A century-old wealthy family that rose from Shanghai

Chapter 255 Dog bites dog

On this day, Chen Guangliang received a Japanese businessman, Shinji Harada, at Global Shipping.

Chen Guangliang crossed his legs, leaned back on the sofa, his eyes revealing contempt - this is called despising the enemy strategically and respecting the enemy tactically.
Shinji Harada is the representative distributor of Fushun coal. He came here not only with a business mission, but also with a political mission.

He said sincerely and respectfully, "Mr. Chen, if your fleet uses our Japanese coal, you can save hundreds of thousands of dollars in fuel each year. On the other hand, if you refuse to use Japanese coal, it will be difficult for you to compete with the British fleet along the Chinese coast. Moreover, if your fleet uses Japanese coal, we can also allow your ships to undertake the business of transporting Fushun coal."

Last month, news media outlets reported that large quantities of Japanese and Fushun coal were being dumped into China. This spread to the Yangtze River markets between Shanghai and Wuhan, forcing Chinese-owned coal into a desperate situation. Consequently, the coal shortage was inadvertently alleviated, and preventing dumping became the focus of the "national coal relief" campaign.

The current price of Japanese coal in Shanghai is 5.7 to 6.2 taels per ton, which is a drop of 9 to 10 yuan from the previous to yuan. This can be described as a massive dumping.

The reason for this dumping was that after the September 918th Incident, Japan's coal sales to China were suddenly blocked due to China's resolute boycott. Previously, Japan's domestic coal reserves had generally been around 150 million tons, but by July 1932, they had reached a record high of 7 million tons. Fushun Coal in Northeast China also had a stockpile of 280 million tons. Significant reductions in mining and suspensions of production were feared to trigger labor strikes and further unrest. Only after the momentum of the Chinese boycott of Japanese goods waned did Japan and Fushun Coal resort to the same tactics, attempting to mitigate the losses from unsold coal by offering price cuts and promotions in China.

In addition to price reductions and dumping, Japanese coal merchants also offered various preferential policies to underwriters, including order placement, settlement without payment, and unlimited contract terms. Previously, underwriting Japanese coal required cash payment, but during the dumping period, not only was advance payment unnecessary, but it was even possible to operate without capital. Underwriting Chinese coal, however, still required a deposit or a pre-sale agreement. Consequently, Chinese coal merchants, seeing the low costs and profitability, ignored national urgings and rushed to place orders. Naturally, users already accustomed to Japanese coal welcomed this offer.

Therefore, although the Iron-Blooded Anti-Traitor Corps threatened that "those who sell Japanese coal will be dealt with with grenades", and the Ministry of Industry issued an order that "local chambers of commerce urge local manufacturers to uniformly adopt domestic coal, resist dumping and protect domestic products", it was difficult to stop the hot sales of Japanese coal and Fushun coal.

Tariffs are even more impossible. The Nanjing government has currently included Japan in the list of countries with preferential treatment, and no "tariffs" can be imposed on Fushun coal, otherwise it would be tantamount to recognizing the legitimacy of Manchukuo.

After hearing this, Chen Guangliang smiled faintly and said, "It sounds good, but I won't choose Japanese coal because my crew and staff will have strong objections. As for transporting Japanese coal, it has never been considered."

Shinji Harada didn't get angry when he asked about the delay. He knew Chen Guangliang was a "diehard" and continued to tempt him, "Mr. Chen, as long as you use Japanese coal, we will have more business cooperation in the future. You are just a businessman, why don't you know the current situation?"

Chen Guangliang immediately stood up and said, "Mr. Harada, if every businessman has no concept of nation and country, then this nation will have no hope. Fortunately, our country still has many businessmen like me who stick to their principles!"

Seeing Chen Guangliang's stubbornness, Harada Shinji tore off his disguise and said sternly, "Mr. Chen, if you go against the Empire of Japan, you will definitely not end well!"

Chen Guangliang said: "Don't worry about it"

He wanted to say that the invaders would not have a good end, but it seemed like he was deceiving himself.

Although many Japanese died in World War II and their homeland was hit by two atomic bombs, they later found a good master and their economy took off in the 1960s.

So it’s better not to be stubborn about some things.

After the Japanese businessmen left, Wu Hao, the manager of Jinshan Navigation, which was registered in Guangzhou Bay, also returned to Shanghai to report on his work.

Wu Hao reported, "Given the new route between Hong Kong and Guangzhou Bay (ZJ City) and the moderate trade volume, I suggest purchasing a 1,000-ton ship to open a direct route between the two places. The current problem is that the two ships are too large and won't be able to handle enough business in a short period of time. We can only maintain operations while waiting for more sugarcane to be shipped."

On the Guangzhou Bay side, Chen Guangliang indeed took things for granted. The trade volume here is not high.

Of course, he had definitely struck gold when he bought six ships. Each ship cost $6, which in Asia is worth $6.5. He wasn't sure if he'd find such a good opportunity again.

Take the British Marden family as an example. Starting in the 10s, they spent US$ to buy a second-hand American ship, and maintained shipping operations with occasional orders.

Chen Guangliang will make a lot of money from these six ships in the future, so he just needs to maintain them for now. Not to mention that Guangdong Province still needs to transport sugarcane for a year, so it will still provide him with some transportation business.

"Okay, I approve your suggestion. We'll purchase a second-hand ship of a thousand tons or several hundred tons to maintain trade between Guangzhou Bay and Hong Kong. As for the two large ships, we'll keep them for now."

Wu Hao nodded immediately and said, "Okay, I'll have to ask the company in Shanghai to buy this ship for me!"

Obviously, he was worried that his boss would say he was taking kickbacks, but the key point was that his boss was very smart - he was able to buy the boat at a low price himself.

Chen Guangliang immediately said, "You can also pick one over there. I'm going there in September."

This time, Wu Hao said, "Okay, there are quite a few sellers in Hong Kong."

The split of the shipping company into two was a necessary move, but it also caused some inconvenience. Chen Guangliang couldn't visit Jinshan Shipping in Guangdong Province for six months, so he had to trust his subordinates to run the business.

The only advantage now is that the Yangtze River Bank has formed a "trust" organization, which is equivalent to the central government's finance, accounting, and auditing, and will regularly inspect these enterprises.

But overall, Jinshan Shipping made a lot of money. It earned more than 45 US dollars from transporting sugarcane alone, almost making back the cost of the two ships (13 US dollars).

at this time.

Chen Guangliang had already devised a plan to preserve his six valuable ships and profit greatly from them later. As for the other cargo ships, he had no complaints about sinking them and blocking the river.

Therefore, he is now planning to continue purchasing cargo ships.

The next day, he went to the Jierui Coal Briquettes headquarters for inspection and soon discovered the clues.

"Mr. Hengchuang, I have no problem with buying this coal from your Yuchang, but the price of this coal seems unusual. Could it be that you are using Japanese coal?"

Xie Hengchuang's face flushed immediately, and he quickly said, "Guangliang, it's not that I want Jierui Coal Briquette Factory to use Japanese coal, but if they don't use Japanese coal to make briquettes, then Jierui Coal Briquette Factory's market will be replaced by other workshops. What's more, briquettes affect the cost of living of citizens. It's no use to continue to resist."

Japanese coal is 6 taels of silver per ton, Kailuan coal is 9-10 yuan per ton, and Huazi coal is over 10 yuan per ton. This is the current market price. Chen Guangliang naturally knew that Xie Hengchuang's Yuchang had always cooperated with the Japanese Coal Agency Co., Ltd., but how could he interfere in such a matter, or even criticize it?
Yu Zhiqing, the founder of the Greater China Rubber Factory, was a former overseas Chinese in Japan. He used Japanese technology and machinery to establish a real rubber factory in China, which can currently produce rubber shoes, etc.; two years later in his previous life, he could also produce tires, etc., but he has always been a patriot and was later shot dead by the Japanese.

Chen Guangliang refused all cooperation with Japan because his wealth did not require compromise, but how many businessmen like Xie Hengchuang could resist "cheap Japanese coal"?

Seeing Chen Guangliang remained silent, Xie Hengchuang continued, "Don't worry, I'm keeping this a secret. The Jierui briquettes are from my Yuchang ship, so I won't implicate you."

Chen Guangliang simply sighed, "Chinese coal is ultimately no match for foreign coal. I'm well aware of this. But if I can get Kailuan coal at a price similar to Japanese coal, then Jierui coal briquettes will have to prioritize Kailuan coal."

Xie Hengchuang said this time: "Of course, you are also the boss of Jierui Coal Briquettes, so you can make such a decision."

He started importing Japanese coal in July because of the huge price difference. Calculated at 7 taels of silver per ton, Jierui Coal Briquettes consumed over 3 tons of coal per month, which yielded a profit of over 4 yuan.
This is not just a matter of money. If they don't use Japanese coal, the coal briquette business may be taken away by small workshops. After all, small workshops will definitely use Japanese coal.

Of course, at present, Jierui Coal Briquette Factory accounts for 65% of the coal briquette market share in Shanghai, which is a monopoly, but it is not the only one.

After Chen Guangliang left, Xie Hengchuang shook his head and said, "Young people still have the spirit of striving. Will Kailuan Coal listen to his suggestion and lower the price?"

Immediately afterwards, Chen Guangliang found Liu Hongsheng, chairman of the Shanghai Coal Council.

When Liu Hongsheng learned of Chen Guangliang's purpose, he immediately said, "Mr. Chen, at this time we should support Guomei. Kailuan Coal is ultimately controlled by foreigners."

That's not what you said earlier!

In the early years, Liu Hongsheng was a sales representative of Kailuan Coal. He always emphasized that Kailuan Coal was Chinese coal, and used this to enter the market.

But since the Jiawang Coal Mine went into production and occupied part of the Shanghai market - providing about 4 tons per month, Liu Hongsheng has also invested in other Huaxia coal mines.

These actions angered the British who owned Kailuan Coal, because in the eyes of these powers, since you have become my agent, you can no longer invest in other coal mines.

Therefore, since 1931, Liu Hongsheng has cut off his source of profit from Kailuan coal.

Of course, Liu Hongsheng now holds a 60% stake in Jiawang Coal Mine, so he is not at a disadvantage. Although there is dumping of Japanese coal, the coal from Jiawang Coal Mine has opened up a market in the Shanghai Stock Exchange (patriotic coal always has some sales); on the other hand, the coal mine can be stored, and Jiawang Coal Mine can wait for a while before transporting it to Shanghai for sale to avoid the current market conditions.

Chen Guangliang said: "It's not possible for domestic coal to rise overnight, and domestic coal has too many drawbacks. Without strong government support, it can only survive in the cracks. This time, Japanese coal is coming in with great momentum. If they dump a lot, they will soon retake the market. Although Kailuan coal is foreign coal, it is better than Japanese coal. As for domestic coal, we can only wait for the government to introduce measures to support it, otherwise there is no way we can compete."

He speaks the truth.

Liu Hongsheng sighed, "I know there are many drawbacks to domestic coal, but I just can't bear to see it suffer a setback from the dumping of foreign coal. But you do have some truth to it. If Japanese coal continues to be dumped, it will only make people more disgusted. Okay, I'll arrange a meeting with the Kailuan Coal representatives for you. However, I'm currently in a lawsuit with them, so it's not convenient for me to come out for the meeting. You should organize this matter; I won't be involved!"

"it is good"

A few days later, the Shanghai Media Council represented by Chen Guangliang took the initiative to contact Kailuan Coal, and Kailuan Coal Mine sent Smith, the South China sales agent, and Water, the marketing manager of Kailuan Coal.

As soon as the two sides met, Chen Guangliang took the initiative to say, "Japanese coal has been dumped in Shanghai and other South China markets for two months. At this rate, Kailuan coal will pile up like a mountain in Qinhuangdao, and we will lose a large part of the South China market."

Upon hearing this, Kailuan Coal's marketing manager, Walter, naturally agreed with the statement, but he also insisted, "The dumping of Japanese coal is only temporary and will soon resume. I have always opposed dumping."

Chen Guangliang was no child, and he believed that the great powers would truly help China and would get involved in the conflict between China and Japan. The great powers all had the same mentality, which was to regard China as prey.

This situation will probably not continue until after 1937, when China has shown its courage and the European battlefield has begun, and then the United States will truly value China as an ally.

Therefore, Chen Guangliang said: "Japan's coal reserves have reached over two million tons, and Fushun's coal reserves are also over one million tons. This is precisely why they are dumping coal. Now we invite Kailuan Coal to significantly reduce its price, so that our industrial and commercial users have another choice. Of course, this is just a suggestion. If you don't care that Japan's coal market share is far higher than yours, just ignore it!"

At this time, Water and Smith took it seriously.

Finally, Walter couldn't help but ask, "At a similar price, will the Shanghai Coal Council give priority to Kailuan coal?"

Chen Guangliang said decisively: "Yes"

Watt and Smith understood that the monthly coal demand of the Jierui Coal Briquette Factory, in which Chen Guangliang had a stake, accounted for approximately one-sixth of Shanghai's total coal demand, monopolizing the city's civilian coal needs. Furthermore, Chen Guangliang also had a fleet of ships, making him a significant consumer of coal.

But this Chinese person hates Japan very much, which is why today's negotiations are taking place.

"Okay, let's go back and discuss it as soon as possible!"

The negotiations went smoothly. As long as the British were not stupid, they should have dumped the coal immediately. Otherwise, the mountains of coal in Qinhuangdao would have been a problem.

After the negotiation, Walter privately said to Chen Guangliang: "Mr. Chen, we are opening up the sea transportation of Luan coal, and we also hope that you will come and participate."

Obviously this is a gesture of goodwill!
Chen Guangliang also readily agreed.

He now has a Jinfeng ship of more than 3000 tons, and can dispatch a 5000-ton ship to Guangzhou Bay to transport coal. He is also purchasing a 5000-ton ship.

(End of this chapter)