Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-07-03

WASHINGTON, d. c.. July o--Ja-
pans course in Manchuria affords an
excellent opportunity to study Japan
csc business methods. Those methods
concern Americans because they have
driven American commerce from the
position 1t had built up in tho Man
churian field: because they are about
to be turned against American com
mercc In other fields, and because they
cast an illuminating sidclight on ia
pans cry of Monroe doctrine for
Asia"
In a recent annual report, tho Amcri-
can Association of China reviewed the
situation Turning now from trade
IN general TO some particular consid-
crationS, says the report. in part,
what is tho outlook Under Russian
domination, every nation stood on an
equal footing in Mauchuria. The same
duties and charges were assessed
against all and facilities for distribute
ing goods and doing business In gen
cral were satisfactory. Now Il Is all
changed. Under Japanese administra-
ton. no chance to advance It's own
trade Is overlooked, ana 10 compcti-
tors tho means taken appear to be Il
departure from fair trading. In fact,
they constitute a most serious viola
ton of the open-docr principle on
which the diplomacy OF tho United
States in China is based.
Japanese competition takes the form
Of a system oC rebates, not only in
freight and steamer rates. but in re-
mission OF duties ana charges which
are assessed against all other nations.
In addition to this. many forms OF
petty annoyanccs have been worked
ont for the non-I Japanese trader. and
tho imitation of established trade
marks is common"
Japan began her commercial sciz-
urc of Mauchuria even before the Rus
so-Japancsc War was over. just as Tho
army OF her traders moved Oh shan
tung last year, on tho very heels Of tho
expedition against kiauchau. Thou
sands Of immigrants and commercial
agents followed the japanese troops
into Manchuria. So long rs the mill
tary regime lasted, these traders were
given many advantages by the mill
tary authorities, but although Euro
pcan and American merchants realized
that the Japanese We're gaining an adj
vantage over them, they saw no help
for It. and believed that the state OF
affairs was only temporary Events
proved. however, that Japan was in
aururatng n policy in war that she
intended to follow in peace.
Government Subsidy Assumed.
Directly after the war. the steam
ship lines from Japan to tho ma inland
to Manchuria light. So long as the
war lasted, they had been carrying
mon and munitions to the army. but
with peace the tide of freight and hui
manity turned the other way. Ad-
vantage was taken OF this TO give ia
pancsc goods and Japanese immigrants
transportation to Manchuria at very
low rates, or entirely free. 1t is Only
logical to assume that when n Japanese
merchant and his stock were carried
to Manchuria without charge TO him,
the government must have compensated
the steamship company.
Further to strengthen the Japanese
hold on the commerce OF Manchurla'
what was known MS the Manchuria Ex-
port Guild was formed, including the
most powerful commercial guilds in
Japan The Intentions OF the guild
and the government in Manchuria were
freely discussed in the Japanese press.
They comprised q government loan OF
5000, 900 yen at AZ per cent, for Japa-
nese merchants doing business In Man.
churia, the carrying of Japanese goods
over the South Manchurlan Railway
free, or at one-half the usual rate for
one year, and the carrying Of Japanese
goods in Japanese ships free, or at one
half the usual rate for one year.
While it is impossible to excuse the
Japanese policy on such a ground. for
eign merchants took some consolation
from the fact that the new program
WAS to be in effect for only one year.
The same cXtcnuatinc circumstances
seemed to attach t" many other abuses,
they might prove only temporary.
For instance, there was the matter Of
import duties. IT was charged by many
foreign merchants that Japanese goods
were being supported free of duty,
while foreign goods were taxed. Such
charges were hard to substantiate, be-
cause the Japanese officials fatty de-
MED them, but they arose so spon-
taneously from many different
sources that it is difficult to see How
they could all have been unfounded.
Trndc-NInrks Initiated.
OF the smaller annoyanccs to which
foreign traders were subjected tho
most prominent were the imitation of
trade marks, and rlie evasion by jap
ancsc OF tho local tax known as "likin.'
American firms had gained the conf
dence of tho Chinese, by putting out
articles Of uniform quality under a
trademark easily recognized After
their entry. the Japanese would put
a similar article of inferior quality,
with a trademark so much like the
original that tho ignorant Chinese
coolic could not tell tho two apart Tho
effect of this WAS TO undermine the
Chinese confidence in American goods.
''Likin" is one OF tho PRINCIPAL
Chinese taxes. II constitutes largo
part OF the Overhead" expense In n
small business. The little Janan.aa