Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-28
HANKOW- LINE
Americans Regain Control o
the Company.
M0RGAN'S PURCHASE
CHINESE APPREHENsIvE AS TO
EUROPEAN PROMOTERS.
Building Operations in 19O4-Raising
Animals for the
Market.
By WILLIAM E. CURTIS.

written for The Evening Star and the Chicago
ecordHerald.
Secretary Hay has received and commu
nicated to the government of China assur-
ances from Pierpont Morgan and his asso-
ciates that the projected railway between
Hankow and Canton will be completed as
soon as possible, and will remain under
American control. The concession for this
railroad, which passes from the metropolis
of the Yangtse valley through the most
densely settled portion of the empire to Can
ton, it's largest city and commercial CEN
ter, was awarded to the late Senator Brice
and his associates several years ago, under
terms more favorable than were ever grant
ed to any syndicate by the Chinese gov
eminent. They provided for meeting the
expense of construction by the issue of
$R, 100000 fifty-year per cent bonds, the
interest and principal being guaranteed by
the Chinese government. OF all the syn
dicates that have sought or secured railway
concessions in China this is the only one
that has been able to obtain such a guar
antee, and it was treated with such ex-
traordinary favor and generosity by the
imperial authorities at Picking and the vice
roys at Canton and Hankow because they
desired to show their appreciation of the
attitude of the government of the United
States during the recent complications and
encourage American capital and enterprise
to engage in the development of the re-
sources of the empire.
There Is well-founded apprehension
among the Chinese concerning the motives
of European promoters Experience has
taught some expensive lessons, but the gov
eminent and the people of the United
States are regarded as friendly and disin-
terested, hence American applicants for
concessions can obtain much more favora-
bly, terms than the European promoters.
Begun in Good Faith.
Mr.. Brice. William Barclay Parsons,
Cary & Whittrige and other New York
people who were interested in securing the
concessions were of course acting in good
faith. They surveyed the line and built
twenty-one miles of track, which is now
in operation from Canton northward, but
there they stopped, and nothing has been
done for nearly two years. Mr.. Brice is
dead, Mr.. Parsons is member of the PAN
anna canal commission, and their associates
lost their interest in the enterprise and
sold their stock to Belgian bankers. who
are believed to have represented King Leo
pold himself.
When this transfer became known there
was great excitement in China The gov
eminent Immediately protested fearing
that the Belgians would transfer their in
terests to the French, who are becoming
very aggressive on the southern border,
and are suspected of a design to annex two
of the southern provinces to Tonquin the
French colony in Asia 1t was contended
also that the concession was granted to
Mr.. Brice and his associates on the con-
d1tlon that 1t should not be transferred to
Europeans, and if the Americans did not
wish to build the road Chinese capitalists
at Hankow, Canton and elsewhere were
willing and anxious to do so. Marquis
Sheng, the director of railways, sent Mr..
Ferguson, his English secretary, to the
United States to confer with the conces-
siohaires and with the government at
a in rtn md hn toto
was instructed to advise the Secretary of
State that the concession was not trans
ferable, and that it would be Cancelled if it
passed out of the original hands.
Upon investigation Mr.. Ferguson ascer-
tanned that out Of the total of 5000 shares
5000 had been sold to Belgium and that
$500 remained in possession of the MEM
bers of the original syndicate. General
Charles A. Whittier, the president, had 400
shares in his name. William Barclay Par
sons 400 shares, J. Pierpont Morgan 600
shares and the rest was divided among a
number of prominent capitalists-Levi P.
Morton, Chauncey M Depew, August Bel
mont. John D. Rockefeller, George Gould,
J. Crosby Brown and other well-known men
being upon the list
Control Of the Company.
These gentlemen were formally notified
that the Chinese government would revoke
the concession, because its terms had been
violated by the transfer of the control of
the company to Europe, and the Secretary
OF State was formally notified of this inten-
ton, whereupon Mr.. Morgan entered into
communication with the Belgians interested
and persuaded them to sell him ! 200 shares
of their holdings, which gives the American
syndicate 1900 of the 6,000 shares. He has
also promised to reorganiZe the company
at once upon a sound basis and resume
construction soon as practicable.
There IS considerable agitation through
out the provinces between Hankow and
Canton. For the first time in history the
people of China are holding public meet
ings, passing resolutions and sending COM
mittees to the viceroys to inform them of
public sentiment and the popular desire
Delegations are visiting Hankow, Canton.
Shanghai, Wuchang and other cities to re-
mons3rate against the construction and con-
troll os me road by foreigners, and to pc
titionoI " the right to build it with local
capita fol A retain it under local control.
MemN any ave also been sent to Picking
on the SIS subject. The Chinese govern
IT hs and w Hng g ss
Mr.. Morgan5 new organization an oppor-
tunity to c'rI1plete the road, with proviso
that the control shall never be transferred
to any Europeans. If the Americans want
to get rid of the property they must pledge
themselves to turn it over to the Chinese
government.
Building in 1904.
The building boom OF Which l wrote sew.
eral weeks ago ST.. ,eps up throughout
the United States, san' according to Off
ciaI information thus far received, the
amount of money expended in architec-
tural construction for-industrial mercan-
tile, office, hotel and residential purposes
during the calendar year. just closed was
much greater than in 1903, and the number
of buildings erected was much larger.
There was no boom, but among all the
building trades 1904 was a record- breaker.
Operations in nearly every city were upon
normal healthy basis. AM in obedience
to natural demand. In some of the
western cities there were specL.stiye move
ments but they We're comparatively small
and, taking the country all togeSl 81 fewer
homes and business blocks werg erected
with borrowed money than was ,yer the
case before. This is particularly wae of
single dwellings. Never before IL any
year, or in any country, were so many
homes erected by the families who are to
live in them, and the greater portion of
them were paid for by money saved for