EMPIRE
Chapter Twenty-eight
Ron's office, Monday noontime
Ron hung up the phone and sat back in his chair. His mind was still reeling from his conversation with Tony Tegano. At the conference table the participants in the noon meeting looked at Ron, waiting for him to speak. Finally Tyler asked, "Who was that Ron?"
Ron shook his head, coming back to reality. Standing and moving back to the table where the others were sitting he said, "It was Tony Tegano. He offered to sell us Tegano Constructors."
He resumed his seat at the head of the large conference table, as Will Nuggent
"$2.5 billion," Ron answered. "$1.5 billion at closing and a note with terms for the other billion over 4 years."
"Do we have $1.5 billion?" Matt asked in shock.
"No, of course not," Ron replied. "Our personal net worth is close to that, but we can't sell all our assets to provide that much. We'll have to raise the money, but it shouldn't be difficult if the numbers work. According to Tony they have currently $7 billion in `work-in-progress. Assuming that $2 billion of that work is used to pay profits to Tony and Jake that should leave about $5 billion in work which should earn about 5% or $250 million for us. The profits next year should be $350 million. Of course it could be better or worse than that. All I'm saying is that of the $2.5 billion around $600 million could come from Tegano profits. That would leave us $1.9 billion to raise."
"Could we take them public?" Tyler asked. "That should create a lot of instant cash."
Ron paused a moment before answering.
"Yes, we could sell stock and raise the money. It would dilute our share of course, but we could probably still maintain control. I just think it's our last option. I really don't want to be the Chairman of a publicly held Corporation. Stockholders and reporting are a pain in the ass. I'd rather borrow the money if we can't figure out a better way. Anyway, we don't have the whole picture yet. I'm going to send the whiz kids from Chicago to Houston where the headquarters of Tegano is located. I'm sure they'll need a small accounting staff to accompany them. I suspect we'd better plan on them coming from here. Also, I think we should plan on an early trip to Houston then on to Chicago too, not later than early next week."
"Why Chicago?" Matt asked.
"First, I promised Jeff and Phil that we'd visit. Second, they're giving us a paper on growth possibilities in that market. Finally, I'd rather meet in our office there to discuss the findings on Tegano, than to meet about it when we're in Houston."
"Just say the word and I'll have the G-V ready," Jan promised.
"I just don't understand where the money is coming from," Matt declared.
"I just finished looking over the financials of our companies," Ron replied. "The available cash out of the combined Turner Enterprises is around $300 million not counting cash in Aztec-Turner. Turner Trusts, which would be a partner, has over $200 million available. There is $200 million coming from the sale of the Baker property. That makes $700 million."
"And $100 million from Aztec-Turner," Tyler offered.
"Thanks Tyler," said Ron with gratitude.
"We could sell the PT-I also," added Tyler. "It should be worth $35 or $40 million."
"That's your choice. We gave it to you as a gift."
"We still have the PT-II," Dan said. "One boat is enough, at least for now."
"Fine," Ron said, "if that's your choice. We could sell the island too."
"Yes, we paid $20 million for it," Tyler said. "It should be worth at least 25 by now."
Ron was jotting down the numbers. "By the time we close on the sale, our operations should earn another $100 million. Let's see, that puts us at around $860 million. We could probably borrow on a short-term note another $340 million on Tegano's short-term profits and pay it off within the year. The other $300 Million would come from a 7 year secured note. That would take care of the initial payment. Our companies are earning around $700 million a year and the Trusts nearly $500 million. That would be our cushion, and would easily take care of the $250 million a year purchase and the additional $50 million a year that the longer-term note would cost. There are other possibilities too. It's possible that Tegano has cash we could also use, or other assets we could turn into cash. We don't know that yet."
"Is it worth all the risk? It seems like it's an awfully big step," Dan commented.
Ron looked at Dan and smiled.
"It's my preliminary guess that Tegano is worth at least $4 Billion," declared Ron. "If we buy it and it's as good as I think it will be, the net worth of both Turner and Turner Trust, will go from about $2.5 Billion that we are worth now, to $6.5 billion and in only two years!"
"Wow! We could never spend all that money," Dan said in amazement.
Ron laughed. "Heck, we couldn't spend the $2.5 billion we have now! But think of all the good that much money could do! Both our charitable funding and arts funding would take off like a rocket!"
"Do you think it will cut us too short of cash in the short-run?" Tyler asked.
"Not necessarily," Ron stated. "We own several more pieces of property here. They should be worth a great deal of money that I haven't figured in since our net worth now is based on the original purchase cost. If we can get an attractive sales price we might want to go ahead and sell another piece or two. That would protect our operating capital."
"You want to do it then?" Tyler asked.
"Absolutely, unless the Whiz Kids find a bug in the ointment; then we'll think about it. Anyway, Will I'd like you to start looking at freeing up our money. I'll discuss with you which pieces of property we should put on the market, but we'll wait until Jeff and Phil report in before we make any moves."
"Sure Ron," Will agreed, "You'd better call Phil and Jeff then before they get on the plane."
"I'll get them on the line," Margaret said as she wiped her mouth with a napkin, stood and walked to Ron's desk, sat down at his desk before calling up the company directory on his computer."
"Now, let's eat!" Ron said looking at his plate that had not been touched. "I'm hungry. We'll reconvene the meeting after lunch."
Matt looked around the table and laughed. Everyone else's plate was clean.
In Nathan and Carl's new car, near downtown Las Vegas.
"Look over there!" Carl said excitedly as he pointed the direction to Nathan who was driving."
"What is it?" Nathan asked as he swung his gaze in the direction indicated.
"There's three guys beating up a kid!" Carl declared.
Nathan saw what Carl's sharp lookout had unveiled. In an alley three rough-looking men were kicking and punching a much younger youth. The youth, unlike his attackers, had once looked a bit worn but clean, but now his clothing was showing signs of blood from his nose and cuts that he'd suffered, and dirt from being knocked down.
"Stop! We have to help him!" Carl screamed.
Hesitating a moment, Nathan remembered the beating he'd suffered not long before. He knew he couldn't let some else be so mutilated. He quickly swerved into a parking spot, slamming on the brakes and bringing the vehicle to a halt before both young men catapulted from the doors.
"Hey! What's going on there?" Carl yelled as they ran diagonally across the street, barely avoiding traffic."
The three men stopped their pummeling of the youth and turned to their attackers.
"We're just giving this fag what he deserves," the leader shouted trying to warn off the new arrivals. "Keep away or you'll get some of what he's getting."
Without breaking stride both Carl and Nathan plowed into the two nearest assailants, carrying them all to the ground. Rolling quickly as Tyler had taught them, both young men were at once on their feet. With a kick to the chin, Carl knocked the third mugger unconscious, dropping him like a sack of potatoes in a heap. Nathan rushed the leader who was struggling to his feet, delivering a kick to his mid-section and knocking the wind out of the grubby man who staggered around like a drunk trying to catch his breath. As Nathan turned to the remaining man who had regained his feet, he saw Carl crouched for the attack.
"Wait! Wait!" the remaining man begged with his hands raised and opened in surrender. The man backed away quickly, and then turned to run, abandoning his two remaining companions. He headed down the alley but stopped as a blue sedan approached from the other end, slamming on its brakes. A man in a suit jumped out of the car, pulling a handgun from a shoulder holster.
"Halt! Police!" The suited man yelled as he aimed the gun toward the bewildered man.
The third assailant raised his hands in surrender.
Nathan and Carl turned their attention to the remaining attackers. The one downed by Carl still lay motionless, while the other was trying to stagger away. Carl tackled him, and once on the ground Nathan jumped astride his back, twisting the assailant's arm into a hammerlock.
Seeing that Nathan had the man under control, Carl looked back to see the Officer approaching with the third attacker in tow. Carl turned to the injured youth who was sprawled on the ground, but whose eyes had followed his rescuers' efforts. He cringed as Carl approached, not knowing if Carl too was going to attack and rob him.
"Easy fella," Carl said gently with his palms raised. "We're not going to hurt you."
Shying away, the youth dragged himself against the wall of a nearby building.
Carl smiled at the youth, still approaching him.
"You're safe now," Carl asserted. "The police are here and the bad guys are under arrest."
Like the foretelling of a prophet, two police cars screeched to halt, blocking the alley entrance. Four uniformed officers piled out of their black and white cars and quickly took control of the situation, relieving Nathan of his prisoner, and checking the status of the downed man who was beginning to moan as he regained consciousness. Handcuffs quickly restrained both the detainees. A uniformed officer took charge of the third attacker now also wearing handcuffs, allowing the plain-clothes officer to approach Carl and the injured youth.
"Office Perry Chestnut here. Are you okay?" he asked the injured boy.
"I'll be alright," the youth declared. "I'm mostly bloody from my nose."
"Do you want me to call an ambulance?" the officer asked.
"No! No!" the youth begged. "I'm alright."
"What's your name son?" inquired Officer Chestnut.
"....Zack, sir" the youth replied slowly, looking lost and forlorn.
"Well, Zack," Perry said. "If you're okay, let's get you on your feet."
He reached for the boy's hand, and when it was offered, grasped it, lifting the boy to an unsteady stance.
"I have a hanky sir," Carl said offering a neatly folded cloth from his pocket. The officer took it thanking Carl who had been joined by Nathan. He handed it to the youth who wiped the blood that had started to dry around his mouth.
"Who are you young men?" The officer asked Carl and Nathan.
"I'm Carl, and this is Nathan. We were just driving by and saw those three guys beating up this kid. We couldn't let it happen," Carl declared. "Ron, Matt, Tyler and Dan would all have been ashamed of us for letting those guys attack a helpless boy."
"Ron and Tyler Turner?" Officer Chestnut asked.
"Yeah, do you know them?"
"Sure," Perry said smiling. "We've run into each other before."
"I'm sure glad you came when you did Sir," Nathan said gratefully. "That guy running down the alley would have gotten away?"
"You took on all three of them? Just the two of you?"
"Sure! Tyler taught us how to defend ourselves, and then some."
"It looks like you learned your lesson well. I think we'd better call Ron," the officer said.
"I have his phone number in my cell phone in the car," Nathan offered.
"Not necessary. I have both his office and home phone number in mine too," Perry responded.
"I guess you do know him!" Carl said in surprise. "He should be at the office."
Perry flipped open his phone, searched the address book within, then finding the number, pressed the send button.
"Ron Turner please," he said to the young man who answered.
"Mr. Turner is in a meeting," Derrick responded. "May I have him call you back?"
"This is Officer Perry Chestnut with Metro. It's important that I speak with Mr. Turner at once."
"...I'll try him." Matt's secretary said hesitantly, knowing that he had orders not to disturb the meeting and this would be the second time. He put the officer on hold, then rang Ron's number.
Within Margaret looked up in surprise, then with her face showing anger she started to raise from her seat.
"Sit down Margaret, I'll get it," Ron commanded.
She sat and he rose from his chair and stepped to the desk.
"Ron Turner."
"Uh.... Mr. Turner," Derrick said hesitantly. "Sorry to disturb you sir, but there's an Officer Chestnut on the phone and he insists on speaking with you."
"I'll take it," Ron said pushing the blinking button.
"Perry! How are you?"
"I'm fine Ron," Perry responded. "I'm at the scene of a little altercation. Do you know two boys by the name of Nathan and Carl."
"Yes," Ron responded in surprise. "They're our foster sons. What's happened?"
"Well, it seems that a youngster was getting beaten up by some older men. Your boys took them on and if you'll excuse the expression, `kicked the shit out of them'. You can be proud."
"I think you should be complimenting my brother Tyler. He taught them how to fight."
"Maybe so, but you taught them when to fight. They picked the right time."
"Is anyone hurt?" Ron asked.
"The youth who was beaten seems okay, and the others are recovering. I'm sure they're more embarrassed than injured."
"Do I need to come downtown?"
"No, I think not," Perry answered. "I just thought I'd let you know about the incident though. I didn't want them getting into trouble for messing up their clothes."
"Thanks Perry. If you change your mind, just call."
"I will Ron," the officer responded. "Have a nice day."
"Goodbye," Ron replied as he put down the receiver.
Perry Chestnut got out the metal container from his vehicle that served as a storage box and writing surface for reports. Opening it up, he took out a multi-part form and began to write.
"Sorry guys," he said, "but I have to fill out a report. None of you are in trouble so don't worry, but I'd appreciate your cooperation so we can get on with our lives. Let's start with Zack.... What's your complete name?" he asked the youth.
"It's just Zack," the youth replied.
"What's your last name?" Perry asked.
"I don't have a last name anymore," Zack responded with an air of defiance.
"What was your last name?" persisted the officer.
"I can't tell you. When my father threw me out, he forbade me to ever tell anyone our family name. I hate him for what he did to me, but that's one order I'm glad to take."
"Alright, we'll pass on that for now," Perry decided. "Where do you live?"
"Wherever I am," Zack insisted. "I have a little knapsack with a few things in it that I hide during the day. Other than that, and the stuff those guys stole from me, what you see is what you get."
"I'm afraid I'll have to take you into custody," Perry said sadly. His heart almost broke when he saw Zack's shoulders slump as he tried to ward off breaking down in tears. The boy didn't quite succeed and a single tear streaked down his thin face. Nathan stepped up beside Zack, putting his arm around the boy's shoulder."
"Uh... Officer. You know our dads, right?"
"Yes. They're fine people."
"Can we take Zack home with us?"
Perry looked at the tall young man in surprise. Then he smiled, thinking, `Yeah, they're Ron Turner's sons, for sure!'
"All right, on two conditions," he said aloud yet wondering why he was agreeing to it. "First, Ron has to say okay. Second, I'll call tomorrow and come up and see you at home. I still have to fill out my report and I'll expect full cooperation."
"Is that alright with you Zack?" Nathan asked.
Zack looked at the older boy and knew that it was time to trust someone. Who better than his handsome rescuers? He nodded `yes'.
Officer Chestnut again took out his cell phone, found the number, pushed the `send' button and handed the instrument to Nathan.
"Ron Turner's office," the young male voice answered.
"This is Nathan, Ron Turner's son. I need to speak with him right away."
"I'm sorry Nathan," Derrick responded. "Your dad's in a meeting and doesn't want to be disturbed."
"Call him, dipshit!" Nathan demanded. "I'm with the cops and I need to talk to him now."
"...uh, alright," Derrick agreed. "I'm going to get in a lot of trouble though."
"Just leave that to me," Nathan answered. "It's important."
"Hang on," requested Matt's secretary before putting Nathan on `hold', and dialing Ron's office.
For the third time since the noon meeting started the phone on Ron's desk rang.
Raising his hand before Margaret could move, Ron again stood and walked to his desk.
"Yes?" he asked, the irritation showing in his voice.
"Uh... Mr. Turner. There's a `Nathan' on the phone who says he's your son and insists on talking to you immediately. I'm really sorry."
"It's alright Derrick. You were right to put him through."
Ron again pushed the blinking button.
"Yes Nathan. What is it? I've got a room full of people waiting."
"Sorry Ron," Nathan apologized. "Uh.... You know the kid that Officer told you about? Well, he's homeless, and all beat up. I asked the Officer if we could bring him home and he said yes, if you would allow it. Officer Chestnut is going to come up to the house tomorrow to finish his interview with Zack too."
"Yes, It's alright Nathan. I'm not promising that he can stay permanently though. He'll probably end up at the Thornton Center. Call Parker on the phone and let him know you're coming. I'm sure that after Parker gets him patched and cleaned up, he'll take him shopping," he said with a grin. "It's been months since we took anyone in. Anyway, let me talk to Officer Chestnut."
Nathan handed the phone to Perry.
"This is Perry Chestnut," the officer said.
"Perry. This is Ron Turner. Yes, it's okay that the youngster comes home with the boys. Thanks for your help."
"Somehow I knew it would be," Perry answered with a chuckle. "I could tell immediately that Nathan was your son. He has a big Turner heart."
"I'm taking that as a compliment officer," Ron said with pride in his boys. "Thanks again."
"If it's alright I'll be coming up to your home tomorrow to interview the boy Zack."
"Actually, this evening would be better. Both of my boys will be starting work tomorrow and I'm sure the new boy will be more comfortable with them around. How about if you come up for dinner?"
"That would be fine," Perry said. "I'll ask the boy to press charges against his attackers. Maybe a word from you would help."
"I'll speak with him," Ron promised. "Can you make it up there around 6 o'clock?"
"Sure Ron. I've heard a lot about your home. I'm anxious to see it for myself."
"I'll give you a personal grand tour."
"I'd like that. Goodbye Ron. See you at 6."
Officer Perry Chestnut clicked the phone shut, then turned to the boys.
"You're free to go," he said. "I'll be coming up tonight for dinner. Zack, I'll bring a complaint for you to fill out against your attackers."
"Uh... alright. Do I have to fill out a complaint?"
"You don't have to, as long as these boys will testify as to what they saw, but it would help put those guys away."
"Uh, I'd rather not," Zack verbalized.
"Well, think about it anyway. You can do it tomorrow if you change your mind."
"Yes Sir."
"Okay guys, you're free to go."
Nathan slipped Zack's arm over his shoulder, not only steadying him, but also taking some weight off the youth's unsteady feet. Quickly Carl took the other arm and in only a moment they were climbing into Carl and Nathan's Honda.
Back at the meeting
"That's the overall outlook," Will Nuggent concluded. The group at the table had just finished reviewing the financial reports of the growing Turner Empire.
Ron smiled as he reassumed the chairmanship of the meeting.
"Thanks Will," he said. "This meeting has been interrupted enough times. Let's plow through the agenda. Rather than go through each operation individually as we usually do, I'll just ask if anyone has an item that they want to discuss?"
"I have an item," Matt said. "If we are going to acquire Tegano Constructors, should we slow down on the Arts Project?"
"I wish I had an answer," Ron replied. "I think we'll just have to wait to see what the Whiz Kids come up with. Until we know if we're going ahead with the purchase and how we'll finance it, I think we should just operate as normal. I've been thinking though. We need to be looking for a site for our Arts Complex. My preference is downtown, but it's tough to find a site that's big enough."
"What about the Railroad Property?" Will suggested.
"That would work if it's not all taken. Another area that has potential is the Cashman Center area. There is already a Convention Center there, the main library, and the old Mormon Fort museum as well as the Natural History museum."
"I could have someone begin the search," Matt offered. "How large a site do you have in mind?"
"I'm not sure. Perhaps we should work with Jerry Bonner from the Frank Lloyd Wright operation. I'd like to build an opera house, a large Museum building, and, if we use the Cashman Site perhaps we can use the theater there for our stage productions. We'll have to study it though. When you get your team in town, we need to discuss our future needs and develop a wish list. It won't hurt to start looking first though. My guess is that we'll need between 20 and 40 acres, depending on what we decide to do. That big of a piece downtown will be hard to find."
"I'll start working on it," Matt committed.
"Next?" Ron asked.
Margaret raised her hand and was recognized.
"You said you wanted to talk about travel," she reminded Ron.
"Yes. Thanks. Margaret brought up that we need to continue our traveling to keep in touch with our offices around the country, for morale purposes if nothing else. I agree with her. I think that someone from this office should travel to every one of our offices, no matter how small, at least every-other month. If not one of us, it should be the Presidents of our companies. Jan since you handle all the travel arrangements, I'd like a tabulation of each of our companies, their offices, and when they were visited in the last 6 months. It will be a bit more difficult for Construction Leasing but Dan can get that information for you. We'll discuss it at our meeting next week. If our plans change because of the possible acquisition of Tegano, we'll review them at that meeting."
Tyler spoke up next.
"I think we should review the communications in all our companies. We're growing so fast that it's easy to lose touch. I also think we should have a meeting not less than monthly with all our company Presidents. We should use them as a pipeline for formal communication up and down the chain, but I also think we should start a Turner Newsletter for the troops. They need to feel part of the big picture. I'm not sure we shouldn't have at least one out of every four Presidents' Meetings in New York too. We could all travel and visit offices, coming and going."
"I couldn't agree more," Ron said. "Let's schedule a meeting with all the company Presidents for four weeks from now. I'd do it sooner but we need to allow them time to adjust their schedules. Let's try to develop a communications strategy in the meantime."
"Matt," Ron continued. "How are things shaping up on the Arts Trust?"
"As well as can be expected, considering that it's all new. I think that George Bowles will work out well. He's working with our attorneys to get all the legal and tax considerations handled. We'll be a bit squeezed space-wise when the program really gets going. The new building was finished in the nick of time, but already we're in danger of overcrowding."
"I agree with that," Jan stated. "I'm think that we need to review again our space plans for expansion. I can tell you that if we move any or all of the Tegano operations here, we'll have people hanging out of the windows."
"In that case let's do it," Ron directed. "Jan, it's your baby. There is still enough land here from our last land purchase for another building the size of the two we have. After that we're stuck, unless we can build up. We might decide to build a small tower of six or eight stories along with a parking garage. I don't know. Get with Jerry Bonner and come up with a new master plan. Assume that our space needs will at least double. Then tell me our options if it triples."
"You've got it boss," Jan said. "I should have a preliminary report in a couple of weeks."
"Anything new to report from Construction Leasing or Aztec-Turner Security?" Ron asked Dan and Tyler.
"Construction Leasing has taken over the top spot in its industry segment," Dan reported first. "We're expanding like crazy in the South and West. In spite of the start-up costs of new operations, we'll have a banner year in profits too. We're financing a lot of new equipment purchases and are approaching the line where our debt to investment ratio is getting a bit high, but other than that, everything is good."
"I noticed that too," Ron agreed. "I don't think there is any danger yet and we want to leverage our investments in that business. If we don't acquire Tegano, we may want to pay off some of the loans to reach a more conservative level of borrowing. Dan, if you think we're crossing the line where our risk is too high, let me know. I do appreciate your observations."
Ron looked toward Tyler.
"Aztec-Turner is riding the crest of the wave," Tyler declared. "It's fast paced but fortunately, the capital costs are not huge like in Construction Leasing. Nevertheless, the manpower costs are a very costly chunk of the business. Thankfully for us, the terrorist concerns have put us as a front-runner in a rapidly expanding market. We have received a contract from the Department of Homeland Security that could easily generate millions in revenue...."
Tyler's cell phone rang. Looking at the device, he saw the number from Wes Harper's office. He knew that it must be important, or he wouldn't be interrupted.
"Excuse me," he said. Then pushed `send'.
"What's up Wes?" he asked.
The others at the table watched his face turn troubled before he replied.
"Alright Wes. Get your staff together. We'll have a meeting in 10 minutes."
He pushed, `end' and turned to the others. .
"Problems?" Ron inquired.
"Yes Ron." Tyler answered. "The Department of Homeland Security has just informed us that there is a cell of Al Quaeda operating in Las Vegas. It appears that we're a probable target."