CO129-351 - Public Offices - 1908 — Page 263

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and public undertakings generally were under the control of a so-called "Settlers' Assemblies"; but in September the Railway Company issued new Regulations putting things on a firm and assured basis. In October branch offices of the Company were established at Mukden, Changchun, Liaoyang, and other important places to take over the functions of these Settlers' Assemblies. Thus the development of local settlements is directly fostered, and we hope presently to mark in this direction progress proportionate to our hopes.

As to other enterprises, on the 1st July the Yamato Hotel was opened at Dairen, to be followed presently by similar establishments at Port Arthur, Mukden, Changchun, and other places, where preparations are being actively hastened.

Hospitals have also been founded, and work in connection with harbours and bays taken in hand.

Then there are the Dairen wharves. These were taken over by the Company, an action which at the time caused some dissatisfaction, which has now, however, disappeared.

There still remain undertakings, some of which have been actually taken in hand; others are under investigation. Satisfactory progress is being made in all.

Turning to the actual working of the various enterprises during the period under consideration, it will be found that the total receipts from all sources amount to over 5,002,000 yen (502,000l. circ.). Of this sum, 4,093,000 yen odd (409,300l. circ.) come from the railway, and 647,000 yen (64,700l. circ.) from mines.

The main line contributes 3,974,000 yen (397,400l. circ.), making a daily average per mile of 41·72 yen (41s. 3d. circ.) On the Mukden-Antung line the receipts came to 119,000 yen (11,900l. circ.), an average of 34·7 yen (7s. circ.) per mile per day. The daily average on the whole line amounts to 31·59 yen (31s. 3d. circ.) per diem. Disbursements on the main line total 2,423,000 yen (242,300l. circ.), on the Antung-Mukden, 333,000 yen (33,300l. circ.), thus making a daily average per mile on the main line of 25·45 yen (25s. 11d. circ.), on the Antung-Mukden line of 9·71 yen (19s. circ.).

The amount of coal taken from the Fushun mines during the period under review comes to 94,000 tons. If to this be added what was taken over at the time of the transfer, we get a gross total of 113,000 tons. The daily output, which at the moment of taking over was from 350 to 400 tons a-day, has now risen to over 600 tons. Mines receipts amount to 647,000 yen (64,700l. circ.), and expenditure to 348,000 yen (34,800l. circ.). To these sums should be added the receipts on other enterprises, shown in Appendix I. If we add them to the sums already given, we reach a grand total of over 5,002,000 yen (500,200l. circ.) receipts, and 4,073,000 yen (407,300l. circ.) expenditure. As will be noticed, it is the main line and the mines that are the great contributors to the Company's revenue, and it is they that have to make good our deficits on the Antung-Mukden line and other unprofitable enterprises.

Debentures to the amount of 40,000,000 yen (4,000,000l. circ.), half of the 80,000,000 yen worth contemplated, were issued in London in July, after the financial conditions prevailing in Europe and America had been taken into consideration. The Crédit Mobilier of Japan, and the other institutions charged with the floating of these bonds, obtained the best terms possible.

Kwanchengisu Station.—By agreement Russia and Japan hold this station jointly, half of it having been handed over to Russia in return for 560,393 roubles paid by way of compensation. This money was handed over to the Yokohama Specie Bank Office in Shanghae, acting as the South Manchuria Railway Company's agents, by the Russo-Chinese Bank on the 23rd August last. As to the station itself, arrangements for linking up the two systems were made by agents appointed on each side. The result is a temporary Changchun station (called generally Hsi-Kwanchengtzu) where passengers and freight are shifted from one line to the other.

Currency. On the 1st of October last the Company changed its accounts from a silver to a gold basis, a proceeding which caused some comment where none was necessary. In acting thus the Company had no intention to run counter to any policy of the Government; it consulted simply its own convenience, taking into consideration the general state of the currency in Manchuria, and the fact that the number of gold yen in circulation had increased. Silver accounts were thus inconvenient. Silver money will, however, be taken by the Company in payment, though its rates are calculated in terms of gold.

Hsinmingtun.—The impression is that the connection of the Hsinmingtun-Mukden line with the Indo-Chinese railway system will mean the deflection of our profits. That is a mistaken view. Competition we must expect, but our accounts prove that the railway can take care of its own profits.

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Résumé of Report.

General Affairs.

The property invested in the Company by the Japanese Government as shares comprises the following items :-

1. The Dairen-Changchun line, the Nankwaulin-Port Arthur line, the Tafangshen-Liushutun line, the Tashichiao-Yinkow line, the Entai-Entai Colliery line, the Suchiatun-Fushun line, and the Mukden-Antung line.

2. The Fushun coal mines.

3. All machinery, materials, &c., in use on the aforesaid lines at the time of their handing over, with the machinery, materials, &c., in use on the Mukden-Hsinmingtun line.

4. All lands, buildings, and accessories of the railway inside or outside the leased territory, with all land, buildings, and accessories of the mines.

Mr. Z. Nakamura, having been appointed Chief Civil Administrator of the Kwantung Province on the 25th April, 1907, was on the same day relieved of his post as Vice-President of the South Manchuria Railway Company. On the 1st May, however, he was appointed Acting Vice-President.

Simultaneously with taking over the other line of the railway, the Company received the branch line running from Mukden to Hsinmingtun. This remained in their possession till the 1st June, when, in accordance with the Agreement concluded between the Japanese and Chinese Governments on the subject of this line and the Changchun-Kirin line, it was handed back to the Chinese Government.

On the 19th July, 1907, debenture bonds amounting to 4,000,000l. in value were floated in London, under the guarantee of the Japanese Government.

The conditions were as follows:——

1. Bonds of 100l. face value to be issued at 97%.

2. Bonds to be redeemed in twenty-five years' time (irredeemable for the first ten years).

3. Interest, payable on the 5th February and the 5th July each year, to be at the rate of 5 per cent.

4. Bonds to be of the face values of 20l., 100l., 200l..

The station at Kwangchengtzu, with the line south of it, and the mines, &c., thereto attached, were handed over to the representative of the South Manchuria Railway on the 18th July, 1907, and the indemnity payable by Russia in connection with this station to Japan, in accordance with the Agreement signed at St. Petersburgh in June 1907, amounting to 560,393 roubles, was paid into the Shanghae branch of the Yokohama Specie Bank, acting as the Railway Company's agent, on the 23rd August, 1907, by the Russo-Chinese Bank.

The number of shareholders at the end of the period under review was 7,355, as compared with 9,056 at the end of the preceding period. This shows a decrease of 1,701.

Railways.

(a.) Laying of Track.

Main Line. The first work begun was in June, when the Dairen station yard, the eastern wharf, and the filling up of the pond near the wharf, were taken in hand. Subsequently work was commenced on the line itself, the doubling of the track between Dairen and Suchiatun being undertaken as well as the broadening of the gauge.

Doubling of the Track. The 238 m. 65 ch. under consideration were for this purpose divided into fifteen sections. Work is now in progress on eleven (178 m. 34 ch.). The Dairen-Nankwanlin section (11 m. 44 ch.) was completed in August. The Nankwanlin-Tashichiao section (148 miles) and the Nankwanlin-Port Arthur portion (29 m. 48 ch.) are almost completed, while the Ma-i-tun to Chugtaitzu part and the Suchiatun-Mukden section are actually finished. Altogether about three-fifths of the

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