Chapter 116: Chapter 55: The Era of Aviation
Who manufactured the first aircraft engine in the United States?
Who conducted the first officially observed flight in the United States?
Who established the world's earliest flight school?
Who was the first to pilot a homemade seaplane to achieve water takeoff and safe landing?
Who produced aircraft that pioneered ship-based takeoff and landing?
Who propelled the United States ahead in aviation industry, which was lagging behind Europe at the time?
Who was known as the "King of Seaplanes"?
If you flip through the history textbooks, you'll find that all these questions ultimately lead to one name — Glenn Hammond Curtiss.
After enjoying a few days in the coastal city life of Rio de Janeiro, Zhang Hainuo and his team received good news from the Royal Ironworks: after deliberation among directors and shareholders, they essentially agreed to accept their proposal for technological investment. Both parties would further negotiate to determine the specifics.
At the start of the meeting, Zhang Hainuo didn't rush to propose a price. Instead, guided by the experts, he requested an inspection of the current technological equipment and ore situation at the Royal Ironworks — improving steel quality had two paths: enhancing manufacturing processes and using high-quality ore. Which path was practical, or if both were necessary, depended on the specific circumstances here.
Considering the future cooperation, the Royal Ironworks conditionally agreed to their request. At this stage, Elton and Matthew, the two metallurgical experts from Weisel Shipyard, made significant contributions. Accompanied by the factory's technical staff, they spent four days studying the factory's technical equipment, semi-finished and finished products, as well as industrial raw materials, and later formulated a very detailed analysis report:
Among the iron sands and iron ores used by the Royal Ironworks, the best quality ones completely met the requirements for casting high-quality steel. Their current equipment for producing pig iron and crude steel was perfectly fine; they only needed to introduce a refining steel production line and equip corresponding technical personnel. Producing 5,000 tons of high-quality steel annually was not an issue.
The final analysis results provided a quantifiable basis for negotiations — Zhang Hainuo proposed that the funding for equipment upgrades would be provided by Schneider Shipyard, while also acquiring 30% of Royal Ironworks' shares. Schneider Shipyard would also be responsible for equipment purchase and transportation. Once high-quality steel suitable for ten-thousand-ton freighters was produced, Schneider Shipyard would purchase it at the agreed-upon price.
After some bargaining, the Royal Ironworks agreed to transfer 25% of its shares to Schneider Shipyard, in exchange for technical equipment worth no less than $300,000. Schneider Shipyard would also bear the expenses for accompanying technical services and hiring relevant experts. In return, after the technical upgrade was completed, all high-quality steel produced by the Royal Ironworks would be sold to Schneider Shipyard.
After signing the formal cooperation agreement, Zhang Hainuo and his team were eager to return to Salvador to announce this good news to everyone. Unfortunately, although Rio de Janeiro had an airline, there were only a few two-seat seaplanes for mail delivery and a hydrogen airship. The airplanes had limited passenger capacity, and even if they were willing to fly to Salvador, Zhang Hainuo dared not board — the shadow of the Hindenburg airship crash made every subsequent person hesitant to decide before boarding such aircraft.
After returning to Salvador by train, Zhang Hainuo discussed his idea of establishing an airline in Brazil with Hessen, Otto, and the others. Most people agreed, especially Fred, who said he could fully handle roles like pilot, instructor, and mechanical repairman.
Next, Zhang Hainuo sent a telegram to Barbas, asking if he was interested in a third transaction recently. The Jewish antique dealer quickly replied, stating that he could only raise up to one million dollars at the moment, and if the transaction amount exceeded this figure, he would have to try to obtain a loan from the bank.
A week later, the Swift brought back 20 crew members and their families from Germany, as well as the second batch of equipment provided by Weisel Shipyard and the second batch of construction personnel. All this had a very positive effect on the ongoing construction of Schneider Shipyard, and with these experts, Zhang Hainuo could safely set sail.
After arranging some affairs at the shipyard, Zhang Hainuo, along with Otto, Fred, and a small group of crew members, boarded the Swift. They would first go to New York to exchange the sunken ship coins for dollars and also inspect the development of the aviation industry there. If they could purchase suitable aircraft, that would be even better. Afterward, they would go to Europe to investigate and purchase steelmaking equipment. Although the United States also had steelmaking equipment of similar or even better technical levels, the recent dismantling and sale of equipment from major German factories by England and France would undoubtedly affect the prices of related equipment in the European market. It could be said that purchasing equipment in Europe in the 20s would be much cheaper than in the United States.
"Happy cooperation!"
"Happy cooperation!"
On one side, there were 989 gleaming gold coins; on the other, bundles of cash dollars. Both were the best symbols of wealth in this era, but they were not enough to make their owners dominant in strength compared to the financial tycoons on Wall Street or the industrial giants who monopolized various sectors. This was just trivial in comparison.
The shrewdness of Jewish merchants lay in their ability to demonstrate their integrity in appropriate ways — this time, Barbas voluntarily raised the price of gold coins by nearly ten percent. The reason was simple: the price of gold was continuing to rise, while the dollar was depreciating. More and more wealthy people were choosing to convert part of their deposits into precious metals or antiques. Just a few months ago, a discerning businessman in New York bought over 300 of Barbas's remaining sunken ship coins at once, and he still seemed unsatisfied.
Zhang Hainuo never asked Barbas about the selling price and the recipients of these gold coins, just as Barbas never inquired about the detailed origins and transportation routes of these gold coins. Both parties adhered to their respective fields and interests. The unspoken understanding and trust were the foundation of pleasant cooperation.
"Mr. Barbas, do you remember when I mentioned to you about investing in industry in the United States?"
After the gold coin transaction was completed, Zhang Hainuo and Barbas sat down to leisurely drink coffee.
The Jewish antique dealer still had that friendly expression, "Of course, I remember Mr. Linke said that it wasn't convenient financially at the time! I once promised that as long as Mr. Linke had a need, I would do my best to assist. I wonder if Mr. Linke now has a specific investment project in mind or is planning to entrust it entirely to the Chamber of Commerce?"
Zhang Hainuo casually stirred his coffee with a small silver spoon, "I want to invest in the coffee processing industry in the United States! It's just that I've been busy with other business deals lately, so I'm overwhelmed. I wonder if Mr. Barbas can help me with this?"
"Investment in the coffee processing industry... Although I've never ventured into it myself, I have made friends in the circle who operate in this area. I wonder how much capital Mr. Linke plans to invest?"
In terms of investment, Barbas appeared very experienced.
Zhang Hainuo didn't set the plan in stone, "The investment scale has not been determined yet, it depends on the situation in the United States! If the right opportunity arises, investing a million dollars is also possible. If there is no suitable target, hehe, then this intention might just remain an intention after all!"
"It is indeed wise to consider all aspects before making an investment!" Barbas lightly complimented. However, he cautiously reminded, "But, if the price doesn't rise enough, taking into account the cost of coffee beans, labor costs, and various taxes, the profit margin may not exceed ten percent. The returns might not even be as good as trading coffee beans on the New York futures market!"
"But futures trading involves considerable risks, doesn't it?"
Although he said so, Zhang Hainuo knew that before 1929, these so-called risky futures and stocks were not only profitable but extremely profitable in the American business community. But to engage in this line of work, either one had to reside in New York or find a suitable agent. At least for now, Zhang Hainuo didn't have either. Moreover, the real "bubble economy" would not arrive until 1923 or 1924.
Barbas did not continue the topic of futures trading but instead continued on the topic of investing in the coffee processing industry:
"If Mr. Linke plans to directly operate a coffee processing plant, the profit or loss will depend on Mr. Linke's expertise in this field! Speaking of operations, I have a friend who is not only good at management but also an old hand at expanding markets! It's just a pity that he chose the wrong field. He used to manage oil early on, but he couldn't stand the price war with Standard Oil! Later, he entered finance but suffered a devastating defeat in the banking crisis of '07. Now, this fellow is quite knowledgeable and makes a living as a business consultant!"
Zhang Hainuo was not surprised by this. Rockefeller's early business strategies were undoubtedly ruthless — "ruthlessly eliminating competitors, using any means necessary for this purpose." Forced acquisitions, price wars, and even violent destruction, in front of such opponents, even skilled businessmen would find it difficult to continue. As for the financial industry, it was also dominated by the oligarchs. If others wanted to get a piece of the pie, it would depend on their mood!
For this unlucky fellow, Zhang Hainuo didn't have much sympathy either. The business world was like a battlefield, and fierce competition always favored the victor. However, he still told Barbas that if there was an opportunity, he could invite this guy to meet and see if there was a chance for cooperation.
Barbas readily agreed.
Thinking of another purpose of this trip, Zhang Hainuo tried to ask, "I wonder if Mr. Barbas is familiar with the aviation industry. I intend to open a small airline in Brazil and plan to purchase several planes from the United States!"
This time, Barbas smiled and said he wasn't the "all-around champion" in the business field. He almost knew nothing about the aviation industry, but he could still introduce some relevant individuals to Zhang Hainuo in this regard.
"Oh?" Zhang Hainuo thought, could it be the famous Wright brothers or the King of Seaplanes, Curtiss? If it was indeed them, he really had to admire this Jewish antique dealer's powerful connections.
"This person's name is Caleb, also of German-Jewish descent. He graduated from Harvard Business School a few years ago and now serves as a department head at Curtiss Aircraft Company!"
Curtiss Aircraft Company, the predecessor of the famous Curtiss-Wright Aircraft Company during World War II, was not unfamiliar to Zhang Hainuo, a World War II enthusiast. Its most famous work was the symbol of Allied air superiority — the P-51 Mustang fighter!
As for Harvard Business School, that name carried a lot of weight in Zhang Hainuo's era. With Harvard's reputation and strength, things should be going well for Caleb. Moreover, being of German descent, communication should be easier for him.
Taking these two factors into account, Zhang Hainuo immediately expressed his desire to meet Barbass's friend as soon as possible!
"It's simple!" Barbass chuckled. "This young man got married just two years ago and now resides in Buffalo, where the headquarters and manufacturing base of Curtis Aircraft Company are located. It's just a train ride of a dozen hours or so from New York! If Mr. Link is willing, we can leave today!"
So, it was the future son-in-law of this Jewish antique dealer. Zhang Hainuo couldn't help but admire the old man's keen eye—another Jewish person with a prestigious education from Harvard Business School. The future seemed limitless for him.
Glancing at his watch, it was now 11 o'clock in the morning. Zhang Hainuo suggested, "Alright, Mr. Barbass, I'll go back to the ship and make arrangements. We can depart in the afternoon. How does that sound?"
"Good. I'll send someone to book the tickets!" Barbass agreed. "Once the departure time is confirmed, I'll inform you from the dock!"
After returning to the ship, Zhang Hainuo and Otto discussed the matter. Otto would lead the remaining crew members to "guard" the Speedy, while Zhang Hainuo himself, along with Fred the professional pilot, would accompany Barbass to Curtis Company.
In 1920, traveling by train and ship was the most common and convenient means of transportation. Although Barbass had a Ford car, its comfort couldn't compare to the first-class cabins of a train, and besides, car engines weren't as reliable back then. Driving several hundred kilometers at once might lead to unexpected breakdowns.
The next morning, Zhang Hainuo and his party arrived in Buffalo, also known as the "City of Buffalo," not because it was abundant with actual buffaloes, but because "buffalo" was originally French for "water buffalo." It used to be a fur trading station established by French fur traders. With the opening of the Erie Canal in 1825, Buffalo gradually prospered. Now, this beautiful lakeside city was not only an important commercial port for the U.S. and Canada trade but also the aircraft manufacturing center of Curtis Company. The H-type seaplanes and JN-4 trainers widely used by the U.S. military during World War I took off into the sky from here.
Upon arrival in Buffalo, Barbass took Zhang Hainuo and their party to his daughter's house first. After the warm greetings between father and daughter, they quickly arranged for coffee in the living room.
In less than half an hour, a white Ford car pulled up at the door. The one who came to greet them was none other than Caleb himself.
In Zhang Hainuo's imagination, this Harvard Business School graduate "prodigy" should also be quite impressive—well-mannered, perhaps not wearing gold-rimmed glasses, but certainly young and tall, befitting Barbass's daughter, who was 1.72 meters tall.
When the real person appeared, Zhang Hainuo found that he had guessed right for the most part—he was indeed young, probably in his early thirties, not only had a demeanor but also gave the impression of high intelligence. However, his physique reminded Zhang Hainuo of the great Emperor of the French Empire. Perhaps he was an inch or two shorter than Napoleon, but in terms of robustness, he was equally impressive.
Zhang Hainuo didn't have the leisure to speculate on what kind of attitude Barbass had towards marrying his daughter to this person because after a brief exchange with his father-in-law, the young Napoleon had extended his right hand to Zhang Hainuo.
"Hello, Mr. Link! Oh, and Mr. Braun too!"
It was a very fluent German, and Zhang Hainuo's biggest feeling about this was not warmth but convenience—the more he used it, the more he felt that his poor English fluency was somewhat embarrassing.
"Hello, Mr. Caleb, I've heard so much about you!" Zhang Hainuo politely greeted the man who was a little shorter than himself.
The young Napoleon returned the courtesy very politely, "Mr. Link, you flatter me. A young and promising businessman like you is truly admirable and enviable!"
After some superficial pleasantries, Napoleon proposed to have lunch first and then discuss business in his office at Curtis Company in the afternoon.
Everyone found this arrangement very considerate. Lunch was chosen at a moderately-sized but well-decorated Western restaurant with a pleasant atmosphere. The dishes here were not luxurious, but freshwater fish and shrimp, along with specially prepared soup, whetted everyone's appetite.
A simple lunch allowed Zhang Hainuo to see Napoleon's shrewdness in entertaining guests—eating too extravagantly or poorly would undoubtedly affect the guests' mood; not drinking alcohol seemed lacking in taste, but drinking might affect everyone's work in the afternoon. The choice of restaurant, dishes, and the light wine paired with these freshwater fish and shrimp were almost the best combination imaginable.
Zhang Hainuo's initial purpose was to inspect the scale and technology of Curtis Aircraft Company. Buying aircraft was secondary, but it would be best if there was an opportunity to invest—he was quite interested in the "Mustang" of World War II. However, after lunch, he began to consider whether it was possible to poach Barbass's "son-in-law" for his own use.
In the subsequent conversation, Zhang Hainuo learned that this Harvard Business School talent served as the sales manager for the Eastern region of Curtis Company, which included several of the most developed states in the northeastern United States. Although this area seemed full of business opportunities, with the end of World War I, the contraction of the aviation manufacturing industry in scale was apparent. This was not something only "future people" like Zhang Hainuo could see—Barbass seemed somewhat worried about his son-in-law's future at Curtis Company and subtly suggested several times that young people should go to bustling areas like Manhattan to seek opportunities.
After some tea, Caleb drove his Ford car to take the guests on a tour of Curtis Company's manufacturing area. Since one of Curtis's flagship products was seaplanes, the manufacturing area was built by the lake, with many factories directly on the dock.
"During World War I, our company manufactured over 1,000 aircraft in total! The most numerous were three types: the Jenny trainer, with the British ordering 250 at once, which the U.S. Army still uses; the H-12 flying boat, ordered by the U.S. Navy for 124 units, 71 ordered by the British, and they even bought the production license; and finally, the K-type airship favored by the Russian Tsar, with 50 units purchased during the war!"
Caliber proudly introduced the "glorious achievements" of Curtis products during World War I, but Zhang Hainuo, who was sitting behind, felt uncomfortable. The H-12 was the most widely used anti-submarine patrol aircraft by the British and American forces during World War I. Submarines and anti-submarine aircraft were natural adversaries. Zhang Hainuo often found these anti-submarine aircraft troublesome when commanding the U-7 in the English Channel. Equipped with machine guns and small aerial bombs, although these weapons were not highly accurate and posed no significant threat to German submarines, they could disrupt the submarines' normal navigation and operations, attracting nearby British ships!
Caliber didn't say it, but Zhang Hainuo could feel that this largest aircraft manufacturer during World War I was now somewhat "past its prime." It wasn't just Curtis; the prosperity of the aviation industry during the war had become history with the defeat of the Allied powers. The victorious nations began massive demobilization, with pilots and ground crew members retiring in droves, and many aircraft became redundant. Some were incorporated into the coast guard, while others were dismantled and sold to domestic companies and individuals for agricultural or tourist purposes, as long as they didn't pose a threat to national security. Governments and military didn't care about their ultimate use.
Zhang Hainuo noticed that currently, less than half of Curtis Company's factories were still in production. However, at the test flight runway of the factory, many biplanes were awaiting flight tests, and various types of seaplanes were moored by the docks. Some were hull-style seaplanes widely used during World War I, while others were ordinary floatplanes.
Although Zhang Hainuo currently had no plans to establish a maritime aviation fleet, seeing so many new aircraft made him itch a little. Following closely behind, Fred also seemed eager to immediately take flight and return to the skies.
"Mr. Linke, these are our company's products developed in the last two years. The technology is mature, and the quality is reliable. If you're considering establishing an airline specializing in mail delivery, I personally recommend the H-12 patrol ship! During the war, over 200 of these ships served in the US and British navies for anti-submarine missions!"
"Little Napoleon" led Zhang Hainuo and others to one of the docks where the U-12, as he had just mentioned, was parked—a boat-like seaplane with two rows of wings almost like an add-on to a mini-submarine. Its two square engines were placed between the upper left and right sides of the fuselage, with only a little more than a meter of space between them. The open cockpit seats were arranged longitudinally on the fuselage. It was painted black all over, with a special waterproof material on the hull, making it smooth to the touch like whale skin.
After permission was granted, Fred climbed into the cockpit of this seaplane, examining it with great curiosity. However, after careful observation, Zhang Hainuo remarked, "The biggest advantage of this type of seaplane is its simple structure and easy construction. Its biggest drawback is its lack of stability on water, isn't it?"
Caliber was initially surprised but soon smiled, saying, "I didn't expect Mr. Linke to be an expert! To be frank, the H-12 is relatively cheap and can take off and land smoothly on calm water, but its wave resistance is poor!"
Zhang Hainuo wasn't an expert, but the design of this aircraft's fuselage was very similar to that of a submarine. He had experienced the bumpiness on U-7-type submarines. Since the person in front of him was both Barbass's son-in-law and one of his "targets," he spoke straightforwardly:
"We hope to buy two to three aircraft capable of carrying a small number of passengers. Speed doesn't have to be very fast, but longer range would be preferable. Whether it's a floatplane or a hull-style one doesn't matter. The key is for it to be more stable during takeoff and landing. I don't want passengers falling into the sea!"
"Hehe, Mr. Linke is quite knowledgeable! These are company-set sales prices. Discounts are only available if you buy more than 10 planes at once! But if you're willing to purchase old inventory, the price can be much cheaper!"
Zhang Hainuo didn't rush to answer. If he intended to transport goods between various ports in eastern Brazil, seaplanes would be more practical than land-based aircraft. But his ultimate goal wasn't to make money from such a small-scale transport business.
"Mr. Caliber, if I buy 3 HS-2Ls and 4 Jennys, will your company provide maintenance equipment and spare parts for free?"
Barbass's son-in-law thought for a moment. "Mr. Linke, we can provide a complete set of maintenance equipment for free. As for spare parts, in the future, if the aircraft experience malfunctions, we'll offer you parts and repair services at a discounted price. Additionally, if you need it, we can provide flight instructors and maintenance technicians. You'd only be responsible for their accommodation, food, and overseas allowances!"
"No need. We have our own pilots and technicians."
At this moment, Zhang Hainuo sat in the cockpit, looking serious as if he had already entered the role of a pilot.
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