The Debenzer Family Meeting (1)
The morning of June 11, 1979, at Debenzer The Manor. After waking up, swimming, morning exercises, and a riding lesson, the afternoon was spent inspecting and meeting with the various companies under the family’s umbrella. After faithfully repeating this routine, all the meetings finally came to an end. Henry had also succeeded in grasping the overall outline of the family’s operations, even if not perfectly. The inspection process had included a visit to Manhattan.
That place was a chaotic city where prosperity and crime existed in a bizarre symbiosis. Above the downtown streets lined with endless queues at gas stations—the aftermath of the second oil shock—broken neon signs cast a pale glow over avenues steeped in prostitution and drugs. The stench rising from piles of garbage left unattended by a near-bankrupt New York City government stung the nose, while between those heaps swaggered punks and sharply dressed businessmen in a grotesque, flowing tableau. Only the old-fashioned neon signs, which somehow evoked a steampunk vibe, held their ground amid the disorder.
Henry felt the severity of this reality in his bones; it was, if anything, worse than the Gotham version of New York he’d seen in movies. Tomorrow is finally the day of fate, huh.
Tomorrow was the family meeting—the gathering of all those with real power—so Henry reviewed the materials he had prepared one more time.
1. Debenzer Winery & Brandy Distillery (Agriculture & Brewing)
Personnel: ~750 (multi-generational tenant farmers and master brewers loyal to the family)
Revenue: $16.5 million annually (Riesling white wine dominates; the distillery is still running at a loss)
Expenses: $13.9 million annually (premium oak barrel imports, low-temperature cellar maintenance, massive distillery deficit, full labor costs on the estate)
Status: [$2.6 million profit] — The perfect cash cow Riesling from the winery offsets the losses.
2. Debenzer General Construction (Comprehensive Construction Company)
Personnel: ~8,000 (skilled stonemasons, carpenters, architects, and field workers)
Revenue: $85 million annually (restoration of New York landmarks and commissions for ultra-luxury residences)
Expenses: $87 million annually (surging construction material costs, union wage hikes, sharp drop in new orders due to economic recession)
Status: [$2 million loss] — World-class luxury home craftsmanship, but the luxury housing market has frozen solid amid the economic crisis.
3. Debenzer Resources (Security & Protection — formerly Debenzer Shield)
Personnel: ~800 (former special forces, intelligence agents, protection specialists)
Revenue: $12 million annually (dispatch protection for New York political and business VIPs plus security consulting)
Expenses: $9 million annually (labor costs, introduction of latest comms equipment, informant recruitment fees)
Status: [$3 million profit] — Thanks to the worst public safety in late-1970s New York, it is one of the family’s only two cash cows.
4. Debenzer Hospitality Group (Three Hotels)
Personnel: ~600 (managers, bellboys, cleaning staff, chefs, etc.)
Revenue: $18 million annually (prime locations, but aging facilities have caused occupancy rates to drop)
Expenses: $21 million annually (mostly facility maintenance)
Status: [$3 million loss] — The family’s painful thorn, still living off the glory of the 1960s–70s.
Extra. Debenzer Family Trust & Committee (Asset & Legal Management)
Personnel: ~100 (senior lawyers, accountants, tax specialists, family administrative office staff)
Revenue: $0 (pure management organization)
Expenses: $4.5 million annually (high salaries for elite personnel, legal fees for managing 49 ground rights, etc.)
Status: [$4.5 million labor expense] — Acts as the family’s brain, but the maintenance cost is substantial.
1. Total subsidiary revenue: approximately $131.5 million
2. Total subsidiary expenses: approximately $130.9 million (subsidiary operations show $600,000 profit excluding trust)
“Even after pushing all the estate servants’ labor costs into subsidiary expenses for tax savings, the consolidated profit is only six hundred thousand dollars…”
Henry let out a hollow laugh, genuinely stunned. Only now did he truly understand why the family accountant he’d met not long ago had spoken with such fiery passion. The man had insisted that the proportion of dividends from The Time in the family’s financial structure was far too high, and that the subsidiaries needed a major overhaul to diversify revenue streams. Every word had been correct.
Looking at it holistically, the current Debenzer family was no different from a patient barely clinging to life with an IV drip labeled “dividends from a giant media company.” The subsidiaries are only making six hundred thousand in profit, yet the family administrative office alone costs four and a half million to maintain? This isn’t just the tail wagging the dog—this is the tail devouring the whole damn person.
The sensation from his previous life as a debt-ridden salaryman, trembling at the mere thought of a few thousand won, prickled at Henry’s brain. The brief moment of awe at seeing nearly a hundred million dollars in revenue quickly gave way to irritation once he confirmed the pathetic operating margin.
1. Ownership of 49 Manhattan Ground Rights
Core revenue sources (3 parcels, 1-1293-0001 etc.): $5,500,000 annually — Generous rents thanks to CPI-linked contracts.
46 rundown parcels (SoHo, Chelsea, Hell’s Kitchen, etc.): $500,000 annually — More than half generate zero revenue due to bankrupt landlords, or are deficit parcels where the family pays taxes to avoid losing the land.
Subtotal: $6,000,000 (approx. $6 million)
2. Stock Dividends
U.S. The Time (69% stake): $31,180,000 annually
UK The Times Group: $0 — Pre-acquisition; currently under due diligence
Conic (6% stake): $2,600,000 annually
Chait Manhattan Bank (1.2% stake): $1,400,000 annually
New York Time Class B (voting shares 3.5%) + Class A (common shares 1%): $120,000 annually
Subtotal: $35,300,000 (approx. $35.3 million)
3. Bond Interest Income
U.S. 30-year Treasury ($40 million): $1,600,000 annually (4% rate)
New York City fiscal crisis relief bonds (1975, 8-year): $2,850,000 annually (assuming ~9.5% yield including risk premium)
Blue-chip corporate bonds (GI, A&T, etc. $10 million): $700,000 annually
Subtotal: $5,150,000 (approx. $5.15 million)
4. Unlisted Subsidiaries & Other Income
Debenzer Winery/Distillery/Resources (security) profit: $5,600,000
Hotel/Construction combined: -$5,000,000 (net loss)
Subtotal: $600,000 (approx. $600,000)
Extra. Debenzer Family Trust & Committee (Asset & Legal Management)
Personnel: ~100
Revenue: $0
Expenses: $4.5 million annually
Status: [$4.5 million labor expense]
1. Total annual income: $47,050,000 (approx. $47.05 million)
2. Total annual expenses: $31,260,000 (approx. $31.26 million)
• Dignity maintenance: $10,000,000
• Mansion upkeep & various taxes: $15,000,000
• Debenzer Family Trust & Committee operating costs: $6,260,000 (includes existing $4.5M labor, pensions for family elders, scholarships and medical support for family members, etc.)
Final after-tax surplus cash: +$15,790,000 (approx. $15.79 million)
Asset organization is pretty much done. All that’s left is deciding on the direction of restructuring at the family meeting. After that, I can jump straight into growing the fortune. First, let’s completely tear apart and rebuild this outdated system.
Henry slowly read through the document he had written titled “Modern Restructuring of the Family System.” His eyes gleamed sharply as he meticulously checked every section that needed revision or additional content.