Capital journal. (Salem, Or.) 1919-1980, 1922-08-22
RAILROADS NEED
OF CHINA SAYS
BIG F|NANC|ER

Peking, Aug. 22.-Declaring
that building of railways in China
will mean great Industrial devel-
opment, viii remove the dangers
OF thousands OF people dying from
famine every year and bring about
a uni6icatdon of the people in
China, Frederick W. Stevens, rep
resenhative of the American group
of bankers, discussed the Inter
national Consortium before sever
al hundred Chinese students.
"The Province of Szechuan is a
great empire in itself, with an
enormous population and excep-
tional productive capacity, yet by
reason of the Lack of railroad com
nection with eastern China it
might almost ais well be on am
other continent as far ais benefit
ing eastern China is concerned, .
said Stevens. When millions
We're starving in eastern China
wheat was selling in Szechaun for
ten CENTS a busheI, but for want
of railroads connecting the supA
ply with the demand they could
not meet this need. 1t lis either
physically impossible to bring
them together without railroads,
or time and expense make lit i'm
practicable. With railroads wheat
could be carried from Szechuan
to eastern China for one cent a
bushel.
Must Raise Funds
1t lis a question for the Chinese
to decide Stevens said where China
will get the hundreds of millions
of dollars needed for railroad build
ing ito connect Eastern and West
ern China and Northern and South
ern China and to create the net
work of railroads and highways
so necessary ito China's industrial
prosperity and to her political
unity.
Stevens said: II sympahhize
with the Chinese desire to handle
their own affairs as far as pos
sibIe; but my sympathy does not
carry ME along when it lis stated
in effect that the Chinese people,
who in one way and another have
only produced to date total of
less than 5000 miles of railway,
will be permitting am infringe
ment of their sovereignty if, when
borrowing money for railroad de-
velopement, they use the advise
and guidance of exper-
fenced foreigners for
who have produced I'm
their own country total of nearly
100000 miles of railroads.
"As to the extent and limits of
foreign supervision l offer some
general views:
Super vision should be "a high
ly capable and impartial service.
1t should not overlook its possible
effect on Chinese commercial and
Industrial possi biliIties, present
and future. 1t should allow no
cement of the open door
policy. There should not be the
possi bility of any one foreign ma
lions materials being accorded
and unwarranted preference di-
rectly or indirectly. Equal oppor-
tunities in China for the COM
merce and industry of all nations
should be borne i'm mind.
Should Employ Chinese
From the beginning Chinese
engineers should be given all pos
5ible participation in the work of
location and construction con-
sistent with the protection of the
househlder's interests, and there
should always be opportunity for
individuals to be promoted as in
dustry and talent are shown.
ITO sum up, therefore, having
in mind China's vast natural re-
sources, her need of industrial de-
the necessity of rail
road construction ON large
scale, the questions seem to be;
is foreign as we'll as Chinese
needed by this country for
building railroads? If dit is, upon
what terms and conditions can
t be borrowed by the govern
nent? 1t lit wise to postpone bor-
owing if merely because super
7ision in behalf of the bondholders
8 required as part Of those
.erms? Will not China herself be
benefited not only by what the
ioreign and Chinese money pro-
luces but also by the business
Methods introduced by reason
lble system of supervision