Abstract

The Yi-lu Electric Light Company was established in Jiujiang in 1917. Immediately afterward, this private business ran into various difficulties and the National Construction Commission (NCC) decided to take it over for reorganization in 1934. The reorganization turned the losing business into a profitable one and restored the management to its original owners three years later. The NCC succeeded for the following reasons: 1. It pumped the needed capital into management. 2. It provided qualified personnel in both technology and management. 3. It enjoyed a stable social environment. 4. It used public authorities to help collect electricity fees. This case study sheds light on the following three points: 1. Shortage of capital and qualified personnel were common for the private business at the time. 2. The government played a decisive role in developing electricity businesses throughout China. 3. Local customs and connections had their role in establishing and managing a private company.

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