Chapter 343: The Trap

Chapter 343: The Trap

"Ah, everyone sees it that way," said Lavoisier, "Joseph thinks the same. He told me the most profitable businesses nowadays are steel and railways. At least, for the time being, that's certain. You know, the British have invested a lot in steel, but their progress seems limited. In this aspect of technology, they still have a considerable gap compared to us. Even if they come up with something, they can't match us in performance and cost. Moreover, we have a whole array of high technology that we haven't even put down on paper yet, hehe...

Regarding railways, due to Mr. Watt, the British have some expertise in that area. However, because they need to purchase rails from us, their construction time and costs will be restricted by us. They can build in England, but competing with us is out of the question. So, truth be told, all my money is now invested in these two industries. And indeed, they keep bringing in more profits."

Speaking of making money, Lavoisier beamed with joy.

"But the progress of railways doesn't seem very rapid right now, does it?" Nathan Rothschild remarked.

"Mainly because steel production is lagging," Lavoisier explained. "But the bottleneck in transportation capacity has been broken, new steel factories have been established, and before long, there will be a tremendous surge in steel production. Then, the advancement of railways will pick up pace. Soon, you'll see railways all over France."

"I think outside France, railways could also be a very profitable venture, say in Austria, Prussia, or even the New World."

"Probably," Lavoisier hesitated, "I'm not particularly familiar with the situations in those two countries. But Joseph mentioned that in those places, building railways is complicated due to land issues. You know, their lands are owned by various nobles from different regions, unlike in France where the nobility met the guillotine. So, constructing railways there is quite troublesome."

"But at least, there are segments where building railways would be highly valuable," Nathan Rothschild suggested. "For instance, constructing a railway from Lubin towards the Oder River would be immensely beneficial."

"Lubin has a large copper mine, and copper is a vital commodity, especially during the rapid development of electrification, the demand for copper keeps increasing."

"I have quite a few business dealings on the Austrian side. If we could get support from your end, I believe we could solve those annoying land issues and build that railway," Nathan proposed.

Lavoisier pondered for a moment and nodded, "Indeed, it's a good deal, but I've already invested all my available funds into these two ventures."

"Ah, Mr. Lavoisier, money isn't an issue," Nathan Rothschild assured, "Did you forget my introduction earlier? I am in banking."

"Oh, I haven't forgotten, but I've borrowed quite a bit from the banks in the alliance. Nearly half of my investment returns to those banks. Honestly, they've offered me very generous rates—yes, you wouldn't find such low rates anywhere else in Paris. They are willing to lend at these low rates because they know these two investments of mine are surefire moneymakers. So, although the rates aren't high, there's almost no risk. Yet, considering the uncertainties in deals outside France, especially in Austria, the risks are higher. Consequently, the loan rates will naturally be higher, and the returns might not necessarily be higher. Even factoring in the higher loan rates, the returns might be lower. So, although it's a good deal, for now, I might not need to invest in it."

Nathan Rothschild fell silent for a moment, then sighed, "You're right, Mr. Lavoisier. But if you'd be willing to help, perhaps, perhaps we could significantly reduce the risks in this business. Of course, I won't ask for your help for free... Well, you're the esteemed elder respected by Minister Bonaparte, and his wife is your niece. If you could convince him to invest in this project, or even if he doesn't invest actual funds, I can provide the entire sum. Minister Bonaparte would only need to hold a nominal share. I just need a name to exert pressure on the Austrian government. With such a name, they'll surely resolve our land issues. If you truly help, we can even offer you a share without cost..."

This suggestion immediately intrigued Lavoisier because it was a business without investment. It was even lower in cost than a business without investment. Consider, Joseph's brothers went for those businesses without investment, like seeking generosity from the Pope, and they needed to bring troops to fight a battle. However, this deal only required lending a name; it was truly... his heart started to beat faster.

Lavoisier and Nathan Rothschild talked for a while, outlining their intentions. Then he said to Nathan, "Mr. Rothschild, you're a business genius. I believe Joseph will also find this deal very interesting..."

While they conversed, the train began to decelerate.

"Mr. Lavoisier, Mr. Lavoisier, we've arrived. Aren't you planning to disembark?" a young man in his twenties called out to Lavoisier.

The event featured group gymnastics and demonstrations of various new technologies.

The theme of this fair was the Electrical Era, hence the spotlight was on various electrical innovations. Apart from the widely known electric lights and telephones, Bonaparte Generalelectricals showcased numerous novelties: an electric phonograph, extraordinarily bright arc lamps, among others. Of course, this exhibit wasn't solely Bonaparte Generalelectricals' show; many other enterprises also presented imaginative creations. There was even a small electric vehicle powered by lead-acid batteries. However, due to battery limitations, it couldn't go very far. Still, it attracted considerable attention during the exhibit.

The inventor claimed this invention could potentially replace carriages in the near future—at least within cities. Considering the vast market prospects, it was bound to be profitable, provided someone invested and helped resolve minor technical issues, particularly improving battery capacity and charging speed.

This, however, wasn't a minor issue. Even in later times, these were crucial limitations hindering electric vehicle development. Joseph was aware that under current technological conditions, solving these problems was merely wishful thinking.

Yet, others weren't as informed. Hence, this project might actually attract investments. Then, using those investments, establishing a company, conducting research, followed by bankruptcy announcement—thereby allowing Bonaparte Generalelectricals to acquire their research results at very low prices.

Indeed, many flashy exhibits at present served as bait; they were genuinely useful in the future, worthy of investment in research. However, even the Bonaparte family didn't have enough resources. So, they'd cast these items out, allowing those dreaming of fortune to invest, eventually bankrupting their enterprises at the right moment, completing research at low cost.

Thus, while Napoleon encouraged people to engage in maximum charity, he repeatedly cautioned, "Business involves risks; invest cautiously."

However, such warnings were undoubtedly futile. If they weren't, Joseph probably wouldn't have allowed Napoleon to play the role of the altruistic man.

Besides these trivial matters, Joseph and Napoleon were discussing the idea of permitting foreign investment in constructing railways in France. This concept was a brilliant proposal from the banker, Mr. Bovary.

According to this plan, the Military-Industrial Complex would first hype up the railways, making people believe that building railways would yield substantial profits. The consortium's most important enterprises, especially those dealing with freight transport, held significant stakes in each other. Hence, they could manipulate profits, reducing the profits of users while boosting the railway system's profits—a mere transfer of money from one pocket to another for the major shareholders. As for the minor shareholders—who cares?

This way, the railway companies' financial reports would appear impressively lucrative. By the time foreign capital was allowed to invest in railways, the most profitable and valuable routes would already be in the consortium's hands. The remaining constructions, largely for storytelling in the stock market, weren't particularly profitable—some wouldn't even profit unless railway fares were considerably robust.

Once these entities had constructed the railways, the consortium-controlled railways would proactively lower freight prices to benefit the masses. This tactic could push the railways constructed by foreign capital into bankruptcy. Subsequently, the consortium could acquire these railways at very low prices. Even considering financial tactics, they might not actually need to spend much money, and they could even have the foreigners build the railways and owe the consortium money afterward.

This plan received immediate support from most of the Bonaparte siblings and even prompted Joseph to applaud the genius of this scheme. After thorough analysis and discussion, they all believed it was highly feasible, very much worth attempting, with a high chance of success and significant returns upon success. This plan even made Napoleon, the master of profiting without investing, slightly doubtful. Moreover, on the surface, this plan fully embodied the spirit of France's open free trade and could even serve as an opportunity to demand other countries to equally open their markets to France.

However, after praising this proposal, both Napoleon and Joseph issued nearly identical orders to Lucien: "Keep an eye on this fellow, don't let him sell us out!"

Actually, such maneuvers did happen in the history of later generations. For instance, during the heyday of the Lighthouse Country, four hundred thousand kilometers of railways, most of them, were constructed using similar means, allowing European capital to invest. Vanderbilts, the first billionaires in Lighthouse Country history, also made their fortune using similar tactics.

Today's France had become the Lighthouse Country of this era. How could they not properly learn from the advanced experiences of another era's Lighthouse Country?

And setting traps for these individuals to fall into was also a crucial mission of this year's Paris Trade Fair.

The chapters aren't easily divisible, so I synthesized a single large chapter of five thousand words.