Chapter 55

On the 10th day of Yang Yuanzhao's arrival in Shanghai, which was also the 7th day since he recruited Habib, the German-American Trading Company was established. In just seven days, from recruiting staff to setting up everything, Habib demonstrated his capabilities.

It was still the same garden house that had been purchased for 1200 pounds. In this era, there was no major renovation; at most, it was slightly decorated. In Shanghai, everything needed to set up a shop was readily available. Habib formulated the basic strategy, and there were people to purchase the necessary items. Even during the initial phase when there were not enough staff, people were dispatched from the Yang family.

The garden was moved to the back and replaced with a lawn, which had not yet fully grown. In this era, there were no specialized turf sellers. The lawn was slightly decorated to appear flat and tidy. The hall was transformed by connecting and renovating three rooms, making the space more spacious and grand. It was divided into 27 display counters, almost displaying all the goods of the trading company. Of course, the guns were unloaded, and there were no bullets, for safety reasons. To make a grand start, a French 75mm quick-firing gun was also prominently placed in the center of the hall, though its breechblock was removed to prevent any unnecessary danger.

Additionally, only a few dozen guns were displayed in the center of the hall, while the majority of the guns were stored in the basement of this room.

This was another benefit of buying the house. Whether to avoid danger or for defense, the owner had specifically set up a sturdy basement, entirely constructed with bluestone slabs, at least one meter deep. The door was specially made, very thick. With a slight renovation, it became an arsenal, even more solid than the one at the Lihe Trading Company.

Habib spread the news that the newly established German-American Trading Company had a large stock of arms. He certainly would not reveal that they had 120,000 rifles. After all, the strongest army in China at the time, the Beiyang Army, had only about 70,000 soldiers and 70,000 rifles. 120,000 military-standard rifles would not only drive the Qing government mad but also make the concession authorities feel uneasy.

Habib, skilled in business, knew that some news, true or false, could cover up the truth and spread the name of the German-American Trading Company in a limited circle. In this era, the trading companies in Shanghai were in a jungle of competition. For ordinary Chinese merchants, these trading companies were unattainable, but among themselves, there was fierce competition, involving national relations, struggles, and ruthless battles.

Habib stood at the entrance, welcoming guests. In just a few days, he had established a network of relationships in Shanghai. The establishment of the German-American Trading Company brought many new and old friends to congratulate him, making the newly established trading company lively.

The hall was brightly lit, with necessary goods displayed. The rest of the space was set up as a Western-style cocktail party, and some food was also placed in the garden. The guests, after congratulating Habib, gathered in small groups, all being merchants within the circle, sharing many common topics.

"Congratulations, Habib! What will your trading company mainly deal with?" John from Swire Trading Company arrived with a flower basket. Seeing Habib, he joked familiarly, but his eyes glanced at the trading company. The German-American Trading Company had been specially renovated, and the hall adopted some modern concepts, making it spacious and clear. Merchants could see the products at a glance, which was a stark contrast to other trading companies that kept their goods hidden.

"Just a small business!" Habib replied nonchalantly.

"Is that so? All arms, and still a small business? The variety is quite complete?" John looked at Habib with a smile.

"They are from my hometown friends, and I am just a manager!" Habib said calmly. As a representative of a German-funded trading company, Swire was also in the arms business, and they had become implicit competitors. It was best to avoid unnecessary conflicts.

"This gun!" John walked into the hall and went straight to a Gewehr 1888, picking it up. It felt heavy, similar to the ones he had handled before, and the overall feel was familiar. The rifling in the barrel was beautifully done, and the entire barrel was made in one piece, definitely of German origin, not a Chinese or other country's imitation.

Habib must have contacted someone with substantial backing. John's eyes finally fell on the gun handle. He finally understood where the sense of dissonance came from. The handle was made of jujube wood, which Germany would not use because it was rare. Instead, Chinese imitations mostly used such handles. Could these guns be made in China?

Almost instantly, Yang Yuanzhao dismissed this thought. He was not Habib and knew nothing about China. After living in China for over a decade, he was well-versed in Chinese affairs. The level of Chinese industry was low; the Hanyang rifle was considered a good gun in China but would not even be used by farmers in Europe. These guns, except for the handles, met German standards. Could they have imported only the gun bodies without the handles?

Various thoughts flashed through his mind. There was something odd about this. The experienced John did not say much more. After a quick tour, he saw that the items were quite complete, almost all firearms, a dazzling array of choices.

After a moment of silence, John suddenly said, "Habib, you are completely different now. You have a good grasp of the Chinese market. I have a customer in mind. Are you interested?"

"Who is the customer?" Habib's eyes lit up, not caring about John's ulterior motives.

"A regiment of the New Army in Nanjing. As you know, we do retail, occasionally small orders. For large orders, headquarters must approve. This new army is not well-funded and can only pay half upfront, with the rest paid over two years, secured by customs duties."

Two years to pay off, Habib finally understood why the well-funded and powerful Lihe Trading Company did not take this business. The reason was the installment payment. Trading companies preferred quick transactions, paying and delivering immediately. Unless there were political motives or conditions, they would not offer long-term payment plans.

This business could be a way to open up the market. He did not ask about the source of the guns but knew their low price. Yang Yuanzhao had instructed him not to make a profit, setting the price at 35 yuan, which was at least half the price of trading companies. A German-made rifle, converted to dollars, cost about 11-12 dollars. With bulk discounts, shipping costs, and other expenses, 35 yuan was the cost price. Paying half upfront and clearing the balance over two years seemed acceptable.

Habib knew that Yang Yuanzhao urgently needed this money. The initial 5000 pounds had been largely spent. Yang Yuanzhao had bought many things recently, clearly needing funds. Receiving half the payment upfront was reasonable, and the remaining installments, with Nanjing's capabilities, should not be a problem.

Habib made up his mind and said, "Thank you, John. Please introduce me. As for the intermediary fee, I won't shortchange you."