America 1919-Chapter 898 - 307, Quanter Family

Gustav Krupp ultimately agreed to Donnie’s request for collaboration.

Gustav Krupp believed that such a partnership would have little impact on Krupp’s military industry.

First, they did not need to provide cash, only technical personnel, ensuring there was no financial loss.

Second, Donnie’s arms factory would be established in the United States, meaning there was no competitive relationship between them. Gustav Krupp did not believe the newly built factory could infringe on their market interests in Germany.

Lastly, this collaboration could facilitate the Krupp Group’s entry into the U.S. market.

Consequently, they quickly signed a preliminary cooperation agreement. Once Donnie returned to the United States, identified the site for the arms factory, and began construction, Gustav Krupp would personally lead a team of Krupp military industry experts to the United States.

Donnie was thrilled when he heard this.

Without spending a cent, he gained experienced technical personnel. Furthermore, this would serve as a bridge to connect with German research talents. When the war eventually erupted, Donnie could unreservedly exploit Germany’s scientific minds.

Germany’s rapid rise to global power after the end of World War I was not only driven by their determined leader but also by their robust research and development capabilities.

It was only after the United States acquired many of Germany’s experts that it ascended to a higher level of power.

Looking at the current situation, the collaboration between Donnie and Krupp appeared mutually beneficial.

After reaching an agreement, Gustav Krupp hosted a grand ball, during which Donnie became acquainted with numerous German aristocrats.

Naturally, the matter quickly reached the ears of Max Warburg.

Although Max Warburg was not privy to the specifics of Donnie’s partnership with Gustav Krupp, he could deduce much from the available clues.

"It seems Donnie is preparing to enter the military-industrial business!"

As before, the discussion unfolded in the study, where only Max Warburg and Sigmund Warburg were present.

Sigmund Warburg wasn’t surprised by Max’s assessment: "It was predictable. The information we have suggests that Donnie has a close relationship with General Pan Xing, the U.S. Army Chief of Staff, combined with Pandora Oil’s ties to the Navy.

If Donnie didn’t venture into the arms industry, that would be the real surprise."

Max Warburg said irritably, "Investing in an arms factory is no small undertaking. Donnie previously mentioned to me that he barely had any cash left."

Sigmund Warburg smiled and explained, "Actually, for us, Donnie entering the military-industrial sector could be advantageous."

Max Warburg displayed a smile and asked, "Why do you think so?"

Sigmund Warburg analyzed seriously: "First, only a few years have passed since the war ended. Although the global situation is still somewhat unstable, there is a strong anti-war sentiment in the U.S. Furthermore, America’s military strategy has resulted in a downturn for the military industry sector.

Even the once-prominent Colt Company has entered a decline.

Such an environment has inevitably intensified competition within the U.S. military-industrial complex.

At this juncture, Donnie’s entry into the field, based on his past business trajectory, suggests he would aim to expand his arms factory substantially. As a result, Donnie is bound to disrupt the existing balance in the industry.

Under these circumstances, stakeholders won’t sit still.

I even believe that Donnie will have significant cash flow tied up by this industry."

After hearing Sigmund Warburg’s analysis, Max Warburg smiled and remarked, "If Donnie’s cash becomes tied up, that would be even more advantageous to us."

Sigmund Warburg nodded and replied, "Exactly. Don’t forget, in the United States, the DuPont Family controls a vast portion of the arms industry. As mentioned earlier, Donnie’s entry into this sector would inevitably shake up the current distribution of profits, and the DuPont Family stands to suffer the most direct losses.

The DuPont Family is not one to be trifled with."

Max Warburg nodded and said, "So you’re suggesting I write a letter to Paul, advising him to pay close attention to this matter and engage with the DuPont Family more?"

Sigmund Warburg said, "That’s exactly my thought."

.

Donnie’s journey in Germany took him to Berlin, to the luxurious residence at No. 1 Arsim Road, where he met the head of another prominent German family.

Günther Quandt of the Quanter Family.

Emil Quandt, Günther’s father, was the founder of the Quanter Family. Before 1920, the Quandt Family monopolized Germany’s textile industry.

Like many other businessmen, Emil Quandt’s first fortune didn’t come from finance or other industries.

Instead, it was due to him marrying the right woman.

Emil Quandt’s wife, Hedwig, was the daughter of Emil’s employer at the textile factory. When the employer passed away, Emil Quandt took over management of the factory and married Hedwig the following year.

Under Emil Quandt’s leadership, the Quandt Family amassed three major textile factories, monopolizing the German textile industry.