Holy Roman Empire - Chapter 139

Chapter 139: Chapter 26, The Yellow Sparrow Is Behind

Translator: 549690339

The news of the railway companies’ public stock offerings caused an immediate sensation, and within three days, the initial shares of these five companies were completely snapped up, raising a total startup capital of thirty million shields.

One had to admit that the Nobility were truly generous, with some investing one or one and eight hundred thousand shields without batting an eye.

Everyone was well informed and fully understood the government’s intention in doing this, which was to co-opt the local power factions to profit together, so as to avoid anyone causing trouble for the railway projects.

Even so, there was no reason for anyone to refuse the opportunity to get rich, was there?

If Franz was willing to let them get rich with him, it meant that the Emperor saw them as his own people, which put many at ease.

As for the fact that last year’s suppression of the Rebels led to a rolling of severed heads, it was automatically ignored by them. Unconsciously, they shifted their positions—naturally, traitors should be killed.

With so many powerful parties buying in, Franz no longer needed to worry about what came next. These people were even more anxious than he was; the sooner the railway was completed, the sooner everyone could start making money.

The exploration teams from the Railway Department had already set out, and to speed up the process, the newly established railway companies had also organized their own exploration teams to join the work.

Five railways were being constructed simultaneously: the Shuangbu Railway (from Prague to Bratislava), the Weise Railway (from Vienna to Szeged), the Weimi Railway (from Vienna to Milan via Venice), the Lusa Railway (from Ljubljana to Zagreb), and the Galician Railway

Naturally, the actual construction distances were not just this—these five were merely the main lines.

For instance: There were branch railways connecting between the Shuangbu Railway and the Weise Railway; the Weise Railway would extend westward to Salzburg, and the Shuangbu Railway also had a bunch of branches.

And not to mention the Lusa Railway— the straight-line distance between the two places was only just over a hundred kilometers, how could such a short distance serve as a main line?

Of course, it extended to the sides. Westward to Filach where it connected with the Weimi Railway, and eastward to Slavonian Brod.

Just the main routes alone amounted to four to five thousand kilometers, and with various assorted branch railways, the total exceeded ten thousand kilometers easily.

Without a doubt, the Railway Department had smuggled in some private interests, employing bundled methods to package some of the more difficult routes.

This also had Franz’s tacit approval. As compensation, the Austrian Government would provide some free labor for the railway companies, the specifics of which would be determined based on the construction conditions.

Now that everyone was on board, thinking of getting off at this point wasn’t possible, was it? Without the government-supplied labor that could be treated as expendable, it would not be easy for the railway companies to build the railways.

If the casualty rate was too high, even the vast connections and influence everyone possessed wouldn’t be able to cover it up, right?

Just think, the social impact of tens of thousands of deaths would be tremendous. Not to mention anything else, just the compensation alone could make them bleed money.

This was also one of the reasons for the slow growth in Europe’s railway mileage. Constructing a few hundred kilometers of railway each year with a controllable casualty count was bearable for everyone.

If the deaths and injuries were severe, the workers would strike. Were they to transport slaves from overseas for construction? In this era, the price of slaves was equally expensive, and the shipping costs wasn’t a small figure either.

Building railways in this era was, to say the least, very cruel. With too little machinery, most of the burden had to be carried on human shoulders, and in dangerous areas, it was common for both people and equipment to be lost together.

Opium, moreover, was a daily necessity provided by many unscrupulous railway companies for their workers. Most people couldn’t endure the pain and relied on opium to numb themselves, resulting in their complete detriment after just a few years.

Without question, these newly established railway companies in Austria were representative of such unscrupulous companies, with shareholders behind the scenes being a group of seemingly respectable Nobility.

Because they were Nobility, they had to be mindful of their reputation—many things could be done in secret, but they couldn’t be involved in the open.

Cleaning their image wasn’t easy, and it was even more impermissible to desecrate the reputation built up by their ancestors. Just look at Franz’s performance to know, the Emperor himself wouldn’t get involved, and the Habsburg Family’s investments had to be done through shell accounts.

In such a case, what could be more reassuring than using criminals? No matter how many died, social opinion wouldn’t blame them, at least not in this era.

Of course, they couldn’t do without finding a few managers or presidents to shoulder the blame, then condemn them for managerial errors, and that would be the end of the matter.

These people were all Rebels, already vilified to the bottom in public opinion, as long as the Austrian Empire existed for a single day, there was no chance for their exoneration.

Don’t think that because Europe didn’t practice guilt by association, the Austrian Government would not engage in it either. If rebellion was involved, even the high and mighty Nobility would be finished, let alone the common folk?

Everyone pretended to be ignorant, ordinary people would not admit that someone in their family had rebelled. As long as they stayed obedient, the government would also pretend to know nothing.

Anyhow, with the chaos of war, it was very difficult to verify anything; they just processed it as mortality figures. Otherwise, how would Metternich come up with the death toll?

These people were already ‘deceased’ on the household registration, their families had treated them as dead, and many funerals had been held prematurely.

Aside from Franz’s initial lenient handling of the Vienna Rebels who “raced to surrender first,” the Rebel armies in the Italian Area and Hungarian Region were essentially considered dead.

These people also became the best laborers, those who had died once could not die again; if these people died, they were simply burned, and that was that.

There was no need to pay wages, no need to pay compensation. No families making a fuss, no media condemnation, no subsequent troubles at all.

The only issue was that these people were in the government’s hands, and naturally, there was a price to pay to use them. There weren’t really as many additional sections as initially agreed, but neither was there a promise to provide free labor, was there?

After not hesitating for long, everyone still decided to go ahead with the construction. They simply planned to build these sections later. After all, eliminating the biggest expense of labor didn’t add much to the budget.

In the future, they would put it into operation if profitable, and if not, send a train every ten or fifteen days—it was their freedom to do so.

The profitability of Austria’s railways actually isn’t too great a concern as long as the operation of train services is controlled; even in the most remote areas, it is possible to gather enough goods for a shipment every ten or fifteen days.

The railway lines planned by the Railway Department connect cities, not villages, so how could there be no business?

Less popular routes might not make much money, but breaking even isn’t a big problem, and losses, if any, won’t be significant.

This is an advantage for private railway companies, as they have the flexibility to adjust train services based on actual demand, both for freight and passengers.

But it doesn’t work for government-operated railways. If dispatch personnel are given such extensive authority, it is estimated that the railway system would be quickly plundered by them, and overseeing this would be extremely troublesome.

Private enterprise owners will watch over it themselves, but no government-appointed supervisor can guarantee against corruption. Surely, Emperor Franz can’t be expected to attend to this matter daily?

The government also has to consider political factors. Many areas need daily railway operations for economic development. While the railway system might operate at a loss in the short term, it can stimulate local economies and increase tax revenues.

In the end, it’s difficult to calculate whether the government profits or loses from this arrangement.

To prevent widespread corruption and minimize losses, most government-operated railways have fixed their schedules.

Any changes in scheduling require layers of reports, and unless there’s a special circumstance, few employees would bother, resulting in naturally higher operational costs.

After a series of negotiations, an agreement was finally reached, and Austria’s major railway construction project got underway.

To recoup costs in the shortest amount of time, the “triangular approach” (simultaneous surveying, designing, and construction) was adopted.

Just as construction started, everyone frustratingly realized something – it seemed that all the sandstone mines around the railways had fallen into the hands of the Austrian Sandstone Group.

This led many to regret not acting earlier. Before the railway construction, only the sandstone around cities was valuable – nobody was interested in sandstone from the wilderness.

But now things were different. Railway construction would inevitably use vast amounts of sand and stone raw materials. And in this era without cars, transportation relied on manpower or animal power, leaving no choice but to use local resources.

The moment they received this news, the railway company’s executives were furious. Initially hired by shareholders to do the dirty and tiring work, it was now their time to step up.

Regrettably, they didn’t get a chance to perform. When the Austrian Sandstone Group revealed their backing, everyone acted as if nothing had happened.

But something did happen. They came prepared to cause a scene, but after understanding the situation, they went into business negotiations instead, leaving with a supply contract already signed with the Austrian Sandstone Group.

The trade was genuinely fair to both young and old – all sand and stone supplies were priced at market value, which could be considered fair if it weren’t controlled.

Franz was aware of the stakes. Making a modest profit was acceptable, but overdoing it and tarnishing the reputation would not have been good.

Therefore, the market price of sandstone did not skyrocket, but only increased by three times compared to before the construction. Of course, the railway company, being a major customer, was given a twenty percent discount.

Overall, the unit price only rose by four percent, barely an increase. It was definitely a conscientious price.

This was within the rules; earlier in the year, Franz had acquired these mineral rights for a song, with many of them purchased from the nobility.

In this era, the most valuable commodity was information. There was no help for them; their sources weren’t swift enough and their greed for small benefits left them no choice but to concede.

The only consolation for them was that apparently, His Majesty the Emperor didn’t target the railway specifically. He didn’t just buy the sandstone mines but also swept up various other mines, except for the expensive ones like gold and silver mines.

Even the acquired sandstone mines were not all along the railway lines; they were scattered across barren mountains and wilderness, evidently broadening the net to make money.

Franz naturally could not manage so many sandstone mines himself; after all, the unit price of sandstone was not high, and profits mainly depended on volume.

As an emperor who valued reputation, exploiting workers was out of the question, including revealing his involvement as the silent owner.

This called for contractors. The great nobles disdained to deal in such second-hand trades, but there were lesser nobles and small capitalists, weren’t there?

Franz didn’t need to worry about that. Once the word of subcontracting spread, people swiftly made contact with the Austrian Sandstone Group.

With supply contracts in hand and a guaranteed profitable business, negotiations were easy.

Contractors were responsible for recruiting workers for mining, managing all activities on the minesite, and taking legal responsibility for these operations.

Depending on the situation, the Austrian Sandstone Group would claim twenty to thirty percent of the profits from the contracts, while the rest was left for the contractors to manage, including paying taxes and wages. The agreement would end upon the completion of railway construction.

Whether or not they could turn a profit depended on their management skills. After all, the contract was signed with the Austrian Sandstone Group, and all responsibilities were shifted to the contractors. If any significant issues arose, at most the investigation would lead to the Austrian Sandstone Group, the “shell company”.

And that was the end of it. Behind the shell company was yet another shell, and it ended there. Those in the know were clever enough not to lift the lid.

No matter how others schemed and fought tooth and claw, Franz quickly secured the largest share of the profit with the flick of a wrist.

By the time these railways were completed, it was estimated that Franz would have recouped all the money he had invested in the mines, and the mines themselves would represent his greatest profit.

Keep in mind, this was just the beginning. Only a portion of the sandstone mines had been developed, with many more waiting to be tapped into. At that moment, Franz realized, being a mine owner was truly the happiest of dealings.