"The reason the Altria Group received the lion's share when the American Tobacco Trust was broken up was not because our Willard family was one of the thirteen founding shareholders.
It was because we were shameless.
In our line of business, virtue is a luxury one must discard.
Even if this time you happened to choose the right side, I still have to teach you this lesson."
Rosen Willard, father of Phoenix, spoke in his cold, pragmatic tone.
After the recent incident—engineered under his father's command and carried out by his elder brother—Phoenix had matured considerably. He had learned to read between people's words, to discern their true intentions.
Rosen could see that his son had not fully accepted this philosophy, but he wasn't worried. He believed the sting of betrayal had already planted a lasting wedge between Leo and Phoenix.
No son of the Willard family should ever grow into someone else's echo.
"Gentlemen, Mr. Valentino has arrived."
Walter stepped into the reception hall to announce.
Even before he entered, Leo's voice rang out with joy:
"Phoenix, my brother! To see you safe—it's such a relief!"
He strode forward and pulled Phoenix into a firm embrace. Leo had already investigated the matter and knew Phoenix was innocent this time.
Phoenix, feeling the genuine warmth of a friend who, instead of anger, showed care after such a betrayal, melted under the strength of Leo's embrace. For a moment, all of Rosen's lessons faded from his mind.
Watching the two men, Rosen sighed inwardly. His efforts to drive a wedge had failed. Who said Leo was a man of petty vengeance?
After brief introductions, they all sat again. Looking at his son seated loyally beside Leo, Rosen thought grimly: give it another year or two working alongside this man, and Phoenix would be entirely molded into Leo's image.
The atmosphere grew tense. No one spoke. Rosen had motioned more than once for Phoenix to raise the matter he'd been instructed to, but feeling the sincerity of Leo's friendship, Phoenix refused.
At last, Rosen cursed his useless son silently and broke the silence himself:
"Mr. Valentino, congratulations on acquiring Tishman Realty. With this, American Real Estate Group is stepping from an ordinary company into the ranks of great enterprises."
He passed Leo a copy of Le Monde, its front page headline blazing:
"American Real Estate Group shares hit $59.5, on the verge of breaking the post-Depression record."
Leo smiled. "Precisely why the day after tomorrow, I will call for an expanded board meeting. At this historic moment, I intend to persuade shareholders to issue new stock—to help this company become the great enterprise you speak of, Mr. Rosen."
"That's excellent, Leo! We should have done this earlier. With our current valuation, issuing another ten million shares will provide enormous fuel for expansion!" Phoenix said excitedly.
Rosen rubbed his face with his hand. Fool. Don't you realize this is about bringing in new blood and pushing out the old?
The current distribution was clear:
Leo held 36%, the unchallenged majority.
Altria Group had 20%.
Merlin Real Estate: 8%.
Gulf Real Estate and Canada's Brookfield Real Estate: 3% each.
The Morgan family: 5%.
But in Truman's election, nearly all of these shareholders had failed him. Adults must own their mistakes—and Leo intended to push them out.
Rosen knew he could not sit idly by while Altria was cut out. He leaned forward:
"Leo—if I may call you that—Altria does bear responsibility for the past. Therefore, I propose compensation. For the sake of Phoenix's friendship with you, I ask that you guarantee our group's stake in American Real Estate."
Rosen was shrewd. If Leo sought to use Phoenix to drive a wedge between father and son, then he would do the same—leveraging his son's bond to press Leo.
Leo smiled. As expected of a man aiming to make Altria the next American Tobacco giant.
Calm and confident, he replied:
"On the contrary, Mr. Rosen—precisely because of Phoenix, I cannot allow Altria to keep such a high share. In my view, perhaps 10% is more appropriate."
Phoenix's eyes dimmed. He understood his father's ploy, but still, hearing the reality stung. So even Leo values our friendship only so far—just like my father.
Rosen, however, felt pleased. He had come prepared to pay a price to keep their stake safe.
But Leo continued:
"For Altria to retain even that 10%, there is a condition. Phoenix's original position was as chairman of Altria's investment subsidiary. But as I know, the true control lies with his elder brother, Orne Willard.
That means my good friend appears powerful, yet in truth he is merely a powerless employee.
If you wish to imprison him again, you easily could. That is unacceptable. The shares of that investment company must be transferred into Phoenix's name before the shareholders' meeting. If not—Altria will be out."
Rosen's temper exploded. "You're interfering in our group's internal management! Have you considered that without Altria's support, your southern operations could grind to a halt?"
Leo rose as well, towering above Rosen:
"You threaten me, Mr. Rosen? I admit Altria's southern influence is significant, but you are far from omnipotent. In this election, without my intervention, many southern congressmen would have abandoned the Democrats—and lost all their capital. Now they are indebted to me.
And Father Cade of the Evangelicals is already on his way. With friends like these, American Real Estate will not suffer in the South.
On the contrary—"
Leo leaned close, voice hard:
"Many lawmakers now say smoking is destroying the next generation. They call for stricter tobacco control. Perhaps I should lend them support. Prosecutors, too, sit on piles of lawsuits against Altria—only the plaintiffs lack funds for lawyers. I could help.
And I own a newspaper beloved by the entire nation. They've been short on stories lately—perhaps these cases would make excellent serialized news.
So, Mr. Rosen, do you truly wish to go to war with me? Even at my weakest, I never lost a single battle. Today, I am far stronger."
Confidence radiated from Leo. With every sentence, Rosen's aura shrank.
The balance of power had shifted: Altria was no longer the benefactor but the supplicant.
At last, Rosen played his card: a trade. Altria would concede 5% of its own shares in exchange for American Real Estate giving up only 2%.
Moreover, the Willards would transfer their 34% stake in Southern Railway to Leo.
Leo accepted—partially. He granted merely 5% worth of concessions.
As the agreements were signed, Rosen prepared to leave, face dark.
But Leo handed Phoenix another folder and a letter of appointment.
"Brother—this is for you."
Phoenix's eyes widened as he read. The document stated that 3% of American Real Estate was gifted to him, held under the James River Association, inheritable only by him and his descendants.
"I… I don't have money for this, Leo!" Phoenix stammered.
"You don't need money, brother. Remember what I told you on Lynchburg Hill? As long as you stand firm with me, it will be the best decision of your life.
I also promised: whenever I find a profitable venture, you'll be invited.
Now—I invite you to serve as acting chairman of the Central American Trade Group. You will hold 5% of its shares, with full proxy to represent me.
If you don't want to be imprisoned again, my brother—you must stand on your own feet."
Phoenix's eyes shone with tears. "I understand. Thank you, Leo. I will support you forever. As you said—we are brothers!"
It's over. My son has been remade in another man's shape.
Rosen's heart sank.
Leo's gifts dwarfed anything he, as a father, had given. And Rosen knew it. But rather than wallow, he eyed Leo's new business.
By now, Leo had earned a new nickname in American business circles: the Philosopher's Stone of America—everything he touched turned to gold.
From real estate to computers—industries others dismissed, he had built into billion-dollar empires.
So this new company was bound to succeed.
Rosen nudged Phoenix, urging him to ask for Altria's involvement. Phoenix, loyal to Leo now, refused.
So Rosen asked himself:
"Leo, Altria has a mature tobacco distribution network in Central America. Could we invest in this new trade group of yours?"
Exactly what Leo had hoped for. Spiritual influence was one thing, but in the material world, he needed a seasoned guide. And Altria fit perfectly. That was why Phoenix had been placed as figurehead of the new company.
As Rosen and Phoenix departed, Leo was satisfied. He had reclaimed 2% of stock, severed Phoenix from his family's control, and secured a deeper foothold into Altria.
Keeping Altria's 18% stake was intentional: their southern base made them more reliable directors than the cutthroat New York sharks. And, as a regional titan, Altria could help counterbalance the new shareholder soon to arrive—General Motors, through Marshall's hand.
Just then, Walter entered:
"Boss, Father Cade has arrived. Also, Carson Mason, and representatives from Gulf and Brookfield Real Estate are on their way."
Leo smiled. "So the vultures circle. Pack up, Walter—we're heading to General Eisenhower's banquet."
"Boss, aren't we going to meet them?"
"Let them stew. When we return from Kansas, the board expansion meeting will begin. By then, their desperation will drive them to show their bottom line themselves. It saves us the cost of negotiation.
They are not Altria. They are simply meat on my chopping board."