??128: Chapter 87 The Ga of Capital (Part Two) (4000 words) _2
128: Chapter 87 The Ga of Capital (Part Two) (4000 words) _2
In 1826, Parliant approved five new railway companies in one fell swoop.
By this year, Great Britain already possesses 21 railway companies, with Parliant having agreed last year to 105.25 miles of railway construction applications.
This already exceeds more than half of the total construction applications of the past eight years.
Although a small, unfortunate accident occurred during this year’s Manchester-Liverpool railway inauguration ceremony, we believe that this minor episode shouldn’t disrupt Britain’s railway construction boom.
As you previously ntioned, the next thirty years will belong to the railway industry.
I can even assert that the 19th century ought to be the century of railways.”
Arthur tentatively asked, “So your advice is to invest in railway stocks?”
“No.”
Lionel replied with a smile, “On the contrary, we strongly advise against touching the stocks of railway companies.
From what I understand, quite a few railway companies listed on the London Stock Exchange are taking advantage of the rail craze to swindle financing.
A significant portion of them is simply at the planning stage, and so of the more outrageous ones are already eager to absorb speculation funds without even having passed Parliant’s railway construction permit.
If one does not have a deep understanding of this industry, rashly getting involved could easily lead to being swindled out of all one’s capital.”
Upon hearing this, Arthur seed to gradually understand.
Recomnding the railway industry but not the railway companies, the answer was nearly palpable.
He asked, “You an to say, you recomnd investing in bridge and road construction companies that have the technical capability to build railways?”
Lionel clapped his hands with a laugh and pointed at Arthur, “Mr.
Hastings, you indeed have a talent for finance.
Yes, the construction companies I recomnd, or to be more precise, the ones I recomnd are currently at their lowest stock value – Thas River Tunnel Company and Brunel Bridge and Road Construction Company.”
“I haven’t heard much about Brunel Bridge and Road Construction Company, but the Thas River Tunnel Company…”
Upon hearing this na, Arthur could not help but catch his breath.
Speaking of this company, it should be well-known to the citizens of London; at the sa ti, it’s also a favorite subject of the London press.
As the na suggests, the initial purpose of establishing this company was to build an underwater tunnel railway beneath the Thas River that, according to the design plans, would link Weiping and Lotexi on both sides of the Thas after completion.
But the construction of an underwater tunnel, just by the na alone, indicates the difficulties of its construction, let alone now in the early 19th century.
Its slow construction progress also confirms this idea, with the tunnel advancing only three to four ters each week.
And not only is the construction slow but the most troubleso part is that, since the work began in 1825, this underwater tunnel has experienced multiple leakages.
Leakages aside, the crucial issue is the fetid Thas River water, which releases a large amount of thane gas into the tunnel, leading to explosions.
The engineers and workers laboring in such conditions frequently fell ill, and, since the start of the project, several onsite engineers had to be rushed to the hospital.
The most severe construction accident happened in 1828 when the stinking Thas water outright broke through the tunnel, drowning six workers who were on duty and almost killing the son of the chief engineer, Marco Brunel, who was interning there.
The poor young man lay in the hospital for a full six months before he recovered.
Since this serious accident, the Thas River underwater tunnel project has been in a long-term state of stagnation.
In an attempt to compensate for the overspending on construction costs and regain the public’s confidence in the tunnel’s safety, after the tunnel was drained and repaired, the tunnel company even ca up with the peculiar idea of opening the tunnel for sightseeing tours.
What’s more surprising is that the London public who ca to visit were not few, as they were quite willing to spend a shilling to see this ‘hot spot,’ which had repeatedly appeared on the front pages of the newspapers.
Yet, such a tourist craze couldn’t salvage the reputation and stocks of the Thas Tunnel Company; their shares on the London Stock Exchange were practically stinking up the street.
For rational investors, buying their stocks was equivalent to throwing money into the Thas River.
Arthur asked, “I heard that the Thas Tunnel project has stalled due to a lack of funds, hasn’t it?”
Lionel spotted Arthur’s doubts at a glance and asked with a smile, “Do you rember the city bonds that I ntioned to you before, to be issued by the Treasury?
You, with your intelligence, must have imdiately thought of what that ??200,000 public debt is for.”
Arthur had an epiphany.
He lifted his teacup, savoring the aftertaste of those words for a long ti.
Looking at Lionel, he took a sip of his tea and said, “How true it is that the Rothschild Family makes money easily.”
Lionel nodded with a smile, “Mr.
Hastings, you should know that for us in finance, information is life itself.
Only fools would stare at the numbers on stocks all day.
Those who really make big money rely on tily information.”
“Also, I can share two more pieces of information with you.
One of the major shareholders of the Thas Tunnel Company is another big client of ours—Duke Arthur Wellesley.”
“As for the other company I just ntioned—the Brunel Road & Bridge Construction Company—its major shareholders are none other than the Thas Tunnel Company’s chief engineer, Marc Brunel, and his son Isambard Brunel.”
“Both gentlen are top design and construction talents in railway construction.
Moreover, due to the impact of the Thas Tunnel project, the stock price of Brunel Road & Bridge Construction Company has also fallen to rock bottom recently.”
“But as you know, people can’t be unlucky for a lifeti.
I inadvertently found out that young Mr.
Brunel’s design is very likely to win the bid for the bridge across the Avon Gorge.
Once he lands this deal, the Brunel Road & Bridge Construction Company will soon resurrect.”
As he said this, Lionel picked up the teapot and added more tea to Arthur’s half-empty cup.
While pouring the tea, he said, “Mr.
Hastings, you know, life is indeed quite wonderful.”
Looking at the ripples in his teacup, Arthur couldn’t help but nod in agreent, “Indeed, life is very wonderful.
It’s about ti for the Brunels to have so good luck.
By the way, please purchase ??500 worth of shares for
in both the Thas Tunnel Company and the Brunel Road & Bridge Company.”
At these words, Lionel stood up, content.
He took off his hat and bowed slightly, “Thank you for your keen insight.
You have demonstrated your robust investnt strength and far-sighted vision today.
Mr.
Hastings, Rothschild is truly honored to provide you with our advisory service today.”
Great Dumas, who was sitting nearby, couldn’t help but chuckle as he overheard the conversation, while munching on a doughnut, he muttered, “This is considered having keen insight?
I could do that too.
It’s all about the information, damn ‘luck’.”
Lionel, hearing this, shook his head with a smile in response, “Mr.
Dumas, you must understand that ‘luck’ cos with strength.
In my view, Mr.
Hastings is very capable, so it’s only natural for him to have ‘luck’.”
As soon as he said this, the property agent who had previously left the room ca panting back from the back hall.
He ca up to Arthur and reverently presented the property assessnt report with both hands.
“Mr.
Hastings, excuse the delay.
Here is the revised property recomndation report for your review,” he said.
Upon hearing this, Lionel smiled and nodded at Arthur, “Co, Mr.
Hastings, your ‘luck’ has arrived once again.”
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