Chapter 56: Conspiracy

“First, this year’s sugar price,” Third Master Zhu began, his voice low and steady. “We must push it down. Hard. As soon as their sugar firm opens its scales, we will set the price of each dan at one tael and five qian.”

A stunned silence fell over the room. The price was ludicrous. In the best of years, when sugar was plentiful, a dan still fetched two taels of silver. In years of poor harvest, it could rise to over four. To start at one tael and five qian, when a dan of coarse rice was selling for two taels, was madness. The cane farmers would riot.

“This year’s harvest is only average,” objected Feng Guangfeng, the owner of “Richangji.” “According to last year’s precedent, the price is two taels and five qian. We’ve been buying at that price for over half a month. To drop it so suddenly… we can’t explain it. We’ve been in this business for many years.” “Richangji” was a smaller firm, and Feng Guangfeng, not being from the Shantou-Guangzhou clique, was often looked down upon.

But his words resonated. Business was about long-term relationships. This move would create a permanent rift with the farmers.

Seeing their hesitation, Third Master Zhu sneered, “It’s fine. Everyone knows the South China Sugar Factory produces a lot of sugar. We’ll just say that because they are making so much, it’s not selling well elsewhere. The price has dropped.”

“Will that work?”

“Why not? If the farmers are willing to sell at this price, we’ll make a profit for nothing. Besides, we can’t be blamed for the drop in prices. Didn’t the South China Sugar Factory cause it? Every grievance has its source…” His voice grew softer, but his meaning was clear. Some secretly applauded, while others broke out in a cold sweat.

“Brilliant!” exclaimed the manager who had suggested dumping corpses. This way, they could deal a heavy blow without completely severing their ties with the South China Factory, leaving a path for reconciliation if needed.

“But there’s a risk,” the old man said, his voice laced with worry. “He will surely open his scales at the current market price. The market in Guangzhou is good. He wouldn’t lose money even if he raised the price to three taels per dan. Our price is low, his is high. Aren’t we just handing over all the supply to him?”

“No problem.” Third Master Zhu was confident. “In this prefecture of Leizhou, even in a normal year, the sugar output is over two hundred thousand dan. The South China Factory’s price is high, so all the sugar will naturally go to them. But think about it: even if he buys one-third of it, that’s at least one hundred thousand taels of silver. Where is he going to find so much ready cash? Besides, the world is so chaotic now. Does he dare to transport such a large sum of silver to Leizhou? When he runs out of money and wants to stop buying, it won’t be so easy. Who else in Leizhou has a large amount of ready cash besides us? We can squeeze him with interest rates. Even if we can’t crush him, we can make him lose so much that he’ll be spitting blood!”

The plan seemed feasible. To throw the entire output of twenty-one sugar firms at a single factory would surely choke them.

“We shouldn’t fear the one in ten thousand, but the ten thousand in one,” the old manager fretted. “What if he really dares to transport the silver? What if they already have it ready? It’s a small matter if we don’t receive any sugar this season; we’ll just earn less for one year. But I’m afraid our reputation will be ruined.”

The other managers wavered. Seeing the old man’s indecisiveness, Third Master Zhu said coldly, “If you’re going to do something, you can’t be afraid of this and that! In my opinion, it’s best to do nothing. Anyway, the South China Factory is buying, and we are also buying. We can always get some. If they want to ship the sugar out, let them.”

There was a hint of resignation in his words, but the more astute among them knew he had another move up his sleeve. They all pledged their compliance. Only then did Third Master Zhu continue:

“Second, from today onwards, when you all talk to outsiders, you should occasionally throw in some digs at South China. Understand? Don’t say bad things openly, but imply it. For example, that big iron roller, and that chimney… those are things we’ve never seen before. As the saying goes, ‘the abnormal is demonic’.”

The move was insidious, but these were not benevolent souls. They had done things like murder and arson before to protect their monopoly.

“Finally,” Third Master Zhu said, “every year, each firm has a ninety-eight percent discount. This year, one percent of that two percent discount must be handed over to the Haiyitang. It’s fine for me to work for everyone for free, but my subordinates need to be paid, and I need to spend money to inquire about things. The Haiyitang’s public account only has four or five hundred taels, which is not enough.”

The managers winced. The ninety-eight percent discount was originally a handling fee when the farmers consigned their sugar to the merchants. Later, though it was changed to a cash purchase, the bad practice was retained. It was a large profit for each firm. To give up one percent was a bitter pill to swallow.

“Don’t look so glum,” Third Master Zhu said. “Once this is done, all the sugar factory’s stock will be ours, and the sugar price will be smashed down to one tael and five qian. The profit in that will be huge. You’re still staring at this little bit of operating money. You can’t even do the math!”

And so the matter was settled. The managers each paid a sum of silver in advance to the Haiyitang’s public account. With the matter settled, everyone felt hungry and sat down to eat and drink.

Third Master Zhu ate little. He said he had matters at home and left with his young servant. His house and his firm were one and the same, only four or five shops away. He could handle business without ever stepping onto the street, passing through side doors that connected the sugar merchants’ houses, a closed community designed for mutual protection.

In this way, he passed through the back alleys and returned to his own residence. After a brief wash, he called for his steward. “Go, bring Zhao Jijiao to me,” he said, closing his eyes to rest. He had sent a capable assistant to inquire about the background of the South China Factory when the Qiwei Escort Agency was buying up land. He had just felt it was necessary to find out why an escort agency would buy these properties. He hadn’t expected this casual move to be the right one. He was secretly pleased with himself. Otherwise, if he were to send someone now, Guangzhou was over a thousand li away. It would take more than ten days for a round trip by boat.

Before going to the guild hall, he already knew the basic background of the South China Factory. The Qiwei Escort Agency had another owner behind it. As for who this owner was, his assistant couldn’t find out. But he had managed to get some information about Lü Yizhong’s letter. Lü Yizhong’s letter had a clear price tag; for one or two hundred taels, you could get one.

So, this owner was unlikely to be an official. He probably didn’t have much background in the government, though he was very rich. With this basic information, Third Master Zhu had a good idea of what to do next. His performance just now was an act for his colleagues, to pressure them to follow his plan.

“First glance, first glance, I suddenly saw a little maid like a fairy…” he hummed a little tune. The steward announced that Zhao Jijiao had arrived.

“Let him in.”

A man in his thirties entered. He was dressed neatly, but he couldn’t stand still, his head and body constantly moving, his eyes darting around. He was a local gangster leader. The Haiyitang gave him and his ruffians money and rice every month, partly to keep them from causing trouble, and partly so they could do dirty work when needed.

“Little Zhao, tomorrow, send all your men out onto the streets,” Third Master Zhu spoke slowly. “Tell them to spread the word like this…” He then recounted the script he had prepared.

“Got it all down?”

“I’ve got it all down!” Zhao Jijiao nodded.

“Here’s fifty taels of silver. Go and distribute it to them first!”

“Thank you, Master.”

“Also, choose a few of your more presentable men and have them wait. The South China Sugar Factory will probably be hiring assistants in the next few days. I want them to be ready to go to work at the factory at any time. Tell them to work hard for a month or two. When it’s over, I will reward them handsomely.”

“Hiring assistants requires a shop guarantee,” Zhao Jijiao said with some difficulty.

“No problem! I’ll take care of the shop guarantee. You just get the men ready and make them look sharp!”

“Yes, but I’ll still need some money for clothes and grooming…” Zhao Jijiao’s eyes darted around, trying to get more money.

Third Master Zhu snorted. “I haven’t even given you your reward yet. You can take it from this money first!”

Hearing that he had a reward coming, Zhao Jijiao’s spirits lifted. “Leave it to me and my brothers,” he said and left excitedly.

Watching him leave, Third Master Zhu still felt a little uneasy. He decided to send someone to Guangzhou again to investigate their background further.

“If they really have no background, I’ll just get rid of them! That sugar factory is quite nice,” a hint of greed appeared on his face.

The transmigrators at the South China Sugar Factory were busy preparing for the opening of their sugar firm. For ease of management, the firm was located at Nanmentang, where the factory was. The main gate was right next to the official road from Xuwen to Haian Street. Mei Lin not only built a new counting house but also organized the laborers to repair this section of the road and rebuild several dilapidated bridges. The common people were just curious about the road-building method of using oxen to drag large stone rollers back and forth.

The plaque for the sugar firm was inscribed by the county magistrate. His calligraphy was relatively cheap; it only cost thirty taels of silver, a few bottles of good wine, and a few bolts of Western cloth and brocade for his wife. As soon as the counting house was completed, the golden plaque was hung up with much fanfare. The couplets on the pillars on both sides were inscribed by a well-known local gentry. These were all like protective talismans. The transmigrators were also following the local customs.

To facilitate communication with the locals, Wen Tong hired a few local assistants to work at the counter and as weighers. He had been unable to find a sugar merchant’s manager, and the Wen brothers were too young. In the end, he had to ask Liao Dahua for help. He said that anyone who had been a manager would do. Liao Dahua recommended his cousin, Liao Daxing. This Liao Daxing had never been a manager, but he had worked as a senior assistant at the counter of a grain store in Haikang County for many years. He was good at dealing with people, and although his Mandarin was not very good, he spoke Cantonese well and understood the rules of business. Wen Tong knew that he couldn’t rely on these people to run the sugar firm—they were all amateurs. He had to be there himself. Fortunately, the sugar factory was running normally, and with Chen Tianxiong in charge of the equipment, he could focus more on the sugar firm’s business.

Liao Daxing, having just been promoted and hearing from his cousin that this owner was very wealthy and generous, worked very hard. Although the grain business was different from the sugar business, it also involved purchasing and transportation, and there were many similar rules. He handled all the affairs of the sugar firm, and Wen Tong found it much easier.

After some market research, Wen Tong and Liao Daxing decided to buy at the current market price of two taels and five qian on Haian Street, without raising the price, so as not to provoke the local sugar merchants.

“Get rid of this ninety-eight percent discount rule,” Wen Tong had a deep-seated hatred for such unwritten rules.

“Let’s not for now,” Chen Tianxiong advised. “Don’t make it too special, it’s not good.”

“I have a plan,” Chang Shide suddenly had an idea. “We can keep the ninety-eight percent discount rule. But we’ll take it from the people and use it for the people. It will lay the foundation for Old Wen’s future sugar cooperative.”

“What plan?”

Chang Shide’s plan was to use this two percent as a “common fund.” This fund would be used to provide loans and subsidies to future members of the sugar cooperative.

“…Those who sell sugar to us will have to pay the two percent, but if they don’t join us, they won’t be able to enjoy the loans and subsidies. People hate to lose out. It will be much easier for you to promote the sugar cooperative then.”

“Then do we have to explain it to the common people at the counter? Or should we hold a general meeting to explain it?”