1850 American Gold Baron

Chapter 200 Can you get so much cash? (4K)

"We need to discuss in detail regarding railway cooperation."

Liang Yao made a gesture of invitation.

"The Rothschild family is also very interested in cooperation with the American 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 specially prepared for him by Vanderbilt in the manor.

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 Railroad is not listed on the New York Stock Exchange and its shares are not open to the public."

Liang Yao expressed his attitude.

The California Railroad Company is responsible for California's railway construction 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 and looked very unhappy.

It seems that 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 Bahrain Bank."

"For Barings' sake? Let's hear it."

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 about the reason.

“Among the internal divisions of labor within the Americas Group, California Railway Company is mainly responsible for railway construction within the state of California.

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

financial support.

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

Liang Yao analyzed it carefully and with reason, 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 chewed carefully 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.

"Let's continue talking about the division of labor within the American Group of the Delaware and Hudson Railroad Company," Thomas said.

"This is America Group's secret, 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 is also a large and powerful railroad company, its strength is far from enough if it wants to stand out in the fiercely competitive railroad industry in the East."

"The collapse of railroad stocks on Wall Street, I think, was at the hands of You and Vanderbilt."

Thomas guessed Liang Yao's intention.

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

"What you said is not entirely accurate. Improving the competitiveness of the Delaware and Hudson Railroad is only one of the reasons.

I think you know better than me what the most valuable assets of American railroad companies are," Liang Yao said.

"Of course, the land along the railroad is the most valuable asset of American railroad companies," 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.

of railway routes.”

Liang Yao nodded and said.

“For America Group’s railroad business in the east, I hope to make profits in the shortest possible time to make up for California Railroad’s losses.

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

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

The railroad company has 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 railway 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 merged together.

As far as I know, the two most valuable lines currently owned by the Delaware & 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 very well." Liang Yao said.

"I am an investor. A qualified investor must know the industry and even the project 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. Not only the railroad companies that own these two lines are Delaware and Hard

Johnson 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 a unified plan to connect the railway lines controlled by the two railway companies.

An easy thing.”

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

"If Barings Bank can take a stake in it, 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 in it.

“Although the Rothschild family is not as influential as the Baring family in North America, it still has many like-minded congressmen and 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 expressed his attitude.

"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 the cooperation issue has been negotiated, 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 railroad company Americas Group holds 50% of the shares, Barings holds 30%, and the Rothschild family holds 20%.

However, after discussion, Thomas and August proposed 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 America Group will be divided between Barings Bank and the Rothschild family.

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

With such an unequal and harsh gambling agreement, Thomas and August originally thought that Liang Yao would refuse, and then they would be able to 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, which actually left Liang Yao with very limited time.

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 would rather you exchange the shares of the Nicaraguan 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 is a burden, and I am 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."

The current value of Nicaragua Shipping Company is US$5 million, and the value of 30% of the shares is 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.

A railroad company with share prices as strong as the Delaware & Hudson across Wall Street is Vanderbilt's Stonington Railroad.

The largest shareholders of these two railway companies were the instigators of this 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, the Nicaragua Shipping Company, which has been suffering losses 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 Nicaraguan Shipping Company for the shares of the American Group Railway Company.

"Now is not the best time to buy the Baltimore and Ohio Railroad Company. 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."

Auguste also agreed to this plan. The Nicaragua Shipping Company, which continued to suffer losses, was indeed a burden for them.

They even doubted their own vision and questioned whether their 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 had some doubts about how much cash flow Liang Yao still had.

"I don't have cash, 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.

Recently, the exchange rate between the US dollar and gold in the U.S. gold market has been somewhat unstable. 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 and Ohio Railroad Company."

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

(End of chapter)