Chapter 204: "Exile"? Or "Run"!
"Zzzz…"
The phone line crackled with a lot of static, yet even so, this was high-tech from the Berlin Electric Company.
After finishing the call with Ernst, Prince Constantin understood roughly what his son was up to. The East African colony—now we might call it the County of Heixingen or the East African region—had basically shifted its core here. It wouldn't make sense to say "I'm colonizing myself!"
As for the hundreds of thousands of slaves on East African soil, they were now "international laborers" helping build East Africa. Ownership of this land was already in the hands of the Heixingen royal family.
The old Heixingen homeland, meanwhile, was fully under Prussia. It still had the name Heixingen and many industries belonging to the Heixingen royal family, but in the future, they could hand over that name, "Principality of Heixingen," back to the Kingdom of Prussia. East Africa is no subordinate to Prussia, whereas the old Heixingen homeland is. So it makes sense to distinguish between Heixingen and East Africa.
…
"Your Highness, these are the railway-industry documents that Prince Karl had delivered!"
"Mmm, set them on the table!"
Ernst had returned from Trieste. Construction of the new food factory there was going well, but the location wasn't ideal.
Austria-Hungary's coastline was quite narrow, and Trieste was really the only port that could handle major tasks, so that led to overcrowding of industry. In other words, land was expensive, and most good spots were already taken. Not that unclaimed land was truly free—rural landlords still count as landowners too, and they were genuine Austrian nobles. Therefore, the Heixingen Food Factory in Trieste had to be built in the outskirts.
Ernst flipped through the information. He quickly noticed a note Prince Karl had written: "Pay special attention to the Roens Railway Company; it meets your requirements."
"Roens Railway Company is based in the Grand Duchy of Baden. It's fully equipped with staff and machinery, but a few years ago the older Mr. Roens died, and his son, young Roens, inherited it. Young Roens is a playboy who doesn't know how to run a business; as a result, they've lost several major contracts and are in dire straits now.
Originally, the Roens Railway Company was a leading enterprise in the Grand Duchy of Baden. Thanks to the elder Roens's skill, they even got business from France—though more like outsourced jobs. Otherwise, it would have looked like French railway companies couldn't handle it. Under Napoleon III, French economic growth reached one of its peak times in history, and the country's railways also developed quickly.
"After the younger Roens took over, he spent his days indulging in pleasure, eager to 'deepen relations' with ladies of the Grand Duchy of Baden. With no push to expand in France, their 'home base' got encroached upon by Prussian firms. Now the Roens Railway Company is near bankruptcy." Ernst read the file and commented:
"This company isn't bad. Before he died, the elder Roens, worried about his son's abilities, upgraded the company's facilities, and they have the newest equipment. But it's a pity."
"Your Highness, are you dissatisfied with this company?"
"Not exactly. I just feel that even if young Roens were competent, the company might still struggle in the future. Right now, the railway industry is extremely competitive—especially in the German states—and in a few more years the railway business will hit hard times. Even if young Roens were good, it's uncertain he could survive that.
"Your Highness, how do you know that railways will go into decline? Right now, many countries pay more and more attention to them, so the potential seems excellent," Tom asked curiously.
"The potential of railways remains huge. Even a hundred years from now, that won't change. But can everyone calmly focus on real industry? For the sake of profit, the financial sector has been hyping railway stocks, and everyone is rushing to build tracks—beyond what's really needed in some areas, with not enough people or cargo to support them. In the end, how do they recoup the cost? A bunch of overconfident fools will be left holding the bag," Ernst said. He had a sense of history on his side.
"So why do we still want to enter the railway business, Your Highness?"
"All of Europe, not just the German states, is highly competitive. I don't plan to invest heavily in railroads anytime soon. Right now, I only want to make sure we can do it at all. East Africa will eventually need railways—and a lot of them—so I'm getting ready in advance," Ernst told his steward.
"All right. Then I'll contact this young Roens and buy out his company. I'll make sure to push the price down," Ernst said.
"Yes, Your Highness. I'll handle it," Tom answered.
…
Karlsruhe.
The capital of the Grand Duchy of Baden, it's not much bigger than Heixingen. Even though Heixingen used to be quite poor, once Ernst grew wealthy, Heixingen also became more prosperous. Merely establishing the Heixingen Military Academy and a few other schools added significantly to its population, and the building of Hohenzollern Castle and nearby academic facilities created jobs. As the ancestral territory of the Heixingen royal family, the area gained more economic benefits, and has done quite well in recent years.
Even though Karlsruhe is the second-largest city in the southwest (after Stuttgart in the Kingdom of Württemberg), it has only a bit more than one hundred thousand people. The Roens Railway Company is located in Karlsruhe, this "big city" of South Germany.
"Mr. Noding, is it true that our company is changing owners?" an employee asked the chief engineer of Roens Railway.
"Yes, it's true. The company's been bought by the Heixingen Bank."
"Mr. Noding, does that mean we'll finally get paid?" Several employees asked anxiously.
"Of course—the Heixingen Bank is a huge bank, so it's reliable. But it may not be so easy," Noding answered.
"Why not?" they asked anxiously. After all, they hadn't been paid in two months.
"The new boss said, 'If you want your wages, fine—but the company will move to East Africa,'" Noding explained.
"East Africa? That's in Africa. It's so far away. So we're leaving Baden?"
"Yes. The new boss says the market in Germany is oversaturated; no orders means no pay. So only in East Africa can we find new work."
"But we all have families. How can we go to East Africa?"
"The new boss says he encourages family members to come along. All travel, plus food and lodging on the journey, will be covered by the company. They'll provide housing in East Africa, so there's no need to worry too much."
"But isn't Africa supposed to be no place for people? I've heard it's full of wild beasts and cannibal tribes…"
"Don't believe everything you hear. Africa is huge—there have to be some decent areas. It's probably not as nice as Germany, but at least better than some of Russia's icy wastelands."
"How is that different from exile? We aren't criminals of the Tsar. We're going to Africa to dig potatoes?"
"Calm down. If you don't want to go, can you think of a better idea? Our old boss left a huge mess; we're lucky anyone's willing to take over. And without wages, what will you eat? The new boss says you get a 10% raise in East Africa, which is a perk. Sign a contract, work there for ten years, and you can come back. It's up to you. If you don't want this, you can quit—but since we haven't done any real work these past few months, you'll only get one-third of what you're owed."
At first glance, Ernst sounds like a ruthless boss. He indeed owns Heixingen, but compared to others in that industry, he's relatively fair. If it were someone else taking over, employees might not get paid at all.
Ernst also didn't want to bully these unfortunate workers, but there's no choice. People are unwilling to go to East Africa—especially skilled laborers. If he didn't put on some pressure, they'd collect their pay and resign, with plenty of other options in Germany's booming railway sector. Meanwhile, East Africa's conditions aren't too bad anymore. They'll have food, shelter, and clothing, though medical care might lag behind. At least they won't have to do the hardest labor themselves—there are a million "workers" for that. Skilled people are mostly needed for specialized tasks. Bringing their families along means they won't have to worry about living costs for the rest of their lives. As the first group to go, they'll gain an advantage in the future. That's called "seniority." So for them, going to East Africa isn't "exile" but "run"—escape to somewhere better. Ernst sees it that way himself. He figures he's being overly kind, saving these workers' jobs, helping Baden handle a potential wave of layoffs, and further developing East Africa. He can't lose.
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