THE EXTENSION OF THE SETTLEMENT, 1898-1899

Many things combined to make the year 1898 an important one for the International Settlement. Among others, there was the establishment of an efficient Health Department under Dr. Arthur Stanley, who did much for the improvement of health conditions in the International Settlement, and introduced the Pasteur treatment. A railway line, built by the Chinese between Shanghai and Woosung, was opened to traffic, and thus an enterprise which had ended so disastrously in 1877 was now successfully achieved.

The most important event, however, was the extension of the Settlement.

There was real need for enlarging its boundaries. The Chinese population, attracted by the advantages of living within this area, was steadily growing, and the number of mills, filatures, and other industrial enterprises was rapidly multiplying. It became evident that if Shanghai was to become the great city which it was capable of becoming, further room for expansion must be secured.

The Council, according to the Land Regulations, could not approach the Chinese authorities directly on the matter, but must act through the Consular Body. A letter therefore was addressed to this Body on January 3, 1896, requesting its assistance in securing such an extension of the settlement area as would provide ample room for future development.

While official negotiations were in progress the Council sounded the local Chinese officials and gentry and sought their co-operation. Much to its satisfaction, it was able to clear the atmosphere of distrust. The local officials and gentry ceased to oppose the scheme, and the native landowners as a class became favourably disposed towards it.

Encouraged by the attitude of the local Chinese authorities, the Council revised the original proposal of 1896, and asked for a larger extension, taking in a considerable portion of land adjoining Jessfield Road in the western district, the Paoshan h8ien, and Pootung, sections where foreigners had already purchased large tracts of land and where mills had been erected.

It so happened that at the same time, the French were seeking for the extension of their Concession towards Siccawei. In connection with the enlargement of the Concession, the question of putting a road through the Ningpo cemetery was revived. In 1898, in spite of the agreement arrived at in 1874, the compulsory surrender of this cemetery was decided upon by the Taotai and the French Consul-General, who offered to pay the owners of the land its duly assessed value.

Before proceeding to carry out their plan the French took strong precautionary measures and landed some men from one of the men-of-war in harbour. On July 16, the walls of the cemetery were demolished. This resulted on the following day in a riot, which was sternly quelled, with 12 fatal casualties among the rioters.

Although great indignation was aroused among the Chinese residents by this high-handed action, the French authorities continued to press for the extension of their Concession. They demanded not only an extension in the direction of Siccawei, but also land on the right bank of the Whangpoo, and the Pootung frontage opposite the French Bund, where large tracts of land were owned by British and American shipping firms. The owners vigorously protested and objected to being deprived of the jurisdiction of their own courts by being included in the French Concession. The British and American Ministers upheld these protests in Peking, and the matter was referred to the Home Governments.

On the other hand, the French Minister protested against the extension of the International Settlement on the ground that it included land already earmarked for the French Concession. This friction between the International Settlement and the French Concession brought about a deadlock.

As far as the Chinese Government was concerned, since it was opposed to the extension of both the French Concession and the International Settlement, any excuse for procrastination was welcome. The Chinese authorities were unwilling to have any land in the Paoshan hsien included in the International Settlement, as it was very thickly populated, and was a separate administrative district from the Shanghai hsien. Furthermore the inclusion of land in the Paoshan hsien was objectionable as it would put the Shanghai railway station of the Shanghai Woosung line within the limits of the foreign Municipality.

A special General Meeting of the Chamber of Commerce of the International Settlement was held on July 17, 1898, at which it was unanimously decided to bring the matter to the attention of the foreign Ministers at Peking, individually. Mr. J. S. Fearon, Chairman of the Shanghai Municipal Council, paid a visit to the Capital for this purpose. His representations were favourably received, but the conflict between British and French interests still prevented any active measures being taken.

After some time, the dispute between these two countries was settled by their respective governments, and then their representatives, with the American and German Ministers, joined in addressing identical notes to the Tsung-li Yamen, pressing the Chinese Government to instruct the Viceroy at Nanking to grant the extensions. On April 13, 1899, the Ministers of the Tsung-li Yamen informed the foreign Legations verbally that the Viceroy of Nanking had been instructed to act in accordance with the request of the Ministers.

The yielding of the Chinese Government was due in no small measure to the fact that after the disastrous war with Japan, it was too weak to risk giving offence to the foreign powers.

To expedite matters the Council asked Mr. (now Dr.) J. C. Ferguson, former President of Nanyang College, to interview the Viceroy at Nanking. This visit resulted in the Viceroy's appointing Mr. Ferguson as one of the two deputies to negotiate in regard to settlement extension. At the same time the deputies were instructed not to include any land in the Paoshan hsien in the new area. The actual delimitation of the boundaries was carried out by the Public Works Department of the Municipal Council, in conjunction with the Shanghai Magistrate and Messrs. J. C. Ferguson and Yti, and was accomplished in an amicable manner.

A special meeting of the Ratepayers was held June 29, 1899, at which a motion adopting the new boundaries was carried unanimously and forwarded to the Senior Consul, who in turn transmitted it for ratification to the Diplomatic Body and the Chinese Government. In July, 1899, the Council was informed that the extension had been sanctioned.

In the meantime the Taotai issued a proclamation, which was posted in the new territory, giving the Council authority to collect taxes and to exercise municipal control.

The boundaries of the International Settlement after the extension were as follows:

1.Upon the North: The Soochow Creek from the Hsiao Sha Ferry to a point about 70 yards west of the entrance thereinto of the Defence Creek, thence in a northerly direction to the Shanghai-Paoshan boundary, thence following this boundary to the point where it meets the Hongkew Creek and thence in an easterly direction to the mouth of the Kukapang.

2.Upon the East: The Whangpoo River from the mouth of the Kukapang to the mouth of the Yangkingpang.

3.Upon the South: The Yangkingpang from its mouth to the entrance thereinto of the Defence Creek, thence in a westerly direction following the line of the northern branch of the Great Western Road, and thereafter along that road to the Temple of Agriculture in the rear of the Bubbling Well village.

4.Upon the West: From the Temple of Agriculture in a northerly direction to the Hsiao Sha Ferry on the Soochow Creek.

The following table indicates how much the Settlement was enlarged by the extension:

Before After 1899. 1899. Area in square miles. 2.75 8.35 Area in English acres 1,768 5,584 Area in Chinese mow 10,606 33,503 Greatest length in miles 3.75 7.50 Greatest breadth in miles 1.30 2.27 Length of boundary line in miles (on land) 6.43 11.13 Length of boundary line in miles on Soochow Creek and Whangpoo River 3.50 9.76

Simultaneously the French Concession was largely increased, but did not include the British or American owned land, which had been in dispute.

In spite of the considerable increase in the area of the Settlement, the British authorities were not entirely satisfied. In a telegram dated May 12, 1899, the Marquis of Salisbury, H.B.M.'s Secretary of State for Foreign Affairs, stated that H.B.M.'s Minister at Peking "may agree to the proposed arrangement, but should take care that nothing is said which would in any way pledge us to refrain from making further demands for extension in the direction of Paoshan or elsewhere in the future."

Owing to the large amount of capital invested in China by British subjects and to the growing importance of Shanghai as a centre for their trade, it was natural that the British Government should be greatly interested in future developments.

Considerable difficulty was encountered by the Council when it undertook to develop roads across the newly included territory. Opposition was made to the removal of graves, and to the filling-in of creeks, and it took time to adjust things satisfactorily. A Municipal Cadastral Office was established in 1900 for keeping a complete record of land owned in the Settlement and vicinity, so that its value might be assessed from time to time, as a basis for levying a land tax for the municipal revenue.

Establishment of the Chinese Post Office

An important event belonging to this period is the establishment of the Imperial Post in 1896, at first under the supervision of the Maritime Customs.

Hitherto mails for foreign ports had been handled by six national post offices, British, French, German, Russian, Japanese and American. The Shanghai Municipal Council conducted a Local Post Office for domestic mails as far back as 1866,although there was some question as to whether such a procedure was sanctioned by the Land Regulations. The Local Post handled mails for places in the Settlements and in other Treaty Ports, and issued its own set of stamps.

When the Imperial Post came into existence, it began to handle mails for the Treaty Ports, and requested the Local Post Office to withdraw. Neither the Chamber of Commerce nor the Ratepayers would at first consent to this, but after the local steamship companies declared they could only carry Imperial mails for ports in China, the Local Post Office was discontinued.

China was admitted to the Postal Union in 1914, but the various national post offices were not finally withdrawn until after the Washington Conference, 1921-1922.

A large Chinese post office building was erected on Peking Road in 1907, and an efficient staff organized. Although there was some doubt at first as to whether China was prepared to undertake the supervision of postal affairs, yet experience proved that on the whole the mail service was better than it had been under the former system. The Postal Department was well run and brought in a small revenue to the Government. Even at times of internal disturbances in China, it continued to function in spite of many difficulties.

Shanghai Mutual Telephone Company

The first telephone company in Shanghai was conducted by the Great Northern Telegraph Company, which was established in 1881. It was only on a small scale, having 338 subscribers exclusive of the Municipality, and later the business was handed over to the China and Japan Telephone Company.

On March 10, 1898, at a Ratepayers' meeting, a resolution was passed authorizing the Council to enter into negotiations with the China and Japan Telephone Company, or with any other similar company, and, at its discretion, to grant a lease. Tenders were invited, and that of the Shanghai Mutual Telephone Company was accepted, partly because the company was formed locally with Directors in Shanghai, and partly because it offered to supply service at a cheaper rate than other companies.

Under the agreement, the company was to complete the lines by April, 1901, but by August 1, 1900, a service was opened between 100 of the principal stations, and on the day for the completion of the work of construction, the company was able to announce that it had connected all old subscribers, and added a considerable number of new ones. The work of the company has gradually been extended and is now being changed from the manual to the automatic system.

Lack of Traffic Facilities

By the introduction of the telephone, Shanghai put itself in line with other growing commercial cities, but it was still very backward as regards traffic. There were carriages and ricshas, but no trams and buses, and the day of the automobile was not to come until 1902.

At a Ratepayers' meeting on October 17, 1898, a motion was made that the construction of tramways in Shanghai should be considered. The conservative residents, however, fearing interference with the existing traffic, rejected the motion.

The Reform Edicts of 1898

While the negotiations in regard to the extension of the Settlements were in progress, an important movement was taking place in which the residents of the Settlements, both Chinese and foreign, were deeply interested. The Emperor, Kwang Hsu, came under the influence of a group of young reformers, prominent among whom was Kang Yu-wei, a native of Kwangtung, a man of marked ability and strong personality.

As a result, a series of reform edicts were published which aimed at modernizing the ancient system of government. The Empress Dowager, Tzu-hsi, and the officials of the old type, regarding these innovations with consternation, gained possession of the person of the Emperor by a coup d'etat and forced him into retirement. This left the Empress Dowager in control, and she proceeded to seize the reformers. Kang Yu-wei made his escape on a British vessel to Shanghai and at Woosung was transferred to the P. and 0. Steamer "Ballarat," leaving for Hongkong.

In regard to the reform movement of which so much was expected and which failed so lamentably, Cordier, the French historian, says, "The great fault of the reformers was to seek to transform China in too short a period, and to take in hand at the same time all the machinery of Government, to strike at one time at all abuses. In Japan there was a Feudal system to crush, but not the traditions of centuries to overcome."

Sir Robert Hart wrote in a private letter to a friend, "The Emperor's head was set in the right direction, but his advisers, Kang Yu-wei and others, had had no experience of work, and they simply killed progress with kindness. They stuffed it against its powers of assimilation and digesting, with food enough in three months for three times as many years; so it is killed for the present."