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In the autumn of 1919, Xinghua Coal Mining Co., Ltd. began large-scale mining of the Liujiawa coalfield in the Yellow River paleo-channel basin, causing mining-induced earthquakes and ground subsidence. Initially, about a dozen or so acres of land collapsed, rendering some areas uncultivable. Villagers brought their grievances to the company, and subsequently, the two parties agreed to negotiate compensation. However, the company used the excuse of tight finances in the early stages of mining operations to avoid fulfilling its obligations. In February 1920, the land continued to subside. The subsidence spread from Xixia Village in the northeast of Qingquan County, meandering all the way to Dongyuan Town in a neighboring county. Signs of sinking were visible everywhere: the land became uneven, with height differences of up to several feet. Ancestral graves were also affected, with coffins and human bones exposed. In total, nearly thousands of households were impacted. In mid-month, dozens of fissures up to half a foot wide were discovered in the Yellow River ancient embankment. By month's end, the subsidence threatened villages, and some houses in Dongyuan Town collapsed, with village walls cracking in many places. Even then, the company still did not provide compensation. The villagers were extremely indignant, swearing to fight to protect their homeland. In early March, villagers secretly gathered, arming themselves with folk weapons, and elected local gentry Liu Shujie to lead them in resolving the dispute through force. The situation was severe, with violent conflict imminent. Xinghua Company was forced to send personnel to survey the dire state of the collapsed land.