Morgan's entry into the steel industry was met with a formidable adversary, the Carnegie Brothers Steel Company. Despite facing competition from the Chicago steel industry, the Carnegies, being a massive family business, didn't perceive the Chicago steel industry as a fatal threat. However, the American Steel Corporation, spearheaded by Morgan, possessed the capability to pose a significant challenge.
In comparison to Carnegie Steel, Standard Oil quickly realized that J.P. Morgan, the financial titan, was venturing into the realm of physical industries. Rockefeller promptly relayed this information to his son in Texas and began contemplating the implications of this development. Officially retired from the Standard Oil business, Rockefeller Senior no longer interfered in its affairs unless there was a major crisis.
Now, Rockefeller Senior was pondering whether this development would have significant consequences. For many American corporate giants, the outcome of the Spanish-American War was a foregone conclusion. Since they were certain of victory, they didn't pay too much attention. Instead, they considered how they could benefit from the aftermath of the war.
For them, as Sheffield had said, the primary battlefield was domestic, and there was no need for battleships and cannons to determine victory or defeat. Soon, young Rockefeller in Texas transmitted this news to New Orleans via telegraph, but he was actually a step behind – Sheffield had already gotten wind of it.
Taking advantage of the cover provided by the war to enter the steel industry, if one didn't know that Morgan was a financial banker, they might mistake him for a high-ranking government official. He was using the conflict to shift the balance, a move usually associated with politicians, not businessmen.
Before news arrived of Cuba defeating the Spanish fleet, they received this surprising announcement. Sheffield couldn't help but feel somewhat bitter. Morgan's insight was truly exceptional, honed in the turbulent world of finance, and beyond the reach of ordinary individuals.
Since Morgan's entry into the financial sector, he had defeated major competitors both domestically and internationally, including Boston, one of the oldest institutions in the United States, and the Rothschilds on the European continent. He had ultimately secured the position of America's foremost banker.
Now, this banker's actions indicated that he was no longer content with reigning solely in finance; he was preparing to enter the physical industries and establish himself there as well. Sheffield was aware of history, and he knew that Morgan had ultimately succeeded, dominating in many industries. He became a king in both financial and industrial capital.
Individuals with such stature occasionally emerged in later generations, but none had been as successful as Morgan. Many internet companies had tried to venture into the physical sector without much success, and Tencent seemed to have no interest in the physical industries, focusing instead on expanding in the virtual realm. If there were any American companies that fit this description, Jack Ma's company might be one, but Sheffield had no way of knowing whether he would ultimately succeed; that was still in progress.
In the United States, Apple didn't quite align with Morgan's path, but Google appeared to be making moves in that direction. Google seemed to be the most powerful among American internet companies, consistently investing heavily in research and development. Huawei was the only Chinese company among the top fifty in R&D spending.
If R&D investment was an important metric, Chinese companies still had a long way to go, trailing significantly behind both China and the United States in terms of economic scale.
Future history was merely a reference point in Sheffield's mind. Regardless, he now knew that a player of immeasurable strength had no intention of merely being a king in finance; he was preparing to compete with major companies in the physical industries. Sheffield himself had no way to estimate how much money it would take to defeat Morgan.
"John's telegram asked for my opinion? I'm just sitting here, watching!" Sheffield mumbled under the watchful eye of his head bodyguard, Jessler. "As for my opinion, I'd also like to know what Standard Oil thinks. The Union Company doesn't have as much financial power as Standard Oil. Right now, within the entire United States, only Standard Oil has the financial strength to oppose Morgan. So, why are they asking me?"
However, Sheffield was also known for speaking his mind without reservation. In the past ten years, at least half of Standard Oil's efforts had been directed towards combating the Anti-Trust Act, as the country's first trust company. It was also currently the strongest and most influential company in a single industry. But now, they were constantly being harassed by the federal government due to anti-trust issues, and they had no time to meddle in other people's affairs.
Several years had passed since the enactment of the Anti-Trust Act, and now, even the DuPont conglomerate might no longer exist, possibly already bankrupted by Standard Oil's relentless squeeze. But understanding the situation didn't change the fact that there was nothing Sheffield could do about it. The Union Company was a capital-intensive business, and did young Rockefeller expect him to sell his land and compete with Morgan?
"What does it have to do with me? I'm more concerned about the outcome of the war!" Sheffield muttered. The Spanish fleet had yet to appear, and he couldn't risk sending his armed forces across the sea to Cuba. After all, didn't Theodore Roosevelt await their arrival in Havana?
The message conveyed by young Rockefeller held little value for Sheffield. What did Morgan's foray into the steel industry have to do with him? Standard Oil couldn't spare the resources, and neither could he.
Sheffield, who had been dreaming about the Spanish fleet at Oak Tree Manor, couldn't believe his eyes when young Rockefeller appeared there. He thought he was still dreaming. "What are you doing here? Weren't you supposed to be in Texas, sleeping with oil barrels?"
"Have you been keeping an eye on Cuba across the sea all this time?" Young Rockefeller, undeterred by Sheffield's sour expression, unintentionally commented. "As a major shareholder, don't you want to be concerned about the oilfield's production?"
"That land is mine, and you can't move it. The profit distribution is clearly defined in our contract, and you dare not swallow my share. The oil products produced by Standard Oil are much higher in quality than those from my refinery in Houston. With such a clear division of labor, what else is there to be concerned about? Of course, I care about industries that can generate profits." Sheffield explained, word by word, why he remained in New Orleans. He had invested heavily in the war effort, so he naturally expected returns.
"That's true," young Rockefeller nodded in approval, clearly confident in his family's enterprise. He elaborated on the bright prospects and, incidentally, flexed his muscles. "Other refineries produce oil products that don't meet our standards. As a result, they can't compete with our alliance. We've already established a comprehensive set of patent barriers and technological monopolies in this field. Even if they were the DuPont Consortium, Carnegie Steel, and Morgan combined, trying to bypass our technological barriers and confront our alliance in this industry would be a dead end. We are partners, and when we stand together, we are unbeatable!"
Just as Sheffield was about to nod and acknowledge the correctness of young Rockefeller's words, but also to express that he was currently most concerned about Cuba's situation (after all, his Southern partners were more interested in profitable industries in Cuba, and he couldn't afford to ignore that)...
"But I didn't come here to discuss that!" Just as Sheffield was preparing to speak, with a speech that wasn't any less verbose than young Rockefeller's, the latter suddenly made a sharp turn, redirecting Sheffield's prepared words back into his own stomach.
"So, why did you come?" Sheffield held his breath, guessing at young Rockefeller's purpose for coming here. Sightseeing? That didn't seem likely. Watching the outcome of the war? It didn't seem to have a direct connection to Standard Oil, and the portion belonging to Standard Oil was already reserved.
As a partner, Sheffield believed he had done a good job. He had a strong sense of business ethics, especially when dealing with giants. Though he wasn't overly considerate when dominating small businesses, it was a common human trait to avoid trouble with those who were stronger. He didn't consider himself any more shameless than other giants.
Seeing Sheffield's puzzled expression, young Rockefeller sighed heavily in his heart and spoke, "I have a preliminary assessment now, Sheffield United Company has virtually no accumulation in the financial industry. No wonder you chose to manage your own bank in the Wild West, where even a prominent banker wouldn't go."
This was not something unknown to the public. The United Company had never operated in the banking industry. But being so bluntly exposed by young Rockefeller left Sheffield feeling a bit embarrassed. He explained with a hint of awkwardness, "Isn't there always a starting phase for anything? Give me time, who says I can't excel in it?"
Young Rockefeller patted his suit and put on an air, then looked at Sheffield, who was about to burst out, and slowly said, "I'm afraid that before you've had time to grow and develop in this field, Morgan will have blocked your path."
"It's about Morgan again. I don't have the energy to care about the steel industry. Besides, Carnegie Steel Company is already there. Morgan would have to accumulate enough shares before negotiating with Carnegie Steel Company," Sheffield said. As soon as he heard that it was about Morgan, he sat up abruptly, staring directly at young Rockefeller. This was indeed Morgan trying to block his path.
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