Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-04
American Capitalists Building Rail-
roads in the Flowery Kingdom.
THE BELGIANS ARE THEIR RIVALS
A Scheme Set Up Something Like
the Credit MobiIier.
RAILWAY DIRECTOR SHENG
From the Railway Age.

have fatty refused to produce the money
and that the whole deal has fallen through.
The agents in China of the Belgian cap
italists still say the contract will prevail;
but the belief that the Belgians not
satisfied to loan money under the peculiar
conditions provided in the agreement is
strengthened by Information which comes
to from Chinese official sources. The
preliminary articles and the articles which
governed when the several parties to the
big deal drew up and signed the final con-
tract. provided that the Chinese company,
to whom the loan was to be made, should
apply TO the imperial government for per-
mission TO mortgage the railway prop
erty to the Belgians; but there does not
appear 10 be any provision that will allow
the foreigners to operate the road IL
of foreclosure. This IS what is troubling
the Belsians. Ex-Cnited States Consul
General jernigan has interested himself
very much in the proposition of American
capitalists to build railroads in China. and
vas especially interested in what is some
times called the Sensational syndicate
the big combination of which Senator Cal
win Hrice is prominent member. and in
behalf of which Senator W. d. Washburn
came to this country last winter and
derteoh to effect loan
There Was Competition.
There was a great rush of representatives
of four or more countries that We're anxious
10 deal with the Chinese in this matter.
Senator Washburn was treated with great
consideration by Sheng Taotai, who felt
particularly friendly toward Consul Gen
eral Jernigan. Senator Washburn received
number of propositions. but he did no:
see mt 10 accept any of them. He offered
TO build the proposed Hankow-Peking
trunk line for something less than 10000
600 taels: which, according to present ex-
change, is about s2J.0D0,0oo.
The senator wanted To build the railway
Tor so much money, take a mortgage
the whole property for security. and then
have the Chinese government guarantee or
approve ;he contract. This latter request
was eliminated the senator apparently feel
ing that the signature of the Chinese direc-
Tor general of railways was equivalent to
governmental guarantee. The senator did
ROT nave confidence in the ability of the
thinesf TO properly operate the road. and
he desired certain amount of stock and
voice IN the admins tration of the property.
ShepG Taotai would not listen to the propo-
sition that the Americans should assist in
managing the property, although he fire.
QuCntly and emphatically declared he had
more confidence in the honesty and railway
building capacity of the Americans than
he had in any other from whom he received
proposals. So the thing far as the
Americans were concerned fell through,
and Senator Washburn returned to Amer
lea. While his mission was failure il is
the opinion of the best business men in
Shanghai that he did the sensible thing in
rejecting Shens's propositions.
International Affair.
Moreover, j am able to say that if the
BelSans have rejected the agreement as
is rumored. Chinese officaldom at Picking
Eiu not regret il. Considering the trans
action in the light of more recent occur
rences tie Chinese do not themselves fam
cy the bargain they made. They now
convinced that RI ssia and France have
greater interest In this matter than the
Belgians themselves. The purpose of the
Belsians is wholly conmercial-a straight
money making affair; while behind the Bel
gians stand Russia and France with
larger object in having some friendly third
party get financial grip on the Chinese
government.
Mr. Jernigan is also hopeful that the
Americans will yet secure the contract for
the Acknowledging line A w. Bash, the
energetic American who was Instrumental
in bringing about the organization of the
American syndicate. has not yet abandoned
the field. He now believes the Belgian deal
Is OFF. and believes the Chinese now realize,
more fully than they ever realized before,
that Americans can build railroads better
than any other people in the world. and
also that there would be absolutely nothing
to fear should the Americans take part in
the management of railroads in China.
Sheng Scum Wy, better known as Sheng
Taotai. director general of imperial Chinese
railways. is certainly one of the most in
tcrestinC characters and foremost men In
the celestial empire today. Sheng appears
to have the Grand Old Man of China" Ii
Hung Chang, in the affections and good
graces of the young and impressionable
emperor.
PrOtege of Ii.
The ways CT Chinese officialdom are past
finding out. The plucking of one of Ii
Hung Changes peacock feathers, the cut
ting off of a bit of the nationally sacred
yellow Of his jacket, and then adding in
suit to injury by causing the venerable
treaty maker, contract jobber and globe
h fs,,n fGr .li,Ncr
upon particularly sacred section of the
empress garden at Picking, may be msun-
derstood by the outside world Ii had been
baHqueted and Toasted by royalty and no.
bility everywhere. and lest he might grow
to think himself bigger man than the
emperor, he was thus Inundated.
Sheng Taotai IS really a protege of Lis,
although the two leaders seem to be pull
ing in opposite directions just now. So far
as appearances go, Sheng and Ii now
enemies. The advancement of the Shang-
hal man and the humiliation of the aged
diplomat have apparently reversed things,
far the two men are concerned.
Sheng has unQuestionably absorbed some of
Lis progressive views Sheng is the lead
ing spirit-the arbitrary dictator it would
seem-in the great financial movement
which has resulted in the recent establish
ment Of the Imperial Bank of China. Be
sides being director general Of the Chinese
railways and head of the government tele-
graph he Is president of the big China
Merchants Steam Navigation Company,
and Is the controlling spirit in cotton spin
ming, iron, coal mining and insurance COM
panies-
He is giving each and every plan thor
ough consideration. He had his own Ger
man engineer make a survey of the thou
sand miles of territory between Hankow
and Picking. He was pleased exceedingly
with the opportunity to employ Captain
Rich. agent of the American syndicate and
is awaiting the forthcoming report with
as much interest as IL he was entirely I'M
familiar with the whole proposition.
Shcng Taotai is ffty-three years of age,
a man of very pleasing address. affable in
manner. graceful in conversation, man of
Few words when discussing general bust
Ness matters, direct and forcible.
Germany's Marriage Schools.