I'll help you become the number one grain merchant in the West, and you'll giv

Chapter 385 I'll help you become the number one grain merchant in the West, and you'll give me half the shares.

October 9th, Thursday.

The autumn rain in Chicago brought a biting chill, pattering against the weathered brick walls of Cargill's Chicago office.

The carriage stopped at the entrance to the road. The carriage door opened, and Larry and Matthew, each holding an umbrella, stepped out of the carriage and onto the cobblestone road.

Larry looked at his boots and remarked, "My new boots—they're practically rain boots now. What's wrong with Chicago? It's been raining non-stop all year."

Matthew chuckled. "Things are alright now. Chicago winters are the worst. Cold and damp, the city government collects a lot of homeless corpses from the streets every year—"

After saying this, Matthew's face clearly darkened, and he sighed, "There might be even more bankruptcies this year—because of the price of wheat."

Matthew didn't continue, but Larry understood his meaning. Because wheat prices were so low, many farmers in debt were at risk of going bankrupt. But this was also closely related to Larry's manipulation of wheat futures prices.

Larry smiled mysteriously, patted his elbow reassuringly, and said, "My brother, don't worry about it."

"But prices are still falling! Black Monday shattered confidence in both the futures and spot markets. Yesterday's low reached 60 cents, and today it might see 59 cents —"

"Are you still drawing your candlestick charts?" Larry asked with a smile, changing the subject.

Matthew nodded.

"The September contract is ending in seven trading days! We must finish it before we start it," Larry said with a laugh.

"Shouldn't it continue to test the bottom?" Matthew sensed a hidden meaning in Larry's words, but continued, "I don't think there's anything unexpected happening on this candlestick chart."

"There are always surprises! So charts are never the most important thing." Larry said mysteriously. Kagi & Co. nodded. "Let's go, time to get down to business!"

The leather boots squeaked and crunched as they stepped into the water and over the pebbles, leading the two to the entrance of Cargill. Matthew rushed forward and knocked on the heavy oak door.

The door opened, and the doorman, seeing Larry and Matthew, was taken aback. He then greeted them loudly.

In the company office, William Cargill Sr. and his son-in-law McMillan were sitting by the fireplace checking a stack of yellowed warehouse inventory lists. Upon hearing Larry's arrival, they both stood up.

Upon seeing Larry, a hint of wariness flashed in old Gaggi's cloudy eyes.

"Mr. Livingston! I didn't expect you to come in such terrible weather. Do you have some new ideas now?"

Larry plopped down by the fireplace without ceremony, unbuttoned his coat, and said with a grin, "Could you get me a hot coffee first?"

Over there, Matthew calmly took out cigars and handed them out to Cargill and his son-in-law, a practiced action that seemed almost subconscious.

Cargill stared silently at the cigar in his hand, while McMillan told his assistant to make coffee.

The four men lit cigars, the fireplace chasing away the damp chill from outside. McMillan suddenly said, "I heard you just wiped out half a block of brokers at the exchange—"

"You already know?" Larry raised an eyebrow at him.

"This can't be kept secret for long. Your name is already circulating in Chicago," McMillan said with a smile.

Larry nodded without responding, and then said, "I'm here to do two things. First, I want to check on the progress of the purchase of No. 1 and No. 2 wheat."

The father-in-law and son-in-law exchanged a glance. McMillan took out the latest ledger from the previous one, opened it, and said to Larry, "The No. 1 wheat total is 150 million bushels. As you know, the Midwest has had a lot of rain this summer, so there isn't much No. 1 wheat. The No. 2 wheat total is 500 million bushels."

Larry nodded. "And the price?"

"After Black Monday, we suspended wheat collection because it would have been too overpriced if we had continued at the previous prices."

之前收购的小麦都按总价的1/3付预付款。总价是126万美元加370万美元，一共496万美元。我们付出的预付款是165.3万美元。」

McMillan rattled off the entire expense report in one go. Old Cargill stared intently at Larry, his tone icy and sarcastic. "You've used up the $150 million you brought to buy wheat—we've advanced some more. What are you planning to do now? Continue buying wheat?"

"Keep collecting!" Larry said frankly.

"Where's the money? Give it to me!" Old Cargill stretched out his hand.

Larry smiled but didn't answer immediately. Instead, he stood up, walked to the wall next to the fireplace, and glanced at the Midwestern grain depot map marked with red lines hanging on the wall.

"I'm here to discuss a deal that could make Cargill the king of American grain—but first tell me, what makes you think you can hold onto that position?" Larry said casually, looking at the map.

But when these words reached their ears, they surprised both of them greatly.

The King of American Grains? Are you kidding me!

Are you talking about Cargill? We're on the verge of bankruptcy in a few weeks —

We're counting on you to turn the tide!

Of course, we should already thank God that Cargill was able to get out of its predicament. How could we possibly talk about something like America's First Grain Company?

The two men exchanged another glance, and McMillan thought for a moment before saying, "Cargill owns one-third of the best grain silos in the Midwest, along with its reputation and acquisition network built up over so many years—"

"And then just watch your warehouse get mortgaged to the bank?" Larry interrupted him.

"Isn't this what you asked us to acquire?!" Old Cargill's face flushed crimson, and he abruptly stood up. "I've been worried about so much grain—and now at such a low price, what are we going to do? You only paid an advance, but we've staked Cargill's entire assets and reputation!"

Larry turned around, a smile on his face, and pressed his hands down to signal him not to get agitated. "Relax, sir!"

I just want to emphasize again that we're all in the same boat now.

"Without you, we wouldn't be in such dire straits!" Old Cargill emphasized again.

"Without me, those 500 million bushels of wheat you stockpiled would be crushing you to death—" Larry said, propping his elbow up with one hand and taking a puff of his cigar. "Relax. Cargill's weakness isn't a lack of grain storage, but rather the capital and means to get the grain moving!"

Old Cargill slumped down.

Indeed, without Larry's intervention, Cargill might have been besieged by creditors a week earlier. On the contrary, Cargill's previous large-scale grain purchases and the distribution of one-third of the grain as down payments in cash to grain merchants boosted the confidence of many creditors, who believed that Cargill could recover.

But now, with wheat prices plummeting—Cargill owes even more money. Although theoretically this wheat belongs to Larry, if he really defaults, Cargill will be finished.

Getting involved with this guy is like selling your soul to the devil.

Old Cargill pondered for a long time, then sighed softly.

Larry smiled and turned his gaze to McMillan, who looked completely unfazed, calmly meeting his eyes.

"Tell me again, what makes Cargill the number one grain company in America?" Larry asked.

"Based on—our current stock of the best quality wheat in the entire United States?" McMillan stared at Larry, speaking each word clearly and earnestly.

Larry smiled. "Oh, tell me about it!"

"I know you're up to something! You wouldn't buy so much wheat for no reason," McMillan asserted.

He stubbed out his cigar in the ashtray, straightened his posture, and continued, "Let's be honest, you've got all the delivery wheat available in Chicago right now—I have a judgment, just my personal judgment, that you're trying to force a short squeeze! You're trying to create a massive wave in this market!"

After McMillan finished speaking, the air in the room seemed to freeze, and old Gaggi and Matthew both turned their heads toward Larry.

Larry nodded but did not comment.

"But that's almost impossible! Larry Livingston, you're going against the grain," McMillan said seriously, frowning.

Larry frantically stockpiled physical goods, keeping it a secret from outsiders. By this time, the three people in the room had more or less sensed that Larry wanted to manipulate the market—a short squeeze.

But this is simply too incredible, because it happened in a year of bumper wheat harvest, with plenty of wheat available across the United States. Under such circumstances, a short squeeze would be tantamount to suicide.

For a short squeeze to succeed, wheat futures prices must return to above $1, which would force panicked short sellers to close their positions.

But this is almost impossible. Although Larry instructed Cargill to buy up almost all of Chicago's stockpiled high-quality wheat, if wheat prices rise, short sellers have enough incentive to move wheat from all over the country for delivery.

That kind of short squeeze trap would fail, and Larry would be holding a bunch of wheat futures warehouse receipts that are worth far more than the spot price. And since futures are leveraged, if Larry fails to squeeze the shorts, he will be liquidated!

"Is that really what you think?" Old Cargill asked Larry.

"Yes!" Larry nodded in response.

The air fell silent again. Matthew frowned as he looked at Larry, feeling that Larry had been too reckless this time.

"That's impossible!" Old Cargill said firmly.

McMillan, who had just raised the question, suddenly said, "That's basically impossible, unless—"

He focused his gaze on Larry's face, trying to gauge his attitude from his expression, but Larry's expression showed no improvement.

"Unless what?" Old Cargill asked, frowning.

"Unless we can push the Chicago Board of Trade's system to its limits—the Chicago Board of Trade's delivery rule is a three-day settlement, where, three days before the last trading day, warehouse receipts with delivery intentions will be registered, and other warehouse receipts will need to be closed out. If, by then, the short sellers can't deliver the wheat, they'll have no choice but to—close out their positions at a high price, whatever the market price of wheat is at that time!" McMillan replied.

"Yes! That's it—and I need Cargill's full cooperation." At some point, Larry's relaxed smile had faded, replaced by a serious expression and piercing gaze as he looked at the three of them.

Since he was the only one standing there, his superior position and serious demeanor created a tremendous sense of pressure on everyone.

Old Cargill wanted to retort, but unconsciously swallowed back the words he wanted to say.

"Can you really do it?" McMillan's face was serious. "This is a matter of life and death for Cargill and for you. If we mess this up, we're all finished!"

"This is exactly what I've been emphasizing! I've saved you from the abyss, but only with a suspended death sentence."

Larry's face was serious. His gaze swept over the three men, finally settling on old Cargill's face. He continued, "Either we play our parts well, so we all profit—I make some money, and you can bring Cargill back to life. Or—we'll all sink!"

Cargill trembled slightly. For the first time in his more than 50 years of life, he felt unable to make a decision immediately, because this decision would determine the life or death of Cargill.

Cargill looked at McMillan, who stared at Larry and asked with equal seriousness, "Do you want Cargill to lock in all the high-quality wheat along the railroads?!"

"Yes! We must ensure that all wheat that meets delivery standards enters Cargill's warehouses along the route!"

McMillan said hastily, "But we simply don't have that much money! Even a third of the deposit would cost over a million dollars! Where would we get that kind of money to acquire it?"

"On credit! Given Cargill's reputation, it's possible for you to delay payment for farmers by two weeks!" Larry interrupted him.

"We could, but why should we? Should we sacrifice our reputation just to make money for you? Is it possible for us to go bankrupt rather than bear the stigma of fraud?"

McMillan became agitated. He stood up abruptly, a hint of anger on his face, and questioned the man sternly.

The other two people in the room froze, especially old Cargill. The rapidly changing exchange made him forget his own position; he just stared at Larry and his son-in-law, mouth agape, as if wanting to see how this heart-wrenching drama would end.

The room was as quiet as before the creation of the world, and everyone's eyes were focused on Larry's face.

Time passed second by second.

"Heh heh—" Larry suddenly laughed, waving his cigar at McMillan, and said, "I just gave you the bargaining chip! America's number one grain company! That's enough to drive you crazy, isn't it?"

McMillan frowned and thought for a few seconds. "But how can you achieve this goal? I simply can't figure it out. What will you do to make us the king of all grain companies?"

Larry nodded and smiled. "This brings us back to the very first question I asked when I arrived here. Gentlemen, what makes you think you deserve this crown?"

The father-in-law and son-in-law exchanged a glance, bewildered and at a loss.

"Please advise me!" McMillan said solemnly.

Larry looked at the three men, paused, and then said, "The human heart! Gentlemen, it's the human heart! When all farmers are facing a life-or-death crisis, you must enable them to sell their wheat at a price 5 cents higher than the current price—in this way, they will see Cargill as their savior."

Only in this way can you build on your reputation and become the most trusted company by farmers. Cargill's excellent image will mean credibility and fairness. Once this super credibility is established, you will not only dominate the market, but also set the standard for the wheat market—Cargill's unwavering standard.

Larry's words silenced both of them.

The advantage of credit is subtle yet incredibly powerful. Just like with bank loans, someone with no credit can't borrow $10 even at 10% interest, but someone with good credit can borrow $100 by paying only half the interest.

The lender, who had been paying him millions of dollars, kept chasing after him for more money.

The same applies to grain merchants; their most valuable asset is their credit. If they can raise grain purchase prices during periods of market turmoil, it will naturally instill confidence in farmers. And this confidence will then translate into priority purchasing rights in the future!

If a good reputation can be established with farmers in one go, then all aspects of business operations, such as payment terms, turnover, and credit purchases, will have a super advantage that competitors simply cannot match.

This advantage will translate into lower transaction and storage costs, as well as higher profit margins.

If Cargill can truly establish a good reputation among Midwestern farmers by leveraging its "savior" role, its subsequent operations will only require half the costs of its competitors, and it will also be able to lock in most affordable food products.

If this really works out, it could make Cargill the number one grain company in America.

McMillan hesitated for a moment, then asked, "But...but you know, if it's just on credit, how are we supposed to convince the farmers to sell their wheat to us? The company simply doesn't have that much money to give them."

"I'll pay for it. You can promise them that by the end of the first week of October, they won't get a third of their deposit back, but a full refund!" Larry said.

All three of them were startled.

"Can you really do it? If we really buy according to the futures exchange's delivery standards, we'll need at least another 500 million bushels of wheat, which means $300 million!" McMillan exclaimed. "$300 million! Can you raise that?"

"I can!" Larry said solemnly, "but I also want my shares, as we agreed before! Now it's half. I can forgo controlling shareholder status, taking 15% preferred stock and 35% common stock, but this is the fair price. I not only help you out of the crisis and avoid bankruptcy, and make money from this grain deal, but more importantly, through this grain acquisition, I will make Cargill the number one grain company in the United States. I will not go back on my word!"

After saying this, Larry smiled again, looking at the two of them, and said in a gentler tone, "—After all, we're all in the same boat!"

Larry's words carried not only a resounding confidence but also a devilish, whispered seduction, like Mephistopheles' deal with Faust.

McMillan pulled his father-in-law, Old Cargill, aside, and the two whispered and discussed for a long time. Finally, Old Cargill gritted his teeth and said, "Alright! It's your decision."

"I swear to God, let the lawyer sign the contract!" Larry laughed and raised his hand.

Old Cargill paused, then helplessly raised his hand and said, "I swear to God! You damned bastard!"