oil jointly invest $300 million to buy your shares alone, I wonder if Mr. Carnegie would be able to accept that? Or Mr. Carnegie can keep a portion of the shares, and we can buy a 51% majority of Carnegie Steel's shares. In this way, Mr. Carnegie can still leave some security for his family." Rockefeller Jr. proposed his own plan. "To be honest, neither of us wants Carnegie Steel to become history. Even after the merger is completed, the name of Carnegie Steel can be retained and still be named after you."
"What's the point of keeping my name? I only have a three-year-old daughter!" Carnegie said calmly.
"But she will grow up too. In fact, I think it is more useful to leave some shares with appropriate proportions rather than leaving money. To be honest, I even visited Vanderbilt II's estate for this steel merger." Sheffield looked directly into Carnegie's eyes. "He also regretted his extravagant life for many years. The funds for this merger also came from Vanderbilt II."
Carnegie was silent for a moment, as if he was thinking about this question. Sheffield immediately continued, "John and I can guarantee that your daughter, and even your brother's relatives, will be taken care of meticulously throughout their lives. As long as the United Company exists, she will not be bullied."
"It sounds a bit like a threat!?" Carnegie looked at Sheffield with some amusement and spoke indifferently.
(End of this chapter)
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