The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-08-18
HAS CHIPS IN THE GAME.
China Must Be Consulted Regarding
Eastern Railway.

portsmouth. N H. Aug. 1L-China has
at least cOnstructively become a party to
the negotiations. Article Z relating to the
transfer to China OF the branch of the
Chinese Eastern railroad. running south
from Hardin, which was agreed 20 by the
peace plenipotentiarics lin principle -
yesterday, involved perhaps in the final
settlement prolonged and complicated, ne
gotlauons between China and Japan and
the Peking government and Russia
Russia has agreed to surrender the road
70 Chlna ana give up her concessions OBJ
tanned in 1893. but China must assent. and
assent means she must agree to remuner-
ate me RUSSIAN government which guar
anteed the bonds for the building OF the
read in an amount hereafter TO be de-
Iermlned Japan also has her claim for
the rebuilding of the road destroyed by
the Russian army. the reconstruction of
bridges and change Of gauge The mat
ter Ter1ai1s 1,riI,17rily- 70 ne .6i,lfod nv
JaDan and China. and it is not unlikely
that the Toxic government is already liz
communication with the Picking govern
ment on the subject.
Chinese Consent Essential.
The long dispatches sent bv Baron Ko-
after yesterdays session. which were not
all off until O'Clock this morning makes
this probable. Possibly GE answer from
China is essential to final agreement upon
article 1. and this may be the true reason
principle had been reached China 5 wish
to he consulted concerning articles Of the
spected in this particular at least China
Eay not care To assume the financial
burUen involved in taking over the road
she certainly could not raise the money
without hypothccatinE the property. n
Japan is convinced that the road viii
eventually become "A PAYING commercial
venture, she might. herself. advance the
money or IL might be raised for China
by an International syndicate and become
4 part Of the system of Chinese imperial
railroads. II not. Japan may. and prob
ably would for the present. step into Rus
promised China to restore Manchuria ami
10 retain the railroad " Ould be to retain
strategical control of the province.
Small Returns.
The amount Russia viii realize is i'm
possible TO estimate. II will undoubtedly
the sum poured into it; BY the terms
Of the concession China had the privilege
of taking over the road at the end of
lhlrtN SIX years upon the payment OF cap
Sal. construction and deficit charges. ia
pan recognized that Russia was entitled
to some remuneration. But this basis is
not known. The Russian claim WAS
founded on the principle Of international
law that belligerent occupving terri; orv
can exercise the right Of usuf-uCt of
private property during occupation. but
cannot confiscate 3S a spoil of war. Mr..
Wftte. IN whose brain was born the con-
ception of the Chinese Eastern railroa I,
was particularly mDetent To- defend the
rights Of the company which Russia
claims IS distinctly "A private corporation.
although making no conceafmcnt Of the
fact that il was backed by the Russian
government because Of political cCnsidera-
lions. The original concession obtained
in 1893 for the Chinese Eastern. then sim
ply the cutoff through northern Man
churis. was obtained by the late Mr..
Roth3 tein. director of the Russo Chinese
bank and Prince Okutomsky and the
company was formed fer the construction
of the road. IN 1895 after the lease Of
Port Arthur and Taiienwan tDalay). was
obtained from Chira, the concessi'n for
the southern branch was negotiated tt
provided for Chinese president of tire
road and Shirc kucliu. who had been the
Chinese minister in St Petersburg. was
president until he fell a victim TO the
antl-fofeigu boxer uprising i'm 1850.
Operated at a Loss.
The bonds ISSUED with the government
guarantee were sold like government (
per cent rcnteS and are now in the hands
of the banks and general public like
regular government obligations. Al
though the loss on operation has been
heavy the Russo-Chinese bank always
believed il would become a remuneratise
concern. One Of the big extraordinary
items Of expense was the necessity o.
maintaining railroad guards The south
crn branch. which now goes to China.
gave especial promise of being very
r,-offfaI,1a