Directory_and_Chronicle_1923 — Page 770

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SHANGHAI

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expenses, leaving sufficient profit to pay a small dividend. Twenty years afterwards it was reconstructed. There is railway communication now with Nanking via Soochow and Chinkiang on the north, and Hangchow viâ Sunkiang and Kaching on the south. Rapid progress has been made towards the reorganisation of the Kiangsu-Chekiang railway under the control of the directorate of the Shanghai- Nanking railway. This line received no small damage at the hands of the rebels during the disturbances in 1913. General plans for the linking up of this railway with the Kiangsu line have already been formulated and negotiations for the purchase of the necessary land are proceeding apace. There are several locally-owned lines of steamers running on the coast and the river Yangtsze. Many manufactories under both native and foreign auspices have sprung up of late years, and would have done so in large numbers long ago had it not been that the native authorities offered strong opposition to any manu- factories under the control of foreigners and tried to strangle the importation of foreign machinery. Although the right under the Treaty to import machinery is quite clear, the British Government hesitated to enforce it; but the Japanese, in the Treaty of 1895 which closed the war, obtained the insertion of a clause specially authorising its importation. With the number of mills working and others in course of construction, the place is rapidly assuming the appearance of a thriving district in Lancashire. Indeed, Shanghai bids fair to become the principal centre of the cotton industry in the Far East. There are also a number of ginning factories, foreign and native owned. The silk flatures give employment to 20,000 natives. Other industries include hydraulic packing factories, foreign and native-owned paper mills, and Chinese-owned match factories. There are also large foreign flour mills (for grinding native wheat, which, it is said, makes excellent flour); two kerosene tank oil and tinning establish- ments and works, steelworks, glass factory, cigarette factories, oil mills and various other industries which are fast increasing in number.

No notice of the important place taken by Shanghai in the industrial progress of the East would be complete without a reference to the large engineering and shipbuilding establishments which now form a conspicuous feature in the business of the place. Already in the early 'fifties, Mr. William Muirhead, an engineer officer in the service of the P. & O. S. N. Co., had conceived the idea of starting a repairing shop. With the exception of the P. & Ọ., which then ran a fortnightly mail service from Hongkong, there was no regular line of steamers trading with the port, and the visits of coasting steamers were few and far between. Still, as the northern terminal port in China, occasional jobs came in. After the opening of Tientsin and the northern ports, and more especially after the opening of Japan, the business commenced to increase, and room was found for another small establishment to begin, Messrs. Nicolson & Boyd. Towards the end of the 'sixties Mr. Muirhead retired owing to failing health, and his business passed over to his former competitors. Meantime, as a number of sailing ships then entered the port, many of which came from the United States, two enterprising American shipwrights, S. C. Farnham and C. P. Blethen, had started, in connection with the "Old Dock," a general shipbuilding and repairing establishment under the style of S. C. Farnham & Co., and this from small beginnings rapidly grew in importance. The opening of the Suez Canal enormously increased the number of steamers visiting the port, and the Japanese daimios of the old régime were seized with a general desire to become steamer owners, so that the trade got a considerable fillip, and in the way of docking and repairs a large amount of local business commenced to spring up, and competition finally became strong. About 1890, both the old partners in S. C. Farnham & Co. having died, their successors conceived the idea of converting the old business into a limited liability company, and this was finally accomplished in 1893. In 1892 another limited liability company, the Shanghai Engineering and Dock Company, entered the field, and com- menced to build a large and more commodious dock than had up to that time existed in the place. They had, however, under-estimated the cost, and the new dock having met with a mishap, the Company found itself in financial straits. Overtures were made, with the result that the two concerns amalgamated. Finding themselves now in possession of nearly all the docking facilities of the port, the idea of combining all in one large concern presented itself, and negotiations were commenced with Nicolson & Boyd, the partners of which, finding that they would now have increasing difficulty in carrying on in face of the superior advantages possessed by their competitors, consented to an amalgamation; and the style of the new combination was changed to S. C. Farnham, Boyd & Company, Limited, with a nominal capital of upwards of five and a half million taels. Practically the new firm had the complete command of the market, possessing all the dry docks and all the

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