Ewo and Taikoo: Two of the Legendary Free Market Hongs of British Hong Kong (The “Movers and Shakers”)

Commerce & Business, Economic history, Regional History

(Image: www.travelsfinder.com)

No organisation has left a larger footprint on Hong Kong‘s long colonial experience under the British (1841-1997) than the hongs (see Endnote). And one British hong that has been especially significant in shaping the course of British (and beyond) Hong Kong has been Jardine, Matheson. The company under the direction of Scots William Jardine and James Matheson arrived in Hong Kong on the ground floor, securing lot No. 1 on Hong Kong Island in the initial land sale by the British colonial administrators in 1841 [‘Jardine, Matheson – company history’, www.jardines.com].

Jardine’s original business premises on Causeway Bay

Jardine, Matheson Co Hong Kong replaced the firm’s previous base in Canton (Guangzhou). From Hong Kong (which soon become Jardine, Matheson’s headquarters) and from the startup of it’s Shànghâi operation a couple of years later, the company laid the foundations of it’s fortune initially from a highly profitable trade of smuggling opium (as well as tea, silk and cotton) into mainland China from South Asia. Jardine, Matheson quickly diversified into more ethical and legal enterprises, adding steamships to their portfolio from the 1850s (China Coast Steam Navigation Co, Indo-China Steam Navigation Co, Yangtśe Steam Navigation Co) which serviced the trade routes to Japan, Singapore, Calcutta, Manila and Vladivostok [‘Jardine, Matheson & Co. Steam Nav. Co / Indo-China Steam Nav. Co / Yangtse S.N. Co.’, www.theshipslist.com].

Taipan Wm Jardine

Jardine Matheson, a ubiquitous hong
Over the years Jardine, Matheson (JM Co) continued to diversify—cotton mills, property, breweries, insurance, financiers (of the first railway in China), sugar plantations, etc. All the while extending it’s trade links – Europe, Africa, Australia, America. Later JM Co got into hotels, motor vehicles, food and hygiene product wholesaling and so on. They functioned as Far East agents – for gunmakers amongst other manufacturers. JM Co even acted in a para-government capacity for consuls for foreign powers doing business in the region, as did other hongs [Jan Morris, Hong Kong: Epilogue to an Empire, (2000)].

Hong Kong Island

Butterfield and Swire
This particular British hong was something of a latecomer to Hong Kong compared to the pioneering Jardine, Matheson Co. The B&S trading house arrived on the Island in 1869. But Butterfield and Swire did not waste any time in developing into one of the most powerful players in the territory. The driving force behind the company was John Samuel Swire. Previously, Butterfield, Swire and his brother William, had started a shipping and trading business in Shanghai. The Swire hong’s road to riches was predicated, not on the illicit drug trade like JM Co, but on a combination of shipbuilding, sugar-refining, banking, insurance, mining, railroad building and other later entrepreneurial pursuits in the Far East, such as bottling Coca-Cola for Asia’s markets. Swire’s diverse subsidiaries have included the Taikoo Sugar Refinery, Taikoo Dockyard – which built mainly steamboats for the China Navigation Co, another Swire subsidiary. Since the 20th century another star in the business stable of the Swire Group is the leading Asian airline Cathay Pacific. Early on Swire’s was also an agent for the Blue Funnel cruise ship line [Morris; ‘Butterfield and Swire’, (School of Oriental and African Studies, London University), The National Archives, http://discovery.nationalarchives.gov.uk].

Taipan JS Swire, “the Senior”
(Photo: www.industrialhistoryhk.org)

JS Swire’s leadership and business style was unequivocally ruthless and uncompromising, he was very much of the “take-no-prisoners”, old school of business. Under “The Senior” Swire, the company played a telling part in driving some of the other Hong Kong frontier merchants into eventual business oblivion – as happened with two pioneering hongs, Dent and Co and Russell and Co (Morris).

Jardine, Matheson v Swire/Ewo v Taikoo
Swire‘s great and enduring rival in Hong Kong (and in the East) has been JM Co. For both hongs in the formative years the main game was about buying and selling in China for the European market. As both firms added more business pursuits to their respective China Sea empires, they came more into competition with each other. Swire’s Quarry Bay Taikoo Dockyard and sugar refinery for instance was in stiff competition with Jardine’s Kowloon Whampoa dockyard and refinery [‘Taikoo Sugar Refinery’, Wikipedia, http://en.m.wikipedia.org].

SS Shuntien, built at Taikoo Docks

Dynastic hongs with staying power
The Jardine presence in Honk Kong and at the helm of the company continues to this day through the Keswick family, ancestors of founder William Jardine’s sister. In a similar vein, the Swire name retains a connection with the present Swire Group (current conglomerate chairman Barnaby Swire is a descendent of John Samuel Swire and there are other ‘Swires’ in the management hierarchy).

(Photo: www.hkland.com/)

1984 and beyond
After several years of tortuous negotiations between the UK Thatcher government and China agreement was finally reached to hand over Hong Kong to Beijing in 1997. This left Swires and Jardines, two of the British hongs with most at stake, with the thorny issue of whether to stay in the erstwhile British colony or not under the hard-to-predict communists. Swires, who had earlier pulled its businesses out of China four year after the communist takeover (to later return), chose to keep its operational base in Hong Kong. Swires sought to work with the Chinese regime, entering into airline deals to give the PRC an interest in Cathay Pacific and secure a domestic foothold for itself. The Jardines conglomerate opted for a different strategy, choosing in 1984 to cut and run, switching its legal domicile from Hong Kong to Bermuda and delisting on the HK Stock Exchange in favour of London and Singapore. This move earned Jardines the ire of Beijing. Even after the ink was dry on the hand-over decision, JM Co continue to lobby the British government hard (with Simon Keswick particularly vocal) to keep the territory out of Beijing’s clutches [Felix Patrikeeff, Mouldering Pearl: Hong Kong at the Crossroads, (1989)].

By the turn of the 21st century JM Co had regained ground from a successful drive into Southeast Asia markets and had once again firmly secured a beachhead on mainland China [‘A tale of two hongs’, The Economist, 30-Jun-2007, www.theeconomist.com ; ‘Jardine Matheson Returns to China’, The Economist, 02-Jul-2015, www.theeconomist.com].

Postscript: Tension between government and the merchant class
Officially, Hong Kong was run during the British era by a succession of governors, appointed from Whitehall. However a fundamental difference in raison d’être existed between the governors and the taipans. The governors were about the Imperial interest of Britain, in practical terms they sought to raise sufficient revenue to fund the colony’s administration. The sole concern of the plutocrats, the merchants, was self-enrichment and their natural inclination was to resist all efforts of the governor to raise taxes…this made for a generally very rocky relationship between the Crown Colony’s two power blocks with antithetical interests (Morris).

Endnote: Hongs and taipans

The term hong’ (major foreign trading houses based in Hong Kong to trade with China) derives apparently from the Chinese word cohong, used to describe the guilds of Chinese merchants operating Canton’s trade with the West prior to 1842 (the “Thirteen Factories” or Canton System). In British Hong Kong each hong was headed up by a taipan (or series of taipans) who was the top boss man in the trading company. The hongs employed native (Chinese) personnel, called compradors, who acted as local “go-betweens” to facilitate business for the firms.

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“the Butterfield” in the partnership didn’t last long in Hong Kong with the autocratic Swire edging him into retirement within a short time
both trading houses adopted Chinese business names: Ewo (JM Co) means ” State of happy harmony”; Taikoo (Swire) means “Great and ancient”
China already held a long-lingering grudge against JM Co … company principal William Jardine was one of the main advocates for Britain to take action against the Chinese Empire in retaliation for it closing down the lucrative opium trafficking trade (leading to the First Opium War)

The 1918 Spanish Flu: History’s Most Deadly Pandemic

Environmental, International Relations, Medical history, Military history, Public health,, Regional History, Science and society

The ongoing fight to contain the outbreak of COVID-19, the Coranavirus—now entering a new stage of transforming itself into a global epidemic—gives rise to recollection of another virus that swept the world just over one hundred years ago, the so-called Spanish Flu. For most of the rest of the 20th century, the Spanish Flu (sometimes known as La Grippe) was largely neglected by researchers and mainstream historians, and study confined to actuaries, specialist epidemiologists and virologists and medical historians [Laura Spinney, Pale Rider: The Spanish Flu of 1918 and How it Changed the World, (2017)].

(Credit: CNN International)

Why did such a devastating pandemic fly under the radar for so long? The timing of the outbreak goes a good way to explain this. After having suffered four long years of a unique world war, people tended to treat the Spanish Flu as a footnote to the Great War conflagration. Moreover, the war, concentrated in Europe and the Middle East, had a limited geographical focus for people, contrasting with the pneumonic influenza outbreak which was truly global [The Spanish Flu Pandemic’, (L Spinney), History Today, 67(4), April 2017]. As catastrophic events go, the two stand in stark contrast. With today’s scientific and medical advances experts estimate that the Spanish Flu killed at least 50 million people worldwide, some estimates put it as high as 100 million [NP Johnson & J Mueller 2002;76: 105-115 (‘Updating the accounts: Global mortality of the 1918-1920 “Spanish” Flu pandemic’, Bull Hist Med)]. Estimates of World War I casualties—military and civilian–—sit somewhere in the range of 20 to 22 million deaths [‘WW1 Casualties’, (WW1 Facts), http://ww1facts.net]. By the late 20th century and early 2000s outbreaks of new viruses like SARS, Asian Bird Flu, Swine Flu, etc, spurred mainstream historians to look afresh at the great global influenza of 1918-20.

An abnormal spike in morbidity and mortality
The Spanish Flu was truly global, like the Coronavirus its lethal reach touched every continent except Antartica, both are novel (new) respiratory illnesses. Similarities have been noted between the responses to the two outbreaks, eg, the issuing of instructions or recommendations by the authorities for the public to wear masks, avoid shaking hands (part of social distancing), good hygiene, quarantine, an alarmist overreaction by the media [‘Coronavirus response may draw from Spanish flu pandemic of 100 years ago’, ABC News, (Matt Bamford), 05-Mar-2020, www.amp.abc.net.au]. The great flu of 1918’s morbidity and mortality rates were frighteningly high and far-reaching…one in three people on earth were affected by it. Between 2.5 and 5% of the world’s population perished, including India a mind-boggling 17M-plus, Dutch East Indies 1.5M, US (up to) 675,000, Britain 250,000, France 400,000, Persia (Iran) (up to) 2.4M, Japan 390,000-plus, Ghana (at least) 100,000, Brazil 300,000, USSR (unknown, but conservatively, greater than 500,000).

While densely crowded communities were thought the biggest risk of mass infection, the Flu caused human devastation even in remote, isolated corners of the world, eg, in Oceania, Samoa bereft of immunity, lost 22% of its population in two months, the Fijian islands lost 14% in a 16-day period. The kill rate was something around 2.5% cf. a ‘normal’ flu outbreak a rate of no more than 0.1% would be expected [‘The Spanish Flu Pandemic’, (Spinney, History Today ; ‘The Spanish Flu’, Wikipedia, http://en.m.wikipedia.org/].(Source: National Library of Australia)

If the Spanish Flu didn’t originate in Spain, where did it originate?
No one knows for sure is the short answer…but there has been much speculation on the topic. At the time of the epidemic a popular notion was that the Flu started in China, but China experienced low rates of infection compared to other regions of the world. The explanation for this perhaps lay in that China was subjected to an initial, mild flu season which gave its citizens an acquired immunity to the disease when the more severe strain of the virus hit them.

🔺 Red Cross volunteers: caring for the sick during the Spanish Flu fell overwhelmingly on women (volunteers and professional nurses) who bore the brunt of the work at quarantine stations and camps, as well as exposing themselves to great personal risk

Influenza-ravaged Ft Riley soldiers in hospital camp 🔻

The military, mobility and zoonosis
Another theory attributes the Spanish Flu’s beginnings to the movements of the combatants in WWI. Virologist John Oxford favours the village of Étaples in France as the centre of the 1918 influenza infection. From a hospital camp here, 10,000 troops passed through every day…with their immune systems weakened by malnourishment and the stresses of battle and chemical attacks they were susceptible to the disease which was probably transmitted via a piggery and poultry on the same site. Once contracted, it’s dissemination was likely facilitated by mass transportation of troops by train.

Another view that has gained wide currency locates the Flu’s genesis in America’s Midwest. In recent times, historians led by Alfred W Crosby have supported the view that the epidemic started not in Europe but in a US Army base in Kansas in 1917 (America’s Forgotten Pandemic). According to adherents of this theory soldiers training at Fort Riley for combat in Europe contracted the H1N1 influenza virus which had mutated from pigs. The infected troops, they contend, then spread the virus via the war on the Western Front. Whether or not the virus started with WWI fighting men in France or in the US, it is undeniable that the soldiers moving around in trains and sailors in ships were agents of the Flu’s rapid dissemination [‘Spanish Flu’, History Today, (Upd. 05-Feb-2020), www.historytoday.com]. A recent, alternative origin view by molecular pathologist Jeffrey Taubenberger rejects the porcine transference explanation. Based on tests he did on exhumed victim tissue, Taubenberger contends that the epidemic was the result of bird-to-human transmission [‘Spanish flu: the killer that still stalks us, 100 years on’, (Mark Honigsbaum), The Guardian, 09-Sep-2018, www.theguardian.com].

(Image credit: Guia turístico)

Demographics: differential age groups
The pattern of Coronavirus mortality points to the disease being most virulent and most fatal to elderly people (the seventies to the nineties age group). This accords with most flu season deaths, although unlike seasonal flu outbreaks Coronavirus contagion has (thus far) had minimal impact on children, in particular the under-fives (Honigsbaum). But the pattern of Spanish Flu was markedly different, the records show a targeting of young adults, eg, in the US 99% of fatalities in 1918-19 were people under 65, with nearly 50% in the 20 to 40 age bracket (‘Spanish Flu’, Wiki). Statistics from other countries on the 1918 outbreak conform to a similar trend.

🔺 Conveying the health message to the public (Source: www.shelflife.cooklib.org)

The Flu in a series of varyingly virulent waves
The first wave of the Flu in early 1918 was relatively mild. This was followed by a second, killer wave in August. This mutated strain was especially virulent in three disparate places on the globe, Brest in France, Freetown in Sierra Leone and Boston in the US. There were myriad victims, some died (quickly) because they had not been exposed to the first, milder wave which prevented them from building up immunity to this more powerful strain [‘Four lessons the Spanish flu can teach us about coronavirus’ (Hannah Devlin), The Guardian, 04-Mar-2020, www.msn.com]. The second wave was a global pathogen sui generis. The bulk of the deaths occurred in a 13-week period (September to December). The lethality of the disease, and especially the speed with which it progressed, was the scariest part.

2nd wave curve in the US, 1918: note the different mortality peaks during Oct-Dec 1918 for St Louis (imposed a stringent lockdown) vs Philadelphia (much less restrictive approach)
(Source: Proceedings of the National Academy of Sciences, 2007)

The symptoms of this murderously effective strain were unusual and extreme, eg, haemorrhaging from mucous membranes, bleeding from the eyes, ears and orifices, etc. The extreme severity of the symptoms were thought to be caused by cytokine storms (overreaction of the body’s immune system) (‘Spanish Flu’, Wiki) [‘Spanish Flu’, History, 12-Oct-2010, www.history.com]. The third and last strain of the Flu, in 1919, was markedly milder by comparison to the second, but still more intense than the first.

Many parallels exist between the 1918 flu outbreak and the present pandemic – of a positive nature, the widespread advocacy of wearing masks to limit the spread of disease and mandatory lockdowns. Plenty of negative parallels too – the disregarding of science and medical expertise on how to tackle the outbreak; countries engaging in playing the “blame game” against each other rather then co-operating on a united approach to the pandemic. There was especially, but not only in the US, a repetition by some of the denial at the national leadership level to square up to the pandemic and give it the complete seriousness it demanded.

In 1919 in the middle of the flu crisis, Irish poet WB Yeats wrote in a poem the line for which he is perhaps best remembered: “Things fall apart; the centre cannot hold; mere anarchy is loosed upon the world…”

Footnote: The health authorities’ inability to check the juggernaut of the 1918 virus was exacerbated by misdiagnosis at it’s onset the Spanish Flu was widely believed to be a bacterium like the Black Death, not a virus. Misreading the symptoms, the influenza outbreak was variously and erroneously diagnosed as dengue, cholera or typhoid (Spinney, ‘History Today’; ‘Spanish Flu’, History).

(Photo: State Archives & Records, NSW)

PostScript: The upside of a global catastrophe
The Spanish Flu in it’s vast human decimation rammed home lessons for post-WWI governments and health practitioners in its wake. Being helpless to prevent or halt the virus once in full swing, the vital need to develop vaccines to counter pandemics was subsequently understood. Advanced countries started to restructure their public health systems to try to cope (such as the United States’ NIH – National Institutes of Health, which emerged about 10 years after the Spanish Flu) [‘The great influenza The epic story of the deadliest plague in history(JM Barry), Reviewed by Peter Palese, (JCI), www.ncbi.nim.nih.gov]. And of course the 1918 flu virus had other, indirect, outcomes…it led to universal healthcare, alternative medicine, intensive care facilities and a modern preoccupation with the benefits of healthy exercise under clean, clear skies (‘Pale Rider’).

the name is a misnomer. The Spanish association came about thus: with the Great War still raging other combatant European nations such as France and Germany had imposed censorship restrictions on the reportage of the flu outbreak, whereas Spain being neutral in the war did not. When the Spanish press freely reported a serious eruption of the Flu, people outside the country unquestioningly assumed that the influenza came from Spain
to further break that down, more American troops died from the Spanish Flu than in combat during WWI (‘Pale Rider‘)
the numbers cited tend to be approximations given the paucity of adequate record-keeping at the time
part of a new multidisciplinary approach to the subject including economists, sociologists and psychologists
consequently life expectancy for Americans dropped by 12 years in 1918, and for the first time since Britain commenced recording data, the death-rate in 1919 exceeded the birth-rate (Honigsbaum)
Pandemic: pan all demos the people (not literally but fairly close)
although isolation did prove beneficial in some instances, such as in Australia where the virus didn’t arrive until 1919 and entry was closely monitored with a maritime quarantine program. As a result Australia’s death-rate of 2.7 per 1000 of population was one of the lowest recorded [‘Influenza pandemic’, National Museum of Australia, www.nma.gov.au]
Philadelphia alone experienced 4,597 influenza deaths in a single week

Green Gang: Boatmen, Salt Smugglers, Secret Society, Triad and Social Organisation

Regional History, Social History

The Green Gang (Qing Bang) was a Chinese form of mafia organisation based in Shànghâi, best known for their activities in the 1920s and 1930s as a web of street gangs. The career of their paramount leader, Du Yuesheng, has been well documented in a previous blog, The Emperors of Vice and Crime of Shànghâi‘s Yesteryear (February 2020). But the origins of the gang (which might be more usefully thought of as a clique) were rooted in a specific type of brotherhood associated with boatmen in the early Qing Dynasty (17th-18th centuries).

The story starts with “three sworn brothers”, Weng Yan, Qian Jian and Pan Qing, who won a contract from Emperor Yongzheng (Yinzhen) to manage the transport of grain materials on the Yellow River (Grand Canal) route in Old China. The trio went on to form an association of boatmen which utilised Luojiao principles (Buddhist sect) to attract workers. The organisation that evolved on the Canal was a kind of professional trade federation dedicated to serving the interests of it’s waterborne employees (including the use of strong-arm tactics to protect them from corrupt officials and local thugs) [Brian G Martin, The Shànghâi Green Gang: Politics and Organized Crime, 1919-1937, (1996)].

🔺 The Grand Canal

Over time, the structure took on a quasi-government character with specific departments formed to handle different functions. It also evolved into a secret society with very strict membership criteria involving a seven-year process before members would be fully admitted. The society’s activities earned the ire of the authorities and was driven underground. After experiencing disruptions in the Grand Canal trade the business eventually dissolved [‘Shanghai’s Shadowy Green Gang’, (Sun Jiahui), (The World of Chinese), 28-Aug-2015, www.theworldofchinese.com].

But the society and the boatmen adapted to the changes, segueing into the salt smuggling business in northern Jiangsu Province – in the process forming a new organisation, Anqing Daoyou (literally “Friends of the Way of Tranquility and Purity”), which was a direct forerunner to the modern Green Gang organisation (‘Shanghai’s Shadowy Green Gang’).

Green versus Red
For a brief period in the early 20th century the Green Gang shared the underworld spotlight in Shànghâi  with a rival body, the Red Gang (Hong Gang)❇. In the years of the early republic the ‘Reds’ managed to establish “a complete monopoly over the illicit trade of (Shànghâi) opium” in cooperation with the Green Gang and the Big Eight Mob (the ubiquitous Green Gang boss Huang Jirong had links to the Red Gang)[‘Shanghai’s Gangs in the Early 20th Century’, (Clay Capra), 10-Dec-2018, www.umdjanus.com]. By the 1920s the ‘Greens’ by themselves were a formidable mob organisation in Shànghâi, trafficking in opium, using stand-over tactics to intimidate workers and business owners [‘The Green Gang of Shanghai’, (Pat Welsh), (China Insight), 01-Nov-2013, www.chinainsight.info].

Du and the KMT 
Huang (and his wife Lin Guisheng) elevated Du Yuesheng to a leadership position in Green Gang based in the French Concession area, from which he never looked back. The Green Gang formed an interesting two-way relationship with the KMT (Kuomintang), it received protection from the KMT and was given a free hand to carry on it’s various illegal business activities in Shànghâi. In return the Green Gang smuggled weapons and money (eg, opium profits) to the KMT and Chiang Kai-shek✡ co-opted Du’s Green Gang in the suppression of the communist element in Shànghâi in 1927 (up to 5,000 communist opponents of Chiang liquidated). Chiang and the Nationalist government—with only a nominal hold over the country—needed the support of local warlords and drug lords like Du as much as they needed the KMT’s imprimatur [Derks, Hans. History of the Opium Problem: The Assault on the East, Ca. 1600-1950. Vol. 105, Brill, 2012. JSTOR, www.jstor.org/stable/10.1163/j.ctv4cbhdf. Accessed 21 Feb. 2020].

🔺 Chiang Kai-shek

A secret society of gangsters and a …
The Green Gang was a criminal confederation of leviathan proportions, a Chinese Triad coordinating a wide network of individual gangs with connections to powerful and influential figures in Shànghâi. But another arm of the organisation had a social welfare role through membership of the secret societies. Peasants for example who were driven off their land and into the city could find aid in the banghui – a “mutual help group” [‘Green Gang’,  www.streetsofshanghai.pbworks.com; ’History of the Opium Problem’].

Footnote: Drawing the curtain on the Green Gang
With the defeat and flight of Chiang’s KMT in 1949, the Green Gang also fled Shànghâi for Hong Kong where it opened up heroin refineries, but couldn’t establish itself in the market against the stiff competition of the local drug syndicates in HK. By 1955 Qing Bang had disappeared from the scene [‘Green Gang’, Wikipedia, http://en.m.wikipedia.org/].

 

 

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❇ at one point the two gangs were allied
✡ Chiang himself may have been a member of the Green Gang during the years he lived in Shànghâi, however the evidence is hazy on this (‘Shanghai’s Shadowy Green Gang’)

The Emperors of Vice and Crime of Shànghâi‘s Yesteryear

Popular Culture, Regional History, Social History

This piece in the China Daily Show caught my eye recently…”the first season of CSI’s much-anticipated ‘Shanghai’ spin-off has been cancelled, after scriptwriters failed to take into account the East Coast city’s complete absence of crime”. It goes on to say, “plotlines involving corruption, sexual harassment and high-end ergotou[𝕒] were shelved after quality-control cadres for the State Administration of Radio Film and Television (SARFT) cited an ’insufficient suspension of disbelief’ for viewers”[𝕓].

🔺 The formula: the standard Shànghâi period crime series

This amused me, less for the satirical tone inherent in the piece (CSI detectives investigating “high level wok theft”), but because every time I switch on the television in China and flick through the drama offerings on China’s subscription network,  a more than healthy proportion of the fare seems to be fixated on 1930s Shànghâi noir and underground crime gangs.

Chinese television entertainment csars of course trade on the viewing public’s nostalgia for a past time where Shànghâi pulsated to a rhythm of decadence, glamorous nightspots and ostentatious ritzy opulence, counterposed against an underbelly of sin, gangland warfare and corrupt police. While these television series, such as the popular Meng’s Palace and New Bund, are pure and typically exaggerated fictions, the sources of their invention were very real.

If the Shànghâi of the 1920s and ‘30s that we visited in the preceding blog deserves it’s glowing epithet, “the Paris of the South”, then it’s other sobriquet, “the whore of Asia”, to describe the seedy and violent underbelly of the same city, is every bit as applicable. The “freebooting capitalism” of Shànghâi in the interwar years[𝕔and it’s rewards, spawned a wave of criminal activity with underworld bosses vying for a bigger piece of the city’s stupendous economic pie. Like the legitimate commercial powerhouses on the Bund, the gangland “Mr Big’s” were very much part of Shànghâi’s “movers and shakers”.

The Big Three?
The conventional view of Shànghâi‘s criminal underworld in the Twenties and Thirties is that there were three main gang chiefs who ran most of the show. This triumvirate of crime was made up of Du Yuesheng, Huang Jinrong and Zhang Xiaolin, …of the three gang bosses (san daheng), Zhang was of lesser significance, confined to playing a secondary role to Du. The older Huang was first to attain prominence, entering the French Concession police force and rising through the ranks to become police chief. From this advantageous post the corrupt Huang could play both sides and garner a cut of the criminal profits [𝕕].

Huang—Lin—Du
Huang was eventually dismissed from the FP constabulary which led to him going full-time as a criminal overlord. The sacked cop made his fortune with a scheme involving the stealing of incoming opium from the docks, which his gang then transported into Huang’s residence by a back entrance. Huang had the opium—which cost him zilch!—distributed throughout China through his Sanxin Company [‘Murder, Mayhem and Money’, (Ni Dandan), Global Times, 12-Mar-2013, www.globaltimes.cn]. It was the pockmarked Huang’s first wife (Lin Guisheng), an influential behind-the-scene figure in Shànghâi power circles, who provided the boost to the career of the third of the crime triumvirate. Madame Huang took on the young Du Yuesheng as a partner in a French Concession operation, the start of a business empire for Du which ultimately eclipsed that of her husband’s. Du’s power base and muscle was the much feared Green Gang, which numbered as many as 20,000 members at it’s zenith [‘Shanghai in the 1930s’, World History, http://world history.us].

Du and the Green Gang
“Big-eared” Du was a complex and fascinating figure in the Shànghâi underworld scene. As zongshi (grandmaster) of the local crime operation, he was ruthless in business and intimidating in method (he would despatch coffins to the houses of gangland rivals who had earned its displeasure as a grim warning). Yet he forbid members of his Qing Bang gang to violate women, the wealthy Du was generous and wrote off many debts owed him by friends. Du’s business scope was panoramic … opium dens, gambling shacks, prostitution rings strung out across the city, kidnapping, protection rackets, labour contracting, heroin and morphine labs, as well as more ‘legit’ activities. He also founded a boys’ school in the French Connection and was president of the Chinese Red Cross during the Sino-Japanese War. And, in a perverse twist, Du, having made a ‘motza’ from his cur of the proceeds of the opium monopoly, was ultimately made president of the “National Board of Opium Suppression Bureau”! [Derks, Hans. History of the Opium Problem: The Assault on the East, Ca. 1600-1950. Vol. 105, Brill, 2012. JSTOR, www.jstor.org/stable/10.1163/j.ctv4cbhdf. Accessed 21 Feb. 2020].

Du’s political ties to the Chinese republic’s political elite
Du sided with Chiang Kai-shek and the Nationalists in the conflict against Mao’s communists, playing a role in the 1927 Shànghâi purge. After the Japanese invasion in 1937 Du fled to Hong Kong, a move which lost him goodwill in Shànghâi. After the war Du wanted to return to the city but was not welcomed back and died in Hong Kong exile [‘The three tycoons of gangsters’ Shanghai’, Timeout, 22-Mar-2016, www.timeoutshanghai.com].

It didn’t end in a happy story for the other two ‘tycoons’ either. When the Japanese army invaded, Xiaolin switched sides and aided the Japanese efforts to root out subversive (ie, anti-Japanese) elements in Shànghâi, making him a wanted man by the Nationalists. In 1940 he was executed by one of his own bodyguards. As for Huang, his ultimate downfall was the communists’ takeover in 1949. Stripped of his great wealth, Huang was forced to submit to “self-criticism” and take up lowly work as a street sweeper (‘The three tycoons’).

1932 Hochi map of Shànghâi🔺

A Mexican ‘godfather’ of Shanghai crime?
Another name—juxtaposed against that of Du—occupied a similar senior role in the gangland power structure in Shànghâi. Carlos Garcia, a Mexican who migrated to the fabled city of the east, carved out a lucrative (illicit) business shipping Mexican tequila via Shànghâi back to prohibition-hit California. He has been depicted as the closest thing the Shànghâi underworld of the day had to a “capo di tutti capi”[𝕖]…gang boss Garcia proved indispensable in his ability to adjudicate disputes and ensure that they didn’t develop into internecine gang warfare [‘The Canidrone Tower Gang’, Paul French, (‘That’s Shanghai’), 23-Sep-2019, www.thats,mag.com].

During the 1920s and 1930s it is estimated that there was some 100,000 gangsters in Shànghâi (around three percent of the city’s population at the time) [Brian G Martin, The Shanghai Green Gang: Politics and Organized Crime, 1919-1937, (1996)]. The vice empires of Du and his ilk were built on control over the city’s prostitution, gambling and drug trade, especially opium.

The law-enforcers’ role
The city’s police, tempted by tangible graft and corruption all around, were inherently weak, explaining why Shànghâi fell prone to unchecked lawlessness and gangsterhood. Irredeemable “bad apples” like the discredited Huang thrived in the tainted civil police agencies of 1920s and ’30s Shànghâi. The individual carve-up of the city constabulary into three distinct and unrelated entities, added to the police’s overall inefficiency. Law enforcement suffered hugely as a result of the absence of a single, paramount city police force, making it very difficult for the police to operate strategically and cohesively to rein in the city’s countless ’villains’ [‘The Shanghai Settlements’, Wikipedia, http://en.m.wikipedia.org].

Endnote: Gangs of old Shànghâi
Carlos Garcia’s key role in the city’s crime business is a reminder of the importance of the non-Chinese element in the Shànghâi underworld.  As well as Garcia, there were other “blow-ins”, characters like ’Lucky’ Jack Riley. Riley, an escaped convict from the US, “lucked-in” in a big way on settling in the inter-war East Asian crime capital. Riley succeeded in cornering the Shànghâi slot machine market (patronised heavily by the foreign military personnel in residence), and with a Jewish criminal associate, he ran from a business from Shànghâi servicing prohibition-era America’s habit for heroin. Roaming the mean streets of 1930s Shànghâi were a host of multicultural gangs—Portuguese gangs, Spanish gangs, Mexican gangs, Jewish gangs, etc—giving the cosmopolitan edge of Shànghâi another dimension [‘Those Rogue Foreigners Ruled the Streets of 1930s Shanghai’, (Seth Ferrenti), Vice Media, 22-Jun-2018, www.vice.com].

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[𝕒] a white-coloured liquor (a type of baijiu) popular in China; literally ”second pot head”
[𝕓] “’CSI: Shanghai’ cancelled due to lack of crime”, (Ping’an Jiedao), China Daily Show, 20-Feb-2020, www.chinadailyshow.com
[𝕔] Ferranti: 2018
[𝕕]  of the several territorial police forces in Shànghâi, the French was the most corrupt – according to Bernard Wassermann, Secret War in Shanghai: Treachery, Subversion and Collaboration in the Second World War (2017, 2nd Ed.)
[𝕖] ”boss of bosses”