A century-old wealthy family that rose from Shanghai

On this day, Chen Guangliang visited the Xinfeng Textile Factory in Hechuan. This was the first factory he inspected after arriving in Chongqing.

Xinfeng Textile, as one of the earliest textile factories to be established in Chongqing, was among the top three textile factories in the entire region.

Currently, Chongqing has three major textile factories: Xinfeng Textile, Yufeng Yarn Mill, and Yuhua Yarn Mill. All three factories have more than 3 spindles, accounting for 70% of the total equipment and 60%-70% of the total cotton yarn production, effectively giving them a monopoly.

Yufeng Cotton Mill was established in 1919 in Doufuzhai, Zhengzhou, Henan Province, by Mu Ouchu. In 1936, it was acquired by Song Ziwen's Huaxia Bank and renamed "Yufeng Heji Cotton Mill," which was then taken over by Shu Yunzhang, the head of the Zhengzhou branch of Huaxia Bank. In April 1938, Yufeng Cotton Mill dismantled and relocated its machinery. First, 56000 spinning spindles, more than 200 looms, as well as generators, boiler parts, etc., were transported to Hankou, then stored in Shashi and Yichang, and finally, it was decided to move to Chongqing.

Yuhua Cotton Mill, a subsidiary of Hankou Yuhua Textile Company, was founded by Xu Rongting, Zhang Songqiao, Su Taiyu, and others. Xu Rongting was born in Kanjiahe, Wuchang. In his youth, he worked as a manager in a herbal medicine shop owned by a fellow family. There, he met Li Yuanhong, the commander of the First Battalion of the Imperial Guard Cavalry, and the two became sworn brothers, maintaining a close relationship. After the outbreak of the War of Resistance against Japan, in August 1938, Yuhua Cotton Mill packed all its machinery and equipment, totaling over 3000 tons, and shipped them to Yichang, intending to hire a ship to transport them upstream to Chongqing.

Besides these three major textile factories, there are three other textile factories with more than 1 spindles. In Chongqing and even the entire rear area, these six textile factories are the largest in scale, accounting for more than 95% of the production capacity.

Xinfeng Textile's factories in Chongqing were actually divided into five parts, one in Hechuan and another in Xiaolongkan. This was Chen Guangliang's strategy from the beginning—to prevent the entire company from being destroyed by Japanese bombing.

General Manager Wang Zhiyu explained to Chen Guangliang, "Mr. Chen, this factory has been bombed twice. Only through the efforts of all the employees to salvage the machines have we been able to maintain production."

Chen Guangliang nodded. After all, the Japanese bombing couldn't be too precise, and the shells of this era didn't have the power of later ones. After the bombing, many pieces of equipment could be repaired.

"It is only because we all work together that Xinfeng Textile has achieved what it has today. In addition to establishing the Ning'an Foundation, I am also concerned about the welfare of our workers during my trip to Chongqing. Since the money has been donated, I cannot neglect the management and staff. Next, we need to discuss raising everyone's salaries in the form of subsidies."

Wang Zhiyu said with some difficulty, "Won't this cause problems for other textile factories?"

Everyone is being exploited, and you say you want to increase welfare? Isn't that just provoking public outrage?

Chen Guangliang said firmly, "I'm not even going to keep my factory, so why should I be afraid of these things? Of course, that's why I said it would be distributed as a stipend, that is, a little rice and oil for everyone every month, as a way to cope with the devaluation of the currency and the rise in prices."

"Okay, I understand!"

Chen Guangliang then toured the entire factory.

The factory here covers an area of ​​180 acres and includes not only factory buildings but also many employee dormitories. This is precisely why the Japanese bombing raids didn't always find the factory. As for the deaths and injuries of some workers, that was simply unavoidable; in chaotic times, human life is cheap.

Xinfeng Textile's factories in Chongqing were located in five different places, which minimized the damage caused by the bombing.

During the inspection, Chen Guangliang asked, "I've heard there are some tricks to the cotton procurement and cotton yarn supply here?"

Wang Zhiyu nodded and said, "Our Xinfeng factory, along with Yufeng and Yuhua factories, practically monopolizes the textile industry in the rear area. Therefore, when purchasing cotton, the three of us systematically buy it when prices plummet, stockpiling enough cotton—generally a two-year supply. At this time, the price of cotton products in Chongqing is effectively controlled by our three major yarn mills. If these three mills don't publish prices for a few days, or don't supply cotton yarn for 10 to 15 days, the market price of cotton yarn will definitely skyrocket."

Many textile mills are unable to spin cotton into yarn, or the cost of spinning yarn themselves is too high, so this step is basically controlled by large textile mills.

Chen Guangliang did not comment on Xinfeng Textile's involvement in cracking down on cotton farmers and cotton merchants, as well as its manipulation of cotton yarn supply; after all, this is the cruel reality of business.

If Xinfeng Textile doesn't participate, it will only become a lamb to the slaughter in the market, because the speculative atmosphere here is already starting to resemble that of the Shanghai Stock Exchange.

Chen Guangliang, on the contrary, said in support: "We should maintain reserves of cotton and cotton yarn for at least two years, and the same applies going forward!"

"Okay, we will definitely strengthen our reserves in this area."

Chen Guangliang attached great importance to cotton reserves because once the Pacific War began, Japan would inevitably strengthen its economic blockade against China, leading to a shortage of cotton textiles and soaring prices.

Finally, Wang Zhiyu tentatively asked, "Mr. Chen, should Chongqing Xinfeng Textile consider expanding its scale?"

That way, we won't have to watch money go to charity for nothing.

Chen Guangliang said, "If we could expand, headquarters would naturally think of this issue. There are too many constraints. For example, even if the machines reach Yangon, there will be many problems along the way; moreover, raw materials are a very weak link. Therefore, maintaining the current production capacity is already quite good!"

Wang Zhiyu nodded and said, "There are indeed many problems."

If Chen Guangliang hadn't known that once the Pacific War began, Japan would inevitably blockade the economy of the rear areas, and that the Nationalist government would also implement policies such as cotton control and cotton yarn price control, he might have considered dismantling some equipment from factories in the concessions or Hong Kong and transporting it from Rangoon to the rear areas.

But Chen Guangliang knew that starting in 1942, the economy in the rear would probably also deteriorate, and at least private enterprises would face extremely difficult times.

Although Chen Guangliang has already donated the profits from these factories, he still hopes that these factories will become more profitable so that the funds of the Ning'an Foundation can help more people.

Two days later, Chen Guangliang, accompanied by his secretary and bodyguards, headed towards Neijiang to visit the sugar factory there.

The natural choice for the journey from Chongqing to Neijiang was by boat. To save time, Chen Guangliang and his group opted for a specially designed modern powered vessel. This boat was over twenty meters long and had 155 horsepower, but the trip still took a full ten hours.

Upon arriving at the sugar factory dock in Neijiang, Cao Mingxian was already there with his men to greet him; they were all old acquaintances from his time in Shanghai.

"Mr. Chen, we have prepared a banquet to welcome you! Please rest well today, and we can tour the factory tomorrow!"

"Alright, let's not stand on ceremony. Come on, it's been a long time since I've seen you all. Let's talk freely tonight."

Everyone happily followed Chen Guangliang to the factory canteen. They were all talents in the sugar industry, who had witnessed the success of China's white sugar industry with Chen Guangliang back then, and they are still the leaders of China's white sugar industry today.

Upon arriving at the canteen, a sumptuous dinner had already been prepared, including mutton soup, crispy rabbit with dates, and braised pork belly with winter bamboo shoots, all accompanied by Wuliangye liquor. It was truly a case of "when in Rome, do as the Romans do."

During the meal, the conversation naturally turned to sugar factories and alcohol factories.

Cao Mingxian proudly reported to Chen Guangliang:
“Boss, you won’t find an entrepreneur with your foresight anywhere in the country. There are over 4000 sugar mills and sugar canopies in Sichuan Province, producing 15 tons of sugar, and we account for almost one-twelfth of that output.” “In the Neijiang area, last year there were 50.8 mu of sugarcane, producing 164.4 million tons of sugarcane and 14.5 tons of sugar; last year we purchased less than 12.6 jin of sugarcane (one-thirteenth of a liter), but produced as much as 1.2 tons of sugar, accounting for one-twelfth of the province’s total.”

At this point, everyone couldn't help but applaud.

Cao Mingxian continued:

"Firstly, the sugarcane we purchase is all of the superior varieties we selected that year, which have a high sugar extraction rate."

"Secondly, we are the only ones in the entire province that have achieved full mechanization and modernization from juicing to sugar production."

Chen Guangliang raised his glass, stood up, and said, "Back then, when we came to Sichuan to set up the sugar factory, it was you who gave up the superior conditions in Shanghai and came to this poor and remote place. In the end, it was thanks to you technicians. Come on, let's drink!"

"Without Mr. Chen, we wouldn't be here. Cheers!"

Everyone stood up excitedly, and the people at all five tables downed their glasses of baijiu in one gulp.

Then, Chen Guangliang asked, "What is the specific situation of the sugar factories throughout Sichuan?"

He knew that it was unlikely that he would be able to purchase a complete set of equipment to build a factory in Sichuan after the war; at most, it would only be semi-mechanized.

Wu Xinbing, the chief engineer of the electrical equipment, then introduced:
"The more than 4000 sugar mills and sheds in Sichuan were basically earthen workshops. Later, after the Nationalist government moved into Chongqing, it wasn't until January of this year that the Huaxia Bank, Xinhua Bank, the Resources Commission, and commercial shareholders jointly established the Huaxia United Sugar Refining Company, which began production. This factory was a processing enterprise, a semi-mechanized sugar factory combining earthen workshops with modern machinery, colloquially known as a 'half-finished sugar factory.' It purchased refined sugar as raw material, processed it into refined sugar and alcohol, and could produce 7000 kilograms of sugar daily (about 200-250 tons per year) and 500 gallons of alcohol, completely incomparable to ours."

"In Neijiang, Zizhong, Yibin and other places, there are also a large number of very small sugar factories such as Huayuan Sugar Factory, Yiliu Sugar Factory, Xinyi Sugar Factory, Pimu Town Sugar Factory, Lifengheng Sugar Factory, Taiji Sugar Factory, Southwest Sugar Factory, Jingxing Sugar Factory, Neijiang Sugar Refining Factory, etc., most of which are privately owned. These mechanized sugar factories are semi-mechanized in production, combining new methods with traditional methods. Except for Huanong Sugar Factory, which has two sugar presses, the rest purchase sugar and process it."

"Our brand-new equipment can process 500 tons of sugarcane per day, making it the only one of its kind in the entire rear area. Not only is its juicing capacity dozens or even hundreds of times greater than others, but our refined white sugar is also the most popular."

Goodness, he's completely unrivaled.

However, when they first set up the factory in Neijiang, they did encounter a lot of trouble. Just by giving gifts to the warlords, they were basically working for nothing for the first year. It wasn't until the start of the War of Resistance against Japan that the sugar factory received real protection. In 1939, due to the destruction of sugar factories along the coast, Xin'an Sugar Factory experienced explosive profits, earning more than 600 million yuan that year.

In fact, in 1936, Chen Guangliang dared to invest more than 500 million silver dollars in Neijiang and Zizhong, which undoubtedly made people think he was crazy. Although these factories did not start production and expand their capacity until 1937, it was still unbelievable.

As a result, six sugar factories in Guangdong Province were bombed. The sugar in the anti-Japanese war zone was basically supplied by Sichuan (more than 90%), and the Xin'an Sugar Factory accounted for 8% of Sichuan's sugar production.

Chen Guangliang said with a smile, "It's hard to imagine how everyone protected this factory in the beginning!"

Although they had managed to get in touch with Liu Xiang and Lu Zuofu (who was then the director of the Construction Department and a close confidant of Liu Xiang), the situation below was still quite complex.

Cao Mingxian said, "It's very simple. We had a guard team when we built the factory, and everyone was armed. In addition, we had the support of General Liu and Director Lu at the time. All that was left was to fight to the death."

Chen Guangliang nodded. He had heard Lu Zuofu mention that when Lu Zuofu invested in industry, he also developed an armed team to wipe out the bandits in the area before he could truly develop his business.

In this era, if you have money, you can buy weapons and develop armed forces, just like the Xin'an Sugar Factory did back then.

Of course, a lot of money was spent on bribes; much of the profits from 1937-1938 were used to bribe officials.

"As everyone knows, I've established a charitable foundation this time, and the profits from the sugar and alcohol factories will be used for charity. However, the sugar factory's success today is inseparable from its management and technical staff, as well as the workers in the factory. So, I'm here today to formulate a high-welfare policy. After all, I can't let people say that I pretend to be a good person on the outside but am harsh on my subordinates and workers!"

"The salaries of our management and technical staff have always been very high, even the factory workers earn significantly more than here."

"that is"

Seeing everyone's feedback, Chen Guangliang said with satisfaction, "Prices are rising sharply now, so let's raise welfare benefits first, and then adjust them further depending on the situation. In short, I want everyone to be satisfied!"

Thank you, Mr. Chen.

That night, I stayed in the management's dormitory area, which was quite nice.

When large factories like these came to the rear to build their facilities, they would establish dormitories and living areas. After all, the management and technical personnel were transferred from Shanghai, and they certainly couldn't be treated poorly. Textile factories such as Yufeng and Yuhua built large dormitory areas.

Moreover, the main reason is that land and labor costs are cheap here.

In this era, companies that want to attract talent can only provide comprehensive services. Even in Shanghai, the financial and industrial sectors provide dormitories for management and technical personnel, and banks even provide dormitories for their employees.

After inspecting the sugar factory in Neijiang, Chen Guangliang traveled up the river to the Xin'an Alcohol Factory in Zizhong.

The alcohol plant mainly produces power alcohol and anhydrous alcohol.

In the early stages of the War of Resistance against Japan, alcohol was commonly used in automobiles, typically mixed with 20-30% gasoline. Sometimes, a mixture of ether and alcohol was used, known as synthetic gasoline or gasoline substitute. Later, as gasoline became more scarce, vehicles, except those powered by charcoal, generally used alcohol directly as fuel, without mixing it with gasoline.

Anhydrous ethanol (with an alcohol purity of 99% or higher) can be used as aircraft fuel. Last September, at the invitation of the Aviation Commission, Xin'an Alcohol Factory successfully conducted a test in Chengdu using anhydrous ethanol blended with aircraft gasoline to start an aircraft. The Aviation Commission adopted and promoted the blending policy.

Because of the enormous output of Xin'an Alcohol Factory, which produces about 2000 gallons per day, accounting for one-fifth of the total output in Sichuan.

This factory directly supplies military goods, and there are even personnel from the military supply department stationed there. (End of Chapter)