Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-14

missing character. But everybody knows,
1t seems, that the real purpose Is to
cause the Russians eventually to give
up their hold Of the management and
possibly the half ownership of the Chi
neSe Eastern Railway, which Is q vitality
important link in the transportation Of
this northeastern section Of Asia.
The history Of the Chinese Eastern
Railway is too complicated to be given
here, even In outline. Sufice 1t to say
that owing to Bolshevik regulations
there are now no bonds and there are
no other stockholders than the two
governments, Russia and China. Hence
the profits are heavy-they are divided
evenly between the two. The president
of the company is a Chinese, the vice
president q Russian. The general
manager is o Russian and the auditor
a Chinese. There is a board Of 10
directors, five Russian and five Chinese,
with a proviSo that q quorum consists
Of seven members, and further pro-
vision that between meetings of the
board the general manager shall de-
eide policies and conduct all operations.
The five Russian directors refuse to
attend meetings, and so q quorum is
not to be had, leaving the management
of the company entirely In Russian
hands. This annoyS the Chinese, who
want to change the terms but cannot
effect any amendment. They do not
want to 60 to war about the matter,
for 1t Is not a caSuS bel1 for the Rus
slams to run the road according to the
conditions to which the Chinese SUBJ
Scr1bed. Hence the raids, with the
probably perfectly good reason that the
Russians at Hardin are conducting a
very active political propaganda among
the Chinese.
Chinese Not Considered Competent.
Now here is strange complication
In the case. The Japanese, who have
no reason to love the Russians, do not
want to see the Chinese Eastern Rail-
way pass out of their management.
Because they regard the Russians as by
far the better railway operators, they
do not want to see that line dis
integrate, as do practically all the rail-
ways in China under Chinese control
and management. The fact Is that
the Chinese are not competent railroad
executives. They do not keep up their
lines. They strip the property of earn
ings, taking out as profits all excess of
income over actual operating cost. and
so leaving little or nothing for replace
ments and repairs and Improvements.
The Japanese do not want to see
this important system break down. For
1t feeds their own and Is almost as
important to them as the South Man.
churia itself. They feel that this rich
region needs the best railroads that can
be provided, and therefore 1t would
be better for all concerned II China
were to be content with the profits
earned by the Chinese Eastern and let
the question Of nationality in manage
ment slide.
Yesterday we went out from Mukden
to Fushun, about 40 miles to the east,
to see most remarkable colliery.
This is an outcropping of a gigantic
seam of high-grade bituminous, setting
at an angle of 80 degrees to the surface
and at the point Of emergence so wide,
or thick, that 1t Is possible to conduct
open-pit mining on scale known no.
where else In the world, in addition to
shaft workings at various points in the
stretch Of 10 miles constituting the
holding Of the South Manchuria Rail-
way.
A Great Output.
Not to be statistical, but merely to
give an idea of the magnitude Of this
operation, may say that the output
of this mine last year was more than
100000 tons, and that this year it
is expected to produce 100000. This
vein. with an average thickness Of $50