American China Development Company
The American China Development Company was created in 1895 to win railway, mining, and other business concessions in China. It was led by Calvin Brice, a former Ohio senator and railway lawyer. Early backers included prominent American bankers and businessmen from J.P. Morgan & Company, Carnegie Steel, National City Bank, and Chase National Bank. The company played a key role in the United States’ Open Door policy and the “battle of concessions” at the turn of the century.
In 1896, A.W. Bash went to China as the company’s agent, carrying letters from the State Department. He worked with Sheng Hsuan-huai, the Chinese Railway Bureau’s director general, and they reached an initial agreement to build a north-south railway from near Beijing to Hankou on the Yangtze. A formal contract was not reached, and the concession eventually went to a Belgian-backed group funded by Paris financiers and the Russo-Chinese Bank. The American company then focused on the southern leg, from Wuchang across the river from Hankou to Guangzhou.
In 1898, a loan arrangement was reached in Washington in which the company would market bonds and oversee the railway’s construction and operation for fifty years, with the concession also allowing coal mines nearby. The Guangzhou–Wuchang line remained the only American-contracted railway project after 1895, but the Americans would eventually lose it. Facing strong competition from other powers, the Americans agreed in February 1899 to share the concession for the line with the British and Chinese Corporation.
New York engineer William Barclay Parsons was sent to survey the route in the winter of 1898–1899. After evaluating costs, the company realized its loan would cover only part of the railroad’s cost. In July 1900, a supplementary agreement provided the American Development Company with a large bond issue from the Chinese government, though this agreement did not mention the British or Chinese Corporation.
The company was reorganized in December 1901, bringing in two Belgian directors and increasing Belgian influence. By late 1903, Belgians sought to divide the line to gain sole control of the northern portion. In January 1904, Sheng claimed the Belgians had gained control. Although the plan had promised America would remain the owner and controller of the company, Chinese officials worried about foreign concessions with political aims, especially Belgian influence.
As Belgian influence grew, governors in Hunan and Hubei urged cancelling the American concession to prevent Belgium from controlling the railway. The company asked the U.S. State Department for help regaining majority stock ownership in spring 1904, but the State Department declined to become further involved. The Foshan and Sanshui branch line was completed between 1902 and 1904. Work on the main line stopped in October 1904, and in November the Chinese government signaled its intent to cancel the concession. In December 1904, the throne officially revoked it.
With increasing American political pressure, Belgium’s King Leopold allowed Americans to buy back stock in January 1905. J.P. Morgan bought enough shares to become the new controlling interest. Between January and June 1905, the company worked to settle with China over the lost concession. On June 7, 1905, the two sides reached a settlement: China would pay about $675,000 to cover properties and bonds sold by the company. In August 1905, stockholders voted to accept the settlement.
Key milestones
- 1895: Company incorporated in New Jersey
- 1896: A.W. Bash sent to China as company agent
- Nov 1896: Initial agreement with Sheng Hsuan-huai
- Winter 1898–1899: Parsons surveys the route
- Feb 1899: Concession shared with the British and Chinese Corporation
- July 1900: Supplementary loan/bond arrangement with China
- Dec 1901: Reorganization brings Belgian directors
- 1903–1904: Belgian influence grows; control claimed by Belgians
- Oct 1904–Dec 1904: Work stops; concession revoked
- Jan 1905: Americans buy back stock; J.P. Morgan increases control
- Jun 7, 1905: Settlement with China finalized; August 1905 stockholders approve
This page was last edited on 3 February 2026, at 04:50 (CET).