Chapter 155: Customs

“Aren’t these goods for the Runshi Tang?” Ma Jia asked.

“They are for the Ministry of Health. The Runshi Tang is now a joint venture with the Ministry of Health,” Liu San said righteously. “Are you going to tax goods that are so vital to the people’s health and well-being?”

“I haven’t heard of it.” Ma Jia shook his head, and so did Ji An. Although the joint venture between the Ministry of Health and the Runshi Tang had been approved by the Executive Committee and filed with the Foreign Affairs and Commerce Committee, no formal notice had been sent to the various departments. The customs office was naturally unaware.

“You can call the Foreign Commerce Committee. We’ve filed with them.”

A call was made, and the filing was confirmed. However, a dispute arose as to whether a joint venture was entirely tax-exempt. The Executive Committee had not yet issued any specific instructions on this matter. However, the various enterprises under the Women’s Cooperative were currently paying business tax and income tax. Ma Jia argued that, based on this precedent, it could be assumed that the Executive Committee did not exempt enterprises with private shares from taxation. Since the Runshi Tang was half-owned by a native, it should naturally be subject to import duties.

Liu San, of course, refused. He argued that although half of the ownership and profits of the goods belonged to Yang Shixiang, the Runshi Tang essentially served the transmigrator group, and taxing it would dampen the merchants’ enthusiasm for business.

Ji An had a third opinion. He felt that since the Runshi Tang was a joint venture with the transmigrator group and the general medicinal herbs were for ensuring public health, they should be tax-exempt. However, luxury items like ginseng and deer antler, which were pure tonics, should be subject to a high tariff. He suggested levying a higher tax on these items.

The three men had three different opinions and argued heatedly. Fortunately, Yang Shixiang had gone to supervise the unloading of the goods and did not witness the dispute.

Finally, after some negotiation and with the coordination of the Executive Committee, it was decided to prioritize the favorable treatment of the merchant. All customs duties were waived, and the entire shipment of medicinal herbs was allowed to pass. However, at Ma Jia’s insistence, the owner of the goods had to pay the loading and unloading fees. The transmigrators’ dockworkers charged for their services to private individuals.

Although Ma Jia signed off on the release, he was wary of Liu San’s actions. Recently, some unhealthy trends had emerged within the transmigrator group. It had started with the navy setting up a private club, which the army had immediately followed. Now, every department was engaged in its own little schemes. Was this so-called joint venture just a “third-sector enterprise” for the Ministry of Health to generate income?

Yang Shixiang, however, was unconcerned. He saw nothing wrong with paying for the loading and unloading.

After the goods were unloaded, he sent a servant to inquire about available porters. Liu San said, “No need to go to such trouble. There’s an ox-cart going to Bairen City at noon. Once we’re there, it’s easy to transport the goods anywhere.”

To facilitate the transport of goods before the railway connected the two places, the transportation department had started an ox-cart freight service between Bairen City and Bopu. This service was made possible by a large number of oxen brought from the Changhua Fort. The fifty-plus oxen that Cui Yunhong and his team had acquired from the Li areas were being transported back to Lin’gao in batches.

Compared to the delicate and scarce horses, oxen were hardy and numerous. The vehicle factory quickly modified its four-wheeled freight wagons, turning them into four-wheeled ox-carts pulled by two oxen. These slow-moving but high-capacity carts immediately became the mainstay of road transport. If not for the persistent problem of wheel manufacturing, the number of ox-carts could have been even greater.

The medicinal herbs were transported to Lin’gao County. Liu San had originally planned to take them to the pharmaceutical factory, where there were ready-made facilities, equipment, convenient access to water and electricity, and many modern processing machines. Of course, the original traditional Chinese medicine workshop was small and its production capacity was insufficient, but expansion would not be difficult.

However, since the acquisition had changed from a full buyout to a joint venture, the issue of personnel reliability arose. The pharmaceutical factory was a sensitive department, and bringing in a dozen or so native workers would pose a security risk.

After disembarking, Liu San first discussed the matter with Shi Niaoren over the phone. Shi Niaoren agreed that it was not appropriate to place them in the pharmaceutical factory.

“Then what should we do? Transport them back to the county seat?”

“For now, that’s probably the only option,” Shi Niaoren said. “The Runshi Tang is not a wholly-owned enterprise of ours. Your Manager Yang would have the right to enter your traditional Chinese medicine workshop at any time, wouldn’t he?”

“That’s a problem. But if we produce in the county seat, water and electricity will be inconvenient, and many machines and equipment won’t be usable.”

In terms of facilities, the Runshi Tang was actually quite good. The pharmacy had separate warehouses for crude and fine goods with good storage conditions, a spacious courtyard with enough area for drug manufacturing, and enough empty rooms to accommodate the dozen or so new clerks.

“It will have to do. After all, traditional Chinese patent medicines have been made by hand for hundreds of years. It’s not a problem without running water or electricity. For now, let’s keep the production at the Runshi Tang. We can think of a solution when the scale expands.”

“That will be very soon,” Liu San warned him. He had no doubt that the sales of the Plague-Averting Powder and the Marching Powder in Guangdong would increase dramatically before long, and by then, manual production in the county seat would be out of the question.

“Mo Xiao’an and the others recently submitted a new proposal at the Executive Committee meeting. It will probably be passed soon,” Shi Niaoren said.

The proposal was to create a “Private Enterprise Park” outside Bairen City in the light industrial zone, specifically to attract private capital and technology. The transmigrators would provide the land and the basic infrastructure. If necessary, they would also provide some advanced technology and management models, while the production and operation would be handled by private capital.

This model could attract some merchants from Lin’gao, Qiongzhou, and even Guangdong to invest in industry. These industries would mostly be light industries, without critical technology, and the transmigrators would provide the technical equipment and qualified industrial workers.

“Is there that much private capital in Lin’gao?” someone had objected at the meeting.

“Not in Lin’gao, but that doesn’t mean there isn’t on the mainland,” said Wen Desi, who supported the proposal. “We need to be a model of stability and prosperity, and then private capital from the mainland will naturally come here to invest for safety.” He thought for a moment. “To put it bluntly, we want to be a safe haven for the private capital of the Ming dynasty.”

The chaotic times of the late Ming dynasty were about to begin, and many wealthy people would flee. Not just the wealthy, but also those from moderately well-off families who relied on their skills or knowledge to make a living. The transmigrators were targeting these people. Bringing in refugees was for providing labor and soldiers; attracting these people would bring wealth, technology, and knowledge.

“Isn’t that a good method?” Shi Niaoren said. “It’s still under heated discussion. Once it’s passed and your scale has grown, you can invest in building a factory in this private enterprise park and just open a traditional Chinese patent medicine factory.”

So, all the medicinal herbs were transported to Lin’gao County. Yang Shixiang gathered Liu Benshan and the clerks and announced that from that day on, Liu San would be the owner of the business. No one had any objections.

That night, Liu San stayed at the Runshi Tang. The shop was a four-in-one building, combining a residence, a shop, a workshop, and a warehouse. Yang Shixiang hosted a family dinner, with his wife personally cooking. At the dinner table, he called his wife and children to meet their new “uncle.” From then on, they were one family. The family’s serious attitude made Liu San, who only saw the sworn brotherhood as a means to an end, feel quite uncomfortable.

Liu San laid out his ideas. He pointed out that the foot traffic in the county seat was dwindling, and business was getting worse by the day. They should open a branch at the East Gate Market to serve the people who went there.

“You are right, worthy brother,” Yang Shixiang nodded. “I’ve thought about it too, but opening a branch is not something that can be done in a hurry. Buying land and building a shop costs money. And a pharmacy building is not like an ordinary one; it needs to be tall to be well-ventilated and dry, and the materials must be of the best quality. With my resources, I can’t afford it right now.”

Liu San was about to say, “I’ll cover the cost,” but then he remembered that they were now partners. If he invested more money, how would the shares be divided? So, he held his tongue. He thought for a moment.

“I think there’s a way to do it with less money.”

“Oh? What is it, brother?” Yang Shixiang was now completely convinced of his sworn brother’s wisdom.

“You probably know that I work at the Australians’ medical bureau.”

“I know a little,” Yang Shixiang said. “To be honest, brother, I’ve only been to the East Gate Market once since you all arrived.”

“The medical bureau is preparing to provide medical services throughout the county,” Liu San explained the Ministry of Health’s plan. “The first clinic is planned to be opened at the East Gate Market, and the building is already there. We can set up our branch in that clinic.”

They could send two or three clerks with some common medicines, hang up a sign, and start doing business, treating patients and selling medicine at the same time.

“Would the building be suitable?” Yang Shixiang knew the Australians’ style of building—small footprint, but many floors. And this trend had become more and more pronounced recently; he had heard they were even building four-story buildings.

“They can practice medicine upstairs, and we can sell medicine downstairs. What’s wrong with that?” Liu San said.

“But there would be no place for processing and decocting herbs…”

“We can still do that at the main shop. The branch doesn’t need to stock a lot of medicine, just some of the common ones,” Liu San said. “At worst, we can just go back to the county seat to get more. It’s not that far.”

Yang Shixiang agreed. They decided that they would each hang a sign at the entrance of the clinic. The doctors would be sent by the Australians, and the Runshi Tang would pay a certain amount of rent to the Ministry of Health each month, which could be paid in kind with traditional Chinese patent medicines.

“Once we’ve delivered a few shipments, we’ll have money,” Liu San said. “Then we can build our own large shop.”

“I hope your words come true, brother.”