The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1904-03-29
AMERICAN INVESTMENT, 'lk Ru,,lA.

promise for American enterprise Is
; brought back by Mr.. A. II. Ford, who
has been spying out the land for The
Iron Age. I'm thousand ways" says
. Mr.. Ford. "the American investor is
made to rue the day he first thought
of establishing a branch plant in the
land of the Car" He adds
1T would seem as though Russia was
bent upon demonstrating to Americans
how greatly to their financial advan-
tage would be japanese success at arms
In the Far East.
while Japan eagerly offers every in
ducement TO Americans to become in
vestors in the Island Kingdom, Russia
is engaged in bounding from her vast
continent almost the last American en-
terprises she has so far allowed to re-
main and flourish" 80
The Russian plan, as Mr.. Ford relates
It,, is simple. The manufacturer of loco
motives, air-brakes, agricultural imple-
ments, or sewing machines do mention
a few actual examples), having built up
La trade in Russia, is induced, by
threats or cajolery. to erect a plant
in Russia; then he Is made to discharge
his American workmen and hire Rus
slams, and then his business is so taxed,
hampered, and interfered with that
the American finally sells out in dis
gust, and Russia has acquired a new
industry at a low. figure. Says Mr.
Ford:
THE Government interests itself di-
rectly in every foreign enterprise, with
n view to converting 1t into a purely
Russian affair; nor areHthe servants of
the Car particular as to the methods ]
used. From De White down results
have been all that was looked for, Rus
sian officials frankly admitting the |
charges of discriminating against
American enterprises, and the Ameri- |
cans who have founded machine shops
and factories in Russia are forced to |
realize that their progressive methods,
instead of settingla pace, have startled !
the Russians to apdegree that has
worked the downfall of almost every |
Yankee venture in European Russia" 4
Two American firms that are now
having the screws put on them under
this system are the Westinghouse Air.
Brake Company and the Singer Sew
ing Machine Company. Mr.. Ford tells
the story of the latter's tribulatiors in
Russia as follows: 'it,'.'. b. 's;5... 81
MANY years ago 1t was that the
Singer Sewing Machine Company be-
gan their invasion Of Russia. Rapidly
the useful American invention found it's
way to even the most remote parts of
the empire. 1 have encountered it in
far-off Siberia and Manchura, and even
have a photograph of Central Asian
tent-home in which the wives of an
unruly chief stitch garments for their
lord and master upon this ingenious
Yankee machine. I have met Jewish {
traders who have carried the American
sewing-machine by camel caravan far {
into Tibet, from whence returning ma
tive traders report sales even in the |
sacred city of Lhassa, where the feet |
of no white man have trod for nearly
a century. Such success caused Rus
sian officials to smile upon American
and suggest a factory on
Russian soil. Now such a suggestion in t
Russia carries with 1t the assurance a
that If not favorably acted upon import a
dues will be levied that will force the Y
foreign manufacturer to terms. At S
present there is a magnificent, Singer I
sewing machine factory at Moscow, and S
almost my first view of the Russian $
capital itcluded the one modern office j
building in all Russia that the COM il
puIy eIeCtllS vi tile NeNShy
pect. All of this display of wealth, it is d
needless to say, has excited the cupid l,
ty of the Cars tax collectors, and, S
when it is also taken into considera-
ion that American enterprise in Rus s.
Tia Is held largely responsible for the v
spread of revolutionary doctrines, it is a
rot surprising that the reactionists now t.
n power have organized a campaign f;
II tn al ri fha | n
american company out of Russia or 7
orce them to sell at sacrifice, either Il
irect to the paternalist Government or W
o some purely Russian company. lo
Now, all men are not wise in all II
hngs at all times-not even Yankee e'
nvestors-so it came about that to W
urry favor with the Government the CT
inger Sewing Machine Company took il
he almost fatal step of depositing their OF
ecepts with the Imperial Bank. OF
romptly the tax agents demanded of in
ne state bank access to the accounts al
the American company. The officers
the Singer Sewing Machine Company
ere officially informed that as they
ere deposting large amounts of
Ioney they must pay the Government nc
rger taxes. In vain the directors
ointed out that the deposits We're gross VI
,ceipts, not profits, and that, more of
YER, the company We're paying their es
Ill quota of taxes demanded by law.
ot being able to refute the latter !"
atement the government officials re- $l'
red and consulted, with the result
at they returned with a demand that
lie exact collections of each and every ~
lie of the thousands of sales agents WI
lroughout Russia be reported to the Gt
overnment. This would entail of mr.
,urse. the employment of large
lumber of accountants, as the amounts HI
elected are often not more than a ge
w kopecks; and, being a manifest inn We
disability, the company fatty refused. 80
The next move of the Government
as threat to tax the company n 81
or more rubles for each agent,
n the ground that the stock of the al
Dmpany being owned nv Foreigners he