Michael sat in his private study in his apartment. June was ending, marking the finish of his second year at Harvard. He looked over his grades and felt completely satisfied. He had placed in the top 99th percentile of his class.
His Primary Field of Study was Organic Chemistry.
The remaining three advanced courses below were chosen as Electives to support his strategic vision:
Advanced Applied Calculus and Statistical Methods in Engineering
Applied Mechanics and Thermodynamics
Theory and Application of Alternating and Direct Current Circuits
This calculated path gave him the precise foundation to revolutionize his family's business.
A brief, sharp knock on the wooden door interrupted his thoughts. "Mr. Kingston? Are you busy with the course work, or do you have a minute?"
It was Jack Cooper. Michael folded the curriculum list, placing it neatly on the corner of his mahogany desk. "Come in," he called out.
Jack stepped inside, his posture impeccably correct. Though Michael had repeatedly urged Cooper to drop the formal address, Jack consistently reverted to "Mr. Kingston," a subtle, professional barrier he seemed unwilling to cross.
"What is the matter, Jack?" Michael asked, gesturing toward a chair, which Jack politely declined to take.
"Sir, the factory we acquired and updated this spring is fully operational. The capacity increased as projected, and the workforce has been stabilized at fifty persons," Cooper reported crisply.
Michael nodded slowly, acknowledging the successful integration.
"How many factories and businesses have we acquired up until now, Jack?" Michael asked, leaning forward, his hands clasped on the desk.
Jack Cooper didn't stumble. "Three soap factories, two toothpaste factories, one tooth powder factory, one shampoo powders factory, and one shampoo soap factory. Liquid shampoos are not yet invented, sir, so these are all solid forms. Additionally, we hold two candy-making factories, two biscuit-making factories, one chocolate product-making factory, and two bakeries. That totals fifteen manufacturing entities and businesses."
Michael nodded. These acquisitions were made over the last two years using the money Michael had made in the stock market, with Jack Cooper acting as the front since Michael was not yet legally a major.
"And how are the sales of these products progressing, specifically within the Kingston General Stores in Massachusetts and New York?" Michael questioned.
Jack's expression tightened slightly, the only outward sign of frustration. "Sir, the products are being sold essentially as unbranded alternatives to the popular lines. We sell them at a very attractive low price point. At first, they sat on the shelves, but gradually, they've been getting good word-of-mouth, especially the biscuits and the new toilet soap."
"But?" Michael prompted, already knowing the answer.
"But, without proper branding, they are perceived as inferior, economy-level products. They're alternatives, never first choices. The public associates quality with a distinct, recognized name and image. We cannot break into the higher margin, premium market segment without a brand, Mr. Kingston."
Michael did not respond immediately. He gazed out the window, his expression unreadable, calculating. Jack is absolutely correct. The products are fine, the pricing is smart, but the market only rewards perceived quality, which is intrinsically tied to a distinct, recognizable brand identity.
He turned back, his gaze sharp and focused. "Jack, I want you to immediately proceed with the incorporation of two new legal entities. The first will hold all of our acquired food and confectionery production—the bakeries, biscuits, candy, and chocolate. The second company will be the home for all of our hygiene products —the soaps, toothpastes, and shampoos."
Jack quickly pulled a notebook and pencil from his inner coat pocket. "Understood, Mr. Kingston. Two new entities: one for all confectionery and food products, and one for all hygiene and chemical goods. Do you have names designated for these entities?"
"The food entity will be 'Kingston Foods & Flavors,'" Michael said. "The hygiene products company will be 'Kingston Quality Goods.'"
Jack wrote the names down, but his pen hovered over the page for a moment longer than necessary. He looked up, a slight, almost imperceptible furrow in his brow. "Is something the matter?" Michael asked, noticing the hesitation.
Jack cleared his throat. "If I may, Mr. Kingston, the names… They seem a bit generic. "
Michael leaned back, a small, knowing smile touching his lips. "And that is exactly the point, Jack. We do not need a novel name; we need a functional, dependable one. A name does not make a product popular; quality does. We will make these names popular with quality. Besides, the 'Kingston' name before the company name is a pretty good brand already, and the family has secured it with a trademark. We leverage that existing recognition while giving the public a clear expectation. "
Jack nodded slowly, his brow smoothing out as he accepted the wisdom of the decision. "Understood, Mr. Kingston. A brand built on trust."
"And by the time I return from New York next month, I trust you will have the initial procedures completed and the necessary framework established," Michael added, his tone conveying confidence rather than demand.
"It will be done, Mr. Kingston. Where should these entities be incorporated?" Jack inquired, pen poised.
"Chicago, Illinois," Michael stated without hesitation. "That location is pivotal to our logistics and future expansion. It provides the best central rail hub access, and the laws are favorable for industrial growth."
And that was how Michael Kingston started two new businesses: 'Kingston Foods & Flavors' and 'Kingston Quality Goods'.
*********
The Sentinel Building pierced the sky above Lower Manhattan, a towering testament to the new era of American enterprise. Its sheer height, a monumental feat of engineering for the time, ensured that its tenants could look down upon the city's ceaseless commerce. In the newspapers, the edifice had earned the moniker "The Watchtower of Wall Street," a reference not just to its location but to the strategic view it offered over the entire financial district.
The 63rd floor—the absolute apex of the tower—was home to the newly restructured corporate headquarters: Kingston Investments, renamed from 'Kingston Inc.' .Every other Kingston business held offices within this imposing structure, while the remaining floors were profitably leased to a roster of high-profile legal and brokerage firms.
Michael stood at the center window, his back to the room, looking out. The sprawling city lay beneath him: the canyons of Wall Street, the ferries crossing the harbor, and the endless grid of streets.
Mary, John, George, and Elizabeth sat at the massive mahogany table, their expressions tight with deep, concentrated thought, studying financial ledgers and market reports.
"What you said... is it real, Michael?" John's voice was low, betraying the weight of the question. "Is there going to be a stock market crash, truly?"
"There is going to be a crash, Father," Michael said, his voice flat and authoritative. "In the coming months. It will be bigger than the Panic of 1901."
The family exchanged glances, acknowledging the gravity of the words. They trusted Michael, even if his certainty felt like a curse.
"The signs are everywhere," George conceded, leaning over the table to point at a recent market summary. "The market instability has been building for over a year. After reaching a high of 103 in January 1906, the Dow Jones Industrial Average began a modest correction that continued throughout the year. The April 1906 earthquake that devastated San Francisco contributed to the instability, prompting a great flood of money from New York to San Francisco for reconstruction. Furthermore, the money supply was stressed in late 1906 when the Bank of England raised its interest rates, causing funds to remain in London."
John picked up the thread, his voice grim. "From that January peak, stock prices had already declined eighteen percent by July 1906. Then the Hepburn Act became law that July, giving the Interstate Commerce Commission (ICC) power to set maximum railroad rates, which depreciated railroad securities. The market slid further between September 1906 and March 1907, losing 7.7% of its value, followed by another 9.8% drop later that March."
Elizabeth spoke softly. "The summer has been volatile. Union Pacific stock fell fifty points. New York City bonds failed. The copper market collapsed. And in August, Standard Oil was fined twenty-nine million for antitrust violations. We see the panic outside America—in Egypt, in Japan—but the spark hasn't hit home yet."
Mary looked at Michael. "What do we do? What is the maneuver?"
Michael replied, "We must amass significant cash reserves for the shorting operation, Mother. What is the maximum liquidity we can achieve in the next thirty days?"
George took a breath, calculating rapidly. "We have six million in ready reserves now. By liquidating non-essential bonds and leveraging some non-strategic real estate holdings, we can raise it to twenty million in thirty days."
Michael nodded slowly, the ghost of a smile touching his lips. "Dad, we will do the buying and selling every day next month using my gift. We have to raise as much money as possible."
Michael said, "Crucially, we must ensure our bank maintains at least a 50 percent cash reserve against deposits. When the market collapses, bank runs are inevitable. Our goal is to preserve public confidence; the moment we cannot meet withdrawal demands, the perception of insolvency becomes reality."
Michael declares, "If my prediction is correct, and we execute this flawlessly, we will become the new titans of Wall Street."