Chapter 23: The Final Meeting
It was mid-June 1940. The Continental Investment Bank had just done something impossible. They had created a debt large enough to sink them, all to save the company they wanted to partner with. But Arthur Vance knew the danger was worth the prize. They had bought the biggest weapon in the financial world: the loan.
The immediate pressure was off. The rival bank, National Metropolitan, could no longer call the loan and force Boeing into bankruptcy. That power now belonged entirely to Continental.
Arthur, calm as ever, walked into Elias Thorne's office, where Elias was practicing what he was going to say. Elias looked exhausted, but his eyes held a new, hard determination. He felt the weight of the $17.5 million loan on his shoulders, but he also felt the power of it.
"We need to call them now, Elias," Arthur said. "We cannot let the relief of the rumor fading away distract them. We must strike while the fear is still fresh."
"I know," Elias said, standing up. "But what if they still say no? We have the loan, yes, but we are a small bank. They could just refuse our capital and find a new bank to pay off our debt. We haven't won yet."
"They can't," Arthur said, shaking his head. "The market is terrified of Boeing right now because of National Metropolitan's rumors. No major bank will touch them for weeks, maybe months. And they don't have months. The B-17 contracts are starting. They need capital now to buy steel, aluminum, and engines. We have them trapped. We are the only choice."
Arthur walked to the telephone on Elias's desk. "Call the CEO. Tell him we need an immediate, final meeting in Seattle. We fly out tonight."
The Call That Changed Everything
Elias nodded, picked up the phone, and placed the call to William Allen, the CEO of Boeing. It took only two minutes to get through.
"Mr. Allen," Elias's voice was steady, "This is Elias Thorne, President of the Continental Investment Bank. We must meet tomorrow, in person. It's urgent. I believe I have some news that will stop the terrible things happening to your company."
Arthur listened closely, watching Elias's face.
There was a long silence on the line. Then, William Allen's voice came back, tired and heavy. "Mr. Thorne, I have just spent the morning trying to convince my board not to fire me. The rumors have made us unbankable. What could you possibly offer us now?"
Elias followed Arthur's silent instructions. "Mr. Allen, I know why the rumors started. I know why the National Metropolitan Bank is trying to ruin you. I know because they no longer have the power to do it."
A sharp, audible intake of breath came over the wire.
"What are you saying, Mr. Thorne?" Allen demanded.
Elias delivered the line Arthur had prepared, clean and precise. "Good news, Mr. Allen. Continental bought your entire loan from National Metropolitan. They are completely out of the picture. You are no longer in danger of a loan call. I want to give you a long, safe time to pay. Now... about our partnership."
Silence hung on the line. Then, the sound of William Allen's sudden, weak laugh. It was the sound of a man who had been told the tumor was benign.
"You... you bought it? The entire loan?"
"Every dollar," Elias confirmed. "We are your new creditor. And we are your biggest fan. Meet us tomorrow at 10 AM. We will bring the papers proving everything."
Allen didn't argue. He didn't hesitate. "We will be there. The board will be there. We owe you a great debt, Mr. Thorne."
"We will discuss that debt tomorrow," Elias said smoothly, and he hung up the phone.
He looked at Arthur, his face flushed. "Arthur, that was the most powerful thing I have ever done."
Arthur simply smiled. "Power is always louder than money, Elias. Now, let's go pack our bags. We are going to close the deal."
The Seattle Pitch, Take Two
The next morning, the scene was the same as it had been a month ago, but the air felt different.
Elias and Arthur walked back into the main meeting room at Boeing headquarters in Seattle. The same long, polished wooden table. The same serious faces of the Boeing board members and engineers. But this time, there was an extra, unwelcome person: the senior banker from National Metropolitan, a man named Mr. Harrison. He was here to represent the "previous lender," though his real job was to watch the disaster unfold.
The room was tense. The board looked at Elias with a mixture of hope and deep suspicion.
Elias took his place and put a thick, new folder on the table. Arthur stood silently behind him, looking every bit the junior assistant holding a briefcase.
Mr. Harrison, the rival banker, spoke first, his voice sharp with suspicion. "Mr. Thorne, I was told you had purchased Boeing's debt. This is an unusual move for a new bank. I must demand to see the documentation. This could be a violation of banking stability laws."
Elias didn't even look at him. He addressed William Allen, the CEO, directly.
"Mr. Allen, your company has been put through a terrible ordeal by the rumors of the last few days. We have the proof that Continental has bought every dollar of that loan." Elias then slid a single sheet of paper across the table to the CEO. It was the transfer document, signed and notarized, showing Continental was the sole creditor.
William Allen's hands trembled slightly as he read the document. When he looked up, his face was a mask of shock and immense relief. The threat of bankruptcy was gone.
"This is… remarkable, Mr. Thorne," Allen said, his voice husky.
Elias then leaned forward for his first major move. "And that is not all. Effective immediately, Continental is extending the loan's term by three years. We are also lowering your interest rate for the next six months. You are safe. Your company is secure."
A wave of visible relief washed over the board members, especially the engineers. The rival bank had been trying to kill them; Continental had just saved their lives.
Mr. Harrison, the National Metropolitan man, turned white. He realized instantly what had happened. They had sold their biggest piece of leverage for a small, quick profit, and now they were powerless.
"Mr. Thorne! You cannot simply change the terms!" Harrison objected.
Elias finally looked at him, his face firm and unforgiving. "Mr. Harrison, Continental owns the loan now. We can change the terms, forgive the loan, or burn the papers. It is our asset. You are no longer relevant to this conversation. You may leave."
Harrison sputtered, furious, but he had no legal standing. He was forced to gather his papers and storm out of the room, defeated. Arthur watched him go, a sense of cold satisfaction settling in his heart. The sword had been used to take out the enemy's general.
The Final Pitch
With the rival gone, the atmosphere changed from desperation to tense negotiation.
"Mr. Thorne," CEO Allen began, "you have saved us. We are grateful. But I must ask: what is the price? Why did you risk everything to save us?"
Elias looked at Arthur, who gave a nearly invisible nod. Elias was ready.
"The price, Mr. Allen, is stability and partnership. Continental did not buy this loan to be a passive lender. We bought it to ensure the future of Boeing, which we believe is the greatest company in America."
Elias then delivered the three-point final pitch, combining all the leverage Arthur had built:
1. The Supplier (M&A Leverage): "As you know, Continental owns the company that makes your essential landing gear. We control your supply chain. We will ensure quality and speed, but only as your partner."
2. The Creditor (S&T Leverage): "As you now know, we are your only bank. We have offered you safety and low-cost financing. We will provide all the capital you need to ramp up B-17 production. We will ensure you never face a hostile banker again, but only as your partner."
3. The Capital (Capital Raising Goal): "And finally, we offer the original deal. We will immediately inject seven million dollars of fresh capital into your business. That money will secure your materials, hire your new workforce, and start the production line that will win this war."
He paused. "In exchange for this complete stability—for saving your company, funding your future, and taking the risk of your debt—we ask for exactly what we asked for last month: a 10% equity share in The Boeing Company."
The Deal is Done
The board members looked at each other. They were cornered. They were completely surrounded. Continental was their supplier, their banker, and their only source of immediate cash. To say "no" now was to choose slow ruin over immediate, secure growth.
One of the lead engineers, a man who had desperately wanted the deal before, spoke up. "Mr. Allen, we can't waste another day. We need to start building. This bank saved us from Harrison. I say we vote yes."
The vote was quick and final. The board, seeing no other option, voted to accept the partnership.
William Allen sighed, a sound of heavy acceptance. He picked up his pen.
"Mr. Thorne, you have our 10%," he said. "Let us hope this partnership is worth the price."
Arthur Vance, standing behind Elias, watched the CEO sign the papers. He felt no triumph, only a quiet, deep satisfaction. The chaotic, random power of his $5 million inheritance had been fully controlled.
The Continental Investment Bank did not get its 10% share by asking nicely. It got it by building a financial machine, one pillar at a time:
Research found the target and the weakness (the landing gear supplier).
M&A created the first point of leverage (the supplier).
S&T created the second, and decisive, point of leverage (the creditor).
Capital Raising simply closed the deal that the other three had already won.
Arthur Vance, the 18-year-old financial analyst, had finished his first generational move. The Continental Bank was no longer a shell. It was a functioning engine of power, ready for the next move.