Construction and Loan by Peking Syndicate Peking, Nov. 28.
Reuter learns, in connexion with the Presidential mandate of the 25th instant sanctioning the construction of the Ching-Meng branch railway, that this railway to all intents and purposes is a prolongation westwards of the Tao-Ching railway from its present terminus, Chinghua, to Meng-hsien on the left bank of the Yellow River, immediately northeast of Honanfu, an important ferry over which the bulk of the trade between the Luanfu and Tzechow districts of Shansi and the south passes. The line, which will be about 65 kilometres in length, will pass through a highly cul: tivated district to which it will be of very considerable benefit by bringing it into direct communication with the main railway system of the country.
The agreement refered to in the Presidential Mandate is made with the Peking Syndicate, Ld., who, besides being administrators and general managers of the Tao-Ching Railway, possess very large mining interests in the locality.
The agreement provides for a loan for the construction of the line, the net amount of which and the conditions of its issue are to be fixed not later than three years after the date of the agreement. In the meantime the Syndicate is to advance to the Government sufficient funds to commence and carry on the construction of the line.
Security axp ENGINEERING.
Both the loan and the advances are secured, inter alia, by a general guarantee of the Government and firstly by a mortgage on the permanent way of the railway and its earnings and secondly by certain earnings of the Tao-Ching Railway.
The construction of the line will be carried out under the control of an engineer nominated by the Syndicate and appointed by the director of the Tao-Ching Railway Administration, who will also act concurrently as Director of the new line.
The engineer may, with the consent of the Tao-Ching Railway Administration, employ in the work of construction, any of the staff, rolling stock, plant and tools of the Tao-Ching railway, on rates to be determined by the Director of the Tao-Ching Railway and the Peking Syndicate are appointed purchasing agents for the new line and upon all materials purchased abroad they will receive a commission of 3 per cent. on the net cost thereof.
No provision is made for rolling stock, it being arranged that when
Text read from the printed page and cleaned; old type leaves the occasional error.