Evening star., 1909-06-20

1nlegrlt! dSSuISu II iS a
question of finance and construction OF
railroads.
The sudden and simultaneous demise OF
the Empress Dowager Tsi-An and the
Emperor kwang-Hsu in November. lSos'
whose funeral rites have only now been
concluded with great pomp and ceremony.
did not -create revolution as expected. and
Prince Pu-fi succeeded to the throne
without shock under the regency OF
Prince Chun his father.
The succession worked III TO the hither-
to much favored Yuan-Shi-kai who. rele-
gated to his home in Honan,' was. accord
ing to recent dispatches. the recipient or
a yellow silk cord, the significance OF
which is manifest TO any Chinese official
under the ban Of the palace.
Tong Shao-Yi. who was only Few
months ago special commissioner to
Yuan Shi-kai, and he, too. 1t is to be
feared. may receive the siken message
AS an intimate friend and former COL
league OF both, the writer hopes they may
escape.
The present al-absorbing interest in
China Is the construction of the railways
with which awakened China will gridiron
the country, and i'm the participation or
the occident in the loan or loans nefes-
sary to build them. We have persistent
ly advanced the idea that the United
States and China are more than ordinary
friends. The remission OF the Boxer IN
demnity of ten millions or more and the
recent arbitration treaty are the compile
ments of dsnterested friendship begun
with the Buringame treaty and inspired
Chengtu or Yueh-Han railroad.
China, we are informed by late cables.
has effected an agreement with German.
British and French banks
Hankow for the loan of So, 500. 900
for the construction OF
AoaH. the Hankow Canton
Chengtu or Yueh-Han railroad.
The American charge daffaires has
lodged a protest at Pekng with the OBJ
ject of reminding that government OF
American rights, which we doubt not Will
be accorded-f not too late
The story of the concession merits re-
cital because of the extraordinary IN
terest involved The Eastern Review fur
nishes long statement under the Rail
way Situation in China, from which we
subtract the following analysis:
The concession OF the Hankow-Canton
or Yueh-Han railway. which is to con-
meet Canton and Hankow. was granted
an American syndicate in 1898. The
American syndicate. presided over by Mr..
Calvin Brice, under the name of the
"American-China Development Com
pany," undertook to furnish funds to the
amount Of $3O.00O.OO0 to be secured by
the issue of imperial gold bonds at 30
and drawing interest at per cent. sub
ject to redemption at the option of the
Chinese Railway Company, the title OF the
company formed for the purpose of con-
cluding the agreement which Mr.. WI
Ting-fang signed as director general on
behalf OF Sheng-kung-Pao. The develop
ment company was to receive 5 per cent
Of the cost of construction for supervi-
sion and share in 20 per cent Of the net
profits. Three years were given for the
completion Of the work The Spanish
American war interviewed and nothing
was done until the following autumn. Mr..
Clarence Cory a distinguished Virginia
member of the New York bar, was sent
to Peking to negotiate supplementary
agreement by which the loan was in
creased to S4OOOO,OOO. The development
company not only secured this. but also
an extension of time to five years. which
was ratified by the Chinese government
in 1900 A clause was inserted prohibit
ing the American company from trans
ferring its rights in the agreement to
any other nationality.
~
It is true that the American company,
notwithstanding the clause. proposed to
the British and Chinese
Proposed corporations to merge
their interests in ex-
nel6eA' change of a one-half in
terest in the HankowCanton for one-half
interest in the Canton kowloor., Be this
as 1t may, the war in South Africa inter-
vened to prevent British capitalists from
participating.
The death of Mr. Brice had the effect
of discouraging the American company,
already disquieted over the Boxer re-
bellion. Mr.. Brice was succeeded by Mr..
j. Pierpont Morgan in January. 1905.
The Chinese government resented the
control OF the company by the Belgians,
but the American government finally
gave assurance that the Americans would
resume the chief direction. The Russo
Japanese war broke out at this time, and
the Belgians, foreseeing the too mani
fest defeat of Russia, lost their interest
in the enterprise.
On the other hand China manifested
desire to recover the concession. Ac-
cordingly the Chinese government paid
of S. 10000 in gold. which included the
So, 100000 which was the estimated cost
of two surveys, the construction of
thirty-two miles of track and fifty miles
of grading at the Canton end of the
line
Following the American company Chi
nese company was formed and the capital
Of $4O,OOOOOO was subscribed for by the
SHiHeSc, VI Which, at icdSl ~ pei CtHl WIS
paid up. but owing to internal dissensions
and lack of cohesion of the different ele-
ments much delay had been occasioned.
The Far Eastern Review. which. it
should be borne in mind. is an organ Of
British interests, remarks:
1T is conceded that the apathy and
generally unsatisfactory manner in which
the American company conducted its op-
erations in China and the manner in
which 1t withdrew from it's agreement has
had much to do with the attitude of the
Chinese government in the matter of
granting concessions to foreigners. and
nothing has done more to injure American
prestige In China than the manner in
death of Mr.. Brice. who, had he lived,
would have taken the greatest degree of
personal pride in carrying out the agree
ment to successful conclusion, with the
result that monument to American en-
terprise would have been established in
China and American prestige enhanced"
The Railway. Enterprise in China con-
tains an article by Mr.. Kent on the Han
kow-Canton or Yueh-Han
Chinese Railway" in which the
author takes the Chinese
onntness' to task because of their
unfitness either to finance or construct
their own railways. Capital" says Mr..
Kent has been subscribed shareholders
meetings have been held and riots have
EYTPiVAcANcF