Chapter 44: Lin Quan'an's New Business

If things continued this way, he would have to be content with being a sedentary merchant in Dongmen Market, selling goods from the north and south of the mainland. Of course, the life of a wealthy man was not bad. However, for an ambitious person like Lin Quan’an, how could he be content with such a small situation?

Business also requires innovation and change!

Just as he was thinking this, someone walked into the counter room. Lin Quan’an opened his eyes and recognized his neighbor and tenant, Lin Li. Lin Li was a “Hoklo” like him, and they were from the same village, with some distant kinship. They had come to Lingao on the same boat to make a living. The dozens of mu of garden land and paddy fields that Lin Quan’an had bought in the countryside were rented out to him.

Lin Li used to be a peddler like him. After he succeeded in doing business with the Australians, some adventurous peddlers followed in his footsteps to purchase vegetables, pigs, and sheep for the Australians. However, after Lin Li made a little money, he bought more than twenty mu of paddy fields, built a house, and brought his wife and family to Lingao to live by farming.

A family living on a dozen mu of land was of course tight. After Lin Quan’an became rich, he simply rented out his own garden land to him as well.

Lin Li bowed. He was carrying a basket in his hand, with eggs carefully wrapped in straw ropes inside. Two chickens, with their feet tied, were struggling beside his feet.

“Old Lin, is that you?” he said amiably. Lin Li was his old partner. Although he had later stopped doing business and switched to farming, he was still a friend from his poor days. “How have you been lately? This spring has been good, hasn’t it?”

“Good, good, thanks to you, Master,” Lin Li said, looking at the “Master” before him with a mixture of envy and regret. This “Master,” three years ago, was just like him, wearing local homespun clothes with thick patches on the shoulders, a tattered straw hat that others didn’t want, and carrying a pole for dozens of li to sell goods and buy local products from village to village. In less than three years, the difference in their status was like heaven and earth.

If he hadn’t bought land and built a house back then, and had continued to do business with him, his family fortune would probably not be so small. At least this old partner still had some sentiment. Not only did he rent out the garden land to him, but he also hardly collected any other rent besides asking him to supply daily firewood, vegetables, chickens, ducks, and rice. Life was still manageable.

Thinking of this, he sighed silently—he had been foolish at the time, always thinking that the Australians wouldn’t stay long. It was proper to earn some money and buy land to build a house for stability. He hadn’t expected the Australians’ situation to get bigger and bigger.

Lin Quan’an knew what he was thinking. He coughed, said a word of thanks, and then began to talk about business.

“Are the workers all ready? Can our work be finished in three nights?”

“Everything is ready. There are enough workers—myself, my wife, and my eldest son, who is fourteen this year and can do some odd jobs.” He blinked. “Master, do we really have to do this?”

“Of course,” Lin Quan’an said politely and kindly. “It’s better to be safe than sorry. The situation in Lingao is still unclear.”

He added another instruction, “Just do it at night. Don’t do it during the day.”

“During the day, no one walks past my courtyard—it’s very deserted there!”

“It’s better to be careful,” Lin Quan’an said.

The task Lin Quan’an had instructed Lin Li to prepare for was to dig a cellar in his courtyard—of course, he was not hiding gold and silver treasures in this cellar. Lin Li was not yet trusted to that extent. What he was hiding was dry grain, salted vegetables, and cured meat. Ten shi of rice, a jar of salted vegetables, and a few cured pork legs. Enough to eat for several months.

Besides Lin Li’s place, he had also made similar arrangements in several other places. This was so that if the government troops came to attack and the whole county was in chaos, he would have a place to hide.

Lin Quan’an felt that with the Australians’ strength, the government troops would probably not be able to win. But once the war reached a stalemate, life for the common people would be very difficult, and a rich man like him would definitely become a target for all sides. If Lingao fell into chaos, he would take his family and hide in these few places, relying on these things to get by for a few months, and then re-emerge when the situation became clear.

As for his large fortune, he had already found a suitable place for it. If there was any trouble, it could be hidden without a trace.

In the past few years, he had quietly bought several hundred mu of land in the neighboring county, which were now all rented out. If he really couldn’t make it in Lingao, he could still escape to the neighboring county and be a small landlord.

In short, Lin Quan’an’s plan was “a cunning rabbit has three burrows.”

After sending Lin Li away, Lin Quan’an began to consider another matter. Last night, Chief Xiong had suddenly come to the Dongmen Market Business Association and asked to see him by name.

Along with Chief Xiong was another big chief. This person’s surname was Jiang, and his official title was said to be “Bureau Chief.” Lin Quan’an had some understanding of the Australians’ bureaucratic system. He knew that the highest were the Executive Committee members, then the People’s Commissars or Ministers. Anyone called a bureau chief or director was a step lower. A chief without a hat was a commoner—the Australians had a nice term for it, called a council member—although they were neither old nor round.

Jiang Shan inquired about his business situation, asked him what difficulties he had, and what help he needed. Lin Quan’an talked to him about his recent situation and his current circumstances—he had been supported by the Australians from the beginning and was convinced that he was still useful to them. Otherwise, there would be no need to talk to him like this.

“Doing business on Hainan Island, how big can the market be?” Bureau Chief Jiang said. “The proper way is to go to the mainland.”

This Bureau Chief Jiang then proposed a rather tempting idea: the Australians intended to support him in doing business on the mainland, opening up a firm, and giving him various preferential treatment in terms of capital and goods. They would even seek official support for him. The premise was that he must completely obey the Australians’ command.

Lin Quan’an was puzzled by this request. Making money in business was of course good, but why did he have to be the one to come forward? He had no power to rely on on the mainland—if he had, he wouldn’t have left his family behind and come to Lingao alone as a vagrant farmer.

“We are not people of the Great Ming. Our appearance and speech are quite different. With you coming forward, it will save a lot of trouble,” Jiang Shan explained.

This explanation was reasonable, but Lin Quan’an had a vague feeling that things were not that simple.

Jiang Shan proposed that he come forward to establish a business on the mainland dealing in goods from the north and south—this was a big business in the commercial field of the Great Ming. Not only did it require a large amount of circulating funds to purchase goods from all over the country throughout the year, but it also required transporting various local products back and forth between the north and south every year. It involved a lot of dealings with porters, boatmen, innkeepers, and escort agencies. It was not a business that could be handled by a merchant without great ability and connections.

Naturally, the profits were also high. The business of goods from the north and south had “two-way profits.” The principle was not to travel empty. Southern goods were transported to the north, and northern goods were sold in the south. One trip meant double the profit.

Lin Quan’an’s business had grown in the past few years, and his horizons had broadened a lot. He had also learned a lot about various businesses. He estimated that to operate a business of goods from the north and south, he would need to invest at least fifty thousand taels of silver.

He could certainly come up with the silver, but that was almost all his assets. If he failed, it would be difficult to make a comeback. Lin Quan’an knew that he was a “hero made by the times.” He had just seized an opportunity and used it well. If he failed this time, it would be hard to say if he would have such a good opportunity again.

Jiang Shan did not ask for his answer at the time, but asked him to go back and “think it over carefully.”

“I will pay you a visit tomorrow,” Chief Jiang said with a smile. “I believe Proprietor Lin will not miss such a good opportunity.”

If he agreed, this opportunity was indeed good. He had originally wanted to go to the mainland, but was afraid he had no backing. Now with the support of the Australians, this concern could be lessened. But how long could the Australians stay in Lingao?

For this matter, he had tossed and turned in bed all night yesterday, but still couldn’t make up his mind.

Lin Quan’an was no longer the Lin Quan’an of the past. In the past, he was a single man and was not afraid of anything. Now he had a family and a business, and he had begun to be cautious.

“Do it!” he finally made up his mind.

If he hadn’t taken the risk back then and carried a load of vegetables to sell at Bairen Beach, if he hadn’t acted as a guide for the Australians to Gou’s village, how could he have the family fortune he had today? Lin Li had also done business with the Australians back then—he had quit while he was ahead. Now he was reduced to a tenant, living on his leftovers.

If he didn’t seize this opportunity, he would just be a more comfortable Lin Li in the future! Having made up his mind, he sent someone to the cooperative restaurant to book a table for a banquet, waiting for this Chief Jiang to come and talk business.

Unexpectedly, it was not just Jiang Shan who came in the afternoon. His old acquaintance Xiong Buyou, and another council member he didn’t know—he introduced himself as Si Kaide—came together.

They seemed to have expected that he would agree to this business venture.

“Three years ago, when we first arrived in Lingao, we were red-bearded, green-whiskered, man-eating monsters, yet you dared to carry a load of vegetables to our door to sell. Do you not have the guts to do business on the mainland now?” Xiong Buyou said with a smile.

The cooperation with the Australians went very smoothly. The two sides agreed to jointly establish a new firm named “Wanyou.” The head office of this firm would not be in Lingao; the specific location was to be determined. It would use the convenience of the canal to transport goods from the north and south.

The capital of “Wanyou” was set at one hundred thousand taels, calculated in silver. Lin Quan’an would invest fifty thousand taels, accounting for 45% of the shares, and the Australians would invest fifty thousand taels, accounting for 51%—the extra 6% was as a reward for the various logistical and security support provided by the transmigrator group. The other 4% would be official shares. The profits distributed would be used for employee welfare and entertainment expenses.

The two sides agreed that all investment funds would be deposited into the company’s account at Delong Bank within one month. All future monetary transactions would be conducted through Delong’s bills. This method was of course convenient and safe. But for the transmigrator group, it was equivalent to a one-time interest-free recovery of fifty thousand taels of silver. As for the transmigrator group’s investment, it was just a matter of bookkeeping.

In terms of management, Lin Quan’an would serve as the manager and shopkeeper, and a council member would serve as the general manager. The personnel and financial power would be in the hands of the council member. Lin Quan’an knew that in this business, he was mostly just a figurehead. He might be needed to come forward for socializing at times. So he did not argue much about this. Anyway, the Australians’ ability to make money was only greater than his, not smaller. And the other party had promised “guaranteed principal and dividends.” That is, if the business lost money, he would just not receive dividends, and his principal would be fully preserved. If there were profits, they would be distributed according to the proportion. The worst outcome was just the loss of a few years’ interest—and there was nowhere in Lingao for him to lend money for interest anyway.

The two sides initialed a memorandum and then agreed to formally sign the agreement three days later and have it notarized and archived—this business practice was now being promoted throughout Lingao.

“We don’t know much about the business of goods from the north and south. I wonder if Proprietor Lin has any advice?” Si Kaide asked. As a member of the Ministry of Colonial Trade, he was much more enthusiastic about this matter than the intelligence bureau.

“The business of goods from the north and south is very profitable,” Lin Quan’an said. “But I don’t know much about it either, I’ve only heard people talk about it.”

Lin Quan’an’s idea was to set up the head office of Wanyou in Yangzhou, and then set up a branch in each of Nanjing, the capital, Suzhou, and Hangzhou.

Setting up the head office in Yangzhou was convenient for transportation. The business of goods from the north and south made money from the regional price difference. And this price difference was very large. A basket of dried bamboo shoots from Fujian could be bought for only a few qian of silver locally, but when transported to the capital, it would be a few qian of silver per jin. The Dongting red oranges from Suzhou and the honey oranges from Fuzhou were so abundant during the season that they had to be thrown away, but when transported to the north, they became rare southern fruits. Sea cucumbers and shark fins were only a fraction of a qian of silver in Shandong, but when transported to Jiangnan and the capital, they became delicacies…

But for the transportation of bulk goods between the north and south, in the past, besides using mule carts, one could only rely on the canal. Specifically, it was to use the grain transport boats. Every year when the grain transport boats went upstream to transport grain, the grain transport soldiers were allowed to carry private goods with them. As for the downstream journey when they were empty, carrying goods was an important source of income for the grain transport soldiers.

Yangzhou was an important port on the canal where the north and south met. Setting up a head office here, whether for transporting southern goods to the north or northern goods to the south, would be convenient for contacting the grain transport boats for distribution and transportation. And remittances and letters could also be sent along with the grain transport boats, which was very convenient.

As for the locations of the four branches, they were all prosperous commercial centers for the distribution of goods. Not only was the transportation convenient, but the consumption level of the residents was also high, making it convenient for retail sales, whether retail or wholesale. Secondly, they could be used as a base to purchase local products from the surrounding areas. Take Hangzhou for example, not only could they purchase various local products from the Liangzhe region nearby, but from here they could also go deep into the mountainous areas of southern Anhui via the Hui-Hang Road to purchase various mountain goods such as tea and dried bamboo shoots. They could also go directly down to Fujian to purchase various local specialties of Fujian.

“Why not use sea transport?”

Lin Quan’an was stunned. He had never thought of transporting goods from Jiangnan to the capital by sea. After all, the flow of goods and personnel between these two places had always been through the canal.

“I don’t know about that,” Lin Quan’an shook his head. “I’ve only heard people say that sea transport is difficult. If you encounter storms and are shipwrecked, you will be bankrupt in an instant. Everyone would rather use the grain transport boats. Even if a few sink on the way, at least the whole army won’t be wiped out.”

“The grain transport boats are very slow.”

“Yes! The grain transport boats are not only slow, but there are also many abuses,” Lin Quan’an said. He had heard many stories about the tricks on the canal. From the beginning of the shipment, there were all kinds of extortion, theft, and unspoken rules. There were countless people who “lived off the water” along the way.

“But when merchants transport goods, they just hand them over to the grain transport soldiers. They handle all the dealings in between. It’s just a matter of paying a few more qian in freight.”

“Isn’t this all about money?” Si Kaide thought. If they could change the freight from Jiangnan to the capital to sea transport and snatch a part of the freight business from the canal, not only could the transmigrator group make a lot of money, but they could also train a fleet that spanned the north and south. In the future, when the army needed to maneuver at sea, there would be ready-made ships and sailors available. And the shipping routes along the way could also be developed early.

In that case, it would be better to have the head office in Shanghai.

Shanghai was the junction of China’s north-south sea transport. From Shanghai, ships could easily go north to Tianjin and Liaodong, or south to Guangdong and Fujian. They could even penetrate into the inland provinces.

From Shanghai, one could easily reach the main grain-producing area of China, the Huguang region, by going up the Yangtze River. By occupying this golden waterway of China, they could use the Yangtze River as a transportation hub to penetrate both banks, continuously absorbing the rich local products and human resources, and selling a large number of goods.

…

If the transmigrator group wanted to do trade with Japan, starting from Shanghai would also be more convenient than from the Jin-Xia area occupied by Zheng Zhilong.

The goods that Zheng Zhilong transported to Japan were mainly raw silk and silk products, followed by cloth, daily necessities, and medicinal materials. These products were produced in large quantities in the Jiangnan region. Purchasing them locally and shipping them from there would be cheaper in terms of freight than the Zheng Zhilong group, which was located in a corner of Fujian…

In fact, Si Kaide was also thinking about sea transport of grain for the Great Ming. Every year, several million shi of grain were transported from Jiangnan. If they could take over this business, the income from the freight alone would be incredible.

However, this idea was too ambitious and probably couldn’t be realized for a while.

After the discussion, each party went to make their own preparations. Lin Quan’an then made a request: if he were to go out to serve at the head office, he needed to bring one of his wives and her children. The rest of his family could stay in Lingao.

Jiang Shan of course agreed—this was a reasonable request. Lin Quan’an actually had another plan: to take this opportunity to transfer a part of his family’s population and property out—still the idea of a cunning rabbit having three burrows.

“It’s a pity your son is too young, otherwise he could be your helper,” Jiang Shan said, unaware of his little scheme.

“In the future, I will still need the chiefs’ guidance,” Lin Quan’an said very politely.

The Wanyou company established by Lin Quan’an was called the Shanlu in the Lingao intelligence bureau system, with the code name “Jinzihao.” According to multiple meetings and discussions between the Foreign Intelligence Bureau and the Ministry of Colonial Trade, considering both trade and intelligence, it was decided that the future mainland intelligence-trade system would refer to the organizational method of the Zheng clan group in its early years.

The Zheng clan group’s actions at sea, except for a period after being pacified by the late Ming, were suppressed by the Ming court in the early stage and blockaded by the Manchu Qing in the later stage.