the repayment of principal of the loan to the bondholders, the Board will pay to the contracting banks with each payment of the loan service a commission of two per mille on such payment, that is to say a commission of £2 on every £1000. 5. The service of principal and interest of this loan will be paid from the surplus revenues of the various productive works of public utility controlled by the Board of Posts and Communications; in the event of these surplus revenues being insufficient, other revenues will be selected to make up the deficiency. The Board will further, from and after the date of the first coupon, and during the currency of this loan, leave on fixed deposit in equal shares with the two contracting banks in Shanghai, the estimated silver equivalent of the payment of interest next due. In like manner, from and after the end of the tenth year, the Board will also leave on fixed deposit with the contracting banks in Shanghai the estimated silver equivalent of the instalment of principal next due. These fixed deposits will be renewed and adjusted half yearly on the dates on which interest coupons become due to the bondholders, the silver equivalents of interest and/or principal which they represent being calculated at the rate of exchange or average rate of exchange, settled for the remittance of loan service made ten days previously. Interest on these deposits shall be allowed by the contracting Banks at their advertised rates for the time being for twelve. months fixed deposits, subject to any change of rate from the date of such change and will be payable half-yearly. 6. The contracting Banks shall issue, and are hereby authorised to issue to subscribers to the loan, bonds for the total amount of the loan in gold, in such languages and for such amounts as shall appear advisable to the contracting Banks. The form of the bonds shall be decided in consultation with the Chinese Ministers in London and Paris, who shall seal the bonds with their official seals as evidence that the Imperial Chinese Government is bound thereby. Cancelled bonds will be handed by the contracting Banks to the Chinese Minister in London or Paris. In the event of bonds issued for this loan being lost, stolen or destroyed, the contracting Banks shall immediately notify the Chinese Minister in London or Paris thereof, who shall authorise the contracting Banks to insert an advertisement in the public newspapers notifying that payment of the same has been. stopped, and to take such other steps as required by the laws of the country. Should such bonds not be recovered after the lapse of time provided by the law, the Banks will require from the claimants the requisite guarantees together with proof of loss in the usual form for examination by the Chinese Minister in London or Paris as the case may be, who will then, without further authority from the Chinese Government, seal and execute duplicate bonds for a like amount, and hand them to the contracting Banks, by whom all expenses in connection therewith shall be defrayed. Coupons and drawn bonds not presented for payment within thirty years. after the date of their maturity shall be forfeited to the Imperial Chinese Government. 7.-The Imperial Chinese Government hereby unconditionally guarantees and declares itself responsible for the due payment of the principal and interest of this loan, which is further hereby secured by a first charge, free from all encumbrances, upon the following provincial revenues: Province of Chekiang. House tax, wine excise, pawn-shop licenses, title deeds tax, amounting per annum Old and new additional tax on Szechuan and Huai Salt, amounting per annum to Tls. 600,000 Tax on tobacco, wine and sugar, house and land title deeds tax, amounting per annum to Province of Chihli. Tobacco, wine and miscellaneous Duties, amounting per annum to New additional tax on salt, amounting per annum to Total Kuping Taels...... 400,000 Tls. 800,000 200.000 250,000 4,250,000 It is understood that the security of this loan over the above annual revenues is limited to Kuping Taels Four millions two hundred and fifty thousand (Kuping Taels 4,250,000) irrespective of collection; if more is collected it will not be included in the security. In the event of default of payment of any installment of principal and/or interest of this loan at due date, the Imperial Chinese Government will instruct the provincial authorities in control of the said provincial revenues to hand them over to the contracting Banks. So long as this loan or any part thereof shall be unredeemed, it shall have priority, both as regards principal and interest, over all future loans, charges and mortgages charged on the said security of the provincial revenues herein assigned. No loan, charge or mortgage shall be raised or created which shall take precedence of or be on an equality with this loan, or which shall in any manner lessen or impair its security over the said provincial revenues as stipulated above, and any future loan, charge or mortgage charged on the said provincial revenues shall be made subject to this loan, and it shall be so expressed in every agreement for every such future loan, charge or mortgage. 8.-All bonds and coupons, and payments made and received in connection with the service of this loan, shall be exempt from Chinese taxes and imposts. 9. All details necessary for the Prospectus and connected with the service to the bondholders of the interest and repayments of the principal of this loan, not herein explicitly provided for, shall be left to the arrangement of the contracting Banks, who shall issue and are hereby authorized to issue a Prospectus of the loan. The Imperial Chinese Government will instruct the Chinese Ministers in London and Paris to co-operate with the contracting Banks in any matters requiring conjoint action, and the Chinese Ministers in London and Paris will approve and sign the Prospectus of the loan. 10. The contracting Banks hereby take this entire loan of Five million pounds firm at the price of Ninety-four per cent (94 per cent) to the Chinese Government. Of the resulting net proceeds of this loan, namely Four million seven hundred thousand pounds (£4,700,000), the sum of Three million seven hundred and sixty thousand pounds (£3,760,000) will be held to the order of the Board in Europe on the tenth day of December 1908, and the balance, namely Nine hundred and forty thousand pounds (£940,000) will be held to the order of the Board in Europe on the fifth day of February, 1909. Transfers of the loan funds to China will be made by the contracting Banks at rates of exchange which will be settled on a fair basis after arrangement with the Board. The Board will give to the contracting Banks ten days previous notice of the transfer to China of any sum exceeding £20,000. If any of the loan funds are left on deposit with the contracting Banks in London or Paris, interest will be allowed at rates to be settled by mutual arrangement between the contracting Banks and the Board. 11. All expenses in connection with the flotation and issue of this loan, such as underwriting, commission and brokerage telegraph charges, advertising, postage, printing of Prospectus and bonds, stamp duty and legal fees, shall be borne by the contracting Banks. 12. In the event of an extraordinary political or financial crisis in Europe. or elsewhere, by which the prices of Chinese, British or French securities become so seriously affected as to render it impossible to float this loan on the terms herein named, the contracting Banks shall have the right to withdraw from this contract, which shall in that case become null and void, subject to any arrangement between the contracting parties for an extension of time. 13. The Hongkong and Shanghai Banking Corporation and the Banque de l'Indo-Chine shall take the loan in equal shares and without responsibility for each other. 14. This agreement is signed under the authority of an Imperial Edict dated the fourteenth day of the ninth month of the thirty-fourth year of the Emperor Kuang-hsü (being the 8th day of October, 1908) which will be officially communicated without delay by the Wai-wu-pu to the Ministers for Great Britain and France in Peking. 15.-Quadruplicate sets of this agreement are executed in English and Chinese, one set to be retained by the Board, one set by the Wai-wu-pu, and one set by each of the contracting Banks. In the event of any doubt arising with regard to the interpretation of this contract, the English text shall rule. Signed at Peking by the contracting parties this Fourteenth day of the Ninth month of the Thirty fourth year of the Emperor Kuang Hsü, being the Eighth day of October, One thousand nine hundred and eight, Western Calendar. NUMBER 1908/13. CHINA. Prospectus of the Seven Per Cent Peking-Hankow Railway redemption loan for $10,000,000.*-October 8, 1908.† 1. The Board of Posts and Communications, for the purpose of redeeming the Peking-Hankow Railway, has decided to raise a loan to be called "The Peking-Hankow Railway Redemption Loan." 2. The total amount of the first issue of the Loan will be $10,000,000 (Ten Million Dollars) payable in any kind of dollars obtaining currency. 3.-The Loan will bear interest at 7 per cent per annum payable half yearly, in the 3rd and the 9th moon, either by the Committee in charge appointed by the Board; or by the Head and Branch Offices of the Chiao-tung Bank, or by any of the Chinese Imperial Railway Offices, or by the Head Office of the Chinese Imperial Telegraph Administrations and its branch offices, or by the Agents hereafter to be appointed for this service whose addresses will be published in the newspapers. All the foregoing will be authorised to pay the amount due for interest and extra dividend on presentation of the Loan Bonds issued by the Board. 4. In the event of the Chinese Government deriving a profit from the earnings of the Peking-Hankow Railway, the Bondholders, besides the yearly interest on the Loan, will also participate in this profit to be called extra dividend. The capital of the line amounts to Tls. 58,000,000 (Fifty Eight Million Taels). If in any year the Government's share of the profit should amount to Tls. 4,000,000 (Four Million Taels), the Board will then reserve one quarter of this sum, i.e. Tls. 1,000,000 (One Million Taels), for distribution as extra dividend which will be divided proportionately according to the whole capital of fifty eight million taels. The Board will memorialize the Throne and publish annually the amount of profit, 4 of which will be made available for extra dividends. This privilege of participating in the extra dividends does not however confer upon Bondholders the right to interfere with or examine the accounts. 5. The Loan is guaranteed by the Board of Posts and Communications which undertakes to repay both the Capital and Interest under all circumstances. In the event of a loss in the working of the Railway, Bondholders will not be held liable for any such loss. 6.-A special Committee in charge of the Loan service shall be appointed by the Board. The Head and Branch Offices of the Chiao-tung Bank and all the Chinese Imperial Railway and Telegraph Offices are also authorised to receive subscriptions for Bonds of this Loan. *English text as published by the Board of posts and communications. See Note to this document, post, p. 755. The date is that of the imperial edict sanctioning the prospectus. 7. The Loan is fixed for a term of 12 years, and redeemable by annual drawings commencing from the 8th year, and thereafter for 5 years to the 12th year. 8. Interest on the Loan shall commence from the day following that on which subscriptions are paid in at the Agencies. 9. The drawn Bonds may, for commercial business, be circulated as dollars of currency among the Head and all Branch Offices of the Chiao-tung Bank established by the Board of Posts and Communications, as well as at the Chinese Imperial Railway and Telegraph Offices and all the Railway Stations. 10. The Loan is issued in Bonds to Bearers regardless of holders' names and they may be bought or sold freely. The Bearers of the Bonds are recognized only and all persons holding them will be treated in the same way as native subjects and must obey the Regulations of this Prospectus. 11. In the event of the loss or destruction of Bonds, such loss or destruction will be treated in accordance with the regulations of the public Banks for the loss of a Bank note. 12. Bonds, the words or numbers of which have been either obliterated or altered, are declared nil and useless. The Bonds are printed in the Chinese · language. DETAILS. 1. The first issue of the Loan will be for a sum of $10,000,000 (Ten Million Dollars) to be divided into one hundred thousand Bonds of $100 (One Hundred Dollars) each and numbered consecutively 1-100,000. 2. The term of the Loan is for a period of 12 years with Interest payable twice a year, so that there will be 24 periods for paying Interest. Separate Interest Coupons are also given which are the only evidence recognized for drawing Interest on each period. 3. All Bonds are stamped on their faces with the Seal of the Board of Posts and Communications. 4.-All Bonds are only marked with Numbers and not with the names of their holders. They may be sold or bought freely, and are only recognized by their Bearers. 5. The Board of Posts and Communications will appoint a Committee to control all the affairs of the Loan, and Agencies for other places will be decided upon by the Board and made known to the public in due time by advertisement in the newspapers. 6. The dates of issuing, payment, and closing will be notified in the newspapers by the Committee in charge at the order of the Board. 7. The Loan is to be issued at par. Each Bond will be sold for $100 (One Hundred Dollars) according to its face value, and will be redeemed also at par. 8. The Loan, after deducting the amounts contracted for by underwriters, is to be raised from the public by Agents at different places. In the event |