A century-old wealthy family that rose from Shanghai

A New Year Comes (1936).

Just after the Spring Festival, in late January, Chen Guangliang headed to Sichuan to investigate the sugar industry.

He had already made up his mind to build a truly professional 'mechanized white sugar' factory and a supporting alcohol factory in Sichuan.

Prior to this, there was no truly mechanized sugar factory in Sichuan; at most, there was only a semi-mechanized sugar factory.

Chen Guangliang also did some calculations and estimated the investment to be between 500 and 600 million silver dollars, but if everything went smoothly, recouping the cost by 1940 would be no problem. However, the significance of the War of Resistance against Japan was definitely different; sugar and alcohol were strategic resources.

The transportation to Sichuan involved first taking a train to Wuhan, and then taking a riverboat operated by Minsheng Company to Sichuan.

"Mr. Chen, it's an honor to meet you!" Lu Zuofu, the chairman of Minsheng Company, was already waiting for Chen Guangliang by the riverboat.

This time, the two will meet on the ship to exchange some ideas. In fact, Lu Zuofu is accompanying Chen Guangliang to Sichuan.

"Mr. Lu, I have long admired your name."

Upon meeting, the two greeted each other very politely and amicably.

Then, Chen Guangliang introduced Lu Zuofu, saying, "These are my entourage members. This is sugarcane expert Xu Caijin, and this is sugar-making expert Cao Mingxian."

Lu Zuofu suddenly realized and said, "It seems that the sugar industry in Sichuan can be saved!"

Chen Guangliang said politely, "Sichuan's white sugar has always been very good, and Neijiang's white sugar industry is even more renowned as the 'Sugar City'."

Lu Zuofu invited Chen Guangliang and others onto the ship, and shook his head, saying, "Mr. Chen only knows one side of the story. Since the rise of the sugar industry in Guangdong Province, the sugar industry in Sichuan has gradually shrunk under the pressure from Guangdong Sugar and Yangtang. After all, there is no truly mechanized sugar industry in the entire Sichuan province. The thousands of sugar industries in Neijiang are all handmade sugar industries, and they face great pressure to survive."

This was something Chen Guangliang wasn't quite aware of.

After the rise of Guangdong sugar, the import of foreign sugar only decreased, but in reality, foreign sugar still occupied a certain share, especially smuggled foreign sugar. For example, the import of foreign sugar that could originally reach 1 million silver dollars a year (not that much was imported every year) later remained at 1000-2000 million silver dollars, mostly through smuggling.

Chen Guangliang originally thought that due to the terrain, it would be difficult to import white sugar from Yangtang, but he did not expect that the situation would be more serious in the past two years.

Why doesn't Sichuan develop its own mechanized sugar industry?

Lu Zuofu shook his head and said, "I don't know the specifics, but I've heard that a mechanized sugar factory can easily require an investment of millions of silver dollars. That alone is enough to scare many people away."

Chen Guangliang nodded. Let alone the Sichuan government, even the South Korean government wouldn't dare to easily invest millions of dollars in a company, as they are already short of money everywhere.

Moreover, experience is the most important thing. Chen Guangliang brought all the original "sugar-making veterans" to Sichuan for help during this inspection. Without them, Chen Guangliang would not dare to make any rash moves.

Soon, the riverboat began its journey along the middle and upper reaches of the Yangtze River, heading towards Sichuan.

Chen Guangliang and Lu Zuofu sat in a good spot, sipping tea and enjoying the scenery on both sides of the river.

Lu Zuofu took a sip of tea, then looked out the window and said smugly, "Although the Yangtze River is not as vast as the sea, the scenery on both banks and the importance of the Yangtze River as a vital waterway are no less than those of the sea. Mr. Chen, what do you think?"

Looking at the scenery outside, Chen Guangliang said, “The Yangtze River, my feelings for the Yangtze River are not as strong as yours, Mr. Lu. Although the Yangtze River is not the largest river in the world, it is certainly the river that has made the greatest contribution to transportation. Although the Nile River in Africa and the Amazon River in the Americas are the first and second largest rivers in the world, the Yangtze River’s contribution to a nation is far beyond what these two rivers can compare to.”

Lu Zuofu excitedly added, "Yes, Mr. Chen is absolutely right. The Yangtze River not only nurtures a large number of people, but more importantly, it is vital for our nation in terms of transportation and the number of ships it can accommodate."

The two then discussed many topics.

Lu Zuofu learned from Chen Guangliang that China Merchants Group was preparing to travel to Europe and America this year, and immediately applauded.
Chen Guangliang learned from Lu Zuofu that last autumn, Minsheng Company overcame the suppression from Jardine Matheson and Swire, and occupied 70% of the market share in the upper reaches of the Yangtze River and 50% of the market share in the Sichuan section, which he praised.

Later generations divided the section from Wuhan to Chongqing into three segments: Yichang to Sandouping, Sandouping to Wanxian, and Wanxian to Chongqing; different routes were used to manage the water flow based on the different water levels.

Traveling on the Yangtze River, Chen Guangliang couldn't help but come to the deck and look at the magnificent scenery on both banks.

He finally understood why ancient poets, upon seeing such a scene, wrote so many classic verses:
"I departed from Baidi City amidst the colorful clouds of dawn, and returned to Jiangling a thousand miles away in a single day. The cries of monkeys on both banks never ceased, yet my light boat had already passed countless mountains."

Upon entering Sichuan, Chen Guangliang suddenly said to Lu Zuofu, "Mr. Lu, I would like to cooperate with Minsheng Company to form a fleet to operate cargo transportation and cruise ships on the upper reaches of the Yangtze River."

Upon hearing this, Lu Zuofu immediately said, "That's certainly a good thing, but the upstream transportation and cruise ships may not be profitable. The current market is already approaching saturation."

He was still wary, after all, he had just defeated countries such as Britain, the United States, Japan and Italy, and annexed the fleets of these powers, forming the current situation in the upper reaches of the Yangtze River.

Chen Guangliang is, after all, a major capitalist, so there's a risk that he might be here to steal business.

Chen Guangliang laughed and said, "I'll invest 100 million. You can decide how to choose the ships. You can also manage the fleet. All you need to do is promise me that I'll break even in five years."

Is there really such a good thing in the world? Isn't this like giving yourself free money to spend?
Lu Zuofu said, "What is Mr. Chen doing? How is this any different from giving me money to spend?"

A gentleman loves money, but he acquires it in a proper way. Moreover, he is afraid of getting burned by such a huge sum of money offered to him.

At this moment, Chen Guangliang said, "Sichuan might become the rear area of ​​the War of Resistance against Japan one day. The Japanese have never given up their desire to destroy China. Once a full-scale war breaks out, the coastal areas will inevitably be occupied by them. My investment of one million is just to help make the transportation in the upper reaches of the Yangtze River more convenient. Of course, getting my money back is also very important."

Lu Zuofu was shocked. Only then did he truly appreciate Chen Guangliang's foresight. He also thought of something – could it be that Chen Guangliang's decision to set up a sugar factory in Sichuan was also a prediction of Japan's intention to launch a full-scale invasion of China?
We will certainly live up to the trust placed in us.

In just a few days, Lu Zuofu had come to admire Chen Guangliang's character and no longer doubted the huge sum of money.

In reality, Minsheng Company's total tonnage is estimated to be less than 4 tons, but there are hundreds of these ships, mostly tens or hundreds of tons.

Taking the opportunity, Chen Guangliang said, "I'm investing 100 million in a fleet of ships, just entrusting it to you for management, and you'll collect management fees. The contract is for four years initially, and I have the right to take it back after it expires."

Lu Zuofu knew that this was Chen Guangliang's delaying tactic. The expiration of the contract also meant that Chen Guangliang could participate in upstream shipping operations.

But now, he is no longer worried, because at least he can profit for four years, which is equivalent to indirectly expanding his fleet.

"Can"

"Okay, after I get back this time, I will send shipping professionals to Wuhan to discuss this with you."

To put it bluntly, Chen Guangliang only wanted to recoup the costs of the 100 million yuan, mainly to address the transportation issues on the upper reaches of the Yangtze River that would extend the duration of the war.

He left himself a backup plan: the contract was only for four years, meaning that by 1940, he would have almost his own fleet of ships on the Yangtze River.

Chen Guangliang also had another idea: to buy himself a "cruise ship" so that he could occasionally take his family on a cruise on the Yangtze River when he sought refuge in Chongqing. When they arrived in the capital of Sichuan, Chen Guangliang and his party were warmly received by Liu Xiang, the highest-ranking official there, who even specially arranged for people from the Construction Department to accompany them.

In a restaurant, Liu Xiang, the "veteran warlord," said with a smile, "Mr. Chen, we never expected that a big capitalist like you would come to Sichuan. Shanghai is a famously glamorous city, and it's quite a surprise that you've come to Sichuan with the idea of ​​investing in the sugar industry!"

Chen Guangliang replied, "I heard that Neijiang Tutang is gradually losing a large share of the Sichuan market due to the impact of machine-made sugar, so I'm interested in developing machine-made sugar here. Of course, I'm not entirely sure if this place is suitable yet, and I need to investigate further."

Liu Xiang immediately said, "It's definitely suitable. Neijiang is known as the 'Sweet City.' Mr. Chen, just go ahead and inspect. You can come to me with any questions. In addition, these officials and technicians from the Construction Department can show you around."

A person's name, the shadow of a tree.

Chen Guangliang developed the sugar industry in Guangdong Province, making Chen Jitang one of the top local warlords in the country. It is said that he was very powerful in the army, navy and air force.

Liu Xiang also longed for the addition of a large-scale, mechanically-manufactured sugar factory in Sichuan. Although it wasn't officially sponsored, if the first one succeeded, the government could replicate the second.

That's the value of experience!
Chen Guangliang immediately said, "We really need the help of the Sichuan Construction Department. We plan to import 20000 tons of sugarcane seeds. We hope that we can invest and provide the technology, while the Sichuan Construction Department can provide management and corresponding technical support. Together, we can introduce the most advanced sugarcane varieties to Sichuan."

The weather in Sichuan is quite similar to that in Shanghai, so the sugarcane seeds this time were also imported from Shanghai.

Liu Xiang said casually, "That's great! You're providing both money and technology. Of course, we also have technology; our Construction Department and Agricultural College have technicians to provide it. We also have some funds. We can build a farm together. We can't let Mr. Chen bear the burden alone. After all, this is a blessing for the people of Sichuan."

Chen Guangliang immediately agreed. In reality, although Xu Caijin was also a sugarcane expert, he was now an official of the Shanghai Municipal Construction Bureau. Accompanying Chen Guangliang on this inspection was already a "violation of regulations," but fortunately, Chen Guangliang had enough influence. However, Xu Caijin would never stay in Sichuan, so the sugarcane farms would still have to be provided by Sichuan.

His goal is to introduce superior varieties to Sichuan, and all of them must be planted by April this year.

As for Chen Guangliang's investment in the sugar factory, he definitely wouldn't start production this year. Instead, he planned to take it slow, hoping the machines would arrive in Sichuan in the first half of next year and begin production in the second half, just in time for the start of the War of Resistance.

Chen Guangliang was also worried about interference from warlords and local forces if it was too early.

On that day, Chen Guangliang and Liu Xiang got along quite well, and these local warlords regarded Chen Guangliang as an honored guest.

The city of NJ has the Tuo River flowing through it, which is the perfect condition for setting up a sugar factory.

The sugar mills of all sizes in NJ City are located on both banks of the Tuo River, which is conducive to the transportation of sugarcane.

When Chen Guangliang was inspecting Neijiang, he was accompanied by a large group of people, including people from the Sichuan Construction Department, but there were no problems.

He also took his people to visit a "local sugar" factory. The factory owner was an honest man, and you couldn't tell he was a businessman at all.

"Brother, how many sugar-making workshops are there in Neijiang?"

Factory owner Wu Wenhui said honestly, "There are probably one or two thousand of them, but they're all small, about the same size as mine. But Mr. Chen, don't underestimate sugar mills like ours. In fact, some factories with machinery buy their sugar from us!"

That means there is some mechanical involvement. The earthen pond factory can use the original 'pressing method' to extract sugar juice in the early stage, and then sell the sugar juice to larger factories.

In fact, the level of modernization of equipment at the Neijiang Sugar Factory is not high.

Chen Guangliang then considered that if he opened a modern sugar mill and alcohol factory, it would mean that before 1945, his factory would be the largest in the entire rear area.

It's quite simple. Once war breaks out, it will be difficult to transport equipment from the coastal areas to Sichuan, and it's unlikely that large-scale sugar-making equipment can be transported via the Burma Road. In my previous life, a factory that could produce 7000 kilograms of refined sugar (7 tons) and 500 gallons of alcohol per day was already the largest wartime investment by the Southern Whale government.

Therefore, once he invests in large sugar and alcohol plants, they are virtually impossible to replicate.

Approximately how many acres of sugarcane are planted in Neijiang?

An official from the Construction Department said, "It is probably more than 300,000 mu, with a total output of 18 billion jin (about 900,000 tons), accounting for 70% of the county's land area; in addition, in Zizhong, Jianyang and Ziyang, which are within 30 li on the west bank of the Tuojiang River, the sugarcane planting area reaches 70% to 80% of the total land area."

This is a good thing, it shows that the region itself grows sugarcane and has abundant raw materials.

Of course, the sugarcane here has a low sugar extraction rate and low yield, which is also a disadvantage.

That's why Chen Guangliang plans to purchase 2 jin of sugarcane for experimental planting in Neijiang to improve the quality of raw materials.

"Hey bro, are there any sugar factories in Neijiang with investments exceeding 100 million yuan?"

"Mr. Chen, you're joking. Let alone a million, you can't even find a sugar mill with 500,000. They're all small factories. You can't find a single sugar mill with a million in the entire Sichuan province. We all use the traditional earthen pond method. However, these past few years have been tough for earthen pond sugar mills. The combined efforts of Guangdong sugar and Yangtang have impacted Neijiang's sugar industry, leading to a decline. Foreign sugar sales now account for more than half of Sichuan's total. This has resulted in a shrinking sugar industry in Neijiang, low sugar prices, stagnation in the sugar industry, financial chaos, and the collapse of small capitalists."

They're quite knowledgeable.

"Brother, let me ask you this: if I were to raise funds in Neijiang, and you, a small factory owner, were to join us, would you personally be willing to invest in a modern, mechanized sugar mill together?"

He suddenly realized that one thing Shanghai capitalists were good at was raising funds through IPOs. His original intention was not to make a lot of money, but to work hard for the industrial development of China's resistance against Japan.

The small factory owner looked at Chen Guangliang in surprise and tentatively asked, "Who are you?"

At this moment, an official from the Construction Department introduced him: "This Mr. Chen is the founder of China's modern white sugar industry. Guangdong Province's mechanized sugar industry was developed under his guidance. He not only understands the quality of sugarcane, but is also very proficient in the operation of modern sugar mills."

The small factory owner was shocked; it turned out he really was a big shot.

He then said, "I am willing to invest, but if that happens, won't our traditional sugar mills have no opportunity to produce anything?"

Chen Guangliang laughed and said, "It's not that exaggerated. My purpose in setting up the mechanized sugar factory is simply to resist the impact of imported white sugar. There is still a market for homemade sugar."

"In that case, how much investment would be required?"

"If we were to run an alcohol factory and a sugar factory together, it would cost around 500 million yuan, and that would only be for a factory that can process 500 tons of sugarcane per day."

Today, the price of sugar-making equipment has increased significantly. Equipment that could crush 1000 tons per day has risen from $70 to $110 million.

Chen Guangliang couldn't afford to run a factory like that.

However, a factory that can crush 500 tons of sugarcane per day is equivalent to producing about 70 tons of refined sugar per day, which is about 10 times the size of the largest sugar factory in Sichuan during the War of Resistance against Japan.

The fundraising through public offerings in Neijiang is merely symbolic; even if someone joins, they likely won't have much capital. However, this way, these new shareholders will be able to help the factory establish itself.

Over the next few days, Chen Guangliang and his team conducted a detailed investigation in Neijiang, and even visited neighboring Zizhong. (End of Chapter)