I am "not my true character", so this is the right question.
The China Shipping Merchants Company is my country’s earliest shipping company and the earliest bureaucratic capitalist enterprise in my country. It was founded by the Westernization bureaucrat Li Hongzhang in the 11th year of Tongzhi (1872). The next year, the General Administration was formally established in Shanghai and designated as a government-supervised commercial enterprise. Li Hongzhang once boasted that "Inviting Merchants and Ships" was actually the most successful writing in the 40 years since he started Westernization. However, although Li Zhongtang was most proud of the Steamship Merchants Company, although it had a wonderful beginning, what awaited it in the end was the fate of bankruptcy. Mitsubishi Corporation of Japan, which was roughly at the same time, is still a giant in the world's machinery manufacturing industry today.
Background of establishment
The Westernization Movement's reform and strengthening in the late Qing Dynasty originated from "learning from the barbarians to develop skills" and their goal was to "control the barbarians." In this way, the reform and construction path of military industry and national defense construction in the late Qing Dynasty had priority. However, the Westernizationists soon discovered that in order to achieve rapid development of military industry and national defense construction, a solid social and economic foundation must be established, because only when the people are rich can the country be strong. Soon, Li Hongzhang and others not only attached importance to the "military Westernization" project, but also vigorously developed the "civilian Westernization" cause.
Especially after the two Opium Wars, Western powers seized the privilege of trading and navigation along China’s coasts and rivers. Foreign companies in Hong Kong, Shanghai and other places took advantage of these privileges to operate ship transportation business - carrying cargo and people. Among them, the most famous are the American Qichang Steamship Company, the British merchant Jardine Matheson Steamship Company and the Taikoo Steamship Company. They have monopolized the shipping industry along my country's coasts and rivers and have made huge profits. For example, Qichang was established in Shanghai in 1862. It started early and had a large tonnage. In 1866 alone, it made more than 220,000 taels in profit, which surged to more than 950,000 taels in 1871. Within a few years, the total capital soared from the initial one million taels to 2.25 million taels.
Compared with the "barbaric growth" of foreign shipping companies, China's traditional sailing shipping has suffered a devastating blow. For example, in the summer of 1862, a boatman from Wang Yongsheng, the veteran of the Shanghai shipbuilding industry, committed suicide by taking poison. You know, during the Daoguang period of Jiaqing, the sand ship transportation industry was unprecedentedly prosperous. It takes about a month to transport soybeans from north to south and grain from south to north. Calculated in this way, a sand ship can make seven or eight round trips a year, making a huge profit. It is said that at its peak, Shanghai Port had 5,000 sand ships and more than 100,000 sailors.
Of course, this also provides some conditions and opportunities for the emergence of China's modern national shipping industry, but China must seize the opportunity: use Western advanced shipping tools and management methods to resist foreign powers from invading the shipping industry.
In fact, in order to solve the "water transport crisis", as early as 1867, Rong Hong suggested that Zeng Guofan raise investment and collect shares to purchase advanced Western ships and form a China Shipping Company. However, in order to "maintain stability", Zeng Guofan replied: "Carrying grain... is a common business in Shachuan. It is not a last resort and it is not convenient to make sudden changes to the plan."
In March 1872, the Prime Minister's Yamen once again wrote to Zeng Guofan , Li Hongzhang, asked about the use of ships for water transportation, hoping that they would come up with a practical plan. A month later, Zeng Guofan died of illness, and the heavy burden fell on Li Hongzhang. As a result, three suggestions were obtained: repair the canal; repair abandoned sand ships and continue to maintain maritime transportation; and the imperial court increased the water transportation fees of the sand ship industry. However, all three suggestions were rejected by Li Hongzhang. He believed that the canal, which has a history of more than 800 years, has a transportation capacity of only 100,000 shi per year, even if it is fully utilized. It will have no impact on the overall water transportation situation; it obviously has convenient shipping conditions. , it is not crazy to spend huge sums of money to build the canal; repairing the sand ships will require at least 30 million taels of silver, and more than 400 warehouses with a capacity of more than 10,000 stones will need to be built. Where can the imperial court have so much money? Increasing the freight rate of sand ships may save the country for a while but not forever.
Finally, in August of the same year, Li Hongzhang ordered Zhejiang Shipping Commissioner Zhu Qiang and his staff Sheng Xuanhuai to draft charters for the planned "China Shipping Investment Promotion Agency". Zhu Qiang took his younger brother Zhu Qizhao to Shanghai to establish the "Ship Investment Promotion Bureau".
In order to enable the company to operate, Li Hongzhang took out 50,000 taels of personal funds and lent 135,000 taels of Zhili Lian's salary to the company at an interest rate of 7. On December 23 of the same year, he submitted a letter to the Prime Minister's Yamen regarding the establishment of China Shipbuilding Industry Corporation. Merchants Report. In the report, Li Hongzhang proposed that "Chinese businessmen raised funds to form a steamship company, which was guided by a government-appointed manager, and granted water transportation patents to ensure the company's profits." He also clearly pointed out the basic concept of government-supervised commercial operations: "Currently, there are no government-built merchant ships. Since there is no need for government and businessmen to jointly organize the business, the government should still supervise the business affairs. The government should summarize the outline, examine the pros and cons, and let the business directors and others make their own proposals to please the businessmen. ”
January 4, 1873. On August 1, the Steamship Investment Promotion Bureau officially opened for business. Its entire assets were three ships, warehouses and docks in Shanghai and Tianjin, as well as a patent right to transport 200,000 shi of grain.
Zhu Qiang wanted Hu Xueyan to take the lead in investing, but received no response. It turns out that at that time, Shanghai businessmen were worried that their business rights would be "eaten" by "official governors". Therefore, it was not until April that 10,000 taels of cash and 100,000 taels of subscription commitments were raised.
"Commercial" management
After the establishment of the Steamship Merchants Bureau, it quickly seized the sailing business with the help of its superior facilities and technology. Although there was also competition from ocean-going shipping companies, it has won many awards year after year. With huge benefits, the company has been able to continue to grow and develop, and "the prosperity of its business will almost keep pace with that of the Western Shipping Company." All this, in addition to Li Hongzhang's active support, is also related to the fact that the bureau's executives are "good managers" and nominally implement "official supervision and commercial management", but the management power of the China Merchants Bureau is in the hands of businessmen Tang Tingshu and Xu Run. In order to attract giant businessmen to invest in the company, Tang Tingshu took the lead in investing 80,000 taels of silver, and Xu Run took the lead in investing 240,000 taels of silver. They each mobilized relatives and friends to invest heavily. Soon, wealthy businessmen from all over the country began to join, and the China Merchants Group's 1 million tael stock offering task was completed in a short period of time. In the second year after the reorganization, China Merchants' net profit reached 80,000 taels of silver. Immediately afterwards, Tang Tingshu accelerated the purchase of ships in order to expand his business. By 1876, China Merchants already owned 11 ships, becoming a new force in the shipping industry at that time.
With the outbreak of the Sino-French War in 1883, the great powers not only invaded our country's borders, they also accelerated their economic aggression. Relying on the terms of the unequal treaties, the Western powers doubled the number of foreign ships at my country's treaty ports. China's invasion of China was serious and the economy was seriously affected. In order to get rid of the trade and financial crisis, the Qing government accelerated the pace of controlling civilian enterprises. The largest private shipping company at that time, the Steamship Merchants Company, naturally became the target of the government's "attention".
At that time, a financial crisis broke out in Shanghai. At this time, Xu Run was in charge of the Steamship Investment Promotion Bureau. Tang Tingshu, the original general manager, had resigned. Sheng Xuanhuai, the official representative and general manager, was also impeached and resigned due to corruption.
Faced with the unprepared financial crisis, Xu Run was caught off guard and his management was poor, causing the company to suffer huge losses. Li Hongzhang took the opportunity to send Sheng Xuanhuai, who was already at Tianjin Customs Road, to "arrive at the Bureau to maintain everything."
In the end, Sheng Xuanhuai "took advantage of" the opportunity to investigate and revitalize the China Merchants Group and "squeezed out" Xu Run and Tang Tingshu.
The "official" period
In modern Chinese history, Sheng Xuanhuai is known as the "Father of Shang". Even in the later Republic of China period, he relied heavily on him, but he was diligent and pragmatic. Sheng Xuanhuai introduced more bureaucracy during his tenure. The company's financial, personnel, business and other major matters are all decided by Sheng Xuanhuai, the prime minister, rather than the board of directors. The appointment and dismissal of supervisors are all subject to the approval of the Beiyang Minister. In this way, the steamship investment company completely became a government-owned enterprise in the hands of Li Hongzhang.
After 1884, private businessmen, who had a sense of crisis, began to decline greatly in their investment enthusiasm for the Steamship Merchants Company. Since 1888, the Steamship Investment Promotion Bureau has entered the period of "government-run" from "government-supervised commercial management". In 1890, the company's total capital plummeted from a peak of 5.335 million to 2.751 million. Profits fell sharply, and by 1920, the Steamship Merchants Company's losses had reached 20 million taels.
The only one who benefited was the Qing government: According to statistics, in the 27 years from 1884 to 1911, two modern enterprises, the Steamship Merchants Bureau and the Telegraph Bureau, reimbursed the government 3.5 million taels of silver. Accounting for 60% of the total share capital of the two bureaus.
No wonder Zheng Guanying revealed endless helplessness and desolation in "Business Lament": "The ship invites investment for the Kaiping Mine, and the businessmen who created it all have business shares."
At about the same time, the Meiji government of Japan transferred the largest domestic shipyard, Nagasaki Shipyard, to Yataro Iwasaki at an astonishingly low price. This was later known as "Mitsubishi" and later became a complete trading company. business.
In 1909, the Steamship Merchants Bureau was placed under the jurisdiction of the Postal and Communications Department. In fact, the fate of the Steamship Merchants Company was not an exception. Almost all Westernization enterprises with private capital in the late Qing Dynasty, such as Kaiping Coal Mine, Shanghai Machinery Weaving Layout, Tianjin-Shanghai Telegraph Bureau... had a similar fate.
Despite this, the establishment of the Steamship Merchants Bureau still has practical significance: it introduced some modern Western science and technology, trained a group of skilled workers, objectively disintegrated China's feudal economy, and stimulated the development of capitalism. ; Played a certain role in resisting foreign economic aggression.
I have written so much, and I would like to give it a cool thumbs up if it passes by.