Chapter 211: Heading To The United States, Future Thinking: Acquisition, Restructuring, Speculation
Yangon high-power telegram antenna emits radio waves, crossing the Pacific Ocean, transmitting to the United States.
These telegrams were respectively sent to different regional telegram offices.
The recipients of the telegrams reacted differently.
Las Vegas Taishan Casino Company.
Taishan Casino Company, after one year of operation, is thriving.
Fang Wen laid a solid foundation; this legitimate gambling enterprise, uniting gangs, Las Vegas locals, state senators, judges, and other interest groups, has been smooth sailing, with everyone making money and jointly maintaining it.
Zhao Jiu’s days are leisurely; he mainly oversees the big picture, eases internal conflicts, and steps in as a peacemaker when interest disputes or other conflicts arise.
Even so, he is respected by all interest groups of Taishan Casino Company.
But Zhao Jiu knows clearly that this is an unstable company, and the only chance for it to land steadily is to get it listed.
For this, Zhao Jiu has been preparing, but it’s still a bit short.
That day, he received a registered telegram.
After reading it, he immediately stood up and rushed out of the office.
He found Al Capone, a person in the company with close interest ties to him.
With Al Capone, Zhao Jiu hid nothing.
“The general manager bet on a big rise in silver prices. Silver in the United States did rise, but they imposed a 50% income tax on silver trading. Now, unless the Ministry of Finance purchases the silver we transport, trading it on the market will result in losses.”
Al Capone had lived comfortably this past year; the weight he lost in prison had grown back.
Upon hearing it was about Fang Wen, he paid special attention.
“Regarding silver, we’ve discussed it too. We have ways to make the Ministry of Finance purchase silver; after all these years, those people have handles on them that we can use as bargaining chips. The problem is we can’t get large amounts of overseas silver past the customs patrol to the U.S. mainland.”
“So, as long as the silver is smuggled in, you can solve the rest?” Zhao Jiu asked in surprise.
“Exactly, 80% of the Ministry of Finance purchase price. If that’s acceptable, they’ll be willing.” Al Capone stated the mafia’s asking price—not high, not low; 20% profit without risk, worth it.
Zhao Jiu immediately sent this situation back via telegram.
Meanwhile, in New York, a radio wave was similarly sent to Yangon.
Radio waves went back and forth, continuously communicating.
Through contact with the other side of the ocean, Fang Wen gradually made a decision; as expected, Americans understand the US Government better, and their approach is more suitable.
He already had a plan in mind, knowing that in this silver storm, he must both utilize the rules and cleverly circumvent restrictions to maximize his interests.
He immediately summoned team members: Shopkeeper Liu, Fang Shouxin, Sun Debiao.
“On silver, the Americans have taken precautions; through high income tax, they control overseas silver inflow, and it can only be procured by the US Ministry of Finance. We need to find another way to sell silver to the Americans,” Fang Wen said firmly, “Since direct sales are blocked, we’ll open a covert channel, evade customs, and transport silver to the U.S. mainland.”
“How?” Sun Debiao asked.
“I need an American fleet to avoid the customs patrol.” Fang Wen replied.
“Where to find such a fleet to cooperate with us?” Shopkeeper Liu shook his head.
“I thought it impossible at first, then I contacted the U.S. side. Do you remember I have two investment brokers in the United States?”
Shopkeeper Liu, Fang Shouxin, and Sun Debiao all nodded; they knew about this.
Fang Wen continued: “I telegraphed them asking if there were American fleets running to the Far East or Europe. They said yes; this company misjudged the situation, holding large amounts of US Dollars, and after devaluation, couldn’t repay debts, entering bankruptcy liquidation. It’s listed on the New York Stock Exchange, stock price down to 1 cent; acquiring all shares costs only 1000 US Dollars, yet no one dares take it. If we acquire this company, we’ll have a means to transport silver.”
On this, Shopkeeper Liu, Fang Shouxin, and Sun Debiao said nothing; they were absorbing and digesting what Fang Wen said.
After a while, Shopkeeper Liu asked: “How much debt does this company have?”
Fang Wen took out a piece of paper and handed it to Shopkeeper Liu: “This is the company’s situation: 5 million US Dollars in debt.”
Shopkeeper Liu manages all accounts of Taishan Airlines; he has also learned Western finance and is familiar with the data Fang Wen wrote.
He looked while calculating, finally giving his conclusion.
“General manager, this company owes more than 5 million US Dollars; their ships still have unpaid payment for goods, plus freight breach penalties. Actual debt is 7 million US Dollars, while company assets are just two 5000-ton cargo ships, worth 1.4 million total. If you buy this company, net loss is 5.6 million US Dollars.”
A loss of 5.6 million US Dollars?
Fang Wen didn’t back down, asking: “Then calculate how much we can earn transporting silver from the Swiss silver vault to the United States and selling at 80% of market price.”
Shopkeeper Liu took out an abacus, rapidly calculating; after a while, he got the result.
“Current US purchase price for silver is 0.6 US Dollars per ounce; we stockpiled at 0.40 US Dollars per ounce, profiting 50%; after deducting 20% sell price, actual profit is 5 million US Dollars.”
“The US Government caps purchase price at 1.2929 US Dollars per ounce; assuming silver rises to 1 US Dollar per ounce, how much can we earn?” Fang Wen asked.
“At 1 US Dollar per ounce, we can earn over 19 million.” Shopkeeper Liu replied.
This calculation made the business seem viable.
But Fang Wen wasn’t finished.
“Taishan Casino Company’s NYSE listing application has always been rejected; though all requirements are met, they still deny it saying gambling companies don’t serve public interest. But they can’t stop a listed company from acquiring Taishan Casino Company.”
Fang Wen revealed future capital operation tactics.
Shopkeeper Liu, Fang Shouxin, and Sun Debiao didn’t understand.
Sun Debiao completely didn’t: “General manager, listing means paying the exchange; buying a bankrupt company costs money, then using it to acquire Taishan Casino Company costs more—is it worth it?”
“Worth it.” Fang Wen smiled; nothing is more worthwhile than acquiring shares at 1 cent and selling for 100 US Dollars.
But all shares can’t be bought by one person alone; that wouldn’t make it a stock company.
Many shell companies must be established—not under his name but actually controlled by him—to jointly purchase all shares.
This way, the capital game can continue.
But knowing it himself isn’t enough; he must explain this future thinking to his subordinates so they can cooperate to complete the entire plan.
Fang Wen continued explaining.
“We must not only see immediate losses and profits but also long-term layout and future returns. Though Taishan Casino Company failed to list temporarily, its value goes far beyond. By acquiring a bankrupt company, we can indirectly let Taishan Casino bypass the exchange’s direct restrictions, achieving backdoor listing.”
“As for costs,” Fang Wen continued analyzing, “though initial investment seems large, we calculate overall returns. First, low-price acquisition of the bankrupt company gets us valuable shell resource cheaply. Second, using this shell to acquire Taishan Casino pushes casino business to capital markets legitimately; as the only gambling company on NYSE, investors’ demand can only buy our stock, also operating to boost overall valuation.”
“Moreover,” Fang Wen’s eyes gleamed shrewdly, “when silver prices rise as expected, our stockpiled silver becomes huge profit. This not only covers acquisition costs but brings substantial cash flow, supporting expansion in other areas.”
“Regarding offshore companies,” Fang Wen looked at Shopkeeper Liu, “I need a series of complex equity structures, ensuring these offshore companies operate independently yet under our control. Thus, in acquisition, we disperse holdings to avoid regulatory agency notice, while timing capital operations for maximum interests.”
Shopkeeper Liu nodded upon hearing, indicating understanding and willingness to take on this task. He knew such capital operations require precise calculation, judgment, high secrecy, and flexible operation.
Though Fang Shouxin and Sun Debiao were still puzzled by specific capital operation details, they had full confidence in Fang Wen’s decision-making. They believed following him would lead to an extraordinary path to success.
Thus, Fang Wen began arranging follow-up plans. He first instructed Shopkeeper Liu to quickly complete offshore company setup and equity structure; meanwhile, he contacted Taishan Casino Company management to pave the way for future acquisition.
Late June 1934.
Shopkeeper Liu, flying back and forth by airplane, brought good news.
He mainly ran to the British Commonwealth, registering independent companies for different businesses in various British Commonwealth regions.
These companies, belonging to one system, became verifiable legitimate companies after half a month’s British Commonwealth business organization info update.
But actually, they are all shells; transfer funds in when needed, out when not.
This is the best overseas company model; NYSE can get accurate info via telegram to London.
With these companies, Fang Wen could act.
This time, he didn’t pilot the airplane but took a passenger ship, as that would leave entry-exit evidence proving he came to the United States alone, with no collaborators.
After two weeks sailing on the sea surface, the passenger ship arrived at New York harbor.
Fang Wen disembarked among the passengers.
They underwent entry checks, everyone holding identification.
Fang Wen did too, holding a Republic of China Government-issued passport.
The passport had many stamps and signatures, representing countries he visited.
Staff took the passport, opened it, stared at the dense stamps, and asked: “Have you been to all these countries?”
“Yes, I’m a pilot.”
Fang Wen’s explanation dispelled the staff’s doubt; in these times, two kinds of people have such passports: sailors and pilots.
Taking back the passport, Fang Wen carried his box out of the check room; his first task was to make a telephone call.
At a public phone booth, he took out a coin and dialed the number.
After a brief wait, a woman’s voice came, along with children’s joyful shouts.
“Is this Marie? I can’t go to church today; my child is ill.”
“I’m not Marie. Please tell your husband that a friend from the East has arrived; if free,” Fang Wen paused, looking at a distant hotel sign: “ask him to come to Crown Hotel to find me.”
“Okay, I’ll tell him when he returns.” The woman hung up.
Fang Wen hung up and left the booth, heading straight to Crown Hotel.
He booked a single room, went nowhere else, and waited in the room.
At 5 p.m., the door was knocked.
Fang Wen opened the door to find Indiana.
The two smiled at each other and gave an American hug.
Patting each other’s shoulders, Fang Wen said: “You know, whenever I seek you, it’s for something.”
“Yes, but I always benefit.” Indiana smiled back.
They entered the room and sat in the single room’s only two chairs.
“This time, it’s big; you can choose to join or not.” Fang Wen smiled and asked; this questioning tested Indiana and their relationship.
Indiana rubbed his hands, looking up at Fang Wen.
He had an illusion.
Left ear whispered: “Don’t join; he’s a devil—can’t you see? Only devils are so mysterious and powerful.”
Right ear whispered: “Join him; all you have is from him. Without him, you’re still in Tehran. He’s your angel.”
As the illusion faded, Indiana decided.
“I join; now you can say it.”
Fang Wen smiled: “Heard of the Silver Purchase Act?”
Indiana nodded: “Yes.”
“I have a large batch of silver. But the Silver Purchase Act is unfriendly to us foreigners. I need some means to realize my plan.”
Here it came, the angel and devil’s plan.
Indiana, having seen Fang Wen’s plans before, was always amazed; this time too.
With excitement, Indiana stayed silent, listening.
Seeing Indiana quiet, Fang Wen continued: “I plan to acquire a soon-bankrupt listed company, then use its ships to smuggle silver.”
“Now all silver in the United States can only trade with the Ministry of Finance; you transport it, then make it legal to sell to the Ministry of Finance?” Indiana asked.
“I have no way, but the mafia does. Rumor has it in old days, the mafia did much for councilors; now these mafia unexpectedly buy silver at 80% price, wanting councilors to repay past favors—having the Ministry of Finance purchase this batch is the best return.”
Hearing this, Indiana exclaimed: “You succeeded again; this will work.”
“I’m not done.” Fang Wen replied.
