Chapter 63: Negotiations

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As mentioned earlier, Global Oil is a promising high-tech company, and with the latest technology, low-cost vegetable oil will enter the kitchen of every American household, and more importantly, it can also be exported to European countries to replace the current expensive butter with its cost advantage. We expect that by 191o the company will have a 10 percent share of the U.S. edible oil market and sell 50 million pounds of shortening, and by 1915 it will have a further market share of 20 percent and more than 100 million pounds of shortening sold......"

In front of Yang Rui was a prospectus, and behind the prospectus was Lodsier, the manager of Citibank. Seeing that Yang Rui had completely read the prospectus, Lodesir cleared his throat and said: "Mister Yang, this is the prospectus written by our most professional securities analyst, the last time the mining company in Mississippi was recommended by him to go public, the stock sold very well, I believe that the listing of Global Oil Company can also be successful......

Lodhill fully understands the importance of the Chinese in front of him, and the bank's vice president, Mr. Van der Lip, personally explained this task, but he does not understand that the reason why Yang Rui is valued by Vice President Van der Lipp is because Yang Rui has 10 million US dollars in deposits in Citi - these are actually the profits of the last speculation in government bonds, Citi is also a bank controlled by the Rockefeller family, which already has a branch in China, so the money is stored in this bank. In addition to the funds needed by the railway, Yang Rui was not in a hurry to exchange the money for silver, after all, the price of silver has been falling, maybe. By the time the steel project started, there would still be some surplus of the money.

"Lord ...... Mr. Lodsier: Right? His name was a little difficult to remember, Yang Rui thought for a while before he said, "I actually care more about when the stock can be listed?" Also, how long does it take for our 4 million shares to be sold? ā€

"Mister Young, if it is normal, the stock will be listed in three months, because there are a lot of stocks listed recently, and the market has been hot. It is believed 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 the sale of four million ordinary shares will be completed soon. From your point of view, it may be better to wait for the company's products to be sold before going on the market, but that should be a year or so later......"

"No, it's going to be on the market this year." Yang Rui said firmly. When the U.S. stock market crashes next year, the ghost will still ask for its own stocks. "Although the company has now received two million US dollars, but the company's production and sales need a lot of money, I can't wait for next year, the stock should be listed this year, so as not to delay the sales plan of next year's products......"

Mr. Yang, a top Citi customer, was reluctant to go public this year. Then what the bank has to do is to do what the customer wants, Mr. Lodhill immediately recorded Yang Rui's request, and then asked Yang Rui to sign several power of attorneys, and only after he finished doing it, he left cautiously and politely.

"Why do you have to go public this year?" Yu Zixun didn't understand the joints inside. Asked after the bank manager left.

"Because the stock market is very hot now, so hot that everyone who sweeps the street buys stocks. So we have to go public immediately, and then ......," Yang Rui said with a smile, "and then when the stock market crashes, we will buy the stock back, so that we will make the difference in vain, and when the stock market improves in a few years, we will sell it again, and we can make a lot of money." ā€

"Isn't this speculation? Will the Americans let us do this? Yu Zixun said, I just feel that this money is too easy to make.

"Of course, as long as we're just a few million toss, or as long as we don't attract attention, we won't, and besides, we have a physical business, and it's definitely not a fraud." The U.S. securities law was not introduced until 1933, which was actually the world's first securities law, and before that, there were no rules in the world's securities markets. Whether the stock is good or not to sell, the key is whether the underwriter pushes it well or not. Thinking about the loopholes in the securities market, Yang Rui said again: "In fact, in addition to making money, the listing is more to raise the price of cottonseed." ā€

"Raising the price of cottonseed? Didn't you offer a very high price at the banquet at Longworth yesterday, and after the bid they all thought of us as fools, wasn't that enough? Yang Rui and Longworth had a very pleasant conversation at the banquet the day before yesterday, and after explaining that the patent could be licensed, Longworth fully agreed with Yang Rui's cooperation method, that is, the purchase of cottonseed and oil extraction were responsible for the Longworth family, and he became a supplier of Global Oil Company instead of a partner, and more importantly, Yang Rui gave a price that was completely higher than the cottonseed oil on the market: 36 cents per gallon, or 5.4 cents a pound, which is completely higher than the current market price of 28 cents. After Yang Rui offered this price, Longworth's eyes were straight, and his scalp in the middle of the Mediterranean Sea was shining, and Alice was very happy to see that the two sides were talking very harmoniously because she didn't know the market, it was really 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 the method of leaching to produce oil......"

"What! It turned out that we... Are we really going to squeeze oil this way? Isn't it possible to save costs in other ways? Didn't the agricultural reclamation company formulate a new variety of four-grain yellow? Isn't that oil yield up to 23 percent? Yu Zixun knows what Yang Rui said about "leaching" oil extraction, using benzene compounds as solvents, can completely dissolve the oil in soybeans, according to calculations, this way of oil production can increase the oil yield of four points than pressing oil, that is, from 16 percent to 20 percent, which is already the limit of soybean oil yield, but, according to the current technology, it may not be completely safe.

"Four grains of yellow is still early, new varieties do not need new products, the process can be produced as soon as the process is changed, and this variety will take at least three years to popularize and promote. Besides, in fact, the technology of the real yĆ n chamber has been improved a lot, and the problem of least solvent residue has been solved for the most part. If the oil yield is increased to 20 percent, then at the price of 6.75 cents per pound of oil extraction, only 5.4 cents per pound of oil extraction will be enough. Five-four, five-four, that's going to make U.S. cottonseed oil rise to 36 cents a gallon. It's not difficult, it's not difficult. It depends on how it works. Yang Rui has been silently reciting these numbers, and the price he offered to the Longworth family is thirty-six cents, and once this price is passed, then soybeans from the Northeast can be shipped to the United States in a steady stream. Patent licensing can raise prices, and stock listings can also raise prices – those butter producers will definitely rack their brains to make cottonseed oil rise, which is exactly what Yang Rui expects. The original cost of hydrogenated oil was about fourteen cents, and now leaching is used. Then the cost can be reduced to less than twelve cents, and even if you count the upfront marketing expenses, it will not be more than fifteen cents. Fifteen cents, the price is already low.

Yang Rui turned these numbers around in his mind, and saw that Yu Zixun was still entangled in the matter of benzene solvent, and said, "Don't forget it, compared to opium." What is this solvent counting! We are now a businessman, and the most basic principle of a businessman is to only make profits, not to make money, and everything is fake. ā€

Yu Zixun still shook his head when he heard this, what he was frustrating now was not the problem of benzene solvent, but the problem of the chemical industry. Before, he thought that chemistry could conjure up so many things like magic, which was really the foundation for the benefit of the country and the people, but now, hydrogenated oil, benzene solvents, mercury pollution from chlor-alkali factories, etc., etc., this qiē made him extremely disappointed in the chemical industry. He said, "Well, we've made so many of these things now." What will happen to future generations? ā€

Pollution and food safety will only appear in later generations, and Yu Zixun can't imagine that he will now see the danger of industrialization, Yang Rui said dejectedly: "This is the so-called 'progress' of Western civilization." Have you read Uncle Mei's theory of evolution, he said that while good is 'progressing', in fact, evil is also 'progressing'. At the same time that science and technology are 'progressing', problems caused by science and technology are also constantly emerging, and in the end, whether technology solves all problems, or whether the problems caused by technology solve all human beings, only God knows. Nowadays, people only care about the present and ignore the future, as long as they can live well now, who cares about their children and grandchildren. For us, since others are already constantly 'improving', then we must also follow their 'progress', otherwise we will fall behind, we will be bullied, what will happen in the future, then let's talk about it later. We just have to die after others. ā€

"Death after others?" Yu Zixun laughed, "Actually, how can this be a post-death method?" ā€

"It's just to wait for China to become strong, transfer all those highly polluting things to other countries, pollute their environment, poison their people, and then they die first, and we die later." Yang Rui laughed as he spoke. "Don't think about things for so long, what we want to do is now, to make money, to revolutionize."

Time passed quickly, after receiving Harriman's invitation to negotiate on March 1o, Yang Rui instructed Chen Guangshou to prepare a train ticket to San Francisco, he was ready to talk to Harriman after leaving, and then left New York, everything here will be handed over to Mu Xiangyue, Chen Wanyun and others to be responsible, Alice is just a signboard, professional things still have to be done by their own people, but after he bought the ticket, an unexpected news came from Alice - in view of Yang Rui's character recognition and sympathy for the Chinese, President Roosevelt will take an early inventory of the actual amount of losses in the United States in order to determine the amount of the refund. In fact, this matter began in May last year, but it was postponed indefinitely because of the boycott of American goods.

"Can you elaborate on this?" Yang Rui didn't fully understand Gengzi's refund, and he was a little dazed when he suddenly brought up this matter.

"Hehe, you also don't know something." Alice laughed, she thought that Yang Rui was omnipotent, "Among the Gengzi indemnity, the United States' indemnity of 24 million U.S. dollars is the amount. ā€

"Well, I know that the compensation is calculated according to the head of the Chinese, and each person has a total of 400 million taels of one or two." Yang Rui said: "What's going on now? Does the U.S. government want to refund the money to the Chinese government to pay for students to study in the U.S.? ā€

"Oh! Yang, how do you know? Could it be that you know witchcraft? The Congregational missionaries had just met Roosevelt on March 5, and the overpayment of Gengzi's indemnity was used for expenses such as Chinese students studying in the United States, opening and subsidizing Chinese schools, and Yang Rui told him that the average life expectancy of Chinese was only 25 years old, so Roosevelt decided to investigate the actual losses of the United States in advance and submit it to Congress for approval of the refund plan. This was a secret matter, but I didn't expect Yang Rui to guess that it was used to run a school as soon as he said that Gengzi would be refunded.

"Your father asked you to inform me about the refund. You can't just give me the money to buy arms. Yang Rui smiled: "In addition to studying abroad and running schools, will he agree to the rest?" ā€

It's true to think about it the other way. Alice pressed this head and said, "My father said privately that after verifying the actual losses of the United States, the excess money will be returned to China for running the school. The military is the largest part of the money that the United States spends, and he said you can talk to General Gerbin about it. ā€

"That's all?" Alice's words were unclear and very vague, and Yang Rui didn't understand what it meant. What does it mean to discuss military spending with General Corbyn?

"Yes, that's all." Alice is just a messenger, and she knows not much more than Yang Rui, "By the way, he also said that if you want to run a school, then China Education will be able to benefit from it, but how much can it benefit." It was up to the Education Council to negotiate with the Qing government and the U.S. Minister to the Qing Dynasty, but he thought that given the size of the Chinese Education Society, it would be reasonable for it to receive at least half of the refund each year. ā€

"Oh, that's good news." Yang Rui smiled, "Is there anyone in China who is involved in this matter now?" ā€

"Yes, it is Liang Zai, the minister of the Qing State to the United States, who is in charge. Do you know him? Alice said.

"I don't know." Yang Rui shook his head, and then asked Yu Zixun next to him: "What is the background of this person?" ā€

"The envoy to the United States is called Liang Cheng, a native of Guangdong, and a young student studying abroad." Yu Zixun said.

"Liumei young children, hehe. Isn't that Yung Hong's student? It's really interesting. Yang Rui laughed. In the afternoon of the same day, he sent a telegram to Hartford's Yung Hong, inviting him to New York for a talk. was worried that the old man would be unable to move, so he asked Chen Guangshou to escort two people.

While waiting for Yung Hong, a second negotiation with Harriman began, and there was no doubt that Mr. Harriman, who had been dismantled after the dismantling, needed a plan for a global rail network to counteract 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 Skull and Bones Society to increase the family's influence in politics. His decision was undoubtedly the right one, and both of his sons became members of the Skull and Bones Society, keeping the Harriman family's glory alive.

"Dear Mister Yang, we have considered your plan to lease the Antong Long Railway, and what makes us most puzzled is that the railway is now only planned to be built to Meihekou, and the 150 kilometers away from Changchun has not been approved by the Qing government, that is to say, the Antong Long Railway you mentioned is not complete." In this negotiation, Yang Rui finally met Harriman, although the opponent he negotiated with was not Harriman, but Harriman's appearance can be considered half of the plan.

"Yes, Mr. Garfield, you are absolutely right, more than 100 kilometers here have not been approved by the government at all, but your global rail network has not been negotiated with Russia." Yang Rui magnified the problem, so that his shortcomings were ignored, "We have a complete relationship with the Qing government to ensure that the approval will be passed, and now the most worrying thing is the attitude of Russia and Japan, once the railway from Meihekou to Changchun is built, then the Japanese will definitely protest; And for the Russians, although they were glad to have such a railway, which caused the Japanese a lot of losses, but what if they also wanted to build it? Now the final problem is the political problem, and it will not take too long to build the 150-kilometer railway, maybe half a year will be enough. ā€

"Half a year?" Garfield was a little surprised, "Are you sure?" ā€

"Yes, it's completely certain," Yang Rui took out a plan and said, "The exploration of the route has already been completed, and now we are building a road from Meihekou to Changchun, which is actually the railway embankment, once the railway plan is opened, all that is needed is to lay sleepers and railways on it." If you had used local wood instead of American pine, the railroad would have been open in half a year. ā€

"Oh. But this requires us to help you solve the political problem, which is a very draining thing for us. Seeing that there was no fault on the railroad, Garfield focused his firepower on political issues.

Yang Rui retorted: "If the American railroad company wants to buy railways in the northeast and the eastern Balkans, it will have to solve a series of political problems. Mr. Garfield, now that the Japanese have completely rejected your offer to acquire the South Manchurian Railway, the Antong-Chang Railway is the only option to realize Mr. Harriman's plan for a round-the-world railway. And. Even if the Japanese government of the South Manchurian Railway was willing to sell it to you, the Japanese put the entrance to the sea in Dalian. This is a few hundred kilometers more than taking the Antong Long Railway, do you think that the purchase of the South Manchurian Railway is in line with the laws of business? And, is it a businessman's choice to abandon the railroads in the U.S. sphere of influence in favor of the railroads in Japan's sphere of influence? ā€

His own weaknesses were eaten to death by Yang Rui, and Garfield felt that he was as helpless as last time, and he could only use the freight volume to fight back, "But if the Antongmei Railway." If it doesn't join our global rail project, then it has no way to build Changchun, and if it can't build Changchun, its value can't be reflected, Mister Young, I doubt that its annual freight revenue can be 300,000 US dollars, although its construction cost is so high. More than $18 million was spent. ā€

"That's true. But this railway is not for the north-south freight service, it is more for the Tonghua coal mine service, as long as the coal mine makes money, I don't mind how much freight revenue it has every year," in the face of his questioning, Yang Rui had to look like a dead pig who was not afraid of boiling water. "Mr. Garfield, we should be a mining company and not a railroad company, and if we can export two million tons of coal a year, we will have close to eight million dollars." What is the income of the railway company compared to this income? ā€

"But we can convince the State Department. To stop certain acts of the Japanese, according to the news, they are now constantly making trouble for the Tonghua Railway Company. Mister Young, if you don't sell us the railroad, it will eventually be swallowed up by the Japanese, and you may not be able to recover the previous cost when the time comes. Garfield laughed, maybe he had this other source.

"The Japanese, hehe, what can they do?" Yang Rui's heart rose when he heard him say Japan, but his face was not moved at all, "They are protesting against the use of Russian-style broad gauge in our railway track system, but China does not stipulate that the railway gauge must be built into a standard regulation, and their protest is completely invalid." Since it could not be repaired to connect Fengtian with the railway inside and outside the Guan, Yang Rui simply ordered the gauge of the railway to be changed to Russian-made broad gauge. Although Japan protested, it could not find an excuse at all, the Anbong Railway was still a narrow-gauge railway, and the South Manchurian Railway was a Russian-made broad-gauge railway, although the Japanese had planned to change both to standard gauges, but this was only a plan, like the Anbong Railway's track expansion plan, which could not be clearly stated to outsiders at all.

Negotiations and mutual attacks and counter-arguments were carried out until the end of the talks, but no more consensus was reached. Garfield demanded that the term of the railway concession should be more than 50 years, and that the rent should be determined at one time and then paid every ten years, while Yang Rui was only willing to rent every ten years, and the rent for every ten years was agreed on the previous year. At the end of the trip, Harriman invited Yang Rui into his office to sit for a while after listening to Garfield's summary.

"Mister Young, you're much younger than I thought." Harriman was in his fifties, short in stature, and his mustache was a bit scruffy, but he was in good spirits, especially his eyes were bright behind the glass lenses. When Yang Rui looked at him, he somehow suddenly remembered a cartoon in the New York Times, where a spider was weaving a new web on top of the old spider web, this was a fierce character, Yang Rui warned himself.

"It's a pleasure to meet you, Mr. Harriman." Yang Rui smiled and shook hands with him.

"Dain told me that the dispute between you is really about the length of the railway lease, right?" Spider-Man said quietly, pretending to be a bystander. If it weren't for his relationship with the Rockefeller family and President Roosevelt, he would not have met with Yang Rui at all, and would only let some people find him a lot of trouble, and even his oil company that was going to be listed could also let Morgan make some private remarks to make it unable to be successfully listed. What a damn Roosevelt! He cursed inwardly.

"Yes, exactly. Tonghua Railway Company's shareholders want to lease the railway for a period of 10 years, not 50 years or more. Mr. Harriman, this is actually no loss for you. Cooperation is the main theme of business, and even if we renegotiate the lease fee in the ninth year, it is based on the premise of mutual benefit for both parties. Yang Rui looked at the humanoid spider in front of him and said kindly.