Fushun (near Mukden), in Manchuria (owned and operated by Japanese).
Heijo (near Chemulpo), in Korea (owned and operated by Japanese).
Ping Yang, in Korea (owned and operated by Japanese).
Hungay and Kebao, in Tonquin (owned and operated by French and Hongkong capitalists).
This of course is only a beginning. On account of poor transportation by rail and canal, China imports about 2,000,000 tons of Japanese coal, and Hongkong and Shanghai import Australian and Welsh coal, some of it for admiralty purposes. The largest anthracite mines now open are, in their order, in Shansi, Honan, Pechili and Shangtung provinces; the bituminous as far as mined, in their order, in Pechili, Kiangsi, Shensi, Kansu, Shangtung, Szechuen, Yunnan, Kweichou, Hunan and Kwangsi provinces. Over a million tons of lignite are mined yearly in Manchuria. England has a coal supply for only one hundred and fifty years, and America’s supply will not last much longer. This means that China will step full-panoplied into the coal and iron arena with plethoric supplies which, with her population, will make her probably the world’s richest nation, in material resources, if not in brains. The first shipment of Chinese coal for America occurred in July, 1910, when the steamer Inverkip called at Ching Wang Tao on the Gulf of Pechili and loaded the famous Kaiping coal for San Francisco. The British Peking Syndicate, mining anthracite coal in Shansi province, purposes to build colliers to take coal to America. Coal costs at the mines only seventy-five cents a ton, and with machinery opulent China could reduce this cost. It is a knowledge of the potentiality of this great wealth that kindled some of the fire of the October, 1911, revolution, and led the provincial assemblies of Szechuen and Hupeh to say: “China’s mines and transportation franchises shall not be passed over to foreigners.” The Peking Syndicate, mainly British, operating hard coal and iron mines in Shansi, is capitalized at $6,000,000. The Chinese Engineering and Mining Company has a capital of $5,000,000. It has for many years operated the famous Kaiping coal mines north of Tientsin. This is the company which employed Mr. Kinder, the British engineer, who surreptitiously built the “Rocket,” the first locomotive used continuously in China.
A wonderful tin mine has been worked for many years at Kuo Chao, in the southeast corner of Yunnan province, the tin being exported through Mengtsu. It used to seek Hongkong via the Red River and Haiphong and sometimes via Nanning, the West River and Canton. The costly narrow gage railway which the French have run from Haiphong to Yunnan now catches nearly all of this product. There is much complaint regarding rates, which are based “on all the traffic will bear,” and it is proposed by the Chinese to build a railway to Nanning, and send the tin the remainder of the way by junk and launch. This rich mine produces about 15,000,000 pounds a year, valued at nearly $6,000,000, and now that German machinery and German experts have been introduced by the Chinese miners, a greater and a purer product will result. Until recently the product had to be resmelted at Hongkong. Of course, great as this product is, the Straits Settlements still lead in tin mining. There are 30,000 miners (mostly boys, on account of the narrow unhealthy shafts) at Kuo Chao, and owners, miners, smelters, porters and the government representatives all have their compulsory labor unions. This protection of labor must be copied in all countries, the government forcing the laborer to protect himself, and making the industry share in the cost of government supervision. Charcoal is used as fuel at the clay smelters, and the bellows are hand-worked.
As is well known, Southern China is cursed with white ants and humidity. The former eat the wooden beams, and the latter rusts iron beams. Ceilings have to be perforated to admit air and light between the floors so as to keep down the ravages of the white ant. However, Southern China is copying Hongkong’s example and risking metal beams and ceilings, the trouble being to find a suitable protective paint. China has graphite, lead for oxides, carbon, silica, and oils in abundance, and she will in time manufacture her own protective paints, but we shall supply the machinery. Brass hardware is used instead of iron on account of the humidity.
The important copper mines of Yunnan were worked as a Manchu monopoly. Hunan is perhaps the next richest province, with Szechuen, Shansi and Kweichou following, although every province has copper. Nickel mines exist in Yunnan, Kwangsi and other southern provinces.
The first engagement between the two immense sugar refineries (Butterfield’s and Jardine’s) at Hongkong and the great refiners of Formosa has been won by the latter, which were helped until recently by indirect Japanese subsidies. When the Sugar Trust, after the government fine and municipal suit, jumped the price two cents a pound, in 1911, if America had a Price Board at the head of affairs to induce Congress to act as was done in the coal shortage, Formosa and Hongkong sugar could have flooded the country until the price was restored to the five cents rate, or about that rate. The immense Hongkong refineries (Taikoo and China Sugar) use Javan raw sugar. The Formosa refineries use their local raw. They not only supply Japan under a protective tariff, but have enough to supply China. Formosa produces 600,000,000 pounds a year, and could handily double the amount. America has the Louisiana, Hawaii and Philippine cane fields to protect, it is true, but if sugar rises over five and one-half cents a pound retail, the insistent knockers at the high door, Formosan and Hongkong sugars, might be allowed to come in, as the tariff-enslaved countries are going to heed the new cry that food, clothing and building material must be duty-free, or nearly so.
Flake and amorphous graphite are mined in the Ping An section of northern Korea, and Japan will, therefore, enter into the manufacture of crucibles, lubricants, pencils and steel-paint.