Page:Europe in China.djvu/576

558 Chinese merchants in Hongkong, the development of the China Merchants S. N. Co. was of great moment. This Company, in which Chinese merchants of Hongkong hold a large share, and which was practically the creation of Li Hung-chang, the Viceroy of Chihli, succeeded, after many mistakes and losses, in making good reports and paying fair dividends (10 per cent. in 1881), besides writing off a liberal sum for depreciation of its fleet. After establishing a Chinese Insurance Company, Li Hung-chang's next step was to run steamers to Honolulu (October, 1879), and when this measure was found unremunerative, a new departure was taken (October 11, 1881), by putting a steamer on the berth for London, with a view to commence direct trading between England and China and to establish a firm of Chinese merchants in the City of London. An association was formed for the purpose in Shanghai and Hongkong with a capital of £150,000. The avowed object was to wrest the China Trade from foreign hands and to carry the struggle into the enemy's camp. Sir J. Pope Hennessy encouraged this enterprise on the ground that the interests of the Imperial trade would be furthered by bringing the English manufacturer and the Chinese consumer nearer together, though it might be to the detriment of the British intermediaries of the trade in the Colony. But, as the Company had no experienced men to start the business in London, and as it naturally met with uncompromising opposition from British merchants and shippers, the attempt proved a conspicuous failure. Even more short-lived was another project, which Sir John did his utmost to encourage and which, in his farewell summary of the condition of the Colony, he triumphantly pointed to as a sign of progress, viz. a proposal to start, at Belcher's Bay, a Dock to be worked with exclusively Chinese capital for the purpose of docking the steamers owned by the China Merchants S. N. Co. and other Chinese firms. It was merely a paper scheme, and as Li Hung-chang naturally declined to benefit the Colony in any way, it fell to the ground. There was at