Poul who was in complete charge of the operation of the company while Jonathan was handling affairs in New York continued to churn out innovations and inventions that will get them ahead of the competition. In all lucrative industries, steel, oil, electricity, and technology, the company has been excelling in those fields, casting a huge shadow over its competitors who are struggling to keep up the pace.
Though not officially introduced to the public, Poul has been planning on releasing the automobile as soon as Carl Benz invented the first practical motorcar. It was a huge sensation to the whole of Europe upon its introduction and they knew that with improvements and increased efficiency and functionality, the automobile will replace horse-drawn carriages in the not-too-distant future. Poul was excited about the prospect of being one of the first companies to produce and market automobiles to the masses.
However, the introduction of automobiles would prove to be a challenge to the railway companies whose market shares plummeted when Henry Ford from his original world made his Ford Model T a commodity by making it affordable to the masses. How did he do it? It was simple, the assembly line. A technique that has been implemented in their factories, churning out hundreds of products in a day. Poul and his team knew that their competitors needed to innovate once again if they were to compete with this new paradigm shift in manufacturing.
In almost eight years, the industrialist duo has been diversifying their portfolio, expanding in new industries that they knew would be significant in the future. Electricity and oil for example were essential resources for the modern world so even if the market crash affected some of their other businesses, they were still able to remain profitable.
A market crash is the only threat to their company, which they believed would happen in five or ten years, that is what they are preparing for. The market in the late nineteenth century is simply unstable compared to the 21st century. There is no Federal Reserve System to regulate the money supply, and banks were not as regulated as they are today. Companies had to rely solely on their own resources and strategic planning to survive a market crash.
Poul has seen this in the history of the United States, and though not very popular, he still saw it on Youtube. It was the Panic of 1893, it was the result of the collapse of railroad overbuilding and subsequent bank failures, resulting in a nationwide economic depression.
The railroad has always been the dominant force in the market, transporting goods and people across the nation, basically making the economy of a country run. So if the railroad is so important, then how come overbuilding railroads lead to a depression? Well, overbuilding railroads means that there are too many railroads being constructed, beyond what the economy can support. This creates an oversupply of railroad services, causing the prices to drop. As prices drop, it becomes harder for railroads to make profits, which in turn affects their ability to pay back their loans and invest in new infrastructure. Eventually, the overbuilt railroads fail, and the banks that lent them money also fail. This leads to a chain reaction of bank failures and economic depression.
Though this has given them a profit boost from the railroad companies buying their air brakes and other steam locomotive devices, that doesn't mean it would keep up forever. There are still many railroads under construction across Avalonia, meaning the panic of 1893 could also happen in this world.
But what about the electric locomotive Jonathan is building in New York? Would that be also affected? Technically the electric locomotive wouldn't be affected in the same way as steam locomotives since it doesn't rely on coal or oil for fuel. Instead, it uses electricity, which can be generated from a variety of sources such as hydroelectric power plants or wind turbines. However, the economic depression resulting from the overbuilding of railroads could still have a ripple effect on the demand for transportation services and the ability of companies to invest in new technologies, including electric locomotives.
Still electric locomotives are in their infancy so nothing much to be worried about on that side.
Nevertheless, Poul wrote a comprehensive and highly detailed plan should there be a market crash in the near future. He stopped typing on the typewriter and took a deep breath.
"Oh, you are done, Poul?" Amelia walked forward, carrying a tray of confectionaries and coffee.
"Yes, I just finished. Thank you, Amelia," Poul said, taking a cup of coffee from the tray.
"Is everything alright? You look a bit worried," Amelia said, noticing the serious expression on Poul's face.
"Nothing really, I'm just thinking ahead, it should cause no problem. Anyways, have the men in the workshop finished what I asked for?" Poul asked.
"I was about to report that," Amelia cleared her throat and began. "The motorcycle, according to the engineers who are working on it, said that it is ready, are you going to pay them a visit?"
"Of course," Poul stood up from his desk, placing his coffee cup on the saucer. "I want to make sure that everything is in order before I take it for a test drive."
"You are going to drive it yourself again, Poul?" Amelia inquired.
"Of course, I'm the one who designed it so obviously I am the only one who can drive it. It's a bit easier compared to automobiles. Would you like to see me do it?"
"I have no idea what a motorcycle is, Poul so I won't let this opportunity pass by me," Amelia said, smiling.
"Then follow me to the workshop," Poul walked out of his office with Amelia following closely behind him.
Five minutes later, they arrived at the workshop the sound of metal clanging and machinery humming filled the air. Amelia gazed at the sleek-looking bike.
Amelia had never seen anything like it before. It was a beautiful machine, with a shiny metal frame that looked like it had been carefully crafted by a skilled artisan. The motorcycle had two large wheels, one in the front and one in the back, and a small seat perched between them. The seat was covered in leather, and there were handles on either side of it.
Poul approached the motorcycle and ran his hand along the smooth surface of the metal frame. "This is it," he said, a hint of pride in his voice.
"It has a gasoline engine with a capacity of 150cc," Poul said, pointing to the motor at the center of the bike. "It has a single-cylinder design and can generate up to 2.5 horsepower. The engine is air-cooled, which means it doesn't need a radiator like a car or a steam engine. It also has a chain drive that connects the engine to the rear wheel, which allows for a smoother ride."
Amelia could only hum along Poul's technical words as if feigning that she understood it when in reality, she doesn't.
"Is everything in order?"
"Yes, Mr. Nielsen," one of the engineers replied. "We've triple-checked everything, and it's good to go."
Poul nodded, then climbed onto the motorcycle, turned the key, and began to kick the kick starter. Within seconds, the engine roared to life, and he throttled it, causing the machine to emit an intimidating growl.
Poul hummed in satisfaction. "Okay let's do a brief test run."
Poul revved the engine, and the bike lurched forward, smoothly gliding across the concrete floor. Amelia watched in amazement as Poul navigated the motorcycle through the workshop, deftly maneuvering around the machines and tools.
He then returned to his starting position and climbed out of the motorcycle. "Okay, this is ready for the world's fair."
