Chapter 311: Acquiring Dachang
Liao Daxing was summoned immediately, and Chen Tianxiong explained the arrangements in full. Liao Daxing said, "The Masters are truly thorough. Shopkeeper Feng would surely be grateful, knowing this in the netherworld. However, there is one point the Masters may have overlooked—"
In any merchant family, the head of the household managed all financial affairs. When that head died, all debts—both owed and owing—had to be cleared and settled immediately. This involved substantial sums. At such a time, collecting debts proved extremely difficult, while creditors descended the moment they heard the news. Cash flow crises were inevitable, often forcing the sale of family property at desperate prices.
Many businesses appeared prosperous while the patriarch lived, but the moment he died suddenly, all credit evaporated with him. By the time the funeral concluded, the family had slid into ruin.
"Consider the warehouse receipts Shopkeeper Feng left behind. The orphan and widow won't realize anything close to the 3.8 taels per shi he was promised. Most likely they'll be forced to sell at a discount to other sugar firms. If the buyer has some conscience, he might offer 2.5 taels. If greed blinds him, 1.7 or 1.8 is considered generous!"
"That corrupt?" Everyone was startled. Did professional loyalty count for nothing?
"It isn't corruption—it's simply how things have always been."
"In that case, send the family three hundred taels as a condolence gift. And—" Chang Shide considered briefly. "The account settlement will be handled by someone sent by the Guild, to discourage improper thoughts. If cash advances are needed for settlement, South China Sugar will provide them."
Liao Daxing nodded. "The Master's thinking is thorough. I'll arrange it immediately. Only—regarding who should represent the Guild—"
"Send your brother." Chang Shide had Liao Diahua in mind. The man came from a merchant background and was no stranger to auditing ledgers. "He's the branch manager of Qiwei Escort Bureau. I'll give him the additional title of Guild Executive—no conflict of interest, but legitimate authority to intervene."
So it was settled. Under South China Sugar's forceful intervention, every sugar firm that had been eyeing Richangji withdrew its predatory hands.
The Sugar Industry Guild's first action demonstrated its distinctive character. Many observers recognized what lay behind the decision: the new guild genuinely protected everyone's interests. Helping orphans and widows yielded no immediate returns—yet they had done it anyway.
Using this incident as an opening, Chang Shide launched sweeping reforms of the old trade guild structure.
Every sugar firm participating in the Sugar Industry Guild would hold a director position and participate in deliberations. Daily affairs would be managed by a newly established "Standing Committee" comprising five Standing Executives, each responsible for specific functions, led by a "Secretary-General"—a role naturally assumed by Chang Shide.
Operating expenses would be covered by guild dues, shared proportionally according to each firm's capital. The total annual assessment was set at ten thousand taels.
The most visible change was the introduction of a completely modern financial system, ensuring the destination of every sum was transparent and accountable. The clarity of this system caused considerable stir among the guild directors.
For Chang Shide and his colleagues, this structure was preparation for a future joint-stock company. Once locals grew accustomed to the transmigrators' business models and concepts, forming the Leizhou Sugar Industry Joint-Stock Company would follow naturally. Then they would no longer require financial transfusions from Guangzhou; they could openly leverage the capital of these sugar merchants for operations.
To accelerate acquisition speed, Wen Tong seconded large numbers of skilled clerks from the various sugar firms through the Guild to assist South China Sugar. Wages and provisions during this period were entirely South China Sugar's expense.
"Although there are a thousand things demanding attention, sugar shipments cannot pause for a single day," Wen Tong said. "Don't forget—the Guangzhou Station borrowed at usurious rates on our behalf. The longer this drags on, the more disadvantageous our position."
"Mm. But we promised these merchants 3.8 taels. What if Guangzhou can't sell at that price? We may dominate Leizhou sugar sales, but if demand is weak, we're helpless."
"In Guangzhou, last week's market price had already reached 3.95 taels. The British are willing to pay four per shi. The price won't fall in the near term."
"There's also the Vietnam trade." Chang Shide spoke with confidence. "Wu Yujia has no silver there, but he has rice in abundance. We'll exchange for rice, then negotiate with Boss Zhu of Dachang."
Bringing Dachang Grain Firm in as a partner had been Chang Shide's idea. In his official communication to Lingao, he had argued: though South China Sugar's opening a wholly owned rice firm would yield far higher profits, they lacked experienced, reliable managers to run it—that was point one. Second, South China Sugar was already notorious in Leizhou. If, after securing the sugar industry, they openly intervened in the rice trade, they would inevitably frighten the local business community into boycotts. Not all money could be earned in one stroke; winning hearts mattered more.
Dachang Grain Firm had been the local merchant most friendly to South China Sugar from the beginning—not because Boss Zhu Fusheng possessed any special foresight, but because his commercial instincts were sharper than his rivals', and his capital base was the largest. When the immigrants organized by South China Sugar first arrived, he had scented opportunity and come to sell grain, offering excellent terms: South China Sugar could draw grain at any time, settle accounts at the three festivals, and enjoy promotions such as one shi free for every twenty purchased. This had solved Wen Tong's headache over organizing large-scale grain supplies.
To retain this major client, Zhu Fusheng had done his utmost to satisfy South China Sugar's every request, and had contributed significantly during their confrontation with the Haiyi Guild—though he had selfish motives as well, since South China Sugar still owed him several thousand taels on open account.
With such a foundation of trust, cooperation would be relatively straightforward. Moreover, Liao Daxing himself had begun his career as a clerk at Dachang, making discussions even more convenient.
Yet Liao Daxing's first approach returned in failure.
Chang Shide frowned. "Why didn't it work?"
"Boss Zhu's family is having domestic troubles," Liao Daxing explained. "His mood seemed off. He only said he was interested but couldn't make the decision yet. Said to wait and see." With domestic troubles preoccupying him, naturally he had no appetite for discussing partnerships.
"The first wife beating the mistress?" Wen Tong asked, curious.
Liao Daxing didn't recognize the term Er Nai, but understood the meaning. He shook his head. "No—Boss Zhu has only one wife. From what I could gather, it sounds like a dispute among relatives over the grain firm."
"I'll have someone investigate immediately," Chen Tianxiong said.
The next day, he reported as follows: First, Dachang Grain Firm was organized as a traditional Chinese joint-stock enterprise. The shares totaled twenty-one and a half, originally valued at one thousand taels each. Second, Dachang's shareholders were essentially Zhu family clansmen or relatives—aunts, uncles, and the like. Third, the recent domestic unrest stemmed from clansmen complaining that dividends were too low. Fourth, Dachang's operational condition was actually quite healthy.
"Zhu Fusheng's headache arises from exactly this," Chen Tianxiong explained. "His clansmen lack ambition; they all rely on this rice firm. They harass him every few days." Their demands: either increase bonus dividends, or stuff their layabout offspring into positions where they could draw salaries for doing nothing.
"Actually, the returns for Dachang shareholders over the years have been excellent. Annual bonuses run to five or six thousand taels. One share earns around two hundred taels—"
"Wait—it should be two hundred thirty taels per share," Chang Shide corrected.
"Dividends are distributed based on twenty-three shares. One and a half shares are labor shares for the shopkeeper and all the clerks."
"That return is considered quite good, isn't it?" Wen Tong recalled Yu Eshui mentioning that a middle-income family of four or five could live comfortably on fifty taels per year.
Chen Tianxiong nodded. "It is. But human hearts are insatiable." He turned a page in his notebook. "I investigated the shareholder structure. Boss Zhu himself owns eleven shares. The remaining ten and a half are divided among over a dozen large and small shareholders. The smallest holding is half a share."
It was easy to imagine: even if Boss Zhu welcomed South China Sugar's investment, the minor shareholders wouldn't want to surrender their stakes. With Dachang's returns so attractive, they would want larger portions, not smaller ones. Why would they be willing to sell?
"This is somewhat thorny." Wen Tong scratched his head.
Chang Shide remained confident. "It might have been difficult before. But since we finished Zhu An, we face no obstacles in whatever we undertake. I'd like to see whose gall is big enough to resist."
"Though that approach would be easy, it would damage our reputation." Wen Tong paused. "I have an idea—but we need to tip off Old Zhu in advance. Like this—"
Before long, a terrifying rumor swept through the streets and alleys of Xuwen County: South China Sugar is about to open a rice firm!
The news terrified grain merchants across Xuwen and beyond. The Rice Industry Guild descended into chaos; the duty executive and major rice firm bosses all rushed to pay calls, attempting to glean information from Wen Tong.
Wen Tong's response was categorical: No. South China Sugar has no plans to open a rice firm itself. There is no such intention.
But the street gossip only intensified—these rumors were all spread by Xiao Zhanfeng. What South China Sugar's next target might be became the hottest topic among Xuwen's common folk.
Alarming signals multiplied: strange flat-bottomed ships delivered three thousand shi of rice at once, unloading at Hai'an Street. Manager Wen was surveying wasteland everywhere, inquiring about land prices. Liao Daxing was making rounds of the teahouses where rice industry clerks gathered, asking whether any experienced hands were looking for work...
All of this pointed to one conclusion: South China Sugar's entry into the rice trade was a certainty. The grain industry fell into gloom. They have money, they have power, they aren't afraid of trouble. If they actually open, what room will be left for us?
In this climate of tension and uncertainty, agents directed by Chang Shide easily purchased ten and a half shares from Dachang's minor shareholders at eighteen hundred taels per share—instantly becoming Dachang's second-largest shareholder.
With shares in hand, the talk of opening a rice firm naturally evaporated. Wen Tong personally visited the Rice Industry Guild to clarify the rumors, solemnly announcing: South China Sugar will not open a rice firm.
Once this news spread, the rice bosses and clerks breathed sighs of relief. Those who had sold their shares naturally beat their chests and stamped their feet—but the shares could not be bought back.
The silver for this acquisition came from Boss Zhu himself. As compensation, South China Sugar would supply Dachang Grain Firm with twenty thousand shi of brown rice at a discounted CIF price of one tael per shi.
Dachang Grain Firm would continue under Boss Zhu's management. And Boss Zhu was delighted. He had forever rid himself of his insatiably greedy relatives and clansmen, and gained a cheap, reliable supply source. The moment the share transfer contract was signed, South China Sugar became his primary supplier—currently providing rice at a CIF price of 1.2 taels per shi, roughly equal to his previous acquisition cost but eliminating transportation expenses and transit risks. Extremely profitable.
"It doesn't matter if we let Boss Zhu of Dachang earn a bit. Let him enjoy counting his silver for now. We can simply collect more personal income tax from him later."
"And consumption tax. Mistress tax. Servant tax..." Chang Shide laughed. "Finally, slap on a property tax. Long live the Transmigration State's revenue system!"
"Old Zhu is full of energy. He says with such stable, cheap supplies, he can really spread his wings. He's planning to expand his branch offices." Wen Tong smiled. "We should support him, too. Cash-crop cultivation in Guangdong has absorbed significant acreage, already affecting grain production. The grain trade has enormous potential."
Chang Shide nodded. "Although Leizhou has sugar, it also suffers from sugar. Prices for everything are climbing. We need not only to extract the financial benefits of sugar but also to import more daily necessities to withdraw silver from circulation and curb inflation." He thought for a moment. "I wonder if Indian cotton cloth would sell well here."
"Sources of goods can be organized. We just need to report the demand," Wen Tong said. "I want to buy up all the land near the South Gate Refinery to build shops for rent. The market here will only improve."
The group discussed further before dispersing. Wen Tong returned to his quarters and called for Ah Zhu.
"Go take a bath." This was his code for summoning her to bed. Ah Zhu, who had not been visited by the master for many days, had grown somewhat anxious. Hearing his order, her heart leapt with joy, and she hurried off to bathe.
That night, Wen Tong—deprived of intimacy for days by the crush of affairs—was both vigorous and relentless. As he surged forward, he found himself reliving the scene in the Haiyi Guild hall: composed, commanding, unflappable. A litany of flattering adjectives surfaced in his mind, and he felt suffused with vitality.
When the clouds finally scattered and the rain ceased, Wen Tong went limp, on the verge of sleep. Ah Zhu nestled against him.
"Master, Ah Zhu begs a favor of you."
"What is it?" Wen Tong asked carelessly.
"Ah Zhu has a sister who also came from a fishing family in the past—"
"Did she turn pirate later?" Wen Tong recalled her background and teased. He didn't notice Ah Zhu's expression flicker. She forced a smile.
"Master jests. Her family was poor, so she was sold into a wealthy household as a maid when she was young. Recently she's found herself with nowhere to go and hopes to find a new master to serve. She has good looks, a good temper, and is skilled at needlework..."
(End of Chapter)