The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-12-04
SUIT FOR A MILLION
For Services I'm Getting Concessions for
Railways I'm China

New York, Dec. 3.-The World to-
morrow will say: Thurlow Weed
Barnes has brought suit in the supreme
court against the American China De-
velopment company for 81. 200. 900 for
services In obtaining railroad conces-
sions from the imperial Chinese gov
through the Chinese minister
at Washington. The concessions are
worth in net profit at least s12. 900, 900
to the company. and they may be
h American China Development COM
pany is Calvin s. Brice. His asso-
ciates are James II. Benedict. banker;
Anthony N. Brady. the Carnegie Steel
a. Iron company. Andrew Carnegie: j.
s. Harvie Of the Arbuckle sugar and
coffee corporation: Frederick p. Olcott,
president of the Central Trust COM
pany: William f. Reed of Vermilye &
Co.; George Samuel Thomas, railroad
owner; Henry r. Wolcott of Colorado:
Richard Cross of Morton. Bliss G. Co.;
Levi p. Morton. Thomas c. Plat,
Henry w. Cannon OF the Chase Ma
tional bank: Thomas r. Ruan, street
railway owner; James r. Stiliman of
the Standard Oil company, represent
ing the Rockefellers; Moore & Schley,
bankers: John r. Hegeman of the Met
ropolitan Life Insurance company:
Clarence Carey. as trustee Of H.. Mex.
Twombley n various Vanderbilt in
ttitctS' IidItiSy q oIdudfn, TN IndIi-
~ufacturers; James p. McDonal, rail-
road contractor; James Mcknight,
counsel for the Northern Pacific;
George r. Sheldon, banker; Charles II.
Coster. F. f. Randall, president Of the
Southern Trust company. and many
others Of like prominence in the finan-
cial world.
All of these are defendants in the
suits, as they are co-partners in the
syndicate which controls the onces-
sions. Barnes alleges that after Brice's
envoys. including ex-senator William
d. Washburne of Minnesota. had failed
to obtain the concessions sought, Brice
sent for Barnes and asked him to I'M
dertake the work. Barnes has spent
many years in the orient and had made
several friends among the natives In
high power. Barnes agreed to do the
work. IL is said, on the verbal under
standing that he would be duly COM
pensated for any valuable result he
might accomplish. He and Clarence
Carey were appointed as a committee
to Obtain 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.
Mr.. Barnes first arranged, through his
friends in Pekin by cable, to have the
Chinese cabinet confer upon WI Ting
Fang the special power to make any
railroad concessions he might agree to
with the American syndicate. He was
successful in this and negotiations with
WI TIM Fang direct were begun. In
April an agreement was reached. 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-Sec-
rotary of State job w. Foster acting
In nm n1NTfanru nnnnaitu 20 fhA Chinese
minister. This agreement was reached
April Is and signed the next day. Sub
sequently il was ratified by an imperial
edict by the chinese government. The
concessions obtained by the company
provide for the building of a trunk line
railroad from Hankow south to Canton,
a distance of about 1000 miles. 1t Will
run through the richest and most fer
tile regions of China.
The road, II is estimated, will cost
$40, 900, 900. Bonds for 10 per cent. more
than the total cost are to be guaran-
teed by the imperial Chinese govern
ment. The 10 per cent. additional, or
81. 200. 900, is clear profit to begin with.
The bonds are to be paid in gold. to
run so years and to bear 5 per cent. in
terest. The Chinese government also
agreed to pay the China company 5 per
cent. on the cost of the o for SUI
p~erintending the construction. In ad-
dition the Chinese government agreed
to pay 20 per cent. of the net profits of
the road in the form of ~debenture
bonds bearing s per cent interest n
running 43 years. After paying all ex-
penses of the road, including the re-
demption bonds. the road Is to become
the property Of the Chinese govern
ment. By the concession the American
company also obtained the right to
mine the rich coal fields which extend
along parts of the route of the road.
Mr.. Barnes saw Mr.. Brice several
times about his compensation, put
heard nothing definite until Oct 6.
when he received a letter from L. San
ford Beatty, secretary of the China
American Development company. This
communication told him that at a
meeting of the syndicate a resolution
had been passed providing that no
claim of Thurlow Weed Barnes for
compensation should be recognized.
Barnes at once consulted his lawyers
and the suit for 81 1000, 900 was the re-
suit.