The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-30
CHINA GETS CANTON-HANKOW


Imperial Governmens VIII Pay Concession.
aires. Represented BY Mr.. Morgan.
$3.50 go - Runner That japan
WIN Back Great Trunk Limo Denied.
President Roosevelt announced at Oyster
Bay yesterday that tho Oanton-Hankow
Railroad, owned by the American-China
Development Company. Is TO be sold to
China for -, 760, 900. AT the Same time .
meeting Of the stockholders Of the COM
pany was held In aersey City, at which
despite the opposition Of the Kingof Belgium
aud other Belgian stoos holders, !: ~e=
voted TO make the SALE PRESIDENT Roose-
volt issued this statement: t5 .o-
After full discussion with Mr. Morgan,
1t was decided to accept the offer Of tho
Chinese Government to pay t6,750,000 as
an indemnity for cancellation Of the con-
tract for the building Of the Hankow.
Canton Railway. s.. e. ~" t
.The Imperial Chinese Government hav-
ing cancelled the contract. and at the same
time expressed . willingness to pay any
damage, 1t left only the question OF the
indemnity, and satisfactory amount hav-
ing been offered, the stockholders have
agreed to accept same.
"Mr Morgan has consulted with the
Administration and shown every desire to
do what American interests in the Orient
demanded. and only consented to tho ar
rangement proposed by the Chinese Gov
eminent In view OF the fact that the attitude
Of the Chinese Government rendered II
obvious that there was no other course
which he could take with due regard to
the interest Of the stockholders he repre-
sented.
He could not finally decide until, through
Judge Ingraham, be had laid the facts
before the President and the President
had stS.ed that as far as he could see no
other course was open than to accept the
offer"
Tho agreement to sell the road comes
a. . climax Of long discussion carried on
over since the Chinese government about
q year ago declared its desire Of taking Owe
the concession. Officers Of he company
said yesterday that according TO the terms
Of the concession they were powerless to
continue the work in face Of China's oppo-
sition and that President Roosevelt de-
sirous a. he was Of having American in
terests build the road, had ecognized this.
All Of the American stockholders voted
in favor Of the sale at the meeting yester-
day, but King LAopold's representatives
opposed the SALE II was stated that the
company would suffer no financial loss.
Since the visits Of Baron Kaneko and j.
Pierpont Morgan to Oyster Bay within
the past week the rumor has been per-
sistently circulated that Japan was seeking
control Of the Canton-H ankow Railroad.
Baron Kaneko was asked last night at his
apartments at the Leonori, Madison avenue
and Sixty-third street. whether II was
true that his Government sought control
Of the railroad.
1T Is not" he answered. In a most EN-.
phatio manner. "Japan does not seek
nor want the Canton Hankow Railroad.
Through traty We now have Corean rail-
road, besides our own, and We do not need
the Hankow road. On the other nand, the
United States needs and must control the
Canton-Hankow Railroad II she would
gain commercial asoendency In China.
A representative from Mr.. Morgan's
office called on me and told him the same
thing. hope Mr.. Morgan will never give
up until he secures II and I am sure that
every sincere we'll wishes Of the United
States feels the seme. With the position
your country now holds in the Philippines,
tho possession Of tho Canton Hankow rail-
road would make . direct connection with
them and be an outlet for goods and q
means Of entry to the entire southern por-
ton Of China"
It il known that Belgium will be very
much disappointed at the passing Of tho
railroad to China. A Belgian syndicate
now holds concessions for $50 miles of
railway from Pelxin south to Hankow. the
northern. terminal Of the Canton Hankow.
Three hundred miles Of the Belgian road
Is already in operation. The relinqush-
ment Of the Canton Hankow into Chinese
hands breaks up a proposed system Of
over 900 miles Of railway into two parts.
Tho Canton Hankow road was first pro-
jected. by Senator Calvin 8. Brice Of Ohio
In 1895. William Barclay Parsons was the
engineer. ~. .-ts ...
In 1902, by imperial decree, the conoes-
sion was transferred to the American China
Development Company. This company
had the privilege Of issuing S4s. 500 900 in 5
per cent. fifty year gold bonds. guaranteed
by the Chinese Government.
At present only about thirty miles Of
track have been laid. This work was done
In 1902. ...