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railway work. I maintained that the authorities would find the money in the first place, and it would be for the community later gradually to take up shares. The "rent- charge," moreover, was first inaugurated in Hunan, whose gentry have always been circumspect, and of late adopted this proposal perforce to keep safe the Hunan line. Our rules would follow theirs. This was, indeed, only a temporary use of this point, and the future method of providing funds would await leisurely discussion.
If the responsibility for shares is intrusted at the outset to the merchants of Hankow, then the main profit will entirely fall into the hands of men from other provinces, which would be of no interest to Hupei's people. My earnest desire is concentrated on the preservation of Hupei's interests, and I am, in consequence, engaged at this moment in discussing with the Board of Communications the desirability of leaving the management to Hupei independently. I am, however, afraid that the scheme for perpetual equal official and mercantile share-holdings is diametrically opposed to the wishes of the Board, and I am still uncertain as to whether this arrange- ment will be possible or not. Is there any chance, then, that the Board of Communica- tions would consent to complete control by the commercial classes ?
All my thoughts and endeavours are being directed to the advantage of Hupei, yet the leading men of the province deliberately flout my views, for some reason which all my thinking cannot fathom.
I eagerly await an early reply by telegraph, giving your views of the situation subsequent to the mass meeting of the gentry and stating the measures that commend themselves to your Excellency, so as to enable me to negotiate with the Board of Communications.
Please repeat the above to the officials under your jurisdiction, for their information.
Inclosure 4 in No. 1.
Consul-General Fraser to Sir J. Jordan.
My dear Sir John Jordan,
Hankow, October 12, 1908. I AM sorry that only now-10 P.M.-have I found time to write with reference to my telegram No. 23 of yesterday.
Liang-tun Yen, with whom I was very intimate when he was Chang-chih Tung's Private Secretary in 1900-1903, called on Saturday afternoon (10th) and told me Chang had consulted him about his railway schemes, showing him also the telegrams that passed between us last week. Liang pressed on his Excellency the necessity of concentrating effort on completing the Hankow-Canton line, a main trunk, whereas, the line to lehang was only subsidiary; but Chang would not listen, persisting that steamer competition would prevent the Wu-yo line from paying. This view, Liang agreed with me, was absurd, though of course the sooner there's through traffic to Changsha the better. Chang would not either listen to Liang's recommendation of Moore, whom he stigmatized as a waterworks expert. His objection, added Liang, was really that Moore was appointed by Viceroy Chao on his own motion.
Liang was strong on the advisability of the Government making all railways, and commended Chang's idea of raising a British loan for Hunan (the inclosed cutting shows that there will be local opposition), and ignoring the gentry, whose subscriptions would barely suffice, he thought, for the short section they have made such a fuss about. He went on to say that Chang heard from Hillier that there could be no fresh loau for at least six months, but seemed to pin his hopes on getting better terms from Bland. There had been a suggestion to include Chang's projected loan in the one signed on the 8th, but jealousy of the Board of Communications led Chang to scout the suggestion. Possibly his Excellency's latest scheme, as told to Liang just before he left Peking-to borrow 3,000,0001. for Hupei as well as 2,000,000 for Hunan-may also have had something to do with its rejection. We would, Liang added, get better terms than that loan's, owing to the 1905 engagements--a view that scarcely allows for the effect of Hanyang and Tongshan works' capacities in the way of supplying rails and rolling-stock. Liang asked about a tunnel under the Yang-tsze here, and opined that surely a native company could be formed to construct it, especially if given a franchise.
Later I touched on the awkwardness of Chang's sending his requests to me, and gathered that his Excellency, in some sense, felt himself still in power in Hupei, and looked on his undertaking regarding Hukuang Railway Loans, as a recognition of my personal services.
Liang, who was in great spirits, spoke very frankly, and promised himself thorough discussion of such local matters of interest as the Yang-tsze tunnel and the canalization of the Han during a week's stay, on his way back, six weeks or two months hence, He thought Chang's memory beginning to fail, and his interest in public questions to tend to become spasmodic, but with his Excellency Yilan's support he was still an influence for the good of China.
Yesterday forenoon, I got a second telegram from Chang which confirmed Liang's statements as to his Excellency's objection to Moore, and his hurry over the Hunan southern line. Characteristically his Excellency asked for more information as to the British and Chinese Corporation's representative, whom he credited me with sending him.
There seemed to me no harm in answering his queries, or in mentioning Bourne, whose coming had raised no objection in the spring of 1907, and of whose fitness for such a post Kinder had written very highly; but I felt bound to remind his Excellency that the Corporation, if they paid the piper, might well want some say in calling the tune, and, patiently, I tried once more to let him see that I am simply a subordinate of yours.
His idea of simultaneous work on several sections of the line south of Chu-Chou sounds rather wild, but, at least, something will be gained if it means the engagement of several competent section engineers, whose expenses, once an agreement is come to, could, I imagine, be advanced without waiting for the loan to be actually floated.
Ross, as far as I can gather, however competent at location, is wanting in patience and the mysterious knack of "getting on with the Chinese "-in other words, in tact. In Moore I have every confidence, but it seems useless to struggle against Chang's prejudice against him, since, if Liang succeed, as he seemed confident he would, in inducing his Excellency to let the Wu-Yo section go, Moore will have his hands too full to go touring in Southern Hunan.
I do hope I have not been guilty of taking too much upon me, or of interfering in any way with your plans. The doubt whether Chang has not some rival loan-monger in reserve makes me loth to give him an opening for pretending our first option is forfeited; but a word of warning will suffice to keep me from further correspondence with the Director-General.
I am, &c.
(Signed) E. H. FRASER.
Inclosure 5 in No. 1.
Extract from the "Kung Lun Pao" of October 10, 1908.
Proposal to change the Human Section of the Hankow-Canton Railway into a Mercantile Enterprise, under official superintendence, (Translation.)
A SECRET telegram from Peking to Hunan says this change is decided upon. The news has filled the gentry with alarm, as they think henceforward everything will have to be at the beck of the officials, and not a vestige of control will be left to the provincial gentry and merchants. Besides, the share collection has just begun to develop, but this news will intensify the difficulty of getting merchants to subscribe, and failing such support the whole dependence for success will be on official shares, The public of late is extremely hard up, and can never find the vast capital needed, which means that recourse will have to be had to a foreign loan, and this will render the redemption of the American concession nugatory. These last few days the gentry have been busily conferring and planning together schemes of resistance, and they think of hastily telegraphing to Peking for support in vigorous opposition to this proposal, so as to retrieve their position.
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