The record-union., 1898-12-04
Suit Against the American China
Development Company.
ThurIoW Weed Barnes Asks for a Million
Dollars for Services.
Claims to Have Obtained Valuable
Railway Concessions From the
Imperial Chinese Government,
Through Minister Wi Ting Fang
for the Eastern Syndicate.

| tomorrow will say:
Thurlow Weed Barnes has brought
suit in the Supreme Court against the
American China Development Com
pany for $1,000,G00 for services in OBJ
tanning railroad concessions from the
imperial Chinese Government, through
the Chinese Minister at Washington.
The concessions are worth in net profit
at least $12,OO0,O00 to the company,
and they may be worth 24.OOO,OO0.
| They are the most valuable grants
ever made by the Chinese Government
| to foreign capitalists, and the terms
are more favorable than the conces-
sions 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 H
Benedict. banker; Anthony N Brady,
the Carnegie Steel and Iron Company
/ (Andrew Carnegie), j. H. Jarvis Of the
Arbuckle Sugar and Coffee Corpora
ton; Frederick P. Olcott, President of
the Central Trust Company: w. E.
Reed of Heremili & Co., General Sam
uel Thomas, railroad owner; Henry r.
Wolcott of Colorado, Richard Cross OF
Morton, Bliss & c.; Levi p. Morton,
Thomas C. Platt, Henry w. Cannon of
the Chase National Bank, Thomas F.
Ryan, street railway owner; James r.
Stillman of the Standard Oil Company,
representing the ROckefellers: Moore
& Shipley, bankers: J. r. Hegeman
of the Metropolitan Life Insurance
Company; Clarence Carey, as trustee
of H. Nick. Twombly and various Van
derbilt interests; Hartley & Graham,
arms manufacturers; J. P. Mcdonald,
railroad contractor; James McNaught,
counsel for the Northern Pacific;
George r. Sheldon, banker; Charles Fl.
Coster, c.. r. Randall, President of the
Southern Trust Company, and many
others of like prominence in the finan-
cial world. All of these are defend
ants in the suit, as they are partners
| in the syndicate which controls the
concessions.
| Barnes alleges that after Brice's en-
voys, including ex-senator William D.
Washburn of Minnesota, had failed to
obtain the concessions sought, Brice
sent for Barnes and asked him to un-
dertake the work. Barns has spent
many years in the Orient, and has
made several friends among the ma
tives in high power, and moreover was
a friend of Wi Ting Fang, the Chinese
Minister at Washington.
Mr. Barnes agreed to do the work,
it is said, on the verbal understand
ing that he would be duly compensated
for any valuable results he might ac-
complish He and Clarence Carey were
appointed committee to obtain the
possessions, MIR. Barnes being known
/ ~, 90
mission. Associated with them was
/ A. w. Bush. 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 confer
upon Wi Ting Fang the special power
to make any railroad concession ne
might agree to with the American
syndicate. He was successful in this,
and negotiations with Wi Ting Fang
We're begun. In April an agreement
| was reached. During these months
an immense amount of correspondence
passed between Mr.. Barnes and the
| Chinese Minister, and between Mr.
Barnes and Mr.. Brice and others mem
bers of the company, and also between
Mr.. Barnes and Mr.. Carey and Mr.
Bass. These letters and kilograms. it
is asserted, will prove that Mr.. Barnes
got the concessions.
The draft Of the agreement reached
by Barnes and the Chinese Minister
was drawn up by Barnes, and was ac-
cepted by both sides without change,
ex-Secretary of State John w Foster
acting in an advisory capacity to the
Chinese Minister This agreement was
r-;1
next day. subsequently it was ratified
by am imperial ediet by the Chinese
Government.
The concessions obtained by the COM
pany 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 fertile regions of China. The
population of that section Of China is
00,O00,O00 From Hankow north to
Pekin runs a proposed railroad, the
concession for which was obtained by
a Belgian syndicate. From Pekin
northwest runs short road owned by
China, which will connect with the
great trans Siberian railroad built by
Russia. Thus the road permitted by
the American concession will have
through connection with the Russian
trans Siberian road. The most valua-
BILE 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, 100000. Bonds for 10 per cent
more than the total cost are to be
guaranteed by the imperial Chinese
Government The 10 per cent. addd-
ton or S4OO0,O00 is clear profit, to be-
gin with. The bonds are to be paid in
gold, to run fifty years, and to bear
per cent interest. The Chinese Gov
ernment also agreed to pay the Amer
lean China Company 5 per cent. on the
total cost of the road for superintend-
ing the construction. In addition, the
Chinese Government agreed to pay 20
per cent. of the net profits of the road
in form of debenture bonds bearing 6 |
per cent interest, and running forty
three years. After paying all expenses
of the road, including the redemption
bonds, the road is to become the prop
erty of the Chinese Government. The
Chinese Government has the right to |
redeem the debenture bonds at par, |
and to give 4 per cent gold bonds at |
1011la in the first twenty-five years and
at part thereafter.
BY the concession the American COM
pany also obtained 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 conces- |