Chapter 90: The Great Depression (Part Nine)
Translator: Shari, Etern, Kim_Guo
At full employment, Beta factory could produce 10 tonnes of banknotes each day. Incidentally, each $100 USD note weighed 1 g. $1,000,000 USD worth of banknotes weighed 10 kg. By a rough calculation, this factory was could produce $1,000,000,000 worth of banknotes each day. At that time, US currency was referred to as the “Federal Reserve Notes”. In fact, the US government had not introduced similar coins or banknotes.
At this time, with only Rolin working and only Huang Xuan doing the physical labor, Beta factory couldn’t even produce one ton of banknotes. Due to the uniqueness of the green notes, the production rate was further reduced. Nevertheless, the factory could still easily produce $20,000,000 every 12 hours. With regards to the cost, it would normally cost the government’s mass production four cents per note, but the printers retrofitted by Rolin were much more expense, needing at least 20 cents. However, this didn’t really affect them much.
As he sat behind a new, improved and heavy printing machine, Huang Xuan looked at the information on the energy screen and said: “Rolin, contact Li Qing for me again, actually, contact Li Shenggang first.”
“It is currently 3 am in P112.”
“Do it now. Time is precious.”
Li Shenggang probably had not gone to sleep yet. There was even some background noise. Huang Xuan didn’t like to interfere. In this way, he was very similar to his mother. He kept work and private life separate, and prioritized the completion of his tasks.
“I’m sorry for bothering you,” Huang Xuan apologized energetically. “Is it convenient for you to talk now?”
“It’s convenient.” Li Shenggang was now managing four factories. Although each factory was making a loss, he was satisfied with himself.
“Hmm, how are the factories?” Huang Xuan asked, even though he already knew the answer. He understood the factory’s situation better than anyone. The cost of shipping aluminum ingots was rising every day, yet the factory lost ten thousand each day. If not for Huang Xuan’s financial support, the company would have gone bankrupt long ago.
Naturally, Li Shenggang had to pour out his grievances. He talked about the retiring employees, the factory elders’ problems, the supply problem… Huang Xuan listened patiently for over ten minutes and then he interrupted, “I know, this period has been hard for you, but the factory cannot close now. Do your best and think of a way to apply for a higher energy quota.”
“Well…” Li Shenggang looked hesitatingly at friends, who were having fun. He hardened his heart, thumped his chest and said: “Boss, don’t worry about it.”
“I like that you’re not worried,” Huang Xuan encouraged him in his unique way. “How’s the cash flow? Are there any problems?”
Since Huang Xuan asked, Li Shenggang answered, “Boss, the factory’s energy usage has been over the roof lately. I checked the facilities and there doesn’t seem to be anything wrong. I even asked the elders if it was due to our old machinery. We used to only need slightly more than 10,000 kWh. Now, we need at least 25,000 kWh. If this goes on, we’ll incur even more losses.”
That’s necessary loss, Huang Xuan thought. Because they returned home, they’ve already used up all their petroleum in Brazil. They could only improve these electrolytic aluminum plants if they wanted to ease their needs. Huang Xuan softly replied, “You don’t have to worry about these problems anymore. Do as I said before, ship all of the aluminum ingots to Brazil and then look for a delivery company to handle it from there.”
“Understood, understood.” Although Li Shenggang didn’t fully understand, he nodded profusely.
“That’s good. Work hard.” Huang Xuan hung up.
Rolin, who was plugged into an energy source, worked tirelessly. He quickly contacted Li Qing, who had been sleeping deeply. Huang Xuan called out to him twice before he said, “Big Brother Qing, thank those professionals for me first thing tomorrow morning. Then, ask them to do something else for me. I need the same thing as the last time, except this time its for the car models from the ’20s and ’30s. I don’t need all of them, I just need whichever ones are convenient to draw, but the more the merrier.”
Li Qing was shocked awake by this request. He had seen for himself how the professionals had done their research and edited the diagrams. Before he could reply, Huang Xuan continued, “At the same time, ask if any of them know how to draw diagrams of aircraft’s. I want models from the ’20s and ’30s as well. I just need one for now. If none of them know, look for other professionals, you can ask my mother for help.”
This time, Li Qing was fully awake. Although he hadn’t studied aerospace engineering, he knew that aircraft’s were far more complex than cars. Once again, before he could reply, Huang Xuan hung up.
Li Qing stared at the receiver, glanced at the clock above-head, and knitted his eyebrows.
________________________
Leslie arrived at the factory very early. His hair, which he had carefully styled using lard, reflected the light. Just like his slightly protruding belly, it displayed the man’s joyful mood. Behind him, two trucks carrying different types of chemicals followed.
Hans called Huang Xuan into the workshop. Huang Xuan was rubbing his temples. He had been running tests the whole of the previous day. Although there were no more problems, background noise couldn’t be avoided. The new and improved printer looked no different. Rolin changed the main controlling part into an electronic counterpart. People from that age likely would not be able to understand the difference.
Leslie beamed as he looked at Huang Xuan. He took out two telegrams and happily said, “You actually know Mr. Ford and Mr. Sloan. I received a telegram from Ford and GM, they’re both addressed to you.” When he said “Mr. Ford”, he was referring to Edsel Ford.
Huang Xuan smiled as he retrieved the telegrams. They had obtained the address from the Fighting Veterans Security Company. As he exchanged pleasantries with Leslie, he tore open the telegrams. They were largely similar. Ford had invited him to Hilton Hotel for a meeting. GM had invited him to Peters Hotel instead. They even added that they had “something” he’d be “interested in”.
It looked like the Citroen TA was more desirable than the V8. Huang Xuan thanked Leslie once more, before he walked him out of the factory. This old Californian was talkative, especially with people who could pay him cash. His mouth moved as fast as an F1 racing car, and it worked endlessly.
After he walked Leslie out, Huang Xuan stood by the factory gate. He tilted his head and recalled the information he had seen previously. He thought hard.
According to his plan, selling a second diagram, or more diagrams, was not to earn more money. With his factory, he could manufacture bank notes that looked no different from the genuine ones. However, to avoid trouble, especially with huge deals that went through the bank, one needed to report a reasonable source of the income.
Of course, the source of the diagrams was problematic. However, they were hidden behind Ford. Unless Ford’s father and son were willing to risk being accused of stealing them, they were going to find an excuse for themselves. Huang Xuan was familiar with the way business worked – it was similar to the way Huang Family Fund worked.
He only needed to lay low for a week. He hoped that the authorities would not cause trouble for him during that time. The way he saw it, it was worth sacrificing a little more or benefiting a little less.
“Hans!” After he recovered from his thoughts, Huang Xuan looked up and shouted. The lieutenant’s reaction was quick. He stood upright immediately, causing Huang Xuan to have to stifle his laughter. Some tension left Huang Xuan’s body.
“Look for a car, we’ll head to the Hilton. Also, get someone to send a telegram to GM. Tell them look for me there.”
“Alright.” Hans found Huang Xuan a cab. It was an old T-type car, but the inside was spotless. The driver was dressed up and extremely courteous. From 1907, New York’s rental cars were automated. They charged a metered fare. Huang Xuan was fascinated by the car he was in – one that could only go 30 km/h. If he wanted to sit in a car like this in modern times, it would cost more than a luxury cruise.
They arrived at the Hilton.
Huang Xuan didn’t use the suite that Ford had booked for him. Instead, he registered at the counter for a business room. He had Hans invite Ford and GM’s representatives to the room.
Ford essentially sent a negotiation team to New York. Their main representative was the director of sales, Stephen. His assistant was the creative director, Kent. Apart from them, there were 50 odd more employees.
On the other hand, GM sent far fewer people. Their importance, though, were equal. The Chief Executive Officer, Sloan himself, flew to New York. Although he was not a major shareholder of General Motors, like the Ford father and son were of Ford, he was to be the General Manager for a total of 25 years. Alfred P. Sloan was still the most influential person in General Motors.
The importance that both companies placed on this deal was understandable. Ford’s V8 was to be released in one and a half years. The Citroen’s TA was to be released four years later. In that time, it was considered to be a design that was way ahead of its time.
Huang Xuan lifted his head high and stared ahead. His body language was saying to the people around him that he was ready to listen to their offers.
Stephen quickly adapted to Huang Xuan’s recklessness. He retrieved Senior Ford’s proposal: purchased the whole set of diagrams at USD$450,000, and directed professionals to lead production until the first batch of TA’s were on the market.
“How much are you guys willing to pay now?” Huang Xuan was more concerned with the money he could make now. It was impossible for him to wait until Mr Ford completed production of even just one of the components.
“USD$100,000, Sir.” Stephen turned to look at Edsel and said, “We’ll pay USD$100,000 more each month. If we’re not able to produce the car in three months, we will delay payment of the last USD$150,000.”
“Then forget it,” Huang Xuan waved his hand. “We’ll use my proposal: You’ll pay me all of the USD$300,000 in exchange for all the diagrams.”
Stephen was about to bargain further, when Sloan turned his body to face Huang Xuan and interrupted, “$300,000 it is.” He reached out to shake Huang Xuan’s hand.
In a few minutes, he had gotten Huang Xuan’s undivided attention. Huang Xuan was slightly taken aback. However, it was all going according to plan. He blinked, shook Sloan’s hand and said, “Deal.”
Stephen looked at the two in shock, as if unable to believe that the past two days of travel and hard work had gone down the drain. Before he could react, Huang Xuan smiled at him apologetically and said, “Is Ford interested in other models?”
“Of course.” There seemed to be a way to turn back. Stephen grasped the chance immediately.
“You’ll have to wait for one more hour.” Huang Xuan glanced at his watch and continued, “The diagrams are on the way. They’ll only arrive later. Until then, we can negotiate other deals.”
Stephen had just heaved a sigh of relief when Sloan said, “Mr Huang, are we dealing in cash or through bank transfer?”
“Bank transfer,” Huang Xuan smiled. There was no simpler way to forge good relations with banks than by saving. Similarly, there was no organization more willing to forge good relations with American companies than banks.
He looked at the dissatisfied creative director of Ford. Smiling slightly, he said, “Mr Kent, are you unhappy with the previous set of diagrams?”
“It doesn’t clearly explain the feasibility of your design…” Kent’s words were more polite than the previous time. Huang Xuan hesitated to reply when he saw Stephen kick Kent under the table.
The atmosphere turned cold. It seemed that this was one of the few times that the two executive level competitors could sit opposite each other. Surprisingly, Sloan was the one who tried to ease the tension. He said, “Where do you want us to transfer the money to?”
“Chase National Bank.” Huang Xuan had already thought of this before.
This bank had just made it into the top four American banks, and was obviously popular among the masses. However, to the Chinese, everyone in the bank, like John D. Rockefeller Junior, had a special sense of familiarity. His father, John D. Rockefeller Senior, the founder of Standard Oil, was well-known as well.
The Chase National Bank was the predecessor of Chase Manhattan Bank, the financial pillar of the Rockefeller group. Rockefeller junior founded the fair trust company a couple of years before. He used this as a base to acquire Chase. In the end, he gained complete control over the board. It was one of his most profitable deals. Through this bank, he had also obtained shares in General Motors.
This was one of the banks that Sloan was most familiar with. He misunderstood that Huang Xuan had already looked up on both companies. He could barely stifle his smile.
Compared to the ever-calculative Mr Sloan, Huang Xuan was more unsatisfied with the unequal bargaining strength of the parties. However, this was already a huge improvement for him. Thinking about dealing with one of the world’s most elite executives was enough to comfort the 16-year-old Huang Xuan.
Ford’s representatives seemed to be downcast. Huang Xuan mindlessly struck up a conversation with Stephen. Sloan interrupted intermittently. The three looked as if they had just formed a friendship. However, in reality, if Kent could show his true colors, he would have stormed out of the room long ago.
The meaningless chatter went on for a full hour. Hans and his men finally arrived with the diagrams. Sloan instructed his subordinates to check the diagrams as he smiled at Huang Xuan and asked, “Shall we go to the bank now?”
“No hurry,” Huang Xuan grinned knowingly. “Do you know Hammer? Armand Hammer.”
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