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by annulling the whole Concession. In fact, it may be said that the Viceroy has got just as much right to grant the Concession to the Tien-tsin Bank as he would have to turn us out of the whole field altogether, including our present mines.
Other facts, as stated in the Petition, with regard to Chang having raised the point of non-possession of proper sealed deeds in the Law Courts in England; also with regard to the stopping of boring at Pan Pe Tien and Ma Chia Kou by Taotai Yang pervert the truth. The statement that when Kuo Lian Shan petitioned the Board of Commerce for a mining permit for Pai Tao-tzu, Ch'enchialing, and Ma Chia Kou, the fact that no objection was made by the foreigners at Kaiping is clear evidence that the transfer does not confer any special rights in regard to such places is of course ridiculous. No objection was made, because it was known at the time that the proposed permit was not seriously meant for anything more than a threat against the Mining Company, and I decided that the movement was not of sufficient importance to warrant my taking serious action, This proved subsequently to be the correct view, as after a short time the attempt to open a mine was abandoned, an argument rather against the Tien-tsin Bank's scheme than for it.
The remaining paragraphs of this Petition form an attempt to prove that we have got no mining rights other than at Tongshan and Linsi, and that the boundaries of the new mine have been settled without interfering with the Kaiping Company. The statements made absolutely omit any reference to the Company's transfer or the agreement of the Company, and are therefore worthless.
From the statements made by the Viceroy to Mr. Hopkins at their recent interview it would appear as if the former were endeavouring to use the circumstances of the financial formation of the Company as an argument why it should not be recognized by the Government. It is extraordinary the way in which a presumably enlightened official like the Viceroy finds himself unable to separate the purely commercial affairs of the Company from its political position vis-à-vis to the Government.
The financial arrangements concern the old Company and the new only, and have nothing whatsoever to do with the Government. If the old shareholders consider themselves aggrieved, it is open to them to point out any illegalities that have been committed if such were possible. They have not done so, and they have signified their acquiescence of the new state of things by accepting the transfer, in that for all practical purposes the whole of the shareholders of the old Company have converted their shares for shares in the new, and are, I believe, absolutely contented with the results that have been obtained, which have been far more satisfactory than any that were reached in the days of the old Company.
The Viceroy in this matter appears to accept the views spread about by the enemies of the Company, about whom I have already spoken to you, without in any way troubling himself to go into the details of the matter, and he uses such expressions as "swindling" in the most unjustifiable and reckless manner for one in such a high position.
Chang Yen Mao has had recourse to the Law Courts at home to remedy his grievances, and that course is still open to him, and no Government interference should, consider, be tolerated in this matter after the whole subject has been thrashed out thoroughly in the highest Courts of Law in England. It must always be remembered that the Court of Appeal laid down clearly and emphatically that no case had been made out which could in any way justify recission of the Company's rights, which is exactly what the Viceroy is seeking to do,
The Chinese Engineering and Mining Company (Limited), Tien-tsin, June 27, 1907.
Inclosure 3 in No. 1.
Memorial by the Tien-tsin Government Bank submitting Scheme and Regulations for opening Coal Mines in Luanchow, together with further Petition from the Bank and Rescript thereon.
(Translation.)
Memoriul.
IN the 12th moon of the 32nd year of Kuang Ilsü, we (the bank) were instructed by the Viceroy to prepare a scheme immediately for raising capital for the purpose of working coal mines in the Luanchow district, which had already been surveyed by the
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Bureau of Railway Administration. We have already sent in various reports to your Excellency setting out what officers we had selected and dispatched to purchase land, and explaining our scheme for opening mines.
Among the natural resources of a country mines take foremost rank, and in order to attain wealth and power it is primarily essential that the resources of a country be developed. There has recently been a great development of trade in North China, and in consequence of the better facilities for transit and communication provided by steamers and railways, the population has become more numerous and the consumption of coal has greatly increased. Moreover, coal is the very life blood of the Imperial navy and Government factories. It is thus absolutely impossible for the supply of coal from the two mines at Kaiping and Linhsi to keep pace with the demand.
In accordance with instructions, the district of Luanchow has now been surveyed and land has been purchased in localities where traces of coal were found. We propose to begin operations at Machiakon, and to provide capital both by raising a loan and by means of shares. But, as the public welfare is concerned, it is necessary to draw up a proper scheme and regulations in order to guard against all eventualities in the future. We, the Commissioner and the Taotai, have therefore consulted together and have carefully elaborated a scheme for forming a Company with Regulations for the subscription of share capital, which, together with a map showing the boundaries of the mine, we beg to submit for your Excellency's consideration. We also inclose herewith a copy of the Regulations and map, which we beg that you will forward to the Nung Kung Shang Pu to be approved and recorded.
We have also, in accordance with the Regulations, applied for and received a mining permit, and have paid the fees thereon. We therefore now submit this Memorial, setting out all the facts for your Excellency's consideration and instructions thereon.
We would further point out that, under the Government Regulations, no mine may exceed in area 30 square li, but the object of opening this mine is to supply coal needed for Government purposes in North China. It thus differs in principle from other mines, and some slight distinction should be made. That is to say, the limit of area allowed for the mine should be extended, it being provided that no other mine may take this in future as a precedent.
(The scheme and Regulations are appended hereto.)
A further Petition,
time
When the Kaiping Mining Company first sank a shaft at Tongshan, Taotai Tang Ting Shu received the assent of Viceroy Li to his petition that no other person should open any mine within 10 li of Tongshan, but that if the price of coal should at
any rise higher than 800 cash (“t'ung ch'ien") per bushel ("hu"), the people would then be allowed to mine coal. A shaft was subsequently sunk at Linhsi, but in this case there was no prohibition against opening other mines within 10 thereof. The British Company's transfer Agreement recites the names of the following places: Panpitien, Machiakou, Wushuichuang, and Chaokochuang. But as no permission has ever been given to open mines at these places, this merely means that the Kaiping Company had purchased several tracts of land at these places which they hold on the same tenure as ordinary people who cultivate the soil and pay land tux; it has nothing whatever to do with opening mines. Moreover, no scaled deeds have ever been issued for the land in question, nor has the change of ownership ever been recorded in the Land Register of the territorial officials of Luanchow. This was a point raised by Taotai Chang Yi before the English Court of Law, and considered by the Judge to be of very great importance. Thus year before last the foreigners at Kaiping began boring at Panpitien and Machiakou, but on being forbidden to do so by Taotai Yang Hsi Ching and the Luanchow Magistrate, they desisted. Moreover, last year, when Kuo Lien Shan petitioned the Board of Commerce for a permit for Paitaotzu, Ch'enchialing, and Machiakou, the foreigners at Kaiping made no objection. This is clear evidence that the mere recital of names of places in the Company's transfer Agreement does not confer any special rights in regard to such places.
The boundaries of the mine, as settled by us, are, on the west, a line drawn 10 li from Tongshan and on the east 6 li from Liuhsi.
No objection can be made to this because the 10- rule was not laid down in the case of Linhsi, and therefore under the Government Regulations they are only entitled to 30 square li of territory, which is
[2621 cc-5]
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