“Gentlemen,” Sheng Xuanhuai sat in the main seat of the conference room, fingers interlocked on the table edge, speaking with a full official tone. “Over the years, everyone has worked hard in shipping, representing our Great Qing’s prestige, competing with foreigners for profit on rivers and seas. The hardships involved, the Governor-General Li knows completely. The difficult situation of Chinese shipping is not a problem of one day – there’s suppression by foreign firms, short-sightedness from local officials imposing heavy likin taxes, forcing you to hang foreign flags or rent foreign ships, invest in Western companies, causing a series of problems…”
The ship merchants listened attentively.
Su Minguan observed this young staff member. About his own age, but obviously the most successful person in this conference room. He didn’t hide his wealth and status at all – the pearl on his hat was worth at least a thousand taels of silver, and the thumb ring on his hand was probably priceless. But his manner was elegant and unhurried. Though he spoke of various business matters, from his temperament he was already an experienced “official.”
He couldn’t help but wonder – were these speeches Sheng Xuanhuai delivered just passing along Li Hongzhang’s words, or did he have his ambitions?
Sheng Xuanhuai’s few words precisely hit everyone’s most difficult weak spots, making them involuntarily grateful – so the officials knew their difficulties so clearly…
The few who thought more deeply exchanged slightly dissatisfied glances.
Since the government knew everything so clearly, what had they been doing these years?
And recently, intensifying inspections and tax collection – what was that about?
Boss Zhu of “Gaoqiao Sand Ships” couldn’t contain himself and said eagerly, “Five years ago, this humble one and Boss Su here, along with several other ship merchants, jointly petitioned to reorganize into a Western-style steamship company. We still haven’t received approval. May I ask Mr. Sheng, can you give us a definitive answer today?”
Sheng Xuanhuai smiled: “At that time, this humble official hadn’t yet entered Mr. Li’s staff, so I didn’t know about this matter. But presumably the Two Palaces couldn’t possibly have approved it. If we formed a Western-style company, we Chinese don’t understand management and would inevitably still need to hire Westerners, even invite Westerners to invest, isn’t that right? Grain transport is a national matter – how can we let foreigners interfere? The Two Empress Dowagers are people who consider the big picture and naturally can’t grant every request…”
Su Minguan smiled coldly.
Simply put, the “profit” of grain transport couldn’t all fall into private merchants’ hands.
Sure enough, Sheng Xuanhuai continued passionately: “After careful study, Mr. Li and this humble official believe that our Great Qing’s shipping industry must have officials and merchants unite as one to compete with foreign merchants. Private merchants have limited financial resources, and relying solely on the government creates an unwieldy bureaucracy with many redundant matters. So the solution lies in four words – official supervision, merchant operation! Ah, official supervision, merchant operation. The government provides conveniences for the shipping industry, supplemented by preferential policies, reducing internal friction; merchants invest funds and ships as shareholders, taking responsibility for profits and losses, unrelated to officials. This way, it’s equivalent to the court opening wide doors of convenience for you – isn’t this better than any Western-style company? This decision has already been discussed with many relevant personnel and has received unanimous agreement. Thus, our inland rivers and outer seas’ profits won’t be entirely occupied by foreigners, greatly benefiting the national economy and people’s livelihood. And then, you gentlemen as merchant directors can also become leaders opening new customs, leaving names in history…”
Low buzzing sounds arose around the table. After being wined and dined for several days, the Astor House Hotel indeed wasn’t free accommodation.
Sheng Xuanhuai beamed, clapped his hands, and had people bring out a stack of documents stamped with bright red seals, distributing them to everyone.
“Trial Regulations for China Merchants Steam Navigation Company.”
The Self-Strengthening Movement had been vigorously pursued for ten years, creating major projects like Jiangnan Arsenal and Fuzhou Shipyard, but massive investments were no longer sufficient. The court had to turn its attention to the commercial world, using commerce to support the military and gradually reclaim profit rights.
Simply put, just “self-strengthening” wasn’t enough – they also needed to “seek wealth.”
China Merchants Steam Navigation Company was the first shot of “seeking wealth.”
To make money through shipping, the first step was clearing obstacles on waterways and eliminating competitors.
Foreign merchants couldn’t be removed for now, but small domestic ship merchants should have some sense and voluntarily stop competing with government-run shipping for profit, stop dragging down the court.
The “Regulations” stipulated that all Shanghai ship merchants could attach their ship assets to the newly established China Merchants Bureau, or invest with capital. Those with larger shares, elected into the bureau, could serve as merchant directors, assisting business operations at major ports – equivalent to private bosses becoming state enterprise employees, with salary and benefits as follows…
After reading just a few sentences, the ship merchants had various opinions.
“Hey, Mr. Sheng, I have dozens of sand ships and over three thousand sailors – will the government take them all?”
Sand ships had long declined in the steam-dominated shipping era. Being able to find someone to take over these old, outdated sand ships, Boss Zhu of “Gaoqiao Sand Ships” couldn’t ask for more.
Sheng Xuanhuai smiled and answered questions: “China Merchants Steam Navigation Company naturally focuses on steamships. Mr. Li said sand ships are slow and unreliable – after acquisition, you handle them yourselves. Don’t let him see them on the river in the future.”
The implication: pay to buy out your business, then please change careers.
Zheng Guanying had been silent, but suddenly spoke.
“What if we’re unwilling to attach and invest?”
Since they were both officials, Sheng Xuanhuai stood up, cupped his hands toward Zheng Guanying, and smiled: “Then… then Mr. Li naturally can’t force it. But Zhengxiang, think carefully – the future Great Qing China Merchants Steam Navigation Company, besides having exclusive grain transport business, will also receive court loans, get land cheaply to build docks and warehouses, and be exempt from likin taxes – with such preferential treatment, how can private ‘wildcat ships’ compete with government-run steamships? What our Great Qing faces today is an unprecedented great transformation. This humble official, thinking of everyone, sincerely suggests you all cooperate wholeheartedly…”
Sheng Xuanhuai was indeed a master of eloquence. He opened one pampered hand and declared resolutely: “Facing foreign firms’ aggressive pressure, a clenched fist is more effective than separate fingers! You gentlemen have built shipping to this level, so presumably it’s not just for money, but because you have patriotic hearts. This humble official guarantees that the future China Merchants Steam Navigation Company will have docks and warehouses at every port. In the future, every sea area and every river of our Great Qing will proudly sail giant ships flying dragon flags! Ah, also, Mr. Li graciously permits that all who attach ships and invest, he will petition the court to award sixth-rank insignia. Those already with titles get promoted one rank. Gentlemen, today you should return with full loads, haha!”
Sheng Xuanhuai was busy with affairs. After his mobilization speech, he took his leave, stating that if any bosses were willing to cooperate, they were welcome to discuss details in the third-floor suite.
Boss Zhu of “Gaoqiao Sand Ships” immediately followed him.
Others hesitated.
“Look at these regulations,” someone pointed to a page, saying quietly. “They call it merchant investment, but we merchants only have the obligation to pay money, not the power to operate. If we profit that’s fine, but if we lose, who can we argue with?”
Another said: “But there’s no choice! They’ve made it clear – if you don’t attach to the China Merchants Bureau, you’ll all be ‘wildcat ships’ in the future. They can’t eliminate foreigners, so they’ll eliminate you first! – Sigh, the shipping business can’t be done anymore, change careers! At least taking court money is a good ending!”
Two more people left to find Sheng Xuanhuai to sign. Both owned large fleets of sand ships.
Only Zheng Guanying remained. When servants brought tobacco, wine, and fruits, he wanted none; he just idly twirled his pen.
“Brother Su,” he suddenly spoke in a thin voice, smiling. “Shall we return to Shanghai together?”
Su Minguan looked up, sending an inquiring glance.
Zheng Guanying: “Butterfield & Swire’s acquisition price is thirty percent higher than theirs.”
People go to higher places. Steamships were just one of his side businesses. If he had to cash out his entrepreneurial achievements, he might as well find a buyer offering higher prices.
He cupped his hands toward Su Minguan and stood to leave.
Su Minguan suddenly called: “Brother Zheng.”
He found a piece of paper, hastily wrote several lines, blew it dry, and folded it.
“Could you help me deliver a letter?”
Zheng Guanying frowned slightly, meaning: Aren’t you also returning to Shanghai soon? Why make me run errands?
Su Minguan smiled: “Yang Yuelou, ‘Yang the Monkey’ from Jingui Theater Troupe, is coming to Tianjin to perform. I’ve already booked tickets for the Daguan Tower for the day after tomorrow. Please excuse me.”
Only Su Minguan remained in the conference room, resting his chin on his hand, lost in thought.
The Venetian blinds were half-open, sunlight squeezing through the slats, spreading before him like a golden staircase.
Ever since the “reorganizing private steamship companies” matter died, he knew a sword hung over his head that would eventually fall.
Everything seemed familiar.
Except eight years ago it was conspiracy – foreign merchants joining forces to strangle. But foreigners were far from their homeland with ultimately limited ammunition. He was on Chinese soil with every geographical and human advantage, able to use every unorthodox method to survive that brief storm of bullets.
This time, it was an open scheme. The Great Qing court pressed down like Mount Tai, mobilizing the entire nation’s power like a giant whale opening its mouth to swallow all big and small fish along the way.
He could certainly walk away with a flourish. But when China Merchants Steam Navigation Company strode across the seas in a giant’s posture, holding countless preferential policies and swaggering to crush everything, what resistance could little Yixing Shipping have?
Dismember again and sell to various foreign firms?
Today’s Yixing has thick branches and strong leaves. Even if he was willing to sell, foreigners might not be able to swallow it.
Su Minguan looked up at the clock and discovered that unconsciously, half an hour had passed.
He stood up, strode up the stairs, and knocked on the third-floor suite door.
“Mr. Sheng…”
“Ah, Boss Su of Yixing,” Sheng Xuanhuai warmly welcomed him in, saying to himself: “Four Western steamships, five lighters and barges, over ten sand ships, docks, warehouses, and cargo holds at six ports… tsk tsk, truly remarkable, building all this under foreigners’ noses… The court won’t mistreat you – four hundred thousand taels of silver, can be invested as shares or paid in installments, plus a bright insignia… mm, whether to stay in Shanghai or move to Hong Kong in the future, your choice! Ah, if you want to go abroad, you can also go to Nagasaki or Kobe branch offices, see Japanese beauties, haha…”
Su Minguan politely responded a few sentences, cupped his hands, and smiled: “Unfortunately, Yixing isn’t owned by this person alone. Please allow Mr. Sheng to let me return and discuss with shareholders. When do you go to Shanghai to handle China Merchants Steam Navigation Company, then…”
“Wait,” Sheng Xuanhuai frowned slightly: “As far as I know, wasn’t Yixing’s capital all invested by you alone, Boss Su? Back then, at Baoshun Trading House’s bankruptcy auction, you single-handedly swallowed three steamships in grand style, all signed by Boss Su alone… I haven’t heard of other shareholders.”
Su Minguan’s heartstrings stirred. This person was truly low-key, quietly and thoroughly investigating Yixing’s strength and background.
It seemed he had long included Yixing Shipping in China Merchants Bureau’s asset blueprint.
The money to rebuild Yixing was indeed his sole investment, all from the huge profits of shorting cotton that year, plus liquidated Boya shares. Lin Yuchan insisted on returning him a complete Yixing, not participating with even one cent of shares herself.
However, whether Yixing was his or not wasn’t for him to say.
Su Minguan amiably fabricated: “Friend loans and such aren’t good to write openly, still need to clarify. Otherwise, it’s hard for brothers to conduct themselves in the future.”
Sheng Xuanhuai was young after all and didn’t want to offend any party. He could only echo a few sentences, saying they’d discuss later.
Su Minguan cupped his hands again. When turning to leave, he suddenly said: “Also, China Merchants Steam Navigation Company will only keep steamships in the future, eliminating all sand ships. Advanced is advanced, but Su ventures to remind that there are still over a hundred sand ships on the river with tens of thousands of boat workers. If these people lose employment overnight, the consequences are unpredictable… Therefore, please remind Governor-General Li about China Merchants Bureau – should it be… temporarily postponed?”
Sheng Xuanhuai was startled again. These officials focused on sweeping macroscopic reforms and indeed hadn’t considered that unemployed boat workers might cause trouble.
He quickly replied seriously: “Certainly, certainly. Thank you for the reminder.”
Su Minguan smiled respectfully and took his leave with his sleeves gathered.
Before one foot crossed the threshold, suddenly from the study inside the suite came another person’s voice.
“Boat worker unemployment and dissatisfaction are indeed a big problem. However, I believe you will share the court’s concerns and solve these hidden dangers.” That voice was resonant and dignified, with barely detectable amusement. “After all, being able to incite an entire shipyard’s workers to strike in confrontation, actually driving foreigners from workshops and forcing them to pay wages and release people – such mobilizing power is quite rare among merchants.”
Su Minguan’s steps halted, his spine instantly tightening. Cool drafts penetrated his pores, raising reactive bumps on his arms.
He looked at Sheng Xuanhuai as if seeking help, asking knowingly: “This gentleman is…”
Sheng Xuanhuai hurriedly whispered. Only then did Su Minguan bow across the distance: “Lord Li.”
Since they’d already discovered he was the mastermind behind the strike, denial was useless. Su Minguan rapidly calculated – Li Hongzhang didn’t mention the textile factory, indicating that in his informants’ minds, female workers probably weren’t worth worrying about and weren’t specially noted.
Lin Yuchan should also not have entered Li Hongzhang’s sight. Women couldn’t stir up big waves.
Su Minguan lowered his head and calmly explained: “Shipyard workers have long suffered under that foreign merchant. They’ve caused trouble before and even went to court. This humble person and several workers involved are fellow townsmen – it was just out of righteous indignation, helping them with a few foolish suggestions. We’re all Chinese – when bullied by foreigners, naturally, we must help compatriots seek justice. Even if that foreigner later sues and retaliates, I accept it.”
The court valued stability above all and most feared party formation and association. Once these hats of “incitement” and “organization” were placed, he’d be guilty even if he’d done nothing.
He could only avoid the important and focus on the trivial, stating clearly that he only opposed foreigners without intent to subvert the Great Qing.
A servant lifted the curtain. Li Hongzhang walked out of the study.
He was already fifty years old, wearing dark summer casual clothes, his tall frame slightly hunched, with obvious eye bags above his cheekbones. The only thing that didn’t show age was that pair of not-large eyes, pupils moving flexibly, revealing a trace of moody impatience.
Sheng Xuanhuai quickly stood aside, eyes downcast, looking at the ground.
“Then, if the sand ship workers are dissatisfied, this official commands you to solve it.” Li Hongzhang looked at Su Minguan, smiling. “China Merchants Steam Navigation Company’s schedule won’t change. Xingsun, you go back to Shanghai with him, properly inventory his shipping company’s assets, then…”
Li Hongzhang suddenly stopped. He quickly walked several steps, approaching Su Minguan, showing a puzzled expression.
“You – have I seen you before?”
Su Minguan’s heart jumped, but he kept his eyes lowered and said calmly: “This humble person is originally from Guangdong. After my father’s death, I worked as a traveling merchant. From age twenty, I’ve been operating shipping in Shanghai. When Lord Li served as Jiangsu Governor and Viceroy of Liangjiang, you often inspected Shanghai port docks. This humble person also observed your lordship’s dignity, but… until today, I’ve never had the opportunity for an audience.”
Li Hongzhang slowly straightened his hunched back, looking directly at this seemingly honest young ship merchant.
“The third year of Tongzhi reign, twenty-eighth day of the ninth month, around chen hour in the morning, at ‘Keshang Lai’ inn on the Beijing-Tianjin post road, in the Heaven-One room,” Li Hongzhang’s voice was resonant, saying word by word, “when this official was receiving Chief Inspector of Customs Hede, where were you?”