That seems to be "Les Cinq Cents Millions de la Bégum"Les Cinq Cents Millions de la Bégum from Jules Verne.
In Jules VernesVerne's story, a princess from India dies and her 500 million are given to a frenchFrench doctor and a germanGerman professor. The frenchFrenchman builds a city with modern standards, and the germanGerman builds a city with huge steel production and cannons. As
As described in the question, the germanGerman produces ammunition to kill everyone with gas. And then in the end the german get'sGerman gets killed and his city collapses, because he was the one to give orders for everything. The
The two cities, the cannon, the infiltration, it's all there. The englishEnglish title is "The Begum's Fortune"The Begum's Fortune.