Chapter 206: "Collecting Scraps"
Prince Constantin and Maximilian I spoke for a long time. In short, it came down to: "No money available. We can discuss everything but money." Facing Prince Constantin's thick skin, East Africa's first naval commander could only walk away empty-handed. Not only did he fail to secure support, but he realized he'd have to commit some of his own resources.
Meanwhile, that "broke" Ernst was on an inspection tour of the Ruhr area in Prussia.
…
Dense smoke filled the air; dark clouds hung low. That was the sight Ernst saw in Ruhr's industrial cities. The Ruhr region was rich in coal but lacked iron. Fortunately, transportation here was very convenient: the Rhine, Ruhr, and Lippe rivers interlaced, with developed river shipping, plus a substantial network of rail lines that, thanks to the Customs Union, practically covered the German states.
"The environment is fantastic!" Ernst said sincerely.
"Your Highness, I'd say it's much worse than Berlin's air. Berlin has nothing like this level of pollution," remarked the manager from Heixingen Bank who accompanied him.
"I'm talking about the industrial environment, not the natural one. Remember, we aren't here on vacation—we're investigating local industrial equipment and factories."
"Right. And how's your research going?" Ernst asked.
"Your Highness, we've visited about two-thirds of the local companies and factories. Many are expanding, since the German market's been thriving these past few years. Production is busy; they're raising capacity. Most machinery sells out as soon as it's produced, and machine prices have been driven very high.
"Still, there's a silver lining. Many big companies and even small workshops are rushing to replace older machines so they can boost productivity. Though the equipment is older, it's a lot cheaper and very abundant. If you aren't too demanding, our recommendation is to buy this used equipment."
"I'm not picky, but don't get careless. If you end up with piles of junk, I'll be very unhappy," Ernst cautioned.
On the surface, Ernst was here to "investigate" but was actually just collecting "junk." That had always been a tradition of the Heixingen Consortium—like buying Prussia's secondhand army uniforms and weapons in the past. Now it was secondhand industrial machinery. Once discarded by Prussia, it had little use at home but was perfect for raising East Africa's productivity. Right now, Mbeya City still relied on huge numbers of "laborers" using only shovels and picks to shoulder coal out of the mines.
Those "laborers" were also a resource. If machinery could free some of them from the coal mines, more manpower could go to other construction.
"Your Highness, rest assured. We've hired specialists to examine the equipment first and evaluate whether it's still usable. We'll also actively work with larger companies like Krupp, since their replaced machinery is typically more reliable," the manager said.
You even needed specialists to "pick up junk," or you might really end up with scrap metal, and Ernst would be the one crying over that. Yet even "junk" wasn't cheap, given the volume he intended to buy. No wonder the manager of Heixingen Bank was accompanying him.
From an economic standpoint, East Africa was definitely still a feudal agricultural society, but "feudal and agricultural" didn't mean you couldn't have industry. Even the Qing government and Japan were pursuing industrialization, so why should East Africa lag behind? Of course, Japan and China had deeper reserves. Take Japan: it had a long history and a dense population with many things already in place—just behind the times. East Africa was only bigger in land area, without many obvious advantages. There were mineral resources but they needed extensive development. Japan's reforms weren't so difficult, either; its people tolerated hardship well, and as long as it gave Britain and America favorable terms, they were happy to back Japan, partly to counter the Far East and Russia. Strategically, they benefited from having a stronger Japan.
East Africa had no such backing. Up to now, it had never introduced foreign capital, nor did Ernst want that. Prussia and Austria wouldn't be any help, either. Accepting foreign capital would cost the Heixingen royal family's independence. East Africa, from the viewpoint of other nations, had little cooperation value; in fact, it was a potential rival: "the African Russia," so to speak.
Hence, all trade ran through the Heixingen Consortium, with all data kept private, to avoid attracting international attention. The downside was the huge shortage of funds, since East Africa's development relied entirely on the Heixingen Consortium. That was why Ernst had chosen agriculture as the colony's anchor: it required smaller investment, could recoup costs in good time, and while it didn't generate big profits, it did keep people there.
"This time, focus on mining and iron-smelting equipment. We'll try setting up a basic industrial city in East Africa," Ernst said.
He was referring to Mbeya City, deep in the inland, where resources were plentiful. There was coal and iron, and the climate suited industry—though the transport conditions weren't ideal. Still, East Africa's industrial products were for internal use. No need to export them, so it was fine.
"What about skilled workers, Your Highness? Even if we have machinery, the lack of professionals is an issue."
"Don't worry, I have a plan."
And Ernst did. He intended to sponsor a group of immigrants from the Far East to "intern" in the Ruhr. He'd pay them himself, so that they could acquire some basic factory experience before heading off to East Africa. The cost wouldn't be high. Workers from the Far East wouldn't need large salaries. Even a modest wage sufficed, so that was no burden. Meanwhile, the German factory owners couldn't refuse "free" labor. That solved the problem of securing foundational industrial workers. Low-end physical labor could be done by the "laborers," while for top-end tasks, East Africa could hire experienced Europeans at decent pay. They didn't need geniuses—just technicians able to maintain the used machines so they'd run reliably.
This "scrap-collecting" mission was a big deal. The entire Ruhr area was the Heixingen Consortium's target, with the broadest range of industrial equipment, all in compact cities—no need to shuttle around all of Germany. Once they acquired the machines, they'd break them down into parts, ship them via river or rail direct to North German ports, then load them up for East Africa. Very convenient.
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 20 Chapters In Advance: patreon.com/Canserbero10