Military action
It was at this point that the Dwarven-controlled merchant military, which rivaled the diminished Iyanusi army now, was to show its might. During the final stage of Holward’s reign as Emperor in the 90th year of the 3rd era, the city of Jathan had been during civil unrest between elves and the reigning humans. Outnumbered by raging citizens, the emperor, against the advice of many generals, retreated his forces to regroup near Kiphox. Declaring that Daragon mercantile interests were threatened by the abandonment of the city, the armies of the Republic moved to seize the city of Jathan. Informed too late and with poor weather the armies of the Empire arrived to find the city taken and defended by both well-armed and professional mercenaries and angered citizens of all stripes. The empire had lost it trade capital to a stroke of the worst luck and many blamed the Emperor Holward for the cowardly retreat of military forces from an Empire city. Within Jathan, the Republic offered autonomy and representation for sovereignty to which the city seemed mostly resistant. Dwarven guards were sent to occupy the city and many elves, dwarves, and others lost property, lives, and peace of mind before the city firmly came under the sway of Daragon.