A century-old wealthy family that rose from Shanghai

Chapter 269 Statement

After the Spring Festival.

There was some news from Fang Jiaobo that was neither good nor bad. Guangdong Province agreed to buy back the shares of the "First Sugar Factory" from the Jiangsu and Zhejiang Consortium, but the condition was that 200 million taels of silver had to be repaid in one year.

Guangdong Province was also fearless at this time. After all, the sugar industry in Guangdong Province had already developed and had opened up sales channels in Jiangsu, Zhejiang and Shanghai, so it was not so concerned about the Jiangsu and Zhejiang consortium.

The Guangdong Province naturally wants to use the "First Sugar Factory" to make back the money after repaying the 200 million acquisition money in one year. This is equivalent to using the funds of the Jiangsu and Zhejiang consortium to buy the shares of the Jiangsu and Zhejiang consortium.

On the other hand, Guangdong Province also feels that the Jiangsu and Zhejiang consortium invested 200 million yuan, has distributed 300 million yuan in dividends, and can still recover 200 million yuan in costs. This profit can be considered a "huge profit."

In this regard, Guangdong Province took advantage of the situation and announced that it would buy the shares of the Jiangsu-Zhejiang Consortium for 200 million yuan, and complete the purchase in installments over one year. At this point, the Jiangsu-Zhejiang Consortium had no choice but to sign and seal, otherwise it would be difficult to get the capital back.

However, Chen Jitang of Guangdong Province obtained the "sugar hegemony", which made the Southern Whales envious. If the Southern Whales needed Chen Jitang's military support in the next few years, the commander-in-chief might have taken the initiative to attack. After all, the sugar industry has an annual output value of tens of millions and a profit of 10 to 20 million.

Chen Guangliang believed that Guangdong Province would probably not swallow up the remaining 200 million. After all, the "Jiangsu and Zhejiang Consortium" and the "founder of China's sugar industry" were not easy to offend.

Besides, the six factories in Guangdong Province produce 5000 tons of sugar per day and 20 tons of sugar per year. There is no reason not to pay the two million.

Chen Guangliang will also receive 100 million yuan from his personal shares.

At this time, his cash flow was increasing.

Unlike other industrialists, he had all his funds in factories and raw materials, and his bank loans were huge; once the market was bad, the debt would be enough to swallow up the entire business, and he would have to beg for loans from everyone.

Chen Guangliang has always stayed away from investments in textiles, matches, cement, and flour, knowing that these industries were considered "junk industries" from 1934 to 1935. It was impossible to make money, let alone break even, and he would suffer huge losses.

In the previous life, from 1934 to 1935, the outflow of silver caused China to be short of money, and the industry and commerce were in a bleak state. Even the real estate market in Shanghai suffered a huge blow, and had to seek help from the Nanjing government.

Based on this, Chen Guangliang thought it would be better not to touch the real industry in the next few years. After all, he is now an industrialist known both at home and abroad as the "founder of China's sugar industry" and a "shipping giant."

Yangtze River Bank.

Today, the Yangtze River Bank has become the central "trust" organization of Chen Guangliang's enterprises. He has organized and recruited a group of elite accountants, financial experts, and auditors to carry out financial supervision of Chen Guangliang's enterprises.

For example, Chen Guangliang did not inspect Jinshan Shipping in Guangdong Province for a year, and it was entirely up to the Yangtze River Money House to supervise and participate.

Today, Chen Guangliang came to the Yangtze River Money House, intending to "re-enter the arena", and he recruited his "agent" Hu Jinshun.

"How's the gold market doing lately?"

Hu Jinshun's mood suddenly fluctuated. The boss would not ask for no reason. He was afraid that there was more work to be done.

Back then, when he followed his boss to speculate in gold, not only did his boss make a lot of money, he also received a lot of bonuses, which allowed him to enter the middle class of homeowners in one fell swoop.

Therefore, Hu Jinshun quickly said, "Ever since the gold standard rose to 820 last year, the price has remained at this level, with little fluctuation, so trading has gradually become quiet."

Chen Guangliang nodded. He had originally not intended to intervene in this "bid gold" incident - mainly because he thought:
First, if silver prices rose, that was in overseas markets. Initially, the agreement among countries was simply to maintain the price of silver, not to inflate it. It wasn't until the Americans began buying up silver that smuggling rings from various countries began shipping silver to the US, profiting from the high prices. Silver prices in various markets seemed to vary somewhat. For example, at one point, US silver was $0.6 per ounce, while in the London market it was just over $0.5 per ounce.

Second, if silver prices rise, gold prices can also rise. China is on a silver standard, so if silver prices rise at the same time as gold prices, the price of gold will not fluctuate significantly.

But recently Chen Guangliang made a careful analysis and found that the speed of silver's rise must be very fast, and the speed of gold's rise will certainly not keep up; so with the Shanghai Stock Exchange's gold standard at more than 820, it is obvious that it can fall a little, and or is also possible.

He is intervening at the highest point now, so the risk is not great and it is definitely worth a gamble. He has some spare money anyway.

"Okay, get ready. We'll start shorting gold futures around 820:500, with a limit of million. I'll prepare the margin right away!"

Just for fun, the limit is 500 million, and it drops by 10%, so you only make 50.

This amount of money is not much for Chen Guangliang, but for many industrialists, earning 50 a year is enough to make them laugh.

"Okay, I'll arrange it right away."

After arranging the matters concerning the speculation of the bid money, Chen Guangliang pounded on the table.

He didn't want to invest in industries because he was worried that after building the factory, he would encounter the Chinese economic depression from 1934 to 1935; but that didn't mean that Chen Guangliang didn't want to invest in some profitable businesses.

On this day, Chen Guangliang came to work as usual at the China Merchants Group headquarters "No. 9 The Bund" on Huangputan Road.

In fact, China Merchants Group’s assets, including properties, land, and docks, are twice as many as its shipping vessels.

Among the properties, land, and docks, in Shanghai, there are prime buildings on Huangputan Road, such as the Great Northern Telegraph Company Building at 7 The Bund and the China Merchants Steam Navigation Company Building at 9 The Bund, both of which are owned by the China Merchants Steam Navigation Company. Docks primarily include the Jinliyuan Dock (South Wharf) at Shiliupu Dock and Yangjiadu Dock in Pudong.
Among the latest assets, real estate and land assets amount to more than 2300 million taels of silver, while shipping assets amount to only more than 1100 million taels of silver.

"Mr. Chen"

"Um"

The staff greeted Chen Guangliang with respect.

In fact, everyone also understood that China Merchants Group had not escaped from its "difficulties" because the huge debt of 400 million US dollars owed to Citibank had always been like a "sword of Damocles hanging over its head."

The current "reform" is nothing more than an internal reorganization. Although it has achieved very good results, the overall operation is still not really clear.

In fact, the effects will not be seen until the end of the year.

Chen Guangliang himself was very confident. After all, the abolition of the "comprador system" alone was expected to generate an additional profit of 600,000 to 700,000 silver taels in one year.

After entering the office of China Merchants Group, Chen Guangliang immediately began to prepare for work.

After taking over as general manager of China Merchants Group, he spent half of his energy here. To be honest, he made a great contribution.

Thanks to the fact that the three companies, Changjiang Real Estate, Shangri-La Hotel and Changjiang Taxi, are already on the right track, Chen Guangliang does not need to spend too much energy.

Global Shipping and Ping An Bank alone still require his more management.

After some steady work, the assistant walked in and said, "Mr. Chen, Boss Yu is here!"

"Please quickly"

Chen Guangliang gave face to this Ningbo giant and immediately stood up to greet him, after all, he was his senior.

"Mr. Ade, why did you come to the Merchants Bank to see me today?"

He smiled and invited Yu Qiaqing to sit on the sofa, and started joking. Yu Qiaqing said with some displeasure, "Guangliang, you, the China Merchants Group, are so submissive to foreigners, but so tough with us, fellow Chinese investors. Could it be that you, Chen Guangliang, have changed your ways too?"

Chen Guangliang was also aware of his situation. Since its re-nationalization, the China Merchants Group has exercised a "monopoly" on 11 intermodal routes on China's inland rivers. For example, on the Shanghai-Hankou route, the China Merchants Group had its own ships, docks, warehouses, and freight companies, providing a one-stop service. At the same time, the China Merchants Group suppressed other private Chinese enterprises. You can transport, but you don't have docks or warehouses, let alone land transportation.
"Ah," Chen Guangliang sighed and said, "Mr. Ade, you know, China Merchants Group is now directly under the management of the Ministry of Transportation. The chairman of China Merchants Group is also the Minister of Transportation. These measures were not formulated by me."

Although he also knew that Yu Qiaqing had cheated him several times, he could not use such means to deal with Yu Qiaqing, because "national spirit" has always been very important in Chen Guangliang's heart.

After hearing this, Yu Qiaqing's expression softened. He then took a sip of tea before saying, "Of course I know it wasn't you! But you're also in the shipping business. Would you approve of this practice?"

Chen Guangliang said firmly, "I don't agree! But you also know that even with global shipping, I know there will come a day when this company will voluntarily give up the route."

Yu Qiaqing couldn't help but wonder what Chen Guangliang was thinking. If he gave up two major shipping routes, how could Global Shipping's huge fleet make a profit?

To take a step back, Chen Guangliang could have delayed it for another day as long as he was in charge of China Merchants Group. There was no need to actively introduce China Merchants Group into the north-south and south-south fixed coastal routes.

"No matter what, you're a rising star in China's shipping industry. You should express your views on this matter. Whether you support private shipping companies or not is crucial!"

This is to force Chen Guangliang to express his position!
Of course, Chen Guangliang didn't refuse and said, "Okay, I'll sort out these issues later and present my views to the Southern Whale. But Mr. Ade, the Southern Whale is short of money. TV seems to want to be the Morgan of China and build a huge trust organization."

Yu Qiaqing was not surprised when he heard this. As private businessmen, how could they not know and be on guard against Song Zaiwen's thoughts?

But what can we do? We can only do our best and never give others a chance!

The Nanjing government's "robbery" is not "open robbery", but "covert robbery" that "takes advantage of the opportunity".

As long as you don't reveal any evidence, you can still keep your property.

"Okay, we private shipping companies all look forward to your opinions!"

It turns out that he was forcing himself to express his opinion.

Chen Guangliang politely saw Yu Qiaqing out, then returned to his desk and thought about the problem.

If he were just a businessman, he would probably be forced to retreat step by step by the Nanjing government like these people, and his wealth would be almost gone.

But fortunately, his investment in industry is not large, so if the Nanjing government wants to make him bleed heavily in the future, it will only hurt his surface.

Of course, Chen Guangliang would even take the initiative to "donate blood" to ensure the safety of himself and his family.

Subsequently.

Chen Guangliang wrote an article about his thoughts in his office:

"The government should clearly stipulate how state-owned and private airlines should divide responsibilities and cooperate, jointly plan for the development of national aviation, and establish a shipping policy plan."

The specific content is:
In response to the conflicts between the state-owned and private shipping industries, he centered his proposal on establishing a coordinated national shipping policy, unifying the development of both the state-owned and private sectors, and the nation's shipping industry as a whole. He argued, "Under the current socio-economic structure of our country, and given the current state of our shipping industry, to avoid conflict and confrontation between state-owned and private businesses, and for the future of our nation's shipping industry, our government should urgently establish clear guidelines and procedures for the division of labor and cooperation between the state-owned and private shipping industries, and establish a consistent national shipping policy."

His specific ideas are divided into three parts:
First, it stipulated that state-owned shipping companies should focus on opening international ocean routes;
Second, it stipulates that private airlines should strive to develop domestic routes under government incentives, protection and control;
Third, before navigation rights are restored, state-owned and private shipping companies should cooperate in multiple ways so that "they can concentrate their forces to resist foreign invasion."

He also suggested that the government should clearly stipulate the following points:
1. The state-owned China Merchants Steam Navigation Company and private shipping companies must work together under the unified management of shipping operations to achieve common development.

2. State-owned and private enterprises should stand on the side of the entire China National Shipping Corporation and cooperate in various ways to resist foreign shipping. For example, China Merchants should lease its docks and warehouses to private individuals. China Merchants should separate from the three-company shipping group it established with foreign companies Jardine Matheson and Swire.

3. In accordance with the principle of state protection and encouragement of the shipping industry, the government should treat both state-owned and private enterprises equally. State-owned enterprises, backed by state power, may sometimes make some sacrifices for the development of the shipping industry.
4. State-owned airlines should not compete with private airlines in business.

In short, he believed that "China Merchants Steam Navigation Company is a state-owned enterprise. In principle, it should strive for business development, but its business significance cannot be based purely on profit. Therefore, on domestic routes, it can only unite with private enterprises to strengthen its strength and resist foreign ships. It must not compete with private shipping in business, compare strength, and hinder the progress of the entire national aviation industry."

To this end, he suggested establishing a long-term and stable shipping policy, the main contents of which include:
"How should the private aviation industry organize, support, and supervise cooperative operations? How should the state-owned aviation industry assist the private aviation industry and seek common development? How should the significance and purpose of state-owned aviation be established and clearly stated? How should the scope of development be defined under the principle of combining state-owned and private aviation...to avoid operational confrontation or conflict?"

After talking for thousands of words, Chen Guangliang wrote down all his understanding.

In fact, in Chen Guangliang's opinion, if China Merchants Group wants to get out of its "financial difficulties", it can only rely on his loan plan.

Two days later, Chen Guangliang was called to the Nanjing Finance Department by Song Zaiwen.

"Victor (Chen Guangliang's English name), the United States has returned $106 million in Boxer Indemnity. I'm planning to give this money to the China Merchants Steam Navigation Company. Or how about using it to repay some of the loan?"

Song Zaiwen's tone clearly showed that he was worried that Chen Guangliang would wipe out his achievements because of the loan issue.

What he deserves recognition is that Chen Guangliang's "reorganization of personnel organization" in the past four months has achieved great results and effects.

Although the specific results have not yet come out, they are already foreseeable.

Chen Guangliang immediately said, "No, since the loan hasn't matured yet and Citibank hasn't pressed for payment, I suggest exchanging these US dollars for silver and depositing it in the bank's vault as reserve funds for the China Merchants Group. Besides, this won't affect anything!"

Song Zaiwen wasn't a time traveler after all, so he said uncertainly, "Are you so sure the dollar will depreciate?"

Chen Guangliang said: "It's not that I'm sure, but I feel that China Merchants Group has nothing to lose, so why not take a gamble? Silver has already fallen to a historical low and there is no room for further decline."

Song Zaiwen no longer had any doubts. This time, he followed Chen Guangliang's advice and asked several government-owned banks to import large quantities of silver from overseas.

"By the way, when do you think China Merchants Bank will be able to get out of this predicament?"

Chen Guangliang said: "I think by the end of the year, the measures we've taken in the past four months will have a real impact. Specifically, China Merchants Group's operations may see significant improvement next year."

"Okay, don't worry, the Ministry of Finance and the Ministry of Transportation fully support you."

"Thank you very much"

Before leaving, Chen Guangliang gave a copy of his article to Song Zaiwen; at the same time, he also gave a copy to the Ministry of Transport and published it in the newspaper.

After Chen Guangliang left, Song Zaiwen read the article immediately and then laughed, "I was forced to write it, I'm afraid that's not what I meant!"

Then put it aside as waste paper.

In Song Zaiwen's opinion, Chen Guangliang did not enter the inland waterway transportation, and the coastal fixed routes were actively introduced by China Merchants Group, so there was no reason for him to care about such matters.

Then, it must be the shipping leader of private enterprises and fellow Ningbo businessman Yu Qiaqing who put pressure on Chen Guangliang.

(End of this chapter)