Chapter 11 – The Hexingen Consortium
The Danish government's troubles had no effect on Ernst; in fact, Denmark's misery was the source of Ernst's current joy. The Second Schleswig War directly boosted the development of the Hexingen Development Company, causing its business to soar. As the conflict expanded, the coalition forces placed even greater importance on logistics, and with their continued offensives, daily consumption of supplies rose sharply. Demand for tobacco—a necessity in wartime—kept growing, and the Hexingen Tobacco Company took the opportunity to ramp up production.
Their new production lines were already in place, and orders poured in one after another. Civilian orders were temporarily set aside. The leadership of the Hexingen Company was full of energy, with the boss's grand vision laid out clearly. Once the war ended, the Hexingen Company would reach new heights. At that point, with abundant capital, they would ramp up expansion into other fields. New factories and facilities would spring up, bringing new jobs as well. Anyone capable and talented might be promoted to head one of the new departments. Inspired by this grand blueprint, everyone worked even harder, hoping to catch the boss's eye.
Ordinary workers were also enthusiastic, and productivity rose markedly. The ample orders, combined with the rollout of new machinery, meant considerable overtime pay. Nothing motivates workers like higher wages. Moreover, the Hexingen factories required relatively little physical labor—what they needed was mastery of machinery and meticulous work procedures. Compared to the heavy-labor sectors of the time, many people dreamed of working in Ernst's factories.
In nineteenth-century Germany, the population was huge and still growing. Even as industrialization advanced, local job creation could not keep pace with the surplus of workers. Over the years, German nobles had served as fresh blood for various royal families, while the people of the German regions formed a major part of world migration. Every year, large numbers of Germans moved abroad in search of a better life, especially in North and South America, where German immigrants became a significant presence.
Back in Germany, numerous industrial cities sprang up, fueled by a massive workforce and widespread basic education—driving the region's industrial expansion. Despite Germany still being divided by historical factors, its economy was already overtaking France in some respects. France's domestic growth was limited by population and resources, but it had colonies and access to world markets second only to Britain, satisfying its need for raw materials and trade. The still-fragmented German states had not yet greatly threatened France's position. Yet Prussia's progress in recent years had not escaped France's notice, though the French government assumed Germany's unification was still far off.
Meanwhile, France's messy politics hampered the nation; royalists and republicans struggled fiercely, fighting among themselves. Though Napoleon III was active, he was constrained on all sides—having to watch out for Bourbon and Orléans plots and to keep republican forces from causing trouble. As a cradle of revolution, France had other political groups that might stir up protests, which could be exploited by opportunists and escalate into chaos. Napoleon III himself, having gained power largely through Emperor Napoleon's legacy, found his authority naturally limited, making it difficult to unify France's full strength for global competition. Even so, thanks to its inherited political legacy and solid foundation, France still ranked second among the great powers.
In contrast, the German lands remained fragmented, and the independence of each state slowed economic growth. Yet in the modern era, German nationalism had surged. People of vision across the German territories were pushing for unification, working toward a shared goal. Though there was debate over whether to form "Greater Germany" or "Lesser Germany," the unification process kept advancing. Markets, transport, and resources converged quickly, and nobles and capitalists with common interests promoted development in hopes of creating a unified Germany that could compete for global interests. Ernst was a beneficiary of these larger currents. Whether or not a powerful homeland could truly protect him was uncertain, but it beat having no roots at all.
Being born into Germany's top nobility meant that if Germany unified, Ernst's noble status would rise as the empire formed. For now, however, he had more immediate concerns. With his businesses growing, how could he manage his resources effectively? To secure both present and future markets and maintain tighter control of his companies, Ernst planned to establish a new commercial management center to oversee his expanding operations.
Today, the Hexingen Development Company already showed signs of becoming a major enterprise. As its household-goods factories developed and improved, many new product categories emerged. In terms of basic consumer goods, the Hexingen Development Company had created a "three-horse team" that drove the entire operating system. Thanks to the war, the company quickly recouped its investments, and after making a profit, they rapidly built more factories. The commercial outlets and partners established earlier had grown into a mature network, spreading outward from the German lands.
Though the Hexingen Development Company faced some resistance from traditional crafts, no competitor had produced items with comparable cost-effectiveness in these emerging product niches. This allowed the Hexingen Development Company to quickly secure its foothold in the realm of consumer goods, expanding its product range and gaining real influence in that sector—solidly representing advanced production methods.
Ernst now wanted to spin off the maturing consumer-goods division into its own subsidiary. Tobacco was a highly profitable industry, so the Hexingen Tobacco Company would also be separated out as an independent unit. Along with the newly created research center, these three major divisions formed the "three-horse team" of the Hexingen Development Company. On top of them, Ernst would establish a central strategic decision-making body, turning it into the core of all his businesses.
After extensive deliberation, Ernst drafted a plan along these lines:
First, create the Hexingen Development Bank, through sole ownership and controlling stakes, as the heart of a Hexingen consortium centered on the German region.
Second, launch a standalone Hexingen Tobacco Corporation, focusing on Germany as its base market and adding sub-brands for other areas.
Third, form a new Hexingen Consumer Goods Corporation to oversee all existing factories except those in the tobacco industry.
Fourth, establish the Hexingen Science and Technology Research Center to guide product development in other departments and explore new markets.
From this would emerge the basic structure of a Hexingen consortium, with the Hexingen Development Bank at its core. Beyond managing its current enterprises, the bank would invest in and acquire stakes in emerging German sectors—industries of the future such as electronics, internal combustion engines, information (wireless telegraphy, telephones, etc.)—the vital fields of the upcoming Second Industrial Revolution.
At that moment, the Second Industrial Revolution was on the verge of taking off. Many scientific discoveries and engineering ideas still lay in laboratories or in the minds of scientists and engineers, not yet unleashed. Ernst wanted to bet on these nascent technologies before they fully blossomed.
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