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SZE MA-CH’IEN (136-85 B.C.) wrote that Laotzu was born of the Li family of Ch’u-jen Village, Li County, Wu Province, Ch’u State. His proper name was Err, his official name was Poh-yang, his posthumous title was Yueh-tan. He held the position of custodian of the secret archives of the State of Cheu.
Confucius went to Cheu to consult Laotzu about certain ceremonials; Laotzu told him: "The bones of these sages, concerning whom you inquire, have long since decayed, only their teachings remain. If a superior man is understood by his age, he rises to honor, but not being understood, his name is like a vagrant seed blown about by the wind. I have heard it said that a good merchant conceals his treasures, as though his warehouses were empty. The sage of highest worth assumes a countenance and outward mien as though he were stupid. Put aside your haughty airs, your many needs, affected robes and exaggerated importance. These add no real value to your person. That is my advice to you, and it is all I have to offer."
Confucius departed and when he later described to his students his visit to Laotzu, he said: "I understand about the habits of birds, how
they can fly; how fish can swim; and animals run. For the running we can make snares, for the swimming we can make nets, for the flying we can make arrows. But for the dragon, I cannot know how he ascends on the winds and clouds to heaven. I have just seen Laotzu. Can it be said, he is as difficult to understand as the dragon? He teaches the vitality of Tao. His doctrine appears to lead one to aspire after self-effacement and obscurity."
Laotzu lived in Cheu for a long time; he prophesied the decay of that state and in consequence was obliged to depart, and went to the frontier. The officer at the border post was Yin-hi, who said to Laotzu, "If you are going to leave us, will you not write a book by which we may remember you?" Thereupon Laotzu wrote a book of sonnets in two parts, comprising in all about five thousand characters. In this book he discussed his conception of the Vitality of the Tao. He left this book with the soldier, and departed, no one knows whither.