Shadow Empire

Chapter 1018 Orders, Rebates

“I’ve already left the president’s office. If you’re free, it would be best if you came to my office before five o’clock. I’ll give you some documents, and with those documents you can get the money.”

"I also want to introduce someone to you."

Passersby looked at the phone booth with curiosity.

Four bodyguards stood around the phone booth, while a man in a fur-trimmed trench coat was talking on the phone inside.

Passersby glanced at him, but the bodyguards' eyes immediately fell on him. Sensing danger in those gazes, he quickly looked away, lowered his head, and hurried on.

This is the street outside the Presidential Palace. It should be a bustling place, but in reality, it's not that bustling.

High-rise buildings are not allowed around the Presidential Palace to prevent them from spying on the secrets inside the palace through telescopes or other means from some high places around it.

Many people who have never been to New Golden City assume that once they arrive outside the Presidential Palace, they can see its general appearance.

But in reality, they can't do it.

Because most buildings are hidden behind vegetation walls, such as some spruce trees or other trees, people can only observe the dense vegetation.

Furthermore, ordinary people are not allowed to enter the Presidential Palace without permission. There are very strict guards at the entrance, and anyone who goes in rashly will be arrested and thrown into the police station.

Even if you are innocent, they will make you admit that you are involved in a certain case.

Therefore, there weren't many people outside the Presidential Palace; it actually seemed rather deserted.

In addition, there are many patrol teams here, and the eyes of those patrolmen are like knives, as if they want to dissect the body of every passerby they suspect, so ordinary people are not very willing to walk through here.

At that moment, Senator Cleveland was on the phone with Lance. The president had signed the document, and he would transfer the money from the fiscal account and then distribute it to different places depending on its purpose.

As a core senator of the pro-war faction, Senator Cleveland has close ties with the federal military-industrial complex. After all, the longer and more intense the war lasts, the more orders they will receive from the federal government.

Congress sometimes designates certain tasks to be undertaken by these defense contractors, such as joint development projects where the federal government provides funding and the defense contractors conduct the research.

Then they sell the products to the federal government, which sounds like there's nothing wrong with that, but actually there are a lot of problems.

In return for the substantial profits these hawkish senators brought to the defense industry, their families would secretly acquire shares in some of these companies.

On the one hand, a portion of the profits generated from federal military procurement orders would go into their pockets, which could be considered part of the bribery.

On the other hand, the substantial income generated by the rapid appreciation of stocks was also part of the bribery scheme.

Senator Cleveland also holds shares in these military-industrial groups. Lapa needs military supplies, but has not specified what kind of weapons they want.

Ninety million in orders is not a small amount; the federal government has only approved military spending of just over five billion this year.

An order worth 90 million yuan accounts for about 1.5 percent of the total orders this year, which is quite a considerable amount. So naturally, the first thing he would think of is the military industrial group with which he has a good relationship.

He quickly came out of the phone booth, got into a car parked by the roadside, and left. A few people in the distance glanced at him a few more times, but he didn't pay any attention to it.

That's just how the federal officials are; it's nothing new to them.

About forty minutes later, Lance appeared in Senator Cleveland’s office—not the Capitol’s office, but his office next to the Capitol.

The offices in Congress are too small. Many ordinary people in the federal government think that a senator is just the senator himself, or maybe a few people including his secretary, driver, etc.

But in reality, behind every senator is an entire political team centered around him, and Senator Cleveland's team grew in number as his power increased.

His team has now grown to over fifty people and continues to expand. If his power grows stronger, his team may one day exceed one hundred people, even more than the president's team.

Therefore, the congressional offices simply cannot accommodate so many people. All senators, and even some representatives, will set up their own offices around the congressional area.

The federal amendments mentioned the salary standards for members of Congress at all levels, which are not enough to support so many people; the salaries are not even enough to support themselves.

"Please come in..." Senator Cleveland did not greet Lance this time, mainly because there were other visitors present.

He sat behind his desk and took off his glasses as Lance came in.

In the past two years, he has had to read a lot of text every day. The small characters were relatively clear at first, but they became blurry as he read them. Now he needs reading glasses to see the letters on the documents clearly.

A middle-aged man in his forties sat opposite Lance's desk. Lance had already stood up when Lance entered, and had a friendly smile on his face.

Lance took off his hat and cloak and hung them on the coat rack next to him. He then walked to his desk.

Senator Cleveland introduced him, “Ben, this is Lance, we often mention him.”

Then he looked at Lance, “You should have heard me say that this is Ben, the current CEO of McGregor Industries.”

In fact, the CEO didn't need to make a trip in person for this "order," but the person who placed the order was not an ordinary person, not an office in the Department of Defense, nor a department in the Presidential Palace; it was Senator Cleveland who placed the order himself.

So the president of McGraw Industries came over in person. Their relationship with Senator Cleveland was more than just friendship; it was also that of colleagues and much more.

Lance shook hands with him. "I've heard a lot about McGregor Industries these past few years. The last financial newspaper I read said that your total market value has exceeded five billion."

"This is an amazing achievement!"

Ben was very modest, saying, "This is mainly due to the federal government's recognition and trust in our products."

For two consecutive years, McGraw-Hill Industries has secured orders worth over 2 billion yuan, nearly half of which are profits. These profits, in the financial market and in the stock market, are worth far more than 1 billion yuan.

It could be two billion, three billion, or even more.

Because the war was not over yet, people believed they would be able to get more government contracts from the federal government the following year.

Moreover, their strong performance in both the civilian and international markets, with a market capitalization exceeding five billion, reflects the public's recognition of McGraw-Hill Industries' value over the next three to five years.

This price is not fixed; it changes every day. Right now, judging from their stock price, McGraw-Hill Industries' market capitalization has exceeded six billion and is still increasing.

News that Congress would continue to increase military orders sent their stock soaring.

Analysts on Detland's financial street believe that after the new year's military spending is released in February or March, McGrey Industries' market value may exceed seven billion, and it may even become the first listed company in the Federation to break the ten billion mark!

This is the financial miracle brought about by the military-industrial complex during wartime!
A miracle built entirely from taxpayers' taxes!

It may not sound very appealing, but a miracle is still a miracle!

Ben remained humble in the face of Lance's flattery, and he also flattered Lance a couple of times. Mutual flattery in business is not a new phenomenon; it existed and matured in the feudal era.

Court jesters flattered each other to gain the king's greater trust and manipulate the court.

After exchanging a few compliments, the two sat down separately. Senator Cleveland handed Lance a federal government-issued bank draft, which was for ten million dollars and issued by the Federal Bank.

Lance can be cashed at any domestic or international bank that has settlement agreements with the Federal Bank, which facilitates the flow and transportation of funds.

Senator Cleveland can't just take ten million dollars in cash back and leave it here for Lance to come and collect, can he?
Although it will eventually be exchanged for cash by Lance and then transported to Lapa, for convenience, it is currently still a promissory note.

Lance carefully placed it in the file bag and put it away.

"You can discuss the rest with me. I have another meeting. If I'm not back by the time you've finished talking, you can leave on your own."

“You know, there’s a high chance I won’t have much time to take care of you. I have a lot to do tonight!” Both of them nodded. As an important figure in the government, Senator Cleveland’s dinner schedule was already booked for twenty days from now, and his other time was basically occupied as well.

After the two men got up and saw him to the door, they didn't actually stay there. Saying they would talk in Senator Cleveland's office was just a more formal way of putting it; they didn't really mean they would stay there.

They each took their own clothes and hats, and at Ben's invitation, the two went to a nearby private club.

Clubs are still very popular: military clubs, police clubs, workers' clubs, student clubs, teachers' clubs...

It is an important part of social interaction in this era.

The members-only club that Ben brought him to was extremely high-end and luxurious. Its purpose was to temporarily provide a high-class venue befitting VIPs for them to converse.

After the pretty girls brought up the food and left the room disappointed, Ben invited Lance to try some of the food and said with a smile, "Actually, I've wanted to get to know you for a long time, but you've always been in Lapa, and I have other jobs."

“When the senator called me today, I immediately told him I would come in person. I don’t want to miss the chance to meet you, Mr. White.”

“I’ve heard a lot of rumors about you and have a vague understanding of you.”

"But the moment I saw you with my own eyes, I overturned all my previous notions about you!"

Lance replied with a laugh, "Hopefully it's not too bad!"

"Oops?"

"No, of course not. On the contrary, it is even more outstanding and excellent than I imagined. I can't even find the words to describe it!"

Ben has many deceptive smiles on his face. Any successful person needs the ability to smile and look others in the eye while lying, and at the same time, to be able to concretely express their sincerity.

This is just the foundation for success. Ben did a great job. If you look into his eyes, you can feel his heartfelt thoughts. It's all true!
Lance smiled and said, "You're exaggerating. To be honest, I'm just an ordinary person who has a few more ideas than others and then puts them into practice."

He paused for a moment, then said, "I believe you must be a busy person, and so am I. Why don't we focus our attention on the important matters first?"

Ben nodded. "You're right, that's what I was thinking too."

“I heard that the president of Lapa did not specify a particular brand or model this time. This order is very important to us, and I don’t want to lose it.”

"If I didn't know, that would be fine, but now that I do, and I have the opportunity to access it, I hope you will ultimately choose us!"

This order was actually negotiated between the federal government and these military-industrial groups, but now Lance is in charge of the entire work in Lapa.

Regardless of who Lance chooses, Senator Cleveland will receive every benefit he's entitled to, so he prioritizes recommending his own people.

Unless someone is extremely stupid, the matter was already decided.

Lance didn't answer immediately, but was thinking.

Perhaps in order to settle the matter as quickly as possible, Ben continued, "Three percent."

"In reality, the gratuities we've given are usually only a little over one percent. Three percent is the maximum I can personally offer; anything more would need to be approved by the board of directors."

“I am very sincere and very eager to get this order, Mr. White.”

"Also, I have a gift I'd like to give you."

As he spoke, he took out a catalog from his briefcase and handed it over, saying, "This is the commemorative weapon for McGregor Industries' centennial next year. We will manufacture one hundred sets of pure gold commemorative items."

"Your name and number will be on it."

Actually, compared to the huge kickbacks, these pure gold firearms are not that valuable; they just have some other significance.

As Lance flipped through the catalog, he said, "I have only one request. If you can agree to that, I can agree to sign this contract."

Ben pursed his lips. "Please speak!"

Lance put down the catalog and looked at him. "If I buy from you in the future, I hope you can give me a better price."

Upon hearing Lance's words, Ben immediately understood that the processing standards for individual orders, corporate orders, and federal government orders were different.

Military enterprises typically have lower marketing and public relations costs for individual orders, and they don't need to spread out public relations costs, so they can make more concessions on prices.

For example, if a military enterprise spends 200 million yuan on public relations this year, then that 200 million yuan in public relations expenses will have to be spread across all government orders, and they certainly won't have to bear it themselves.

The benefits they give to those politicians are ultimately to be earned back from orders, or even more.

A government order that was originally worth one million might be quoted at one and a half million, or even more, because of the added public relations costs.

However, this does not apply to individual orders.

Individual orders don't incur public relations costs, resulting in lower order costs, more profit margins, and greater room for negotiation.

For the same order of one million, if Lance buys it in his personal capacity, he might only need to pay 800,000 or even 750,000 to buy it. This is the advantage of personal orders.

However, military enterprises do not pay much attention to individual orders, because individual orders cannot provide them with hundreds of millions or even billions of yuan in order value every year.

Without the slightest hesitation, Ben nodded and agreed, "I can guarantee you the most favorable policy!"

Upon hearing this, Lance extended his hand. He was never worried that Ben would deceive him by claiming the most favorable policy when it was not.

If he actually did that, it would only make people like Senator Cleveland question whether the benefits and promises he made to them were discounted.

This is the benefit of power and status.

Those who make promises to you will surely keep their promises!
Lance extended his hand and shook his. "It's a pleasure doing business with you."

"Happy cooperation!"

Having made his decision, he quickly left to go to Senator Cleveland to obtain the government order contract and then proceed accordingly.

However, Lance's 3%, or 2.7 million, kickback was immediately transferred.

The federal government is not short of money, nor are the military-industrial groups. It's only 2.7 million. In the blink of an eye, they've made even more from the stock market.

Not to mention that after deducting all costs, the profit from this 90 million order is 20 million.

That evening, Ben called Lance again, saying that their weapons and supplies had been loaded onto trucks and sent to Golden Harbor City. These goods would eventually be shipped from Golden Harbor City to Lapa.

Lance also cashed the promissory note. Ten million in cash might not seem like much at first glance, but when it was being loaded onto the train, Lance noticed that it filled seven or eight cubic meters, even filling the small warehouse in his private train carriage.

These are all 20-yuan banknotes. Once they arrive at Jin Gang City, they will be further split into 10-yuan, 5-yuan, 2-yuan, and 1-yuan notes.

There are even some denominations of coins. After all, there aren't many Federal Sols in circulation in Lapa, so it would be hard to find coins in denominations of twenty.

Lance wasn't comfortable leaving so much money on the train, so he left overnight, and Diego wouldn't be able to wait much longer.

He had to send the weapons and the money to Zhuolan as soon as possible to add fuel to the fire of the fighting between the government forces and the anti-government forces!

(End of this chapter)