The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-09-19
STANDARD OIL
TO RULE CHINA
Loan of s5o,oooooo Thought to Hava
Come From Americas Great
Trust in Time of
Need.
WILL GET CONCESSIONS
Biggest OIL Field In the World VIII
be Turned over to Rockefeller
as Result Of
Deal.

UNITED Press Leased Wire Service.l
LONDON, Sept. ia. Wendell
jackson, the American who proposes
to loan s50,000,0O0 to China. and
actually is paying over the first Install
mena of the money, refused today to
say whether the Standard Oil Com
pany is among the hackers The
syndicate is international, but can
not reveal what American interests
are included In it, was all he would
say.
In financial circles here 1t was
the Rockefeller company controls the
group The London house of Birch,
Crisp & Company. which has refused
to make any statement concerning the
loan, has figured most prominently in
the transaction thus far but flnanciers
generally look on this as blind, TAX
ing 1t for granted that the Standard
does not want to disclose its hand at
present.
1t is certain that during the early
days Of the Chinese provisional gov
ernment, when DR. Sun Vat Sen was
president, and Nankin, the capital,
the Standards agent, Roy Anderson,
had the tightest grip on the admins
tration. 1t is also practically certain
| that the money with which the provi-
sional government financed itself dur
| ing the first few weeks of its exist
anoa napoo f,ou, Standard 0sI eoproo.
| In return for what the Standard did
| for the provisional government, 1t is
we'll known that promises were given
| for such oil concessions as the Stand
ard might want in Szechwan province,
which experts say will probably prove,
! when it's development commences, TO
| be the richest oil region in the world.
| With DR.. Suns retirement, the sue
cession of Yuan Shi Kai to the presi-
dency, and the transfer of the capital
/ from Nankin to Pekin the Standard
| was crowded out of its position of in
I fluence and power, and the six (orig-
inally the four) powers syndicate. of
which ]. Pierpont Morgan's jnterna-
tional banking corporation, was the
American member, became dominant.
! 1T is agreed among f1nanciers that
! this cannot but have been extremely
displeasing to the Standard The
| transition of China from an out-worn
4 to an up-to-date civilization promised
! incalculable profits to whatever inter-
est could secure control of the ma
| TONS affairs, and there was every in
/ dication that the six powers syndicate
planned to monopolize them
The syndicate had from the outset,
4 diplomatic support which gave 1t prac-
i tically official standing. It was obvi-
1 GUS that the new government would
4 have to borrow a large sum. The syn
! dictate was ready to advance 1t, but at
/ a rate which including the iugglery of
1 international exchange, approximated
4 ten or twelve percent In addition to
\ this. it specified that China must
/ borrow from no one but the syndicate
/ and that the syndicate must be grant
I ed supervision of the taxing machinery.
giving 1t virtual control of the govern
ment itself.
\ The Chinese refused these terms
and the syndicate accordingly simply
! waited, trusting to time to compel
their surrender. In the meantime 1t
undertook to see to it that the money
(CpDtiD1Iad IN rapa