THE LIBRARY
OF
THE UNIVERSITY
OF CALIFORNIA
LOS ANGELES
JUNGLE SCENE NEAR BAL1K PAPAN.
[Frontispiece.
Kl
Mi /
THE
FAR EAST REVISITED
ESSAYS ON
POLITICAL, COMMERCIAL, SOCIAL, AND GENERAL
CONDITIONS IN MALAYA, CHINA, KOREA
AND JAPAN
BY
A. GORTON ANGIER
EDITOR OF THE "LONDON AND CHINA TELEGRAPH " AND
" LONDON AND CHINA EXPRESS "
WITH A PEE PACE BY
SIR ROBERT HART
BART. G.C.M.G.
INSPECTOR-GENERAL OF CHINESE IMPERIAL CUSTOMS AND POSTS
WITHERBY & CO,
326 HIGH HOLBORN LONDON
1908
PREFACE.
IN China The London and China Express is taken at
all the ports and places at which Europeans are found,
and is considered an admirable summary of the world's
news and the views of the time for readers in the Far
East. The Editor, Mr. Angier, having visited the Far
East more than once, paid it yet another visit last year,
and wrote a series of letters while travelling, which he
now purposes republishing in book form under the title
of " The Far East Revisited." Having read several of
the letters as the papers containing them arrived in
China, they appeared so valuable that it then
seemed, a pity to either throw them away or
preserve them only on an inconvenient newspaper
file : their re-appearance now in convenient book-
form, and embellished by illustrative plates, is
both opportune and welcome, and there need be no
hesitation hi recommending them to all who are
interested in the affairs of the Far East a class of
readers whose numbers daily increase. Mr. Angier
iv PREFACE
describes places and communities in a graphic manner,
and deals with occurrences intelligently and fairly.
Besides, he had the advantage of revisiting that im-
portant quarter at a time when the new forces let loose
by this century were and are arranging themselves in
logical continuity for further evolution, and what he has
said of the condition and doings brought to his notice is
well worth the attention both of students and practical
men, and will also be found informing and interesting by
the general reader : he had seen the localities and people
before, and was accordingly able to illuminate both past
and present with each other's light, so that the com-
parison thus made gives additional value to all he
writes, whether as record or forecast.
Books of this kind have a singular appropriateness at
this moment in a record-making epoch. The East is up
and awake, and the foundations are being laid for a fuller
share in the work of the world, and for more intimate
relations with all that concerns international intercourse
and the influence one nation can exert on all others.
Change is in the air, and developments will daily be
more and more important, and whatever tends to
clearness of ideas as to what is, or helps to guide
thought toward what is to be, will not fail to find its
place in the general scheme of things. " The Far East
PREFACE v
Revisited " is such an aid, and its writer has done the
public a service in thus reproducing the outcome of
personal travel and observations made on the spot.
It is not proposed in this foreword to discuss any
of the many subjects these republished letters deal with,
and what is above said may be brought to a conclusion
by asking for sympathy with the Far East in its march
from the seclusion of past centuries towards the full
brotherhood of future times, and by reminding those
who are more especially affected by the expansion of
trade and commercial intercourse that the study of a
people's wants is of even more importance than an
exhibition of one's own productions. Reasonableness
never fails to meet with eventual appreciation, and the
interplay of demand and supply cannot but derive
benefit from, and be facilitated and fostered by, a
mutual understanding between producers and consumers,
and " The Far East Revisited " is a contribution to
both one and the other.
ROBERT HART.
CONTENTS.
PART I. MALAYA.
CHAPTER I.
THE STRAITS SETTLEMENTS. PAOE
Singapore General Position and Prospects Facilities for handling
Trade Docks and Harbour Works Finances of the Colony Com-
petition with Neighbouring Ports Material Progress Railway
Johore Exchange Penang Growth and Prospects Shipment
Facilities Pier and Godowns Praya Reclamation Prye River Dock
Malacca Legislative Council Increased Unofficial Representation 1
CHAPTER II.
THE FEDERATED MALAY STATES.
Great Achievements Wealth of Stanniferous Deposits Thirty Years
of Progress and Development The Changing Malay The Revenue
Position Federal Capital Kwala Lumpur The " 3 Cent. Provident
Fund " Irrigation Scientific Mining Anomalies of Production
Sliding Scale of Duty Some Representative Mines Methods of
Working Planting Rubber An Adjunct to Tin Railways
Economic Advantage to the States Roads Education Suggested
Parliament - - 24
CHAPTER III.
NORTH BORNEO.
Labuan The Coal Mine The Brunei Government Reorganisation
North Borneo Railway Tenom Sapong Jesselton Constabulary
Barracks Marudu Bay Tobacco Sandakan Tawao Silimpopon
Coal Mines General Progress of North Borneo Population a Great
Want ----'-.------ 42
CHAPTER IV.
GLIMPSES OF NETHERLANDS INDIA.
A Launch Cruise Breakdown of Engines Connection lost at
Boelongan A Sojourn on Tarakan Island Oil Production Samarinda
Balik Pappan Its Great Development Oil Refinery General
Growth in a Decade Pulo Laut Java Sourabaya Dutch Colonial
Methods Sumatra The Tobacco Industry Pulo Way Its
Possibilities -------..-. 53
vm CONTENTS
CHAPTER V.
PROGRESSIVE SIAM. PAGE
The Menam A Relict of the Burmah War of 1885 Roads and
Bridges The Motor His Majesty the King Politics Treaty Revision
Railways Currency Monetary Standard Gambling Education
Some Incongruities Sanitary Measures Water Supply 82
CHAPTER VI.
MANILA.
American Rule Want of Comprehension of the Problem Need of
Special Civil Service Filipinos for Minor Posts The Filipino Military
Forces Improvements in Manila Steamer Communications
Railways ------------99
PART II. CHINA.
CHAPTER VII.
HONG KONG AND ITS ENVIRONS.
Prominent Place in the Empire Its Growth Finances Pay of Civil
Servants Exchange Kowloon Railway Buildings on the Praya
Reclamation Naval Yard Industries Quarry Bay Dock and Ship-
yard Wharf Accommodation Water Supply Steamer Communica-
tions Freedom for Commerce Canton Educational Movement
Shameen Launch Traffic Yueh - Han Railway Samshui West
River Wuchow Nanning Lekin River Navigation The Coast
Ports Swatow Railway to Chao-chow-fu Amoy ForeignLearning
The Kulangsu Municipality Chinese Post Office and Native Customs
Chinese Emigration Formosan Trade Railways Foochow The
Foreign Community Industries Tea Trade - - - - -111
CHAPTER VIII.
SHANGHAI AND THE YANGTSZE.
Expansion of Shanghai Growth of Settlements and Country Districts
Means of Locomotion An Alert Community Chinese copy Foreign
Methods Municipal Council Shanghai's Position in Foreign Trade of
China Woosung Bar Yangtsze Valley Nanking Hankow Bunds
Industries Hanyang Ironworks Arsenal SteamerCommunications
Hunan, the formerly Sealed Province Changsha Progress and the
New Learning Siangtan Pinghsiang Coal Mine - - - 140
CHAPTER IX.
TSINGTAU TIENTSIN .
Liberality of the Reichstag The Customs Arrangement Growth of
Tsingtau Harbour and Dock Government and Governed Summer
Resort Tsinanfu Governor Yang Foreign Settlement Baptist
Mission The Taihu Prospects of Chefoo Railway Wanted Growth
of Tientsin Settlements and Concessions The Ex-Viceroy, Yuan Shih-
kai River Conservancy Hindrances to Trade Chinese Attempted
Regulations- -Transit Pass Difficulties ------ 174
CONTENTS ix
CHAPTER X.
PEKING AND ITS POLITICS. PAGE
Position that Nobody Knows Empress Dowager Health of Emperor
Possible Political Dangers China always in Trouble Need of
Official Reform The Customs Edict Imperial Maritime Customs
Clean-handed Administration The Inspector-General Sir Robert
Hart's work The Service Generally Chinese desire to Capture it
The " Reform " Movement Currency International Aspect Rela-
tions of China and Japan Legation Quarter Material Progress in
Peking - 193
CHAPTER XI.
THE NEW SPIRIT IN CHINA. OPIUM.
Revolutionary Ideas Chinese Constitution Possible Internal Disturb-
ance Japanese Influence The Vernacular Press Instant Trouble not
Expected The Opium Edicts China's Resolve in the Matter
Popular Sentiment Different Action in the Provinces Spirit of 1906
Edict still Exists Reduction of Growth Effect of Edicts on Treaty
Ports Morphia Injection Japanese Want of Action Smuggling of
Morphia Judgment must be Suspended - 212
CHAPTER XII.
RAILWAYS IN CHINA.
Imperial Railway of North China Hsinmintun-Mukden Purchase
Fakumen Extension Japanese Opposition Tongshan Works Engi-
neering College Question of Coal Supply Winter Port The Ching
Han Line Yellow River Bridge Chinese Love of Railway Travelling
The Shantung Eisenbahn Shanghai-Nanking Line Railway Work-
shops, Woosung Szechuan Proposed Line Sinyang-Pukow Connection
The Last of the Concession Lines Popularity of Railways List of
Lines Constructed and Constructing .-..-.. 25
CHAPTER XIII.
FOREIGN MINING ENTERPRISE IN CHINA.
The Chinese Engineering and Mining Company Coal Production
Ching-wan-tao Chinese Dissatisfaction at the Company The German
Mines at Shantung The Pekin Syndicate in Honan The Taokow-
Chinghwa Railway Re-purchase of the Shansi Concession An Event
to be Regretted -_-___.-__ 47
CHAPTER XIV.
SOUTHERN MANCHURIA.
The Hsinmintun-Mukden Line Consulates at Mukden Manchurian
Government Reconstituted The ex-Tartar-General Improvements
in Mukden Manchurian Trade Chinese Dislike of Japanese South
Manchurian Railway Liaoyang Newchwang Improvements and
Trade Antung Tairen (Dalny) Russian Expenditure Trade
Harbour Port Arthur A Reception by the Governor-General The
Naval Port The War Museum The Battlefields Japanese and
Russian Dead --_---____ 262
x CONTENTS
PART III. KOREA.
CHAPTER XV.
KOREA IN TRANSFORMATION. PAQB
Political Changes Three Phases : Chinese, Russo-Japanese, Japanese
Ascendency of Japan The New Emperor Japanese Actions
Want of Trained Men as Subordinates Korean National Spirit Anti-
Japanese and Pro-Japanese Budget Difficulties -Reorganisation of
the Finances Tax Collection Foundation of Warehouse Companies
Currency Changes .......... 287
CHAPTER XVI.
KOREA IN TRANSFORMATION continued.
Roads in Soul The Residency-General Foreign Consulates-General
The Korean Chronically Hard-up Predilection for Loans Education
Railways Treaty Ports Agricultural Products Capabilities of
Soil and Climate . - - - 301
PART IV. JAPAN.
CHAPTER XVII.
JAPAN FINANCIAL, COMMERCIAL, INDUSTRIAL.
Post-bellum Measures Foreign Loans Taxation Reduction in Expen-
diture Service Charges Nationalisation of Railways Their Progress
Anglo-Japanese Alliance Criticisms in the Far East Japanese
Gains from the same Japanese Emigration Settlement of Question
with United States and Canada Japan's Trade Commercial Morality
The Foreign Merchant His Outlook Shipping Labour Need of
Industrial Training Increased Cost of Living Improved Physique - 313
CHAPTER XVIII.
THROUGH JAPAN.
Nagasaki The Dockyard Wakamatsu Steelworks Kobe Its Har-
bour Scheme Osaka Yokohama Tokyo The Ginza Hibiya Park
Mental and Moral Change Patriotism Japanese Characteristics - 335
CHAPTER XIX.
HOKKAIDO.
Colonial Experiments Agricultural Wealth Fisheries Minerals
Hakodate Growth of Otaru The Capital, Sapporo Muroran Its
Projected Iron and Steel Works - 344
CHAPTER XX.
KAMAISHI IRON MINE AND STEEL WORKS.
Kamaishi Harbour The Works Municipality History of Under-
takingThe Mines Hills of Iron Tramways and Inclines Blast
Furnaces Steel Products 354
LIST OF ILLUSTRATIONS.
FACING
PAGE
Frontispiece JUNGLE SCENE NEAR BALIK PAPAN.
THE ESPLANADE, SINGAPORE - - - 5
PART OF ESPLANADE, WITH CATHEDRAL IN BACKGROUND,
SINGAPORE - 7
THE SINGAPORE RIVER - - 10
TYPICAL PRIVATE RESIDENCE, SINGAPORE - 12
GOVERNMENT HOUSE, LABUAN 42
MANAGER'S HOUSE, TOBACCO ESTATE, SAPONG - - - 49
TOBACCO FIELDS, SAPONG ------ 49
MURUTS AT SAPONG - 53
DERRICK AT TARAKAN - - - - - 60
BALIK PAPAN HARBOUR - - - - 64
ENTRANCE TO HARBOUR, BALIK PAPAN - - 69
HONG KONG - - 112
THE HARBOUR, HONG KONG - - - - -119
THE CREEK DIVIDING SHAMEEN FROM NATIVE CITY, CANTON - 122
THE CANTON RIVER VIEW FROM SHAMEEN - 122
BRITISH CONSULATE, WUCHOW _____ 136
VIEW OF FOOCHOW, WITH BRIDGE OF " TEN THOUSAND AGES " 145
THE BUND, SHANGHAI - - - - 149
BRIDGE NEAR THE SOUTH GATE TEMPLE, NINGPO - - 156
THE BRITISH CONSULATE, NANKING - - - - 160
THE BUND, BRITISH CONCESSION, HANKOW - - , - 164
ON THE TAI-HU (LAKE), TSINAN - - - - - 181
ANOTHER VIEW ON THE TAI-HU, TSINAN - - - - 183
xn LIST OF ILLUSTRATIONS
FACING
PAGE
SIGNAL HILL AND BEACH, CHEFOO - - - - -186
COMMISSIONER'S HOUSE, WEIHAIWEI - - - - 188
SIB ROBERT HART, BART. - - - - _ -193
NORTH CHINA COAL CART - _ _ 52
TEMPLE OF LITERATURE, MUKDEN ----- 64
LIEUT. -GEN. BARON OSHIMA, GOVERNOR-GENERAL OF PORT
ARTHUR -----____ 277
ADMIRALTY HOUSE, PORT ARTHUR ----- 84
VIEW OF THE CITY OF SOUL ------ 9
THE JAPANESE SETTLEMENT, WONSAN (GENSAN) - - 308
THE HOHEIKAN, SAPPORO --____ 35Q
LAKE IN RECREATION PARK, SAPPORO - - 35
PART I. MALAYA.
Sketch Map indicating Countries and Ports dealt with under Malaya.
CHAPTER I.
THE STRAITS SETTLEMENTS.
Singapore General Position and Prospects Facilities for handling
Trade Docks and Harbour Works Finances of the Colony Com-
petition with Neighbouring Ports Material Progress Railway
Johore Exchange Penang Growth and Prospects Shipment
Facilities Pier and Godowns Praya Reclamation Prye River Dock
Malacca Legislative Council Increased Unofficial Representation.
IT will be unnecessary to detail the ways and means
of reaching the important colony of the Straits Settle-
ments. Suffice to say, that the usual way is via the Suez
Canal, and that there are several lines of mail steamers,
and many other less pretentious craft, that make its
harbours a place of call.
The leading port is Singapore, and the impression
formed in my mind, as a result of this visit, was that
it was not in its happiest mood. Something seemed to
have temporarily only, let us hope arrested the quiet
progress of what had always struck me as a smooth-
running, money-making machine. Indeed, one was
constrained in times of yore to twit the community with
some lack of enterprise. It found a moderately even
flow of dollars albeit that those dollars at one time fell
to Is. 6d. coming in tolerably easily, and it allowed
many lines of business to slip away into Chinese hands ;
or it permitted other than local companies to gather
in such profits as pertained to writing insurance risks
on shipping and fire, the premiums on which should have
been in their own coffers. Something seemed to be now
clogging the machine. People wore a more restless air,
B 2
4 THE STRAITS SETTLEMENTS
instead of exhibiting that calm contentment which had
been the dominating feature of the Singapore I had known
at intervals for nearly thirty years. I am not content,
however, to take Singapore at its own general valuation
for the moment, but rather side with the smaller number
of those having real interests at stake, who truly, and I
think justly, believe that the place is still sound at core.
It will take a great deal yet before Singapore relinquishes
its almost unrivalled position. It has still to live and
look for its profits as a transhipment port. As such its
life largely consists on the degree of cheapness with which
it can carry out all its operations mercantile, banking,
stevedoring, and docking and repairs to shipping. When
once the great port of Singapore has been placed in a
position to fear no rival in the facilities it will offer to trade,
and in the accommodation, the rapid loading and discharge,
the docking and repair of ships, it need not fear its future.
" Provide these facilities, and keep them just a little
ahead of the requirements of the day, and I feel confident
that Singapore and Penang, with all the advantages
with which Nature has endowed them, will more than
justify an expenditure too long delayed," recently said
Sir Frank Swettenham, its former Governor. True,
the settling of exchange at 2s. 4d. to the dollar has not so
materially assisted as, I should maintain, the ideal rate of
2s. 0|d. would have done. The rate fixed has been a blow
at the maintenance of one of the cheapest handling ports
in the world.
There are foreign critics who are insistent in their
views that Singapore is a dying port. It was my
privilege to meet two or three prominent visitors, one
of whom is at least of European political eminence,
who seemed to be quite persuaded that Singapore had
seen its day, and was already decadent. I took the
liberty of drawing a simile between the Home country
before, and after, the opening of the Suez Canal ; and the
Singapore of the past on the one hand, and of its prospects
on the other. It is well known that the strong political
COMPETITORS OF SINGAPORE 5
enmity of Great Britain to the construction of the Suez
Canal was not directed to either the feasibility of the Canal,
or its probable usefulness as a waterway when constructed.
Up to 1869 England had occupied the profitable position
of the warehouse in Europe for the entire Eastern trade.
What the Continent required, of the goods thus brought,
was almost entirely purchased in Great Britain. The
possible construction of the canal threatened the
cessation of that monopoly. That this was a correct
view has been exhibited by events. The loss to Great
Britain was very real, but that country has not ceased
to be a great trading nation, nor has her trading been
altogether unprofitable. What was diverted from her
has been made up by growth in other sections, and in
constantly increasing volume of trade generally. My
own opinion is that Singapore will exhibit somewhat
similar characteristics. She has lost to neighbouring
Dutch ports; part of her trade with Bangkok is gone, as well
as in some other minor directions, the practical monopoly
of which she was at one time possessed. But she has not
ceased to trade, nor is it likely that she will do so. As
was the case with Great Britain and the Suez Canal, so
it is with Singapore and her commerce. The growth of the
trade of which Singapore was formerly practically the
sole centre, has so increased, and will, in the natural
order of things, so increase, as to permit of all securing
a sufficient share to ensure that each can live. It may
be that it will not always be British firms that will be
doing the trade, and the growth of Dutch banks and
companies betokens that it may not be ; but the port of
Singapore, as a whole, will be transacting it.
The expenditure to which the colony has committed
itself in the last two years exceeds eight millions sterling.
Of the amount, roughly speaking, three millions and
a half were required for the expropriation of the Tanjong
Pagar Dock ; two millions more are for the new Tanjong
Pagar works, dock, etc. ; the Singapore harbour works
entail one million and a quarter ; the Singapore Municipal
6 THE STRAITS SETTLEMENTS
waterworks required half a million ; and a sum is being
spent on the Penang Pier extension and the Prye River
scheme. For the latter it is intended to bring the railway
to the wharf and improve the facilities for landing and
shipping cargo, as also to place the repairing shops in a
better condition to deal with current work. The long-
talked-of improvement scheme for the Singapore River
has been shelved for the present, in view of the great
expenditure to which the colony is committed. There
had already been some little rift in the lute over the
betterment principle, which the Chinese had failed to
appreciate. All the leading firms have godowns on the
river, but Chinese are the largest holders of riverine
property. The ten-year-old contentions whether the bed
should be deepened, and the retaining walls carried down
lower, whether the bridge levels should be raised, or
whether a lock should be constructed near the entrance
to the river, may all break out again at any time. In
view of financial considerations, it was sought to postpone
the harbour works. If these are necessary to the eco-
nomical working of the port, Singapore could not afford
to allow their construction to be retarded, and from this
point of view it is, perhaps, well that arrangements could
not be come to with Sir John Jackson to cancel the
contract.
The general condition of the finances of the Colony
may be stated to be fairly satisfactory, and it can stand
the burden of the borrowing for which it received powers
from the Legislative Council. It should not be overlooked,
however, how considerable a proportion to the total
revenue is represented by the sum received annually by
the opium farm. China is presumably sincere in her
protestations and endeavours to stamp out the growth
and consumption of opium in China. Orders from the
Home Government have decreed that opium receipts must
go. The Straits Settlements will have to devise other
means of raising revenue.
The Tanjong Pagar Docks and wharves have had
TANJONG PAGAR DOCKS 7
much attention bestowed on them of recent years. The
wharfage accommodation of Singapore is comprised in
the Tan jong Pagar premises, the only other berthage
being the P. and 0. wharf, which is naturally for the
company's own steamers. Extensive as the line of
wharves is, it is inadequate to the requirements of the
port. The scheme to increase it is now being carried out,
the main additional berthing spaces being supplied
by the utilisation of the space between Keppel Road
and the existing wharf line, which is now a lagoon. This
will provide room for a great wet dock, and will be a
considerable scheme, worthy of being successor to an
undertaking that has, in its history, absorbed the Raeburn
Estate, the Borneo Company's wharf, and the New
Harbour Dock Company. If previous developments have
been considerable, it has for years been abundantly evident
that further progress must be made. Included in the
extension scheme is a gigantic new dry dock. This will be
837 feet long, with an entrance width of over 100 feet,
and a depth of water on the sill of 35 feet at H.W.O.S.T.
This dock, when not required at its full capacity
for large vessels, will be divided into two parts by a caisson,
giving lengths of 544 feet and 287 feet respectively, into
which lesser vessels can be admitted. A comprehensive
scheme for more economical working, by electric drive,
and concentration of plant at New Harbour and in the,
vicinity of the new dock, the situation of which is between
the Borneo Wharf and St. James's, is being proceeded
with. All heavy work will hi future be undertaken at
New Harbour. As regards the general working of cargo
over the wharves, coaling, etc., much has been done of
recent years, as well as repairs and rebuilding of the
wharves. More has yet to be, and is being, done to
bring still further the general scheme of working and
arrangement of sheds up to date. Incidentally, the new
works will reclaim 120 acres of land, which detracts
somewhat from the utility of harbour reclamation at a
time when the colony needs all its resources. It is
8 THE STRAITS SETTLEMENTS
evident that Tanjong Pagar officialdom has not slumbered
since the property was acquired for the Government.
The fleet of cargo lighters has also been much increased
and improved, and the Dock Board aims at a monopoly
of that kind of traffic. Another addition to the general
facilities has been a new salvage tug and steamer, which
bids fair to be an extremely useful vessel that will well
repay the cost of construction.
The general commercial position in Singapore during
the last two or three years has given rise to considerable
anxiety, more especially to import houses, and the whole
course has led to a rather pessimistic feeling. It is suffer-
ing now from the same causes that affect the whole world.
The rice trade, formerly so conspicuous in Singapore,
may be going direct to the ports that Singapore previously
supplied ; freights may be arranged direct for, say,
Macassar, and other outlying ports, but Singapore still
continues a busy scene of activity. You do not see an
idle, unemployed population ; rather do you see the bul-
lock cart and the coolie everywhere at work, transporting
or carrying bale or package. The rice bags may be fewer,
but there is bustle everywhere in the streets, whilst the
harbour is full of shipping. Still Singapore has lost
to Netherlands India ; and Dutch markets that had
hitherto been customers in Singapore made themselves
independent of that market. Import houses were not
slow to establish themselves, and the Dutch banks found
it worth while to open branches at such places as
Palembang, Bandjermassin, and Pontianak. Besides
Borneo, Sumatra, and Java, thus operating for them-
selves, the number of import houses doing direct trade
at Bangkok has increased. Exchange, of course, was
only one of the factors, and one cannot hope, though
the rate is now fixed, that it will be the means alone of
recovering something of what has been lost. It is true
that the increasing influence of Macassar, Sourabaya,
Bandjermassin, Batavia, Palembang, and other places
has had a marked influence on Singapore as a distributing
SHIPPING CONFERENCE 9
centre, but if Singapore's buying powers can keep up
it need not fear that its sales will not be maintained.
A matter that might suggest more uneasiness to both
Singapore and Penang arises from the withdrawal of
capital from Chinese dealers. A good many of the towkay
seniors of firms have died or returned to China of recent
years. This means capital withdrawn, as they took their
money away with them. Profits, I am told, also go back
to China instead of being invested to 'the same extent
locally as before. It is, of course, only what the
European is himself doing as often as he possesses the
chance of his overdraft being converted into realised
profits. In the case of Chinese, in most instances they
have taken in reality more than was due to them, for
it is usually the case with both Chinese and Klings when
compiling their balance-sheets to make little or no pro-
vision for bad or doubtful debts. There is another
influence at work against Singapore retaining its leading
position as an emporium. This is the much stronger
relations that have been established of late years between
dealers in the colony and those in the outports.
To every exporter, a matter that commands a good
deal of attention, and to which has been attributed, rightly
or wrongly, a portion of the depression of trade in the
Straits, is the level maintained in homeward freights.
The maintenance of these rates is brought about by the
Shipping Conference. That Conference having estab-
lished a monopoly has, in the opinion of many competent
persons, been the means of deflecting some portion of
the trade that hitherto pertained to Singapore. Most
people are decided that owing to lower rates from
Dutch ports and Macassar is usually cited as a leading
example merchants have been able to ship directly to
Europe and America cheaper than, as heretofore, via
Singapore. The natural result was the produce that
formerly came to Singapore went to Macassar and other
ports for shipment. The practical cessation of the
Bugis fleet, formerly a feature in Singapore trade, is
10 THE STRAITS SETTLEMENTS
the most glaring instance that is brought up. The
corollary of the matter comes in this way : that
where the native sells his produce, there he buys also
his imports, whether necessaries of life or small
luxuries that the foreign merchant can tempt him with.
The result is Singapore's double loss. There are some
who aver that the Conference rates are so pressing on
the producer and exporter that the shipowner is killing
the trade on which he now lives, and that he may
eventually find there is little to carry, though his sailings
and available tonnage may be admirably organized.
This is an extreme view, but that freight has been driven
away is well known to every merchant and shipowner.
The impression I gained was that whilst the average firm
apart from the half-dozen who profit by an arrange-
ment for a return of freight which does not come to the
outside person may inveigh against the Conference
system, he is not unreasonable. (The system by which
a few favoured firms obtain a bonus over their com-
petitors as a return for their support cannot in the
long run be a justifiable proceeding.) What he asks for
is a fair rate which will enable him to maintain the position,
at least in part, he formerly held vis-a-vis, say, the
neighbouring Dutch ports. He looks on reasonable rates
in freights as being as necessary to Singapore as a capacity
to handle goods and ships and docks cheaply. The
whole should produce Singapore's greatest asset the
ability to work at moderate cost. This really constitutes
the spirit and essence of Singapore's contract to live.
In material ways there are a few matters to note in
Singapore. The wing of the buildings composing the new
Victoria Hall was approaching completion, and the clock
in the tower had commenced its functions. Near by was
the elegant new pavilion of the cricket club, at the end
of the Esplanade. The building itself is attractive, and
affords greatly extended accommodation, though it must
have been a serious draw on the resources of the club.
Hard by, again : is the big block of the Hotel de 1'Europe,
KRANJI RAILWAY 11
half of which was opened, and the other half well on the
way towards completion. The neighbouring caravanserai,
Raffles' Hotel, is constructing a new billiard-room, with
a garden promenade on the roof as a feature. In other
directions Singapore has also increased its capacity for
housing strangers.
The railway across the island to Kranji has been
working for some time, and, judging by the traffic I saw
on it, should pay well. It is not otherwise much to
boast of, and its cost seems to have far exceeded what
was apparently necessary, had it not been seemingly
obligatory that it should be constructed under the most
expensive auspices that could be found. The terms on
which it was made were not nearly so favourable to the
Government, and consequently to the public, as might
have been secured many years earlier. It will doubtless
have more traffic to handle when the line to Johore is
completed. To Johore this line should mean much,
and the State should be thankful that it has a neighbour
with financial resources to spare, by which, though
partly for its own purposes, it is willing to undertake so
beneficent a work. It will be at no cost to Johore, but
it will open out the country and give facilities that are
already being availed of for rubber planting, and may
possibly lead to an extended production of tin. Whilst
mentioning Johore, I may note that the town has been
improved, and that it exhibits a fairly prosperous and
well-to-do air.
Reverting to Singapore I would note, despite the less
prosperous condition of the last few years, the proverbial
hospitality of the residents remains as of yore. There
are changes to note socially with the growth of the various
classes of the community. They are large enough now
to have grown into more pronounced cliques. There is
change to note also in the groups of people who con-
gregate round the Esplanade during that last hour of day-
light when the men had left their offices, and ladies came
down in their carriages and looked on at whatever sport
12 THE STRAITS SETTLEMENTS
was in progress, chatted with their friends, or strolled
about. It is now quite the exception to see European
women assembled there at their once fashionable resort.
The Chinese flock to this place, and whilst some know
the conventional decencies, there are others who make
the spot so undelectable by their omission of manners,
and commission of objectionable acts, that the white
woman has had to abandon the place to them. The
character of the formerly popular lounge has been quite
altered. In the way of sports, whether on the Esplanade
or at the clubs, young Singapore the white division, I
mean is very vigorous, and maintains previous reputa-
tions. I was sorry to see, however, little inclination
or keenness to associate themselves with the political and
more serious worlds in the place. The younger generation
do not seem to be so " Far Eastern," if I may so express
it, as their forerunners in the battle of life at Singapore,
or to associate themselves so intimately with its welfare.
Much interest has been evolved out of the currency
question during the last three years. Adopting similar
principles to those put in force in India in 1893, the Straits
dollar was fixed at 2s. 4d. There were some who thought,
when silver in the course of its rise in 1906 came to a point
where the dollar of 416 grains 900 fine was in danger of
finding itself in the melting pot, that the rate would be
raised, much as the Siamese had done. There was,
however, no such thing as fixity of exchange if this was
indulged in. The dollar of 416 grains 900 fine being on the
border-land of conversion to bullion, with silver, say, about
33d. per oz., it was first proposed that the dollar be
reduced to 800 fine, the weight being retained as before.
Subsequently on further discussion a modification was
made. The Straits dollar was reduced by one-fourth
of its weight and the fineness retained at 900. The
present dollar, taken at its token value of 2s. 4d., is
equivalent to silver at, say, 44d. per oz. It seems to me
that whilst the Government was about it, it might have
frankly thrown the silver dollar altogether overboard,
THE CURRENCY 13
called them all in by a certain date, melted up its stock,
and therewith purchased gold to add to its reserve. It
would probably have then possessed sufficient to meet
its liabilities on its note issue, or so near thereto as to
free it from anxiety. The $1 note, which was speedily
accepted, would have sufficed for all requirements in the
Colony and the Federated Malay States. Subsidiary
coinage would have been, as is the case in Japan, the
c.50 piece, and the lower denominations down to c.5
in so-called silver, and copper for cents. I conceive that
outlying trading dependencies, which use whatever has
been the currency of the Straits Settlements from the
time of the old Carolus dollar down to the most recently
minted coin, would either have accepted Straits paper
currency or in default bar silver. The banks could pro-
bably have easily guaranteed the silver as of certain
weight or purity, and thus provided for the necessities
of trade.
It is idle to bemoan one's fate or to cry over spilt
milk ; but if anyone happens to be in a reflective mood he
might sigh for what might-have-been. How possibly ideal,
for instance, might have been the 2s. dollar, or perhaps
if the Straits Settlements had adopted what prevails
in the yen in Japan and the conant in the Philippines
(though not the weight and fineness of it) make it 2s. 0|d.
That figure was quite as possible if taken at the right
moment as was the later figure of 2s. 4d. Excepting
those who were remitting money home, or withdrawing
their funds from the East, it is probable that most people
would have been gainers at the lower rate. We need not
consider the case of produce, which would have adjusted
itself to any rate so long as that rate was constant. Banks
and firms would have settled down to any constant figure.
But consider how much better off the individual would
have been. Fully nine-tenths would have been the gainer
at the lower rate. Sterling salaries have been the order
of the day for many years now, but rent, taxes, food,
wages for boys and other domestic servants, are payable
14 THE STRAITS SETTLEMENTS
in dollars. All these items had a sad tendency to rise
when the dollar was down to the neighbourhood of Is. 6d.,
and they have not sufficiently adjusted themselves to
2s. 4d. Some will, doubtless, in time, but the majority
show a tendency to remain. How much better to have
been paying these at 2s. 0|d., or, roughly, 16 per cent,
less when reckoned in sterling, into which the residue
was possibly converted, if the individual was possessed
of a saving disposition. At this point the careful
man would lose his 16 per cent., but I think the
saving he would have effected in his current ex-
penditure would more than have compensated him for
this loss. That 16 per cent, has been crystallised
against the individual just as surely as it came home hard
on the Government in paying off the little $28,000,000 or
$29,000,000 to expropriate the Tanjong Pagar Dock
Company's properties. Only in paying the sterling sum
for the new Singapore Harbour Works will the Govern-
ment apparently score, but it does not wipe out the 3|d.
on every dollar of the Tanjong Pagar award. As for the
introduction of needed capital to the Colony or the
Federated Malay States, it would be as easy to attract
at the one figure as at the other. It is only a steady
exchange that is needed ; then the capitalist has not to
fear loss of his money in exchange as well as in the venture
he may put it into.
If, again, and I am sorry it should be an " if," the
lower rate had been adopted in time, the Straits would
have been in a position to attract the gold it required
to back its paper currency when silver exchanges were
high. The silver dollar might have disappeared at that
stage, and have been replaced by the convenient paper
dollar (which all hope may long continue to have some
semblance of cleanliness), the silver being converted
largely into a gold reserve, and subsidiary coinage put
out as I have indicated above.
Penang constitutes the other leading constituent part
of the Straits Settlements. There can be little doubt
GROWTH OF PENANG 15
that if, possibly for want of all the necessary facilities,
the northern Settlement has not grasped its position to
the full, it has at least made extremely good progress.
There are changes to be seen everywhere. There are
new buildings that attract attention, the most conspicuous
being the new premises of the Hong Kong and Shanghai
Bank at the corner of Beach Street and Downing Street.
It is not only handsome, but it is the most conspicuous
object in Penang, as seen from the anchorage. Its dome
is so fine a landmark that it serves as a point for taking
bearings in the harbour. Above the necessary accom-
modation for the staff of the bank on the ground floor
there will be on the first floor the offices of Adamson,
Gilfillan & Co., the P. and O. mail agents, who are thus
situated very conveniently for the rnquiring passenger.
Progress is indicated also by the opening of new firms,
several being branches of old institutions in Singapore ;
competition in business becomes keener. Another new
building that deserves to be mentioned is the huge block,
for the Federated Malay States Railways, which seems to
betoken the confidence felt by the States in the future
of Penang, and the share they hope to have in it.
In the way of new buildings one has also to remark
on the general condition of the public offices. If the
fine Government block is half hidden by the ragged-
looking corrugated iron sheds that adjoin the famous
pier they remain substantial, and generally well adapted
to the work that is required. In other directions the
hospitals, gaols, markets, abattoirs (very fine), are all
good, and generally quite a credit to the place. They
indicate that if Penang does not yet receive the full measure
of public money that is its due, it is at least somewhat
better provided for than when it had very considerable
grievances in this way. It may yet legitimately ask that
more should be bestowed on it, in view of its constantly
growing importance. The old reproach of an entire
absence of a worthy house for the Resident Councillor
has been removed for a considerable time, but it struck
16 THE STRAITS SETTLEMENTS
me that in face of the population to be governed,
ome further dignity should be given to the surroundings
of that official. If he moves abroad, for instance, it should
be evident to the native population whether Chinese,
Tamil, Malay, or whatever it be that it is the Tuan
Besar (the Head Man) who passes. It would not cost
much, and it would not leave the wealthy Chinese
Towkay to do most of the appearance on the road. It is
a comparatively small matter, but one from which the
Oriental draws conclusions. Speaking of roads, one may
generally compliment the Municipality on the condition
in which they are maintained. They would be a credit
to any community. It is regrettable to have to record
in another matter respecting communications that the
Penang Hill Railway is not a going institution. It has
been a failure up to the present, and after some vicis-
situdes, went into liquidation in 1905. It was taken over
on July 1st, 1906, by a syndicate, consisting of some
shareholders in the old company. The new concern
has not, however, been successful, and the undertaking
has passed over to the Government, which had advanced
$25,000, and on which claim it foreclosed. It is to be
hoped it will now emerge from the mismanaged failure
it has unfortunately been, and will result in a boon not
only to Penangites, but also to many from the surrounding
States who would be yet more attracted by the virtues
of the Hill than they are at present.
In commercial circles rubber, as elsewhere in Malaya,
has of late attracted much attention. Rubber is first
in Penang, with tin second, sugar a moderately good
third, and the once favourite tapioca now only repre-
sented by one prominent estate in Province Wellesley
(Malakoff). It is in general ways that Penang seems,
however, to be forging ahead. One is led to believe
that it has at present as good prospects as exist in the
Straits. Kedah is coming on, and Tongkah is opening up.
The energetic Straits Trading Company has commenced
business at the latter place, whilst there is talk of several
WANTS OF PENANG 17
other firms doing likewise, including one well-known
Eastern bank. As far as Tongkah is concerned, much
depends on the wealthy Kaw Seng Bee, whose interests
might or might not coincide. He possesses a Siamese
title, and he has much power as a Siamese official. By
the way, the prospects of Penang will be greatly
enhanced if the Siamese Government carries out its
expressed intention to construct the railway from
Bangkok down the Malay Peninsula.
It has been the fashion in the past to twit Penang
with its want of co-operation in its own interests. It
appeared to be too passive ; more public life and spirit
was required of the mercantile community. It has
started the Penang Association to express its views ;
it is, unfortunately, not fully representative, and one
misses the names of many of the leading firms in the roll
of its members. Many possibly think that a branch of
the Straits Association would have sufficed. This,
however, being largely controlled by Singapore, did not
meet local requirements, mainly because Singapore people
were too much concerned with their own affairs, and
would not devote any attention to a study of the interests
of Penang, with which, perhaps, they had every sympathy.
This is, perhaps, unfortunate, as it does not lead to
community of representation, qua the Government ;
especially, perhaps, when the interests of both ends of
the colony happen to be at stake.
In a general way, questions respecting matters afloat
more concern Penang at the present time than do matters
ashore. Amongst the declared objects of the Penang
Association were the following : To promote the creation
of a Port Trust for Penang ; to promote the fixing on and
carrying out of a comprehensive harbour scheme for
Penang ; to protect the strict maintenance of the status
of " free port " for Penang, and especially to resist any
wharf, quay, or pontoon charges if differential to those
in other ports of the Colony ; to prevent the alienation
of Prye Dock, and to promote such improvements for
18 THE STRAITS SETTLEMENTS
the same as are required in the interests of the Settlement.
A Port Trust tax has been agitated for on previous
occasions, but the main question is the necessity for a
harbour improvement scheme for Penang, whereon hangs
much of the future of the port. What is and has been
required is a comprehensive arrangement by which the
trade can be carried on cheaply and expeditiously. It
is not only the trade of the Colony, but the interests of
the Native States and other surrounding countries that
will be benefited, as well as the trade of Great Britain.
The working of merchandise over wharves instead of the
present process of tongkangs (lighters) might be a vital
question to a transit port like Penang. It has not been
shown that Penang is an exception to the experience of
the whole mercantile community of the world as to the
advantage of berthing steamers. There can be no doubt
of this in face of the object-lesson of Singapore, whose
circumstances are practically the same as those of Penang.
It is a port doing the same kind of trade under similar
conditions. The mercantile wants of Penang must in
this respect necessarily be, in relative proportions, the
same as those of Singapore. For ten years the matter
has been tinkered at, modified, altered, and picked about
to such an extent that the conclusion was truly lamentable.
The natural result was that for long little of real utility
to the port was achieved, notwithstanding the disburse-
ment of a considerable sum of public funds. The true
requirement is such wharfage accommodation, plus
godowns or warehouses as will permit ocean steamers
to transfer readily and cheaply to the local distributing
vessels. At present there is, and there has long been,
considerable wastage going on in the distribution of the
trade. The whole Straits trade is very largely a matter
of transit charges, and Penang should be able to handle
her portion cheaply, otherwise she loses part of her trade
to the sister port of Singapore, or to a foreign competing
port. Will not Penang, failing complete wharf and
warehouse accommodation, be able the better to hold her
PIER AND RECLAMATION 19
own by improved lighterage arrangements ? From this
aside I turn to ask what has Penang done in the last ten
years after much agitation and many discussions ? Or,
rather, to be more exact, what has been done for her ?
as what is accomplished has not been in accordance
with her generally expressed wishes. At present there is
a pier 600 feet long, which can berth, say, two steamers,
connected with the shore by a jetty, from one side of which
has run a line of corrugated iron godowns. At the time
of my visit a line of handsome-looking godowns of Moorish
design externally was being completed. These run on
the other side of the jetty, and further away still from
the business centre.
Up to the present, the use of the existing pier cannot
be pronounced as extensive. It has proved useful in
transhipment of tobacco from Sumatra ; in a lessening
degree unfortunately for the transhipment of rice (which
now largely goes direct to Sumatra from Rangoon, though
complaints as to quality in Sumatra threatened to restore
the trade to Penang) ; and for the landing of immigrants,
who, however, are now dealt with and housed a mile
away on the reclaimed ground at Sungei Penang. It
would be ideal for passengers if they could always land
with their baggage at a pier from at least main line boats,
if not from the numerous local steamers. But for this
Penang will long have to wait. The question was whether
the pier extension, in the moderate manner in which it
was proposed, and bearing in mind its situation, was the
best method of disposing of the limited funds available,
or whether there were alternatives ? These latter prac-
tically resulted in one scheme, viz., the extension of the
Weld Quay reclamation. I was at some pains to acquaint
myself with the problem. The first thing that struck me
was the entire absence of connected method in what had
been done. There was the existing pier ; there were the
unsightly corrugated iron godowns ; and there were the
new godowns of magnificent external appearance, but that
seemed to be on ground doubtfully retained by the sea
c2
20 THE STRAITS SETTLEMENTS
wall, which presented a wrong level to the pier and the
road, while the railway, from the discharging vessel,
approached them with the most awkward curve any
engineer yet devised.
The buildings are, as I have remarked, a handsome
structure. This is the best that can be said of them.
Appearance has been too much studied, and thus pre-
sumably we have too many windows and too few doors
for ingress and egress of cargo. The godowns are
apparently solid also, and possibly too solid to be con-
structed on newly reclaimed land which had itself presented
some difficulties. They are set back about 25 feet from
the sea wall, but the floor level has had to be raised by
3 feet, so as to make the approach possible from the pier,
which brings it so much above the quay wall level. This
is to be filled up, however, after raising the sea wall, so
as to afford a sloping walk to the godown. This would
bring the windows it was sarcastically remarked to me
on a suitable level to receive cargo ! The extra height
which it has been necessary to give the floor of the godowns,
so as to make work from the wharf possible, has deprived
the resultant capacity of something like 1000 to 1500
tons of storage room. With the extra height added to
the quay wall will it be possible to land cargo without the
aid of mechanical appliances ? One fears, too, for the
walls themselves. Again, inside the godown the requisite
working spaces for the trucks from the pier seem to be
too confined. Above all, these new godowns are away
from the centre of the foreign merchants' premises, and
yet further from the very important Chinese business
quarters. A good deal has been done, but the lack of
cohesion and the appearance of a strong directing mind
working steadily towards a well-defined goal seemed too
evident. It is a choice of evils, therefore, that has to
be made, and of the two alternatives extension of the
pier or Weld Quay reclamation it seems to me the latter
is the best proposition.
The line of reclamation might be taken to the point
CONSIDERATION FOR CHINESE TRADE 21
of the Sungei (River) Penang, and a great area would be
reclaimed which would have good water for tongkangs
all along its front. The reclaimed land is needed for
the provision of cargo, and, if required, sheds could also
be erected. It is in this direction that trade is extending,
and not where the costly godowns have been erected.
Chinese trade, which forms so considerable a proportion
of the trade of Penang, is to the south of Weld Quay,
and it seems to be entitled to consideration in landing
its cargo. Towards paying part cost of the work, a
fee could be levied on all cargo landed over the new quay
wall, which would prospectively bring in as much as the
pier. If sheds were also erected additional revenue
could likewise be drawn from them. The whole length
of the new Weld Quay could probably be utilised for
landing cargo. It is in the neighbourhood of Sungei Penang
that trade seems to be extending, and it would appear
that in this direction facilities for the trade of Penang
should be created. There might be questions of fore-
shore rights, but the reclamation might conceivably
be carried out on similar lines to the Praya extension in
Hong Kong. In this way the work would be undertaken
by the Government for and on behalf of the foreshore
owners, and at their cost.
Owners would be entitled to a certain amount of re-
claimed land after allowing for landing places of cargo,
space for sheds, and the road. Such owners as did not
consent to pay their shares would relinquish their claims
to Government, which might dispose of the surplus land
in part payment of the works. The reclaimed area,
besides providing for cargo necessities, would likewise
provide land for the development of the business quarter
of Penang that is badly needed. In writing this I am
aware that Messrs. Boustead & Co. possess undoubted
rights respecting Weld Quay which must be respected ;
but that firm might be benefited also, and anyway I do
not anticipate that they would bar any great scheme
for the welfare of the Settlement. Either by compensation
22 THE STRAITS SETTLEMENTS
or by some other quid pro quo their interests could
doubtless be conserved.
At Sungei Penang a considerable reclamation scheme
has been completed. The land is largely used by the
Immigration Department, which has erected fine build-
ings thereon, by the Public Works Department, and by
the opium and spirit farmers. The rest of the reclaimed
land to the mouth of the river is available for merchants
and others.
One other matter to mention is the Prye River Dock,
acquired at the same time as the Tanjong Pagar Docks
were expropriated. It constituted part of their property.
It is situated on the mainland of the peninsula in Province
Wellesley. To render the place effective, and provide
requisite facilities in connection with the adjacent
terminus of the Federated Malay States Railways, it
has been necessary to spend a considerable sum of money
upon works and plant. There was a fear in the minds
of many in Penang that the docks would be taken over
by the Federated Malay States, a fear that did not, how-
ever, eventuate.
Though the Straits Settlements contain some other
territories, it is only necessary here to refer to the erstwhile
great and important Malacca, which centuries ago held a
great position in Malaya. Now there is talk of
reducing the Resident Councillorship, the position of
Lieutenant-Go vernor having been abolished long ago.
Probably such a proposal would excite but little opposition
a statement made with all due deference, for Malacca,
alas ! occupies only a comparatively humble place in the
progress of the colony. Its nickname for long has been
" Sleepy Hollow," though it naturally scouts such an
imputation. It must be admitted, however, for divers
reasons the absence of its being available as a shipping
centre being a conspicuous one the appellation is not
altogether inappropriate. Its stirring history in the
past, when Singapore and Penang were unheard of,
cannot in itself be a sufficient reason for the retention of
UNOFFICIAL REPRESENTATION 23
a Resident Councillor. But if this is resolved upon,
there is a most important question behind, namely,
whether such an innovation does not open an avenue
for the consideration of a revision in the constitution
of the Legislative Council of the Colony. The Council
at present consists of nine officials and seven unofficials.
The result is that when a Government measure is seriously
desired to be carried, the unofficials are nowhere. This
is not so in all Crown colonies, and it is difficult to divine
a reason why it should exist in the Straits. It makes
the Governor an absolute dictator in the Legislative
as well as in the Executive Council. The growing im-
portance of the Straits Settlements, not only in regard
to population, but from an Imperial point of view, renders
it necessary to consider whether the time has not arrived
for a constitutional arrangement, which, even allowing
it has worked well in the past (a point which many con-
sider doubtful), should not be subjected to modifications
which the exigencies of mercantile development and
industrial progress require. In short, the community
should have more voice in the government of the Colony.
CHAPTER II.
THE FEDERATED MALAY STATES.
Great Achievements Wealth of Stanniferous Deposits Thirty Years
of Progress and Development The Changing Malay The Revenue
Position Federal Capital Kwala Lumpur The " 3 Cent. Provident
Fund " Irrigation Scientific Mining Anomalies of Production
Sliding Scale of Duty Some Representative Mines Methods of
Working Planting Rubber An Adjunct to Tin Railways
Economic Advantage to the States Roads Education Suggested
Parliament.
THOUGH tin which has wrought so much and has been
so great a factor may for the time present have fallen
from its high estate, what the Federated Native States
of the Malay Peninsula have achieved in three short
decades, largely through their stanniferous wealth,
constitutes a great record. There is also the reserve of
remaining possibilities in the future. With a splendid
climate and soil, and so magnificent an endowment as is
embraced by the tin deposits, the countries have been
singularly blessed. They are also free from devastating
typhoons and cyclones that beset the seas to east and
west of the peninsula, but which make havoc at
a range that leaves the Federated States untouched.
Thirty years ago the land of the Golden Chersonese lay
basking in its eternal sunshine, shut off from the press
and hurry of the busy world of progress and competition,
and growing revenues, and conflicting tariffs ; the world
of which it heard but little and cared less. From the
Isthmus of Kra in the north, to Cape Rumania in the
south, the effete Malay States lay in their decaying
THE BRAVE AND INDOLENT MALAY 25
feudalism, swayed by rulers for whom the art of govern-
ment had become restricted to the exaction of dues,
more or less irregular and harsh in their incidence. The
Malay population at large, sparse in numbers, cultured
and polite by nature, and with the added culture and
politeness of a mild and non-fanatical Mahomedanism,
proud and self-contained, lived by cultivating their rice-
fields and fruit plantations, and by fishing, paying as
best they could the feudal dues which they owed to
their Sultan, and the more irregular exactions of their
immediate overlords. There were no roads between the
various States, from which an occasional embassy crossed
the mountains, by winding paths through the dense
virgin jungle, in order to discuss at interminable length
some petty point of diplomatic usage. Even within
each State there were no roads. Communication between
different districts and villages was by jungle-paths, or
the Malay's highway, the rivers, on the banks of which
he loves to dwell.
Not without skill in the working of metals, the forging
of weapons, the weaving of silks, the moulding of pottery,
singularly adroit in house-building and mat-making,
good talkers, and excellent tellers of an anecdote, given
to hospitality, and able to enliven the subsequent hours
with many a story and fairy tale such were some of the
arts and qualities of the Malay. For the rest, he was
brave, proud, quick to take offence, careful and jealous
of his personal dignity, reserved, and suspicious of
strangers. Indolent, good-natured and easy-going, of
simple tastes and habits, he found such things as he re-
quired ready to his hand at the cost of no excessive
exertion. The hot-house climate of his native land gave
him in profusion the necessaries of his life in return for
a minimum of toil. The mosque, the village council,
the life, the loves, the social chit-chat of his native village,
sufficed for the ethical side of his nature ; the news
brought by some passing pedlar, or shouted from some
boat moving swiftly down river, gave him all that he
26 THE FEDERATED MALAY STATES
needed of the doings of the world outside his ken. Thus
might the Malay have lived to this day but for an event
of far-reaching consequences to this part of Asia. The
great Chinese invasion, resulting from the discovery
that the alluvial soil of the Peninsula was rich in tin,
made the further existence of this primitive Arcadia
impossible. And on the heels of the Chinaman followed
the British. For the inroads of increasing hordes of
heathen and pork-eating barbarians filled the effete Malay
Governments, if, indeed, they could be called Govern-
ments at all, with alarm. It was, indeed, only too well
founded. The British Government at Singapore was
appealed to, fortunately at a moment when the late
Sir Andrew Clarke was Governor. An expedition was
sent to save the feeble Malay Government from ex-
tinction and the country from ruin. And having come,
it became a matter of J'y suis, j'y reste. " The white
man," says the pithy Malay proverb, half cynical and
hah* regretful, " is like the white ant. Once let him into
your house and you will never get him out." The results
of the intervention have been sufficiently startling. There
is no apparent limit to the growing prosperity of the land.
The country is traversed by hundreds of miles of rail-
way, telegraph line, and cart road. There are wharves,
hospitals, prisons, schools, and irrigation for sixty
thousand acres of land at a cost of a million dollars.
We may hope the Malays are grateful for the results of
our intervention, though the consequent changes have
filled them with an ever-increasing astonishment. They
are sufficiently good Mahomedans to bow to the inevitable,
and sufficiently endowed with shrewdness and common
sense to know that individually they benefit by the
growing prosperity of their country. Still in their hearts
some of them probably regret the old, simple, happy-go-
lucky days that have long since passed away. But the
belief will grow deeper and deeper that if the wand of the
white magician has in fact witched away the old
crumbling Malay dwelling, he has in its stead erected
THE PROSPEROUS REVENUES 27
a statelier and more spacious edifice, based upon deeper
and surer foundations.
The present Federation comprises the States of Perak r
Selangor, and the Nigri Sembilan, on the west coast,
and Pahang on the east coast. To these there is the pros-
pect that the Siamese Malay States of Kelantan,
Tringganu, and Kedah, some 8,000 square miles in all,
may be added as a result of negotiations now in progress
with Siam. With British Residents, and a staff such as
has been supplied to the present States, these territories
should greatly benefit, and rival in part what has already
been achieved in the older Federated States.
If tangible proof is sought as evidence of prosperity,
one may look at the revenue figures, and at the same time
bear in mind that no class of the population is anything
more than lightly taxed in comparison with its means to
support the same. Beside all that has been accomplished
out of revenue, there remains a surplus of roughly
$20,000,000, without counting the large holding of Tanjong
Pagar dock shares, or of money advanced for the Johore
railway, and to planters and miners. No comment is needed
on these statements, except perhaps that it is unnecessary
to keep quite so tight a grasp on the purse strings when
there are ways and means in which it may be profitably
expended in developing the country. It has become the
rule to keep them tightly closed, and one is constrained
to wonder whether this policy is deliberately pursued
in consequence of the financial necessities of the colony
of the Straits Settlements. If that is so, it is unfair
that the States should be asked to assist to too great an
extent, notwithstanding what the Straits has done to
advance them. It has, at least, always had its full
amount back again, and perhaps a little over, in such
matters as the Perak war expenses. However, the States
themselves bask in the sunshine conferred by an over-
flowing treasury ; in handling its contents it is not
necessary to be close-fisted. The pressure of progress is
continuous, and the demand to keep pace must necessarily
28 THE FEDERATED MALAY STATES
be more men and more money to provide for the fresh
openings that present themselves.
The Federal capital of Kwala Lumpur has greatly
progressed, and revels in a profusion of electric light
supplied by water power. Whether in the Government
buildings, which are fine, in the private residences,
including that splendid specimen Carcosa, the home of
the Resident-General, or in the town itself the class of
house in each degree is fine. The Government offices,
considered far too big for requirements when erected in
1900, have had to be added to by another large block,
and a special building for the Post Office has been con-
structed. There are likewise the fine block of railway
buildings, the Town Hall and Municipal offices, and a new
museum. There is a greatly increased white population.
My mind was irresistibly carried back to what was the
Kwala Lumpur I first saw in 1885, when the Resident,
Mr. (now Sir John P.) Rodger pointed out to me the pegs
marking where the streets, now built, would be aligned,
and when the attap roof had only just been condemned
within town limits. The Padang (recreation ground)
was then a kind of morass and dumping ground for
anything. Truly Kwala Lumpur has progressed, and
become a fine town, and as it is the Federal capital it has
had much lavished on its beautiful situation. It is
enough to surprise anyone : a dust destructor rears its
tall chimney ; there is electric light ; there are the fine
lake gardens with their pleasant club ; there are several
good drives ; and the most sporting golf links over
Chinese graves and other natural or unnatural hazards
have been improved, and made one of the finest in the
Far East.
Many good works have been done in all the States,
too numerous, indeed, to be mentioned. One that
brought common-sense and organized philanthropy
together was to be seen in Thaiping, the capital of the
premier State, Perak. Within the fine spacious grounds
of the Hospital, laid out with such care, one was attracted
THE KRIAN IRRIGATION WORKS 29
to a building at the extremity of the grounds where indi-
gent paupers are looked after. It was formerly the custom
when tin ore was being weighed, for assessment of duty,
that the weighing took place without charge being
exacted. The idea was then mooted that a small fee
should be imposed, and the resultant sum used to provide
for those in need. The mine owners readily agreed, and
a fee of 3 cents a picul was put on, and has provided an
ample fund for the purpose for which it was intended.
Indeed, in Perak there is a surplus, I understand, in this,
what I may call " 3 cent provident fund," of some-
thing over $40,000. The men are not under more
than voluntary restraint, and they may, if so disposed,
carry on certain trades, and earn independent money.
They seemed happy and contented, besides achieving
which result the institution frees the streets of beggars,
paupers, and those whom affliction or disease has pre-
vented earning a livelihood. The suggestion has been an
excellent one, and has wrought much good throughout
the States,
One of the most far-reaching improvements that has
been carried out in Perak for a long time has been the
Krian Irrigation works. It is truly a magnificent scheme,
and should confer great benefits on the district and the
State. The formal opening ceremony was performed
by the Resident of Perak, Mr. E. W. Birch, C.M.G.,
before a large gathering of Europeans and natives. The
district is eminently suited for the growth of padi, but
the rainfall has proved so fitful that the cultivators could
never depend, say, on two crops in successive years.
The project now completed has been under discussion
for over fifteen years ; now it is realised, and over
50,000 acres have been added for annual cultivation.
Like all such projects, the cost has steadily risen over the
original estimates. Still, the work is truly a grand one,
and can scarcely be considered to be over capitalised at
$22 per acre, which is what the cost of the reclaimed
land, with its 56 miles of canal, works out at.
30 THE FEDERATED MALAY STATES
The chief factor in providing the required funds for
progress has been the prolific wealth that has been brought
to the States through the tin deposits. Respecting this
commodity, one feature immediately calls for attention.
The fact is worthy of note that the white man has
of recent years come much to the fore. The hand of the
scientist and the expert is now to be largely seen, and
though Chinese methods, including the " truck " system,
still prevail, they are likely to grow less as time goes on.
Science and mechanical invention are overtaking the
Chinaman, and his truck system may die out. Another
fact to be noted is the extent to which the Tamil
looked on formerly as an agriculturist, or supplying purely
coolie labour is now employed at the mines. His num-
bers are steadily going up as a miner, or rather mining
coolie, whilst more Chinese are employed in agriculture.
As machinery supplants the Chinaman as miner, and only
coolie labour for certain of the work is required, the Tamil
does as well as the Chinaman, and his remuneration is
less. One big mine, and Chinese-owned for the most
part, near Kwala Lumpur, employed only a few Chinese
to attend engines and boilers, and provides itself with
Tamils for the coolie labour required. Respecting the
continuity of the industry, from what I could see and
learn, there seems no reason to suppose that the deposits
will be finally exhausted for a century or two. Practically
all the tin produced so far, is only of the order of
scratching the surface. There are probably whole valleys
and districts where even this has not yet been done, and
there must remain afterwards the deep karang (ore-
bearing sand) and the lodes to be dealt with.
In a recent report on the state of the Negri Sembilan,
the Resident, Mr. D. Campbell, makes a computation
that on the average each miner won ore to the value of
over $263 in the year. Of that sum the worker would
expect to receive $144 in wages and $60 in food, leaving
$59 to the employer as the return on his capital and
interest. I do not think it can be denied that, in view of
HOW PRICE OF TIN INFLUENCES OUTPUT 31
the actual cost of living, the proportion taken by the
worker is excessive. Chinese mine-owners, however,
seem to be altogether in the hands of their labour, and,
owing to mutual jealousies, to be quite unable to combine
to protect and further their own interests. Another
instructive thing to note is the increased proportion of
miners who prefer to work on the co-operative, or profit-
sharing, system rather than secure themselves by working
for a fixed monthly wage. And this leads one to comment
on the fact that when the price of tin is high, the output is
inclined to recede. This must not be taken as indicating
exhaustion of deposits. The high price, where the
Chinaman is the main factor, and not the machinery,
tends to a paradoxical condition of things. The higher
the price the smaller the production. There may be
various reasons, but the chief and most important is that
the Chinaman, like every other human being, will work
fewer hours if he gets enough or more pay than he did
when the price was considerably less. At the time of my
visit the price of tin was near 200 a ton, and Chinese
production rather decreased. The present year (1908)
has witnessed low prices for tin, but the output in the
States has increased as compared with 1907. As re venue
is imposed on a sliding scale, according to the quoted
price of the metal, we have the further anomaly that
with a greatly increased production in 1908, the revenue
collected is much inferior to the figures for 1907.
And now just a few words on some representative
leading mines. I would frankly say that what most
impressed me was the new method of mining by dredger,
as exhibited at Tanjong Rambutan, in the Ipoh Valley.
Here you have a dredger capable of floating itself, and,
being thus mobile, all that is wanted to commence is to
open a hole sufficiently large for the dredger to be built
in, and then rest on its own flat base. On the dredger
at one side of the forward end is a powerful pump supply-
ing the pressure by which the 4|-inch nozzle of the cutter
is worked. This operates in advance and to right and
32 THE FEDERATED MALAY STATES
left front, and cut out the ground to a distance of 150 feet
from the dredger. The debris washed out, and the water
used to do it, naturally fall in front of the dredger, where
a powerful lifting pump stationed on the other side of
the front of the pontoon takes all up. It passes the spoil
over a gently sloping riffle bed some 500 to 600 feet long,
collecting aU the tin on its passage, and depositing the
tailings behind. On the rear part of the dredger are
situated the boilers, and all that is necessary is the initial
supply of water to feed the cutter. As soon as the
ground has been cut away to the limit of the monitor's
capacity, the pontoon, or dredger, is pumped out water
having been used as ballast the dredger can be floated
forward to the face of the cutting, and rests again, on a
prepared base, by water being admitted to the pontoon.
The riffle bed behind is naturally moved forward also,
and operations are again commenced. The full capacity
of the dredger is said to be 100 cubic yards per hour,
and it had already done 85 cubic yards at the time
of my visit. This figure means, say, nearly 130 tons
per hour. The staff for a shift comprises but fourteen
men to handle, or rather to see the machine handle, this
great quantity.
An adjacent mine on the road back to Ipoh was
Tambun, which is owned by one of the big Chinese Tow-
kays, who also courts Consular honours in that he is
Chinese representative in Penang. Here there is a very
up-to-date plant for washing and removing overburden,
with the necessary puddlers, jiggers, and light railway
plant. It was a pleasure to see the order and the ex-
cellent condition of the machinery insisted upon by the
general manager, Mr. Nutter, whom the Towkay must
feel considerable respect for as the result of the way he
has brought the mine to solid success. In the other
direction, from Ipoh down the valley, is the celebrated
Tronoh mine. It has been, and is, a great mine, and was
one of the first ventures controlled largely by the great Foo
Choo Choon to adopt machinery to lessen the cost of
SOME REPRESENTATIVE MINES 33
mining. Having been a pioneer, however, it had
dropped a little behind in advanced methods. I
was glad to see and learn that this was being rectified. A
considerable sum has been expended to modernise the
methods, and give the great mine a new lease of life,
by employing machinery to obviate the services of several
hundred coolies, who are not always easy to obtain,
and have always to be highly paid.
In the neighbourhood of Batu Gaja I was enabled to
see two leading mines. At Redhills one observed the
system of working by a steam navvy. The spoil gamed
was tipped into trucks and transported by a wire ropeway
to be first pulverised by the monitor, and then treated
in the usual way by stamps and washing. Not far away
is the Fusing Lama mine, where the feature is the lode
mining. A rich strike was being dealt with, and the gains
carried to the mill, where the system of working and
treatment by stamps, and handling of slimes, is much the
same as at other mines. It is, perhaps, worth noting
that the lode strike here, which has already proved so
profitable, and has considerable further ascertained
wealth, should have been marked on the plan of the mine
as ground that was poor and unprofitable to work !
Mr. Currie, the manager, in walking over the ground,
kicked up a stone. This exhibited certain indications,
which, being followed up, led to further discoveries, and
the practical certainty that a tin lode was at hand.
Subsequent results have been very satisfactory.
The only other working I propose to refer to is the
large Sungei Besi mine, situated a few miles from Kwala
Lumpur. Its career had not always been an even
success. It is a good specimen of the large open cast
mine. The method of bringing the spoil to the puddlers
is by wire-rope haulage, and the subsequent treatment is
by the usual jiggers and riffle boxes. The method is
economical, and would be cheap but for the great
pumping power required to keep the mine clear of water.
It is a small stream that runs into the mine which has
34 THE FEDERATED MALAY STATES
had to be dealt with in addition to the usual accumula-
tions in an open cast working.
In thus treating of a few of the leading mines 1
have purposely omitted reference to any of the mines
worked on purely Chinese methods. Their ways, interest-
ing as they were in times gone by, when they could
make money out of mines that foreigners invariably lost
on, are now outclassed by more modern ways and up-to
date machinery. It is thus that future mining in the
Malay Peninsula will be carried on, whether the mine
be Chinese or foreign owned. It is interesting also to
note a development inaugurated by the influential Straits
Trading Company. This is the treatment of ores for the
purpose of separating pyrites (arsenical and otherwise).
The ore itself must command a somewhat better price,
and the obtained product will furnish another, if com-
paratively small, source of revenue to the already consider-
able profits of the company. Another interesting venture
is run near Ipoh, where a small plant exists for electrically
separating the wolfram from the tin ore. Reverting to
the Straits Trading Company, I may note this company
is still the buyer of a large percentage of the tin produced,
which is treated at either of the companies' refineries
situated at Singapore and Penang. Other, Chinese
smelted, ore is usually sold in Penang, where some half
dozen of the leading foreign firms refine the ore in their
own godowns previous to shipment to Europe.
The Federated Malay States has now a respectable
second string to its bow. Coffee and other products have
held out hopes, and much stress has been laid on the
necessity of forwarding, planting and agriculture to the
greatest extent. Up to comparatively recently, the piping
led to very little real dancing. Now the feet move readily
to the rubber tune. The second string has been found,
and is already proving a most useful adjunct. Labour
also seemed to be always against the planter's hand.
He could not retain it in face of the demands made on
the market by the railway construction that was going
RUBBER CULTIVATION 35
forward, in addition to other works. Now, if the supply is
not entirely adequate, it is at least improved, and the
Government system of assisting immigration from India
has alleviated the pressure. When the States are
better known in the recruiting districts in Southern
India, coolies should be easily induced to come to
Malaya in considerable numbers. Some attempt, one is
glad to see, is being made to interest the Malay himself
in a form of labour that even he should take to.
The Sultan of Perak wrote a circular, which was sown
broadcast amongst all Malays, pointing out the suitability
of the work on rubber estates to his countrymen. The
move is a good one, but I fear it has not been responded
to as liberally as one would desire. Let us hope that it
may be, and that the Malay will find a congenial task
in this species of light labour for he habitually hates
hard work, unless it be fighting or love-making. Whether
the indigenous population benefits, or whether it neglects
the opportunity presented to it, the future of rubber
cultivation will not apparently be affected. The Malay
may benefit himself or not, but blocks, and sheets, and
scrap will be proceeded with.
The greatest single district under rubber growth is at
Klang, in Selangor, where the estates best known are
situated. Practically all the land between the Klang and
the Selangor rivers has been taken up for rubber. But
there is much activity in the other States, and the growth
is universal, for apparently anywhere in the States and
practically in any soil Hevea brasiliensis will flourish.
After Selangor, Sungei Ujong seems to be the district
most favourable. The output of rubber from the States
is not very great at present, but it is rapidly growing, the
estimated output for 1912 being 50,000 tons. The sale
of Hevea rubber seed for planting gave handsome
profits to those who had fruit-bearing trees. But with
thousands of trees now bearing the sale is limited. The
question of what to do with the seed in the future should
be considered, and specially whether, by some means
36 THE FEDERATED MALAY STATES
of preventing the trees from flowering and fruiting, an
increased yield of latex would be gained. This is a
matter for experiment, but the difficulties in attempting
to prune off the flowers seem to make it almost imprac-
ticable. The value of the seeds for oil and cake purposes
has been given in an interesting article in the Bulletin
of the Imperial Institute for December, 1903, on the
commercial utilisation of the Para rubber tree (Hevea
brasiliensis), and in this paper the value of the decor-
ticated seed is given as from 10 to 12 per ton. As
125 Hevea seeds equal 1 lb., therefore 14,000 Hevea seeds
equal 1 cwt., and 280,000 Hevea seeds equal 1 ton. The
kernel, i.e., cotyledons, is 60 per cent, of the total, there-
fore 446,666 kernels equal 1 ton. Allowing 400 seeds per
tree, 466,666 seeds at 400 seeds (or 133 fruits) per tree
equal 1,166 trees, and 1,166 trees at 15 feet apart (193
per acre) equal six acres. This, at 12 a ton, means, say,
2 gross receipts per acre, or with freight, collecting, etc.,
deducted, say 1 or $8.57 per acre.
To ward against the possible attacks of parasitic
insects and spores of fungi that attack living plants, Mr.
Carruthers, the agricultural expert of the F.M.S., recom-
mends the reservation of protective belts of forest, usually
selecting high land for them. He recommended
to the Selangor Government, and that Government
has given effect to his recommendation, the reservation
of a belt sixteen miles long by two miles wide, running
from the Sungei Buloh south-east towards Klang River,
adjoining the Sungei Buloh Forest Reserve. The
Director hopes for an extension of this policy to other
States, where immediate action is not so necessary as in
Selangor. It is hoped that Mr. Carruthers will be able
to detect directly and dissipate any cause that might
lead to disaster in the industry that promises so well.
He is doing all he can to advance the prospects of rubber
in every way. He even made the sporting offer to the
London County Council to pave 500 yards of any street
in the metropolis with rubber, to demonstrate its properties
RAILWAY CONSTRUCTION 37
and its lasting abilities as a road coverer. At least,
rubber has, for the time, and a long time, it may be hoped,
given that agricultural product which it has been the
dream of Residents-General, of Residents, and the
planting community, should be a mainstay of the
country.
One of the leading features of the growth of economic
life in this part of the peninsula has been the rapidity
with which railways have been carried through, at no
expense practically, as they have been constructed out
of surplus revenue. Another matter for congratulation
is the freedom with which they are used by all classes,
and specially by the natives. There are now well over
400 miles in operation, stretching from Prai, in Pro-
vince Wellesley, across the harbour from Penang, to the
borders of Malacca. The dream of connecting Singapore
and Penang has now advanced beyond that stage, for
the F.M.S. is financing the line through Johore, and that
line is on the point of being opened. It should bring
many advantages to that State, for the jungle-covered
country along its route is likely to be opened to various
cultivations in the same manner that one observes in
travelling through the Native States over the existing
railway tracks. Land for rubber has already been taken
up along its course, and as rates here are probably less
than half what they are in the Native States, it should
attract capitalists.
The completion of the Johore line must again revive
the project of bridging the Johore Straits, and making
the line an unbroken one from the docks and wharves
at Tanjong Pagar, in Singapore, to the railway landing
on the Prye River, opposite Penang. The actual distance
across the Johore Straits is less than a mile, whilst the
depth of water is not considerable in any spot. Such
professional studies as have been made show no great
obstacles (an engineer would certainly not admit them
in any case). It would simply be a question of policy
and amount. The former being granted, the F.M.S,
38 THE FEDERATED MALAY STATES
would doubtless gratefully oblige by arranging to finance
the latter.
The trains seem always to be full. I would mention the
mail train which runs daily, either way, from both the
Kwala Lumpur and Prai Stations. It is truly a splendid
train for these parts, composed as it is of the finest and
heaviest cars, with the largest wheels run on any metre
gauge line in the world. The general manager may well
be proud of these trains, as he undoubtedly is of the new
Central workshops situated near Kwala Lumpur. They
are on the branch line that extends to Batu Caves.
Here all the shops have been concentrated ; locomotives
are put together and repaired and overhauled, whilst
the rolling stock, excepting wheels, axles, and steel
frames, is entirely constructed in the shops for the service
of the whole line. One can see here the progress that has
been made in the type of coach, from the small, short
four-wheel car to the magnificent long bogie carriages
that run on the mail trains. Here, too, bodies are built
to the chassis that are sent out from home for the motor
omnibuses that are becoming a feature in feeding the
railways. Several services have already been in-
augurated, and others are in contemplation. These bring
their reward in increased traffic. So also is recompense
brought in another way by the free passes that are given
over the lines to enable children to attend schools. The
railways are here recognised as more than mere machines
to produce a certain return on the actual capital that has
been laid out on them. They are instruments that may
be used advantageously to build up the country.
Personally, I think the fares should be reduced to all of
the public. In new countries, such as the F.M.S., railways
should occupy a position more in the light of roads, and
as means of opening out the country, which will yield
returns in other ways, rather than as interest-bearing
investments. The only reasons why a reduction of fares
is not brought about that I could ascertain was, the more
or less official one, that the railways are already worked
ROADS AND MOTORS 39
to almost their entire capacity, and that cheaper fares
would only lead to more passengers offering than could
be carried (the line is single, it must be remembered) ;
the unofficial reason seemed to be that, whilst the colony
(the Straits Settlements) remains under the financial
necessities that now beset it, there will be no loosening
of the purse-strings of any branch of revenue in the
States.
Roads are also receiving much attention. It is
interesting to note that a road has been made from
Kuantan (Pahang) to a point on the main road between
Raub and Kwala Lipis, which, it is hoped, may prove
to go through a mining district. It would then soon pay
for its cost and upkeep. Another new road across to the
eastward, via Gombok, to Bentong, will be a great saving
of time and distance over the Kwala Kubu-Raub route.
It would thence go to Jelebu in the Negri Sembilan, and
would permit of a round tour motor trip. Proceeding
from Kwala Lumpur the route would be via Gombok
to Bentong, thence to Jelebu and Seremban, and back
on the main road to the Federal capital. Generally
speaking, the roads throughout the States are in excellent
condition, and it is no wonder that motor cars are
popular. They are becoming very numerous, and are
always in request, whether for town use or throughout
the numerous country districts, where, when the rail-
way is some miles away, the roads are excellent. They
are eminently adapted for tropical countries, and render
it possible to do in one day what one would never dream
of attempting with even many horses in the stable. As
they become cheaper and less complicated, they are
bound to multiply in tropical latitudes.
One of the most general topics of conversation, from
which the keen edge has not yet entirely passed, is
afforded by the 2s. 4d. dollar. As I have already dealt
with this, however, in regard to the Straits, and as the
same arguments apply in the F.M.S., I need not allude
further to it here. From the many of these now valuable
40 THE FEDERATED MALAY STATES
coins that remain over actual requirements in the
swelling coffers of the States loans are judiciously made
to planters and miners, though with lessened tin
revenues a curb is now put on facilities. The State, in
fact, acts as a species of Hypothecary Bank, which
leads to the conclusion that it might be conducive to
the interests of all if a State Agricultural and Mining
Bank became a definite institution. It is not, of course,
so much big profits as the encouragement of industries
that would be the end in view.
It is a pleasure to observe the steps that are being
taken under the banner of education. There has been
a good deal accomplished in Perak. At Thaiping the
" King Edward VII. School " is an excellent institution.
But the most interesting experiment is afforded by the
Malay Residential School at Kwala Kangsar. The idea
is that of an English public school life, where the higher
class Malays may not only learn but become imbued
with some of the characteristics of public school life.
Except in the tint of their skin, the boys might be taken
for typical young English schoolboys.
Federation has advanced in several ways of late years
towards unnecessary duplication of the same thing in
each of the four States. It is certainly worth considera-
tion that the principle should be applied still further.
Why should there not be a Federal Council where Rulers,
the Resident-General, Residents, and others should meet
and decide on all such matters as pertain in common to
each of the States ? A sort of Parliament would then be
inaugurated, and each State would have a species of en-
larged County Council to attend to its own immediate
and particular concerns.
It is a pleasure, in conclusion, to render a tribute to
the staff generally that is carrying forward the work
of developing these States. They are an earnest,
hard-working set, who are certainly not overpaid in some
branches, though they have practically the same duties
that devolve on their confreres in India, where the
THE EUROPEAN STAFF 41
emoluments are on quite a different scale. They are
carrying forward a great work in a way that has fortunately
brought much respect, and responsibility, on British
Colonial Government. Mistakes, of course, occur, but
they are not serious in comparison with the work that
is accomplished. Each department does well, and
perhaps the by no means least efficient is that of the
Malay States Guides, the Military force of the country.
They are quartered at Thaiping, whilst one company is
loaned as a garrison to Penang. Pride must be felt that
the force has earned for itself the soubriquet of the
smartest corps in the Empire. It is composed of Sikhs.
CHAPTER III.
NORTH BORNEO.
Labuan The Coal Mine The Brunei Government Reorganisation
North Borneo Railway Tenom Sapong Jesselton Constabulary
Barracks Marudu Bay Tobacco Sandakan Tawao Silimpopon
Coal Mines General Progress of North Borneo Population a Great
Want.
ABOUT three days suffices to put the traveller into
Labuan from Singapore. The island, off the main route,
leads a quiet life marked by few great events, though
when I arrived it was looking forward to attaining again
a free port status on January 1st, 1907. Little change
greets the visitor when he lands, and the only bustle of
an active life to be found in the island is at Coal Point
in the north. It has had many governments, but not
the comicality that necessarily surrounded the proceed-
ings when Mr. Leys and Lieut. Hamilton ran the island
twenty years ago on a system that it pleased the Colonial
Office should be in force. It is now a portion of the
Government of the Straits Settlements, though that
Colony does not anticipate with pleasure having to
provide for any of its needs. Labuan hopes, however,
to get along on its own resources, though they are not
exactly extensive. The responsible official bears the
title of Colonial Secretary. He is, at the same time,
Resident of Brunei, and he has the somewhat onerous
task of running both places. Seeing that the island has
now become a part of the Straits Settlements, it certainly
seems reasonable that the title of the responsible officer
should be raised to that, say, of Resident Councillor.
COAL POINT MINE 45
There should also be a representative in the Legislative
Council at Singapore.
In its physical aspects Labuan presents practically
no change. A certain amount of land is devoted to padi
cultivation, and one wishes that it was more extensive.
There remains the same absence of jungle that has
characterised the island since the great fire of thirty
years ago. If it devastated the timber and dwellings,
it at least dissipated the fever that had made Labuan
a byword for malaria and unhealthiness previous to
its occurrence. Labuan possesses a name for its fruits,
but, unfortunately, they cannot be cultivated in greater
measure, owing to the absence of sufficiently frequent
communication to desirable markets. The coal deposit
constitutes Labuan's chief asset.
When I first visited the mines at the northern end of
the island they were being worked by the Oriental Coal
Company. Another visit found them in the hands of
was it the Central Borneo Company, the New Central
Borneo Company, or Labuan and Borneo, Limited ?
One need not stop to enquire now. They were pursued
by ill-luck, and money was lost at each step in the
attempt to bring successful working to them. The last
of the various companies to essay the task, Labuan and
Borneo, Limited, had conducted its operations with very
varying success. It finally suspended on the Bilangow
shaft caving in, and such a rush of water at 65 fathoms
that it swamped the whole proceedings, notwithstanding
the costly and extensive pumping machinery that was
erected at the mouth of the shaft, but was designed to
handle the water at a slightly greater depth. It was
never put in motion, and, like much else still scattered
about the place, tells of the sums that have been so
uselessly expended. After the disaster mentioned above
there was an interregnum of about eighteen months,
when the Borneo Company, Limited, the debenture
holders, bought in the old company and floated the
Labuan Coalfields Company, Limited.
44 NORTH BORNEO
The staff was reorganised, and a large and expensive
electrical installation commenced. This is used for
pumping and hauling work in addition to, or in alternation
with, the compressed air that also provides power and
assists ventilation. By the way, the Malay has proved
very adaptable to electric work, and has soon picked
up the winding of armatures and kindred things.
Another, by the way, is that ventilation has hitherto
been so excellent that as each miner went down for his
shift some of his impedimenta was certain to consist of
a packet of cigarettes and a box of matches. A slight
explosion quite recently the first of its kind may
necessitate more care in this respect. The new dynamos
also provide light as well as power. The general system
of work now is by inclines, rather than by vertical shafts.
The pumping necessary has been greatly concentrated.
Water is pumped to 100 feet below the surface, where
natural drainage is obtained by an adit that discharges
on the sea shore.
The staff consists of thirteen Europeans at the mines
and two hi the town office. There are usually 600 to
800 coolies at the mines, and from 100 to 150 in the
town. The actual miners are paid strictly by results,
and a man can work as many or as few hours a day as
his inclination or physical strength dictates. It is an
excellent method, and one that appeals to the commercial
instinct of the Chinaman, who does the actual mining.
The mines are situated 10 miles from Victoria, the
capital town of the island, if it deserves such designation.
Coal Point is connected with the harbour at Victoria
by a narrow gauge railway. It takes about one hour
from point to point. It remains to state that the coal
fetches 20s. per ton, say, $8.57 f.o.b. steamer along-
side wharf in Victoria Harbour. The coal seems to have
gained in reputation, and to be of better quality than the
previous product. One heard only poor accounts of it
formerly. This time I met several enthusiastic users
of it.
THE BRUNEI GOVERNMENT 45
The comedy that has for so long been in progress across
the Bay in the ancient capital of Brunei appears now to
be closed. The country has been gathered by the meshes
of British administration. With comparatively powerful
neighbours on either hand, and corruption within eating
deep into its vitals, the glories of the ancient kingdom
had departed. The Sultan was heavily in debt to his
Pangerans, and had no authority in their districts. Where
he failed to crush any vitality that still remained in a
kingdom that once possessed sway over nearly the whole
of the vast island of Borneo, it was accomplished by the
Brunei Rajahs. It is only the British Government that
has prevented the balance of the kingdom falling either
to the Rajah of Sarawak or to the British North Borneo
Company. That power has stepped in to administer its
affairs for the welfare, it is to be hoped, of those that
remain. No longer, it may be hoped, will a Rajah or
Pangeran be able to kill murder it is slaves without
the least notice being taken of such an occurrence by
the presumed authorities. Order is now being slowly
evolved, but neither the men nor the means exist in the
degree that one would like to see. It will be an interest-
ing study to watch what British machinery may ac-
complish. A sum has been borrowed from the overflowing
coffers of the Federated Malay States. This has sufficed
to clear the way of the " rights " of Pangerans and chiefs
granted whenever the Sultan found himself hard up
a condition that was chronic. The revenues are now
supposed to be collected by the Government for its own
purposes. One matter that badly needs attention is a
survey of the country and the registration of existing
owners. There are some foreigners who have negotiated for
concessions for planting. The allotment of the land, in
the absence of a survey is, however, a difficult matter,
and might easily lead to injustice to the natives.
It is only a stone's throw to North Borneo, as distances
go in this part of the world. Here are the 32,000 square
miles ruled by the Court of Directors of the (Chartered)
46 NORTH BORNEO
British North Borneo Company. My actual landing
in the company's territory was at the wharf at Weston,
whither I was conveyed by the courtesy of the Labuan
authorities by the Government launch Brunei. Arrange-
ments had been considerately made to pass me over the
railway from Weston to Tenom in the one day. The
first part of the journey was over the Weston-Beaufort
section. Traffic over this section is not very extensive,
and it is not necessary to run a service every day.
Weston as a port has not, and cannot, become of much
consequence, as it entirely lacks the requisites for shipping
of any size. Directly the line was made from Jesselton
to Beaufort the Weston-Beaufort section was naturally
relegated to an inferior position, by reason of want of
capabilities for shipping at the port. Only one company
is planting along the route before Beaufort is reached.
This is the Tenom Borneo Rubber Company, which has
cleared a considerable acreage. On the Tenom side of
Beaufort, and near that town, Mr. Halliday has made
considerable progress with clearing and planting rubber.
At Beaufort we ferried across the Padas practically
everything has now been transferred to the right bank
and took our seats in the train that was waiting to start
for Tenom up the far-famed Penotal Gorge. The distance
is some 30 miles to Tenom, and the railway traverses
the valley, or gorge, for the most part, of the wild Padas
River. The stream, though it came from the interior
hinterland, provided no means of access thereto. Nothing
can live in its waters whether in flood or at the lowest
normal. There is the story of bundles of rattans thrown
in at Tenom which were never seen again. And there is
the more gruesome tale of thirty adventurous Dyaks
who came from Sarawak, built their boats locally, and
-essayed the task of descent. Nothing was ever seen again
of either the men or their craft. The journey up takes
some three hours, and its picturesqueness all the way
is something that can never be forgotten. You have the
winding gorge, the wild, splashing, rushing Padas, the
47
great masses of driftwood, the echo of the whistle of the
locomotive as it starts on, perhaps, one of the worst
inclines, which are 1 in 40, the smoke it makes hanging
in the defiles, an occasional splash of red colour amongst
the evergreen jungle growth, and you have the great cut-
ting, over 100 feet high in parts, where the railway has
hewn for itself a ledge in the hard rock. Perchance a few
monkeys or wild pigs may be seen on the occasional spots
of sandy foreshore, and perchance you may see a gallant
porker swimming across the turbulent waters. Above
all, one must admire the energy and perseverance that
kept on doggedly year by year until the last rock was
blasted, and, emerging from the only tunnelled portion,
you pass the gates of the gorge. Here the river is
only 70 feet across, and perhaps as many feet deep.
The Tenom country opens before you the land of
promise one might almost term it. The line proceeds
for another mile over an embankment, through swamp,
to New Tenom, or rather Tenom, as it is called. Old
Tenom will continue to be officially known as Fort Birch.
We stayed at railhead for the night in a new Rest House
that provides four rooms and the dining-room. The
building was to have been more pretentious, but the
contractor unfortunately did not play the game, and the
Resident, Mr. Fraser, was left to do his best with only a
limited amount at his disposal. Tenom is extremely
agreeably situated, and it possesses the best railway
station and goods shed on the line. The doors of the
latter had just been painted, and the Chinese artist had
put up a quaint notice, " Paint so wet," to preserve
his labours from spoliation. Near by railway quarters
are erected, which can be used as a sanatorium for rail-
way men, for Tenom possesses an agreeable climate
with very cool nights for a tropical place. A fair number
of Chinese shops have already been opened. On the out-
skirts of the town, farther up the valley for a considerable
distance, the Chinese market gardener was in evidence,
and considerable tracts along the bridle path that leads
48 NORTH BORNEO
to Kaningow and Tambunan, in the interior, were under
cultivation.
The following day I proceeded to Sapong to visit the
Sapong Rubber and Tobacco Company's estates. You
cross the Padas River and proceed along some five miles
of estate road. The company possesses the magnificent
acreage of 20,000, which leaves room for no end of
possibilities. At present tobacco and rubber are the
products, with catch crops of ground-nuts and chilies.
The land is exceptionally fertile, and consists of a series
of parallel valleys with fine plateaux, or table-lands,
between, of no great height. These table-lands are from
half-a-mile to a mile broad, parallel to the valleys. The
latter constitute ideal land for the cultivation of tobacco,
and the table-lands for rubber. A portion of the new
ground cultivated was planted twice over with tobacco
in the season of 1906, and this gave the magnificent return
of 18 piculs per field. The other fields were planted over
for the third year in succession, besides which a catch
crop of ground-nuts was also taken off in this third year.
This land, cultivated, that is, for three successive years,
gave even then a return of 11| piculs per field. I do not
know what Sumatra people would think of this, but I
believe there is no land in the tobacco districts there that
could produce such results. The rubber planted already
had not yet reached any great age, but looked well.
Much is expected of it in the future, and its growth
and condition certainly promised to uphold the
expectation.
Another by-product is the cultivation of ground-nuts.
This may yield little or no profit at all, but it has one
advantage that it hi some way tames the too prolific soil,
and it keeps the ground clean, where the rubber is culti-
vated, at no charge on the finances of the estate. Finally,
as regards Sapong, and, indeed, any other estates that
are, or may be, opened in the Tenom district, I
may point to the advantage that the railway is in
working the estate. Cost of transport and time,
MANAGER'S HOUSE, TOBACCO ESTATE, SAPONG.
TOBACCO FIELDS, SAPONG
[49]
RUNAWAY COOLIES 49
though still considerable, have been, by its means,
greatly modified.
Another estate in the Tenom district, thirteen miles
out on the bridle path towards Kaningow, is Malalap,
belonging to the Manchester North Borneo Rubber Co.
taken over from the New London and Amsterdam
Borneo Tobacco Co. A considerable area had been planted
up. The difficulty of progress here rests in the labour
problem and the troubles involved in obtaining coolies.
Arrangements had been made to obtain a supply from
Java, which should greatly assist. The estate now being
opened up extends to 4,000 acres, that stretch in a
narrow line nearly to Tenom. Other 4,000 acres are
on the other side of the Pankalan River, and are believed
to be even finer land than the magnificent soil on the
presently - opened portion of the Malalap estate. A
good deal of trouble has been encountered through the
ravages of deer, who, fortunately, do not destroy the young
trees, but they eat off the top shoot (which might please
the devotees of topping, though scarcely at so immature
a stage), and retard the growth of the trees by at least
two months. Both this estate and the Sapong Company
have difficulties with runaways, but some experiences
at the hands of the Muruts may possibly cause the
coolies to alter their opinions. Two Javanese had
recently lost their lives to the natives, whilst in a case
of twelve runaways the Muruts despoiled them of their
good clothes and took all the funds they possessed.
One man who had only just joined was shorn of $40,
and others of lesser sums. Altogether, with the $3 per
head reward given the Muruts for their recapture, these
gentry are believed to have made the no inconsiderable
haul, for them, of about $200 on the transaction.
Returning by the railway I passed down its whole
length. I have already spoken of the gorge section of
30 miles down to Beaufort. The other 60 miles from
Beaufort to Jesselton do not call for any special remark.
The line passes several considerable kampongs, and will,
50 NORTH BORNEO
doubtless, in time be the means of collecting population
and introducing industries.
The total length of mileage of railways is at present
120, consisting of the 90 miles from Jesselton to Tenom,
and 20 miles on the Weston-Beaufort section; the
remaining ten comprise small branches. On the
Jesselton-Tenom section there is scheduled to run one
train either way per diem. It is timed to start at 8 a.m.
from each terminus and to arrive at 3 p.m., but landslips,
fallen trees, the necessity of more ballast work, which
heavy rains had found weak spots in, sometimes mar
the regularity of the time-table. Still there remains
the solid advantage that the line does, indubitably, make
planting possible in the rich district that opens out
beyond Tenom. Generally speaking, as much has been
done as could possibly be expected in view of the com-
paratively modest sum that has been expended per mile.
One matter should receive early attention. The line
should be re-laid with heavier rails.
Regarding extensions, a survey expedition has been
conducted from Tenom to Tawao, in Cowie Harbour, on
the east coast. The report is that such a line is considered
feasible (no engineer would ever admit an impossibility),
but that it would be expensive. The interior was found
to be a broken mass of hills, and a line would probably
require an expenditure of some 5,000 to 6,000 a mile.
An extension of 40 miles beyond Tenom up the Sook
Valley, which would certainly pass through a rich agri-
cultural country, has been decided on when funds
permit. If the line towards Tawao must necessarily
not be looked for for some time, more is hoped of the
Sandakan-Kudat, or rather Marudu Bay, trace, the line
probably coming to the bay somewhere about Tanjong
Batu. Messrs. Pauling's engineers, who conducted the
Tenom-Tawao survey, have carried out a trace. Great
changes might be anticipated from such a line, which
would alter the position of Sandakan in an advantageously
material degree. It would open out a lot of rich
GAYA BAY 51
country, and pass near the iron mines, believed to be
rich, presumably rendering it possible that they could be
worked on a payable scale.
Rather more than a mile short of Jesselton, coming down
the line, are the fine barracks of the North Borneo Con-
stabulary, which is alike the police and army of North
Borneo. This excellent little force is kept in admirable trim
by the commandant, Major Harrington, and the ever-genial
sub-commandant, Captain W. Raffles Flint. Here, in
a fine space of ground, weU laid out for the purpose for
which it is intended, and with a rifle range just over the
hiUs, are the headquarters of the force. By the change
from Sandakan the main establishment is now more
centrally situated in the territory, should its services
be required anywhere. Arrived at Jesselton, the railway
premises, railway shops, post and telegraph offices, shops,
market, customs house, with residences on the hills above,
soon show what development the place has undergone.
Beyond the building that serves as a railway station the
line is carried on down to the wharf where there is water
up to 26 feet. The fine bay formed by Gaya Island, and
the others to the north that assist in forming the safe
anchorage of Gaya Bay, is well adapted to carry the
wealth of shipping that well-wishers dream may some
day ride on its waters. Jesselton has the capabilities
of being a considerable port, and is admirably situated
geographically to fit such a purpose. The dream also
extends to its being a naval base, but the Admiralty so
far refuses to dance to the tune that is piped to it.
If this point is reached, doubtless a considerable tract
of shallow water wih 1 be filled in and land reclaimed.
A convenient hill is at hand, and it would only be a little
coolie work to make more flat land ashore, at the base of
the pier, and fill up the foreshore. This is shallow for
some distance till it shelves suddenly to deep water.
There a quay wall would permit vessels to lie in almost
any weather that is experienced in the bay. Amongst
other new buildings in Jesselton I should not omit
E2
52 NORTH BORNEO
to mention the new Government House. It stands on
a fine eminence on a range of hills opposite to the
Constabulary barracks, commands a fine view, and is a
more pretentious domain for the Governor than North
Borneo has yet possessed.
After somewhat rough handling by the north-east
monsoon, the Petrel, the Government yacht, which
proved at least a good sea boat in the weather we en-
countered, brought us to Kudat. The township has
been reconstructed since it was burned out some time
since, and presents an improved appearance. Near to
a fair quantity of good fruit is produced, which, with
more frequent communications, could be made into a
good trade. Kudat acts as a depot and shipping port for
the estates at the head of Marudu Bay.
The recent heavy rains and the deluges that still
continued, necessitated my schedule being altered, and
only permitted of a partial visit to the manganese
mines, and then on to the Ranau Estate of the New
London Borneo Tobacco Co. Even then I could do
little more than reach the manager's bungalow, after
seeing a flooded tropical river, and learning that bridges
were down, the hospital only to be approached over a
flooded area, and communications generally thrown
out. One could, however, look over the fermenting
shed, with its hundreds of coolies sorting the leaves into
their various grades. At the office, looking through
some of the accounts of different coolies, I regretted to
note the too frequent entry of $10 against a man for
fine as a runaway to the manganese mines, attracted by
the high pay offered. They were returned to fulfil the
contracts they had already entered on. The general
system is to keep the coolies contented, and, if possible,
that they should make money, and consequently re-
engage, or at least return to China with a good name for
the estate, so that others would be induced to come.
That the men seemed generally contented may be gathered
from the fact that on one of the estates where the surplus
^
m '-"-
^FI
SANDAKAN 53
had run, anything from $10 to $60 per man at the end
of the year, after the coolie had discharged all disburse-
ments, out of 225 men who had completed their contracts,
and thus were out of debt and free to leave, 217 re-
engaged.
Returning down the flooded Ranau, I regained the
Petrel, and reached Kudat the same evening, leaving at
an early hour next morning for Sandakan, an hour that
put us at the Maliwali Channel at the proper time.
Neptune was still angry, and the north-east monsoon
treated us to somewhat of a bucketing until past Balhalla
Island and close to the pier at Sandakan. There we
tied up in a smother of rain, that made it difficult to see
anything more than a few yards away. Only the gaol,
an imposing building, stood out at all clearly. It is
perhaps worth noting, to show how it does rain at times
in the tropics, that the total rainfall for that month
reached 29 inches, and that on one day no less than
7.85 inches fell in the twenty-four hours.
Of Sandakan, the capital of the British North
Borneo territory, one may say that the town seems fairly
prosperous and busy, even if it has not greatly expanded.
It has grown somewhat in some directions, and along
the road to the racecourse numerous squatters and market
gardeners are well in evidence. I was glad to remark
the improvement that had taken place in the General
Hospital, and to learn that provision was made to com-
plete the transformation. A great improvement has
been wrought by the present Governor, Mr. E. P. Gueritz,
in the metalling of the roads. That the work had been
well done was evidenced by the way in which they had
stood the abnormally heavy rains. Another improve-
ment to note was the entire disappearance of attap roofs
within the town, thus eliminating one considerable fire
danger. The wharf, whose dilapidated condition forced
remark on my last visit, had been repaired, and is in fair
order. It is intended to double its capacity. Not far
away the China-Borneo Company has constructed a slip-
54 NORTH BORNEO
way where vessels up to 600 tons burthen can be hauled
up and the necessary repairs, etc., done at the workshops.
The same company's sawmills are likewise busily at work
higher up the bay, as also apparently were the adjoining
mills of the North Borneo Trading Company. If I
mention that the cutch factory is still active, I shall
have noted the leading existing industries. There
is a new one about to open out, it is hoped, and Sandakan
may become a coaling and coal export port. The Cowie
Harbour Coal Company have secured a land frontage
of 300 feet on the harbour adjacent to the present
Government wharf, farther up the bay. A wharf, or
rather it is a storage platform, has been constructed where
some 600 tons can be stored. This is only temporary,
as additional room, probably on land, would be required
if the trade develops. This land adjoins what will,
doubtless, be the terminus of the railway, if the line to
Kudat is constructed. Like the railway ground, a little
reclamation is needed, but the water is shallow and the
work very simple. I had the opportunity of steaming
up the fine bay of Sandakan, which has often been likened
to Sydney Bay, on my way to see the Sikong Estate of
the North Borneo Trading Company. The estate is
situated in the extreme south-west corner of the bay on
the river from which it takes its name. Here the
manager was able to show me, with some pride, the
oldest rubber estate in Borneo.
After a most agreeable sojourn in Sandakan, the
good ship Petrel, the Government yacht, took its way
to Tawao. The route was via Simporna, where we
anchored for the night, through the Trusan Treacher
and past the extensive beche de mer fishing grounds.
Here hundreds of boats may be seen at low water.
Their crews were hunting the slug, so delectable to
Chinese tastes. Much of the route before reaching the
trusan (passage) was through waters that greatly
resembled the far-famed Inland Sea of Japan, and then
amongst coral atolls. The former resemblance was
SILIMPOPON COAL 55
striking, though tropical growths were more luxuriant
here than in the more northern latitudes. We were now
sailing in smooth seas, whose waters, often land-locked,
resembled lakes in their quietness. And withal we
seemed to have left the rain behind, and to have again a
glimpse of the sun. One is apt at times, in the tropics,
to rail at its too fierce rays, but it is astonishing how
you can welcome it here, as at home, if you have for any
time been deprived of its light and warmth.
An hour ashore at Tawao sufficed to see all that there
was to view in the place. We then steamed on up the
magnificent Cowie Harbour, flanked on one side by the
mainland and on the other by Sebatik Island. It is
certainly a very fine sheet of water, that seems to offer
no end of possibilities from its extent, the resources of
the country, and the facilities given by the streams running
into the bay. Its future capabilities would seem likely
to perpetuate the memory of the man whose name it
bears, and whose efforts have been so persistent for the
development of the country. Its trade possibilities are,
however, almost neglected at present, and lead one to
think that more attention given to the east coast might
repay the expenditure. It is from this part of the country
from Lahad Datu, Simporna, and Tawao that much
of the export trade of Borneo is derived. Would this
not expand under certain stimulation ?
Leaving Tawao, we proceeded for the site of the mines
of the Cowie Harbour Coal Company on the Silimpopon
River. The first thing that strikes one in the working
of the mine is the great difficulty entailed by the labour
question. At present there are employed a mixed lot
of Chinese, Indians, Japanese, Sulus, and indigenous
dwellers. The actual miners are either Chinese or Malays.
Up to the present it is practicaUy all development work
that has been carried on, but the company is increasing
its output and deliveries month by month. The area
now proved by diamond bores will certainly yield about
7,000,000 tons, and it is a fair assumption that a large
56 NORTH BORNEO
quantity of coal exists to the deep of the line of boreholes
which extend over a distance of three miles east to west,
along the strike of the seam.
Regarding the important question of transport, the
company has constructed a 2 feet tramway from the
mines to Silimpopon River, where it is possible to load
lighters, which are towed to Sandakan, avoiding further
handling. It is proposed eventually to carry the line
nearer to the Kwala (river mouth), where ocean-going
steamers can load direct. A depot is also being con-
structed on Sebatik Island (half of which is British and
half Dutch), where steamers up to 28 feet draught can
load. As to the characteristics of the coal, it has been
tried on ocean steamers, and has proved superior in
steaming qualities to Japanese or Bengal coals. In general
it exhibits similar qualities to Newcastle coal at home,
the ultimate analysis giving 77 per cent, carbon. The
coal makes excellent hard shiny coke, one ton of coal
making 60 per cent, coke, which is a high percentage.
As concerns the general progress of North Borneo, the
figures of revenue and expenditure have slowly advanced,
and are satisfactory from this point of view, though well-
wishers may be excused for hoping for more rapid ad-
vances. The men who are carrying out the problem
one that has been so frequently worked out during
the Colonial history of Great Britain are, in the main,
a set of able and willing officers, doing their work with
much zeal, and imbued with a spirit to push forward
the task in hand. Their pay is in the general way small.
It is perhaps remarkable that North Borneo is able to
attract men of the necessary calibre at all, on the pay
offered. With improved revenues and development of
the country, it is to be hoped that the earnest and de-
voted efforts of the whole service, from the Governor
downwards, will be recognised by the Court as soon as
circumstances permit.
North Borneo has a soil and climate singularly blessed
in many ways. Its soil will cultivate most tropical
SCANTY POPULATION 57
products, whilst, like the Malay Peninsula, it is singularly
free from devastating storms and great natural disturb-
ances. The climate is not by any means bad for a
tropical country situated close on the line of the equator.
The Governing Chartered Company has as an asset a
country that stands at no very big figure in the balance
sheet, a round sum in liquid investments, and such things
as Government buildings and works. The territory is
undoubtedly capable of a good deal of development,
but its capabilities require to be more thoroughly known,
whilst population is particularly required. This is a
want that is experienced over the whole island of
Borneo. The one great matter as it has always been
is this question of labour supply, which North Borneo
has stood quite as much in need of as capital. Popula-
tion is still meagre. Chinese come in in fair numbers,
either as free men or contract coolies for estates.
I was glad to learn that arrangements had been made
with the authorities of Netherlands India for Javanese
immigration. These men are wanted for the rapid
extension of rubber planting, for mining, and in other
ways. North Borneo should be the gainer by this influx,
for if capital finds a ready labour supply it is likely to be
more easily attracted. One terror to capital has been
removed by the fixity of Straits exchange, which measure
North Borneo has perforce to follow.
CHAPTER IV.
GLIMPSES OF NETHERLANDS INDIA.
A Launch Cruise Breakdown of Engines Connection lost at
Boelongan A Sojourn on Tarakan Island Oil Production Samarinda
Balik Pappan Its Great Development Oil Refinery General
Growth in a Decade Pulo Laut Java Sourabaya Dutch Colonial
Methods Sumatra The Tobacco Industry Pulo Way Its
Possibilities.
WHEN I left the Tawao district of British North Borneo,
I was bound for Boelongan, in Dutch East Borneo.
Normally, and as a regular thing, there is no communi-
cation between the two districts except such as may be
afforded by a native boat, trading amongst the labyrinth
of islands, rivers, and their kwalas (mouths). Through
the courtesy of the managing director of the British
North Borneo Company, the company's launch Chantek,
stationed in Tawao waters, was placed at my disposal, in
which to make the passage either to Tarakan or Boe-
longan. At either of these places connection could be made
with the steamers of the Konigklijke Packetvaart Co,
This company's services embrace the whole of Netherlands
India, touching, on one route or another, almost any port
from Acheen in the north of Sumatra to all ports in Java,
and as far afield as Celebes, the Minahassa, and down to
New Guinea. The launch was called the Chantek, which
in Malay is " pretty," or " beautiful." She was a hefty
little craft, stiff, doubtless, if she met any weather, which
we were not called on to encounter, for our route was in the
confined waters of small inland seas, or through trusans,
which are passages connecting two rivers, or arms of the
ON THE LAUNCH CHANTER 59
sea, and in the rivers themselves. Chantek, meaning
" pretty," naturally recalls the saying of " Handsome is
that handsome does." Well, whilst the good launch
was comely to look upon, she unfortunately did not
fulfil the second part of the statement quoted, inasmuch
as we failed to connect with the steamer at Boelongan.
We cleared out from the waters of Cowie Harbour in
the afternoon, and skirting the end of Sebatik Island,
we coasted along the island of Noenokan, a considerable
island also, and unfortunately too frequently a refuge
for runaway coolies from North Borneo. Indeed, we
had on board two police attending the District Officer
of Tawao, who was likewise proceeding to Boelongan to
interview the Controleur on the business bf getting some
runaways restored to the labour for which they had
secured considerable advances. The first evening found
us at anchor at the south-west end of Noenokan.
Though we were off at 5.15 a.m. next morning, my
view of things was shortly after considerably changed,
when I learned from the serang of the launch that it
would not be possible to reach Tarakan that day. The
rest of the crew on the launch, I may say, consisted of
three sailors, natives, and three Chinese as engineer
and engine-room staff. I may also say that the Dutch
mail steamer was appointed to leave Tarakan that day,
but there was always the alternative of getting her at
Boelongan the following day. Consequently there seemed
as yet no cause for anxiety. Soon after starting, we had
to stop, as there was insufficient water for our 6 feet
draft at the entrance to the trusan known as Sweerts
Pass. Passing this obstacle, we were treated to many
miles of Nipa palm that valuable roofing material for
this part of the world with an occasional bit of jungle
close at hand. We had a long steam against a strong
ebb tide in the Simajang River, until we struck the main
Sibuco stream, of which it was an arm, and thereafter
made better progress with the ebb in our favour. As
we had not found the Sibuco River in flood, as recent
60 GLIMPSES OF NETHERLANDS INDIA
rains had given too much reason to anticipate, it seemed
Tarakan was possible by the evening. About 3 p.m.
an ominous thump in the engine-room indicated, however,
that all was not quite right in that department. A brief
examination showed that something was wrong with the
plunger of the injector pump. The No. 1 was soon busy,
with the assistance of his two aides, but when a couple of
hours had passed and the part had not been replaced,
it was evident we would find our night's anchorage
it is impossible to twist and turn amongst all the rivers
and trusans at night unless you have spent your life at
it where we were, abreast of Tanah Merah Island.
At dusk the repairs were effected, and we hoped for the
best. It may, perhaps, be noted that we had not seen
the sign of a single habitation all day, and only one native
prau (boat) passed us near sunset. Apart from the three
persons in it, the only living things we had seen were
two storks and one monkey ; but it was a revelation of
wealth in nipa palm, which graceful and useful article
attracted one at first, but grew strangely monotonous as
mile on mile supervened. The waters we traversed were
mainly yellowish at sea, and brown, stained from buckau
(mangrove), in the rivers.
The hour of five saw us under weigh next morning,
but we had only progressed for half an hour when we pro-
ceeded to sit deliberately on the mud and wait for the
water to rise at the entrance to a trusan. The entrance
was veritably nothing more than a rabbit-hole amongst
the nipa, which the launch had almost to part to make
an opening for herself. Thousands of crawling fish,
endowed with a couple of feet, scampered about on
the mud foreshore for all the world like so many rabbits
in their movements, whilst snipe seemed plentiful, besides
an occasional glimpse of a kingfisher, not only the small
species we know, but also magnificent specimens as large
as pigeons. A long course more of nipa, and then into
another inland sea, and shortly the two red tanks of the
Konigklijke Nederlandsche Petroleum Maatschappij,
DERRICK AT TARAKAtf.
[60]
A LOST CONNECTION 61
situated at Lingkas, on the island of Tarakan, came into
view. They form so excellent a landmark, and are
visible for so considerable a distance, that it was not till
near noon that we anchored abreast of them. Obtaining
a native to act as pilot, we proceeded up the adjacent
Pamoesiang River, and at the pankalan (landing place)
met the general manager of the oil works. From him we
learned that our vessel, some hours behind time, had only
left Tarakan that morning instead of the previous day.
Hope need not be abandoned, therefore, and we turned
to make the best of our way to Boelongan. Nearly three
hours across the inland sea brought us to one of the
mouths of the Boelongan River. We passed up this some
way amidst the eternal nipa, and through one or two
trusans, till we reached one of the main arms which
branches from the river just below the town of Boelongan.
Despite every effort on the part of the serang, it was
impossible to see after 7.30 p.m., though we were only
three tanjongs distant from Boelongan. Natives seem
to measure their distances on rivers by tanjongs, which
are practically either small peninsulas or marking bends,
and as these tropical rivers seem to consist of eternal
curves, perhaps the method of reckoning is not un-
satisfactory. A tanjong may, however, indicate one mile
or several.
At the first pinch of daylight we were moving again,
and made Boelongan a little before 7 a.m., to find that
the steamer we wanted had sailed at 5.30 ! We had missed
her by little more than an hour. No words sufficed to
deal with the situation it had to be accepted. It was
not like missing a train, and waiting for an hour or two
for the next. Here was a case of weeks at least. Truly
" the best laid schemes of men and mice gang oft agley."
Mine had for the time gone very much agley. We had
not encountered the steamer on the way out because she
had made for the sea by another arm, proceeding, say,
practically due East, and, then somewhat South. We
were coming from the East, but along the northward
62 GLIMPSES OF NETHERLANDS INDIA
of the two arms. These met only half a mile below
Boelongan, and afforded no means of seeing or intercept-
ing her with dense jungle between. Time seemed of no
moment, and as the engineer had now a check valve
leaking, or something of the sort, it was decided to remain
a day and let the engines be overhauled before the return
run was made. Besides coal, which was got from a fine-
looking old Arab and was cheap, though the No. 1 in the
engine-room said it was very bad, stores and provisions
were needed.
Boelongan seems to do a fair trade despite the heavy
duties and calls made by the Sultan on the people, which
are calculated to crush any industry. A good deal of
the produce really comes from North Borneo territory,
for, whilst the mouths of the rivers hereabouts are in
Dutch territory, the upper waters are all in North Borneo.
The town possesses a fair pier, consists of a single street
skirting the river, with occasionally houses on either
side, and has some fairly good Chinese stores. Dutch
authority is represented by a controleur, our equivalent
of which rank is probably district officer.
An early start was made again the following morning,
and Tarakan was reached at 6.30 p.m. Putting our
baggage on a lighter moored off the shore, we said good-bye
to the Chantek at 6 a.m. next morning. Later we came
round from Lingkas, which is the port of shipment for
Tarakan, to the Pamoesiang River. Twenty minutes
later we were at the spot known by that name, where the
oil wells are situated. Here we were for a good fort-
night. I can only say we were most hospitably received
by the general manager of the Royal Dutch Oil Company,
who kindly placed a bungalow at our disposal, and fitted
us out with all the necessaries we needed or even desired.
The community here only consists of six white men,
of whom four are Dutch and two German. Two
Canadian borers had recently left. Amongst this small
community life was made so very pleasant for a fort-
night that one will not readily forget the experience.
A FLOWING OIL WELL 63
The island of Tarakan lies off the east coast of Borneo,
and was formerly exploited by Mr. McDonald Cameron,
sometime M.P. for Glasgow, who spent several years in the
island. Certain success rewarded his efforts in seeking
oil, but bad luck pursued him, and a fire did great damage
when he had got his oil. The concession was taken over
by the Royal Dutch Petroleum Company, who now work
the sources as part of the vast network of oil interests
they have in this part of the world. As the original
concessionaires get a royalty of a half guilder per ton of
oil produced, and as the oil is being procured in good
quantities, they are doubtless not doing so badly after all
with their bargain. The number of guilders due in some
twenty-four hours is not to be despised. For the rest,
one is here quite cut off from the world. You are away
from the cable, and naturally there is no morning paper.
It is, whether you will or not, a case of " the world
forgetting, by the world forgot." It is a place that
abounds in more species of insects than I had ever before
suspected were in existence.
The shipping port of Tarakan is known as Lingkas,
where you will find one or two employes of the company
and a handful of coolies, besides two 4,000 ton storage
tanks for the oil. This commodity is produced at
Pamoesiang, about four to five kilometres inland, and
can be reached by walking along the route of the
pipe line through the jungle, or by sea to the river
from which Pamoesiang takes its name. There the
manager and his five assistants (engineers, accountant,
and drillers) reside. Three wells produce oil at preseut.
Owing, however, to the fact that at the time of my
visit the pipe line connection used to fill the steamers
at Lingkas had been broken, one only was flowing, the
other two being shut down. A proper pier was about
to be erected at Lingkas, along which the pipe line con-
nection between the storage tanks and the vessels loading
will be laid. The one well flowing produces roughly in
the neighbourhood of 100 tons of oil a day sometimes
64 GLIMPSES OF NETHERLANDS INDIA
more and sometimes less. It is a very valuable kind of
light oil. Boring operations were also suspended, as it
was not desired to get another strike until the means of
getting it away to a distillery were available. There is
no refinery at Tarakan, and until the produce far exceeds
what it looks like now, it would not pay to erect one.
At present temporary storage is provided at Pamoesiang
in wooden vats, holding possibly 100 tons each, pending
the oil being pumped daily to Lingkas for storage and ship-
ment. The intention was to erect five tanks of 500 tons
capacity each ; two were being rapidly put together
bv a gang of Chinamen under contract at the time of my
visit. Owing, doubtless, in part, to an excellent supply
of pure water, the general health of the community is
very good. The water is got from the river well away
from any native kampong, and is not contaminated. The
labour force is some 150 men, consisting of Chinese,
Javanese, Buginese, and others. The few police come
from Menado and profess Christianity.
After three weeks the steamer took me via Samarinda,
the capital of the Koetei in East Borneo, to Balik
Papan. Samarinda is situated on the main Koetei, or
Mahakam River, as it is known to the natives, some
five to six hours' steam from the sea. It is here the
Dutch Assistant Resident has his office. The position
of the town is very picturesque, the river here opening
out into almost a lake, flanked with hills. Indeed,
looking down the river, it appears at first sight as though
there was no outlet at all in that direction. The place
is hot and mosquito-ridden, but not particularly
unhealthy. The main bulk of the native population
lives on the right bank of the river, where the Sultan
likewise has a palace, though he is not often there, his
main residence being at Tengaron, some hours' steam
up the river. The few Europeans, the Luitnant China,
and the bulk of his countrymen live on the left bank.
The river forms the main artery of communication right
through the country. It is certainly a grand stream,
CAPITAL AND LABOUR WANTED 65
with deep water close up to the banks. A depth of 20
to 25 feet right up to the shore is quite usual at Samarinda.
It is the main and, indeed, the only means of communi-
cation through the country. What is required are roads
branching from it to act as feeders. Capital and labour
are likewise both required to develop the country, the
latter quite as urgently as the former, for the native is,
generally speaking, not a hardworking man, and as life
comes pretty easily to him he is called on for comparatively
little effort. If the two elements required are both forth-
coming, there are plenty of possibilities in the country
itself. The only European industry is the saw-mill.
It is owned and worked by a Scotsman, and as it has
been enlarged, and a slip for repairing vessels added, the
inference is that it is prospering. The timber worked
here is a softish red wood, used very extensively in houses
and other buildings. The timber is floated down river
from up-country in big rafts, with rottans and other
jungle produce piled up above. Coffee used to be fairly
extensively grown in the district both by Europeans and
natives, but it is now practically killed out. I am sorry
to record also that the coal mine of the East Borneo
Company at Batu Panggil, a short distance above
Samarinda, has not proved successful, and has ceased
operations after losing a good deal of capital. That
Samarinda carries on a fair trade with Macassar is
evidenced by a considerable fleet of praus. These are
curious vessels with high sterns and long bowsprits, set
at about an angle of 45 to the hull. They are almost
invariably painted a brightish blue, and are picturesque
and moderately seaworthy.
When I saw the first bench of stills lighted at Balik
Papan, some seven years before, it seemed one was
assisting at an adventure that would lead to a great
industry. That has now been fulfilled in a large measure,
but, considerable as the figures have now become, they
still remain only in the development stage. Enough
has now been accomplished to make the name of Borneo
66 GLIMPSES OF NETHERLANDS INDIA
oil known throughout the civilised world. It has been
achieved almost entirely by British capital. It was the
firm of M. Samuel & Co., of London, who created the
Shell Transport and Trading Company. This company
secured from Dutch concessionaires the rights over a
considerable area of country in the Koetei district of East
Borneo. When the possibilities of the fields had been
somewhat exploited, and their capabilities demonstrated
sufficiently to make it probably successful, a company was
formed in accordance with Dutch laws, which require
that only Dutch subjects or companies can hold and work
concessions in Netherlands India. Thus the Neder-
landsch Indische Industrie en Handels Maatschappij
was formed, but it was British enterprise and energy, and
hitherto British capital, that has so far been employed.
Now that the Shell Company and the Royal Dutch
Petroleum Company have amalgamated their interests,
and the Dutch Company has become a holder of a fourth
of the ordinary capital of the Shell Company, the Dutch
Company is more concerned with the undertaking. I may,
perhaps, remark here that the Royal Dutch has recently
been at work in the neighbouring district of Sanga Sanga,
having taken over the concession of the East Borneo Coal
Company as regards oil. That company possessed an
extensive area on both sides of the Mahakam, or Koetei
River. I may, perhaps, also note, as the East Coast of
Borneo is not exactly well-trodden ground, and that it
is pardonable that comparatively little is known of it by
the ordinary public, that Balik Papan, the headquarters of
the Shell Company, is on a bay that may or may not be
correctly marked on atlases of some repute. The bay
lies to the north of the town of Passir, about midway
along the coast from that town to the delta of the Koetei
River, or Mahakam, as is its native name. This bay is
near the southern boundary of the territory, within
which the rights are granted to search for and gain
minerals. The northern boundary is about the Mahakam
River, and the concession runs some miles into the
A VALUABLE WELL 67
interior and up the river. Its square mileage is, therefore,
very considerable. The term of the concessions is for
sixty-five years, and at the expiry of that period it can
either be renewed, or the Sultan has the right to take
over the works, buildings, etc., at a valuation. The
conditions are not very onerous. Half a guilder a ton
has to be paid to the Sultan for all oil shipped, and the
original concessionaire, besides the lump sum paid in
cash, likewise receives the same amount from the
company. There is good water in the bay and good
anchorage for the considerable fleet of steamers which
is often assembled.
The first thing that struck one on visiting the place
is the largely increased number of tanks for storage.
Painted red, with usually a white top, they are decidedly
conspicuous objects as you enter the bay, even if they
are not ornamental. Three new piers had been con-
structed, with a depth of 30 feet at low water springs,
and instead of the two or three pipe lines to load the
steamers from the storage tanks you may now count
eight or nine that will load 250 tons per hour a rate
that soon fills up even a steamer of great capacity. The
tall attap-roofed derricks, indicating either a well already
opened, or one in process of being bored, have practically
disappeared. Only one remains, and that covers a
well which, though its production is only two or three
tons per day, is the most valuable well of the company.
The quality of its oil is far beyond that of any other
well on the concession, and the fact that such oil exists
at Balik Papan is a happy augury of what may yet be
found. Even the desire to get larger supplies of the
superior Balik Papan oil had to give way to the necessity
for increased storage, and now it is impossible to drill
more wells at Balik Papan without exposing the whole
of the stocks and property there to the risks of fire.
Unfortunately, the ground in the immediate neighbour-
hood of Balik Papan is covered deeply by sand, and no
geological outcrops exist to show the trend of the anti-
F2
68 GLIMPSES OF NETHERLANDS INDIA
clinal fold, but about five miles to the east the anticlinal
has been picked up. As what is known as the water
flush system is adopted for boring in proved ground, the
rate of drilling is much accelerated ; but care has to be
exercised in this system, and great attention on the part
of the driller, or the oil may be driven away perhaps
a mile or two. Great efforts are at present being made
from either end to get at the middle part of the con-
cession. There are trained geologists, beside surveyors
and a force of some hundreds of coolies employed. The
difficulties to be encountered are very considerable,
arising from the density of the jungle, the swamps to
be traversed, and the unhealthy condition of many of the
districts to be exploited.
On entering Balik Papan Bay the first buildings (seen
on the right hand) belong to what may be termed the
Dutch Administration. Then you come to the piers,
tanks, offices, and stores (including a co-operative stores
for the benefit of employes). Behind these, and above
on the hill, are the houses and quarters of the consider-
able foreign staff that is required in the various depart-
ments of the business. The disorder that previously
prevailed not intentionally, be it understood, but as a
result of labour requirements and the desire to push on
with the main work at all costs has been worked down
to an orderly condition. Passing on one comes to the
refinery, with its tall chimney belching forth smoke. In
the vicinity also are the machine shops, where work
and repairs of all kinds are carried out, the pumping
station, saw mill, foundry, and sulphuric acid plant.
At the refinery the continuous system of installation
is employed. There are at present twenty-eight stills,
with an intake capacity of 12,000 tons of crude oil
per week. Two more stills were contemplated. An
improved plant was being installed for manufacturing
sulphuric acid and cleaning it for use again. The acid
is used for purifying the oil when refined. A new work
about to be undertaken was also the erection of a tinning
THE COOLIE FORCE 69
plant. Hitherto at Balik Papan the oil has only been
handled in bulk. Now tinning is also to be undertaken,
the preliminary plant to be capable of handling 10,000
tins a day, to be subsequently extended to 20,000 tins.
Electric light is employed everywhere, so as to minimise
fire risks. A new plant was about to be installed for
this, and two Diesel engines, each of 250 h.p. capacity,
were about to be erected. They would be the first of
these economical machines to be set up hi the Far East.
Of other plant about the concession, one may note a
brick factory, which has a capacity of 8,000 bricks
a day.
Beyond the shops and refinery one comes to the main
coolie lines, where there is also a good market for supplies
of vegetables, and the excellent fish that seems so plentiful.
Here also is located the chief police station for the force
that has to be kept to maintain order amongst a
population, now grown to a total of 3,000 persons all told.
Of this the actual labour force is 1,000 to 1,200, the
balance consisting of shopkeepers, women, and children.
The muster of foreign employes on the concession was
near 100, of whom rather more than half is employed in
the Sanga Sanga district, where the oil is mainly produced.
At Balik Papan there is a club-house for the employes,
where two billiard tables, a piano, and a reading-room
are provided, and alongside this, again, are the tennis
courts. The company does what it can to make the life
of its employes pleasant in a spot somewhat off main
line routes, and the community, as I saw it, seemed a happy
and contented collection of individuals. The general
health seemed to be excellent.
When I saw the oil field in 1900 there were nine
producing wells at Sanga Sanga, and five at Balik Papan.
In the early part of 1907 there were 72 producing wells
at Sanga Sanga and one at Balik Papan, of which 35 were
flowing light oil, 15 heavy oil, and 16 wax oil. At Sanga
Sanga is the company's famous well 76. It began to
spout on March 30th, 1904, and up to October, 1905,
70 GLIMPSES OF NETHERLANDS INDIA
produced 150,000 tons of oil. At that date the flow had
declined to 130 tons per day. It then suddenly broke
out again with a production of 1,000 tons per day, and
the total production to the end of January, 1907, was
305,000 tons. Perhaps it may be specially noted that
the whole production was actually put into storage ;
nothing was lost. Another phase in the production of
the oil is the discovery of crude oil of a paraffin base,
which contains from 3 per cent, to 6 per cent, of paraffin
wax. Large quantities of the crude oil produced contain :
Benzine, 12 per cent. ; kerosene, 50 per cent. ; wax, 5
per cent. ; liquid fuel, 33 per cent. It was under con-
sideration to erect a plant for the preparation of paraffin
wax. The production of 1,000 tons and possibly 2,000
tons of this wax per month was suggested. The
refrigeration would probably be by the brine process,
which is the same as at the Pankalan Brandan refinery
of the Royal Dutch Oil Company in Sumatra.
The oil produced at Sanga Sanga is conveyed in hoppers
to Balik Papan for refining. It is worthy of remark
that all the engine power required at Sanga Sanga has
been provided by natural gas. Steam is not required,
as all power, whether for boring or other purposes, is
naturally provided. It is given at a pressure of 153 Ibs.
to the square inch. Another feature to note is that the
benzine, the volatile product of the oil which could not
be handled before, and was burned in the jungle to
the extent probably of some hundreds of pounds sterling
daily, is now all saved. People have discovered that
the usefulness of benzine is its boiling point, and not its
specific gravity. As the authorities would not permit
its passage through the Suez Canal, it was conveyed
in the large tankers of the Shell Company, carrying some
8,000 or 9,000 tons each trip. These vessels complete
their loading and supplies of fuel oil at the company's
depot in Singapore (at Pulo Bukan, or Freshwater Island),
and thence steam all round the Cape of Good Hope to
the Channel, for orders. It is a long run of continuous
RELATIONS WITH AUTHORITIES 71
steaming for 48 to 51 days, but it saves the product that
was not formerly marketed, and there is no longer the
necessity for the wastefulness that previously prevailed.
In the matter of storage capacity there is at Balik
Papan at present room for 100,000 tons. At Sanga
Sanga tanks will contain 62,400 tons, besides an open
reservoir of 40,000 tons capacity. The total storage
capacity has been several times insufficient, when the
surplus had to be left to run away. A scheme was under
consideration for crude oil storage at Balik Papan,
totalling 100,000 tons in tanks of great capacity. If
this was carried out there would be storage for, roughly,
300,000 tons collectively at the two places, which would
probably prevent the loss of oil that now occasionally
takes place.
It was only in April, 1898, that active operations
were commenced. What has been achieved since that time
is certainly a tribute to the men who have had the work
to do on the spot. They have had to, and still do, display
considerable energy, coupled with capacity, and one and
all has apparently done what in him lay to forward
development work. The Netherlands Indian authorities
have also generally assisted, whilst by tact and com-
plaisance the relations between what was practically,
though not legally, a British institution and the powers
that be have been generally of a friendly nature. There
has been a comparative absence of red tape, or of that
stamped paper usually so beloved of officials in
Netherlands India. It is a great enterprise, that had its
mainspring in the illiberal measures of the Russian
Government. Had it not been for the unreasonable
action of that Government in regard to foreigners and
the carriage of petroleum under alien flags, it is probable
that the Shell Company would not have been induced to
produce oil on their own account, but have been
content with the role of carriers and distributors of oil.
Russian action has had far-reaching effects in the great
industry now carried on in East Borneo. In the jungle-
72 GLIMPSES OF NETHERLANDS INDIA
covered wastes of that country has been created a great
industry.
Quitting Balik Papan the next port of call is Passir,
a place that provides the usual quota of rottans and
getah got in these parts. One then comes to Kota
Baroe on Pulo Laut. It is picturesquely situated on the
straits which divide the island from Borneo. No sooner
do the cargo boats come along than the wealth of rottans
is again in evidence, but there is likewise a fair number
of bags of white pepper for shipment. Pulo Laut grows
excellent pepper, and the island possesses a good number
of estates, many being owned and managed by Europeans.
There is a Dutch Controleur stationed here, but in Kota
Baroe there are no other whites and no foreign merchants.
Half an hour after leaving the port you come to Stagen,
the port of shipment of the coal found a few minutes'
walk away at the foot of the hills. It was the making
of a contract for this coal by the Norddeutscher Lloyd
which led to the scare that the island was in process of
annexation by Germany. Such a rumour died a natural
death. The coal here, as is the case with most Borneo
coal, is of too recent formation to be of really good quality.
It will not bear exposure to the elements, and accounts
of its burning and steaming qualities are not of an
enthusiastic nature. Proceeding through the picturesque
strait between Pulo Laut and the south-eastern corner
of Borneo, twenty hours brings you to Bandjermassin,
the seat of the Resident, the leading Dutch official for
this territory. Here also is an Assistant Resident, a
fairly full office staff, and a detachment of military.
The place carries a considerable air of prosperity in its
general appearance, and the Packetvaart Company has
a good number of steamers calling on different runs,
besides a regular weekly boat to and from Sourabaya.
The company also has a stern wheel steamer which makes
a trip up the river, lasting ten days, once a fortnight,
taking six days for the upward trip and four days down
stream. Bandjermassin itself is situated about twenty-
DUTCH COLONIAL SYSTEM 73
five miles from the bar, which, like so many others to
the Borneo rivers, does not permit of any very large
steamers coming up. It does a fairly considerable trade
largely in jungle produce. The river, which is the main
artery of the town, though there are some miles of
moderate roads, presents a fairly busy scene with its
constant stream of small boats passing up and down, and
its lighters either moored to bank or alongside a steamer.
Many of the smaller craft are shaped like the well-known
Venetian gondola, only instead of the long sweeping oar
they are propelled by a couple of paddles.
In due time the steamer brought me across from
Bandjermassin to Sourabaya, a run of twenty-seven
hours. Whenever visiting Java, the traveller, whether
on making acquaintance with the island for the first time,
or after repeated visits, cannot fail to be struck with the
magnificent natural conditions that prevail. Subject
to periodical volcanic disturbances, too frequently of a
violent and subversive character, there yet remains
the magnificent soil and a teeming population. The
latter, though Nature has been so bountiful in providing
for their limited wants, must yet do something to live.
One cannot help admiring much in the Dutch Colonial
system, though one may possibly not approve of all
that prevails. It is not the British system ; indeed,
it is quite dissimilar in many of its methods. The two
countries continue to be the two greatest colonial Powers,
as they were throughout last century. Both have the
governance and custody of native Asiatic races, and they
govern, one may hope, with the aim of combining fair-
ness to the native with the advantage that comes to
the alien lord of the land. The broad difference seems
to me to be that British administration is almost needlessly
in sympathy with the native (I do not mean in any sense
injustice), and social amalgamation is never aimed at,
or in the least attempted. The Dutch system in
Netherlands India is, on the contrary, that of working
down more to the Asiatic standard, and disclaiming, except
74 GLIMPSES OF NETHERLANDS INDIA
for official purposes, that assumption of social superiority
which is so characteristic of the British method. The
Dutch, particularly in social matters, go a good way
in the opposite extreme. Their municipal and conservancy
rules are less harassing, and native methods of punish-
ment for crime, of whatever description it may be, are
more closely followed than under the British flag. In
many cases, according to our ways of viewing crime,
this procedure bears more heavily on offenders. The
Dutch follow local customs to an extent that is calculated
to gain the goodwill of the native. We endeavour to
attain the same end simply by an exercise of rigorous
justice that the native does not always comprehend, nor
does he appreciate the motive whence it springs. In
many matters the Dutch leave the native to native
methods of administration, and this does undoubtedly
lead to native goodwill, though it does not provide that
example of elevating influence that is one of the boasts
of Western civilisation. In many matters they leave
the native at exactly the same standpoint at which they
find him. The same tendencies that one noted previously
seem still to prevail. There is the same tendency to
slovenliness of dress, absence of punctuality in small
matters, tendency to sleep much during the working hours
of the day, and similar habits. These must proclaim
to the native that the white man makes no affectation
of superiority in those directions, though they supplied
the basis of his former victories over indolent Asiatics.
Circumstances, as I have said, took me first to
Sourabaya. It is the great port of shipment of produce
in Java, having the larger portion of the main staple of
sugar passing through it. There are actually more
Europeans here than in Batavia, though that town is
the seat of finance, and many of the main Government
departments for Netherlands India. To say that Batavia
is the seat of finance does not mean that Sourabaya has,
for instance, fewer banks than in Batavia. There are
as many in the one as the other. Three of the banks,
IMPROVEMENTS IN SOURABAYA 7&
including the Hong Kong and Shanghai Bank and two
of the Dutch banks, were going into new premises. Up
town the quantity of building recently completed and
now in progress is very considerable. The tennis courts,
which not long ago were almost in the country, are the
centre now of a considerable residential district. Nor
must mention be omitted of the new club, which has
extensive buildings and grounds, much more commodious
and better situated than its predecessor. The general
sanitary conditions of the whole town seem to have
been greatly improved under the municipality, whilst
the excellent supply of pure water given during the last
few years is not only a comfort, but has had a very great
influence on the general health. In one way there is
no improvement to note. The harbour that has been so
often talked of has not yet been constructed, nor are any
active steps apparently being taken in the matter.
The steamer run along the coast usually takes three
days, allowing some seven or eight hours at Samarang,
and an hour or two at Tagal and Pekalongan, and four
or five at Cheribon. Arrived at Tanjong Priok Dock,
twenty minutes by train will take you to the down-town
station at Batavia, which adjoins the business quarter,
and another twenty minutes will take you to the
residential up-town district. It is in this latter quarter
you will find what little changes there are to note in the
way of expansion. There has been some progress in the
building way there, but the Kali Besar (the business
quarter) retains its old features. The same buildings,
the same lots of broken pavements still remain. There
is also the same fine old-world style about some of the
factories and ofiices down-town, reminiscent of past
centuries and greatness. Some buildings and godowns
are historical, and a Governor-General's former palace
now does duty partly as offices and partly as a tea godown.
Even in its present usage it retains an air of its former
grandeur. Returning again up-town when office hours
are over for no one lives down-town one again admires
76 GLIMPSES OF NETHERLANDS INDIA
the residential portion of the town. Congratulations
may be freely given to the Dutch authorities on the
general condition of the districts around the Konigs
Plein and Waterloo Plein ; the houses are palatial ; the
avenues of trees picturesque ; and the canal system,
which the Dutch understand so well, is extensively in
evidence. A blemish has been introduced in the con-
struction of the racecourse on the Konigs Plein. It is
not so much the posts and rails as the rather unsightly
stables that mar the appearance.
Though there is possibly a somewhat more liberal-
minded view taken of such matters as the introduction
of foreign capital, than has usually permeated either the
authorities in Netherlands India or Holland, there does
not seem any great eagerness to aid commercial develop-
ment. Too frequently what private enterprise would
adventure, official discouragement and timidity chokes.
There is room for further development, and what Dutch
capital cannot provide might be left to British or other
nationalities. Dutch capital does not receive as con-
siderate treatment as it might have meted out to it, but
foreign capital has many more obstacles to surmount
before it gets introduced into Netherlands India. Capital
is proverbially shy, and if it meets with so much dis-
couragement it is apt to confine itself to places where
there are fewer difficulties to be met. It is the country
and the Government that suffer from the restrictions.
One other matter to refer to is labour. This is for-
tunately abundant in Java, if it is not very highly skilled.
It is the Chinaman I would refer to, he who comes on the
next rung of the ladder. Of course there is a considerable
influx of sinkehs, or new men, from China, but a move-
ment is apparently afoot to restrict still further their
immigration. There is a great class of Babas (Chinese
born in the country, usually of native mothers) who have
become a great trading community. The sinkeh of to-day
works hard till he gets a step up in the social scale, takes
a wife, and settles down for good. His progeny are
THE CHINESE QUESTION 77
really another class of natives, imbued with many of the
qualities of Chinese for hard work and intellectual
capacity. They know nothing of China, and probably
never go there, but they dress as Chinese, and wear the
towchang (queue). Their descendants largely intermarry
amongst themselves or with native women. They become
antagonistic to the importation of further sinkehs, whose
advent keeps down the price of the local labour and
industries in which they are occupied. Two parties have
been formed, who respectively state that sinkehs are not
wanted, and that the true policy of the State should be
to encourage the Babas ; the other wants cheap labour
continued and the importation of the sinkeh. By the
way, the edict in China as to the discontinuance of the
queue has had its reflex in Java. The Chinese have
hitherto been under the impression that the growth and
wearing of it was as compulsory whether voluntary or
not in Netherlands India as in China. They have been
informed on the highest authority that they are quite at
liberty to dispense with the towchang, but that they
must not normally so dress as to be mistaken for Javanese
natives. Generally speaking the Chinese and Babas
remain a great power in the trading and industrial
communities.
A few words may be devoted to another district amongst
the many rich islands comprised in Netherlands India.
Foreigners as well as Dutchmen are interested in
tobacco estates on the east side of Sumatra. Deli is
the chief district, and is reached in a night's steamer
run from Penang to the port of Belawan. The bulk of
the tobacco is shipped from there via Penang for Europe,
but Singapore and Sabang (Pulo Way) also participate.
Belawan is not prepossessing, but it has worked off some
of its bad name as a fever-stricken spot. The wharves,
that were badly wanted on the occasion of a previous
visit, have been constructed. Soon after arrival, a somewhat
leisurely train on the Deli Spoor takes you to Medan.
There commercially, and in banking ways, business i
78 GLIMPSES OF NETHERLANDS INDIA
much the same, with a slight addition to its volume.
Chinese tokos (shops) are improved, and successive fires
seem to have been of some assistance to this change.
Any way, an advance is to be seen. The town maintains
its characteristic cleanly and neat appearance, and might
well be taken as a model for places not far distant which
have greater pretensions. It looks well-groomed, and
is lighted by electricity on all the roads and thoroughfares.
A notable recent building is that of the club, with its
really fine theatre. This, like many other improvements,
is largely due to the enterprise and generosity of the
Head Administrator of the Deli Maatschappij . This
company, with its magnificent administration buildings
occupying a great terrain in Medan, is the leading factor
in the place. Medan bears the impress of what may be
achieved if the head of the great company is concerned
to assist in the public interest.
The Java Bank was about to open a branch, with the
object chiefly of inaugurating the guilder as the currency,
in lieu of the Straits Settlements dollar, which, whether
Mexican, British, or Straits, had hitherto prevailed.
Attempts have been made from time to time to introduce
the guilder, but because of the necessity of regulating
the bulk of its payments in Penang, where the trade of
Medan is largely centred, and of paying the coolie in a
coin he knew, they had not hitherto been successful.
As long as there was the advantage that accrued in deal-
ing in silver with Penang instead of in gold with Batavia,
the planting interest was always against the guilder.
Now that the Straits is equally on a gold standard with
Netherlands India, the change has been brought about.
(The guilder was already the currency at Pankalan
Brandan, the centre of working of the Royal Dutch
Petroleum Company.) The Penang trade will flow as
before, but will be adjusted on a gold basis instead of on
a silver basis. The danger from the Government point of
view, one that may equally be brought on the community,
is that arising from the smuggling of spurious guilders.
TOBACCO CULTIVATION 79
That coin contains only 53 per cent, of silver, and the
white metal will have to rise very considerably before the
profit attaching to making guilders, of quite as good
fineness as the Government coins, will disappear. The
facility with which spurious coins could be introduced
by every class of craft will be evident from a glance at
a map of the coast line. It is certainly one that must
always be borne in mind.
The actual cultivation of tobacco remains on very
similar lines to that followed for some years past, but
improvements in manures, in treating the bibits, in
detecting worms, and in other ways, are constantly the
source of experiment and research. As far as the manner
of cultivation, from the payment of the coolie upwards,
is concerned, probably no better method could be pursued
than that in force on a tobacco estate. It provides an
excellent profit-sharing system. From the coolie to the
assistant, the estate manager, and head administrator,
and from him to the proprietor or shareholder, each does
relatively as the crop grows and sells well or ill. Each
has his own interest, which is identical and in common
i.e., to produce the leaf as well and as cheaply as possible.
Dutch law has been in the past favourable to easy working.
The coolie regulations were fair, and made it possible
for the man to earn money, while the planter had not the
same restrictions that were imposed on him under the
British flag say, in the Federated Malay States. The
result was satisfactory all round, and conduced to the
advancement of the tobacco industry. Now the con-
ditions are not so easy, and the planter is hedged about
with many more formalities, and harassed by the necessity
of useless returns. Estate managers and administrators
who were known to look well after their men were not
bothered too much by officialism, and the trouble saved
all round by the system was considerable. Many wish
that those conditions still prevailed, but the planter
has now much more to contend with. Nor does the
Government omit to exact taxation from estates, and also
80 GLIMPSES OF NETHERLANDS INDIA
of an individual or personal nature. These taxes have
not hitherto been excessive, perhaps ; at least, they
would not be were an equivalent given for the money
gathered. A certain amount of police protection is, of
course, forthcoming in the event of its being required,
but as to making roads, or such like works, the Govern-
ment does not act up to its obligations. The planters
provide the bulk of the revenue and are entitled to have
more done for them.
Ere leaving the subject of Sumatra, mention may be
made of Sabang (Pulo Way), where a considerable amount
of capital and energy have been expended to constitute
it a coaling station, and an entrepot for trade that would
possibly be a rival to Singapore and Penang. The
island is situated at the entrance to the Straits of
Malacca, about thirty miles off Acheen Head the most
northerly point of the island of Sumatra. Its position
would, therefore, seem to indicate that it was admirably
situated for a coaling station, as all steamers traversing
the Straits must necessarily pass quite close to it. There
is good water. The company that has taken the matter
in hand is the Sabang Bay Harbour and Coal Company,
which is under contract to supply the vessels of the
Netherlands navy with coal. It has at its disposal two
wharves, at which the depth of water is 30 ft. at low water
springs, so that anything that can negotiate the Suez Canal
is able to go alongside. The storage capacity in its
twenty-six coal sheds is considerable, and the stocks kept
include Indian, Cardiff, and Ombilien (South Sumatra)
coal. It possesses a fairly complete coal outfit, and can
load up to about 140 tons an hour. Overhead cranes
work all along the sheds and piers, traversing all parts.
Lighters are also provided so as to work both sides of a
vessel at once. The floating dock has a capacity for
vessels almost up to 3,000 tons, and a staff of 120 men
is retained at somewhat high wages to attend to
repairs.
That there is a progressive and regular traffic may be
SABANG, PULO WAY 81
gleaned from the fact that an average of nearly two
steamers a day now enter the port. The harbour is
land-locked, and the entrance is practically hidden. Pilot-
age is free, and is not compulsory. Amongst the
vessels that now call are the Dutch mail boats, where
they are in connection with the vessels of the Konigklijke
Packetvaart, whose steamers meet all the mail steamers
outwards and homewards.
The only local industry at Sabang, apart from possible
repairs to calling steamers, is the manufacture of white
pepper, which is a monopoly of the Atjeh Trading Com-
pany. In other ways the disadvantage of little or no
cargo offering for the liners provides little inducement
to them to call. If steamers, outwards and homewards,
for China and Japan ports were not in the habit of carry-
ing Straits cargo, they might save a little time in coaling
at Pulo Way instead of at Singapore or Colombo. But,
generally speaking, all these vessels carry Straits cargo,
and have thus an object in calling at the ports apart
from the question of fuel supply. So long as such con-
ditions prevail, there is little chance of Pulo Way attract-
ing any appreciable portion of the Singapore or Penang
traffic.
CHAPTER V.
PROGRESSIVE SIAM.
The Menam A Relict of the Burmah War of 1885 Roads and
Bridges The Motor His Majesty the King Politics Treaty Revision
Railways Currency Monetary Standard Gambling Education
Some Incongruities Sanitary Measures Water Supply.
THE changes that have been wrought in two decades
at Bangkok have been very considerable. That period
had elapsed since my previous visit. One has not to be
long ashore and it is more ashore now that one is to
note that considerable water has flowed under the klong
bridges. With the growth, change, and development
of Bangkok people have become less amphibious than of
yore. The magnificent Menam, the Mother of Waters,
still contributes its majestic power for the benefit and
well-being of the country. As one approaches the capital
on its broad waters, its existence as the life-blood of Siam,
and, indeed, of the nation, is borne upon one. Only the
bar at its entrance detracts from its full and complete
value, and there are reports now, as there have been
before, that it may at some time be dealt with, so as to
render the approach of shipping more easy, and, above all,
free from the delays that prove often so costly to all
engaged in trade. The foreign shipping remains practically
in the hands of the Germans, as it has done since the
purchase of the Holt local line and the Scottish Oriental
was effected by the Norddeutscher Lloyd some eight years
ago. They provide in the main for the service to either
Hong Kong or Singapore in a very efficient manner. One
IMPORTATION OF FIREARMS 83
hears remarks from Siamese, as well as British, expressing
regrets that the British flag is not better represented in
a trade that is to so considerable an extent British in
volume. All I can say is that the sea is there, and the
route open, and there is nothing to prevent anyone
engaging in the trade, as the Japanese line, the Nippon
Yussen Kaisha, did for some period recently.
Arrived at Bangkok, one is reminded of the regulations
as to the import of arms. All firearms have to be de-
clared, though except in bulk the matter is purely formal.
It is indeed, curiously enough, the relict of the war in
Burmah of 1885, when at the request of the British
Government the Siamese made the regulations that all
arms have to be declared. It is purely a matter of form,
and one can obtain a return of one's revolver on getting
a form from the Consul. Siam herself, of course, prevents
the import of arms in any quantity, which would fall into
the hands of secret societies, or others, who might have
reasons for disaffection against the Government. The
formality of handing over one's revolver and cartridges
being concluded, one is free to note the large number
of launches, steam and motor, that now flit about on the
river, entirely displacing the two or four-chow (two or
four-man) boat that was formerly so conspicuous, and so
slow by comparison. You note that Bangkok has
changed in other ways, and that roads and ways of com-
munication have progressed ashore as well as afloat. In
lieu of the one bad road that previously existed, with
its poor and often dangerous bridges traversing the
numerous klongs or canals, you may now find many
and vastly improved ways, whereon the motor car is often
in evidence. It has apparently come to provide, as else-
where in tropical countries, a means of locomotion that
is most effective. Much remains yet to be done ere all
the roads can be pronounced good in the commercial
quarter, but near the Palace and in the new Dusit Park
district they have been well made and maintained.
The King is much in favour of the motor, and many of
a 2
84 PROGRESSIVE SIAM
the nobles and foreign residents drive their own cars.
With the river and waterways everywhere, it is unlikely
that motor traction for heavy transport will be adopted,
but as a means of locomotion for the private person it
is most convenient. Whilst roads have generally been
improved, the drainage of them remains very bad, and
the side drains are as foul as can be. With the roads, the
bridges have become more convenient. They were
formerly an insecure and undesirable method of switch-
back. Now they are a real study from their variety of
form and construction. One may see them of practically
every variety, including steel or iron girder bridges, brick
bridges, and the Dutch variety of drawbridge that forcibly
reminds one of Holland. Then there is the considerable
district that has been opened out by the King at Dusit
Park. What was only a few years ago jungle and padi
fields has been transformed into a park. It is already
pretty, and bids fair, from its design, to be lovely in a few
years' time, when the trees and shrubs have had time to
mature. In the midst of this the King has built himself
a palace, where life is rendered more endurable in the hot
season than in the walled enclosure in the city. The Crown
Prince, Prince Dewawongse (the Foreign Minister), and
others, have also residences near by, and doubtless the
considerable area now opened out by the new roads will,
in time, afford spots for residences.
It is adjacent that the annual fair, or bazaar, takes
place, in aid of the new wat or temple that has
been erected under the auspices of the King. This
fair, to provide funds for Wat Benchamabopit,
as the temple is known, extends over some five days,
and is a very pleasant scene each evening. Thither
go the King, the Queen, with a large retinue of ladies,
the princes, nobles, and a great number of the general
public. It provides, by means of stalls and booths, all
that one may see at home in a bazaar and fair com-
bined. There are stalls held by royalty and nobles,
wealthy shopkeepers and ordinary persons. All the
DUSIT PARK FAIR 85
profits are devoted to the wat, which is thus annually
placed in funds, to carry out the work of construction.
Already much has been done on an imposing scale. It
is, however, the general scene that cannot fail to impress
one. The King himself throws off all restraint, and freely
mixes amongst all classes. The general setting is brilliant
with electric lights and prettily prepared stalls ; there
is a restaurant kept by the Palace cooks and attendants
where one may dine very well ; everyone is gay and
happy, good-tempered and orderly, and though the
common people are there in thousands, there is no horse-
play, no roughness, or anything to offend the most
sensitive. There was a fine display of arms and weapons,
both European and Asiatic, exhibited at the fete I
saw, many being of great historical value. One may
note that an elder brother of the King and a son of King
Mongkut did the honours, and obligingly showed and
explained the collection, which was loaned by the King
and others. Let me add that the fair always takes place
at the period of full moon, at a season of the year when
rain is unknown, and the temperature generally pleasant.
It is, however, time that direct mention be made of
his Majesty the King, who still remains, as has been his
characteristic for so many years, the mainspring of
improvement in his kingdom. All who know anything
of Siam are aware that he is the most hard- worked and
industrious man in Siam, his zeal and energy being equal
to the industry of any of his Chinese subjects men who
know how to live and thrive in Siam as they do in other
countries. His Majesty is undoubtedly greatly responsible
for the steady progress that Siam has made of late years,
and the growth of revenue, trade and communications
are greatly due to his own individual labour. He
speaks, reads, and writes English with facility, and thus
keeps himself in touch with the outer world, whilst His
Majesty personally superintends every department of
the Government. At an audience that His Majesty
accorded me he mentioned, half laughingly, that he had
86 PROGRESSIVE SIAM
too much work to do. More seriously his Majesty said
that his health suffered now in the hot season. For this
reason he visited Europe in 1907, under medical advice.
But he seemed to have lost little of his former energy and
determination, by which he rules the country for the
advancement of the people. Nothing is too minute for
him to investigate, and His Majesty exhibits a wonder-
ful trait of penetration, and of rapidly arriving at what
are the true essentials of a case, however complicated
it may be. His energy is indeed a standing reproach
to a people who probably are the laziest in the world ;
who are ever ready to put off anything that is not im-
peratively required to-day, and whom Nature in her
bounteousness has liberally provided with the means of
subsistence on possibly the smallest amount of labour
that can be conceived. That his people hold him in
adoration is well-known. A national fund is now being
raised to commemorate a reign that has now endured for
41 years. Out of the fund collected a statue will be
erected to His Majesty, and the balance handed over for
his disposal for any objects he may decide upon. The
Crown Prince, who it will be remembered was educated
in England and passed through Sandhurst, is president of
the committee of the fund. Only in one way is the policy
of His Majesty open to question. I refer to the great
expenditure on the army, which amounts to nearly one-
fifth of the declared revenue. There seems no reason
to expend so considerable a percentage on military matters
The King is ably assisted in his task of ruling by their
Royal Highnesses Prince Damrong, the Minister of the
Interior, and Prince Dewawongse, the Minister of Foreign
Affairs, amongst other Siamese. It would be good for
Siam if the list were a lengthy one ; but unfortunately it
is not so, and reform has yet a considerable road to travel.
The energy and enthusiasm of His Majesty make him
greatly respected by his foreign advisers, who constitute
a considerable number of earnest and capable Europeans
employed in the different Government Departments.
THE FOREIGN ADVISER 87
They have done good work in the task of administration,
though they are unable to rectify abuses that they too
frequently see all around them. It was my fortune to
meet many of these men, and to learn a little of the yeoman
service that many are performing.
One of the greatest changes for good of late years,
both for Siam and her foreign relations, was the
happy selection of General Adviser to the Govern-
ment in the person of the late Professor Edward
Strobel. The Siamese, in days gone by, had from
time to time unofficial advisers, such as the well-known
Mr. Alabaster, but it was not until M. Jacquemyns
was called to the post that the appointment was
officially notified, and the occupant recognised by
foreign Governments. The appointment of the Belgian
adviser was not renewed, but the happy selection of
Mr. Strobel as his successor was made. His assistant
and fellow Harvard colleague, Mr. Jens Westengaard,
ably seconded his work. Professor Strobel advanced
all work where the Foreign Office and any foreign repre-
sentative was concerned, and imbued other departments
also with the desirability of doing work to-day, and not
putting it off till to-morrow. He undoubtedly improved
the relations of Siam with foreign countries. There
were certainly fewer causes of friction and fewer arrears
of unanswered correspondence. He was honest and
fearless in his advice, and did not invariably side with
the Siamese. It is a tribute to his qualities, therefore,
that his counsels were generally followed. Genuine grief
was felt at his decease.
His Majesty is now fifty-five years of age, and complains
somewhat of his health, and the fact that he feels the hot
season rather severely. It is sincerely to be hoped that
his energy and guiding hand may yet be spread over
the land for many years, for there remains much yet to be
consolidated ere such an influence can be spared. He has
a spirit entirely above pettiness, and if he is lavish in
his expenditure on palaces and in such-like ways, we may
88 PROGRESSIVE SIAM
note that this is only an aside, and that the advancement
of his country, and honesty and integrity in its adminis-
tration, have ever characterised him. It is in every
direction he displays his qualities, whether in overlooking
and pardoning the too frequent delinquencies in Siamese
administration, or the disappearance of funds in other
directions to those in which they were destined. Or,
again, his open-mindedness and liberality are exhibited
in the gift of a new site for the Protestant Church. The
old site on the river bank had originally been his gift.
It became very valuable, and His Majesty permitted it
to be sold (half was taken by the Borneo Company, and
half by other purchasers), and the proceeds devoted to
the erection of another and finer edifice, for which, as I
have said, His Majesty donated the site. One is led to
wish that all these varied qualities may descend to his
successor. What of the future is often referred to by those
who look ahead in Siam ? The Crown Prince has been
liberally educated in Europe, many years being passed
in England. It is sincerely hoped the seeds thus sown
will bear good fruit in the due course of time.
The political horizon in Siam has presented a quieter
aspect for the last few years than it has exhibited for a
considerable period. The two most important matters in
the near future relate to Treaty revision and railways
in the Malay Peninsula. One of the excellent reforms
inaugurated by the King has been the abolition of gamb-
ling. From the letting of the farms considerable revenues
have hitherto accrued to the Government. The gambling
houses have now been closed in the country, and they
are in process of being extinguished in Bangkok. The
Chinese farmer has had a good time, and the Govern-
ment obtained a good revenue, but the peasant lost the
proceeds of his crops on the fantan mat, and the economic
results to the country became patent to the Government.
It is sought to replace this revenue by an advance in
import duties. At present, under treaties made in the
fifties of last century, the import rates are about 3 per
PROPOSED NEW TARIFF 89
cent, on imports generally, and about 5 per cent, on
spirits. The Siamese Government suggests a general
rate of 7| per cent., which need not be considered as
excessive, and one that savours of revenue and not of
protection, if it be any comfort to anyone's soul to so
look on it. Anyway, it cannot be considered unreason-
able. The nation most concerned is Great Britain,
whence comes the bulk of the imports into the country.
It is obvious that arrangements should first be made
with that country, and then with Germany and other
Powers that also really have interests. Having done
this, Siam could denounce the other commercial treaties,
for if she waits to agree with all she might be as long as
Japan was in endeavouring to get revision through.
The real point is : What does Great Britain require in
return for her consent to a general 7\ per cent, tariff ?
Probably she would be content if the hint, already thrown
out from Siamese quarters, was acted on, and machinery
placed on the free list of imports ; if changes were made
in the tenure of land by foreigners, and the bar at the
mouth of the Menam River was dredged. The first of
these possible demands needs no further explanation.
As regards land tenure, no British subject can at present
own or rent houses or lands outside the area of possible
distance from Bangkok covered by a native boat in
24 hours. It is desired that this restriction be rescinded.
The removal of the bar needs little remark, for it has
been a debated subject for many years. Remove it, and
Bangkok is a possible port of call for ocean steamers,
which would probably be to the improvement of the trade
of the capital. The objection hitherto has been on
military grounds respecting the defence of the country. It
is certainly a bar to any large vessels proceeding up, but it
is no bar to any force requisite to cope with the resistance
likely to be offered to a Power competent to send such a
force. Whether expert opinion holds that the conditions
of the river Menam would be affected I cannot say, but
only on the grounds of damage to the immense interests
90 PROGRESSIVE SIAM
represented by the Menam should the prohibition to make
an effective channel across the bar be allowed to prevail.
There has also arisen around the matter of the revision
of the treaties the question of extra-territorial rights.
Siam chafes at the provisions, and more especially as
regards foreign subjects of Asiatic birth. One! is aware
that protection has often been demanded by Asiatics
from this or that Consulate, and " subjects " have at times
been made in a wholesale and loose fashion. We can
appreciate the irritation that must have been caused
the Siamese Government from time to time by these
measures. The Siamese argue that extra- territoriality
was only intended for the pucker white man, and not for
the Asiatic. Possibly that was the main underlying
intention when the treaties were negotiated ; so that
Europeans were not at the mercy of a State with different
views of civilisation, and without either a proper code
of laws, or the trained men to administer it.
At the moment of writing negotiations are in
progress between the British and Siamese Governments
for a regulation of this and other matters. The proposal
is made, inter alia, for the cession of the Siamese Malay
States of Kelantan, Tringganu, and Kedah, in return for
the abrogation of extra-territorial privileges. The pro-
posal meets with varied acceptance ; the territories
would be an important addition to the Federated Malay
States, though the ruling power would be presumably
legally complete, and not nominal (though very actual in
fact) as in the case of Perak and her sisters.
There is also the 1883 Treaty of Chengmai that affects
the position of British subjects. By that instrument
the British Government consented, in the case of British
subjects resident in the five Lao States of Northern Siam,
to surrender a large portion of its extra-territorial privileges
in return for obtaining the right of negotiating for and
securing locally concessions in the teak forests then owned
exclusively by the native Lao chiefs. Siam has since
absorbed the Lao States, and deprived British subjects
MALAY PENINSULA RAILWAY 91
of many of the advantages of the Treaty. It is no longer
the Lao chiefs, but the Bangkok Government, who are
the sole possessors and grantors of forest rights in Northern
Siam.
The other matter concerning the railway through the
Siamese Malay States has a peculiar interest for Great
Britain. These States are now definitely recognised as
pertaining to Siam, though within the sphere of British
influence as arranged with France. British policy,
which had plumped for the integrity of Siam, now seems
inclined to modify the policy as regards some of the Malay
States.
Whatever the outcome of present negotiations, the
Siamese are anxious that the railway between Bangkok
and Penang should be at least inaugurated at a com-
paratively early date. His Majesty himself told me that
he hoped it would not be long before operations com-
menced. As is well-known, the Railway Department
in Siam is officered by Germans the last Englishman
connected with a department whose first work was done
by British subjects was transferred, on promotion, to
another department. The German officials have done
good work in the railway way, but, viewing the political
side, it is not difficult to see that Great Britain can scarcely
admit such an influence as would be represented by a
big staff of German engineers necessary for the railway
being introduced into the Peninsula. This seems to
constitute with possibly the provision of the requisite
funds the crux of the matter. It would be possible, of
course, that instead of the line being made departmentally
that a concession should be given to a British firm of
contractors, or a company, who would either raise the
funds required themselves or receive bonds, as in the
case of railway construction in China. There are objections
to this method, because if we look only a little way ahead
it would be obvious that a concession given, say, to
British interests there, might open the door to demands
for concessions not only for railways in other districts
92 PROGRESSIVE SIAM
of Siam. It would seem that the Siamese, in their own
interests, should make the line themselves, as in
the case of the northern lines. The difficulty of the
Railway Department being practically a German depart-
ment should not present any insuperable obstacle. The
Railway Department might be reconstituted in two
sections, one, under German control, would be responsible
for the Northern Railways, and the other, under British
influence, would have charge of the southern section.
The Siamese Government, in their own interests, would,
as now, put the supply of all material up to public tender.
If the solution I have indicated is not the best, other
proposals could doubtless be put forward ; but the fact
that Germans now officer the Department, and that
Great Britain in her own interests could only permit
British engineers to make the line to Penang, should not
be an insurmountable difficulty to Siam, or prevent the
construction of a line that will bring Bangkok nearer to
Europe by some five to six days.
Considerable confusion has been caused during the
last two years in the currency arrangements. In March,
1906, the Siamese Government was able to fix the selling
price of the tical at Is. 3d., and everyone thought, and
naturally so, that exchange difficulties were to become
matters of the past. The uncertainty of the fluctuations
of exchange were to be removed. The policy of the
Government was taken to be as analogous to that which
had been pursued in India. With the continued rise
in the price of silver, the rate was further advanced to
Is. 4d. to the tical, or, say, 15 ticals to the pound sterling.
Beyond this rate it was not anticipated that it would be
advanced. The sterling price of silver continued to rise,
however, and it became obvious that something must
again be done. The Siamese had been up to this time
running, as it were, with the gold hare in pursuance of
the desired policy of fixity of exchange, at a point where
the interests of Siam would apparently be served best.
It must be borne in mind that the exporter had already
CURRENCY CHANGES 93
felt the increase in the rate. Selling, as he did, in sterling,
he received fewer ticals, though he had to pay out as
many for labour and raw material. These rates had been
adjusted somewhat to the lower sterling value of the tical ;
they did not exhibit a ready disposition to readjust them-
selves to the new and higher rate. The exporter was
buoyed up, however, by the hope that he was about to
obtain fixity of exchange, and that other matters would
in time adjust themselves. He has been rudely disap-
pointed.
Having run with the (gold) hare up to Is. 4d.
to the tical, the Government suddenly reversed what
seemed to have been its policy, and started hunting with
the (silver) hounds. Silver had moved up to 33d. per oz.
This means that the tical which contains 234 grains of
silver 900 fine could go into the melting pot if silver was
much over 33d. per oz., taking into account the minting
expenses, but not including any profit or charges for
freight, insurance, etc. The profitable point at which the
tical at Is. 4d. could be exported for bullion purposes
was when silver was 34.40d. per oz. It was getting
so near that, as I have said, something had to
be done. There were two main courses open. What
the average man anticipated would be adopted was
that gold would become legal tender, the tical being
crystallised at Is. 4d., or, say, 15 to the pound
sterling. The tical itself, with the introduction of the
gold standard, would naturally become only subsidiary
coinage, and its weight or fineness, or both, would
be reduced to such a point apparently that it did not
become too attractive to the counterfeiter. The other
course was to advance still further the sterling selling
price of ticals. It was this policy, or the taking up of
the running with silver, that was adopted. The con-
sequence was that uncertainty continued to prevail,
and the desired fixity of exchange was as far off as ever.
There was no guarantee that if Is. 6d., to which it was
advanced, was reached, that the process of raising would
94 PROGRESSIVE SIAM
not be again continued. The rate of Is. 4d., to which
the trade had been looking, was thought to be a fair
average rate to suit all classes of the community, and one
where the least hardship was anticipated for all concerned.
It had likewise some sentimental grounds in its favour,
for was not that the sterling rate for the rupee in India,
and was there not a considerable interchange of trade over
the Burmo-Siamese frontier ? I may, perhaps, here
point out that the tical and the rupee are not equivalent
in weight and fineness. The tical is 234 grains 900 fine,
and the rupee is 180 grains 925 fine. The reduction in
either weight or fineness, or both, in the tical necessary
at the enchanced price of silver would, however, have
brought the two coins nearer together, though, as either
realm would be gold standard countries, it mattered little
whether the token coinage of either was the equivalent
of the other. Local prejudice, as in India, was against
any tampering with either weight or fineness, because the
tical was also a measure of weight, popularly used. It
may be so in theory, but in practice it is the catty that
is predominant. Besides, the tical as a weight is somewhat
fallacious. Some figures of average assays made by the
Mint authorities in India were supplied to me, and from
these I learned that the average weight was 234.16
grains, though individual coins varied from 230.75 grains
to 238.62 grains. Incidentally, I may remark that the
average fineness came out at 901, a satisfactory point.
In a comparatively small weight the variation of nearly
8 grains, or over 3 per cent., is considerable. Besides, if
the argument of weight and fineness was to apply, the
moment that silver advanced, if it should, beyond the
Is. 6d. rate, you would have to recoin at an advance in
weight or fineness. Intrinsic value has likewise not been a
feature when the tical was rated over the market value
of silver. As far as I was able to learn, there is no pre-
judice against a token currency, to which Siamese have
become accustomed in more ways than one. I might
instance the tokens issued formerly by the farmers when
HIGH EXCHANGE RATE 95
there was a shortage of currency. Specimens of these
were shown to me ; they certainly possessed little in-
trinsic value, and yet they passed freely as current coin
in the bazaar.
A broad view must necessarily be taken of any policy
involving a change in the standard of a country the
fixed point, that is, in which the prices for all commodities
have to be quoted. What are the broad lines that should
act as guides in the case of Siam ? On the side of the
high Is. 6d. rate you have the fact that Siam employs
a large and generally increasing number of foreign
officials in the various departments of the Government,
who are all in receipt of sterling salaries. These men
receive less ticals per month, though having to pay the
bulk of their living expenses, such as wages and food,
in ticals. A stronger argument for the higher tical rate
is provided by the fact that Siam has become a borrower
in the Western money market ; and that yet more will
be borrowed in the future if the northern railways are
continued and the Bangkok-Penang Railway becomes a
reality. On the service and sinking fund of these loans
the Government will apparently benefit by some 12|
per cent. the difference in the tical at Is. 4d. and Is. 6d.
Purchase of railway material, rolling stock, etc., will also
be in her favour to this extent. It must not be denied
that these are solid advantages that will accrue to her.
On the other hand has to be set the export trade of the
country. Siam is not a manufacturing country, and it is
for all practical purposes only the export trade that has
to be considered. The country possesses no invisible
sources of income. Though teak is a considerable factor,
it is practically the rice trade which provides 80 per
cent, of the exports that we have to consider. It will
readily be seen that with the competition of Burmah on
the one side, and Cochin China on the other, that Siam
may feel a difference of 12| per cent. The probability
is, apart from seasons in Siam itself and in neighbouring
countries, that the padi grower in Siam will have to lose
96 PROGRESSIVE SIAM
in the number of ticals he is to receive per coyan
of padi. It is a somewhat heavy mulct, though the
Siamese maintain that the producer can well afford to
meet the loss, and that this was the view held by the
Cabinet after a long and serious discussion of the topic.
This is a point on which the foreigner is not so competent
to judge, but where it does come to him as an exporter of
rice he is most emphatic that the higher rate is detrimental
to his interests, and, therefore, detrimental to Siam and
the Siamese in the long run.
The argument advanced in some quarters was that
the high rate would induce the hordes of ticals which,
it was asserted, existed in the country, to be brought
out into the market, and so reduce the rates of interest
in Bangkok, which, by the way, are generally high. It
would, if these hordes did come out, also provide ad-
ditional capital, which somehow one wonders was not
already attracted by the high market rate of interest.
A less correct argument was that foreign capital would
be attracted. It is not a high rate that attracts foreign
capital, but fixity of rate. Fluctuations, as to which we
have yet no guarantee that they will not occur as in the
past, are what make capital shy, provided, of course,
that security of Government, honesty of justiciary, etc.,
are hi evidence.
Suppression of gambling has been already referred
to. Little is required to endorse the policy that is being
pursued by the King and the Government, and the fact
that the policy has not been suggested by pressure from
without may well be noted. An equally good work for
the general welfare of the country is the progress made
under education. It is fostered by Prince Damrong,
the Minister of the Interior, who takes a keen interest
in the subject. It has been decided that English shall
be taught in all secondary schools. The Budget vote
under the head of education is, I am glad to learn, an
advancing figure. Up to the present little is being done
however, to elevate women, or to afford them the benefits
SOME INCONGRUITIES 97
of education. Woman in Siam is still looked on as a
mere chattel, and her lot, in some ways, is not an enviable
one. The progress that is evident in so many ways has
left her almost aside to toil on as of yore. Generally the
progress achieved is considerable, and if the inconsistencies
are great and varied, the improvement is there all the
same. Probably nowhere in the world does the East and
West meet under such strange circumstances as in Siam.
Much is in a state of transition, and there are incon-
gruities whose juxtaposition naturaUy attracts attention.
You are at Dusit Park fair, and His Majesty is in the Wat
at his devotions. Within and without the temple are
a great number of yellow-robed Buddhist priests, amount-
ing to probably thousands ; each has a lighted taper
or torch. The proceedings possess a certain solemnity ;
the service over, the priests move off, and the band, with
European instruments, plays, not some solemn notes, but
a lively Western march, or, perchance, such an air as
" There'll be a hot time in the old town to-night." Again,
the Queen steps into a powerful motor car of the most
recent design, lighted thereto by a woman with a candle.
Elsewhere the rice mills and saw mills of Bangkok are
embedded in bamboo groves, and the clang of the steam
hammer at some engineering works is in contrast with
the Wat, with its silent yellow-robed priests, next door.
The fishing dug-out, the Chinese junk, and the up-river
padi boat are mixed up with innumerable launches and
motor boats ; whilst the Siamese Navy, lying in the
river off the palace enclosure, is served by rua changs
(native craft). Everywhere is the electric light, for
Bangkok went straight from the oil lamp stage to elec-
tricity without being intermediately supplied by gas.
One steps off the electrically-driven and lighted tramcar
into the electrically-lighted street, and then straight
into the padi field, or jungle. The effects and contrasts
are as bizarre as may be seen anywhere in the world.
There is, so far, little to record under the head of
sanitary measures and the prevention of disease. Drain-
98 PROGRESSIVE SIAM
age would be a difficult matter in Bangkok, but it is
possible to attempt something by way of improvement.
A proper supply of wholesome water is also a prime
necessity, and the proposal to supply it is abroad. It
is said those who have once drunk of the waters of the
Menam return to Bangkok, but too many, alas ! drink
them only to their destruction. Cholera and other
complaints are rife, and the toll of life, from what may be
truly stated as preventable causes, is very considerable.
Siam, with its fairly large territory, has a population of
only some 6,000,000 of inhabitants, including the Malay
States. One of her pressing needs is greater population,
and yet she is content to lose several sometimes many
thousands a year from diseases that should be, in part,
preventable. The individual Siamese family is generally
fairly numerous in number, and the natural growth of
the population should be much greater than it is. It is
aided by a certain influx of the ever-industrious China-
man, but he does not increase his numbers to any great
extent, when we find that the balance of arrivals over
those departed was only 15,000 in 1905, was 16,500 in
1904, and 26,000 in 1903. The net influx is also affected,
for he too pays his toll to cholera, *etc., by drinking
the foul water of the Menam and the fouler product of
the klongs, polluted with the sewage of the city, with the
carcases of dead animals, and occasionally of human
beings. Even on the grounds of economic value alone
to the country, if not on those of humanity, a pure water
supply should be freely given.
CHAPTER VI.
MANILA.
American Rule Want of Comprehension of the Problem Need of
Special Civil Service Filipinos for Minor Posts The Filipino Military
Forces Improvements in Manila Steamer Communications
Railways.
AFTER a visit to Manila you depart with a somewhat
curious mixture of ideas as to what is the effect of nearly
a decade of American rule. Still, the burden of the song
was different to what one heard seven years previously.
Then all seemed to be chaos, and no one had his finger
on the weak spots. Those who had hoped, and had
rightly looked for, an amelioration of the conditions,
in contrast with the Spanish times, had been grievously
disappointed. There are even now many who sigh for
what they call the good old Spanish times. I cannot
find myself in much sympathy with them. Things may
be still somewhat haphazard, and there seems a general
lack of grasp of the situation that had, and still has, to be
tackled ; but the ground of complaint is less pronounced
now.
It struck me that at present, in the matter of the lines
of general administration of the islands, that a greater
attempt was being made on the part of at least some of
the higher officials to understand the problem and deal
with it. The unfortunate first utterances and promises
made to the Filipinos, before they were better known by
the American authorities to be what they really are,
came home to roost badly, and had a way of constantly
100 MANILA
confusing the issue. Home people in the United States
whose sayings command attention, were still deficient
in the accurate knowledge of what they spoke about, or of
how the problem should be handled. They judged the
country and its needs, as well as the natives of all sorts
and classes and creeds, which required distinct handling
for each, by standards that were not applicable to the
conditions. Too few, as yet, comprehend the problem,
and statements inside and outside Congress, made from
a lack of grasp, led to constant uncertainty as to what
might come next; and this uncertainty hinders and retards
development. The First Filipino Parliament has now met,
and seems to have been lavish in voting supplies. It is
too soon to speak definitely of its value, but that the
ordinary native understands anything of such matters it is
ludicrous to assume ; the few who do will, I trust, work
for the benefit of those who do not.
Apart from a greater desire on the part of a section
of the governing powers really to understand the problem,
to work it out on practical lines adapted to the exact
circumstances, and not as is sought in ways agreeable
to the home States, what is most urgently needed is a
proper permanent Civil Service for the government of
the islands. An educated, energetic, and devoted band
of men who are ready and willing to give the best years
of their life to the problem is required. To gain a class
of men akin to the Indian Civil Service is what should be
aimed at. Their first years would be devoted to acquiring
the language thoroughly, and becoming familiar with
native habits and customs and modes of thought. They
would then, as they acquired some grip and control of
native problems, be gradually drafted into positions of
responsibility in all departments of the Government
throughout the islands. The vast army of officials now
employed, greatly in excess of what the requirements
of all the departments should be, could then be largely
dispensed with. Even allowing for adequate pensions
after, say, twenty-five years' service (with proper periods
WHITES AND FILIPINOS 101
of leave) the cost of such an administration would, it
seems to me, be less than the figures at which it stands at
the present time. The native would be employed in all
the minor posts under proper supervision, and in ex-
ceptional cases where more than average ability and
capacity was displayed, he might be promoted to responsible
offices. The local Government in the country districts
by Filipinos cannot be said to be a success. Without
any undue harshness on the native, the Raj should not
be amenable to him. The white man should be controlled
only by his peers. Such a case as white men being ar-
rested on some minor charge by native police in their own
houses, an instance of which occurred to a leading
resident during my stay, should not be possible. The
average Filipino magistrate or official is entirely unfitted
to deal with the white man. If jurisdiction is given him
over his own countrymen, within certain lines, we may
perhaps not complain, but white men, whether citizens
of the United States or any other nationality, should not
be at the mercy of native prejudices and vindictiveness.
My point is that at the present state of Filipino
development he is utterly unsuited, either by training or
tradition, to have jurisdiction over the white man. It
is not enough to say that appeal may lie to United States
officials ; the mere indignity of a subject of the ruling
race being hailed before some unqualified person, and
possibly his liberty for the moment taken away by native
police, should not be countenanced for a single moment.
The task of administration in the islands ought not to
be any more difficult than the problem that faced the
British authorities thirty-five years ago, when the Native
States of the Malay Peninsula were brought under control.
Government should be possible with a handful of white
men in the one case, as it is in the other. Unfortunately,
the desirable officials are only forthcoming in limited
numbers, insufficient for the task. The problem is still
new after close on ten years of experience. The
Americans drifted into the Archipelago with no previous
102 MANILA
colonial experience, no colonial department, and no
colonies ; their only object was smashing the Spanish
fleet when Dewey went into Manila Bay. They were
unprepared with any plan for replacing the Spanish
power. Moreover, it should be borne in mind that
Aguinaldo and Co. had nearly achieved their designs
against the Spaniards. The supreme blunder com-
mitted by Admiral Dewey in having truck with Aguinaldo
and his crew laid up a store of much trouble, which was
further aggravated by the crime of allowing them to arm
themselves from the Cavite arsenal, and subsequently
commit depredations. The conclusion one conies to
is that the islands could go ahead if they were given the
chance by proper administrative measures to do so.
Another fact that should be clearly borne in mind was
made to me by a leading official " it would be greatly
to the benefit of all concerned if people would only learn
that you cannot go on milking the cow without feeding
it."
A point may here be noted respecting the Filipino
and the surface changes that have been brought about
in him as the result of changed conditions. He is losing
much of the Spanish tongue that he had acquired, whilst
his knowledge of English is not commensurate with the
large amount annually spent on education. In behaviour
he has lost much of the cavalier politeness that he
acquired from his former Spanish masters, and that
generally sits so easily on the shoulders of the Malay
races. In the ordinary shops, and wherever he attends
you in semi-public places, he is not only more independent
in his mien, but he is frequently bordering on the rude
and impolite. It is not the nonchalance that is often
displayed by the Oriental, because he is too indolent to
be otherwise, but is unfortunately the rudeness that comes
from familiarity with the West.
In the matter of the development of the Archipelago
the subject of the admission of Chinese may be mentioned.
Chinese newcomers are still rigorously excluded, and the
INDOLENCE OF NATIVES 103
advancement of the islands, in the opinion of most com-
petent observers, is still hindered in its most material
aspect. The results of admission of Chinese and their
mixing freely with the natives giving no trouble to the
authorities show that the Americans have little to
fear from the Celestials the most industrious of Asiatics.
Of one thing they may rest assured, and that is the
islands will never go ahead to then* full capacity for
development without imported labour, but the Americans
have not yet found this out. Millions of Chinese would
come in under special legislation, and probably submit
to a poll-tax of $10 per head. This ensures revenue,
and the Chinese can take care of themselves. The
Filipino, under nearly ten years of American rule, has not
yet developed a great capacity for work, and in a utili-
tarian world, full of principle of the survival of the fittest,
he who won't work shall not eat. In the domestic way
wages are high ; they have been unnecessarily forced up
in every way, apart from the fact that whether in town
or country the Filipino abhors any consistently pro-
longed labour. The wages market has been demoralised
from the start by the Americans freely donating gold
dollars for silver, and now there are not so many dollars
to disburse. A military officer mentioned to me that
when they first came, a personal servant asked $9 (pesos)
a month. This was thought to be preposterous, and he
was given $9 (gold) just the double. My friend went
on to say : "It was not so many months after engage-
ment that we found they were not even worth the $9
(pesos) that they had themselves asked for wages. We
would gladly reduce them now, but cannot do so, though
they have decidedly not become more efficient."
At the present time the military force maintained
in the islands amounts to 13,000 white troops of all arms,
5,000 native scouts closely allied to the white garrison
for any active operations, and 3,000 constabulary, who
act as a sort of semi-military police. It is probable
that these numbers are about as low as safety would
104 MANILA
recommend, though they are, as regards white troops,
greatly in excess of the numbers maintained in the old
Spanish days. General Wood, then commanding the
military forces, than whom no one has a better grasp of the
whole problem of the islands, whether it is in the military
or any other sense, states that it would be unwise to make
any considerable reduction in the total strength of the
garrison. Good results seem to have been obtained
from the native constabulary under American officers.
In association with American troops in action they have
acquitted themselves with credit, and in the severe fight
at Mount Da jo they distinguished themselves. To quote
from the annual report of General Wood, the " organ-
isation, and the regulations governing it and its efficiency,
are the results, almost wholly, of the work of carefully
selected officers of the Army, and it is believed that the
result accomplished by these officers has been very
creditable to them, and that the organisation, everything
considered, is an excellent and efficient one." The
Filipino, if his loyalty can be depended upon, is doubtless
better adapted for such service which appeals to the
Malay character than he is when elevated into civil
positions for which, by training and tradition, he is quite
unsuited. Moreover, he is under command of competent
superiors, and not left to work his own will, which has as
a base too often only ignorance sometimes aggravated
by racial antagonism. The only thing against the
Constabulary Force is its cost.
A good deal has been done in material ways to improve
the general conditions of life in Manila. The sanitary
conditions have been changed, and the city and adjacent
roads have been scavenged and watered in a way that one
was unaccustomed to in Spanish times. Roads and bridges
have been improved, though directly you are a mile or
two outside the town the conditions of the roads leave
much to be desired. Manila has undergone some trans-
formation in the shape of a portion of the old city walls
being razed, and in the useful work that has been done
IMPROVEMENTS IN THE CITY 105
in filling up the old moat, formerly a sink for all un-
cleanliness, and a fertile location for breeding mosquitoes.
The good work already done might be extended by
converting the new ground into something useful or
ornamental ; such, for instance, as the excellent way
in which the open land on the city side of the Bridge of
Spain has been utilised. It forms a species of public
park, and the assembling of a small living zoological
collection is the delight of all natives, whether old or
young. An excellent service of frequent and speedy
tramcars, useful alike to native and foreigner, is at work
all over Manila, and to such suburbs as Fort McKinley,
where the military are stationed, and Malabon, some few
miles out into the country. In other ways one may note
a decided improvement in the shops along the Escolta,
many of which have been rebuilt. A new alignment,
giving greater breadth to this popular and much fre-
quented street, would materially assist both pedestrian
and wheeled traffic. Life has been rendered somewhat
more luxurious by the erection of two plants for cold
storage, and the manufacture of ice that popular com-
modity in the tropics, and especially where two or three
Americans are gathered together.
What Manila is to become under the proposals of
Mr. Burnham, the architect, who paid a special visit
to study the problem, need not be inquired into, as they
are at present scarcely within the realm of practical
politics. It may be noted, however, that, under the
scheme, Manila is to become the show place of the tropics,
with parks and parkways, avenues, and a boulevard
250 feet wide, extending all the way along the sea front
from the Luneta to Cavite. Very magnificent, doubtless,
but quite beyond the city's means at the present time.
It is even contemplated in Mr. Burnham's mind that the
city might extend northward, and then another similar
boulevard would be created along the shore on the other
side of the Pasig River.
The three great works by way of improvement that
106 MANILA
have been done, or are in course of progress, are, however,
the port works, the sewerage works, and the works for the
new water supply. The port works are practically com-
pleted, and should suffice for the wants of Manila for some
years to come. They have been constructed to the left
of the debouchement of the River Pasig. A considerable
area has been enclosed by breakwaters, forming a pro-
tected harbour. A certain portion of this enclosed area
has been dredged to a uniform depth of 30 feet. Within
this, again, is a small inner basin with a depth of 18 feet.
This basin leads by a short cutting through the left bank
into the Pasig. That river discharges into Manila Bay
outside the port area, and to the right of the harbour,
when looked at from the land side. The dredged spoils
have been utilised to reclaim a considerable area of 190
acres parallel with the shore, and commencing from the
cutting and inner basin already mentioned, and extending
in a south-easterly direction. Projecting from the outer
face of this reclamation are two steel wharves, respectively
650 feet by 110 feet broad, and 600 feet by 70 feet, and
one timber wharf 500 feet by 50 feet. These are in the
30-foot dredged area. Adjoining this reclaimed area is
another reclamation along the sea front of the Luneta
the site of the fashionable gatherings of all Manila every
evening known as the Luneta extension, and consisting
of about sixty-one acres of new land.
Progress is being made with the other two works,
and should improve the general health and conditions of
life in Manila. But if Manila makes a brave show in such
matters, the provinces are being rather starved to provide
for the wants and luxuries of the capital.
As regards communications, the shipping trade of
Manila is well supplied with a plentiful service of steamers
from Hong Kong, besides the Pacific liners that have
added Manila Bay to their ports of call. From Hong
Kong the China and Manila Steamship Company have
two excellent vessels (liners in miniature), and the China
Navigation Company and the Indo - China Steam
THE MANILA RAILROAD COMPANY 107
Navigation Company each provide a weekly departure
from either port. There are, in addition, the Australian
steamers of the China Navigation Company, the Nippon
Yusen Kaisha, and the Australian Steam Navigation
Company, which have regular departures to and from
Manila for either Hong Kong or Australian ports.
Australia, by means of cold storage boats, has a consider-
able trade in meat, butter, and other perishable produce.
The overseas trade is therefore well provided for. The
same cannot be said of the coastwise trade, which has
been severely handicapped in the treatment it has received
at the hands of the authorities, and even from Govern-
ment competition.
Internally the Manila Railroad Company is doing
much. It took over the Manila Railway. By the arrange-
ment the main Manila-Dagupan line is extended, and a
number of feeders that should be valuable hi making the
line financially successful are arranged for, and are at
present in full swing of construction. The new company
practically monopolises railway enterprise hi the island
of Luzon, though it has no agreement restricting com-
peting lines, whilst the construction of lines in the other
large islands of the archipelago are consigned to the
J. G. White Company, a considerable contracting com-
pany. The new arrangement referred to contemplates
the building of 428 miles of railway in Luzon, including
about 100 miles in Albay and Ambos Camarines districts.
Amongst the extensions is one from Dagupan to Camp 1.
This is on the road to, and about twenty miles distant from,
Baguio, in the north, the Simla of the Philippines.
PART II. CHINA,
CHAPTER VII.
HONG KONG AND ITS ENVIRONS.
Prominent Place in the Empire Its Growth Finances Pay of Civil
Servants Exchange Kowloon Railway Buildings on the Praya
Reclamation Naval Yard Industries Quarry Bay Dock and Ship-
yard Wharf Accommodation Water Supply Steamer Communica-
tions Freedom for Commerce Canton Educational Movement
Shameen Launch Traffic Yueh-Han Railway Samshui West
River Wuchow Nanning Lekin River Navigation The Coast
Ports Swatow Railway to Chao-chow-fu Amoy Foreign Learning
The Kulangsu Municipality Chinese Post Office and Native Customs
Chinese Emigration Formosan Trade Railways Foochow The
Foreign Community Industries Tea Trade.
WHATEVER may be the conditions of the moment in
Hong Kong, whether business is good, bad, or indifferent,
and it has not been good for the last two years, we may
always remember the words of Dr. Eitel in his " History
of the Colony of Hong Kong." This was published in 1895 ;
but what the learned doctor, who had been a resident
in the colony for so many years, wrote then is equally
applicable now. He states : "It requires no prophet's
gift to see that the politics of the near future centre in
the East. . . . Contests will be sure to arise, and in
these contests Hong Kong will be one of the stations
most important for the general strength of the British
Empire. . . . Hong Kong will yet have a prominent
place in the future of the British Empire." This is a very
different opinion formulated after Hong Kong had
been under the British flag for over half a century to
that recorded by one of its earliest historians. The
shade of the late Montgomery Martin must be turn-
ing uneasily if it be cognisant of what the city of
112 HONG KONG AND ITS ENVIRONS
Victoria is at the present time. Besides the city, there
is the, then undreamed-of, town, stretching above, all
along what is generally known as the Peak, and the
equally unforeseen town on the adjacent Kowloon penin-
sula. Martin gave it as a dictum that Hong Kong was
a " useless and barren rock, unlikely to be of the faintest
value to us or any other European Power," and sixty
years ago the leading London organ predicted its downfall.
What has been achieved in the interval requires to be
seen to be grasped in all the reality of the present con-
ditions. The development is marvellous, and it will
certainly continue despite an occasional check. A few
landmarks remain, and go on from strength to strength,
but the general face of things has been greatly trans-
formed. It is withal a handsome place. The banks,
the new blocks of offices on the reclaimed Praya ground,
the new Law Courts and Post Office and the dwelling
houses may with justice be described as palatial.
In the matter of the Colony's finances, the revenue for
1907 showed a considerable decrease, due largely to reduc-
tions in opium. It is, perhaps, useful that opium gave a
sort of warning decrease. What I have already written
respecting the Straits Settlements applies equally to Hong
Kong. China is believed to be moving towards reduction
and extinction of opium smoking amongst Chinese. The
British Government at home has rightly promised to
assist in reducing and extinguishing the growth of the
poppy in India, presumably on the assumption that
" God helps the man who helps himself " ; and that if
the Chinese will themselves honestly move in the matter,
it will assist her. It was not expected, however, that
the Home Government would deal so drastically with the
Colony as it did by its edict of May 6th last. China
may, or may not, be honest in her endeavours to stamp
out the opium habit, as we shall know in due time, but
the possible danger threatening so considerable a source
of revenue to Hong Kong was one that it was obvious
should not be overlooked. The Colony will now have
THE COLONY'S FINANCES 113
to adopt other measures, as from early in 1909 it will
lose a considerable sum per month. It is fortunately not
burdened with much public debt, which only amounts
to roughly 1,500,000. The Colonial Treasurer's state-
ment of assets and liabilities on April 30th last shows
balance of assets of $1,447,816. Liabilities were $2,067,322
(exclusive of public debt) and assets $3,517,138. The
debt includes the money for the Kowloon railway,
and the sum loaned to the Viceroy Chang Chih-tung
for the re-purchase of the American concession for the
Hankow-Canton railway.
Though the revenue is down, and there are no over-
flowing funds, I must say that I sympathise with the
civil servants of the Colony in then* grievance respecting
sterling pay and the rate of exchange. It is true that
a few years ago, when exchange had to all seeming
had the bottom knocked clean out of it, a petition
for sterling pay was favourably received, and the rates
in sterling fixed accordingly. Since then the Civil Servant
has been hit the other way through rise in exchange,
and hit as hard as he was before by the low rate ; but for
different reasons. Now he is again scoring by low
exchange. The conclusion I think most reasonable
people would come to is that a certain proportion of the
pay of each holder of office should be made in sterling
and the rest in local currency. The main expenditure
of civil servants, as with all foreign residents, is the local
cost of living. When the dollar was low, wages, rents,
and bazaar prices went up, and they showed little tendency
to return to, shall I say normal, as a result of higher
exchange. The bulk of expenditure is in such things.
The truth is that with a low exchange and dollar pay,
the recipient, whether civil servant or mercantile, or bank
employe, is hit hard if he has home remittances to make.
With sterling pay, and consequently fewer dollars at
the higher rate, local expenses in Hong Kong hit you,
because though you have fewer dollars to disburse for
home remittances, you have also fewer for the current
114 HONG KONG AND ITS ENVIRONS
monthly expenses the more serious item of the two.
One way or another, unless your pay is large enough to
cover either contingency, you are surely affected. It
seems to me, therefore, that all employes, whether civil
servants or assistants in banks, firms, or other em-
ployment, should be remunerated by a combination of
sterling and local currency.
Whilst on matters pertaining to the Government,
and of considerable interest to the foreign population,
I may note that it was more than once remarked to me
that the time has now arrived when greater facilities should
be extended in the educational way on behalf of white
children. The numbers have greatly increased, and at
the same time the parents have not the same financial
ability, that they possessed in days gone by, to send
their progeny home for education. Dollars are not
so plentiful, and the consequent drag bears more heavily
on many classes of the community. The matter was
even mentioned to me in Manila, whence a certain
number of children are sent for purposes of educa-
tion to Hong Kong. This, of course, may be merely
a desire to get advantages near by that would only be
derived from sending children home. At the same time,
conditions of life and residence, and the consequently
increasing difficulty of sending children home, seem to
point to the time having arrived when something more
might be done for the white population than can be ob-
tained at existing institutions.
It is difficult to say that Hong Kong should go on a
fixed exchange, which it could do, but fears to attempt,
whilst China, on which it is dependent, prefers to abide
by the changes of the white metal. Though business
has been bad, there is some gratification in the know-
ledge that from the experience gained, the system of
trading has been put on a sounder basis than has been the
custom hitherto. This should gives hopes of less risky
business in the immediate future. How long this will
prevail before the bad system of long credits again becomes
THE KOWLOON RAILWAY 115
prevalent, one cannot say. To gain an advantage over
a competitor some one firm, and then another, may break
away from the healthier and sounder conditions now
established.
The Kowloon section of the railway line that runs
from the peninsula opposite to Victoria to Canton has
been actively in progress for some time. The whole line
within the new territory is about twenty-one miles in
length, running through rather broken country ; what
the French would term accidente. A tunnel about l
miles has to be constructed through the main range, and
is a fairly formidable piece of work. A shaft has been
sunk near either terminus ; between the two shafts,
roughly, one mile has to be tunnelled through tolerably
hard granite all the way. The shafts give four faces to
work on instead of two, and will later assist ventilation.
The tunnel is for a single line, which to the ordinary man
with an eye on what the traffic should be seems to be
wrong. Financial reasons are the cause of the double
line not being provided for. The three years necessary
to complete the tunnel will give time for the Chinese
portion of the line from the Kowloon frontier station to
Canton to be constructed by 1910. This portion of the
line should not be difficult, but there will be a certain
amount of bridge work, and notably a fair sized bridge
to cross the Tungkiang (East River). I may note that
the terminus at the Kowloon end will be on reclaimed
land in Hunghom Bay, opposite the establishment of
the Hong Kong and Whampoa Dock Company.
One of the terms of the contract between the Chinese
Government and the British and Chinese Corporation
provides that the Viceroy of the two Kwang shall arrange
separate terms with regard to joining together the Canton
line to that of the Kowloon line. It may be said that the
line should be worked throughout as one single under-
taking, and that in this respect account must be taken
of the cost of constructing the Kowloon section. Another
matter that should be provided for is through communi-
i2
116 HONG KONG AND ITS ENVIRONS
cation with the Hankow line. There must be no break
in Canton, as is at present contemplated apparently
by the Chinese. An electric tramway connecting the two
stations will be a poor working machine for through traffic,
which would require two extra handlings besides the cost
of haulage between the two termini. Finally, it will be
necessary to decide definitely that there be no mistake
about British management of the line, not only during
the currency of the loan by which the Chinese portion will
be constructed, but in addition subsequently to that
period, or the welfare of the Kowloon section may be
jeopardised. These three points must be kept clearly in
front to safeguard the interests of the colony, and the
money it has sunk in the enterprise. The keen interest
taken by the ex-Governor of Hong Kong, Sir Matthew
Nathan, in the construction of the line, with which his
Excellency had so intimately associated himself, caused
many regrets to be felt at his departure. There is no
doubt that they were very keen and heartfelt. From
the moment that Sir Matthew arrived in the Colony he
secured the respect, and indeed affection, in many ways,
of all sections of the population. Capable, energetic,
and with an apparently unlimited and insatiable capacity
for hard work, he was leaving his mark on Hong Kong
and Kowloon. The railway will always remain as a
memento of his too short administration, even though
its completion will take place under another regime.
He was a man whom Hong Kong could be, and was,
proud to have at its head. After the railway his work
for the Volunteer force perhaps stands out most con-
spicuously, though in many other ways his unflagging
industry will not be readily forgotten.
The considerable area of new ground created as the
result of the Praya extension has now been practically
built over ; there are only one or two lots still vacant.
If the big blocks are sadly wanting in uniformity of style
and colour, when seen from the harbour, they are
individually fine sets of office buildings. They are all
THE NEW NAVAL YARD 117
occupied, and, indeed, everyone seems to have been
playing at the game of general post, during the last few
years, in so far as location of offices is concerned. On
Jardine's portion of the extended Praya line the new
Post Office is being slowly erected, at the angle of the
Praya and Peddar Street. It is a convenient site with
Peddar's wharf just in front. This has unfortunately
been re-named Blake Pier. An historic name like Peddar's
Wharf should not be allowed to disappear in this way.
If it is necessary that there should be a Blake Pier the
name might be bestowed on the Statue Pier near by,
and leave the name with all its associations to pertain to
the wharf at the foot of Peddar Street. It has become
time-honoured, and without very strong reasons should
not be allowed to fall out. It is probably better known
to the launch laodahs and sampan fraternity by its old
name. The Duke of Connaught's statue is now set up
on Connaught Road, at the foot of Peddar Street, facing
the wharf and harbour. It had been reposing in a mat-
shed near the new Law Courts, but was hurriedly dis-
interred just prior to the Duke's visit in 1907.
The new Naval Yard works have been a considerable
undertaking. They have meant the reclamation of some
70 acres, including the practical enclosure of 9J acres
of boat basin, where there is a depth of 30 feet. The quays
are fitted with shears for lifting weights on vessels repairing.
There are four such to lift twenty tons each, and one of
the capacity of 50 tons. The new dock is a fine piece of
granite-faced work, with cement foundations of 12 feet
to 15 feet. The walls are granite-faced. There is a depth
of 33 feet on the approaching channel and entrance to
the dock, which would be sufficient to take in a
Dreadnought. Efficient pumping appliances have been
erected, whilst the power-house, machine and engineers'
shops, boat-house, foundry and store-houses collectively
constitute a fine piece of work, and should bring the yard
well on time for modern requirements ; but it is much to
be regretted that it has been constructed on its present
118 HONG KONG AND ITS ENVIRONS
site. The Naval Yard itself and this new extension, is
on land that will be sorely needed for purposes of extend-
ing the city of Victoria. It cuts it into two portions.
The Hong Kong public was perhaps remiss in that it
did not awake to the importance of the matter until it
was almost too late to stop the new scheme. At the
same time, the value of the old Naval Yard would have
met the whole cost of its removal to another site, and the
erection of a new yard thoroughly up-to-date in every
way. It could have been done at no cost to the nation,
which would have been saved the sum spent on the present
extension. It may likewise be pointed out that, par-
ticularly in summer-time, when everything is open, the
noise from the yard must considerably affect the hospitals
stationed almost immediately above it, whilst life at
Headquarter House will be rendered almost unbearable
when such work as ri vetting is in progress. One is almost
led to wonder whether it would not be worth while to
make a bid even yet for the property for the purpose of
extending the town, on the basis of the erection of a
naval yard elsewhere. The whole area of 70 acres of
reclaimed land, plus the old naval yard, would be available
for building sites. It could scarcely be termed vandal-
ism, though it might savour of extravagance an ex-
travagance that would probably pay for itself in the long
run.
In the matter of industries, Hong Kong continues to
make progress. Amongst recent creations are a couple
of breweries and a flour mill, though the latter has had a
brief and chequered career. It was situated in Junk
Bay. Great hopes are also entertained regarding the
prospects of the iron mine situated in the new territory
beyond Kowloon. A company has been formed to work
it, and very promising reports are issued. Another
new industry is a cigarette factory, for which the land
has been acquired, and the buildings erected at Kowloon.
I may briefly mention that there are two sugar refineries ;
that the cement works are so active that the capital
THE KOWLOON DOCK 119
has been doubled, and the capacity of turning out Port-
land cement greatly increased ; that there is a rope factory;
that a considerable small steamer boat-building industry
exists in the colony ; that the cotton-spinning factory
continues to work fairly satisfactorily ; that kerosene
oil godowns form a feature ; the Shell Company
at Tai-kok-tsui, and the Royal Dutch at Causeway
Bay have installations, and the Standard Oil Company
has followed suit on Kowloon territory ; and that,
generally speaking, all these industries seem in a
tolerably flourishing state. There remains one of Hong
Kong's greatest and oldest industries, that of the docking,
repairing, and building of ships and vessels of all classes
and dimensions. The Hong Kong and Whampoa Dock
Company, with its comparatively small capital of
$2,500,000, continues to keep abreast of the times. Since
last seeing its chief Kowloon establishment, in Hunghom
Bay, across the harbour from Hong Kong, the company
has erected a fine new machine shop and installed electric
drive and many new tools, motor-cranes, and other
appliances. Hydraulic power is also used for ri vetting,
flanging and bending, besides operating the capstans at
the docks and some of the cranes. A power-house for
the electric drives, and another for hydraulic power
supply almost all requirements. As regards the docks,
the largest, which was lengthened to 556 feet a few years
ago, is to be further extended by 125 feet. The width
at the entrance is 75 feet. The company has establish-
ments on a lesser scale at Aberdeen, at the back of Hong
Kong Island, and at Samshuipo. Hitherto the company
owning all the docks either at Kowloon or on Hong
Kong Island has had virtually a monopoly of the business,
though it has to meet competition from Japan, Shanghai,
and Singapore. The withdrawal of all the large ships
of the British naval force has shorn it of some of its work,
and it is threatened ere long with the competition of the
Quarry Bay establishment, erected by Messrs. Butterfield
& Swire.
120 HONG KONG AND ITS ENVIRONS
It will certainly meet with the admiration of all who
see what has been created at Quarry Bay, adjacent to
the Taikoo sugar refinery, also an appanage of the same
firm. The first thing that claims attention is the fine
dock, all granite-faced and lined, which has been con-
structed half out of the land and half built out on the
reclamation. This dock is 750 feet in length by 88 feet
in width at the top of the entrance, and 120 feet inside
measurement. There is 34.6 feet on the sill at high water
spring tides. The caisson is of the new sliding type,
which, when the dock is opened, slides into a recess at
the side. Besides the dry dock there are three hauling up
slips, one of which is 1,030 feet on the rail by 80 feet broad,
and the other two are 980 feet each on the rail, and 60 feet
wide. Any one of these three will take 2,700 tons dead-
weight, which is sufficient to handle any vessel of the
ordinary coaster- type in Far Eastern waters. There
is likewise a building slip intended for the construction
of vessels of about 2,500 tons, which is also up to the
requirements of most coaster- type boats. To provide
the necessary accommodation for these docks, for the
pumping and power stations, and the accompanying
machine, foundry, fitting, and other shops and accessories,
a great deal of land, amounting in all to some fifty acres,
has been levelled or reclaimed. The spoil necessary to
fill in the reclamation has been obtained by clearing away
a hill, the site of which in turn has been converted into
available flat ground. The main road, proceeding east-
ward, formerly ran through about where the centre of
the dock now occurs. It has been deflected at the back of
the yard. No less than 1,400,000 cubic yards of material,
running about 2| to 3 tons to the cubic yard, has been
moved. Much of the work has been done by contract
under the direct supervision of the engineers, and one
frequently saw whole families engaged men, women,
and children each doing something to contribute to the
total earnings. When in full working order, there will
probably be about 4,000 men employed in the yard. All
THE QUARRY BAY DOCK 121
the power used throughout in the various shops will
be practically electric ; for special work, such as rivetting,
it will be hydraulic. To the eastward of the yard the
company has taken up further land, where quarters
will be erected for a larger number of the men employed.
They will thus be close at hand. The dock and shops
have been started as an adjunct to the China Navigation
Company, where its vessels can be docked and repaired,
and new steamers constructed. The company possesses
the considerable fleet of some 60 vessels, and you cannot
be long in any of the Treaty ports hi China without seeing
at least one vessel of the line. It has regular services
also to Manila and Australia, and runs a line from
Shanghai to Yokohama via ports. Besides providing
facilities for its own steamers the yard will be in a position
to dock, repair, or construct any vessels that it can secure.
It is undoubtedly a big undertaking, and is a notable
increase to the industrial capacities of Hong Kong.
Closely allied to the matter of docking comes the
question of wharf accommodation. Hong Kong had
long since to increase its storing facilities across the
harbour on the Kowloon side. Shipping seems to have
taken regularly to that side of the harbour, and with the
prospect of the railway being completed in a few years,
it has assumed greater proportions. More accommodation
has been provided, and more is contemplated. The Blue
Funnel Company, indeed, has acquired an excellent
site not far from the railway terminus, where an extensive
range of godowns has been constructed. A good deal
of reclamation is constantly in progress on the Kowloon
side, and godowns or storage accommodation will doubt-
less be provided on much of the new ground. By the
way, when the Government gives leases of ground to be
reclaimed, it stipulates whence the spoil is to be obtained.
One of the many low hills which abound on the Kowloon
peninsula is selected, and its removal makes further
available sites for roads or buildings. This is done
naturally, under the circumstances, at a cheap cost to
122 HONG KONG AND ITS ENVIRONS
the Government. The whole of the Kowloon district
has greatly progressed, and, with the advent of the railway,
its prospects of further increase would seem to be greatly
augmented. At its back lies the new territory, which
is also opening out and developing all the time. The
road, right through the district to Taipo, a distance of
eighteen miles, greatly assists in development, and one
may already see a fair amount of traffic passing along
it. The whole district has now attained to good working
order, and is effectively policed and administered. There
is room, of course, for the expenditure of money on public
works, mainly in the direction of roads that would open
up further areas for the cultivation of vegetables and
garden produce, for which there is always a ready market
in Hong Kong. One could expatiate a good deal on
the glories and possibilities of the new territory. It
is being rapidly converted from the erstwhile fabled
abode of dragons (as its name implies) to a busy corner
of the British Empire.
Hong Kong revenues have been recently somewhat
heavily drawn upon to provide one very necessary com-
modity a plentiful supply of pure water. Large works
are being carried out both at Hong Kong and Kowloon.
On the Hong Kong side the capacity of the Tytam
Reservoir has been more than doubled, and a further
storage obtained for some 200,000,000 gallons of water.
This, like the previous Tytam supply, is pumped up to
the conduit level which goes through a short tunnel in
the hills and is distributed by gravitation to Victoria.
The pumping station is almost at sea level, and would
be available, in case the much larger scheme that is in
contemplation is carried out. This suggested further
scheme is to enclose a considerable area at the head of
Tytam Bay, and for the purpose a certain quantity of
foreshore and sea bed would be enclosed, the retaining
wall being really in the sea. The very considerable
storage capacity of about 1,200,000,000 gallons would thus
be provided for, and with this in prospect Hong Kong
THE CBEEK DIVIDING SHAMEEK FROM NATIVE CITY, CA.NTON.
THE CANTON RIVER VIEW FROM SHAMEEN.
[122]
WATERWORKS 123
need not fear that a plentiful and adequate supply of good
water, ample for all purposes, will not be at its disposal.
The new waterworks at Kowloon are likewise con-
siderable in extent. They are also being carried out by
a Chinese contractor. As the Public Works Department
has not the requisite staff to supervise these works, as
well as the Tytam works and the current work of the
Department, the Kowloon scheme is being supervised
by the local firm of Messrs. Denison, Ram & Gibbs. Mr.
Gibbs was himself in the Public Works Department
when the Kowloon scheme was drawn up, so that he
was conversant with the requirements. The new scheme
provides : a storage reservoir to impound 350,000,000
gallons of water, directly fed from a catchment area of
460 acres ; two miles of catchwater channel at a gradient
of 1 in 2,400, which drains a further area of 400 acres,
and is susceptible of being prolonged for three more miles,
and thus add 600 acres to the drainage area ; three filter-
beds, each capable of filtering 500,000 gallons per day ;
a service reservoir holding 2,000,000 gallons ; the necessary
connecting pipes between storage reservoir, filter-beds
and service reservoir ; and about seven miles of additional
mains to extend the present distributing system. The
service reservoir is situated just beyond the old boundary
line of British territory, and has a capacity of 2,000,000
gallons. The total cost of the whole work comes to about
$1,250,000, and it is expected the supply in a year of
tolerably severe drought will amount to 1,500,000 gallons
per day.
Hong Kong may be truly said to possess unrivalled
steamer communication with almost every part of the
world. There are the mail lines for Europe, America,
India, and Australia. The main lines of big shipping
are certainly cause of remark, but equally so is the
immense fleet of coasters. The China Navigation
Company, with its sixty vessels, the Indo-Chma with
a large fleet, the China Merchants, several Japanese
coasting lines, the Douglas Company, the China and
124 HONG KONG AND ITS ENVIRONS
Manila Company, and others, keep up constant com-
munication with all the ports of China, Japan, Formosa
the Philli pines, Siam, Indo-China, and Borneo. In the
harbour, a British harbour, it may be noted, the British
flag is still largely in evidence ; it is not swamped by the
foreign ensigns that are welcomed and given equal rights
with it. In Singapore at times one has to look around
for the red ensign ; in Hong Kong it seems always in
evidence. Even the Japanese flag, numerous as its
entries now are, does not seem so greatly in evidence
afloat as Japanese subjects undoubtedly are ashore.
The attendant satellite of the liner, or coaster, the steam
launch, is everywhere extraordinarily in evidence. Hong
Kong Harbour has no less than 300 launches constantly
flitting about on its waters, and is in this way one of the
busiest in the world.
The two great factors of Hong Kong's success remain
as they always have been. They are the flag that be-
tokens the sovereignty, and the freedom of commerce
it implies, plus its geographical position at the door of a
great continent where a vast trade may be done, and grow
vaster with its gradual opening. The possession of Hong
Kong is a great privilege, but it is likewise a great
responsibility. This outpost on the borders of a great
Empire, which has not yet achieved its proper position
in the world's trade, is a precious inheritance handed
to each generation for its own benefit and profit, to
conserve and develop for those who follow. The achieve-
ments of earlier generations have done much to raise
the Dependency to the status it now enjoys ; we need
not fear that present dwellers or their successors will
be faint-hearted in their day.
Recent years have wrought considerable changes in
Canton. On the occasion of my previous visit, the veteran,
Li Hung-chang, at the time somewhat in disfavour, was
Viceroy of the two Kwang (the provinces of Kwang-tung
and Kwang-si). He effectively put down piracy in the
delta for the time being, and his successor might adopt
THE VICEROY OF CANTON 125
some of his methods to suppress that class of gentry,
though the stories generally current of its prevalence
are somewhat exaggerated. After some years of the
obstructive Shum, the Viceroy, Chow Fu, who has been
well-known for some years in Shantung, was in authority
at the time of this visit. He was agreeable, but was
unfortunately no longer young. He was 71 years of age,
rather deaf, and though in fairly good health, was not
particularly active, if tolerably progressive. I had a
lengthy conversation with his Excellency, and he certainly
impressed me as being desirous of pushing forward the
many progressive measures that are being undertaken
in and around Canton. He talked of bunding schemes,
the proposal for an electric tramway in the city, the
Kowloon railway, the proposed Honam bridge, which
would span from Canton to the Dutch Folly, and thence
again to Honam, and also of waterworks. His Excellency
likewise spoke somewhat bitterly of the freedom enjoyed
by the Chinese papers published in Hong Kong ; they
appeared to be a considerable thorn in his side. He could
not appreciate the British point of view, and wanted to
know why these papers were not suppressed. He said
he had forbidden their entry into his Viceroyalty, but he
would evidently like to see them stopped entirely. It
was little comfort that one could give him, beyond sug-
gesting a press law for China, though of not too drastic
a character. One desires to see the native press grow,
but that it should not be an element entirely subversive
of the present order of things. I pointed out that his
Excellency was exhibiting progressive views in the works
he was undertaking, and the schools being founded
throughout the province, and that it would be well to
treat the press in a spirit somewhat in accord with these
signs of the times. It may be remarked that in all these
schemes he encountered much opposition from the treasurer
of the province. He was a most obstructive personage,
one of the worst of the old type of mandarin, and the
Viceroy found it difficult to extract the requisite funds
126 HONG KONG AND ITS ENVIRONS
out of his reactionary subordinate. On the other hand,
he had a willing coadjutor in the person of Wu Ting-fang,
who was on leave from Peking practically he had resigned
and did not expect to take up office again at the capital.
His Excellency is a life-long friend of the Viceroy, and was
to be found almost always at the Yamen. Since my visit
he has been successively appointed Chinese Commissioner
for the Canton-Kowloon railway, to act with the British
representative to be appointed by the signatories of the
contract, and then Chinese Minister at Washington,
thus resuming his former post. He is a man who knows
his own people well, and whilst he is conservative to the
extent that he would prefer to see China develop herself,
he is not the least reactionary ; if Chinese will not build
railways, open mines, and otherwise develop the resources
of the country, he would let foreigners do this for her,
whilst the property would always remain Chinese, and
only the development would be given into foreign hands.
China demonstrates in most ways that she cannot carry
out these works herself, and at the same time she is un-
willing to the last degree that foreigners should do it.
It is to be hoped that one absurdity now contemplated
will not be perpetrated. At present it is proposed that
the terminus of the Canton-Kowloon railway and the
terminus of the Canton-Hankow line shall not be con-
tiguous, or that through connection can be obtained.
It is suggested that the mile or so that divides them shall
be bridged by an electric tramway. The inconvenience to
passengers would be great, but for handling goods it
would be even worse. I need not detail the condition
of the line towards Hankow. It is being slowly con-
structed by the Chinese themselves amidst endless
squabbles between shareholders and directors, and charges
of peculation of funds. Progress is, however, being
made.
With regard to change in Canton in other directions,
one cannot fail to be struck with what has been done,
and what is now being taken in hand. Both Chinese
IMPROVEMENTS AT CANTON 127
and foreigners contribute their share. Along what is
known as the Back Reach you may see the bunding that
has been done by several owners, and the considerable
scheme that has been carried out by the China Navigation
Company in the way of filling in land, bunding, and
constructing godowns. Then the Chinese have done
much below Shameen, not very well at times, to be sure,
and the work had largely to be gone over, and in part
re-done under foreign supervision. Still, they have been
at work, assured apparently of the desirability of bunding.
The line, I may note, is considerably in advance of where
the old factory site existed. One or two streets have
been gradually reclaimed from the river, and now the
bunding is set forward sufficiently to leave a fairly
respectable width of maloo (horse road). This is distinctly
an advance for Canton. The collection of some miles of
water mains at the ^ide of this road was evidence that
the waterworks a boon to Canton were being taken
in hand in earnest. The reservoir is at White Cloud
Mountains, where an abundant supply of excellent water
can be obtained. Further reclamation beyond the steamer
wharves, and then, again, above Shameen is also
contemplated. Another great improvement may be
seen on the ground formerly occupied by the Temple
of Longevity. The temple itself was razed, and the site
and grounds within which it stood built up on distinctly
new lines for Canton. Roads thirty feet wide from house
to house, are laid out, whilst the houses are what one may
term the Hong Kong style, being generally of three
stories with a colonnade. A market is also provided,
and if it would not be up to Hong Kong standards it is
a great advance over Canton methods. The whole is an
object lesson of what can and should be done. Perhaps
as the fires that periodically occur in Canton clear out
spaces, this type of road and house may be further adopted.
It would render locomotion, the handling of goods, and
such matters as water supply, and possibly even sanita-
tion, much easier. As the Chinese are generally practical
128 HONG KONG AND ITS ENVIRONS
and the Cantonese quite as much so as the natives of
any province, they will doubtless recognise the benefits
of such changes.
Canton is not behind in providing accommodation
for the " new learning." The most conspicuous is the
Normal College now under construction on the site of
the old Examination Hall. The long rows, with their
hundreds of cubicles, have entirely disappeared, and in
their place three blocks of buildings, comprising theatre,
lecture halls, and class-rooms, were being erected. In the
rear is a three-storey building that will provide accom-
modation for some hundreds of the students that will
attend the college. Primary and secondary school build-
ings are also contemplated, as well as a hospital and
medical school. The whole scheme is intended as an
example that can be copied elsewhere, and as an object
lesson to other towns in the province.
In another way progress has also been made. Instead
of the riff-raff that formerly did duty as police in the native
city, there is now a uniformed force, whose appearance,
if not exactly smart, bears some resemblance to that con-
dition. They are fairly neat in their uniforms, and for
headgear wear a peak cap in winter time. The peak cap,
by the way, seems to be greatly in favour, not only with
the cadet class who wear it to complete a khaki or other
uniform, but with anyone who can become the possessor
of such an article. The fact gives some air of foreign
ideas to the place, which is further suggested by the
considerable number of photographic stores all over
the native city, and the many shops that are almost
entirely filled with foreign nick-nacks and odds and ends.
Their number is really conspicuous. One reform that
is not without hope, though it may not be attempted
for some time, is that the useless city walls should be
razed. An effective object lesson was provided, during
its reign at Tientsin, by the Provisional Government.
It pulled down the wall and made an excellent road
in its place. Canton might do likewise, and make a fine
THE SHAMEEN CONCESSION 129
species of ring boulevard on the model of Vienna. There
would be room for an electric tramway that would provide
a ready means of conveyance, whilst as opportunity
offered, or the funds could be provided, better roads
could lead off this boulevard towards the centre of the
city.
Amidst the changes Shameen, the foreigner's abode,
which is fortunately not the cage that the old factory
site was half a century and more ago, has gone ahead.
It has been completely built up, and only one vacant
lot remains the owner holding out for his price.
Foreign firms have slightly increased in number, whilst
the presence of two banks one American and one French
and the fact that the two leading British banking
institutions have secured sites, betokens the view taken of
the future. Electric light is now used for public lighting,
and is general on most houses on the concession. It may
be remarked that there are no less than five Post Offices
for the despatch of either foreign or native mail matter.
There are, besides the Chinese Imperial Post, the British,
French, German, and Japanese offices. Not all of them
do a large business. It may be noted, when we are
inclined to think so much of our penny postage, that a
letter can be mailed from any one place in China to any
other for the modest sum of c.2, say, one halfpenny.
Viewing the distances and present means of communi-
cation in China, a world-wide penny postage would in
comparison not be anything extraordinary ; and yet China
is accused of being non-progressive ! Anyway, as the
Chinese are fairly prolific letter writers, and like to dis-
seminate news, this cheap method should prove of consider-
able educational value.
A noteworthy matter is the number of launches that
may be observed plying in Canton waters. They may be
seen about all over the river, proceeding to or from every
part of the delta, or anchored in clusters in such spots
as the Back Reach. Eight years ago the number of these
craft registered in accordance with the Inland Waters
130 HONG KONG AND ITS ENVIRONS
Steam Navigation Regulations was 143 vessels in all,
and those registered for West River trade numbered
30 vessels. Now the number of Chinese vessels alone
registered at Canton amounts to 163 vessels of 2,840
tons in all ; British steamers number 45, of 1,440 tons ;
German, 2 vessels, of 24 tons ; French, 32, of 410 tons ;
and American 1, of 49 tons. At Samshui, Wuchow,
and Kongmoon, 15 other vessels are now registered under
Inland Waters Certificates, and three for regular trading
on the West River. Between them this fleet makes
probably close on 10,000 trips a month, so that if piracy
may have some terrors it does not entirely stop the
traffic. All of these vessels are inspected by the Customs
authorities once a year, the condition of hull, engines
and boilers being examined, and a certificate issued.
It is evident, from the amount of foreign and native
capital sunk in Canton of recent years, that confidence
is felt in its future. The amount of coastwise shipping
is very great. Its geographical position favours the out-
look for the future. The place seems destined to go ahead,
and when the railway communications, of which it will be
the centre, are constructed, its prospects will be still
further enhanced. They must assist in its development.
From Canton my route lay up the W T est River, and
as the steamer had proceeded direct from Hong Kong
to Samshui, I took the opportunity of proceeding there,
over the Canton-Samshui Railway. This is a portion
of the Yueh-han, or Canton-Hankow, line, though its
point of departure from Canton is on the opposite side of
the river to the main line. It is about 30 miles in length,
and was constructed by the American-Belgian parties
originally associated with the enterprise. It is standard
gauge, the road bed being fairly well laid and quite adapted
to the moderate speeds attempted. The Chinese have
retained one foreigner, Mr. Lind, as superintendent of
the line, and considering that he has to control every-
thing, from supervision of locomotives and rolling stock
to upkeep of road bed and repairing shops and stations,
THE SAMSHUI RAILWAY 131
he must have his hands tolerably full at times. All the
drivers and stokers, the conductors and station-masters,
are Chinese, and they seem, under the superintendent's
supervision, to run the line well. The trains keep good
time and are usually packed. The line pays well, and
returns a good dividend, though it has to put much of
its earnings into capital account. The Chinese will not
put up any more capital to complete the works ; con-
sequently the erection of a locomotive shed, of workshops,
carriage factory, and the construction of permanent
stations, have to be gradually provided out of earnings.
Practically, whatever surplus remains, after providing
the dividend the Chinese demand, is thus utilised on
capital account. The line traverses a generally flat
rice-growing district, and only a few low hills have made
a little cutting and grading necessary. The station at
Samshui is about half a mile or so from the river, but
may possibly be taken nearer the bank later on,
facilitating the handling of freight and adding to the
convenience of passengers.
Arrived at Samshui, we found the steamer Lintan
already at anchor. She is owned by Butterfield & Swire,
but flies the amalgamated flag, as the service is run on
joint account by the China Navigation Company, the
Indo-China Steam Navigation Company, and the Steam-
boat Company (the Hong Kong, Canton, and Macao
Steamboat Company).
Concerning the scenery of the West River, there are
two capital guide-books issued by the companies, which
tell you all about the river and its immediate surround-
ings. In one of these you are reminded of the beauties
of scenery on the West River, with its high mountain
ranges, its gorges, its peculiar thread-like continuation
of lakes one after another, with barriers of high land
always ahead. There are pretty green hills rising directly
from the water's edge, cultivated with patches of tea, hemp,
tobacco, cassia, indigo, and the mulberry (for the large
surrounding silk district), and other fruit-bearing trees.
K'2
132 HONG KONG AND ITS ENVIRONS
The river has occasionally sloping banks where the high
land has receded, leaving a fertile valley, and where some
picturesque village or small township nestled beneath
the spreading banyan has deposited itself, invited, as
it were, by the prospect of a rich food-producing soil.
Then, again, the banana palm and the fan palm and
the Ramie plant (China grass) grow in full luxuriance,
as also the giant bamboo, forming extensive groves of
graceful foliage, and lending a delicate softness to one of
the prettiest panoramic landscapes to be found anywhere
in this part of the world. The growth is extremely
picturesque, but the huge rafts of bamboo poles met on
the river often form considerable obstruction to
navigation.
There are likewise many large brick-kilns to be
observed on the banks, where the well-known blue
Kwangtung bricks are extensively manufactured. The
fuel to bake them comes down the river from the upper
part of the province, and from Kwangsi, on boats loaded
high up above the decks. It consists of twigs, grass,
and other vegetable refuse. Fodder for the buffaloes,
which are used to knead out the clay, when being worked
up, also comes down in similarly laden boats. The
collection of this fodder and fuel, with its carriage con-
stitutes no mean industry in itself. Along the hillsides one
may see shoots, often some hundreds of yards in length, for
sending these materials down to the river banks.
Another feature is the crops being grown on the fore-
shore of the river at period of low water.
One heard much of piracy, but it is really more of the
nature of armed gang robbery with violence than piracy
in the true meaning of that word. The fraternity who
carry out these gang robberies, with occasionally
murderous assaults, is a fairly numerous one, and seems
to defy the sometimes half-hearted, and at others blood-
thirsty, attempts of the officials to put an end to them.
All trading nations are therefore concerned in the sup-
pression of the so-called piracy. Much good work is
WEST RIVER PIRACY 133
done by the various gunboats. There are three British
river vessels (too slow in speed, it may be noted), besides
other foreign and Chinese armed boats, whilst Chinese
guard boats are as numerous as they appear to be
generally ineffective. The gunboats also do a certain
amount of survey work, and the little Robin, then under
the command of Lieutenant Walcott, R.N., had made a
name for herself in such work as well as in the inspection,
etc., of launches running on the river. Under pressure,
the Chinese authorities are now dealing more vigorously
with riverine disorder, and a fleet of vessels is being
constructed at Hong Kong to cope with the evil. A
by-the-way is that now Nanning is opened to foreign
trade (it may be recalled that it was supposed to have
been opened in 1899 at the same time as Ching-wan-tao,
Santuao, and Yochow), it would be advisable for the
British naval authorities to provide a motor boat of
shallow draught that can proceed to that port. The
distance by water is 370 miles. The advantages of
" showing the flag " there would seem to be many.
For some time previous to our making Wuchow at
mid-day the lofty pagoda on the high hill facing the city
was in view as a conspicuous landmark. Shortly before
reaching it, two rocky islets, known as Chicken Basket
Island, are passed. At high water season in summer
the difference in level is from 50 feet to 60 feet
the lower of these gets covered, and at times even the
joss-house on top of the higher one gets invaded by the
watery element. This season has been abnormal, with
disastrous results all along the valley. Wuchow is situated
below the confluence of the Fu-ho with the West River.
The Fu-ho, which washes one side of the city, is a source
of much trouble when in freshet in the summer. Its
mouth is then almost impassable, whilst dangerous eddies
and currents are formed in the West River.
At Wuchow the Customs office is still on a pai
(pontoon) on the river. Most of the business is indeed
done on pai. The Lintan was made fast to two, into
134 HONG KONG AND ITS ENVIRONS
which she discharged as into a godown, and where the
export cargo is collected for the down trip. The British
Consulate, which was formerly located on a house-boat,
has now a fine position on the summit of a hill on the
western side of the Fu-ho. Extensive and picturesque
views may be obtained from it up and down the West
River and up the Fu-ho. The Chinese authorities have
been permitted to rent, at a nominal amount, a signal
station situated within the grounds, which commands
all three stretches of water, and whence an excellent view
is obtained. The Consulate office is lower down the hill,
at an elevation designed just to clear flood level. Some
little inconvenience is caused by the Consulate being
situated the other side of the Fu from Wuchow. On hills
behind the Consulate there is a group of missionary
buildings, and behind these again is the grave and monu-
ment erected to Dr. Macdonald, who was murdered on the
occasion of the piracy of the Sainam, in July, 1906. It is a
site that peculiarly appeals to the Chinese mind. From
this position his spirit may look down on the hospital near
the West River bank, which he so ably directed, and where
he did so much good. Within the city of Wuchow, an
excellent view over which is obtained from the British
Consulate grounds across the Fu-ho, may be seen the new
foreign colleges and schools that form so conspicuous an
object now in all cities and towns throughout the country.
One can only hope each time that one sees these con-
structions that they are the forerunners of what we term
progress throughout the country, but of the ultimate
effect of which so little can be clearly discerned at present.
Students in uniform are conspicuous here as elsewhere.
It was certainly a sign of the times to meet at the Taotai's
yamen an English and French-speaking queueless Chinese
official bound to Kweilin, the provincial capital, to take
up his post. His wife withal spoke English, and was
quite accustomed to foreign ways and dress. The powers
and influence of such men may not be great at present,
but in time should bear fruit.
OPENING OF NANNING 135
Trade along the West River seems to be slowly
gathering way, though its volume has scarcely come up
to expectations. It is, perhaps, worth noting that
certain articles, owing to lekin (tung-shui), or other ex-
actions, still go to Hong Kong. There they obtain
ex- territorial rights, and are then re-exported to Chinese
territory. Amongst industries of Wuchow of sufficient
importance to be worth noting is that of boat-building.
Quite a large number of fairly well-built strong craft
are turned out each year.
The opening to foreign trade of Nanning should,
by the establishment of the Imperial Maritime Customs
arrangements there, effect an important change in trade
conditions at Wuchow, which has hitherto been the
controlling centre on the West River. Cargo from the
Nanning district, which has hitherto been secured by
competing foreign steamship companies at Wuchow
under a system of transit passes, will, under the changed
conditions, no longer be procured by those passes, for the
exporter should be able to forward his goods by chartered
junk from Nanning to Wuchow, without payment of
any lekin (tung-shui) taxation en route. Hitherto the
competing companies have secured cargo from the
Nanning district through the medium of Wuchow
" forwarding agents," who obtained and distributed
transit passes amongst their Nanning and other up-country
constituents.
It is reported and generally believed amongst the
Chinese, that the idea of making Nanning the capital
of Kwangsi has been relinquished only for the present,
and the proposition will again be considered when the
effect of the changed conditions of West River trade at
Nanning become evident. The French are seeking to
get trade down to Lungchow, which would, if successful,
be of the utmost importance to shipping interests on the
West River, as a quantity of valuable freight obtained
from the Lungchow region would then be diverted.
French priests are met with everywhere on the upper
136 HONG KONG AND ITS ENVIRONS
river, and many of the sons of Chinese officials take lessons,
and talk, in French. When we promote our trade, and
when British motor gunboats patrol the upper waters,
the natives may believe that Englishmen dwell on
earth.
Opium has figured considerably in West River trade,
and though there would at present seem to be little
indication of an actually decreased opium trade, the
opinion seems to be unanimous amongst the better
informed in the province, that the younger generation,
not yet addicted to the drug, are morally renouncing its
use. A decrease in the opium trade, which passing into
or through the two Kwang provinces, and that is
principally conducted at Kweichow, Paksik, Nanning
Kweilin, and Wuchow, will result in a diminished transit
of yarn and piece goods through West River waters,
for reasons which are obvious.
Respecting railways, the Lungchow-Nanning route
has been surveyed by French engineers, and it is reported
that little hope is entertained for successful railway
enterprise in that locality. The mooted extension of
the Canton railway to Nanning seems to be a matter of
deep interest in the minds of Nanning merchants, who
apparently regard the plan as both feasible and profit-
able. Due consideration for the poorness and danger
of the intermediate hilly country would seem to be dis-
missed from the minds of these merchants, whose present
feverish desire encouraged somewhat by the success of
the Canton-Samshui branch is to overcome the slow
and risky transit of goods in their obstructed waterway.
Carriage of cargo by junk in the low water season, when
navigation is obstructed by the rocks in miles of river
rapids, is a matter that compels attention. Wuchow
is the " port of transhipment," but Nanning is the mart
and depot of West River trade.
The Chinese authorities have cheaply " taken over "
a certain area at Nanning to be leased out to foreigners
in lots for any period from one to thirty years, under
(
FOREIGN SETTLEMENT AT NANNING 137
regulations drawn up apparently on the same lines as
those of the so-called settlements of Hangchow or
Soochow. The site is the highest one at Nanning, and
is always above high- water level. An extensive stone
and mortar retaining wall, whose foundations are
seemingly scientific and solid, has been constructed.
Building lots are divided into " river front," " middle,"
and " back " sections, to be leased respectively at $60,
$40, and $20 no separate lessee being allowed to have
less than two nor more than eleven mow. Inquiries are
being made through the Imperial Maritime Customs,
and tenders were invited semi-officially from German
firms, for the installation of electric lighting throughout
the settlement. The plan shows broad, well laid-out
roads (maloos), and the residential site of a fine house
which is being built for the Chinese Superintendent of
Customs. The upper boundary stone of this settlement
is situated below the " newly-opened port of Nanning,"
and as the Customs station was fixed to be on the
settlement, it seemed pretty clear that the intention of
the Chinese was to place, or, at any rate, to attempt
to place, a lekin station between the settlement and the
" newly-opened port." Another lekin station would, of
course, be placed just above the city, and thus " when
Imperial Maritime Customs' arrangements were com-
pleted " and the wheel began to move, the foreigner
would realise that the newly-opened port was of little
or no advantage to the merchant. In other words,
the settlement is opened to foreign trade but not the
city of Nanning. This was obviously the intention,
but representations were made at Peking, and the
assurance given that the city of Nanning, and not
merely the foreign settlement, was to be considered as
the area for foreign trade. This means that goods pur-
chased from or sold to dealers in Nanning with whom the
foreigner would be doing trade, would not be mulcted
in lekin tax on their way to or from the settlement,
where presumably the shipments would be made or
138 HONG KONG AND ITS ENVIRONS
received. It remains to be seen what effect generally
the opening of Nanning to foreign trade will have on
West River traffic.
The real opening of China's inland waterways to steam
navigation, and, as a consequence, her vast markets to
trade, would undoubtedly benefit both China and the
world. Since 1898 the inland waters of China have been
supposed to be open to steam navigation, but the con-
cession was largely nullified by impracticable rules and
regulations. These have been modified since the first
impossible rules were drawn up, but there still remain
anomalies that prevent the full benefit being reaped by
either side. Chinese revenue would presumably benefit as
well as owners of steamer lines. There are so many interests
in China that when the spokes of the wheel receive a
turn, one or more of those interests becomes affected.
This is especially the case when the foreigner comes
along, and the dues and duties he pays get swept into
the Imperial coffers, displacing payments that formerly
found their way into provincial exchequers. If it had
only been made a system that when this occurred a certain
proportion of the collection had been handed over by the
collecting agency, the Imperial Maritime Customs, as
was done in the case of the opium lekin, arranged under
the additional Article of the Chefoo Convention, much
trouble would have been saved and smooth working
possibly assured. Now that native customs and lekin
are largely in the hands of the Customs, there is not the
same inducement for native officials to cut fine and get
below Treaty rates of export and import duty. It was
evident that as long as junks were carrying certain classes
of cargo that pertained by right, as it were, to steamer
traffic, they were getting more favourable duties than
steamers ; but, short of insisting that junks could not carry
such cargoes, it was difficult to see how the point could be
carried. It is certainly an unfortunate circumstance that
the more the country is opened to foreign trade, the more
are the provinces deprived of their revenue. Every time
PASSENGER TRAFFIC ON THE WEST RIVER 139
a new route, such as the West River, for instance, is
opened to foreign navigation, there results a further
shrinkage of provincial revenue.
A trip up and down the river forcibly demonstrates
the enormous passenger traffic. Everywhere you see
crowded passenger boats, mostly steam towed, but many
depending alone for motive power on sail or oar, supple-
mented by the powerful yuloh. Waterways have for
centuries been the chief highways of China ; but the
immense number of passengers transported on the waters
of the West River and the Canton delta must be seen to
be appreciated. The difficulties of navigating the West
River are at the same time very considerable. Apart
from the question of channel in flood-water season, there
are many sandbanks and rocks, some of the latter only
visible at dead low water, and the former constantly
shifting. Many of these dangers are uncharted. The
Customs has done something in the provision of buoys
and beacons, whilst for small fees the lepers in some
districts maintain bamboo marks. These are very useful,
as when a raft passes over them they bend to the weight
and return when it has passed, whereas other marks
are often swept away by them. These rafts are a real
danger, to navigation. They are often of great size,
and drift wherever wind or stream may take them. Some-
times two or three drift together, and between them
completely block the river for a time. In another, and
minor way, big tows are likewise a nuisance, and often
an obstruction. A launch or small steam vessel with
fifteen or twenty boats lashed either abreast or pulled
by tow-ropes astern is naturally awkward and unwieldy
to handle.
The East Coast ports of China, or the " Coast ports,"
as they are usually termed in Hong Kong, still remain
somewhat off the beaten track. The mere tourist will
probably proceed direct from Hong Kong to Shanghai
in the liner, unless he has some friend to visit, or has been
specially recommended to make the trip up via ports. He
140 HONG KONG AND ITS ENVIRONS
misses a good deal which the large centres of Hong Kong,
Shanghai, Tientsin, or Hankow do not provide him with ;
for the Coast ports show him a sort of final glimpse of what
the erstwhile Treaty port or hong life consisted in China.
That phase is, however, passing. The ports have, indeed,
lost much of those characteristics, but some few traits
remain to remind one of past glories, and the time when
the Mexican dollar showed a bold front in exchange of
over 4s. Commercially and socially, the ports present
many attractions, and well repay a visit. The time-
honoured Douglas line of steamers still makes the run
up as pleasant as of yore, and though you are reminded
in Hong Kong of the severities of Japanese competition
on the line, as also to Formosa, directly you are on board
you are aware that the traditions associated with the
name remain intact. Of course the traveller must reckon
with the elements, for the Formosa channel in a com-
paratively small steamer can only be equalled for un-
comfortable conditions by the British Channel. Either
forms a species of funnel wherein the wind becomes
concentrated and the seas are of the choppiest description.
Leaving Hong Kong about mid-day, Swatow is reached
at daylight next morning. Entering the port, the locale
of the former foreign merchants' residences may still be
seen at Double Island. All business is now, and has for
long been done at Swatow. Here at Kialat, as it is
known, are the hongs and a few of the foreign residences.
The bulk of the foreign population resides across the river
at Kakchio. The method is generally convenient, but
it is not one that has yet been adopted by the British
Government. The Consul has his residence on the Kak-
chio side, but there is no office on the Swatow side, where
all the business is transacted. It is an inconvenience
that has been frequently pointed out.
Swatow now rejoices in a railway to Chao-chow-fu,
the port really opened to foreign commerce. Its effect
on the trade of Swatow will doubtless lead to an in-
crease in course of time, as other railway developments
FOREIGN TRADE OF SWATOW 141
progress. The line is about 32 miles in length, and was
constructed by Japanese contractors. At present the
station on the Kialat side is somewhat distant, but it
is intended to bring it to the river front on a new re-
clamation of foreshore, in alignment with the reclamations
already carried out. The line brought about considerable
inflation in the value of land, and several people had no
cause of complaint against this result of the railway. Its
ultimate destiny would seem to be that it should be a
branch of the main Canton-Hankow line. It is hoped,
at least, that the many " interests " which surround
railways generally in China, and Chinese-constructed
lines in particular, will not militate against the connection
of the Swatow section with the main trunk line. This
would mean much for the railway itself, and also for
Swatow interests.
The foreign trade of the port has progressed, and with
it foreign shipping. As far as foreigners are concerned,
it is mainly in the way of shipping that the greatest
advance can be scored ; but it is principally the larger
companies that are affected, smaller lines being driven
off by stress of competition. Swatow was formerly con-
sidered one of the minor ports, but it now does a consider-
able trade, and yields a fair sum to the Customs Revenue.
A feature to be noted is the growth of Japanese interests
and the Japanese community. Everywhere one sees
evidences of their activity and increase. As contractors
for the construction of the railway their numbers largely
augmented, and now they seem to be embarking along
many other lines. A notable change here, as I have
already remarked of Canton and other places, is the
creation of foreign schools. Here you have the Anglo-
Chinese College, educating the youth of China along
foreign ways, to an end no one can yet foresee. There
is likewise an increase along medical missionary lines ;
in the direction of hospitals also much good work that
should bear fruit in after years is being done.
It is the same phase that will be observed on entering
142 HONG KONG AND ITS ENVIRONS
Amoy Harbour, the next port of call. Foreign colleges
are springing up everywhere, and a striking building is
seen on coming up to the anchorage. It is an Anglo-
Chinese college having foreign teachers. Though con-
structed entirely out of Chinese funds the benefactors
have wisely left it under foreign control on certain
trust lines. Seeing the chaotic condition of much that
has been, and is being, formulated, towards attaining
the new " foreign learning," it will be interesting to
observe the growth of the present venture.
Kulangsu, the island across the harbour where foreigners
mainly reside, was constituted an international settle-
ment by the Chinese Government in 1903. Its conditions
have certainly been greatly improved since, as the appear-
ance and scavenging of the roads testify to. A rate of
assessment is made, to which the Chinese are also
amenable, whilst the little domain is more effectively
policed and regulated. It is a feature that one may see
substantial residences erected on Kulangsu by wealthy
Chinese who have returned from abroad. There they
can live in comparative immunity from " squeeze," and
at least they know that as regards the island they are
fairly safe from arrest on spurious charges, intended only
to extort money, and that they have only their municipal
rates to pay. Though it is practically only the residential
quarter for foreigners, again, as at Swatow, one finds
the British Consulate on that side. The distance is
certainly less across the harbour, and convenience is
not so much interfered with, but it is to be regretted
that the Consulate Office is not on the business side
that is, Amoy. Certainly one may find by a little inquiry
that a British post office exists in Amoy, but from personal
experience I found that stamps could not be purchased
thereat ! Next door was, however, the greatly extending
and generally punctually performed service carried out
by the Chinese Imperial Post. This organisation is being
greatly extended throughout the whole country. It is
efficient and popular, but it has great trouble in getting
FOREIGN RESIDENTS AT AMOY 143
satisfactory postal agents in the interior. Defalcations
are constant, and such a case as an agent gambling away
Post Office funds is not uncommon. In a case mentioned
to me the loss reached $4,000 ; the agent had lost the
money to the local magistrate! the functionary presumably
who should have had the oversight of the employe, and
arrested him for any such proceedings. The amount
that the Post Office Revenue yearly suffers from fraud
must run into a large sum, little of which can be recovered.
Another noteworthy matter respecting Chinese ways
has been the revelations that have come to light as the
result of the Native Customs being handed over to the
Imperial Maritime Customs. The Chinese staff in the
Amoy district under native ways was about 300. This
has now been brought down to about 25, whilst the col-
lected revenue promptly doubled, and has since further
greatly increased. This is going on all over China, as
the figures which are now given by the Foreign Inspector-
ate abundantly show. The question always recurs :
What would China not be able to achieve if the revenue,
actually collected and submitted to by the Chinese nation,
was honestly applied ?
The spectacle is presented here, as happens, one may
observe, at most of the ports in China, of the number
of foreign residents having largely increased, whilst the
actual number of foreign hongs is either stationary or
the numbers even reduced. The growth seems to have
arisen through increase in the number of assistants in
firms, necessitated by the condition that a larger turnover
is required to produce the same amount, or even less, of
profit, than was attainable before. At most ports also,
and certainly at Amoy, the extra duties now performed
by the Maritime Customs requires an additional staff
to carry them out. The missionary community has
everywhere largely augmented its numbers.
In the way of foreign business it is shipping which
has again largely increased, not to mention the busy
activity of native launches and small steam-craft of all
144 HONG KONG AND ITS ENVIRONS
sorts and conditions, of quaint appearance, and suggested
instability and unseaworthiness. Foreign shipping has
increased, and so has Japanese, whose increased interests
in other directions must again be observed. Shipping
and tea still remain the chief objects of foreign interest
at Amoy. General imports and exports of produce are
practically in Chinese hands. The coolie traffic is still
a considerable matter, and shipping is largely interested
in the emigrants' passenger service, whilst the province
of Fuhkien, in itself a poor tract of country, is equally
greatly interested in the remittances that come back
from workers in the Straits, Siam, or other foreign
countries. Should the suggested railway from Amoy
to Foochow be constructed, something may be done to
open out the mineral resources of the province, which
are probably all it has to look to for increased prosperity.
Another line from Amoy to Swatow is farther in the
background. It is idle to speculate when either line is
likely to be consummated, but there are many who speak
hopefully of the line to Foochow being undertaken within
a reasonable period of time. It would presumably be
constructed by money put up by Straits Chinese.
The other matter I have referred to is the export of tea.
This still seems to be in an uncertain state. The
Japanese have now been in occupation of Formosa for
some twelve years, and they have not ceased to make
efforts to deflect the trade in Oolongs from Amoy,
shipment being direct from Keelung to Japan and America.
It is, perhaps, quite natural that these efforts should be
m.ade, and a differential export tax of c.60 a picul has
long existed. Still Amoy manages to secure a fair share
of the trade, and Chinese are certainly interested in main-
taining it ; but as Keelung Harbour is developed, so the
Formosan tea trade is decreased at Amoy. The ultimate
Japanese object is to make the harbour at Keelung
accessible for large trans-Pacific liners, which would take
cargo there and avoid even the transhipment that now
takes place in Japanese ports.
DEFENCES OF FOOCHOW 145
Eighteen hours' run takes you from Amoy to the White
Dogs Rocks at the entrance of the Min River. Two
hours more and the vessel reaches Pagoda Anchorage.
The journey up the Min has been picturesque. From
the anchorage you proceed by launch for the intervening
nine miles to Foochow, or rather Nantai, where the
foreign community is located, across the river from the
native city. The stone bridge of " Ten thousand ages "
forms the connecting link with the city. You are aware
on the way up that the obstructions, sunk in the river
in the shape' of junks loaded with stone, deposited over
twenty years ago at the period of the French " reprisals,"
have not yet been removed. The junks are still undisposed
of, and are a source of danger to launches. It is a pity
the torpedo school attached to the arsenal at Pagoda
Anchorage cannot have practical demonstrations by
removing the obstacles. A hostile power which had
penetrated so far would soon make short work of what
is not a real defence to Foochow, but only a barrier
to trade. The seaward defence of Foochow rests on the
forts at the Kimpai and Mingan Passes, lower down the
river. If these forts were properly armed and manned
the river could be rendered impregnable. Nature certainly
has done its best to make the task of defence com-
paratively easy.
At Nantai foreign houses have considerably increased,
particularly for missionary and school purposes, for the
missionary population swells continually. Two out of
every three foreign constructions appear to be occupied
by missionaries. The roads in the foreign locality have
been considerably improved, judiciously widened here
and there, and more shady trees provided. More efficient
scavenging is done though there remains room for more,
if effective control could be secured. One of the topics
interesting the community, as it has done for some years,
is the suggestion to get a kind of municipality. A special
form of tax perhaps a wharf tax added to a uniform
rate assessment, might secure the funds needed for better
L
146 HONG KONG AND ITS ENVIRONS
police arrangements, scavenging, road-making, and such
matters as are generally conducted by a municipality.
Whatever may be the condition of mercantile affairs
at Foochow, and much of its former glory has, alas !
departed, the community always seems to maintain
what would, to a casual observer, seem an ever-present
aspect of cheerfulness. The tea trade, the erstwhile
reason for the foreigner at the port, may have largely
disappeared, but you would find no apparent trace of
such a fact at the hour before dinner when the community
gathers at the Club. Tea still remains of some consider-
able importance, but it is no longer the one article of trade.
Camphor has recently come to the front, whilst flour and
kerosene imports have attained dimensions that are use-
ful to foreigners. Most other commodities, including the
big trade in Foochow poles, or Tientsin, as they are often
called because of that port taking so considerable a num-
ber, is done through Chinese hands. In commercial
circles Russian tea hongs and one or two others have
left, but Japanese have greatly increased. It seems
to be the case that the Japanese have gone ahead and
the rest have gone astern, generally speaking. They
have, however, done nothing very special on their own
settlement, which lies lower down on the river front
than the present foreign quarter. Nor have they yet
created any particular industries, though they have a
primitive glass factory, where exceedingly cheap articles
are produced. Foochow industries in foreign hands have
not progressed. The match factory and the sawmill on
the city side are closed down, and the preparation of tea
by machinery has ceased its operations for some years.
The only industry working was the sawmill on the Nantai
side, which I found in full swing making kerosene-oil
boxes. The supply of poles can usually be relied on,
but the native lumberers are exceedingly conservative
as to the lengths into which they are cut. This is usually
9 ft. 4in., and all inducements to get them to deliver
poles of, say, either 8 ft. 6 in. or 10 ft. 6 in., which would
RESOURCES OF FUHKIEN 147
be very convenient lengths, and save both cutting
and waste, have hitherto proved abortive. Relatively,
the Chinaman would probably secure a better price,
but his conservatism prevents any alteration being
achieved. His forbears cut them 9 ft. 4 in., and he
goes on precisely the same. In noting the industries
of Foochow, in which foreigners are interested, mention
should perhaps be made of the Arsenal at Pagoda
Anchorage, as it carries out a certain amount of outside
work apart from Government requirements. Originally
constructed under French auspices, the foreign element
became eliminated till a new French mission took it in
hand in the late nineties of last century. This was at
the request of the French Minister in Peking. The
mission expired in the autumn of 1907. Local opposition
to renewal was strong, for it is the Fuhkien authorities
who have to pay its cost. The province pleads it is poor,
and cannot afford such luxuries as arsenals. It has
practically to live to itself, for Nature has shut it off from
easy communication except by sea. Hills surround it,
and it has few outlets. This fact has benefited it likewise
at times, for the natural barrier provided saved it from
the devastating effects of the Taiping rebellion. Apart
from minerals, which are said to exist, but have not been
properly exploited, a chief source of its wealth consists
of the labour it exports. This, in turn, sends home con-
siderable remittances, or the erstwhile coolie returns
with wealth to spend at home. Should the railway from
Amoy be constructed, it will provide some further com-
munication. If it is to reach the city of Foochow, the
Mm River must be bridged. There are suggestions that
a high-level bridge, probably of the suspension variety,
could be constructed at either the Kimpai or Mingan Pass.
Such an erection need present no great difficulty to the
engineers, though the cost must necessarily be consider-
able.
The same eager desire for foreign learning witnessed
elsewhere is again in evidence in Foochow. Within the
L2
148 HONG KONG AND ITS ENVIRONS
city there is a high school, a normal school, a military
school, and a police school. Certainly energy is apparent
in this direction, and one is set to wondering again what
the outcome of all this activity is to be. Will it be used
for the country's good ? And above all (and it is the real
serious question for the ultimate success of China), will
it be the means of hurling down the great and all-powerful
god of " Squeeze " ? Until he is dethroned, and China's
vast revenues handled with some degree of honesty, reform
will never have truly penetrated the country.
Commercially, Foochow generally is keeping up its
figures fairly well, even though the foreigner may not
have as large a share in it as he would desire. The efforts
that are being made to revive interest in China tea and
increase its consumption in the United Kingdom have
been favourably received in Foochow, and the port will
doubtless acquiesce in any general line of policy that may
be adopted. What may be done remains yet to be seen.
It is hoped that the Imperial Chinese Government may
assist, for the answer previously given when assistance
was sought to save the position that the trade was not
lost but only diverted, is not as correct now. What Great
Britain then failed to take was exported to Russia.
That plea no longer holds, for the actual export and
consequently the revenue have both declined. China
is therefore more concerned at present. It is certainly
within her own interest that she should help herself
and not leave it solely to the foreigner interested in the
trade to do all the propagandist work. China tea can
meet its rivals unmistakably for quality if not for price,
but it must have modern methods for making itself known.
It is a pity a more determined effort to meet the enter-
prise that Ceylon and India have shown has not been
previously made, for markets that might have been held
have been partially lost, and will require much energy
ere they are regained.
CHAPTER VIII.
SHANGHAI AND THE YANGTSZE.
Expansion of Shanghai Growth of Settlements and Country Districts
Means of Locomotion An Alert Community Chinese copy Foreign
Methods Municipal Council Shanghai's Position in Foreign Trade of
China Woosung Bar Yangtsze Valley Nanking Hankow Bunds
Industries Hanyang Ironworks Arsenal SteamerConftnunications
Hunan, the formerly Sealed Province Changsha Progress and the
New Learning Siangtan Pinghsiang Coal Mine.
THE growth and expansion of Shanghai must be
seen to be fully appreciated. A resident of only a
few years ago would be astounded at the develop-
ment that has been brought about. More than a moiety
of the foreign trade of China belongs to Shanghai ; it
ranks as the eighth shipping port of the world, and is
destined to improve on that position. The scene coming
up the Hwangpoo River prepares you somewhat for
what may be observed. Alike on either side you have
the tall chimneys of cotton mills, silk filatures, shipbuild-
ing and engineering works, oil tanks, and other evidences
of industrial development, and you note such extensive
works as the length of foreshore that has been bunded
by Messrs. Butterfield & Swire. There are likewise
the great ranges of godowns of Jardine's, and the
Associated wharves, the Nippon Yusen Kaisha godowns,
and many others, affording a busy and active scene on
either side of the river. Arrived at the Settlements there
is a wealth of new buildings, conspicuous amongst which
one notes the handsome pile comprising the German Club,
erected on the site of the old Jinkee (Gibb's) hong. The
fine building of the Russo-Chinese Bank had been com-
150 SHANGHAI AND THE YANGTSZE
pleted since a previous visit to the port, whilst amongst
other commanding new constructions may be noted the
new Telegraph building, the Chinese Imperial Post Office,
the German Post Office, the new Palace Hotel, the offices
of the Mitsui Bussan Kaisha, and many others. People
are likewise beginning to get more lofty in their building
ideas. Messrs. Arnhold, Karberg & Co., when rebuilding,
desired to erect premises, 100 ft. high, on the reinforced
concrete system. The Municipal Council objected,
and they have had to restrict the elevation to 85 ft.
Along the Bund one misses, without any regrets, the
unsightly opium hulks that were previously moored off
the foreshore, and that now lie higher up the river clear
of the French Concession. A needed improvement is
in course of construction in the rebuilding of the Garden
Bridge, though it has seemingly been a long job. Near
by the public garden seems to retain, and indeed increase,
its popularity. The aliens assembled, comprising every
nationality, are sufficient to have swamped the whole
foreign community of the port only a few years since.
And yet tennis parties, the ever-popular Country Club,
the cricket ground, golf course, and other recreations
were in full force. The foreign population has grown to
something like 17,000, including Japanese. The Chinese
population has meanwhile increased to about 500,000.
Well-defined laws and security for property are assets
that the Chinaman can appreciate as well as anyone.
The growth of Shanghai is also remarkable at the back
of the Settlements, where the roads, lined with residences,
stretch far back. They indeed make that ever-popular
institution, the Country Club, situated only a little beyond
the Racecourse, almost belie its name, for the country
lies miles beyond. Below Hongkew the growth is not so
marked. Away out on the Bubbling Well Road is
Hart Road. A little way along this is the Statistical
Department of the Imperial Maritime Customs. Here
all the work of collecting statistics, printing of returns,
and production of all stationery and forms for use in the
MOTOR CARS 151
Customs is now concentrated. Residences for the
Statistical Secretary and the staff are adjacent, in the
same grounds. Then the daily sight in the afternoon
along the Maloo is a revelation. The roadway earned at
one time an unenviable reputation as the home for pro-
ducing a certain " mixture," shipped to London as tea.
It may now be celebrated for the mixture of peoples
and conveyances that take their daily drive along its
too confined width. From the humble jinricksha to the
motor car, and through all classes of horse-drawn vehicles,
you may see Shanghai of all sorts and conditions out and
about. And among some of the 130 motors that are
licensed in Shanghai, you may see more than one
manoeuvred by the Chinese owner. By-the-way, the
Chinaman seems to make a fairly efficient chauffeur. It
is of interest, perhaps, to recall the statements made when
the tramway scheme was being debated. Several persons
advocated the motor omnibus as more suitable for the
narrow roads, but the suggestion was negatived, because
it was asserted the Chinaman would not become a re-
liable chauffeur. The reverse has proved to be the fact,
and no modern invention has developed more rapidly
in Shanghai, or contributed more to the expansion of the
town, than the motor industry. Enormous motor vans,
used by firms which have their storage godowns far
removed from their offices, the Municipal Council's new
motor chemical fire-engine, etc., all prove how serviceable
the new conveyance is on the flat country.
Another sight, that is a feature of business life in Shang-
hai, to be daily seen in the Settlement, is the rush of the
exchange brokers morning and afternoon from the Hong
Kong and Shanghai Bank as soon as rates are announced.
You can almost gauge the activity of business, or the
anxieties or prospects begotten of fluctuating exchange,
by the alacrity displayed in the rush and the consequent
noise of their traps. By-the-way, custom or tradition
seems to require that these traps should always rattle,
and that no repairs should ever be executed that would
152 SHANGHAI AND THE YANGTSZE
in the least tend to reduce that noise. It would be bad
Joss. During the business hours of the day, the steps
of the bank and the adjacent pavement was crowded
with Chinese, which almost reminded one, on a lessened
scale, of the daily gathering in Throgmorton Street,
except that the noise was less. To other conveyances
Shanghai has now added a new means of locomotion,
to wit, the tramway. That tramways should be a useful
adjunct to the life of Shanghai most will admit, but in
the opinion of many they should have been confined to
the back of the Settlements and for service in the country
districts.
It may truly be said that in the ordinary daily life of
the place Shanghai presents ah 1 the necessary features
of an alert community. There is an air of bustle as of
much business doing. Shanghai, indeed, increasingly
asserts itself as a factor in the life of the whole of China.
It has become a financial, shipping, manufacturing, and
general centre, and the growth of pursuits and population
made the extension of the Settlements a matter of
necessity. The same features may be noted at Pootung,
on the opposite bank of the river, only there it is godowns
and the necessities for the actual handling of commerce,
and convenience to shipping, shipping repairs, docks,
etc., that have to be noted. Some repeat of the growth
and improvement of Shanghai is also reflected in the
native city, where the widened streets, waterworks on
Western lines, improved sanitation, etc., all go to prove,
as the Commissioner of Customs points out, "That no
invention will now be rejected by the Chinese merely
because of its originating elsewhere." The Settlements
still maintain that air of cosmopolitanism which have
always constituted a charm. In its material advancement
it owes much to its geographical position, but more to
the energy of the successive generations of commercial
and financial representatives who have made it the scene
of their labours. The results of their efforts have, perhaps,
not always been as satisfactory to themselves as individuals
THE INTERNATIONAL SETTLEMENT 153
as it has been to the general advancement of Shanghai.
Periods of depression have not been unknown, and they
have at times been very bitter, but Shanghai has always
known how to rise out of the ashes of misfortune. The
result of a step back in bad times has often been two in
advance when the tide has turned. Its growing im-
portance asserts itself even in a bad year. Alike in the
sterner field of commerce, in sport, or in social life, the
foreign community of Shanghai has interests and ex-
periences that are denied to considerable towns in the
United Kingdom or on the Continent of Europe.
With all the development has come, in a more and
more acute form, the question of the government of
the Settlements, especially the International Settle-
ment, which largely means the British Settlement.
The increasing work has necessarily been a severe tax
on the Councillors who have so ably done their work,
throughout the history of the Settlement. More particularly
must it come heavily on the Chairman, and as he, as well
as the other Councillors, is usually a busy commercial
man already, the tax is a considerable one. The Council
has done much for the material development and welfare
of the place, as its police, its roads, and general arrange-
ments bear witness. The drift of things generally is
becoming more and more difficult for a body of Municipal
Councillors, no matter how eager, or how competent,
to be able to deal with adequately. The whole question
of the government of Shanghai, including the subsidiary
issues of the question of qualification, plurality of votes,
and other matters, must inevitably arise ere long, and
a solution be sought. It seems to me there are two ways
of solving the problem. The one would be to have a salaried
mayor, who would, in fact, be the ruler of the place. He
would have to be a well-paid man of large experience,
and one who had a keen appreciation of the questions that
arise out of the extra-territorial conditions that prevail ;
and he would have to be a man of tact in handling some
fourteen Consuls, who might at any time have questions
154 SHANGHAI AND THE YANGTSZE
to settle with the Municipal authority. The other
solution is that the British Consul-General, viewing the
preponderance of British interests, and what has been
done towards creating the British Settlement by
Britishers, should be at the head of the foreign government
of the International Settlement of Shanghai. In either
case, I take it, the Mayor or the Consul-General would
be assisted by an Advisory Council, elected in much the
same way as the Councillors are at present. They would
assist him with their views and advice, but would be
relieved of all detail, and would have no power by
majority of vote to do anything that the Mayor or Consul-
General did not approve of. The matter is certainly diffi-
cult, and it would not be a very hard task to point out
many disadvantages to either proposal. Such a one-man
government would at least have the power to curtail
the operations of places like the Alhambra, which was a
disgrace to the " model settlement " for far too long.
In the world of foreign commerce in China, Shanghai
far and away leads. If other ports show a great increase
she has a like record to exhibit. Shanghai still possesses
the advantage that no matter where business is done all
over North and Central China the finance of the matter
largely remains with her. In the banking world Shanghai
has no lack of institutions. Practically every nationality
with any trade at all in China has its own banking repre-
sentation. To the list of ten banks that previously
administered to the needs of Shanghai have now to be added
the Dutch and Belgian institutions which have opened
branches at the port. With changes in other ways, the
conditions are changing in the business life of the port,
more rapidly and more vigorously perhaps than in any
other part of the Far East. Continental and American
firms are entering the field with energy, and with all the
businesslike promptitude of a modern commercial training.
Young and energetic firms on the spot, who have a know-
ledge of their business and their customers, and who are
willing to do pioneer work, are likely to prove most
MOVEMENT AMONGST CHINESE 155
successful in creating new demands and introducing new
goods. It is truly astonishing the number of small firms
whose name-plates may be observed in moving about
the Settlements names that you will frequently search
for in vain in the local directory. Many may, perhaps,
disappear after a brief existence, but some survive to
add to the keen competition which is now a feature of
Shanghai business. This competition makes it necessary
for the man on the spot to watch the market, and to
discover every possible opening for new products. The
first flush of Western education has given to the provincial
populations a sudden desire for new things ; it has created
a demand, and shown that there is in China a vast field
of new activity for the business man who is willing to
work hard in understanding his subject.
Some of the obligations pertaining to the Municipal
Council have been already briefly noted. More attaches
in the matter of education. There is need for more to be
done in Shanghai for the young foreign generation, and
there is the more general obligation respecting the large
Chinese population of the Settlements. In the cognate
field of the supply of literature to the Chinese, Shanghai
is keeping itself abreast of the times. The Society for
the Diffusion of Christian Literature amongst the Chinese
is too well-known to need more than mention. It has
had imitators for profit, and one of the latest and best
is the Commercial Press. Beyond the railway station
it has erected commodious premises, where every depart-
ment of printing, including the production of maps, is
represented. Another institution that continues to do
steady, plodding, uphill work is the International Institute.
One must truly admire the tenacity with which its founder,
Dr. Gilbert Reid, has clung to his task, in face I will
not say of discouragement, but, in the presence, of only
partial financial assistance.
Little need be said of the past of the Woosung Bar,
the grievance from which Shanghai has so long had the
misfortune to suffer. Works to remedy the defect of
156 SHANGHAI AND THE YANGTSZE
Nature are in progress. It may be recalled that the
directors of the Hwangpoo Conservancy Board are the
Taotai of Shanghai and the Commissioner of Customs,
and that the Engineer-in-Chief is Mr. J. de Rijke, whose
plans may be briefly stated :
" To divert the stream from Ship Channel on the
northern side of Gough Island to Junk Channel on the
southern side, avoiding the almost right-angle turn
over the Inner Bar into Ship Channel, so much com-
plained of by navigators ; to construct a large training
jetty at Woosung, nearly a mile in length, from Princes
Pier to the Spit Buoy on the Outer Bar ; and to con-
struct training works where needed, and especially in
the vicinity of Gough Island, to bring the river to an
easy curve and normal width from above the Chinese
city to Woosung, and cut away Pheasant Point and
other places where widening is necessary."
The total cost of the works is put down at slightly
over a million sterling, some portion of which will be
recovered on the accreted foreshores. Shanghai feels some
relief that the works are in progress, and it looks to their
successful accomplishment to help materially in its
development.
On each occasion that one visits the valley of the
Yangtsze one becomes more convinced, if possible, of the
great fertility of the valley and of the capacity of its
inhabitants to extract the utmost from its rich soil. The
normal condition of the majority of the Chinese popula-
tion is such that it has, perforce, by extreme industry,
to induce the land to yield its utmost. In the valley, as
in most parts of China, the population is hardy and
prolific. The amelioration of then: estate and the increase
of foreign trade rest largely on a better financial and
fiscal policy, by a Government that is not blindly content
to kill if it can only secure its own wants for the time
being. Each official plays his own hand for the period
he has it in his power to be taking a hand. After him
IMPROVEMENTS AT NANKING 157
the deluge may come, for, with few exceptions, all he
cares, or feels, for the well-being of his country, centres in
himself and his interests.
Proceeding up the river from Shanghai, Chinkiang is
first reached, and then Nanking, the seat of the Viceregal
Yamn. Interest was felt at the time of my visit in the
near approach of the railway from Shanghai, since
completed. It should have a considerable influence on
trade and other conditions of the city. In other ways of
communication the roads have been greatly improved,
and it is now possible for carriages to go to all parts of
the city, where, it may be noted, distances are very
considerable. The walls are themselves nearly 23 miles
round, so that an extensive area is enclosed. Intra-mural
ground is by no means covered with houses, there being
much cultivated land within its walls. The chief road,
the Maloo (horse-way), of the city, is from the port at
Hsiakwan on the river up to, and through, the city. It is
fairly well maintained, and is a credit to the Chinese.
Along the roads it is proposed to have a horse tramway.
Why should not the progress be up-to-date, and electricity
adopted ? The city could at the same time have light-
ing power available for both public and private purposes.
Telephonic communication exists, and waterworks are
coming. Nanking, in fact, is moving and developing.
The police one saw about were neatly dressed in grey
uniform, and whilst some had a slovenly ill-dressed
appearance, many were quite respectably smart. The
same remarks apply to the soldiers. Having got the army
into some form, suggestions are now being made as to
a navy. What China this part of China really needs
is not so much a navy, as proper and efficient police con-
trol over the waters of the river. Light craft of fair power
and moderate armament are the requisites. It will be
many years ere China has need of a navy that is, ships
adapted to blue water. To return within the city,
there are many new shops in a semi-foreign style, whilst
Government schools, police stations, and other buildings
158 SHANGHAI AND THE YANGTSZE
are also in foreign style. If to these we add the Customs
quarters, the fine British Consulate, and the German
and United States Consulates, we get quite a considerable
showing of foreign buildings in Nanking.
It was my pleasure, on my return down the river,
to spend several hours at the Viceregal Yamen
with His Excellency Tuan Fang, including luncheon
to a party of students who were departing the
following day for Japan. The Viceroy's name is
still favourably remembered by foreigners for his
safeguarding many missionaries at the time of the
Boxer outbreak. I had met his Excellency originally
in London, when he, with his colleague, Tai Hung-tzu,
formed one section of the famous Commission that visited
foreign countries in 1906. His Excellency's report, con-
tamed in four Chinese covers, each containing eight
medium-sized volumes, was issued just previous to my
visiting Nanking. I was made the recipient of a set of
these volumes. His Excellency is certainly leaving his
mark hi improvements in Nanking, whatever else is being
done in the provincial districts ; but, like most high
oflficials in China, he is overworked.
As we reached Nanking in the early hours of the
morning succeeding the assassination (in July, 1907)
of En Ming, the Governor of Anhui, we were the first
steamer available for the despatch of troops from Nanking
to Nganking. We took on 700 men, who seemed a decent,
orderly, well-set up lot, uniformed in khaki, and fully
equipped. Their arms and accoutrements were in fairly
good order, and they were all provided with spare
boots, haversacks, and water bottles. They were orderly
on board, and disembarked quietly and without any fuss.
Indeed, the twenty native passengers we had for
Nganking made the usual fuss and hubbub that seems
inseparable to a Chinaman doing anything of the sort,
whereas the 700 soldiers landed and formed up ashore
without either noise or confusion.
Before passing on to Wuhu, I may note that Tatung,
ANHUI AND KIANGSI RAILWAYS 159
a passenger station stopping-place, is the spot whence
the Lister Kaye Anhui Mining Concession is reached.
The actual spot is Tung Kuan Shan. The difficulties
connected with the concession are still in progress, and
work cannot proceed. Japanese are now jointly inte-
rested, but the association has not, so far, overcome the
opposition manifested to all such schemes in China at
present.
After many years as a Treaty port, without any
special foreign settlement, Wuhu is about to be pro-
vided for in this way. The land allotted is below the
city, and bunding has been carried out. The Indo-China,
the China Navigation, and the China Merchants Steam-
ship Companies had each taken up blocks of ground.
The water here is deep, and steamers will be able to come
alongside the bund without the necessity of the hulk
customary at most Yangtsze ports. Another block of
land has been taken up by the Anhui Railway Company,
and besides having this bunded, the company intends
constructing a canal about a third of a mile long. Junks
could go alongside the railway wharf to be constructed
along the bank of this canal, and thus provide con-
siderable facilities. As to the railway, this is a Chinese
line from Wuhu to Kwangtehchow, in the south-east of
the province. Wuhu should benefit from this railway
alone, whilst if it is extended and connected with lines in
adjoining provinces, the port should still further benefit.
Railways also absorb a certain amount of attention at
Kiukiang, the particular line being that from the port to
Nanchang, the capital of the province. It only seems
to be in progress of construction in a half-hearted sort
of manner. The plans were drawn up by British engineers,
the money is Chinese, and the construction is in charge
of Japanese engineers. The funds are being collected
from various sources. A lekin tax on cereals provides
some portion, and has had the result of raising the price
of rice ; subscriptions are solicited from shareholders and
arrangements suggested for a foreign loan.
160 SHANGHAI AND THE YANGTSZE
At Kiukiang you are close to the Poyang Lake.
Proceeding across this and up the river one reaches
Nanchang, the capital of the province. For the last
four summer seasons, at the period of highest water,
the China Navigation Company have run the Kian, a
steamer specially constructed for shallow draught work,
and excellently adapted for the service. She makes the
trip to Wucheng and Nanchang from Kiukiang about
once in every five days. One subsidised Japanese steamer
of the amalgamated Japanese lines is also on the lake
run.
No one can now say that there is any lack of steamers
running on the Yangtsze between the main ports of
Shanghai and Hankow. If you have the fortune to
travel in either the Butterfield & Swire steamer Kinling,
or the Tuckwo or Loongwo of the Indo-China line, you
will have the essence of luxurious steamboat travel.
They are constructed on the lines of the Fall steamers
in America, and the cabins and all appointments are of
the most comfortable order. The upper deck is devoted
entirely to European passengers, or those who rank as
such. The officers are also accommodated on this deck.
Below this is a deck devoted to first-class Chinese passen-
gers. Excellent accommodation, very little inferior to
that on the deck above, is here provided, with fine saloon
and all conveniences. Many do not appreciate what is
provided for them, and the abuse to which the fittings
are subjected is evidence of the filthiness to which even
first-class Chinese can descend ; but many not only ap-
preciate the class of accommodation now provided, but
have grown accustomed to and demand it. I have said
there is no lack of vessels now plying on the run. There
are, as a matter of fact, eight lines of steamers, of which
two each are British, German, and Chinese, the Japanese
(an amalgamation of all the previous Japanese lines)
have one, and the French have inaugurated a line with
some excellent vessels. The two British lines, the^China
Merchants, and the Japanese have vessels on the Ichang
THE HANKOW BUNDS 161
run, which port is not usually short of tonnage. Butter-
field & Swire, the Indo-China, and the Japanese have
also special shallow-draught boats running across the
Tungting Lake to Changsha on the one hand, and
Changteh on the other. The Butterfield & Swire steamer
Siangtan is again an excellent boat like the Kian,
specially constructed and fitted for the run.
Seven years is perhaps not a long period in the history
of a port that has been open to foreign trade for nearly
forty-seven years. What has been done, however, in
Hankow in the years prefixed by 1900 entirely eclipses
anything that had been done in the forty preceding ones.
Hankow, from the foreign point of view, has been
revolutionised in that time, and a like spirit has also
invaded the native city.
The forenoon of the third day after your departure
from Shanghai usually finds you alongside the hulk at
Hankow. If you should be coming from the north, it
would doubtless be by the Ching-Han Railway, which
does the run from Peking in 36 hours. As you approach
Hankow by water you come first to the railway concession,
from which spot, just above Seven Mile Creek, the con-
cessions extend right up to the native city. Above this
railway concession comes the Belgian, which has been
bought back by the Chinese and added to the adjacent
strip of land. The scheme here is to form a model Chinese
Settlement. Whether it will come to anything remains
to be seen. Above this comes the Japanese concession
which, including its extension, runs to 250 chang (a chang
is 141 inches in general, but is not always exactly the
same). Succeeding to the Japanese comes the German
concession, with the considerable frontage of 300 chang.
The French concession, which comes next in order, has
only a comparatively small river frontage, then comes
the Russian, and, finally, the British concession adjoining
the native city. Going down river, starting with the
British, there are five good miles of bunding done, then
a gap of the Japanese and the to-be model Chinese portions
162 SHANGHAI AND THE YANGTSZE
unbunded, and finally the Gare Maritime concession,
which has been bunded. The Chinese have run an em-
bankment, practically the same height as the concessions,
say 46 ft. above the low-water mark, at the back round
to the native city from Seven Mile Creek. This has had
the effect of practically keeping the Racecourse and the
back land often flooded before free generally of floods,
though not at exceptional times.
Omitting a small portion of the Russian, practically the
whole concession frontages are let to various shipping
companies, whilst in addition a Chinese, a British, and
a Japanese company have berthage off the native town.
The congestion shown here is repeated as far as shore
matters are concerned. Though a great deal of new
building has been done, the demand for houses was very
keen and rents high. A notable erection on the German
concession is a huge building for the Anglo-American
Tobacco Company, which will have a capacity of several
million cigarettes a day. Native tobacco will be used for
the greater part.
Viceroy Chang Chih-tung, whose Yamen was at
Wuchang, on the opposite side of the river, has now been
called to Peking, but his Excellency has left a strong
trail in the Hukwang provinces. He has done much,
and if the mills, ironworks, bunds, and other schemes
have not been financially successful he has at least dared
to do when others hesitated. The intention was always
good ; the execution left much to be desired. At least,
he is reported to have kept clean-handed, and, viewing
the positions he has occupied, to be still a poor man,
relatively speaking.
A very little geographical knowledge is needed to
show the great benefits that must accrue to Hankow
when the projected or contemplated railways, of which it
would be the important terminal, are constructed. The
magnificent waterway on which it stands, supplemented
by railways, make the prospects of Hankow, in normal
times, of a most excellent nature. It has already advanced
INDUSTRIES AT HANKOW 163
greatly, but it is as nothing to the developments that
will follow. The only completed line is the Ching-Han,
which connects it with the capital. This line runs at the
back of the Settlements after touching the native city,
and terminates below the Gare Fluviale, on the railway
concession. This does not give quite all the facilities
needed for the handling of cargo, and it would seem
that sidings to the Settlements are desirable. The railway
siding question is, indeed, one of the important matters
in local politics at the present time. The German con-
cession is already connected by a siding that comes down
to the foot of one of the roads to the Bund. Like treat-
ment is desired by the British concession if it is to work
on level terms with its neighbour. The railway company
does not so far seem very complaisant in the matte**,
but a little push should enable the matter to go through.
It should come down to where the present Municipal
building is situated, just off the British concession.
Hankow is gradually becoming a considerable in-
dustrial as well as commercial centre. In the foreign
godowns you may see the preparatory stages of many
articles of exports to render them more merchantable
in the foreign markets. Hides, feathers, sesamum seeds,
nutgalls, wood oil, tallow, vegetable wax, and other
commodities are so treated. This is not, strictly speaking,
industrial work, but it is the initial stage in the same.
Albumen factories are likewise still going strong, though
Chinese competition at Chinkiang has the effect of
considerably spoiling the prices. On the Wuchang side
the ventures of the Viceroy in the shape of the cotton
mill, the China grass factory, and the spinning and weaving
mills are all leased out to Chinese, and manage to main-
tain an existence of sorts. There is likewise a tannery,
where one foreigner is employed, and a Chinese glass
factory. Another development near by is an experiment
in growing native tobacco. A Filipino is in charge,
to instruct both as to growing and curing the leaf, whilst
a foreigner acts as inspector and advises generally.
M 2
164 SHANGHAI AND THE YANGTSZE
Another industry on the Wuchang side was the erection
a few years ago of machinery for crushing and refining
antimony ore. The enterprise was taken over by
Carlowitz & Co., who made considerable additions to the
plant. The site is the only one held by a foreigner on
the south bank of the river. The attempt there has led to
Chinese starting an antimony ore smelter in Hankow
city. Smelting is also carried on by other Chinese under
Japanese protection on the Japanese concession. All
the raw material comes from Changsha, in Hunan. Of
factories for brick tea, a staple of Hankow export, there
are many in Russian hands, but a new development
is the erection of a Chinese-owned factory.
The most important of local enterprises are the iron
and steel works at Hanyang, the third of the group of
three cities, which is situated on the northern bank of
the Yangtsze, that is, on the same side as Hankow, from
which it is separated by the Han River, which here joins
the mam river. The works are on a site that extends
to the bank of the Yangtsze, to afford the necessary water
facilities. It is one of the enterprises started by Chang
Chih-tung. Indeed, its existence, as well as the presence
of the Viceroy, was due to his Excellency's own sug-
gestions made to Peking as to railways. At that time
Viceroy of Canton, he suggested China, who was being
pestered on all sides for railway concessions, should make
her own railways with her own rails rolled from Chinese
ore on Chinese territory. Peking sometimes takes up
such proposals and sets the man who suggests them to
carry them out. Accordingly Chang Chih-tung was
shifted to Wuchang and told to go ahead. The story of
subsequent expense, of failure and success, need not be
told, but I may take up the thread as I saw matters on
the occasion of my visit. I found the works in the
process of being reconstructed, so that the capacity and
the class of output would be greatly increased and the
standard raised. These new works were to have been
completed by May, 1907, but there still remained much
HANYANG STEEL WORKS 165
to be done when I saw their condition in the middle of
July. The actual output of 1906 was about 5,000 tons
a month of pig-iron. Of the annual output Japan took
26,000 tons, whilst 1,000 tons went across the Pacific
to the United States. This proved to be the forerunner
of other shipments. The two original blast furnaces
turn out about 100 tons each a day. The new furnace
in process of erection was capable of producing 250 tons
a day, so that when in working order the total capacity
was 450 tons a day. The estimated output for 1908 is
160,000 tons of pig-iron, but there is doubt this
quantity will be achieved. There were originally two
steel processes working the Bessemer and the Siemens-
Martin. The Bessemer process has had to be abandoned
as the ore (all obtained from Ta-yeh, about thirty miles
away on the river, and where, but for the fact that the
Viceroy wanted the enterprise near him, the works should
have been placed) contained too much phosphorus.
The plant being erected was quite on the latest principles.
It was being installed to take the pig-iron, as it ran
from the blast furnace direct to a gas-heated boiler.
This boiler has a capacity of 150 tons each charge. Here
equality of mixture is produced, and the metal passes
straight on to be converted into steel by the Siemens-
Martin process. In addition to the roll mill new plate,
angle, etc., mills were being erected. The great plant
comprises three engines each of 6,500 h.p., with electric
travelling platform rollers. All of this new machinery
was of British make, and represented a very considerable
capital outlay. It will be able to produce girders, columns,
and all kinds of structural steel up to any quality.
High-class work is aimed at that will pass any recognised
test. The necessary machines for testing are installed
in a house near by, and arrangements were being made
for Lloyd's test certificates being issued. The iron mines
at Ta-yeh comprise an area of thirty-five square miles,
and contain about 250,000,000 tons of iron ore. The
Lion Hill, now being worked, contains 150,000,000 tons
166 SHANGHAI AND THE YANGTSZE
of ore, which is taken by rope tramway to Shih-liu-
yao, a distance of about eight miles, where it is then stored
pending shipment by steamers. The ore averages 66
per cent, of iron. The coal and coke required daily will
run to many hundreds of tons. It is hoped the Pingh-
siang mines in Hunan can supply all. The present Chinese
director Li is certainly a considerable personality. He
has been a good deal in America, speaks excellent English,
and seems thoroughly to understand his work. He
has an able expert coadjutor in Herr Ruppert. There
are besides, some ten or twelve other foreign assistants
and foremen.
The adjacent arsenal seemed to be in a semi-moribund
state, owing to the lack of necessary funds. Half
the machinery, whether for rifles, cartridges, or especially
ordnance, was standing idle. There was a general air
of being only half alive about the whole place. Some
rifles Mauser '88 pattern were being turned out, and
a certain quantity of cartridges and quick-firing ammu-
nition. No guns were being made.
Notwithstanding that tea has fallen from its high
estate, and no longer may one see the string of direct
steamers for London, and perhaps Odessa, anchored off
the Bund, it is still the centre of a good deal of interest,
and the annual arrival of the Cha-szes remains an event.
In general import business a strong attempt was recently
made to get business on a cash basis, and it would seem
that any such attempt must be in the right direction.
The result of the present and prospective railway
development and the general growth of trade to the im-
portant figures that have now been attained, is that
money is already beginning to flow to Hankow, which
bids fan* to become an important financial centre. There
is already a good deal doing, and the prospects for Hankow
becoming a really great centre are decidedly promising.
So far the developments have largely been by continental
firms. British representatives do not seem to have shown
the same alacrity. The days when you can sit in your
THE TUNGTING LAKE 167
office and the business will come to you have passed in
China, as they have in many other parts of the world.
In this connection one hears a good deal about the
Japanese hold on the Yangtsze Valley. Certainly, the
numbers of Japanese nationals have increased consider-
ably. The opinions as to what they are doing and what
they will do are very diversified. The ex- Viceroy Chang
Chih-tung greatly favoured them. For instance, he had
a Japanese sub-director of the arsenal at Hanyang, but
he had the quasi-honourable position of not being
permitted any voice or say in running the arsenal, and
the only task he had to perform was to draw his monthly
salary. In general, it must not be denied that the
Japanese have commenced a fairly vigorous attack on
the trade.
A round trip of six days from, and back to, Hankow
enables you to visit Changsha and Siangtan. You
proceed up the Yangtsze for a hundred miles and then
turn into the entrance to the Tung-ting Lake at Yochow.
The real place of call is Chenglingchow, distant five miles
from Yochow. Here the Customs has its establishment,
and here the routes for Changsha and Changteh diverge,
that for the former proceeding almost due south, whilst
for the latter a rather more westerly course has to be
traversed. Either is across the lake, and is only available
in the high water summer season. The River Siang has a
channel through the lake, but its capacity in winter time
for steamer traffic is very limited. We came practically
right across the lake in July in 15ft. of water along a
course that is quite dry by, say, December. What would
seem to be serviceable craft would be light draught
launches that could be employed continuously through-
out the year. A system of junk passes giving steamer
privileges to junks running between Changsha and
Yochow, during low water season, seems to have
answered very well.
At Changsha it was a relief to see the blue clear water of
the Siang River after the yellow, pea-soupy, waters of the
168 SHANGHAI AND THE YANGTSZE
Yangtsze. Hunan was a sealed province a few years since.
Changsha, its capital, was opened (under the Japanese
Treaty) in 1904. On arrival you see a considerable city,
having good walls. No sooner are you alongside the hulk
(there are three, belonging respectively to Jardine, Matheson
& Co., Butterfield & Swire, and the Japanese Company)
than you are handed the card of a Chinese official of
sub-taotai rank. All foreigners coming to Changsha are
registered. The Chinese like to know who arrives. It
is partly curiosity, but it is also done with the good
motive of providing protection during your stay. The
officials are not too much pleased with the advent of
foreigners to the city the hitherto sealed city. Nor
are the gentry, of whom many live here, as being a sort
of model Chinese city, or the retired officials who make
Changsha their home, eager to have the foreigner amongst
them. But they particularly desire to keep free of
any questions affecting foreigners, or any embroilments
with them. They therefore take extra precautions
to see that as far as possible no trouble is caused or harm
come to the stranger in the land. I could not help
observing that wherever I went about the city a Chinese
police officer seemed to be not far behind my chair.
These police seem to be fairly efficient and neatly
uniformed. What their value might be to a foreigner
if a really serious disturbance took place, and life was in
danger, I am unable to say. Probably it would vary in
degree according to the capacity of the officer in charge.
The common people of Changsha seem to have no
animus against the foreigner. They are generally respect-
ful in their attitude, and do not indulge in objectionable
curiosity, notwithstanding that the number of resident
foreigners is limited to practically the British Consul,
the Customs staff, the missionary body, and a few edu-
cationalists. Though respectful, the Hunanese populace
is independent in general carriage, and it is fairly enter-
prising. It prides itself on its independent views, and
that it leads China in many ways. We may remember
EDUCATION AT CHANGSHA 169
that the great Taiping Rebellion in its ravaging passage
through Central China left Hunan untouched. Hunan
turned it on one side, and refused either to be embroiled
or to let the rebellion run in its province. Viewing the
present quietude of the city towards the foreigner, one
could not but reflect that it was the home of the infamous
Chou Han, whose writings were so largely responsible for
the anti-foreign troubles and risings in the Yangtsze
valley in 1891. Like many, indeed most, of the cities and
towns of China at the present time, Changsha is smitten
with the desire for the new, Western, knowledge. Schools
have sprung up everywhere, which it is to be hoped will
continue to receive the necessary financial support to insure
their continuance. Two years ago a Harvard graduate was
engaged to work in three of the leading schools, and a
voluntary educational institution has been provided in
the Yale Mission. This is more educational than
missionary in its constitution. It is supported by Yale
University, and such fees as attending pupils pay.
The missionary societies also do a good deal of primary
school work, whilst some fifteen Japanese professors are
engaged in Government schools teaching scientific sub-
jects, and four Japanese ladies conduct a kindergarten.
Changsha is apparently not dragging astern in the race
for the " new learning."
There is no foreign settlement at Changsha. The
British Consul lives at a big rambling Yamen in the city,
and is by no means as well off as the Commissioner and
assistants in the Customs, who are quartered in fine houses
on the island of Shui Lu Chiao. This island is opposite
the spot where the steamer hulks are moored, outside
the West Gate suburb. It is a pity the British Govern-
ment does not build a Consulate on this island. It would
be of convenience to the shipping. The Japanese have,
I believe, already taken up ground on the island for the
erection of their Consulate thereon. The island is of
moderate extent only, and it is as well not to leave the
matter till too late. The streets of Changsha are broader
170 SHANGHAI AND THE YANGTSZE
than those of most Chinese cities. They are well paved
with granite, and admit of ricksha traffic being carried
on, though the vehicles themselves are the poorest, most
shandrydan collection I have seen in China and they
are pretty bad in some other spots. Goods, cargo, bricks,
building materials, even logs of timber and poles are
transported by the wheelbarrow, so dearly beloved of the
Chinese. But the instrument here differs in pattern to
the ordinary variety in that, instead of the big wooden
wheel, they have quite a small one probably not more
than some 15 inches in diameter. But that small wheel
can creak and squeak and groan in a way that easily
gives points to its larger brother. The shops are fine,
and the wares often expensive, and of the best native
materials and makes. Changsha has a more wealthy
population than probably any other Chinese city of its
numbers. One, therefore, is not astonished at the
appearance of the shops and their contents, whilst their
signboards are magnificent and would easily vie with
those of Canton or Peking.
As regard foreign trade, the only question seems to be
the eternal one that recurs each time a port is opened,
viz., whether the city or town, or only the settlement, or
in this case the immediate vicinity of the steamer landing-
place, is the lekin free area. At present cigarettes, of
which there is a fair quantity imported, are the only
things that have managed to get into the city. The rest
is blocked outside. The British contention, ever since
lekin was first started, has always been that it is the city
or town itself that is opened to trade, and not merely
the settlement, or foreign quarter, that is lekin free.
The Changsha steamers usually proceed on to Siangtan
under Inland Waters Regulations. It is a considerable
mart, about 30 miles farther up the Siang River to the
south. It seems to be losing some of its importance.
It formerly had a good deal of Canton trade passing
through on its way to the Yangtsze. The development
of steamer communications round the coast and up the
BACKWARDNESS OF HUNAN 171
Yangtsze has stopped a good part of this land traffic.
The town is an ordinary Chinese one of no special charac-
teristics, except the long line of junks that is moored to
the bank. Changteh, another considerable Hunanese
city, is also open under Inland Waters Navigation rules.
It is reached across the lake from Yochow. The first
foreign vessel to proceed there was Messrs. Butterfield
& Swire's Siangtan, in August of 1906. She was greeted
by thousands on her arrival, and was an object of con-
siderable good-humoured curiosity. The route is now
served by the same company's Shashi, and by a vessel
of the Japanese line.
The future of Changsha may depend a good deal on
the railway, which is now far away from being brought
into the province. The Canton-Hankow line would go
through the province, and might conceivably modify the
general conditions to a considerable extent. At present
the Hunanese show their sturdy independence by ref using
to put up a single cash for the projected line, though they
have been invited more than once to do so. They will
not trust the officials with their money, though the pro-
vince is wealthy and awaiting a development that the
railway would in part bring to it. Hunan is, of course,
a very old part of China, and it seems strange to use the
word development in a country that has been peopled
for thousands of years by inhabitants who have for so
long been living in circumstances of comparative comfort.
The only industry that has been fully developed is agri-
culture, and here, as in other parts of China, it is of the
market garden and not agricultural order, so highly is
the land made to bear. But the word is true nevertheless,
for Western appliances can extract much in the shape of
mineral wealth that is untouched, whilst communications
can render markets more accessible, besides providing
facilities for personal intercourse with other provinces
and districts that are now practically cut off from each
other. There are hundreds of coal mines in the Changsha
district, but with only native methods and appliances
172 SHANGHAI AND THE YANGTSZE
their production is limited. Other mineral wealth is
believed to exist, but coal alone would occupy a great
many energies. It is slowly being borne into the minds
of a few of the thinking Chinese that with cheap fuel
the denudation of China of almost every twig that grows
could be arrested, and the rainfall better regulated and
distributed by reafforestation. It should prove an un-
speakable boon in domestic ways, whilst it leads also to
the creation of industries that are retarded, or prevented,
at present by the want of abundant and cheap fuel.
Time did not unfortunately permit of my visiting
the important coal-mining enterprise that has been
brought to a successful issue at Pinghsiang. The actual
mine is situated five kilometres west of Pinghsiang,
just on the eastern border of Hunan. The mine belongs
to She'ng Kung-pao, and proceedings were commenced
on it by a party of German engineers in 1898, with the
intention of providing coal and coke for the ironworks
at Hanyang. By 1904 it was able to overtake the demand
for those works, though with their enlargement they will
again tax the whole output of the mine. At present
both the surface and the underground plants are com-
pleted to a standard of 1,500 tons of coal a day.
Development will have to proceed apace to keep up with
the contemplated daily demand of 3,000 tons for the
ironworks. Present output for the major portion is made
into coke in modern stoves. The coal itself has 20 to
30 per cent, of gas. It has been used by the China Mer-
chants' Company, and occasionally by British and German
gunboats, and is said to be a fairly good steam coal.
The produced coal and coke was at first taken from
Pinghsiang by small boats a short distance, and then by
a railway, completed in 1905, 90 kilometres long to Chii-
chow, which is on the Siang River, about 50 miles below
Changsha. The line, which is standard gauge, and well
laid and ballasted, has since been completed to the mine,
and one extra handling is thus avoided. The rails are
76 Ibs. to the yard, and were rolled at the Hanyang
AN OBJECT LESSON TO THE HUNANESE 173
Ironworks. Chuchow is not, however, a very favourable
spot for shipping the coal. For three months of the year
it has practically no water at all, and for other three
months only one-third of a full cargo can be taken by the
lighters which transport it to its destination. The rail-
way is therefore to be extended to a point 20 miles above
Changsha, instead of the present rail terminus 50 miles
below that city. A bad bend in the river, possessing
many shallows, will thus be avoided, whilst there will be
much better water available during the low water season.
The coal and coke is now transported from railhead by
36 lighters and 40 smaller craft. The total lighterage
capacity now available in a year is reckoned at 420,000
tons.
Certainly every credit attaches to the little band of
foreigners for the work they have done in this isolated
province of China. It should be an object-lesson to the
Chinese, and above all to the Hunanese. The difficulties
of opening out a mine on the distant borders of Hunan,
the transport thither of machinery, and all the necessaries
required, must indeed have been great.
CHAPTER IX.
TSINGTATT TIENTSIN.
Liberality of the Reichstag The Customs Arrangement Growth of
Tsingtau Harbour and Dock Government and Governed Summer
Resort Tsinanfu Governor Yang Foreign Settlement Baptist
Mission The Taihu Prospects of Chefoo Railway Wanted Growth
of Tientsin Settlements and Concessions The Ex-Viceroy, Yuan Shih-
kai River Conservancy Hindrances to Trade Chinese Attempted
Regulations Transit Pass Difficulties.
FEW Colonial ventures have been blessed with such a
Fairy Godmother as the Reichstag has been to Tsingtau.
A vote of seldom less than half a million sterling per
annum, and sometimes rising to 600,000, or 12,000,000
marks, has been showered on to its devoted head, until
a sum of over 6,500,000, or 130,000,000 marks, has been
lavished upon the protege of the Fatherland. With the
money frankly donated, and not advanced by way of
loan, on which interest has to be paid, it has been possible
to construct Tsingtau, and endow it with many things
that less favoured spots attain only when fully grown.
The change since I saw the young and budding colony in
1900 is a kind of transformation. The Germans have
not spared, and are not sparing, either money or trouble
in the endeavour to make of Tsingtau a serious trade
rival to Chefoo. Tsingtau has a great asset in
its fine harbour, and the Customs conditions under
which it has been working have proved exceptionally
favourable. What has been achieved in this way will
best be told in the words of the man who has done so
CUSTOMS CONTROL 175
much to bring the new scheme into bearing. Mr. Ohlmer,
for long the Commissioner of Customs, thus writes :
" The year 1906 marks the beginning of a new epoch
in the interesting history of this young port. During the
first epoch, 1899-1905, instead of the usual frontier
Custom House, with all its irksomeness and unavoidable
delays for goods and travellers, the German Government
invited the Chinese Customs to function at Tsingtau,
the capital of the Pachtgebiet, under much the same
rights and privileges as a German Custom House. The
principal object of the arrangement was the creation
and promotion of trade and commerce between the
Pachtgebiet and the Chinese hinterland. The results
of the first epoch have conclusively proved the wisdom
of this novel arrangement. Under it, trade developed
beyond expectation, and Tsingtau, the former dilapidated
fishing village, grew into a handsome city with a flourishing
mercantile community, and a considerable number of
manufacturing establishments. Its success emboldened
the Government to agree to going a step further and
arrange for the limitation of the free area, which formerly
comprised the whole Pachtgebiet, to the harbour on much
the same lines as at the German free ports, Hamburg
and Bremen. The chief advantage of this step lies in the
removal of Customs control from the railway stations to
the free area, and the consequent freedom of goods and
passengers to pass in and out, from and to the hinterland,
without hindrance or control of any kind a traffic
simplification from which a considerable increase in trade
was expected. This expectation has already been
realised. The new arrangement has inspired confidence
in the stability and future of the port, and is attracting
artisans, traders, and wealthy Chinese firms, which last,
hitherto dealing with Chefoo, have until now kept aloof
from this place."
The arrangement has been the means of furnishing a
substantial contribution annually to the funds of the
176 TSINGTAU TIENTSIN
colony. At the inception of the first agreement there
were a good many complaints uttered because permission
had been accorded the Chinese Government to have a
pied a terre on what, for the time being at all events,
is practically German soil. It was thought to militate
against the free port status. The official classes and
many of the merchants were, however, upholders of the
arrangement. The objections have proved to be senti-
mental, and there are few, or none, who would now raise
a voice against the agreement.
A visit to Tsingtau in 1900 showed little more than the
site of a town that was to be. Now it is practically
built, though naturally it is hoped that it will go on ex-
tending. Within Kiaochow Bay, where the town abuts,
is the principal harbour for loading and discharging cargo.
No one regretted leaving the outer bay for the quiet
quarters provided for shipping in the extensive harbour
that is now practically completed. The moles and piers
have the railway adjoining them, and cargo can be easily
and expeditiously handled. The line is also brought
into town along the backs of the establishments on the
sea front and past the doors of godowns to the Customs
premises, but it did not show many signs of extensive
usage. Within the harbour the immense floating dock
is moored, with a projecting mole to protect it on the end
facing the entrance of the harbour. Its lifting capacity
is for a vessel of 16,000 tons. It is entirely operated by
electricity. In the shops the machines have also electric
drive. The power is received over the cable at the high
rate of 7,000 volts, and reduced according to require-
ments. There are navy store yards of all descriptions
within the dockyard enclosure, which has been erected
entirely on made land as a part of the scheme of the
harbour construction. A staff of 40 Europeans is em-
ployed in the yard, and 1,200 Chinese workmen. Of these,
300 are Shantung students, who are going through an
educational course. They are taught to read and write,
and trained as mechanics. Hitherto the Shantung man
GOVERNMENT OFFICES AND SCHOOLS 177
has not shone greatly as a mechanic, and the experiment
is interesting. Apparently the inhabitants of this pro-
vince, who are generally dubbed stupid, have been
somewhat maligned, and are proving to be worth more
salt than they were previously reckoned at. On the dock-
yard quay stands a monster crane of the capacity of 150
tons. It has been tested to 200 tons, and it is claimed
for it that it is the largest in the world.
Amongst the new and important buildings one must
first note the fine block of Government offices. It is a
splendid pile. There is likewise a fine Naval Hospital,
beautifully situated, and of a capacity, it is hoped, that
will never be taxed. There is a good Government school,
in which 78 European pupils were receiving instruction.
Besides those resident locally, boys are sent here from
other ports in China, arrangements being made for them
to be boarded. The instruction includes the curriculum
of a home school for pupils of similar ages. German is
naturally the principal language, but instruction is also
given in English, and classes held in that language. There
is also a girls' school on somewhat similar lines, and a
Chinese girls' school, where Chinese, German, and English
are taught, besides special feminine employments. In
the way of private residences a new house of imposing
dimensions and appearance, with ample grounds, has
been erected for the Governor. Externally it resembles
a German schloss. In the so-called villa quarter a number
of ornate residences have been erected. Industrially
one may note that the Standard Oil Company and the
Asiatic Petroleum Company have both completed instal-
lations for oil storage not far away from the harbour.
The Shantung Silk Industrial Establishment at Tsangkow
is going on well. Its products find a ready sale in
Europe, where they are appreciated for their quality,
both in material and workmanship. The whole establish-
ment is a model one that will stand comparison with any
similar class of establishment elsewhere. The conditions
of work are such that any vacancies amongst the workers
178 TSINGTAU TIENTSIN
are eagerly competed for. Fruit culture has now
become a veritable industry that is expanding every year.
Excellent fruit of many kinds is produced, and the ex-
port to Shanghai and elsewhere has become an important
one. The Chinese have taken to it eagerly, and orchards
may be seen at many places along the route of the
railway to the interior.
Concerning the relations subsisting between the
Government and the governed, I found a considerable
change for the better. There was an absence of the
oppressive officialism that formerly pervaded the place.
A freer spirit now prevails, and there is a better community
of feeling between Government and the mercantile and
shipping representatives. A greater commingling may
also be observed at the club, where so many awkward
corners get rubbed off the man angularly inclined.
Taxation still remains moderate, thanks to the liberal
help afforded by the Home Government. It consists
only of a tax of 6 per cent, on the value of land. True,
that value is rather arbitrarily fixed by the Government.
Indirect taxation takes the form of licences for spirits,
opium, etc., which, like the tariff duty, is collected by
the Chinese Customs officials and handed over to the
Government, less an agreed percentage for the collection.
The land regulations remains as before, and are still a
source of considerable heart-burning. If you take up
land you pay a tax of 6 per cent, on its value. If not
built on in three years the taxation is raised to 9 per
cent., and so on until a maximum of 12 per cent. is reached.
The regulations have the effect of hampering and crippling
the development of the place. Such an individual as
a landlord is still an impossibility. The small man
possibly cannot afford to buy land and build on it. Yet
the landlord class, who would, is banned.
Tsingtau is rapidly coming into favour as a summer
resort, and its accommodation is severely taxed in July,
August, and September. It is already often referred to as
the Brighton of China. Certainly, if you come from
FORESTATION 179
sweltering Shanghai hi July and August, you will delight
in the purer and clearer air, as well as the reduction in
actual thermometer heat. On the east beach of the
outer bay, a mile and a half from Tsingtau, is a delightful
stretch of sand adjacent to which is the racecourse.
An attraction is also provided in a military band twice
a week. Close by inland you can get plenty of good
walks, including the roads and paths through the
afforestation preserves. Here you may see extensive
work being done. A vote of 5,000 a year is given to
aid it. There are nurseries of all sorts for firs,
acacias, and other trees that are planted out on the
adjoining hillsides and further afield in the leased
territory. Fruit trees, strawberries, and every class of
vegetable are also cultivated, and the produce thereof
sold first to the officials and military, and then to the
general public. Much educative work, in showing the
Chinese how to cultivate such produce, is being accom-
plished. Altogether Tsingtau has achieved a good
deal in its comparatively short life under new conditions.
Of the railway that runs to Tsinan-fu, the capital of
the province of Shantung, I shall write later. It is
rather a tedious journey there from Tsingtau by the
line, but a visit will certainly prove interesting.
The Chinese authorities there are moving along some-
what in the way of foreign progress. His Excellency
Yang Shih-hsiang, the Governor, is an interesting per-
sonage. He said that something was being done to move
forward in China, but that it was the face of the clock
that had received the greatest attention so far. What
was required was that the works inside should have real
attention bestowed on them. The interior, that was not
superficially observable to the eye, was the part where
China needed reform. He may generally be inscribed
as a progressive man, and as a man of ideas also. For
instance, he is much against the early marriages prevalent
in China. His Excellency contemplated, he told me,
sending in a memorial to the throne, praying that early
180 TSINGTAU TIENTSIN
marriages be prohibited unless the man was in receipt
of a certain income according to his station ! He would
begin with the lowest coolie, who, say, in Shantung,
and where prices of living were about the same, should
not marry unless earning 200 cash a day. The price would
rise with each class in the social scale. I will not venture
to speculate on so interesting a topic. Early and im-
provident marriages are doubtless bad in any country, the
cause of much misery to the individual, and may possibly
prove a burden on the community ; but making people
good by Act of Parliament has not yet been successful.
In this case one would strongly doubt that the memorial
would result in an Edict, which remains, pending the new
Constitution coming into force, China's equivalent for
the Act of Parliament. I fear the whim is somewhat
quixotic ; fortunately other of his Excellency's opinions
are of a more practical nature.
There is a certain space of ground set apart outside
the Western gate at Tsinan for a foreign settlement,
for which the Chinese have provided their own set of rules.
These differ from the lines on which foreign settlements
are usually held. The Chinese do all the road-making,
policing, lighting, and other measures, according to their
own rules. So far, the British Minister in Peking has
always refused to accept these terms at any port or place,
and the same has been the case at Tsinan. Some lots
have, however, been taken up. The Deutsch-Asiatische
Bank, the German Consulate, and a house for the Consul,
are on Settlement ground. The British Consul, the
branches of Arnhold, Karberg & Co., and Carlowitz & Co.,
and the missionary body are located in the city. The
Japanese, whether merchants or professors at the Uni-
versity, and the three European professors at the same
institution, are also quartered in the city. I may say
that the relations between the officials and the missionary
body seem to be very cordial. The people generally are
courteous to a foreigner, and there is not only no anti-
foreign feeling apparent, but there is on the other side
ON THE TAI-HU (LAKE), TSINAN.
[181J
AN EDUCATIONAL MUSEUM 181
a keen desire to learn English, and, in a less intense form,
German. The number of teachers is, however, quite
inadequate. In the streets one saw a good many soldiers
about, dressed in a summer uniform of khaki. The
uniforms were comparatively new, but they were generally
worn in a very slouchy manner. The men were physically
a fine set, and a few smart drill sergeants would doubtless
have turned the men out with a more trim appearance.
I have just noted the generally good relations that
prevail between the officials and the missionary body.
Certainly some share, and perhaps not exactly a small
share, is due to the work of the English Baptist Mission.
One of its members, Mr. Whitewright, is imbued with a
good deal of practical sympathy with those amongst
whom he is working. He has established a museum that
is having a considerable educational effect on the general
Chinese public of Tsinan, and many others who visit
the city. Blessed with a fertile imagination, which
exhibits itself along diagrammatic lines, he seeks by such
means to demonstrate many things to the natives,
That a considerable number of Chinese are thus reached
is evident from the fact that close on a quarter of a million
of people visited the museum in 1906, and that this figure
was exceeded in 1907. Every visitor is certain to lead
to others coming, whilst if he arrives from outside Tsinan-fu
he will be able to spread marvellous tales of what he has
seen when he returns to his town or village. The Chinese
are like many other children of larger growth ; they
dearly love to " see wheels go wound." If any are dis-
posed to help Mr. Whitewright no better way could
probably be found than the presentation of a few models,
on the plan of those at South Kensington, where on
pressing a button the figure is made to work. It would
afford keen delight to a Chinaman, and at the same time
have a certain, and considerable, educative effect.
Mechanical appliances in action appeal to him.
Before leaving Tsinan-fu no visitor will omit to visit
the Tai-hu, the lake that lies close up to the north wall
182 TSINGTAU TIENTSIN
of the city. It is the great place of recreation for the
wealthy. It was, at the season we visited it, covered with
reeds interspersed with patches of lotus. The boats
on which one makes the excursion along its canal channels
are reminiscent of the flower boats of other Chinese cities.
Here and there are islands with restaurants, whilst the
Peking Temple, resting under the north wall, and the
memorial temple to Li Hung-chang, afford excellent
views, the one across the city and away to the southern
hills, and the other of a near and charming aspect. It is
a classic Chinese garden, with its rocks, water, bridge,
trees, and other traditional surroundings. Attached
to the memorial is a banqueting hall, where it is usual to
hold big official entertainments. The lake constitutes a
charming spot and a veritable rus in urbe. You turn
straight out of a crowded Chinese street and find yourself
face to face with rural surroundings.
Passing on to Chefoo one was impressed with the
necessity of certain works being taken in hand, if the port
was not to be much handicapped by its younger rival at
Tsingtau. The railway has already had the effect of
cutting largely into one of the staples of Chefoo trade.
It is, of course, no very great business even if Tsingtau
acquires the whole of the straw braid trade, but other
lines may develop, and trade always attracts trade.
Chefoo still has a very respectable amount of shipping
passing through the port, and a considerable movement
goes on under Inland Waters Regulations. The Pongee
silk trade also continues to develop, and the demand bids
fair to exceed the supply. If, however, Chefoo is to hold its
own it will have to do something to set its house in order.
What is first wanted is a railway that will run to Weihsien,
and either connect there with the existing Shantung
Railway Company or be continued as a competing line
on to the capital, Tsinan-fu. His Excellency Yang, the
Governor of the province, told me that the merchants
were fully convinced of the necessity of such a line, and
that he anticipated it would be taken in hand. The
CHEFOO RAILWAY AND HARBOUR 183
Governor was, I think, a little optimistic as to this. The
difficulty here, as in so many like cases, is mistrust between
the officials and the merchants, and the difficulty one so
constantly tumbles up against in China, viz., the want of
capacity to run joint stock enterprises. Eminently
successful merchants run large concerns of their own,
because they are their own. When they come to joint
stock enterprise the game is the same, and instead of
playing in association it is for a lone hand. The result
is a want of success, which you may observe almost any-
where in China from the number of wrecked enterprises.
Though general opinion favoured the railway, there
seemed no one or two to take the lead. Of course, with
present views prevailing, even where no special anti-
foreign bias may be shown, foreigners would not be
welcomed.
The other great want which would be a corollary to the
railway, and that its rival has likewise created, is proper
harbour facilities. The need is frequently apparent when
a blow is on, and the landing and shipping of cargo is
interfered with or entirely arrested. As new means of
communication are constructed trade must increase
and leave room for both Chefoo and Tsingtau in the race.
Shantung may not be a rich province, but it is not so poor
as was generally believed up to only a few years ago.
There are plenty of possibilities attaching to it that better
means of transport should develop.
Of its near neighbour, Weihaiwei, little need be said.
The uncertainty of the tenure and the absence of any
definite pronouncement by the British Government
respecting its future, prevent any display of enterprise
when so much is left in the dark. Even if we have tied
our hands in the matter of a railway to the hinterland
by the declaration of our intention to refrain from the
construction of such a line, there are some possibilities
in the port itself, but they cannot be availed of under
existing circumstances.
Eighteen hours' steam across the Gulf of Pechili brings
184 TSINGTAU TIENTSIN
you from Chefoo to the mouth of the Peiho, or Haiho,
40 miles up which muddy stream takes you to the great
port of Tientsin. Owing to river improvements, carried
out by the Haiho Conservancy, you have again the
option of getting from the Taku bar by one of two routes.
If your steamer is too deep to cross the bar, and you are
indisposed to await the lightering process, you can land
in a tug at Tongku, and by means of the railway be at
Tientsin hi a little over an hour. Or, it is now again
possible for a steamer to reach the Bund by reason of
the work performed by the Haiho Conservancy. On
arrival at Tientsin, by train, you are conscious of the growth
of houses on that side, and of the fact that two steel
bridges now connect the banks of the river in lieu of
the time-honoured bridge of boats. The railway does
not cross the stream, though the remains of the abutments
for the bridge, that was removed by Chinese intrigue
years ago, may yet be seen. Crossing the International
Bridge opposite the railway station, you are immediately
introduced to the marvellous development in house-
building that has taken place within the last few years,
whilst scaffolding and builders' materials are still about.
On all sides an epidemic of red brick sometimes a com-
bination of the red and grey seems to have broken out.
The general growth has also led to an increase in professions
and trades that is likewise remarkable. A drive around
the German, the Japanese, the extra British and extra
French concessions shows you miles of new roads, whilst
hundreds of thousands of cubic yards of earth have gone
to fill in ground to the necessary level of the older
settlements. You note also the Racecourse Road is to be
a favourite residential quarter in the future. The German
settlement is given up almost entirely to private residences,
forming a species of model garden suburb, with attractive
villas of picturesque architecture. There is a fine
monument to the men who lost their lives in 1900, set in
a circus of ground that is only built on at present as
regards one quadrant. The additions to both the British
CONCESSIONS AT TIENTSIN 185
and French concessions have likewise added to their rate
roll, whilst more material development is provided in
the shape of new godowns and pressing, packing, and
other plant for dealing with the increased exports of the
port. The fine road made by the Tientsin Provisional
Government which ruled Tientsin for a period after the
Boxer outbreak on the site of the demolished wall of
the native city of Tientsin, now carries an electric tram-
way operated by a Belgian company. The other new
iron bridge thrown across the river is near the Austrian
Consulate, and across this bridge has been laid the lines
for the tramway, which runs through the Austrian,
Italian, and Russian concessions on the left bank of the
river, to the Settlement Railway Station. The Japanese
refused permission for the line to traverse their conces-
sion, but it is arranged that an electric line will also be
laid down there. Some fine buildings and godowns are
already erected on this concession, and considerable
activity in the way of development may be witnessed.
Its situation nearest to the Chinese city is a factor
likely to be of assistance in fostering trade, and increas-
ing the foothold that the smaller class of Japanese
merchant is acquiring. Certainly the development to
be seen is evidence of the expansive commercial spirit
of Japan in China. The numbers of Japanese have
greatly increased of late years. The Settlement itself
is of considerable extent, and funds are being gradually
provided by the Imperial Government to render the
ground fit to be built on by being filled in, by making
roads, and hi other ways. The number of nationals
who reside there is comparatively small in relation
to the total numbers. The residue is largely in the
other settlements, whilst many are located in the Chinese
city. They have their own club, where ladies are
admitted once a week. Other clubs and institutions
testify to a fairly healthy condition of life in the Settlement.
A primary school was projected, and in many ways Japan
seems to be making a kind of model Settlement.
1 86 TSINGTAU TIENTSIN
The Chinese have also not been behind in developments.
The ball was set rolling for them in a very efficient way
by the Tientsin Provisional Government. The roads are
now a great improvement on the Tientsin of old, and the
fine boulevard past the Viceroy's Yamen, leading out to
the Native City Station on the railway, is a good piece
of work. Tientsin in years gone by has been the point
whence many of the changes that have been slowly
wrought in China have had their radiating point. During
the long Viceroyalty of Li Hung-chang, Tientsin shared
with Shanghai the distinction of being a spot where the
thin end of the wedge of change was driven into the
ancient conservatism of China. The changes were not
generally welcomed ; the old type of Chinese looking
on the innovations, and the introduction of things
European, as being the imposition on the country of
pushing and energetic races, whose methods of thought
and style of living, whose ideas and habits, mental and
physical, were entirely subversive of everything Chinese.
This phase has passed for many places in China. Now
Tientsin has increased its schools, and its desire for foreign
knowledge and ways is only checked by occasional
Chauvinism.
Though Tientsin is not the provincial capital, it is the
home of the Viceroy for the greater part of the year.
Paotingfu, the capital, is only for a limited time his
residence. His Excellency, Yuan Shih-kai, who stands
out as the one strong man in China, was the occupant of
the Viceregal Yamen at the time of my visit. Those
who have followed his career from the time when he was
prominent in Soul at the outbreak of the war with Japan
in 1894, have noted his rise with somewhat mixed feelings.
On the whole foreigners have been impressed with him.
He is a man of character, and often decisive in his actions,
though with the system that prevails in Chinese official-
dom he has naturally at times to sit on the fence. He
had notably to do this in 1900 when Governor of Shantung.
He decisively expelled Boxerism from that province.
A PROGRESSIVE GRAND COUNCILLOR 187
where it originally started. Had Li Hung-chang been in
Chili it might have had the same fate there, and history
been written in a very different way. Having done this,
Yuan Shih-kai sat on the fence hi Tsinan ; always about
to march to Peking, to help against the Lgations and the
foreign troops, his Excellency never went or sent his
troops. For some few years he has come on fairly rapidly,
and is now one of the strongest of the Grand Councillors
at Peking, but his enemies have scored against him at
times. Of the six divisions of foreign-drilled troops
he created, four were removed from his jurisdiction,
whilst impeachments against his 'proteges were nume-
rous. His present position at Peking shows he has not
lost much of his influence. He is a very busy man, a hard
and conscientious worker, and also a successful worker.
He is surrounded also by men who are used to work.
His power will remain apparently, at least, as long as the
Empress-Dowager survives. He is a comparatively
young man (50), and though grown somewhat stout, it is
to be hoped he has many energetic years yet before him.
He ruled Tientsin effectively, if some of his methods
are drastic from a Western point of view. Capital
punishment for a comparatively insignificant theft seems
a heavy penalty to pay. Yet robbery and theft were
almost unknown in the native city. One of his entourage
mentioned to me that if every house in Tientsin left its
doors and windows open for three consecutive nights
probably no more than three robberies would result.
Decapitation was the lot of anyone caught, and the
penalty was so heavy that few attempted it. His
Excellency had withal got an effective police force. His
police school is taken as a model for the Empire, and
instructors are sent out from this establishment to all
parts of the country. It would be too long to note what
His Excellency attempted in many directions, but it may
be mentioned that he recognised the value of education and
the difficulties of disseminating it more widely amongst
the people, whilst the labours of a scholar remain so
1 88 TSINGTAU TIENTSIN
onerous. His Excellency hoped to devise an easy system
of writing Chinese, so that common people might readily
learn to read and write without the task that is now
involved. It is suggested that by a species of Chinese
Volapuk a knowledge of reading and writing may be
brought within the possibilities of the lowest classes in
the country. Such a work would indeed be of lasting
benefit to China. In another way a decidedly forward
move has been attempted in Tientsin ; no less a scheme
than a movement towards the constitution and repre-
sentation of which all have heard. The attempt was
hi the way of municipal self-government, and the ex-
periment is watched by foreigners with a good deal of
interest, and certainly with sympathy.
With the improved condition of navigation in the
river, the British Bund at Tientsin has regained its wonted
appearance with the steamers again warped alongside.
The cargo, of course, remains all along it and up the streets
as before. It is indeed a familiar feature of Tientsin
commercial life, whilst it brings good revenue to the
Municipal treasury. The bar below at Taku still remains
an obstacle, and presents a busy scene of tow-boats and
lighters. Certainly a feature of the shipping life of
Tientsin is the number of large ocean liners that one may
see lying outside the bar. They do the trade now direct
from European ports without transhipment at Shanghai.
Not long ago it was probably only a large consignment
of railway material, or some special goods that caused
a main line steamer to go to Taku. Now Blue Funnel,
China Mutual, P. and O., Glen, H.A.L., and German,
French and American big liners may be seen. It is one
of the indications that Tientsin now conducts its trade
direct, and that it has divorced itself from Shanghai,
which has hitherto acted as commercial god-parent to
the northern port.
Tientsin must inevitably go ahead ; its geographical
position and the fact that it is almost the only outlet
for so great an extent of country necessarily constitutes
PROSPECTS OF TIENTSIN 189
its future a bright one. It received a great impetus
from the events of 1900, and the stress of shot
and shell that it was placed under in that year has
reacted greatly to its material welfare. If the sowing
then was under strenuous circumstances, the reaping
has indeed been abundant. The previous pace and the
political situation have for the moment necessitated a
slackening. Exports which have come on so much now
await certain developments in the ulterior, the expansion
of communications, and the collection of greater quantities
of produce by the people. In the matter of exports
what can be seen in many of the larger godowns in the
concessions is really remarkable. The trade in skins,
wool, bristles, horsehair, and furs, besides some minor
articles, is enormous. The capital outlaid in presses and
other machinery is very considerable, and many of the
articles are now prepared for the European and American
markets in a way that was not dreamed of before. They
have become industries which employ a considerable force
of native labour. Tientsin, in common with the rest of
China, is still looking for products that will swell the ex-
port list. It sends its commodities as far away as the
plains of Mongolia and the North- Western Provinces of
China. With big indemnities to pay, and the charges
on other loans for various purposes, China should foster
her exports to the greatest degree. It was pointed out
to me that one neglected source is the production of
beetroot for sugar purposes. The plains of North China
around Tientsin are believed to be peculiarly adapted for
such a growth. The ground contains a good deal of
alkali, which is suitable to such production. If this
proves feasible it would naturally be of great assistance
to China, whilst it would furnish Tientsin with another
industry in the refinement of the product.
Whilst dealing with commerce, I may note that the
Chinese are again attempting further regulations and
exactions that hamper trade. This is practically true of
all parts of the Empire. As soon, indeed, as one effort
190 TSINGTAU TIENTSIN
is frustrated, and you press the attempted exaction back
into its place, it is sure to crop up in another way. It
is encouragement from the Chinese point of view that
should be extended to exports and not hindrances. To
give one instance : much of the foreign trade of China
is conducted by means of transit passes. A new regulation
was sought to be enforced to have the name of the place
where a transit pass, covering export cargo, is to be used,
endorsed on the document. Hitherto only the Fu, or
district, has sufficed to cover goods purchased within that
area. Subsidiary collecting centres exist within, say,
any one Fu, but it cannot be stated that produce can be
obtained at any certain place within it in any particular
year. One centre may have more goods in one season
and less in another. The attempt does not seem to be
within the treaties. Similarly, the quantity to be pur-
chased at a particular place cannot be stated beforehand.
There may be, owing to matters of season, much wool
and hides in some parts of North- West China and very
little at others. It would be merely a toss-up whether
you had taken out the pass for the proper quantity
for a particular locality in a certain season. Another
difficult matter of fulfilment would be the specification
of the exact nature of the goods on the pass. Some goods
alter their nature en route. For instance, skins are often
tanned between the original place of purchase and their
arrival in Tientsin. It is known, for instance, that owing
to certain properties in the water it is more favourable
to tan goat skins at Kalgan, whilst lamb skins are
similarly treated in passing through Shansi. It is not
that any revenue is lost, for the dues on tanned skins
on export are higher than on untanned, whilst the process
cannot be carried out at Tientsin owing to impurities
in the water. The tanning tends to preserve the skins
during transit by steamer, and it can withal be performed
more cheaply in China than at the foreign port of
destination. A still greater hardship is attempted by
seeking to impose a penalty for loss of quantity during
TRANSIT PASS EXACTIONS 191
transit. Such losses occur in several ways. The Yellow
River has many dangers, there is loss in handling and
drying, and there are such dangers as robbery and theft.
In a journey extending over several months discrepancies
may easily occur in quantity. Confiscation of property,
which was the threatened penalty, seems far too drastic
under the circumstances.
Another provision that seems impossible of fulfilment
is that goods under pass must reach the last barrier and
pay the duty within six months of the issue of the pass.
A pass issued in Tientsin may easily take by the most
speedy route two months to reach the spot in the west
or north-west of China, where it is to be operative. The
camel train with the goods may easily take four to five
months coming down. Indeed, the period that camel
transport is feasible only extends for something over
half the year, and it is nothing unusual for goods to get
a certain distance one season and complete the journey
during the next travelling season. Those who have
experience of China in almost any capacity are aware
that they are unaccustomed to any hustling methods.
They are leisurely, and such a case as goods only getting
half their journey done during one travelling season, and
completing it the next, is of the most usual nature.
Succeeding the proposed limit of six months for transit
comes another that the produce shall be exported within
twelve months of the time it paid the transit duty at the
last barrier. How the various purchases that reach a
merchant's godown are to be earmarked so as to be traced
I cannot say. Let me take wool. It is coUected in
separate lots, each parcel containing, say, at least two
qualities of wool. These have to be sorted, cleaned and
packed. Besides, in the willowing process alone a con-
siderable loss sometimes from 25 per cent, up to 40 per
cent. in weight occurs. A good deal of Chinese " real
estate " comes down with the wool, and the buyer in a
foreign market has no desire either to pay for it or the
freight occasioned by its shipment. The wool itself is
192 TSINGTAU TIENTSIN
a very different commodity when it leaves the godown
to its condition on entry. The two things are not recog-
nisable for the same article, and quite impossible to be
identified with the original pass. Besides, the condition
of home markets has to be taken into account. If they
are not favourable the produce is held in Tientsin, and
may not be exported within the year.
Another flagrant attempt was to impose a tax on the
issue of transit passes. This has been attempted several
times. Recently it was sought to get the tax imposed
in a rather worse form than before, inasmuch as it was
attempted not only to tax the passes, but at the same time,
by other regulations, to multiply the number of passes
it was necessary to take out. It may be that the Chinese
are not seeking to impose any regulations except for the
purpose of preventing the sale of produce in transit, and,
secondly, by ascertaining the locality to correctly apportion
the tax due to the provincial officials. It should be pointed
out that in most instances there is no demand except for
the foreign market, and no inducement for sale ; to make
it merchantable it has to reach a Treaty port. The
proposed regulations would certainly hamper foreign
trade, and be a loss to both foreigner and Chinese alike
[193]
CHAPTER X.
PEKING AND ITS POLITICS.
Position that Nobody Knows Empress Dowager Health of Emperor
Possible Political Dangers China always in Trouble Need of
Official Reform The Customs Edict Imperial Maritime Customs
Clean-handed Administration The Inspector-General Sir Robert
Hart's work The Service Generally Chinese desire to Capture it
The "Reform" Movement Currency International Aspect Rela-
tions of China and Japan Legation Quarter Material Progress in
Peking.
IT needs a hardiness, possessed by few persons, to hazard
a pronounced opinion on the present state of Peking
politics. Everything you can assert can be so readily
controverted ; then reasserted in a different way,
and quite as easily demolished by a different set of
arguments. If I might venture on one definite state-
ment it would be to adopt the words of the oldest and
most able of the foreign residents of Peking, and declare
boldly that " nobody knows." This, in truth, sums up
the position so far as the foreigner can penetrate it, and,
possibly, with all the upheavals that have transpired
during the last eighteen months at the capital, it also
represents the Chinese dictum. The strongest have
been impeached and moved on ; censors denounce,
and though told that they have been over-zealous (to
save the face of someone who was big enough not to have
it scratched), their zeal is applauded, and they are bidden
to go on and repeat the offence ; Chu Hung-chi, the old,
and until a year ago the most powerful, man in the Grand
Council, is retired to his own province ; Tsen Chun-
194 PEKING AND ITS POLITICS
hsuan, called to be President of the Board of Communi-
cations, takes up his post and begins by discharging the
Vice-President, and denouncing wholesale, fluttering the
dovecotes all round the place. By the way, many of
the men he upset were Hunanese, and they returned to
Changsha, there to be a thorn in the side of his (Tsen's)
own brother, who was Governor of the province. After
doing all this he is himself sent back to be Viceroy at
Canton, whether as the result of his enemies combining
and getting him out of the way, or because the Empress-
Dowager has faith in him, and wanted a strong man at
Canton to keep the turbulent Liang Kwang in order,
cannot be definitely asserted. Anyway, his Excellency
got to Shanghai, and then refused to go further south,
pleading sickness (the onlooker must take it to be of
the diplomatic order). So the whole matter proceeds,
and it may well bewilder the boldest in his effort to
forecast. One can therefore only state some facts, other
possibilities, with here and there an inference. One of
my English-speaking Chinese friends, when discussing
progress in China actual and possible always returned
to the perfectly true statement that the keynote of all
Chinese reform must be the reform of the Mandarinate.
The subject is so vast that the more one sees of it, and
the more one moves about the country, the more one is
impressed with the greatness of the project, and, alas, the
firm conviction comes that it is unattainable within one's
own lifetime. Nevertheless, it will have to be steadily
persevered with, and if its growth is slow it will, we may
hope, be the more sure. To make the great world of
bureaucracy surrender the privileges it has acquired and
held for centuries will be a Cyclopean task.
The present time is necessarily a very interesting
moment, inasmuch as there is any one of four great
events that may plunge the capital into considerable
uneasiness. These possible events are the demise of
the Empress-Dowager, who is now well over seventy
years ; a like occurrence to the Emperor, who is reported
POSSIBLE DANGERS AT THE CAPITAL 195
in only moderate health, though still comparatively a
young man ; then there is the contingency of the death
of either Prince Ching, whose exact power cannot very well
be gauged, and that of Grand Councillor Yuan Shih-kai,
the only strong man in the Government outside the
Empress, and a man who stands out prominently in the
world of Chinese bureaucracy. I might add the ever-
present dangers of famine, the rise of a possible leader
for the anti-Manchu party, and the dangers surrounding
the returned students, with their undigested and often
limited knowledge of affairs generally, and particularly
of what is best for the circumstances of China itself. It
does not necessarily follow that the train of events suc-
ceeding any of the possibilities I have mentioned would
betoken an anti-foreign attitude, though there is ever
present the chance that the foreigner would either by acci-
dent or design be swept into the possible vortex. A greater
possible element of danger seems to exist in the fact that
the Emperor having no children the appointment
of an heir-apparent seems always to be put off. The
inference seems to be that there is fear to appoint anyone
because of anticipated trouble amongst the Imperial
clan. The family whose scion may be selected is certainly
likely to have trouble, whilst there is the probability that
the Oriental methods of intrigue and murder would be
let loose. One does not like to be in the least degree
alarmist without due cause, but the position can at any
time be such as may again lead to foreign interference,
and, despite the terms of the Anglo-Japanese Alliance
anent the integrity of China (of which fact the latter
country takes so great advantage at the present time),
there may conceivably be a position arise that will again
lead to a recrudescence of such terms as leases, spheres
of influence and protectorates. We can only hope that
the common sense of the Chancellries of Europe will be
exercised and that the European Concert may play in
tune, for a common hand, and not each for itself.
Though recent actions have involved considerable
o 2
196 PEKING AND ITS POLITICS
changes, events are scarcely as reactionary as were those
which commenced in August, 1906. It is at least certain
that many of the Imperial Edicts of the last eighteen
months re, impeachments which brought down Prince
Tsai Chun, the son of Prince Ching, Chu Pao-fai and
Tuan, are weak in themselves and show considerable
vacillation. At the moment conservatism was on top.
If I may hazard an opinion, China, it seems very feasible,
will advance greatly by reaction to reaction. This may
come from below, and many competent observers look
for it there, and not from above, though the reaction
recently in force has been exhibited in high quarters. The
returning students are a constantly increasing power, and
it may be that the reaction from below may spring from
them. Many of the hundreds now studying in Europe
and America may become available for the increase
of the teaching staff of the Empire, that so badly needs
recruiting, and their influence be for the common good, but
one never knows exactly what is going to be the future
of the half -educated thousands who return from Japan.
The Empress-Dowager may admit that " as a result of
its antiquated system, China is always in trouble," but
the arrogance of the governing class does not lead towards
the heights attained by Japan. They admit those
heights, but they despise the necessary study to assimilate
the Western knowledge that Japan patiently acquired,
as much as they still despise Japan for having pursued
that course. " China for the Chinese " is a perfectly
justifiable cry, provided it is not used to upset treaties
and Imperial Edicts, or to be the watchword of any anti-
foreign movement. The saying should mean a China
prosperous and contented by means of a capable Govern-
ment, administering the country honestly and efficiently ;
it would mean also a China developed along scientific
lines, so that her present wealth should be greatly
increased. China, it has been truly asserted, needs the
bracing support and stimulus that the reform of the
official classes, the development of her resources, and the
THE CUSTOMS EDICT 197
extension of her railways would give her. There are,
alas, few signs of such a meaning attaching to the cry
I have quoted ; rather is it used hi the sense of curtail-
ment of privileges already granted to foreigners, and of
the refusal to add to them. We must trust this is only
a passing phase, but history and common observation
scarcely lead one to anticipate that this is so. There is no
doubt that the popularity of the foreigner does not increase.
The boldest attempt to grasp what China considers
her own, though she has exhibited none of the necessary
official clean-handedness to conduct such a service, was
that made respecting the Customs Administration in May,
1906. What was done in the diplomatic way, or not
done, as many would state it, is matter of the past. The
Imperial Edict stands, and the Chinese may find later
that in maintaining so strenuously the inviolability
of an edict, they have left behind a legacy that will not
be an unmixed blessing. If the Customs Edict has not,
however, been rendered nugatory, it has seemingly not
been the means of carrying out all the Chinese intended.
Interference in the actual working of the Customs Ad-
ministration may not be in force, but the new Board
has been constituted vice the supervision hitherto given
by the Foreign Office, and the Inspector-General has a
weekly interview with the Commissioners for the dis-
cussion of affairs relating to the Maritime Customs
Department and its many-sided works. And here one
may be permitted a slight digression to note again the
excellent work that has been, and is at present, performed
by the Administration. For decades, numbering nearly
half a century of years, it has been the one bright spot
in honest administration in China an object-lesson in
probity and efficiency. A Chinese exotic, in the person
of the Viceroy Chang Chih-tung, may be clean-handed
and poor to the day of his death, but beyond the kind of
platonic praise that comes to him for his own honesty
his influence achieves nothing. He may or may not
in all probability it is the latter be able to restrain his
198 PEKING AND ITS POLITICS
entourage ; on transfer his successor doubtless carries
on the custom that ages has sanctioned if not sanctified.
The Imperial Maritime Customs remains the one clean-
handed office of the Empire, and the funds it now collects
are so considerable as to have excited attention. Under
the Inspector-General it has maintained its purity amidst
the foulness of Chinese officialism. Sir Robert Hart
may be advancing in years and become more feeble-bodied,
but his mind remained as active as ever, up to the time
he left Peking on leave in the spring of this year, in the
direction of a service which has secured the admiration
of the whole world. He has himself been decorated
by probably every crowned head in the world, but his
own work will live long after the memory of the honours
that it has brought to him. The very fact of the excellent
work that has been performed has led to the adminis-
tration being made the object of attack.
The departure of Sir Robert Hart from Peking, even
though it prove only for a year's leave the usual leave
of two years granted to European officials of the Imperial
Maritime Customs staff having been refused by
Her Majesty the Empress-Dowager was an event
of great interest to all in Peking, or China, who have
any concerns with that vast Empire. Ha Kung-pao
has been a power in the land, whether his remarkable
career is looked at from the Chinese or the foreign point
of view. His position made him, as has been truly said,
" the permanent trustee of foreign interests in China " ;
but he was much more than that. He was not merely
the successor of Mr. Wade and Mr. Horatio Nelson Lay
in the successful experiment that was the outcome of the
Taiping Rebellion, an experiment commenced at Shanghai,
then extended to the other Treaty Ports. He became
the guide and mentor of the Chinese Government in their
dealings with foreigners. No other European in modern
times has had the same trust reposed in him.
For many years he was the acknowledged intermediary
between Western nations and the Chinese Government
THE " I.-G." AND THE EMPRESS DOWAGER 199
even to the making of treaties of peace, for it was his
negotiations in Peking, seconded by the able work of one
of his Commissioners in Paris the late Mr. J. D.
Campbell, C.M.G. that terminated the " reprisals "
with France in 1885. Earlier in 1876 at the signature
of the Chefoo Convention, and in many a later document,
his hand could be traced. It was he, again, who came
to the rescue, arranged the matter with the allied generals
in 1900, and saved the situation. " As a very clever
Chinese gentleman once remarked to me," records his
niece, Miss Juliet Bredon, " ' All great men are optimists,
and hi the black days after 1900 Sir Robert Hart was the
greatest optimist we had.' ' His counsel has saved them
from many a blunder, or partially retrieved them from
a false step. By a delicate and judicious manipulation
of the questions before him Sir Robert was able, by native
suavity and adaptability, to overcome nearly all
obstacles, and to make himself as trusted by Chinese
as by foreigners.
It may be noted that Sir Robert's long service has been
contemporaneous with the regime of the Empress-
Dowager. We have also had reports of her resignation
of active work, but with the succession still unsettled
her Majesty did not carry out what was announced as
her intention to resign at last New Year. That the
Chinese have appreciated the "I.-G.'s" services has
been amply shown by the honours and distinctions
they have bestowed on him ; by his appointment as a
guardian to the Heir Apparent ; and by ennobling his
ancestors for three generations a singularly distinguished
conferment.
What the Chinese have ever had before their eyes
has been the possible constitution of an imperium in
imperio, yet never a breath of suspicion has ever been
thrown on the' ' I.-G.'s " entire loyalty to those whose
salt he ate. It was this fear, it may be recalled, that
caused the dismissal of Lay and Sherard Osborn.
In noting the conduct of the magnificent service he
200 PEKING AND ITS POLITICS
built up, we may adopt a line from the pen of Mr. H. B.
Morse, the recent Statistical Secretary of the Chinese
Customs, who correctly asserts that Sir Robert's " rule
has been a benevolent despotism, tempered at times by
Legation representations." He brought wonderful
qualities to his task, and he stuck to that task in a most
indomitable way. He was practically always at his
post at Peking. Amidst an atmosphere of stagnation
and corruption, the Imperial Maritime Customs grew
to be a shining example of official honesty, promptitude,
and just treatment ; an abiding object lesson in a land
rotten with mismanagement. Yet he loved that land,
and the people he served so well, ardently and devotedly.
If there may be some waverings and a lack of that dis-
crimination which was one of his strong characteristics
in " These from the land of Sinim," his advocacy came
from the heart.
The service he joined in 1858 comprised only a handful
of foreigners and Chinese. The last Service List shows
a role of close on 12,000 employes, of whom 10,600 were
Chinese and 1400 foreigners. They are divided amongst
the four departments of Revenue, Marine, Educational,
and Postal. Of the view taken of the Service by its
Chief I may well quote the words of Sir Robert at the
banquet tendered him on his return home by the China
Association : " During the fifty years or more that the
Inspectorate has existed and this year, I may say, is
the jubilee year of the foundation of the service in 1858
during those fifty years the Inspectorate has given its
best service both to the public and to the Chinese
Government, and it has prepared the way and laid the
foundations for much that is being done at the present
time."
The " Reform " movement, as it is viewed from
within Government circles in Peking, found its first great
move in the famous Customs Edict of May 10th, 1906.
Whether the fact of a foreigner being at the head of
the Service led to the attack cannot be determined, but
201
most people inclined to the idea it was the large revenue
honestly collected that was the object in view.
Doubtless the fact that the Service employed numerous
foreigners may have been repugnant to those whose cry
was " China for the Chinese." The ordinary foreigner
looking on was inclined to think that in so far as the
Customs was concerned it was the alluring prospect of
being able to handle the millions of taels that found their
way into the Customs coffers ; besides, vast opportunities
of serving the great god of squeeze-pidgin were, so to
say, being allowed to run to waste. The plea was also
put forward that Chinese employes in the Customs should
also be given more responsible posts in the administration.
This was undoubtedly the early idea when the Service
was formed. But Chinese are themselves largely to
blame in the matter. They undoubtedly have the
ability for the work, but they have not shown the probity
that is a synonym for their commercial brothers. An
attempt is now being made again to promote Chinese
to higher posts, and to bring on some of the younger
men to fill them. It remains to be seen whether in this
instance the leopard will change his spots, or that
deeply-rooted and ingrained squeeze will prevail as of
yore. The system is indeed not wrong in Chinese eyes,
and it is there that much of the danger is. For if it is
once admitted as part of the system, its ramifications
would ere long be as extensive, and as pernicious, as they
are in every other Government Department. We know,
of course, that by Edicts in 1898 and 1899 the ad-
ministration of the Customs shall remain as then
constituted so long as any portion of the loans contracted
under these powers remains unpaid. Those loans run
for nearly thirty years yet, and we must hold the Chinese
to their own declaration that an Edict once issued must
remain. But China has sought to drive a wedge in the
best and most solid financial block that exists in the
Empire ; and she will require constant watching that this
wedge is not knocked in further. It is for her own
202 PEKING AND ITS POLITICS
good that while she is groping for administrative salvation
her best financial asset should be in hands that deal with
it cleanly. One may hope, for her own welfare, that the
school founded for the training of suitable students for
Customs work may be the means of imbuing them also
with the same spirit as has permeated the foreigners in
the service.
That there is an abundant number of Chinese as
mentally capable of carrying out the routine of the
Service as are the highly-paid foreigners will be conceded
by all. Yet foreigners have to be employed in the
junior branches to do merely routine work. Any
Commissioner in the Service could have the work of
his assistants as well performed by Chinese as it now
is by foreigners, if the same degree of probity could be
secured in the former case as in the latter. But the
difference is that the foreigner acts with perfect im-
partiality, whereas the Chinese assistant would be the
prey of his relatives or friends in assessing duty, ap-
praising seizures, or the other details of everyday office
work. No matter how honest the individual Chinaman
might be, he would have to submit to the " system,"
or his peace of mind would be sorely tried. If he refused
to act according to the recognised rules, he would assuredly
get into trouble with his relatives and friends, who would
find means of getting him into more severe trouble with
his superiors, leading probably to dismissal. Under
these circumstances the difficulty seems insurmountable
until the reform of the Mandarinate, of which I have
before spoken, is brought about.
That reform largely means financial reform, for if
Confucian texts are to give place to mathematics and
the various logics, whilst principles of common law are
to be applied in place of the bamboo and the cangue,
it is above all financial and fiscal reform that must be
put into the foreground. But assuredly much time will
be needed before such measures can be brought about.
The army, a Constitution, judicial reform, and other
FISCAL AND CURRENCY REFORM 203
matters are vicariously taken in hand, but the fiscal is
above all. China is not a raw new country in a backward
state. She was a highly developed entity at the time when
most of Europe was in little more than a state of semi-
barbarism. The West has since far outstripped the East
in mechanical appliances, and in most methods of
administration. More especially is this the case in
financial reform. We must look for slow development
in China, though her capacity for material progress would
be prodigious were the actual funds now collected by the
governing powers honestly administered. What can be
accomplished in even a short time was graphically shown
by the Tientsin Provisional Government. With a tenure
to be reckoned not by years but by months, it left a
proud record of works achieved, whilst it handed over
to the native authorities, on again coming into their
own, a sum of, I believe, something like 180,000 taels.
And this was the outcome of merely levying the same
taxes as under native administration, whilst possibly
more evasion was practised than under normal times.
Simultaneously a greater sum was spent in the public
interest.
One of the most urgent matters relates to currency.
With all their astuteness in the handling of money the
Chinese generally fail to appreciate such treatises as
Professor Jenks read to them. At least, when men of
the rank of the Viceroy Chang Chih-tung write such
childish effusions as his reply to the proposals for
currency reform and the introduction of a gold standard,
we must expect that a majority of officialdom has not the
least conception of the intricacies of the matter. And
such is doubtless the case. Advanced officials like his
Excellency Tong Shao-yi will tell you that China will
certainly go on to a gold standard. This, by the way,
would not be a precedent. China, at one time or another,
has done most things during her long history, and she had
a gold currency at one period as she had bank notes,
or their equivalent, before we in the West had arrived at
204 PEKING AND ITS POLITICS
such credit-agency documents. It is not my purpose
here to state how China would attain to a gold standard.
It has been all clearly set forth by Professor Jenks and
others. Nor do I propose to note the difficulties that
would doubtless be raised by the powerful Shansi and
other bankers' Guilds, or the fact that where we usually
have to deal only with exchanges as regards one country
with another, in China you have exchanges, not only
between province and province and city and city, but
between town and town, and even hamlet and hamlet.
The fact is, that by the Mackay Treaty which is now
the register of as many failures of the foreigner in China
as any other single Treaty document can boast of China
pledged herself then (1902) "to provide for a uniform
national coinage which shall be legal tender in payment
of all duties, taxes, and other obligations throughout the
Empire." Well, six years later she has done nothing in
this direction ; not even has she yet determined what the
denomination or weight or fineness of the unit coin shall be.
At one time it is the dollar, at another one of the numerous
taels (a weight) current throughout different parts of the
land. What she has achieved so far has been to flood
the country with hundreds of millions of 10 cash pieces,
the intrinsic value of which is about one-half the nominal
value. Provincial mints everywhere sometimes more
than one in a province have turned them out as fast
as the machinery could be made to revolve. But even
here there was no uniformity. The mints are now closed,
but they had done their evil work, and the resultant profit
had not been turned to any beneficial account for the
public good.
Regarding the international aspect, the result of the
events of 1900, added to the Anglo- Japanese Alliance,
and the outcome of the war between Russia and Japan
had the effect of remodelling the diplomatic forces in the
Far East, as they are at Peking. The first had the effect
of placing all the Powers on a common ground as against
China, but they were still ready, each for himself, to
POSITION OF GREAT BRITAIN 205
play his own hand as opportunity offered. The second
fact terminated depredations at China's expense, and
prevented any more corners being knocked off the
cumbrous giant, whose feet of clay were being slowly
vivified. The third fact has changed China herself,
and, added to the security that was granted her by the
second, has led her into the impossible the non-possumus
attitude that she has adopted for a year or two. There
are indications that this has passed, but during its preva-
lence it rendered any business very difficult at Peking, even
where sanction was already registered in the form of an
Imperial Edict. All were treated alike, and the effect
was to bring the various foreigners of all nationalities
together in short, a partial return to the old days when
there were practically only two parties the Chinese
being on one side and all foreigners on the other.
There seems to be a greater community of interests on
the foreign side now than has existed for a long time
past. In earlier days the gain by one Minister was the
gain of all, and was so considered. It is in no narrow
spirit that one hopes in this condition of affairs that the
British Minister may regain the lead that was Great
Britain's in former days, and that her position in the Far
East would justify at the present time. The lead would
not be used in the way that prevailed, say, ten years ago,
but under favoured nation clauses all would benefit
on the broad lines of policy. In her present Minister,
Great Britain has an excellent, hard-working, and
energetic official, who does not allow work to accumulate
within the precincts of the Legation, nor fail duly to
temind the Wai-wu-pu, at stated and proper intervals,
rhat certain matters had not been adjusted within a period
that even Chinese could not consider as savouring of
undue haste. Sir John Jordan's hands will, doubtless,
be full for the next few years, a remark that applies to all
the foreign Ministers. The coming years must be highly
interesting ones in the history of China. The vast country
is on the threshold of unknown things that she only blindly
206 PEKING AND ITS POLITICS
feels and has not the power to control along a settled
line of policy having a distinct aim and end.
One of the most interesting phases is certainly the
relations subsisting between China and Japan, which have
decidedly not been cordial of late. Incidentally, I may
note, one now hears nothing of that alliance between
the two yellow races that was to produce a debacle in the
West. The fact that, by her successful war with Russia,
Japan freed China of an incubus has met with no
symptoms of gratitude on the part of the country that
was saved. No such sentiments were displayed when
Baron Komura passed on to Peking to make the new
agreement with China, complementary to the Treaty of
Portsmouth. Nor, as time has gone on, has China shown
any disposition to be grateful for the position she is now
in as a result of Japan's successful war. Rather has
a contrary manifestation taken place. China has
stiffened her back on nearly every occasion, as she has
again shown in the negotiations arising out of the recent
seizure of the Tatsu Maru in the neighbourdood of Macao.
At present the conditions and interests of the two
nations seem to be widely different, and the rapprochement
so desired by Japan is delayed, seemingly, by the sheer
force of necessity. Japanese writers are given to assert-
ing that lack of tact in their country's diplomacy has
contributed considerably to bring about the present
position, and they ask what should be done under the
circumstances. Japan will insist apparently on the rights
secured to her by treaties, and bide the time when a
change of opinion in her neighbour will render a reasonable
solution of pending problems probable. But if China
is in a very entete mood, Japan in her own interests will
be wise to treat the questions tactfully, and not in every
case insist on the full measure being meted out. For
instance, in the Fakumen Railway dispute, she may be
quite right, but she may, possibly has, jeopardised her
own interests in a way that will react more powerfully
than allowing the construction of half-a-dozen Fakumen
OLD AND YOUNG CHINA 207
lines. Chinese conduct, by the way, singularly contrasts
with the humiliated posture and the avowed powerlessness
of the Government in regard to foreigners during 1895-
1900, and if they act thus towards the country whose
numerous fleet and formidable army are nearly at the
doors of Peking, one can judge of their attitude to the
Western Powers. The Chinese do not dissimulate their
ideal at all, which is to take back from Europeans all
the concessions accorded, and to exploit their empire
themselves. The regulations render all mining enter-
prise practically impossible to foreigners. China thinks
herself able to accomplish in a day what Japan has taken
half a century to accomplish. The prejudices of Old
and Young China, opposed on some points, converge
towards a narrow nationalism, a hostility to foreigners
which is an obstacle to every serious work of reform and
of transformation. It is to be hoped the greater
reasonableness shown since Yuan Shih-kai and Liang Tun-
yen joined the Foreign Office will continue, for if Western
nations show her much forbearance, it may not, perhaps,
be the same with Japan. Many are willing to be China's
friends if she will be a friend to herself.
Some few words should be added respecting the present
material position of the Chinese capital more especially,
of course, as it is to be seen in the Legation quarter.
A new Peking has arisen in this corner since the tragic
events of 1900. The railway route to the capital had
existed for some time prior to then, obviating the dis-
comforts and fatigues of a land or water journey from
Tientsin. But the station then was some distance
away at Ma-chia-pu, whence an electric tram, and then
a ricksha, took you to your destination, which was pro-
bably not far from the situation of the Legations. Now
you are taken to a station within the Chinese city, just
outside the Chien-men, the main southern gate of the
Tartar city, and a road traverses the historic spot of the
water gate, by which the first troops entered the Tartar
city on the occasion of the relief of the Legations in
208 PEKING AND ITS POLITICS
August, 1900. The canal itself has had its parapet re-
paired, and a bridge constructed over it just within the
wall. The railway station nestles immediately under
the wall of the Tartar city, and a few yards' walk brings
you through the water gate to the modern foreign Hotel
des Wagons Lits facing the canal, and cornering on
Legation Street. Visitors now may see a Peking so differ-
ent from what it was that former descriptions must seem
like " travellers' tales." The roads are such as were
undreamed of ten years ago, and neither mules nor human
beings now get drowned in the streets in the rainy season.
Rickshas have largely replaced the hansom cab of Peking
the cumbersome, uncomfortable springless cart, of
the capacity of a good-sized dog-kennel. Electric light
is general ; indeed, Peking is now the possessor of many
things classed as modern comforts. But it is an
anomalous Peking. That the position is so is perhaps
not extraordinary when you remember it is China, and
that the more things may change there the more they
often remain the same thing. The anomaly to attract
the greatest attention is the fortified Legation area.
Whether seen from the road level or from the ancient
wall it is pure exotic. The erstwhile yamens and Chinese
style of buildings that formerly did duty for the Legations,
and other resident foreigners, have given place largely
to foreign two or three-storey buildings. The super-
ficial extent of many of the Legations is often very great,
the largest of all being the British Legation. With the
addition of a large part of the former Mongol market,
of the Carriage Park, and of the Hanlin grounds, it now
extends to thirty-five acres. Others have done much
the same, and have generally rebuilt. Only the British,
the German, and the Japanese Legations as regards
buildings seem to remain more or less as before. To
great and wealthy Powers the upkeep of the new mansions
will not weigh at all, but some of the smaller Powers
must in time find the expense very great when the in-
demnity money has run off. Powers whose trade with
LEGATION GUARDS 209
China amounts to only a few hundreds of pounds a year
have Legations that must cost thousands to maintain.
By the way, as these constructions have largely been the
work of Chinese contractors, no inconsiderable sum of
the indemnity money has been disbursed to workmen
in Peking. Of other buildings the most striking is
certainly the Hong Kong and Shanghai Bank building,
with its clock tower and four-faced chiming clock. At
the other (western) end of Legation Street, the Deutsch-
Asiatische Bank was just completing handsome new
premises, whilst the Yokohama Specie Bank was to build
on a corner of the Japanese Legation ground, at the angle
made by Legation Street and the canal. By the way,
Peking has now no less than five foreign banks. In ad-
dition to the three I have mentioned, the Russo-Chinese
Bank and the Banque de 1'Indo-Chine also have branches
at the capital. Towering above all is the Marconi mast
at the Italian Legation, with its wireless apparatus for
communicating with the coast, and another system to
Tientsin, and there are the foreign guards of all nation-
alities doing sentry duty all over the Legation area also
to warn you of the anomalous position. The total of all
the guards is not now a large one. The outlook may be
uncertain, but as the guards are scarcely a guard from the
strength point of view, there are several who, like the
United States Minister, frankly advocate their withdrawal.
They certainly emphasise the fact that the West is still in
Peking now, as it ever has been for nearly half a century,
only on sufferance. Outside Legation area is the Ketteler
Memorial Monument a fine granite pailo stretching
across the Hatamen Street, marking the site where the
unfortunate German Envoy was murdered. The ignorant
Chinaman has, however, his own interpretation of the
monument. He believes it is to the man who killed the
Minister !
Apart from the Legation quarter, whether ir the Chinese
or the Tartar city, much has been changed during the
last few years. The most striking features are the
210 PEKING AND ITS POLITICS
macadam roads, with an occasional steam roller doing its
work. There are boulevards with trees at the sides, in
some instances. Carriages are seen everywhere with
officials, and even native ladies, driving about. The
chair has largely disappeared, but the cart still remains,
though, except as a private conveyance, it is not allowed,
with its knife-like narrow tyres, to use the metalled roads.
The police on these roads have also greatly improved.
They are neatly uniformed and apparently efficient.
They have been trained chiefly by men from the school
for police maintained by the Viceroy at Tientsin. They
are to be seen on their beats and efficiently directing the
traffic, instead of spending their time as terrors to the
people. I am informed that any attempts at blackmail
are drastically dealt with, and that the men are regularly
and properly paid, which takes away much incentive for
evil. Of striking foreign style buildings outside the fortified
area, one must certainly note the hospitals and par-
ticularly the French and the Lockhart memorial
buildings.
Whether it be on sufferance and possibly it is
only so or from other reasons, one can now again
visit such places as the Temple of Heaven and the Lama
Temple, which for nearly twenty years prior to 1900 had
been well-nigh impossible for a foreigner to see. Little
or no difficulty is now experienced in getting admission
to them. Some " bits of old China " still prevail in the
capital in the side lanes, but even there it is not all as
bad as before. The altered conditions have also brought
Japanese and other hotels, billiard saloons and grog shops
just outside the Legation area. The old-world time
aspect still clings to the Wai-wu-pu, ex-Tsung-li Yame"n,
but is to give way shortly to a new building on the other
side of the street. Its construction is entrusted to Mr.
C. D. Jameson, who has for some time acted as engineer to
the Foreign Office. Morally it is hoped the influence
of Sir Walter Hillier, the new Adviser, will achieve much.
The most remarkable change in the native city is,
PUBLIC ORDER 211
however, the revolution in the matter of decency and
public order in the streets. The objectionable habits
that were publicly indulged in are entirely discontinued,
and where cases do occur the delinquents are dealt with
pretty heavily. The hawkers and vendors of nearly
all classes have likewise been swept off the streets, whilst
markets have been established at convenient centres. The
Chinese have certainly done much in the last few years,
and have done it by themselves and not at foreign in-
stigation. It was even said that they contemplated
regulating the eternal trade, by the establishment of a
Yoshiwara in the Chinese city, under medical inspection,
on the most up-to-date Japanese lines. It is certain that
the wave of desire for foreign knowledge of all kinds has
led to their adopting much of foreign ways and methods,
though beneath you will see much as it has always existed.
The student wears foreign uniform khaki being greatly
predominant and invariably the peaked cap, which has
caught on prodigiously all the way from Canton in the
south to the capital in the north. Straw hats of foreign
style have also largely replaced the spreading and often
picturesque native summer hat. If I note that bicycles
are apparently greatly in favour, I shall have called
attention to some of the changes that are altering the
Peking that was so quaint and picturesque in earlier
years.
CHAPTER XI.
THE NEW SPIRIT IN CHINA. OPIUM.
Revolutionary Ideas Chinese Constitution Possible Internal Disturb-
ance Japanese Influence The Vernacular Press Instant Trouble not
Expected The Opium Edicts China's Resolve in the Matter
Popular Sentiment Different Action in the Provinces Spirit of 1906
Edict still Exists Reduction of Growth Effect of Edicts on Treaty
Ports Morphia Injection Japanese Want of Action Smuggling of
Morphia Judgment must be Suspended.
THAT China is going through a curious period in her
history will be patent to all who have followed recent
movements in that country. The general desire for
progressive reforms is manifest in many parts of the
Empire, and has caused ripples to appear in the most
conservative and stagnant of Chinese ponds. Struggles
between old China and the progressive parties within
her gates have been frequent and bitter, and their in-
tensity grows rather than diminishes. China is indeed
developing ulcers in many places, as the risings in several
parts of the country have shown, as well as such acts as
the murder of the Governor of Anhui at Nganking in
July, 1907. We have constantly seen these risings and
troubles hi years gone by ; but, as someone has said,
China, like the giant who was a little unwell, is so huge that
she, like the big man, may be generally said to be in pretty
good health whilst she has a rising in one province and a
famine in another. The new movement is, however,
apparent in many parts of the country, and though the
scheme of a Constitution is ill-comprehended by the bulk
of the population, the spirit of reform and greater political
freedom is abroad in many places. The regulations for
REFORM AND PROGRESS 213
the Constitution may be propounded, but only a limited
few grasp them ; it is only a small proportion of China's
many millions that grasps the idea, and then it is generally
of a hazy and ill-digested order. There is probably not one-
tenth of one per cent, of China's population that has ever
heard of a Constitutional Government, or what is com-
prised in such a statement. The village magistrate is
to the ordinary man the personification of government ;
this might be founded on a Constitution, or might not,
for all he knows or cares. There is a vast field for reforms
in China, and if something more was attempted along
lines that China has often been well-advised to follow,
the Constitution might take care of itself. That it can
be achieved in a reasonable number of years from the
time of the famous Edict of the autumn of 1906 seems
very doubtful indeed. Instead of reform and progress
a strong reactionary spirit set in the following spring.
Indictments and official changes showed that the reform
party had received a serious set back. This is probably
partly due to moving too fast, and partly due to its being
too much influenced by a Cantonese clique. The members
may be quite sincere in their cry of " China for the
Chinese," but in some instances this has meant China
for the Cantonese. This was succeeded by another
reactionary move to the recent reaction, i.e., reform still
more headlong and ill-conceived, or possibly revolution.
As a correspondent has pom ted out to me : " Dame
Partington cannot sweep back the tides of the ocean,
and the schoolmaster is abroad in China."
The various movements now in progress throughout
the country would appear to have their origin in different
springs. Some are based on a genuine wish that China
may move forward. Others are purely anti-dynastic,
and show themselves in such ways as rebellion, and the
assassination of En Ming, the Governor of Anhui. There
is, fortunately, so far, no manifestation of anti-foreign
spirit. Placards at times are virulent in tone, and call
on the Han race to unite and displace the Manchu power.
214 THE NEW SPIRIT IN CHINA OPIUM
They are termed the worst of foreign intruders into
China proper. The placards are seldom anti-foreign,
however, hi its usual acceptance. If revolutionaries should
perchance succeed in turning out the Ta Tsing dynasty,
what will befall will probably be worse than the present.
Without leaders, or with each leader fighting for his own
hand, chaos would reign, and sooner or later there would
be trouble with foreign Powers, leading to a possible
recrudescence of the scramble for provinces that opened
ten years ago, and has been allayed since by the Anglo-
Japanese Alliance which was the first of the instruments
to guarantee the integrity of China. If these revolutionary
firebrands had their way the country would be plunged
into convulsions that would, there can be little doubt,
lead to foreign intervention. If Chinese revolutionaries
proceed the way here indicated, they would not have
the men to carry the programme through in face of her
international position, and foreigners would perforce
come on the scene. Internal disturbance must mean the
seed of foreign aggression. Much of China is, as it were,
earmarked, but there would assuredly be much trouble,
possibly of an acute order, over the province of Chili.
I most fervently trust that the revolutionary party,
hi their blind hatred of the present dynasty, will see in
tune whither their actions are likely to lead their country.
Many point to Japan and the position she has achieved.
The analogy is entirely false. The condition of Japan,
her foreign relations, and the characteristics of the people
are entirely different and were so at the time of the
restoration nil 868 from what one sees prevailing in China
at the present time. It is to be hoped that this point will
be well noted, and not be used as an incentive by the
active party. In writing on the condition of politics
in Peking I have noted the strong Chinese feeling to oust
the dynasty. Pamphlets subversive of the Manchus are
spread about in a scarcely veiled manner, and can be
obtained by all who would have them. The atmosphere
is charged with a kind of electrical feeling that a
CHINESE JOURNALISM 215
vague something is coming. No one can define this
sentiment or exactly interpret its significance. All admit
it is likely to be an interesting period during the next
few years, but none dares to hazard speculation on the
outcome of the future. One authority will tell you
that Japan is the Power to be feared, that she is laying
her plans all over, so as to grasp China when the time
comes. Certainly in trade and commerce she is very
active, and her resident nationals increase in no mean
way. But politically she is not doing great things, and
financially she is disinclined at present to do more than
consolidate what has come to her as the result of the war.
From China she receives no love, but she does obtain a
certain amount of fear and respect, totally unaccompanied
by any feeling of gratitude.
Chinese journalism, which is young and displays many
of the vagaries of youth, is mainly on the revolutionary
side. It is a wonderful product of only a few years'
growth. It shares with the telegraph and the railway
the distinction of being one of the three great forces at
work transforming the country. It too often advocates
revolutionary doctrines, and holds out the Manchu
dynasty as the incarnation of social and administrative
tyranny. There are exceptions, I am glad to note. Its
general effect is unfortunately disquietening, when its
influence might be greatly of an educative order. Fed
often by young minds who have been brought up in the
views of the great thinkers of Europe, whether French
or British, they inculcate these views, and consider they
should be applied to Chinese Confucian doctrines. To
do them justice they look for a new and juster condition
of society in China, whether the mass can or cannot
comprehend the idea. A curious phase is the part that
women play in the new views. We may omit the guise of
magicians and prophetesses under which they sometimes
masquerade ; it is manipulated to excite the people. Their
action may spring partly from a desire to throw off the
yoke under which the sex groans in China. But they
216 THE NEW SPIRIT IN CHINA OPIUM
also take part though possibly it is engineered in
political matters, as was seen only a few months ago,
when a great mass meeting of women took place in
Canton in connection with the recent Chino-Japanese
affair respecting the seizure of the Japanese steamer
Tatsu Maru. Their influence is at least being cast on
the side that leads to social abstractions that have already
shaken Chinese society.
It is impossible to predict, and no one who understands
the real situation admits the possibility of any very
instant trouble to be expected in the Empire, beyond
the normal crop of revolutions and the troubles that occur
from famines, floods, and great natural disasters ; but no
one can say with any defmiteness whither China is being
led. The general position turns, as it has done for so
long, on the Empress-Dowager. If the revolutionists
gain any distinct successes, Yuan Shih-kai might be able
to stem the tide and roll it aside from Peking. The
Edict for Constitutional Government sets out that the
High Commissioners, after visiting Western countries in
1906, were unanimous in the declaration that the main
cause of the backward condition of the Empire (a great
admission, it will be acknowledged) was due to lack of
confidence between the Throne and officials and the
masses. A Constitution is to bring both together in
China as it has done in other countries. The road is a
long one to travel, and it does not seem from the constituent
elements that trouble will be avoided, unless China pro-
gresses by reaction to action, and then reaction again
towards action.
Diligent students of Chinese matters have always
found difficulty in arriving at what was the real intention
of the Chinese Government and people in regard to opium.
The drug, it has been freely asserted, was the reason
of war between Great Britain and China, whereas the
real truth lies in the statement, made by the late Sir
Thomas Wade and other authorities, that the same causes
of which opium may incidentally be taken as one
EDICTS AGAINST OPIUM 217
would have led to precisely similar results. To arrive at
a just estimate and a clear solution is not exactly easy.
The actual harm done, the possibilities of something more
deleterious taking the place of smoking the drug are
matters either of opinion, based on facts which are looked
at from opposite points of view in the first place, and of
conjecture in the second. It is as difficult to dogmatise
about this as it is of most things in China.
Edicts and fulminations against the drug in the past
have achieved singularly little. Now there are the recent
stringent proclamations against growth and smoking,
destined to sweep away the vice hi ten years (from 1906).
Imperial decrees have appeared ordering the discon-
tinuance of the habit. Local proclamations were issued
in accordance therewith, and posters and exhortations
were to be read in almost every city, town, and village
in the Empire. Much of this sort of thing has been seen
before. China is a nation prone to enunciating mag-
nificent precepts, that sadly fall away in practice. The
Edicts show us the precepts truly enough, though we have
yet to seek action in entire accordance therewith. In
some districts there is no doubt that the Edict is made
to run, but there is much doubt about many other
localities. Edicts grow more and more drastic, and one
of the most recent ordains that manufacturers of morphia or
hypodermic appliances are, when detected, to be banished
to " a pestilential frontier of the Empire," a suggestion
that recalls the boiling oil treatment of a Gilbertian play.
A recent valuable contribution on the matter comes
from the Shanghai correspondent of the Times : " It has
been said by a writer well versed in Chinese affairs that
this people loves regulations but abhors regulation. The
Edict of November 21st, 1906, was, therefore, hailed with
applause, but native public opinion regarded it from the
outset as a counsel of perfection. Imperial Edicts in
China, as has been well said by another writer, and as
foreigners know to their cost, cannot be enforced except
in so far as they are endorsed by public opinion. Neither
218 THE NEW SPIRIT IN CHINA OPIUM
the acts nor the omissions of the authorities at Peking have
any permanent effect on the life of the masses, except so
far as they register the movements of popular sentiment
and demand. In the present instance the popular senti-
ment undoubtedly exists, but since it is by no means
unanimous or universal, it is not matter for surprise that
the enforcement of the regulations is irregular and variable.
Consequently, you can no more abolish opium smoking
by Imperial Edict or pious opinions in China than you
can suppress the use of alcoholic liquor by Act of Parlia-
ment in England. Only public opinion can achieve these
results, the active conscience of a determined majority."
This is not always in evidence, as a Canton corres-
pondent writes in July last. He points out that some
measures have been taken in that city and its vicinity in the
suppression of opium smoking by the officials, but no
systematic methods have yet been adopted ; no depart-
ment has been established exclusively for the purpose ; no
special official has been appointed to enforce the opium
edicts ; and no organisation to search, arrest, and punish
those who smoke opium illicitly. Few of the wealthy
class possess opium licences bearing their proper names.
The licence is practically issued to the holder for the
right and the privilege of purchasing opium, but most
of them are in the name of servants, and not a few heavy
smokers possess half-a-dozen of them to satisfy the craving
for themselves and their friends.
The sceptic may therefore be excused if he, looking
at past experience, asks the questions : Is it more than
has been done before ? Is China really sincere this time ?
Or is it, as she has so often shown, that it is a fiscal
question only with her ? She has in times gone by
strenuously opposed the importation of opium because,
it was asserted, she was losing her sycee for it. We know
now that this was incorrect. China was not losing silver
for opium. My own opinion, based on what I saw during
this visit to China, is that a very considerable number
of China's best men are in earnest about it this time.
INEQUALITIES OF PERFORMANCE 219
The reiterated promulgation of edicts against the habit
indicates that the spirit which initiated the edicts of 1906
is still at work. It is the inequalities of the performances
according to the vigour or apathy of the local officials
that gives cause for anxiety to those who wish well to
China in her crusade. The crux of the whole thing may
be briefly put. If China by act and deed is really sup-
pressing the growth and smoking of opium, then it is our
bounden duty to help her in the matter ; measure for
measure, or a little ahead, as she effectively does. And
until we have the demonstration from China herself the
treaties must run effectively. For instance, the con-
templated monopoly at Nanking,to be spread subsequently
all over the cities and towns of the Viceroyalty, could not
be put in force without violating the treaties. I will not
question the motive of the suggested monopoly, but
accept it as a genuine factor to curtail consumption ;
but it would be a contravention of the British Treaty of
Nanking of 1842 (Art. V.), or of the French Treaty of
Tientsin of 1858 (Art. XIV.). Up to the present the
movement against opium has been taken up in a popular
way, and the native Press has been strongly in support
of it. Fashion, also, is for the moment against smoking.
It is no longer so proper a thing to do as formerly in the
Chinese rake's progress. In fact, it is " bad form," and
if public opinion in this way endorses the edicts it will do
much. If, instead of opium being, as it has been the habit
hitherto, given as a form of hospitality, it is " bad form "
to do so, something will have been achieved, though it will
scarcely be matter for congratulation if the alternative
hospitality in future takes the form of strong drink. It
is to be hoped that in this matter of the opium habit
China is not getting out of the frying-pan into the fire.
Already from Kansuh a missionary quoted in a recent
report transmitted by Sir John Jordan, H.B.M.'s
Minister at Peking, states that " the high price of opium
has induced people to take to drink," whilst the morphia
habit in the form of injection is one that needs to^ be
220 THE NEW SPIRIT IN CHINA OPIUM
carefully watched. The Government has certainly been
strict hi not appointing smokers to vacant offices, because
they indulged, and others (non-smokers) have been
appointed instead.
Part of the scheme to eradicate the growth and smoking
of opium is that its cultivation should decrease by a tenth
each year, in China be it understood as well as in India.
So that this will not be so drastic the growth was increased
in many districts. Where a hundred mow were formerly
under the poppy, the area has been increased to, say,
130 or 140 mow. A tenth per annum off the greater
figure leaves a larger area to go on with than the same
off the original ground cultivated. In some parts of the
Empire reduction, even to total extinction, has been
made. What proportion each bears to the whole area
cultivated I could not ascertain. It probably depends
on the activity or views of the local officials, who in this,
as in other matters, can make or mar an edict. The first
test of sincerity and efficiency remains meanwhile to be
shown in the reduction of the area of opium cultivation in
China. While in Manchuria a marked reduction is
vouched for by missionary observers due, no doubt,
to the personal influence and energy of Tong Shao-yi in
Sze-chuan, the great producing centre, the edict is re-
ported to be a dead letter in several districts.
As is well known, at the suggestion of the United
States Government, an international investigation into
the whole matter has been agreed to by the Governments
more closely concerned in the trade. China hesitated
for some time, but finally agreed. She apparently
failed to see at first that if she was really in earnest that
the inquiry could only be for her own good. We may
get some additional information from such an inquiry.
The Commission meets at Shanghai in January, 1909.
Every Treaty port has felt the influence of the
prohibition edicts. Shanghai has been peculiarly affected,
inasmuch as there are a number of licensed opium-
smoking houses. She has taken action, and one-third
THE MORPHIA HABIT 221
of the licences has been extinguished. Two years will
suffice to extinguish the remainder. What is more serious
is that whilst a comparatively small item of revenue
will be withdrawn, it is possible that a large sum may
have to be annually expended in preventive measures
to see that the new law is strictly adhered to. I wonder
if China, again giving her credit for all earnestness, is
prepared to pay the requisite large sums for prevention
throughout the Empire in the future. As regards
Shanghai and some other Treaty ports, it must be borne
in mind that the class of houses closed in the native city
and those in the Settlement vary very greatly. In the
former they are mere dens, whilst in the latter they are
often luxuriously furnished apartments not infrequently
used as places of business rendezvous. In a good many
instances they are likewise adjuncts to brothels, rather
than opium-smoking shops pure and simple.
There seems no lack of evidence to substantiate the fact
that the morphia habit has greatly extended. Many Powers
have assented to the clauses in the British and American
Treaties forbidding the importation of morphia except
for medical purposes. Only Japan held back. It is
curious that whilst she is rigorous in her prohibition of
opium smoking in her own territory, and that she
adopted all means to extinguish the habit in Formosa on
her taking possession of the island, she was so dilatory
in assenting to the clauses in the British and American
Treaties. Her actions in Manchuria are also gravely open
to question. The Japanese encourage smoking in their
settlements for revenue purposes, and at Antung " the
opium dens and gambling houses closed in the Chinese city
have been officially encouraged to establish themselves in
the Japanese quarter, where they pay taxes estimated at
350,000 yen per annum." (Shanghai Correspondent of
the Times.) To return to the morphia habit. If opium
smoking is so replaced, the officials will practically be
helpless in the matter. You cannot detect the eating
or injection of morphia, which can be concealed in a way
222 THE NEW SPIRIT IN CHINA OPIUM
that is impossible in smoking. The latter declares itself to
the nostrils, and necessitates a certain amount of cumber-
some paraphernalia that could fairly readily be detected.
Morphia is now subjected to a duty of 200 per cent, ad
valorum, as against the tariff duty of 5 per cent, which
was formerly in force. The Customs statistics show
that under the lower duty the somewhat considerable
import of about four tons took place. The amount now
recorded is only ounces in a year ; for 1905 it was 54
ounces, for 1906 it was 419 ounces, and for 1907 it was also
only small. It points to the fact of very considerable
smuggling being already in process. It will require a
wonderful service to prevent its surreptitious introduction.
It is a matter for notoriety that the morphia habit has
increased largely of recent years. Consuls, missionaries,
and police on the foreign settlements or concessions
all bear witness to this. If China gives up smoking opium
only to take to another form of the drug, she will have
accomplished nothing. Her people will be no better
off, and she will have lost a great revenue. Meanwhile,
though the letter of official instructions may be carried
out, actual preventive measures have yet to be under-
taken. As one Consul-General of mature experience
remarked to me, " The front portals have decidedly been
closed, but I fear in too many cases the back doors remain
accessible." Even in Peking opium is freely sold to-day
to non-registered applicants, and opium-smoking requisites
are still openly on sale. (Shanghai Correspondent of
the Times.) Registration of smokers has been carried
out in a desultory manner in certain districts, but the
regulation appears to be used in many cases as an oppor-
tunity for the Yamen runners rather than as a deterrent.
Observers on the spot, such as Sir John Jordan, Sir Robert
Hart, and the Peking Correspondent of the Times are,
as all well-wishers of China are, entirely sympathetic,
assured of the genuine national impulse at the back of the
movement, and the strength of public opinion : but they
suspend judgment.
IMPORTATION OF MORPHIA PROHIBITED 223
Since the foregoing was in type the Powers, including
Japan, have agreed to prohibit the importation into
China of morphia, as well as all instruments for its use.
The prohibition will take effect from January 1st, 1909.
Railway Map of China, showing Lines Constructed, Constructing and Projected.
CHAPTER XII.
RAILWAYS IN CHINA.
Imperial Railway of North China Hsinmintun-Mukden Purchase
Fakumen Extension Japanese Opposition Tongshan Works Engi-
neering College Question of Coal Supply Winter Port The Ching
Han Line Yellow River Bridge Chinese Love of Railway Travelling
The Shantung Eisenbahn Shanghai-Nanking Line Railway Work-
shops, Woosung Szechuan Proposed Line Sinyang-Pukow Connection
The Last of the Concession Lines Popularity of Railways List of
Lines Constructed and Constructing.
WHAT was familiarly recognised as the I.C.R. has now
become, with the growth of other railways in China,
officially known as the Imperial Railway of North
China. It has grown and developed greatly ; and so have
its traffic and receipts. The whole railway has, without
doubt, been a considerable factor in the development of
trade and personal movement in North China. The
original main line was from Peking to Yingkow (New-
chwang), 595 miles long, and the transit for passengers
took two days. The longer half was accomplished
the first day from Peking to Shan-Hai-Kwan, and the
second day brought you to Yingkow. A branch line
from Koupantse went to Hsinmintun (70 miles), and
as the Japanese line laid during the war from there to
Mukden (37 miles) has been acquired, this makes 107
miles more. There are also the short connecting line
with the Ching-Han Railway from Fengtai to Lukouchiao
(4 miles), the Peking-Tungchow line of 14 miles, laid by
British engineers as the result of the Boxer business in
1900, and the line to the Western Tombs from the
Ching-Han line. This renders the visits of the Emperor
and Empress-Dowager to the Imperial Mausolea some-
226 RAILWAYS IN CHINA
what easier of accomplishment than before. The section
of the line from Hsinmintun to Mukden, acquired from
the Japanese at a cost of $1,660,000, was only narrow, 3 ft.
6 in., gauge. It was rapidly converted to the standard
gauge, which is that of the rest of the railway, and the
daily mail train that ran either way between the Peking
and Yingkow termini was changed, as to its eastern
terminus, to Mukden. The section between Koupantse
and Yingkow became the branch line, whilst the mail
train with its superior coaches and dining car proceed
to and from Mukden. In matter of mileage say some-
thing over 600 miles the distance between Peking and
Mukden is not great, as people accustomed to railways
in Europe may look at the matter, but that the two capitals
can be spanned under two days is vast progress to all who,
only a few years since, had to make the distance in North
China or Manchuria. The business now done by the
railway throughout its system is immense in both
passengers and freight. Look at any train you will,
it is generally full of passengers, whilst freight is constantly
increasing, the main commodities contributing being coal,
wool, rice, salt, kaoliang, beancake, millet, oil, and cotton
piece goods, and other foreign imports. To complete
the tale of the system one must include the Ching-Chang
or Peking-Kalgan line now under construction. This
will be 125 miles in length. It branches away from the
present system at Lintsun, two miles from Feng-tai.
It was begun in October, 1905, and has been open for
two years to the foot of Nankow Pass, a distance of 33
miles. It is hoped that the whole line will be completed
in 1909. There was difficult work through the Nankow
Pass, and for some little distance on the northern side
thereof. It is being constructed out of the profits of the
North China line. A good deal has been made of the
fact that the line is being laid entirely by Chinese en-
gineers. It may be remarked, however, that the trace
was made by foreign employes of the North China line,
and that many of the engineers and workmen have had
JAPAN AND THE FAKUMfiN LINE 227
a good deal of experience on the existing railway. It
is an experiment that is being watched with interest,
and one may well wish the Chinese success. The line is
destined to be of immense benefit to the export trade of
Tientsin, as it will furnish quick and cheap transportation
for wool, skins, hides, and furs from Mongolia. Saving
in cost of transportation should increase the quantity
and add to the varieties of goods that can be brought
to market with profit.
The splendid receipts of the former operating lines
led to this enlargement, but the projected Hsinmintun-
Fakumen line, a distance of 50 miles, has encountered
strenuous Japanese opposition. A contract for this line
has been signed by Lord ffrench on behalf of Messrs.
Pauling & Co., railway contractors, acting with the British
and Chinese Corporation and the Hong Kong and Shanghai
Bank. The Japanese Government contends that when
in 1905, the Imperial Japanese Government, through
Baron, now Count, Komura, obtained from China an
undertaking not to build a railway which would run
parallel with the South Manchurian line or any branch
line likely to affect the traffic of that railway, Japan
had expressly in view the above-mentioned section, which
China now proposes to construct. The building of this
line, it is contended, would seriously affect the traffic
of the South Manchurian line. Japan's objection is based
on China's solemn undertaking with regard to this par-
ticular railway an undertaking to which Japan intends
to hold the Government of Peking. Japan affirms she
cannot afford to allow the construction of this line, which
is only the first link of a connection that it was proposed
should be carried on to Tsi-tsi-har, Aigun, and the
Russian frontier. The case for the British firm which
was to construct the proposed line was brought before Sir
John Jordan, the British Minister in Peking, and the con-
tractors were informed that the British Government could
not uphold their claim in view of the clear undertaking
given by China to Japan not to construct such a line,
Q 2
228 RAILWAYS IN CHINA
Representations have been made to the British Foreign
Office by the firm of contractors respecting the Japanese
objections. They point out that Japan's opposition is
based upon a clause in an informal secret agreement
dated April, 1906, that is, four months subsequent to
the conclusion of the publicly-known Chino-Japanese
Treaty of December, 1905. The clause referred to,
forbade China, for fifteen years, to construct any main
line in Manchuria that would be in competition with the
Japanese South Manchurian Railway, or a branch line
that would be injurious through diverting traffic. It
has been pointed out that the proposed line would rather
act as a contributory feeder to the Japanese system,
and is not, therefore, a breach of the secret agreement.
The branch is intended to tap a region that is at present
without outlet, and, at its nearest, is thirty miles distant
from the South Manchurian Railway. The line would be
fifty miles in length, would run over a populous plain,
and act as a link between Fakumen, which is the terminus
of an extensive river traffic, and the Chinese Railway.
Merchandise arriving at Fakumen by the river Liao is
conveyed by road and country carts southwards to
Hsinmintun. If the railway were constructed, this traffic
would not only be expedited, but would probably increase,
and a proportion of it at least would be sent forward
to the Japanese line via Mukden, though the bulk of the
goods that come down that way are destined for the
Tientsin market. The district tapped by the proposed
line is in no way served by the Russo-Japanese line,
and it would not enter into competition with it or lessen
its traffic. Japan, it is said, by her contention, establishes
an exclusive position precisely similar to that enjoyed
by Russia before the war, Japanese interests dominating
those of China throughout an undefined extent of
Chinese territory. This is, perhaps, true, but the result
of the Portsmouth Treaty was to instal Japan in Man-
churia in the privileges held by Russia. The only
qualification was that Japan, which had previously
CONFLICT OF OPINIONS 229
adhered to Secretary Hay's memorandum respecting the
open door, gave promises and statements to the world
in favour of that policy. It is well, however, not to con-
fuse the issues. In the railway question now in dispute,
there is no question of the open door. The Chinese main-
tain that Japan is straining the intention of the subsidiary
understanding recorded in the minutes preliminary to
the Manchurian Convention an understanding which
China did not intend to be applicable west of the Liao
River. They point out that the Tokyo interpretation is
untenable, because it would annul the effect of Articles
4 and 7 of the Portsmouth Treaty, and is also incompatible
with the terms of the Anglo-Japanese Alliance. The
Articles referred to read that Japan and Russia engage
not to obstruct any general measures common to all
countries which China may take for the development of
the commerce and industry of Manchuria ; and that
they undertake to exploit their respective railways in
Manchuria exclusively for commercial and industrial
purposes, and in no wise for strategic purposes.
There remains direct conflict between Japan and China
on the point, and Japan bases her contention on the
undertaking given by China in the course of Manchurian
negotiations previous to the Manchurian convention of
1905, and also subsequent to the same. It is certainly
not unlike China that she should give an undertaking,
and then endeavour to save her face by wriggling out of
it, or thwarting it in every way. On the other hand, we
can quite conceive that she never intended the engagement
to apply to a line west of the Liao River, and we must
remember that in Russian times she did not get east of
the Liao as she did in the summer of 1907 by the purchase
of the Hsinmin tun-Mukden line from Japan. In the
negotiations for this line the undertaking was again given
to Japan, we believe, as regards any competition with
the South Manchurian Railway. The only modification
Japan has suggested, and I do not know if that has been
officially made, is that the proposed connection for
230 RAILWAYS IN CHINA
Fakumen should be constructed due east to the South
Manchurian line, and not southward to Hsinmintun
on the Chinese line. As the Fakumen trade is purely
Chinese trade, and China desires as far as possible to
retain it for herself, it is not surprising that China does
not dance to the particular tune that is piped. China,
who pays, is naturally more concerned in traffic for her
own line than in feeding the Japanese line, even though
that line is almost the sole tangible asset that Japan
secured as the result of her costly war.
On a broad survey of the whole matter, one must
admit that China has herself signed away her rights, but
there are times when it is not politic to adhere strictly to
the absolute letter of your contract. I hold the present is
an instance. The construction of the line, as proposed
by China, cannot be harmful to the South Manchurian
Railway ; it can indeed only possibly bring a small
amount of traffic on to it ; it will not deflect any. The
Chinese idea of proceeding to Tsi-tsi-har and beyond
would undoubtedly be a competitor to the Japanese line,
and is rightly objected to by the South Manchurian Rail-
way and the Japanese Government. Allow, therefore,
the Hsinmintun-Fakumen line to be constructed on the
distinct understanding that its extension is reiteratedly
prohibited. Policy suggests this solution in Japanese
interests, because the opposition by Japan has been harm-
ful to her own interests in influential financial quarters
that have been, and may again be, most helpful to Japan.
In other ways the conduct of Japan gives rise to suspicions
that larger issues are involved.
Had this unanticipated opposition not been encountered,
the ambition was to go on into Mongolia to tap the great
skin trade and make its transport to the main market of
Tientsin easier. It would seem that the line would advance
to possibly Sinjan, a considerable centre north of Petuna.
This would be about 175 miles extension beyond
Fakumen, but this is looking a little ahead, perhaps, for
a few years, even allowing Japanese opposition is over-
TONGSHAN WORKSHOPS 231
come. The Administration could not, however, better
utilise its magnificent surplus profits than in extensions.
These are largely obtained because operating expenses
only come to about 28 per cent, of the takings a figure
that must make general managers and traffic managers
in Europe or America very envious. The receipts out-
side the Great Wall, that is, eastwards of Shan-Hai-Kwan,
which were not so satisfactory as the rest of the line at
first, now about equal the takings inside. Ching-wan-tao,
with its winter traffic, has had some little effect in pro-
ducing this, but the great factor has been the deve-
lopment on the Hsinmintun section. The economical
effect of all this on the country and its trade, apart from
the personal facilities afforded, is, as may readily be seen,
very considerable.
The main workshops of the company are situated at
Tongshan, where the general manager, Mr. C. W. Kinder,
C.M.G., who has been the father of the railway, resides.
The manager of the works is Mr. Jamieson, a son of
Shanghai's former well-known medical officer. The
transfer of the smaller and inadequate workshops from
the site adjoining the Mine Works at Tongshan was already
in progress in 1900. The Boxer business did a certain
amount of damage, and hindered the creation of the ex-
tensive range of buildings that is now practically com-
pleted. These comprise large shops for all classes of
construction and repairs for locomotives, passenger
coaches, and rolling stock generally. The shops are very
completely fitted, and the ground is extensive, allowing
for future developments. The new shops are situated a
mile or more away from the old ones, before you reach
Tongshan, coming from the capital. The transfer
completely effected, the old site will be handed over to
the Mining Company. This will give the latter the
necessary ground they need for their own surface require-
ments. Within the confines of one of the buildings
may be seen what is labelled the " Rocket of China."
The little locomotive is an interesting object even if it
232 RAILWAYS IN CHINA
is not quite correctly named, seeing that the Shanghai-
Woosung line had been operating for a year, and had then
been torn up for fully ten years, before Mr. Kinder made
the daring experiment of constructing, out of any material
he had at hand, this little locomotive, and laying down
a few miles of railway on which it could run. This
notwithstanding, it is historically an interesting object.
The other works of the railway are situated at Shan-
Hai-Kwan, and are designed to provide all bridge work
required on the line. The work done here has, I am told,
astonished engineers of considerable experience, who had
no idea that as far away as the Great Wall of China
efficient bridge work was constantly in progress.
A few minutes' walk from the workshops at Tongshan
brings you to a very interesting development. This is
the Railway and Mining Engineering College, which was
started in October, 1906, under the joint auspices of the
North China Railway and the Chinese Engineering and
Mining Company, the expenses being equally borne by
the two undertakings. There a technical college has been
started under the direction of Mr. Griffith, who was
formerly at the Railway College of Shan-Hai-Kwan. A
Chinese director is also attached. It has accommodation
for 160 students, but it opened with 120 students for its
first term. Not that it could not be filled to its full
capacity, but because it was thought better not to launch
right away at the fullest extent. Examinations for
entrance were held at Hong Kong, Shanghai, and
Tientsin, a requirement being that all should show a fair
working knowledge of English, in which language instruc-
tion is imparted. A certain time per week is devoted
to Chinese education, so that whilst acquiring technical
knowledge in a foreign language they will not neglect
their own side of education. The curriculum is much the
same as it would be in a similar institution at home.
All expenses of the students are defrayed. They are
housed and boarded, and in addition receive as pocket
money and for minor expenses a sum of 4 taels per month
ENGINEERING COLLEGE 233
in the first year, gradually rising to 10 taels a month in
the last year of residence. The average age of the first
batch of students was 18 years. The buildings are well
constructed, and provide good quarters for the students.
There is likewise a dining hall, where all can be accom-
modated, and four class-rooms. One class-room has
a number of models to illustrate bridge building, girder
strains, methods of handling weights, and such matters.
Other class-rooms are being added. Houses are provided
for the foreign professors and the Chinese director,
adjacent to the institution. A fine swimming bath has
been constructed. I was able to see how popular tennis,
cricket, and football had become.
At the inception of the railway company it was so
closely allied with the mining company that it was
difficult to know exactly where one commenced and the
other left off. The two worked into each others' hands.
They were subsequently divorced, and the mining com-
pany became a foreign company. The relations, though
naturally still close, are not, I believe, quite as cordial
as they were formerly. A consequence has been that
the railway has been seeking to have a coal supply of its
own. It was thought that the Nanpiao coalfield would have
provided this through the railway's ally, the British and
Chinese Corporation. The coal there has not been found
to be of desirable quality. Now a new field of what is
asserted to be very good coal has been discovered at
Hsin Ch'iu. This locality would be reached by a branch
line 50 miles long north-west from Lichiawopu, which
is about hah*- way between Koupantse and Hsinmintun.
It is asserted that terms have not been arranged with the
British and Chinese Corporation, which claims a share
in the enterprise. Apart from possibly providing some
of the fuel required by the railway, the carriage of the
rest of the output would provide additional freight for
the line.
If the mine field is developed, another matter will be
the question of a winter port for shipment of the produce.
234 RAILWAYS IN CHINA
In this connection the port of Chinchowfu is suggested.
This is situated on the Gulf of Chili, between Shan-Hai-
Kwan on the one side and Newchwang on the other. What
its capabilities are I know not, but the idea is to release
the railway from any domination, and to leave it a free
hand from Japanese control through Tairen (Dalny)
on the one side and Ching- wan- tao on the other.
A trunk line of great importance is the railway between
Peking and Hankow, known as the Ching Han Line
(Ching representing the capital, and Han for Hankow).
This is the third title that the line has rejoiced in. At
first it was known as the Lu-Han, then it became known
as the Pe-Han, and now it is officially known as the Ching
Han. It was constructed under Belgian auspices, with
money raised partly in Belgium and partly in Paris.
It will probably be a revelation when you step on board
the mail express train, which runs once a week from either
terminus, and performs the distance in 36 hours' con-
tinuous travelling. The speed is not excessive, and
indeed the road bed and the weight of the rails do not
suggest that very high speeds can at present be attempted.
The train consists of first and second-class corridor
sleeping carriages, and a dining car. The rolling stock
and the locomotives are generally of good quality. One
curious fact may, perhaps, be noted. In the sleeping cars
all the Chinese attendants speak French, taught them,
of course, by the Belgian employes of the company,
and it is remarkable how well many of them speak the
language. It is, as far as it goes, pure French, and not
pidgin French. When you go into the dining car, how-
ever, the attendants speak English, mostly of the pidgin
English variety. Aboard the train you will find
passengers, in all probability, of half-a-dozen different
European nationalities, talking perhaps almost as many
separate languages. But you will probably be more
struck at the number of Chinese. They seem to take
readily to railways wherever they are constructed in
China, as the often crowded state of almost any train
YELLOW RIVER BRIDGE 235
will readily testify. It is not only the high officials going
from north to south, but you will find many of the
merchant and compradore classes. China, old or young
or middle-aged, takes quite kindly to an innovation that
not many years ago was absolutely barred by Feng Shui
(the spirit of wind and water) and other superstitions.
Withal, it is doing much for the development of the pro-
vinces it traverses, a fact that will be increasingly apparent
when the necessary feeders and complementary lines
are constructed. The mere fact that the natives of one
province can now more readily meet and communicate
ideas with those of another province must tend to break
down provincial prejudices, to disseminate more ideas
and thoughts along common lines, and thus tend to
consolidation of the country, and greater centralisation
of the Government, whether it is the Imperial authority
at Peking or the local provincial officials. Telegraphs
and railways are slowly bringing about great changes.
My own plans in proceeding south from Peking were
framed only to go to Sing-hsiang-hien, where the junction
takes place with the Pekin Syndicate Line, and then to
return north to the capital. This, unfortunately, would
not have permitted of seeing the famous bridge over
the Yellow River, and unless I was prepared to lose
a week and take the next mail train, or proceed by the
ordinary slow daily train, involving stopping in Chinese
inns at night, it would have to be omitted. Through the
courtesy of the Chinese director of the line, special
facilities were given me to see the bridge. On my return
to Sing-hsiang-hien, a special train was kindly provided
for me. This took me south for an hour and a quarter
to the great bridge. On arrival, the engineer who is
in charge of the work met us ; and the special having
proceeded on, we were conducted over the bridge on a
trolley worked by coolies. This permitted of stopping
to examine the construction and any special spots. The
bridge is certainly a wonderful piece of work. It consists
of 103 spans each of 30 metres. This means about three
236 RAILWAYS IN CHINA
kilometres, or, say, round about two English miles. For
a certain distance from either bank the spans are con-
structed overhead, but for all the central portion they are
below rail level. The screw piles are sunk down 60 ft.,
but even at that depth no solid foundation exists. It
is all alluvium that has been carried in solution in the
turbulent waters of what has too truly deserved the name
of " China's sorrow." The piers are put down in a
square formation a pile at each corner. These are
connected by lattice work, and are further supported by
guard piles above and below in the line of clirection of
the current. From these piles braces go to near the
rail level, and permit of certain bending movements
of the bridge under exceptional stress of water. So
far, since the construction was completed, there has
been no exceptional freshet, so that the anticipated
maximum strain has not had to be encountered. For
the protection of the piles, and to attempt to make a
more secure foundation than the sort of floating mud
on which it now rests, many tons of rubble are put down
each season. Fascines are first put down at low water
season and the stone dumped on these. A group of so
many piers is thus treated each season. It is astonishing
how soon these stones bear down the fascines and dis-
appear from view in the soft mud. What is sought, of
course, is to secure some sort of a better foundation about
the base of the piles. Some distance above the bridge
a special training wall has been constructed for a length
of several kilometres with the object of deflecting on
to the southern bank, which is here somewhat hilly, the
heavy mass of water that comes down in freshet times,
and thus prevent its full force, when it is running, perhaps,
at a velocity of nearly 20 kilometres an hour, from striking
directly on to the structure of the bridge. One naturally
hopes that so interesting a construction as is comprised
in the second longest bridge in the world, even if it does
not present any very special engineering achievement,
is safeguarded by the precautions that have been pro-
THE SHANTUNG LINE 237
vided. It is an interesting feature from the fact that it
spanned for the first time the famous, but turbulent,
Yellow River. This must always bring it a certain
renown.
In pursuance of what has been termed the " rights
recovery " section of the " China for the Chinese "
propaganda, China is making inquiries in foreign financial
quarters to obtain the necessary funds to buy out the
line. According to the agreement for its construction,
Article V. stipulated that the Chinese could not increase
the amortisation or pay off the loan before September
1st, 1907. After that date she was at liberty to pay
off the loan at any time, and when refunded the
contract was to be annulled. The net profit of the line,
according to the published statement for 1906, showed
the considerable sum of $2,000,000. Of this sum,
$1,600,000 went to the Chinese Government and $400,000
to the Belgian syndicate. The Chinese, like most other
people, desire to obtain the whole of the profit, and the
figures given seem to show that there is plenty of margin
on which to finance the requisite loan.
I will now pass on to the Shantung Railway. A great
deal of the future development of Tsingtau centres in
this line. Official and commercial hopes are founded
on its capabilities, and on its twin sister, the Harbour
works at Tsingtau. Shantung, unlike most other portions
of China, has not the fine system of waterways, that
prevails so generally, on which it can rely for communi-
cations. Roads are as deficient for easy transport as
they are in most provinces. This province is generally
rather billy, which fact has retarded progress, for the
province is one of the oldest in China, and with lite
associations of Confucius you feel all the time in quite
ancient surroundings.
The Schantung Eisenbahn Gesellschaft runs between
Tsingtau and Tsinan-fu, the capital of the province, and
it has a branch line to Poshan for the mines there. The
main line is 412 kilometres long. It is standard gauge,
238 RAILWAYS IN CHINA
and laid on iron sleepers. Moderate weight rails are
employed, and at present no fast speeds are attempted,
though some acceleration of the service has taken place.
The stations are good useful buildings, without ostentation,
and adapted to the purposes for which they are designed.
The bridge-work over the many shallow rivers and
streams, which in the rainy season often become raging
torrents for a short time, is fairly solid, and the road
bed in good order. The passenger fares, generally speak-
ing, are moderate in amount. The line is at present
worked largely for what can be drawn from Chinese
travellers. Their interests are studied more than the
foreign elements in the traffic, which are naturally small.
The surplus in 1906, the eighth year of working, aided
by a higher exchange, came to m. 2,642,000, and after
passing 5 per cent, to reserve and 5 per cent, to special
reserve, a dividend of 4| per cent, was paid on the capital
of m. 54,000,000. The company has a complete range of
workshops at Syfang, close to Tsingtau, where all repairs
to stock and other material can be carried out, as well
as construction work up to a certain point. The com-
pany houses its employes here, and the workmen's
dwellings are a model of what should be done for Chinese
in this way.
With the line from Tientsin to the Yangtsze the con-
struction of which has just been commenced, the
Shantung Railway will probably have more traffic coming
to it of the foreign order, and will doubtless cater for this
by improved rolling stock.
The route followed is moderately interesting, and gives
you an idea of more flat land existing in Shantung than
the coast-line or the maps appear to indicate. You pass
busy and important Weihsien, with the big foreign
educational establishment on its outskirts. Then there
is Ching-ling-chow, with its adjoining Tartar city, and
Putung, with some curious tombs on the hills. By-the-
way, this portion of China is no exception to the state-
ment that the whole of China is one vast graveyard.
A SOLIDLY-MADE LINE 239
The branch for the Poshan mines leaves at Chang-tien,
and not long after, for a distance of about 50 kilometres,
you pass through a stretch of country that is slightly
reminiscent of Switzerland.
In the summer of 1907 it was my good fortune to be
taken over a portion of the Shanghai-Nanking Railway
that was open for traffic. The line had been fairly ex-
peditiously constructed, and was open as far as Changchow,
100 miles from Shanghai, a large walled city and a great
trading centre. It has since been completed throughout.
It is an extremely well-constructed line, very solid and
substantial. An effort has been put forward by all
concerned to give the Chinese an object lesson of what a
really first-class line consists. The road bed has been
well laid and well ballasted, and the rails used are a heavy
section. The line has been completed within three years,
and the first train travelled over the route with great
smoothness and comfort at an average of 25 miles an hour,
giving proof of a firm and substantially-built line. The
locomotives, passenger coaches, and rolling stock generally
are of superior specification, and nothing has been
neglected to make everything solid and substantial.
The Chinese authorities have, I was informed, once or
twice complained of the cost of construction, but they
might in part have mitigated some of it, had it pre-
sumably been consonant with somebody's " interests."
It was not, and where they might have assisted they have
not always done so. If it is, however, expensive, they have
an excellent piece of work, and one that will return its
value in lessened cost of upkeep. Already the traffic
receipts make an excellent showing, and in the traffic
manager, Mr. A. Pope, they have a man whose large
experience in India is already benefiting the Chinese.
The growth of the in-takings is most satisfactory. Week
by week and month by month the traffic manager wore
down the launch services that have been carrying so
much of the delta traffic of recent years, and he is con-
stantly devising new schemes for bringing freight to the
240 RAILWAYS IN CHINA
line. The passenger traffic is already assured, and it
will not be an insignificant one. During 1907 more than
two millions and a half of passengers were carried. This
readiness to travel is certain to be the forerunner of in-
creased foreign trade, by bringing buyers more into touch
with what foreign goods are on offer. The rates for both
passengers and goods are very moderate. A recent
British Consular Report from Shanghai notes : " The
railway is already becoming popular for certain classes
of goods, such as silk, cocoons, tribute rice, cotton yarn,
opium and cattle. All the cocoons now go by the
railway, owing to the advantage of rapid transit to the
Shanghai market, and the native merchants of one dis-
trict alone estimated that a saving of $20,000 had been
effected by railway transit for the season. After long
negotiations, the British Minister at Peking and the
Commercial Attache have succeeded in obtaining satis-
factory Customs regulations with regard to foreign goods
moving along the railway. The question of lekin for
native goods, however, is still in a difficult and uncertain
position, and the charges are so heavy that the goods are
unable to utilise the railway to any considerable extent,
though this difficulty will probably soon be overcome.
Roads and steam launches are gradually tending to act
as feeders to the line, and throughout its whole length
the railway has already asserted itself as a distinct power
in the land." It is an illustration of the short-sightedness
that too frequently characterises the doings of Chinese
officialdom that one set of officials representing the
Government will put on such lekin exactions as to
strangle transit, whilst the Imperial Government has to
meet the interest on the loan. It could recoup itself
for the interest by relaxing the lekin, but fails to do so.
To a foreigner a run up the line proves of considerable
interest. He passes the renowned Soochow the
beautiful with its magnificent palace of a station where
the Chinese of big official rank may be adequately
received ; then there are Quinsan and other places full
A SZECHUAN LINE 241
of memories of Gordon and the " ever victorious army" ;
Woosieh, the home of cocoons ; and other places of general
or historic interest ; moreover, the line closely follows the
Grand Canal.
The railway workshops are at Woosung. It will be
remembered that the short line from Woosung to Shanghai
was handed over to be worked by the S.N.R., when it
was commenced. A splendid range of buildings has been
erected as workshops. They are fitted with fine up-to-
date tools, furnished throughout with electric drive.
Besides repairs, carriage construction is also undertaken.
The wheels and axles are sent out from home, and the
bodies made and fitted locally. The wood employed is
usually teak. Iron wagons, sent out in sections from
home, are also erected in the shops. The works are
designed to do all the anticipated work of the line, as
well as for an additional 150 miles more, so that provi-
sion has been made for the future wants of the Soochow-
Hangchow-Ningpo Line, though that line will not now
apparently be worked as part of this system. Close by,
on the river, is a pier for the more convenient landing of
heavy goods and materials. This is fitted with shear
legs to lift any weight likely to be necessitated.
It is, perhaps, matter for regret that His Excellency
Chao Er-hsun, when relinquishing the post of Tartar
General of Manchuria to become Viceroy of Szechuan,
did not proceed to that post, but was appointed to suc-
ceed the Viceroy Chang Chih-tung in the important
Viceroyalty of the Hukwang, at Wuchang. When I
saw him in Mukden His Excellency informed me that
it was his intention as soon as possible after taking up
his new government of Szechuan to go earnestly into the
railway question that is, the line from Cheng-tu to
Ichang and Hankow. Calling for a small Chinese route
book, His Excellency computed the distance to be 1,800
li (say 600 miles) between Ichang and Che'ng-tu. He
hoped that the easier portion from Ichang to Hankow,
a distance of 1,080 li (360 miles, or close on 1,000 miles
242 RAILWAYS IN CHINA
in all), would also be taken in hand. Anyone who knows
the difficulties of the route up the Yangtsze gorges, or
from Ichang to Cheng-tu overland, will appreciate what
a railway would accomplish, but it would be a very costly
proceeding, and those who have traversed the ground,
and know the trade conditions, are very sceptical on
the subject of whether such a line would pay interest
on the required capital. Certainly the prospect of
tapping the trade of Szechuan, with its many millions of
inhabitants (whether the proper number be 45,000,000
or 70,000,000), or even the trade of the Cheng-tu plain
alone is very alluring. The cost of construction would
certainly be great, as the country is very broken. A
fairly good trace was, I believe, found by one of the
members of the Manifold Expedition, but even then
certainly not less than seven tunnels would be required,
besides a considerable amount of bridge-work and em-
bankments. Still, the Chan-Han Line is most urgently
needed now that the feasibility of steam navigation on
the Yangtsze must necessarily be abandoned. The
rapids prevent free navigation, besides levying a heavy
toll on shipping and cargo in its passage up and down
the river.
After numerous delays and protracted negotiations
two final contracts to complete the different concessions
for lines given in the famous years of 1898 and 1899,
have been concluded this year (a half concession is also
promised for the Sinyang-Pukow line, that is a line
eastwards from Sinyang on the Peking-Hankow line).
All the lines were delayed by the events of 1900, and it
was not possible for a considerable time after to resume
negotiations for final contracts. The two last were the
Tientsin-Chinkiang line, whose Yangtsze terminus was
altered to Pukow, opposite Nanking, and the Soochow-
Hangchow-Ningpo. There have been many delays and
procrastinations. In regard to the Soochow-Ningpo line,
the Chinese have acted in a manner both hot and cold.
The line has been sanctioned by Imperial Edict covering
LAST OF THE " CONCESSION " LINES 243
the concession. Yet it was suggested that the concession
had been cancelled, and the Chinese had, in fact, com-
menced to construct it themselves, authorised thereto
by another Edict. Most people doubted, with an in-
tensity that leads to a certainty, that they could make
the line, or even find the necessary capital. A com-
promise has been made. The loan for 1,500,000 has
gone through, and the local Chekiang people are to have
the line. We all buy our experience, and if the Chinese
like to waste a certain portion of their substance they
are free to do so. The pathways of China are strewn about
with many, often promising, enterprises, where much
capital has been lavished, but wasted through want of
expert (foreign) assistance.
With the issue of the prospectus of the loan for the
Shanghai-Hangchow-Ningpo Railway on the London
market in May last, we are getting towards the end of
the old concessions. If we take it for granted that the
balance of the Tientsin-Pukow loan will be placed when
the money is required, there remains only the Pukow-
Sinyang concession to be issued to the public. Negotia-
tions in this matter are proceeding with the Chinese,
and it is hoped will reach a conclusion ere long. When
this is concluded we may take stock of the position.
Despite recent favourable statements, it seems obvious
that the Chinese will not be able either to raise the
requisite funds or to provide the expert knowledge to
construct the great Canton-Hankow trunk line. When
the Hong Kong Government loaned t"he money requisite to
buy out the original American concessionaires, and others,
of this line, one of the terms was that if the Chinese desired,
or required, foreign capital or assistance that appeal
would be made to British capitalists. It is obvious to
all who have been watching events and doings on that
line, that sooner or later this appeal will have to be made.
Another less definite promise has been made for financing
and constructing the Hankow-Ichang line, which, we
may anticipate, will also be made in due course.
R 2
244 RAILWAYS IN CHINA
It will be evident to all who have been watching the
Chinese railway question that China has not yet arrived
at the stage, despite enthusiasm and newly-awakened
patriotism, when she can either undertake the finance or
construction of the lines she requires in the country.
Railways have become very popular, and their advantages
appreciated wherever they have been constructed. China,
it is true, has been making the Peking-Kalgan line. We
may, perhaps, here note incidentally that the prolongation
of this line to Kiachta, and so to Irkutsk, would bring
about a revolution in the possibilities of mail and passenger
times between Europe and China. Roughly, the railway
distance to Central Europe would be rather better than
half the mileage of the sea route. Somewhere within the
time of ten to thirteen days it would then be possible
to traverse from north or south of China to almost any
capital in Europe, proceeding via the Kalgan-Kiachta-
Irkutsk line, and then over the Siberian Railway to Moscow.
Here connection would be made with all European lines.
Many more lines, besides those I have indicated as
being near at hand, await construction in China, as
the value of existing lines is borne more fully into the
minds of both officials and people. In their construction
the foreigner, with his money and expert knowledge, may
assist without any derogation of national right or the
infringement of the popular cry of China for the
Chinese. China cannot, or will not, provide the money
herself. Officials who can get 15 per cent., or more, out
of the pawnshops are not going to subscribe to 5 per cent,
railway bonds ; merchants, bankers, or others with capital
will not entrust their money to official hands for reasons
that are well-known to all who know their China. In the
matter of construction, talent, and expert accountancy
the matter is the same ; China's lack of trained men will
have to be supplied by the foreigner. The necessary
arrangements should be to mutual advantage.
The opposition to railways applies also to many great
internal works of improvement, of which China is in need,
CONSTRUCTED AND CONSTRUCTING 245
and the execution of which would add greatly to her
wealth. Some of the party who suggest progress, imbued
with foreign education, admit this. The great fact that
it is hoped will finally make its weight felt is, however,
that the ordinary Chinese public wants railways and mines
and many other forms of Western invention and im-
provement. They are keen to move rapidly to get at
the gold, silver, copper, coal, and other metals that lie
buried in the country.
It will be of some interest to give a list of railways,
constructed and constructing, in China. In the map
the other chief projected lines are also indicated.
RAILWAYS IN CHINA.
CHINESE LINES.
Bail way.
Capital.
Con-
structed.
Con-
struct-
ing.
Imperial Railways of North China, Chinese (British 721
Peking, Mukden, Newchwang loan for New-
British engineers). chwang exten-
sion),
Peking- Tungchow (Brit, engineers) Chinese 14 ...
Can ton-Kowloon, 100 miles Chinese, British (Hong ... 121
21 miles British (British engi- Kong Govern-
neers). ment),
Chekiang Railway (Ningpo-Hang- British ... 200
chow-Soochow).
Taoko w - Chinghwaf u ( constructed British 93 ...
by Pekin Syndicate).
Peking-Kalgan (Chinese engineers) Chinese 33 ... 92
Pinghsiang-Chiichow (German engi- Chinese 64 ...
neers).
Canton-Samshui (American engi- Chinese 30 ...
neers).
Swatow-Chaochow (Japanese con- Chinese 25 ...
tractors).
Canton-Hankow (bought back from Chinese 26(?) 700
Americans).
Wuhu-Hangcho w (150 miles) , Chinese
Macao-Canton (130 miles). Chino-Portuguese ...
Wuhu-Kwang-teh-chow. Chinese
Kiukiang-Nanchang. Chinese ...
1,006 1,113
246 RAILWAYS IN CHINA
CONCESSION LINES.
r Con-
Railway. Nationality. st rcted. st - ruct "
Shanghai-Nanking. British Control 193 ..
Shanghai-Woosung (included with Do, do. 12 ...
foregoing).
Tientsin-Pukow One-third British, r ... 620
two-thirds Ger-
man
Shantung Railway, Tsingtau to German 273 ...
Tsinan,
Peking-Hankow. Franco- Belgian, 754 ...
(toPaoting-fu,
Chinese capital)
Chengchow-Kaifeng-Honanfu. Belgian 61 ... 55
Chengting - Taiyuanfu (originally French 130 ...
Ruaso-Chinese).
Laokai-Yunnanfu. French 50 ... 242
Chinese Eastern Railway (Russian) 1,088
Mandjuria to Kwang-chdng-tse.
South Manchurian Railway 508
(Japanese) Kwang-cheng-tse to
Tairen (Dalny).
Tongho-Ching-wan-tao. 4|
917
There is a branch line from the South Manchurian
Railway to the Fushun coal mines ; also a Chino-Japanese
line is projected from Kwang-cheng-tse to Kirin. Many
other lines are projected, and some have even received
the Imperial sanction, but their probable construction
within the near future is problematical. They would
bring the gross total of railways constructed, construct-
ing or projected to about 9,000 miles, a quite insigni-
ficant total for so large an empire as China. The figure
will doubtless be greatly exceeded in the next decade
or two.
CHAPTER XIII.
FOREIGN MINING ENTERPRISE IN CHINA.
The Chinese Engineering and Mining Company Coal Production
Ching-wan-tao Chinese Dissatisfaction at the Company The German
Mines at Shantung The Pekin Syndicate in Honan The Taokow-
Chinghwa Railway Re-purchase of the Shansi Concession An Event
to be Regretted.
IT is now thirty years since a little band of foreign
engineers set out from Tientsin to open according to
foreign methods what is known as the Kaiping
Coalfield. The development that ensued comprised the
Chinese Engineering and Mining Company, and the
Imperial Railways of North China. The Kaiping mines
were inaugurated by the then Viceroy of Chili, Li Hung-
chang, whose henchman in the matter was the late Mr.
Tong King-sing. This gentleman's name is known to
many in China, and his nephew, Tong Shao-yi, has
become even more known. With him were Mr. Burnett,
the head mining engineer, a man of great experience
Mr. C. W. Kinder as assistant, and Mr. Molesworth as
mechanical engineer. It was in the spring of 1878 that
I was invited by Tong King-sing to accompany the party
up-country, to be present at the inception of coal mining
enterprise on foreign principles in China. The offer
was alluring, but other engagements did not admit of
my taking the three or four months necessary to see
something of the inauguration of the work. I need not
recount the various steps up to the time that the mine
became the Chinese Engineering and Mining Company
248 FOREIGN MINING ENTERPRISE IN CHINA
(the Chinese Company), or follow the canal development
as a means of transport that first took place preceding the
railway. Mr. Burnett unfortunately succumbed before
much had been achieved, and most of the work has been
carried forward by Mr. C. W. Kinder, C.M.G., whose name
has been a household one for many years in North China.
When the railway made progress, the two enterprises
became dissociated, though closely allied. It will serve no
useful purpose to traverse the ground by which the
present company, an English registered company, acquired
the property. The manner and method have not con-
duced to the establishment of any similarly constituted
Chinese-foreign companies, and, as may be gathered
from the litigation that ensued in the British Courts of
Justice, the deal has certainly not pleased the Chinese.
The matter has been an unfortunate one from the
foreigner's point of view in China. It is to be hoped it
is even yet not beyond the possibility of being rectified,
and some measure of contentment brought to the Chinese
Government and the original Chinese shareholders.
Through the courtesy of the agent and general manager
in China, Major Nathan, R.E., I was enabled to see the
mines and establishments of the Company. The enter-
prise is having a great economical effect throughout the
country. There are several coal-producing centres, but
this is by far the largest and most important. Three
hours by the mail train takes you from Tientsin to
Tongshan, where the main shafts of the company are in
operation. Here you will find a British-Belgian com-
munity comprising the mining and technical staff. The
company, a British one, was constituted partly by British
and partly by Belgian capital. It is a happy community
that has M. Paquet as head engineer and manager. You
are speedily aware that the mine is a great undertaking.
Seeing the men checked in for one of the three shifts
which keep the mine going night and day is alone a sight.
For the first half of 1907 the wages bill was $100,000 a
month, and with thejelectrical plant installed in June of
A GREAT ELECTRIC PLANT 249
that year, the number of miners considerably increased,
and the amount augmented by no mean sum. The effect
of the disbursement of so considerable a number of dollars
per month has had an effect on the neighbourhood. The
annual reports for the last few years and the figures of
the profit and loss account, show the prosperity of the
mine. But the most considerable development took
place only recently. At a cost approaching 250,000,
an elaborate electrical plant has been installed. The
Tongshan mine is a wet mine. To cope with the water
the new plant was necessary.
There are three large electrically-driven pumps,
operated through motors each of 480 h.p., installed on
No. 4 level of the mine. These drive centrifugal pumps
at 1,500 revolutions per minute, the capacity of each being
five to six tons of water per minute with a working head
of 230 metres. Two pumps of similar power and capacity
are installed at No. 6 level ; these deliver to No. 4 level,
whence the water is pumped to the surface. At the time
of my visit one pump working at either level for 18 hours
out of the 24, sufficed to keep the mine dry. Naturally
during the rainy season more of the power available is
required. The big hydraulic pumps formerly in use,
whose capacity only permitted of a certain output of coal,
are now held in reserve in case of any accident to the
electric plant. The new power-house is a fine building,
and installed in it are three sets of engines, each of 1,628
h.p., generating current 2,200 volts three-phase. There
are also three motor generators transforming three-phase
into direct current at 220 volts for lighting and exciting
the generators. One steam dynamo is also supplied for
starting-up purposes. A feature of the plant is the cooling
tower for condensation, suitable for 750 cubic metres per
hour. The mines and surface works are all lighted by
electricity, which is likewise provided hi all the European
employes' houses. Besides the main Tongshan shaft,
there is also, at Tongshan, the north-west shaft. Electrical
power has also been provided there, being transported
250 FOREIGN MINING ENTERPRISE IN CHINA
by cable from the main plant. Similar power is also
provided for all shop purposes.
The north-west shaft has at present an output of about
10,000 tons a month. This, like the Tongshan main
shaft, increased with electrical power. The third mine
of the company is situated at Linsi, a few stations further
to the eastward on the railway. A similar electrical
plant has been installed there, permitting of a greatly
increased output, provision for which was made by a
new shaft. With the plant in full working, Linsi can
produce 3,500 tons a day, bringing the total capacity of
the mine to 6,000 tons a day. The coal at Linsi is similar
in quality to the Tongshan production, but the general
conditions of working are easier. The general quality
of both leaves, perhaps, much to be desired. It is not of
a high class, but it can be produced fairly cheaply, and
i s suitable for locomotives and steamers as well as house-
hold purposes. It is fortunate in having a great local
demand. Probably few, or no other, collieries are so
situated that there is a ready market at a price, but one
that pays for probably double or treble its output. It
is there locally ; the great string of coal carts at the mines,
the coal carts at all the stations along the line, the coal
yards at Peking and elsewhere, are evidence of the way
the product is used and appreciated.
Besides the coal mines there are brickyards at both
Tongshan and Linsi, operated by the Company, and to
complete the industrial portion of the matter, a reference
should be made to the port of Ching-wan-tao. It is on
the Gulf of Chili, which, at that spot, is generally ice-free
in the winter. It provides what has been termed a
winter pier when Tientsin and Newchwang are closed. It
is reached by a short branch line, owned by the Mining
Company, from Tong-ho, a station on the North China
Railway. To the Rest House Station the line is four
miles long, and to the end of the breakwater four and a
half miles. The trains proceed right alongside the
company's steamers for the convenience of passengers,
PORT OF CHING-WAN-TAO 251
and are run to connect with the mail train proceeding in
either direction daily on the North China line. The
company has made a harbour of a fairly satisfactory
nature to provide facilities for the port. The works,
which gave a certain amount of trouble, consist of a break-
water and a pier enclosing a fair acreage of water. During
1906 the breakwater was extended 300 ft., making its
total length 2,300 ft., and the pier was lengthened to
1,600 ft., and broadened 20 ft. At the breakwater
there is berthage for five steamers, of which two are for
vessels drawing 22 ft. of water. The other three berths
are for ships of 18 ft. draught. There are four tracks
of railway along the breakwater. Improvement works
have straightened out the chord quay, which seems to
have been a bad feature in the original design. The normal
coaling capacity is about 150 tons an hour, and vessels
can discharge, say, 700 tons of general cargo in the 24
hours. The pier has two berths for vessels drawing up
to 1 7 ft. of water, and it has two tracks of rails laid along
it. The company has erected a fine godown 600 ft. in
length and 45 ft. broad, with a storage capacity of 7,000
tons of cargo.
At present the port is occasionally used by different
steamers apart from the company's own vessels, the
" Ping " Line, but the harbour has not become very
popular. Perhaps liberal treatment for steamers may
induce lines to utilise the port to a greater extent than
hitherto, for the harbour does not seem to be so greatly
used as one would anticipate, when the only other ports
in the Gulf are frozen up. It is a pity also that some
scheme cannot be arranged to avoid the amount of
handling that cargo has to undergo. The company's
cars into which the cargo may be put on arrival are not
allowed to run on the North China Railway. Goods have,
therefore, often to be transhipped again at the junction
at Tong-ho. This, of course, means another expense
as well as the possible damage at each handling.
Where possible, goods are loaded directly into the
252 FOREIGN MINING ENTERPRISE IN CHINA
railway company's wagons, but such are not always
available.
I would now say a few words on what I may term the
politics of the subject. They have a very considerable
bearing on other matters apart from the actual concerns
of the company itself. It is not necessary to go over
ground that has formed cause for litigation in the Courts
in London. Briefly, the Chinese do not understand the
whys and wherefores of how it was that they only
received 365,000 out of a capitalisation of 1,000,000,
and that beyond this it was necessary to create 500,000
in debentures. There was the side issue also that Chang
Yen-mao, who signed the contract for sale, and his
friends did not think they were really selling the
property; but that some such deal was in progress as
happened when the China Merchants S.N. Company
was temporarily transferred to Russell & Co. during the
time China was at war with Japan in 1894-5. They
thought they would naturally have to make compensation
for the favour done them, a favour that in reality saved the
property from falling into Russian hands, but that when
the Boxer trouble of 1900 had blown over their property
would be restored to them. The documents are entirely
against them, but that they anticipated a return of the
property is common knowledge in North China. The
result has been that Chang Yen-mao lost a good deal of
" face." Rumour has several times asserted that something
further was to be done for them (the Chinese shareholders)
in the way that they would have a greater interest in the
company. Just how that is to be accomplished I am not
in a position to say, but negotiations are understood to be
again in progress at the present time. The whole matter,
as it has stood since the company was formed, has
created a bad feeling amongst the Chinese. They look
on it as a precedent that might be followed in other cases,
and the result has been to hinder the possible formation
of any similar enterprises where foreign capital and expert
knowledge might have been brought into co-operation
COAL AND IRON IN SHANTUNG 253
in developing enterprises in China, to the mutual ad-
vantage of both foreigners and Chinese. A bad im-
pression has been created amongst the Chinese in North
China that one would like to see dissipated. The only
redeeming feature of the whole matter has been the
honesty of the work that has been achieved by the foreign
staff in China. The men on the spot by their capacity
and integrity have done excellent work for all interested.
The second property I propose to devote a few words
to is the German mines in Shantung, an enterprise closely
associated with the railway, and owned by the same
group of directors and shareholders. There are two
centres of coal mining exploited by the Schantung Bergbau
Gesellschaft. Time did not admit of my visiting the
younger development at Poshan, but I may give a few
brief particulars of the position there that were supplied
to me. The coal production at either mine is one that
closely affects the prosperity of the railway, and the
development has been looked forward to with great
interest. Around Weihsien district some 50 or 60 native
shafts were worked on a small scale. The Chinese have
indeed worked them for centuries, but no great depths
were attempted by native methods. Water usually
overtook them ere they got very far. Seeing what could
be done by foreign methods there are now quite a large
number of mines worked by foreign machinery.
At Poshan the development stage was still in progress,
the output being 100 tons a day. The plant is all ready,
and screening plant is being finished. There are two shafts,
and these as well as other works, by the close of 1907, would
have given the mine a capacity of 400 tons a day, had not
an explosion considerably interfered with operations.
Mixed with the Fangtse coal it makes good coke, the two
amalgamating well as regards percentage of gas. The ques-
tion of coke may be very important if the adjacent iron
mine proves successful. It is situated about fifteen miles
to the north of the Poshan mine, and the ore assays 60 per
cent, of iron, without copper or sulphur. It is proposed
254 FOREIGN MINING ENTERPRISE IN CHINA
to use the gas extracted in making the coke for the
boilers. There are five seams of coal situated in the mine
running from 2 ft. to 8 ft. in thickness.
The larger mine adjoins the station at Fangtse, distant
183 kilometres from Tsingtau. The older mine, half a
mile from the main line, consists of the Fangtse shaft,
which has three coal seams, the No. 1 seam being three
metres thick, and Nos. 2 and 3 each four metres thick.
They lie at a dip to the north of 14 degrees. There are
two levels : one at 175 metres, and No. 2 at 250 metres,
where the pumps are situated. There is, fortunately,
little water to be dealt with, the present quantity being
only 60 gallons a minute. A new shaft, known as the
Minna Shaft, was being made by enlarging the air shaft.
This is intended for ventilation, and will be worked as
a closed (air) shaft. At present the production of the
main shaft is 500 tons a day, but with the new shaft
completed 700 tons a day is possible, and very shortly
1,000 tons a day. The surface works are all ready, and
consist of washing and screening plant of four sizes.
All the coal, except the large lump, is washed. The last
is practically the dust, and is passed on to the briquette
factory, which has a capacity of 150 tons a day. This
could, by a small expenditure, be doubled to 300 tons a
day. The briquettes are of a high quality, containing
10 per cent, of tar, and fetching $11 to $12 a ton at
Tsingtau.
The new shaft, known as the Annie Shaft, is situated
on the north side of the railway, and strikes the No. 1
seam at a depth of about 340 metres. The quantity of
coal extracted is expected to increase gradually up to
the daily output of 1,500 tons. With the produce of the
Fangtse shaft the whole output will thus be 2,500 tons a
day. The washing plant to be erected at the Annie
Shaft will be able to deal with the whole output, and if
the briquette factory at the older shaft proves satisfactory
a, similar plant will be attached to the new shaft.
Excellent buildings for the plant and shops are erected.
THE PEKIN SYNDICATE 255
The coal itself is described as a good gas coal, containing
30 per cent, of gas, and as suitable for both steaming
and household purposes. Before the full anticipated
output is reached it will be a question of developing mar-
kets for its sale.
The staff comprises 50 white men. There is a school
a schoolmaster being one of the white staff which has
a present attendance of 10. The school apparatus seemed
very up-to-date. There is also a very suitable building
for a club, with bowling alley attached. The hospital and
medical quarters are about half a mile farther on. The
general manager, as well as the superior mining and office
staff, are located on the north side of the railway, where
they have excellent quarters with good gardens attached.
They had not long been in this location, but trees and
fruit have been cultivated. The soil seems excellent,
and flowers, grapes, strawberries, and many other fruits
abound. The climate is also reported as very healthy.
The statement is made, and I can well believe it, that the
general health of the white staff is much above the con-
dition in Europe. As an aid to keeping the white em-
ployes in good health the company has provided a com-
petent butcher and baker, in addition to which soda
water can be obtained at a very moderate rate, as well as
an abundant quantity of cheap and good ice, so necessary
to preserve fresh provisions in the hot weather. A kind
of co-operative store is also run for the general benefit,
where goods and stores of all kinds may be obtained of
good quality at cheap rates.
I will now pass on to mine development work in Central
China. Nineteen hours from Peking suffice to reach
the Honan works of the Pekin Syndicate. Only a few
years ago the journey occupied some three weeks by
native methods of travel. The distance is 450 miles.
At Sing-hsiang-hien the line constructed by the Pekin
Syndicate, and subsequently taken over by the Imperial
Chinese Railways, intersects the Ching-Han Line, running
roughly east and west from Tao-kow to Ching Hwa.
256 FOREIGN MINING ENTERPRISE IN CHINA
Proceeding in its westerly direction about 40 miles, you
come to Chiao-tso, the village adjacent to which Ja-mei-
sen has been established. Incidentally it may be noted
that the mile of siding from Chiao-tso Station to the
colliery head is the only piece of British-owned railway
in China. The whole railway is nearly 100 miles. It
has been paid for by the Chinese in 5 per cent, bonds,
issued at 90 per cent, of face value, repayable in thirty
years by annual drawings to commence in 1916. So far,
the line has not been a very paying one, but traffic receipts
are growing. It is said that the Chinese are disappointed
at the results, but in the absence of the extensive coal
traffic anticipated that will some day eventuate it is
scarcely to be expected that the line should yield any con-
siderable profit. The great present difficulty is that the
railway practically begins nowhere and ends nowhere.
To make it a paying proposition it would be necessary
to prolong it on the one side to Tse-chow-fu in Shansi,
a distance of 33 miles in a north-westerly direction from
Pai-shan, the last station before reaching the western
terminus of Ching Hwa. This is assuming that the
Shansi coal and iron mines will be developed. On the
eastern side the line should be prolonged to Ling-ching-
chow at the junction of the Wei River and the Grand
Canal, the object being to connect with the German railway
at Tsinan, Shantung. This eastern extension is roughly
120 miles, but together these two additions should very
materially add to the paying propensities of the line.
The railway at present really forms but a short link
in the long line of communications carried on by the
carters. The cart hongs and the inns are, perhaps,
naturally, very antagonistic to the railway, and there
seems sufficient evidence to prove that the officials are
interested in these institutions, so that their goodwill
is not secured. The Syndicate wanted to make the
station at Ching Hwa, outside the western gate of the
city, so as to tap the cart traffic as it came in from Shansi
and the west. Vested interests, however, were too strong,
JA-MEI-SEN 257
and the station is outside the north-eastern gate. This
means that the traffic must pass through the city for the
benefit of inns and cart hongs. A factor in the matter is
also that goods going by railway have to pay lekin. The
carts either evade this impost or arrange at a lower rate.
Certainly they do not pay the tax to the same degree
as the rail-borne traffic. This would seem to show official
connection, or " squeeze pidgin," with the cart hongs. It
is the usual case of old " interests " ; they are not exactly
in keeping with new conditions.
One hears a good many comments from opponents
of the Syndicate on the amount that the Chinese have
had to pay for the line. It has undoubtedly been an
expensive purchase, owing to some mistakes that were
made in the earlier stages. The generally accepted
report that a large profit was made on its sale is, I believe,
however, not exact. I was positively assured that the
Chinese had vouchers given them for every item of expen-
diture which entered into the total figure. Certainly they
have now a good piece of work ; the road bed, stations,
and general conditions are well up to standard.
Before noting what has been done at the works at
Ja-mei-sen (called after Mr. George Jamieson, C.M.G.,
ex-Consul-General at Shanghai) on the Honan Concession,
I may say that a good deal of criticism has been levelled at
the Syndicate alike by foreigners and Chinese. In a way it
is perhaps unfortunate that development of the coalfield
in Shansi was not undertaken before that of Honan.
After the report of Mr. Glass, who visited the concessions
in 1899, came Mr. Shockley's recommendation in 1900.
He found the coal at the native mines in Honan to be soft
and mainly in heaps of dust, though undoubtedly some
good coal was then, and is now, as I saw myself, locally
produced. He recommended that the Syndicate should
go to the plateau in Shansi, in the neighbourhood of
Tse-chow-fu, but that if operations were to commence
in Honan the shaft should be sunk to the south-east of
the existing native mines at Lao-niu-ho. Mr. Alexander
258 FOREIGN MINING ENTERPRISE IN CHINA
Reid, the succeeding engineer-in-chief, concurred in the
opinion that the plateau of Shansi was the best locality,
but also, that if Honan was selected, the site should be the
same as that proposed by Mr. Shockley, i.e., Ja-mei-sen.
It was not possible for various reasons to take the railway
to Tse-chow-fu (the plateau), and the vicinity of
Lao-niu-ho was selected. I need not go through the
various development works that have been in progress
for some six years. The record has been given in the
reports to the shareholders, in the reports by the
engineer-in-chief, and the speeches of the chairman of
the Syndicate. Many difficulties of disturbed ground and
water were encountered. All that was known was that
the native workings, with their ancient and primitive
methods of dealing with water, were drowned out at
comparatively shallow depths. I personally went down
all the shafts. I could there see for myself from the
drives that the strata are much disturbed in the im-
mediate neighbourhood of the pits, but that at the 656 ft.
level, at a distance of 60 ft. from No. 1 shaft, on the south
side, strong coal existed, with a good black shale roof
regularly stratified. The hope to be gathered from this
was that the belt of disturbed strata, which ran from
south-west to north-east, was not of great width. Since
then another borehole showed good coal, and a shaft
was sunk on the site. From last reports it is hoped
that firm coal in paying quantities is now in sight. Drives
of some distance may have to be made from the existing
shaft ; but this course will doubtless be less costly than
moving the pithead works. In other respects the works
are favourably situated for coal hauling. The drives,
even if they are several hundred yards, would probably
be through good strata, and the cost of endless rope
haulage would probably be small in comparison with
a change of site for the main works. Everything, in fact,
is ready for the work, and the gear is on hand directly
the coal can be won.
The men engaged in working out this problem in Central
THE SHANSI CONCESSION 259
China form a compact and strenuous little British
community. They work well, notwithstanding the mis-
fortune that has attended the prospecting necessary for
final work, delayed and procrastinated as it has proved
to be. Where the blame for non-success lies is not for
a mere layman to say, but it scarcely seemed to be at the
door of the working staff on the spot. Apart from the
too glowing or too sanguine, perhaps, is the better word
reports that have sometimes been put abroad, which have
not always been conducive to the true interests of the
Syndicate, misfortune and the unforeseen difficulties that
are almost invariably met in opening a new coalfield,
whether it be from faults of nature, excessive inrush of
water, or other cause, account largely for the delay in
winning coal.
Finally, I may note that considerable differences of
opinion have existed between the Chinese authorities
and the representatives of the Pekin Syndicate, arising
especially out of the terms of the Shansi Concession.
Delays there were owing to the Boxer troubles, and to
the fact that without facilities for transport it was no use
mining in Shansi. Then came the new ideas of " rights
recovery," leading to intense opposition locally. Peking
was either unwilling or unable, in face of this attitude, to
make its writ run. Negotiations took place from time
to time until a settlement was arrived at. The Chinese
bought back the Shansi Concession, the Syndicate retro-
ceding the rights in consideration of a payment of
2,750,000 Tientsin taels, half the amount being paid on
February 21st last, and the balance in three equal yearly
instalments commencing May 19th, 1909. It is also
stipulated that if, hereafter, the Shansi Province wishes to
borrow money for mining, working iron, or transport of
materials, negotiations must first be opened with the
Pekin Syndicate.
When it is contended, as was sometimes charged
against the Syndicate, that they did not intend to work
seriously in Shansi, it may be pointed out that the request
s 2
260 FOREIGN MINING ENTERPRISE IN CHINA
for the permit to work was lodged years before the re-
purchase. It had been recognised and promised in
Peking, but the Shansi authorities refused to issue such
permit. The non-issue led to the definite handing in of a
claim, sanctioned by the British Government, for the
delay. The claim was for 200 per diem, commencing
from January 1st, 1907. This claim was merged into
the final settlement. There was apparently intense
opposition in Shansi, but, as usual in China, it was difficult
to know whether the feeling was of the people or whether
it was officially promoted. Previous experience shows us
that the officials can control these ebullitions if they are
so minded. Trouble where foreigners are concerned
usually comes from either official apathy or official
instigation. Compromise has been the end of the difficulty.
In the solution Mr. George Brown (formerly of H.B.M.'s
Consular Service in China), the Agent-General of the Syndi-
cate in China, had to exercise great tact and patience.
Every well-wisher of the development of mines and
railways in China, whether Chinese or European, all
who look for a consortium of foreign capital and ex-
perience with Chinese to work the ground lying available
in China, must regret the arrangement arrived at. The
anticipated inviolability of a contract ratified by Imperial
edict (a document supposed to be irrevocable) is met
with a refusal to comply with its terms, though the
Syndicate showed a disposition to modify them in favour
of Chinese. Meanwhile it is useless to disguise the fact
that the whole business had a bad effect on the Chinese ;
they were inclined to jeer, and they used the argument
that other enterprises of a similar character could not be
entered into because of the non-success and waste of time
in development. The troubles of 1900 were responsible
for the initial delay ; lack of communication to get out
the products and Chinese opposition account for most
of the rest.
I have already alluded to the Pinghsiang mines in
Hunan, worked by a German staff, to supply the needs
THE FUSHUN MINE 261
of the Hanyang Ironworks. Foreigners are not intimately
associated with other coal-mining schemes in China,
but it may be noted that the Japanese have succeeded
to the Russian rights in the great mine at Fushun, in
Manchuria. Development is being proceeded with, and
a great output may be anticipated.
CHAPTER XIV.
SOUTHERN MANCHURIA.
The Hsinmin tun-Mukden Line Consulates at Mukden Manchurian
Government Reconstituted The ex -Tartar-General Improvements
in Mukden Manchurian Trade Chinese Dislike of Japanese South
Manchurian Railway Liaoyang Newchwang Improvements and
Trade Antung Tairen (Dalny) Russian Expenditure Trade
Harbour Port Arthur A Reception by the Governor- General The
Naval Port The War Museum The Battlefields Japanese and
Russian Dead.
MY arrival at Hsinmintun by the North China Railway
took place two days after the transfer of the short,
narrow-gauge line, running from there to Mukden, had
been effected by purchase from the Japanese authorities.
I was accordingly more favoured than most other foreign
travellers, for the appearance of the Chinese railway
authorities signalised the introduction of first-class
carriages. Hsinmintun figured prominently in the war,
and achieved a good deal of prosperity. It is a consider-
able mart, but the through railway transit will naturally
affect it somewhat. Traffic seems considerable with
Mukden, judging by the length of the train there were
20 cars and the numbers on it. Of the line little need
be said, the road bed was only moderate, and the
travelling rough. The best bit of work seemed to be the
long wooden bridge over the Liao River. This was not
intended to be a permanent structure, though it looked
good for a few more years. The administration of the
Imperial Railways of North China soon took the line in
hand, and it was relaid standard gauge. It took slightly
FOREIGN CONSULATES IN MUKDEN 263
over three hours and a half to do the 37 miles to Mukden.
The station is alongside the South Manchurian Railway
line, as the Japanese portion of the Chinese
Eastern Railway is known. From the station to
Mukden, a distance of nearly three miles, a broad
road, kept in order by armed Chinese police, was
being macadamized by a Japanese firm, which was also
metalling the main roads through Mukden, running north,
south, east and west. Passing along this road from the
station one sees a good many Japanese who, after leaving
Hsinmintun, are in increasing evidence. Mukden has
a fairly good wall, and outside again, enclosing a subur-
ban area, is the mud wall. Just before this is reached on the
road from the station, the flags of the German and United
States Consulates are to be seen. The former is in a fair
Chinese house, and the latter in an almost new, and fine,
building, which is the ancestral tablet hall of a wealthy
family. The Japanese possess the best Consulate build-
ings, having stepped into the former Russian quarters ;
the British Consul-General resides in one corner of a large
grain hong not far away, whilst the Russian Consul-General
is only somewhat poorly provided for in the semi-foreign
Chinese style of hotel, which like all the consulates
is in the western portion of the extra-mural city. In
connection with the acquisition of its consulate compound
I may remark that the Japanese were also in possession
of several former Chinese yamens and buildings that
were in forcible Russian occupation. As the Russians
had in many instances no title but that conferred by
force majeure, the Chinese were endeavouring to get the
return of these buildings and properties, to which they
seem to be undoubtedly entitled. The improvements
in the roads about the city are bringing many rickshas
on to the streets, and carriage traffic, other than the usual
North China carts, will doubtless make headway. The
police about seem fairly efficient ; drainage has been laid
in the streets, and the good work done by the Japanese,
in the matter of sinking wells to provide potable water,
264 SOUTHERN MANCHURIA
is being kept up by the Chinese, and has had an effect in
reducing sickness. The best street of Mukden, where the
better shops are, is Szepingkai, a combined Regent Street
and Lombard Street, for here also are the bankers, and in
their midst is the branch of the Yokohama Specie Bank.
The street, which is in fairly good order, runs between
the Bell Tower and Drum Tower, two picturesque erections
within the walled city. Brothels and gambling dens,
the latter generally kept by Japanese, the Chinese being
much better under control, seem to abound. Another
matter, of which better-class Japanese can scarcely feel
proud, is the fact that the number of Japanese prostitutes
in Manchuria has been officially given as 8,000.
Mukden, in common with a number of other cities and
towns in Manchuria, has been opened to foreign trade.
Having done this the Chinese immediately wanted to
make the privileges that apply to Treaty Ports only
operative to the Settlement areas which were to be marked
off. Goods going into the town would, of course, be
mulcted straight away for their first lekin payment.
The British contention now, as it ever has been, is that
it is the city or town in each case which is opened. The
device of opening a city on the proposed lines, whilst in
reality tending to keep it closed, is purely Chinese. It
seems absurd that the Chinese can hold out on the subject
of residence when the Japanese are residing and carrying
on trade all over Mukden. With the Treaty Ports the
Customs is being inaugurated. For this purpose the
large district of Manchuria has been divided into four
divisions : Antung-hsien and Tatungkau first district ;
Mukden, Liao-yang, Hsinmintun, Tieh-ling, and Faku-
men second; Kirin and Changchun (Kwang-cheng-tse)
third ; Harbin, Tsi-tsi-har, Suifenho and Manjuria fourth.
The Commissioners will doubtless have many points to
decide. In postal ways much is being done. Mr. Watson,
the Postal Commissioner, had to make arrangements for
opening 148 offices in Manchuria, of which, at the time
I was in Mukden, 48 had already commenced to operate.
APPOINTMENT OF VICEROY 265
The war naturally greatly disorganised the budding
postal service hi Manchuria.
In the middle of 1907 the Government of Man-
churia was reconstituted. There is now a Viceroy,
H.E. Hsu Shih-chang, and subordinate to him is a Gover-
nor for each of the three provinces. The best-known of
the latter was Tong Shao-yi, whose province was Fengtien
the most important having Mukden as its capital. The
appointment of a Viceroy was different to former custom.
In the past it has been usual to appoint a Tartar to the
post of Tartar-General of Manchuria. The last of such
appointees, H.E. Chao Erh-hsun, was, however, a Chinese
Bannerman, which appointment was in itself an inno-
vation. Now a pure Chinese is given the post. It is a
sign that times have changed, whilst the Court in this
instance freed itself from the allegation that for many
months it had bestowed all important posts almost
entirely on Manchus.
His Excellency Chao Erh-hsun, the last to hold the
post of Tartar-General, who was leaving Mukden shortly
after my visit, certainly left his mark on the Manchurian
capital a mark that would doubtless have broadened
to other parts of the country had his tenure of office been
of longer duration. He has done a great deal to improve
the roads of Mukden, has renovated many Government
buildings, including the Palace, was about to repair the
city walls and the guard-houses, has put down the
robbers, fostered education, and in many ways was
doing reaUy good work. His intention was to have
extended such works to other towns within bis jurisdic-
tion. He despised the waste of time that usually took
place over useless formalities. Consequently, he dis-
pensed with much of the formal etiquette that achieves
nothing. He notified the officials that he had no spare
time to waste on formalities of an aimless nature, and he
went about the city attended by a single outrider instead
of a hundred odd rascals, in variegated raiment, of ragtail
and bobtail nature, that accompany high Mandarins.
266 SOUTHERN MANCHURIA
Roads are one of the great wants of Manchuria. He had
made a commencement in this way, and had been desirous
of tackling the other pressing want of the country,
which is a decent currency system, in which the augment-
ing trade can be carried on. In Mukden you will find
Mexican, Hong Kong, Peiyang, Fengtien and Kirin
dollars ; War, Specie Bank, and Fengtien bank-notes ;
local cash, tael, and sycee notes. Hong Kong dollars
gave the best value, and were generally at a premium,
Peiyang and Mexican were on an equality, whilst the
others were at a discount, taking the Mexican as the
standard. Small silver coins have flooded the country,
though the Mukden (Arsenal) mint, like most other pro-
vincial mints, was closed. Certainly currency wants
putting in order. The general impression prevailing, I
found, was that if a well-known bank would issue notes,
payable in Mexican dollars, and be prepared always to
redeem them on demand at their full value in Mexicans,
that such currency would command a ready acceptance,
and be conferring a benefit.
As the theatre of the Russo-Japanese war, Manchuria
has had a great deal of attention drawn to it. At the
same time that its immense possibilities for trade were
pointed out great hopes of immediate and great forward
development, that have scarcely fructified, were enter-
tained. The principal goods coming into Mukden are
foreign yarn, kerosene oil, flour, and piece goods, which
come by way of Newchwang ; grain from the neighbouring
districts and from Hai Cheng and Kai Ping ; coal from
the Eastern hills ; native cloth from Shantung and Chili ;
native opium from the province of Kirin ; foreign opium
from Newchwang ; tobacco leaf from Kirin and Tieh-ling
and the surrounding districts ; and raw cotton, cotton
fabrics, sea products, papers, cigars, and cigarettes
from Japan and by way of Tairen.
Manchurian trade has improved, though all that was
anticipated when the war was concluded has not
eventuated. Japan has benefited, but she has certainly
PUSHING TRADE 267
not done so to the extent that one would have anticipated
with the opportunities she had. Two large well-known
Japanese firms had opened. There were plenty of petty
traders, contractors, barbers, storekeepers, but except in
numbers they did not bulk greatly. It may be that the
lack of capital accounts for part of this, but there were
not wanting those who attribute the fact that no more
had been achieved to lack of business capabilities. The
larger firms show these qualities often in a conspicuous
way, but the bulk hardly exhibit them to a degree that
brings an adequate reward for the blood and treasure
that have been expended. It is evident that the Japanese
have captured none of the Chinese trade hi Manchuria ;
Chinese are not to be beaten on their own ground any
more than they were to be ousted from the bean-cake
business at Newchwang to South China, into which trade
the Japanese essayed to enter, but had to relinquish the
attempt in a very few months. It is true that by means
of exhibitions at Mukden, Antung, and elsewhere, and by
advertising means, much has been done to push Japanese
goods ; but even here the Chinese threaten to go one
better at Mukden. So, too, with foreign merchants :
they can also have their share if they are willing to go
out and get it. It cannot be got solely from Shanghai,
or even Newchwang. As the American Consul-General
has pointed out, what is required is that firms established
at the port of importation should have a foreign repre-
sentative travelling in the interior, and native agents
at Liao-yang, Mukden, Kwang-cheng-tse, and similar
centres. The charge made against Japan that she
was not playing the game has not been brought home.
It has produced the Scotch verdict of not proven. The
Japanese now see that they are -likely to profit more
largely by offering inducement to foreigners to share
hi the trade. The more that is developed the greater
will be their portion. They have not the capital to ad-
vance the country, and without that capital the great
stake they have, as, for instance, their one great asset
268 SOUTHERN MANCHURIA
the railway, is not likely to be as profitable as it otherwise
would be to them. It will certainly be wiser in their own
material interest that foreign enterprise should be
welcomed.
This fact is fully recognised in many important quarters
hi Japan. A high official has pointed out that those
people who distrusted Japan's adhesion to the open door
policy, did not give the Japanese credit for common sense,
or for being clear-headed ; they knew that claims to
preferential rights in trade would alienate friendly nations,
and would give rise to complications ; and that, as Japan
could compete for the trade of China on favourable terms
without any preference, owing to her proximity, her
plentiful supply of cheap labour, and the advantage a
similar script conferred, they would rely upon their natural
and not upon artificial advantages.
A factor that the Japanese will have to surmount is the
undoubted want of goodwill of the Chinese, amounting
often to intense ill-will. China herself has exchanged the
non-commercial Muscovite for a nation rapidly rising in
the industrial world. But the Chinaman does not love
him for this. Japanese have earned no extra love from
the inhabitants of Manchuria from the way the lower
Japanese orders have behaved to the people. It is quite
usual that the best elements of any nation do not follow
in the footsteps of an army. Japan showed no exception.
These elements were not controlled by the military
authorities, who, till little more than a year ago, were
the powers that be. The actions of the lower classes
have been passed over ; land appropriated without
adequate payment ; buildings occupied or even taken ;
whilst Chinese ideas of propriety have been outraged by
the open and unblushing way the 8,000 courtesans ply
their trade in the country. The military have held none
of these things in check. It is not unusual, of course,
that conflict between military and civil authority is
constantly present when both are on the same ground.
With the military rule terminated, we may look for an
JAPANESE POPULATION 269
improved condition of affairs, and that the behaviour
of the lower orders will be better. The Civil authority
intends, if possible, to put a stop to abuses that have been
allowed to go on too long unchecked. It has been the
licence allowed lower class Japanese in their treatment
of the Chinese population that has led to much of the
bitterness of feeling that undoubtedly exists. The con-
dition of things, I must in justice remark, is much deplored
by many higher official Japanese.
Exclusive of the military, the present Japanese popula-
tion of Manchuria is about 30,000. A considerable
proportion are men engaged on the Manchurian railway
works. The line has been relaid to standard gauge.
When the Japanese first gained possession they merely
changed one line of rails to their own 3 ft. 6in. gauge
from the Russian 5 ft. gauge. As new locomotives and
rolling stock have arrived travelling is now comfortable.
The railway had an energetic official as its president.
Baron Goto, now the Minister of Communications in
Japan, had the reputation of being a good organizer
and administrator, and he worked hard in the company's
interest. Of the rest of the Japanese population there
are about 8,000 at Antung, and 5,000 at Yingkow. If
the mining fields along the Mukden- Antung light railway
(which in due course will also be converted to a standard,
gauge line to link up with the Korean lines) are developed,
further numbers will be attracted. Discussion has been
going on for a long time for jointly working such mines
with Chinese and Japanese capital.
On leaving Mukden for the south, the scene at the
station attracts attention. There are plenty of travellers,
and a long queue of passengers getting tickets is formed
a good half-hour before the train is due to start. The
country traversed is, of course, historically interesting,
but otherwise needs no particular description. You pass
the branch line for the Fushun coal mines, the Hun River
bridge, with the temporary wooden construction along-
side. The city of Liao-yang is the only big place passed
270 SOUTHERN MANCHURIA
on the way to Newchwang, but movement is evidently
growing at other centres. The buildings at the stations
are the Russian constructions, and where they were
damaged by the war they have been supplemented by
wooden structures. These are being put in order by the
company. At Liao-yang the battle named after it makes
the city historically interesting, especially as it was the
only battle practically won by the Russians, had the
Russian Intelligence Department only been alive to the
fact that it had been won. At Ta-shih-chiao I left the
train (which passed on for Tairen, and Port Arthur),
taking the branch to Yingkow (Newchwang). Manchuria
in general is bound to prosper with the soil and climate
it possesses. Permanent immigrants are coming in in
larger numbers, though it is difficult to get sufficient
farm hands at harvest time, because labourers are taking
up land for themselves. Isolated farmsteads are
becoming hamlets, and hamlets growing into villages.
On the other hand brigandage prospers ; a strong hand
seems to be needed around Harbin : taxation ought to be
lighter, especially in Fengtien ; but withal there is still
steady progress for a territory that may well become
a second Cana'da in wealth and prosperity.
Having made considerable strides ahead in recent years,
Newchwang had a slight halt called to it at the time of
my visit. It must be remembered that the port itself
is not a great consumer of imported goods, and depends
for its prosperity on its power as a distributing centre.
The Russian occupation, since Boxer days, and the
vicissitudes of the war, brought it a certain prosperity.
With the growth of railway communications trade has
grown, though the cart traffic in the winter, and the
boat traffic on the Liao in the summer, are still great
factors. The last few years have robbed Newchwang
of being the only inlet to Manchuria. It shares the trade
with Tairen (Dalny), Antung, Wladiwostock, Harbin,
and the North China Railway. Each is seeking to gain
its own share of the trade, but Newchwang has probably
DEVELOPMENTS AT NEWCHWANG, 271
felt the competition of Tairen most of all. Newchwang
need not, however, despair by any means. Its position
has been somewhat altered in regard to being the sole
inlet for Manchuria, but it is not eclipsed. In the trade
to come there will be room for both Newchwang and
Tairen as well as the other contributors. Newchwang
feels a little doubtful of itself, but its nervousness is
scarcely warranted.
The Russians did a little in the way of public works,
but the Japanese, during their occupation, expended a fair
sum for the amount they collected from Native Customs.
They started road construction, which makes locomotion
in the wet season less objectionable than formerly, though
I may remark there is yet room for improvement. There
are many new buildings, and the Yokohama Specie Bank
is following the lead of its Russian competitor by putting
up a building on what, strictly speaking, is public ground.
The old temple at the back of the Customs was turned
into a Japanese school, whilst the Russian concession
higher up the river has become a veritable Japanese
town. It is to be hoped that the railway station at
Niuchiatun, which is the terminus of the branch line
from Ta-shih-chiao on the main line, will also be brought
down nearer the foreign quarter. The other (North
China) railway, which has its terminus on the other side
of the river and below the settlement, has put on a ser-
viceable free ferry which is patronised liberally, whether
by travellers on the line or others. Material development
in other directions has also taken place.
A new feature in the foreign trade of the port, and one
that is likely to develop, -is that main line steamers are
now taking to call at Newchwang. Flour and timber
have been the commodities mostly imported, but with
direct trade facilities other articles bid fair to be added
to the list. Wharf accommodation is being more largely
provided. On the other hand, a danger threatens the
interests of the port from the behaviour of the River Liao.
The Customs Hydrographical Department has already
272 SOUTHERN MANCHURIA
been studying the question, and it is hoped will devise
measures to conserve the river.
One other matter may be referred to as having an
effect on Newchwang. With Dalny ice-free, Newchwang
has turned to Ching-wan-tao as a possible means of
assistance to itself in winter time. Practically it asks
for the same treatment in Customs matters as is accorded
to Tientsin goods shipped via Ching-wan-tao. One would
think that the Chinese would favour their own port as
against Tairen ; only Chinese are not always given to
seeing such matters promptly, even when their own
interests are affected. Roughly, what Newchwang
asked for was, that goods shipped, or transhipped,
from Treaty ports in China for Newchwang via Ching-
wan-tao, be treated by the Customs at port of shipment
as through cargo, and Customs through certificate
issued.
Time did not permit of my paying a visit to either of
the new Manchurian ports of Antung or Tatungkau. A
memorandum on the former port, drawn up by Mr. Geo.
L. Shaw, has been placed at my disposal. Antung was
opened by the new Chinese-American Commercial Treaty
of 1903, but the war between Japan and Russia following
before anything had been done to open trade, matters
were delayed. The Chinese, as usual, showed no alacrity
in furnishing the Customs staff to open the port, or
marked off a foreign settlement. It was not until May
1st, 1906, that foreigners could go to reside there, but
it was a year later before the Customs House was opened.
In the meantime the Chinese conceded the right to the
Japanese, or others, to import goods from Korea on a
reduced tariff amounting to two-thirds of the ordinary
tariff, as provided hi the case of land-borne goods
from Russia, or in Yunnan from either Burma or Tong-
King.
Antung is on the right, or Manchurian, bank of the
Yalu River, and has a Chinese population of about
25,000. The Japanese have a settlement where about
GROWTH OF ANTUNG 273
8,000 people have settled. There only remains a low-lying
piece of ground between the Chinese town and the
Japanese settlement available as an International
Settlement. This would have to be filled up to prevent
annual flooding. But there are other objections, the
ground being more or less a sewage swamp, that would
doubtless prove most unhealthy.
The Customs at this border town will have to maintain
a very large staff if they are to be successful in checking
petty smuggling. For many generations the Korean
and Chinese traders have been in the habit of crossing,
from one side of the river to the other, to trade, without
any interference from a Customs officer. It will be
exceedingly difficult to watch the entire river frontage,
and search each boat that crosses over from Korea, and
still more so to attend to each individual. It is during
the winter, when the river is frozen solid, and Chinese
and Koreans are able to cross at all times, that the
Customs of both Governments must be especially careful.
The terminus of the trunk line, running through the
entire length of the Korean peninsula, is opposite
Antung, and when the river is bridged the system will
be connected, after the Antung-Mukden line is widened
to the standard gauge. Post, telegraphs, and telephones
are in Japanese hands. The currency is nominally silver,
but coins above the value of c.50, excepting sycee shoes,
are not to be found. Currency badly needs to be put
in order. The Yokohama Specie Bank and the Dai Ichi
Ginko are established here.
As provided for in the agreement between Japan and
China of December 22nd, 1905, relating to Manchuria,
the Japanese have selected and acquired a site for their
exclusive use as a settlement. This settlement has
developed quite rapidly, and has been well laid out. In
two years about a thousand well-built Japanese houses
were erected, roads laid out, bridges built, and even trees
planted. A trench has been dug all round the settlement
to act as the main drain, and the earth excavated made
274 SOUTHERN MANCHURIA
use of for an embankment to protect the site from floods.
This is a very important and necessary piece of work, to
render the site habitable and healthy. A pumping station,
with a set of powerful pumps, has been provided to pump
the water when necessary. As this settlement is ex-
clusively for the use of the Japanese, subjects of other
Powers are not permitted to own land in it. A number of
Chinese have, however, built houses in the area, and there
is a special quarter for Chinese in this Japanese settlement.
There is no difficulty for foreigners to obtain both land
and houses from Japanese landlords at, of course, greatly
increased rates to those charged by the authorities in the
first instance. The site is certainly the best, and the
Japanese deserve every praise for the lavish expenditure
of money on the improvements mentioned. The buildings
are extremely well-built for Japanese houses, the shops
and bazaars are attractively arranged, and every attention
paid to Chinese ideas. Every shop attendant, whether
man, woman, or child, speaks Chinese, and a large per-
centage of the Chinese traders have picked up Japanese.
A large public school, for both Japanese and Chinese
boys, under the Japanese Municipality, was opened in
October, 1906. A public hospital, with the best and
latest equipment, was completed earlier in the year ;
the buildings of this institution cover half an acre, and
the compound is over five acres.
The Japanese military authorities, during their occu-
pation, granted to joint Japanese and Chinese corporations
exclusive rights for various public institutions, such as
the market-place, landing pier, trolley system, etc. It
is to be hoped that both the Japanese and Chinese
authorities will place these corporations under proper
control. With the establishment of the I.M. Customs
there will, no doubt, be' a public pier under their control
for landing and shipping cargo. It will not then be
necessary to land cargo on the present private Corporation's
pier, and pay them dues for doing so. There need not
be any objection to the market-place and slaughter-
SOUTH MANCHURIAN RAILWAY 275
house being in the Japanese settlement. All animals
(pigs principally) were sent at regular hours to the
slaughter-house in the Japanese settlement, for both
Japanese and Chinese consumption, and much praise is
due to the military authorities for enforcing excellent
sanitary arrangements.
The land purchased by the Japanese Government for
their railway terminus is a very large compound, pro-
vided it is all used for such. Beyond the boundary of
the railway company's property the river frontage has
also been bought by Japanese. The entire river frontage,
from the supposed boundary of the probable International
Settlement down stream for many miles, is under
Japanese control.
Reverting to Newchwang, whence I took my depar-
ture, I would note improvements are steadily in progress
on the South Manchurian Railway. They will, doubtless,
revolutionize the travelling on the line. Under the
arrangements a year ago, a moderately early start was
necessary when leaving the foreign quarter of Newchwang
for the station at Niuchiatun, three miles or so distant.
Here you get the branch line train to Ta-shih-chiao and
join the trunk line there. When it was narrow gauge it
took about 13 hours to do the distance to Tairen (Dalny),
and you had to take your food on the train. Dining
cars have now been added to the other improvements.
With a standard gauge line and up-to-date corridor
carriages the going is not bad. The country
traversed was fairly interesting, moderately broken,
and at times approaching picturesqueness. It becomes
more accidente as you get further south. You pass by
the historic battle-grounds of Wha-feng-kau, Telissu
and Nanshan, and the abandoned Lushang coal mine.
Just as dusk came, and the electric lights of Tairen were
illumined, at the close of a long summer's day, we reached
the station there.
It is well-known that the Russians expended many
millions of roubles on the construction of Dalny, but the
T 2
276 SOUTHERN MANCHURIA
task of forming the new city was still far from complete.
The position remains that it is a town in the course of
formation, and that in engineering parlance it has not
yet settled down to its bearings. The South Manchurian
Railway is the great factor ; it is the deus ex machind :
the fairy godmother to create and bestow all the good
things. Baron Goto, then president, was energetically
knocking the concern into shape, but it takes time and
money. To the company the whole of the old Russian
Administrative quarter of Dalny was handed over. A
needed want was a decent hotel, and a large building was
converted where foreign guests could be adequately pro-
vided for. Here, as in many other towns that the
Japanese captured during the war, one saw the light
narrow gauge railway all over the place. Japan abroad
is a great exponent of these light railways, even if the
streets are often incommoded as far as other traffic is
concerned. The roads are moderately good, but want
improving. The regulation for broad tyres on the wheels
of all cargo vehicles continues in force, and prevents the
roads being cut up by the narrow tyres of the North China
cart. There is one really good road out to Tiger Park
(so caUed because a tiger is kept in confinement there,
and is a great source of interest to all natives). The road
and the park were a legacy from Russian times. The
former rulers gave three parks to the town, of which
Tiger Park, on the outskirts of the present town, is the
largest. The market is extensive and kept in good sani-
tary order, which is one of Japan's specialities. The
Russians, like the Germans at Tsingtau, kept all the
Chinese in a separate district, and did not permit of their
promiscuous residence anywhere in the town. Japan
has somewhat modified the regulations, and permits a
certain number of Chinese to live within the town. It
obviates some of the inconveniences of the restrictive
method, but they have to conform to sanitary and other
regulations. Japan is generally carrying out the scheme
of roads and the plan of the town as laid out by Russia,
LIEUT. -GENERAL BARON OSH1MA, GOVERNOR-GENERAL OF
PORT ARTHUR.
[277]
TAIREN (DALNY) 277
the definite sections for particular purposes, such as
administrative quarter, residence quarter, etc., are, how-
ever, not strictly adhered to. The centre of the city with
its circular enclosure is being retained, though as yet
it is not built round. A good deal of money will be re-
quired to complete the scheme.
The figures of the population were given me as 10,000
Japanese, a like number of Chinese coolies, and 3,000
Chinese merchants and traders. I am sorry to say a
good many complaints are made as to the behaviour of the
lower class Japanese, regarding their treatment of the
Chinese. Any Chinaman who can make himself under-
stood to a European will go out of his way to tell you
what a bad man the Japanese is. The lower orders
here, as elsewhere in Manchuria, are responsible for this
widespread opinion.
At the present time one bank monopolises such
business in the place. This is the Yokohama Specie
Bank, which appropriated the half-completed structure
for the Russo-Chinese Bank. Presumably compensation
was made, as the building was the private property of
the bank. What is wanted is that more foreign firms
should establish themselves ; but the inducements held out
at present do not seem great. The lease question is one
stumbling block. Firms can scarcely be expected to
lease land and put up buildings when they are subject
to be turned out at a month's notice. The Japanese
Government wants to guard itself against the possibility
of future claims, but it can scarcely be expected that firms
will embark money on so precarious a holding as is offered
at present.
The residence of the Governor-General of the leased
territory of Kwan-tung (Eastern country), who is naturally
a military man, is at Port Arthur. It seems quite right
and proper that the Military Government should also be
at the same place, but there are considerable incon-
veniences attaching to the fact that the Civil Government
is also located at the fortress. One of the high officials
278 SOUTHERN MANCHURIA
resides at Tairen, but he has to make constant visits
to Port Arthur, a proceeding that involves the loss of at
least half a day. I may note that the Civil Government
of Kwan-tung costs at present 3, 500,000 yen a year, which
seems a fairly large sum (no military or naval expenses
are included in this amount) when we bear in mind that
Japanese official salaries are, as a rule, only of modest
dimensions. The revenue, consisting largely of the land
tax, is only small, and bears a slight percentage to the
expenses. It is hoped that a considerable source of
revenue may accrue from the manufacture of salt in the
leased territory.
The Russians had expended a good deal of money
on the creation of a harbour at Dalny. The works con-
stitute three sides of a parallelogram, having the north
side open to the bay (Ta-lien-wan). The south side,
having a length of 1,225 ft., is practically existing land,
whilst what is known as Head Wharf on the western side
is a pier 1,886 ft. long and 336 ft. wide. Along this are
railway lines, road, and good corrugated iron sheds.
The eastern wharf on the other side runs out for rather
more than half its length parallel to the Head wharf,
and then turns slightly outwards. The railway, road,
and sheds find accommodation also on this. Between
them and the southern base a large area of water is prac-
tically enclosed,and the total quay space provided amounts
to 6,540 ft. At the end of the Head Wharf there is
23 ft. of water at low water springs, the bulk of the rest
of the quay space providing 18 ft., whilst there would be
room also for two or three vessels drawing 20 ft. At
present the charges for storage are 2 sen per day for 6 sq.
ft. of ground in covered sheds, and 1 sen per day for like
space in the uncovered ground. The wharfage is 5 sen
per gross ton. The charge for putting general cargo over
a ship's side is 15 sen per ton, but in the case of heavy
goods there is a sliding scale, as follows : Heavy rails,
etc., under 1 ton, per ton, 0.30 yen ; heavy and bulky
cargo under 3 tons, per ton, 0.50 yen ; other rates on up
PORT ARTHUR 279
to 4 yen for cargo under 30 tons. These charges are for
cargo landed with " the ship's gear." The breakwater
outside is somewhat out of repair ; while certain of the
berths at the wharf itself are so exposed to the north and
north-west winds the prevailing winds of winter as
to render it necessary sometimes for ships to cast off
and anchor in the stream. The harbour is also to a certain
extent frozen during the severest part of winter, but the ice
scarcely forms a lasting obstruction to navigation. The
port contains one dry dock which also belongs to the
railway company. Its dimensions are : Extreme length,
422 ft. ; length, 381 ft., ; breadth at entrance, 42 ft. 11 in.
(at bottom) ; depth on sill at high water O.S.T., 19 ft. 9 in.
The docks have now been leased to the Kawasaki Dock-
yard Company, of Kobe.
It took some three hours by railway to reach Port
Arthur from Tairen, passing over much ground rendered
historical by the great siege. Port Arthur has many
good buildings erected during the Russian occupa-
tion. Climatically most of the Japanese said they
much preferred the port to Japan, whether in whiter or
summer. The large hotel in New Town has been con-
verted into the Civil Government buildings, the club is
now the residence of the Governor-General Baron Oshima,
the Russo-Chinese Bank has been converted to the uses
of the Yokohama Specie Bank, and the restaurant next
door becomes a Japanese hotel not very elaborate, it
must be admitted.
There is a fine park (Russian work) where we were
fortunate enough to be present at a garden party given
by Baron and Baroness Oshima. Some 600 guests were
present, including, perhaps, a dozen or so foreigners.
Many of the guests had been conveyed by special train
from Tairen. It was the first large entertainment given
by the Governor-General ; it was, in fact, a great social
event as well as a most successful entertainment.
Japanese wrestling and fencing were provided, and
bands and kiosks where Japanese cakes, sweets, syrup,
280 SOUTHERN MANCHURIA
soups, and other good things were dispensed, were
scattered about the grounds. A more solid repast in
the shape of a cold collation in foreign style was provided
in a large marquee, and here the Baron welcomed his
guests. At the close of the repast a procession, repre-
senting the different nations of the world, paraded between
the tables. Practically all the States of Europe and
America, as well as many Oriental nationalities, figured
in the "walk round," which caused great merriment. Some
represented ladies, and their " lash up," as a sailor would
term it, was certainly humorous. All in the masquerade
were members of the band, the idea having originated
with the bandmaster. Afterwards they went through, in
faultless style, the lancers and a quadrille in the grounds
to the music of their naval confreres. It provided great
amusement, as well it might, to the Japanese guests.
Port Arthur has altered little since it changed owner-
ship. Scaffolding on the half -completed houses remains
as it was when the siege ended. Some shell holes in
buildings were repaired, but many remain. The seaward
forts, which were scarcely touched in the war, have had
any necessary repairs done, but no reparations have taken
place to the great forts or works to the rear on the land-
ward side. Of business there is practically nothing. The
Japanese authorities do not permit it ; all is transferred
to Tairen. The imports, which amount to $100,000 a
month, consist practically of foodstuffs, and other stores
for the garrison. Exports consist of iron, copper, and
brass picked up by the industrious Chinaman from the
battlefields. The more gruesome export of bones
human bones, unfortunately which went on for some
time after the war, has ceased.
Practically nothing is being done to develop the naval
side of the port. Its restricted area, narrow entrance
channel, where many of the vessels sunk to block the
entrance during the war were yet to be seen, and the
proximity of Japan, with its fine dockyards and appli-
ances, rendering it of comparatively small convenience.
MILITARY MUSEUM, PORT ARTHUR 281
A great deal would have to be expended on dredging in
the west harbour to give more room, but at any time
the entrance is so restricted as to make the ingress or egress
of any considerable fleet a matter of much time and
anxiety. The dockyard remains to be effective for
certain repairs, and the dock was being taken in hand.
Before visiting the scenes of the desperate fighting
that took place around and about the forts that defended
Port Arthur on the landward side (for facilities for
seeing which, and for full explanations, I am much
indebted to my Japanese hosts), one is taken to see the
museum of the war at Port Arthur. It is not a very pre-
tentious building, but it serves to bring back a whole
flood of memories. In the grounds around are constructed
specimens of abbatis, wire entanglements, bomb-proofs,
shelters, trenches, and sandbags, besides a great col-
lection of damaged land and naval guns, some with their
muzzles shot away, shattered carriages and wreckage
of all and every class taken from the forts. Inside is a
collection of various arms, shell, and other ammunition,
colours, uniforms, and accoutrements of every description,
both Russian and Japanese. It will be borne in mind that
many of the trophies were removed to Tokyo, where they
are displayed in the Military Museum at the Kudan, in
the Shokonsha. Above all, two models each of the
Tung Kikwan Shan (East Cock's Comb Hill) and the
Er Lung Shan (Two Dragon Hill), will enable one to
get a grasp of the wreckage that was caused by the
explosion of the huge charges of dynamite, and the great
shells. They are the work of a corporal of Engineers. They
show the fort as constructed, with all the solid masonry
and other work, the wire entanglements, fosses and
obstacles, and the same works as they appeared when
captured, with all the trenches and saps made by the
Japanese. Excepting the removal of guns as trophies
(a few are left), and the cleaning up of the forts from a
sanitary point of view, they remain now as captured.
Small objects may yet be picked up as mementoes, even
282 SOUTHERN MANCHURIA
live hand grenades and miss-fire small shells, but it is
well to give some of these a wide berth. Broken bottles,
empty tins of various kinds of Russian preserves, bones,
portions of accoutrements, and other debris are also
to be seen.
It is an interesting drive out to the group of forts of
which the East Kikwan Shan was visited first. This
fort was taken on December 18th, 1905. It was here
that the heroic Kondrachenko was killed. This fort
had contained 47 guns of various sizes, but when captured
only 10 remained. The rest were blown away or buried
beneath the debris with many a gallant defender. The
next of the mighty ones to succumb was the Er Lung
Shan, which was exploded late on December 28th, and
occupied the next day. So Shu Shan was taken two
days later, and Bodai, or Commanding Hill, on December
31st.
A long drive out in a westerly direction next morning
brought us to 203 Metre Hill. A glance at a contour
map shows that this is the key to the whole defence,
and as you stand on its summit this comes home to you.
Attack after attack was made to gain one or other of the
two humps which, with a connecting saddle, form the
crest of the hill. With the possibilities that attached
to the advancing Baltic Fleet Admiral Togo asserted
it was absolutely necessary that this eminence should be
gained, so that the fleet sheltering in Port Arthur could
be disposed of. The attack began on November 26th,
and continued without intermission day and night until
December 6th, when possession was gained of one of the
two (the most westerly) humps. The total loss came
to the great number of 17,196, of which over 5,000
killed, 12,000 wounded, and 140 missing. The reward came
by December 8th that is, only two days later when
most of the warships in Port Arthur were sunk, and
all practically accounted for. It was only after ten days'
more fighting that the other hump was taken, but on the
first hump a shell-proof observatory was constructed
PORT ARTHUR BATTLEFIELDS 283
from whence the fire of the big guns stationed at the
rear was directed on the fleet.
From the spectacle still to be seen on this hill some of
the grim incidents and the intensity of the fighting
on both sides may be gathered. The rocks are pounded
to the size of road metal, and the whole ground is a mass
of stones. Not a blade of grass has yet appeared. The
massive trenches, many feet deep, and of solid construc-
tion, are simply shot away into the hill side. Here,
as at the other forts, what impresses one most is
the great silence in contrast to what the inferno must
have been during the intensity of the terrible struggle.
By contrast to what the scenes and sounds must have
been, through so many days and nights of carnage, the
quietness, and peacefulness, provide the greatest impres-
sion. The surrounding villages also show no signs of
the struggle, and Shui-shi-ying, where the preliminaries
of capitulation were carried out, and that had only one
or two undamaged houses left, is now built up and bears
no traces of the ravages of war. And yet the total loss
of life on the Japanese side in the operations had been
16,044 killed, 45,042 wounded, and 332 missing, a grand
total of 61,418 persons. This does not include the great
losses by sickness that were occasioned by beri-beri.
The total loss may be set probably hi round figures at
about 100,000 men.
The Japanese were greatly considerate of the remains
of their own and the Russian dead. Owing to the risk
and to the frozen state of the ground, as well as the
precipitate advance to the north for the battle of Mukden,
as soon as the fortress had fallen, the bodies were only
hastily interred, so as to prevent a pestilence. Men were
buried in groups near where they fell. General Oshima
gave orders for the fitting re-interment of the slain on
both sides. The Russians were buried in the old Russian
cemetery at Antu-shan, nearly 15,000 officers and men
being transferred thither. On the opposite side of the
stream the Japanese also received re-interment, and in
284 SOUTHERN MANCHURIA
either case a monument was erected to mark the spot.
This was formally consecrated in June of this year, 1908,
amongst those present at the ceremony being General
Nogi and Admiral Takikawa on behalf of Japan, and
General Gerngross and Admiral Matoussevitch repre-
senting Russia.
I could not help reflecting that in the seven years that
had transpired since I last travelled round the Gulf of
Pechili, and witnessed the commencement of Russian
doings at Port Arthur, it had at least ceased to be
the Black Sea of Asia.
o
H 65
03 W
o o
PART III. KOREA.
Projected Railway
Constructed .
Sketch Map of Korea, indicating Ports mentioned in text.
CHAPTER XV.
KOREA IN TRANSFORMATION.
Political Changes Three Phases : Chinese, Russo-Japanese, Japanese
Ascendancy of Japan The New Emperor Japanese Actions
Want of Trained Men as Subordinates Korean National Spirit Anti-
Japanese and Pro-Japanese Budget Difficulties Reorganisation of
the Finances Tax Collection Foundation of Warehouse Companies
Currency Changes.
KOREA, since its oyster-like shell was prized open by
foreign treaties some quarter of a century ago, has had
a strangely chequered existence. The country had brief
periods of comparative quiescence, the result of cir-
cumstances entirely uncontrolled by her own soi-distant
statesmen. It was not that the elements without, or a
purified government within, had brought about an
ameliorated condition to the distressed country and its
inhabitants. It was just one of those pauses that
necessarily occur a breathing space ere something more
pronounced was to be enacted. Without, the eagles
were gathering for another swoop ; within the Yangban
(the native official) continued his exactions. The
country itself is good, but the Yangban was its curse.
Since foreign treaties forced the peninsula into the arena,
if not exactly of world politics, at least into the forefront
of Far Eastern politics, Korea has gone through three
well-marked phases. The first saw a rivalry between
Japan and China for ascendancy in the little kingdom.
It belongs to the world of " ifs," but if China had then
boldly grappled the problem, if Li Hung-chang had dis-
played the statesmanship with which he was credited,
288 KOREA IN TRANSFORMATION
Korea could have been bound strongly to the Middle
Kingdom. A hot and cold policy was not, however,
suited to the requirements of the case, and alternate
avowals of suzerainty, or of entire disclaiming of responsi-
bility, naturally had the sequence of bringing Japan
more closely into affairs. The war with China in 1894-5
had as its corollary the installation of Japan on a stronger
basis, whilst Korea was declared, with emphasis, to be-
an independent country.
The next stage opens with the attacks of both Russia
and Japan on that purely independent position. Russia
had simply come on to the scenes, and, in a certain
way, took up the running at the point where circum-
stances had compelled that China should relinquish it.
This position gave Korea one little breathing space
I have alluded to, until, in the fulness of time, the
inevitable struggle between Japan and Russia again
brought Korea into the vortex. We have thus seen
China and Japan wrestling over the country, to be suc-
ceeded by the lutte between Russia and Japan, and now
we are face to face with the third phase, where the
peninsula kingdom has passed entirely under the Japanese
aegis, almost to the point of absorption of the country.
Korea itself has scarcely had the grit or the capacity to
control anything in its own destiny since the larger Powers
gathered around her. She showed some little disposition
to kick, and at last, like the worm, turned. But it was
an unfortunate and ill-advised turn that she made when
she appealed to the Hague Conference.
It will be unnecessary to recall the fiasco that took
place there, or to trouble to sift the statements and
disavowals that the incident called forth. Only the
results need comment. The Japanese Government,
under the new conditions that prevailed as a result of
the Portsmouth Treaty, could not well remain quiescent.
His ex-Majesty abdicated, and his son, the Crown Prince,
succeeded him as Emperor. The intention that his present
Majesty should be a puppet in Japanese hands is well-
JAPANESE CONTROL 289
known. As Crown Prince he was thought to be mentally
weak, and his countenance did not belie the statement.
Since his accession he seems to have displayed greater
capacity, but the reports as to his real condition seem to
be very contradictory. From many foreigners who are
brought into frequent contact with his Majesty, and
from Japanese similarly placed, one had the most
diametrically opposed views. If I am not overstepping
the laws of Use majeste, I should say that his Majesty is
not such a fool as he looks. I use the remark with all
becoming respect, and in doing so I am supported by
many foreigners and Japanese who take the same view.
It will be unnecessary to traverse the terms of the new
Japanese-Korean convention of July, 1907, further than
to state than by this document Japan secured the whole
substance of power in executive, judicial, and legislative
matters hi the peninsula. The control of foreign affairs
already pertained to her ; to the present Emperor re-
mains only the right of signing rescripts. The Emperor
remains de jure the ruler of the kingdom, but the de facto
power is the E/esident-General, or, in his absence, his
delegated authority to the Assistant Resident-General.
The third phase is completed, and though a technical
and formal distinction may exist between the control that
Japan has secured and formal annexation, the difference
only exists as a form of diplomacy. That she has an
entirely free hand, and that her last convention has not
been challenged in any way by any Power, will not lessen
the responsibility she has assumed hi the eyes of the
world. A contemporary comment on her action was that
if by a judicious mixture of firmness, of tact, and of
patience, Japan can persuade the masses of the Korean
people to acquiesce in her rule, she will have duplicated
the British achievement in Egypt, and she will have given
other States a lesson in the art of reconciling a dis-
contented nation to a foreign administration directed
for their good. There have been many critics who have
questioned Japan's sincerity in the matter. From my
290 KOREA IN TRANSFORMATION
own observations I do not question her intent, but her
first actions seem to have been wanting in tactful
method.
The disbandment of the Korean army was a natural
corollary to the Convention. No Korean army now
exists, but the method by which it was disbanded was
injudicious. It was not performed in that diplomatic
manner characteristic of Prince Ito, the Resident-General.
The Korean soldier may not have been an ardently
patriotic person, or greatly eager to risk his life for his
Emperor or country. But he has some feelings, and he
does not, in common with the rest of humanity, like to
be humiliated, or, to use the Oriental phrase, made to
" lose face." The men were disgraced by the manner
in which the disbandment was performed, and though
they were not illiberally treated in the matter of pay,
they were sent to their homes in great discontent, and
prepared even to use the time, and the money payment
placed at their disposal, in agitating against the Japanese.
Some got away with their arms, and were a source
of considerable trouble to the Japanese military and
police authorities. If the method employed had been
more gradual and Japan had little to fear from the
military point of view probably little or no trouble
would have been caused, and the Eui-pyong party would
have received less accession to its ranks. During my
visit these disbanded men were all about the country
spreading false rumours and fomenting trouble. Comic
and tragic often closely approach in Korea. The
Emperor signed the order for disbandment of his army
one day, and only a few days later appears in the uniform
of that same army which he had decreed should cease
to exist at his own coronation.
At the same time as the disbandment of the military
forces was being carried out, two other far-reaching
measures, affecting the whole population, were sought
to be enforced. The decree went forth against the top-
knot, and simultaneously against the prevailing custom
GOVERNMENT REFORMS 291
of marriages at a young age. These are two measures
vitally affecting every class in the country. Little
topknot cutting (the removal of the knot which a male
Korean erects when he enters the marriage state) has
been indulged in up to the present. The Japanese, it
will be remembered, altered their tonsure at the time
of the Restoration, and it is, I believe, a grounded belief
in Prince Ito, the Resident-General, that no real, thorough,
and drastic reform will be accomplished in Korea without
a change in the hair. It will be an outward symbol
of the new era. The Emperor has had his topknot re-
moved, but the people refuse to follow, as they aver it
was not his own voluntary act, but has been forced on him.
The Korean is likewise touched in a very close manner
by prohibiting early marriages an entirely right and
proper measure for the benefit of the country. The nation
must benefit by being reproduced at a more mature age ;
but of that he is supremely ignorant. His hatred for the
Japanese, which is of an intense order, is largely the
outcome of his ignorance. Added to this, the Govern-
ment, with which he has been cursed for so long, has
brought him and his country to the present state. The
ordinary Korean the man of the people is not a bad
man, and his virtues have deserved a better fate. It
is said that a people usually possesses the Government
that it is entitled to. In the case of Korea this does not
hold good ; the Korean really deserves a better Govern-
ment than fate has hitherto given him. Whether he
will receive it under the Japanese is a question that has
yet to be answered.
In the capital the Japanese are. in some sort of way,
under a limited restraint, for there is a fair sprinkling of
foreigners, including Consuls-General, to observe. In
the country they have a freer hand, and the few who can
bear testimony to their doings are not always in praise
of their acts. As far as I was enabled to observe, the
Resident-General and the upper officials amongst the
Japanese doubtless mean, and do act, well towards the
XT 2
292 KOREA IN TRANSFORMATION
charge that has been placed in their hands. But the
instruments through which they have to work are not
always of the best material. The result is that too little
trouble is taken to explain to the ignorant Korean official,
or ordinary man, the whys and wherefores of new orders
and regulations. The Japanese, and, may I say, the
moral improvement, side is not sufficiently reasoned into
them, and the petty Japanese official usually treats the
people as being on an entirely lower plane to the one in
which he and his countrymen move. More sympathetic
treatment would produce better results. The truth is
that Japanese do not like Korea, and are generally
only induced to go there by tempting offers of big pay
and big positions. Besides, the Japanese Government
at home, with the rapid advances that have taken place
in Japan itself, have really not a surplus of properly
trained men to spare from their own home service. Add
to this the fact that a good deal of jumping of land-
obtaining land by mortgage on really very easy terms
to Japanese has occurred, sometimes with the con-
nivance of dishonest Koreans themselves ; this has not
endeared him or his ways to the Korean. And to this
must still be added the old racial hatred of centuries that
cannot be eliminated in a day, and is indeed fanned by
every act that is either misunderstood, or that the Korean
does not see the necessity of. The fact is, the problem
is not an easy one, and might perhaps have been handled
in a different way ; but it is one that had to be taken in
hand by someone, for Korea showed not the least capacity
to grasp it herself. It is obvious from the actions of
Russia that she intended to be that someone, if the war
had not arrested her plans and turned the scale against
her. Japan had perforce to take the solution into her
own hand. That could only be the outcome of the war
when its arbitrament went in her favour, but I am in-
clined to think she might have dealt with the problem
somewhat more sympathetically for the plastic people
now placed under her. It is not necessary to imitate the
KOREAN NATIONAL SPIRIT 293
style adopted by some foreigners in recording their ob-
servations, or to think that Korea at present is worse off
that she was under her own native Government. Japan
is certainly working out an aggressive imperialism in
the peninsula, and she has left few stones unturned to
get a complete commercial and financial grip on the
country. I think that Bishop Turner, who knows the
country well, does not unfairly state the matter when he
writes : " As to whether they were justified in equity
in doing as they have done, everyone, I think, must feel
somewhat doubtful, and some people feel very strongly
that they had no justification whatever. But there are
many who feel that whether they were justified or not,
it was nevertheless absolutely necessary for them as a
matter of self-preservation that they should obtain
supreme power in the country, to prevent the Korean
Government from intriguing with countries hostile to
Japan in the future." This conclusion every political
student of the circumstances would unhesitatingly
endorse. Japan wanted, and still wants, Korea, and now
that Russia has been removed from the scenes, she has it
to herself for expansion of trade, and as a ready outlet
for her surplus population. The country is not over-
peopled, . and is capable of supporting a much greater
number of inhabitants than now find employment in
tilling its soil or developing its resources.
Amidst the changes that are proceeding within her
midst one sees some faint germs of the growth of a
national spirit amongst Koreans. It is a pity perhaps
that the perception has come a little late in the day
to save the country from the foreign invader. Strictly
Korean politics remain as much of a tangle, and as full
of intrigue as usual, curbed only by present limitations
on their political freedom. Some of those who have
penetrated the mists somewhat find it convenient to keep
out of the way. One or two apparently found it con-
genial to their health to live a sort of perdu existence at
a foreign-owned hotel in the capital. Another phase of
294 KOREA IN TRANSFORMATION
existing conditions is the change that has come over
many of the chief families. Gone are the family cliques
of the Mins, the Paks, and others whose machinations
against each other proved such fruitful sources of
intrigue, crime, and bloodshed. The ex-Emperor had
indeed done something to emancipate himself from such
baneful influences and constitute himself the head, by
splitting up the offices amongst several families instead
of being at the mercy of one. Now all are bereft of
power, to give place solely to the Japanese as the one
real factor.
Korea, by reason of too vexatious demands of official-
dom, was nearly always in the condition of incipient
trouble in some province or other of the kingdom. Riots
and uprisings against officials were about as chronic as
rebellion is in China. They usually meant that official
oppression had exceeded its usual bounds, and the re-
sultant rising took place. They were often fomented
by certain political family parties, or at times they merged
into two big political parties, such as the Independents
and the Pedlars, which existed a few years ago. The
counterpart in a way at present is supplied by two
organisations, one known to foreigners as the Volunteers,
the Eui Pyong, which I have mentioned above, that is
" agin the Government," and the other, the II Chon Hoi,
the party that favours the Japanese. Eui Pyong
translated, means righteous soldiers, or army, and the
character signifying it has the same significance as the
I-Ho-tuan. used by the Boxers in 1900 in China. The
party, if such it may be termed, comprises many elements,
including disbanded soldiers, demagogues, and disaffected
of all classes. It possessed some traces of organisation,
and it has given the Japanese a good deal of trouble. Of
the II Chon Hoi little need be said beyond the fact that
it favours Japanese occupation. Its doings are naturally
not of quite such an active order as those of the Eui
Pyong.
You cannot inaugurate reforms unless you have the
FINANCIAL REORGANISATION 295
necessary means, and one of the first measures undertaken
by the Japanese has been the reorganisation of the
finances of Korea. The reorganisation of the official
system cannot progress except yxm" passu with the
finances. The first measures were taken in 1904, and the
first budget to be drawn up on the new lines was for 1905.
Tt was necessarily a very faulty document. Revenue
sources were not on a sound basis, and the expenditure
was made in the most indiscriminative manner. The
actual amount of revenue and expenditure was unknown.
According to the latest budget the revenue was computed
at 10,000,000 yen, though it was known that at least
30,000,000 yen was gathered in from the people. If all
this came into the national treasury the conduct of the
Government would be simplified, and Japan would save
in her own pocket. About 200 Japanese finance officials
are now scattered throughout the country. This is about
as many as Japan can spare from her own requirements.
The difficulties to be first smoothed out began with the
fact that there was no distinction between the Court
and the Government, or between State and private
properties, and between the State property and that of
the Imperial Household. A State property became the
property of the Imperial Household and vice versa for
reasons that were generally obscure, and these exchanges
have proved difficult to solve. The next difficulty arose
in regard to the confusion respecting the currency ; and
a third was the lax method of expenditure and the lack
of organisation in the collection of the revenue. The
aim was to establish a fixed method of dealing with
the revenue and expenditure, to establish adequate
supervision over these items, and to devise means for
regulating the same ; to abolish the former evils of irregular
taxation and extortion, and the collection and expenditure
of the national revenue at the will of individuals ; also
to eliminate the injurious practice hitherto existing
hi Korea of farming out the collection of the revenue
to individuals. A vital point was naturally to reform
296 KOREA IN TRANSFORMATION
tax gathering, and prohibit illegitimate collection. Taxes
were hitherto imposed by the local magistrates on the one
hand, and by tax collectors irregularly despatched from
the Department of the Imperial Household, or from other
Central Offices, on the other. The taxation by local
magistrates was conducted by clerks whose services were
hereditary ; and many malpractices arose. As a
remedy for these ingrained bad habits, an adjustment
of the organisation for tax collection had to be planned.
In thirty-six important places throughout the country tax
assessors have been stationed, under the supervision of
taxation supervisors stationed in thirteen provinces.
Under the tax assessors there are many assistant tax
assessors, who are stationed in every district. Account-
ants have also been appointed to each department.
The most important factor of the national revenue is
the land tax, which amounts to almost 80 per cent, of
the total revenue. It is levied on the basis of a unit
represented by the area of ground estimated to produce
a fixed quantity of grain. The number of kyel in the
country is, however, based on investigations and surveys
made about 500 years ago, and although alterations
have been made at different times with regard to the num-
ber and classification of kyel, these changes have been
based on incorrect returns. There have doubtless been
considerable changes, owing to the bringing of new land
under cultivation, and to climate and other natural
causes, which have not been notified by the authorities
concerned, or, if notified, have not been taken into
account. Under these circumstances, the actual number
of kyel in the country is but approximately known. Of
other chief items of revenue the next in importance is
the port duties (customs duties), amounting to 23 per
cent, of the total income. The house tax comes next,
but its revenue does not exceed 3 per cent, of the total.
Revenue from other taxes is insignificant, either in detail
or total volume.
The basis of Government in Korea was, like that pre-
SYSTEM OF TAX COLLECTION 297
vailing in its great Continental neighbour, one of very
excellent maxims ; in practice it was lamentably bad.
As noted above, the local magistrates have been ac-
customed to act as if they were the supreme authorities,
conducting administrative affairs almost at their own
will. The Governors of Provinces and Provincial
Magistrates have been the most notorious offenders
with respect to illegitimate extortion. Their abuses
extended not only to the collection of taxes, but their
operations had a very deleterious effect on currency and
circulation of money. The magistrates, using the taxes
which they had collected for private purposes, would
lend money to the merchants within their jurisdiction,
or buy with it local products which they would sell^in
Soul or other cities, and would deliver to the Government
Treasury a portion of the money thus realised as the
tax money due. The taxes would be in their hands
to be thus used often for six months. The process,
called " wehueck," is as follows : When money was
deposited with the Finance Department, the Department
would give the depositor a tax receipt addressed to the
local magistrate of the place to which the depositor
desired to make a remittance. This receipt had the
effect of relieving the magistrate addressed from the
responsibility of delivering taxes to the amount of such
receipt. As the magistrate would necessarily buy the
receipt from the holder, the receipt would be to all intents
and purposes a bill of exchange issued by the Finance
Department. This system is now abolished ; but the
private use of funds by the local magistrates is as yet
overlooked, and it is intended to introduce a gradual
reform in this respect, in order to prevent a general dis-
location of capital. To assist in the movement, four
native Korean banks have come into being, whilst en-
couragement has also been given to certain Japanese
banks established in the country.
With the alteration in the system of tax collection, and
the abolition of the mentioned magisterial privilege of
298 KOREA IN TRANSFORMATION
lending out the money to merchants, this latter class were,
in consequence, restricted in their operations. Farmers
were unable to dispose of their produce to them. To
remedy this, warehouse departments were established in
important towns so that merchants could obtain funds to
carry on their operations. The security consists chiefly of
rice and other cereals ; but movables are sometimes taken
as security in case of necessity, according to the special
conditions in a particular district. In either case, it is
the object of the department, which was put in funds by
the central authority, to provide an ample supply of
money for the needs of the farmers, as well as for the
management of the business of the merchants. The latter
have been able to raise funds without difficulty, whilst
farmers have been benefited by the fact that the market
price of rice and other cereals has been maintained, or
rather advanced. The scheme may therefore be said
to be successful, whilst this Government undertaking
has more or less afforded facilities for the circulation
of the new currency. Following these provincial ware-
houses has been the foundation of the Soul Public
Warehouse Company, with a Government subsidy and a
Government loan. All of these institutions had, as well
as the improved currency, the effect of keeping prices
about normal, even in fairly active times. It may be
noted that Government undertakings, which more or
less involve expenditure of public funds, include such
works as the Imperial Korean Hospital, Cabinet Build-
ings, Prison, and the Industrial Training School. Other
matters comprised the Printing Bureau, Water Works,
Reconstruction of Roads of Chemulpo and Pyeng-yang,
and Forestry along the Yalu and Amur.
The completely and constantly disorganised state of
the currency in Korea has been the theme of many a
writing, and of innumerable Consular reports. The almost
insurmountable difficulty in carrying on foreign trade
by medium of the cumbersome cash has been gradually
mitigated, but all trading and financial arrangements
CURRENCY REFORM. 299
were still greatly hampered. Nor was the situation
really bettered when Soul started, not one but two.
mints, that turned out nickels of varying degrees of
fineness and value. Japanese banknotes and Japanese
national currency also came to assist, but what was
required was a proper and consistent treatment, so as
to provide for the needs of the country to carry on, in a
facile manner, internal wants and provide for foreign
trade. The Japanese commenced their task in 1901,
when they got the issue of an Imperial Edict placing the
currency of the country on a gold basis, and its coinage
on the same footing as that of Japan. It was not. how-
ever, until 1905 that another Edict appeared, putting
the decree of 1901 into force from the month of June
hi the latter year. At the same time the Dai-ichi Ginko,
a Japanese bank that had established considerable rela-
tions in the country, was made the Government Central
Treasury, and its notes recognised as legal tender in all
transactions, exchangeable at sight with the standard
coinage. Japanese coins were also recognised as legal
tender, so that the convertible notes of the Bank of Japan,
in which the Dai-ichi Ginko notes are payable, became
as it were the standard of the country. The work is pro-
gressing and assisting foreign trade ; indeed, it may be said
that the desired object is already achieved in great part,
though the old cumbersome cash still have a considerable
hold in some parts of the country. A large part of the
old Korean nickel coins has now been replaced with the
new currency. But old cash coinage held its own in the
eastern and southern districts, and very slowly yielded
to the new coinage. Merchants found it profitable to
buy up and export cash for the value of the metal, and
the Government depended on this method for the dispersal
of the old coinage. This proceeding was slow, so artificial
methods were inaugurated to dispose of the cash. Cash
may be better currency than nickel coins, because the
face value of the former represents their actual value,
while the latter have a great difference between their
300 KOREA IN TRANSFORMATION
face and actual values. But they hinder the development
of the economic conditions of the country, as they form
a most inconvenient medium of exchange. But at the
same time it was apprehended that a sudden and
artificial withdrawal would cause much harm to the
economic world, considering the very wide extent and
great amount of their circulation. Their withdrawal
was therefore made gradually.
Presumably, as in Japan, in time the attempt will be
made to support the currency by accumulation of bullion,
or coin.
CHAPTER XVI.
KOREA IN TRANSFORMATION (continued).
Roads in Soul The Residency-General Foreign Consulates-General
The Korean Chronically Hard-up Predilection for Loans Education
Railways Treaty Ports Agricultural Products Capabilities of
Soil and Climate.
IP it has not been your lot to visit Soul for an interval of
a few years, you will find that a considerable change has
been wrought on the face of things in the interval. Not
the least striking is the condition of the roads. This
good work was inaugurated under Sir J. McLeavy Brown,
the former chief of the Maritime Customs, whose name
should always remain associated with their improvement.
As in China, the Korean Customs Service, recruited from
the Chinese Imperial Maritime Customs, was the main-
spring of improvements in lighthouses, harbours, and
other directions, as far as money was available. Wheel
traffic is now possible to practically every part of the
city. Top boots to navigate the streets in the wet
season are no longer a necessity ; a road now is designed
for locomotion, and not as a drain and general receptacle
for all that was uncleanly. Even side paths to some
of the roads, and the planting of trees in public thorough-
fares, is being indulged in. An annual appropriation
has been made by the Finance Department for mainten-
ance and improvement, as the city has no municipal
revenue on which it can rely. I may repeat what has
been pointed out before, that, astounding as it may seem
when first stated, it remains a fact that the inhabitants
302 KOREA IN TRANSFORMATION
of Soul pay no taxes either Imperial or municipal
except indirectly in the shape of customs duties, paid
at the port of importation, on any foreign goods they
consume. More than a century ago, in gratitude for
services rendered, when the population stood by him
in time of some trouble, the then King redeemed their
taxes by making a big payment himself. This was to
free the residents for ever. But his ex-Majesty and
his officers knew how to get compensation, and a monopoly
to deal in this or that commodity would be sold, and the
people thus made to contribute indirectly.
On the site of the most recently erected palace in
the capital, that around which most of the foreign
Consulates-General (formerly the Legations) cluster,
the ex-Emperor had undertaken a big foreign style build-
ing, which the present Emperor now inhabits. It is an
imposing-looking structure externally, but lacks a
sufficiency of ground, and as it is unlikely that the
British Government or any of the other near-by
Consulates will surrender their properties, it will have
to remain under this disadvantage.
A striking feature to be noted is the growth and
apparent prosperity of the Japanese quarter. The
Resident-General has his abode in the former
Japanese Legation. His office and the headquarters
of the Residency-General, known as the Tokanfu, is on
an opposite eminence. It was on this spot, during the
invasion of Taiko Sama, that Kato Kyomasu (one of
his most famous lieutenants, and much renowned in
Japanese history) built his castle. No traces now remain
of the building erected at the close of the sixteenth
century, but the curious will note the fact that the
present seat of domination of Korea is the same as at
the historic period referred to. It is here that the
great reform scheme for Korea has to be worked out
by the Resident-General, Prince Ito. No better man,
or one so respected by the Koreans, could have been
chosen for the task. He is aided by Viscount Sone, as
THE CHANGING KOREAN 303
Assistant Resident-General, whilst other high officers
are the Director-General at the Residency, and three
directors of Departments. Through the lamented
assassination at San Francisco of the late Mr. D. W.
Stevens, Korea was deprived of one of the remaining two
foreigners concerned in her Government. The only
post now held by a foreigner is that of Secretary to the
Commissioner of Customs. The occupant is Mr.
Davidson, one of Sir J. McLeavy Brown's former
assistants.
With the change in the order of Government the
erstwhile Legations of the foreign Powers have become
Consulates-General. Incidentally, the Consuls-General
benefit from the buildings and the demesnes intended
for Ministers Plenipotentiary. This is all very well
where Governments provide the requisite amount for
maintenance, but in some cases the Home Governments
only grant on a certain scale according to the rank of
the occupant, and the proper upkeep then becomes
a matter of some difficulty. Withal, Soul has become,
in common with practically every other place in the
Far East, much more expensive. From coolies upwards
the native receives much higher pay, and the jinricksha
rates would be much appreciated by the far more hard-
working coolies in most China ports. As a Kurumaya
(the puller of the miniature carriage) the Korean
possesses the brawn, but he has not the speed of his
confrere in Japan.
A few words may here be said of the Korean himself
who, with all his ignorance and conservatism, is
naturally changing as his surroundings change. The
total population, according to the last Japanese census,
for 1907, gives a figure of 9,630,878 persons living in
2,322,457 houses. The bulk of these so far go on in much
the same groove as their forbears have done, for it takes
long to introduce the new leaven. In the capital and
in the Treaty Ports you may notice the transmogrification
that is in progress. The incongruities of dress and
304 KOREA IN TRANSFORMATION
tonsure may be seen in much the same degree as they
were to be witnessed in Japan thirty years ago. In
Korea it principally shows itself in the Korean native
costume terminating in a pair of foreign style boots
(tags generally hanging out) and black stockings. In
general, the Korean exhibits much the same character-
istics that have been observed in the past. He is
simple-minded and generally very good-natured. It is,
indeed, extraordinary how greatly he exhibits the latter
characteristic. He is docile and tractable when
treated properly, and seldom displays anti-foreign pro-
clivities. The Korean gentleman, as apart from the
lower classes, struck me as much the same, and is in himself
a study. His extreme composure, his mastery of self,
his often scholarly attainments, his dignity, his absolute
good-for-nothingness, or rather his unfitness for the
world he lives in, all combine to make him a mysterv.
At the same time you are bound to feel an interest in hi 1
and you have nothing but a kindly feeling for him, which
may be dispelled now some awakening is taking place
in the country. In the official arena the Korean is the
essence of corruption. To arrest the peculation of
funds and corruption generally, is one of the tasks that
Japan has taken in hand in the reorganisation of the
country. The Korean is in a chronically hard-up con-
dition, and spends his substance to the uttermost
farthing, or cash in his instance. He has a positive
predilection for taking a loan, and an entire disregard
of the concomitant obligation to repay at some day.
Even if he did not require it he would always accept
a loan. The ex-Emperor would realise on a mining
concession or a new monopoly when necessity compelled,
and his subjects in their ways would follow suit with
alacrity. The Japanese, prior to the present regime,
have taken great advantage of this characteristic, and
have as a consequence acquired a good deal of land on
easy terms a fact that has not endeared either the
Japanese or his ways to the Korean. It may have been
RAILWAYS IN KOREA 305
difficult for the Japanese Consuls to rectify the too
frequent abuses that occurred. The Korean was easy-
going ; he would borrow complacently without sometimes
being aware of the terms and conditions attaching to the
advance. When he found the land taken from him he
was naturally annoyed, but hid his ranklings, and
generally worked on the land for the behoof of the new
owner. With the system of Japanese Residents now
stationed throughout the country, it is to be hoped
that transfers of land to then* nationals will be more
closely examined into. A proper system of registration
of titles is to be inaugurated, and when titles come to be
registered it is hoped that the illegality, or at least harsh-
ness, of some transfers of late years will be rigorously
inquired into.
The lot of the Korean should improve as education
progresses. Young Korea is being tended in this direc-
tion in a way his father knew not. You see plenty
of youngsters about with slate and books, generally
cheery, bright little fellows. Then there are schools
where English, French, German, Russian, and Japanese
may be learned, each class having a master of each of
these nationalities. It is surprising how readily the
Korean learns a foreign language, and how accurately he
frequently masters the pronunciation.
On a previous visit to Korea there was only the short
line from Chemulpo to Soul to represent railway
progress in the country. Now a trunk line runs up and
down the peninsula from Wiju hi the north to Fusan in
the south ; there are some 600 odd miles of track laid.
The lines are the property of the Japanese Government,
which took over the Fusan-Soul line, the Kei-fu Railway,
as it is known, when it decided on nationalisation of the
railways in Japan. The line north of the capital was
constructed for military purposes during the war, when,
considering the speed at which it was done and the
pressing necessities of the case, a finished line could not
be attempted. It has since been improved, and a
306 KOREA IN TRANSFORMATION.
considerable sum is set down to be expended by the Japanese
during the next few years for the construction and im-
provement of railways in the country. The lines and
equipment cannot be put into a very high class, but
they doubtless meet the requirements of the case. They
constitute a great improvement on previous means of
locomotion.
Space will only permit of my taking a hurried glance
at the Treaty ports. Chemulpo continues to retain
its position as the principal port of the country. Its
shipping trade, as indeed may be said of all the ports
in Korea, is nearly a monopoly between the Nippon
Yusen Kaisha and the Osaka Shosen Kaisha. The
port has undergone considerable development, but more
is demanded to be done so that it can cope with its
necessities. Reclamation works are to be undertaken
in order to increase the Customs compound and the ware-
house accommodation.
Coming south and east, we have, after passing the
excellent strategic port of Masampo, the old Japanese
settlement at Fusan, which has increased its importance.
The settlement, over three centuries old, virtually con-
stitutes the port, though there is likewise a Chinese
settlement a mile away to the eastward, and the Korean
town two miles further on in the same direction. Fusan
looks like a Japanese town. The concession has its own
(Japanese) Municipality, of which the Resident (all
Consuls have now become Residents and Vice-Consuls
Assistant Residents) is ex-officio chairman, is excellently
well supplied by its own waterworks, and has schools,
post office, etc., to make up a species of small Japanese
republic. Within the district controlled by the Resident
the Japanese number over 17,000. They hail chiefly
from the Kyushiu and Shikoku districts of Japan. The
settlement has electric light and telephones. The most
striking building in the place is the construction
erected by the Chamber of Commerce, within which an
exhibition of products " made in Japan " was being held
TREATY PORTS 307
at the time of my visit. The railway between the capital
and Fusan has naturally been a factor in the develop-
ment of the port. There is a daily, or rather nightly,
service of steamers for mails and passengers to Moji.
Reclamation works are to be undertaken very shortly
to increase the facilities of the port. It is intended to
reclaim ground, 20,000 square metres in area, to the east-
ward, as a site for the Customs House, and to construct
a pier from the south-eastern extremity of this re-
clamation, thus forming a sheltered harbour between the
pier and the town of Fusan. When the work of reclama-
tion and the construction of the pier is completed, the
Customs offices, bonded warehouses, etc., will be built,
railway laid, and the road opened so as to give direct
communication with the Soul-Fusan Railway on the
one side and the town of Fusan on the other.
On the east coast the chief port is Gensan, previously
more familiarly known as Port Lazareff, situated within
Broughton Bay. There is a population of 5,000 to 6,000
Japanese, and in the adjacent Korean town 1,000
houses with a population of, say, 5,000 people. The
Chinese, who are all fairly responsible merchants, number
100, and there is a Chinese Consul, the only Consul
resident. in the port, though Russia proposes establishing
a Vice-Consulate. The place has grown during recent
years, and trade slowly increases. The town is clean
and sanitary, as most Japanese settlements are. It also
looks forward to a reclamation scheme and harbour works
to increase its facilities.
Another small place of trade on the north-east coast
is the prettily placed port of Songchin. If it was not
situated so far away it would make an ideal watering-
place. The Japanese Resident here has the whole of the
northern portion of the Ham Heung Province under his
jurisdiction, and there are 2,000 Japanese within this
area. Of these roughly 500 are in Songchin, and 1,000
at Kiongsan, a considerable trade mart to the north, the
balance being scattered about the province. The trade
v 2
308 KOREA IN TRANSFORMATION
of the port is not as yet very considerable, and I doubt
if it will for a long time assume any great importance.
It was interrupted during the Russo-Japanese War,
when the Russians descended overland, raided the place,
and set fire to most of the buildings. A considerable
cattle trade is done with Wladiwostock. The cattle
here, as is the case throughout the country, are fine
beasts and plentiful, selling at very low rates. Besides
being employed in agriculture, they are very extensively
used as beasts of burden, and also for draught purposes.
If the Japanese merchant and trader is to be found
everywhere pushing his wares, or largely controlling the
exports of the country, if Japanese banks and shipping
companies ably second these efforts, and if the foreigner,
including the Chinaman, finds himself pushed by their
energy, it may also be conceded that official Japan,
which is so much interested, has thoughts for the im-
proved condition of the country. The economic status
of Korea is based on agriculture, her principal product
being grain. There is much rich farming land throughout
the country, where rice and other cereals are abundantly
produced. Koreans are averse to the introduction of
improved methods, and do not practise the intelligent
employment of irrigation and manures in farming. They
have nevertheless been able to export grain to a consider-
able amount every year, thanks to the favourable agri-
cultural conditions with which Nature has endowed
the country. The population of Korea is not large in
proportion to cultivable area. When land becomes
unproductive they are able to find new fertile areas for
cultivation. This may be one of the reasons why
Korean agricultural products do not decrease in spite
of the primitive and conservative agricultural methods
of the Koreans. The provinces of Chyol-la and Kyang-
syang are the best cultivated, the next being Hoang-hai,
Chyung-Chyong, and Kyong-geui Provinces. In look-
ing to profitable revenues for Korea, one would certainly
suggest that the raising of cattle should be increased,
:O
KOREAN PRODUCTIONS 309
as it seems certain to yield a good return. What is
wanted to promote greater trade is for Korea to
develop her exports. Through the foreign gold-mining
operations, the export of that precious metal should
increase. So far, it is only the American mine that
has shown profitable results. British, German, and
Japanese concessions also exist, but so far have not been
productive, though the properties are believed to be
good. All these concessions are held under the old
rules, which are much more favourable to concessionaires
than the new mining regulations. Ginseng should like-
wise be capable of development, and would probably
find an increased outlet in China. In other directions
one might also indicate silk culture and the manufacture
of mats. There is a good demand for the latter, but the
supply is small. They are exquisitely fine, of good design,
and likely to be much appreciated. Another product
that should prove profitable is fruit. Many varieties
of European and American fruits could be raised, the
climate and soil being quite suitable. A source of con-
siderable wealth should be the fisheries around the
Korean coasts. When fully developed, these should
prove one of the most valuable assets of the country.
At the present time the number of Japanese fishing boats
on the coast is 2,000, employing 8,000 fishermen. The
annual value of their catches is 3,000,000 yen. A good
deal has been said on the subject of cotton cultivation.
Japan is intimately concerned in this, and has done her
best to foster the produce which should be to the best
interests of Korea.
If further exports could be developed, there would
seem to be little doubt that the value received for the
produce would be expended in buying imports, for the
Korean likes foreign goods, and has a fairly keen desire
to be the possessor of a certain quantity of them. Means
of transport will also have to be improved. The railways
are already making their influence felt, but they only
serve certain parts of the country. The movement of
310 KOREA IN TRANSFORMATION
goods is still largely dependent on pack animals cattle
or ponies. The former are really fine animals and well
shapen, their load being 400 Ibs. ; the ponies, though
miserable, under-sized, and ill-fed, are nevertheless
capable of doing much work, their load being 240 Ibs.
In discussing the possibilities of trade extension in Korea,
one must not overlook the fact that the country has
for ages been self-sustaining, and this applies even to
provinces, owing to the cost of transport. Indolence,
fostered by bad government and venal officials, has
been engendered. The Korean works only for a tithe
of his time. He had no outlet for any surplus produce,
and it would probably have been filched from him by a
greedy official had he grown over his immediate require-
ments. The incentive to be enterprising or provident
was wholly lacking. Even in the face of famine the
Korean would often prefer to squat and smoke till his
tobacco was done, when he would lie down and die rather
than bestir himself. The natural result of all this was to
keep the country poor, and not up to its capacities in the
way of either production or trade. This inertia, fostered
by generations of misrule, has to be overcome before the
economic status of the country can rise to what the soil
and climate are capable of producing.
PART IV. JAPAN.
Sketch Map of Japan, showing the Ports mentioned in Section IV.
CHAPTER XVII.
JAPAN FINANCIAL, COMMERCIAL, INDUSTRIAL.
Post-bellum Measures Foreign Loans Taxation Reduction in Expen-
diture Service Charges Nationalisation of Railways Their Progress
Anglo-Japanese Alliance Criticisms in the Far East Japanese
Gains from the same Japanese Emigration Settlement of Question
with United States and Canada Japan's Trade Commercial Morality
The Foreign Merchant His Outlook Shipping Labour Need of
Industrial Training Increased Cost of Living Improved Physique.
JAPANESE finance is a subject to which criticism is always
being directed ; it so frequently recurs, that it may well
be treated first in any remarks on Japan. Detractors
have hitherto found themselves worsted, for the nation
has pulled itself through on several occasions when it
seemed to be in rather a tight corner. For 1907-8, with
some economies, with the necessity becoming apparent to,
as the Americans put it, " wear your old shoes," Japan
won through. She greatly assisted her own finances
as soon as the war was over by a rapid repatriation of
the troops in Manchuria. This brought about consider-
able economy as against the previous estimates. Nor
is there any reason to anticipate difficulties that will not
be overcome for the current (1908-9) financial year. It
would be in 1909 that the financial withers of the country
would be wrung, unless very stringent measures were
adopted. These have been put in hand. A cardinal
principle laid down when Marquis Matsukata was Minister
of Finance was that financial undertakings must proceed,
in order to be permanently effective, hand in hand with
the country's economic development. Other Finance
314 JAPAN ECONOMICAL
Ministers have carried out the same policy. Each was
careful to endeavour to foster the resources of the
country, so that the economical condition would be
capable of bearing the additional taxation that perforce
had to be imposed. It was considered that the true
policy of post-bellum financial measures after the China
War, as has been so laid down again, after the war with
Russia, should consist not only of rearrangement of
the national finance, but also that the measures taken
should be such that the growth of the country's wealth
might keep pace with the necessarily increased ex-
penditure.
Taxation has gone up very rapidly in Japan during
the last decade. There can be no relief when the
requirements of 1909 have to be formulated. It is
necessary to meet only the normal requirements, not those
for extraordinary purposes. For the latter resort might
be had to foreign loans if the expenditure was for
reproductive purposes. But a foreign loan is not assured
at a paying price. The investor is a curious personage,
and will only assist what seems to be the fashionable
borrower for the moment. In 1899 we saw the loan then
issued taken for the most part by the underwriters. The
glamour of Japan's achievements in the war with Russia
revived ardour for Japanese stocks, this time not only
on the London market, but on the Continent and in
America. Successive issues were greatly in favour,
and were readily taken. But the fashion changed as
much as did the conditions of the money market. The
second part of the conversion loan could not be issued
at the 4 per cent, rate at 90, at which the first half had
been successfully done in 1906. The rate was raised
in 1907 to 5 per cent., and the issue price to 99|. The
next issue for the Manchurian Railway was practically a
Government borrowing, as the Government guaranteed
it had to bear the same interest rate, but the price
dropped to 97. It was a mildly comparative success.
But it was a warning that the public was not ready to
TAXATION 315
take more Japanese issues. By-and-by, doubtless, they
will be in favour again. There is nothing in the financial
situation to prevent issues being subscribed to when,
as I have said, the country has gone through the necessary
period of economy.
One often hears it asserted that Japan is overtaxed.
From all I could learn, the population does and can bear
existing taxation without an undue strain being placed
on the people. But its incidence is not quite equal,
and the agriculturist is let off cheaper than his
neighbours in the industrial and commercial worlds.
It is a difficult matter to get land taxation it is really
rent in Japan, as the Government is the one landlord
of the country altered if the alteration is by way of
increase in the rate. A majority of any Diet is against
such increase. A few years on, when the foreign treaties
are due for revision, it may be that the tariff will yield
some increase, but this would supply only a portion of
the needs. I am aware of some of the difficulties that
surround an increase of the land tax, but I have not heard
one person announce that the agriculturist could not bear
the increased rent without any great strain. He has
been having excellent years lately in the way of rice
harvests, the great product of the land.
It was the troubles attaching to finance that
brought about the downfall of the recent Saionji Cabinet.
A rearrangement was attempted earlier in the year,
when the Ministers of Finance and Communications
left their colleagues, the Mikado refusing to accept the
resignation of the Cabinet as a whole. Succeeding this
in the spring, came the General Election, which went
entirely in favour of the Saionji Cabinet, and the
Seiyukai, whose head was the Marquis Saionji. Not-
withstanding this, the summer showed that the Cabinet
had lost confidence, or rather, that no confidence was
felt in it by the commercial and financial sections of the
nation. Resignation was again tendered, and, being
accepted, made way for the return of the Katsura
316 JAPAN ECONOMICAL
Cabinet. It is constituted of many of the politicians
and statesmen who conducted affairs during the
momentous struggle with Russia, though some new blood
has also been introduced ; notably Baron Goto, President
of the South Manchurian Railway, becomes Minister of
Communications, a very important portfolio from the
time the policy of nationalisation of the railways was
passed by the Diet. He is known as a good organiser
and administrator. That the subject of finance is critical
to any Cabinet in Japan at present is evidenced by the
fact that apparently no one could be found to take up
the task with any chance of securing confidence. Con-
sequently the post has been assumed by the Premier
himself. It is a tribute to his talents, and the opinion
formed of his judgment, that this solution seems to have
given satisfaction. That he has a real grasp of the question,
and can carry his colleagues, is evidenced by one of his
earliest measures. An important Cabinet Council held
at the end of August decided to curtail expenditure to
the extent of 20,000,000. The Army Estimates are
reduced by 30 per cent., and the Navy by 10 per cent.
Thus has been accomplished what the Saionji Cabinet
could not persuade the Ministers for War and the Navy
was not only necessary, but could be carried out without
danger to the nation. They sought to show that the
vastly increased armaments were not needed to the
extent demanded. Japan had to repair the ravages of
the war, and increase somewhat as the result of her new
position, but that as she had the Alliance, had arranged
ententes with France, and even with her late enemy, Russia,
it was unnecessary to proceed to the lengths demanded
by the militant members of the Cabinet.
Critics of Japanese Government finance have
pointed to the great cost of the army and navy, and pre-
dicted a breakdown. The figures are now to be reduced,
but even before then some misconception was generally
prevalent on the matter. Taking the estimates for
1907-8, the ordinary and extraordinary army expenditure
RAILWAY NATIONALISATION 317
was 111,600,000 yen, and for the navy to 82,500,000 yen,
the total being, say, about 20,000,000, an amount that
is not excessive, viewing Japan's achievements and the
position she had necessarily to maintain. Such sums
must be comparative to the ability of a nation to carry
them, and in proportion to what her national income
may be. The ordinary expenditure was a little over
20 per cent, of the revenue for these non-productive
expenditures. The proportion of total expenditure
was something under 20 per cent, (of Service expenditures)
to gross total estimated ordinary and extraordinary
revenue. It does not seem to me in either case that the
proportion is at all excessive when we compare such ex-
penditures in relation to total revenues exhibited in
Western nations. The point of view should be the
capacity of the nation to bear the total taxation im-
posed on it. If the country can sustain that taxation,
which I maintain Japan can do, then the expenditures
for the combatant forces are no more extravagant than
the allocations for similar purposes usual in the West.
Finally, one may point out the disappointment felt
in the country that after what are considered enormous
sacrifices during the war period, the tension is still
maintained. Taxes have been augmented after the war,
and the prospect is that they will be added to rather
than reduced. Still the subject is being heroically treated.
A criticism that would not be unjust would be that a
somewhat unnecessary strain is being placed on the
shoulders of the nation by the attempt to pay off the whole
of the War debt within so comparatively short a time
as thirty years.
One of the most debated subjects of recent times has
been the nationalisation of the railways. When the
Government has completed taking over all the lines it
will own 6,411 miles of railway, the capital cost of which
has been 411,560,000 yen, about 42,000,000. The
amount of the public loan to be issued for the purchase of
the 4,500 miles of private railways is calculated at not
318 JAPAN ECONOMICAL
less than 421,000,000 yen (43,135,246), and it is in-
tended to redeem this loan by means of the net profit
accruing from the purchased railways. The entire loan
will, it is computed, be redeemed within thirty-two years
after the purchase of the railways, and the annual profit
from the lines, after the complete redemption of the loan,
is estimated at over 53,000,000 yen (5,430,328). The
whole policy of buying out the railroads has met, and
still continues to meet, with a good deal of opposition
in many quarters. A grievance that the public feels
and gives expression to its views from time to time
is the non-issue of the bonds for the purchase of the lines
as they are taken over. Japan, in the summer and
autumn of 1907, was passing through a financial crisis,
or rather a Stock Exchange gamble, which induced
financial trouble. It is alleged that the non-issue of
these bonds has aggravated the situation. The shares
of the various railways are recognised as negotiable
securities by the Bank of Japan, but the bank will not
advance money against them on the application of an
individual. It will only do so when the shares come
through the hands of other banks, and as the latter
will not lend more than 60 or 70 per cent, of the market
price of the scrip, the holder did not get all he desired
on his collateral. The Japanese Government, we know,
has always displayed a very fatherly interest in all such
matters, and endeavours to lead or guide the public. The
bonds have not been issued, and were thus not available
for sale in the slump through which the share market
passed. Had they existed, it seems reasonable to believe
that they would have been extensively thrown overboard
by speculators, as the tendency in financial crises is for
holders of such stocks to throw them overboard, to enable
them to hold on to industrials and other shares that are
only saleable at certain (good) times. Many people are
doubtless quite correct in their belief they have been
held back to prevent a certain amount of discredit
attaching to them if the price fell at the inception of their
PROGRESS IN RAILWAY RECEIPTS 319
issue. The bonds are 5 per cent, securities, issued at par.
The purchase has to be completed within ten years,
between 1906 (when the measure was carried through
the Diet) and 1915, so that the Government cannot be
compelled to issue the bonds instanter. From the time
of purchase it pays the 5 per cent, that the bonds carry.
It may be noted here that the purchase price is an amount
equal to twenty times the sum obtained by multiplying
the cost of construction at the date of the purchase by
the average profit, to the cost of construction during
the term from the second half of 1902 to the first half of
1905 ; also the actual cost of stores at current prices.
Generally speaking, the purchase prices have proved
to be higher than the original calculation. On the
other hand, the profits have exceeded estimates. Ac-
cording to the 1908 issue of that excellent compendium,
the Financial and Economic Annual of Japan, published
by the Department of Finance, the number of passengers
carried rose from 104,000,000 in 1904-5 to 125,000,000
in 1906-7 ; and the volume of goods traffic rose from
19,000,000 tons in 1904-5 to 24,000,000 tons in 1906-7.
In' the financial year 1906-7 the profit was 16,687,452
yen (1,709,780), as against the estimate of 15,481,547
yen (1,586,224), and in the year 1907-8 the actual
receipts will exceed the estimated amount, which is
31,312,880 yen (3,208,287) ; so that the profit from
the purchased railways will be more than sufficient to
pay the interest. The railway profit for the financial
year 1908-9 is estimated at 37,054,470 yen (3,796,565),
of which that expected from the purchased railways is
put at 24,831,075 yen (2,544,168), and, as the total
amount of interest payable on the purchase prices and
debentures taken over from the companies is 24,043,146
yen (2,463,437), there will be after the interest is paid,
a surplus of 787,929 yen (80,730).
In glancing at political matters in Japan, one's
thoughts naturally turn first to the question of the
Anglo-Japanese Alliance. A very short time after you
320 JAPAN ECONOMICAL
are east of Suez you will unmistakably have it brought
to your attention that the spectacles used to view it
are not those usually employed in the West. You will
have it constantly placed before you that the alliance
is entirely one-sided, and that Great Britain has obtained
very little return for appending her signature to the
renewed contract, beyond the right to lend money to
Japan a right that was shared during the war, when
profits were to be had out of making loans, by both
France and the United States. You will hardly gather
a word in its favour all the way from Singapore to
Yokohama, and you will get many condemnations of the
policy, and the alliance. People generally did not look
at what was on the other side, though there was another
side ; even if it was less tangible to them than the com-
petition. The constant dripping of water has an effect
on the stone, and one's belief in the alliance held with
a much stronger faith in the West than in the East was
shaken to a certain extent. It was certainly not
strengthened when a Cabinet Minister in Tokyo remarked
to you that people at home did not seem to believe in the
alliance in the same way that they had done only a year
before. Confidence in the alliance under all attacks may
have led to doubts, and to more introspection as to its
present and possible consequences, looked at as a one-
sided affair, and that affair the British side. Had we
gained anything from it beyond the ability to save a
certain amount of money per annum by withdrawing
the battleships from the China Station, and concentrating
them nearer home, where the cost of maintenance was
less a move that some people considered mistaken
policy ? It seems to me that the matter cannot be
summed up in such quantities. The two main facts, as
far as British policy and British trade were concerned,
are that it has kept China from disruption that it has
left that country open to the trade of all nations ; the
British trader asks no more than a fair field for competi-
tion without any favours. Secondly, it has undoubtedly
JAPAN AND CHINESE TRADE 321
rehabilitated British prestige in the Far East, that
is, in China. It is difficult often to persuade people
of the value of prestige. Yet, if you cannot set it down
hi figures and add it up, it remains there just the
same.
It is true that China is open to the insistently
clamouring advances of Japan, to get as much as possible
of that trade into her own hands. Many will say that
Japan holds all the cards in this competition ; that
subsidies are given lavishly to steamers, that officials
foster and encourage traders, and that traders are over-
running the whole country. Each of these things is
perfectly true, but in the competition you cannot prevent
two things that must always be hi favour of Japan. The
one is geographical proximity, and the other is the ad-
vantage conferred by the use of the same script as the
Chinese. Alliance or no alliance, you cannot take either
of these factors away. They are valuable considerations,
but they are very far from being the Alpha and Omega
of success in the China trade. The Westerner is not to
be ousted simply by these two indisputable facts. He
has an accumulation of other factors that are not yet hi
the possession of Japan, and cannot be for a long time
to come. With capital, backed by several generations
of experience, he has some advantage, but he possesses
a greater one in the constant mechanical advances that
take place in the West in the manufacture of goods, and
in the improvement of machinery. If for a time he is
out of a market in China by reason of cheaper Japanese
productions, he is not out of the market of supply of the
machinery that enables Japan for the moment to do
better than he can. My own view, begotten of that
confidence which has brought British merchants and
British manufacturers to the estate they enjoy, is that
Japanese competition, severe though it may be, will only
be maintained by Japan if Japan herself can keep up
with the procession. It seems to me that both politically
and commercially Japan has now a harder task before
322 JAPAN ECONOMICAL
her in the years to come than she has had since the Meiji
era commenced. Nations, like individuals, are not
allowed by nature to assume a fixed position. You must
move ahead or astern according to your talents.
Japan has now come to the standard, and it rests with
her which way she moves. My own idea is that she will
and must move ahead, but having attained the standard
that places her beside the great nations of the world,
she will find that to create for her own necessities in the
future is more difficult than to come up to the require-
ments for such a position.
Japan has known how to play to the gallery in the
past, and none has used the privilege more skilfully. She
has always possessed this art, and never did it more
effectually than during her great war with Russia. That
role will have to be relinquished now, or, rather, is she
strong enough to relinquish it and act according to her
own achievements ? The task either way is a difficult
one, and the future is as interesting to the onlooker as
at any time since she launched the barque of state on the
new course. She has come to a parting of the ways, and
she has to adjust her future policy to conditions that
may be much the same, but that will have to be treated
differently.
Count Hayashi, the ex-Minister for Foreign Affairs,
recently commented on the change that is felt towards
Japan, and expressed his surprise at the suspicion pre-
vailing abroad concerning the alleged military expansion
and aggressive policy of Japan, due to " astonishing
ignorance of the real conditions in Japan." The hundred
and one things attributed to Japan would only be possible
if Japan were many times more powerful in every sense
of the word. Alike in the political, the militant, and the
commercial worlds, Japan has been credited with far
more than is possible for her attainment. The British
attitude towards Japan is defined. Politically and
militarily we are allied ; but that alliance will not prevent
the keenest commercial rivalry in the great neighbouring
JAPANESE EMIGRATION 323
Empire of China. Some writers have pointed out that
it is we who need awakening as much as the great mass
of China. The degree may be different, but the
necessity as great.
Since Japan completed her international arrangements
with the French and Russian ententes, there remained
only one political question, viz., that concerning the
emigration of Japanese to the shores of America,
whether to Canada or California. The matter has
caused a good deal of race feeling, and newspaper comment
has fanned the flame. The difficulties of the question
are recognised as much in Japan as they are anywhere.
Japan herself claims the right, and has only very recently
acted upon that right, to exclude Chinese labourers from
her own country. What she performs herself at home
she cannot, and does not, deny to other countries ; what
she objects to is the discrimination against her nationals,
and national dignity upholds her in this attitude. She
very naturally desires to save her face, and that face
can be saved by adopting some such measures as she her-
self imposes to restrict Chinese immigration to her own
territory. Her regulations are to oppose Chinese coming
in, but their application is alike to Chinese, Indians,
Australians, Europeans, and all and sundry. Specific
legislation is not passed, and she asks for the same
treatment.
Japan has not disputed, nor does she now dispute, the
right of any State to restrict immigration that it considers
undesirable. She has herself prevented the matter
becoming acute in regard to the United States and
Canada. She has undertaken practically to suppress
emigration. With the hold she has secured in
Manchuria and Korea, where there is ample room for
millions more people, and with her own undeveloped
territory in Hokkaido, there should be no real pressure
of surplus population if it is properly directed. She can,
and does, control the destinies and movements of her
people, just as she controls public opinion and political
324 JAPAN ECONOMICAL
movements. She has thus the means, and has employed
it. In justice to her it should be pointed out at the same
time that the numbers on the Pacific Coast, whether in
the United States or in Canada, are not excessive ; that
many employers of labour prefer them as more steady
workers, who stand to their rights but seldom give trouble.
The agitation and hostile feeling may be traced almost
entirely to professional labour agitators.
It will be unnecessary to go into statistics of trade
figures to show how the foreign trade of Japan has greatly
developed of recent years. That trade must increase.
Moreover, with the completion of the Panama Canal
not only will an impetus be given to Japan's direct trade
with South America, but it will open new markets for
her merchandise on the West Coast of Africa, so far
afield does Japan now cast her eyes. Again, the ex-
ploitation of the resources of their respective countries
through the extension of railways in the interior of China
and Korea will improve Japan's trade more rapidly than
ever. A comparison of the volume of the trade carried
on with the different continents at the present time and
a decade since, will show that the export trade has in-
creased five-fold with Asia, and a little more than two-
fold with America and Europe, while the rate of increase
in the import trade has been 3.7-fold with Asia, 5.3-fold
with America, and about four-fold with Europe. It
will thus be seen that the trade has increased more with
Asia and America than with Europe. Japan's com-
mercial interests are largely extending southward through
China, westward through Korea and Manchuria, and
northward to Siberia and Saghalien.
Nature has been bountiful to Japan for the last few
seasons, and given her splendid harvests, which have
greatly assisted the economic condition of the country.
Moreover, when bounteous crops fill the farmers'
pockets they are much more generous in their purchases
of silk, and less of that commodity is proportionately
available for export abroad, though with the increase
JAPANESE COMMERCIAL WAYS 325
in production, export figures increase. The cultivator
may spend some portion on foreign imported luxuries,
but the bulk will be in native silk for himself and family*
In connection with commerce another phase must
be pointed out. The Japanese as a nation are still com-
paratively young at foreign commerce, though they
have developed rapidly along this line, as they have in
other spheres of life. They have greatly improved through
their able commercial schools and technical education, but
they have not yet acquired by long habit and experience
the truth that has been borne into the Chinese, that
in commercial affairs " Honesty is the best policy,"
and that in the long run it is certainly more profitable
to adhere to the maxim. There must be still something
wanting in the moral way when defaulting M.P.'s, dis-
honest municipalities, bankruptcies, etc., are looked
on as being only " accidents " ; unfortunate, perhaps,
but no one seems shocked. The Japanese themselves
are aware of their want, and deplore the slow growth
of commercial morality among the Japanese nation as
a whole. It is pointed out that those who built up
Japan politically must also bear in their minds the
necessity for creating a nation that is fit to move
about among the advanced Powers of the world.
Neither have the Japanese as a nation there are always
exceptions to prove the rule any pronounced gifts of
foresight in commercial affairs. They have admirably
displayed the quality in political and militant matters,
but in the world of trade and commerce they are, as a
Japanese pointed out to me, too eager for immediate
results. Everyone hopes and everyone tries in industrial
and commercial ways to achieve success as rapidly as
possible, but in many ways it is necessary to exercise
the patience that is customary in the Orient, and that
the Japanese so well display in other ways.
A magazine article, by the Bishop of South Tokyo,
dealing with this subject, truly points out that what is
lacking is an elementary idea of a contract as a thing
326 JAPAN ECONOMICAL
binding under all conditions according to the exact tenor
of its words. The Japanese in general have so little
idea of this that, over-sensitive as they are on many
pouits of honour, they, except the few who understand
the Western mind, are hardly sensitive at all on this.
You may call a man a liar, or you may put a clause in a
contract binding him not to wriggle out of the meaning
of its terms by quibbles or legal technicalities without
insulting him, and he will remain your friend ; but if
you struck him he would, in old days, have killed either
you in revenge or himself in shame, and he will feel it as
keenly now.
He goes on to say : " The Japanese fail miserably
in the matter of keeping their word in contracts, and
in foreign trade at least precise words precisely kept are
necessary. Yet, strange as it may seem, this very
failure of the Japanese is closely connected with the
fact that until international trade came in to demoralise
their dealings, the element of consideration for the other
party was never absent from their contracts. It was
not even expressed. It was always assumed."
Another point that the Bishop calls attention to is
a lasting characteristic which stands in the way of their
becoming a commercial nation with whom it will be
satisfactory to deal. This is, that a man is very little
honoured for his riches, and that the better classes dislike
having to do with trade ; so that, in fact, until the nation
has learned to include, as we are apt to do, a good deal
more of covetousness in their moral ideal " they are
likely to be better allies in danger than partners in
commerce."
In the commercial development that has occurred,
Yokohama, Kobe, and Osaka still retain their place.
Yokohama has been doing better the last year or two
as against Kobe, which came on so rapidly and threatened
to overlap Yokohama by reason of its greater area of
hinterland. Though trade has greatly developed, Japan's
commercial centre of gravity has not, so far, shifted.
THE FOREIGN MERCHANT IN JAPAN 327
The three ports above mentioned, though not geographi-
cally in closest proximity to the regions where the
greatest increase has taken place, still deal with, roughly,
seven-eighths of the country's exports. That the course
of events is infusing new life and activity into the ex-
tremities of the Empire is, however, indicated by the rise
in the value of exports from all other ports of Japan.
And how does the foreign merchant fare hi all this ?
Direct trade continues to increase, though unless manu-
facturers want to open direct relations, and have their
own representative as some indeed do it is safer
to act through the foreign agent on the spot. Most
foreigners locally are alive to the fact that an increasing
volume and proportion of the foreign trade must fall
into Japanese hands. On the Japanese side there is,
I imagine, a certain amount of race feeling in the matter.
There is deep down the latent conviction that foreign help
is proof of national incompetence, and that the nation
remains under a certain species of disgrace in the eyes
of the commercial world, so long as its import and export
trade is managed by aliens. Many Japanese firms are
now, and have for many years been, free of foreign guid-
ance and of the foreign middleman. But the foreigner
may confidently anticipate that, with a continuance of
his own energies, he will be able to secure such portion
of the total volume as will still render his sojourn in the
country of some utility to himself. The volume
through foreign hands at least increases, though it may
not bear quite the same proportion as formerly. Japan
seeks to restrict her imports from foreign countries. She
has a high statutory tariff that will doubtless be increased
rather than diminished. Revenue, of course, is her
first object, but the tariff is likewise designedly protective.
She wants to reduce her purchases, and, at the same time
become, not alone her own supplier, but to fill the
neighbouring markets and get even farther afield. It
seems to me that whilst she pursues this course, she must
also be a good buyer of machinery and appliances
328 JAPAN ECONOMICAL
necessary to her as a manufacturer. For all high-class
producing machinery she has to apply to foreign markets,
and as the production of this machinery does not exactly
stop still, but is constantly being improved, Japan, to
maintain her own position, will have to be a constant
purchaser. If she is not, she runs the risk of losing
her own manufacturing power. She could by tariff keep
her own market closed, perhaps, but she forfeits the neutral
markets, where she looks for her greatest trade. My own
view is that she must continuously increase her
purchases in this way, and that the foreign merchant
will have a good field for himself in the supply of such
material.
In her designs to further the trade of the country, the
Government has bestowed much attention on the de-
velopment of shipping. She had need also of the
transport facilities furnished by a large mercantile fleet
in the wars with China and Russia. The fleets have
continued to progress, fostered by the subsidies conferred
by the Government. A certain number of foreign officers
are still employed in the foreign trade routes, but it is
not for the reason that once existed that Japanese were
not considered capable of navigating the vessels and
attending to the engines but because the supply of duly
qualified seafaring men is not sufficient for the services.
As time goes on, the place of the foreign officer is being
taken by Japanese, as they become trained. As has
already happened in many other directions, the Japanese
is getting rid of his educator and assuming the task
himself. Forty years ago Japan scarcely possessed a
seagoing vessel, and a decade later her marine was of
very modest dimensions. Now she not only has many
coasting vessels, but she has appeared as a competitor
in the carrying trade on many of the world's oceans.
She not only handles a victorious Navy, but she con-
structs vessels in her own yards that plough the waters
of many seas. In the considerable growth of the
tonnage under the Japanese flag, the Nippon Yusen
FOREIGN CAPITAL DESIRED 329
Kaisha (Japan Mail Steamship Company) has borne a
very great share. It is not only the largest steamship
company in Japan, but it is also one of the largest in the
world. In point of tonnage it is only exceeded in a very
few instances. Another company that has done much
in the way of local communications and services to
Korea, China, and Formosa, is the Osaka Shosen Kaisha,
whilst the Toyo Kisen Kaisha is keeping abreast of the
times by acquiring three vessels of 13,500 tons each,
fitted with triple turbine engines for its service across the
Pacific. Nothing is more remarkable, it may be noted,
amongst recent shipping developments, than the increase
of this trade across the Pacific, with its mammoth vessels.
The number of steamers in this trans-Pacific trade has
greatly increased, and many flags are participating in it.
When the construction of the Panama Canal is com-
pleted, the growth must likewise continue. Japan
collaterally benefits from the trade, apart from her own
direct interest in it, as most of these vessels touch at one
or more of her ports.
The desire of Japan to curtail as much as possible
her purchases abroad is tempered by a desire to get
foreign capitalists into the country to develop Japan's
latent natural resources and industries. There is little
doubt that if the disposition is to allow foreigners to
enter really as partners into such industries, and reap
the profits from them, if profits there be, instead of
merely being loaners of capital for a certain stipulated
rate of interest, that there should be many openings
where advantages can be mutually conferred. With
due precautions it should be possible for associations
to be formed, but the numbers and classes of such
ventures cannot be unlimited.
Already we have Armstrong and Vickers co-operating
in two big enterprises with Japanese. Many others are
under discussion, and some well on the way towards
settlement. It is conceivable that such an association
of Japanese and foreigners may be the means of allaying
330 JAPAN ECONOMICAL
national jealousies, if the profits that are expected to
accrue from exploiting China are divided.
Those who were then conversant with Japan will
remember when the new Treaties came into force in
1899 there were great hopes for the introduction of foreign
capital ; keen regrets were felt at the little that was
introduced in the near succeeding years. The only
money that came in was by Government loans issued
abroad. Then slowly a railway company here and a
municipal government there for water works or harbour
works got off an issue ; but the demand was still for
more capital. The old cry, begotten in its day largely
of fear that if foreigners were allowed free access to the
country they would swamp the native element, gave
way to the expression of disappointment that foreigners
and their capital had not come, and that they showed
very little disposition to do so. It must be distinctly
understood that a foreigner's chances of success are no
better to-day than they were before, if he essays, under
economic conditions, which seem to present the most
roseate of prospects, to enter into any industry himself,
or with foreigners only as partners. It will only be in
partnership or association with Japanese that he will
reap any reward. In such cases the terms must be
mutual. The ground, perhaps the raw material, and
part of the capital would be supplied by Japanese,
whilst the foreigners' share would be to provide the rest
of the capital, the expert knowledge, and in many cases
the necessary foremen for the proper running of the
factory.
In short, the prospect is that in co-operation and not
in competition are the best opportunities to be
sought. Such a consortium will receive benefits when,
in 1911, Japan will have regained her fiscal autonomy,
and her manufacturers will get protection in their home
markets.
There are other factors that must, however, be kept
steadily in view. It is said that Japanese labour is cheap.
WANT OF INDUSTRIAL TRAINING 331
So it is, possibly (even at the rates now prevalent,
which have been continually on the upward scale) when
compared with the rates prevalent in Europe or
America. Still it is getting dearer, when the lowest class
of labour in the capital men digging ditches or
drains receive c.50 or c.60 a day (Is. to Is. 3d.). Such
rates do not prevail in the country. When efficiency and
volume of output are compared we get on to very
debateable ground. I have seen men in engineering
shops doing very good work indeed, equivalent to home
work, but when it came to volume of output I could not
get any very clear answers. The Government un-
doubtedly, in its dockyards and arsenals, obtains the best
and most skilled labour in the country', and is probably
better served all round than any company or factory.
Some labour employers, men competent to form an
opinion on such questions, have given it as their opinion
that it was proximity of market rather than actually
cheaper production which had assisted certain Japanese
industries. The Japanese artisan, mechanic, or coolie
now lives on a much higher standard than his father
was brought up on. He is not, however, up to the
standard of the European or American workman in his
labour. He has necessarily to demand higher wages
for his new standard, and as increasing industries absorbed
the labour supply he received them. He is also better
educated than the previous generation, and his accom-
modation is superior. Economically speaking, if a man
is better educated, fed, and housed, his labour product
should also be of a higher order. But in this connection
it is certainly evident that to progress, Japan will have
to pay greater attention to the higher education of her
craftsmen. What has been done in the higher com-
mercial world and that is now bearing fruit will have
to be done for the worker in the industrial field. Japan
suffers from a lack of trained foremen and workmen,
men indentured to their trade and who reach a certain
recognised minimum of efficiency in that trade. At
332 JAPAN ECONOMICAL
present anyone is taken, and if he is shortly discharged
from his position as being inefficient he simply walks
into another factory or works, where his incompetence
may result in another discharge,or perchance he is tolerated
because there is no one better to be had. If the industrial
future of Japan is to reach its highest development,
this question of the training of workmen and artisans
for particular trades must be seriously taken in hand
by the Government, which usually fathers and mothers
all these things in Japan. Again, machinery and ap-
pliances are seldom kept as one usually sees them in
Europe. The work may be turned out, but it is not
cheap in the end if such valuable material is not
efficiently handled. There is a certain slackness about,
and if Japan is to keep abreast of European standards,
and, above all, of the constant developments taking
place in Europe, it will only be by paying proper attention
to this matter.
Mr. Crowe, the British Commercial Attache in Japan,
in the course of a recent report, has called attention to
the fact that the nation is gradually developing more
luxurious tastes, and though this is perhaps a good sign
in one way, it shows that there can be only a small
margin, if any, left over after the operative has paid for
his daily expenses. The result of this will be that wages
will gradually have to be increased, and that in time
one of Japan's chief advantages (the other being cheap
coal) will disappear. It is often remarked that
Japanese work for extraordinarily long hours. This is
true, the average time being ten hours per diem, not
including the time set apart for meals. It is doubtful,
however, whether the actual amount of work performed
during these long hours surpasses what the British
workman can do in a shorter time.
Togo's men showed the world, as Nelson's men had
proved a century before, that ships and guns are one thing,
but that the supreme factor is the human who manoeuvres
the one, and is behind the other. So it is in the factory.
COST OF LIVING 333
It is not only the machinery and the capital employed,
but it is the man or woman that stands to tend the
machine that capital provides which constitutes the real
factor. He or she will have to be legislated for, if Japan
is to attain the end aimed at industrially. The whole
system wants reforming. The factories are often quite
up to standard, but the hours worked, even allowing that
the method of work is not so intense as, say, in Great
Britain, the boarding conditions and often the food are
not calculated to produce good workers ; again, in the
case of women and girls, now so largely employed in
cotton mills, unless the present conditions are altered
the next generation will inevitably have to suffer.
With labour appreciating in price it is necessary that its
quality should also improve.
In respect of the greatly increased cost of living in
Japan Dr. Ourakami has furnished the Economiste
frangaise with a comparison of the monthly cost of
maintenance of a family of four in 1887, 1897, and 1906.
It is clearly shown that the cost of living has nearly
doubled since 1897, and almost trebled during the last
twenty years. For instance, the monthly rent of a suite
of three rooms is represented as 2.50 yen in 1887, 4.50 yen
ten years, later, and 7 yen in 1906. Rice, which cost the
family 2.77 yen in 1887, cost 3.30 yen in 1897, and in
1906 it involved an outlay of 7.20 yen. Other com-
modities have increased in much the same way, not
allowing for any increase in the standard of living which
has likewise advanced. The total cost of the family
maintenance rose from 14.20 yen a month in 1887 to
22.03 ten years later, and to as much as 33.77 yen in 1906.
It is not only these costs that have augmented for
Japanese. The foreigner feels it in quite as aggravated
a form, if indeed he does not really suffer more, as many
articles of food and dress have been greatly appreciated
by tariff changes. The advance in most things in Japan
is also having the effect in another way of driving summer
visitors from China ports to places like Tsingtau, Pei-tai-
334 JAPAN ECONOMICAL
ho, and Chefoo, rather than to Japan, because of the extra
cost. It will not be long before it will also have its effect
on the tourist class. Japan, apart from the attractions
of the country and the people, was also moderate to live
and move about in. Now the cost greatly exceeds what
you can achieve in Switzerland, the Black Forest, and
many districts in France.
Where the increased cost of living to Japanese is due
to a higher standard of life, of diet, and housing, the
nation is, of course, benefiting. It is assuredly increasing
its general physique. The more liberal diet, the lessened
amount of squatting about the floors, the more erect
position assumed by using chairs or forms at school,
and the more general extent of exercise are having their
results. Fitness and physique were tried before Port
Arthur, and on the rolling plains and hills of Manchuria.
It is not only in the Services that exercise is carried
on. Everywhere you may now see recreative sports
being indulged in : baseball, football, lawn tennis,
gymnasium. Sea-bathing in the summer is likewise
popular to a degree before unknown. The open-air
personal participation in games is doing much good in
improving the physique, and producing a nation some-
what taller than their fathers and grandfathers.
CHAPTER XVIII.
THROUGH JAPAN.
Nagasaki The Dockyard Wakamatsu Steelworks Kobe Its
Harbour Scheme Osaka Yokohama Tokyo The Ginza Hibiya
Park Mental and Moral Changes Patriotism Japanese Charac-
teristics.
COMING from China, my route naturally brought me
first in contact with the original port of Japan's exterior
commerce. At Nagasaki the even tenor of the way
seems to be pursued. I do not infer that it is humdrum,
but it has not caught quite the fever that one sees dis-
played in varying degrees at Moji, Kobe, and Osaka,
or Yokohama and Tokyo. Had Nagasaki possessed,
or had it created, other industries than the single one
it can boast of, it might have secured more of this world's
good things, though it will doubtless maintain its trade
in marine products to China and Korea. The one bright
spot is the Mitsu Bishi Dockyard and Engine Works,
whose sphere of usefulness and development proceed apace.
Originally founded by the late Iwasaki Yataro, these
works have been added to and improved from time to
time. When I saw the yard in 1900 its large dock No. 3
was only projected. Completed now it is some 700 ft., with
an entrance width of 100 ft., and a depth on the sill of
SO^ft. For some time it was the largest dock hi the Far
East, but now its dimensions have been slightly exceeded
by the new Butterfield & Swire dock at Hong Kong,
and equalled by the new Admiralty dock in the same
colony. Electric drive has been completed, proving of
336 THROUGH JAPAN
great use and advantage, besides concentrating power in
one house. Two turbine shops have been erected, fitted
with every modern appliance in the way of tool equip-
ment. The building of new erecting and fitting shops
and the extension of the boiler shop have also been taken
in hand. The existing shear legs of 100 tons capacity
are to be replaced by a hammer head crane of 150 tons
capacity. Tsingtau, which has the like crane, will then
have to share honours with its neighbour across the China
Sea, in the possession of the largest crane in the Far
East. Either crane is, I believe, unsurpassed in capacity
in the world. When I saw the yard in the autumn
of 1907 the considerable total of 116,000 tons of shipping
was contracted for. In addition, the company was
to construct a big floating dock to lift 15,000 tons
for use at its works at Kobe, where it at present has a 7,000
ton floating dock. Another development at the yard is
the construction of an experimental tank 430 ft. long,
20 ft. broad, and 12 ft. deep. The models experimented
with for questions of speed curves, resistances of certain
forms, etc., are made of paraffin wax. The equipment
for the tank was ordered from a Glasgow firm. It may
be noted that the three principal private shipyards in
the country are the Mitsu Bishi Dockyard and Engine
Works, with a branch at Kobe ; the Kawasaki Dockyard
Company, at Kobe ; and the Osaka Ironworks, at Osaka.
There are besides the Uraga Dockyard Company, at
Uraga, in Tokyo Bay, the Yokohama Ironworks, and the
Ishikawajima Shipbuilding Company, at Tokyo. In
various other parts of the country there are over 200
private shipyards. Most of them are engaged only on
small craft, in many cases of junk build and rig. The
Government dockyards are four in number, situated at
Yokosuka (Tokyo Bay), Kure (Inland Sea), Sasebo
(south-west coast in Kiushiu), and Maizuru (West
Coast). New construction is principally carried out at
the first two.
Quitting Nagasaki, my route was by sea to Kobe via
WAKAMATSU STEELWORKS 337
the Straits of Shimonoseki. Not far from the Straits
are the Imperial Steel Works at Wakamatsu. The career
of these works has been somewhat chequered, but they
have steadily plodded on, and success now seems to be
theirs. Lloyd's surveyor at Nagasaki has attended tests
of the steel manufactured at the works. It is desired to
have the product placed on " Lloyd's list of approved
manufacturers of steel to be used in class vessels." These
tests were completed by the end of 1907, and the works
have, I believe, been able to achieve the desired standard.
The entrance to Wakamatsu Harbour is very narrow,
opening to a basin about a mile across at its widest part.
This basin, again, opens to a large lagoon some ten miles
in circumference. It is on the eastern side of this lagoon
that the Imperial Steel Works stand. The area of the
works is about 330 acres, including some 82 acres recently
purchased for enlargement. The position was chosen
largely on account of its proximity to the Chikuho coal-
fields, the most extensive coal-producing district at present
in Japan. The ore used in the furnaces is hematite, with
some magnetite and limonite. About 80 per cent, of
this ore comes from the Tayeh mines, near Hankow, in
China, under special contract with the Han-yang Iron-
works, owners of the mines. Under present conditions
the works are able to turn out about 90,000 tons of
finished material a year. The original plans were for an
annual output of 60,000 tons, but the increase of Govern-
ment requirements necessitated a sensible extension of
the original programme. In the course of the next five
years it is confidently expected that the annual output
will amount to 180,000 tons, i.e., double the present
output. The Imperial Navy Department takes most
of the products, the remainder being purchased by the
War and Railway Departments. Nearly all the materials
for the building of ships of war are now turned out at the
works ; armour-plate has not, however, yet been
made. The great military, naval, and industrial ex-
pansion of Japan is calling for an immense quantity of
338 THROUGH JAPAN
iron. So far as the present developments indicate, it
is impossible to provide sufficient ore from the mines of
Japan and Korea to meet the expanding wants of the
country. The consumption, against the small production
in Japan, shows the dependence of the country upon
foreign imports of raw and manufactured iron products.
The harbour approach to Kobe affords evidence that
the renewed commercial activity of the last decade still
continues. Anchored in the bay you may see every
description of craft from the Pacific liner downwards.
A glance ashore shows the handsome and conspicuous
building of the Hong Kong and Shanghai Bank, situated
on the bund, and a few lots away the big new building
of the Oriental Hotel. No vacant plots on the erstwhile
foreign settlement, and more houses on the hill tell then*
tale. Mention must also be made of the great success
that has attended the establishment of Rokkosan, a hill
resort six miles away. It makes quite a respectable
little colony to itself, and it boasts of one of the most
elevated golf courses, and at the same time one of the
most sporting, in the world. Many a jaded Kobeite,
and others from farther afield, will ever add their tribute
to the founder of Rokkosan. Kobe is now very deeply
in earnest as regards its harbour scheme. A year before
my visit the Minister of Finance and the municipal
authorities, on the occasion of the announcement of
Government participation in the scheme, decided that
September 16th should thereafter be celebrated as Kobe
Day. His Excellency returned to the port on that day
in September, 1907, and laid, with due ceremony, the
foundation stone of the works. Their importance will be
gathered when I say that they are expected to cost well
over 3| millions sterling, and as such enterprises seldom
get completed at their original estimated cost, Kobe and
the Government are probably in for quite 35,000,000 yen.
The city of Osaka, the second city of Japan in point
of size and population, is the commercial metropolis
of the Empire. It rejoices greatly in the fact that it is
COTTON MILLS 339
termed the " Manchester of Japan." It would appear
to have proceeded steadily in the way of development.
The numerous smoke stacks, at one time confined only
to the Mint and the Government foundry for guns, now
testify to the manufacturing life that is carried on. Cotton
mills form the bulk, but other industries largely par-
ticipate. There are now, I believe, nearly 1,200 factories
in and around Osaka, and the city is very typical of the
new era in the country, and of its new industrial life.
Gone, apparently, in a few more years will be the domestic
workshop, which has in the past been so pre-eminently
in evidence in Japan. In regard to cotton mills alone there
are now probably nearly 2,000,000 spindles in Japan,
of which Osaka claims a large share. The greater part
of the machinery is of the very best English make from
Lancashire firms. The enterprises are practically all
run now by Japanese, for there are scarcely any foreigners
connected with any of the undertakings. Many of the
factories are fine buildings, a number of the spinning and
weaving sheds being superior to those in England, better
lighted and better ventilated. Withal Osaka in general
differs from the rest of Japan. The bulk of the population
at present is in receipt of good wages, and can afford
and does live better than it has done hitherto. The result
is that people have a more independent bearing than you
will see in most other parts of the Empire. The dream
that the harbour works, which I saw in progress and
fairly well advanced in 1900, would be completed in 1905
has not been realised. They have now been under
construction for some ten years, and the designed
facilities, if carried out in their entirety, will require
several years more. It would seem the wishes that
Osaka has indulged in have not yet been realised, though
great progress has been made.
Passing on to Yokohama one found it proceeding on
the even tenor of its way. Normal development pro-
ceeds apace, the trade grows, the shipping figures increase,
banks are opened. By using the word normal I would
x 2
340 THROUGH JAPAN
not insinuate that the port was in that beatific condition
attributed to those who do not make history. It must
not be thought that Yokohama lacks energy and pace.
It keeps well up with the procession, as statistics show,
and the class of men, and the grip they have of affairs,
has not lessened since Rudyard Kipling wrote on the
scene displayed at the club when the announcement was
made of the failure of a well-known bank, in whose
fortunes most were interested. They have probably to
meet greater competition nowadays, not only from fellow
westerners, but from native firms. They are struggling
to do direct trade, and can, except in the case of some of
the big Japanese firms, work cheaper than he is able to do.
One factor is that they can staff their hongs at less cost.
The harbour improvements are being sedulously
proceeded with. Only shortly after the breakwater arms
were completed it was evident that the trade of the port
required additional works. Further reclamation was
commenced in 1899, and the completion of the first stage
took place in 1905. The necessary steps were at once
taken for carrying out the second stage, and making the
corresponding land accommodation for the entire re-
clamation work as continuing undertakings during six years
from 1906 inclusive. When these works are completed
it is estimated that facilities will exist to deal with two
million tons or more of goods per annum. It is intended
to plan later on further extension work for the harbour.
Yokohama is thus seeking to keep abreast of the times,
and to accommodate the anticipated increase in shipping
across the Pacific Ocean.
Tokyo, the capital, improved and advanced in many
ways, has not made the same progress in road-making
that it displays in other directions. Millions of yen are
voted for railways and other ways of transportation and
communication, but the oldest ways, the roads, are left
more or less to take care of themselves. The city has
now an excellent system of electric trams, by means
of which you may travel from any one district of Tokyo
THE GINZA, TOKYO 341
to any other for the modest sum of 4 sen (one penny),
and for this you may change cars three or four times.
Tokyo is now actively engaged in carrying out a very
practical work which will be a great convenience in years
to come. The overhead railway is in course of construc-
tion. It is designed to link up the railways now running
to the capital from the north, south, and west in one
central station. The situation is certainly central, and
is located on the Iwasaki land adjacent to the offices
of many of the large mercantile and shipping companies.
The Ginza, a mixture of Oxford Street and Regent
Street rolled into one, has greatly changed its moods of
late years, and it is only occasionally, here and there,
that one recognises a bit of its former self. The little
furrier shop on the old plan still deals in the same wares,
but it is now a plate-glass fronted, fashionable emporium.
It has greatly increased its importance and its prices.
Most of the street has been metamorphosed. Doubtless
shopkeepers do more trade, and there is the air about
that they do, but the street has lost much of its in-
dividuality. As with the Paris boulevards at certain
seasons of the year, so it is with the Ginza it is the pave-
ment vendor that lends a certain air to the street. This
stall-keeping community is still there with the quaint
odds and ends of wares, their goods of a hundred and one
household requisites and utilities, and the curios and
modest articles de luxe, the netsukes, brasses, and other
objects for the curio hunter. They at least remain to
remind one of the general air and surroundings of the
famous Ginza. Another feature to notice about the city
is the growth of foreign style private houses. In very
many instances one finds a foreign style front, with
reception rooms, furnished in European style, whilst
a purely Japanese house will be constructed at the back,
where the family will reside. Various other improve-
ments are also to be noted in Tokyo. For instance,
the Hibiya Park, in the centre of the city, is a great im-
provement on the ragged piece of ground that was formerly
342 THROUGH JAPAN
an eyesore. Other matters in the municipal world are
likewise in contemplation. As one Japanese remarked
to me : " We must hurry up and do them before land and
labour become too expensive "
Finally I may say, as all will know, Japan has achieved
much, and is on the threshold of further attainments.
In one way further change has yet to come, for in the
mental sphere improvements, though brilliant in many
individual cases, are by no means general. The Japanese
have adapted Western industrial methods which, it may
be conceded, were often only a re-adaptation of crafts
they were cognisant of under other conditions. But
matters outside native genius show no special forward
movement. In mental, moral, and social ways only
small changes have to be noted, and in the most pro-
nounced degree in the last-named category. They have,
as a Japanese himself pointed out to me, accomplished,
not without considerable trouble, a central re-adjustment
along lines of a mechanical nature, but they have yet to
accomplish the other parts. Looking back on one's
own individual experiences, one can mark the growth
achieved. It was my privilege to see the country first
in 1878, when it was in a whirlpool of changes,
thrown forward and thrown backward by the tussle that
occurred in the Satsuma rebellion, and the events of a
decade preceding it. In 1886 one noted less chaos
and more concrete views as to what should be adopted ;
but in most ways matters were still in a transitory and
uncertain stage. The process of sifting what was necessary
for Japan's own particular needs, instead of a blind
acceptance of all that was foreign, no matter whether
it was good or bad, was pursued in the succeeding years
until after her first successful war had been fought in
1894-5, one could note the accomplished assimilation
of material, industrial, and physical matters. This has
become more accentuated during the last seven years,
leaving the fuller development of mental, moral, and
social attainments to follow, the germs of which are
JAPANESE CHARACTERISTICS 343
slowly coming into evidence. I am naturally speaking
in generalities. There are individuals who possess and
display these qualities, but to the bulk of the nation they
are unknown quantities. There is an abyss between the
leaders in Japan and the ordinary people in such matters.
Look at politics : outside a limited number who some-
times make their views and opinions heard in high quarters
there is little between the leaders and the bulk of the
people. The position is entirely different to what it is
hi the West, where the people will not be left out of
political questions. In Japan it has been truly stated
leaders and people " meet at the altar of a patriotism
which is a cult when it is not a religion." The patriotism
is excellent, but the whole spirit is as far from that of the
West as the geographical distance that separates them.
Japan is oriental, but it does not lie within the
enervating influences of the tropics, whose climate forces
everything at a pace that the West knows not of.
Students of Eastern character have noted the rush of the
oriental mind at an age somewhat in advance of the usual
period of quickening in the West. Like natural products,
its growth is swift ; it develops at great pace and amasses
with extraordinary speed. Then comes a pause, but
too frequently no onward movement after that pause.
These characteristics may be observed in India and
Indo-China, less so in China and Japan. But it is a new
movement Japan has taken on in the last half century.
Unthinking panegyrists have ascribed to her attainments
that have yet to be achieved, for a gap remains between
the ideal standard and the assumed status. Will Japan
nationally be an exception in her career ? Have we
witnessed the rush of the national mind, and will there
be a pause, and after that will the ascendant movement
be resumed, or shall we have a repetition nationally of
what one sees constantly individually in, say, India ?
Climatically she has the elements in her favour, and for
myself I think she has the characteristics to secure pro-
gressive movement.
CHAPTER XIX
HOKKAIDO.
Colonial Experiments Agricultural Wealth Fisheries Minerals
Hakodate Growth of Otaru The Capital, Sapporo Muroran Its
Projected Iron and Steelworks.
HOKKAIDO is still perhaps more generally known under
its former name of Yezo. It is the large island to the
north of Japan proper, and it possesses a sub-arctic
climate. Previous to the Mieji era the island received
practically no attention, and indeed even in the early years
of that period but little was done. From the commence-
ment of the eighties of last century more and more
attention has, however, been bestowed on it. Its form
of government has been remodelled several times, and con-
siderable sums of money lavished to promote its material
development. The resultant events have amply demon-
strated the wisdom of such munificent policy, for improve-
ment, if it has not been as rapid as might have been
desired, has, at least, been unceasing, and the Hokkaido
of to-day is altogether different from the Yezo of 40 years
ago. There are many reasons why development has not
been so rapid as might have been achieved. The two
chief causes are want of capital and a greater flow of
immigration. With the great developments in the
industrial world in the southern and western portions of
Japan the creation of industries and factories in and
around the capital at Osaka, Moji, and other places
attention and capital have been fully occupied with those
AGRICULTURAL WEALTH 345
districts. There have not been, except in a few instances,
either the capital or the energy to spare for the colder
north. When they are more fully provided in the districts
indicated we shall doubtless see more attention bestowed
on Hokkaido. The other reason is the comparatively
poor stream of emigrants that set out from the other
parts of Japan for this northern colony, notwithstanding
that the Government is liberal in its terms as regards
land, and furnishes considerable facilities to the immi-
grant during the early years of his residence in the
country. A leading factor to explain this is that the
climate is severe, and Japanese from the south and
west, where pressure exists to seek new fields, are not
always able to maintain their health. For those who
can do so, the rigours of the climate seem to benefit
them greatly. Up north one sees a hardier race. One
cannot, especially, fail to be struck with the greater
height, erect and superior carriage, and healthy, ruddy
colour of the women and children. The peoples of the
northern portion of the mainland of Nippon can withstand
the severity of the climate, but there is no pressure of
over-population in those districts to make them leave
that which to the Japanese is as dear as it is to the
Chinaman his own home, his own village, and his own
surroundings.
The agricultural wealth of Hokkaido consists prin-
cipally of beans, potatoes, hemp, millet, rice, and wheat.
The fruits are extensive and good, and excellent apples,
pears, cherries, and other varieties are raised. Sericulture
is developing year by year. It is, however, more in the
forest wealth and the minerals, principally coal, and also
sulphur and oil, that the present developed wealth of the
island has been proved. Particular mention should also
be made of its fisheries, which are extensive, and a lucra-
tive source of employment. Coal is the mineral which,
according to present investigations, exists in largest
quantities in Hokkaido. Development of the mineral
has been largely the work of the Hokkaido Tanku
346 HOKKAIDO
Kabushiki Kaisha, which is one of the largest coal pro-
ducers in the East. It has prospered exceedingly, and
proposes to go to greater lengths by working itself to
first place as producer. In developing its properties it
had constructed a fair length of railways. These have
now been acquired by the Government under the railway
nationalisation scheme. Freed of the railways the
company has decided to devote its capital and energies
to improve the harbours of Otaru and Muroran, to make
additions to the company's fleet of steamers, and to in-
crease the production of coal, so that the total output
for the year 1909 will reach 1,800,000 tons. In 1907 the
output was 1,000,000 tons, the big Yubari mine alone
doing 600,000 tons.
Considerable official attention is devoted to the
problem of education, and schools of all grades have been
established. Even the remnants of the former inhabitants
of the country are sought to be gathered into the educa-
tional fold. Cleanliness is one of the precepts taught
and enforced at schools. As the humble Aino is not
addicted, under normal circumstances, to bathing during
his natural lifetime, he has dubbed the Government
educational establishments " washing schools," for in
them the pupils were instructed, as part of the curriculum,
in the art of bathing. Seriously, to the education
problem much attention is given. Considerable energy
is devoted to the Agricultural College at Sapporo, now
incorporated into the recently constituted North Eastern
University. This institution has done much good work
in the matter of stock-raising and improvement. The
rich pasture lands of Hokkaido, a feature that is so lack-
ing in Japan proper, are well adapted for breeding cattle
and horses. Nowhere else in Japan may be seen so many
Japanese on horseback as you may observe in Hokkaido.
Dairy produce is being increasingly manufactured, and
Hokkaido cheese is, like the butter you get locally, an
excellent product.
Hakodate was for long the only port of any importance
HAKODATE OTARU 347
in Hokkaido. Its younger rivals are now advancing at a
greater relative pace. A disastrous fire in the latter part
of August, 1907, will, it is to be feared, not improve its
prospects. As is their wont, the Japanese exhibited cheery
indifference whilst the fire swept away not only their
homes, but often their entire worldly belongings ; but
then, before the ashes had cooled, they were at work
on reconstruction. They are certainly philosophers on
such occasions. Hakodate will doubtless always possess
importance through the fishing industry and the export
trade to China ; but there are not wanting many who will
tell you that trade is passing to Otaru and Muroran, and
that Hakodate has seen its best days. It possesses
one of the only two natural harbours in Hokkaido, its
sister port of Muroran, a few hours' distance across the
big Volcano Bay, being the other. Its natural advantages
had been added to, and the harbour improvement works
constructed. A patent slip to take vessels up to 1,500
tons, and a large dry dock that will take a battleship
at high- water springs, are included in its facilities.
From Hakodate my route was by the railway to Otaru
through a picturesque country, affording one some
glimpse of the timber that is so valuable an asset to the
island. The distance is not great, but the time occupied
is 10| hours for the journey. There are some fair
gradients to be negotiated as the line twists itself amongst
the hills. Otaru is very prettily situated, the harbour
being shaped like a crescent, with hills at the back of the
town. Harbour works, designed to enclose a considerable
area of water between the two horns of the crescent, have
been in progress for some time. A very extensive export
trade in timber some coal also finds an outlet here
takes place from Otaru. Sleepers are extensively shipped
to China, as also for use on the railways in Japan. A new
avenue has recently been opened in the export of hard-
wood to Europe. This consists of several varieties, but
oak, used mainly for furniture purposes, largely pre-
dominates. Otaru is growing fast, but what it sadly
348 HOKKAIDO
lacks is some attention to its roads. They were distinctly
the worst I have seen in any town of the same size in
Japan.
Rather over an hour and a half is required by rail-
way to do the distance between Otaru and the capital
of the island. In laying out Sapporo the Japanese had
a free hand. They selected the site and designed it as
they pleased. It is situated on practically flat land that
gives, however, sufficient slope for drainage and flow of
water through it. The roads are broad and laid out at
right angles. It has now a population of 60,000 persons,
and it grows moderately rapidly as the country progresses,
and the general population increases. The houses, shops,
and general appearance of the inhabitants indicate a
condition of fair prosperity. It possesses electric light,
generated by water power not far away ; it is thus fairly
cheap, and is in general use. Amongst its inhabitants
you may see, but will not recognise any, Ainos. A few
are there, but as they have been outwardly " Japanned,"
and are in Japanese dress, they are not specially dis-
tinguishable. They may be seen in moderate number,
though scarcely in all their native simplicity, in a
village not far from Sapporo. If you want really to
see them you must go farther afield. Their numbers
are constantly diminishing.
The most striking building in Sapporo is a large red-
brick construction wherein are located the Government
offices. It is known as the Docho, and the Governor-
General has his office here, as well as practically all
Departments of the Government. The next most im-
posing building, one that stands in its own grounds and
possesses a pretty Japanese garden, is the Hoheikan.
It was hi this building that the Emperor stayed when he
visited Hokkaido, and it still belongs to the Imperial
Household Department. It has for some time been
devoted to other uses. Here foreigners may stay, though
Japanese are not permitted to do so. They may take
meals there, but they must not reside. Many who either
SAPPORO MURORAN 349
like or want to try foreign food, take tiffin or dinner there.
Sapporo is as yet young in industries. Its chief production
is beer, but there is also a flax mill that it is hoped will
create an industry, and there are saw mills.
The Agricultural College, of which mention has already
been made, is half-an-hour from the centre of Sapporo,
situated in grounds resembling those of a university.
It has detached buildings for the different sciences taught,
and there is a small experimental farm where practical
work can be undertaken. The college has done, and
apparently continues to perform, excellent work that
should produce men who can foster, by proper methods
due to scientific training, the agricultural wealth of the
country.
From Sapporo to Muroran, my next objective, is six
hours by train. Due to the misfortune that I was un-
aware of the necessity of changing trams, I found myself
well up in the north-east of the Ishikari Province. Result :
I was, owing to time lost in going out of my way, time
lost in getting back to the proper route, detention for
some hours at the junction awaiting the train on, about
14 hours on railway premises. My baggage, more wise
than myself, changed and went on by the proper con-
nection. Still, one saw some good agricultural land
with fairly prosperous-looking homesteads.
Situated on the south of the island and opening into
the Pacific Ocean, Muroran seems specially designed as
a door through which the treasures of Hokkaido may
find their way to at least the Oriental world. Formerly
only a small village, Muroran has now become a town of
some dimensions and importance, the colonisation of
Hokkaido and the development of the Yubari colliery
having rapidly brought it wealth and population. A
fair proportion of the lumber export of Hokkaido finds
its outlet at the port. In quantity it about equals that
shipped from Otaru.
Muroran is destined to become much better known
in the Far East, and in a wider, perhaps, world area, if
350 HOKKAIDO
the projected iron and steel works arrive at the successful
issue anticipated for them. The pig-iron plant is to be
erected at the north-east part of Muroran Harbour.
It is proposed to work on the sand ore that lies in such
immense profusion around the large, adjacent Volcano
Bay. Muroran and Hakodate lie at the two points of
the Bay, at the head of which is the volcanic mountain
known as Komagatake. At first it is proposed to erect
two blast furnaces with a capacity of 30 to 40 tons of
pig-iron a day. The question of the extraction of the ore
from the sand is still looked on as an experiment, and
there are not wanting some experts who aver that it
cannot be done. Should these two furnaces prove suc-
cessful then four or more additional plants will be put up.
The coke for the furnaces will be supplied from the
Yubari mine. The second plant, that for the steel works,
is to be erected on the eastern side of Muroran Harbour.
This is the site of the establishment for the Armstrong-
Vickers-Hokkaido Tanku combination. The works are
to be erected partly on land leased by the Government,
and, as to the other part, on reclaimed land. The railway
runs at the back of the site, and affords ready communi-
cation with the existing island system. The reclamation
to be carried out is extensive, but the water is shallow,
the larger part only having 1 ft. 9in. on it at high
water. Moreover, on the leased land there is a convenient
hill that can be removed and used for filling-in purposes,
whilst this land will itself afford additional flat surface.
The initial works had already been commenced in the
autumn of 1907. On this land a complete steel plant of
the latest design will be erected to convert the pig-iron
manufactured at the adjacent works. Either works,
which are situated perhaps a mile apart, will have com-
munication by railway passing through both of them,
as well as water passage along the harbour. From the
reclaimed land a pier will be constructed, at the end of
which will be a stationary crane of the capacity of 100
tons. Along either side of the pier will be travelling
MURORAN IRON AND STEELWORKS 351
cranes of 10 and 25 ton capacities. The whole scheme
shows the tendency of the day for such combinations ;
expert assistance and capital from the West, to be linked
with the facilities and labour possessed by Japan.
CHAPTER XX.
KAMAISHI IRON MINE AND STEEL WORKS.
Kamaishi Harbour The Works Municipality History of Under-
taking The Mines Hills of Iron Tramways and Inclines Blast
Furnaces Steel Products.
COMING south from Hokkaido I paid a visit to the iron
mines at Kamaishi. From Muroran I proceeded in one
of the Iron Mine Company's colliers to the Harbour of
Kamaishi. This is situated in the province of Rikuchu,
on the east coast of the main island of Japan. Kamaishi
has a picturesque harbour, formed by one of the numerous
inlets from the sea common on the East coast of Japan.
These all present the same characteristics of wooded hills,
coming down steeply to the water's edge. They generally
form good and secure harbours. At the head of the
Kamaishi inlet the steel and iron works are situated.
The iron ore is obtained from mines in the interior, but
the location of the works has relation naturally to the easy
receipt of coal and shipment of pig-iron or finished
steel products. The coal comes entirely from the mines
of the Hokkaido Tanku Company, in Hokkaido, three
colliers constantly running to maintain the necessary
supply of 500 tons a day. The village or small town of
Kamaishi is really a species of miniature republic, with
the general manager, Mr. K. Yokoyama, as its president.
He is assisted by a council, selected from the heads of
departments, who arrange all municipal matters, regulate
the markets, and conduct the sort of general store that
A JAPANESE ENTERPRISE 353
is run to provide employes with every description of goods
at a moderate cost. The community also has its own
schools, technical school, and hospital. It looks after
its own roads and the main road out to the mines, which
is also the high road to the interior, and to the railway
that runs down parallel to the coast at a varying distance
inland.
The existence of iron ore was discovered in 1823, but the
first record of any of it being treated by smelting is in
1849, when some was for the first time dealt with by
purely Japanese methods. Count Nambu then worked
the ore for a long time according to this process, but at
the beginning of the Meiji period Nambu Badmio
endeavoured to work after the European style. In 1874
he had erected two blast furnaces working with cold blast.
These were designed by Mr. Takato Oshima (the father
of Dr. Oshima, the late chief engineer of the Japanese
Imperial Steel Works at Wakamatsu). The following
year, that is in 1875, the plant was handed over to the
Government, which proceeded to reconstitute the works.
They were enlarged, and several English engineers
engaged. But the works did not run well, and the scheme
was abandoned in 1884.
It was in 1886 that the late Mr. C. Tanaka secured all
the rights and property from the Government, and
erected two small charcoal blast furnaces designed by
Mr. K. Yokoyama, the present general manager. Mr.
Yokoyama was not originally trained as an engineer,
and he had practically no technical knowledge of the
requisite methods of smelting iron ore. In spite of these
disabilities he ventured to work without any expert
assistance. Of course, there was no iron metallurgist
in Japan at that time. He met with several failures
and a good many difficulties, but at last he succeeded. He
is now a man of nearly 60 years of age, and one can see by
his manner and methods of doing just the ordinary things
of everyday life that he is a man not easily daunted.
Quiet and courteous in demeanour, he possesses, in a
354 KAMAISHI IRON MINE AND STEEL WORKS
degree not always exhibited by his countrymen, a dogged-
ness of purpose that has brought the works to their present
condition.
From the works at Kamaishi to the mines themselves
is a distance of some 12 miles. With my cicerone, the
manager of the smelting department, I took my seat
in a diminutive sort of railway bus, that is used as a train
either way each day. We were favoured in having a
" special " to ourselves, and started to do 10 miles by
this conveyance soon after 8 a.m. It is an up-gradient
all the way. Ponies are the means of haulage, though
it is suggested to put on locomotives which should cer-
tainly do the work at a less cost. The ore trucks, which
carry something like a couple of tons of ore apiece, are
hauled up empty by ponies. The return journey is made
by gravitation, the pony coming back tethered to the
side of the truck. Each truck has its own coolie, though
occasionally two trucks will be looked after by one man.
Each truck has its own brake, and too hazardous a pace
on the part of some adventurous Jehu is prevented
apparently by the fact that the pony has to keep up with
his truck. About half-way to Obashi, where the mine
office is situated, is a charcoal station, where that fuel
is collected. The mine manages to gather in about 70
to 80 tons a month. Most of the near country is, however,
denuded of suitable timber for conversion to charcoal,
which is cheaper than coal, but cannot be got in sufficient
supply. Some further supplies are got in the surrounding
districts, brought to Kamaishi largely by water.
We had so far come on a fairly easy gradient up the valley,
but the next two miles were much steeper, and the distance
on either side to the hills much reduced. Indeed, it
reminded one of a narrow glen in Scotland, the scenery
being similar, and often of rare beauty and picturesqueness.
The suggested locomotive power would probably not
operate on this section. The two miles traversed, one
alighted at the foot of an incline 142 yards long at an angle
of 35 degrees. Above this another railway went for some
IRON ORE HILLS 355
half a mile or more to another incline 330 yards long,
and set at an angle of 38.50 degrees. Another tramway
all these lines are worked by gravitation on the down
gradient, and by ponies up brought us past the entrance
to the Yawoyama mine (which is not being worked much
at present) to the Shinyama mine. Here active work
was in progress at two levels. At the ground level was
a huge cavernous opening like the entrance to a great
tunnel, 40 ft. high and 36 ft. broad, whilst it was some
100 yards deep. This big hole had been made by extract-
ing the ore. The lower level was reached either by a
shaft from above or at its own level in the hillside below,
where the spoil was brought out. From Shinyama a
short walk along the line brought us to the third incline,
290 yards long, set at a gradient of 37 degrees. Having
proceeded up this, one got into another truck, passing
shortly after through a tunnel in the hills 360 yards long.
This brought you out on the inland side of the range,
where you were at the Sahinai mine, another deposit
rich in high-grade ore. It is an open mine in the hillside.
A hundred, or may be 150 ft. below, and somewhat to
the right of the Sahinai mine, is the Motoyama mine.
The winnings from this mine are conveyed by an aerial
ropeway right over the hill (that through which the tunnel
is excavated at another spot), discharging its buckets
into trucks almost opposite the mine office at Obashi.
Thence it goes by gravitation to the works at Kamaishi,
as in the case of the other ores. There is another mine com-
prised in the group, and the total available quantity of
ore deposited in the hills, which are often practically all
iron ore, is estimated at between 7,000,000 and 8,000,000
tons, giving, as far as is known, an average of 60 per cent,
of iron ore. Copper is also found, and the ore specially
picked over for treatment at Obashi. There is also sulphur,
but it is not treated, though a good deal exists in
some of the ore. Having gone round, there was just
time on our return to Obashi to see the old blast furnace
where the ore was first smelted under the present manage-
Y 2
356 KAMAISHI IRON MINE AND STEEL WORKS
ment. As I have said, it was purely of Japanese design,
workmanship, and erection, without any foreign aid
whatever. It is a monument to the enterprise and
assiduity of Mr. Yokoyama. An hour's run on the
railway on the down grade from Obashi brought us back
to Kamaishi. It was the end of a perfect autumn day,
that closed in to an exceedingly brilliant sunset, with
just that suspicion of autumn mist one gets in October.
The ore deposits, received at the works at Kamaishi
are treated in one of eight of the blast furnaces. These
have varying capacities from 10 to 60 tons of pig-iron
per 24 hours, and a total capacity at full blast of 172
tons per day. The normal production runs about 100
tons per 24 hours, day and night shifts being employed.
Of the product some portion is used for conversion into
steel at the works, and turned into various products ;
another portion is used in the foundry ; the Imperial
Steel Works at Wakamatsu are regular buyers ; ship-
ments during both 1906 and 1907 have been made across
the Pacific to the United States ; and the balance is sold
either at Tokyo or Yokohama.
The steel converting plant consists of two Siemens-
Martin furnaces. There are at present two small roll
mill plants. Another, and a larger, plant was in course
of erection at the time of my visit. The engines for this
consisted of a set of marine engines which had done some
duty on board ship already. The rest of the plant had
been made at different engineering works in Japan, and,
as the engines had also been made in the country, the
plant had in reality been entirely constructed in Japan,
though some of the materials used in its manufacture
had been imported from abroad. The building in which
the roll mills are placed was originally the wrought-iron
shop in the time of the English engineers already referred
to.
The foundry work forms a large part of the total work
in the yard. The greatest capacity for a casting is three
to four tons. Pipes for waterworks, gas mains, and such
JAPANESE KETTLES 357
purposes, now largely in demand in Japan, are extensively
made. They can be produced up to 28 in. diameter.
Another fairly extensive industry is the manufacture of
large iron pans huge boilers for cooking rice in large
quantities. About four thousand of these are turned out
in a year. They are made entirely on a Japanese process
of moulding, which has been in force in the country since
time recordeth not. Another industry, started not long
since, was the manufacture of Japanese iron kettles.
Anyone who has visited Japan knows how universal
is the use of these kettles, and how quaint and attractive
these productions often are in design. It is special work
making the moulds, and skilled workmen have to be
employed.
THE END.
INDEX.
AGUINALDO, 102.
Aigun, 227.
Alabaster, H., 87
Amoy, 142.
Anglo- Japanese Alliance, 195,
204, 319.
Anhui Railway Co., 159.
Antung, 264, 270, 272.
Armstrongs, 329, 350
Arnhold, Karberg & Co., 180.
Atjeh Trading Co., 81.
BAIJK PAPAN, 64.
Bandjermassin, 8, 72.
Bangkok, 5, 83.
Penang Railway, 91.
Bank of Japan, 299.
Banque de 1'Indo Chine, 209.
Batavia, 8, 75.
Batu Gaja, 33.
Beaufort, 46.
Belawan, 77.
Bentong, 39.
Birch, E. W., C.M.G., 29.
Boelongan, 58, 61, 62.
Borneo, 42 et seq.
Coalmine, 43.
(North), 45.
Boustead & Co., 21.
Boxer Trouble, 252.
Bredon, Miss Juliet, 199.
British and Chinese Corporation,
227, 233.
Brown, George, 260.
Sir J. McLeavy, 301, 303.
Brunei, 45.
Burnett, H., 247.
Butterfield & Swire, 120, 131,
149, 160, 161, 168, 171, 335.
CAMPBELL, D., 30.
, j. D., 199.
Canton, 124.
Hankow Railway, 243.
improvements, 127.
launches, 129.
police, 128.
Carlowitz & Co., 164, 180.
Carriage Park, 208.
Carruthers, J., 36.
Chang Chih-tung, Viceroy, 162,
164, 203, 241.
Changchun, 264.
Changsha, 167, 171.
Chang-tien, 239.
Chang Yen-mao, 252.
Chantek (launch), 58.
Chao Erh-hsun, 241, 265.
Cha-szes, 166.
Chef oo, 182.
Chemulpo, 306.
ChSngtu, 242.
Chiao-tso, 255.
China Borneo Co., 54.
Merchants S.N. Co., 159
252
Navigation Co., 159, 160.
Chinchowfu, 234.
Chinese chauffeurs, 151.
currency, 203.
Engineering and Mining
Co., 247 et seq.
exactions, 189.
Imperial Customs, 197
et seq.
Ching, Prince, 196.
Han Railway, 234.
Hwa, 255, 256.
Ching-ling-chow, 238.
Ching-wan-tao, 250, 272.
Chinkiang, 157, 242.
Chou Han, 169.
Chow Fu, Viceroy, 125.
Chu Hung-chi, 193.
Pao-fai, 196.
Constitutional Government,
China, 216.
Cowie Harbour Coal Co., 54,
55.
Crowe, Mr., 322.
Currency, Korea, 298.
Siam, 92.
Straits Settlements,
12, 39.
360
INDEX
DAI ICHI GINKO (bank), 273,
299.
Davidson, H., 303.
Deli, 77.
Deutsch-Asiatische Bank, 180,
209.
Dewawongse, Prince, 84.
Dewey, Admiral, 102.
Dusit Park, 83, 84.
EMPEROB OP CHINA, 194, 225.
Empress Dowager, 194, 196,
198, 216, 225.
En Ming, 158.
Eui-pyong, 290, 294.
FAKUMEN, 264.
Railway, 206, 227,
230.
Fangtse, 254.
Federated Malay States, 24
et aeq.
Railways, 37.
Fengtai, 225.
ffrench, Lord, 227.
Filipinos, 101.
Flint, Captain Raffles, 51.
Foo Choo Choon, 32.
Foochow, 145.
Fuhkien, 144.
Fusan, 306.
Fushun, 261, 269.
GAMBLING SIAM, 96.
Gaya Bay, 51.
Gensan, 307.
Ginza (Tokyo), 341.
Glass, J., 257.
Gombok, 39.
Gordon, General, 241.
Goto, Baron, 269, 276, 316.
Griffith, G., 232.
Gueritz, E. P., 53.
HAIHO CONSERVANCY, 184.
Hakodate, 346.
Hamilton, Lieutenant, 42.
Hangchow, 242.
Hankow, 161.
- Ichang Railway, 243.
industries, 163.
Hanlin College, 208.
Hanyang Arsenal, 166.
Steelworks, 164.
Harbin, 264, 270.
Harrington, Major, 51.
Hart, Sir Robert, Bart., 198
et seq., 222.
Hay, Secretary, 229.
Hayashi, Count, 322.
Hillier, Sir Walter, 210.
Hokkaido, 344.
Tanku Co., 345, 350.
Hong Kong, 111.
and" Shanghai Bank, 15,
151, 207, 227.
and Whampoa Dock Co.,
115, 119.
Opium Revenue, 112.
Peddar Street, 117.
Praya, 116.
Waterworks, 122.
Hsin Ch'iu, 233.
Hsinmintun, 225, 228, 262, 264.
Hsu Shih-chang, 265.
Hunan, 171.
Hun River, 269.
ICHANG, 242.
II Chon Hoi, 294.
Indo China S. N. Co., 131, 159.
161.
Inland Waters, China, 138, 170.
International Institute, Shang-
hai, 155.
Ito, Prince, 291, 302.
Iwasaki Yataro, 335.
JACKSON, Sir John, 6.
Jacquemyns, M., 87.
Ja-mei-sen, 257, 258.
Jameson, C. D., 210.
Jamieson, George, C.M.G., 257
R., 231.
Japan, 313 et seq.
and China, 214.
foreign loans, 314.
railways, 317.
Japanese emigration, 323.
trade, 324.
Jardine, Matheson & Co., 168.
Java Bank, 78.
Jelebu, 39.
Jenks, Professor, 203, 204.
Jesselton, 51.
Johore, 11, 27, 37.
Jordan, Sir John 205, 219,
222, 227.
Journalism, Chinese, 215.
KAIPING, 247.
Kalgan, 226, 244.
INDEX
361
Kamaishi, 352.
Katsura Cabinet, 316.
Kawasaki Dockyard Co., 279,
336.
Kedah, 27, 90.
Keelung, 144.
Kelantan, 27, 90.
Ketteler Memorial, 209.
Kiachta, 244.
Kimpai Pass, 145.
Kinder, C. W., C.M.G., 231,
247, 248.
King Edward VII. School,
Thaiping, 40.
Kirin, 264.
Kiukiang, 159.
Klang, 35.
Kobe, 326, 336, 340.
Koetei, 64.
Komura, Count, 206, 227.
Korea, 287 et seq.
- Resident-General, 289, 302.
Korean, the, 303.
railways, 305.
Kota Baroe, 72.
Koupantse, 225, 233.
Kowloon Railway, 115, 126.
Kranji, 11.
Krian irrigation, 29.
Kudan, 281.
Kudat, 52, 53.
Kulangsu, 142.
Kure, 336.
Kwala Kubu, 39.
Lumpur, 28.
Kwangtehchow, 159.
Kwantan, 39.
Kwan-tung, 277.
Kweilin, 134.
LABTTAN, 42.
- coal, 43.
Lama Temple, 210.
Lao States, 90.
Lay, H. N., 199.
Lekin, 135.
Leys, E. E., 42.
Li, Director, 166.
Liao River, 228, 262, 271.
Liao-yang, 264, 270.
Lichiawopu, 233.
Li Hung-chang, 186.
Ling-ching-chow, 256.
Lingkas, 63.
Linsi, 250.
Lintsun, 226.
Lister Kaye Anhui Mining Con-
cession, 159.
Lockhart Hospital, 210.
London Borneo Tobacco Co.. 52
Lukouchiao, 225.
Lungchow, 135, 136.
Lushang, 275.
MACASSAR, 8, 9.
Ma-chia-pu, 207.
Mackay Treaty, 204
Mahakam, 66.
Maizuru, 336.
Malacca, 22.
Malalap Estate, 49.
Malay, The, 25.
School, 40.
States Guides, 41.
Manchester North Borneo Rub-
ber Co., 49.
Manila, 99.
Railroad, 107.
Manjuria, 264.
Martin, Montgomery, 112.
Marudu Bay, 50.
Masampo, 306.
Matsukata, Count, 313.
Medan, 77.
Min River, 145.
Mingan Pass, 147.
Mitsu Bishi Dockyard, 335.
Mitsui Bussan Kaisha, 150.
Mongolia, 189, 230.
Mongol Market, 208.
Morphia, 221.
Morse, H. B., 200.
Motoyama, 355.
Mukden, 226, 229, 262.
Muroran, 349.
Muruts, 49.
NAGASAKI, 335.
Nambu, Count, 353.
Nanchang, 159.
Nanking, 157.
Railway, 239.
Nankow, 226.
Nanning, 135.
Nanpiao, 233.
Nanshan, 275.
Nantai, 145.
Nathan, Major, R.E., 248.
Sir Matthew, 116.
Naval Yard, Hong Kong, 117.
Ned. Ind. Industrie en Handels
Maatschappij, 66.
362
INDEX
Newchwang, 225, 270, 275.
Nganking, 158.
Nigri Sembilan, 27.
Ningpo, 242.
Nippon Yusen Kaisha, 83, 149,
306, 328.
Niuchiatun, 271, 275.
Noenokan, 59.
Nogi, General, 284.
Norddeutscher Lloyd, 82.
Nutter, W., 32.
OBASHI, 354.
Ohlmer, Mr., 175.
Opium, 216.
- edicts, 217.
- monopoly, Nanking, 219.
- Shanghai and Treaty
Ports, 220.
Osaka, 326, 338.
Ironworks, 336.
Shosen Kaisha, 329.
Osborn, Sherard, 199.
Oshima, Baron, 279, 283.
, T., 353.
Otaru, 347.
Ourakami, Dr., 333.
PAI-SHAN, 256.
Pamoesiang, 61, 63.
Paquet, M., 248.
Pasig River, 106.
Passir, 66, 72.
Pauling & Co., 50, 227.
Peking, 193.
diplomatic forces, 204.
material progress, 207.
Legations, 208.
Pekin Syndicate, 235, 255.
Penang, 14 et aeq., 77.
- Hill Railway, 16.
- Harbour Scheme, 18.
- Port Trust, 17.
Reclamation, 20.
Perak, 27, 28.
Sultan of, 35.
Petrel (yacht), 52, 64.
Petuna, 230.
Pinghsiang Coalmines, 172, 260.
Pope, A., 239.
Port Arthur, 278 et aeq.
Lazareff, 307.
Poshan, 239, 253.
Poyang Lake, 160.
Prai, Province Wellesley, 37.
Prye River (Dock), 17, 22, 37.
Pukow, 242.
Pulo Laut, 72.
Way, 77, 80.
Fusing Lama, 33.
Putung, 238.
QUABRY BAY DOCK, Hong Kong,
120.
Quinsan, 240.
RAILWAY AND MINING COLLKGE,
232.
Railways, China, 226, 245.
Raub, 39.
Redhills, 33.
Reform Movement, China, 200,
202 213
Reid,' Dr. Gilbert, 155.
Alexander, 258.
Rijke, J. de, 156.
Rodger, Sir John P., 28.
Rokkosan, 338.
Royal Dutch Petroleum Co.,
63, 78.
Rubber, 16, 34.
Ruppert, Herr, 166.
Russell & Co., 252.
Russo-Chinese Bank, 149, 209,
277, 279.
SABANG, 77, 80.
Sahinai, 355.
Saionji, Marquis, 315.
Samarinda, 64.
Samshui, 130, 136.
Sandakan, 53.
Sanga Sanga, 69.
Sapong Rubber and Tobacco
Co., 48.
Sapporo, 348.
Schantung Bergbau Gesell-
schaft, 253.
Sebatik Island, 56, 59.
Selangor, 27.
Seremban, 39.
Shameen, 129.
Shanghai, 149.
Government of, 153.
Nanking Railway, 239.
Shan-Hai-Kwan, 225, 230, 232.
Shansi Concession, 259.
Shantung Railway, 237.
Shaw, George L., 272.
INDEX
363
Shell Transport and Trading
Co., 66.
Sheng Kung-pao, 172.
Shinyama, 355.
Shipping Conference, Singapore,
9.
Shockley, Mr., 257.
Shokonsha, 281.
Shui Lu Chiao, 169.
Shui-shi-ying, 283.
Siam, 82.
- King of, 85.
Siamese currency, 92.
- incongruities, 97.
Siangtan, 170.
Sibuco, River, 59.
Sikong Estate, 54.
Simajang River, 59.
Singapore, p. 3 et seq.
Sing-hsiang-hien, 235, 255.
Sinjan, 230.
Sinyang, 242.
Sone, Viscount, 302.
Songchin, 307.
Soochow, 240, 242.
Soul, 301.
Sourabaya, 73.
South Manchurian Railway, 227,
229
Stevens, D. W., 303.
Straits Association, 17.
Settlements Legislative
Council, 23.
Trading Co., 34.
Strobel, Professor, 87.
Suifenho, 264.
Sumatra, 77.
Sungei Besi, 33.
Ujong, 35.
Swatow, 140.
Swettenham, Sir Frank, 4.
Szechuan, 242.
TAIREN (Dalny), 270, 275.
Takikawa, Admiral, 284.
Tambun, 32.
Tanah Merah Island, 60.
Tanaka, C., 353.
Tanjong Pagar Dock, p. 5, 7.
Priok Dock, 75.
Rambutan, 31.
Tao-kow, 255.
Tarakan, 59, 61, 62<
Ta-shih-chiao, 270.
Tatsu Maru, 206.
Tatungkau, 264.
Tawao, 50, 55.
Tayeh, 165, 337.
Tea Trade, 148.
Telissu, 275.
Temple of Heaven, 210.
Tenom, 47, 50.
Three Cent. Provident Fund,
29.
Tieh-ling, 264.
Tientsin, 184, 227, 242.
Provisional Government,
203.
Times Peking Correspondent,
222.
Shanghai Correspondent,
217, 222.
Tin, 30.
mines, 31.
Tokyo, 340.
, South, Bishop of, 325.
Tong-ho, 250.
Tongkah, 17.
Tong King-sing, 247.
Tongshan, 231, 249.
Tong Shao-yi, 203, 247, 265.
Toyo Kisen Kaisha, 329.
Transit Passes, 190.
Tringganu, 27, 90.
Tsai Chun, Prince, 196.
Tsangkow, 177.
Tse-chow-fu, 257, 258.
Tsen Chun-hsuan, 193.
Tsinan-fu, 179, 256.
Tsingtau, 174, 237.
Tsi-tsi-har, 227, 230, 264.
Tuan, 196.
Fang, Viceroy, 158.
Tungchow, 225.
Tung Kuan Shan, 159.
Tung-ting Lake, 161, 167.
Turner, Bishop, 293.
203 Metre Hill, 282.
UBAOA DOCKYARD, 336.
VICKBBS, 329, 350.
WAI-WTT-PU, 210.
Wakamatsu Steelworks, 337.
Walcott, Lieut., R.N., 133.
Waterworks, Hong Kong, 122.
Watson, Mr., 264.
Weihaiwei, 183.
Weihsien, 182, 238, 253.
Weld Quay Reclamation, 19.
West River, 131.
364 INDEX
West River piracy, 132.
Wha-feng-kau, 275.
White, J. G., Co., 107.
Whitewright Museum, 181.
Wladiwostock, 270, 308.
Wood, General, 104.
Woosung Bar, Shanghai, 155.
workshops, 241.
Wuchang, 162, 164, 241.
Wuchow, 133.
Wuhu, 159.
Wu Ting-fang, 126.
YALE Mission, 169.
Yang Shih-hsiang, 179.
Yangtsze Valley, 156.
Yellow River Bridge, 235.
Yingkow (Newchwang), 225,
270, 275.
Yokohama, 326, 339.
Ironworks, 336.
Specie Bank, 209, 271,
273, 277, 279.
Yokosuka, 336.
Yokoyama, K., 352, 353,356.
Yuan Shih-kai, 186, 195, 216.
Yubari Mine, 346, 350.
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