Chapter Nine: The Initial Rise of Power
Before Li Chao finished work, Chen Guangliang had already arranged for two rickshaws to wait nearby. Together, they went to a small food stall and ordered pan-fried dumplings and beef soup.
Naturally, Li Chao did not mind; after all, he could tell Chen Guangliang was not wealthy.
“Mr. Chen, how old are you this year?”
“Seventeen.”
Li Chao was surprised. “Only seventeen... I’m six years older than you!”
It was precisely because Chen was young that this partnership could come about today.
There were several Chinese staff members in the Transportation Department, but only Li Chao was willing to meet with Chen Guangliang.
Chen Guangliang took the initiative to share more: “I left Ningbo at thirteen to make my way in the world... I even worked pulling rickshaws with my second uncle for a while. But Mr. Li, rest assured, I have the support of a university professor, so I have the means to buy a rickshaw and a license.”
Li Chao felt he had met a remarkable individual today!
But that was life in Shanghai—today you might have nothing, and by next year, you could have everything. The reverse was also true.
“Hmm... I’m still curious, what exactly is this cooperation you mentioned?”
Chen explained, “Currently, the monthly rent for a rickshaw is nearly thirty yuan, while a brand-new rickshaw costs only a hundred yuan. Add a license fee of one hundred and fifty yuan, and the total cost is about two hundred and fifty yuan, which means it takes roughly eight months to break even. That’s one point. Now, the national situation isn’t optimistic; the GM Party is cracking down everywhere, so many will flock to Shanghai for refuge. Not only real estate but transportation will have great potential. Rickshaw licenses will surely continue to rise, possibly reaching three hundred or even five hundred yuan in the future.”
“I didn’t expect Mr. Chen to have such insight. I accept you as my partner.”
When Chen spoke of the influx of people coming to Shanghai to seek refuge, and the investment potential in real estate and transportation, Li Chao knew he had found an excellent partner.
Li Chao himself came from a lower-middle-class background, earning just over thirty yuan in the Transportation Department. The rest of his income came from side dealings like reselling licenses, but the main profits were controlled by others, leaving him with little.
Chen Guangliang said happily, “With Mr. Li joining, our venture will be even stronger. My plan is to raise six hundred yuan in initial capital to purchase two licensed rickshaws and register them, plus one unlicensed rickshaw to operate covertly.”
Li Chao questioned, “An unlicensed rickshaw? Aren’t you afraid of being caught? Those don’t fall under our department’s jurisdiction. Patrol police arrest them on the spot, sometimes seizing the vehicle.”
Chen confidently replied, “To get rich, one must take risks. I’ve operated for a while and found there’s room for unlicensed rickshaws. As long as you avoid capture for three months, the costs are recovered. Even if caught, a bribe or a fine can get you through. The cost is manageable.”
Li Chao thought for a moment and said, “Splitting the efforts is one way. How about I invest two hundred yuan?”
Chen immediately responded, “Perfect. I’ll also invest two hundred. The remaining two hundred will come from reliable rickshaw pullers I know. If they become shareholders, the business will be safer and more united.”
Li Chao admired, “Every step you take is very professional. Having rickshaw pullers as shareholders is rare—among hundreds of rickshaw companies in Shanghai, you might be the only one.”
“We aren’t quite a company yet, but I believe we can grow into a good one.”
“Alright, I trust you!”
From then on, they became much closer.
Li Chao shared some of his own background: he had been in the Transportation Department for three years and was from Suzhou.
He also told Chen that with funding, he could help Chen obtain cheaper licenses than those available on the market, though the quantity was limited—but enough for Chen’s current needs.
...
The next day.
Yang Qingshan invited six rickshaw pullers to a gathering at Fan Gua Alley, including He Xiangdong and Pan Cheng, whom Chen favored, as well as four others who were younger and less connected to Wang Chengyun—considered ‘available men.’
Everyone looked curiously at the newly well-dressed Chen Guangliang, wondering when rickshaw pullers had become so respectable.
“Everyone, sit down. Let’s eat and talk!”
They gathered in Yang Qingshan’s cramped home, which could still seat eight men without issue.
Yang Xiuying, a young girl, busied herself preparing food and drinks. Today, she had specially bought four pounds of meat and brought out some wine.
Once seated, Chen said, “I’m sure you heard what Boss Wang said yesterday—that a license costs over two hundred yuan. That completely blocks our path to owning rickshaws!”
Hearing this, He Xiangdong was most frustrated. “The rich get richer, the poor get poorer. Damn it, what a broken society.”
His dreams were shattered, leaving him despondent.
Everyone cursed society and capitalists freely, their grievances pouring out unrestrained.
Chen Guangliang remained unfazed and continued: “Yesterday, I went to the concession’s Transportation Department for more inquiries. What Boss Wang said was basically true. But I was fortunate to meet an insider who told me that if I can pay 150 yuan, he can sell me a license.”
“Also, you might not know, I recently received support from a university professor, so I have the means to buy a rickshaw.”
Everyone was amazed and asked for details, but Chen evaded them.
He went on, “So, I invited you all here today to offer a partnership opportunity. Mr. Li from the Transportation Department and I hit it off and decided to start a rickshaw company, raising six hundred yuan in capital through shareholders. We’ve already gathered four hundred yuan, and there’s two hundred left for you.”
He Xiangdong’s eyes lit up immediately. “Six hundred yuan buys how many rickshaws?”
Chen replied, “Two brand-new licensed rickshaws, plus one unlicensed one... I’ve calculated that with a six hundred yuan investment, it takes about eight months to break even. This investment is much better than putting money with Boss Wang. Now, with someone from the Transportation Department appreciating us, we have a great advantage.”
Someone asked, “Sounds good, but when do we get dividends? Monthly?”
Chen answered, “Since it’s a business, we’ll do monthly accounts with shareholders. The accounts will be very clear. As for dividends, there’s no need to pay out immediately. Your investment is essentially in the company’s funds. This is different from Boss Wang, where money doesn’t grow and there are no returns. As shareholders, not only will your money earn money, but licenses will also appreciate. After a few years, your investment could multiply several times. Dividends alone might feel like extra wages.”
Everyone grew eager. He Xiangdong stood up and declared, “I want to be the first investor. Which company lets pullers be shareholders and genuinely make money? Only Boss Chen sincerely leads us to wealth. Doubling assets in eight months—where else can you find such a deal? I’ll invest forty yuan.”
Yang Qingshan quickly said, “I’ll invest fifty yuan.”
Instantly, only 110 yuan remained, with five people left.
“I’ll subscribe thirty yuan.”
“I’ll take twenty yuan.”
The shares were quickly oversubscribed, so Chen personally arranged for the remaining four to invest twenty yuan each.
Chen then explained, “After buying the rickshaws, I plan a three-shift schedule: 2 a.m. to 10 a.m., 10 a.m. to 6 p.m., and 6 p.m. to 2 a.m. Rent will be 0.3 yuan for the first shift and 0.35 yuan for the latter two. That way, daily rent reaches one yuan, maximizing company income.”
Someone asked, “We’re shareholders—do we still pay rent?”
That was foolish.
He Xiangdong immediately said, “The rent from the pullers is how the company makes money. We still pull rickshaws to earn, but our investment money makes money too, snowballing into bigger returns later.”
He was secretly pleased—being the fourth-largest shareholder, he naturally followed Chen closely.
Chen patiently explained, and everyone soon understood.
As for operating unlicensed rickshaws, they naturally chose the three smartest men, with Chen and He Xiangdong volunteering.
This gathering was a great success. Soon Chen had eight men as his core team, including Li Chao.
Since all these men were shareholders, they naturally took great care of the company’s affairs.