New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-06-09
THE CHINESE CONCESSIONS.
CARRYING THE CONTROVERSY INTO COURT
COUNT EUGENE DE MIrxIEwTcz BRINGING eOi'
AGAINST WHARTON BARKER, OF PHILApELPhIA.


Philadelphia June (specIal)-Wharton barAcr'
who with his wealthy friends Of this city has repre-
sented the moneyed side of the enterprise geheraiiy
known as the "Chlnese concession" has Dec" SUI
in tho Court of Conn Pleas In this city, Dy |ou"
Eugene de Mitkiewcz, who has been the negotaor oi
the grants from the Chinese Government Tor an ac-
counting and for a specific performance OF inc agroe
ments alleged TO have been made by Mr.. Barker con
cerninq the enterprise. The complaint, which Is III
the form of a bill in equity, tells an eAtraornaS
story of a financial scheme, many parts Oh "poh
arc entirely new The bill was filed to-day py MesSrs
sackett and Bennett, the New-York counsel ior Air
de Mitkewicz, his Philadelphia solicitor being inc
we'll known wIlkcsbarre lawyer, Alexander Farnham
Prior TO March, 1857, the complaint says, Messrs
do Mtkicwicz and Paine had devoted their ehergics
at great expense to obtain from the Chinese Govern
ment a concession grant for telephone company
to carry on telephone business In the treaty por's'
Of that Empire subsequently an agreement was made
between Messrs. Barker, dc MitkIewicz and Paine,
under which 1t was agreed that Mr.. BarAcrs interest
In the concession should be thrteen-twentieths,
Mr. de Mitkiewczs three-twentieths and MI. Paihes
four twentcths The telephone company, to be called
the American Telephone Company, was to be formc1
with capital stock of sc 100000 OF which S1.OOO,OOO
was TO be limited Chinese subscriptions; the re-
mainder was TO be owned by company, TO be formed
with capital stock of S20,00000o which should con
troll and all other concessions obtained from the
Chinese. All the capital necessary was to be ad-
second company above referred TO was also to be o.
canized by him as soon as the concessions OBJ
taincd
Tie plaintiff further alleges that after an expedi-
tion had been fitted out at cost Of about $4,000 be
went with 1t to China The Viceroy, Ii Hung Chang,
Issued a decree granting to Messrs. de Mklewicz and
Barker an absolute telephone concession. The
grantees assigned it to the Chinese American Tec-
phone Company, and provisional certificates were Is
sued over the signatures of NJ Barker and Mr. DO Nit
kiewcz, for about 81 100000, to Chinese officials.
The plaintiff also says that he undertook the nego-
tations for another concession OF great magnitude
and value, namely, the plan for the Chinese American
Bank The Vicoroy finally directed the execution of
a provisional banking concession upon this plan and
II agreed that Mr.. de Mitkiewicz should at once
go to America with Ma-KcC Chang the principal rep
rcsentatve of the Chinese Government, and arrange
with the Chinese Minister and Mr.. Barker the final
settlement Of the banking concession.
Mr. Barker invited Ma Kle- Chang to his country
home near Philadelphia, and from this time
apparently dates the first break In the of the
grand scheme. Before Ma-Kie-Chang went away, Mr..
| Barker succeeded in obtaining from him the
cuton of paper which purpored TO be an alteration
| of the banking concession wherein the name Of Mr.
de Mitklewcz was omitted as grantee and Mr.. Bar
ker appeared the sole grantee. The results was tho
departure OF the envoy with the negotiations inter
rupcd and nothing accomplished, so far as the bank
| Ing business was concerned. When repeatedly urged
TO carry out his agreement to the formation of the
companies, Mr.. Barker finally showed to his asso-
ciates agreement made between the members Of
| the pool August "a, 1887, whereby each agreed
with him that he might negotiate and sell fourth
Of his interest in the American and Oriental Com
pany at the rate OF % cent Of the par value One
fifth Of the proceeds should be paid to the companys
treasurer and the remainder to the Mr.. Bar
ker TO keep the remaining three fourths for two
years as trustee. The corporation, 10 be known as
| the Finance Company of Pennsylvania, was to be
ganized with capital stock of S5 100000, and each
subscriber paying cash par value for his stock was to
be entitled to subscribe to the stock Of the American
and Oriental Company TO the amount of one half OF
his stock in the Finance Company of Pennsylv ania
at the Of % per OF the par value thereof"
McssTs. Paine and dc Mithiewicz signed this agree
ment, but tho other members OF the pool kept In
ignorance OF their interest in tho matter Mr.. Bar
| ker still delayed forming the companies. agreed,
| under various pretences Among other excuses It
is alleged that he asserted the plaintiff and Mr..
Paine that the provisional banking session had been
revoked by the viceroy, although long after making
| those excuses he represented and continued 10 rep
| resent to others that the provisional banking con.
cession I'm full force, and upon the strength OF
| such representations Induced them to make payments
100000
Mr. Barker IS alleged to have made trust deed
and Samuel Grey, trustees for ten years, all In
tcrcst In the Chinese concessions by the terms OF
this trust deed, UIStccS were 10 organize nnan-
cial scheme under the name OF the American and
Oriental Trust Company with capital Of 200 900
the whole enterprise TO bo under and virtually con-
troed by these three trustees. who were each 10
draw an annual salary Of $4,000 and also
ceive between them 10 per cent Of the annual pro-
ceeds.
The complaint further ayers that the Chinese I'm.
erested In the said telephone concessions have sent
repeated and urgent requests, which have been com
municated TO said Barker, that one should be
Immediately sent 10 China 10 carry the contract
involved In the said telephone concessions and Of
tablishing the business 20 be done Hereunder
The plaintiff asks that the defendant barker be
dccrcod organize the Chinese American Telephone
Company with a capital OF S60OOO00: also TO IN
corporate the Oriental Company originally agreed
or else the American and Oriental Company and the
Finance Company OF Pennsylvania agreed by the
contract Of August "a, 1887 IL Is also asked thai
the defendant to the plaintiff for the plant
the expedition In his possession. and repay u
| the plantih, as agreed, the SIS 900 or moro which
the latter expAnded on the expedition to China