Perth Amboy evening news., 1904-04-29
RIGHTS on FOREIGNERS.
Obstacles Standing in the Way of In
vestment Of American Capital
in Japan.

A feeling of opposition to foreign cap
ital continues to be manifested among
some classes of the population, which in
t~erferes to a considerable extent with
the free development of industrial enter
brises. The better educated Japanese
recognize the need of more capital than
exists within the country and desire its
introduction from abroad, but the mar
row views and jealousy OF a few often
i~nterpose obstacles which cause the
withdrawal of intending investors.
The Osaka Gas company, capitalized
principally by New York city financiers,
is now reported to have come to an
agreement with the city authorities
after a year of obstructive negotiations.
The Toxic Electric Railway company,
half of the capital of which was to be
furnished from London, has not yet sue
ceeded in effecting an organization be-
cause OF opposition from a section of ma
tive stockholders REINFORCED by part of
the native press. Investigations made
with q view to furnishing capital for
railroad enterprises have come to
naught because the law governing Sc
curity.
As has been stated before in these re-
ports, a foreigner cannot W land in
Japan, although a number OF foreigners
may organize themselves into a COM
pany, to be known and registered as Il
"juridical person." and this company
has all the property rights of a native
citizen. Without the organization of a
company as a juridical person, foreign
ers may lease land and own buildings or
trees thereon, and may take mortgages
on a private railway, providing the per-
mission of the government is previously
obtained. But in case of foreclosure
and sale the MORTGAGE, If a foreign per-
son or company, would be at the mercy
of the railroad company, since he could
not bid on the property himself; fur
thermore, at any time after rs years
from the date at which the railroad
company obtained official sanction to
operate the road, the government could
buy up the road and its inten-
ton to succeed to the rights of the mort
gage. In the words of a prominent
Japanese lawyer: Things may be ar
ranged in such a way that the govern
ment may purchase the road at its own
price" Under these circumstances the
mortgage right does not furnish salts
factory security, and the formation and
re registration of a iuridical person is at
tended by difficulties and Subject to con-
tingencies which make it an undesirable
prerequisite to investment. There has
been some talk of making changes in
the law concerning the right of a for
eigner to hold land, but this has not yet
been done.
Foreign manufacturing firms operat-
ing in this country also report a num-
Der of discouraging conditions. In a
published interview with Bethel Broth
ers, a rug-manufacturing firm, the fol-
lowing statement occurs:
"We have met with a good many OBJ
stacles which we had not expected and
which any firm commencing business in
another country would not encounter.
These obstacles are annoying through
being so frequent and so numerous. We
could not, it is true, make a case OF
any one of them, but they nevertheless
exist in Japan to q degree which would
surprise a factory owner in another
country"
The claw of incorporation of business
men in the principal export commodi-
ties" provides that persons engaged in
the same business as that for which a
guild is formed must become members
of the guild, but the ministry for agri-
culture and lie may make an eX
emption if he considers the circumstan-
ces warrant it. In the case above men
toned Bethel Brothers had not Joined
the rug weavers' guild and the mem
bers of the guild resented that fact. TIC
this was due the petty a%nnoyances re-
fcrred to.
Those guilds have been formed for
many of the most important industries
in Japan, their object being to regulate
the quality of goods put on the market
and secure cooperation for the extern
sion of trade. They are probably the
outgrowth of to peculiar conditions
which exist here, where there are few OF
no large manufactures, but a grea'
number of independent, small concerns
Any consignment of goods for shipmenr
is almost certain to include products
from a dozen different makers, so tina
the identity of the producer is lost, anf
it becomes almost impossible for on
manufacturer to build up a reputation
which shall become a valuable asset il
his business. The incentive to turn on
only the best quality is thus much les
than in countries where the goods o
each manufacturing firm stand solely OIL
their individual merit, and the temp
tation to send out inferior work is cor
respondingly increased to the detrimen
of the commercial interests of the who'll
country, This defect the guild is intend
ed to remedy, but 1t has failed to do this
while introducing a number of ~annoyin!
eXactions.
e q REF OwS