Los Angeles herald., 1908-04-26

lM &$Wl or Toxic. The japanese lIlper-
IL WNi ial household is the center
around which an amazing
business organization revolves.
The effects of the application or trust
methods" to partnership between q
sovereign state, q family of princes rul-
ing by divine right, and certain clique
of rich men, are being felt all over
the east. To define that partnership
and explain the details of its working
would be as difficult as 1t would have
been ten years ago to get line on
the operation of a great American life
insurance company. But just as finan-
cial peace i'll America required the eX-
posture of the insurance company meth
DDS, so international peace in the Orient
may require frank exposition of this
mysterious trust of apan.
The age-long prejudice against mer-
chants in Japan has not prevented the
princes of the imperial household from
SELLING an opportunity TO make little
on the side in a purely commercial
way. The imperial household, operat-
ing under the established code of fam
lily laws, owns stock in nearly every
large business concern under the jap
anese flag, and in many of them 1t
controls a ma iority of the shares. The
advantage of this private ownership
is apparent when 1t is considered that
the owners can also operate through
the government, which they control by
their association with the ruling oil
garchy.
For instance, the imperial household
owns large cotton spinning mill. The
raw cotton must be brought from the
United States, manufactured in Japan,
and then taken to China to be sold
The imperial household, wishing to
make a great profit on this cotton
yarn, but being compelled to sell 1t
very cheaply to compete with other
yarns. in the Chinese market, has an
advantage which no other trust on
earth could dream of. 1t also owns
the big steamship lines, but in order
to make the cotton business "go," 1t
will permit Its steamers to carry the
raw cotton from America and the fin
ished product to China for less than
cost. This effectually shuts out all
foreign shipping and makes business
for the Japanese merchant marine.
Other business may be carried by these
ships at a profit; IL so, the profit goes
to the imperial household pockets The
losses are always made up by the gov
ernment; not by the imperial house,
hold, but by the people of Japan, who
are taxed to pay the ship subsidies.
Losses in other business in which the
hhPOA ieii AiOuSSllOiu may idNC a oiISCt
or indirect interest are made up in the
same way. The essentially paternal
government of Japan, exercised by a
half dozen men, will subsidize anything
on earth. If the imperial household
and other partners in the trust think
| there is a chance to make money a
business will be carried on as a pri-
vate concern, but with the government
treasury held in rserve to help out any
weak point with subsidy. If, how
ever the imperial household cannot
make any headway at all against for
cign competition, then the power OF
the government will be utilized, a state
| monopoly is created and the particular
Industry is under the control of the
company in the trust.
Suppose that John D. Rockefeller, j.
F. Morgan, e. H. Hartman and
! Thomas F. Ryan had absolute control
of the government of the United
on the national treasury for a subsidy
to make up any loss they might hap"
| pen to sustain in any branch of busi-
ness. Suppose that they could SO
make the laws and WELD the govern
ment that no other person would have
even the legal right to stay in busi-
ness IL they desired to push him out
|
control congress and thereby change
the tariff, increase the internal taxes
or do anything they desired, all fol-
their ultimate personal pecuniary ben
eft. Suppose, moreover, that these
| four American financiers could treat
with the nations of the world in theiI
capacity as the rulers of the American
nation, wage war If they saw fit and
guard every line of attack upon for.
eign market with their own army ano
navy. The imagination that can con.
ceive of such a state of affairs, anc
that can then go infinitely farther and
| imagine the American people meekly
submitting to the program, will have
| fair picture of the true condition oi
Industry and commerce in Japan.
That the work of this great Inn
periai household trust, linked with
| the fortunes of the Mitsui and Mttsu-
bishi families, has accomplished won
ders for Japan cannot be denied.
Thanks to liberal subsidies from the
government to ship lines owned by the
princes. Japan has one line of steam
ers which ranks fourth among the
maritime companies of the world. The
Rising Sun of Nippon floats from the