Chapter 79: Warm Invitation
But Rockefeller Jr. did not agree immediately, but said that he would make an assessment. Sheffield said that it was no problem and did not urge him at all.
"Are you sure? Are there other exploration teams or oil wells in Texas?" Rockefeller Jr. stared at several project managers, his strong attitude was obvious.
"For a place as big as Texas, someone must have explored it before, but we are sure that no oil has been discovered so far, and no oil company can escape our sight." Several project managers quickly exchanged opinions and gave affirmative responses. They knew that Rockefeller Jr. was assessing the risks in order to make a decision.
Hmm! Rockefeller Jr. did not comment. Standard Oil currently controlled more than 90% of the United States' market share, which was itself a manifestation of its strong power. He also thought it was impossible for any oil merchant in the country to conceal the news of oil from his family.
Trust in one's own company is a strong self-confidence. However, even so, Rockefeller Jr. did not act on impulse, but quickly sent a telegram to his father waiting for a reply. Standard Oil had long passed the time when it was blinded by petty profits, and he would always remain calm.
Sheffield did not urge, nor was he in a hurry. Just as the truth is often hidden in the fog and wrapped in facts, no matter how good the exploration team is, they cannot imagine whether there is oil under a piece of land, because it is unproven, not to mention that he added the position of the patent bill and the patent of the harvester.
Just like the pharmaceutical industry where the Rockefeller family has been heavily involved, Sheffield knows a basic fact: even in the 21st century, among the tens of thousands of diseases in the field of internal medicine, only one in ten thousand can be considered cured. He can only think of lobar pneumonia, and the rest of the diseases are incurable. The purpose of taking medicine is to control the spread, not to cure.
If the disease is really in the advanced stage, don't count on medicine. Just go to the operating table and try your luck.
In fact, even the common cold cannot be cured by humans. The difference between taking medicine and not taking medicine is that one is uncomfortable and the other is relatively less uncomfortable. Medicines can relieve the symptoms and buy time for the body to recover.
Even if this is the case in the pharmaceutical industry, people will still choose to take medicine if they are seriously ill. Just like now, Rockefeller Jr. will definitely evaluate this contract himself, but no matter how he evaluates it, it will not hurt Standard Oil, so he has no reason not to agree, because it makes money, and the capitalists' instinct to make money is as natural as the patient's fear of death.
Through the design of clauses, the VAM agreement can effectively protect the interests of investors. VAM agreements have been applied in foreign investment banks' investments in domestic enterprises. The VAM agreement is an agreement between the investor and the financing party on uncertain future situations when reaching a financing agreement. If the agreed conditions occur, the financing party can exercise a right; if the agreed conditions do not occur, the investor exercises a right. Therefore, the VAM agreement is actually a form of protection for both parties.
This is inherently risky, and Rockefeller Jr. is now using all channels and connections to assess this risk.
Old Rockefeller's remote control telegram also came back soon. "This kind of contract is very interesting. The terms in it are the first time I have seen them. If oil is discovered, more than 500% of the profits will be obtained. If no oil is discovered, both parties will share the risks? On the premise of discovering oil, Sheffield guarantees 500% of Standard Oil's profits, and can buy back all Standard Oil shares after ten years? We can do it on a larger scale!"
Old Rockefeller had already assessed the risks involved, but with the huge 500% profit, even he could not remain calm. Even he could not judge how much oil reserves there were in an unexploited area.
"In order to show its utmost sincerity in cooperation with the Sheffield Union Company, Standard Oil is willing to pay 10 million US dollars, hold 49% of the shares, and provide a written guarantee of support for the Patent Act and all the patents of the United International Harvester Company!" When Rockefeller Jr. appeared again, the contract was finalized.
The two sides compared the contract item by item, and Sheffield finally agreed. Once the favorable terms of this contract were triggered, it could bring Standard Oil a return of 50 million US dollars.
The return seemed huge, but Sheffield knew that this was not a problem that could be solved with $50 million. So even though some managers warned him that it was a bit disadvantageous to invest upfront and share the risk, he agreed.
"The initial investment is controllable, and we have received some compensation in other aspects, so we are not at a disadvantage." Sheffield explained to the group of managers who followed him, "Promoting the large-scale agricultural plan is the top priority at the moment."
Even if the contract expires in the future, it is not certain whether the Rockefeller family will be willing to give up, but at that time, the Rockefeller family will need to provide other assistance or give up interests in order to preserve their share.
"William, actually, I want your friendship more than finalizing the contract." Rockefeller Jr., who had led the negotiation of a big deal for the first time, was in a good mood and repeatedly assured that he would assist the Sheffield family in entering the industrial field.
"That being said, I actually think so too. I admit that I took a gamble this time, and I hope that the gamble is right. Texas is such a large area, there should be oil. The probability is not too small. And you have also provided help in other areas! But I still want to ask, when will the patent bill be formally proposed? It would be best if the Republicans proposed it, because as you know, our southern industry is not as good as that of the north, so it would be a bit strange to propose such a bill." Sheffield nodded and brought up what he should be most concerned about at the moment.
The United States is mainly driven by domestic demand, which is of course because the products are too inferior and the quality is close to that of the Soviet Union. However, it is also true that domestic competition is fierce, and the patent law that kills companies with insufficient capital should indeed be his biggest concern.
"Do you want the Republicans to make an appeal? That's not impossible!" Rockefeller Jr. pondered for a moment and nodded, "Leave it to me. I'm going to Chicago to visit my sister. How about this? You can go with me. You don't have any other plans, right? And Chicago is the center of steel."
"Eh? Okay!" Sheffield pondered for a moment. This time, without Anne by his side, he didn't have to worry too much, so he nodded and agreed. Chicago is the industrial center of the north and is very worthy of investigation, even if it is just for learning.
Can I ask for some recommendation votes? I'm already running naked, so just give me some comfort.
(End of this chapter)
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