Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-09-18
CHINA under SEA
CRAFT MAY GO
1OBRITISH

According to advices reaching Ho-
nofulu this week from New York, Brit
ish capital is backing the SO, 000. 900
order which the Republic of China Is
to place in the United States through
Charles M. Sehwab for the building
uf 100 submarines S
The mystery which has heretofore
cloaked the financing of this order
has been cleared. according to New
York dispatches, by the news that q
powerful banking syndicate Is being
formed for the purpose, headed by the
Hongkong and Shanghai Banking Cor
poration, the greatest British institu.
ton of its kind In the Orient.
Payment for the submarines will be
made 25 per cent cash and the re.
mainder in Chinese government notes.
The syndicate is being formed for
the underwriting Of the notes, and,
besides the British corporation, viii
number among its members several
American banking Institutions.
American institutions which are
named as members of the syndicate
are the Bankers Trust Company the
Hanover National Bank the Amerf.
can Exchange National Bank, the pFi.
vate banking firm of Winslow, Laaier
e. Co., and banking institution affil-
lated with the Guggenheim interests.
That final arrangements will show
two of these banks omitted from the
deal and another substituted is pos
sibIe. - !, r p. / ss,sE.z.s : So.
AlItlle American institutions named
have had close relations with the
Electric Boat Company, with which
Schwab Is to place the order.
Great Britain May Get EN-.
Entry of the Hongkong and Shang.
hal Banking Corporation into the
transaction is viewed with particular
significance because Of the reports
that China may have an understand
Ing with Great Britain whereby the
submarines will be turned over to the
latter government by the republic
should Great Britain, in the later
stages of the war, find 1t necessary
20 augment her fleet of submarines
Under such an Arrangement con.
struetion OF the Submarines In this
country would In no way mean viola
tion by this government Of neutrality
The belief Is expressed that If China.
does turn over any of the consigs-i
ment to Great Britain there will be,
further orders for submarines from.
the Chinese. government for Isubstfs
,tntes on each depletion, as the new
republic is understood to be deterna-.
ined to have q large fleet of submHs
rines at its command at all times as.
the best defense of its coasts from In.
gading forces ..
3 In connection with the present REL.
ports regarding the possibility of
Great Britain eventually obtaining all
or part Of the 100 submarines to be.
turned over to China by the Electric.
Boat Company, Wall Street also re-.
called as significant that the British.
ammunition firm of Yickers, Ltd, has.
become one of the controlling inter
ests in the Electric Boat Company.
working Agreement" gs.
Through its vice chairman, Sir Ar
thur Dawson, the firm of tVickers.
Ltd, established close working agree
ments in the early part of the war
with both the Electric Boat Company
and the Bethlehem Steel Corporation,
of which Charles NJ Schwab is pres
ident > ~ s.;
The contract for the 100 submarines
probably win be signed within a few
days by the Chinese commissioners
now at Groton, Conn. It will be made
with the present officials OF the EIec-i
trio Boat Company. e.
Another despatch states that
Charles NJ. Schwab has become identi-
fled with the Submarine Boat Corpor-
alton, successor to the Electric Boat
Company, and that he will turn the
contracts over to the former corpora
ton. The boats are to be constructed
under the Holland patents. Schwab
is said to have begun negotiations for
the contract five or six years ago,
while China was an empire. He Sc
cured s30,Q00,003 contract for war
vessels, arsenals and navy docks,
which the empires overthrow multi
Piod