Tazewell Republican. [volume] (Tazewell, Va.) 1892-1919, 1904-05-19
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
terferes to a considerable extent with
the free development of industrial enter
prises. 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 few often
interpose obstacles which cause the
withdrawal of intending investors.
The Osaka Gas company, capitalized
principally by New York city financiersr
is now reported to have come to an
agreement with the city authorities
after 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 section OF ma
tive stockholders reinforced by part OF
the native press. Investigations made
with a view to Furnishing capital fol-
railroad enterprises have come to
naught because the law governing Sc
curity.
- AS has been stated before in these re-
ports, foreigner cannot own land in
Japan, although a number of foreigners
may organize themselves into COM
pany, to be known and registered as
"juridical person." and this company
has all the property rights Of native
citizen. Without the organization OF a
company as a juridical person, foreign
ers may lease land and own buildings OF
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 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 % years
from the date at which the railroad
company obtained official sanction to
operate the road, the government could
buy up the road and announce its inten-
ton to succeed to the rights Of the mort
gagee 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 It's own
price" Under these circumstances the
mortgage right does not furnish salts
factory security, and the formation and
registration of a juridical person Is at
tended by difficulties and Subject to con-
tingencies which make 1t an undesirable
prerequisite to investment. There has
been some talk of making changes in
the law concerning the right Of for
eigner to hold land, but this has not yet
been done.
Foreign manufacturing firms operat-
ing in this country also report num-
Der Of discouraging conditions. In q
published interview with Bethel Broth
ers, a ug-manufacturing firm, the fol-
lowing statement occurs:
1--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 a degree which would
surprise 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
guild is formed must become members