CANTON-HANKOW RAILWAY.
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C.O.
141
7141
the
23rd. January, 1904.
27 FEB 041
By the Contract of April, 1898, between Sheng, Director of Chinese Railways, and the American China Development Company, the 52 Stockholders of that Company were given the concession for the Canton-Hankow Railway, under certain conditions; these conditions (Art. 17 of the Supplemental Agreement) lay down that the rights of the agreement are inalienable to "other nations or people of other nationality": the original Stockholders being all American citizens - (half the original stock was offered to the Hongkong Shanghai Banking Corporation, but was refused because there was no prospect of the British Government's guarantee.)
The "rights" of the agreement amounted practically to control of the Railway under American finance and its construction under an American Engineer.
The Belgians came to the front in this matter when their Agent, Mr. Whittier, an American, (who, it is to be noted, is also a Russian Agent), secretly bought out in Washington 33 of the original Stockholders for the Belgians; at that time the prospects of the Railway did not look promising, and these American Stockholders were glad to get a good offer for their interests in the concern. The Belgians possessing a majority on the Administrating Board, did not however show their hand till some two months ago, during which interval the Survey and construction of the line under American control proceeded in a leisurely manner. The Belgian interest finally getting impatient, proceeded to agitate for the appointment of a Belgian constructing Engineer, for financial control from Belgium and for other measures calculated to secure to them the practical control of the line and even went so far as to advocate the handing over to them of the Northern Section (Hankow to a point in Hunan, undetermined),