Chapter 313: 0311 Pretton Trading Company [This chapter is sponsored by: "Walking Beast Line" - extra update 3/5]
Looking at Mr. Simon, who seemed like a local native, and the questions he raised, Lynch smiled and asked back, "Do I need to know this 'Pretton Trading Company'?"
Mr. Simon was stunned for a moment and then laughed. His demeanor was very kind, possibly because he was quite plump now.
Most fat people don't have a fierce appearance that causes discomfort; their physique and expanded features often give a sense of affability. This is why people might dislike fat individuals, but rarely feel threatened by them.
"Mr. Lynch, if you are just here in Nagariel as a tourist, then knowing about the 'Pretton Trading Company' isn't important, but if you're planning on doing business locally, I think you should know about the 'Pretton Trading Company' and its related matters!"
Mr. Simon's tone wasn't as calm as when they first met. Although his tone and pitch hadn't changed much, there was a sharpness noticeable from his attitude.
He was warning Lynch, at least reminding him, of the importance of the 'Pretton Trading Company'.
Lynch was not a person who could be easily threatened, regardless of who he was facing or whether he had the means to resist. He was not someone who could be easily threatened or coerced.
The two men stared at each other for a moment before Lynch nodded, "Then I'll trouble you, Mr. Simon, to introduce this to me... what was it again?"
"The Pretton Trading Company!" Simon's tone was slightly heavier to express his dissatisfaction with Lynch's behavior. He didn't believe that Lynch could so quickly forget a term they had just discussed; he must be doing it intentionally.
He then began to carry out his role, introducing the Pretton Trading Company.
Strictly speaking, the Pretton Trading Company is not anyone's property, nor does it quite function as a legitimate trading company doing what one would expect. It more resembles a commerce association.
Every quarter, the company holds a shareholders' meeting, and most foreign merchants engaged in commercial investment in Nagariel are its shareholders.
During this meeting, these individuals allocate each person's business and quotas for the next quarter through discussions in a relatively peaceful manner.
This might seem exaggerated, as an organization with the nature of a commerce association shouldn't wield such influence, but it undoubtedly does.
This is also related to the largest shareholder, Mr. Preton. It is said that before engaging in business, Mr. Preton was in the navy, having a particular obsession with the ocean, full of adventurous spirit.
Actually, when Simon spoke about Mr. Preton being in the navy, Lynch also understood its significance. Maritime transport, as the current main method for long-distance circulation, isn't as safe as people imagine.
Every day, there is more than one maritime accident occurring worldwide; some are reported, while others are ignored.
Mr. Preton earned people's trust using his own methods; he established reasonable rules of the game, which everyone, including himself, abides by, and hopes new arrivals will join them.
"... That's generally how it is, Mr. Lynch. Actually, joining the Pretton Trading Company offers much more than what I just mentioned!"
"For example!" Simon's tone raised slightly, "What's trending in Tiarte now, what's starting to drop in price in Medaric... We share this kind of information promptly!"
"You don't need to deal with those hateful intelligence traffickers; just a phone call can provide you with the most up-to-date commodity price trends globally, which facilitates our international trade greatly."
"You know, sometimes we'd rather pay breach penalties to leave goods at the port for a period, because without these channels, our losses would be greater!"
It sounds exaggerated that one would choose to breach rather than fulfill a contract, but this often occurs in international trade, especially when commodity prices fluctuate rapidly and significantly during certain periods.
Potentially, in the morning, the goods on a ship are only worth ten thousand, and by evening, they become worth a million, so people are willing to pay three to five times the breach penalties and not fulfill the contract to ensure more profit doesn't slip through their fingers.
Especially during wartime, some ores and essential industrial production materials constantly change in price, day by day.
Perhaps because a group conquers a region and discovers some mineral deposits, causing material prices to plummet; or because some facilities, including mining areas, suffer bombings, leading to production reduction or cessation, causing raw material prices to skyrocket.
These changes occur daily, even now. The raw materials required for post-war reconstruction aren't much less than needed during wartime, often even more.
One must know that the need for construction always exceeds the need for destruction.
Therefore, having a rich and stable information channel is crucial. Leveraging some not-so-transparent methods and information sharing, Mr. Preton easily united many merchants operating in Nagariel, forming a unique interest group centered around him.
This is also why local rulers dislike these people; they become hard to deal with once united and increasingly greedy.
This is naturally so, as in competition, a small number of top forces always eat their fill before the leftovers and broth are distributed. Although it seems like everyone wins when the benefits are allocated, it's not truly the case.
The formerly top forces have less income, and those who benefit are the numerous less competitive small merchants. To satisfy some people's demand for more profit, increasing the profit margin becomes the main means.
Higher prices and profit margins naturally appear as greed in the eyes of local rulers.
"Mr. Lynch, this is a good opportunity; I invite you to join us. Such opportunities are rare!" Simon does his best to persuade Lynch.
Besides a personal call from Mr. Preton, events concerning Lynch also make him quite apprehensive.
One must know that within the territory divided by the Pretton Trading Company, Magulana Province is primarily operated by Mr. Simon, dealing mainly in spices, some animal skins, some jewels, and gold.
Initially, everything was very peaceful; he had no complaints. He also knew about Mikhail and others harassing Lynch.
Actually, many had gone through such experiences initially, and Mr. Simon along with some merchant friends laughed about how long Lynch would last under the local rulers' targeting and how he would resolve it.
When Lynch was forced into a corner, Mr. Simon and others would appear before Lynch, invite him to join the Pretton Trading Company, help him through difficulties, and then give him some quotas to let him taste some sweetness.
The idea seemed great, but reality turned out to be bizarre; nobody knew how Lynch managed it. People only knew Lynch agreed to some of Mikhail's demands, and in return, Mikhail—actually the Provincial Governor—might agree to delegate exclusive rights for some goods and import-export trade rights to Lynch.
Mr. Simon couldn't sit still, as this severely affected his interests. Once Lynch and the Provincial Governor reached an agreement, the internal and external trade dynamics in Magulana Province would immediately change.
Previously operating local merchants would face a more embarrassing situation due to the rulers' attitude change and Lynch's power, leading to their possible departure.
Having operated here for so many years, they found it hard to abandon their businesses and profits, which would practically be their demise!
Plus, a direct call from Mr. Preton facilitated the meeting between Simon and Lynch.
Looking at Lynch's youthful face, Mr. Simon felt emotional and nervous, unsure if Lynch would accept. He gazed at Lynch, trying to find something on this young face.
Lynch was silent for a while, weighing the pros and cons. In fact, he was quite interested in the Pretton Trading Company; the international trade information sharing was quite remarkable.
Currently, globally, except for a few countries with direct phone lines or transit lines, many countries lack direct phone connections.
For instance, there's no direct phone line from the Federation to Nagariel. Telegrams are expensive and not necessarily reliable or secure, so people prefer sending letters instead.
But mailing is too slow; at best, it takes a week to arrive, at worst, half a month or even longer. Opportunities in trade often occur in an extremely short time frame, missed means lost forever.
Half a month later?
The ashes are cold!
However, he was unwilling to join the Pretton Trading Company because of this. He was contemplating how to obtain the conveniences offered by the company without joining it.
He refocused his gaze on Mr. Simon, with a touch of playfulness, which made Mr. Simon inexplicably uneasy. He checked his attire and touched his chin, ensuring nothing was amiss, before bravely facing Lynch's gaze, "Have you made a decision, Mr. Lynch?"
Lynch raised an eyebrow and shook his head, "I cannot answer this question in the short term; I need time to think. I never force others, nor do I wish to be forced. Can you understand my meaning?"
Despite his displeasure, Mr. Simon still forced a smile and nodded, "One must be cautious..."