Mr. Allen to Mr. Hay.
Seoul Korea, April 14, 1900.
Sir: I have the honor to call your attention to a correspondence I have had regarding the Seoul Electric Railroad.
This road was built for a native organization known as the Seoul Electric Company by an American firm, Messrs. Collbran & Bostwick. The Korean company have a definite and legal franchise for the same, including an extensive electric lighting plant. The Emperor is personally a member of the electric company and furnished most of its capital. An advance payment was made to the American contractors, who were given a contract for the construction as well as one for the operation of the road until such time as the indebtedness of the Korean company should be liquidated. This contract was secured by a proper mortgage upon the road and its properties as securities for the heavy sums advanced by the contractors. The work of construction was accomplished and the road has been in successful operation since last summer. An extension has recently been made in accordance with the provisions of the franchise and contract, and the materials for the lighting plant have been ordered. The road has met with general approval and is a credit to American enterprise.
Last summer it was said that the Japanese minister made overtures to the Korean Government for the purchase of the extension of the [Page 772] road then under construction through the main street of the city 3 miles out to the river landing in the suburbs, for which franchise a sum of 100,000 yen was said to have been offered. As this was the most important part of the system, and as its ownership by a rival company would have made the rest of the line of little commercial value, such transfer could not be allowed, nor did the Koreans desire it. Later the Japanese made much trouble over the crossing of this street railroad extension and their Seoul-Chemulpo Railroad. The Japanese legation was also reported as desirous of obtaining the electric lighting part of the franchise away from the Americans, their insistence in this matter having actually caused the Koreans to hasten in making an advance payment that had to precede the ordering of machinery for this part of the electric plant.
On April 9 last the Japanese demanded of the Korean company that they remove this river extension of the street railroad from its present suitable site, through a long suburban street densely lined with habitations, to a line far off in the hilly fields to one side, away from the street, and where it would be quite out of place for the purposes for which it was built.
Their reason for this is that they have demanded of the Korean Government, and claim to have obtained, a very extensive area of ground situated just outside the south gate of Seoul, the main approach to the city. This area is mostly covered with houses and is pierced by the main street from the river to the city, through which street the electric road now runs. The alleged reason for demanding this ground was for its use as a site for the Seoul-Fusan Railroad, which is now being surveyed. It is well known and has been said by Japanese railroad engineers that the Seoul-Fusan Railroad will cross the river on the bridge of of the Seoul-Chemulpo Railroad and come to the city on the tracks of the latter road, using the fine, large station terminus prepared for the latter road, and which lies just beyond the south gate and adjoining the tract of land now newly demanded. As it would cost hundreds of thousands of dollars to remove all the habitations from this area in question, and as it is entirely unnecessary for railroad purposes, it is generally thought that the ground is desired for an exclusive Japanese settlement and barracks and fortifications for the protection of the railroad terminus and line to the river as well as to control the approaches to the city of Seoul. Many things not as yet necessary to report seem to point to this as the real object for which this land is desired; as, for instance, were it not that the Japanese desire exclusive control and public supervision over this area, which is reported as one of their demands, they would probably not object to having the street railroad pass through. As it is, they seem to want no foreign property there to complicate their operations, and have even laid out a wagon road around the section by a difficult and circuitous route, so as to make it unnecessary for traffic to pass through it as at present.
The Japanese citizen in charge of the matters of the Seoul-Fusan Railroad has just been appointed “superintendent of railroads” in connection with a newly organized railroad bureau. The governor of Seoul has for some years held the position of commissioner of railroads and has done good service. For a year past Mr. J. McLeavy Brown, the Englishman in charge of the customs, has been “superintendent [Page 773] of railroads,” so the new office seems scarcely to be necessary, and is supposed to have been sought in order to facilitate such transactions as the one I am now describing.
In order to secure a crossing last summer the Seoul Electric Railroad Company placed down several lengths of-rails at the spot where the Seoul-Chemulpo Railroad has to cross their line. This was done sometime before the actual laying of the electric extension. This Seoul-Chamulpo Railroad is only completed from Chemulpo to the river, 4 miles distant from Seoul, and owing to difficulties with the construction of the bridge at that point the portion from the river to the city can not be completed for some time. In view of the present Japanese demands, however, the Seoul Electric Railroad Company decided to lay down other lengths of rails at another crossing near the future station of the Seoul-Chemulpo Railroad, where the electric road must make a loop in order to come within reach of the passenger traffic from the steam railroad. This was done so as to indicate their right to insist upon a crossing at this point when the steam railroad shall be completed to Seoul.
As it stands at present this electric street railroad is practically the property of an American firm. They hold and operate it upon a mortgage which has long been on file at this office. They can not allow their property to be redeemed at present, as the work can not be completed for nearly two years, they having received an advance payment on the extensive lighting plant and a contract for a doubling of the extent of the railroad. I can not consent to their being shelved off to one side away from their proper position by a Japanese arrangement that has come up since this road was laid down. Even if the Japanese offer to pay the cost of removal the injury remains the same, as the position proposed is not suitable. Further, we can not afford to let the Koreans see us brushed aside by the Japanese in any such manner.
I refer you to inclosure No. 1, a copy of a letter from H. R. Bostwick, contractor and mortgagee of the electric road, inclosing a letter to him from the governor of Seoul, explaining the demands of the Japanese regarding the removal of the street railroad. I also send you a copy of my letter to Mr. Hayashi, His Imperial Japanese Majesty’s envoy extraordinary and minister plenipotentiary at Seoul, explaining to him distinctly that the street railroad is the property of Americans, and that I can consent to no change that will affect its value as a security without the full and free consent of the mortgagees and operators; also expressing my approval of the act of the electric railroad company in securing a right to the necessary crossing by laying down a length of track at that point in advance of the actual construction of the necessary extension, which work is delayed by the nonarrival of rails from America.
Although five days have elapsed since the date of my letter to Mr. Hayashi, I have had no reply, but the Korean newspapers of to-day, Che Kuk Sin Mun and Hwang Sung Sin Mun, state that the Japanese minister has asked for the removal of the electric railroad and that the foreign minister has ordered the removal.
I can not learn from the foreign office if any action has been taken.
I have, etc.,
- Printed ante.↩