Birth of the Iron Horse

**Birth of an Iron Horse** is the seventh mission in the classic campaign of the game Railroad Tycoon II. It is the first scenario of the European act of the classic campaign. The premise of the scenario is the growth of early railroads in Britain during the early to mid 1800's, and the player is in charge of the Great Western Railway. The map used in this scenario is a slightly-modified version of the standalone scenario Britain.

## Overview

### Introduction Spiel

> *In jolly old England, all this industrialization is really putting a cramp on the country. Coal fields are bustin with ore needing to reach the cities. Textile mills are finding new markets abroad. See if you can put an end to the quiveling competition, and become the dominant line. Margins will be very tight, so be careful of waste...and tie your shoe!*
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### Victory Conditions

* **Bronze:** Highest Player Net Worth in 1855.
* **Silver:** Also have a player net worth of $10 million
* **Gold:** All of the above, but player net worth at $20 million. Company must also be sole-surviving railroad.

A loss will be triggered if the player does not have the highest personal net worth by 1855.

### Available Bonuses

* **Choice 1:** 2-4-0 John Bull available early, +10% increased engine speed
* **Choice 2:** +25% Coal Revenue, +$50,000
* **Choice 3:** One level higher credit rating, 30% higher stock prices.

Choice 1 is a standout here. Though the first part of this choice is meaningless (the John Bull is already available), the +10% speed is very handy, and coupled with Crampton or Trevithick as a manager, can really help boost the speed of the early locomotives used int he scenario. Choice 2 is not that useful, coal is a practically useless cargo to haul before the advent of steel mills, so the revenue bonus isn't necessary. The $50,000 is very minuscule and won't go far to making an impact. Choice 3 isn't terrible, but can be hit and miss. The one level higher credit rating isn't great as it's not possible to extract an extra bond at the beginning, and after a company becomes established, credit rating is irrelevant. The 30% higher stock price is good at the beginning as the player will start with more purchasing power, but the extra 30% comes back to hurt as it will cost more for the player to merge with all the companies.

### Starting Situation

* **Starting Year:** 1835
* **Player Name:** Isambard Kingdom Brunel
	+ **Starting Player Cash:** $150K personal cash
	+ **Starting Player Stock:** 2,000 shares of Great Western (20% of the company)
* **Company Name:** Great Western
	+ **Starting Company Cash:** $900K

The player starts with no infrastructure.

### Ending Spiel

> *Congratulations on another job well done. The British Isles thank you for all of your efforts. Now, Continental Europe is calling your name to ride a political nightmare.*
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## Strategy

This is not a difficult scenario in comparison to the previous ones, but it does involve a new angle, which is buying up shares quickly to force a merger. $20 million in personal wealth isn't huge, so it's possible to bloat the stock price in one go to get the required amount early (often by 1839). However, the player generally only gets one shot at doing this per game. Otherwise, the player can opt to build up their railroad and personal net worth the old-fashioned way.

### Starting Out

There are a few decent starting locations, but the best one is between London and Oxford. London is huge, so there will always be a consistent supply of passengers and revenue. Oxford isn't the biggest city, but is decent enough to offer a start. There is usually either a grain silo, cattle ranch or sheep farm in Oxford, in which cargo can be transported to London to create food and goods. Also, Birmingham is not far from Oxford and when that is connected, a truly profitable route is created between London and Birmingham. The player should use double track to connect London and Oxford. Use a large station in London, with sand, water and oil facilities. Meanwhile in Oxford, a medium station should suffice, unless a primary resource like grain can be reached only with a large station. Run 3 or so passenger trains (3 pax cars each) between these two cities for now, they should at least be set to yellow light, to prevent empty runs (not ideal with slow trains). As soon as the player is set, they should also secure the cities of Liverpool and Birmingham by laying a small station in each city.

Meanwhile, the player needs to get themselves going in the personal wealth department, in the beginning, the AI companies will not be profitable and thus their stock prices won't rise much at all. Therefore, at first, just buy shares from the player's own company (The Great Western). Only buy 3,000 shares for the time being though (for a total of 5,000). After that though, start buying shares from the rest of the companies. Try to make sure that you at least have more shares than both of the other players combined. Buy on margin as much as you can, because the computers are not really likely to sell their shares in the first few years. Plus, in February 1837, an event regarding the coronation of Queen Victoria gives a 12% stock increase, which will further increase purchasing power. Meanwhile, when $500K is in the bank, take another bond and connect the rest of the track to Birmingham. Upgrade the station to an appropriate size, and continue to use Double track. If it's possible avoid the river crossing, since a wooden bridge will be used. When this is done, add Birmingham as a destination for the existing passenger trains, and purchase a couple more trains to run direct between London and Birmingham. Money should continue to flow in and stock prices should continue to rise.

### Takeovers

Continue to buy aggressively into each company. Hopefully the player's long-distance hauls (and it's revenue) between Birmingham and London are beginning to arrive, and this should shoot up the stock price of the player's company, again ensuring the player's purchasing power will keep rising (and importantly stay positive). The Birmingham hauls should make 1837 a big year for the company, and stock prices of the Great Western should begin to soar. However, it isn't recommended to buy more shares of the Great Western yet. For now, keep buying the rest of the shares from other companies (above 50% is all that is required for a safe merger, but more will help give flexibility). Meanwhile, extend to the track to Liverpool (single track should do), and again upgrade the station to the appropriate size. Purchase a few more trains to run direct from Liverpool to London and vice versa. For the next year, just watch cash and personal net worth accumulate and buy more trains between Liverpool, Birmingham and London as needed. When the Liverpool trains begin to arrive, this should make 1838 an even bigger year at the company, and thus the investors are likely to be ecstatic for a second year running. However, before the year is out, it is recommended to begin the process of taking over companies.

Pause the game during November 1838, sell as many shares of Liverpool and Manchester as possible until the player has 1,000 shares above 50% of that company's stock. This will decrease the share price considerably. Next, go to the merger screen and merge with Liverpool and Manchester using the lowest price possible. The player will then gain control of the Liverpool and Manchester railroad's assets. Then wait until December 1838, and then buy up the remaining shares of the Great Western in bulk. This will increase the price of the Great Western's stock to a ridiculously high level, and thus the stock will split several times over at the turn of the year. Then, during the first month of 1839, calculate the maximum merger price of the Middleton Colliery, and issue enough bonds so that the company will be able to afford it. In turn, merge with the Middleton Colliery using the maximum price. In essence, the player is gaining personal wealth from the Great Western's money (and the debts). At this stage, the inflated stock price, combined with merger payouts should take the player's personal net worth above the $20 million mark. If more long-distance trains arrive in time, then the Great Western stock price should increase further, and this should certainly give the player the amount they need to satisfy the gold medal requirement. By using market manipulation strategies, the Great Western's full share value at this stage is likely more than 8 times greater than that of the equity of the company. And thus, gradually the stock price will fall to normal levels. The player will eventually lose the $20 million net worth, but that doesn't matter since he won't lose the gold medal status!

Sometimes, due to economic recession or just pure luck this strategy may not work. The player will then have to expand and get the personal net worth through conventional means. Using the newly inherited track and stations, connect them to the existing network and run long-distance trains between each other. The company value should begin to skyrocket and thus the stock price will as well. It's also recommended to set the dividend as high as possible, especially since there is no equity requirement in this scenario. This should enable an eventual gold victory that won't take much longer.

## History

"In Britain, coal and iron had been exported from the high hills of the Welsh countryside for centuries before the introduction of steam power. However, industrialization placed ever greater demands on the resources of the British Empire. The invention of the steam engine in 1830 brought with it the method for moving these raw materials. It also brought with it men of vision and greed. Now is your chance to grab a share of that new wealth, and establish a place in British history. Your goal is to build your railway and dislodge your opponents, making you the ultimate British railroad tycoon. Your start date is 1830."

-- Railroad Tycoon II Strategy Guide