Los Angeles herald., 1909-09-13

| that was in cotton piece goods Since
the Japanese regime began the Ameri-
can trade in that country has fallen off
a trifle of S5 per cent! The Japanese
have been selling the cotton goods.
Here is diagram of how the "open
door" squeaks on its hinges.
The cotton is grown in the southern
states. One-third of the crop, approx
mately, is manufactured in America
| Part of the two-thirds which goes to
foreign mills is taken by Japan. Sup
pose the cotton originates in Atlanta.
| One hundred bales go to Griffin, Ca,
and is turned into piece goods to be ex-
ported to Manchuria. The mill pays the
| freights on the raw cotton, pays the
! freight across the continent to the ship
| ping port, pays the ship full freight
| rates whatever flag 1t flies, reaches the
reshippng point in the far east and
| pays full rates for transfer to the Man
churian port of entry, where full tariff
duties are collected, and then the ship
ment is distributed over the Japanese
railways at full freight rates.
Another hundred bales leaves Atlanta
the same day. 1t doesn't go to San
Francisco because the interstate COM
| merce law requires a quotation OF
through rail-and-ocean rates where
| American shipping lines are concerned;
rule which cannot be enforced against
foreign ship lines. Therefore, the cot
| ton goes through st. Paul to the quick
est possible connection with the Cana
dian Pacific over which it is taken in
British territory to Vancouver, where 1t
is loaded on a Japanese ship consigned
| to a Japanese cotton manufacturer in
| Osaka. The Japanese ship is owned
| by a company in which the Japanese
| imperial family is a large stockholder.
1t enjoys heavy subsidies from the
| Japanese government and 1t lays the
cotton down in Osaka for practically
| nothing-for Just about the same as the
Griffin, Ga, manufacturer has paid for
| the raw cotton which he also got from
| Atlanta.
The mill in Osaka is operated by a
| company in which the Japanese impe-
rial household is a large stockholder.
| The cloth is made with especial regard
| to the Manchurian market. When it Is
! finished it is sent on another subsidized
ship to Manchuria, enjoying rates far
cheaper than any other competitor can
procure. Arrived at the port of entry
the goods may pay duty and they may
| not. If the boxes are providentially
marked military supplies or railroad
supplies" the duty is not collected. 1t
is charged that some Japanese military
and railroad supplies have found their
| way TO LnB HldIheIS Oh NdHCIluTld. buL
| even If the per cent duty is paid, then
the goods are still cheaper than the
American article, assuming that the
cost of manufacture was exactly the
same. The subsidized ships have cut the
| freight charges to pieces. Now the
| Japanese railway takes the shipment
| from the Japanese company in which
| the Japanese imperial household is a
stockholder, and forwards it at reduced
/ ,A-r, Ta.,s To-, AT1r.
churia who is doing business on money
| loaned for that purpose by the Japanese
| government bank. His place of busi
ness is in a Japanese residential con-
| cession," and he hides under the folds
of the rising sun flag from the "likin"
| taxgatherer who has collected from the
Chinese merchant who is trying to sell
the American made goods.
1t may be possible that the Japanese
railway does not grant rebates in such
cases, but there is far more reason to
believe that it does. Railway rate re-
batting is difficult matter to dis
cover, prove and prevent in any coun-
try. In Manchuria there is no doubt
but that the Japanese subjects enjoy
preferential privileges over other ma
tions in the matter of railway ac-
commodations. That is what the Japa-
nese have the railroads for, and 1t is
impossible to conceive that they are not
making use of them in every possible
way The upshot of the whole matter
is that the American-made cotton piece
goods, which have paid every legiti-
mate charge against them, and which
have had no benefits of subsidies, re-
bates or other unusual advantage, can
not compete with the Japanese-made
goods which have enjoyed all these
privileges.
The question of whether the Japanese
people can stand the strain upon their
resources caused by all this subsidiza-
ton is quite beside the question so far
as Manchuria is concerned. The taxes
are paid in Japan; the mercantile pro-
fits are collected in Manchuria. The
Japanese balance sheet may show un-
fortunate red lines at the end OF
long period of time, but in the mean
while American trade in Manchurla mas
been choked, throttled and destroyed.
When the matter is summed up, 1t is
anparent that the "open door, in Man
churia is no longer diplomatic mel
dent. If it is really opened it will be
accomplished by business men and
business methods-or by another war.
Treaties and diplomatic agreements
have not the weight of straw in
manning open that mythical portal
through which the nations are supposed
to bring their wares freely and without
hindrance to the waiting people or
Manchuria.
Tomorrow-The Manchurian Question
": The COnquering Railroad.