To the Raitor of the "Nonru-Cinxa Dany News Sm—With the coming arrival of Brigadier-General Hammond and other British railway experts, one wonders if this is in compliance' with 4 real desire on the part of the Chinese Government for enlighten ment on the reorganization of its railways? In reply to this we are ai sured by Sir John Simon that "the appointment was the result of an en-{rely spontaneous invitation from the JChinese Government" and that "the mission represents an independent {technical enquiry with no political 'There can be no question as to the capabilities of Brigadier-General Hammond, his past record pointing Jelearly to' such and, no doubt, his: choice of assistants will help to make for an exhaustive examination what is necessary to accomplish the [desired results.
To many of us in China who are interested in the railways this mission may appear to be an unnecessary expense at a time when bondholders fare looking for returns from railways that are at present showing ample net winings to pay* the modest. per ent, interest on the loans contracted when money was at the same time cheap in interest, and valuable in Durchasing power. Second thoughts, however, must be given place, even bondholders are not desirous of simply. gathering in their just dues however Jmodest these may be, they also need to take the long view and thus be assured of a regular return with Jamortization on specified dates accord-{ing to solemn contracts, and this can, only be accomplished by having the Fallways run on economical lines, with @ purely business management, free from the unnecessarily' high Overhead, as is generally acknow-Jedged to be the case on the Chinese Government railways.
It would be both fatuous and im-Pertinent on my part to attempt 10. to enumerate further the many needs and changes necessary ere successful reorganization can be accomplished, these will be sufficiently obvious the members of the mission long ere they "have finished their labours, though, T have no doubt, a word the wise would be of exiteme value; there are, however, others of greater wisdom and knowledge than I from whom such could be obtained, As a bondholder I am naturally terested in what the Chinese Government intends to do to liquidate its, arrears of railway defaults. It is now. exactly ten years since the last payment was made on the Tsinpu bonds. Thold. This despite the fact that they are guaranteed on the Increased Cus lorns revenue consequent upon th: abolition of likin, notwithstanding the enormous increase of Customs receipts nothing has been paid from such implement that promise. Apart from fois, during the last three years the net earnings of this railway has been sufficient, at the recent rate of ex: change, t0 pay twelve of these twenty half-yearly defaults. It would be interesting to hear from the Ministry of Railways why something towards this has not been attempted?
During recent months we have heard and read much of the urgent need of a huge loan to China, not, only so, we have read reports from jeapable' managers of various Chinese banks-about the profs that would accrue to foreign capital if used to increase the industrial possibilities of [China, and especially of the necessity of a large increase of railway' mileage and how profitable a feld foreign capital would have It invested for such purposes. Whatever may transpire regarding @ loan, one, cannot but be impressed by Sir John. JSimon's "reply to a question in the [House of Commons to the effect that there is at present no prospect of a private loan to China being under contemplation. A reply sufficient to, show that with people who count in tre financial world promises untulfilled carry no weight.
To us all, Chinese and forei alike, it is hoped that the Government of China will make effective any [Suggestions the Hammond Mission may put forward to render more efficient the running of her railways.
Text read from the printed page and cleaned; old type leaves the occasional error.