It was still the New York United Alliance Club.
In that private room, perpetually shrouded in cigar smoke and conspiracies, a crack appeared in the atmosphere for the first time.
Kogan the Butcher, the Eastern Railroad Alliance's "white glove" in Chicago, stood in the center of the room, trembling uncontrollably, like a dog that had lost its home.
He recounted Allen's words in the restaurant to his masters, verbatim.
"...He said he is now a major shareholder of the Mississippi and Eastern Railroad Company. He also said that next time, it won't just be newspaper reports."
Kogan's voice was distorted by fear.
The room fell silent.
"Shit, you son of a bitch Ireland bastard."
"Does he think he can scare us with just words?"
The fat director representing the Pennsylvania Railroad angrily stubbed out his cigar in the ashtray.
"It's not necessarily a bluff. You know, this Ireland scoundrel is the Canning King, and he has very good relations with the military."
Mr. Sloan, the alliance leader who had been silent, finally spoke.
His voice was still sinister, but it now carried a hint more gravity than before.
After learning from Henderson's telegram that his opponent was Allen, he sent people to investigate him.
Roughly estimated, Allen's food company had a net income of nearly ten thousand dollars a month, with assets of at least several hundred thousand dollars. This was a formidable enemy.
Moreover, he had successively secured military logistics orders, which was no secret.
"And he really did acquire a major shareholding in the Mississippi and Eastern Railroad Company within a few days. My informant has confirmed this news from the company's shareholders' meeting."
"Fuck you, how is that possible in such a short time?!"
"Nothing is impossible."
A hint of coldness flashed in Sloan's eyes.
"We all underestimated this rising tycoon, and we underestimated that old stubborn Reeves. We thought a big fire would make them yield. Unexpectedly, we pushed Reeves directly into the arms of that Canning King."
"So what do we do now? Should we just get rid of that kid?"
"No, no, no, Charles. We can bully those weaker than us, but for those who are already at the table, this method is not advisable."
Sloan shook his head, rejecting the fat Charles's suggestion. After all, Allen's capital strength was not weak, and he had the military behind him.
"What we can do, they can also do. Do you want everyone to live in fear every day?"
"Besides... doesn't he want to play capital games?" Sloan sneered.
"Then let's play along! Immediately notify our brokers in Chicago to start acquiring shares of the Mississippi and Eastern Railroad Company in the market. That kid has thirty percent, and Reeves himself has thirty percent.
I don't believe their alliance is unbreakable.
As long as we get the remaining forty percent, we'll be the largest shareholder. Then that kid will understand who it's best to cooperate with. There will be opportunities, everyone."
...In Allen's hotel suite in Chicago.
Charles Reeves, the railroad company's general manager, had fully embraced his role as an ally.
"Allen."
His address to Allen was already very natural.
"Your name and thirty percent of the shares will officially appear on the company's shareholder roster tomorrow."
"Thank you, Charles."
After Allen embraced him in thanks, he pushed a recent stock market report, just delivered by Blackwood, in front of him.
"But now, Charles, our enemies have begun to act."
Reeves picked up the report, and his face instantly turned grim.
"Damn it... they've started buying the company's stock again? And the price is a full ten percent higher than the market price!"
"That's right, they've realized what's happening, and now they want to use their substantial capital to contend with us for control of the company."
"So what should we do...?"
"Of course, we can't let them lead us by the nose."
Allen took a puff of his cigar, letting the aroma spread in his mouth, then exhaled.
"They have more money. If we, like ordinary businessmen, compete with them in the exchange, we will undoubtedly lose."
Allen glanced at Reeves, then at Blackwood.
"We need to end this competition as quickly and effortlessly as possible."
"Blackwood."
"What do you need, Mr. Williams?"
"Of course... I need you to issue a public 'tender offer' to the entire Chicago securities market, in my name."
"Tender offer?"
Even Blackwood was momentarily stunned to hear that term.
This was a sophisticated financial maneuver that had begun to appear in Europe but was still extremely rare in the rough-and-tumble Chicago market.
"Yes."
Seeing that Reeves was still a bit confused, Allen explained.
"No need to secretly buy shares in the market. Directly issue a public acquisition offer to all shareholders holding Mississippi and Eastern Railroad Company stock."
"The offer price is four dollars per share."
"Four dollars?!"
Reeves exclaimed in disbelief. This was double the price it had been when it fell previously.
"But Allen, the current market price has already been driven up to three dollars by them! Four dollars, those shareholders might not be willing to sell!"
"No, they will sell."
A smile that made even Blackwood feel a chill appeared on Allen's face.
"Because our offer has an additional condition."
"That is, this offer will immediately become void after I successfully acquire fifty-one percent of the shares."
Blackwood's eyes instantly lit up like two bright lamps in the dark night.
He immediately understood the core of Allen's plan.
"My goodness..." he murmured, "Mr. Williams, you... you are, in effect, holding all the small and medium shareholders hostage!"
Allen exhaled a smoke ring, his tone indifferent.
"Perhaps."
"No, what kind of charade are you two playing? If they don't sell, how can you acquire fifty-one percent of the shares?"
Reeves frowned, watching the two play their double act, somewhat puzzled.
"No, no, no, Mr. Reeves, Mr. Williams's brilliant plan is essentially telling all the small shareholders:
Now, there is an opportunity for you to sell your shares at a high price of four dollars and exit safely.
Mr. Reeves, you must understand that it's impossible for everyone holding shares not to sell. There are always some who are in urgent need of money or who are not optimistic about the company.
And when these people start selling their shares in a big way, those who are hesitant will also follow suit.
Because they cannot guarantee that this price will appear again in the future, they choose to take profits while they can.
And those shareholders who are waiting, hoping to sell at a higher price, seeing more and more people selling shares, will also worry that Mr. Williams will stop acquiring once he is satisfied.
Because they clearly understand that the other party is willing to pay a high price to acquire company shares because they want to contend for control.
But if the company is controlled, then all of this becomes meaningless, so there will be no more acquisitions."
"This is no longer a simple acquisition."
Blackwood's emotions were slightly agitated, and he began to gesticulate wildly.
"This is an overt scheme that uses group psychology to create a 'prisoner's dilemma'!"
"Clap, clap, clap... A brilliant analysis!"
Allen clapped his hands with a smile, then turned to Reeves.
"This matter also needs you, Charles, to add the final layer of insurance to this overt scheme."
"Ah? Oh... I mean, what do you need me to do?"
Reeves, who had been listening in a daze, asked, still somewhat bewildered.
"Write an open letter to all your shareholders, in your personal capacity and as the company president," Allen said.
"In the letter, tell them in the most sincere tone that you, Charles Reeves, the founder of this company, fully and one hundred percent support and endorse my tender offer, Allen Williams's acquisition offer."
"You must tell them that cooperation with me is the only and best future for this railroad. You must implore them, for the survival of the company and for their own interests, to accept my offer. You must use your 'honest' reputation to provide the final guarantee for me."
Reeves looked at Allen, silent for a long time.
Understanding Allen's plan, he knew that once he wrote this letter, it would be tantamount to personally handing over the business he had struggled for half his life to this young man.
However, he also understood that this was the only way for the company to survive.
Finally, he nodded heavily, "Okay, I'll write it, but promise me, Allen, that you won't let down my expectations."
"Of course, Charles, we will be very good partners, I guarantee it!"
That night, Blackwood mobilized all his connections and resources, and by early the next morning, the "tender offer" announcement, filled with devilish allure, was plastered in every corner of the Chicago exchange.
Fowler, meanwhile, published Reeves's "Open Letter to Shareholders," full of pathos and idealism, in the largest font on the front page of the Chicago Daily Truth.
And in New York, Catherine also received Allen's telegram.
Without any hesitation, she immediately wired the largest sum on the company's books, a total of twenty thousand dollars, to Blackwood's designated account in Chicago.
(Here, it should be noted that in 1861, wire transfers were not yet mature, but telegraph technology was. So, wire transfers matured a decade and a half earlier. Also, this tender offer is not a formal one; it's considered a friendly public acquisition.)
A general counterattack against the Mississippi and Eastern Railroad Company officially began at this moment.
The entire financial market of Chicago was plunged into unprecedented frenzy and upheaval by Allen's unheard-of combination of moves.