Fire Density

“I think I will. I see you’ve already indicated the approximate salary levels. I don’t think any of my candidates would give up on that. It’ll take me a few days to talk to the right people.”

“Thank you, professor, I had no doubt that you could help me recruit people. But that is not all,” I said, observing a slight surprise and interest on Stein’s face,“To manage this team, I need an experienced leader with the necessary knowledge and authority in the scientific community.”

“And you want me to help you find such a man?”

“No, Ivan Gerkhardovich, I don’t. I already found him. This man is you. If you want to, of course. But something tells me you’re not gonna say no,” I smiled rapaciously.

The professor started thinking. He didn’t see it coming.

“Hmm,” Stein vaguely hemmed, “about another adventure, I did guess. I’d probably send someone else with that idea a long way away. I’m too used to the Colonial Technological Institute, I’ve got all my roots in it.”

“Professor,” I told Stein quietly, “do you watch the news regularly?”

“Yes, I do, from time to time.”

“And what do you see? Do you think I’d start this whole thing if everything was okay? Why? I’m not poor already. And as you can see, I’m a soldier, not a scientist. And suddenly, I make this offer. Why do you think?”

The professor looked at me silently.

“When I first met you, I was dying of asteroid fever. And then, to avoid death, I became a scientist for a while. And now I come back to you, and I’m ready to do science and engineering again. I’m dead sick again, Professor. But I’m not the only one sick this time. The whole Federation is sick. And if we don’t create a cure right now, we all die. Some will die in space and in the colonies fighting the quargs, and someone in the Solar System under bombs and orbital strikes when there’s no one left to protect the planets. There will be no Colonial Technological Institute, no artificial sun over Titan. It’s a matter of several years. We need a cure, professor, and this cure is a new weapon. I’ll give it to the Federation, with or without you, but I’d rather do it with you.”

“Is it that bad?”

“I was there and I saw it with my own eyes.”

The professor looked away, and for a while, he was thinking about something of his own. Finally, he looked me in the eye again.

“Where and when do I bring the science and engineering team?”

Chapter 2

I spoke to the newly-made Lieutenant of the Corps of Engineers, Jeff, shortly after the call to the professor. He took my idea calmly, but surprised me with his answer.

“Commander, I’m with you, what’s there to talk about? As much new hardware as I’ve seen and touched in the last few months with you, I’ve never seen before in my life. And not only did I see it, but I thoughtfully looked into it, and then I tested it in combat. This is a dream, not a service! And something tells me there’ll be no problem with such things in your new firm. Just talk to the director of the Academy. I owe him a lot. They wouldn’t have made me lieutenant without him. I’m supposed to have taken an individual training course at the Academy. Although why „supposed”, if I’m talking to my instructor now,” the Lieutenant smiled, “Yeah, and I wouldn’t want to leave the army now, when I’ve just become an officer.”

“All right, Jeff. I’ll talk to the Lieutenant General, I think we can find a way that works for everyone, and then I’ll contact you again.”

Lieutenant General Schiller left me his personal contact, sending me to the capital for an award, so now I could go straight to him.

The director of the Academy didn’t respond to the call, but he called back 20 minutes later.

“So, Second Lieutenant, congratulations on the Federation Award, the new rank, and the Staff Academy. Don’t stand at attention, the call isn’t official. And put aside ranks.”

“Thank you for your help. All of this is largely due to you.”

“I watched the awards broadcast. What were you talking to the President about for a minute? General Gallo nearly burst on the spot from such a breach of protocol,” Schiller grinned.

“That’s what I wanted to talk to you about. Please, look at this document,” I sent the General a copy of the recommendation signed by President Tobolsky.

“You’re such a dodger, Lavroff. How do you get those papers?” a minute later, the general laughed. “First Admiral Petrov, now Mr President himself… You just have the talent to be in the right place at the right time with the right words. And what do you want from me?”

“I need a chief engineer. A talented technician familiar with weapons specifics. You’ve got one of those.”

“I’m not giving Jeff away. So far, everything you’ve done has been good for the Academy. Now you want to steal my best tech?”

“No, I don’t. He wouldn’t leave the service himself, much less you.”

“What do you want then?” – the General was surprised.

“I want a mutually beneficial partnership with the Planetary Commando Academy. You can send Lieutenant Jeff to my company as a military advisor or just a consultant, after all. At my official invitation, of course. To insure the cooperation of weapons developers with the army and to make certain that the needs of troops are most fully taken into account in the development of new equipment. I need a talented technician. So do you. His qualifications will only increase in my company, and the Academy through him will have access to the latest developments of my company, which are just being tested. And, of course, I’ll only have him spending just a part of his time, so he’ll be able also to perform his duties at the Academy, albeit in a somewhat reduced form.”

“You’re not just a dodger, Second Lieutenant,” – the general laughed, “You are a Super Dodger. And the invitation to Jeff, I suspect you’ve already prepared?”

“I’m sending it to you.”

* * *

On May 15th I, that is Igor Lavroff, celebrated his seventeenth birthday. Inga was sent for a whole month along with all the freshmen of the Academy to some incredible wilderness for another training, so I couldn’t see her. I ended up celebrating my 17th birthday at home with my mom. Anyway, I was going to move her to Earth, so I thought I’d mix business with a little pleasure. She was a little shocked to find herself the sole owner of the Lavroff Weapons Company, but that’s just a little bit. She’s already getting used to her son’s quirks.

“What am I going to do in the capital, son?” – Mother asked me after she had feasted her eyes upon me and asked me all the usual questions after a long time apart, “This is where I teach the kids, and I like my job. We have a friendly team, an habitual comfortable environment. And what’s gonna happen there?”

“And there, Mother, will be the last place the quargs will go if we can’t stop them. The capital of the Federation will be defended to the fullest extent possible.”

“You’re saying terrible things.”

“Unfortunately, I am personally familiar with these terrible things. They don’t release all the information online to avoid causing panic in the colonies. Right now, the quargs can break anywhere. And as for what you do in the capital, there are also children and elementary schools. You yourself once asked me to move to the Earth.”

“I was just trying to talk you out of the idea of becoming a professional military officer,” my mother said quietly, “and I was ready to go anywhere for it. I was afraid of losing you.”

“And now I’m afraid of losing you. I can’t work in peace knowing that you’re in danger.”

Mother smiled sadly.

“When are we going?”

* * *

I have carefully read a document that was the product of a collaboration between Leo Rabinovich, Jeff and Professor Stein. The title of the document began with the words „Cost plan”. Tha’d be okay, a beautiful document, Rabinovich turned out to be a master at these things, but the amount in the line ‘Total’ has put my hair on end in all places. 820,000,000 rubles. I could only imagine this sum in the abstract.

The worst part was that even with the most biased approach, I found a way to cut costs by only ten percent, and only by postponing some of the bills when they had a chance to be compensated by the expected revenue from the company’s activities.

There’s no money, but you hold on! Some of the ancient politicians on Earth said this immortal phrase. My memory has not retained his last name, apparently for the utter uselessness of this individual.

“Gentlemen,” I looked up to my comrades, “this is a wonderful plan. But only 30,000,000 rubles are available. We won’t even be able to pay advances to the equipment suppliers, I say nothing about everything else.”

“You can try leasing equipment,” Rabinovich suggested. “This would increase the total by about 10 per cent, but would cut investment by half at the start. But a lot depends on the business reputation of the firm and its owners. How’s that working out for you, Igor?”

“I’m afraid that won’t do. Although, probably the President’s signed license recommendation could help?”

“It’s hard to say. You have to try. Although the document certainly inspires respect. But it’ll still need a business plan with a forecast of the company’s financial flows, a production schedule, justification of the sources of lease payments, and a bunch of mandatory sections up to the background and experience of company executives.”

“Even if we can pull this off, we still need to get somewhere almost 400 million more,” I voiced my doubts.

“Well, either you have to attract an outside investor, and he, if he gives us the money, is bound to want to be a part owner of the company, or you have to go to the bank for a loan which is about as complex as leasing.”

“No, let’s try to do without co-owners. This can lead to management problems. All I need is a conflict between shareholders. Prepare the documents, Leo. Tomorrow we’ll try our luck at the Federal War Bank. The defense industry enterprises receive credits from this bank, so our subject matter should be close enough, and they have their own leasing company.”

* * *

“Good afternoon, gentlemen. My name is Ilya. I’m the manager of our bank’s new clients. How can I help you?” greeted us from the screen of my tablet a short and very thin young man, apparently a small clerk, the main task of whom was to meet first-time clients. It was some kind of filter that was needed to keep nonentities from bothering serious people.

“Good afternoon,” answered for us Rabinovich and presented us all. “We represent the Lavroff Weapons Company: development and manufacture of weapons and military equipment.

“I’ve never heard of your company before. How long have you been in this market?”

“Our company has just received a state license for this activity.”

“And what services do you need from our bank?”

“Equipment leasing and working capital replenishment credit. Also your bank account, of course.”

“Well, please send me your package of documents.”

For ten minutes, the clerk looked at the files he had been given. We waited patiently.

“What can I say, gentlemen,” has he finally said,“your company is new, has not yet started and has no experience of successful work in the chosen field. That is a negative, and a very significant one. Your own funds account for only four percent of the loan and lease amounts requested. That’s not good either. The sources of repayment of credit and lease payments cannot be considered reliable. If you’d already had contracts with the Ministry of Defense already, it would have been different, after all, you may not win the contest. Those are the downsides. Now, the upsides. You have a very serious license, which means the government thinks your company is well-off and capable of conducting your chosen activities. Besides, you have positive results of combat tests of some of your models, these documents are not standard actually, but this is something. And one last plus: your company has a distinguished scientist and a team of qualified engineers and researchers. All together, the picture is quite contradictory. I’m afraid we won’t be able to provide you with the amounts you’ve asked for.”

“Are there any additional factors that could affect the bank’s decision?” – I entered into the negotiations.

“Of course. For example, the presence of strong guarantors or a quality collateral whose value exceeds the amount of credit requested.”

“Will copyright be a good collateral?”

“This depends on the case and, above all, the amount of royalties in recent months. What do you have to offer?”

“The patent on the treatment of asteroid fever. I’ve sent you the file.”

The manager examined the document for a while and then gave a thoughtful speech:

“Not a bad asset. Of course, it requires a professional appraisal, but I think it’s worth around 200 million. That’s if it’s as a whole. Your share in it is twenty percent… Well, you can get 30 million with this collateral. But as you can see, it doesn’t change the situation. Is there anything else?”

“The shares of our company. Given the license, do they have any value as collateral?”

“Unfortunately, it’s an illiquid asset. Your shares are not listed on the exchange, so I don’t think the bank will be interested in them.”

“Tell us, Ilya,” Rabinovich has decided to lay down our last trump card,“Have you carefully read the documents relating to our license?”

“Well, I looked at them. They all fit the bill.”

“Please note who has signed the license recommendation.”

The manager found the document and went into the reading. This time, he looked up to us almost immediately.

“It’s very unusual, gentlemen,” he spoke with doubt in his voice,“from the point of view of the regulations approved by the bank’s board of directors, the identity of the signatory is not a significant factor. But your case is clearly out of line. I’m going to have to submit your application to the director of our branch. He will contact you shortly.”

The director of the capital branch of the Federal Military Bank was also unable to make a decision on his own. He contacted us and said that he had given our documents to the board of directors for consideration. They held us for three days, after which we received a categorical rejection from the bank. Not only were we not given the requested amount, we were denied service at all. The head of the branch who told us the news sounded confused and surprised. Either he was a great actor, or he didn’t truly understand what had happened. And a new anxious bell rang in my head, and an evil little worm pounded his hammers with a double force.

* * *

Five other big banks have failed us, too. Two of them categorically refused to deal with us. The others were ready to open accounts for us, and one of them even promised to consider a loan application for 10 million, and the manager assured us that we had every chance of getting approval from the bank management. But it certainly couldn’t solve our problem.

Everything became clear on the third day. I was contacted by a confused and clearly upset Rabinovich.

“Igor, I have some bad news for you,” he stated directly, “I was approached by people from Global Weapon Industries. They made it clear to me that they wanted to negotiate with the owners of the Lavroff Weapons Company about selling the firm. I’m very interested in working with you, but I want to warn you right now, if you decide not to sell, I will be forced to terminate our business relationship. My business is going to be ruined by such ill-wishers. These are very serious people, and I wouldn’t want them to be my opponents.”

“Thank you for your candor, Leo,” I responded thoughtfully, trying to shape my behavior in new circumstances, “I will not refuse to negotiate. Let’s see what these gentlemen have to offer me. Are you still ready to participate at this stage?”

“Until a decision is made to refuse, yes.”

“Then arrange a meeting for us, please.”

Representatives of one of the world’s largest arms manufacturers refused to come to our office. They chose not to invite us to their office either. We met in a neutral area, in the negotiating room of one of the most expensive business centers in the capital.

“So, gentlemen,” I took the initiative after our mutual introduction, “You have a proposition for me. I’m listening to you very carefully.”

“Igor Yakovlevich,” started quietly the Hispanic Enrique Cruz, the first negotiator of the arms corporation,“we are pleased to meet you. Such a young officer, and already a knight of the Gold Star and the Iron Cross. You’re a great military man, and obviously that’s where you come in.”

“Thank you, Mister Cruz,” I nodded my head, “but that’s clearly not the reason of our meeting.”

“Take your time, Mister Lavroff, I was just beginning my thought. So, you’re an exemplary officer with incredible combat experience for your age and rank. A brilliant military career awaits you, as you are now a student at the General Staff Academy, and graduation opens many doors to any officer. My colleague Martinez and I would like to understand why do you suddenly need to change your lifestyle abruptly and start a business that you don’t know too much about?”

“Gentlemen,” I answered with an accentuated surprise in my voice, “but it is more than logical. I was on two combat missions, and in both cases, I was able to achieve high combat effectiveness by improving standard weapons in the service of the Federation Army. Is this not a cause for optimism when we set up our arms business?”

“For optimism? Not at all. You don’t seem to know what you’re getting yourself into and what you have big ideas about. The development of weapons and military equipment requires enormous resources, both material and human. In addition, this field of activity had long been divided among the major players. We, Global Weapon Industries, have about 40 percent of the arms market. There are three other large corporations, but their shares are lower. And that’s it, Mr. Lavroff. There’s nobody else around. Of course, small companies do their own developments, but they’re not working directly with the Ministry of Defense, they are contractors of a large firm and perform some of their orders. And I can tell you honestly, most of these are either subsidiaries or dependent companies of the same major players in the arms market. But you, bypassing the usual procedures with the full licence to develop and manufacture weapons, have fallen out of this long-established pattern. Nobody needs a new market contestant with direct access to the Ministry of Defense competitions.

“Thanks for the informative tour of the arms business, Mr Cruz,” I said with a smile, “So what does the GWI management want from me?”

“We’d like to buy your company. Along with the license, of course, because it’s what’s most valuable. Our management is ready to offer you 100,000,000 rubles. It’s a very good price, Mr. Lavroff. Think of it. In addition, we are prepared to purchase separately all your work already done on the modernization of standard weapons and buy from now on all the promising improvements and new samples that you can create.”

Cruz stopped talking, and all three, including Rabinovich, looked at me waiting for an answer. Judging by the look on my consultant’s face, he found the GWI’s offer more than generous.

“This is a good offer, gentlemen. And if I were an ordinary businessman, I would take it without hesitation.”

“What’s stopping you, Mr Lavroff?”

“Only one thing. I didn’t start this business for profit. I already have enough money to live comfortably. But, alas, not for long. It will be hard for you to understand, gentlemen, I can already see, but still, try, at least to get my motives right to the people you’re here for. I just got back from the battle, and I know the reality on the fronts, as I’ve been moving in the highest military circles, I’ve been among real high-ranking military commanders. With the available weapons and resources, we will not be able to defeat the quargs, we will lose the war. It’s a matter of several years. Who would want the money you promise me for my company? Who would spend it and where?”

“It seems to me, Mr Lavroff, that you are painting the devil blacker than he really is,” said Martinez, but it seemed like I was making him uncomfortable, “That’s defeatism over the situation…”

“Do I look defeatist to you?” I mildly interrupted the GWI negotiator, “I’m sure you’ve studied my biography.”

“My colleague was wrong to say,” Enrique Cruz rushed to smooth things over, “What he really meant was that he himself was more optimistic about the issue. Please continue with your thought.”

“Well, gentlemen. I created the Lavroff Weapons Company because I feel I have the power to change the situation. I’ve picked an excellent team of like-minded people with the necessary expertise. I already have a few promising ideas, which, by my own experience, I believe are the most important for rapid deployment in the Federation Armed Forces. That’s what I want to present to the New Equipment and Weapons Commission of the Ministry of Defense. Again. I don’t want any profit. Everything I’ll earn I plan to put into research and development, and in order for them to be implemented as quickly as possible, I need a direct communication with the Ministry of Defense. I’m gonna do exactly what I think is most relevant to the army right now, and I don’t want anyone interfering in this process and dictating to me what is more promising and less so in terms of commercial benefits.”

Martinez’s face was full of deep-seated disappointment and frustration. He clearly didn’t like the negotiations. And Enrique Cruz was thinking about something intensely. Finally, he sighed and looked at me.

“I respect your position, Igor,” his voice seemed to express regret, but maybe I just imagined it, “But the reality is, you can’t run this business on your own. You’ve already been turned down for loans and leases? You’re a smart man, and I think you’ve figured out by now that it’s not an accident. Trust me, it’s only gonna get worse. With all due respect, all sincere respect to your accomplishments, the arms market is not your level. I’m sorry we’re on opposite sides of the table, but that’s how life turned out, and there’s nothing we can do about it. I do recommend that you reconsider our offer. I could double it, but I know it’s not about the money. Give up this business and join your team in the GWI. I think I can persuade the management to create a separate unit from your team. You will have virtually unlimited resources and the opportunity to work safely in a large corporation.”

“Thank you, Enrique,” I thought I’d call him by his first name, “I understand that you’re just doing your job, and your employer has given you the task of buying my company. But I can’t help you. I need autonomy in decision-making. Complete autonomy, which is absolutely impossible in a vertically integrated corporation like the GWI. So I have to decline. ”

“Is that your final decision, Mr Lavroff?” In Martinez’s voice, there was an irritation he could barely contain.

“It’s final, Mr Martinez.”

“Well, I’m afraid you’ll soon have to regret that, Second Lieutenant,” hissed the negotiator, “’Cause when the Commission of the Ministry of Defense comes to you in three months and sees that there’s no real activity going on, it’s gonna revoke the license, and all your good intentions will be lost. And without money, you’ll have no activity. You may visit all the banks in the Federation, no one will work with you. At most, they’ll promise something small and delay for months to make a decision. And if you try to find an outside investor, you know who’s going to be behind his back.”

“Unfortunately, my colleague is right, Mr Lavroff,” – Cruz said mildly, “You have my contact. I’ll wait for the call. Our offer still stands. Well, as long as you have a license, of course. Only every day of your delay will reduce the amount offered by us by 2 million rubles. It’s been a pleasure meeting you. Now, if you gentlemen will excuse us, we have business to attend to.”

* * *

Not all partners are equally useful. I lost Rabinovich, and I had plans for him.

“I’m sorry, Igor, but if I were you, I’d accept the offer. It’s been a pleasure working with you, but I’m afraid you’ll have to find another consultant,” Rabinovich told me right after the GWI negotiators left.

I didn’t feel sorry. It’s best to part with an unreliable partner early in a relationship, than to get stabbed in the back later in a more serious situation. Right now, I didn’t have time to think of Rabinovich. I had enough problems without him.