A century-old wealthy family that rose from Shanghai

Chapter 270 The Great Powers' Intention to Destroy Us
On this day, the heads of Swire and Jardine Matheson, Stephen Stephen and Barry Du, met with Yu Qiaqing for discussions.

The three companies are old rivals. In the past, in the inland shipping, Jardine Matheson and Swire joined forces to attack the newly established Ningshao. As a result, if Yu Qiaqing had not used the "fellow townsmen association" to raise 10 taels of silver to fight back, he would not have his current shipping empire.

But today's gathering is obviously not a competition between the three parties.

At the beginning of the gathering, the young but cunning Shi Yueke spoke up, "Now, in our UK, the government will never suppress private enterprises. It will definitely strongly support private enterprises to compete with foreign capital. I didn't expect that after the China Merchants Group was re-nationalized, the first to be targeted would be your Chinese private enterprises!"

Obviously, this is a divisive statement, although it is true.

Although Yu Qiaqing was greedy for money, he was absolutely patriotic and loved the Nanjing government. He said calmly, "You two, our country is still relatively poor, and the China Merchants Group is on the brink of life and death. Although I am personally dissatisfied with the Nanjing government's actions, I also hope to improve the situation through appeals."

"Haha!" Du Baili laughed. "You, the Nanjing government, don't understand one thing. Only when private enterprises develop can a country become truly strong and have sufficient global competitiveness. Mr. Yu, we are old friends. Today, we will openly state that in our opinion, China Merchants Group will not last more than two to three years and will inevitably go bankrupt."

Everyone is well aware of the situation of China Merchants Group.

Although the assets are more than 30 million, the liabilities are 17 million. It seems that the assets are much greater than the liabilities, but in fact, the return rate of shipping terminals is not high, and they may even operate at a loss for a period of time.

Yu Qiaqing said directly, "You two didn't come to me just to say bad things about the China Merchants Group, did you?"

He already knew the truth, but he still maintained good relations with foreigners. After all, he was also a comprador.

Shi Yueke immediately said, "We hope to unite and use price cuts to counter China Merchants' aggressiveness. Therefore, we also hope that you will maintain the same level of inland waterway shipping as we do. Ultimately, we will make it impossible for China Merchants to expand."

Yu Qiaqing replied, "I'm sorry, but we at Sanbei and Hong An are no longer able to compete on price. We are not as strong as you, Jardine Matheson and Swire."

Du Bailey further said: "We can introduce British banks to lend you money."

Yu Qiaqing bluntly stated: "Loans will only increase risks."

In fact, given his position in the concession, he maintained a good relationship with HSBC and did not need an introduction or a comprador for small and medium-sized loans.

Seeing that Yu Qiaqing was unmoved, Shi Yueke and Du Baili were somewhat disappointed and could not help but blame Yu Qiaqing in their hearts for not being a qualified businessman.

In their imagination, China Merchants Group is heavily in debt and its management is chaotic. As long as they launch a price war again, China Merchants Group will definitely be dragged down.

Of course, if we can win over the Chinese to act as our internal supporters, that would be a very good thing.

But Yu Qiaqing did not dare to be labeled a "traitor" and refused it outright.

After Yu Qiaqing left.

Du Baili said, "It seems that we have to rely on both of us this time. On the fixed north-south and south-south routes, we have reduced our prices by another 20%. This price is lower than that of China Merchants and Global Shipping. We are also British-owned (and enjoy some special treatment), so I believe we will have an advantage. This time, we will really bring down China Merchants!"

Their plan is to keep the price reduction measures going for a longer period of time, so as to make China Merchants Group suffer losses completely.

Although they had played this game once before and ended up losing, they were obviously more confident this time.

Their purpose was to use this method to make the financial situation of China Merchants Group, which was already not in good condition, even worse.

At that time, it will further affect China Merchants Group's entire shipping route, especially the inland waterway routes.

Because in the inland river, Jardine Matheson and Swire also have a large share, and are on par with China Merchants Group.

When a country's inland rivers are occupied by foreign powers, it shows how weak the country is.

Shi Yueke pondered for a moment and said, "The price reductions on just these two routes won't have a fatal impact on China Merchants. We originally hoped to join forces with Yu Qiaqing to launch a price war on inland waterways, but he's unexpectedly unwilling to join. However, there's one thing we still need to do, and that's to spread negative rumors about China Merchants and try to get some traction with Citibank to see if we can ignite a fire under the bank!"

Du Baili immediately looked up to the young competitor and said, "Your method is good. You can give it a try."

After Yu Qiaqing rejected the solicitation of Jardine Matheson and Swire, he soon saw the article published by Chen Guangliang in the Oriental Daily that day.

"Okay, I was right about this guy!"

Although Yu Qiaqing also knew that even Chen Guangliang as the general manager might not be able to change the Ministry of Transport's "monopoly measures", it was at least an attitude.

Yu Qiaqing also hopes to attract more shipping professionals to discuss the healthy development of national shipping.

at the same time.

Chen Guangliang's article published in Oriental Daily also sparked discussion among shipping professionals.

At the end of the article, Chen Guangliang also directly mentioned that he hopes the government will quickly implement the following points:
(1) Establish a consistent maritime policy by referring to the established practices of other countries and the actual situation of the country;
(2) Before the grand cooperation is completed, how should the state-owned China Merchants Group develop its business to compete with foreign airlines? This should not only help the private airline industry under the principle of profit-making and work together for the development of national aviation, but also fulfill the true meaning of the national economic aviation industry and not violate the original purpose of the "navigation policy" contained in the "Constitution"?

(3) The principles of the state's shipping industry policy should be clearly stated. If it is decided that private ownership will be the primary focus, the state should clearly inform the public that it has no intention of nationalizing privately owned ships. In the past, cooperation was promoted, and in the future, supervision of cooperation will be based on the principle of not interfering with property rights. This will further address the concerns of some private shipping companies and facilitate cooperation.

(4) To ensure that state-owned and private businesses do not conflict with each other and to help the private shipping industry, which is on the verge of bankruptcy, provide emergency assistance and promote the realization of "national shipping industry cooperation";

(5) Given the current financial situation of the government, it cannot be compared with those of advanced maritime transport countries. There is no question of subsidizing the shipping industry, let alone the fact that the state-run shipping industry should be a sacrifice. Therefore, under the current situation where state-owned and private enterprises coexist, we should take both into consideration to avoid unnecessary losses.

The society cheered.

"Mr. Chen is very knowledgeable. This article contains very constructive suggestions. The Nanjing government should give it serious consideration."

"Yes! I must not only sigh in admiration that Mr. Chen, at the age of twenty-two or twenty-three, possessed such courage and talent, able to identify and sharply point out the problems existing in China's shipping industry, but another admirable aspect is that his focus and starting point were not for the interests of himself or his own small group, but rather from the perspective of how state-owned and private shipping industries should divide labor and cooperate, and from the perspective of the development of the entire national shipping industry."

"China Merchants Group needs to develop, and private enterprises need to develop. The most urgent task is for us all to change our stance and unite against foreign powers and drive them out of our inland rivers and coastal areas."

Of course, apart from social support, Chen Guangliang's "suggestions" did not attract the attention of Nanjing.

After reading the article, the commander-in-chief said to Zhu Jiahua, the Minister of Transportation, "Go and tell him that the most urgent task is to run the China Merchants Steam Navigation Company well. Don't miss the opportunity, and don't be tempted by others to do something that will attract attention. If the China Merchants Steam Navigation Company is well managed, the Nanjing government will not treat him unfairly!"

Zhu Jiahua nodded immediately and said, "Yes, I'll go talk to him right away."

"Young people are always full of drive. We had that when we were young, too. But when you reach a certain age and status, you realize that sometimes sacrificing your own family for the sake of the whole community is the true expression of love for the country and the people."

"Well, they don't see the country's difficulties, but only see their own difficulties. These capitalists are truly short-sighted."

obviously.

Until the country completely "stopped war" and the economy developed, those in power treated merchants as prey. It was a matter of whether to raise them up and then kill them, or to wipe them out en masse. Jardine Matheson and Swire quickly launched another price war, announcing 20% ​​price cuts on routes from Shanghai to Qingdao and Tianjin, and from Shanghai to Xiamen, Shantou, Hong Kong, and Guangzhou.

Public opinion was uproar.

"Imperialism is determined to destroy our Chinese industry. It's taking advantage of the China Merchants Group's illness to kill it!"

"Hasn't China Merchants Group already seen initial success in its reforms under the leadership of Mr. Chen Guangliang?"

"Chen Guangliang's reforms to the China Merchants Group only addressed the shortcomings of the company, but its financial problems remained severe. It's said that it had taken out a mortgage loan of US$2000 million from an American bank, equivalent to over million Australian dollars!"

"Oh my God, doesn't that mean the China Merchants Group is heavily in debt?"

"That's not the case. Jardine Matheson and Swire have the same idea."

While people were discussing the matter, some people were unwilling to be left alone.

Ichiro Koizumi, the Far East head of Japan's Nissin Shipping, also approached the bosses of Jardine Matheson and Swire to discuss joining the company.

In fact.

Since the September 918th Incident and the December 128th Incident, Nissin Shipping's operations on China's inland rivers have been met with strong resistance, with most of its flights suspended. Currently, only the Shanghai-Nanjing and Shanghai-Hankou (Hankou) routes are still in operation.

Of course, this only applies to inland rivers. Nissin also has coastal routes in China, especially routes from Shanghai to Yingkou, Dalian, etc.; it also includes routes from China to Southeast Asia, Japan, Taiwan, etc., where Nissin shipping occupies a large share.

"You two, we at Nissin are willing to lend you a helping hand. We will launch a price war on the inland river and completely defeat the China Merchants Group."

Although Du Baili and Shi Yueke knew that Nissin Company had very few inland routes and its business was also facing boycotts, they were naturally very happy to have a new ally join them at this time.

"Good," Du Baili said cheerfully, "Once China Merchants Group collapses, China Shipping will be completely finished. Whether it's coastal or inland waterways, it will all become the world of our foreign-funded shipping."

Perhaps this is the role of a country's "state-owned enterprises". With the support of the country, they can defend themselves against foreign investment.

If the China Merchants Steam Navigation Company were really dragged down, these great powers would all open champagne to celebrate.

Shi Yueke also said: "We welcome Nissin Company to join our 'overthrow China Merchants Group' campaign."

Koizumi Ichiro smiled and said, "We are the real friends, and China is just our delicacy!"

"Ha ha"

The imperialist intentions are known to everyone.

After Jardine Matheson and Swire announced the price cut, they soon spread unfavorable remarks about China Merchants Group, which attracted the attention of the American bank Citigroup.

Even the bosses of Jardine Matheson and Swire went to Citibank in person, hoping to persuade Citibank to recover the loan in advance to avoid the collapse of China Merchants Group and its inability to repay the debt.

Of course, these are just wishful thinking of Jardine Matheson and Swire. At this time, Americans only want to make money, and the same is true for China and Japan.

Although Citibank noticed the negative comments about China Merchants Group, it did not make a hasty decision. It only summoned China Merchants Group's general manager Chen Guangliang for a talk.

Citibank General Manager McKen asked directly, "Mr. Chen, have you seen the recent negative comments about China Merchants Group?"

China Merchants Group borrowed US$400 million from Citibank, but the collateral was the docks and properties in Shanghai, so McCann was relatively relieved.

It was only out of the bank's caution that he called Chen Guangliang for inquiries.

On the other hand, Chen Guangliang himself also mortgaged his assets in the Shanghai Stock Exchange to Citibank and borrowed US$180 million.

Therefore, the two of them are considered very familiar "friends".

Chen Guangliang then said, "Mr. McCann, I think you should understand that only when China Merchants Group's business improves would someone deliberately spread such negative public opinion. In the four months since I took over as General Manager of China Merchants Group, we have made many improvements, including... I think, as an excellent banker, you should understand that China Merchants Group's business will improve significantly this year."

McCann nodded. He had naturally noticed all this and said, "Well, I'm just asking a normal question and want to inform you that we will definitely support China Merchants Group."

Mortgaging the docks and properties themselves can also make him less worried.

Chen Guangliang immediately said, "Thank you for your support, Mr. McCann. Don't worry, our China Merchants Group will repay the debt on time. After all, this is a matter of national credibility."

"it is good"

After dispelling McCann's doubts, Chen Guangliang left Citibank.

In fact, Chen Guangliang's confidence did increase greatly at this time. The profit of China Merchants Steam Navigation Company this year would not be low. After all, just abolishing the "comprador system" could save 600,000 to 700,000 taels of silver.

Suppose that the profit of China Merchants Steam Navigation Company this year can exceed more than 200 million taels of silver, plus Song Zaiwen converted the US Boxer Indemnity of 105 million US dollars into more than million taels of silver and deposited it in the account of China Merchants Steam Navigation Company.

Such a large amount of silver is enough to replace most of the debt.

Next year (1934), assuming Chen Guangliang is still the general manager of China Merchants Steam Navigation Company, he will also promote the company's "transoceanic flights" and open long-distance ocean routes between China and the United States and China and Europe.

Ships were an easy thing to avoid risk with, even during the Anti-Japanese War in 1937; for example, a ship could be registered in Hong Kong and sold to the British.

In short, by the late 1930s, ships were absolutely hot commodities.

After the Citibank issue was resolved, Chen Guangliang also made targeted arrangements for Japan's Nissin Shipping - that is, to continue to launch a boycott.

Nissin Shipping itself is not a cause for concern. It has only two inland river routes that it has not withdrawn from. It is obviously a foolish dream for them to return to the market by lowering prices at this time.

Shipping is not a coal mine, it is a "necessity". Anyone who dares to take flights to Japan or use Japanese cargo ships to transport goods will inevitably be subject to huge social criticism.

Even the Nanjing government will send people to retaliate against such "traitors".

Therefore, Nissin's two inland shipping routes have ushered in a new round of boycotts, causing Nissin to lose more than it gained.

(End of this chapter)