an embassy, and I have been directed by His Majesty to deliver into your hands the letter accrediting me to you in the capacity of his ambassador extraordinary and plenipotentiary, together with another letter relieving Mr. Kogoro Takahira of his duties as His Majesty's envoy extraordinary and minister plenipotentiary near the Government of the United States.

In entering upon the duties of the office with which I have been honored, I am commanded by His Majesty to convey to you, Mr. President, his wish for your personal health and happiness and for the prosperity and well-being of the people of the United States. While no effort shall be spared on my part to maintain and strengthen the relations of sincere friendship and good will between our two nations, which have proved to be so fruitful of beneficent results, I may be permitted to say that I feel the responsibility all the more keenly in having been chosen as the first ambassador from Japan to the United States. I should indeed be happy if my efforts in the direction referred to would be proved to be successful, for it is the earnest desire alike of my imperial master and of his people to further develop the bonds of friendship and good accord which unite the two countries. I trust that, in the execution of the high mission intrusted to me, I may rely upon the same benevolence and kindly assistance which it has been the good fortune of the representatives of the Imperial Government to receive at your hands.

REPLY OF THE PRESIDENT.

MR. AMBASSADOR: The friendship which has existed between the United States and Japan since the opening of your country to foreign commerce, the steadily increasing cordiality of intercourse between them, and the importance which they have assumed in the affairs of the world make it most meet that the diplomatic relations between them should have a more intimate character.

I am glad, therefore, to welcome you to Washington and to receive from your hands the letter whereby His Majesty the Emperor of Japan accredits you as his first ambassador extraordinary and plenipotentiary near this Government.

I have no doubt that the bonds of friendship and good accord which unite our two countries will be more firmly cemented by your endeavors. To this end you may rely upon my hearty cooperation. I beg you will convey to His Majesty my thanks for his good wishes and assure him of the cordial sentiment which he has deservedly won among us.

No. 4.]

Ambassador Wright to the Secretary of State.

AMERICAN EMBASSY,

Tokyo, May 27, 1906. SIR: I have the honor to inform you that I arrived in Yokohama on the 13th instant and immediately proceeded to Tokyo. On the 15th instant, accompanied by Mr. Huntington Wilson, chargé d'affaires,

I made an informal call upon the Marquis Saionji, prime minister and acting minister for foreign affairs, and presented to him copies of my letter of credence as ambassador, of Mr. Griscom's letter of recall, and of the remarks I proposed making to His Majesty the Emperor. I have the honor to transmit herewith inclosed a copy of my note of the 15th instant to the foreign office by which I requested that I might be received in audience by His Majesty.

On the 26th, accompanied by the staff of this embassy, I was received in audience by His Majesty the Emperor and formally presented my letter of credence, together with Mr. Griscom's letter of recall. At the same time I made a short address, a copy of which is herewith inclosed. His Majesty replied briefly, but in a very cordial way, asking with much interest as to the health of the President and his family. I herewith inclose a copy of his remarks as furnished by the grand master of ceremonies. Immediately following the audience with the Emperor, Mrs. Wright and myself were received in audience with Her Majesty the Empress, who was very gracious and kindly in her manner and expressions.

I have not yet had the opportunity of meeting a great many of the Japanese officials, but those I have met I have found agreeable and cordial. Altogether my experiences up to date have been very pleasant.

I have much pleasure in informing you that the Marquis Saionji expressed himself in the most complimentary terms, in which my own observation enables me fully to concur, as to Mr. Wilson's manner of conducting the affairs of the legation while acting as chargé d'affaires. I may say in this connection that he has been very attentive and helpful to me since my arrival, and, whilst I am glad of his deserved promotion, I shall part with him with genuine regret. feel that I am also already in a position to say that Mr. Laughlin, Mr. Miller, and Mr. Scidmore have all been most efficient and diligent in the discharge of their respective duties and are aiding me in every way in arriving at a knowledge of the business of the embassy. I have, etc.,

LUKE E. WRIGHT.

I

[Inclosure 1.]

Ambassador Wright to the Minister of Education, Acting Minister for Foreign Affairs.

AMERICAN EMBASSY,
Tokyo, May 15, 1906.

MONSIEUR LE MINISTRE: The President having appointed me ambassador extraordinary and plenipotentiary of the United States of America to reside near the person of His Majesty the Emperor of Japan, I have the honor to inform your excellency that I arrived in Tokyo on the 13th instant, and to request that at the convenience of His Imperial Majesty I may be received in audience for the purpose of presenting my letter of credence and my predecessor's letter of recall. At the same time I beg to hand your excellency copies of my letter of credence and of Mr. Griscom's letter of recall, and also a copy of the remarks which I look forward to the honor of addressing to His Majesty the Emperior on the occasion of my audience.

I have also the honor to request for Mrs. Wright and myself the honor of an audience with Her Majesty the Empress.

I avail myself, etc.,

LUKE E. WRIGHT.

[Inclosure 2.]

Address of Ambassador Wright.

YOUR IMPERIAL MAJESTY: I have the distinguished honor of presenting from the President of the United States the letters of recall of the Hon. Lloyd C. Griscom as envoy extraordinary and minister plenipotentiary of the United States, residing near Your Imperial Majesty, and from the same high source my letters of credence as ambassador extraordinary and plenipotentiary to Your Imperial Majesty. In doing so, I am directed by the President to assure Your Imperial Majesty of his warm personal regard and his earnest wishes for the well-being of the great nation of which Your Imperial Majesty is the head. The unbroken amity between the United States and Japan, now so long continued that it has become almost traditional, is a source of congratulation and of the greatest pleasure to the President and to the American people. Both he and they have marked with unvarying interest and generous sympathy the steady increase in power and prestige of the Empire of Japan, at once one of the oldest and most virile of modern nations. The appointment by him of an ambassador to Your Imperial Majesty is but a recognition of her advanced position among the great powers. The President has directed me to say further that he believes that no other one factor will be so important in determining the welfare of the peoples grouped around the great Pacific Ocean as the friendship and good understanding of Japan and the United States, which he hopes will grow ever closer.

Personally, I esteem myself most highly honored in being selected by the President to represent him and the American people at Your Imperial Majesty's court, and I venture to express the hope that my efforts to carry out the President's wishes may meet with Your Imperial Majesty's confidence and approval.

[Inclosure 3.-Translation.]

Reply of the Emperor.

We are pleased to receive the letter of credence from the President, informing us that the Hon. Lloyd C. Griscom has been relieved of his duties and that the President, having raised the legation to the rank of an embassy, has been pleased to appoint your excellency as his ambassador.

It is our firm conviction that the appointment of your excellency as ambassador will promote and strengthen the cordial relations that have always so happily existed between the two countries.

We trust that the President and his family are in the enjoyment of good health.

No. 76.]

SOUTH MANCHURIAN RAILWAY COMPANY.

Ambassador Wright to the Secretary of State.

AMERICAN EMBASSY,

Tokyo, October 15, 1906. SIR: I have the honor to inclose a revised copy of the translations of the government order relating to the organization of the South Manchurian Railway Company and the articles of incorporation which accompanied my dispatch No. 47, of August 18 last.

I have, etc.,

59605 F B 1906-64

LUKE E. WRIGHT.

[Inclosure 1.-Translation.]

GOVERNMENT ORDER.

To Masatake Terauchi, chairman of the organizing commission of the South Manchurian Railway Joint Stock Company, and 80 other members of the commission:

The following orders are hereby given respecting the several matters relating to the organization of the South Manchurian Railway Joint Stock Company, all matters pertaining to the management of which have been intrusted to the commission.

August 1, 1906.

ISABURO YAMAGATA,

Minister of Communications. YOSHIRO SAKATANI, LL. D.,

Minister of Finance. VISCOUNT TADASU HAYASHI, Minister for Foreign Affairs.

ARTICLE 1. In accordance with the additional agreement of the Japan-China treaty relating to Manchuria, signed on December 22, 1905, the company shall engage in the traffic of the following railways: Tairen-Changchun, NankuanlingPort Arthur, Tafangshen-Liushutun, Tashichiao-Yinglow, Yentai-Yentai Coal Mine, Sukiatun-Fushun, Mukden-Antunghien.

ART. 2. The railways mentioned in the preceding article shall be changed to the 4 feet 8.5 inch gauge within three years, counting from the day on which the company commences its operations.

On the Tairen-Changchun Railway the tracks between Tairen and Sukiatun • shall be doubled.

ART. 3. The company shall make the various arrangements necessary for the lodging and meals of the passengers, as well as for the storage of goods at the principal stations on the line.

At the points on the harbors and bays touched by the railways the necessary arrangements shall be made for connecting water and land transportation.

ART. 4. For the convenience and the profit of the railways, the company may engage the following accessory lines of business: Mining, especially the operation of the coal mines of Fushun and Yentai; water transportation; electrical enterprises; sale on commission of the principal goods carried by the railways; warehousing; business relating to the land and buildings on the land attached to the railways. In addition, any business for which government permission has been given.

ART. 5. The company shall, subject to the permission of the Government, make the necessary arrangements for engineering works, education, sanitation, etc., within the area of lands used for the railways and the necessary lines of business.

ART. 6. To defray the expenses necessary for the arrangements mentioned in the preceding article, the company may, subject to the permission of the Government, collect fees of those who live within the area of lands used for the railways and the necessary lines of business, or make any other assessment for necessary expenses.

ART. 7. The total amount of the company's capital stock shall be 200,000,000 yen, of which 100,000,000 yen shall be furnished by the Imperial Government. ART. 8. The capital to be furnished by the Government mentioned in the preceding article shall consist of the following properties: The existing railways; all properties belonging to the railways, except those in the leased territory specially designated by the Government; the coal mines at Fushun and Yentai. ART. 9. The rolling stock now being used by the Government and the rails, as well as the accessories, of the Mukden-Antunghien temporary railway shall be sold to the company at a reasonable price.

ART. 10. The shares not owned by the Government shall be open to subscription by Japanese and Chinese subjects.

ART. 11. When the dividend of the company for any business year is less than 6 per cent per annum on the paid amount for the shareholders other than the Governments of Japan and China (hereafter to be styled merely "the shareholders "), the Government shall supply the deficiency for a period of fifteen

a Near Mukden.

Japanese.

years only (or for thirty business years if the calendar year be divided into two business years), commencing from the day of the registration of the company's establishment. However, the amount of money to be furnished by the Government to supply the deficiency referred to shall under no circumstances exceed 6 per cent per annum on the capital paid in by the shareholders.

ART. 12. When the dividend of the company for any business year does not exceed 6 per cent per annum on the capital paid in by the shareholders, the dividend on the shares owned by the Government need not be paid.

The shares owned by the Chinese Government shall be dealt with in a similar way to those owned by the Imperial Government.

The Government shall guarantee the payment of interest on the debentures which the company may issue for the reconstruction of the railways, or for the operation of the necessary business, and on those which the company may issue for consolidating or redeeming these debentures. The Government shall, if necessary, guarantee the repayment of the principal.

The amount of the face value of the debentures to be guaranteed by the Government should not exceed the amount remaining when the capital paid in by the shareholders other than the Government is subtracted from the total of the capital subscribed by them."

The debentures mentioned in the first paragraph shall be redeemed within twenty-five years, counting from the year of their issuance.

ART. 14. For the debentures issued in accordance with the provisions in the first paragraph of the preceding article, the Government shall supply the amount corresponding to the interest on the debentures.

When the dividend on the capital paid up by the shareholders exceeds 6 per cent per annum, the surplus shall first be applied to the payment of the interest on the debentures. However, in this case the amount of surplus shall be deducted.

ART. 15. When there is any surplus after paying the interest on the debentures, as mentioned in the preceding article, out of the profits of the company's business, the said surplus shall be apportioned to the shares owned by the Governments of Japan and China until the rate is equal on the respective amounts paid up by all the shareholders.

ART. 16. The money to be supplied by the Government, as provided for in articles 11 and 14, shall bear interest at 6 per cent per annum. The interest shall be added annually to the principal, and the total shall be the company's indebtedness to the Government.

When the dividends for all the shares exceed 10 per cent per annum, the surplus shall be devoted to the redemption of the company's debt mentioned in the preceding paragraph.

ART. 17. Any surplus of funds raised by means of the debentures mentioned in article 13 shall be deposited with the division of deposits in the department of finance.

ART. 18. The company shall determine estimates of the capital to be paid up and the debentures floated during each business year, their face value, issuing price, rate of interest, date of issuance, etc., and shall receive the Government's approval.

ART. 19. The company shall determine the regulations relating to its finances and business, and shall secure the Government's approval.

When the company desires to alter the regulations mentioned in the preceding paragraph and the articles of incorporation, similar steps shall be taken. ART. 20. The plans of the company's business, the estimate of the cost of operation, the budget of income and expenditures connected with the company's business, the settlement of the same, and the rate of the dividend for each business year shall be submitted to the Government for approval. When the company desires to alter the foregoing items, similar steps shall be taken.

ART. 21. At the designation of the Government the company shall report on the following matters: The present condition of the cost of operation as well as the income and expenditures connected with the company's business. The actual condition of the company's work in general.

ART. 22. Without the permission of the Government the company shall not dispose of its principal rights and properties, nor give the same for security. ART. 23. When the Government deems it necessary, it may order the freight charges to be reduced, but only under special conditions.

a I. e., shall not exceed the difference between the capital subscribed and the amount paid in.