Chapter 29: The Target Report (September 1940)
The quiet waiting period ended when the Research Division delivered its report.
It was early September, and the air in Elias Thorne's office felt charged, not by the heat of the summer, but by expectation. The two research analysts, led by Mr. Davies, laid a thick, organized file on Elias's large mahogany desk.
Arthur, sitting quietly in his "Special Advisor" chair, looked at the file like a general looking at a map.
"The subject is The Coca-Cola Company," Mr. Davies began, his voice dry and professional. "We followed Mr. Vance's method. We did not focus on their everyday sales. We focused on the hidden agreements."
The report confirmed everything Arthur had known from the future.
Most investors saw Coca-Cola as a good, but currently risky, stock. The main worry that kept the stock price low was the possibility of sugar rationing. If the United States got fully involved in the war, the government would limit how much sugar a company could buy. Investors thought this would ruin Coca-Cola.
"That is the fear," Arthur said, taking over from Davies. "But this report found the key: the secret military deal."
Arthur explained that the Research team, by digging deep and making discrete calls, had found proof: Coca-Cola had successfully convinced the military that their drink was vital for troop morale. It was not a luxury; it was a necessity.
Davies confirmed the finding. "The agreement guarantees that, even if full rationing is put in place, the military ensures Coca-Cola has an unlimited sugar supply for its products. In essence, the government will protect them."
Elias Thorne, who had been frowning, now saw the light. "My God. They've made their supply chain war-proof."
"Exactly," Arthur said. "When the war hits, other companies that rely on sugar will collapse. Coca-Cola will be protected and will expand globally with the troops. The stock price will explode when this truth becomes public. We need to own it before that day comes."
Arthur then laid out the financial plan, making it simple and clear for the team.
"We have successfully completed our first goal," Arthur stated. "The income earned from the Boeing dividend last month was about $180,000. We used approximately $30,000 for the expansion spending—that includes the S&T rent on Wall Street, the new telephone lines, and the salary for the new Research analyst."
He tapped the table, making sure everyone was tracking the money. "After those expenses, and the small $500 net profit from the S&T practice trades, we have about $150,500 of pure, disposable profit sitting in our operating account."
"That is our first wave of capital," Arthur said. "It is not the $5 million principal, but it is enough to start. It is our opening move."
He set the goal. "We are going to buy 10% ownership of The Coca-Cola Company. It is a large, public target, and we must move with absolute patience and stealth."
Arthur looked at the two analysts, Mr. Davies and the new hire, Mr. Bell. "Your job is not over. You will continue to watch for any rumors, any trades, and any political activity that threatens this secret. Your research is now our shield."
Arthur stood up, his young face completely serious. "The $150,500 is our initial expenditure for this stock operation. We begin next month, and we will not stop until we own our 10%."