The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-10-08

ficials, and We are satisfied that every fea-
ture of our agreement with the govern
ment win be carried out.
so great is China's desire 10 promote
trade that understand the government Is
going to abolish the hkin, of tax collected
on goods passing from one province TO an
other. and arrange some other method or
raising revenue. Whatamethod? I'm sure
1 don't know.
7 am not prepared to finance the Chi
ness empire vet. But the tax on trade be
tween the provinces will have TO go Al
ready it is disregarded in certain parts
of the country, and the lilSin houses stand
IDLE on the border.
1T is probable that China will study the
system of Russia and form her tax sys-
TEN on that The situation is much the
same in the two countries, and Russia
raises revenue without placing any restric-
toln on trade.
l asked Mr.. Brice II there were any dan
ger of compel ition.
1.-The enormous cost of the road puts
that out of the question, think he said.
1--WE shall reach all of the important
points between Han Kow and Hong Kong.
I'VE are planning branch roads. II
our main line does not run through a large
city, we will build branch to it. We shall
probably cover the territory completely
If there Is enough business to warrant
competition, though, perhaps I'll build the
competitive road'-and Mr.. Brice's eyes
twinkled almost imperceptibly.
''The chief engineer of the new company
will be an American. 1t is probable that
most of the capital for the road Will be
furnished by Americans, and that AmerI-
can locomotives will haul American cars
over American rails through the heart of
China in the near future.
The road will be operated by the Amer
lean syndicate in conjunction with the i'm
five years. It's future is then uncertain.
"It may pass wholly into the hands of
the Chinese government or 1t may become
the property of foreign company. What
ever the ownership or control, 1t will serve
to open up a trade in American food pro-
ducts and manufactured goods among 2OO.-
900, 900 people,"
The terms of the American loan have
not been made public. 1t is somewhat
similar to the Belgian loan for the COM
pletion of the railroad between Pekin and
Han Kow Cor Han Kau, as ii Is called in
the concession).
This road was considered by an Amer
lean syndicate, but owing to the financial
disturbance caused by the war the con-
tract with the Chinese government was
not closed and the Belgian syndicate then
took the matter up. The Belgian loan is
S21, IL, 800 at 8 per cent
China cannot retire the bond until 1907,
but they may be called in after that time.
The net income of the railway is pledged
to the redemption of the loan, and the
railway line is mortgaged to the bond
holders.
All the bonds and coupons and the move
ment of funds are exempt from taxation.
The Belgian syndicate Is to take 81, so, 900
of the loan at once at a discount of 10 per
cent, and the remainder previous to the
year 1902.
Excentfpey the material furnished l,,y tbo
Hanyang Iron Works, all material for con-
struction is to be supplied by the syndi-
cate, which engages to render Itself
worthy of confidence by respecting the
clauses of the present contract and in
furnishing material of good quality at the
lowest prices"
This material is to be exempt from all
tax or lil1in. The contract Is nullified by
war or the dlminution in value of the
French debt below par. If the syndicate
cannot carry out its obligations the con-
tract becomes void, the Belgian engineer
in-chlef may be dismissed and negotia-
lions may be undertaken with other ma
tionalites. Any disputes are to be set
tied by the Tsung-lL- Yamen or the Belgian
minister, or an arbitrator chosen by them.
The whole matter is placed under the
general direction OF Sheng-ta-yen, the di-
rector general of railways, who also has
charge of the arrangements with the
American syndicate. The American con-
tract differs from the Belgian in that the
American company is to receive a COM
mission on all supplies furnished. The
bonds issued to the Americans are redeem
able IN fifty years at par, or within that
time they can be taken up in instruments
at a premium. The road is to be completed
within three years from the time the sur
veys are approved by the Chinese govern
ment.