Los Angeles herald., 1908-04-26
OF WORLDWIDE INTEREST
GREATEST TRUST IN THE WORLD 4
BY FREDERIC j. HAskIN

taffrail of ships in every sea. Japan
has become an exporting nation and Is
seriously seeking to convert the trade
of China to its own purposes. But the
very fact that 1t has become con-
siderable factor makes 1t the more
necessary for Occidental nations, until
now absolute masters of the worlds
trade, to examine into the ways ana
means by which these things have been
done. The Occident is q unit in sup
porting the proposition that If Japan
has been admitted to the family OF
first-class nations the first Occidental
nation to be so honored, 1t must OBJ
serve the rules of the game as played
by the older nations and must conform
to international ethics in business as
well as to international law in war.
Official representatives of western
nations in Japan are now beseeching
their governments to send competent
experts in politics, business and eco
nomics to this country to make study
of conditions and to ascertain, IL pos
sible, Just where the private business
enterprise in Japan leaves off and
where the government control begins.
Such an investigation must, of course,
be conducted with great tact and
diplomacy. Indeed, it is by no means
sure that Japan will consent to the
Inquiries being made. Yet the diplo-
matists of the Occident believe that the
matter should be probed. This leads to
| serious situation. the end of which
may be the overthrow of peace and
the drenching of the Orient in another
deluge of blood.
The Japanese government declares to
| the world that it will take steps to
stop the dishonest Japanese traders
who initiate foreign goods and steal
foreign trademarks. Nothing could be
fairer than the way the government Of
flcials talk about 1t and nothing could
appear to be more sincere than the ex-
| presSions of regret from the govern
ment. And yet at the very same time
government manufacturing concern,
| operated by the government, owned by
the government and enjoying complete
monopoly, is turning out an imitation
of British American product, stealing
even the initials of the American COM
pany to brand the package. This par
| ticular brand of goods has wholly
driven the foreign article from Japan
by virtue of the monopoly, and the
Japanese government, not an individ-
ual dealer, but the government itself,
Is trying to force the genuine article
out of Manchuria and other parts of
China by offering the imitation at
| cheaper price.
This is an instance of a government
monopoly. But what no one can tell
with certainty Is how many other man.
ufacturing concerns, apparently con-
| trolled by private capital, are really
linked with the government through the
imperial households private share
holdings. And no one can know
whether it is an entirely independent
| np IN tha which q
doing some Of the things that are caus-
ing so much commercial trouble in the
far east.
The Occidental interest in the work.
ings of this gigantic trust is not con-
fined to Chinese or other extra-Jap-
anese territory. In Japan proper,
where the sovereignty of the govern
ment cannot be questioned, foreign
capital feels the weight of the Japanese
system" In the first place, Japan
has no money and has never had
money. This may account for the des-
perate efforts 1t is making now to get
money, honestly If possible, but get
money. The internal improvements in
Japan have been built with foreign
capital. Railroads and street railways
lead the list, of course. The govern
ment owned part OF the railways from
the beginning, having constructed the
11rSt line. European Ctpit6i OWAS0 ShO
rest. All at once, without warning or
by your leave, the government takes
over the private railways at its own
valuation. paying for them with gov
ernment bonds which were worth moth
ing like their face value.
Since the government railroad mo-
ropoly was instituted the shippers have
been subjected to great inconvenience,
the railway equipment is being run
down and the\system is being milked or
every penny of surplus revenue for the
benefit of the impoverished national
treasury. The treasury is empty be-
cause of the enormous expenditures be-
ing made on military and naval ex-
pansion. While this goes on, and the
Japanese groan under the heaviest
taxes ever imposed upon the people or
q first class nation; while the govern
ment's credit is strained to the break
ing point, and national financial dis
aster is in sight; while all this goes on,
the concerns in which the imperial
household owns stock continue to de-
clare dividends of from 10 to 20 per
cent and the people make up the
deficit. x,.,,,,