The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-09-17
EXPLOITING CHINA.
Foreign syndicates Getting Good
Start in~the Empire.

Start IN the Empire.
New York. Sept. IA dispatch to
the Tribune from washington, says:
Consul James W. Ragsdale at Tien
Tsin, China, reports the first concession
ever granted by the imperial Chinese
government to a foreign syndicate, by
the terms of which foreigners have the
right to open and work mines. con
struct and operate railways, entirely
free from Chinese control other than
the payment of a royalty and conform
ity with the general laws of the en-
pire as applicable to foreigners
On May q, there were signed, in the
presence OF the minister of the Tsung
Ii Yamen, articles of agreement which
ceded to the Pekin syndicate, limited
of London, the sole right to open and
work the coal and iron deposits of CEN
trail and southern Shan 81 and the pc
troleuIn deposits of the entire province:
also the right to construct and operate
all railroads necessary to main trunk
lines and navigable waters for export
ing the mining products.
The agreement was signed by orders
issued in an imperial edict stamped
with seal of the Tsung Ii Yamen, as
visible sign of imperial sanction and
authority and the whole proceedings
were verified and ratified by the Brit
lsh and Italian ministers to China. The
signing of this contract marks the most
icy of China. The precedent has been
established of allowing foreigners, for
commercial purposes, to own real es-
tate in the interior of China, open and
operate mines and construct and main
tain railways.
There have been many so-caIled min
ing concessions granted in China, but
not one of them is worth the paper it
is written on.
OF the railway concessions only one
the Belgian syndicate for the Pelling-
Hangkow railroad-has passed beyond
the preliminary stage, and in none is
the syndicate more than the financial
agent of the Chinese. This railway syn
dictate has no voice in the management
and not too much security for their
money. As a matter of fact, up to date
neither the Belgian syndicate nor any
other syndicate has furnished one cent
of money.
Following is a synopsis of the articles
of agreement between the PeAin syn
dictate and the Chinese government:
The right to open and work coal and
iron deposits in certain named dis
tricts of Shansi and the sole right to
all petroleums, these rights to exist for
60 years, are granted.
Private lands are to be purchased
and on government lands the syndicate
is to pay double the present land tax.
All matters of administration, ex-
p1OratiOn, management of employees and
finances shall be controlled by the
board of directors Of the Pekin syndi-
cate.
Each mine is to have foreign mama
gers and one Chinaman to arrange dis
pute with natives. All accounts are to
be kept by foreign methods but audited
annually by a native of China. All sal
aries are to be paid by the Pekin syndi-
cate and all receipts and payments
shall be controlled by foreigners.
All damage done to private property
in prospecting is to be paid for; ceme-
teries or mortuary shrines are not to
be disturbed.
The Chinese government is TO receive
per cent production tax on the actual
cost of extracting coal, iron or other
material. The syndicate is to receive
6 per cent interest on the capital of the
company and 10 percent shall be set
aside as a sinking fund with which to
repay the capital. Of the balance net
profit the Chinese government is to re-
ceive % per cent and the Pekin syndi-
cate rs per cent. All future coal or iron
mines worked with foreign capital shalt
pay the 5 per cent producers tax.
The Chinese government is not to be
held responsible for losses.
All imported machinery and material
shall pay ~ per cent, the regular
maritime customs dues, but no Hkin
taxes Mining products exported from
a seaport shall pay regular export duty
At the expiration of so years all ma
chinery, plant, buildings, mines, rail-
ways, etc, revert gratis to the Chinese
government.
The syndicate shall establish a school
of civil engineering and mining school
buy shares in the company.
The imperial Chinese government has
reserved $3.50, 600 worth of shares, for
which it pays in cash the par value.
When Chinese own rs per cent of the
shares of any one mine, they may re-
deem the remainder from the syndicate
and operate the mine. Private mines
now in operation may continue to work
or sell out to the syndicate.
The syndicate has the right to build
all necessary roads and bridges, open
or deepen canals or rivers and construct
all railways to connect with mines and
trunk railway or navigable waters.
In case China goes to war, Sthe syn
dictate will obey the orders of the Chi
nese government prohibiting aid to the
enemy The Pekin syndicate is COM
posed of a few men who control i'm
mense capital and who have obtained
the most valuable concessions China
could make. The preliminary work has
been in progress for over two years.
Ang1o-Italan syndicate, with a capital
of SIS 600 900.
The success of this enterprise is due
first, to the fact that the syndicate was
willing to spend money on the chance
Of getting a. concession, and that after
sending their general agent to China,
they simply allowed him to manage af-
fairs there and keep them supplied with
money Then the agent, A. Lussatti,
has shown wonderful tact in dealing
with Chinese officials, judgment in Sc
Iecting his assistants and utilizing all
available means to success and untiring
perseverance.