1850 American Gold Tycoon

"We need to talk in detail about cooperation on railways."

Liang Yao made a gesture of invitation.

"The Rothschild family is also very interested in cooperation with the Americas Group."

August is not far behind.

"Of course, Americas Group is willing to cooperate with strong potential partners."

Liang Yao also welcomed August’s joining.

He took Thomas and August to the study that Vanderbilt had specially prepared for him on the estate.

As for Vanderbilt, he was discussing something with Fish.

"As far as I know, you now own 100% of the shares of the California Railway Company and 78% of the shares of the Delaware and Hudson Railroad Company. I am very optimistic about the future of these two railway companies and want to invest in them."

Thomas didn't want to waste time, so he went straight to the topic without beating around the bush and expressed his intention to become a shareholder.

He seems very confident. There is no rich man in the United States who refuses to cooperate with the Bahrain family.

"California is not listed on the New York exchange and the shares are not open to the public."

Liang Yao made his attitude clear.

The California Railroad Company is responsible for railway construction in California and must be fully controlled by him. This is not negotiable. He does not allow outside capital to participate in it, not even Barings Bank.

"oh?"

Liang Yao's refusal was obviously unexpected by Thomas. Thomas frowned with a very unhappy expression.

It looks like Barings Bank is willing to invest in your railway company to give you face, not to be shameless.

"Mr. Thomas, don't get me wrong."

Liang Yao suppressed the dissatisfaction in his heart and said.

"I am not a ungrateful person, but I am thinking about you and Barings Bank."

"For Barings' sake? Tell us."

Thomas was puzzled. Thomas, who had been immersed in the business world for decades, obviously would not believe such rhetoric.

He wanted to see what Liang Yao would say.

“Among the internal divisions of the Americas Group, California Railroad is primarily responsible for railroad construction within the state of California.

California is vast and sparsely populated, and the market is limited. The California Railroad Company will not be able to make a profit for a long time in the future. I won’t hide it from you. The California Railway Company can still maintain normal operations because of the unconditional financial support of America Group’s Xiangshan Gold Mining.

Not only that, the sparse population and small market also limit the development of California Railroad. The future ceiling of California Railroad is not high. "

Liang Yao analyzed it carefully and rationally, and what he said was also the truth.

He is willing to invest heavily in the California railway industry not because of the huge profits that can be obtained in the current California railway market, but because he is optimistic about and invests in California's future.

Thomas carefully chewed what Liang Yao said just now, and what Liang Yao said was not unreasonable.

He cannot predict the future like Liang Yao. How much gold reserves there are in California and whether California will decline rapidly after the gold is mined are all unknown.

"Continue to talk about the division of labor within the American Group of the Delaware and Hudson Railroad Company," Thomas said.

"This is the secret of America Group, but since you are interested in investing in America Group's railway industry, I will be honest with you."

Liang Yao took the teacup handed over by Kony, took a sip of tea to moisten his throat and continued.

"What you said just now is not accurate. The remaining shares of the Delaware and Hudson Railroad Company have also been collected. I now hold 100% of the shares of the Delaware and Hudson Railroad Company.

Although the Delaware and Hudson Railroad Company was also a large and powerful railroad company, its strength was far from enough if it wanted to stand out in the fiercely competitive railroad industry in the East. "

"The collapse of railroad stock securities in Wall Street was, I believe, at your and Vanderbilt's hands."

Thomas guessed Liang Yao's intention.

"You want to gobble up other railroads to make the Delaware and Hudson more competitive?"

“What you say is not entirely accurate, and improving the competitiveness of the Delaware and Hudson Railroad is only one of the reasons.

I think you know better than I do what the most valuable assets of America's railroads are. "Liang Yao said.

"Of course, the land along the railroads is America's most valuable asset," Thomas said.

"Yes, the land along the railway line. Obtaining authorization for interstate railways is a very troublesome and time-consuming matter. Rather than acquiring these railway companies, it is better to say that I am acquiring the authorizations these companies have already obtained. railway route.”

Liang Yao nodded and said.

“With the American Group’s railroad business in the east, I hope to make a profit in the shortest possible time to make up for the losses of California Railroad.

To be honest, I have my eye on the Baltimore and Ohio Railroad at the moment. "

Thomas quickly searched his mind for information on the Baltimore and Ohio Railroad.

The railroad company had received authorization to build lines from Baltimore to Cleveland, Akron, Canton, and Memphis, Ohio.

However, due to the limited financial resources of the Baltimore-Ohio Railroad Company, this railroad has not yet been fully constructed.

If the Baltimore-Ohio Railroad Company could be acquired by powerful investors like Liang Yao and Barings Bank, there would be no need to worry about financial problems, and there would indeed be great potential.

"Your vision is pretty good." Thomas confirmed Liang Yao's vision.

“If the Baltimore and Ohio Railroad could be merged with the Delaware and Hudson Railroad, the lines of the two railroads could be brought together.

As far as I know, the two most valuable lines currently owned by the Delaware \u0026 Hudson Railroad are those from New York to Boston and from New York to Philadelphia. "

"It seems that you know the railway routes in the United States well." Liang Yao said.

"I am an investor, and a qualified investor must know the industry and even the project that he is investing in." Thomas said seriously.

"Indeed, you must also know that the railway lines in the eastern part of the United States are relatively dense. The railway lines from New York to Boston and from New York to Philadelphia are very popular lines. Delaware and Harder are not the only railway companies that own these two lines. Sun Railway Company."

Liang Yao said.

"Furthermore, the Delaware and Hudson Railroad Company has not yet obtained authorization for the railway line from Philadelphia to Baltimore. It is not an easy task to connect the railway lines controlled by the two railway companies. An easy thing.”

"I have some connections in New Jersey, Maryland, and even Pennsylvania." Thomas squinted at Liang Yao.

"If Barings Bank can take a stake, it will not be too difficult to obtain authorization for the railway line between Philadelphia and Baltimore. If Barings Bank does not take a stake, it may be difficult to say."

Liang Yao was very disgusted with Thomas' arrogant attitude, but he had to admit that what Thomas said was reasonable.

This is one of the reasons why he is willing to let Barings take a stake.

“Although the influence of the Rothschild family in North America is not as good as that of the Baring family, they still have many like-minded parliamentarian friends in some states.

If the Rothschild family can take a stake, I think it will be of great benefit to your group in terms of obtaining railway route authorization in the future. "

August also made his attitude clear.

"Hahaha, if that's the case, then what reason do I have to refuse the olive branch of cooperation offered by you two?" Liang Yao said with a smile.

After negotiating the cooperation issue, the next step is the issue of shares.

On the issue of shares, Liang Yao argued with Thomas and August for a long time, and finally decided to refer to the equity of the umbrella company.

The merged railway company Americas Group holds 50% of the shares, Barings holds 30% and the Rothschild family holds 20%.

However, Thomas and August proposed after discussion that Liang Yao needed to sign a gambling agreement.

If the railway company cannot make a profit within three years, 50% of the shares held by the American Group will be divided between Barings Bank and the Rothschild family.

If the railway company achieves profitability within three years, Barings Bank only needs to transfer 3% and 2% of its shares to the American Group respectively.

With such an unequal and harsh gambling agreement, Thomas and August originally thought that Liang Yao would refuse, and then they could ask for more shares.

To their surprise, Liang Yao actually accepted the gambling agreement.

You must know that the Pioneer is not compatible with the existing railway tracks. Liang Yao wants to eliminate the old inferior railway tracks and rebuild high-standard railway tracks.

The time for building the railway track was also included in the three years of the gambling agreement. In fact, the time left for Liang Yao was very limited.

Thomas and August looked at each other and showed a very understanding smile. They felt that Liang Yao was still too young and arrogant to dare to sign such a gambling agreement.

"I can sign this gambling agreement, but I will not accept your cash for the new railway company shares. I prefer that you exchange the shares of the Nicaragua Shipping Company for the shares of the railway company."

Liang Yao looked at the gambling agreement drafted by Thomas and August and said.

"As far as I know, Mr. Vanderbilt is currently engaged in a price war with Mr. Aspinwall of the Pacific Mail Line. Currently, the Nicaragua Shipping Company is still in a loss-making state. He holds shares in the Nicaragua Shipping Company. For the two of you, It’s a burden, and I’m willing to bear this burden for you two.”

The Nicaragua route can be said to be the life and death line for California. Now that he has the opportunity to acquire the shares of the Nicaragua Shipping Company from Thomas and August, Liang Yao will naturally not let go of this rare opportunity.

Liang Yao did not want to pin the stability of the Nicaragua Shipping Company on the friendship between Vanderbilt and his friend.

Friendship in the shopping mall is one of the most unreliable friendships and requires taking great risks.

Liang Yao cannot bear the risk of the Nicaragua route.

"Vanderbilt did underestimate Mr. Aspinwall. The Pacific Mail Company is stronger than Mr. Vanderbilt expected."

Thomas said.

"It's just that you haven't even purchased the Baltimore-Ohio Railroad Company yet. The value of the new railway company has not yet been determined. We cannot take the risk and exchange the shares of the Nicaragua Shipping Company with you."

Nicaragua Shipping Company is currently valued at US$5 million, with a 30% stake valued at US$1.5 million.

The current value of Liang Yao's Delaware and Hudson Railroad Company is less than US$4 million, and in the sluggish environment of railroad stocks and securities on Wall Street, the value of the Delaware and Hudson Railroad Company is also shrinking.

It's just that compared to other railroad companies whose stock prices have plummeted, the stock price of the Delaware and Hudson Railroad Company is very strong.

Another railroad company whose stock price across Wall Street was as strong as the Delaware and Hudson Railroad was Vanderbilt's Stonington Railroad.

The largest shareholders of these two railway companies were the instigators of the railway crisis.

In short, it is not cost-effective to exchange the shares of the Nicaragua Shipping Company for the shares of Liang Yao's railway company. Even after acquiring the Baltimore-Ohio Railway Company, there is a big difference in how much Liang Yao's railway company is worth. Determining factors.

However, Nicaragua Shipping Company, which has been losing money for more than a year, is indeed a burden for Thomas and August.

As long as Liang Yao can put forward sufficiently attractive conditions, they are not unwilling to exchange the shares of the Nicaragua Shipping Company for the shares of the American Group Railway Company.

"Now is not the best time to buy the Baltimore and Ohio Railroad, and I will buy it when the time comes."

Liang Yao looked very sincere.

"I will not let the two investors make a loss-making transaction. I will acquire the Nicaragua Shipping Company shares from them based on the actual value of the Nicaragua Shipping Company shares.

You two can take this money and use it to purchase shares of the merged and reorganized railroad company after America Group acquires the Baltimore-Ohio Railroad Company. What do you think? "

"That's not a bad idea."

After Thomas thought about it, he felt that this plan was feasible, at least he would not suffer a loss, so he agreed to the plan.

"I have no objection either."

August also agreed to this plan. The Nicaraguan Shipping Company, which continued to lose money, was indeed a burden for them.

They even doubted their own vision and questioned whether the original investment in Vanderbilt was worth it.

"It's just that the combined value of Mr. August's and mine's shares is as high as 2.5 million U.S. dollars. Can you afford so much cash?"

Thomas thought that all of Liang Yao's deposits in Bahrain Bank had been withdrawn, and he wondered how much cash flow Liang Yao still had.

"I don't have cash, but can I have gold of equal value?" Liang Yao said with a smile.

"Of course, who would refuse the temptation of gold?"

When Liang Yao said this, Thomas completely let go of his worries.

The exchange ratio between the U.S. dollar and gold in the U.S. gold market has been somewhat unstable recently. It would be great if we could trade gold with a more stable value.

"With that said, I look forward to your early acquisition of the Baltimore \u0026 Ohio Railroad."

Seeing that the matter was over, August stood up and was about to leave.