districts along the lines of the only railways in
the province and the only ones soon to be built, including the as yet
uncompleted Hankow-Canton railway. Possibly this fact accounts for the
anxiety of the British partners in the Consortium that the completion
of this line be the first undertaking financed by the Consortium. The
document also includes what is perhaps a novelty in legal documents
having such a momentous economic importance, namely, the words "etc."
after the districts enumerated by name.

For this concession, the British syndicate agreed to pay the
provincial government the sum of $1,000,000 (silver of course). This
million dollars is to bear six per cent interest to the company, and
capital and interest are to be paid back to the company by the
provincial government out of the dividends (if any) it is to receive.
The nature of these "dividends" is set forth in an article which
should receive the careful attention of promoters elsewhere as a model
of the possibilities of exploiting contracts. The ten million capital
is divided equally into "A" shares and "B" shares. The "A" shares go
unreservedly to the directors of the company, and three millions of
the "B" shares are to be allotted by the directors of the company at
their discretion. The other two million are again divided into equal
portions, one portion representing the sum advanced by the company to
the province and to be paid back as just specified, while the other
million--one-tenth of the capitalization--is to be a trust fund the
dividends of which are to go for the "benefit of the poor people of
the province" and for an educational fund for the province. But before
any dividends are paid upon the "B" shares, eight per cent dividends
are to be paid upon the "A" shares and a _dollar a ton royalty_ upon
all coal mined. Those having any familiarity with the coal business
with its usual royalty of about ten cents a ton can easily calculate
the splendid prospects of the "poor people" and the schools, prospects
which represent the total return to the provinces of a concession of
untold worth. The contract also guarantees to the company the
assistance of the provincial government in expropriating the owners of
all coal mines which have been granted to other companies but not yet
worked. These technical details make dry reading, but they throw light
upon the spirit with which the British company undertook its predatory
negotiations with a government reno