Think and Grow Rich

Chapter 10 Faith: Imagine Success and Believe That Dreams Come True (3)
As early as a generation ago, the amalgamation of thousands of small or poorly run companies into large, hypercompetitive corporations had been attractive, and through the shenanigans of that business thug John Gates, began to gain ground in the steel industry as well. play to its financial charm.Gates has merged many small companies into the U.S. Steel and Cable Company, and he also co-founded the Federal Steel Corporation with Morgan.The National Pipeline Company and the American Bridge Company are two companies under Morgan's command, and the Moore brothers also gave up the match and biscuit business and founded the National Steel Company, which integrates the production of tinplate, iron hoops, and steel plates.

But those small mergers paled in comparison to another huge linear trust led by Andrew Carnegie and run by 53 partners.Those small companies could merge as they pleased, but even so, they did nothing to weaken Carnegie's power, and Morgan was well aware of that.

The eccentric Scottish old man knew this too, amused at first, then resented, as he stood atop the imposing Schiphol Castle and watched Morgan's small firms eagerly trying to infiltrate his business.As Morgan's attempts grew, Carnegie began to feel angry and vengeful.He decided to copy every factory owned by his opponent.Before, he had no interest in cables, pipes, wires or steel plates, and was only satisfied with selling raw steel to those companies, who then processed the raw materials into the finished products he wanted.But now, with Schwab in his rightful place, he intends to knock the enemy down for good.

It was through a conversation with Charles Schwab that Morgan found the answer to the merger problem.A writer once said that a trust without a Carnegie is no more a trust than a fruit pudding without the nuts on it.Charles Schwab's speech on the evening of December 1900, 12, undoubtedly conveyed the idea that the huge Carnegie enterprise could be brought under Morgan's umbrella, but it was not a guarantee.He spoke of the world's future demand for steel, of reorganization of efficiency, of specialization, of cutting down on stagnant factories and concentrating on thriving industries, of cost savings in ore transportation, of savings in management and administration costs, and also talked about how to control overseas markets.

Besides, he pointed out what was wrong with the plundering practiced by some of the business thieves among those present.Schwab speculates that their purpose is nothing more than to form a monopoly, drive up prices, and use privileges to reap huge profits for themselves.Schwab strongly condemned the practice.The downside of this policy, he told the audience, was that it limited the ability to develop markets on a large scale in an era of pioneering.Schwab believed that by reducing the cost of steel, an expanding market could be created.In addition, it is also a good choice to develop multiple uses of steel in various aspects, so that merchants can occupy an advantageous position in the field of world trade.In fact, without realizing it, Schwab was advocating precisely modern mass production.

Thus ended the dinner at the University Club.Morgan returned home, contemplating Schwab's rosy outlook.Schwab returned to Pittsburgh to run the steel business for "Carnegie," while Gary and the others went back to stock trading, waiting for the next move.

None of them had to wait long.Morgan spent about a week weighing Schwab's arguments.When he was sure that there were no bad financial consequences, he sent for Schwab to talk, but found the young man very shy.Schwab said Mr. Carnegie might not be happy if he found out that his most trusted corporate executives were associated with Morgan.Because Carnegie once made up his mind never to deal with people on Wall Street.Then go-between John Gates offered a compromise: If Schwab "happened" to be at the Bella Vista in Philadelphia, Morgan might just happen to be there too.But when Schwab arrived at the hotel, Morgan was nowhere to be found, bedridden at his New York home.So, under the repeated invitation of the old man, Schwab came to New York and had talks in the financier's study.

Some economic historians now claim that they believe Andrew Carnegie directed the entire play—from Schwab's famous speech at a dinner he was invited to Sunday night with the financier. The talks are all plots arranged by this cunning old Scottish man.The truth is quite the opposite.When Schwab was brought in to close the deal, he didn't even know that "Little Bosses" (as Carnegie was called) would take the advice of selling, especially to a group of people that Andrew didn't think were inherently noble enough.Schwab did, however, bring with him to the talks the figures written in Andrew's own handwriting, six pages of figures representing the real value and profit potential of each steel company in his mind.He saw these companies as the brightest stars in the new metal industry.

The four studied it all night, led by Morgan, of course, who firmly believed in the sacred rights of money.His partner, Robert Bacon, was a scholar as well as a gentleman.Followed by John Gates, Morgan ridiculed him as a speculator, but also just to take advantage of him.Then came Schwab, who knew more about steel making and selling than anyone else at the time.Throughout the talks, they never questioned the numbers brought out of Pittsburgh.If Schwab says what a company is worth, then it is worth that much.He also insisted on acquiring only the companies he designated. According to his vision, there should be no repeated settings. Even if his friends wanted Morgan to buy their companies, Schwab would not agree.Soon, all the work came to an end, and they have completed the planning and design of several large-scale companies, which are enough to make the elites on Wall Street sigh.

At dawn, Morgan stood up and straightened her back.Now there is only one problem left.

Morgan asked, "Do you think you can convince Andrew Carnegie to sell the company?"

"I could try it," Schwab said.

Morgan went on: "If you can convince him to sell, I'll do it."

So far, things are going fairly well.But is Carnegie willing to sell his company?How much will he ask for in return? (Schwab thinks it's worth about $3.2 million.) What kind of payment will he accept?Common stock or preferred stock?bond?cash?No one can raise more than 3 million in cash.

In January, Schwab and Andrew played a round of golf on the frosty heath of St. Andrew's Golf Course in West Chester.While Andrew wrapped himself in a sweater to keep out the cold, Schwab, as usual, spoke at length to cheer himself up.But no one mentioned business matters.After playing, the two came to the nearby Carnegie Farm and sat in a warm and comfortable room.Schwab used the persuasive power to overwhelm the 80 millionaires of the University Club, and tried his best to describe the comfortable retirement life and countless wealth to lobby Andrew to satisfy the old man's social vision.Carnegie capitulated. He wrote a number on a piece of paper, handed it to Schwab, and said, "This is the price I want."

This number is US$4 million, based on the US$3.2 million proposed by Schwab, plus an estimated value increase of about US$8000 million in the next two years.

Later, on the deck of a transatlantic passenger ship, the Scot said regretfully to Morgan: "If I had known this, I should have asked you for an extra $1 million."

"If you really wanted it, you'd already have the $[-] million by now." Morgan replied happily.

Of course, as soon as this remark came out, there was a burst of laughter.A British journalist reported that the foreign steel industry was "shocked" by the massive merger.Hadley, the president of Yale University, said that if the behavior of trusts is not immediately regulated, "in the next 25 years, an emperor will be born in Washington." The false value (some estimate about $6 million) was absorbed in the blink of an eye.So Carnegie got his millions, the Morgans got $6200 million in the "chaos" and all the "bros" from Gates to Gary got millions generous returns.

The 38-year-old Schwab also got a corresponding reward.He was named president of the new group of companies, and he remained in charge of the company until 1930.

The story of this big deal is included in this book because it is a perfect example of how desire can be turned into a real-world equivalent in practice.

I guess some readers may have doubts in their hearts - can a pure intangible desire be transformed into a corresponding objective reality?No doubt, someone might say: "You can't convert a virtual world into reality!" The answer lies in the story of the founding of the US Steel Corporation.

This vast institution was born within a single person.By organizing systematically, this man conceived a plan to consolidate other steel plants and make them financially stable.The plan was also born in the heart of the man whose confidence, his desire, his imagination, and his perseverance were the real ingredients that made U.S. Steel Corporation.After the legal establishment of the company, the iron and steel plants and machinery it acquired were incidental, but a careful analysis will reveal the fact that only the move of combining the plants and placing them under unified management is Increase the value of each factory acquired by the company by about 6 million US dollars.

In other words, Charles Schwab's idea, plus the confidence he had in conveying it to Morgan and others, earned him some $6 million in profits.That's not a small amount for an idea!

We don't care about the proportion of these people's profit distribution in this billion-dollar transaction.The most important feature of this world-renowned successful merger and acquisition case is that it proves beyond doubt that the ideas described in this book are correct, because these ideas are precisely the basis of its success!In addition, due to the rapid development of the United States Steel Corporation in the future, it has become one of the most financially and powerful companies in the United States, with thousands of employees, independently developed new uses of steel and opened up new markets.Thus, further proof of the value of the huge $6 million profit generated by Schwab's ideas!
Wealth originally came from a thought form!Turn only thought into action, and the amount of wealth is limited.

Faith lifts the limits!Remember this when you are ready to take from life, whatever you ask for, and if you do this successfully, you can get what you want with satisfaction.

Also, keep in mind that the founder of U.S. Steel was not a big name, he was a nobody.Before putting forward his own ideas, he was just a "right-hand man" of Andrew Carnegie.But he quickly gained power, fame and fortune through his ideas.

Ideas have no limits, whether poor or rich, all come from ideas!

(End of this chapter)