1632: Essen Steel (8 page)

Gerard took a sip of wine. "What kind of production would you expect?"

"Trained workers will produce five hundred tons a year." Josh thought a moment. "My figures indicate an estimated profit of two to three hundred thousand guilders a year. The steel could potentially be used for payment of goods in markets like Asia, the Levant and Russia where payment is often demanded in silver only."

"Based on what you've said, the location must be somewhere in the Rhineland," De Geer said. "Correct?"

Colette laughed. "Perhaps, uncle, but we still have a little research to do. We'll be ready in a week."

Six days later they had their first real strategy meeting on the floor above the common room at the Inn of the Maddened Queen. The week had been well-spent. Besides touring Grantville and its industries, De Geer had had a chance to get to know Colette and Josh on a personal level and observe them in unguarded moments. Their love for each other was obvious and their marriage seemed stable. He was especially pleased to see the way Josh treated his employees, four young men he'd hired in Erfurt. De Geer himself believed that a close relationship between workers and management fostered loyalty to the business. He was well known for providing churches, schools and books for his Walloon workers in Sweden.

"So, are you ready to reveal this mystery location?" De Geer asked.

Josh motioned towards his wife. "Colette?"

Colette brought a large rolled-up map from the side of the room and laid it on the table. She put weights at each corner. The map was an accurate representation of central and northern Germany with simple markings for rivers and mountains. The area around Grantville was clearly marked with all political and ecclesiastical boundaries as was an area near the Dutch border.

"Here, Uncle." Colette laid her finger on the map. "We think your major industrial complex should be here."

"Essen?" murmured Steven Gerard, reading the map. "Why Essen?"

Josh smiled. "Up-time it was often said that there were three requirements for a successful business … location, location, location. Essen is located in what is called the Ruhr basin, an area between the Ruhr and Emscher rivers. The Ruhr was the center of the German Industrial Revolution because of the coal fields, which are the largest in Europe by far. The coal fields in the Ruhr start at the surface near the Ruhr River and descend downward towards the Emscher. There are many areas that contain anthracite, a coal even more suited for industry in some ways than the bituminous coal in Grantville. There are also blackband iron mines in the Ruhr basin. These are iron ores mixed in with coal in a coal mine.

"The second important factor favoring Essen … " Josh swept his hand westward on the map, "is distance to markets. The Ruhr is very close to the Rhine and thus has access to Amsterdam via barge. During the German Industrial Revolution Duisburg was the largest inland water port in the world. Down-time Duisburg is a mile away from the Rhine, so the port might better be placed at Ruhrort at the mouth of the Ruhr, or, if floods are a concern, at Styrum.

"Third, Essen and the area around it are now occupied by Dutch troops. We have a saying up-time: "Possession is nine-tenths of the law."

Louis smiled. He could appreciate that saying.

Josh continued. "While you'll want to make arrangements to obtain the proper legal authority to mine the minerals and build industries in the Ruhr, the fact that the occupying forces are Dutch should be very helpful for Dutch industrialists. Fourth, you're close to areas with skilled labor. As your industry expands you will be able to more easily recruit iron and foundry and other workers from the Flemish and German iron centers.

"Legally," Josh said, "you'll want to obtain mineral and transit rights so you can get your products to market. Colette has identified three areas of importance. Colette?"

Colette rose and began using a wooden pointer to indicate areas on the map. "This green area is most important. It is Essen Stift and the mineral rights have in the past been controlled by the Abbess of Essen. With Dutch troops occupying the area, however, Essen Stift is currently being administered by the Essen city council although technically they have no legal right to do so."

Colette moved her pointer to an area in light blue near the mouth of the Ruhr. "This area in light blue is currently controlled by the Elector of Brandenburg. When we were discussing this with Jan a few days ago, he remembered that the Elector borrowed over two hundred thousand guilders at seven percent interest from the Amsterdam admiralty in 1616 and that the loan has never been repaid. If someone assumed responsibility for the interest on the loan, it's quite possible that the Elector would consider a land grant as compensation.

"The third area, the one in red, is in Berg and belongs to the Count of Pfalz- Neuberg, Wolfgang Wilhelm, in Düsseldorf. Rumors are that the Count, like many German princes, has debt problems, so once again a loan might be compensated for with a land grant, particularly given the relative worthlessness of the section considering how surrounded it is by other territories. With all three areas you would control a continuous strip of land along the Ruhr River giving access to the Rhine and a number of coal and iron mines."

Louis nodded. It made sense. "What will your involvement be?"

Colette smiled. "Our role, Uncle, will be to expedite the transfer of knowledge so that your industrial complex can start operation as quickly as possible. We will hire the teachers and craftsmen to train your workers and engineers in modern techniques and modern chemistry. We will act as consultants and managers for your Grantville-based industries. In addition, we will constantly be looking for businesses that will leverage your capital or that will enhance the Essen industrial complex. For example, given the chemicals that can be distilled from coal tar gases when making coke, a chemical company might be very profitable."

"So, how do you propose we go about doing this?"

"We were thinking," Colette said, "that you would obtain investors to form a company similar to the United East India Company. Let us say we call it the Essen Steel Company. Naturally you would want to form the company only after obtaining the rights and lands we have already outlined."

Louis de Geer looked down at his fingers. "And your share of this company would be … "

Colette smiled again. The negotiations were beginning. "Five percent. Each."

Louis de Geer's nostrils flared. "Preposterous! You may be my niece, young woman, but do not attempt to take advantage of an old man with a bad heart! Three percent for the both of you combined."

Colette forced tears into her eyes. "Uncle, how could you think such a thing! Haven't I always been your favorite niece? Did I ask for a single guilder for all the hours I spent recruiting the Walloon ironworkers you needed in Sweden? I worked my fingers to the bone for you! Four percent each and twenty thousand guilders in an interest free loan for a new crucible steel plant."

As the two continued, Josh Modi and Steven Gerard looked at each other and smiled. Clearly the love of haggling had been passed on from uncle to niece in some way.

* * *

The negotiations lasted for several days. Eventually Colette settled for four percent of the Essen Steel Company shares. The White Diamond Steel Corporation received a forty thousand guilder interest free loan to expand their crucible steel business while taking on the obligation to train sixty Dutch workers in the crucible steel making process over the next two years. In addition, Josh and Colette were to establish a partnership with Louis de Geer in a company called Advanced Technologies Incorporated which would invest in steam engine companies and other businesses as well as train workers and engineers Louis would send to Grantville.

The day before his departure, Colette and Josh each gave a gift to Louis de Geer. Colette's gift was a cipher system based on matrix algebra so that they could have a form of secure communications.

Josh's gift was an up-time rifle, the BM-59 his grandfather had left him. Along with two hundred rounds of ammunition and two box magazines. "This might help convince some of the investors you talk to that there really is a Grantville."

They spent a bit of time test-firing the weapon.

The next day Louis de Geer left Grantville. With his son, Jan de Vries and the Trips, he headed in the direction of Mainz and Axel Oxenstierna. Dirck Graswinckel and Steven Gerard headed northeast towards Brandenburg.

* * *

"You realize, of course," Dirck Graswinckel said, "that this is absolutely hopeless." He and Steven Gerard were walking along the streets of Berlin toward the palace of the Prince of Brandenburg. "Even if we do get in to talk to the elector, there is no chance that he will make a decision."

The Elector of Brandenburg, George William, often seemed more interested in hunting wild game than in directing the affairs of state.

Steven glanced over at Graswinckel and shook his head. He had been troubled when Dirck Graswinckel had been added to their party at the last minute. Dirck was a protégé of Hugo Grotius. When Grotius realized that he was once again being forced into exile in the spring of 1632, he had appealed to his friend, Gerard von Berkel, burgomaster of Rotterdam, to find a patron for Graswinckel. Berkel had approached Louis de Geer. Despite Gerard's initial misgivings, Graswinckel had shown himself to be an excellent companion and a knowledgeable jurist.

"So what should we ask for? In addition to Duisburg and the area around it?"

Steven smiled. "Let's start with County Mark and work our way down."

"All of it?" laughed Dirck.

"Why not?"

* * *

"These Dutchmen are insane! A land grant for all of County Mark for a mere fifteen thousand guilders a year! Unheard of! The tax revenue from Soest alone is worth more than that!" George William was cloistered with Adam von Schwarzenberg, his chancellor, after meeting Graswinckel and Gerard.

Schwarzenberg's pointed goatee could not hide his large double chin. As he sat down he began adjusting the lace across his shoulders. "Did they say why they wanted the grant?"
And
it's not fifteen thousand guilders you pompous fool,
he thought.
It's 17,360. And when was the last time we collected tax revenue from Soest? Or anywhere in County Mark? Sixteen years?
He shifted a little to get comfortable in the hard chair.
Not that the rest of your nobility is any happier about paying their taxes.

The elector was Calvinist. The chancellor was Catholic. Most of the rest of Brandenburg's population was Lutheran. It made for some interesting domestic politics.

"According to Gerard," George William said, "Louis de Geer wants to ship coal to Amsterdam for new industries. New industries, while we sit here in poverty being threatened by my brother-in-law's cannon! I won't do it, County Mark is mine!"

Schwarzenberg smiled thinly. "Now you're just being petulant. This is just the beginning of negotiations."

George William pouted. "I don't want to negotiate. I want to go hunting." He looked over at Schwarzenberg with drooping eyelids. "Can you negotiate for me, Adam? I trust your judgment."

Schwarzenberg sighed. He liked power. Usually he enjoyed the fact that George William was more than willing to delegate the affairs of state to him. But there were times …

Ah well,
he thought,
the good with the bad
. And if the Dutch were eager enough, and willing to compromise, there might be some personal gain to be gotten as well. Schwarzenberg nodded. "Your wish is my command, my Prince."

George William's face brightened. "Just don't give up too much of County Mark. It's mine!"

Two days later Adam von Schwarzenberg sat down with Dirck Graswinckel and Steven Gerard in his office in the Palace. "The elector has delegated authority to negotiate on this issue to me, gentlemen."

He motioned for the guards at the doors to leave. Once they were alone he leaned forward. "Now, tell me. What is the real reason Louis de Geer wants County Mark? And what is he willing to settle for? You understand that a grant of the entire county plus the area around Duisburg you are requesting is absurd for just 17,360 guilders a year."

Graswinckel and Gerard looked at each other.

There was opportunity here
, thought Graswinckel,
but danger as well. Best to mix the truth with a few lies
.

Dirck arched an eyebrow at Steven and understanding passed between them. Dirck would take the lead.

"Have you heard of this new town in Thuringia? Grantville?"

Von Schwarzenberg started in surprise. He hadn't expected this turn in the conversation.

"Yes," he replied warily. "But the stories are probably just peasant lies."

Dirck shook his head. "They aren't lies, we've been there."

Schwarzenberg's eyes brightened. "Tell me."

Graswinckel told Schwarzenberg about their time in Grantville, carefully editing his conversation. Schwarzenberg seemed fascinated. "So they are really from the future?"

"Apparently so." Gerard shrugged. "We saw several books with dates indicating they were published in the 1990's, more than three hundred fifty years from now. Many of the processes my brother-in-law wishes to establish in Amsterdam require coal of a particular kind that is found in the western parts of County Mark. The area around Duisburg will function as the port for shipping until locks are built on the Ruhr."

"Locks, I might add," Gerard said slowly, "that will open up more than just the western portions of County Mark. There are other areas in Europe with this kind of coal, of course, but … "

Schwarzenberg nodded. Better and better. The Dutch would prefer the County Mark location, obviously. But the message was clear. The price had to be right.

Three days later Dirck Graswinckel and Steven Gerard rode out of Berlin.

"Now that wasn't so bad."

"Won't Louis be upset?" Dirck asked. "We paid more than we were authorized to offer."

Gerard shrugged. "Not by much. Louis expected us to use our judgment. Once it became clear that Schwarzenberg wanted a cut, I knew we'd have to pay a bit more. Ten thousand guilders to Schwarzenberg isn't bad considering it's a one time payment. I think Schwarzenberg is looking to invest anyway. And we got much of the county west of Dortmund above the Ruhr, as well as Duisburg. Louis will be pleased."