American China Development Company
The American China Development Company was a company that aimed to gain railway, mining, and other industrial concessions in China. Led by former Ohio senator and railway lawyer,
History
Establishment
A.W. Bash, of Seattle, was sent to China in the spring of 1896 as an agent for the American China Development Company, arriving with letters of recommendation from the State Department.
Canton–Hankow Railway
The American China Development Company then pursued the right to build the southern leg, from
The project faced uncertainty, given the interest of other powers—particularly France and Britain—in China. As a result, the American China Development Company agreed to share half of their concession for the line with the
International competition concerning development interests in China continued to be an issue. In December 1901, the American China Development Company was reorganized, which resulted in the Company taking on two Belgian directors, Senator de Volder of Brussels and Pierre Mali, the Belgian consul in New York.
When the American China Development Company first reached their agreement with the Chinese government, they had agreed to remain an American-owned and controlled company, and were not allowed, under the terms of the contract, to sell out to another nation.[2] Many Chinese officials were concerned about the effect of giving concessions to foreign companies, especially those with a political interest in China, like Belgium or France.[4] When Belgian influence increased within the American China Development Company in late 1903 to early 1904, the governors and the members of the upper class of Hunan and Hubei pushed for the cancellation of the American China Development Company's concession to prevent the Belgians from controlling the railway line.[2] In response to the threat of losing their concession, the company asked that the State Department help the American China Development Company regain the majority of the shares of stocks in the spring of 1904. While the United States government was initially supportive of the interests of the American company, as the dispute intensified, the State Department refused to become further involved in the conflict.[2]
The
Dissolution
In October 1904, work on the railway line had come to a stop. A month later, in November 1904, the imperial government formally notified the charge d’affaires of the American China Development Company of the Chinese government's intention to cancel the concession. Despite American political pressure on the Chinese foreign office, the throne allowed Viceroy Zhang Zhidong to officially revoke the concession in December, 1904. After the loss of the concession for the line, the Belgian king Leopold allowed the Americans to buy back company stock in January 1905. J.P. Morgan bought 1200 shares, making him the new controlling interest in the company. Between January and June 1905, the American China Development Company worked to come to a settlement with the Chinese government for the loss of the concession. Ultimately on June 7, 1905, the American China Development Company and the Chinese came to an agreement: China would pay $675,000 in recompense to cover the properties and bonds sold by the company. In August 1905, the stockholders of the company voted to accept June agreement.[2]
Company Timeline
1895- Company incorporated in NJ
1896- A.W. Bash sent to China as agent of the company
November, 1896- Bash reaches initial agreement with Sheng Hsuan-huai
1898- Bash and Chinese minister in Washington come to loan agreement for the concession of the Guangzhou–Wuchang line
Winter 1898-1899- Parsons surveys the proposed route
February, 1899- American China Development Company agrees to share concession with the British and Chinese Corporation
July, 1900- Company reaches supplementary agreement
December, 1901- Company is reorganized, with two Belgian directors
1903-1904-Belgians gain majority control of the company
Spring 1904- American Development Company seeks support from the State Department
October, 1904- work on railway stops
December, 1904- concession officially revoked by Chinese government
January, 1905- Americans regain control of the company
August, 1905- Company officially agrees to settlement
References
- ^ a b Hunt, Michael H. The Making of a Special Relationship: The United States and China to 1914. Columbia University Press, New York, 1983.
- ^ a b c d e f g h i j k l m n o Braisted, William R. “The United States and the American Development Company.” The Far Eastern Quarterly, vol 11, no 2 (1952): 147-165.
- ^ a b c d Young, Marilyn B. The Rhetoric of Empire: American China Policy, 1895-1901. Harvard University Press, Cambridge, Massachusetts, 1968.
- ^ a b Chi, Madeline. “Shanghai-Hangchow-Ningpo Railway Loan: A Case Study of the Rights Recovery Movement.” Modern Asian Studies, vol 7, no 1 (1973): 85-106
- ^ “Canton-Hankow Railway,” The New York Times, July 14, 1902