New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-03
BIG RAILROAD
DEAL CLOSED
WITH CHINA
American International
Corporation Will Locate
and Build LOO Miles.

American capital is to finance the
construction Of LOO miles Of railroads
in China. The following announcement
was made yesterday by the American
International Corporation, which was
organized early in the year by National
City Bank interests to promote the for
eign trade Of this country:
The American International Corporation
and the Sems-Carey Railway and Canal
Company. when is owned Jointly b. the
American international Corporation and
siessrs. Stems and Carey. on September ~
signed with the Chinese government con-
tract for the building Of Chinese govern
pnent railways, the construction Of which
would be financed b. Chinese government
bonds 10 be issued through the American
International Corporation.
Picking dispatches announce that this
work may require an expenditure OF
500. 900 900. The funds to be raised
for this work will take the form OF
Chinese government bonds, TO be mar
keted by the American International
Corporation.
Washington aGvices stated that no Of
fetal information had reached the State
Department or interested diplomats
concerning The arrangement. Officials
Of the department say, however, that
the loan and contract probably would
not conflict in any way with the new
Japanese Chinese treaty, and there APP
parently is no disposition in diplomatic
quarters to believe that Japan or Great
Britain would undertake TO interfere.
Stems & Carey are railway contrac-
tors Of st. Paul. Last May they
signed a preliminary agreement with
the Chinese government for the con-
struction OF railroads in China. About
the same time preliminary contracts
for dredging the Grand Canal were
concluded and the American Intcrna-
tional Corporation. together with
Stems & Carey, organized the Stems
Carey Railway and Canal Company. to
undertake the construction of rail-
roads and the dredging OF the canal.
Final agreements for the canal work
are now under negotiation.
The Official Narrative.
Willard Straight, e-presdcnt Of
the American international Corpora
ton, made the following statement
yesterday:
The railroad lines to be constructed have
not set been decided upon. but will be
located b. an American chief engineer. to
he appointed b. the Chinese government on
recommendation Of the American Interna-
tional Corporation. The contract provide,
for the construction of 100 miles of road
between points TO be agreed upon after in
vcstigation. When the line TO be first con-
siructcd has been agreed upon the road will
be bull; b. the contractors OIL a percentage
basis.
The American chief engineer. who will
be appointed shortly. in addition TO sur
vcyng and locating the lines. will on be-
half Of the Chinese government supcrin-
tend the construction. which will be under
taken by the Sicms-Cnrey Railway and
Canal Company. This engineer will act later
n chief engineer Of the railroad. The Chi.
ne-e government agreed further 10 appoint
an American auditor. who shall act during
construction and operation. "a well ms an
American traffic manager.
The contrac, mentions certain points be-
tween which the Chinese government de-
sircs lines 10 be constructed. IL Is pro-
,idcJ. however. that n the construction Of
these lines T.. after investigation. deemed
Ia be- inadvisable the government and the
corporation GALL agree upon other line, 10
he constructs 20 make up the total mile
age agreed upon:
The American International Corporation