With reference to the report that the China Merchants' 8. N. Ca. and its properties were being mortgaged to the Hongkong Shanghai Banking Corporation for a loan of $5,000,000, and the statement that the loan was being negotiated by Mr. Yeh Kung-cho, Minister of Finance in Dr. Sun Yat-sen's Administration, for his chief's military campaign against the north, we are informed that it ig correct to state that a loan of $5,000,000 has been arranged with the Hongkong & Shanghai Bank, but not through Mr. Yeh. We are asked by the company to deny the statement that the money is intended for military purposes.
The loan, which will bear 8 per cent. interest, will be used for the business of the company; four millions will be expended for the repayment of old debts on which the company has at present to pay 10 per cent. interest, and the remaining million will be used for the repair of ships, etc.
Text read from the printed page and cleaned; old type leaves the occasional error.