In China, aside from the Han-Yeh-Ping Co. and the railways' own workshops, there are very few strictly Chinese concerns handling railway business. There is, however, a considerable variety of commercial concerns in China representing American manufacturers of railway materials. Some of these are of strictly American interests, but few are fully staffed with Americans, although several are approximately so, especially as regards the technical staff. Some of the other concerns are mixed as to interest, nationality of concerns represented, and nationality of staff's (particularly the technical staffs). It is felt by the writer that American interests and also the customer's interests would be best served through the representation of American manufacturers by American or American-Chinese concerns. Such interests will give the best consideration to the permanent maintenance of the business, while the houses of other nationality will be chiefly interested in the immediate business and the profit therefrom and will desire to secure later business for their own nationalities. This statement is especially pertinent in connection with the recent war conditions. The question has been asked whether there are sufficient American concerns of this character to handle the present and future business. The writer believes that there are; in fact, he is strongly of the opinion that some of the present concerns should make a working arrangement under the provisions of the Webb-Pomerene law (making it possible for American interests to combine in handling foreign business), especially to eliminate some of the unwarranted competition between American interests and to represent fully the best American products. Another desirable result that such a consolidation would tend to insure is the utilization of the most experienced men, particularly those who have been in China and have become acquainted with conditions. Probably more than in other countries, experience is an asset in handling business in China. Application engineers should be engaged for long periods—at least 5 years and preferably 10 years. As a matter of fact, this is the rule with the engineers of other nationalities. Also, to handle these markets to the best advantage, it is very necessary that such engineers should return to America for periodical visits to keep fully up to date with developments. Another advantage of such an arrangement would be the utilization of high-grade men to handle extensive lines of railway materials, equipment, and supplies. This will be particularly desirable when competition is encountered, as it will be after the war. In the writer's opinion, the railway markets of China are going to develop along such lines-in fact, conditions are such now--that one experienced, energetic representative can handle a very considerable number of similar lines; and he can do this at the various commercial centers if aided by the staffs of the several local offices. This is especially true where these local offices have well-qualified engineers (as they frequently have). These remarks apply particularly to the concerns that have their principal or head office in one of the large trading centers-usually Shanghai but sometimes Tientsinand branches in the other centers, such as Peking, Hankow, and Canton of Hongkong, these centers being the most important from the standpoint of railway markets. An additional reason for American manufacturers to combine for handling the sale of railway equipment and materials to the Chinese Government Railways is the growing tendency for the Ministry of Communications to supervise large purchases. Manufacturers in the United States do not yet appreciate as they will later the difference between selling railway equipment and material to a centralized buying organization and the competitive buying of a large number of private railways. This is also a strong argument for having seasoned application engineers available to handle this business, particularly in view of the weight that such men's opinion carries with the Chinese officials. It goes without saying that an acquaintance with the personalities of the officials and a knowledge of the formalities of procedure are valuable assets in this connection; and they both take time to acquire. The most advantageous point at which such representatives may be located is rather difficult to state, particularly as most American concerns have their principal or head offices in Shanghai. Peking is likely to become, in the course of time, the most important place, because of its being the headquarters of the Ministry of Communications and of the Peking-Hankow and Peking-Suiyuan lines, as well as the point from which one can best keep in close touch with the Cheng-Tai, Tao-Ching, and Pienlo lines, whose operating headquarters are at points on the Peking-Hankow line. Tientsin, the headquarters of the Peking-Mukden and Tientsin-Pukow lines and also of the Kailan Mining Administration, is only 87 miles by rail from Peking. Many of the American manufacturers have fully equipped branches in Tientsin, some of which handle the Peking business. The round trip between Peking and Tientsin can be made in a day, the traveler having from 10 a. m. to 4.45 p. m. at either end. Hankow is headquarters for the Hukuang Railways and, on account of the construction of these lines, will be an important point to be kept in mind. Canton (or Hongkong as an alternative location), on account of the existing lines and lines that probably will be constructed, will be a point of some considerable importance for the handling of Chinese railway markets in southern China; from this point the French Indo-China railways can be reached. Shanghai, while the most important commercial center in China, is the headquarters only for the Shanghai-Nanking and ShanghaiHangchow-Ningpo lines, both under British foreign staffs. It is probable, however, if sufficient traveling is done, that Shanghai is the location from which the situation can best be handled as a wholeat least for the present. From whatever point it is undertaken to handle the business, a very considerable amount of traveling will be required to obtain all the business possible. CHINESE STUDENTS IN UNITED STATES. Many persons probably do not appreciate the number of Chinese students that are being given technical education in America through the working of the American refund of the Boxer indemnity. Numbers of these students are remaining and taking a limited apprenticeship course in various railway equipment plants. Some of the present Chinese Government Railway officials, particularly in the mechanical department, have followed this course. Without doubt it has been of much benefit to these men, but, in the writer's opinion, the 'maximum results were not obtained for the reason that the men were trained mostly in designing and manufacturing methods of the very large concerns, while, when they return to China, they are more concerned with the daily routine of keeping things running. These men would have received much more benefit had the same time been spent in the railway roundhouse or back shops in the making of all kinds of repairs. DISTRIBUTION OF CATALOGUES. In China and Japan there are no restrictions as to the distribution of catalogues, handbooks, and similar publications. Where the recipients can read English (as they can do in many instances in both countries) there is no doubt of the value of such distribution. TECHNICAL AND OTHER USEFUL PUBLICATIONS. The Far Eastern Review, first published in Manila but now published in Shanghai, has been the principal engineering paper for some years. Another technical publication in connection with railway markets that is printed in English is the Eastern Engineer (British), published at Shanghai and Hongkong. A new publication known as the Trans-Pacific is devoted to financing and engineering; this will be published in Tokyo in connection with the Japan Advertiser, a daily paper printed in English and owned by American interests. One of the most useful publications is known as "Who's Who of American (Chinese) Returned Students." This gives in both Chinese and English texts a concise statement concerning all such students. It is particularly useful as a means of obtaining information regarding the various Chinese railway officials who were educated in the United States, before calling on or meeting them. The price of this book is $1 Mex. It is published by the Tsing Hua College, Peking, China, and is revised annually. The Imperial Government Railways of Japan publish in five volumes an Official Guide to Eastern Asia. This is very useful, particularly the maps of the most important cities, which are both clear and accurate. The five volumes are as follows: (1) Manchuria and Chosen; (2) Southwestern Japan; (3) Northeastern Japan; (4) China; (5) East Indies (including the Philippine Islands). Dr. M. T. Z. Tyau's "Treaty Relations Between China and Other States" is very good for answering many questions that arise as to the peculiar conditions in China. For a commercial, industrial, and residential directory, the writer depended in general on Rosenstock's Directory of China and Manila. This is published annually at No. 4 Canton Road, Shanghai. Copies are on file at the several district offices of the Bureau of Foreign and Domestic Commerce. The agents in America are the Thomas Publishing Co. of New York, and Frank Shipley, of Seattle. Appendix 1.-DIRECTORIES. Following are directories of the principal officials of the railways covered in this report, so far as it was practicable to obtain such information in the limited time at the writer's disposal. The directories are arranged in the order of the text, except that for the Korean Railway, which is shown as a section of the South Manchuria Railway. The writer found the task of obtaining anything like a complete list of all the officials exceedingly difficult-in fact, an almost impossible undertaking-particularly on some of the lines where the duties of the foreign and Chinese staffs are not clearly defined. It was also made difficult by reason of the many changes in the railway officials, especially the higher Chinese officials. In the following lists, Chinese officials educated in the United States are indicated by an asterisk (*). CHINESE GOVERNMENT RAILWAYS: MINISTRY OF COMMUNICATIONS. NOTE.-Mr. Whang was a student at Michigan Mining College from 1909 to 1912 and at Columbia University from 1913 to 1914. PEKING-MUKDEN (CHING-FENG) RAILWAY. Head office: Hopei, Tientsin. Cable address: Kinfeng. Managing director..... General: Chu Kin How (Hsu Ting-Chuck*), General manager and engineer in chief....D. P. Ricketts, Tientsin. H. W. J. Marshall, Tientsin. .J. E. Foley, Tientsin. W. H. Steel, Tientsin. .E. H. Rigby, Tientsin. L. J. Newmarch, Shanhaikwan. .A. M. Tatham, Tongshan. .H. Stringer, Yingkow. ..L. H. Barnes, Shankaikwan. Locomotive and works superintendent....F. A. Jamieson, Tongshan. Assistant locomotive superintendent.. Works manager.. .J. C. Anderson, Kaopantzu. Accounts: Chief accountant.... Locomotive accountant. William Henderson, Tientsin. London agents: J. Whittall & Co. (Ltd.), 9 Fenchurch Avenue, London, E. C. Consulting engineer for rails, wheels, axles, springs, and bridges: C. P. Sandberg, Princes Mansions, 70 Victoria Street, Westminster, London, S. W. 1. Head office: Hopei, Tientsin. Cable address: Tsinpury. Traffic manager.. Locomotive: .S. C. Shu, Tientsin. Cheng Hang, Tientsin. .S. T. Chow, Tientsin. Chief, locomotive and workshops.........Tsai Kuo-Tsao, Tientsin. Accounts: Chief accountant and auditor General: Superintendent.......... Traffic: Kuang Y. Pao, Tientsin. TSINHAN (NORTHERN) DISTRICT. Chief traffic inspector. Engineering: District engineer in chief. Do... .Chien Shuh-Chao, Tsinanfu. .E. C. Liu, Tsangchow. K. Y. Kwong (C. E.), Tientsin. |