He Opened A Matchmaking Agency In 18Th Century London [EN]: Chapter 67

67. Raising Funds

Two days later, at Mr. Osborne’s mansion.

Mr. Osborne’s death, after he had been missing, was officially recognized based on the testimony of several witnesses.

As a result, Miss Catherine Osborne was determined to be the sole heir.

The problem was that her inheritance wasn’t enough to cover the various debts and operating funds the factory was responsible for.

While the public’s interest was high due to the large dowry offered to find a son-in-law, the Osborne family’s financial difficulties quickly spread by word of mouth.

However, no one was willing to help after hearing about Mr. Osborne’s unfortunate story.

Only brokers looking for opportunities to buy the factory at a bargain price were swarming around.

At Catherine’s request, Ricardo and Theo thoroughly investigated Mr. Osborne’s stocks and government bonds at financial institutions.

This was because Catherine and Ricardo remembered Mr. Osborne owning quite a few stocks and government bonds.

However, the investigation revealed that there were no stocks or bonds left under Mr. Osborne’s name.

“It seems clear that Mr. Osborne cashed out all of his government bonds. Why would he do that?”

At Theo’s question, Ricardo replied with a troubled expression.

“I remember this friend of mine definitely had quite a few government bonds in the past, but around the end of last year… I don’t know where he heard it, but he suddenly asked about the ‘South Sea Bubble’ [a famous financial crash] that caused a big problem decades ago.

At that time, I explained the incident in detail without much thought, but it seems that my overly cautious friend heard that story and sold off all of his stocks and even government bonds.”

The South Sea Bubble was an event in England in 1720 where ‘stock manipulation’ was used to induce the conversion of government bonds into stocks, causing the stock price to skyrocket in a few months before plummeting.

Mr. Osborne, who had believed that government bonds were safe, seemed to have sold off all of his stocks and bonds out of concern.

However, it was strange that only 120,000 pounds remained in the vault, even though he had disposed of so many stocks and government bonds.

Ricardo felt sorry for Mr. Osborne’s financial situation, which was now burdened with debt.

“Hmm… this is strange. I always thought he had accumulated a great fortune while living frugally, but to think he had no money at all.”

Peterson carefully offered his opinion.

“I think he bought a large amount of wool fabric with the money from selling stocks and bonds. He would have needed a large amount of raw material costs for the 300,000-pound contract with the Russian company.”

Ricardo said with a stern face.

“Now that I think about it, I wonder if he was worried about the money running out as he operated the business, so he rushed Catherine’s marriage. Anyway, we must cover the bills and debts that are due in December.”

If there was no money at home or in the bank, the factory would be bankrupt due to debt, let alone normalizing operations.

*

That evening, at Mr. Osborne’s mansion.

After dinner, Catherine, Ricardo, Peterson, Blake the butler, and Theo sat around discussing countermeasures.

Ricardo opened the conversation first.

“It’s fortunate news that the 300,000-pound contract with Russia remains, but that doesn’t solve the current financial difficulties.”

Peterson also nodded.

“That’s right. There are so many things to take care of right now, such as bills and debts that need to be paid immediately, the cost of various delivered goods, and unpaid wages.”

“I’m really sorry to say this in front of Catherine, but if we don’t quickly cover these many debts, not only the factory but also this house we live in will be forcibly taken over at a bargain price,” Blake the butler said with a dark face.

“In fact, Miss also put the factory up for sale. But they were offering too low a price. And most of them were only interested in demolishing the factory and building houses or doing other businesses.”

Catherine, who had been silent with her head down, opened her mouth.

“I don’t want to just let my father’s 30 years of blood and sweat be torn down. Even if I sell it, I want to sell it to someone who will use the factory as it is now.”

Ricardo fully understood how Catherine felt.

“Hmm, then… we have no choice but to sell the factory to an operator in the same industry, using the 300,000-pound Russian contract as leverage. Still, Osborne’s factory is famous in this area, so there will be a weaving factory owner who wants to buy it.”

Everyone agreed with Ricardo’s words.

“Yes, I think that’s the best option.”

“Shall we proceed with that?”

“I will look into it right away from tomorrow.”

***

Blake the butler, using the 300,000-pound contract with Russia as leverage, went around looking for local weaving factory owners.

However, they all offered ridiculous prices.

They knew better than anyone that Osborne’s factory would soon go bankrupt, so there was no way they would offer a good price.

A few days later.

Theo was looking around Mr. Osborne’s factories alone.

It was a structure where one large factory and two small factories were gathered together, and it was a state-of-the-art factory optimized to handle everything from making yarn from textiles to weaving fabrics at once.

As Catherine said, he didn’t want to let Paul Osborne’s lifelong hard work collapse in vain like this.

‘The industry that will grow tremendously beyond the steam engine in terms of profit is the cotton industry. Selling this factory at a bargain price is nothing more than giving away a goose that lays golden eggs…’

Theo’s plan was not just to set up a matchmaking company in London.

He was planning to create ‘Theo Street’ in London.

He planned to create an entire wedding street by placing wedding halls and ballrooms linked to the matchmaking company, delicious and atmospheric restaurants, cafes fragrant with tea and coffee, clothing stores and dress rental shops full of clothes you want to wear, hair salons that style your hair, and flower shops throughout the alley.

To do so, he had to purchase the land in the entire area, acquire or demolish existing buildings, and build new buildings.

In the end, astronomical funds were needed for Theo’s plan to be realized.

‘Yes. Even to create such a wedding street, I have to boldly jump into the cotton industry.’

The fields that brought the greatest profits during the British Industrial Revolution were steam engines, mines, and the cotton industry.

In particular, the remarkable success of the cotton textile industry, including Manchester, was the number one contributor to leading Britain to become the ‘British Empire.’

Theo was already aggressively investing in steam engines and mines, and he was thinking of investing in the cotton industry just before the groundbreaking development of steam engines and weaving machines.

‘Since I was going to actively invest in the cotton industry in about two years anyway, I can think of it as that time coming a little earlier.’

If the cotton industry craze blows in a few years, large factories like Osborne’s weaving factory will never be able to be purchased at the same price as now.

As Theo, who knows the future history, it was a good opportunity he couldn’t miss.

‘The profits from investing in mines and steam engines will be quite substantial. First, I’ll liquidate that… Ah, that’s right. There was also the Jamaica farm I received from Baron Palmer. Yes. Since it’s difficult to go to Jamaica and run the farm anyway, I should get rid of that farm this time.’

The more funds you have, the better when making a sure investment.

As Theo, who has a firm belief in the cotton industry, decided to gather as much funds as possible and invest boldly.

‘There’s not much time. Let’s liquidate what we can as quickly as possible and normalize the factory. If I buy the factory, Miss Catherine will be able to live without worrying for the rest of her life.’

After looking around the factory, Theo decided to call Ricardo, Catherine, and Peterson together to announce his decision.

*

Evening time when everyone was gathered.

Theo asked Peterson.

“Mr. Peterson? If we sell the factory at a fair price, what is the most appropriate price that has been calculated?”

Peterson was conducting his own thorough investigation into the value of Osborne’s real estate and factory.

Peterson explained while looking at the notes he had carefully written down.

“First, Osborne Factory 1 is calculated to be 52,000 pounds, and Factory 2 and Factory 3 are calculated to be 12,000 pounds and 14,000 pounds, respectively. So, the current fair market price of Osborne Factory is a total of 78,000 pounds.”

He presented the contents of his investigation into the surrounding market prices, factory sales prices, and the status of machinery and equipment through various investigations.

“The problem is that there is no one who can take over the factory at this price right now. There are three people who have expressed their intention to purchase it, but one person offered 30,000 pounds, and another offered about 40,000 pounds.”

“Hmm… they’re completely trying to get it for free.”

Ricardo clicked his tongue at the price, which was less than half the value.

“The last person offered about 55,000 pounds and wanted to take over the factory. A man named Enoch Redmond…”

As soon as he heard his name, Blake the butler frowned.

“That person is absolutely not allowed. He is a man who does cotton weaving away from Osborne Factory, and he has been slandering and harassing the owner behind his back for decades. He was also the first person to take away the factory’s skilled workers when the owner’s incident happened this time.”

Catherine’s expression, who was sitting next to him, was also not good. She knew Enoch Redmond’s behavior well since she was a child.

Enoch Redmond lured the skilled workers of Osborne Factory as if he had been waiting for the factory to not operate properly for nearly two months due to Mr. Osborne’s death.

The skilled workers of Osborne Factory, who could not go to distant areas because of their families, signed a contract for about 70% of the weekly wage that Mr. Osborne had given them and had no choice but to move to Enoch Redmond’s factory.

Because Mr. Osborne had treated them so well, 70% was equal to the normal salary of other factories.

“Haven’t you found that Alec Parker guy yet?”

At Ricardo’s question, Blake the butler sighed.

“It seems that he has run away to another distant place. Earl Parker only says he doesn’t know, and the magistrate is only half-heartedly saying that he is looking hard…’

“He’s a guy who stole more than 100,000 pounds. He should be caught immediately and thrown into debtor’s prison, but the magistrate is taking his side.”

100,000 pounds was more than enough money to solve the factory’s immediate problems.

It was then.

Theo, who had been carefully contemplating, raised his head and opened his mouth.

“I have something urgent to tell you all.”

The people gathered looked at Theo, wondering what was going on.

Theo looked at Catherine and said.

“Miss Osborne?”

“Yes?”

“I will take over Osborne Factory for 78,000 pounds.”

“…!”

The eyes of the people gathered widened at the bombshell statement that he would buy the factory.

The most surprised person was Ricardo.

“No… Mr. Sanderson? How are you going to afford such a large expense, not just a penny or two?”

“Actually, at first, I was also considering just lending Miss Osborne the funds needed to normalize the factory.

However, after calculating the returning bills and debts, unpaid raw material costs, and unpaid wages, I came to the conclusion that it exceeded the range I could lend.

So, I decided to boldly buy it directly, even if it meant taking risks. I will recover the profits I have invested in other places, and gather as much investment and loans as possible to buy the factory. I have been considering investing in the cotton industry anyway.”

“What about the work you are doing in London?”

“Even if I buy Mr. Osborne’s factory, I don’t intend to operate the weaving factory directly. I plan to operate it with someone who knows more than me and will handle the work professionally as the factory manager.”

Ricardo expressed his support for Theo’s decision.

“It’s the best thing if Mr. Sanderson buys it at such a good price than giving it away to a stranger at a bargain price…”

Catherine also couldn’t hide her joy.

“It’s really shameless of me to ask, but if you have the means, I would like to ask you to do so. If Mr. Sanderson buys the factory, my father in heaven will be very happy.”

As positive reactions continued, Theo made a suggestion to Peterson.

“Mr. Peterson?”

“Yes?”

“From what I’ve seen so far, I’ve determined that Mr. Peterson is the most suitable person to be the overall CEO of this factory.

I think the best way to operate it would be to leave Hester Walker, the current factory manager, as the person in charge of practical affairs, and have Mr. Peterson take overall management of all trade and contracts. What do you think?”

Peterson, who was surprised, waved his hand.

“CEO? Me? Oh, no. I have no experience, and I’m still too lacking to handle such things skillfully.”

As he was unsure, Theo threw out a random question.

“Mr. Peterson? If we don’t have ‘thaler’ [a type of silver coin], the currency they trade in, in the contract for textiles with Russia that Mr. Osborne signed, how should we pay the tariff? Is it possible to pay with a foreign currency other than thaler?”

It was a sudden question from Theo, but Peterson answered without hesitation.

“According to the 1766 trade agreement, British merchants can specially pay tariffs and other taxes on import and export goods with the currency circulating in Russia, not thaler.

Britain has the most favored nation privilege to pay with Russian currency, not thaler, in contracts with Russia.”

Everyone was surprised and bewildered by his fluent answer.

And, at Peterson’s answer, Catherine clapped her hands and shouted.

“Ah! So that’s why there were several bundles of foreign currency in my father’s vault. My father must have obtained Russian money for the contract with Russia!”

Theo smiled and turned to Ricardo and asked.

“Mr. Ricardo. Since you are knowledgeable in the field of economics, how did you hear Peterson’s explanation of trade with Russia?”

“I don’t know when Mr. Peterson accumulated such knowledge about negotiations. There must be many things to consider when trading with Russia… He knows it inside and out. Amazing. I don’t think I’m at a level to evaluate, haha.”

Colin Peterson’s skills, which seemed like a professional merchant, were greatly helping to save Mr. Osborne’s precious factory, which was like his life.

***

With everything decided, Theo left for Birmingham the next morning.

First, he had to meet James Watt and Mr. Burke to discuss investment profits and then return to London to liquidate other funds.

Arriving in Birmingham, Theo met Matthew Boulton and James Watt, explained the urgent situation, and recovered the profits he had made so far.

Soon, he also met Daniel Burke and was promised a portion of the mine investment profits.

It hadn’t been long since he invested, but thankfully, both James Watt and Burke readily cooperated.

Roughly adding up what he received from them and what he had collected so far, it totaled about 30,000 pounds.

In addition, there was the 10,000-pound success fee he received from Baron Palmer and the Jamaica farm.

‘Yes, let’s get rid of the Jamaica farm quickly this time. After that, if I match the insufficient amount with investments and loans, it will be roughly possible.’

As soon as he arrived in London, he planned to raise funds by selling the Jamaica land he had received as a gift from Baron Palmer, as well as the extra carriages.