The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-04-11
IMPORTANT OFCHINA
THE Railroads.&c. HUNG CHANG
TIL RUSsO-CHIyl TREATY.

lhE bOSSV-C
The Prince syndicate's Propositions Rejected
Tho Largo Hole Played hby shenG Taotni-
Hung Chang Coming Hack Into Favor.
PIKIN, Feb. l5.-It Is now known here Of
hcia.ly that Sheng Taotai, Director-General OF
Imperial Chinese Railways, has rejected all
propositions made to him by Mr.. Cary for the
Bo-called American or Prince Syndicate; that
Mr.. Cary loft. or was to leave. for home on tho
18th; that ex-senator Washburn, who arrived
In December, will remain ut Shanghai till spring,
and then come to this place, and that Mr.. Bash
and the syndicate engineer will mako an over
land trip along the proposed Hankow.Pokin
line, arriving here about the first Of April. This
Is the sole result Of n months negotiation,
during which Sh1ng has shown himself to he one
OF the clevcrcst and most shifty men in China.
He has powerful support in the Government.
Among his official friends and hackers arc
Prince Kung. the Empcror's uncle; Wong Iung
Ho. the Conservative leader; tho T,icntsin and
lIankow Viceroys. and last. though not least,
II Hung Chang himself; THIS same Shehs
Taotai was the high, official who guided me
sol. distant Count Mitkicwic2 In his late cftort
Ito capture and rcorganize the Chinese en-
pirc," and. it is unnecessary, to and, was taken
princely promise of "a half million or a million OF
dollars, more or less. for his assistance In carry
ing through The so.callcd CONCESSIONS.
ShtnE Is nov President OF the China Merchants
Steamship COMPANY. Dircctor-Gencral or the
Imperial TelcErnrhs and itTiiroaHs' inc l =
hai.Ouan, and fifty miles beyond; and also or
the new line under construction from Iicntsin
to pckin and beyond 10 the Great wall. He is
besides head OF the llnnkow Iron Works, OF the
Government gold mines in kirin, and OF several
cotton mills and native banks in Shanghai. AL.
together he is tho most trusted, ii not the most
powerful. parsonage now in Chinese Official NE.
tie is astutc and crafty. and has been displaying
his highest qualities in negotiating with the
Amer leans and in playing the English, Germans,
French, Russians. and Americans all against
orI, Al, hpr fpr hpttpr terms. moi only in COnlcC-
ton with the tinnnCicring and construction or
the proposed railroad from rSkin 10 me
r,sc within his control; bright as he certainly
is. he appears to luck knowledge Of Western
load finance and management, and hence his
projects hay" so far proven to be impracticable.
rs an expert adviser. and the Chinese merchants
and capitalists ARE unwilling, TO trust thelr
coordinate control by. foreign experts of APP
proved character. so far as il can be made out,
that the railroads shall he absolutely under
Chinese control: that the foreign experts shall
be mere paid servants to the Chinese directors,
that Chinese materials, especially rails to be
made nt the Hankow works. shall be used as far
as possible, and that such Materials, machinery.
and supplies rs come from abroad shall! be
bought from those who will furnish them
cheapest, without regard to nationality.
The financial scheme is a novel one, to say the
tncis from the Pekin board of Revenue, and
al Tientsin and Nankin. This would be equiv
alent to about $500 900 in gold, but II seems
to be conditional upon n loan of 1900, 900 more
from II foreign syndicate, at 81, or per cent.
upon the sole security of the railroad to be built,
and without any Government guarantee.
1t is proposed that the syndicate shall have a
contract to build the road and furnish the mate
rails at n minimum profit. but without stock or
permanent interest in the railway company.
1t is proposed. to raise additional money from
Chinese capitalists on shares OF stock. to be paid
for as follows: IGia per cent. cash at the date OF
subscription. to be credited at 20 per cent. and
1e &c ee iofiq ANNUALLY lGF ten mssS Shirs 81 % ' per ps esnf. IN OF All I
after which it is supposed that the profits OF the
road will pay 5 per cent. per annum. which will
be credited upon the stock, and make II full paid
plan the subscriber will pay only ,47la per cent.
for 100 at the end OF twenty years. Attractive
as this is supposed to be, II has not YET proved 10
European and American methods it seems
highly fancifu!, and therefore likely to prove an
s ioreisn la capita Ii a"f have u shown as ne amy d hstssi h1e
10 accept these terms, and all efforts on the part
bf the American negotiators 70 secure, others
Pekin Government has declined to overrule Di-
tector-General Sheng. who wnS appointed with
Pekin line must be considered as abandoned for
the present
BY the imperial and provisional Governments.
II the conditions under which it was promised
II short line from Shanghai to ,Soochow and
another from Nankin TO Hangchow. while the
longer ana really inucn more important line
will have to wait for more favorable conditions.
Iii Hung Chang has just passed his seventy
fifth birthday, and, with Chinese inconsistency,
has been made much OF by all the Princes and
high officials. The Emperor and the Empress
Dowager-tho august lady in whose garden the
old statesman took an unauthorized walk some
time ago-both sent him elegant presents and
many kind messages, and. so far as an outsider
can Judge. they are all on excellent terms with
him. The fine inflicted upon him with such n
show of imperial anger it is now well known
was a trivial one, although some English ac-
counts have stated IL TO be a million pounds, 1t
Is believed by his friends that he will be called
at no distant day to the Cabinet or to his old
place OF Viceroy. not of China, for no such office
exists, but OF the metropolitan province OF
Pechihli. with his Headquarters at Tientsin.
The attention of observers here has been re-
Gently drawn toward the treaty negotiated by
Lii Hung Chang with the Emperor of Russia.
Cassini back to st. Petersburg. The exact
terms of this treaty are AZ yet unknown to the
public here or elsewhere, but it is semi-otiicially
admitted that II gives Russia not only right OF
way through Manchuria to VladivostOck on
satisfactory terms for its Trans-Siberian Rail
road. but establishes a Russian protcctorate over
that rich and populous province, and makes
Russia irrevocnbly the dominant power at the
Chinese Court, as well as throughout Eastern
Asia. By specific provision OF the treaty China
really becomes deDcndent upon Russia for de-
five million Iaels in the Russo-Chinesc Bank, re-
Gently established in China. as IA guarantee that
she will make railroad connection between the
Vladivostock line and Port Arthur. Failing in
this-and there is yet no sign on the part of the
Pekin Government OF any practical measures to
carry out the agreement, the money will become
forfeited, and Russia will doubtless assert her
sovereignty over the whole OF Manchuria, a re-
gioD 300 miles long by 600 wide. and said to
contain over 20, OOO,O 600 people. When 1t is all
ended II Will be a pretty good stroke OF business
disadvantageous 10 any other nation. except
perhaps Great Britain.