A month later, First-Mate Lee informed Captain Hong that they needed to replace part of the hull on the stern-side of the ship. However they did not have enough wood and resin in the ship to repair the damage. It would take them at least three days to cross the sea to Builder Chung’s dockyard in Singapore, but the Lee doubted if they could even make it halfway through.
Captain Hong went through his ship's inventory; there was no more cloth to trade but he needed materials to repair his ship else he could not put out to sea. Again he approached Tuai Ladong with a business proposal. Hong asked if the chief would want to invest in his merchant ship. He showed him the ship's inventory; the whole cargo was worth 10,000 beads. The ship itself could be sold for 8,000 beads in the market.
Hong explained, "My next stop is Singapore, where I will trade porcelain and cloth for spices. Then I will return to China and sell my cargo. The profit from this trade will be shared with you based on the percentage of your investment."
And what guarantee is there that you will return to our beach? How will we know that you will not disappear into lands where we cannot find you?"
"I will leave my heir with you. I have no children of my own, so he is like a son to me."
The elders with Ladong nodded their assent, for they know that though an enemy's life is worth far less than the spiritual value of his head, the life of one's own child is worth more than one's own.
So thirty strong men were sent into the jungle to collect hardwood and resin, and there they chopped the tall trunks into planks with adzes. Each piece of plank was priced at 10 beads and Captain Hong's ship used up 120 planks. He also used up 600 beads worth of resin to waterproof the ship. The total investment the longhouse made came up to 1,800 beads or 10% of the merchant ship enterprise. (Note: the investment share below does not include operating expenses – eg. food and salary for the sailors.)
| Asset | Investment | ||
| Cargo and ship | 18,000 | Planks | 1,200 |
| Resin | 600 | ||
| Total | 1,800 | ||
| Percentage | 100% | 10% |
The younger Hong stayed behind with nine other men after Ladong promised to treat them well. He was instructed by his uncle to study the locality and to find out what other produce they have that can be traded in China or in the Malay Archipelago. When the tide rose that night, the ship glided away with many waves and promises of high returns in profit.
Note:
In the story above, Hong left his nephew and nine other men as a sign of his contract with the people of Ladong's longhouse. Nowadays companies no longer need to provide hostages since they issue share certificates or contracts to their investors. This is made possible because modern trade is now being regulated by international trading and company laws.
Although modern investments usually come in the form of shares that are exchanged for money, there are forms of partnerships where individuals get shares in the business based on their contribution, skills, professional license, and assets.