Chapter 27: Seizing the Opportunity to Expand

The next day, an article in the *Shen Bao* created a significant stir in public opinion across Shanghai.

"A rickshaw company called 'Wang’s Carriage House' faced protests from its pullers because the owner suddenly raised the rental fees. Instead of showing restraint, the owner ordered his subordinates to beat the pullers, resulting in a tragedy where two men were beaten to death and many others were injured."

In an instant, public opinion was shaken. In this era, the deaths of two members of the lower class meant little. What mattered was whether anyone would speak up for them and demand justice. Undoubtedly, as one of the most famous newspapers in Shanghai and the entire country, *Shen Bao* exerted immense influence the moment it reported the story. This was precisely why Inspector Gao dared not accept any money in the end.

"It is truly absurd! Raising rents is one thing, but beating people to death? These unscrupulous merchants!" Zhang Qihua exclaimed angrily as he read the news.

When Chen Guangliang had sought him out the previous night, Zhang had dialed the numbers of two friends at *Shen Bao* without a second thought. This was why the newspaper’s reporters were able to arrive at the scene so quickly. Truth be told, during the twenty-plus days Zhang Qihua spent gathering material at the Yangtze Carriage House, he had been "utilized" by Chen Guangliang on more than one occasion. Last time, it was to intimidate Inspector Gao, and this time, it was to enlist the help of journalists.

Chen Guangliang remarked, "The fundamental cause is the lack of proper regulations. If the Public Works Department valued the 'rickshaw puller' demographic, they should establish corresponding laws and regulations—such as preventing rickshaw licenses from being concentrated in large firms and prohibiting arbitrary rent hikes. That would bring improvement."

The two discussed matters often, sharing their thoughts freely. Zhang Qihua nodded and said, "Xiao Chen, what you say is very reasonable. Relying solely on good bosses like you to look after these pullers is far from enough to improve the situation. Next month, I plan to officially publish an article, hoping to draw society’s attention to this group."

Chen Guangliang said with admiration, "Professor Zhang, your concern for the country and the people, and your efforts to enlighten the public, earn my deepest respect."

Zhang Qihua shook his head. If he had initially been driven by a desire for "fame," he had developed a sense of "sympathy and empathy" after getting to know the group. After the events of last night, however, he was overcome with a profound sense of sorrow. The so-called "fame and fortune" were no longer what he desired; he only wanted society to pay attention to these people.

"By the way, Xiao Chen... I have a thousand silver dollars in savings. I intend to lend it to you for your business. Just remember to pay me back later."

Chen Guangliang felt a surge of joy; it was like someone sending a pillow just as he grew drowsy. He had been fretting over the potential partnership with the Traffic Division! However, he said sincerely, "Professor Zhang, you have already helped me too much. How could I possibly take your money?"

Zhang Qihua patted him on the shoulder. "You have helped many pullers yourself! Besides, this money is a loan; just give me an IOU."

Although he was only a university professor with a monthly salary of 240 yuan, he came from a family of status and frequently earned extra income from his writings. Money was not that important to him, and he was optimistic about Chen Guangliang’s prospects.

"All right, then, according to the rules, I will give you thirty percent interest."

"Cut that out. I’m not becoming a loan shark."

Seeing this, Chen Guangliang did not press the matter. In reality, loan sharks were never that polite; even current bank loans carried annual interest rates of around 20%. The times were different, and banks in this era were essentially robbing people.

By noon, Zhang Qihua had readily transferred the 1,000 silver dollars from his bank account to Chen Guangliang’s name. Chen Guangliang signed a formal promissory note, agreeing to repay the loan in one year with zero interest. At that moment, Chen realized how fortunate he was to have such noble benefactors.

Of course, one could not deny that he had earned these "benefactors" through his own merit. Without the outline and material for *Rickshaw Boy*, he would never have become friends with an intellectual like Zhang Qihua; without his business acumen and foresight, Li Chao would never have chosen to be his partner. You reap what you sow.

...

After receiving the money, Chen Guangliang went straight to the Traffic Division, where, introduced by Li Chao, he met with Section Chief Smith. In the office, with Li Chao acting as both assistant and interpreter, they began negotiations for the partnership.

Smith was a large, burly Englishman with a thick mustache and eyes that glistened with the scent of money. Officials traveled thousands of miles for wealth, and colonial or foreign-concession officials were no different—they were all looking to get rich.

"Mr. Chen, I can provide you with twenty-four official licenses. You only need to purchase twenty-four rickshaws to begin operations immediately. As for the profit-sharing, what do you propose?"

Chen Guangliang understood perfectly: Smith’s words implied that their interests had to come first—otherwise, why would they bother partnering with him?

"Mr. Smith, your division recently confiscated twenty-four rickshaws, and since the original owner is currently embroiled in a lawsuit, I would like to purchase that batch of vehicles."

Li Chao translated for his superior, adding an explanation about the original owner’s legal troubles. Upon hearing about the deaths, Smith did not show anger, but rather remarked casually, "In that case, you may have the fleet for 1,000 silver dollars."

Chen Guangliang already knew that these twenty-four rickshaws were in seventy to eighty percent new condition, with a real value of around 1,200 silver dollars. Smith’s opening price was not unreasonable. Of course, what Smith really cared about was the profit share.

Chen Guangliang proposed, "Very well. In this arrangement, I intend to allocate 40% of the equity to the Traffic Division, 10% as a personal stake for Mr. Smith, and the remaining 50% for myself."

Smith did not agree immediately. "You are using the cost of old vehicles as the basis for the investment, aren't you? And even if you were using new vehicles, our total share should be 60%."

The twenty-four licenses were worth 3,600 silver dollars, and Chen was valuing the twenty-four rickshaws at 2,400 silver dollars as his equity contribution, while also factoring in his efforts in management and operations.

Chen Guangliang explained clearly, "Mr. Smith, excellent management and operation are the foundations for long-term, lucrative returns on this project. For example, our first batch of rickshaws... With these twenty-four vehicles and licenses valued at 6,000 silver dollars, I can ensure the investment is recouped in ten months, with an average monthly profit of 600 silver dollars. Whereas, if you simply sold them off in a one-time transaction..."

The Traffic Division’s license-selling was a one-off deal. With Chen Guangliang managing them, it became a long-term revenue stream. Smith was not foolish; he understood the difference.

Smith laughed. "Good. I am very happy with this cooperation. I will have Li Chao work with you on this."

In truth, Smith had just been testing him; getting a total of 50% profit was already excellent. He would have even agreed to 40%, as they could not participate in the operations directly. He had not expected Chen Guangliang to be so sensible as to allocate an extra 10% share to him personally. The man was a talent!

"Understood."

Chen Guangliang was also delighted. Although he only held 50% of the shares, this deal allowed him to break into the Traffic Division’s network. He classified this as "Project D" and planned to pay out dividends to the shareholders regularly, which would certainly please the Englishman. He had intentionally understated the monthly profit to leave room to pay "operating expenses," though in reality, the profits would surely be even more ideal.

As they left the Traffic Division, Chen Guangliang immediately said to Li Chao, "Out of my 50% stake, I have set aside 5% for you as a management fee." In reality, it was a kickback.

Li Chao immediately refused. "How could I take this? The Traffic Division has already taken enough advantage of you!" In his view, the fact that the Traffic Division could now participate in the rickshaw business, rather than just doing a "one-off" deal, was entirely due to Chen Guangliang’s efforts.

Chen Guangliang said seriously, "Take it. If you don't, I will feel uncomfortable, as you are involved in the management as well."

There was nothing wrong with him holding 45% of the shares. Moreover, what Chen valued most right now was not "profit" but "connections," because in this era, saving connections was better than saving money.

Seeing his resolve, Li Chao stopped refusing.

That day, Chen Guangliang was in high spirits. He had doubled the scale of his business in one go; it felt like a dream. With Project A (3 vehicles), Project B (6 vehicles), Project C (12 vehicles), and Project D (24 vehicles), the Yangtze Carriage House now owned 45 rickshaws, becoming a legitimate firm. In Projects A, B, and C, only two-thirds of the licenses were genuine, but in Project D, all of them were authentic.