The Struggle for California’s “White Gold”: The Making of LA’s Modern Metropolis

Posted on by funambulator@live.com
Environmental, Natural Environment, Popular Culture, Regional History


In 1900 the population of Los Angeles was 102,479, the 36th largest city in the USAⓐ. A couple of years into the new century the name Hollywood resonated only as a hotel, Hollywood’s legendary preeminence as the epicentre of the world’s film industry was still over a decade away. Nonetheless the city’s growing numbers were already putting pressure on the water supplies. LA’s location on a water-poor, semi-arid plane magnified those pressures. A lack of rainfall and groundwater and droughts was making the situation worse (‘The Los Angeles Aqueduct and the Owens and Mono Lakes’ (MONO Case), Case No 379, (TED Case Studies), www.web.archive.org).

Mulholland in the valley (Photo: LA Times)

A couple of ambitious engineers in the city’s water company (later the LA Board of Water and Power)—Fred Eaton (also the LA mayor) and William Mulholland—cast their eyes round for a more reliable source of water to accommodate Los Angeles’ continued growth and development. The solution lay to the northeast, in the Owens River Valley which backs on to the Sierra Nevada mountain ranges. If Los Angeles owned the land here the water could be diverted to the city. The obstacle was that this was farming land with hundreds and hundreds of farmers legally ensconced on small plot-holders. The farmers’ land-holdings also gave them water rights and they had their own agenda regarding the Owens valley, they were backing a national valley reclamation project to irrigate the valley farmlands.

Mulholland (pointing), with members of his syndicate (Photo credit: www.latimes.com)

It was former mayor Eaton who started the ball rolling, at the same time setting the ethical standard for Mulholland, by securing options on riparian lands under the pretense of establishing cattle ranches (Marian L Ryan, ‘Los Angeles Newspapers Fight the Water War, 1924-1927’, Southern California Quarterly, 50(2) (June 1968)). Soon Mulholland was driving the scheme and the Los Angeles water authority set about buying up as much of the land around the Owens River as they could. Mulholland, Eaton and other local business notables including Harrison Gray Otis and Henry Huntingdon formed a business cabal which became known as the San Fernando Syndicate. The syndicate allegedly used inside knowledge (the plan to build a aqueduct connecting the valley to the city) to buy up land that would become highly profitable (‘William Mulholland’, Wikipedia, http://en.m.wikipedia.org).

Cottonwood Creek diversion conduct and Owens Lake in background (wwww.owensvalleyhistory.com)

Mulholland’s vision for LA’s prosperity was dependent on the monopolisation of the valley’s water, but he was completely unscrupulous in the way he went about it, “employ(ing) chicanery, subterfuge, spies, bribery, a campaign of divide-and-conquer, and a strategy of lies” to secure the water LA needed (‘Reading Los Angeles.: Marc Reisner’s Cadillac Desert’, (Christopher Hawthorne), LA Times, 29-Jun-2011,  www.latimesblogs.latimes.com). The cagey, Belfast-born Mulholland deceived Owens Valley farmers and also misled the Angelenos as well by grossly understating the quantity of water that would be taken for LA.

Route of the LA aqueduct (Image: www.owensvalleyhistory.com)

The syndicate, from 1905 on, bought up strategic parcels of land piecemeal in the valley (by 1928 90% of the water rights were in Mulholland’s hands). The City of Los Angeles meanwhile built a 375km-long aqueduct (completed in 1913) to siphon off the water from the Owens River. Some of the water was diverted to irrigate the San Fernando Valley but most went via the aquifer to service the needs of the LA metropolis. (‘The Water Fight That Inspired “Chinatown”’, Felicity Barringer, 25-Apr-2012, (Green),  www.green.blogs.nytimes.com).

The problem with the proposed Owens Valley Reclamation Project, which had it gone ahead would have stymied Mulholland’s plans, was already taken care of. Mulholland through his political connexions in Washington lobbied the US president, Theodore Roosevelt, who squashed the project (‘The Los Angeles Aqueduct’). This was viewed by the farm settlers as a public act of betrayal (‘The Valley of Broken Hearts’, C.E. Kunze, The San Francisco Call (1924), in ‘Owens Valley’s – Los Angeles Aqueduct’, (Owens Valley), www.owensvalleyhistory.com). In time the Owens Valley farmers amd ranchers realised the enormity of the threat to them…by 1926 Owens Lake was completely dry. Frustrated, angered and rebellious, they attempted to retaliate through acts of sabotage, in 1924 blowing up the aqueduct. Mulholland responded by calling in armed guards, conflicts occurred and tensions ran high over water access. A second flashpoint occurred when Owens Valley activists aided by a local scofflaw element commandeered the Alabama Gates section of the aqueduct resulting in a four-day standoff. Afterwards Mulholland hired Pinkerton private detectives to track the ‘culprits’ and ‘ringleaders’. Other incidents escalated the conflict including more dynamiting of the infrastructure in 1927ⓑ (‘The Water War that Polarized 1920s California’, (Gary Krist), Literary Hub, 17-May-2018,  www.lithub.com ; ‘New Perspectives on the West’, ‘William Mulholland (1855-1935)’, www.pbs.org).

Detectives investigating the scene (Photo: LA Times)

Mulholland eventually came out on top in the ‘war’ due to a combination of factors, “determination and deceit” on his part, but also because the Inyo County Bank folded , taking with it most of the ranchers and farmers’ savings. Personally for Mulholland though, he had just a modicum of time to savour his victory. In 1928 the collapse of St Francis Dam cost nearly 500 lives and caused widespread devastation of property and crops. As he had been project engineer, Mulholland was blamed for the disaster and forced to resign in disgrace (‘New Perspectives’, PBS). By 1930 the handful of remaining farm-owners, with unviable land having lost their irrigating water—the “white gold” as they called it—and confronted with droughts, their only one recourse was ultimately enforced migration (Kunze, ‘Owens Valley’).

Mono Basin, Cal.

The Los Angeles Water Department (even after Mulholland’s esclipse) continued the search for new sources of water, one scheme sought to extend the LA aqueduct to the Mono Basin. Local farmers after eventually realising that Mono Lake was staring down the same fate as Owens Lake, took action to save it from destruction (‘Mono Lake’)ⓒ.

The Los Angeles water authority’s and Mulholland’s diverting of the Owens River and the incorporation of the San Fernando Valley into LA’s municipal boundaries, paved the way for LA’s eventual growth into a mega-sized city by any standardsⓓ (Hawthorne). But this achievement was at devastating and irreparable cost to the Owens Valley environment which became no longer viable as a farming community… the Owens River was reduced to a trickle and the Owens Lake ecosystem destroyed (Barringer).

Endnote: Chinatown backdrop

The story of the LA water wars and the Californian “water czar” William Mulholland’s machinations inspired the 1974 cult neo-noir mystery film Chinatown. Polanski’s film uses the historic 1920s conflicts as backdrop for a fictional detective story in which the persona of the larger-than-life Mulholland is represented by two characters: the visionary and straight dealing Hollis Mulwray, and the Machiavellian über-schemer Noah Cross (Barringer).

ᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽᴽ

ⓐ ‘Population of the 100 Largest Urban Places: 1900’. United States Census Bureau, June 15, 1998
ⓑ prompting LA newspaper of the day The Gridiron to report that “Civil War Threatened” as “L.A. Faces Water Famine”, (11-Jun-1927)
ⓒ Mulholland and Los Angeles also looked at tapping into the Colorado River to replenish the city’s water supplies but this proved logistically too difficult even for Mulholland
ⓓ 9,000,000 people by 1994

The Government’s War on Coronavirus: The Great COVID-19 War from Ground Level

Posted on by Bonza Rottwheeler
Economics and society,, Environmental, Futurism, Media & Communications, Medical history, Science and society

(Source: www.thesummitexpress.com)

A few years ago one of the incumbents of the revolving door that is the Australian prime ministership intoned: “these are the most exciting times to be alive”… well, for “exciting” substitute “worrying and challenging” and you have the status quo, 2020. We are getting bombarded daily, even hourly it seems, with mixed messages from news sources – it was okay to go to the football last Sunday and mingle with crowds of much more than the 500 limit but somehow it’s not okay to do this on Monday, the day after (what changed?!?); the medical experts warn us to keep a distance of one-and-a-half metres from anyone else, yet it’s fully expected that people will still travel on trains and buses which will generally make that an impossibility; the government tells us not to fly overseas but it’s still okay to fly within Australia (a lifeline to the national carrier?). 

(Image: www.nature.com)

Every day media outlets offer up a doomsday book of horror stories…”London faces stricter lockdown after coronavirus advice ‘ignored’” |”Italy coronavirus deaths rise by record 475 in a day” |”All of us have to assume we have the virus’: COVID-19 infections rise past 300 in NSW” |”Yes, young people are falling seriously ill from Covid-19” |”Trump spent weeks downplaying the coronavirus. He’s now pretending that never happened” | “Stay home’. Grey nomads unwelcome as Top End coronavirus tensions grows’ | “Coronavirus UK: Boris to impose FOUR-MONTH quarantine for elderly under ‘wartime’ measures” | “China blaming US for coronavirus? It refuses to come clean about origin” | “Privacy fears as India hand stamps suspected coronavirus cases” | “Coronavirus: One dead every 10 minutes in Iran as government faces backlash over late response” | “Spring Breakers Pack Some Florida Beaches, Ignoring Social Distancing Warning Amid Coronavirus“ | “Italy overtakes China in coronavirus toll”. Panicked consumerism born of exaggerated fears of limited resources➀, foolhardy apathy as the young party on regardless in fatalistic Titanic style (‘Millennialmania’), doom and gloom, finger-pointing recriminations, the media has been full of it for two months…sorry, we don’t do calm, rational, measured responses here. 

A corona red world, March 2020 (Credit: www.abcnews.go.com)

It’s a climate ready-made for rumour-mongering and this is not confined to the West…China is rife with rumours ‘explaining’ the epidemic’s origin starting with the fiction of it’s supposed transmission from bats in January. The rumours soon became more fanciful and more conspiratorial, ranging from coronavirus being deliberately released to cull excess numbers of pensioners in society to it being a bio-weapon brought to Wuhan by the US Army to it being the consequence of the zodiac signs being out of harmony in the Year of the Rat!

The pandemic has caused divisiveness. Not just between rival countries trying to shift the blame and score political points, but at a grass roots level. We’ve seen the spectacle of shoppers in supermarkets fighting over the providence of a single pack of toilet roll➁.We’ve got incorrigible prepper-minded hoarders boasting online of their Fort Knox-sized storage bunkers of stockpiled household essentials, counter-balanced by the shopper-shaming of overzealous buyers queueing up with 150 rolls of toilet paper in their trolly (human behaviouralists tell us that buying ridiculous quantities of toilet rolls gives us reassurance, a warm and fuzzy feeling in a time of fear). The supermarkets, one of the very few sectors doing spectacularly well out of the crisis, have responded (too late) with partial war rationing to head off the panic buyers. War rationing seems apt as democratic governments across the world channel their inner Churchill and rush to set up “war cabinets” to deal with the extraordinary and unprecedented situation.

Deserted departure lounges 🔺

Whole industries grind to a halt, workers laid off with mortgages and bills that won’t disappear, while those of us investing in the stock market have taken an instant massive hit and the Aussie dollar plunges ever lower. Border closures, tourism industry bottoming out, small businesses going to the wall, nightlife, restaurants, bars, cafes, shows, movies, public events, etc…all nix! The hackneyed T-shirt slogan “Keep calm and carry on” is now “Keep calm, stay home and don’t go anywhere”. Lockdowns, compulsory home quarantine for targetted groups of the population, Pacific cruising virus-traps, a safe and effective vaccine for the virus still up to 18 months away. Talk in the UK of prioritising “herd immunity” uncomfortably evokes the spectre of eugenics. Some have called for the euthanasia of family pets, which is drawing a long bow even if you accept the possibility (far from definitively proven at this stage) that the virus was transmitted to humans by pangolins (scaly ant-eaters) in a Wuhan wet market. What next, euthanasia vans going round the suburbs to collect the weak and elderly? Reality at the moment looks increasingly like an unbelievable dystopian novel or movie! Welcome to the scary new world of indefinite uncertainty. 

Thanks to COVID-19 we’re learning a slew of new buzzwords, for a start social distancing and elbow bump (sounds and looks dorky but it’ll catch on, trust me), and us non-statisticians in the community are already tired of hearing TV expert commentators rabbiting on about the merits of “flattening the curve”. I am waiting to hear (and am surprised not to have heard it yet) the adjective “Orwellian” uttered in the current crisis. 

Bay County beach, Fla. (Ya Photo: WJHG/WECP)

I don’t know anyone who envies the governments or the frontline health care sector at the moment, but the government responses do have their critics? To take the scenario I am most familiar with, Australia…on the credit side the mortality rate is low (so far) though the morbidity rate is climbing fast and winter and the flu season are on the near horizon. However, under the government’s partisan “war cabinet” a coordinated approach to the crisis seems to be missing. We are looking for more systematic and less chaotic here! One example, the distribution of scarce essential goods depleted by panic buying is held up by a failure to get councils involved so they can free up the delivery schedule. Some medical and communications experts have asked where the government’s public awareness campaign is? Unlike some other countries, we are bereft of the myriad of community billboards and the television and social media advertisements which can raise awareness in the public of the disease. Overcoming ignorance is a first step to diminishing fear and apathy.

As with something this truly extraordinary, of such novel complexity and uncertainty, despite (or perhaps because of) the deluge of information, more questions than answers remain…should we lockdown cities or not? What are we not doing here to stem the crisis that appears to be working overseas? Face masks, yes/no?➂ Test for virus or not test? Can I be infected, recover and be infected a second time? What’s the shelf life of an infected surface? What do I do if I’m at high-risk and social distancing is not a viable option? Should we let the grandparents babysit our pre-schoolers any more? And then of course there’s the greatest imponderable of all, when is this whole nightmarish scenario going to end?

No issues with social distancing here (Photo: AP)

All the punter at ground zero can do is listen to the official medical advice➃, make sure we inform ourselves about Coronavirus 101 and get the basics down pat. This means identifying the likely symptoms—persistent cough, sore throat, runny nose, headache, (and more seriously) fever, shortness of breath, difficulty in breathing—all the usual suspects. Understand that coronavirus can be either symptomatic or asymptomatic, that it can be mild as well as severe, and that lethality generally (but not universally) hinges on considerations of age and serious pre-existing health conditions. Learn how to avoid contagion, what to do with the lethal weapons which are our hands – washing and drying them the correct way, eschewing the convention of shaking hands with people and start guesstimating our own personal space in public➄, sneezing into your elbow, not your hands, cleaning and disinfecting surfaces and door handles, using hand sanitisers, etc. Thus armed against ignorance, and hopefully the pandemic too, we will bunker down for the long haul, tough it out and try (very hard) not to add to the growing count of national virus statistics.

⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕ ⍕

➀ and thus creating a self-fulfilling prophecy
➁ almost as unedifying was the sight of Aldi staff hurling blocks of toilet paper into the air so that demonic shoppers could jostle and wrestle each other for the prized commodity (classy look!)
➂ surgical masks have become a bit of an “us and them” issue, adding to the emerging divisive atmosphere…the war cabinet’s medical experts (in line with WHO’s recommendations) have pooh-poohed the wearing of masks for the general populace as not beneficial and unnecessary, saying they only need to be worn by people diagnosed with the disease. Given that the Chinese community in Australia tend to wear the masks sometimes for cultural reasons as much as protection, this leaves them open to wild and inaccurate assumptions about their health status as a group
➃ this will probably require a judgement call as some of the medical advice has been contradictory
➄ the latest edict in the social distancing caper from the war cabinet limits indoor gatherings of 25 in a space of 100sq m (one person to every 4sq m). I can’t wait to see police officers turning up in clubs and pubs armed with measuring tapes

⍎ ⍎ ⍎ ⍎ ⍎⍎ ⍎ ⍎ ⍎ ⍎⍎ ⍎ ⍎ ⍎ ⍎⍎ ⍎ ⍎ ⍎ ⍎⍎ ⍎ ⍎ ⍎ ⍎⍎ ⍎ ⍎ ⍎ ⍎⍎⍎

PS. All the big business houses and major financial institutions have started sending out “touchy-feely, look we really are human” messages, along the lines of we’re here to help “our people” get through COVID-19 … excuse me while I go and bolt down my raging cynicism to the floor.

Hitler in Norway: Raw Materials for Matériel, Geopolitics, Ideology and Propaganda

Posted on by funambulator@live.com
International Relations, Military history, Regional History

Norway, Sweden and Denmark (www.geology.com)

At the onset of world war in 1939 the principal adversaries of Nazi Germany and Adolf Hitler were clearly seen to be the United Kingdom and (initially at first) France. So, why did the Third Reich focus so much on Norway in the global conflict?

War strategy was part of the answer. German military planning ante bellum had pinpointed Norway’s geo-strategic importance. It was also aware of the danger of a blockade of Germany’s sea-lanes posed by the British Navy. By controlling Norway’s long (16,000 mi) coastline, Germany could control the North Sea, providing the optimal maritime attack route for an assault on Britain. It would also ease the passage of Germany’s warships and submarines into the Atlantic Ocean. As far back as 1929 German Vice-Admiral Wegener outlined in a book the advantages of seizing Norway in a future war to expedite German naval traffic [C N Trueman, “The Invasion Of Norway 1940”, www.historylearningsite.co.uk . The History Learning Site, 20 Apr 2015. 5 Feb 2020]. The Nazis believed that Norway’s strategic ports were the key to control of the Atlantic and to the overall success of Germany in the war (‘Nazi Megastructures’).

Norway’s proximity to Sweden was another factor in Germany’s focus on the Scandinavian country, arguably the main consideration in Hitler’s and the Nazis’ calculations. Buried in the north of Sweden —mainly at the Kiruna and Gällivare mines— were vast quantity of high-grade iron-ore. In 1939 Germany imported ten million tons of the mineral from Sweden, all but one million of it from these mines [‘The Nazi Invasion of Norway – Hitler Tests the West’, (Andrew Knighton), War History Online, 01-Oct-2018, www.warhistoryonline]. This raw material provided the steel for the German war machine – its armaments and equipment (weaponry, tanks) and aircraft.

Kiruna mine 🔼

As Sweden was (like Norway up to April 1940) a neutral country in war-time and was freely selling iron-ore to the Germans, why did Hitler need Norway? The problem was the port of Luleå on the Gulf of Bothnia in Sweden, from where the Nazis transported the precious loads of ore…in winter it would freeze over. To meet the exigencies of “total war” the Nazis needed to keep the production lines rolling, the war schedule couldn’t afford long delays in the delivery of the iron-ore. The solution lay in Norway – the northern port at Narvik by contrast didn’t freeze over and was accessible all year round. Logistically, the Germans could easily re-route the Swedish iron ore via the Norwegian coast (Trueman). What made this more pressing for the Germans was that Britain spurred on by Winston Churchill was planning to mount a expeditionary force to capture the Swedish iron-ore mines to deprive their enemies of it [Tony Griffiths, Scandinavia: At War with Trolls, (2004)].

In April 1940 Germany, concerned that Britain was trying to engineer Norway into the war, implemented Operation Weserübung, invading both Denmark and Norway at the same time. Neighbouring Denmark for Germany was a staging post and base for its Norway operations. Denmark capitulated virtually immediately but Norway, with some limited and not very effective help from the British, French and Polish, held out against the massively superior might of the Nazi Heer, Kriegsmarine and Luftwaffe for over two months.

🔼 Quisling inspecting the Germanske SS Norge troops in Oslo

The Norwegian surrender came, inevitably, after the Allies withdrew their support. The German Wehrmacht stayed in occupation of the country for five years guarding the precious iron-ore route. Hitler, wanting to project a veneer of legitimacy, installed a pro-German Norwegian puppet regime under Vidkun Quisling, a fascist collaborator and leader of Norway’s Nasjonal Samling party✱. Quisling, evoking an ancient Viking concept, the hird✧, formed his own paramilitary organisation [Tony Griffiths, Scandinavia: At War with Trolls, (2004)], however real power lay with the Hitler-appointed Reichskommissar Josef Terboven.

Hitler had another, ideological motive for extending the scope of his Third Reich empire to Norway. The Nazi Führer was an ardent admirer of Viking and Norse culture. Nazi ideology rested on a belief in so-called “Aryan superiority” which elevated Nordic people such as the Norwegians. This ideology was reflected in SS recruitment posters circulated in Norway (and Denmark) during the German occupation…propaganda aimed at an historic appeal to Norwegian manhood, conflating of the Wehrmacht soldier spirit with the valour and exploits of Viking warrior culture [‘Vikings: Warriors of No Nation’, (Eleanor Barraclough, History Today, 68(4), April 2019, www.historytoday.com].

The Nazis’ program of Lebensborn –intended to create “racially pure” offspring was practiced in Norway, resulting in somewhere between ten and twelve thousand babies being born to Norwegian mothers and German fathers⊚ (‘Vikings: Warriors of No Nation’).

🔼 (L) Quisling, (2nd from L) Himmler, (3rd from L) Terboven

Hitler’s preoccupation with Norway, its natural resources and its supposed Aryan virtues, was to have critical and fateful repercussions for the “big picture” war strategy of the Third Reich. The Nazis fortified Norway more heavily than any other nation it occupied during the war, several hundred thousand German soldiers (regular army, Waffen and Schutzstaffel – SS) were stationed there – a ratio of one German soldier for every eight Norwegians! [‘German occupation of Norway’, Wikipedia, http://en.m.wikipedia.org]. When the Allies launched their decisive D-Day operation in 1944, these unused, excess troops in non-combative Norway may very likely have been vital to the German efforts to stem the Allies’ major offensive at Normandy.The Nazis used ancient Viking rune symbols on their uniforms and flags, like the SS’s sig rune insignia (above)

——————————————————

✱ adding a new word, ‘quisling’, to the lexicon. The charade was maintained with Hitler declaring that occupied Denmark and Norway were under the protection(sic) of the Nazi state, Hitler‘s Scandinavian Legacy, Ed. by John Gilmour & Jill Stephenson, (Introduction) (2013)

✧ in Old Norse, originally a retinue of informal armed companions, analogous with a housecarl, a household bodyguard

⊚ the most famous of which is Frida (Anni-Frid) of the Swedish pop group ABBA

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

Posted on by Bonza Rottwheeler
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)