The San Francisco call., 1905-08-08
j. Pierpont Morgan Goes to
Oyster Bay and Has Long
Talk With Mr.. Roosevelt
About HankOw Railroad
CHINESE GOVERNMENT
WANTS TO PURCHASE
American Stockholders In
clined to SELL but Those
in Europe Think Conces-
sion Should Be Retained

OYSTER BAY, L. l., Aug. III. Pier
pont Morgan of New York had a confer
ence to-day with President Roosevelt
lasting an hour and a half. The Presi-
dent himself Is authority for the state
ment that it related practically entirely
TO the case of the Hankow Railroad, in
China, controlling interest in which is
owned by ]. P. Morgan & Co. Incident
ally, and as relating in a measure to the
railroad interests held by Americans in
China, the pending peace negotiations
formed a topic of conversation by the
President and Mr.. Morgan
Morgan came to Oyster Bay unher-
aided. While his visit was by appoint
ment, nothing concerning it was permit
ted to leak through official sources until
after he had gone.
Shortly after noon Morgan's big steam
yacht Corsair anchored in the lower bay,
about three-quarters of a mile from the
Corinthian Yacht Club, on Center Island.
When observed from the shore she was
flying the absent flag, indicating ordin-
arlly that her owner was not aboard.
Nevertheless he was there, and in a few
minutes entered steam launch and was
taken ashore One of the Presidents car
riages was in waiting for him. He re-
manned for luncheon with the President
ward.
DID NOT MEET SHAW.
The suggestion was made that Nor
gan's visit and that of Secretary Shaw a
little earlier might be more than a COIN
c1dence, but it can be said authoritatively
that they had no relation with each 9TH
er. Secretary Shaw and Morgan did not
meet and the purposes of their visits
were entirely different.
\
fully the Hankow Railroad concession
This was not the first time the subject
had been considered by the President.
Several months ago the question was
taken up by the President and his Cabi-
net and considered thoroughly. An effort
is being made by the Chinese Govern
ment to purchase the concession from
the American-China Development Com
pany, which owns the concession. The
railroad is now in operation between
Hankow and Canton, distance of about
thirty miles only. but the company,
which is absolutely controlled by Ameri-
can capitalists, owns concessions and has
made surveys for several hundred miles
of railroad lines.
A proposition has been made by the
Chinese Government to the American
China Development Company to purchase
the Hankow Railroad and the extension
price offered is about $7,0O0000. Some of
the American holders of the stock are
inclined to accept the proposal, but the
European holders, who have a minority
of the stock, insist, as they claim, in the
interest of various foreign countries, that
the road and it's concessions be not sold,
but that they remain in control of the
Americans.
AN ENORMOUS ADVANTAGE.
In behalf of the latter it is argued that
a railroad in the heart of China operated
by responsible and aggressive American
business men in connection with the
enormous advantage, not only to the
American producers of all kinds, but to
those of the civilized world generally. 1t
is said that King Leopold of Belgium.
who owns some of the stock, takes this
view of the situation and is vigorously
opposed to yielding to the proposition of
the Chinese Government A meeting of
the board of directors of the American
China Development Company is to be
held in Jersey City on the 18th, and it is
expected that at that time a determina-
ton will be reached as to the acceptance
of China's offer.
No details of the conclusion reached at
the conference between the President and
Mr. Morgan are obtainable. No informa-
tion was nbtainahle either as to whether
they considered the peace negotiations in
relation to the f1otation of a Russian loan
in this country in case the ENJOYS should
reach an agreement which would render