This Document is the Property of His Britannic Majesty's Government.
33035
2
I asked the President if it was true that the Company had decided to build a branch line to Sanui, and, if so, if this was not contrary to the Interprovincial Construction Rules promulgated by the Government.
Sir Chentung replied that a Resolution in favour of constructing the line referred to had been passed unanimously at the recent meeting of shareholders, that the Board of Communications had been petitioned on the subject, and that he personally thought permission would be given in view of the fact that the Company were making good progress with the main line, and that the construction of this small branch would not interfere with or retard in any way the completion of the main undertaking.
The proposed route of the new line is from Fatshan viâ Shekwan, Chanchun, Tailiung, and Kongmun to Sanui, roughly about 50 miles due south of Fatshan and a few miles west of Macao.
The line presents no serious difficulties of construction, and will run through an exceptionally rich and prosperous country.
Asked if such a line would not clash with the proposed Macao-Canton Railway, for which I understood the Portuguese held a Concession, the President said it undoubtedly would, but, as far as he knew, the Portuguese Concession had never been granted, and, he added, was never likely to be. The line would virtually be an extension of the Canton-Samshui Railway, over which the Company hoped eventually to obtain sole control by buying out the interests of Hunan and Hupeh.
Sir Chentung informed me that he was not at all satisfied with the way the Company's accounts were being kept, and said he was seriously thinking of engaging a foreign auditor, who would exercise a general supervision over the Railway's expenditure and income.
I suggested that a chartered accountant, similar to the one employed by the Canton-Kowloon Railway Administration, would probably meet his requirements, and at the President's request I promised to make inquiries for a suitable man.
Sir Chentung informed me that his period of mourning would expire in February next, when, at the express request of Her Majesty the Empress Dowager, he would resign his position in the Railway Company and re-enter official life.
I have, &c. (Signed)
H. H. FOX.
CHINA RAILWAYS.
CONFIDENTIAL.
REC
[August 24. 9 SEP 08
SECTION 2.
(29333]
No. 1.
Sir J. Jordan to Sir Edward Grey-(Received August 24.)
(No. 303.) Sir,
Peking, July 7, 1908. WITH reference to my despatch No. 281 of the 23rd ultimo, I have the honour to transmit to you herewith copy of a despatch from the Acting Consul-General at Canton, reporting a conversation with the President of the Canton-Hankow Railway, and containing much information respecting that undertaking.
I have, &c. (Signed) J. N. JORDAN.
Inclosure in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
(No. 24.) Sir,
Canton, June 19, 1908. IN the course of a recent interview with Sir Chentung Liang Cheng, K.C.M.G., President of the Canton-Hankow Railway, that gentleman was good enough to furnish me with the following information regarding the Company's affairs
At a general meeting of shareholders held in Canton on the 13th June, it was definitely decided to make a call of 1 dol. 50 c. on every 5-dollar share, that is to say, 1 dollar, or 20 per cent., having already been paid up, a further 30 per cent., making in all 50 per cent. of the value of the share, is now to be collected. The first call brought in nominally 8,000,000 dollars; the present one, which is to be made on the 1st of the 7th moon (the 28th July), is expected to realize 12,000,000 dollars.
The collection of this money has again been placed in the hands of the nine "Shan Tang," or benevolent institutions, of Canton; and Sir Chentung said he was hopeful that they would be able to realize at least 75 per cent. of the total amount due. It was further decided at the meeting above mentioned to pay 6 per cent. interest for two years on the paid-up value of the shares, and to allow shareholders to deduct the interest from the amount payable on the second call.
According to present calculations the Company will, when this call is paid, have sufficient funds to complete the Kuangtung section of the line.
The Company, said Sir Chentung, have refused to agree to the Chinese Government's proposal that their capital should be deposited in the newly-formed Ta Ch'ing Bank, as it is already distributed among a number of Chinese and foreign banks of established reputation.
Trains are now running as far as Kuan Tien, 26 miles from Canton, and the road has been laid for a distance of nearly 80 miles. If nothing unforeseen occurs, the President said he hoped the line would be open to traffic as far as Pak Shek Yao, about 10 miles above Ying Tat, by the end of this year.
Some difficulty is being experienced in acquiring the necessary land, but the local officials and gentry are rendering valuable assistance, and the President does not anticipate any serious hindrance under this head.
Tunnelling work is at present delayed owing to lack of explosives, the new and cumbersome Regulations necessitating a separate application to the Board of War in the case of every consignment.
Rails, said the President, are being purchased in Japan, Germany, England, and Belgium. Two consignments, one of 3,000 tons, the other of 4,000 tons, are now being imported through the Mitsui Bussan Kaisha and Arnhold Karberg and Co. respectively. He mentioned that the Han Yang Ironworks were unable to execute any orders for another six months, otherwise all the rails required would have been purchased there.
Page 491
[This Document is the Property of His Britannic Majesty's Government.
33035
2
I asked the President if it was true that the Company had decided to build a branch line to Sanui, and, if so, if this was not contrary to the Interprovincial Construction Rules promulgated by the Government.
Sir Chentung replied that a Resolution in favour of constructing the line referred to had been passed unanimously at the recent meeting of shareholders, that the Board of Communications had been petitioned on the subject, and that he personally thought permission would be given in view of the fact that the Company were making good progress with the main line, and that the construction of this small branch would not interfere with or retard in any way the completion of the main undertaking.
The proposed route of the new line is from Fatshan viâ Shekwan, Chanchun, Tailiung, and Kongmun to Sanui, roughly about 50 miles due south of Fatshan and a few miles west of Macao.
The line presents no serious difficulties of construction, and will run through an exceptionally rich and prosperous country.
Asked if such a line would not clash with the proposed Macao-Canton Railway, for which I understood the Portuguese held a Concession, the President said it undoubtedly would, but, as far as he knew, the Portuguese Concession had never been granted, and, he added, was never likely to be. The line would virtually be an extension of the Canton-Samshui Railway, over which the Company hoped eventually to obtain sole control by buying out the interests of Hunan and Hupeh.
Sir Chentung informed me that he was not at all satisfied with the way the Company's accounts were being kept, and said he was seriously thinking of engaging a foreign auditer, who would exercise a general supervision over the Railway's expenditure and income.
I suggested that a chartered accountant, similar to the one employed by the Canton-Kowloon Railway Administration, would probably meet his requirements, and at the President's request I promised to make inquiries for a suitable man.
Sir Chentung informed me that his period of mourning would expire in February next, when, at the express request of Her Majesty the Empress Dowager, he would resign his position in the Railway Company and re-enter official life.
I have, &c. (Signed)
H. H. FOX.
CHINA RAILWAYS.
CONFIDENTIAL.
REC
[August 24.9 SEP 08
SECTION 2.
(29333]
No. 1.
Sir J. Jordan to Sir Edward Grey-(Received August 24.)
(No. 303.) Šir,
Peking, July 7, 1908. WITH reference to my despatch No. 281 of the 23rd ultimo, I have the honour to transmit to you herewith copy of a despatch from the Acting Consul-General at Canton, reporting a conversation with the President of the Canton-Hankow Railway, and containing much information respecting that undertaking.
I have, &c. (Signed) J. N. JORDAN.
Inclosure in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
(No. 24.) Sir,
Canton, June 19, 1908. IN the course of a recent interview with Sir Chentung Liang Cheng, K.C.M.G., President of the Canton-Hankow Railway, that gentleman was good enough to furnish me with the following information regarding the Company's affairs
At a general meeting of shareholders held in Canton on the 13th June, it was definitely decided to make a call of 1 dol. 50 c. on every 5.dollar share, that is to say, 1 dollar, or 20 per cent., having already been paid up, a further 30 per cent., making in all 50 per cent. of the value of the share, is now to be collected. The first call brought in nominally 8,000,000 dollars; the present one, which is to be made on the 1st of the 7th moon (the 28th July), is expected to realize 12,000,000 dollars.
The collection of this money has again been placed in the hands of the nine "Shan Tang," or benevolent institutions, of Canton; and Sir Chentung said he was hopeful that they would be able to realize at least 75 per cent. of the total amount due. It was further decided at the meeting above mentioned to pay 6 per cent. interest for two years ou the paid-up value of the shares, and to allow shareholders to deduct the interest from the amount payable on the second call.
According to present calculations the Company will, when this call is paid, have sufficient funds to complete the Kuangtung section of the line.
The Company, said Sir Chentung, have refused to agree to the Chinese Govern- ment's proposal that their capital should be deposited in the newly-formed Ta Ch'ing Bank, as it is already distributed among a number of Chinese and foreign banks of established reputation.
Trains are now running as far as Kuan Tien, 26 miles from Canton, and the road has been laid for a distance of nearly 80 miles. If nothing unforeseen occurs, the President said he hoped the line would be open to traffic as far as Pak Shek Yao, about 10 miles above Ying Tat, by the end of this year.
Some difficulty is being experienced in acquiring the necessary land, but the local officials and gentry are rendering valuable assistance, and the President does not anticipate any serious hindrance under this head.
Tunnelling work is at present delayed owing to lack of explosives, the new and cumbersome Regulations necessitating a separate application to the Board of War in the case of every consignment.
Rails, said the President, are being purchased in Japan, Germany, England, and Belgium. Two consignments, one of 3,000 tons, the other of 4,000 tons, are now being imported through the Mitsui Bussan Kaisha and Arnhold Karberg and Co. respectively. He mentioned that the Han Yang Ironworks were unable to execute any orders for another six months, otherwise all the rails required would have been purchased there.
(1897 aa--
--2]
491
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