Chapter 296: The Age of Electricity
Chapter 296: The Age of Electricity
Once seated, Cadreus wasted no time in inquiring about the cost of lighting renovations and expressed his interest in securing a loan from Mr. Borwann.
"Ah, you mean these electric lights? I do have some knowledge about them," Mr. Borwann responded.
Cadreus was aware that the banker Borwann had early connections with the military-industrial complex. It was said that back when Joseph was still running the Naval Research Institute on the other side of Toulon, dealing with various smuggling vessels, they already had business dealings, even though Mr. Borwann's business was somewhat limited at that time. Still, he made a fair amount of money through his transactions with Joseph. Later, when the military-industrial complex was established, Mr. Borwann was one of the earliest businessmen to join, and it was said that he had significant involvement in the procurement of supplies and financial transactions behind the scenes when General Bonaparte - well, we're talking about the older Iron Wall Bonaparte - was tasked with the defense of Valmy during dire times.
General Bonaparte later withdrew from the military and devoted himself entirely to becoming a scientist. So much so that now, unless you subscribed to specialized journals like "Nature," you would rarely come across his name. However, it was hinted by some high-status individuals that both President Bonaparte and Minister Bonaparte had a deep respect for their older brother.
Now, these electric lights, without a doubt, must be the product of President Bonaparte's laboratory, probably manufactured by Bonaparte General Electric. Mr. Borwann was said to hold shares in Bonaparte General Electric, so how could he not be aware of this?
"These electric lights, in terms of pricing, actually have various grades. Well, Mr. Cadreus, you may not be involved in the business of everyday products, but you should know that any product comes in many different grades. For example, wine has fine wineries and factory wines; and within fine wineries, there are distinctions between classified growth wineries, star wineries, and regional villages. Classified growth wineries further divide into grand cru, premier cru, and deuxième cru. Mr. Cadreus, which category do you think has the highest profit margin among these wines? And which one has the highest total profit?"
"The highest profit margin should be the grand cru wineries, right? But when it comes to total profit, it should be the factory wines," Cadreus replied.
"Exactly, Mr. Cadreus. Any product, the luxury grades will be very expensive with astonishing profit margins, while the mass-market grades will be quite affordable. Just like a bottle of Lafite Rothschild wine, it's worth more than a factory wine like a hansom cab. But in terms of consumption, they're both consumable. Even someone like me, a nouveau riche, can't tell the difference between them," Mr. Borwann chuckled.
"Electric lights are the same. You see, places like the 'Moulin Rouge,' they use lights similar to their wine. While they can't guarantee that every bottle is from a grand cru winery, even the lowest-grade wine they use is from a star winery. Of course, their prices are exorbitant. They can sell star winery wine at grand cru prices. Well, electric lights are no different. They use luxury-grade electric lights, so the prices are naturally staggering."
"For example, the large crystal chandelier above us, with a six-meter diameter, uses tens of thousands of crystals alone. The price is… Oh, Mr. Cadreus, I believe you wouldn't be interested in this chandelier. The smaller crystal chandelier beside it, with an 80-centimeter diameter, might be more to your liking. It's roughly two to three thousand francs. Of course, if you're willing to lower your standards and switch to glass instead of crystal, and change the design, well, it might cost tens of francs, or even just a dozen francs.""How big is the difference between this one and the larger chandelier?" Cadreus asked hastily.
"Is the difference between Lafite Rothschild wine and factory wine significant?" Mr. Borwann countered.
Cadreus was at a loss for words, and Mr. Borwann continued, "Actually, for a typical nightclub, the light fixture itself might not be the most significant expense. The biggest recurring expense might be electricity. Because electricity costs money."
"In that case, how is the electricity cost calculated?" Cadreus asked quickly.
"To the best of my knowledge," Mr. Borwann said, "Bonaparte General Electric, to rapidly expand its customer base, set relatively low electricity rates. If it's just a household with a couple of lights, lit for a few hours a day, it wouldn't cost much money, something an average working-class family could afford. Only this way can electricity quickly gain widespread use. But they have designed something called a tiered pricing system. They set electricity rates so that any household's consumption exceeding a certain limit would increase at a certain multiple, just like the story of placing grains of rice on a chessboard. So, if you truly want to make your nightclub resemble the 'Moulin Rouge,' I suspect the electricity cost could become a considerable expense."
"They're shifting the cost onto us!" Cadreus exclaimed. "I guess the simplest electric lights should be very affordable, right?"
Cadreus' perspective was undeniably valid. The electrification of Paris was a massive undertaking and such projects always incurred significant costs. To quickly introduce electricity to every household, both the cost of electricity and electrical appliances had to be kept low, making it accessible to the masses. However, Bonaparte General Electric wasn't keen on financing this widespread expansion from their own pocket. Instead, they implemented a tiered pricing system to shift the burden onto heavy electricity consumers.
"The cheapest electric light?" Borwann smiled. "I've installed one in my study at home, and it's indeed very affordable, costing just one franc."
"Mr. Borwann, you use the cheapest electric light?"
"Yes, just like I can't distinguish between Lafite and factory wine. For me, a light just needs to shine. A one-franc light can do that too. Besides, Mr. Cadreus, look up at that six-meter crystal chandelier. Can you discern the difference in refraction between crystal and glass? They all tell me that the light from this kind of chandelier is richer, more flavorful. Can you sense the difference between it and a glass light?"
"Mr. Borwann, I haven't even seen the simplest glass light yet," Cadreus chuckled. "But I think, maybe, not necessarily, I wouldn't be able to tell."
Cadreus believed he could easily differentiate between these two types of lights, just as he could effortlessly distinguish between Lafite and factory wine. However, he couldn't express such thoughts in front of Mr. Borwann.
"Of course, for people like us, many things aren't just about utility but also about aesthetics," Mr. Borwann continued. "For instance, the light fixture in my living room costs a whole ten thousand francs. Hahaha..."
"Mr. Borwann, do you know the specific electricity rate tiers?"
"I've heard some information, but I can't guarantee its complete accuracy..."
After a lengthy conversation, Cadreus and Borwann reached a tentative agreement on the loan. Cadreus was planning to emulate the "Moulin Rouge" using relatively inexpensive methods, a common practice in such businesses. Just like how the wines at the "Moulin Rouge" ranged from star wineries to factory wines.
As for the electricity bill, it was indeed a concern. However, considering that the "Moulin Rouge" was in high demand and had hiked its prices, Cadreus believed that after the renovation, there would be an increase in consumption levels. In fact, there was still room to raise prices at the "Moulin Rouge," where money was never a significant issue for its patrons. Upgrading the consumption could also provide them with a decent profit margin. So, Cadreus felt confident that he could make it work. Just:
"Alas, I used to wholeheartedly earn money for myself. In the future, it seems I'll be working hard to earn money for the bank and the power plant," after finalizing their intentions, Cadreus couldn't help but mutter these words to himself.
The lively and bustling night passed. Early the next morning, as soon as the citizens stepped outside, they were greeted by newspaper boys running and shouting on the streets.
And nearly all of their shouts were related to electric lights.
Andrei had just left his house, preparing to head to school when he saw a newspaper boy running by, shouting, "The Electric Age is here, and the 'Moulin Rouge' spectacle revealed! Get the 'Scientific Truth Gazette' to uncover the scientific truth for yourself!"
"Revolutionary lighting technology is born, and darkness is no more! The door to wealth is swinging open! Get the 'Paris Businessman' to discover the short-term and long-term economic impact of this technology."
"Beauty shines under the light. Hurry and get 'The Sun Gazette' for an explanation of the 'Moulin Rouge's' new model..."
The newspaper boy had only shouted a couple of times before a crowd of people surrounded him. Andrei quickly turned to his assistant, Vaska, and said, "Vaska, go quickly and grab a few newspapers!"
"Sir, which newspapers would you like?" Vaska asked.
"It doesn't matter; get all of them!" Andrei replied. "Hurry!"
Vaska dashed over, and with his massive size and strength, he pushed a few people aside, then returned a while later, carrying a bunch of newspapers.
"Sir, look, I bought one of each," Vaska handed the newspapers to Andrei.
Andrei had originally intended to say, "Get me 'Scientific Truth Gazette' first." But then he remembered that Vaska couldn't read French, so he took all the dozen or so newspapers and began to sort through them one by one.
"Hmm, 'The Sun Gazette'? Let's not read this for now..." Andrei was about to set 'The Sun Gazette' aside when he heard a voice saying, "Andrei, you've made progress; you're even reading 'The Sun Gazette' now. That's really great!"
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