I Became a Tycoon During World War I: Saving France from the Start

Chapter 111 - The Capitalist Price War

Eric's airplane manufacturing plant was located in Paris's 20th arrondissement, an area known for its lower-income residents. He chose this location hoping to save on labor costs. Unfortunately, it turned out that if he couldn't sell even one plane, he couldn't afford to hire workers—no matter how cheap they were.

When Charles went to finalize the purchase contract, he brought Deyoka along, as Deyoka held his funds. Without him, Charles couldn't afford to buy anything at all. Deyoka was actually nearby at the city hall, working to secure the industrial rights to the Congreve rocket: the basic rocket design had nothing to do with Charles, nor did airplanes, but mounting rockets on a plane to target enemy balloons? That was very much Charles's innovation.

By patent law, the Allies would need to pay Charles licensing fees if they wanted to use this method in battle, making it one of his critical sources of income. Charles called home to get Deyoka's whereabouts from Camille, then sent someone to the city hall to fetch him, along with his checkbook.

When Deyoka learned that Charles was planning to spend hundreds of thousands of francs to acquire an aircraft factory and a flying club, he was stunned. His jaw practically dropped in shock.

"Are you sure you've thought this through? Really ready to spend 400,000 francs on an aircraft factory?" he asked, his urgency ignoring Eric's presence in the back seat as they drove to the factory.

"Yes, Father!" Charles responded resolutely. "As long as it's capable of building planes."

Eric was moved. Everyone knew aircraft manufacturing was a tough business, and yet this young man was sticking to his word—even knowing it could end in loss.

What Eric didn't know was that Charles already had orders from the military and needed the factory in operation as soon as possible.

Arriving at the factory, Charles and Deyoka were surprised by what they found: the facility was well-maintained, and even the equipment was shiny and rust-free.

"It could produce around fifty planes a month," Eric explained. "As soon as we hire workers, production can start immediately."

Deyoka was skeptical. He turned to Eric. "I heard your factory hasn't sold many planes, and that you're in serious debt to the bank. How is it that the factory is in such good shape?"

Eric, slightly embarrassed, explained, "Well, I always wanted to keep it ready for a potential buyer. I knew no one would want to buy a pile of junk, so I made time for regular upkeep. A few months ago, I even took out a loan to buy a Gnome rotary engine production line, giving us the capability to manufacture Avro planes. The downside is that I've had no home since then…"

Charles didn't understand. "Uncle Eric, you knew there wasn't a market for planes, so why keep investing?"

Eric chuckled bitterly. "Lieutenant, have you ever understood the gambler's mindset? They always hope the next bet will pay off, so they keep putting more money down. I guess I'm one of them, only my gamble was the factory, not the casino."

Charles nodded. Some businessmen indeed had this mindset, reasoning that they were already so deep in debt that one more gamble couldn't hurt. And who knew? They might finally turn things around.

Eric had been betting on the Avro, knowing it was an excellent, affordable aircraft—but ultimately, he lost that gamble due to a lack of demand. If he had held on for just another ten or twenty days—no more than a month—the dawn of aviation demand would have arrived. He'd have been set for life, flooded with orders.

But now, just before the market turned, he was about to sell off his life's work for 400,000 francs. Even so, he felt nothing but gratitude toward Charles.

Charles felt a twinge of guilt. But he quickly pushed it aside—he knew the future and was using that knowledge to seize the opportunity.

Eric didn't know that he would have to sell the factory or have it repossessed by the bank sooner or later.

Just then, a man in a suit and tie carrying a black briefcase appeared at the door. He knocked and looked directly at Eric. "Mr. Eric? I'm with the Bank of France."

Eric looked puzzled. "Come to repossess the factory? I'll have money to repay you very soon!"

"No," the man replied, glancing at Deyoka and Charles as he approached. Taking a document from his briefcase, he handed it to Eric. "We're interested in buying your factory. Would you be open to that?"

Eric took the document, flipping through it before looking up in shock. "450,000 francs? You're offering 450,000 francs for my factory?"

"Yes," the man replied. "After deducting your 350,000-franc debt to the bank, you'd still walk away with 100,000 francs."

As he spoke, the banker produced a contract from his jacket, along with a pen, and offered them to Eric. "If this is agreeable, please sign here."

Charles suddenly realized why Gallieni had insisted on discussing this matter in private earlier.

To capitalists, the military's needs were never truly a secret—even if it meant overhearing things in headquarters. Capitalists would grasp any military need immediately, recognizing it as a business opportunity.

And now, the capitalists knew the military needed aircraft—a lot of them. They also knew Charles was looking to acquire Eric's factory for 400,000 francs, so they'd shown up with an offer of 450,000 to try to outbid him.

Deyoka stared at Charles, unsure. Should they counter with a higher bid?

Charles shook his head slightly; he knew that if they raised the offer, the bank would just counter again. They couldn't outbid the Bank of France.

Charles nodded to Eric, saying, "This makes sense, Uncle Eric! You should accept the offer. Congratulations!"

With that, Charles began to leave with Deyoka.

But before they reached the door, Eric called out, "Hold on, kid!"

Eric handed the contract and documents back to the banker. "Sorry, sir, but you're too late. The factory's already sold. If you want to buy it, you'll have to deal with its new owner."

With that, he winked at Charles.

The banker was baffled. He had arrived with an offer of 50,000 francs more and yet had been turned down.

"Is it the price?" the banker asked, puzzled. "We could discuss adjusting it…"

"No, sir," Eric interrupted. "As I said, the factory is already sold."

Later, Eric explained to Charles, "This wasn't for you, kid. I just didn't want to do business with the capitalists—they're always up to something shady!"

But Charles knew Eric had done it because he valued his promise. He felt indebted to Charles for helping him in his most challenging moments and couldn't bring himself to betray him at the last minute.

It was no wonder he wasn't a successful businessman.

Yet Charles, as a capitalist himself, recognized that he needed partners like Eric—honest, loyal, and reliable.

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