Mr. Allen to Mr. Hay.

No. 242.]

Sir: Continuing the subject of my last dispatch No. 241, of April 14, regarding Japanese interference with the Seoul Electric Railway, which is held by Americans as mortgagees, I have the honor to inform you that on the 15th instant I received a dispatch from Mr. Hayashi, the Japanese minister, replying to mine of the 9th, a copy of which I inclosed in my No. 241. In this dispatch Mr. Hayashi disclaims any intention of demanding a removal of the railway in question.

I am fully aware that he did all he could to secure this removal. His railway people said to the governor of Seoul that he must not heed the Americans, as they amounted to nothing. I was assured that so much pressure was being brought to bear upon the Koreans that but for the fact that Americans were objecting to any move they would have been compelled to yield. On the night of the 14th instant I was informed that the cabinet had definitely refused Mr. Hayashi’s request for the removal of the railway and the allotment of the ground in question. I received his letter next day, informing me that he had no intention of demanding the removal of the road.

He further informed me, in the dispatch, that he reserved the prior right of the crossing mentioned to the Seoul-Chemulpo Railway. That same day, the 15th, the official Japanese newspaper, published in Seoul, contained a notice to the effect that the rails laid down by the Americans at this crossing would be removed in the presence of the Japanese minister. I therefore called on Mr. Hayashi on the 16th and explained that after seeing the official plan of his engineers and their proposed changes to this American road I had felt it my duty to distinctly acquaint him with the conditions of our ownership and to assert our right to a crossing by allowing my people to lay down rails in advance of the Japanese railroad people; that I did not wish to appear to be obstructive or to cause trouble to much-needed industries; that if it were a mere matter of the cost of maintenance of the crossing, and if there would be no question as to the right of the electric road to cross the steam road, I felt quite sure we could arrive at a satisfactory arrangement. He agreed that there should be no question of the right to the crossing, and that he was aiming at compelling the electric road to share the cost of maintenance. I assured him they would do so, and that we might leave the matter in the hands of the managers of the two roads. Messrs. Collbran & Bostwick had given me assurances to this effect, as they desired no trouble over the matter.

Being aware of all the representations that were made to the Koreans in this matter, and having seen plans and documents in support of the same, I am entirely confident that prompt and firm action alone prevented grave annoyance and loss to the American firm who hold the Seoul Electric Railway, as well as an unfortunate blow to the prestige of Americans in Korea by the Japanese, who do not seem to take kindly [Page 777] to the fact that Americans are so influential here in commercial matters.

My relations with the Japanese minister, while they have been entirely cordial all along, are apparently much improved by the above incident.

I have, etc.,

Horace N. Allen.
[Inclosure 1.]

Mr. Hayashi to Mr. Allen.

Sir and Dear Colleague: I have the honor to acknowledge the receipt of your note of April 9, relating to the Seoul Electric Railway. You consider that the concessionaires of the Seoul-Fusan Railway have asked that the street railway be diverted from its present site along the main street of the suburbs outside the south gate to a site which is less valuable. You state that this railway and its appurtenances are at present the property of the American firm, Messrs. Collbran & Bostwick, by virtue of a mortgage of long standing, which can only be canceled by the payment of outstanding obligations. You therefore object to the removal of the road without the full and free consent of the mortgagees.

You have also called my attention to the fact that the street railway is about to lay down a certain length of track at a point near the present terminal grounds of the Seoul-Chemulpo Railway, in order to assert on the part of the street railway prior claim with regard to the crossing at that point of the two railways.

In answer I beg to state that Seoul-Fusan Railway has no intention to remove the street railway from its present site without the consent of the latter.

As to the second point, the course which Seoul-Chemulpo Railway is to take is already fixed, and its road is marked and partly constructed, and the steps to be taken by the street railway can not but injure the right of the former.

I deem it therefore my duty to reserve the right of the Seoul-Chemulpo Railway in this question.

I avail myself, etc.,

G. Hayashi.
[Inclosure 2.]
[Translation of an article in Japanese newspaper of Sunday, April 15, 1900.]

Removing of track outside of the south gate.

As the Japanese minister communicated to the foreign office to remove the track of the electric railway outside of south gate, to avoid the obstruction of Seoul and Chemulpo Railway track, they are going to remove the track in a few days in the presence of the Japanese minister and the governor of the city.