New-York tribune., 1905-08-30
CHINA TO PAY FOR ROAD.
COMPANY GETS s6,750,000.
Government Cancels Rights of
CantOn-Hankofc O7cners.

oyster Bay. Aug. 2e.-It was announced here
By President Roosevelt this afternoon thar
China had cancelled the rights and concessions
,f the Canton-Hankow Railroad. operating be-
tween Canton and Hankow. in China, and that
as an indemnity the Chinese government would
pay TO the owners Of the road the American
Chins Development Company. ss75OOoo The
decision 10 abide by the determination Of the
government Of China TO cancel the franchise
Ezs reached at the conference yesterday be-
tween President Roosevelt and J Pierpont Nor
gan the arm OF which Mr. Morgan is the head
controlling the property.
The announcement Of the decision was issued
ir the form Of the following official statement:
After fun discussion with Mr.. Morgan it was
decided 70 accept the offer Of the Chinese gov
ernmeut 10 pay s6750.0o0 an indemnity for
the cancellation OF the contract for the building
OF the Hankow-Canton Railway The imperial
Chinese government having cancelled the con-
tract. and al the same time expressed a willing
ness 70 pay any damage, Il left only the question
Of the indemnity, and. satisfactory amount
having been offered, the stockholders have
agreed 10 accept the terms.
NJ Morgan has consulted with the admin
!stration and shown every desire 10 do what
American interests in the Orient demanded. and
only consented 10 the arrangement proposed by
the Chinese government in view Of the fact that
Il obvious that there was no other course which
he could take with due regard TO the interest Of
the stockholders ne represented He could not
finally decide until, through Judge lnGraham. he
had laid the fact before the President, and the
President had stated that, as far he could
see, no other course was open than to accept
the offer.
The information conveyed in the statement
was a surprise When Sir ChentUng Liang
Cheng. the Chinese Minister was here on
August s. the day after Mr.. Morgan's first visit
he said that his government had not cancelled
the corcession and had no intention Of taking
such action His government desired TO pur-
chase the railroad a fair figure he said. and
anxious 10 reach amica be agreement
with the American owners
The original concession for this road was
obtained in 1898 by a syndicate, Of which the
lste ex-senator Calvin 5 Brice was chairman
The concession. which includes coal mining
rights and Industrial franchises. was TO run for
forgive years at the end of which period the
property was 10 go 10 the Chinese government.
The total length Of the main line was 10 he
about seven hundred and fifty miles with about
two hundred miles Of branches, but only thirty
miles Of the road has so far been constructed
and Is IN operation. Among the stockholders OF
the American-China Development Company is
Leopold, King Of the Belgians. who according TO
cable dispatches z few weeks ago, when Mr..
Morgan was abroad. urged the latter not TO
sccept the offer Of the Chinese government
IoT the concessions About three weeks ago Mr.
Morgan visited the President al oyster Bav for
conference on the Canton -Ffankow question.
huf lnqulrers a his ONCE al the time were told
mat no news as 10 the course 10 be pursued re-
specIlng the desire Of the Chinese government TO
buy back the concession would be given out in
advance OF the meeting Of the America China
Development Conpanys stockholders on August
that company is held sby MI Morgan and his
close associates