Railway enterprise in China : an account of its origin and development

Preface

THE following pages represent an attempt to record the circumstances of the origin and growth of railway enterprise in China, and to describe the present state of its development. They aim at providing a succinct and unbiassed account of an important aspect of what is known as the Far Eastern question.

The arrangement is not strictly chronological, but rather chronological subject to geographical and historical conditions. The subject, however, demands this treatment, which I venture to believe will be found both logical and convenient.

The Appendices contain copies of the more important railway contracts and other documents, which it is hoped may give the work a value for reference purposes.

A question of some difficulty has been the romanisation of the names of places. At the present time the recognised system is that of Sir Thomas Wade, and a tendency has lately manifested itself to recast the names of places the spelling of which has been long settled by custom. The soundness of this latter proceeding, however, may be doubted, and on the whole it seems desirable to accept such spellings as have been settled by usage, and in other cases to base the romanisation of Chinese characters on the system already alluded to. The spelling adopted by the Imperial Maritime Customs in their returns seems to be based on this principle ; accordingly, it has as far as possible been followed.

In regard to the maps, it should be remarked that no line is shown the construction of which has not been sanctioned by the Chinese Government, although references will be found in the text to schemes which have been more or less seriously discussed. This course has been pursued in order that the maps may accurately represent the present position ; the illustration of the somewhat nebulous schemes of the future may safely be left to future editions.

vi PREFACE

I should add that the drawings upon which the more important maps have been based, have passed through the hands of Mr. A. G. Cox, M.Inst. C.E., of the Imperial Railways of North China, to whom my thanks are due for assistance in connection with them.

Here too I may perhaps be permitted to remark that, though I cannot hope that error has been altogether avoided, I have been exceptionally well situated for obtaining reliable material for the formation of the present volume. As a resident in China, in addition to enjoying opportunities of observing the various lines in operation, I have been privileged to be in personal touch with the leading authorities on the subject, many of whom have favoured me with much helpful suggestion and criticism. To all such, as to other friends who have kindly assisted me, I take this opportunity of expressing my sincere thanks.

To Mr. W. W. Rockhill, United States Minister at Peking, I am indebted for permission to avail myself of the translations of the Agreement between the Chinese Government and the Russo- Chinese Bank and of the Kaifengfu-Honanfu Railway Contract appearing in his invaluable compilation of Treaties and Conventions entered into by China between 1894 and 1904.

For the loan of documents and much valuable information my thanks are also especially due to M. Rocher, late Consul-General for France in Tientsin ; Mr. H. Ijuin, lately His Imperial Japanese Majesty's Consul-General in Tientsin, and now of the Japanese Embassy in London ; Mr. Charles Denby, United States Consul- General in Shanghai ; Dr. Morrison ; Mr. J. 0. P. Bland, now representative of the British and Chinese Corporation in Peking ; and Mr. George Jamieson, C.M.G., lately Agent-General of the Pekin Syndicate Limited, and formerly H.B.M. Consul-General in Shanghai. Mr. C. W. Kinder, C.M.G., Engineer-in-chief of the Imperial Railways of North China, also assisted me with useful general information, but unfortunately his retiring disposition rendered him uncommunicative in regard to the great part he has himself played in the railwav development of the country.

P. H. K.

August 28th, 1907.

Contents

CHAP. PAGE

I. Sir Macdonald Stephenson ..... 1 II. The Woosung Road ...... 9

III. The Formosan Government Railway . . .16

Chapter I Sir Macdonald Stephenson

THE history of railway enterprise in China covers a period of rather more than forty years. It reflects at once the main characteristics of the Chinese official classes, and the tendency of the Far Eastern policy of foreign powers.

Broadly speaking, the history falls into three stages. Of these the first is that of foreign attempts to persuade the Chinese to allow the introduction of railways. The next development is a progressive movement emanating from the Chinese themselves. Lastly comes the era of concessions in which the dominant feature is foreign control.

Chronologically these several stages may be considered as roughly corresponding to the periods between 1863 and 1878, 1879 and the outbreak of the Chino-Japanese War in 1894, and thereafter to the present time.

Of the future it is wisest not to prophesy. But it may at least be remarked that the tendency at the moment is towards the elimination of foreign control.

In the present chapter and the chapter on the Woosung Road 1 we shall see what measure of success attended the efforts of foreigners to urge upon the Chinese the adoption of modern means of communication before they were prepared to accept thera. Subsequently the history of the later phases will be developed.

1 Chapter II.

I

The first attempt to introduce railways into China was made on the 20th of July in the year 1863, when a petition was presented to " His Excellency Li,1 Imperial Commissioner and Governor of the Province of Keang Soo for the sole Concession of the Right to Establish a line of Railway between Shanghai and Soochow." The signatories of the petition were twenty-seven foreign firms, mostly British, " all being merchants resident at the port of Shanghai in the Empire of China." 2

Soochow is situated inland not far from the eastern shore of the Taihu or " Great Lake," and lies almost directly west of Shanghai, from which it is distant some eighty miles. At that time Soochow was occupied by the Taipings, but the rebellion was drawing to its close, and the " petitioners being impressed with the idea of the early probability of the recapture of the city from the rebels by the forces of His Imperial Majesty, and of the restoration of peace in the surrounding country, considered that the present time was a fit occasion for applying for the concession of the right to establish a fine of railway between Soochow and Shanghai, of a construction similar to those in existence in foreign countries, to be worked by a company then in course of formation, to be styled the ' Shanghai and Soochow Railway Company.' " 3

Unfortunately in this expression of view Li Hung Chang, who at a later period of his career took an active part in fostering railway enterprise, was unable to concur. Indeed, " although backed by the advocacy of the leading members of the consular body, the scheme was received with decided disapprobation. The Governor distinctly informed the Consuls that railways would only be beneficial to China when undertaken by the Chinese themselves, and conducted under their own management ; that grave objections existed to the employment of numerous foreigners in the interior ; and that the people would evince great opposition to being deprived of their land for that purpose. He also distinctly refused to be the medium of conveying any proposal of the kind to the Supreme Government at Peking ; and even added that he should consider it his duty to oppose the attempt on the part of foreigners to gain such an undue degree of influence in the country as the concession sought for would confer upon them." 4

The blow was crushing and caused the scheme to be abandoned,

1 Li Hung Chang. 2 Extract from petition. 3 Ibid.

4 Letter from Sir Harry Parkes to Sir MacDonald Stephenson, 8th March 1864.

SIR MACDONALD STEPHENSON 3

its authors realising that their proposals were at least somewhat premature.

At this point Sir MacDonald Stephenson, a distinguished engineer, who just twenty years previously had projected the first railway for India and had been subsequently prominently connected with the development of the Indian system, appeared upon the scene. In the spring of 1863 his attention had been drawn to China by a retired partner of the house of Jardine, Matheson & Company, and, impressed by the possibilities of the rapid development in all directions that would follow the introduction of railways, he determined in the following autumn to visit the country. At the same time he formed the ambition to save China from what he believed to be the evils of haphazard development. His view was that " a comprehensive system decided on at the outset, and all lines made in conformity with it, would avert the evils of the English want of such a system, where in many cases double capital has been laid out to perform work which one expenditure could have adequately provided for, seriously prejudicing the prospects of the shareholders on both lines, and depriving the public of the full economical advantage which under a sound organised system would have been obtained." *

This conviction will be found impressed upon and indeed to have been the main feature of Sir MacDonald's proposals.

On his arrival in the Far East he embarked hopefully on his self-imposed task. Doubtless, however, he found the difficulties in his path very much greater on closer acquaintance than he had supposed. The fate of the Shanghai petitioners had given a sufficiently clear indication of the Chinese official view, and notwithstanding the optimistic tone of the report which he subsequently issued he can scarcely have failed to realise that the time had not arrived for the introduction of a system entailing such far-reaching changes. As yet the Chinese were not prepared for the reception of foreign ideas. They had hardly begun to modify the old contemptuous estimate in which the foreigner and all things foreign had from time immemorial been held, while the prejudice and hostility which in time past had characterised the Chinese official relations with foreigners was as deep-seated and bitter as in the earliest days of foreign intercourse.

The attitude of the Chinese is intelligible. Scarcely twenty

1 Railways in China, by Sir MacDonald Stephenson (1864), p. 21.

years had elapsed since foreigners had obtained anything like a secure foothold in China. Prior to the Treaty of Nanking their business dealings had been confined to Canton, where they had resided on sufferance under a regime of constant humiliation. Only on the conclusion of that Treaty in 1842 did they attain a status and cease to occupy a position that might, perhaps, be not inaptly compared to that of the peregrini of ancient Rome.

Unfortunately, the Chinese failed to appreciate, or, as seems nearer the truth, determined to ignore the changed conditions, and consequently a prolonged struggle ensued to obtain a reasonably practical recognition of the change that had been wrought.

Things were brought to a head in what is known as the " Arrow War," which resulted in 1858 in the Treaty of Tientsin and a general extension of the rights of foreigners, these events again being followed two years later by Lord Elgin's return to China and the invasion of Peking by an armed force in order to compel observance of the terms of the new Treaty.

Thus in less than twenty years there had been three wars between Great Britain and China ; or rather, Great Britain had been engaged in three wars with China, in two of which, those of 1858 and 1860, a measure of assistance had been rendered to the former power by France. On each occasion the troops of China had been defeated. But the humiliation did not end there. Despite years of successful resistance on the part of the Chinese, the foreign trader had at last gained a permanent footing in the country.

It naturally resulted that in the years immediately following these events the hostile feeling against foreigners became intensified. It would be matter of surprise had it been otherwise. Treaties of themselves do not necessarily either engender friendly feelings or guarantee their existence. At any rate, as far as the official classes were concerned, the attitude of the Chinese in the early sixties was bitterly anti-foreign. They were pledged to the maintenance of what Mr. Alexander Michie calls " the settled policy of keeping foreigners at arms' length at all costs," and there was no hope of any encouragement being forthcoming for enterprises in which foreigners could be in any way interested. The country, in fact, had not opened up in the way that the more sanguine had hoped, hence the unpromising state of affairs when Sir MacDonald Stephenson arrived in the field.

SIR MACDONALD STEPHENSON 5

His first act was to invite the views of foreigners of all classes, merchants, missionaries, and officials, on the subject of the desirability of the introduction of railways. There was, of course, no room for difference of opinion on this point. But the question rather was whether the moment was opportune, and some of those applied to for an expression of view qualified their opinion with hints at difficulties, or doubts as to whether the time had come for such a move. The majority, however, having expressed their approval and dwelt with enthusiasm on the commercial aspects of the matter, refrained from comment in regard to the practicability of the proposal, and quietly awaited further developments.

The opinion of the Chinese was next sought, and for this purpose a large meeting of merchants was held in Canton.

Chinese merchants have always been characterised by a strong utilitarian sense ; they have only to be convinced of individual benefit to adopt the means that conduce to so desirable an end. When, therefore, it was shown for the sake of illustration that the construction of a railway from Canton into the interior would inevitably cause a great increase in the declining trade of the place, they were unanimous in their desire for its immediate construction.

Sir MacDonald seems to have derived much encouragement from the enthusiasm of the Cantonese. What he apparently did not realise was that this enthusiastic class occupied the lowest grade in the Chinese polity, and at that time enjoyed but little influence.1

The next step was to formulate a scheme, and accordingly a comprehensive system, that should not only supply the needs of China but bring her into rail communication with the outside world, was planned. Taking Hankow, the great emporium of Central China on the Yangtze River, as a starting-point, Sir MacDonald proposed lines eastward to Shanghai and westward through the provinces of Szechuen and Yunnan to India. From Chinkiang, which was to be served by this great Yangtze Valley trunk, a line to Peking by way of Tientsin was projected, while a line was to run from Hankow southward to Canton. Thus the

1 The Chinese polity is divided into four classes in the following order — (1) Literati, or scholars, the class from which officials are drawn ; (2) agriculturists ; (3) artisans ; and (4) traders.

four chief Treaty Ports of the Empire, which are also the most important trade centres, were to be put in rail communication.

In addition to these great trunk lines it was proposed to connect Ningpo with Shanghai, and to carry a line from Foochow inland to tap the trade of the rich province of Fuhkien.

A connection was also proposed between Canton and the projected line to India, which latter was shown in the map illustrating the scheme as taking a great southerly bend as it approached the western boundary of China.

It will be observed that the routes of two of the chief lines approximated roughly to the routes to be taken by the projected Canton-Hankow and Tientsin-Nanking railways. But the Shanghai-Nanking iSbilway, now under construction, is the only section of the Yangtze Valley system of the future which will coincide with that projected by Sir MacDonald Stephenson. The latter's proposals were for a line closely following the river, but the idea of the railways now projected in this region is to develop the hinterland and facilitate communication with the river ; to prove subsidiary to, rather than to enter into competition with, the great waterway. Another point that may be noted is that the advantages of a line putting Hankow and the capital in direct communication, following the route taken by the present Ching- Han line, do not appear to have suggested themselves to Sir Mac- Donald's mind. Perhaps he thought, as some still appear to think, that the railway between Tientsin and the Yangtze would prove too serious a competitor of such a line.

So much, however, for the main arteries and the general scheme of the system as it was to be gradually developed. Sir MacDonald now proposed that a start be made on certain short sections by way of experiment. In view of the desirability of impressing the Imperial Government with the advantages of railways, he thought operations might be commenced with advantage under the eyes of the Court itself on the Peking-Tientsin section of the Peking- Chinkiang line. More valuable lines commercially would be those between Shanghai and Soochow, or between Canton and Fatshan. It might therefore even be desirable, in his opinion, to start the construction of two or three lines simultaneously.

In this shape the scheme was laid before the Imperial Government, and the proposal put forward that the experimental lines should be undertaken as Government work. Every care was

SIR MACDONALD STEPHENSON 7

taken to remove difficulties, to anticipate objections, and to meet the prejudices of the Chinese Imperial authorities. Special stress was laid on the fact that China was a land of vast resources ; that materials of most kinds and labour of all kinds were to be had in the country. Chinese railways could, in fact, be built by the Chinese themselves.

The result, however, was preordained. Sir MacDonald Stephenson, in virtue of his credentials, and possibly of his high professional standing, obtained for himself a respectful hearing ; but his memoranda shared a different fate, finding their way into pigeon-holes from which they have never been disinterred. The Government was impervious to argument, the fact being that, apart from all questions of prejudice, of which our own early railway experience should make English critics tolerant, the country as a whole was not conscious of the need of improved communication, and the officials were determined that railways, if introduced at all, should be introduced by the Chinese themselves when the need arose.

The last word had been spoken. With it ended a scheme which has often been criticised and more often scoffed at as the dream of a visionary. Yet such criticism seems hardly justified. Its author did not aim, as has been generally represented, at the immediate creation of a vast system. He urged experiments on an unambitious scale, and further development on proper lines as results might justify. As has been already indicated, his object was to prevent the repetition in China of the mistakes that had been made in other countries by haphazard development. And except that at times the routes of some of the lines were chosen without much regard to rivers and mountain ranges, due to lack of knowledge of the configuration of the country, and that it was proposed to put Peking in communication with India, an idea calculated to rouse the suspicions of the Chinese at the outset, the scheme, it must be admitted, was fundamentally sound.

The mistake Sir MacDonald made was, of course, in assuming the existence in China of the dangers he set himself to obviate. He almost seemed to overlook the fact that he was not dealing with a new country, but on the contrary with a country densely populated and in some respects highly developed : a country of great distances in which trade routes and trade centres were, and for centuries had been, very clearly determined. It required no great railway expert to locate trunk lines. Their routes in most cases were obvious to the most superficial observer of the trade and geographical conditions of the country.

He also mistook the Chinese character and the temper of the official classes. The information at his disposal in England was not sufficient to enable him to form a just estimate of the circumstances of the time. His scheme, like that of the Shanghai merchants, was premature. On the other hand, it must be borne in mind that there is much to be said for his contention in reply to critics, " that if a measure is sound and assuredly beneficial, as in this case it is admitted to be on all hands, it can never be premature to take the initiative step, advancing only from time to time as the opportunity may be afforded." 1

1 Railways in China, by Sir MacDonald Stephenson (1864), p. 13.

Chapter II The Woosung Road

THE idea of a railway system for China was not allowed to die with the departure of Sir MacDonald Stephenson. On the contrary, it was quietly developed by some of the leading men in Shanghai, who determined by way of experiment to connect the port with Woosung 1 by a line of rail.

The main end in view was to provide an object-lesson for the Chinese, and by accustoming their minds to the new idea to pave the way for future development.

Shanghai is situated on the Huangpu River, while Woosung lies at the point where that river empties itself into the estuary of the Yangtze. The latter place made a convenient objective of the proposed railway on account of its geographical position, in particular, as being on the same side of the river as Shanghai and distant only twelve miles, a suitable length for a pioneer line. It also commended itself on other grounds. Besides affording the required object-lesson, such a line would, it was thought, prove a considerable convenience to the Shanghai community, as putting them in rapid land communication with the Woosung anchorage.

The scheme having taken definite shape, a company was formed in 1865, Mr. Henry Robinson being appointed engineer. The route proposed presented no engineering difficulties, but Mr. Robinson suggested carrying the line at certain points on piles and girders with a view to meeting the prejudices of the people.

In China, with the exception of cemeteries connected with charitable institutions, and in the vicinity of some of the larger cities, there are no public burial grounds. Generally speaking, it is a country of village communities and small landholders ; every family has a holding of greater or less extent, which in most cases 1 Woosung now is also a Treaty Port, having been opened in 1898.

io RAILWAY ENTERPRISE IN CHINA

contains the family graveyard. The result is that in many parts of the country it is impossible to follow a straight line for any distance in any given direction without coming upon an enclosure, usually surrounded by a low earth rampart and small outer ditch, containing a number of tumuli, the prevailing form of grave throughout the land. When it is added that the Chinese are ancestor worshippers, it will be readily seen what play can be made against an unfortunate railway company which has to overcome religious scruples, genuine and otherwise, before it can deal with the commercial aspects of the case.

The engineer's idea in carrying the line on piles over any graveyards on the proposed route was to obviate the necessity of disturbing them, and thus if possible avoid conflict with the owners. But the proposal came to nothing. The prejudice against railways was still acute, and the scheme for the time being perforce fell through.

It was, however, soon revived in another form. Messrs. Jardine, Matheson & Company conceived the idea of going to work quietly and buying up land between Shanghai and Woosung with the ostensible object of making a road, and the ultimate intention, once the land was bought and put into shape, of laying rails. The proposed road being outside the foreign settlement, the consent of the Chinese authorities was obtained for its construction, but the nature of the scheme was not disclosed.

The preliminary steps having been taken, a company, known as the Woosung Road Company, was formed, and the work of buying up land proceeded with. The process, however, was slow, and as events proved costly, for when all the land necessary for the accomplishment of the object in view had been acquired it was found that the balance of capital in hand amounted only to £20,000, while the estimates for the line constructed on the English model amounted to about £100,000. As it seemed inadvisable at the moment to embark on the further expenditure of so large a sum, it was decided to suspend operations temporarily.

The next move was made in 1875, when Mr. Macandrew and Mr. F. B. Johnson, two of the directors of the company, while on a visit to England, met Mr. Rapier, of Messrs. Ransomes & Rapier, who suggested the construction of a line on a much smaller scale than that originally estimated for, and introduced to their notice a small locomotive which he thought would prove suitable.

THE WOOSUNG ROAD n

The weight of this engine in working order was only 22 cwt., but it was strong enough to take an appreciable load, and able to run fifteen to twenty miles an hour.

It was consequently subjected to a number of tests, and, having been altered in a few particulars, the company decided to adopt the suggestion, and Mr. Rapier was asked to prepare estimates. This was done on the basis of a 30-inch gauge, and rails of 26 pound weight per yard ; but even on these modest lines it was found that without a sacrifice of efficiency the work could not be carried out for a less sum than £28,000, — that is to say £8000 in excess of the capital in hand. Further delay was threatened when a solution of the difficulty was found in a proposal of Mr. John Dixon, who agreed to contract for the line in accordance with Mr. Rapier's estimate for £20,000 in cash and £8000 in shares.

This offer was accepted, and arrangements pushed on with all celerity. The contract was signed in August 1875, and the services of Mr. Gabriel James Morrison were secured as engineer; Mr. G. B. Bruce becoming honorary engineer in England.

On the 1st of October Mr. Morrison left England for Shanghai by way of the United States. Towards the end of the month the S.S. Glenroy, which had been chartered for the purpose, sailed from London direct for Shanghai, having on board the locomotive, which had been appropriately christened the " Pioneer," a considerable amount of material for the permanent way, and Mr. Morrison's assistants. Mr. Rapier pays the latter a deserved tribute when he says that " in setting out on such an expedition these men were quite aware of the personal risks they might have to encounter : on the one hand, from probable interference of the authorities, and on the other, from possible misunderstandings with large masses of people ; to say nothing of the dangers of the climate to persons working long hours, under circumstances involving exposure to weather of all kinds." x

The S.S. Glenroy arrived in Shanghai on the 20th of December, Mr. Morrison arriving nearly three weeks later on the 8th of January 1876.

The work was commenced immediately ; a considerable amount of time being saved by the fact that, as the land for the road had been acquired, a substantial embankment, about eight feet high, had been constructed and a considerable number of small water-

1 The First Railway in China (1878), by Richard C. Rapier, p. 5.

courses culverted. Some fifteen small streams remained to be bridged, and when this was done there was a through road ready to receive the rails.

The bridge work was taken in hand without delay, and a few days later, on the 20th of January, the first rail was laid by the wife of the engineer. By the 14th of February about three-quarters of a mile had been laid, and the " Pioneer " performed the first railway run ever made in China.

Somewhat contrary to expectation, no opposition was manifested by the Chinese in the district ; on the contrary, a continually increasing and friendly interest was displayed as the work proceeded. Unfortunately, however, this popular interest ill accorded with the official view, and, causing some alarm in official circles, precipitated interference. The first check was received on the 23rd of February at the hands of the Shanghai Taotai, who pointed out that the construction of the line was not authorised, and pressed for a discontinuance of the work pending instructions from Peking. The matter was compromised by the company giving an undertaking not to run the " Pioneer " again for a month, which would give the Taotai time to communicate with the capital.

Meanwhile the laying of the rails proceeded apace, and in due course, the month having expired and no further protest being forthcoming, the engine resumed work in the latter part of March. The same friendly interest continued to be manifested by the people, and in one of the May issues of The Times a letter appeared from their Shanghai correspondent graphically describing the scene.

" Several miles of road," he wrote, " have been completely ballasted, and the whole country side is alive with interest. Literally, thousands of people from all the neighbouring towns and villages crowd down every day to watch proceedings and criticise every item, from the little engine down to the pebbles of the ballast. All are perfectly good-humoured, and evidently intent on a pleasant day's outing. Old men and children, old women and maidens, literati, artisans, and peasants — every class of society is represented."