The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1898-12-04
From the Chinese Imperial Government
to Build Railroads.
WERE THE MOST VALUABLE GRANTS
Ever Made to Foreign Capitalists by
the Celestial Empire-Defendants
of the Suit Richest Men
of the Country.

New York, December S.-The World will
say tomorrow:
''Thurlow Weed Barnes has brought SUIT
in the supreme court against the Ameri-
can-China Development company for 81 ,oOO-
900 for services in obtaining railroad con-
cessions from the imperial Chinese govern
| ment through the Chinese minister at
| Washington The concessions are worth
in net profits at least sl2.0OO000 to the coni-
pany and they may be worth $2400O,OO
They are the most valuable grants ever
made by the Chinese government to foreign
capitalists and the terms are more favora-
BILE than the concessions obtained in recent
years by French, Belgian, English and
| Russian syndicates.
"The chief spirit of the American-China
Development company is Calvin S. Briee.
His associates are James II. Benedict,
banker; the Carnegie Steel and Iron conf
pany (Andrew Carnegie), J. M. Jarvie, of
the Arbuckle Sugar and Coffee corporation;
Friedrich p. Olcott, president of the Gen.
trail Turst company; Henry R. Wolcott, of
Colorado; Levi p. Morton, ]. P. Stillman,
of the Standard Oil company, representing
the Rockefellers; F. e. Randall, president
of the Southern Trust company, and many
others of like prominence in the financial
world.
All of these are defendants in the suit
as they are co-partners in the syndicate
which controls the concessions.
Barnes alleges that after Brice's envoys
had failed to obtain the concessions sought
Brice sent for Barnes and asked him to un-
dertake the work. Barnes had spent many
years in the Orient and had made several
friends among the natives high in power
and moreover was friend of WI Ting
Fang, Chinese minister at Washington.
Verbal Understanding
Mr.. Barnes agreed to do the work, it is
said, on the verbal understanding that he
would be duly compensated for any valua-
BILE results he inight accomplish. He and
Clarence Cary were a special committee
to obtain the concessions, Mr. Barnes be-
ing known as the managing member of the
committee. They set to work, Mr.. Barnes
first arranging through his friends in Pek-
ing by cable to have the Chinese cabinet
confer upon Wu Ting Fang the special
power to make any railroad concessions
he might agree to with the American syn
dicate. He was successful in this, and
the negotiations with WI Ting Fang di-
rect were begun In April these were be-
gun. In three months an immense amount
of correspondence passed between Mr..
Barnes and the Chinese minister and be-
tween Barnes and Brice and other men,
bers of the company, and also between
Barnes and Mr.. Cary. These letters and
kilograms, it Is asserted, will prove that
Barnes got the concessions.
The draft of the agreement reached by
Barnes and the Chinese minister was drawn
up by Barnes, and was accepted by both
sides without a change, Ex-Secretary of
State John w. Foster acting In advi-
sorry capacity to the Chinese minister. This
agreement was reached April 13 and signed
the next day. Subsequently 1t was ratified
by an imperial edict by the Chinese gov
ernment. The concessions obtained by the
company provide for the building of trunk
line of railroad from Hankow south to
Canton, distance of about 1000 miles. 1t
will run through the most fertile and rich
est region of China. The population of
that section of China is 200 900. From Han
kow north to Peking runs proposed rail-
road, the concession for which was obtain
ed by a Belgian syndicate. From Peking
northwest runs a road which will connect
with the great trans-Siberian railroad built
by Russia.
Through Connection
Thus, the American concession will have
tuIOuBH cOHncCtoh WIN lhC iidhS-oipctidH
railroad The most valuable part of the
concession obtained by the Americans is
the financial terms These have never been
published.
The road, 1t is said, will cost $40, ,000, 900.
Bonds for 10 per cent. of the total cost
are to be guaranteed by the Chinese inn
perial government.
The American company also obtained the
right of building the road under American
management and free from the supervision
of Chinese officials. The company agreed
to establish and maintain at its own cost
school for the instruction of the Chinese
railway management, so that when the
road finally becomes the property of the
Chinese government 1t can operate 1t with
natives. The members of the Chinese
American Development company formed
what they called the Chinese railroad syn
dicate. The original subscribers to the "pro-
ject" fund each hold s., 900 shares. They
were admitted to the Chinese railroad syn
dicate by paying $4,000 on each share held,
the shares of the latter company costing
s. 5.0O0 Mr.. Barnes. 1t is said, had an UNDER
standing that his 1000 shares were to be
exchanged into the $1,000 shares of the syn
dicate without his paying anything addi-
tional.
In all about $4,000 was subscribed to the
syndicate.
Mr.. Barnes saw Mr.. Brice several times
about his compensation, but heard moth
ing definite until October 6, when he re-
ceived a letter from L. Sanford Beatty,
secretary Of the China--American Devel-
opment company. This communication told /
him that at meeting of the committee of
the syndicate resolution had been passed
providing that no claim of Thurlow Weed
Barnes for compensation should be recog-
nized. This resolution also provided that
as he had failed to pay the additional "A 900
on each Of his shares in the original COM
pany, they had been put up for sale.
Barnes at once consulted his lawyers and
the suit for 3. 900 waa the result. !,