America 1919-Chapter 863 - 295, Seeking the hide of a tiger with the tiger’s help_2

Although Donnie had already guessed the Warburg brothers’ thoughts, he didn’t expose them, as there was clearly no benefit in doing so at this time.

“So it means that I have to take care of these people myself?”

“That’s the only option left, we are out of moves!” Felix Warburg said apologetically.

He was waiting for Donnie’s response; in Felix Warburg’s opinion, Donnie would definitely object to this arrangement, whereby perhaps he could persuade Donnie to make more concessions!

But Donnie’s reply surprised him: “Alright, I acknowledge the efforts of the Warburg Family, so let me handle these matters!”

Although Felix Warburg was inwardly shocked by Donnie’s choice, he did not show it outwardly. This list was carefully selected by him and Paul Warburg. If Donnie chose to persuade on his own accord, it would definitely come at a cost, and a portion of that cost would be transferred onto them.

“So what about our collaboration, Donnie?”

This was the issue of greatest concern to Felix Warburg, as the whole affair originated from their Kuhn, Loeb & Co. consortium’s desire to enter the capital market of Atlantic City.

Donnie said: “The National City Bank of New York can enter Atlantic City, meanwhile, the Warburg Family will need to bear the entire cost of building two hotels of the same caliber as the Surf Hotel, but they can only hold a 45% share!”

“The rest of the collaboration will depend on the outcome of these three endeavors!”

“That’s impossible!”

Felix Warburg immediately opposed Donnie’s proposal. His side bearing the entire cost of the two hotels while only being able to claim a 45% stake was unacceptable to Felix Warburg.

The cost of erecting the Surf Hotel was 5 million US dollars, which at that time was already an exorbitant sum. But now, with the rapid development of Atlantic City, land prices have doubled, and labor costs here have also been rising. If we are to build hotels of the same class as the Surf Hotel, as Donnie suggests, it would cost at least 10 million US dollars per hotel.

“Felix, you don’t really think I’m unaware of what that list you just mentioned is about, do you?”

Donnie, facing Felix Warburg’s opposition, showed a bit of dissatisfaction, revealing the Warburg Family’s schemes.

Donnie wanted to turn the tables on the Warburg Family on this issue, and the most crucial point was to mobilize as much of Kuhn, Loeb & Co. consortium’s cash flow as possible.

In the heyday of the Kuhn, Loeb & Co. consortium, 20 million US dollars was not considered much. Even Jacob Schiff had once offered a loan of 20 million US dollars to Japan to maximize the interests of the Jewish people!

But times have changed; the current state of the Kuhn, Loeb & Co. consortium is strong on the outside but depleted within. They have a multitude of heavy industrial enterprises, each a ravenous money eater, and given their multiple internal factions, 20 million US dollars is a huge expenditure for them!

Felix Warburg’s expression froze, and at that moment, he realized why Donnie had so readily agreed earlier—it turns out that he had been waiting here for him all along.

However, Felix Warburg still did not relent. Admittedly, an investment of 20 million US dollars was a significant expenditure for the Kuhn, Loeb & Co. consortium, but if they could successfully enter Atlantic City, especially the core economic pillar of the gambling industry, then the 20 million US dollars would be a worthwhile expense!

“Donnie, I can assure you, this matter is definitely not what you think it is!”

Donnie waved his hand: “Whether it is or not doesn’t matter anymore. Now it’s up to you, Felix, to make a choice. My terms are laid out here, whether you accept them is your business!”

Felix Warburg thought back to what Paul Warburg had told him. Donnie was exceptionally direct and astute. In their negotiations, Donnie always managed to grasp the most fundamental issues and directly bring them to the table for discussion.