Chapter 1025: 350. Abundant Harvest
Walker’s money is easy to distribute, but Donnie’s money is hard to allocate; after all, it’s $1 billion in cash!
Sotis having too much money is not a good thing because you don’t know how to spend it!
Of course, this is just a joke. For Donnie, it’s still very easy to spend this money.
While Walker was resting, Donnie called in Café Jackson and the vacationing Robert.
“How are the transitions with the other three banks going?”
Donnie asked Café Jackson.
During the past six months, Four-Sided Investnt has been dismantling the Kuhn, Loeb & Co. consortium. Initially, this did not attract attention on Wall Street, but by the mid-phase, Wall Street finally began to react.
Thus, starting from October, Wall Street began continuous reporting on this matter.
First, llon Bank exchanged shares with Four-Sided Investnt, buying all shares Warburg Company held in Kennecott Copper Corporation and The New York Tis, while selling its shares in Four-Sided Investnt to Venus, Morgan, Chase banks, formally exiting Four-Sided Investnt, as well as Warburg Company.
“Four-Sided Investnt enters the split stage; llon Consortium officially enters the dia industry!” — The Wall Street Journal
This was The Wall Street Journal’s report at that ti.
“Clearly, even before acquiring the Kuhn, Loeb & Co. consortium, Four-Sided Investnt had already planned on dismantling it. The Kuhn, Loeb & Co. consortium is like a huge cake, and llon, Morgan, Chase, Venus are those feasting on it!”
Anyone with a keen eye could see that dismantling the Kuhn, Loeb & Co. consortium was inevitable.
But so old shareholders of the Warburg Company also understood that such actions would certainly harm their interests, as Four-Sided Investnt, as the absolute controlling shareholder of Warburg Company, could settle all the transaction benefits internally.
Thus, these old shareholders initiated protests again!
But such protests were unlikely to be effective. Compared to the shares, they couldn’t compete with Four-Sided Investnt; financially, they couldn’t even see the tail lights of Four-Sided Investnt, let alone any supposed official influence.
Therefore, after protesting, these shareholders either began to sell their shares in Warburg Company on the stock market or approached Four-Sided Investnt to sell their shares.
Such actions naturally led to a continuous decline in Warburg Company’s stock price, from $5.5 per share when Four-Sided Investnt acquired Warburg Company, down to $2 per share, lower than the previous lowest point!
These old shareholders suffered heavy losses.
After llon smoothly completed the split, next was Chase.
Chase bought Warburg Company’s shares in three railroad companies and the $50 million worth of land in Florida.
Everyone knew that behind Chase was the Rockefeller Family, and this acquisition by the Rockefeller Family actually completed their monopoly in the railway sector!
“Currently, the only one capable of competing with the Rockefeller Family in the Arican railway sector is Morgan, but based on the recent collaboration between Morgan and the Rockefeller Family, we can predict that these two grand consortiums will certainly join forces to dominate the Arican railway industry in the future. It’s no exaggeration to say that these two families have completed the monopoly of the dostic railway industry in the United States!”
The Wall Street Journal once again published their comntary on this matter.
This ti, people on Wall Street had transitioned from shock and disbelief to a numb shock!
The rger case of Warburg Company is bound to form multiple monopolistic enterprises in the United States!
It was precisely due to such expectations that led to an increase in stock prices for listed companies under Venus, llon, Morgan, and Chase, forming a stark contrast with the decline in Warburg Company’s market value!
Now everyone focused on Venus and Morgan, wanting to see how these two banks would divide the Kuhn, Loeb & Co. consortium!
They didn’t have to wait long. By the end of December 1924, Morgan also smoothly completed the split in Four-Sided Investnt.
Morgan took from Warburg Company the shares of General Motors, Pennsylvania Railroad Company, Southern Pacific Railroad Company, and Bethlehem Steel Corporation, along with the $50 million worth of Florida land held by Warburg Company!
Although Morgan’s actions shocked Wall Street, they didn’t feel unexpected.
Previously, all of Wall Street had analyzed that Morgan was certainly going to join Rockefeller in monopolizing the Arican railway industry. Now, Morgan taking Pennsylvania Railroad Company and Southern Pacific Railroad Company is absolutely expected.
As for Bethlehem Steel Corporation, people weren’t surprised, as it was already apparent when Morgan acquired U.S. Steel that Morgan was going to monopolize the Arican steel industry.
When Morgan left Four-Sided Investnt, everyone saw the full picture of Four-Sided Investnt’s division of the Kuhn, Loeb & Co. consortium.
Venus Bank retained Westinghouse Electric, along with all of Warburg Company’s investnt business!
No one believes Venus Bank’s investnt this ti was a loss.
Everyone understands what these two businesses represent for Venus Bank.
Before this, everyone knew that in Arican comrcial radio, there were two parts: one was Venus Bank’s ABC, the other was other comrcial radio stations.
Among other comrcial radio stations, the highest market share was held by Westinghouse’s KDKA. Now Venus Bank beca Westinghouse’s largest shareholder, which ans KDKA is included in the ABC’s system.
It can be said, as of now, it’s impossible to find a comrcial radio station capable of challenging ABC across the United States!
Moreover, the acquisition of Westinghouse also represents the formal entry of the New Jersey Consortium into the electrical field, complenting their comrcial radio, becoming a potential challenger to General Electric!
However, the acquisition of Westinghouse is actually not the most important thing for the New Jersey Consortium!
The most crucial part lies in Warburg Company’s investnt business!
The most important point is that Warburg Company holds New York National Comrcial Bank. Previously, Venus Bank was criticized for its short establishnt period. Although Venus Bank acquired Breton Bank, expanded its savings business, later joined the Federal Reserve, becoming a new noble in investnt banking.
But the topic of lacking heritage had been persistent.
But now it’s different. Four-Sided Investnt beca the sole holding company of Venus Bank, controlling over 50% of Warburg Company’s shares, which ans Venus Bank would have control over New York National Comrcial Bank. In this context, Venus Bank not only increased its shares in the Federal Reserve but also acquired all of New York National Comrcial Bank’s business.
For Venus Bank, this is definitely a matter worthy of being recorded in history.
Of course, if Venus Bank wants to gain absolute control over Westinghouse and New York National Comrcial Bank, it will still take so ti.
After all, neither company is small, both having their mature managent teams. These managent teams, although unable to compare with Warburg Company in terms of company shares, hold specific business control of the company. If Donnie wants ultimate control over these two companies, there is still a long road ahead!
“The transitions have all been completed!” Café Jackson reported to Donnie: “Now we have started negotiations with the managent of Westinghouse and New York National Comrcial Bank, hoping to place personnel from the Strategic Departnt into these two companies!”
Donnie smiled and asked, “How are they reacting?”
Café Jackson said, “Certainly unwilling, as they understand that if we allow our people into the managent, it will definitely be a gradual erosion of their powers in the future!”
Donnie looked at Café Jackson’s deanor, and although his expression was relaxed, Donnie knew that this matter would definitely not proceed smoothly!
“No need to insert too many people at once, just having our representatives is enough!”
Donnie knew this matter absolutely could not be rushed; it needs to be approached gradually.
Café Jackson nodded and said, “I understand, as long as the boss is aware of the difficulty of this matter, that’s all that matters!”
That’s the benefit of doing things in the Venus Consortium, as all senior managent only needs to be accountable to Donnie, unlike other consortiums where the composition of board mbers is complex, with various interests intertwined.
In the Venus Consortium, Donnie’s words are absolute decree!
“Robert!” Donnie turned to Robert beside him: “When you’re in New York, pay attention to the stock markets of these two companies. Don’t let soone else reap the benefits in the end!”
Although Warburg Company is the major shareholder in Westinghouse and New York National Comrcial Bank, it is not in an absolutely controlling position. If soone covertly acquires shares in these two companies and liaises with other shareholders, it’s possible for Warburg Company to lose its authority in these two companies!
“I understand, I have already discussed with Jesse that we will purchase shares of these two companies during this period, allowing our holdings to exceed 50%. After the consortium fully controls these two companies, we will then choose to sell part of their shares!”
Robert answered Donnie.
This is the advantage brought by the vast cash from the European bond market, as the Venus Consortium can now use this overpowering thod to achieve control of these companies!
Donnie nodded and said, “Good, I’ll leave it to you!”
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