The record-union., 1898-09-17
Also to Open Up and Operate Mines
Which Are of Much Value.
The Signing of the Contract MARKS
One OF the Most Important
Epochs in the Industrial Folicy
of China, Tt Establishing Pre-
cedent of Allowing Foreigners,
for Commercial Purposes, to
Own Real Estate in the Interior
of China.

NEW YORK, Sept. 16.-A dispatch to
the Tribune from Washington says:
Consul James W. Ragsdale, at Tien
Tsin, China, reports the first conces-
sion ever granted by the Imperial chi
nese Government to foreign syhui-
cate by the terms of which foreigners
have the right to open and work mines
construct and operate railways entirely
free from Chinese control other than
the payment of a royalty and conform
ity with the general laws OF the EN-
pire as applicable to foreigners.
On May Dist there We're signed, IN
the presence of the Ministers of the
Tsung Ii Yamen, articles of agreement
which ceded to the Peking Syndicate
Qimited) of London. the sole right to
operate the coal and iron deposits OF
Central and Southern Shansi and the
petroleum deposits of the entire prov
ince. also the right to construct and
operate all necessary railways to main
trunk lines and navigable waters for
exporting the mining products.
The agreement was signed by orders
issued in an imperial edict, stamped
with the seal of the Tsung Ii Yamen,
as visible sign of imperial sanction
and authority, and the whole proceed
ings were verified and ratified by the
British and Italian Ministers to China.
The signing of this contract marks
the most important epoch in the indus
trial policy of China. The precedent
has been established of allowing for
eigners, for commercial purposes, 10
own real estate in the interior of China.
open and operate mines and construct
and maintain railways.
There have been many so-called rail-
way concessions granted in China, but
none of them is worth the paper it is
written on. OF the railway concessions.
only one-the Belgian syndicate for
/. the Peking- -Hankow Railway-has pass
ed beyond the preliminary state, and
in none is the syndicate more than the
financial agent of the Chinese. The
members of the railway syndicate have
no voice in the management ansi ncsle
too much security for their money. AS
a matter of fact, up to date neither
the Belgian syndicate nor any other
syndicate has furnished one cent of
money.
Following is a synopsis of the ar
ticles of agreement between the Peking
syndicate and the Chinese Govern
ment:
iron deposits in certain named districts
of Shansi and the sole right to all pc
troleum, the rights to exist for sixty
years if granted
Private lands are to be purchased,
and on Government lands the syndicate
is to pay double the present land tax
All matters of administration, explor-
alton, management of employees and
finances shall be controlled by the
Board of Directors of the 7eking syn
dicate. Each mine is to have foreign
managers and one Chinaman to are
range disputes with natives. All ac-
counts are 10 be kept by foreign meth
DDS. but audited annually by a native
of China. All salaries are to be paid
by the Peking syndicate and all re-
ceipts and payments shall be controlled
by foreigners.
All damage done to private property
In prospecting is to be paid for; ceme-
teries or mortuary shrines are not to
be disturbed.
The Chinese Government is to receive
a > per cent. production tax on the
actual cost of extracting coal. iron or
other materials. The syndicate is to
receive per cent. on the capital of the
company and 10 per cent shall be set
aside as a sinking fund with which to
repay the capital. OF the balance net
profit, the Chinese Government is to
receive - per cent. and the Peking
syndicate - per cent. All future coal
or iron mines w~-ked with foreign cap
ital shall pay the , per cent producers
tax.
The Chinese Government is not to be
held responsible for losses.
Il;
shall pay 11@ per cent, the regular mar
itime customs duties, but no ''lillin
taxes. Mining products exported from
a seaport shall pay regular export duty
AT the expiration of sixty years all
machinery plant, buildings, mines, rail-
ways. etc, revert to the Chinese Gov
ernment
The syndicate shall establish a school
of civil engineering and a mining
school for twenty Chinese students.
Chinese may buy shares in the COM
pany. The Imperial Chinese Govern
ment has reserved $4,000 worth of
shares, for which it pays in cash the
par value
When Chinese own 20 per cent of any
one mine they may redeem the re-
mainder from the syndicate and oper-
ate the mine. Private mines now in op-
Grafton may continue to work or sell
out to the syndicate. The syndicate
has the right to build all necessary
roads and bridges. open or deepen ca
nails or rivers and construct all rail-
ways to connect with mines and trunk
railways or navigable waters
In case China goes to war, the syndi-
cate will obey the orders OF the Chi
nese Government prohibiting aid to the
enemy.
The Peking syndicate is composed of
a few men who control immense capi-
al and who have obtained the most
Valuable concessions China could make.
The preliminary work has been in prog
ress for over two years. The conces-
sions will be worked by the Anglo-Ital-
ian syndicate. with capital of $4,000
OO0
The success of this enterprise is due,
=