The Hall of the House of Representatives in Washington.
The smell of hundreds of burning cigars and pipes, combined with the sweat of men in thick wool suits, made the air in here suffocating.
Although it was pouring rain outside, the heat inside the Capitol Building was enough to parch a person.
vice president and President of the Senate Thomas Clark sat on the rostrum. He held a heavy wooden gavel in his hand.
Below the stage were faces filled with anxiety, greed, or fear.
Yesterday, President Grant had summoned him to the White House. The President's words were brief but carried great weight.
"I don't understand those complex accounts, but I know what theft is. That's the soldiers' pensions, the taxpayers' blood and sweat. Thomas, please clean up this house."
Clark struck the gavel.
"Bang!"
The sound echoed through the rotunda.
"Silence."
Clark's voice wasn't loud, but it was incredibly piercing.
"Regarding the case of the Union Pacific Railroad Company and its affiliate, 'Credit Mobilier,' suspected of financial fraud and bribery of public officials, the Congressional Special Investigative Committee is now convened."
The room erupted in an uproar.
Thomas Durant, sitting in the first row of the hearing, was deathly pale.
He clutched a handkerchief, constantly wiping the sweat from his neck. His bowtie was crooked, and his expensive silk waistcoat was soaked with sweat.
He was no longer the arrogant railroad tycoon from the Golden Spike ceremony.
Now, he was a piece of meat on the chopping block.
"Call the first witness."
Said the chairman of the investigative committee, Congressman Poland.
Mr. William Coleman, President of Lex Steel Company.
Coleman stepped forward.
He wore a well-fitted dark gray suit, his expression solemn, even carrying a hint of a "victim's" grievance.
"Mr. Coleman." Congressman Poland adjusted his glasses.
"Please explain to the committee the details of the transactions between Lex Steel and the Union Pacific Railroad Company over the past three years."
"Certainly, Congressman."
Coleman opened his briefcase and took out a thick stack of ledgers and invoice copies.
"These are our billing records. As you can see, we provided Union Pacific with a total of 300,000 tons of high-quality steel rails. The contract unit price was $85 per ton. This was the fair market value at the time, including the high cost of transportation to the western wilderness."
Coleman held up an invoice.
"However, as of last week, we still have $400,000 in outstanding payments. When we went to collect, Mr. Durant told us the company had no money."
"No money?"
Congressman Poland sneered and turned to look at Durant.
"The government allocated tens of thousands of dollars in bonds per mile to you, along with millions of acres of land. Where did the money go?"
Durant stood up, his legs trembling slightly.
"Congressman, this... this is a misunderstanding. The construction environment in the West was too harsh—indians attacks, avalanches—we needed money to maintain..."
"Lies!"
Another congressman from Massachusetts stood up, waving a pamphlet in his hand.
"This is a copy of the accounts provided by my informant inside Credit Mobilier! It clearly states that you resold the steel rails bought from Lex Steel for $85 to the Railway Company for $160! The difference went entirely into the pockets of the Credit Mobilier shareholders!"
"And these shareholders include you, Mr. Durant. Also Mr. Oakes Ames, and even several gentlemen sitting here!"
The congressman's words were like a bomb exploding in the hall.
The faces of the named congressmen instantly turned a deep purple. They had thought this was just a formality, but they hadn't expected the mysterious informant (actually arranged by Flynn) to expose everything.
"This isn't true, it's a frame-up!" Durant roared. "That was project management fees! Risk premiums!"
"That is theft."
Clark interjected coldly from the rostrum.
"According to the evidence we have, Credit Mobilier siphoned off at least twenty million dollars in profit from government subsidies. Meanwhile, the Railway Company's books are full of losses."
Clark struck the gavel again.
"The committee orders the immediate freezing of all assets of the Union Pacific Railroad Company. Summon all shareholders of Credit Mobilier for questioning. The Department of Justice will intervene in the investigation."
This blow shattered Durant's dream... At the same time, New York, Wall Street.
Heavy rain washed the streets, but the entrance to the exchange was still crowded with people.
The massive ticker machine was frantically spitting out paper tape.
"UP (Union Pacific)... 60... 55... 50..."
The price wasn't just falling; it was diving.
"Sell! Sell it quickly!"
A speculator in a rain-soaked trench coat grabbed the broker's collar and roared.
"It's waste paper now! Congress is going to seize them! Sell it for me, now!"
"No one is buying, sir!" The broker was dripping with sweat.
"The buy side is empty! Lex Steel sued them, and the government froze their accounts. Now this stock is too stiff even to wipe your backside with!"
The exchange was filled with desperate screams.
Stocks that were worth a fortune just hours ago had now become red-hot coals.
And on the top floor of the Argyle Building across the street.
Felix stood before the floor-to-ceiling window, looking down at the chaotic street. Rain left streaks on the glass, blurring the figures of people running.
The room was quiet, save for the crackling of firewood in the fireplace and the monotonous clicking of the private ticker machine in the corner.
"It's dropped below 40."
Tom Hayes sat on the sofa with a cup of black tea in his hand, his expression as relaxed as if he were watching an opera.
"Durant is finished. News just came from Washington that he could face over ten years in prison. That Congressman Oakes Ames fainted in the restroom."
"This is only the first wave."
Felix turned around, not looking at the ticker.
"Panic is contagious. When people realize that railroad hasn't made any money and is buried in debt, they'll dump every railroad stock they have."
"Boss, when do we enter the market?" Hayes asked.
"The price is already very tempting. $35, which is lower than the net asset value."
"No rush, it's still early."
Felix walked to the liquor cabinet and poured a glass of whiskey.
"Let the bullets fly for a while longer. Entering now is just catching a falling knife. I want to wait until they are completely desperate, until Durant is on his knees begging someone to buy his stock."
Felix took a sip of his drink.
"The most important thing is that our current identity is the 'victim.' How can a victim buy the perpetrator's stock? It's illogical."
"So we need to take something tangible first."
Felix picked up a document from the table; it was a legal paper drafted by Hamilton.
"Debt Restructuring Agreement."
"Since they can't pay for the steel rails, they'll have to use assets to compensate. I want the station land in Omaha, the mining rights for those coal mines in Wyoming, and the right-of-way for two hundred miles east of Salt Lake City."
"Tell Coleman to take a legal team to Washington. While Durant is still trembling, get him to sign these."
"Alright, I understand." Hayes smiled. "It's called salami slicing—cut off the good meat first."
Felix looked out at the curtain of rain.
This rain is truly wonderful.
It washed away the bubbles of greed, revealing the hard rock beneath. And the Argyle Family are the ones standing on that rock.
Felix suddenly remembered something.
"By the way, after that Carnegie returned, what's been happening in Pittsburgh lately?"
"Oh~ he's been very quiet."
Hayes replied, scratching the beard on his chin.
"I heard he's building factories like crazy. Even with this market panic, he hasn't stopped construction."
"I see," Felix nodded.
"It seems he really wants to be a Steel King. Then let him. Once this storm passes, I'll let him know who holds the pricing power for steel."
Click, click, click... The sound of the ticker tape machine suddenly became rapid.
"It's broken 30." Hayes took a glance.
Felix didn't look back.
"Let it fall. Let it fall all the way to hell."
...The Credit Mobilier scandal was like a plague, sweeping through the entire American business world.
Every day new names were exposed: Congressmen, Governors, and even several well-known pastors.
They all held 'gifted' shares in that notorious company.
Union Pacific Railroad's stock had already fallen to $20.
Many brokerage firms on Wall Street went bankrupt because they held a large number of margin accounts.
But amidst this wailing, there was a strange phenomenon.
Lex Steel Company's stock price (though it was unlisted, its credit rating in the bond market) had not only failed to fall but had actually risen.
The first-floor lobby of the Argyle Building was packed with reporters.
"Mr. Coleman, may I ask if Lex Steel Company participated in profit shifting?"
"Was Mr. Argyle aware of this?"
Flashbulbs flickered, and smoke filled the air.
William Coleman stood on the podium, with the massive Argyle Family crest hanging behind him.
At this moment, the expression on his face was very mournful, as if he had just attended a funeral.
"Gentlemen, ladies."
Coleman's voice echoed through the hall via the megaphone.
"Oh God, this is the darkest day in American business history. As a company with extremely high ethical standards, Lex Steel Company is, like everyone else, shocked and outraged."
"We trusted Union Pacific; we trusted Mr. Durant. To support the national railroad construction, our workers were working overtime even on Christmas to produce rails. We even advanced the freight costs."
"And what was the result?"
Coleman held up a copy of a court subpoena.
"We were deceived by them; our payments were misappropriated. That is the hard-earned money of our workers!"
"But it doesn't matter..."
Coleman shifted his tone and straightened his back.
"Mr. Argyle has already instructed that no matter how great the loss, Lex Steel will never lay off workers or default on wages. We will use our own reserves to get through this difficult time."
Applause.
The reporters began to clap. In an era full of swindlers, this 'responsible' attitude was like a breath of fresh air.
The next day, the headline of The Daily Truth was: 'The Price of Integrity—The Argyle Family Holds the Business Bottom Line Amidst the Storm.'
Public opinion completely reversed.
Argyle went from a potential suspect to a perfect victim... Top-floor office.
The applause outside couldn't be heard; here, there was only the sound of paper flipping.
Felix sat behind his desk, facing Hamilton and several top bankruptcy liquidation lawyers.
"A good performance."
Felix put down the newspaper and commented.
"Now, everyone thinks we've suffered heavy losses. This is a good thing, because no one keeps an eye on a person who is losing money."
"Hamilton, did Durant sign over there?"
"He signed."
Hamilton handed over a thick file, his face filled with uncontrollable excitement.
"He signed it in the prison visiting room. In exchange for us dropping the personal fraud charges against him (changing it to a civil debt dispute), he agreed to our debt restructuring plan."
Felix opened the file.
This was an agreement that would make any robber blush.
Since Union Pacific could not pay the $450,000 for goods and interest, they agreed to mortgage the following assets to Lex Steel Company, including:
Land ownership along twelve stations in Nebraska, including land for future warehousing centers.
Also, permanent mining rights for two large coal mines in Wyoming.
Most crucially, a 20% share of the revenue from the railroad right-of-way from Omaha to Cheyenne for a period of fifty years.
"This is simply a perfect case of highway robbery," one lawyer whispered in admiration.
That $450,000 payment for goods was originally profit already earned from the high-priced rails.
Now, Felix was using this 'bad debt' to exchange for physical assets worth at least five million dollars.
"You're wrong; this is called asset preservation."
Felix corrected him, closing the file.
"And we didn't take the right-of-way itself, only the revenue rights. This makes it easier to explain to President Grant's side. After all, legally speaking, the railroad still belongs to the nation."
"Boss, what about the stock?" Hayes walked in.
"The stock price has already dropped to $15. The retail investors have all run away, and what's left are just some trapped institutions."
"Perhaps it's time, Tom."
Felix stood up and walked to the map, looking at the red line spanning the continent.
That railroad was laid with Lex's rails, carried Metropolitan Trading Company's goods, and burned Saineng Minerals' coal.
Now, it only lacked a true master.
"Start sweeping up the stock."
Felix gave the order.
"Of course, remember not to use the name of Patriot Investment Company. Use those dozens of offshore accounts we registered in London, Amsterdam, and the Caribbean."
"Buy some every day, like ants moving house. Don't drive up the stock price; I want to suck up as many of the circulating shares as possible within three months. Of course, you can also contact some shareholders or institutions."
"By next year, when people realize Union Pacific has a new board of directors and has started making a profit, they will find that this company's last name is now Argyle."
"Understood, I know this business very well."
Hayes licked his lips with a bloodthirsty expression.
"Oh, also Boss, there's some news," Hayes added.
"It's about Jay Gould. It seems he's taking advantage of the chaos to buy back Erie Railroad stock. And that old man Vanderbilt seems to have been frightened by this storm and is shrinking his front lines."
"Gould is a smart man," Felix smiled.
"But he loves to gamble too much. He dodged this railroad storm, but it won't be long before I save a good spot for him."
There was a knock on the door.
Frost walked in, looking a bit hurried.
"Boss, a telegram from Long Island. Madam... Madam has fainted."
Felix's expression changed instantly.
The composure of someone in control of everything disappeared, replaced by tension.
"What happened? Quick, get the carriage ready for the pier!"
Felix grabbed his coat and rushed out with long strides.
The lawyers and executives behind him looked at each other; they had never seen their Boss like this.
In their eyes, Felix was the stern monarch who wouldn't even blink in the face of a multi-million dollar deal. But now, because of a telegram, he had lost his composure.