New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-08-01
JAPAN.
TIE RAILWAY LOAN
q. v, 8,

YOKOHAMA, June 1O.-A somewhat curious
story is in circulation relating to the japanese railway
scheme, which, announced by recent kilograms from
this try, successfully begun by Mr.. ii. N.
Lay, c. B., ex-Inspector-General of Chinese Customs,
millionaire and unsuccessful competitor for British Par
amentay honors According TO the account sent at the
time, the japanese Government were, just about year
ago. in exactly the position Of who wanted to buy
house without the Of laying down the necessary
funds At the precise moment when the offer was most
acceptable, MI. Lay appeared upon the scene with
round S. 100000 which he ready to lend at an abb
suTdy small rate of nterestsome IL cent-upon con
dtOn of being secured by lien upon the profits Of the
railway, and the Customs OF the Empire That
the latter fully required TO meet the necessary de-
mands in acountry where the redemption OF the paper
money (Knsa) is event beyond the utmost resources
OF the Imperial Treasury is perhaps unfortunate put
has not operated to prevent the arrangement mention
At all events S25OoOO paid over as guarantee OF
the good faith of the lcan and agreements were duly
vesting in Mr. Lay the administration OF the
| line until the loan De repaid
Such in the proportion of ten lines OF information to
column Of defamation upon the past present. and per
ecy certain future Of JAPAN is what appears from the
numerous articles published by the foreign press OF tins
country. Mr.. Lays journal, The Japan MAIL being
especially conspicuous for its Tetcence upon business
matters and It's confidence in the future. Mr. Lay him
self left in February last for England, and the British
press. both here and in China unanimous in lis
praise Shortly after his return advertisements appeared
in The Times and other London journals calling for sub
scTptons to the loan thus contracted by Mr. H. N Lay
as was supposed with the japanese. Every confidence
being felt in that gentleman, it quickly taken up
the unsuspectng subscribers niue Iklng tnaI tne t
wheel within wheel in the affair which would NOT
only upset Mr. Lays scheme, but may result III leopard
Tie true position occupied by Mr. Lay while thus nego-
who subscribed and the native authorities 1t was
all sides supposed that he represented certain moneyed
in Ittain md W a
credit to invest az be Best might in the Far East they
serving the right to turn their investment into joint
foot But il now appears that this arrangement applied
only 10 China whittier Mr. Lay proceeded in the first in
came convinced any negotiations with the Chinese
Government must be Ruthless and he therefore crossed
he invested the half million above described, engaging
TO raise the remainder his return home. But on his
had advanced TO the japanese in other light than as
Subscribers 10 the whole loan legally II may be thst
they only entitled to voice i'll the direction under
the engagements made respecting the aDOrtive Shnt
regard the matter in that light but assert their position
directors he having used the credit with which they
had entrusted him to perfect his arrangements with the
! Japan Government Whatever its legal bearings, how
ever there 10 have been rather a questionable
snartness displayed by Mr.. Lay than that higtoned
principle which should characterze the proceedings OF
/ man : largely trusted by his friends.
The upshOt of the whole affair is more gratifying to
those who have censured Mr.. Lays conduct from an
unneresed point of view than to the subscribers to the
loan, who paid up on the faith OF his reputation Tor
honest dealing. The first guarantors, Mossrs Novel;,
smith q Fairbairn and Capt. Sherard Osborn of the
British navy, have filed bills in the English Court OF
Chanccry against Mr. Lay TO restrain his taking further
action in the matter If successful they Will OF course
lose his services which, whatever his conduct possess
much value: and this will not cOnduce to the interests OF
lie subscribers some OF whom understand are Anef
can citizens resident in London. In any case the result
must be expense and delay Not the least curious fea
turc in the case is that the objections al
lowed the whole loan to be subscribed for without
making earlier protest against Mr. Lays assumption
of the autucratic position he took up-he more So as
that gent cnans career has been signalzed by more
| than one bold stroke for unrestricted power. Many
readers will remember that some years ago he got out
fleet Of steam vessels TO China (under the command OF
this same Sherard Osborn, who files joint bills
against hm which, had lis ambitious views succeeded
himself The plan faied-cefy owing to the influence
OF Ar Burlngnne ana sir Frederick BIuce-and Mr. Lay
was depOsed from his position InspectOrGeneral of
Chinese Customs, never again TO he employed by tat
Government u is possible that he aims at somewhat
similar position in Japan, and TO be sole director OF even
2qOIle railroad in such country as this would DOUBT
less throw considerable political influence into his hands
Whether or he viii be successful depends upon inc
result of an action undertaken by men who feel thdt lie
has il some sense used them a. his tools