A Deal with the Royal Shipyard
"Father, there is no need to worry about money. With the profitability of the Deutsche Welfare Lottery Company, supporting the construction of a battleship will not be an issue. The main problem now is finding a shipyard that is willing to undertake the construction of my design. The battleship. The guys from the Naval Technical Committee will definitely obstruct it," Qin Tian said, a bitter expression on his face.
The Deutsche Welfare Lottery Company could bring in at least 200 million marks or more in profit every year. The cost of building a battleship was only 40 to 50 million marks. For someone as wealthy and powerful as Qin Tian, it was a mere trifle. However, finding a shipyard capable of helping him turn his battleship design into a reality was another matter entirely.
"This is indeed a problem. Even I don't have much influence over it," William II replied, his brow furrowed in thought.
Germany's shipyards capable of constructing battleships were few, and all of them were either privately owned or tightly controlled by the state. The Naval Shipyard in Kiel, the Germania Shipyard, the Royal Shipyard in Wilhelmshaven, the Weser Shipyard in Bremen, the Vulcan Shipyard in Hamburg, the Blom-Verth Shipyard, and Danzig's Shuoxiao Shipyard were the only major players. Of these, only the Royal Shipyard in Wilhelmshaven and the Naval Shipyard were under direct control of the government, while the others were privately owned. Even with his authority, William II could not simply force these private shipyards to comply with Qin Tian's request.
"Father, what if I build a shipyard myself? Can I count on your support—at least in terms of technicians and managers? After all, I have no experience in this field," Qin Tian thought for a moment, before speaking again.
If those shipyards wouldn't cooperate, perhaps he could take matters into his own hands. It would be better to build his own shipyard than wait for others to act, especially since he had more than enough capital thanks to the Deutsche Welfare Lottery Company.
"Build a shipyard yourself? It's not impossible. But I have a better idea. Instead of starting from scratch, why not acquire an existing shipyard? That way, at least you'll have a foundation to build upon," William II suggested, his tone shifting from concern to the practicality of the situation.
"Acquiring a shipyard?" Qin Tian considered this for a moment. It was definitely better than starting a new one from the ground up. "Which shipyard would be suitable?"
William II smiled. "The Royal Shipyard of the royal family can be transferred to you!"
"Is it the Royal Shipyard in Wilhelmshaven?" Qin Tian asked, his curiosity piqued. "That's not bad, but I'm afraid I don't have enough funds for something like that at the moment. I'll need to borrow money, perhaps from you at the bank's interest rate."
The Royal Shipyard in Wilhelmshaven was one of Germany's premier shipyards, capable of building all kinds of ships, including battleships. However, acquiring such a large operation would require a significant amount of capital—at least two to three billion marks. While Qin Tian's Deutsche Welfare Lottery Company was profitable, its earnings were future revenues, not available liquid capital. He would need to wait a year or two before amassing enough funds to make the purchase outright.
William II chuckled softly, an awkward look crossing his face. "Oscar, I believe you've misunderstood. I wasn't referring to the Royal Shipyard in Wilhelmshaven; I'm talking about the Royal Shipyard in Danzig."
"Huh? The Royal Shipyard in Danzig?" Qin Tian was taken aback, surprised by this new revelation.
The Royal Shipyard in Danzig had a long history, but it was still considered a medium-sized operation. The shipyard specialized in building smaller and medium-sized warships but lacked the facilities or expertise to construct a battleship. More troubling still, the Royal Shipyard was in a constant state of financial struggle, operating at a loss year after year. It was not a place that inspired confidence in its ability to deliver on ambitious projects.
"Father, the Royal Shipyard in Danzig doesn't have the capability to build battleships at all!" Qin Tian exclaimed, his voice filled with disbelief.
William II, however, seemed undeterred. "That's easy to fix. Once you acquire it, you can expand the facilities, recruit more skilled workers, and I can arrange for engineers to be transferred from the Naval Shipyard and other sources to improve the shipyard's capacity. There's no problem in making it work."
Qin Tian was silent for a moment, considering his options. It was clear that his father was eager to offload the Royal Shipyard, which was hemorrhaging money, onto his shoulders. But could he really trust William II's assurances? The man was his father, after all, and surely he wouldn't deceive him.
"Oscar, Germany's economy is growing rapidly, and the profits of all shipyards are quite good. If you want to acquire another shipyard, it will not be so easy, and you'll have to spend even more money. Besides, you won't find anyone willing to extend you credit like I will. Think carefully—this is an opportunity you won't get again," William II urged, his voice taking on a more persuasive tone.
The Royal Shipyard in Danzig had become a non-performing asset for the royal family. While its annual losses were not catastrophic, they were enough to give William II headaches. Selling it to Qin Tian, who had a strong track record of making profitable ventures, would relieve him of that burden. Moreover, the battleships constructed at the Royal Shipyard would eventually serve the German Navy, which was in line with the emperor's goals for national defense.
Qin Tian was torn. He had initially hoped for a shipyard that had the facilities and expertise to build large warships, but the Royal Shipyard in Danzig seemed like little more than a dilapidated shell. However, his father's offer was generous—there was no denying that.
After a long moment of consideration, Qin Tian decided to go through with the acquisition. His father had made the offer, and it was clear that there were political and strategic advantages to taking control of the shipyard. He was also confident in his ability to turn it around with the right investments and personnel.
"All right, Father. I'll take over the Royal Shipyard in Danzig. But how much are you asking for it?" Qin Tian asked, prepared to haggle.
"Fifty million marks, not a penny less," William II replied, his tone firm but not unkind.
"Fifty million marks?" Qin Tian was taken aback. "I don't have that much money right now. All I have on hand is about 10 million marks."
William II waved his hand dismissively. "That's not a problem. You can pay in installments. Ten million marks per installment, and with the earnings from the Deutsche Welfare Lottery, you'll have no trouble paying it off."
Qin Tian, though reluctant to take on such a burden, knew that this deal was likely too good to pass up. The Royal Shipyard, despite its shortcomings, could still be an asset, and the political leverage it provided was worth the price. Besides, William II seemed confident in his ability to make the payments work.
"Very well, Father. I'll go ahead with the acquisition," Qin Tian said, his voice tinged with resignation. "But I'll make sure to negotiate a few more favorable terms in the process."
William II smiled. "I'm sure you will, Oscar. You've always been clever with these things."