Chapter 54: Sweet Harbor Storm - Intervention

“Good. I’ll have them build a dedicated courtyard for you at the sugar factory.”

“No need,” Bei Wei refused. “It’s too conspicuous, and we won’t be staying here long.”

“Alright. The Qiwei Escort Agency has inns in both Haikang and Xuwen. You can rest there. You can also stay at the various properties of the South China Sugar Factory, but the conditions are… average. I’ll arrange for someone to notify them.”

“No need. We’ll stay at inns along the way. We will try to avoid any association with the South China Sugar Factory.”

“Do we have any missions?” Chang Shide asked, his voice filled with an almost boyish excitement.

“No,” Bei Wei answered bluntly.

“The sugar factory has no specific mission,” Chen Tianxiong clarified, “just to cooperate with the operation. I will handle the specific matters. But I will still be the factory’s technician.”

Wen Tong was glad. He had no interest in intelligence work. There was still a mountain of work to be done at the factory.

“The Tang Monk Project is a long-term operation,” Chen Tianxiong said. “The next few years will be the preparation stage. How is your relationship with the local government?”

“Not bad, but not deep,” Wen Tong explained their recent dealings with the yamen. “In general, there isn’t much contact.”

“I think there will be more soon,” Chen Tianxiong said with a knowing smile. “Even a blind man can see you are making a fortune. There will be no shortage of trouble.”

“Yes, I’m worried about that too,” Wen Tong said. “Though the Qiwei Escort Agency has laid some groundwork for us, their roots are shallow. They may not be able to handle everything.”

“If it comes to it, we can just pay for peace,” Chang Shide suggested. “Give the officials some dry shares. A protective umbrella. Fortunately, in two years, Leizhou will be ours.”

“Do your best to drag the local officials into the water and form a community of interests.” This was the directive given by the Executive Committee to all transmigrators operating in Ming territory.

“That’s possible,” Wen Tong nodded. “But we still need to report the specific plan to the Executive Committee. Speaking of which, it’s too inconvenient here. We don’t even have a radio. Even a place like Yanchang Village has a 5W radio.”

“The Executive Committee will probably equip you with a radio soon,” Chen Tianxiong said. “Mass production is just around the corner. The glass factory has been experimenting with drawing glass tubes, and Dr. Zhong is already working on it.”

“Building radios?” Wen Tong was skeptical. “Isn’t that too high-tech?”

“He wants to build a lot of high-tech things: clocks, batteries, water-gas airships. I don’t think the airship is very reliable, but we can just listen to him brag.”

“I’ve argued with him about that airship,” Chang Shide said dismissively. “It’s completely unrealistic. Dr. Zhong has read too many books and is a bit idealistic.”

“If he can build it, he should first get us a vacuum pan and a centrifuge,” Wen Tong’s only thought was his sugar.

“It probably won’t be difficult for him. By the way, I heard that he wanted me to bring you a message: Xuwen is very rich in diatomaceous earth, even more so than Lingao. You can use it for filtering when making white sugar.”

“Really?” Wen Tong was energized. “Then I’ll have someone look for it. The efficiency of using yellow mud water is terrible. If we continue like this, the labor cost for a ton of white sugar will be too high.”

The price of raw sugar was much lower than white sugar. Processing it into white sugar was far more profitable. Wen Tong had been racking his brains to come up with a more efficient process. The raw sugar in the warehouse was piling up. In the past, the average yield of raw sugar per mu of sugarcane was about three dan. Now, with the increased juice extraction rate, the yield was over five dan. The fields under the South China Factory alone could produce 13,000 dan of raw sugar. Adding the processing fees, the warehouse was overflowing with over 20,000 dan. The white sugar workshop, working two shifts, 24 hours a day, produced only five or six dan.

As they were talking, Wen Xiu came to report: a pigeon from Guangzhou had arrived with a secret letter.

Chang Shide sent him out, took out a codebook, and began to decode. The others watched eagerly. A few minutes later, he said happily, “Zhang Xin wrote that we should ship out all the sugar in stock as soon as possible, including the raw sugar. The market is good. The price in Guangzhou is three taels and eight qian, and it looks like it will rise. He said if we can acquire more, we should. We can exchange it for silver in Guangzhou!”

“Great,” Wen Tong said enthusiastically. “I heard from Liao Dahua that the purchase price on Haian Street is only two taels and five qian!”

“Then we’ll buy it at three taels!” Everyone laughed. The feeling of making a huge profit was intoxicating.

“If he hadn’t written,” Wen Tong said with a smile, “I would have written to ask what to do with all this sugar. A few sugar merchants on Haian Street have approached us to buy our sugar. I hesitated. Fortunately, I didn’t sell. We would have lost a lot!”

“In that case,” Chang Shide said, “we’ll have to go to them to buy!”

“Out of the question,” Wen Tong scoffed. “They know the Guangzhou market better than we do.” He didn’t seem to have a good impression of the local merchants.

“Who cares? This place will be ours in the future,” Chang Shide said, opening the door and calling for Wen Xiu. “Go and ask Manager Liao to come here.”

For the past month, they had been trying to find a manager familiar with the sugar business to handle their external affairs. They had asked Liao Dahua to accompany them to Haian Street to see if any managers were willing to switch jobs, but to no avail. No one was willing to jump ship. Most were simply confused. “You are a sugar mill. What do you need a sugar merchant’s manager for?”

Thus, Liao Dahua became their only external agent. For convenience, he had moved into the courtyard of the South China Factory. It was less than two or three li from the county town, so he could easily handle matters at the escort agency’s branch.

Liao Dahua came to the study. Bei Wei, not wanting to be seen, hid in the side room. Wen Tong told him of their plan to purchase a large amount of raw sugar. He wanted him to set up a team. Even without a proper manager, they were determined to do it themselves.

But Liao Dahua shook his head. “Master, this is not appropriate.”

“What’s not appropriate?”

“Master, you do not know,” Liao Dahua said. “The sugar in Leizhou has always been purchased by the merchants on Haian Street.”

“He buys his, I buy mine. What does it have to do with him?”

But Chang Shide understood. “They have a monopoly, right?”

“Exactly,” Liao Dahua said. There were twenty-one sugar merchants on Haian Street, forming a guild called “Haiyitang.” All the sugar produced in Leizhou for export had to pass through their hands. The purchase price was decided by the guild each year. Outsiders who did not join could not engage in the business.

“So that’s how it is,” Wen Tong nodded. This kind of monopoly existed everywhere.

“That’s strange. Why can’t we get involved? On what grounds?” Chang Shide was unconvinced.

“This…” Liao Dahua had never considered the question. The monopoly had existed for decades, and everyone accepted it as the natural order of things. “Masters, you do not know. The cane farmers originally had no large ships and could not transport the sugar themselves. So they entrusted it to the merchants to sell on their behalf. The merchants would settle at ninety-eight percent, taking a two percent commission. Over time, because of the risks of sea transport—sinking, robbery, and the occasional embezzlement—it gradually became the current system of cash purchase. The merchants earn more, but the farmers are also willing. After all, they take on great risks.”

“So that’s how it is. It’s nothing,” Wen Tong said. “We can also take these risks. We’ll start preparing tomorrow and open the scales to buy sugar in a few days!”

Liao Dahua’s lips moved as if to protest further. “It’s just a little business,” Chang Shide said with a smile. “What’s the big deal? How about this: we’ll also give the Qiwei Escort Agency a two percent commission on the sugar we purchase.”

Two percent was not a small amount. It would be a great benefit to the agency, and he himself would get a considerable share. Thinking of the wealth and generosity of these Australian merchants, Liao Dahua’s courage grew. “Since the masters have made up their minds, I will do it. I know a little about the sugar business. I’ll go and prepare now!” He took his leave.

But Chen Tianxiong said, “Isn’t this a bit risky? Have you considered their counterattack?”

“It’s fine,” Wen Tong said. “I’ve been to Haian Street and met a few managers. The sugar merchants are all legitimate businesses. They manage the entire street, and it’s very orderly.”

Chen Tianxiong shook his head. “Old Wen, it’s not that I’m being nosy—this is your jurisdiction—but you should know: interest groups have always been ruthless in protecting their interests. Not selling sugar to them and shipping it out yourselves is already a taboo. Now you are also buying sugar. This conflict of interest is almost a matter of life and death.”

“Is it that exaggerated?” Wen Tong was skeptical.

“You’ve been around the block,” Chen Tianxiong said. “Do you really think the 17th century was a time of simple folk and honest living? Which of the evils of society hasn’t existed since ancient times? Merchants chase profits. I don’t need to recite Marx’s evaluation of capitalists to you, do I?”

“What do you think we should do?” Wen Tong thought he had a point. The idea that ancient people were simple and honest was a myth he had already shed.

Bei Wei rarely spoke, but he did now. “Chen Tianxiong’s point should be considered. What if the other side counterattacks?”

“Before our wings are fully grown, it’s best not to touch this cake,” Chen Tianxiong suggested.

“I don’t think we need to be so nervous,” Chang Shide said after a long pause. “The sugar merchants on Haian Street are just ordinary merchants. What can they do? At most, they have a better relationship with the yamen. We now have connections in Guangzhou, and we can talk to the Leizhou prefecture yamen and the Haikang and Xuwen county yamen. What can they do to me?”

After a round of discussion, Chen Tianxiong saw that their minds were made up. To say more would be to overstep his bounds. He only reminded them to be prepared. Bei Wei, bored by the discussion, looked at the growing pile of bagasse outside the courtyard wall. “What do you do with the by-products of sugar production?” he asked suddenly.

“There are many uses, but we need equipment,” Wen Tong explained. “I was thinking of reporting this to the Executive Committee. We need fermentation equipment and strains.” Strictly speaking, there was no waste in the sugar industry. Even the wastewater could be used.

By diluting the molasses and adding different strains of bacteria, they could produce alcohol, glycerin, acetone, butanol, citric acid, and yeast. Bagasse could be used to make paper and furfural. Sucrose wax could be extracted from the filter mud, and the rest could be used as fertilizer. The head and tail of the sugarcane, with their low sugar content, could be used to brew wine or extract alcohol.

“These are relatively simple recycling methods,” Wen Tong said. “Bagasse can also be used to recover aconitic acid. The extent to which we can utilize it depends on how many strains and chemical products we have, and also on the necessary equipment.”

“The things that the South China Factory can use on the spot are probably using molasses to make alcohol and using bagasse to make paper, right?” Chang Shide said.

“Making paper is impossible,” Wen Tong had recently investigated the boiler’s fuel situation. “All the bagasse is barely enough to fuel the fire.”

“That’s such a waste.”

“Then we’ll have to buy coal. To be honest, I’d rather use coal. The moisture content of the bagasse is too high. If it weren’t for the cheap labor, the cost of drying the bagasse would be enough to bankrupt us. I’m now doubting whether the bagasse is even enough to last until the end of the harvest season.”

Buying coal was possible. It wasn’t far to buy coal from Hon Gai in Vietnam. And Gaozhou, not far from Leizhou, had a large coal mining area, now the Maoming mining area. It was only sporadically mined in the Ming Dynasty but could be a supplementary fuel source. At least it was much closer than shipping coal from Guangzhou.

“Then let’s set up a coal shop,” Chang Shide’s mind worked quickly. “Few people here use coal; most still burn firewood. If we introduce coal for our own use, we might even be able to do some business.”

“Sure. It won’t cost much. We can just have Qiwei do it.”