The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-04
ASkSS1,OOO,OOO
THURLOW WEED BARNES WANTS
BIG PAY FOR HIS SERVICES.
He Sues the Brice Syndicate for Re-
Enumeration for His Work in Sc
curing a Chinese Concession.
VALUABLE GRANT OBTAINED
THAT MAY BE WORTH s24, 200, 600 TO
THE CONCEssIONAIREs,
Net, According to Mr.. Barnes, the
Syndicate Refused to Grant His
Request for Compensation.
Mr.. CARNEGIE 4 DEFENDANT
NAMES of MANY OTHER WELL
KNOWN MEN MENTIONED.
SA
How che Concession Was Secured
Hallway One Thousand Miles
Long to BE Constructed.
Ket, According to Mr.. Barnes, the
Syndicate Refused to Grant His
Request for COMPENSATION.
Mr.. CARNEGIE A DEFENDANT
NAMES OF MANY OTHER WELL
KNOWN MEN MENTIONED.
How che Concession Was Secured
EaiIway One Thousand Miles
Long to BE Constructed.

NEW YORK, Dec. 3.-The World to-mor-
row viii say: Thurlow Weed Barnes has
brought suit in the Supreme Court against
the American-China Development Company
for $1,O00OOO for services in obtaining rail-
road concessions from the imperial Chinese
government through the Chinese minister
at Washington. These concessions are
wor' in net profits at least S12, 900, 900 to the
coml any, and they may be worth S24, 100000
They are the most valuable grants ever
made by the Chinese government to for
eign capitalists, and the terms are more
favorable than the concessions obtained in
recent years by French, Belgian, English
and Russian syndicates.
The chief spirit of the American China
Development Company is Calvin S. Brice
His associates are James II. Benedict
banker; Anthony n. Brady, the Carnegie
Steel & Iron Company (Andrew Carnegie);
j. H. Jarvis, OF the Arbuckle Sugar 6. Cof-
fee Corporation; Frederick p Olcott, presi-
dent Of the Central Trust Company; Will
fam A. Read, General Samuel Thomas,
railroad owner; Richard ]. Cross, of Morton,
Bliss & Co.; Levi p. Morton, Thomas c.
Platt, Henry w. Cannon, of the Chase Ma
tionaf Bank; Thomas Il. Ryan, street rail-
way owner; James Stillman, of the Stand
fellers; Moore & Schley. bankers; John r.
Hegeman, Of the Metropolitan Life Insur-
Rnce Company; Clarence Cary, as trustee of
H. Mex. Twombly, and various Vanderbilt
interests; Hartley & Graham, arms manu-
facturers; James p Mcdonald, railroad
contractor; James Mcknight, counsel for
the Northern Pacific Railroad; George r.
Sheldon. banker; +. Charles, II. Coster, f.
Z. Randall, president of the Southern Trust
Company. and many others of like promi-
nence in the financial world. All of these
are defendants in the suit, as they are CO.
partners in the syndicate which controls the
concessions.
Barnes alleges that after Brice's envoys,
including ex-senator William d. Wash
burn. of Minnesota, had failed to obtain
the concessions sought, Brice sent for
Barnes and asked him to undertake the
work. Barnes had spent many years in the
Orient. and had made several friends among
the natives high in power. and, moreover,
was a friend of Wu Ting Fang, the Chi
nese minister at Washington Mr.. Barnes
agreed to do the work, it is said, on the
verbal understanding that he would be duly
compensated for any valuable results he
might accomplish. He and Clarence Cary
were appointed a special committee to OBJ
tain the concessions Mr.. Barnes being
known as the managing member of the
committee. Associated with them was A.
w. Bash. They set to work in January
OF the present year.
HOW BARNES WORKED IT.
Mr. Barnes first arranged through his
friends IN Peking by cable to have the
Chinese Cabinet confer upon Wu Ting Fang
the special power to make any railroad con-
cession he might agree to with the Ameri-
can syndicate. He was successful in this
and the negotiations with Wu Ting Fang
direct were begun. In April an agreement
was reached. During these months an i'm
mense amount of correspondence passed be-
tween Mr.. Barnes and the Chinese minister,
and between Barnes and Mr.. Brice and
other members of the company, and also
between Barnes and Mr.. Cary and Mr..
Bash. These letters and kilograms, it is as
serted, viii prove that Barnes got the con-
cessions.
The draft of the agreement reached by
Barnes and the Chinese minister was drawn
up by Barnes and was accepted by both
sides without change ex-Secretary of State
John w. Foster acting in an advisory ca
pacity to the Chinese minister This agree
ment was reached April 13 and signed the
next day. Subsequently it was ratined by an
imperial edict by the Chinese government.
The concessions obtained by the company
provide for the building of a trunk line rail-
road from Hankow south to Canton, a dis
tanca of about one thousand miles. 1t will
run through the richest and most fertile
region of China The population of that
section of China is 2O0.o0o000. From Han
kow north to Peking runs a proposed rail-
road, the concession for which was obtained
by a Belgian syndicate. From Peking
northwest runs a short road owned by
China, which will connect with the great
Transsiberian Railroad built by Russia.
Thus the road permitted by the American
concession will have through connections
with the Russian Transsiberian road
The most valuable part of the concession
obtained by the Americans is the financial
terms. These have never been published.
The road it is estimated. will cost $40, ,OOo.-
600. Bonds for 10 per cent. more than the
total cost are to be guaranteed by the inn
perial Chinese government. The 10 per cent
additional or 100000, is clear profit TO
begin with The bonds are TO be paid in
gold to run fifty years and TO bear per
cent interest The Chinese government also
agreed to pay the America China company
8 per cent on the total cost of the road for
experimenting the construction. In addi-
tlon the Chinese government agreed TO nav
% per cent. of the net profits Of the road
ia the form OF debenture bonds bearing
per cent. interest and running forty-three
years After paying all expenses Of the
road, including the redemption Of the bonds.
the road is 10 become the property of the
Chinese government The Chinese govern
ment has the right to redeem the debenture
bonds at par and the 5 per cent. gold bonds