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while I was up-country on survey. On the 13th, 14th, and 15th October the Director and I were simultaneously at Nanking, and no doubt I could have succeeded in seeing him, but I was anxious to get an answer in writing to my two letters of the 13th October, and I allowed three days to lapse on that account. On the 16th October the Director again left for Shanghae, without having answered or acknow- ledged either of my letters. On the 25th October I went on survey again, and during my absence the Director returned to Nanking. When I got back on the 10th November the Director was again absent, but this time on some kind of business trip along the Grand Canal. He returned from this trip on the 19th November, but the offices were closed owing to the deaths of the Emperor and Empress Dowager, and I did not see the Director until the 21st November.
You will understand how very difficult it has been to arrange matters with a Director who I have seen so seldom. When I have seen him I have always been impressed with his desire to do what is right, but his absolute inability to take any practical steps. Communication has of necessity been almost entirely by writing, and none of my important letters have been answered. You will hardly credit the fact, but I have never been able to penetrate to the Director's office. When I have gone to see him I have had to wait sometimes for as much as three-quarters of an hour in a reception room, where he has subsequently joined me. This has been the case even when an hour has been fixed for an interview. With every other Director that I have ever had dealings with I could walk straight into his office, transact my business, and get away again promptly. Yet strangely enough I do not believe that the Director means to be discourteous, it is simply his nature to delay everything.
I have not been able to see the Director-General as yet, but all the men in my office are being examined by him, and I understand that he is endeavouring to find out from the Chinese clerks whether I am a competent engineer. Fortunately this is a point on which I am in a position to produce satisfactory proof.
Yours sincerely, (Signed)
Inclosure 2 in No. 1,
T. W. T. TUCKEY,
have given no opinion one way or the other. It would have suited me very well to have Mr. Henderson as auditor, as we were always in agreement about accounts. I cannot, however, go against the Director-General, after the views I have expressed, and which, I must say, I still hold.
The Director-General holds that the audit in Peking would lead to delay, and that, in the event of any discrepancy or any question arising, it would be difficult to settle the matter, whereas at the head office at Nanking all the facts would be immediately available. He also instances the fact that the accounts of the northern section are audited at the head office at Tien-tsin and not at Peking, and that the southern section should be treated in the same way. With every wish to assist you in this matter, I do not see that I can do anything. If the other parties to the matter had no wishes one way or the other I would be prepared to sink my own views. where the Director-General gives such a strong opinion, that the audit should be conducted as in the same way on the northern section, I cannot go against it. I have been very glad indeed to find that visits from the auditor are welcomed at our head office here.
But
The attitude of the Director-General on every point so far brought before him during his visit appears to me to be as satisfactory as possible, and there has been a marvellous change in the conditions here during the last few days. The first earthwork contract has just been let, and I hope that two rail contracts will be placed by to-morrow. The only thing that is delaying the placing of the rail contracts is that the lowest tender for one lot of 7,000 tons is from a firm who claim the option of I hold supplying rails manufactured by a British or by two Continental rail-makers. that we cannot give them this option, and that where the prices are the Another lot of same we must give the preference to the British maker. 7,000 tons, advertised at the same time, will probably go to Nanyang, but half to China and half to England will be a very fair division. If the lowest tenderers cannot guarantee British manufacture, I fear that there will be some trouble about this contract, as some of the other makes offering are, I am advised, not of the first class.
I do not know the conditions that have been made by the northern section, but I understand that there is some dissatisfaction about them. With the exception of the Russian and Canadian rail-makers, all outside China belong to an international ring, so that there is no competition as to prices, except as regards freight.
Yours truly, (Sigued) T. W. T. TUCKEY.
My dear Bland,
Tien-tsin-Pukow Railway (Southern Section) to Mr. Bland.
Head Office, Nanking, January 1, 1909.
I INCLOSE you copies of some further correspondence, in order that you may know how things are progressing. I expect that, as the result of the Director-General's visit, that matters will be satisfactorily settled. I am still waiting his Excellency's decision on some points, but in the interviews I have had with him in company with the Managing Director he has emphasized very strongly the necessity of observing the conditions of the Loan Agreement, and of there being complete agreement between the Managing Director and the Chief Engineer. I understand that the Managing Director has been hampered by written instructions given to him when he was appointed, which instructions required him to refer every little point to Peking. The Director General has pointed out that, where matters are referred to bim in writing, he is compelled to give certain decisions, but that where the Managing Director and the Chief Engineer are in agreement, and the conditions of the Loan Agreement are falilled, he will be satisfied.
I have been protesting about the form of the accounts proposed, which I consider to be unduly complicated. I understand that the Director-General will be satisfied with a form that satisfied the auditor, but that where the matter has been referred to him in writing, he has been bound to pronounce in favour of the form proposed by the Board of Communications. The north section adopted their own forms, which Dorpmuller and I were in complete agreement about
When this statement about the accounts was communicated to me yesterday by the Managing Director, I mentioned that if my friend Mr. Henderson was to be the auditor, as I understood had been arranged, agreement as to the form of accounts would be very easy. I brought the matter up later during an interview with the Director-General, and I was surprised to find that he holds very strong views as to the necessity of having the audit held at the head office at Nanking. As I told you, I advocated this course when I was in Peking last summer, but at the same time I thought I stood alone. I have not been consulted about the matter since then, and
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