The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-12-06
FOR 100000.
Promoter Barnes Goes to Court
For a Fee.
Defendants In a Scheme to De-
VelOp China.
A JUST COMMISSION
JUST COMMISSION
Refused Plaintiff For Securing
Concessions.
Got $12,OOO,OOO Worth by
Spending Only 100000.

New York, Dec. 6.-Thurlow Weed
Barnes has brought suit in the supreme
court against the American-China devel-
opment company for $1,O00OOO for services
in obtaining railroad concessions from the
imperial Chinese government, through the
Chinese minister at Washington.
These concessions are worth profits at
least So. 10000 to the company, and may
be worth $24, 900 900, and $500 900 is all that
has been subscribed or StaAed. The grants
are the most valuable ever made by the
Chinese government to foreign capitalists,
and the terms are more favorable than
the concessions obtained in recent years
by French, Belgian, English and Russian
syndicates. The trial of the suit will be
of interest and will be carefully watched
by representatives of the great financial
institutions in all the money centers of the
world, as the testimony will reveal in de-
tail all the manipulations consequent upon
the perfecting of one of the highest fin
ancial operations of the kind ever con-
Barnes not only says he has been paid
nothlng Tor his labor, but has been frozen
The chief spirit Of the American-China
development company Is CALVIN = Br1ce-
banker; Anthony N Brady, the Carnegie
Steel and Iron company (Andrew Carne-
gie) J. H. JaTvie Of the Arbuclxle sugar
and coffee cOrpOratiOn), Frederick P. OIL
colt, president of the Central Trust COM
pany: William A Reed of VermiIyee &
Co, General sam Thomas, railroad owner;
Senator Henry R. WOlcOtt of Colorado;
Richard J. Cross of Morton, Bliss & CO..;
Levi P. Morton, Thomas c. Platt, Henry
w. Cannon of the Chase National bank,
Thomas F; RYAN street railway, owner;
pany, representing the ROckefellerS; Moore
& Schley, bankers; John r. Hegeman OF
the Metropolitan Life Insurance company;
CLARENCE Carey, trustee of H. Mex.
TWombley and various Vanderbilt inter-
ests; Hartley & Graham, arms manufac-
turers; James p. Mcdonald, railroad con-
tractor; James Mcknight, counsel of the
Northern Pacific railways George r Shell
don, banker; Charles F. COster, F. e. Ran
dali, president of the Southern Trust COM
in financial circles All these are defend
ants in the suit, as they are co-partners-
Barnes alleges he was requested to IN
Gertake the work of obtaining the fran
chise He succeeded, he AYERS, in secur-
ing a contract through the Chinese min
lister, which was later ratified by an i'm
perial edict, and which provided for the
building of a railway from HankOw to
Canton, distance of about 1000 miles.
The most valuable part of the concession
obtained by the Americans is the fiuan-
cial terms. These have never been pub
cost $40, 600 Bonds for 10 per cent
more than the total cost are to be guaran-
The 10 per cent additional or $4,000, 900, is
clear profit to begin with The bonds are
bear per cent interest. The Chinese gov
eminent also agrees to pay the American
China company 8 per cent on the total
cost of the road for experimenting the
In addition the Chinese government
agreed to pay 20 per cent of the net prof
its of the road in the form of debenture
ming 43 years. After paying ali expenses
of the road, including the redemption of
all bonds, the road is to become the prop
erty of the Chinese government.
The Chinese government has the right
to redeem the debenture bonds al par and
the per cent gold bonds a 1921 in the first
% years and a par thereafter. BY the
concession the American company also OBJ
tanned the right to mine the rich coal
fields which extend along parts of the
route of the road.
An even more valuable feature of the
concessions is that in the event of the con-
tract with the Belgian syndicate to build
another great road being Cancelled, the con-
cessiOn to build that road viii revert to the
American-China Development company on
the same conditions governing the Han
kOW-CantOn road. It is thought the Amer
lean company will get this concession
Barnes did the work under a promise of
proper Temunera ton. He saws the fee
offered is ridiculous, hence his suit, 81 600
900 being to him a modest fee.