large locomotives uncoupled, and are drawn across the river by special light engines retained for the purpose. One of the most important lines from the commercial point of view, however, is the Canton-Kowloon railway stretching from Kowloon, in British territory, to the busy centre of Canton, and thence continued northward to Hankow to provide connection with the other great systems of the country, and also with Europe by means of the Trans-Siberian railway. This project has passed through many vicissitudes. The British & Chinese Corporation received official sanction to build a road between Canton and Kowloon as far back as 1898, but the project became shelved. An American syndicate, which had secured the concession to connect Canton with Hankow, asserted that they had secured rights to carry the line from the former point to the coast. Such action would have dealt a serious blow to British commercial supremacy, and the money was subscribed to buy out the American concession, which in the meantime had been sold to a Belgian syndicate, and regained. The section between Kowloon and Canton, 100 miles in length, was divided. The Hong-Kong Government was held responsible for the 23 miles through British territory, while the balance of the line through Chinese territory was carried out by the Chinese Government. The English section proved tremendously difficult. The country traversed was exceedingly rough and mountainous. The difficulties encountered proved so abnormal that the cost of the undertaking has exceeded the original estimates by nearly 150 per cent. Some idea of the arduous character of the work may be gathered from the fact that nearly 2½ out of the 23 miles in British territory are represented by tunnels. The most arduous enterprise of this class was the Beacon Hill tunnel, 7000 feet in length, driven through the heart of the mountain ridge that rises up 3 miles from the coast. The tunnel is perfectly straight, and ranks as the largest work of its type in the Chinese Empire. It is driven through a depth of disintegrated granite on either approach, where heavy timbering became necessary until the solid rock was gained. Water was encountered and gave considerable trouble. At first labour was a serious problem, as the natives could not be induced to toil underground, and coolies had to be imported from India. After the work was well started, Chinese labourers, who had been working on the South African gold-fields and had returned home, were available, and proved highly useful workmen, especially when the wrestle commenced with the hard, solid rock.