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approved by that body after being passed upon by a commission. M. Doumer next secured the passage of a law by the French Chamber in 1898 authorizing the construction of this system of railways.

In the meantime steps had been taken with the Chinese authorities to secure the necessary concessions. As a result, one of the features of the "Battle for Concessions" was that in April, 1898, China by convention granted this and other concessions to France. Mr. Kent, in his "Railway Enterprise in China," states the terms as follows: (1) Kwangchauwan to be leased to France as a coaling station.

(2) The right to be granted to France to construct a railway to Yunnanfu from the Tongking frontier.

(3) A promise to be given by France not to alienate any territory in the three Provinces of Kwangtung, Kwangsi, and Yunnan, which border on the French frontier. (4) The Chinese Government to agree that if ever it constitutes a postal department independent of the Maritime Customs, and if a European is to be appointed as director thereof, France shall have an equal right with that of other Powers to nominate a candidate for the post of director. (NOTE.-The present director general of the Chinese Post Office is now a Frenchman.)

In addition, the Chinese subsequently granted the concession for the building of a line from Lungchow, and the French have advanced claims at various times that this concession also gives them the right to extend this line to Nanning, the capital of the Province of Kwangsi. The building of the Laokai-Yunnan section and the operation of the entire line from Haiphong to Yunnan was given by the French Government to a syndicate of the principal financial houses in Paris, who organized the Compagnie Française des Chemins de Fer de l'Indo-Chine et du Yunnan, and this company in turn sublet the construction work to the Société de Construction des Chemins. de Fer Indo-Chinois. The final agreement with the Chinese authorities was concluded in the fall of 1903. Mr. Hsu says regarding this situation:

The Chinese Government has no further obligation than to surrender the necessary land for the line and its dependencies. The gauge of the line is to be 1 meter. Once the line be completed, and if the parties concerned deem it expedient, after an understanding has been arrived at between the high provincial authorities on the one side and the French minister and the Waiwupu on the other, as to the mode of procedure, branch lines connecting with the main line may be constructed. All supplies, machinery, and materials necessary for the construction and exploitation of the railroad shall be exempted from import duty. In case of war with other nations and the railroad not maintaining its neutrality, China may take over the line and operate it, if she thinks fit. On the expiration of 18 years after the date of signing the agreement the Chinese Government has the right to get back the land granted and to repurchase the line from the French Government after the payment of all expenses put into the railroad, including stocks, interest and principal of bonds, and all properties in con

nection with the railroad.

This concession runs for 80 years, at the expiration of which time the line is to revert to the Chinese Government. The line was constructed entirely with French capital and is now controlled and operated by the French. Initial work was undertaken at Laokai in 1899, but the natives objected and obstructed progress by causing considerable disturbances. Next the Boxer uprising suspended all work until 1901. It was then decided to comp'ete first the line from Hanoi to Taokai. This was done, and then the construction of the Chinese section was taken in hand, but the line to Yunnanfu was not finally completed and put in service until April, 1910.

The construction of the Chinese section was very difficult and expensive. Many unusual obstacles were encountered; one was the scar

city of labor in this part of China capable of doing railway construction work, and another was the fever-ridden country through which part of the railway runs. It is stated that the number of coolies who died on the construction work was about 40,000. On one stretch of about 50 miles there is a climb of approximately 4,800 feet, thus approximating a 2 per cent grade for 50 miles. The highest point on the line is about 6,625 feet above sea level. On the Chinese section there are 147 tunnels, the longest being 2,112 feet. On this same section there are 47 bridges of more than 65-foot span.

EXTENSIONS CONTEMPLATED.

This line being in the area claimed as their "sphere of influence," the French assert the exclusive right to finance and construct all the railways that the Chinese can not build with native funds. As already mentioned, the Chinese admit the granting of the concession to extend the Hanoi-Langson line to Lungchow, and the French insist that, in addition, this concession gives them the right to extend this line to Nanning. The French also claim the right to extend the Laokai-Yunnan section to Hsuchow on the Yangtze River and from there to Chengtu, the capital of the very important Province of Szechwan also to construct another line paralleling the Yangtze River from Hsuchow to Chungking, where connection would be made with the Hankow-Szechwan line at a point something more than 150 miles southeast of Chengtu. A reconnaissance has been made of the route for the extension of the Laokai-Yunnan section to Hsuchow.

MATERIALS AND EQUIPMENT.

Practically all roadway and track materials on this system are from French sources; the weight of the rail is 25 kilos per meter (50.3 pounds per yard). Tie-plates and screw spikes have been used for the greater part of the construction. A considerable number of steel ties of robust design have been used; these are shown in figure 15 (see general subject of ties, p. 73). White ants are very destructive in parts of this territory. The rolling stock also is practically all of French design and manufacture. One notable exception to this, however, was the purchase of three locomotives from the Japanese shops of the South Manchuria Railway Co. at Shakako (Dairen). These three locomotives were designed, as well as manufactured, at those works.

MANAGEMENT AND PURCHASES.

The general administration of the entire Tongking Railway system, including the Chinese section, comes under the jurisdiction of M. Louis Constantin, Inspecteur Général des Travaux Publics de l'Indo-Chine. The direct administration and operation of the Chinese section is under the jurisdiction of a French official, whose title is director and engineer-in-chief.

Purchases for the entire system are in charge of M. Pierre Foursand, Chef du Magasin Général. All these officials are located at Hanoi, the head office of the entire Indo-China system.

106229°-19

SHANTUNG (SANTO) RAILWAY.

LOCATION AND EXTENT.

This is the much discussed German railway through the Province of Shantung, now under the control of the Japanese. The line starts at the port of Tsingtau on the bay of Kiaochow and runs in a westerly direction to Tsinanfu, the capital of Shantung, a distance of about 245 miles. There track connection is made with the TientsinPukow Railway, although the terminal facilities are entirely separate, as shown by the photographs of the terminal stations (figs. 3 and 4). There are more than 25 branches, built to reach the Poshan coal mines; these branches connect with the main line about 150 miles from Tsingtau.

HISTORICAL SURVEY.

The ostensible cause for the German occupation of Kiaochow Bay November 14, 1897, was the murder of two German missionaries early that month in the Province of Shantung. In view of events that have since occurred it would appear that the German occupation was deliberately planned and that the occurrence mentioned was only a pretext. The Germans promptly followed the occupation by demands on the Chinese Imperial Government at Peking, which were vigorously followed up and, in fact, added to from time to time, with the result that a lease was signed March 6, 1898, for Kiaochow Bay and a definite land area (about 200 square miles) that included the present port and city of Tsingtau. At the same time a convention was concluded for the building of the present Shantung Railway and, in addition, provision was made for the building of two other linesone from a junction near Kiaochow to Ichowfu and the second to complete the triangle to Tsinanfu on about the route of the present Tientsin-Pukow line. The concession included also the right to furnish the capital for all railways in Shantung that could not be financed from native sources. The provision with regard to this last matter is given as follows by Mr. Hsu in his "Railway Problems in China”:

If at any time the Chinese should form schemes for the development of Shantung, for the execution of which it is necessary to obtain foreign capital, the Chinese Government, or whatever Chinese may be interested in such schemes, shall, in the first instance, apply to German capitalists. Application shall also be made to German manufacturers for the necessary machinery and materials before the manufacturers of any other Power are approached. Should German capitalists or manufacturers decline to take up the business, the Chinese shall then be at liberty to obtain money and materials from sources of other nationality than German.

There was keen competition among the German financial interests to obtain the concession from the German Government to build these lines, with the result that a combination of German financial houses was effected, and in June, 1889, the Schantung Eisenbahn Gesellschaft secured the concession to build the line with "joint Chinese and German capital." Probably not a single subscriber was Chinese. The capital used in the construction of this line and also in the development of the resources along the line has been very largely, if not entirely, German. This was also the case with the improvements such as the port and city of Tsingtau and the new part of the town of Tsinanfu at the western terminal. The above concession also carried the right, after the end of 1908, to build the line from the junction at Kiaochow to Ichowfu. In addition, the exclusive right to prove

and claim the mineral resources for future development of the railway zone (consisting of a strip extending for about 10 miles on each side of the center line of the railway) was granted this syndicate. Work on the Shantung Railway was started promptly and the line was completed and put in service in 1904. The cost approached $50,000 (gold) per mile of line.

Giving due weight to the reasons that have been advanced by various authorities for the German seizure and forcible occupation of this Chinese Province for their operations, the writer is convinced, after going over the ground, that one of the particular and very sound reasons from the German standpoint was that this action gave the Germans control of a large number of the most robust and upstanding natives in China, capable of standing, and willing to do, hard work. In addition, this is one of the most healthful parts of China, and Tsingtau is probably the most pleasant place of residence, all the year round, on the entire Chinese coast.

THE PORT OF TSINGTAU.

One of the most important and interesting of the German developments in Shantung was the very completely equipped and wellarranged facilities at the port of Tsingtau. The area of the protected harbor of Kiaochow Bay is approximately 200 square miles, in addition to the 200 square miles of so-called leased territory. The port facilities consist of a large basin and several slips for seagoing vessels of all drafts up to 35 feet and a smaller basin for native craft. The construction is of the most substantial and permanent character. The slip between the two principal piers is capable of berthing the largest vessel in any service in the world to-day or likely to be built in the next generation. One of the disadvantages of the harbor is the height of the tides, which is very considerable and causes currents rather troublesome for the navigation of large vessels through the somewhat crooked entrance of Kiaochow Bay.

One of the principal features of the port is a complete plant for the repair of ships. In this connection there was originally a large floating dry dock, but since the occupation by the Japanese this has been taken to Kobe and is now in use at that place in taking care of the repairs to Japanese shipping.

CLASS OF TRAFFIC.

The service on this line, particularly as regards passenger accommodations, is somewhat restricted under the present Japanese management. Even under normal conditions it is probable that the freight revenues will considerably exceed the passenger earnings, although a very substantial passenger business is now done, which could probably be increased by additional service. The freight business comprises a large amount of agricultural products, one of the most important of which is Chinese strawbraid. In 1915 the coal handled amounted to about 260,000 tons (of 2,240 lbs.); in 1916 there was an increase to about 445,000 tons; and, with the improvements contemplated by the Japanese, there will probably be a further increase, although this is not likely to affect the traffic materially until 1919.

PROFITS.

The writer was unofficially advised that the Japanese administration has concluded, as a result of its investigations, that the German

operating results were as follows (converted from German marks to United States currency at the rate of $0.238 to the mark):

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For 1911 and 1912 the earnings were $3,496,000 Mex. and $4,211,000 Mex., respectively, but expenses for these two years were not satisfactorily determined and are therefore not given. In 1915 and 1916 the results of the Japanese administration were shown in Japanese gold yen (yen = $0.4985) as follows: Earnings, 3,651,400 yen and 4,437,100 yen, respectively; expenses, 3,242,200 yen and 2,937,300 yen. The earnings for the first six months of 1917 showed a small improvement over the first six months of 1916. These figures are shown as above for the reason that conversion to a common value would have to be made on an arbitrary basis, and in this way the figures would lose much of their significance to anyone familiar with the rates of exchange in the Far East during this period. They justify the conclusion that the financial results of this line under ordinary circumstances will be satisfactory. Notwithstanding the reduction of the traffic as a result of the war, the earnings shown represent a steady growth which, with the return of normal conditions, will doubtless be continued.'

POSSIBLE EXTENSIONS.

What the disposition of this railway will be after the end of the war can not be predicted at this time. One of the present results is that until such time as a final conclusion is reached the Japanese claim succession to the German concessions in the Province of Shantung. So far as can be learned, no consideration has been given to the building of the line from Kiaochow to connect with the TientsinPukow Railway near Ichowfu. However, there have been persistent rumors from time to time of Japanese efforts to secure concessions to extend the line west from Tsinanfu through western Shantung and southern Chihli to connect with the Peking-Hankow and also to reach the valuable deposits of good coal in southern Chihli, northern Honan, and southeastern Shansi.

The Far Eastern Review for December, 1917, stated that the Japanese Department of Agriculture and Commerce has set aside 10,000,000 yen, one of the purposes being to develop and work during 1918 and 1919 the mineral resources of Shantung, particularly the iron mines of Chinlingchin, about 180 miles west of Tsingtau. If a large amount of iron ore is developed, this will probably involve the construction of some additional branch lines.

ROADWAY AND TRACK MATERIALS.

The materials for this line are all of German standards and manufacture. There are more than 1,000 bridges of all spans, all of which

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