No. 174.
Mr. Denby
to Mr. Bayard.
[Extract.]
Legation of
the United States,
Peking, June 3, 1887.
(Received July 25.)
No. 380.]
Sir: I have the honor to report the latest
information touching railways in China.
The right to build the Tientsin and Taku railroad has been accorded to the
China Railway Company.”
I inclose herewith a proclamation of the viceroy to the effect that the
officials will not interfere in the management of the road. The local
authorities have also proclaimed that the people are not to interfere with
the location of the line and that they will be paid for the right of
way.
Another railway item is the purchase, of H. E. Chou Fu, of the material for a
30-inch line, of 24-pound rails, of 7 li (about 2⅓ miles) in length, from
the French syndicate. This is intended for the Imperial palace grounds at
Peking. There will be a locomotive, two first and two second class passenger
coaches, and a baggage wagon.
It is admitted by railroad experts in China that the American system is best
adapted to the country. It is likely that American cars will be procured for
any line that is constructed. The European compartment cars are not thought
to be as suitable as ours.
Another railroad item is that the contract to build 80 miles of railroad in
Formosa has been awarded to the firm of Jardine, Matheson & Co., an old
English Chinese house.
Means and appliances are necessary for effective work in China. Operating
10,000 miles away produces no results.
The Chinese are full of the idea that they ought to construct and own their
own lines. To the world at large it must be said that it little matters who
builds the roads. The main thing is to open up China to foreign trade.
I have, etc.,
[Inclosure in No. 380.]
important proclamation from the
viceroy.
The China Railway Company, which is to construct this line, is entirely
distinct from the Chinese Engineering and Mining Company of Kaiping,
Wu-Ting-fang, general manager of this railway company, and others,
having by order con veiled a meeting of directors and merchants at which
a set of regulations for the government of the company were
satisfactorily drawn up, they were submitted to me by the chief
directors, Shen, ex-provincial treasurer, and Cheu, taotai. I find that
the regulations stipulate that the company in the administration of its
affairs is to act strictly in accordance with the rules and principles
observed in commercial business, and it devolves
[Page 220]
upon the official directors of the company to
energetically look after its interests, so that the confidence of the
people may be secured, and that no irregularities in the conduct of the
company’s affairs will ever occur. A report from the directors states
that it is now proposed to raise a share capital of 1,000,000 taels, and
printed copies of the company’s prospectus and regulations have been
circulated. It being feared, however, lest those who live at more as
well as less remote distances may not know of the proposed scheme, this
proclamation is issued to inform all classes, the officials, gentry,
merchants, and people, that railways are popular interests in both
eastern and western countries, and those of our merchants who have been
abroad have personally witnessed the many advantages to be derived from
railways. Moreover, wherever railways exist their business and general
trade thrive to a much greater extent, and the wealthier classes in
western countries all buy and hold railway shares and bequeath them to
their posterity as legacies. China, in her endeavors to imitate western
countries, shall do everything economically and honestly, so that all
the net profits shall be equitably divided among the shareholders, in
conformity with established regulations, and not the slightest
irregularity shall be tolerated. This being an important measure
affecting the welfare of the state, the officials must exert themselves
to protect railway interests in order to establish them firmly, while
its affairs and measures shall, in accordance with the usages of the
western joint-stock companies, be decided by the board of directors,
selected by the shareholders in general meeting, the officials not
interfering with their authority, but only guarding against
malpractices. Intending subscribers to the shares should not hesitate or
delay, lest they lose their opportunity. A most important and special
proclamation.
