Chapter 85

In the early Ming Dynasty, maritime smuggling was strictly prohibited by the imperial court. Smugglers not only had to face the harsh natural conditions at sea but also had to be cautious to avoid the court's navy. A single mistake could cost them their fortune and even their lives. Therefore, even though everyone knew that smuggling was extremely profitable, those who dared to engage in it at the beginning were all reckless and fearless outlaws.

To complete smuggling, it was not enough to rely solely on the smugglers. There had to be someone to supply the smugglers with goods and to purchase the smuggled goods. Thus, suppliers and buyers emerged. However, these two types of merchants were concerned about being implicated in smuggling, so at the beginning, their contact with the smugglers was very secretive. Many people even deliberately concealed their true identities to avoid being implicated if the smugglers were caught.

Due to this situation, the smuggling industry gradually formed a clear division between smugglers, suppliers, and buyers. Among them, the suppliers and buyers indirectly participated in smuggling and bore the least risk, so they shared the least profit from smuggling. On the other hand, the smugglers bore most of the risks during the smuggling process, so they shared the most profit.

This situation continued for over a hundred years. However, during the reign of Emperor Xiaozong, the maritime ban had completely relaxed. Smugglers used money to bribe officials in coastal regions, and their own power networks were deeply entrenched. This led to officials at all levels turning a blind eye to smuggling in their jurisdictions. Even the coastal garrisons colluded with smugglers, providing various conveniences for smuggling. Smuggling almost became a semi-public activity. Apart from the risks at sea, smugglers were not much different from ordinary merchants.

With the reduction in smuggling risks and the extremely high returns, more and more people wanted to participate in smuggling, especially those who were already involved as suppliers and buyers. They invested money to buy ships and hire people, personally engaging in smuggling.

However, smuggling was not something anyone could do. In particular, the old-established smugglers had long divided the traditional maritime routes. For example, the Nanyang Chamber of Commerce mainly operated on the routes to Nanyang and Ryukyu, and they were very familiar with these routes. Even some local officials in Nanyang and Ryukyu had been bribed by them, forming a fixed chain of interests. Therefore, it was almost impossible for new smugglers to compete with them.

For example, Li Mo, who was now in front of Zhou Chong, had invested a large sum of money years ago to establish a smuggling fleet, planning to operate on the route to Japan. However, the route to Japan had already been divided between Chinese and Japanese smugglers. His chosen route conflicted with the interests of a group of Japanese smugglers. As a result, he not only failed to compete with them but was also robbed several times by this group of Japanese smugglers. In the end, he could not sustain the operation and had to return to being a supplier.

Since the reign of Emperor Xiaozong, situations like Li Mo's were very common. Many people were tempted by the high profits of smuggling and rashly built ships to go to sea. Due to their lack of experience, most of them lost all their capital. With these people as examples, many later gave up the idea of smuggling.

After understanding these situations, Zhou Chong, considering the chamber's current lack of funds to restore its strength, decided to allow others to invest in the chamber. He was not worried that people like He Xian would refuse. After all, they had long wanted to participate in smuggling but lacked the means. Now that he was offering them such an opportunity, only fools would refuse.

"Willing! Of course, I am willing!" As expected, Hu Lei reacted first, slamming the table excitedly, "I didn't expect my nephew to be so generous, willing to let everyone invest in the chamber. I, Old Hu, have plenty of wood and money. I'll take one share of the chamber's stock, and I'll supply all the wood!"

Seeing Hu Lei speak first, Xu Qian and Chen Wufa also quickly agreed. The oldest, He Xian, and Li Mo, after some thought, finally could not resist the high profits from smuggling and slowly nodded.

Seeing the five people agree, Zhou Chong could not help but smile. However, at this moment, the usually steady Li Mo suddenly spoke, "Nephew, since you want us to invest in the chamber, we are naturally more than willing. But I have one more question: how should we invest?"

This question was also what the other four were most concerned about, so they all turned their attention to Zhou Chong. Zhou Chong, who had already planned everything, said, "Uncles, as you all know, smuggling is not something anyone can do. Our Nanyang Chamber of Commerce has operated in Nanyang for many years, familiar with the routes and having extensive connections there. These are our greatest resources."

Pausing for a moment, Zhou Chong continued, "Of course, you all know the situation of our Nanyang Chamber of Commerce. Due to the incident with my father, the chamber's fleet has been severely weakened, and we are short of funds. After careful consideration, I have decided to offer 40% of the chamber's shares. Each 10% share is priced at 20,000 taels. Shareholders can review the chamber's accounts but cannot interfere with its operations. As for how to allocate these 40% shares, it depends on how much each of you is willing to invest."

Seeing Zhou Chong finish speaking with a smile, Li Mo and He Xian were all surprised. One share of stock required 20,000 taels, and they could only share profits without interfering in the management. This was indeed a high price, but considering the huge profits from smuggling and the scale of the Nanyang Chamber of Commerce, this price was barely acceptable.

"Nothing to say, I, Old Hu, will invest 20,000 taels for one share of the chamber's stock!" Hu Lei was the first to speak. Despite his rough appearance, he was actually a shrewd and decisive person, which is why he had built such a large timber business.

"Hehe, since Brother Hu has invested 20,000 taels, I, the younger brother, cannot fall behind. I am also willing to invest 20,000 taels for one share," the youngest and most resourceful of the five, Xu Qian, said.

"Tsk tsk! Brothers, you are truly generous. In the blink of an eye, two shares of the stock have been taken. Although I want more shares, I have to consider Brothers Li and He. I wonder how much stock they are willing to buy?" Chen Wufa, the wealthiest of the four, said. Now, only two shares were left, but there were still three of them, so he wanted to consult Li Mo and He Xian first.

Li Mo and He Xian exchanged glances and had a brief discussion before finally speaking, "In terms of wealth, we cannot compare with Brother Chen. Moreover, we are older and lack the drive of younger people. So, we will each invest 10,000 taels for half a share of the stock."

Chen Wufa knew that Li Mo and He Xian were letting him have the last share, so he immediately bowed to them, "Thank you, Brothers, for your generosity. I will not be polite. I will take the last share of the stock!"

In a short moment, the 40% of the Nanyang Chamber of Commerce's shares that Zhou Chong offered were divided, and 80,000 taels of silver were about to be in hand. With this money, the Nanyang Chamber of Commerce would surely recover quickly. Combined with the major reforms he planned for smuggling, the Nanyang Chamber of Commerce would surely soar, and the small port of Shuangyu would not be able to contain its development. There would definitely be a much broader stage in the future.

Next, Zhou Chong discussed the specific details of the investment with Chen Wufa and the others, such as the payment method and how to review the accounts. Notably, among the five, only Hu Lei did not need to pay in silver. Since the Nanyang Chamber of Commerce needed to build many ships, he would convert his investment into an equivalent amount of timber.

However, at the end, the shrewd Xu Qian raised a very sensitive issue, "Brother Zhou, we will sign the documents and pay the stock money soon, officially becoming shareholders of the chamber. But I have one more question: as shareholders of the chamber, will we receive any discounts when the chamber buys our goods or sells goods to us?"

This question immediately caught the attention of Chen Wufa and the others. They were either suppliers or buyers for the Nanyang Chamber of Commerce, and their transactions with the chamber were always substantial. If they could use their status as shareholders to get some price discounts, the accumulated savings over a year would not be insignificant.

"Brother Xu, you ask a good question. Even if you didn't ask, I had something to discuss with everyone. This matter is related to the chamber's future operating model, and the discounts you want are also related to this!" Zhou Chong smiled. He had always placed himself in a junior position, but Xu Qian had addressed him as a peer several times, and since Xu Qian was indeed not much older, Zhou Chong decided to call him "Brother."

Additionally, Zhou Chong was considering how to introduce the most critical issue next. He did not expect Xu Qian to bring it up, giving him a perfect opportunity to discuss the reform of the chamber's smuggling model.