Chapter 63 Negotiations
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As mentioned earlier, Global Oil Company is a promising high-tech company. With the latest technology, low-priced vegetable oil will enter the kitchen of every American home, and more importantly, with its cost advantage, it can also be exported to European countries to replace the current expensive butter. We expect that by 1910, the company will occupy 10% of the US edible oil market, selling 50 million pounds of shortening, and by 1915, the market share will further increase to 20%, selling more than 100 million pounds of shortening…”
Yang Rui put a prospectus in front of him, and behind the prospectus was Citibank's manager Lord Sier. Seeing that Yang Rui had read the prospectus completely, Lord Sier cleared his throat and said, "Mister Yang, this is the prospectus written by our most professional securities engineer. The last time the mining company in Mississippi was recommended to be listed, and the stocks were sold very well. I believe that the listing of Global Oil Company can be successful..."
Lordsier fully understood the importance of the Chinese in front of him. Mr. Vanderlip, the vice president of the bank, personally assigned the task, but he did not understand that the reason why Yang Rui was valued by Vice President Vanderlip was because Yang Rui had more than 10 million US dollars in deposits at Citi. These were actually profits from the last time the treasury bond speculation was made. Citi was also a bank controlled by the Rockefeller family. It already had a branch in China, so the money was deposited in this bank. Except for the funds needed by the railway, Yang Rui was not in a hurry to exchange the money for silver. After all, the silver price has been falling. Maybe. By the time the steel project started construction, there would be some surplus of this money.
"Lord...Mr. Lordssell, right?" His name was a little difficult to remember. Yang Rui thought for a while before he said it, "I actually care more about when the stock will be listed? Also, how long will it take for us to issue four million shares to complete the sale?"
"Mist Young, if everything is normal, the stock will be listed in three months, because there are many stocks listed recently, and the market has been very hot. I believe that with the company's patents and the price of vegetable oil, it will be sought after by investors as soon as it is listed, and four million common stocks will be sold soon.Mist Young, from your point of view, maybe it will be better to wait for the company's products to be sold before listing, but this should be about a year later..."
"No, I will go public this year." Yang Rui said confidently. When the US stock market crashes next year, the ghost will still want his own stock. "Although the company has received two million US dollars now, the company's production and sales require a lot of funds. I can't wait for next year. The stock should be listed this year so that it will not delay the sales plan of next year's products..."
Yang Rui is a top customer of Citi and he is unwilling to go public this year. So what the bank needs to do is do as the customer wants. Mr. Lordsier immediately recorded Yang Rui’s request and then asked Yang Rui to sign several powers of attorney. Only after everything was done, he left cautiously and politely.
"Why must it be listed this year?" Yu Zixun didn't understand the joints inside. He asked after the bank manager left.
"Because the stock market is very hot now, so hot that those who sweep the streets buy stocks. So we have to go public immediately, and then..." Yang Rui smiled, "and then when the stock market collapses, we will buy the stocks back, so that we will make a waste of money. When the stock market improves in a few years, we will sell it and make a lot of money."
"Isn't this just speculation? Will Americans let us do this?" Yu Zixun said strangely, feeling that this money is too easy to make.
"Of course, as long as we only make a few million toss, or as long as we don't attract attention, we don't. Besides, we have physical operations, which is definitely not a fraud." The US Securities Law will not be issued in 1933. This is actually the world's first securities law. Before that, there were no rules in the world's securities markets. Whether stocks are good or not is the key to whether the underwriters are promoting it. Thinking about the loopholes in the securities market, Yang Rui said again: "In fact, in addition to raising money, it is more about raising the price of cotton seeds."
"Raise the price of cotton seeds? Didn't you give a very high price at Longworth's banquet yesterday? After bidding, they have regarded us as fools. Isn't that enough?" Yang Rui and Longworth had a very pleasant conversation at the banquet the day before yesterday. After explaining that the patent could be authorized, Longworth fully agreed with Yang Rui's cooperation method, that is, the purchase of cotton seeds and oils was taken care of by the Longworth family. He became a supplier rather than a partner of Global Oil Products. More importantly, Yang Rui gave a price that was completely higher than the cotton seed oil oil on the market: 36 cents per gallon, or 5.4 cents per pound, which was completely higher than the current market price of twenty-eight cents. After Yang Rui offered this price, Longworth's eyes were straight, and the scalp in the middle of the Mediterranean was also shining. Alice did not understand the market conditions and was very happy to see that the two sides had a harmonious and happy conversation. It was a happy banquet.
Yang Rui shook his head when he remembered the scene of the banquet that day, and said with a smile: "This price is not enough, even if we use leaching to produce oil..."
"What! It turns out, we... do we really need to use this method to squeeze oil? Can't we save costs in other aspects? Didn't the agricultural reclamation company have a new variety of four yellow? The oil yield rate can reach 23%?" Yu Zixun knew what Yang Rui said about "leaching" oil pressing. Using benzene compounds as solvents can completely dissolve the oil in soybeans. According to calculations, this oil yield method can increase the oil yield by four points compared to pressing oil, that is, from 16% to 20%. This is the limit of soybean oil yield rate. However, according to current technology, it may not be completely safe.
"It's still early for four yellow particles. New varieties do not need new products. They can be produced after the process is changed. This variety can take at least three years to popularize and promote. Besides, laboratory technology has been improved a lot, and the problem of minimum solvent residue has been mostly solved, which is not a big deal. The oil yield rate has increased to 20%. Then, according to the price of 6.75 cents per pound of pressed oil, it is enough to leaching oil for only 5.4 cents. Five-four, five-four, which requires the US cottonseed oil to rise to 36 cents a gallon. It's not difficult, it's not difficult and difficult. It depends on how to operate it." Yang Rui kept silently reciting.
This is the price he offered to the Longworth family thirty-six cents. Once this price is exceeded, soybeans from Northeast China can be continuously shipped to the United States. Patent authorization can increase prices, and stocks can be listed. Those butter manufacturers will definitely rack their brains to increase the price of cottonseed oil, which is actually what Yang Rui expected. The original cost of hydrogenated oil was about fourteen cents, but now using leaching oil. The cost can be reduced to less than twelve cents, and even if the early marketing costs are included, it will not exceed fifteen cents. Fifteen cents are the price is already very low.
Yang Rui turned these data around in his mind, and saw that Yu Zixun was still confused about the benzene solvent, and said, "Don't forget, compared with opium, what does this solvent count! Our current identity is merchants. The most basic principle of merchants is to just focus on profits and not morality, and not make money, everything is fake."
Yu Zixun shook his head when he heard this. What he was depressed now was not the problem of benzene solvents, but the problem of the chemical industry. He used to think that chemistry could create so many things like magic, which was really the basis for benefiting the country and the people. But now, hydrogenated oil, benzene solvents, mercury pollution in chlor-alkali factories, etc., all of this made him extremely disappointed with the chemical industry. He said: "It turns out that we have produced so many of these things now. What should we do in the future?"
Pollution and food safety will only appear in later generations. Unexpectedly, Yu Zixun saw the harm of industrialization now. Yang Rui said dejectedly: "This is what Western civilization calls 'progress'. Have you read the theory of evolution written by Mei Shu? He said that good is 'progress' while evil is 'progress'. While technology is 'progress', problems caused by technology are also constantly emerging. In the end, technology solves all problems, or the problems caused by technology solve all human beings. This is only God knows. People nowadays only care about the present and ignore the future. As long as they can live well now, who will care about their descendants? For us, since others are constantly 'progress', we must also 'progress' with them, otherwise we will fall behind and be bullied. What will happen in the future? Let's talk about it later. We just need to die later than others."
"Better than others to die later?" Yu Zixun laughed, "It turns out, how can this be the way to die later?"
"It is to wait until China becomes stronger and transfer all the high-pollution things to other countries, pollute their environment and poison their people, and then they die first, and we die later." Yang Rui also laughed as he said. "Don't think about things that have been so long. What we have to do is to make money now, and to make revolution."
Time passed quickly. After receiving the Harriman negotiation invitation on March 10, Yang Rui ordered Chen Guangshou to prepare a train ticket to San Francisco. After he was about to talk with Harriman, he left New York. All the matter here will be handed over to Mu Xiangyue, Chen Wanyun and others. Alice is just a signboard, and she still has to do professional things. However, after he bought the ticket, an unexpected news came from Alice. In view of her recognition of Yang Rui's character and sympathy for the Chinese people, President Roosevelt will investigate the actual amount of the United States in the year of Gengzi in advance to determine the refund amount. In fact, this matter began in May last year, but because of the boycott of the US goods movement, it was pushed back indefinitely.
"Can you tell the matter more in detail?" Yang Rui didn't fully understand the refund of Gengzi, and suddenly brought up this matter, he was a little confused.
"Haha, you don't know anything." Alice laughed. She thought Yang Rui was omnipotent. "In the Boxer Indemnity, the US $24 million in compensation is excess."
"Well, I know that the compensation is calculated based on the Chinese head, with one or two taels per person totaling 400 million taels." Yang Rui said: "What's going on now? Will the US government return this money to the Chinese government for the expenses of students studying in the United States?"
"Oh! Yang, how do you know? Could it be that you know witchcraft?" Congregational missionaries had just met Roosevelt on March 5 and suggested that the extra compensation for the Boxer Indemnity be used for Chinese students studying in the United States, opening and subsidizing Chinese schools. In addition, Yang Rui told him that the average life expectancy of China is only 25 years old, which made Roosevelt determined to investigate the actual losses of the United States in advance and submit the Congress to approve this refund plan. This was a secret matter, but Yang Rui could not have guessed that it was used for running schools when he said the Boxer Refund.
"Your father asked you to notify me of the refund. It's impossible to buy me arms with the money." Yang Rui smiled and said, "Will he agree with other things besides studying abroad and running schools?"
It is true to think from another perspective. Alice pressed this and said: "My father said in private that after judging the actual losses of the United States, the excess will be returned to China for school management. Among the funds spent by the United States, military expenditure is the largest part. He said you can discuss this matter with General Gerbin."
"That's all?" Alice's words were unclear and very obscure. Yang Rui didn't understand what this meant. Discussing with General Corbyn what military expenditure meant?
"Yes, that's all." Alice was just a message, knowing no more than Yang Rui. "By the way, he also said that if you want to run a school, then the Chinese education association can benefit from it, but how much it can benefit depends on the negotiations between the Education Association and the Qing government and the US ambassador to the Qing Dynasty. However, he believes that according to the scale of the Chinese Education Association, it should be reasonable to get at least half of the refund every year."
"Oh, this is good news." Yang Rui smiled, "Is anyone in China following this matter now?"
"Something is Liang, the Qing ambassador to the United States. Do you know him?" Alice said.
"I don't know." Yang Rui shook his head and asked Yu Zixun next to him, "What is the background of this person?"
"The ambassador to the United States is Liang Cheng, a native of Guangdong, and he is a young child studying abroad." Yu Zixun said.
"A young boy studying in the United States, haha. Isn't that just Yung Wing's student? It's really interesting." Yang Rui laughed. He sent a telegram to Yung Wing of Hartford that afternoon and asked him to go to New York to have a chat. He was worried that the old man would be unable to move, so he asked Chen Guangshou to escort the two of them.
While waiting for Yung Wing, the second negotiation with Harriman began. There is no doubt that Mr. Harriman, who was dismantled after being dismantled, needed a Global Railway Network plan to offset the doubts of shareholders and the outside world. In order to prevent the same thing from happening next time, he sent his two most promising sons to Yale University, hoping that they would join the legendary Skeleton and Bones Society to enhance the family's influence in politics. His decision was undoubtedly correct, and his two sons would become members of the Skeleton and Bones Society in the future, allowing the glory of the Harriman family to continue.
"Dear Mister Yang, we have considered your plan to rent the Antong Chang Railway. What puzzles us the most is that the railway is only planned to be built to Meihekou. The 150-kilometer journey from Changchun has not been approved by the Qing government. In other words, the Antong Chang Railway you mentioned is not complete." During this negotiation, Yang Rui finally met Harriman. Although the opponent he negotiated with was not Harriman, the appearance of Harriman can be considered to be half successful.
"Yes, Mr. Garfield, what you said is completely correct. More than 100 kilometers here have not been approved by the government at all, but your global railway network has not reached an agreement with Russia." Yang Rui expanded the problem, making his shortcomings ignored. "We had a complete relationship with the Qing government to ensure that the approval will be passed. What we are most worried about now is the attitude of Russia and Japan. Once the railway from Meihekou to Changchun is built, the Japanese will definitely protest; and for the Russians, although they are happy to have such a railway that has caused the Japanese to suffer a lot, what if they also want to build this railway? The ultimate problem now is a political issue. It doesn't take too long to build that 150-kilometer railway, maybe half a year is enough."
"Half a year?" Garfield was a little surprised. "Are you sure?"
"Yes, it's totally certain," Yang Rui took out a plan and said: "The route exploration has been completed long ago. Now we are building a highway from Meihekou to Changchun. This is actually a railway subgrade. Once the railway plan is passed, all we need is to lay sleepers and railways on it. If we don't use American pine wood and use local wood, the railway can be opened within half a year."
"Oh. But this requires us to help you solve political problems, which is a very energy-consuming thing for us." Seeing that there was no problem on the railway, Garfield focused his firepower on political issues.
Yang Rui retorted: "American Railway Company wants to purchase railways in the Northeast Balkans, the Eastern Balkans, which itself has to solve a series of political problems. Mr. Garfield, now the Japanese have completely rejected your intention to acquire the South Manchurian Railway. To realize Mr. Harriman's Global Railway Plan, the Antong-Chang Railway is the only choice. Moreover, even if the Japanese government is willing to sell the South Manchurian Railway to you, the Japanese have placed the sea outlet in Dalian. This is hundreds of kilometers more than taking the Antong-Chang Railway. Do you think purchasing the South Manchurian Railway is in line with the business rules? And, to abandon railways within the sphere of influence of the United States and choose the Japanese sphere of influence, is this a choice a businessman should make?"
Yang Rui was slained by his weakness. Garfield felt that he was as helpless as the last time. He had no choice but to use freight volume to fight back. "But if Antongmei Railway does not join our Global Railway Plan, it will be completely unable to build to Changchun. If it cannot build Changchun, its value will not be reflected. Mister Yang, I am skeptical whether its annual freight income can reach 300,000 US dollars, although its construction cost is so high. It costs more than 18 million US dollars."
"It is true. But this railway does not serve north-south freight, it serves more for Tonghua coal mines. As long as the coal mine makes money, I don't mind how much freight income it has every year." Faced with his doubts, Yang Rui had to look like a dead pig who was not afraid of boiling water. He didn't care about the operating income of the railway. "Mr. Garfield, we should actually be a mining company rather than a railway company. If we can export two million tons of coal every year, we will have nearly eight million US dollars in income. Compared with this income, what is the income of the railway company?"
"But we can convince the State Council to stop some behavior of the Japanese. According to the news, they are constantly causing trouble for Tonghua Railway Company. Mister Young, if you don't sell the railway to us, it will eventually be swallowed up by the Japanese. Then you may not be able to recover the previous cost." Garfield smiled, maybe he had this other source of information.
"Japanese, haha, what can they do?" Yang Rui felt upset when he heard him talking about Japan, but his face was silent. "They were protesting that our railway track system uses Russian wide rails, but China did not stipulate that the railway track system must be built into standard regulations, and their protests were completely invalid." Since Fengtian and the railways inside and outside the Guan Dynasty could not be built, Yang Rui simply ordered the railway track to be changed to Russian wide rails. Although Japan protested, there was no excuse at all. The Anfeng Railway is still a narrow-gauge railway, and the South Manchuria Railway is a Russian wide rail. Although the Japanese have planned to change both to standard regulations, this is just a plan. For example, the Anfeng Railway's rail expansion plan cannot be clearly stated to outsiders.
Negotiations and mutual attacks and refutations were carried out until the end of the negotiations, no more consensus was reached. Garfield required that the railway concession period be more than fifty years, and the rent was determined at one time, and then paid every ten years. Yang Rui was only willing to rent every ten years, and the rent for every ten years was agreed the year before. At the end of the day, Harriman, after listening to Garfield's summary, invited Yang Rui into his office and sat for a while.
"Mist Yang, you are much younger than I thought." Harriman was in his fifties, short and sloppy beard, but he was very energetic, especially his eyes were very bright after the glass lenses. When Yang Rui looked at him, he suddenly remembered a cartoon on the New York Times, where a spider weaving a new web hard on the worn spider web. This was a fierce character, Yang Rui warned himself.
"I'm very happy to see you, Mr. Harriman." Yang Rui smiled and shook hands with him.
"Dine told me that the dispute between you actually lies in the length of railway lease, right?" Spiderman said calmly, pretending to be a bystander. He fully understood the background of the Qing people in front of him, if it weren't for his relationship with the Rockefeller family and President Roosevelt, he wouldn't have met Yang Rui at all. He would only cause some people to cause him a lot of trouble. Even his oil company that was going to go public could allow Morgan to make some private comments, so that it would not be able to successfully go public. It's really damn Roosevelt! He cursed in his heart.
Chapter completed!