The surface land above subterranean works need not be purchased by the Company. No compensation shall be paid to the landowner for coal and other minerals. raised by the Mining Company. Art. 5.-Houses, farmsteads and villages, temples, graves and above all high class graveyards belonging to the gentry, which are fenced in and planted with trees shall as far as possible not be used for the erection of buildings on the surface for mining purposes. If it should be impossible to prevent the above-mentioned properties from being used the local official shall two months in advance notify the owners and settle with them a compensation of an amount enabling owners to erect graveyards, etc., of the same condition at another place without sustaining any loss of money. Art. 6.-Houses, sheds, shafthouses and depots belonging to the mines shall be so placed as not to disturb city walls, fortifications, public edifices and important inhabited places on the surface. Art. 7.-The Company is not permitted to mine underneath graveyards, temples, parks and palaces belonging to the Imperial Family. Art. 8.—In surveying the land to be purchased the "kung" shall be used as unit. 1 kung is equal to 5 official feet, 1 foot is equal to 0.338 m. 1 Mu is counted to be 360 kung or equal to 9,000 square feet. As to the land tax to be paid by the Mining Company the same regulations shall be applied as in force for the most-favoured Mining Company in any other place of China. Art. 9.-The salaries of the assistants placed by the local authorities at the disposition of the Mining Company at its wish shall be paid by the latter. They shall not be included in the price of land purchased. The money for the land is to be paid into the hands of the District Magistrate, who is responsible for the proper payment to the different owners entitled to receive the money. The District Magistrate also has to hand over the title deeds to the Mining Administration. Art. 10. Should the Mining Administration apply for soldiers to protect the preparatory works and the property of the Company when the mines are in operation, the Governor of the Province of Shantung shall at once and effectually comply with such application. Therefore no foreign troops shall be employed for the protection of mines outside the 100-li zone. The amount to be contributed by the Mining Company for troops dispatched for the protection of its property shall be the subject of a further understanding. Art. 11. The purchase of material necessary for mining purposes shall be transacted in a fair manner and the usual market price shall be paid for same. If necessary the assistance of the District Magistrate shall be applied for. Art. 12.-The Mining Administration intending to rent houses for offices. and residences near the workplaces, shall apply to the District Magistrate who will make the necessary arrangements with the owners and will on its behalf conclude the contracts. Art. 13.-The natives of districts where mines are established shall as far as possible be engaged as workmen and as contractors for the supply of materials, they shall be paid as customary in these districts. If fights should occur between miners and natives the local official will have the right to arrest and punish the guilty. Miners are absolutely forbidden unwarrantably to enter the houses of natives. In case of contravention they will be severely punished. Art. 14. The Mining Company assumes the responsibility for any loss of life or goods caused by accidents in the mines and has to pay compensation to wounded or killed persons according to the local custom and to cover any loss of goods according to detailed regulations to be made and published by the Company. Likewise the Company, when prospecting, will be held responsible for all damages done by neglect of the Company to persons and property. Art. 15.-The Mining Company assumes the full responsibility for damage done to wells, fields, houses and other buildings by operating mines. It has to pay for such damages, if caused by the Company's neglect compensation according to local prices. Draining off water pumped out from mines is to be done under such precautions, that neighbours and their fields will not suffer any loss. Any such loss has to be made good by the Company. Art. 16.-Foreigners who wish to travel in the interior of the Province of Shantung, in order to enjoy better protection must be provided with passports duly sealed by the proper Chinese and German Authorities. The Chinese local authorities cannot assume any responsibility if such a passport is not produced. German and Chinese employees of the Mining Company are to be provided with certificates attested by the seals of the Mining Administration and of the Local Authorities, in order, when necessary to prove their official capacity. When prospecting the engineers shall be accompanied by an official delegated by the District Magistrate. This official shall, if necessary by police-forces, render assistance in protecting the progress of the work. His salary is to be paid by the Mining Company. Persons fraudulently pretending to be employees of the Mining Company shall be arrested and punished by the Local Authorities. Art. 17.-Outside of the 30-li zone mines cannot be operated without special permission of the Governor of Shantung. Inside of the 30-li zone, excepting the existing Chinese mines, the Shantung Mining Company has the right to work mines and raise coal and other minerals. The Chinese mines now in operation are entitled to continue work under the hitherto existing conditions, but they must so proceed that the works of the Shantung Mining Company are not injured thereby. In order to prevent the mines of the Shantung Mining Company lying below these Chinese mines from being kept in constant danger, the Company shall be at liberty to conclude an agreement for the purchase of these mines with the owners. If necessary the Company shall appeal to the District Magistrate for intervention. Regarding the purchase of larger Chinese mines already existing within the 30-li zone, their owners, instead of receiving payment in cash, shall be at liberty to ask for shares of the Shantung Mining Company amounting to the sum agreed upon as price of the mine sold. Should owners of such mines be unwilling to sell them, the working of such mines is not to be interfered with. Art. 18.-Inhabitants of places near the mines shall get coal to be used for their households at reduced prices as soon as the working of the mines is established favorably and successfully. Art. 19.-In the Province of Shantung outside the leased territory of Kiauchow the Governor in Tsinanfu safeguards all the rights of sovereignty. Therefore Chinese officials and workmen employed by the Shantung Mining Company within this province shall in case of contravention of Chinese law be under the jurisdiction of the competent Chinese Local Authorities. In case of complaints against foreigners employed by the Company proceedings shall be taken according to the proper laws. Art 20-It shall be the subject of further agreements, when and under what conditions the Chinese Government may in future take over the mines. The foregoing regulations, after being approved, shall be notified to the Authorities of the Province of Shantung and to the officials of the mines. Thereupon they shall be duly observed. Should it be necessary in future to have alterations made of some of the above regulations or to have drawn up supplementary rules, this can only be done by mutual agreement between the Governor of the Province of Shantung and the Shantung Mining Company. Tsinanfu, 21st March 1900. The Governor of the Province of Shantung: [signed and sealed] H. M's. Delegate: [sig.] YIN CHANG, Lieut.-General. Die Direction der Schantung Bergbau Gesellschaft. Note. The Schantung Bergbau Gesellschaft was a joint German and Chinese enterprise operating under a German charter or concession dated June 1, 1899, of which the following is a translation from the German text : Charter of Schantung Bergbau Gesellschaft.-June 1, 1899. "The Deutsch-Asiatische Bank-representing the Syndicate formed for the establishment of 'German Chinese-Mining Companies-having applied for a mining concession within the Chinese Province of Shantung in favour of said Syndicate, the Imperial Government is ready to grant same in accordance with the agreement contained in the GermanChinese Treaty of 6 March 1898 under conditions as follows: "Par. 1.-Beginning with the day of granting the concession the concessionary shall for a period of five years have the exclusive right to prospect for coal and other minerals as well as Petroleum and to claim mining fields by reason of finds made within an area extending 30 li to either side of the railway lines to be constructed a) from Tsingtau via Weihsien to Tsinanfu including a branch to Poshan. b) from Tsinanfu through the Province of Shantung as a part line of projected rail way from Tientsin to Kuachou (Chingkiang). c) from Tsingtau via Ichoufu towards the railway mentioned under b. "The concessionary is to hand over to the Imperial Government as soon as possible a trace of the probable line of Railways to be built. Par. 2.-For every find which is made within the districts covered by Par. 1 and which must be proved in its natural deposit, the concessionary shall be granted a field limited by perpendicular planes the demarcations for which are to be indicated on the one hand by the railway-line and a line parallel to it at a distance of 30 li and on the other hand by two lines six kilometers apart from each other running rectangularly to the railway line. After expiration of the time provided for by Par. 1 the monopoly of the concessionary to prospect and locate shall cease and the Imperial Government may grant such rights to other persons or corporations as well. · Par. 3.-Within ten years after expiration of the time provided for in Par. 1 .methodical working of mines must have been started and shall thenceforth be continued by the concessionary his successors or assigns upon the field granted to them or if three or more fields should have been granted at least upon one field in every three. "Should they fail to comply with this obligation and should the omission of or interruption to such work be contrary to prevailing reasons of public interest the Imperial Government may withdraw the grant of mining rights for such fields. No claim for compensation of any kind shall be admitted in such case. "The grant of mining rights can however not be withdrawn on account of not having maintained proper operating of mines unless notice to maintain such operating has been ineffectively given twice whereof the second notice cannot be handed in before at least half a year has elapsed after the first notice having been given. 'Should the concessionary his successors or assigns with reference to a mining field show special cause which made it impossible to begin the proper operating of mines within the stipulated time then the limit of time may be extended once for a reasonable period. If the concessionary his successors or assigns prove to the satisfaction of the Imperial Government that the observance of this limit of time or the continuation of proper operating of the mines has been rendered impossible by force majeure then in the first case the limit of time shall be extended for a reasonable period and in the second case the grant of mining rights shall not be withdrawn provided the concessionary his successors or assigns resume, after removal of the hindrance caused by force majeure, the proper operating of mines within such reasonable time as may be fixed by the Imperial Government. "Par. 4.—If at the expiration of twenty years counted from the day of granting the concession the extent of the mining fields granted to the concessionary should prove to exceed half of the total area of the Thirty-li Zone' the Imperial Government is entitled to revoke the mining rights in as much as they are granted in excess of the area mentioned. No claim for compensation of any kind shall be admitted based on such revocation. It is however left to the concessionary to point out the fields for which his mining rights or the mining rights of the Companies (Par. 5) formed by him shall cease. If the concessionary does not comply with the request transmitted to him by the Imperial Government to point out such fields, within six months after the day the request has been delivered to him, the Imperial Government shall decide upon such fields. "Par. 5.-The concessionary shall form one or more German-Chinese Companies (one at least within three months after the earliest date law will permit) having the status of a Colonial Company' (Kolonial Gesellschaft) in the meaning of the law with reference to the legal affairs of Protectorates dated 15 March 1888 and he shall transfer to such Companies the rights and obligations granted to him by the concession. The rules of these Companies shall be submitted to the Imperial Government for approval. "Every Company formed in accordance herewith_shall establish its siege in Tsingtau within six months after the resolution of the Federal Council concerning the juristic quality to be granted thereto. In case the dates set as above are not adhered to, the Imperial Government may if unwilling to extend the terms declare that the rights and obligations granted to the concessionary or to the Company by virtue of the concession shall be null and void, and no claim for compensation based on such an action shall be admitted. "Par. 6.-Proper steps have to be taken that both Germans and Chinese may be able to participate in the public subscription of shares for each of the Companies formed. Especially for this purpose subscription of shares shall also be opened at suitable trading places of Eastern Asia and the amount subscribed there shall receive adequate consideration. “Par. 7.—The concessionary his successors or assigns are bound when called upon by the Imperial Government, to satisfy out of the coal produced by them in the first instance the requirements of the Imperial Navy and to allow for all coal thus purchased a preference price being 5% below market price ruling at Tsingtau for coals of same quality. Par. 8.—As a contribution to the expenses of the Imperial Government for harbour works in Kiauchou Bay and to the General Administration of the Protectorate the concessionary his successors or assigns shall pay a tax on the annual net income of the mining enterprises to be calculated as follows: "If the net income available for distribution resulting out of the proceeds of a mining enterprise would allow for a yearly dividend of more than 5% figured on the share capital paid up and expended for such enterprise the tax to be paid for that year to the treasury of the Government of Kiauchou shall be: 7% the twentieth part from the amount exceeding 5% up to "Par. 9.—The total or partial transfer of the concession to be granted by this instrument, and also every alteration of the Rules of Companies established in accordance with Par. 5 require the approval of the Imperial Government to be valid. A transfer of the . concession itself or any part of it to a Company other than a German or German-Chinese shall not be allowed. 'Par. 10.-One copy of this instrument of concession will be handed to the concessionary as soon as the Shantung Railway Company has been properly formed. Par. 11.-All costs of this instrument if any, especially any stamp duty, shall be borne by the concessionary. "Baden-Baden, 1st June 1899. "The Imperial Chancellor, "[sig.] FÜRST ZU HOHENLOHE-SCHILLINGSfürst." The following is a translation (from the German text) of the Rules, dated October 10th, 1899, applicable to the Company: Rules of Schantung Bergbau Gesellschaft.-October 10, 1899. "I. GENERAL STIPULATIONS. "Art. 1.-Under the style of Schantung Bergbau Gesellschaft a Kolonial Gesellschaft (Colonial Company), having established its siege in Tsingtau, has been formed by virtue of the law of the German Empire, dated 15th March 1888 and 2nd July 1899. This Company, though working under the laws and under the jurisdiction of its siege shall be subject to the jurisdiction of Courts competent for such matters in Berlin for all actions between the Company and its individual members and/or the Company and its executive bodies arising from their company relations. Art. 2.-The object of the enterprise is the acquisition and the exploitation of the concession of 1st June 1899, preceding these rules, and in pursuance thereof the establishment of mining enterprises of every kind in the assigned area of the Province of Shantung particularly: 1) the prospecting for Coal and other Minerals, also for Petroleum, 2) the acquisition of mine properties by reason of the finds made, 3) the establishment and the operation of mines, foundries and smelting works, dressing works and all installations appurtenant thereto, also the purchase of raw material for the business within and without the area of concession, 4) the purchase and rent as well as sale and lease of rights to prospect and to locate as well as of mines and of metal works, 5) the acquisition and rent of land, rights to land and to water, as well as sale and lease of the above things and rights, 6) the building of branch railway lines for the purpose of forwarding the products of mines and metal works, 7) the sale of the products gained from the mines and metal works and also of other products of the country, also the establishment of sales offices within or without the Province of Shantung, for the purpose of such sale, 8) the participation in mines and metal works existing or to be established in the area of concession, 9) the establishment of other mining companies, to which part of the privileges granted by the concession of 1st June 1899 are to be transferred in accordance with Par. 5 of the conditions of the concession. With the approval of the Imperial German Government the Company is entitled: 1) to extend its mining enterprises and operations connected therewith or its participation in such enterprises and works outside the area of concession in the Province of Shantung or outside of this Province, 2) to found branch establishments. 44 Art. 3.-The duration of the Company is not limited to a fixed time. "Art. 4.-The executive bodies of the Company are: The Board of Directors (Direction) The Supervisory Committee (Verwaltungsrat) |