Shadow Empire

Chapter 1205 Everyone believes they can become rich through hard work.

Everyone is curious about how much money Lance makes from the liquor business so that he can still share the profits with the Socialist Party after supporting them with hundreds of millions of dollars every year.

Everyone has curiosity, and once curiosity is aroused, one will definitely want to figure it out.

In fact, the profit margins of alcoholic beverages are quite transparent. Before the implementation of Prohibition, the profits of the brewing industry were basically out in the open.

It's clear at a glance how much grain can produce how much alcohol, and what the costs are for each stage!
The only thing that has gone up in price is some of the ingredients used in winemaking. For example, the price of grapes used in winemaking has increased outrageously, from seventy or eighty yuan per ton to about six thousand yuan per ton now.

In fact, its price had already exceeded 7,000 yuan a few years ago. From 170 yuan to 7,000 yuan, if it weren't for the long time required to grow this kind of grape and the strict requirements of geography and climate, many regions might have given up growing crops and switched to growing grape varieties for winemaking.

In the past two years, due to the war and other social reasons, such as the rise in the price of alcohol, the economy of many regions has been affected by the war and is in a downturn, so the price of grapes has fallen, but it is still at an unbelievable high!

If we disregard the cost of grape wine and use ordinary grains as the raw material for brewing, then the cost is lower and the profit is higher.

The price of these grains has also increased compared to the past, but this increase is limited to four or five times. Any higher and problems will arise, and there are also huge regional price differences.

Therefore, it cannot be used as a completely accurate standard; it only applies to the situation within the federal government, where food prices have increased nearly threefold compared to the past.

It may seem that the cost of alcohol has increased threefold, but in the actual cost system, its increase in weight is not as exaggerated as people imagine.

Because in the entire cost system, food actually accounts for the smallest proportion.

But how much has the price of alcohol increased?

The price of wine has risen from five or six yuan a bottle to thirty-seven or thirty-eight yuan a bottle, and there are even wines that cost forty or fifty yuan a bottle. If we calculate based on the general increase of eight times, and the cost increase is less than one time, how much has the profit increased?
Of the 37 or 38 yuan bottle of wine, the cost is no more than 7 or 8 yuan, and the rest is all profit (the cost has dropped a lot since the war)!

After understanding these circumstances, people can only marvel at Lance's enormous business!
No wonder he's so rich. Some ordinary, established chaebols look rather dwarfed in comparison to him. After all, not every conglomerate or chaebol can earn more than 100 million in profit every year, but he can.

These mayors accepted the hefty profits from the alcohol crime business without question, taking it as part of their new job perk.

This is also why they are unhappy with Lance withdrawing this portion of the profits. He clearly made so much money, but he is only willing to give them so little.
However, his sudden suggestion that the mayors could act as "exclusive agents" seemed to have lessened their dissatisfaction considerably, and some mayors even had a deep and interesting look in their eyes.

They began to whisper among themselves to the people around them, while Lance sat there watching them murmur.

The discussions in the meeting room gradually grew louder, with more people joining in. Some even left their seats and went to other places to discuss the matter with mayors from other areas.

It wasn't until about ten minutes later that these people returned to their positions, and the commotion gradually subsided.

At this moment, someone stood up and said, "Mr. White, I have a question. If we become your distributors for your beverages... what will happen to your current business?"

Lance looked at him, a typical Federation man in his fifties with graying hair. Some people say that this type of typical Federation man is very difficult to deal with; they are very xenophobic and have strong discrimination against non-Federals.

It seems that this rumor was not true!
This gentleman was very humble and polite, and knew to use honorifics.

Lance gestured for him to sit down. “We will transfer all sales to you. If we reach an agreement on this, then you will be in charge of the beverage distribution for all bars in your city.”

"If your city can sell 10,000 bottles of wine every day, then I only need to guarantee my profit. As for how much you can sell those 10,000 bottles of wine for, or how many bottles you can sell, I don't care."

"I will no longer sell directly to sales outlets in your city. The wine delivered to you will only be given to you to sell. Do you understand?"

The mayor couldn't stop smiling, and his slightly gray mustache trembled. "I understand."

After he finished speaking, he sat back down. He didn't say whether he supported or opposed the argument after understanding it, but people could already tell from his behavior that he seemed to have sided with Lance.

Yes, just like Lance said, how much they can earn depends entirely on themselves.

These are the absolute controllers of every city and town; they know how much money they can get from them!
Even if it's not as many as it is now, it's definitely not a small number, and this will also give them stronger control over the city!
At this moment, another mayor stood up; he also had a question—

“Mr. White, some mayors did not attend today’s meeting, and it is possible that they will not attend such events in the future. So, what about the wine in their cities…”

Everyone's eyes immediately turned to him. Lance considered for a moment, "If they voluntarily give up cooperating with us, then I will not interfere with the sale of alcohol in the areas they control. You can contact the sales groups in the city yourselves and sell your alcohol there."

This decision made the smiles on people's faces even brighter!
Lance then tapped the table twice, and the previously noisy conference room quickly fell silent again.

“I need to make a simple explanation to you all. I do promise that all goods in Indenor will only be delivered to your designated representatives, but that does not mean that I will refuse other people, such as local gangs, if they come to my warehouse and ask me to buy alcohol.”

"In other words, if you expect to sell a bottle of wine that costs thirty dollars for one hundred dollars, then you will only force them to buy wine from farther places and then transport it back."

“They may not buy locally; they may buy from Likale or South Yaan, or from other smugglers. There is a risk in that.”

"I can't guarantee that after I sell the drinks to you, all the gangs will have to and can only buy from you, so you also need to think carefully about your sales strategy and how to form a more stable relationship with them."

"In addition, I will supply you with the goods at a price one dollar lower than the retail price they sell to them, for each bottle."

"This is a concession I'm making for our everlasting friendship. I hope this concession will make you understand my sincerity!"

The mayors looked at each other, and eventually, smiles appeared on their faces.

One of the elderly men, who looked to be around seventy years old, was short and thin, and stood up. "Mr. White, I think we have felt your sincerity, so what's next..."

As a seasoned politician, he knew very well that if they monopolized the liquor market, they would gain not only wealth, but also power—lasting power!
They will control all the gangs and criminal groups in the city, and their families will maintain control over the city for a long time.

Even if they fail to be elected mayor, the city will still be under their control, and it's only a matter of time before they are re-elected.

The lower the political level, the more brutal and ruthless it becomes: assassination, sabotage, framing, and persecution. When keywords like politics, wealth, and gangs are linked together, they form terrifying interest groups.

More than acquiring more money, they actually value lasting power, status, and everything else!
Lance knew what these people were thinking and what they wanted, so he gave them something they couldn't refuse right away.

“You can arrange for your family members or find an agent to sign some supply agreements with us. Of course, if you don’t care about the negative impact, I can also have someone deliver the goods directly to you.”

"Once we sign this agreement, within a week, our people will completely leave your area and hand over the entire distribution channel to you."

"Furthermore, it's a cash-on-delivery transaction."

Mayors, town heads, and even sheriffs all nodded in agreement. This was reasonable, fair, and sincere!

Some people couldn't wait to stand up and confirm the matter immediately so that their families could start preparing for this big deal.

Lance could see their eagerness and smiled as he asked Erwin to bring out the prepared documents.

These are all very ordinary supply contracts, and they do not involve any prohibited items. These contracts were not signed by them, but by their family members or agents.

You can show it to them first.

After receiving the documents, most of the mayors only glanced at them before putting them away. They weren't professionals; they wouldn't use their unprofessional abilities to handle professional matters. Once they returned, someone would help them figure out if there were any problems. Seeing that these mayors were getting restless, Lance didn't insist they stay and let them leave first.

He believed that everyone would soon gather together again.

After seeing off the last sheriff, Erwin asked curiously, "I don't quite understand, why give them the profits?"

Lance lit a cigarette. "If we keep giving them the same amount of money, they'll only become more and more resentful of us. But now, I'm giving them the choice."

"After experiencing great disappointment and then gaining new hope, they know how to choose the path that is most beneficial to them."

"And they won't hold any grudges against us."

“These people together are a powerful force. I don’t want to give them that much money, but I need their cooperation.”

"Then doing it this way is obviously the best approach."

If you earn twenty dollars but only give sixty cents to someone else, they'll think you're a bastard and will seize any opportunity to retaliate, even if they get nothing in return.

But if how much he can get doesn't depend on how much you're willing to give him, but on how much he can get from those gangs through his own abilities, then he won't have so much resentment.

He simply transferred his dissatisfaction at not being able to get much money to the fact that the gangs were unwilling to cooperate with him. Lance got what he wanted without making too many concessions, and at the same time, he didn't have to bear any resentment.

Irwin shook his head. "This is too complicated for me. Does that mean we should withdraw from here?"

Lance did not deny it. "Indenor State is too big. We already control Likale State. If we control Indenor State as well, even the Socialist Party will have some complaints about us. After all, we are a gang, not a department of the federal government."

"Instead of showing everyone our most dangerous side, let them see the harmless side of us."

"Hiding the knife is to avoid drawing attention to it; only then is the knife truly intimidating!"

Irwin still didn't quite understand, but he instinctively knew that Lance was right about this, using "knife" as a metaphor.

The moment a young man takes out a folding knife, it means he is no longer in great danger.

But the most unsettling moment is when he puts his hands inside his clothes and hasn't taken them out yet!
After resolving these matters, Lance visited the lieutenant governor because he needed his help with some upcoming tasks—to get in touch with mayors who hadn't previously been in contact with Lance and discuss potential collaborations.

After all, the profit margin on alcohol is really huge, so huge that Lance can't give it up. And money becomes unstoppable once it gains the support of power in the Federation!

The lieutenant governor was very welcoming of Lance's visit. Everyone knows that Lance is now a major financial backer of the Socialist Party and one of the masterminds behind the downfall of the Wade family.

To reach the level of deputy governor, it's not that he has no one behind him, but it's also debatable how capable this person or these people are.

Otherwise, he wouldn't be the lieutenant governor, but the governor.

After having his secretary bring him coffee and some pastries, he closed the door, leaving only himself, Lance, and Erwin standing in the corner of the room.

"I heard you've been here for two days?"

Lance did not deny it; he picked up a small, pretty-looking pastry from the table and popped it into his mouth.

As always, it was almost cloyingly sweet, forcing him to pick up the not-so-bitter coffee and take a sip. "I'm going to talk some business with those mayors."

These things can't be hidden. Now that the former lieutenant governor has become the governor, if he wants to know, someone will tell him what happened, so Lance didn't hide them.

The governor was a little surprised by Lance's candor, but also seemed pleased, since everyone likes to be honest with others. "That's a big deal!"

"They say your annual sales in Indenau State are over 300 million!"

He didn't have a clear idea of ​​how profitable gangs were until he heard about this figure.

Lance knew the governor's eyes were red, after all, it was such a large sum of money.

He does indeed transfer hundreds of millions of dollars in profits to the Socialist Party every year, but the amount he actually receives is probably only tens of thousands or hundreds of thousands, at most.

Anyone who reaches a higher position will naturally want more.

Previously, he was just a lieutenant governor, a minor figure who received roughly two to three hundred thousand dollars worth of party dividends annually from the entire party system, including but not limited to cash and some benefits.

Now he wants more, because he's the governor now, and his ambitions are growing.

Why can't he seek re-election?

Why can't he seek a seat in Congress?

Why can't he even seek to run for president?

Well, that's unlikely, but he can use his current power to accumulate more political resources for himself and his children, giving his children and grandchildren a better political environment.

And all of this is inseparable from money.

Money is the only universal passport in the federal government, bar none.

Lance was well aware of this, and he smiled, "If you're interested in alcohol, you can find an agent and get your supplies from me. I can help you find downstream buyers and ensure your profits."

The governor hesitated for a long time. He knew that doing so would definitely give Lance some leverage, but... interests are tempting.

The mayors knew they would most likely spend their lives in their own cities, so they didn't care. But the governor had new ideas and new ambitions.

All of this requires money.

It was only when he stood in this position that he realized why Governor Wade and Lance had fallen out over the division of money.

As governor, you need to support your own political team, much like starting a company.

He needs to find some capable managers (staff), as well as strong executors (people who get things done), and have good relationships with brokers, and also ensure that people around him can benefit from him.

Political, policy-related, and financial.

If he wants to go further, gain more power, including winning the next election, then the annual expenses will be an astonishing figure!

If you want to corrupt or win someone over, verbal promises are useless!
Even unions know to give free fried chicken and drinks to workers who are willing to strike and cause trouble with them. Doesn't the things the governor needs to do deserve at least tens of thousands or hundreds of thousands of dollars in benefits at a time?

Money is very important!
(End of this chapter)