Chapter 94 - The Growth of the Foolish Son and the Imminent Crisis
In certain shops specializing in alcohol, high-end spirits were often limited to just a few bottles. If a customer needed more, the owner would either contact a supplier or source it from other merchants.
High-end alcohol was expensive and tied up significant funds, making it a less attractive choice for profit-driven merchants.
The situation in Jingang City was no different. While there was a market for mid-to-high-end alcohol, sales were slower compared to low-end spirits. For merchants, quickly turning over their capital was their ultimate goal. Even a mere 5% profit margin could double their principal if the turnover was fast enough.
However, if capital turnover slowed—if the cycle from principal to product to sales revenue dragged on—even a 100% profit margin wouldn’t compare to the wealth generated by a 5% margin on rapid cycles.
This created a unique phenomenon: before the Prohibition went into effect, the merchants who were aware and started stockpiling alcohol overwhelmingly focused on low-end products. Hardly anyone stockpiled high-end alcohol.
Even if some did, they might have only hoarded a few hundred or a thousand bottles. Stockpiling more simply wasn’t cost-effective.
The reality proved them right. Mid-to-high-end alcohol priced at $5–$6 per bottle had doubled to $11. However, the cheapest spirits, which were originally $0.59, had risen to $2—a nearly threefold increase.
In recent days, with low-end alcohol still plentiful, its price growth had started to slow. Conversely, high-end alcohol, with its limited stock and steady sales, had seen its price accelerate.
Once acquired, the family wouldn’t sell it immediately.
While Lance basked in the euphoria of his newfound fortune, someone else shared his joy—perhaps even more exuberantly.
For the first time, Arthur had made a substantial profit without resorting to underhanded tactics. He couldn’t resist sharing his excitement with his family—through unabashed boasting.
At the dining table, Arthur gleefully declared his success to his parents. Congressman Williams, however, frowned at Arthur’s lack of composure, disliking how openly he wore his emotions. It made him look like a child, completely devoid of self-restraint.
This was precisely why Williams would never consider Arthur as his successor. A person like him would be eaten alive in the political arena, tossed into an oil drum, and dumped into Angel Lake before he even realized it.
Williams tapped his knife and fork together, staring at Arthur. “It’s dinnertime. Learn to keep quiet.”
Across from him, his young and beautiful wife interrupted with a laugh. “Arthur rarely does anything right. Let him have his moment. Besides, it’s just family at the table—no one else.”
The Congressman had a soft spot for his much younger wife. Sometimes she felt like a partner, and other times, like a daughter he couldn’t help but indulge. “Fine,” he relented. “Here, you make the rules.”
The woman turned to Arthur, smiling. “Tell me—it’s not just you who made it big. We made it big, right?”
Arthur froze momentarily, then remembered. His mother had contributed significantly to his second investment. Suddenly wary, he replied, “We agreed I’d give you $30,000.”
The woman delicately handled her knife and fork. “Did we?”
Arthur looked incredulous, glancing at his father for support. But Congressman Williams made it clear he had no intention of stepping in. “That’s between the two of you. I know nothing and won’t interfere.”
The woman blew her husband a kiss across the table, then looked back at Arthur. “We agreed on half. Did you forget?”
Arthur said nothing, and she adopted a hurt tone. “I raised you all these years, and now, for a little money, you won’t even talk to me?”
“Besides, am I asking for much?”
“If it weren’t for my money, you wouldn’t have made a single penny from this, let alone such a big profit!”
Arthur felt his blood pressure rising. The truth was, the return on this portion of the investment wasn’t as high as he had anticipated.
Following Mr. Jobav’s advice, he had stockpiled a large quantity of cheap, low-end spirits. Using some connections through Congressman Williams, he had secured them for $1.35 per bottle.
So far, each bottle had yielded just $0.85 in profit, netting him less than $160,000.
Initially, he would have only needed to give his mother $50,000. Now, she wanted $80,000.
When he thought it through, though, he realized the difference wasn’t as bad as he’d feared. Relenting, he nodded quickly.
His mother, pleased by his compliance, asked casually, “How much did you make in total?”
Arthur’s guard went up immediately. “What do you want?” he demanded, raising his voice for emphasis. “That’s my money!”
The woman turned to Congressman Williams, who dabbed his mouth with a napkin. “Answer your mother’s question.”
Under the weight of his father’s gaze, Arthur mumbled, “About $500,000.”
The Congressman was momentarily stunned. “That much?”
He had expected maybe $200,000 or $300,000 at most, but hearing that his youngest son had made half a million took him by surprise.
Then came the critical question. “Where did you get the capital?”
Arthur explained. “Mom gave me $250,000. I took a $250,000 loan from Mr. Jobav. Then I pawned some of my watches and cars to the bank for about $100,000.”
“Before that, I had already liquidated all my savings—$200,000. I used it to stockpile a batch of high-end spirits.”
“All in all, my capital was over $800,000. So, making $500,000 doesn’t seem like much to me.”
Congressman Williams’ expression turned stern. “I hope you didn’t misuse my name.”
He paused before continuing. “I didn’t expect you to go this big. Get rid of everything you have left, as soon as possible.”
Arthur was baffled. “But they’re saying the prices will rise even more in December! If I sell now, I’ll lose out!”
“I’m not negotiating, Arthur. This is an order. Do as I say!” The Congressman’s tone left no room for argument.
Across the table, the woman coughed lightly. “Darling, why not explain to your foolish son why you’re making him do this?”
Williams hesitated. “I didn’t think he needed to know. As long as he does what I say, the reasoning shouldn’t matter.”
“But since you brought it up…”
He began explaining. “You’re sitting on too much alcohol. We’ve just joined the Prohibition Alliance. To demonstrate our commitment to those above us, we need to show some results.”
Arthur’s mother chimed in, “Like catching a few alcohol smugglers.”
Williams nodded. “Exactly, dear. Catching a few smugglers.”
“If this were just a small operation, I wouldn’t care how you handled it. But with over a million dollars’ worth of alcohol in your hands, those who already dislike me could report you to the state government. I wouldn’t be able to protect you.”
“So, for your safety and the family’s, you need to liquidate it all within a week.”
“You’ve already made $500,000 to $600,000. Don’t let greed ruin you.”
Arthur wanted to argue—waiting until December could net him $700,000 or even $800,000. But the look in Williams’ eyes made him reconsider. He lowered his head. “I understand.”
Williams thought for a moment. “Let James help you offload the alcohol. I’ll ensure every penny goes to you.”
James, Williams’ eldest son and Arthur’s half-brother, was a rising political star in Jingang City.
While the alcohol was a liability, it could also help James build connections with influential people.
Arthur started to protest, but he stopped himself. In this family, everything belonged to James, while he was just the dispensable “foolish son.”
After lunch, Congressman Williams called James. “Your brother has over a million dollars’ worth of alcohol. Help him offload it as soon as possible. You know what I mean.”
James glanced at Arthur, surprised. In his mind, this fool was only good at causing trouble and making life harder for their father.
“What’s with that look?” Arthur snapped. “Can’t I make money?”
James chuckled. “Of course you can. It’s just… hard to believe.” His expression seemed to say, The family fool finally grew up.
Williams ignored their banter and reiterated, “Be quick. The governor is desperate for attention and will seize any opportunity to make an example. Let’s not become his target.”
James sobered up. “Understood. I’ll start contacting buyers this afternoon.”
“By the way, what kind of alcohol is it?”
“Any high-end stuff?”