Chapter 160: Promises Must Be Kept: Pacta sunt servanda (14)
This country is overflowing with cartels and monopolies.
"Will the capitalists and industrialists really follow this without resistance?"
"It's wartime. I believe our capitalists will be grateful to be alive."
"..."
If they don't listen when the country is at war, I don't think my mood will be very good.
Winter is ending and spring is coming soon.
Before the plump flesh that swelled in the warm weather shrinks.
It's time to cut open the goose's belly.
==
The Tsar's new decree was promulgated.
Unlike the empire's citizens' expectations that it would be a conscription order similar to the general mobilization order from two years ago due to wartime, the content seemed completely unrelated to war.
<Anti-Market Enterprise Utilization Law>
The content stated that industries designated as monopolies or cartels could be controlled, dissolved, and utilized by the state with court approval.
"Based on legal rationality, the state will judge price discrimination, tying arrangements, exclusive dealings, forced mergers, and director interlocking... tsk, so they want the same effect as antitrust law?"
"I don't think that's it? Rather than forced dissolution, it seems they want to legitimately use these entities for the state?"
"What, so they want to use companies as needed, like conscription?"
While previous decrees had all turned the empire upside down, this one seemed to have less impact on civilians than expected.
However, this was the position of the majority of imperial citizens who didn't own businesses.
"...It's telling us to choose. Either become an obedient dog, or scatter."
"Could this be about donations? Pressure to make war donations?"
"Could this be oppression for not cooperating with the war effort?"
For those who had long settled and stagnated throughout the empire's industries, this content was nothing less than a knife held to their throats.
"They're not trying to completely dissolve cartels. According to government announcements, forming cartels is the free will of enterprises."
"What do you mean it's not! Once you're deemed a cartel, you're inevitably under government surveillance and control!"
"It's the difference between making money easily or making it the hard way."
The government struck.
While it was the Tsar's decree, the fact that Kokovtsov's government had raised a club against the capitalists remained unchanged.
'Damn it, why did they suddenly hit us?'
'If they hit us, there must be a reason?' Experience more tales on My Virtual Library Empire
'So how do we make it hurt less?!'
Then this must be an action demanding something.
Just as shepherds have reasons for grazing sheep or confining them to pastures, Kokovtsov's cabinet must have something they want to achieve by mobilizing even an imperial decree.
It didn't take long for the answer to come down to the confused capitalists.
[Draft of Imperial Fleet Law]
[Railways are not enough. The empire needs roads!]
[What is industry for military power enhancement?]
The empire's monopolies and cartels had been focused on light industry.
This was natural. Just as teeth must exist for cavities to form, cartels emerged in light industry because it was the only area where they could establish early market position and raise entry barriers.
"Either stay in current industry. Or try something new."
Prodamet, which monopolized the metal industry, immediately understood what the Tsar's warning meant.
The Tsar wants the empire's development.
Whether this was instigated by that Kokovtsov or part of the Tsar's unknowable grand plan, the government is demanding that companies in monopolistic positions take on new challenges.
"Business is plenty smooth now, there's no reason to do anything more!"
"If we do that, officials will sit on the board and twist the company's direction..."
Just then, policy funds that had never been released since the war began were released toward heavy industry.
"...If we fail, the company will be shaken."
"T-this is a field we've never tried! We have absolutely no connection to it!"
"Even with business orders it's uncertain, and the government's promise to become a customer is years away!"
While cries full of anxiety flowed from within each company.
"Right now. Go right now and meet with industry ministry officials first. Then secure policy funds."
There are always quick-witted people everywhere.
The Morozov company, currently managed by Savva Morozov, grandson of the dynasty founder Savva V. Morozov who built the Morozov dynasty from serf to capital, and son of Savva Morozov, was an example.
'Kokovtsov, if a deficit government is releasing funds during wartime, how much do they want to grow this sector.'
Savva Morozov, now head of the empire's fourth wealthiest Morozov family, smelled both money and blood.
His predecessors had experience being summoned to the imperial palace and barely getting their names removed from the Tsar's purge to survive, and he as their son never forgot the lesson his father gained at the risk of his life.
Going against the decree means certain death.
The current Tsar is pro-capital. This is evident just from capitalists surviving the purge period.
Allowing cartels and monopolies during economic development is also evidence of this.
Nevertheless, if he gave room to break cartels and monopolies.
'He must be unsatisfied with the empire's current state and looking at something bigger.'
So Morozov's role here is one thing.
Invest all money earned from cartels into new business.
'...Those who resist without knowing their place will die quite a bit.'
Not bad. No, rather good.
Because the Morozov family will grow further by feeding on the corpses of those dead ones.
I wonder who will die this time.
The salt cartel full of complaints after the government implemented the rationing system?
Or the Black Sea cartel that went wild after the conquest of Constantinople last year?
Whoever it is, it's fine. Those without sense will die and those with sense will succeed.
"Lower the military uniform supply price further. No, let's go in by giving up profits through textile consolidation. So only we can supply."
"Understood."
While there were capitalists like Morozov who showed reactions matching the Tsar's intentions without forgetting the past.
"Ugh, oh Russia! Country of my mother!"
"Wartime investment is true patriotism!"
"Let's make products following policy loans too! Machine industry? Steel? Automobiles? Petrochemicals? Shipbuilding? Whatever it is, we have to make something first!"
There were also those like the Jewish Demidovs who followed closely without even questioning or investigating.
On March 6th, when France began continually concentrating forces on the Western Front by sending 20 divisions to Verdun.
"Then the industrial site..."
"Recruiting investors..."
Russia was focused on matters completely unrelated to the war.