Chapter 1076: Jumping into the Pit
Boulton waved his hand, dismissed the purchasing agent, and sat back with a face as dark as a soot-stained steam engine funnel.
This was already the fourth agent to return from France, and like the others, he had come back empty-handed. It didn't matter that they had offered up to thirty times the market price; the answer remained the same.
"Those damned Frenchmen," Boulton growled, grabbing the expensive gold-inlaid quill on his desk and snapping it in two. "They're absolutely insane!"
To this day, he still firmly believed Frank's logic of "why wouldn't they want to make money?" Thus, the only explanation he could find for the French companies' refusal was sheer madness.
The sound of his assistant knocking on the door interrupted his outburst. "Mr. General Manager, you are expected at the Investment Fund Management Committee for questioning this afternoon. We have less than an hour."
Boulton felt a massive headache coming on, but he had no choice but to stand up and begin changing into his formal attire.
After his company had received that eight hundred thousand pound investment, the Government Investment Fund had become their largest shareholder with a thirty-eight percent stake. Simultaneously, they were the primary creditor, holding three hundred and seventy thousand pounds of the company's debt.
While the fund did not interfere in daily operations, they held the right to inquire about any of the company's affairs. With such a massive crisis unfolding, it was impossible for them to remain indifferent.
At two o'clock in the afternoon.
Boulton nodded helplessly.
Another member of the committee immediately pressed further. "And how long will it take for you to manufacture these pressure gauges?"
"That..." Boulton lowered his head. "Approximately three months or so."
In reality, based on what he had learned from Watt, it was impossible to complete the development of the pressure gauges in just three months.
In Saundell's design, the pressure gauge was linked to the relief valve. Once the pressure threshold was exceeded, it would automatically release steam, which drastically increased the boiler's safety.
However, this also meant they couldn't simply take the company's existing gauges and modify them for higher pressure, as that would cause the relief valves to fail as well.
The pressure gauge and the relief valve were the two most critical components of the boiler. For Watt to replace them both was almost equivalent to redesigning the entire boiler structure.
How could such a task be finished in three months? Even half a year wouldn't be enough. Furthermore, Watt had to balance this with the development of the new 180 horsepower model; there was no telling how long the modifications to the old model would be delayed.
Malik's brow furrowed deeply. "So, you're saying the company will be unable to deliver a single steam engine for at least two months?"
"Yes, that is the case."
Malik flipped through the internal documents of the Boulton-Watt Company, pointing at several lines with a grim expression. "Eighty-six percent of your products are sold through pre-orders. According to the sales agreements, a breach of contract requires a penalty of ten times the purchase price?"
Boulton was breaking out in a cold sweat, but he could only nod. "Indeed, that is correct."
"Good God!" Malik looked up at the ceiling. The transaction volume for these two months was twenty-four high-pressure steam engines, valued at fourteen thousand pounds. If they all went into default, the compensation would be a staggering one hundred and forty thousand pounds!
He could already imagine the sheer devastation the Boulton-Watt Company's stock price would suffer once this news went public.
In just over two weeks, the Investment Fund had already seen its holdings shrink by one hundred and ninety thousand pounds due to the plummeting stock price. If it continued to drop, it would be nothing short of an apocalypse for them.
Two hours later, Boulton left the committee's office with a deathly pale face.
As soon as his figure disappeared beyond the door, Malik turned to the official beside him. "Bryan, draft a report to Parliament immediately. We need to withdraw our investment from Boulton-Watt."
Malik knew all too well that with the fund's four-million-pound scale, a loss of one hundred and ninety thousand could be blamed on a few subordinates. But if the loss grew any larger, he would likely be the one losing his job.
At 10 Downing Street.
Admiral Jervis, the First Lord of the Admiralty, glanced at the Investment Fund's report on the desk and spoke to Lord Grenville. "Prime Minister, you know that steam warships are the key to us reclaiming control of the Mediterranean."
"Furthermore, the third-rate steam battleships currently under design will grant the Royal Navy a massive advantage at sea unlike anything we have ever seen."
"And all these ships depend on the engines produced by the Boulton-Watt Company."
"You must block the Investment Fund's withdrawal motion. That would drive the company into immediate bankruptcy!"
Sir Middleton, the Comptroller of the Navy Board, immediately added, "The Chatham Dockyard has orders for hundreds of steam paddleboats every year. Mines and textile mills across the country also rely on the supply of steam engines."
"If we don't want to be forced into importing steam engines from France in the future, we must save the Boulton-Watt Company."
The British Prime Minister looked at the glaring words 'Loss of 190,000 pounds' and 'unlikely to stop the decline in the short term' on Malik's report. He shook his head slightly. "You are right, but there is a high probability that Parliament will pass this motion."
He knew that more than half of the Members of Parliament had personally invested in the Government Investment Fund. They would never sit idly by and watch their own investments continue to dwindle.
Admiral Jervis grew anxious, his voice rising. "Doing this will ruin the future of the Royal Navy!"
He and Middleton were certainly concerned for the British Navy, but the massive funding for building steam warships was also a vital channel for them and their subordinate officers to line their pockets. They couldn't allow it to end just because a steam engine company went under.
Grenville said helplessly, "I will speak with Sir Malik."
"No, it would be safest if you personally called upon the MPs to reject the motion."
"I cannot interfere with the operations of Parliament."
That would mean getting between the MPs and their wallets. Grenville was certainly unwilling to do something that would offend so many people.
While the two sides were locked in disagreement, William Pitt Junior suddenly spoke up. "Gentlemen, at the current stock price, the Investment Fund's shares in Boulton-Watt are only worth about two hundred and twenty thousand pounds."
"Considering the company still has a large amount of cash on hand, it would mean that an investment of less than five hundred thousand pounds could stabilize the company's situation."
"Therefore, I suggest that the government could provide the funds to take over the Boulton-Watt Company entirely."
"Good heavens!" Henry Petty, the Chancellor of the Exchequer, immediately objected. "The government treasury cannot possibly produce five hundred thousand pounds right now, Mr. Pitt."
Pitt replied in a low, firm voice, "Once we lose our naval advantage, we will lose fifty million, perhaps even five hundred million pounds."
"And we absolutely cannot afford to lose the technological race in steam engines. That involves the development of countless other industries."
"In fact, as soon as the Boulton-Watt Company resumes production—especially once the 180 horsepower engines go into mass production—this investment will turn a profit very quickly."
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