SHANGHAI
797
In
the Kiangsu-Chekiang railway under the control of the directorate of the Shanghai- Nanking railway. This line received no small damage at the hands of the rebels during the disturbances in 1913. General plans for the linking up of this railway with the Kiangsu line have already been formulated and negotiations for the purchase of the necessary land are proceeding apace. There are several locally-owned lines of steamers running on the coast and the river Yangtsze. Many manufactories under both native and foreign auspices have sprung up of late years, and would have done so in large numbers long ago had it not been that the native authorities offered strong opposition to any manu- factories under the control of foreigners and tried to strangle the importation of foreign machinery. Although the right under the Treaty to import machinery is quite clear, the British Government hesitated to enforce it; but the Japanese, in the Treaty of 1895 which closed the war, obtained the insertion of a clause specially authorising its importation. The consequence was that five cotton spinning and weaving companies were floated, the Ewo under the auspices of Messrs. Jardine, Matheson & Co., the International under those of the American Trading Company, the Laou Kung Mow under the management of Messrs. Ilbert & Co., the Soey Chee by Messrs. Arnhold, Karberg & Co., and Yah Loong by Messrs. Fearon, Daniel & Co., of from 40,000 to 60,000 spindles each. With the number of mills working and others in course of construction, the place is rapidly assuming the appearance of a thriving district in Lancashire. Three years ago there were nine Cotton Mills in operation, with about 167,000 spindles, and four Chinese-owned, with about 146,000 spindles. The mills at first did not prove so profitable as was expected owing to difficulties connected with the supply of the native raw material and the increased cost of labour. consequence of this Messrs. Fearon, Daniel & Co.'s Yah Loong Mill was closed and the machinery sold by public auction in December, 1901. Recently the mills have been showing more favourable results and satisfactory profits are now realized by all the foreign-owned ones. Indeed, Shanghai bids fair to become one of the principal centres of the cotton industry in the Far East. Approaching Shanghai from Woosung the exten- sive mills of the Shanghai Cotton Cloth Administration (a native-owned business) meet the eye; the old premises were destroyed by fire in 1893, and the present buildings were completed in 1895. These mills were the first erected in Shanghai, and the late viceroy, Li Hung-chang, had a considerable interest in them. Above these on the river side are the Laou Kung Mow, Ewo, and Soey Chee mills referred to above; while on the opposite shore of Pootung stands the large and busy mill of the International Cotton Manufacturing Co. The Hwa Sing Cotton Company is building a large mill with adjacent godowns and storerooms, and three mills for this company are removing from Hongkong to Shanghai. The exceptional prosperity of the cotton trade has led the Shanghai Cotton Company to double its plant, and all foreign controlled mills have made additions to their looms and spindles. Even the Japanese seem to give preference to Shanghai as against Osaka for manufactures intended for the Shanghai market, which, being in the midst of a cotton cultivating district, has a larger scope for its wares.
There are also a number of ginning factories, foreign and native owned. Much of this cleaned cotton is exported to Japan. Of Silk Filatures Shanghai has 25, with a total of 8,00 basins, of which five are foreign-managed. One only of these Filatures is the property of a private firm, the others being owned by foreign or Chinese Companies. These Filatures, which give employment to 20,000 natives, are scattered over the Hongkew and the Sinza districts, with the exception of a large one of 300 basins at Jessfield-the Hing Chong Filature. Of other industries we may note Hydraulic Packing Factories, foreign and native-owned Paper Mills, two Chinese-owned Match Factories, turning out between them some 80 cases, containing each 100 gross of boxes, per day. There are also large foreign Flour Mills (for grinding native wheat, which, it is said, makes excellent flour), two Kerosene Tank Oil and Tinning establish- ments and works, and various other industries which are fast increasing in number.
No notice of the important place taken by Shanghai in the industrial progress of the East would be complete without a reference to the large engineering and shipbuilding establishments which now form a conspicuous feature in the business of the place. Already in the early 'fifties, Mr. William Muirhead, an engineer officer in the service of the P. & O. S. N. Co., had conceived the idea of starting a repairing shop. With the exception of the P. & O., which then ran a fortnightly mail service from Hongkong, there was no regular line of steamers trading with the port, and the visits of coasting steamers were few and far between. Still, as the northern terminal port in China, occasional jobs came in. After the opening of Tientsin and the northern ports, and more especially after the opening of Japan, the business commenced to increase, and room was found for another small