The New York Stock Exchange had truly become a battlefield.
Over the next week, Pennsylvania Railroad stock became the singular focus of all of Wall Street.
Its price, under the insane collision of two massive capitals, rose continuously and irrationally in a way no one could understand.
"Thirteen dollars! Someone is offering thirteen dollars!"
"Thirteen dollars and twenty cents! Patriot Investment Company wants it!"
"Thirteen dollars and fifty cents! Mr. Sloan's broker wants it all!"
In the exchange hall, the brokers' voices were already hoarse, their faces a mix of greed, excitement, and fear of the unknown.
They didn't know where this war would end, only that every second, tens of thousands of dollars were either vanishing into thin air or flowing into some unseen pocket in this massive gamble...
The top-floor suite of the Fifth Avenue Hotel had become Sloan's war command center.
He was like a red-eyed gambler, guarding the ticker tape machine day and night. The floor was littered with cigar butts and empty whiskey bottles. His always meticulously combed hair now looked a bit disheveled.
"Charles," he said, pointing to the price just printed on the ticker tape, his eyes bloodshot and filled with a morbid frenzy, "Do you see? Fourteen dollars! We've pushed the price to fourteen dollars! That Argyle kid, he's paying five times more for every share he buys than before!"
His assistant, Charles Thorne, looked at the capital expenditure report just delivered by the accountant, his face filled with deep worry.
"Sir," he began with difficulty, "We... we have already invested over two million dollars in cash. Our funds are almost depleted, and the banks... they have started to express concern about our large-scale capital movements."
"Concern?" Sloan scoffed, "They'll soon understand that I'm clearing out a future enemy for them! What's two million dollars? That Argyle kid, he's invested no less than I have, only more!"
Sloan was completely immersed in his fantasies of revenge.
In his view, this was no longer a war about stocks, but a test of willpower. He firmly believed that as long as he could hold out for one minute longer than his opponent, that young upstart, with his shallow foundation, would inevitably collapse due to a broken capital chain.
He simply failed to notice that as he frantically threw piles of cash into the market's furnace, the stocks he bought at high prices were continuously flowing from the enemy's hands to him through countless secret channels...
Meanwhile, in Felix's study.
Tom Hayes personally came to give Felix his daily routine report. His face carried an expression that only the most top-tier financial manipulators, after completing a perfect scam, would show, a mix of exhaustion and satisfaction.
"Boss," he said, placing two completely different ledgers in front of Felix, "These are the inflow and outflow data for this week."
Felix picked up the first ledger, which was Patriot Investment Company's public account.
"As per your instructions," Hayes explained, "over the past week, we adopted a very aggressive stance and purchased a total of fifty thousand shares of Pennsylvania Railroad stock. The average purchase price was thirteen dollars and twenty-five cents. On paper, we paid over six hundred and sixty thousand dollars in cash for this."
Felix nodded; this figure was enough to make any company wince.
Then, he opened the second ledger. These were the accounts of those several secret trust accounts.
"And on this side, we capitalized on the heated market and sold a total of two hundred thousand shares of stock that Sloan had previously acquired at low prices. The average selling price was thirteen dollars."
"Which means, we used Mr. Sloan's own money to buy back fifty thousand shares of our own stock. At the same time, our secret accounts also gained an additional one million seven hundred thousand dollars in pure cash profit."
Edward Frost stood by, feeling as if his brain was about to stop working.
All the theories of classical economics he had learned at Yale University seemed so pale and naive in the face of this capital-slaughtering war, full of deception and calculation.
"So... we essentially used Sloan's money to pay for our own acquisition costs. And then we still made a net profit of one million seven hundred thousand dollars from him?" Frost's tone was filled with disbelief.
"You could say that, Edward," Felix said, raising his glass, "However, I prefer to call it... a successful risk hedge."
"Tom, it's time to reel it in."
...That afternoon, at the New York Stock Exchange.
Just as Pennsylvania Railroad's stock price, driven by Sloan's frantic push, was about to hit a historical high of fifteen dollars.
Patriot Investment Company announced that the difference between Pennsylvania Railroad Company's stock value and its actual company assets was too great, and it would no longer participate in the investment.
This was followed by a massive selling wave, which surged out without warning from those obscure trust accounts from Philadelphia and Baltimore!
Tens of thousands of sell orders, like a breaching flood, instantly overwhelmed Sloan's fragile dam built of money.
"What's going on?!" Sloan roared in terror from his suite at the Fifth Avenue Hotel, "Who's selling?! Who?!"
No one could answer him.
Because immediately afterward, another equally massive selling force joined the feast.
"Boss," Johnny reported from Hayes's office, "That mysterious third party... Vanderbilt's people, they've also started selling! They've dumped all the chips they accumulated at high prices!"
Sloan's defense line collapsed instantly.
Within just half an hour, the stock price plunged like an avalanche from a high of nearly fifteen dollars back to five dollars, and was still falling.
And Sloan's investment of over two million dollars was firmly trapped on that ridiculous peak.
That night, when the final statistics were in, Tom Hayes placed a report in front of Felix.
"Boss, the plan is complete."
"We ultimately, at an almost negligible cost, increased Patriot Investment Company's holdings in Pennsylvania Railroad from thirty-two percent to forty percent."
"At the same time, our accounts have an additional one million nine hundred thousand dollars in cash."
Felix nodded, clearly very satisfied with the result.
Just then, Frost handed over an encrypted telegram that had just arrived from Philadelphia.
The telegram was from young Matthew Becker, and the content was very simple.
"Mr. Argyle:
I am ready here."
Philadelphia, the annual shareholders' meeting of the Pennsylvania Railroad Company, commenced punctually in the grandest conference room of its headquarters building.
An unusual tension permeated the air.
Unlike the harmonious, perfunctory routine meetings of previous years, this year's conference room was distinctly divided into two invisible camps.
One side was led by Chairman J. Edgar Thomson and his confidant, Director Patterson, representing the 'masters' of Philadelphia's old guard.
Their faces bore an arrogant, forced composure, but a hint of anxiety was hard to conceal deep within their eyes.
The other side consisted of Felix and Tom Hayes.
They sat quietly in the first row of the shareholders' section, as if they were merely two ordinary investors attending as observers. But behind them sat Matthew Baker and his son, the banker Harrison, and several other directors and small to medium shareholders who had been successfully swayed by Baker and his son over the past two weeks. They formed a silent, yet deadly, new alliance.
"Gentlemen," Chairman Thomson cleared his throat and, in his usual tone, declared the meeting open.
"Before we proceed with the routine annual financial report review, I have an urgent motion concerning the company's future development that I need to announce to all shareholders."
He deliberately paused, allowing everyone's gaze to focus on him.
"As you all should know," he said slowly, "our company, and indeed the entire eastern railroad industry, has recently suffered some unfair attacks from New York forces. To better address future challenges, and to strengthen our company's close ties with the New York financial community, I hereby formally nominate an outstanding individual with extensive experience in railroad management and capital operations as a new member of our Board of Directors."
He turned towards the conference room door.
"Let us welcome—Mr. Sloan!"
As he spoke, the heavy oak doors of the conference room were pushed open. Sloan, dressed in a well-tailored black suit, slowly walked in amidst a chorus of astonished gazes. Though he appeared somewhat haggard, his face bore the distinct expression of a revenger.
The entire conference room instantly erupted into an uproar!
"What? Sloan? Is Thomson insane?!"
"He wants to invite that loser, who was just investigated for alleged treason, onto our Board of Directors?"
Thomson wanted this chaos. He knew that Felix Argyle' greatest weapon was his moral halo of "patriotism" and "efficiency." Bringing in Sloan, who also carried a "stain," was meant to thoroughly muddy the waters. He wanted this war to become a dirty, no-holds-barred struggle where everyone would be implicated.
"Quiet!" Thomson pounded on the table. "Although Mr. Sloan has encountered some temporary difficulties, he remains one of the most outstanding railroad managers in this country! His addition will greatly enhance our strength in resisting external hostile takeovers!"
He then looked at Felix, his eyes full of provocation.
To his surprise, however, Felix's face showed no anger or surprise. He simply nodded calmly to Tom Hayes beside him.
Hayes stood up.
"Mr. Chairman," his voice was not loud, but it clearly cut through all the murmurs in the room, "before we vote on this... interesting nomination, on behalf of the company's largest shareholder—Patriot Investment Company—I also have an urgent motion that needs to be addressed first."
"I request," Hayes looked at all the shareholders present, "that before electing any new directors, an independent audit report on the company's 'procurement costs and operational efficiency'—urgently completed by a third-party accounting firm at the joint request of Board Member Mr. Matthew Baker, Mr. Harrison, and several other directors—be presented to all shareholders."
This request was reasonable and in line with the company's articles of association. Thomson's expression changed for the first time.
Before he could object, young Matthew Baker had already stood up and distributed copies of the prepared report to every shareholder.
The contents of the report were like bombshells.
It revealed, with the most detailed and irrefutable data, how Thomson and Patterson, among others, had canceled cheap contracts with Becker Foundry and instead signed high-priced procurement agreements with a new factory in Delaware owned by their relatives. This scheme had caused the company's operating costs to increase by over one hundred thousand dollars in the past six months.
The end of the report also included an assessment of additional losses, amounting to tens of thousands of dollars, incurred by the railroad transportation due to two delivery delays caused by the new factory's immature technology.
"Thomson!"
"Patterson! You must give us an explanation!"
This time, it was not Felix who was angry, but the small and medium shareholders whose real money had been lost.
They looked at the shocking figures in the report, and at the ashen faces of Thomson and Patterson, and they knew they had been betrayed.
Amidst this chaos, Felix finally slowly stood up.
He did not look at the angry shareholders, nor at the panicked old directors. His gaze simply rested calmly on the Chairman, who had been trying to control the situation ever since he walked into the conference room.
"Gentlemen," Felix's voice quieted the entire room, "today's agenda is not whether to accept a loser—who just lost his own company due to mismanagement and alleged treason—onto our Board of Directors."
"The real agenda today is," his voice was like a judge's pronouncement, cold and clear, "whether we will continue to tolerate a corrupt and incompetent management that is using all of our shareholders' money to enrich their own cronies, continuing to lead this company, which should be great."
He took a step forward, looking directly at the tottering Chairman.
"Chairman Thomson," Felix's voice echoed in the dead silent conference room, "I hereby, on behalf of the absolute majority shareholder of forty percent of the company, formally propose: an immediate vote of no confidence in your position as Chairman."
"Now, please make your choice."
"Will you resign voluntarily like a decent Philadelphia gentleman?"
"Or will all of us here, in front of all the shareholders, make the final decision for you?"
Felix's calm yet oppressive ultimatum was like a drop of water falling into a boiling oil pot.
The entire Pennsylvania Railroad Company boardroom instantly erupted.
J. Edgar Thomson's face, flushed red with anger and humiliation, appeared particularly distorted under everyone's gaze.
He had originally thought that he could, as he had for the past thirty years, easily crush any challenger within the castle he had personally built. But he never expected that this young man from New York would not only breach his walls but also, in front of everyone, try to seize his crown.
However, before he could retort, a voice spoke from beside him.
"A brilliant report full of imagination, Mr. Argyle."
Sloan, the reinforcement Thomson had just called in, slowly stood up. There was no trace of panic on his face; instead, he exuded a calmness that comes from having weathered many storms.
He picked up the audit report distributed by Matthew Becker, holding it contemptuously between two fingers, as if it were a piece of soiled waste paper.
"With all due respect," his gaze swept like a knife over every director present, "this so-called independent audit report was issued by an obscure accounting firm. And the firm was commissioned by Mr. Becker, who just signed an exclusive supply contract with Mr. Argyle."
"I'm very curious," his voice carried a hint of sarcasm, "how much credibility, legally, can a report issued by the plaintiff's business partner, used to accuse the defendant, have?"
These words were like a bucket of cold water, instantly dousing the indignation of the small and medium shareholders who had just been so righteous.
They began to whisper, their eyes once again filled with doubt.
"As for related-party transactions," Sloan continued, "to my knowledge, Mr. Patterson's relatives operate a legitimate steel mill in Delaware, which does not violate any laws. Is it not the most normal business practice for the Pennsylvania Railroad Company, as a profit-seeking enterprise, to choose a supplier that can offer lower prices?"
He turned to Chairman Thomson, "Chairman Thomson, am I right?"
"Absolutely correct!" Thomson, as if grasping at a lifeline, immediately echoed, "All of our purchases have received legal approval from the board's procurement committee! Mr. Argyle, you are slandering the entire board with baseless speculation!"
Patterson and several other core allies immediately reacted and expressed their agreement.
"Exactly! This is slander!"
"We demand an immediate investigation into the source of this report!"
They successfully transformed an accusation of corruption into a debate about procedural justice and business defamation.
The situation in the boardroom instantly reversed.
Felix looked at the scene before him, knowing that he had still underestimated the shamelessness and cunning of these old men.
But he showed no sign of panic. Because he had brought more than one weapon today.
"Mr. Sloan." Felix nodded, still wearing that calm smile, "Your defense was brilliant. Since you emphasize 'legality' and 'procedure' so much, then I would like to ask, as an outsider, which company bylaw did you follow to appear at our Pennsylvania Railroad Company's annual general meeting today?"
This question made Sloan's expression change slightly.
Before he could answer, Felix's gaze had already turned to Chairman Thomson.
"Chairman Thomson, with all due respect, your motion to nominate Mr. Sloan as a new director candidate before the meeting also violated procedure. According to the company bylaws, any nomination for a new director must be communicated in writing to all shareholders holding more than five percent of shares at least one week in advance. I ask," Felix looked at him, "did Mr. Hayes and I, as my representative, receive this notice?"
Thomson's face instantly changed. He hadn't expected the other party to have studied the company bylaws so thoroughly.
In this suffocating silence, the banker Harrison slowly spoke.
"Mr. Chairman," his voice was devoid of emotion, "Mr. Argyle's procedural objection is valid. I recommend that the motion to nominate Mr. Sloan be considered invalid."
These seemingly neutral words, however, were like a knife, precisely severing Thomson's most important arm.
Sloan looked at Harrison, then at Felix.
"Mr. Argyle, even if I am not a director, as a shareholder holding over five percent, I still have the right to be here, don't I?"
"Of course! That is your right."
"Alright, gentlemen." Felix looked at the directors before him, whose formation had been disrupted, "Now we can return to the real issue of shareholder interests."
"I represent not only Patriot Investment Company," his voice was full of power, "but also the interests of Becker Foundry, and all local suppliers who hope to engage in fair and transparent transactions with the Pennsylvania Railroad in the future."
"I represent the interests of bankers like Mr. Harrison, and all investors who wish to see this company develop stably and increase its dividends."
"Therefore," he looked at Thomson, "I again propose an immediate no-confidence vote for your position as Chairman."
"No-confidence vote? Very good! Then let's have it!" Thomson slammed his hand on the table and roared at everyone present, and at the journalists in the back rows of the gallery who were already frantically taking notes, "I, J. Edgar Thomson, am right here, and I will not resign! I want all shareholders, I want all of Philadelphia to see clearly!"
"To see clearly how you people," he pointed his finger successively at Baker, Harrison, and finally rested it on Felix's face, "are trying to steal this great company, which has the blood of Pennsylvania flowing through it, with an unknown, forged report and a despicable and shameless conspiracy!"
"This is not a normal business act." His voice was full of incitement, "This is a war! A shameless aggression launched by New York oligarchs against us Philadelphians!"
"I will never give up!" He declared his final statement towards the press section, "I will appeal the legality of this vote to the courts! I will go to Harrisburg, to petition the Governor and the State Legislature! I want all of Pennsylvania to know that our railroad is being occupied by a group of bandits!"