Los Angeles herald., 1909-10-06

kfF FNfM IN more tlan one COullli ~
M tN Japan, which has a modern
"a % lied government and modern-
lied industries, has also cor
Tuption in its modern mani
festations. The Japanese sugar scandal
which has rung through the press or
Japan for the last six months Is one
of the most sensational disclosures or
unfortunate conditions. In its scope, as
effecting the highest lawmaking body
the imperial diet, it is scandal even
so great as those which have been con-
nected with sugar in the United States.
No less than twenty-three members of
parliament have been involved in the
affair as alleged receivers of bribes'
While the prospect that any of these
will be visited with real punishment
seems remote, the number of those
charged with crime may be used to
describe, in American slang, their pollt-
ical fate and social ostracism.
Japanese courts are famous Tor YER
diets that to the western mind are not
logical Their methods of reasoning
and the paths by which they arrive at
conclusions sometimes "habbergast
the inuuiring Anglo-SaXon. To Illus
trate the point, when a Japanese court
found that Viscount Miura and other
representatives Of the Toxic govern
ment had made a contract to murder
the queen Of Korea and that the queen
had been murdered in accordance with
that contract the high contracting par
ties directing the mob, the Verdlct was
that each and all of the defendants
should be acquitted because there was
no proof that the parties who planned
the killing actually did the killing. Not
withstanding the elasticity Of the ju-
dicial mind in Japan there seemed IRON
the beginning no opportunity LOT d
court to escape from a verdict of guilty
! q TNaVe nF
charged with having accepted brlbes TO
advance the interests Of a bill to con-
tinue a Gebate Of customs duties to the
Japanese sugar trust to rehabtlitate an
insolvent corporation. An attorney for
the defense-a distinguished lawyer
and an orator of attainments-enllVe
the trial by arguing that while ms
clients may have accepted money IRON
the sugar lobby, no member OF parma
ment could be considered morally or
legally guilty of being brlbed. Ihe
function of a member of legislative
body, he pointed out Is not executive.
His action as an individual does not
make a law, and a law made by the
deliberative body of which he is an
integral part may be vetoed. mere
fore if he does accept money to throw
his influence to a pending bill he IS not
guilty of crime. The nature OF the ar
gument indicates the aWkwardness OF
the position in which members OF the
diet found themselves after the eX-
posure of the scandal.
Early in January it was rumored that
the Dai Nippon Sugar company was 10
be absorbed by the Kitsui Bishi compa-
ny, which had been financially assisting
it and which proposed to reform it
when the proposed reimbursement OF
duty on crude sugar should be settled
favorably. At this time gossip about
the mismanagement of the concern and
crookedness of directors was rife
throughout Japan. Among other Things
they were accused of speculating in
stock, and using their positions to man
ipulate the market. 1t was discovered
that heavy losses had been concealed
By Juggling accounts. After many con-
ferences the directors resigned in
body. The resignation of the auditors
followed, but both bodies were per
suaded to remain with the company to
aid Baron Shibusawa in the proposed
readjustment till new directors and
auditors should be appointed. The baron
had accepted the post of adviser.
1t was proposed by the readjusters
that dividends should be suspended,
that the clemency of banks--creditors
Of the cencern-should be secured if
possible, and that the government
should accord equal treatment to sugar
proper At this time promissory notes
of the Dai Nippon Sugar Refining COM
pany were being dishonored because of
lack of funds. Failures of smaller con-
Germs linked in business with the sugar
company were resulting. After much
discussion and delay three banks which
had been asked to advance $150,000 for
the relief of the company declined.
More failures of business concerns re-
suited. The Fujimoto bank, with
branches in several cities, suspended
payment. 1t held the paper of the su-
gar company and its president was
closely identified with that enterprise.
Shareholders became restless and
poured a flood of letters into the mails,
inquiring of those in charge as to the
prospects of readjustment. With
closed mills the company was paying
idle clerks $4,000 a month in salaries
and paying half wages to idle opera
tlves. Baron Shibusawa was hotly
roasted for not having advanced relief
measures. The failure of the Full
moto bank caused the shares of the
company to become waste paper on the
Osaka and Toxic stock exchanges.
Speculative buying of $40 shares at rs
cents did not ginger the market.
After a meeting of shareholders and
creditors at the Nihombashi club in
this city, about the middle of last
April, without important results. the
sugar scandal took q. sensational turn.
Judges and procuratorc made a search
of the houses of the former president
of Dai Nippon and several officers
and auditors and arrested them on
charges of criminal crOOkedness Of